Blood Chocolate By Group 2

Definition Features Business ethic Definition The standards of conduct and moral values govern actions and decisions in the work environment. Features Unwritten rules Relies on social mindset and shaped by ethical climate 1 2

What’s the exact nature of ethics violation?

Nature of ethics violation Violate the standards Damage the social benefits Not responsible to your customers employees and society.

Did Nestle violate child labor’s rights directly?

Nestle exploit Child labor exploit Cocoa Suppliers

Cocoa Kid

cheap tasty convenient

Aggressive Brutal Profit-seeking

2002 ILRF Acquirement on cocoa sourcing polices US requirement ----”Child labor free” Lawsuit—filed by advocates 921 anti-Nestle Day Consequence

ILRF Acquirement 2002 Increase transparency Pay a fair price to famers Comply with international lobar standards NO

US requirement ----”Child labor free” labeling system NO Agreed to establish a public certification system before 2005 Free from child labor

Lawsuit—filed by advocates Just buying products, not responsible for labor right violations

Boycott

Legal but unethical and inhumane Profit maximization

Market price: 3U.S.dollers/kg Buy: 0.86cents/kg Sell: 161.7cents/kg Coffee beans export GDP: 70% 35% More profit More money

Corporate Social Responsibility (CSR) Doing what is right Doing what is profitable conflict Nestle’s mistakes: 1.Its ignorance of the labor child’s tragedy. 2.Its all the time powerless action.

Starbucks--- Fair Trade Certificate Coffee Profit, market share Cash flow of Starbucks Corps. increased by 23.87% in 2009 and %in 2010.

Join in the ‘FAIR TRADE’, to promote this kind of concept. What is FAIR TRADE? Fair trade product guarantee profit gained by farmers in the third world country which is like also a kind of welfare provided to developing countries.

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Supervise and guarantee As a chocolate company that has traders and processing facilities directly in Cote d’Ivoire, Nestlé is well positioned to institute higher standards of accountability, so Nestle should supervise the process of producing cocoa to ensure that their cocoa was grown and/or processed without any of the worst forms of child labor. Obey policy and protocol spontaneously signed a voluntary agreement in 2001 known as the Harkin-Engel Protocol, to establish a public certification system to ensure that their cocoa was grown and/or processed without any of the worst forms of child labor. Admit ethical violation Instead of repeatedly arguing that it is just buying a product when it comes to cocoa and is not responsible for egregious labor rights violations involved in its production, Nestle should admit ethical violation. Take corrective actions immediately. Participate in the Fair Trade with other companies in the industry and be a good leader. The most important is Nestle should take this matter to heart, working together with others in the industry, governments, NGOs and international organizations including ICI (the international Cocoa Initiative)and the ILO(international Labor Organization )to address labor practice on cocoa farms and we will continue to do so.

Destination of CSR ---- to bring positive influence to the company and help the company turn its social responsibility into final profit winning. a win-win situation

We hope Nestle to be a good moral leader and for the whole society.