Stakeholder Management with long-term sustainability is decisive in determining whether a business organization is being successful or not. Stakeholder Management has a direct impact on the company’s competitiveness and its environment. The most profitable companies have strong relationships with their relevant stakeholders groups, that is, the stakeholders in their business field. Stakeholder Management has a wide actively and effectively challenge to manage these important relationships with their different stakeholders groups. Strong customer relationships, successful relationships with suppliers, committed employees and good relationships with other stakeholders groups define the winners of today in the world ́s global economy and that is why companies like Nestlé understand, that they should keep an important and a great relationship with their stakeholders. To be able to achieve a sustainable stakeholder management, organizations first have to define who their key stakeholders are, they have to be able to understand their needs, then secondly, they should define what kind of stakeholder management system applies thereto.
Table of Contents
1. Introduction
2. The Stakeholder theory of corporation
2.1. The legal argument of R. Edward Freeman
2.2. The general issue in business ethics
2.3. The economic argument
2.4. The stakeholder concept
3. The importance of stakeholder management
4. The implementation process of the stakeholders management system
5. Nestlé´s stakeholder engagement
5.1. Nestlé´s controversy
6.2. Nestlé´s stakeholder management in the Ivory Coast
6.3. Nestlé´s Stakeholder Mapping in Ivory Cost
6.4 Supply Chain Mapping and Actors
6.5 Risk Management and Assessment
7. Conclusion
8. Bibliography
Objectives & Core Topics
This seminar paper investigates the evolution and effectiveness of Nestlé's stakeholder management approach in light of historical controversies and contemporary corporate social responsibility (CSR) requirements. It aims to determine whether the company has successfully improved its reputation and relationships with key stakeholders through strategic engagement and sustainable practices, specifically focusing on the cocoa supply chain in the Ivory Coast.
- Theoretical foundations of stakeholder management and business ethics
- Evaluation of Nestlé's engagement strategies and historical controversies
- Case study of cocoa supply chain management in the Ivory Coast
- Analysis of transparency, risk assessment, and child labor monitoring
- Mapping of internal and external stakeholder interactions
Excerpt from the Book
5.1. Nestlé´s controversy
In July 1977, many media called in the United States to a boycott of Nestlé´s brands and the company, and this expanded into Europe in the early 1980s. The reason was the Nestlé´s “aggressive marketing” on breast milk substitutes. It was prompted by concern about Nestlé's "aggressive marketing" of breast milk substitutes, particularly in less economically developed countries (LEDCs), which campaigners claim contributes to the unnecessary suffering and deaths of babies, largely among the poor (Campaigners Website/, 2014)
Organizations such as the international Baby Food Action Network (IBFAN) and Save Children and Professor Derek Jellite and his wife contributed to establish the World Alliance for Breastfeeding Action (WABA) to claim that promotion of infant formula over breastfeeding posed a health problem and caused deaths among infants in less economically developed countries (IBFAN, 2007).Four problems can arise when poor mothers in underdeveloped countries switch to Nestlé formula:
Summary of Chapters
1. Introduction: Outlines the importance of stakeholder management for organizational success and sets the research focus on Nestlé's corporate conscience.
2. The Stakeholder theory of corporation: Provides the theoretical framework regarding descriptive, instrumental, and normative aspects of stakeholder management.
3. The importance of stakeholder management: Discusses why effective stakeholder relations are critical for corporate competitiveness and risk mitigation.
4. The implementation process of the stakeholders management system: Describes the practical steps and strategic models corporations should follow to integrate stakeholder needs.
5. Nestlé´s stakeholder engagement: Analyzes how Nestlé collaborates with organizations to improve sustainability and outlines historical controversies related to infant formula.
6.2. Nestlé´s stakeholder management in the Ivory Coast: Details specific initiatives and government partnerships established by Nestlé to improve cocoa supply chain conditions.
6.3. Nestlé´s Stakeholder Mapping in Ivory Cost: Presents the complex network of stakeholders involved in the Ivory Coast cocoa sector and Nestlé's role within it.
6.4 Supply Chain Mapping and Actors: Explores the procurement process, identifying intermediaries and the challenges regarding transparency.
6.5 Risk Management and Assessment: Examines how labor rights and safety standards are monitored within the supply chain.
7. Conclusion: Summarizes the study's findings, highlighting that while improvements have been made, significant challenges regarding transparency and direct engagement remain.
8. Bibliography: Lists the academic sources, reports, and digital resources used for this analysis.
Keywords
Stakeholder Management, Nestlé, Corporate Social Responsibility, Ivory Coast, Cocoa Supply Chain, Child Labor, Business Ethics, Sustainability, Creating Shared Value, Fair Labor Association, Transparency, Risk Assessment, Infant Formula, Accountability, Stakeholder Mapping
Frequently Asked Questions
What is the primary focus of this seminar paper?
The paper explores the application of stakeholder management theory within large corporations, using Nestlé as a primary case study to evaluate its effectiveness in balancing profitability with corporate social responsibility.
Which specific geographical area is used as a case study?
The research focuses on Nestlé's operations in the Ivory Coast, particularly examining its cocoa supply chain and relationships with local farmers and governmental entities.
What is the central research question?
The paper seeks to determine if Nestlé has improved its stakeholder management approach and reputation in the years following its well-documented corporate controversies.
What scientific methods are utilized?
The author employs a qualitative approach, combining literature analysis of stakeholder theory with a case study method, utilizing industry reports and data from organizations like the Fair Labor Association.
What topics are covered in the main section?
The main section covers the theoretical definitions of stakeholder management, the evolution of Nestlé's CSR policies, a detailed map of supply chain actors, and an assessment of risk management practices regarding labor rights.
Which keywords best describe the paper's themes?
Key terms include Stakeholder Management, Corporate Social Responsibility, Ivory Coast, Cocoa Supply Chain, and Transparency.
How does Nestlé interact with local communities in the Ivory Coast?
Nestlé engages through programs like "The Nestlé Cocoa Plan" and by supporting community infrastructure projects such as schools and water facilities, often in partnership with NGOs and governmental bodies.
What are the primary criticisms regarding the cocoa supply chain?
The main criticisms involve a lack of supply chain transparency, the persistent issue of child labor, and the complexity of dealing with an "unorganized" sector consisting of various intermediaries.
What role does the Fair Labor Association play?
The Fair Labor Association works with Nestlé to provide independent assessments, map stakeholders, and help build monitoring and remediation systems to address labor rights violations.
What is the author's final conclusion regarding Nestlé?
The author concludes that while Nestlé has made measurable progress in its CSR policy compared to the past, the company must increase transparency and engage more directly with the local population to ensure sustainable and fair practices.
- Arbeit zitieren
- Rodrigue Bienvenue Nanfack (Autor:in), 2014, Stakeholder Management. The Sustainable Management of Nestlé's Cocoa Supply Chain in the Ivory Coast, München, GRIN Verlag, https://www.hausarbeiten.de/document/283852
