Nestle Case study

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School

Mohawk College *

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Course

10193

Subject

Management

Date

Jun 26, 2024

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docx

Pages

3

Uploaded by LieutenantKouprey3377

Case: Nestle Date: 26/07/23 Student Name: Manjinder Kaur 1) Main management question: The main management question for Nestlé is how to effectively eliminate forced child labor from its cocoa supply chains worldwide while addressing the ethical and reputational risks associated with modern slavery within its operations. 2) Analysis of the situation (qualitative/quantitative): Qualitative analysis: Nestlé is one of the largest food processing companies in the world, and it heavily relies on cocoa production farms in Ivory Coast and Ghana. The supply chain of cocoa involves many intermediaries, making it difficult to trace the origin and working conditions of the cocoa beans. For years, allegations of child labor in Nestlé's cocoa supply chain have persisted, resulting in legal issues and harm to the company's brand. Quantitative analysis: The U.S. Department of Labor-sponsored paper claims that there are now significantly more kids working in the Ivory Coast's cocoa industry. As of 2019, the Child Labour Monitoring and Remediation System (CLMRS) in Ivory Coast monitored 78,580 children between the ages of 5 and 17 who were working as children in 1,751 communities. 3) Alternatives Establish stricter enforcement measures and penalties for suppliers found engaging in child labor practices. Collaborate with reputable NGOs and human rights organizations to conduct independent audits and assessments of the cocoa supply chain. Implement advanced traceability technologies (e.g., blockchain) to track cocoa beans' journey from farm to end product, ensuring transparency and accountability. 4) Decision Criteria Effectiveness in reducing child labor: It should demonstrate tangible results in reducing child labor occurrences in Nestlé's cocoa supply chain. Reputational impact: The alternative should help improve Nestlé's reputation and demonstrate the company's commitment to addressing child labor issues.
5) Alternative recommended and why: Collaboration with NGOs and governments will help Nestlé gain valuable insights into child labor issues and develop more effective solutions. By partnering with reputable organizations, Nestlé can enhance its credibility and demonstrate a serious commitment to addressing the problem. 6) Action plan (to implement the alternative recommended): Collaborate with governments in cocoa-producing countries to advocate for stronger labor laws and enforcement mechanisms against child labor. Regularly review and evaluate the effectiveness of the initiatives and make necessary adjustments for continuous improvement. The company's commitment to transparency and collaboration will demonstrate its dedication to eradicating child labor from its operations and contribute to positive social impact.
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