Case Synopsis
Business organizations should act ethically to add value to their stakeholders. Corporations engaging in ethical business practices have higher chances of realizing their potentials (Clark, 2015). However, many multinational firms engage in inappropriate business practices thus affecting their brand images. Nestle is one of the biggest food companies in the world today. However, the Swiss multinational company has been accused of numerous business malpractices over the past twenty years.
The moral challenge that has emerged recently revolves around the use of child labor in its cocoa production processes. Different analysts have indicated that the firm tolerates the use of child labor in different cocoa-producing farms (Klopping, 2013). This challenge presents a major ethical issue that affects the image of the company. The latest report by the Fair Labor Association (FLA) has shown clearly that many farms outsourced by the company use child labor and unfair practices such as low salaries for their workers (Clark, 2015). This issue is important because it presents a major concern for the multinational firm. Human rights activists and policymakers can use the case to ensure more companies engage in inappropriate business practices.
Key Facts
Nestle’s business history has been characterized by a wide range of business malpractices. The controversies associated with the firm have forced many analysts to examine every aspect of its business model (Klopping, 2013). To begin with, a study conducted by FLA outlined the major malpractices associated with this firm. FLA’s researchers visited over 250 farms in different African regions. The researchers observed that the company was embracing the use of child labor. The report published by FLA indicated that there were around 56 workers aged below eighteen. The number also included young children below the age of 15 (Clark, 2015). Although the Nestle’s code of conduct document prohibited the use of child labor, it later emerged that the company was doing very little to deal with the malpractice.
The targeted respondents during the study indicated that many children working in such farms in Ivory Coast were not attending school. As well, some of the children were forced to work in hazardous environments. They were also “required to transport heavy loads and use dangerous machetes” (Clark, 2015). Similar concerns have been raised by the International Labor Organization (ILO). The organization has indicated clearly that many African children below the age of 17 work on different farms. This issue has become a major concern because more family members continue to support the practice. The reliability of these sources explains why appropriate measures are needed to improve the firm’s image and address the needs of more underage children.
Moral Analysis
The moral issue, in this case, revolves around the problem of child labor. This malpractice has significant implications on the experiences and life-outcomes of more children. The affected children find it impossible to have better lives. The health outcomes of such individuals are also endangered. The affected communities also find it hard to realize their potentials. The key moral actor, in this case, is Nestle (Clark, 2015). The firm has been encouraging such malpractices for many years. The important issue to consider when analyzing the validity of this moral concern is the rights of young children. Societies should always focus on the most desirable practices that can support such rights. This knowledge will justify the malpractices undertaken by Nestle.
My intuitive moral judgment of this moral issue is founded on specific values such as human life, care, justice, social order, freedom, and truth. Children are delicate members of society (Ivins, 2005). The posterity of every society depends on these children. That being the case, companies and communities should support the welfare of such children. Values such as freedom and human life explain why individuals of all ages should be respected. The best way to promote justice is by empowering such children instead of forcing them to provide cheap labor. The value of care also explains why societies should support every child. The use of child labor is malpractice that threatens these values.
My values and moral judgments indicate that child labor is a right-wrong conflict issue. This right-wrong conflict arises from the fact that some companies continue to embrace the malpractice while members of the society are against it. This kind of conflict calls for new approaches and ethical theories to achieve a long-lasting solution (Griek, Penikett, & Hougee, 2010). Some other moral perspectives should be considered to come up with applicable solutions. For example, the moral perspective of liberty should be considered. This moral perspective supports the idea of human rights. Children are usually helpless and therefore require the support of adults (Klopping, 2013). This fact explains why the relevant authorities should focus on the issue of human liberty.
As well, the six universal moral value perspectives can be used to illuminate and address this challenge. These six perspectives include loyalty, fairness, liberty, care, sanctity, and authority. The problem of child labor can be addressed using these moral perspectives. The society should embrace specific values such as fairness, liberty, and care to tackle various ethical challenges. These values will ensure more children are supported (Ivins, 2005). Loyalty and authority are also powerful concepts that can ensure the relevant actors impose positive practices that can address this challenge. These aspects will promote the concept of sanctity and ensure every person in the society achieves his or her potentials (Griek et al. 2010).
