Final Project
Ethical Dilemma
Nestlé’s Unfair Labor Practices
Professor: Andrew Davis
Name: Daniela Martnez Jimnez
ID: A00396100
Due Date: May 3rd, 2012
Nestlé’s unfair labor practices: an ethical issue
In the latest years globalization has helped international business through opening barriers
to free trade and creating new markets. This fact has led international managers to take
actions on issues of ethical behavior, social responsibility and environmental protection
around the world. However, there are still some multinational enterprises that had taken
questionable decisions or practices, which violate some ethical and moral principles.
There are many cases in which companies are involved in a conflict in which they have to
decide between two moral choices. This is known as an ethical dilemma in which it seems
to be that both choices are right but every time you choose one, the other side is affected.
Through these lines I will explain why labor exploiting is considered unethical and some
Nestlé’s practices, which are considered to be an ethical dilemma.
Unfair labor practices
Through many years some enterprises have been taking advantage of outsourcing because
it is cheaper for them to produce in developing countries than at home or because it is
cheaper to acquire resources and raw materials from those countries because of the low
wages and minimal labor conditions.
These unfair labor practices consist on having workers on an unsafe place, without the
minimum health conditions, without the appropriate equipment, working more hours than
the maximum permitted or working for a very low wage. Also, these practices include
threatening or not permitting employees to support a union and exploiting children, which
is the worst in my opinion.
Wages are one of the most important labor conditions, because they are the main source of
income for workers and they represent an important part of labor costs for enterprises.
These characteristics make wages the reason for several conflicts between both parts and
they constantly end on collective bargaining all over the world.
Forming or joining organizations of their preference, is an imminent right of workers,
which is an integral part of a free and open society.
Working time is also an important subject, because it is needed to limit excessive hours of
work and to provide adequate periods of rest and recuperation, in order to protect workers’
safety and health.
Finally, child labor is an important issue because there are many children working
full-time, not receiving education or appropriate nutrition and care. It is really disturbing
