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Business Ethics in Big Corporations

Many ethical issues come from big corporations as they are striving to raise their profits, even if it’s at the expense of consumer’s health. Some companies focus only on profit and put ethical laws aside, there are two factors to guarantee that a company like nestle would give health conditions the same priority as sales and profits, first is the system that has to direct and control corporations to insure less in ethical standards that are a corporate governance.

Another thing to consider is there has to be written and strictly followed rules to guide employees in ethical behavior, make sure to positively influence their decisions and choices they face everyday, its known as code of ethics.

An example of an unethical case was nestles infant milks in the 70’s, this was a big scandal back then. One of the marketing techniques used at that time was the company selecting number of nurses, giving them free samples from the baby formula to try it out in hospitals in some developing countries where there is poor control on health issues in general.

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Nestle gave new mothers this formula as a test for a long period that their own milk would dry up, as a result this formula was the only thing to depend on. At that time a US Agency for the International Development official stated that relying on this baby formula for a long period of time has resulted in deaths of a million infant baby every year through the lack of proper nutrition and diarrhea diseases, which shows the consequences of of nestles unethical advertising in this market.

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To confirm their commitment to consumer health, they used some hospitals to promote their products in exchange for promoting and sponsoring hospital products like branding newborn first bands, nurse pads to get the brand to be always on peoples minds, and believe to have benefit health support. The issues surrounding nestle in its promotion for infant milk is that formula poses a risk on the health of these babies, and also very expensive. In some countries they can’t afford to pay this expense, unfortunately they instead give their child low quality milk to make the formula last, which results that children get a serious lack of nutrients and vitamins required for them to grow healthy.

To fully benefit from the formula its needs certain environmental conditions like clean water, which is not available in some countries which increases the speed of diseases within children. Nestle choose to make profits a priority over being a company having its morals and ethics, which made fall into a trap of having a bad reputation after the Infants scandal, this is mainly defined as ethical dilemma where in this case they had to choose between producing high quality milk or to save some money on the production and make cheap product and start to test in countries that lack education to give free samples to experiment on some new mothers, but this led to causing health problems to many children.

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Business Ethics in Big Corporations. (2019, Dec 06). Retrieved from http://studymoose.com/business-ethics-in-big-corporations-essay

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