Ethical behavior in the workplace environment is one of the requirements that might seem quite easy and self-explanatory, yet suggest dealing with a range of ethical dilemmas in the future. Ethical concerns may emerge in any industry, which is why introducing homogenous ethical standards is an important step toward addressing ethical issues in business. The Food and Beverage industry is no exception; specifically, the recent case of Nestlé attempting to copy the trademark of a different brand in order to attract new audiences needs to be scrutinized for adhering to ethical standards.
The ethical issue at hand appears to concern the failure to acknowledge the importance of corporate integrity and the significance of ethical leadership. Specifically, the company has ignored the necessity to adhere to the foundational concepts of ethical business-making, namely, the pursuit of honest competition and appreciation for the intellectual properties of other organizations (Light, 2020). Although the described situation does not exemplify a case of leadership abuse, it evidently shows the lack of intention to establish integrity-based principles, specifically those of respecting the intellectual property of other companies in corporate branding and decision-making.
What makes the case under analysis particularly appalling is that the leaders of the organization were obviously aware of the unfair attempt at copying the success of the Impossible Burger yet did not take any steps to prevent the controversy from taking place. Therefore, the case at hand indicates that the ethical issues within Nestlé stem not from the presence of individual workers who do not have the moral compass to navigate the complexity of business ethics. Instead, Nestlé appears to have no ethical leadership that could facilitate ethical decision-making in the company (Frunză, 2017). Therefore, it is vital for Nestlé to revisit its entire corporate philosophy in order to adjust its ethical framework to the realities of the present-day business environment. Given the current role of media in shaping a company’s perception among its target audiences, negative publicity might lead Nestlé to a gradual demise.
Overall, Nestlé has demonstrated the absence of moral awareness, thus, proving to lack the foundational aspect of corporate ethics that allows an organization to function in the business environment. Therefore, the case at hand illustrates the importance for a leader to be aware of the changes in the managers’ and staff members’ perception of legal and ethical standards accepted in the business context. Furthermore, as a leader, one should have recognized the lack of appropriate ethical principles in the corporate philosophy and the resulting failure to address moral concerns during basic decision-making. Thus, the case of Nestlé shows the role of noticing minor breaches of corporate ethics in the workplace environment as the path toward becoming accepting of more egregious instances of ethical misconduct and the mismanagement of decision-making processes (Tamunomiebi & Orianzi, 2019). Although Nestlé’s reputation has sunk quite low, it can still be salvaged if the organization accepts the principles of virtue ethics and introduces rigid standards for corporate decision-making and organizational behavior.
For Nestlé to address its current ethical issues observed in its workplace, the company will need to change its corporate philosophy to include ethical decision-making and prioritize the needs of its key stakeholders in its lordship approach. Additionally, the model of corporate governance needs to be changed toward a closer inspection of Nestlé’s routine processes so that the instances of unethical decision-making could be spotted instantly and reported accordingly. Thus, the company will be able to mend its reputation and revive its popularity in the Food and Beverage market.
References
Frunză, S. (2017). Ethical leadership, religion and personal development in the context of global crisis. Journal for the Study of Religions and Ideologies, 16(46), 3-16. Web.
Light, L. (2020). Nestlé’s trademark confusion may cost the company credibility.Forbes. Web.
Tamunomiebi, M. D., & Orianzi, R. (2019). Ethical leadership: Implications for organizational reputation. The Strategic Journal of Business & Change Management, 6(1), 121-134. Web.