The ethical stances of common humanity can also play a positive role in examining the nature of this issue. These stances include justice, equality, utility, and care. With such concepts, the society can support the needs of more children and empower them to achieve their goals. A society that does not use child labor will support these stances of common humanity. The ethical aspects of a character can promote the ideas of principle, duty, and virtue. The community will have a duty to protect more children and make it a maxim. The ethical standpoints of consequences will ensure more people understand the harms, costs, outcomes, and benefits of child labor (Luetge, 2005). The decision to deal with this moral challenge will support more children and minimize the harms associated with it.
I would also apply my wisdom tradition and code of ethics to address this issue. The use of child labor is an insult to the standpoints of common humanity. The practice promotes inequality and fails to support the welfare of more children. The best important issue is to understand the moral problems of child labor. Specific values such as duty, principle, and virtue will encourage more people to embrace specific ideas to deal with child labor.
As well, the ethical problem conflicts with the wisdom tradition. Many stakeholders such as the FLA and ILO believe strongly that child labor is a threat to human welfare. This ethical malpractice also affects the welfare of communities and parents (Griek et al. 2010). However, companies such as Nestle appear to embrace the malpractice in an attempt to achieve their business goals. The ethical standpoints of common humanity, character, and consequences should, therefore, be used to find a sustainable solution.
Stakeholder Analysis
This problem of child labor affects many stakeholders. Some of the affected stakeholders include human rights activists, policymakers, parents, consumer groups, and communities. The moral values and duties of these stakeholders explain why this issue affects many people. For instance, human rights activists and communities focus on specific values such as justice and liberty. As well, many policymakers, consumer groups, and parents have strong Wisdom Traditions explaining why societies should support their children (Griek et al. 2010). Such moral arguments also describe the relevance of positive practices that can support people’s needs and values.
The society has a principle and duty to ensure every child is supported. It should be observed that the values and claims of these stakeholders are not conflicting at all. All the stakeholders have compelling and urgent claims that must be addressed (Schlegelmilch & Oberseder, 2007). This move is necessary for promoting the most desirable goals. That being the case, the issue of child rights should be taken seriously than ever before.
Several situations and cases can be used as analogs for evaluating the case. For instance, Adidas used to be accused of using child labor in different countries such as Indonesia, Thailand, and China (Luetge, 2005). Different stakeholders voiced their concerns thus compelling the firm to engage in appropriate business practices. Consumer groups can, therefore, use a similar approach to ensure Nestle engages in positive practices.
Option Analysis
The above stakeholders have a major role to play in an attempt to deal with child labor. The key stakeholders towards getting positive outcomes are policymakers. Such policymakers should ensure Nestle and other actors desist from using child labor (Luetge, 2005). As well, parents and consumer groups should be involved throughout the process to resolve this moral problem. The use of moral values such as freedom, rights, justice, liberty, and care should be used to justify these recommendations. The groups can use the concept of utilitarianism to deal with child labor. This move will “outline the best actions that can promote happiness for all” (Schlegelmilch & Oberseder, 2007, p. 17).
Decision
The most ethical decision is to do away with child labor. This means that Nestle will ensure every stakeholder involved throughout the supply chain process. This decision will be by my Moral Tradition. Adults should be ready to support and empower every child. It will also be necessary to safeguard the rights of young children. This ethical option is also supported by the utilitarianism model that promotes the most desirable moral actions (Griek et al. 2010). The decision reflects some of my core values such as unity, liberty, care, and justice.
Summary Argument
Policymakers and consumer groups should present appropriate ethical arguments to ensure Nestle desists from the use of child labor.
Reference List
Clark, J. (2015). Child labor on NestlĂ© farms: chocolate giant’s problems continue. The Guardian. Web.
Griek, L., Penikett, J., & Hougee, E. (2010). Bitter Harvest: Child Labour in the Cocoa Supply Chain. Sustainalytics, 1(1), 1-10. Web.
Ivins, T. (2005). A Contextualist Approach to Child Labour. Cross-Sections, 1(1), 37-46. Web.
Klopping, L. (2013). Nestlé: A Global Company Comes Under Fire. New York, NY: GRIN Verlag. Web.
Luetge, C. (2005). Economic Ethics, Business Ethics and the Idea of Mutual Advantages. Business Ethics: A European Review, 14(2), 108-118. Web.
Schlegelmilch, B., & Oberseder, M. (2007). Ethical Issues in Global Supply Chains. Emerging Issues in Management, 1(2), 12-23. Web.