Global Business and Ethics

Global Business and Ethics - RUNNING HEAD Global Business...

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RUNNING HEAD: Global Business and Ethics 1 Global Business and Ethics Edward Arias MGT 216 August 23, 2010 Carolyn Flynn
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RUNNING HEAD: Global Business and Ethics 2 Global business consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations (Czinkota, Ronkainen, & Moffett, 2004, p. 4). The Swiss company, Nestle, was at the center of a global controversy. In 1977 a boycott of the company was launched in the United States and throughout Europe (Breastfeeding, 2010). This was because of their unethical and unsubstantiated marketing concerning breast milk. A study conducted by the American Public Health Association found that half of Nestle’s formula market was in developing countries. An astonishing statistic that was published in the same study was that 10 million infants in developing countries contract diseases caused by inappropriate bottle feeding and an estimated one to four million of the infants will die. The problem was that in these poverty stricken countries the availability of a steady source of clean water was a tremendous problem. The families were not able clean the used bottles, or use clean water to make the formula. To add on to the list, formula was an extra expense, so mothers would dilute it to make it last longer (“8126: Nestle Boycott,”1982). For years physicians made it known that breast milk was better for newborn children than
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Global Business and Ethics - RUNNING HEAD Global Business...

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