Nestle Vs. Greenpeace: The Palm Oil Controversy

Brilliant Essays
Ethics and sustainable development
Nestle VS Greenpeace
The palm oil controversy

Augustin DURAND
Mohamed HAILI
Outline

1. Introduction
2. Description of the parties
3. Nestle and its controversies
4. The palm oil controversy
5. Results
6. Conclusion

1. Introduction

Being one of the world's largest nutrition companies, Nestlé, found itself in the midst of a public relations nightmare when Greenpeace, the ecological protection group, pointed that the firm's chocolate brand KitKat contained palm oil in 2010, whose creation led to the devastation of rainforests. Palm oil has a variety of use and is mainly grown in Indonesia where it makes an important impact on the economy. Nonetheless, the expansion of palm oil agriculture
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The company had a history of confrontations over a range of issues. There were instances where there was disregard for the corporate responsibility in many countries in which it operated. The Swiss conglomerate had had its fair share of controversies and ethical dilemmas in its nearly 150 years old history. Experts pointed out that the history of Nestlé's public relations troubles began in 1970s with allegations of unethical marketing of their baby formula in less developed countries. Since then, Nestlé had continued to get into trouble. For instance, in 2008 it was blacklisted by the Chinese government. Later it was targeted for the misleading promotion of its bottled water brands as well as for interfering in policies that protect natural water resources. Nestlé was also implicated by the International Labor Rights Forum (ILRF) for its involvement with child labor in cocoa growing nations. In the UK, the Ethical Consumer Research Association (ECRA) gave Nestlé an ethical rating of 0.5 out of 20. It had found the company linked to social ills such as child labor, slavery, rainforest destruction, water extraction and debt perpetuation. In 2008, Greenpeace asked Nestlé to stop acquiring palm oil from Sinar Mas, but it failed to elicit any response from the company. Nestlé was said to use palm oil for making an assortment of products that included Coffee Mate, Nestlé Crunch Maggi Soup Mixes and Kit Kat. According to Steve Campbell, head of campaigns for Asia-Pacific at Greenpeace, Nestlé was buying palm oil from suppliers and from companies on the ground in Indonesia who are involved in illegal activity and whore are contributing to deforestation, to the loss of orangutan habitat and also contributing to climate

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