Ethical Responsibility of Multinational Companies: What Went Wrong with Maggi Brand of Nestle India?

Soni P. K. ., Dr. C. K. Harnawale .

Abstract


Ethical responsibility is depicted as one of the four layers of CSR pyramid which deals with the standards, norms or expectations of all stakeholders’ moral rights (Carroll, 1991). It is expected that all multinational companies (MNCs) should equally focus on all responsibilities of CSR. However, it has been observed that the MNCs focus preferably on economic, legal and philanthropic activities by neglecting ethical responsibilities which are equally important. This negligence sometimes results in tragedic effects on the society. The Coca Cola, Cadbury, Enron, Bhopal gas tragedy are few of the examples of negligence of MNCs with regards to ethical responsibilities. This paper deals with the recent issue of Nestle Maggi in India with reference to ethical responsibilities and associated implications.

Keywords


Corporate Social Responsibility, Multinational Companies, Ethical Responsibility, Nestle India.

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References


Carroll, A. B. (1991). The pyramid of corporate social responsibility: toward the moral management of organizational stakeholders. Business Horizons, July/August, pp. 39-48.

European Commission (2011). Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions – A renewed EU strategy 2011-14 for Corporate Social Responsibility. Brussels. Available from http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0681:FIN:EN:PDF.

IBS centre for Management Research (2002) Maggi Nestle’s Problem Child. Case study MKTG/021. Accessed from www.icmrindia.org on 8th June 2015.

The Economic Times (4 Jun, 2015) Maggi issue: Row over excessive lead content may taint other noodle brands like Knorr, Chings, Top Ramen. Shramana Ganguly, ET Bureau | 4 Jun, 2015, 12.41AM IST, the Economic Times 4th June 2015.

Times of India (June 3, 2015) Harmful effects of chemicals. Mumbai, p.2.

http://csrentertainment.com/india-seeks-damages-from-nestle-after-noodle-scare-government-sources/

www.nestleindia.com

www.indiacsr.com


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