Introduction
Nutriset is currently the dominant global supplier for Plumpynut (Fisher, 2013). The company boasts of a market monopoly and global dominance in the industry hence enjoying substantial benefits. It is recorded that by the end of the year 2008, Nutriset was in a position to satisfy the rising demand for Plumpynut (Fisher, 2013). In addition to that, the worldwide demand is anticipated to go up indefinitely and for this reason, the company needs to plan for a double production (Fisher, 2013).
However, the company cannot do it on its own. It requires the help of other companies, such as American firms, to meet its orders (Fisher, 2013). There are a number of impediments standing in the way such as patent protection of Plumpynut as a product (Fisher, 2013). Its manufacturing procedures are must also be protected.
Fact summary
Nutriset was founded in 1986 after ten years of examining the field of humanitarian nourishment (Fisher, 2013). The founder of the company was an established agricultural engineer known as Michael Lescanne (Kersh, Stroup, & Taylor, 2011). The company began exploring and manufacturing curative milk to treat stern starvation. In 1996, the company designed and produced its first Plumpy’Nut product (Kersh, Stroup, & Taylor, 2011).
This was the first ready-to-eat nutritional nut paste and its aim was to rehabilitate starved individuals (Kersh, Stroup, & Taylor, 2011). Nutriset spends its yearly proceeds in community services to sustain consortia study to attain the purpose of dietary self-sufficiency. This is an important undertaking by the company because it keeps the management apprised of the current and new technological developments.
This further allows the company to remain focused and relevant with regard to its production. From this point of view, Nutriset has designed a structure of online conformity. Through this program, local NGOs and producers in developing nations are allowed to use Nutriset’s exclusive rights (Kersh, Stroup, & Taylor, 2011). These contracts help to make dietary self-sufficiency more achievable. As compensation for the free exclusive rights, the companies are required to give a donation of 1% of their sales to be rewarded to the French IRD (Kersh, Stroup, & Taylor, 2011).
The French IRD co-owns these exclusive rights. Nutriset currently offers a broad variety of ready-to-use curative foods and it works together with the World Health Organization (Kersh, Stroup, & Taylor, 2011). The two collaborate in researching and adapting foodstuffs to reduce food crises. The company has set a system of local corporations that take action as contracted entities. These companies create jobs for locals leading to economic growth and development in the local areas where they are located (Kersh, Stroup, & Taylor, 2011).
Ethical dilemma
Nutriset desires to pursue its primary and solitary objective, which is to give food to children. However, to help a larger number of children, the company requires capital to finance their measures and improvement. Therefore, they make money and plow it back into R&D (Fisher, 2013). Furthermore, the Plumpy’nut exclusive rights are obtainable for a characteristic price. The company has the intent to combat starvation and assist people living in poverty. The company’s goal is to be present at the physical location where the problem exists. Evidently, the company acts in total regard for human values and morals, which is a fundamental aim of ethics (Fisher, 2013).
Ethical issues
Starvation as a global concern
Critics argue that Nutriset’s pursuits to alleviate starvation and malnutrition among poor children are not very critical. According to the Save the Children program, a child is greatly affected by his/her first 1000 days. The nutrients that a child obtains in his/her first 1000 days have a great impact on his/her whole life (Rice, 2010). Emaciated children will achieve or perform dismally at school compared to their well-fed counterparts. They will also be more prone to health harm and less physical strength compared to well-fed children (Rice, 2010). Once they finish school, the impacts of their nutritional deficiency at an early age are still persistent (Rice, 2010). Due to their substandard cognitive capabilities and weaker bodily muscles, they will produce up to 20% less than other adults will (Rice, 2010).
As undernourishment impinges more on poorer families compared to the well-off ones, it has the consequence of underpinning or even worsening discrimination in the social order. A number of issues upset children these days and have had such a lengthy, permanent, and destructive effect on their lives (Rice, 2010). Eliminating undernourishment is one of the United Nation’s Millennium Development Goals. However, plans that intend to undertake these concerns are fatally underfunded and the issue lacks global attention (Rice, 2010). One of the solutions stated by one of the non-governmental organizations is to provide micronutrient additions to expectant women and underfed children.
Nutriset has developed one of the most revolutionary traditions in providing micronutrients through Plumpy’Nut (Torres, 2011). It has been demonstrated as an exceptionally efficient way of invalidating the effects of acute undernourishment in children. The company has been continually innovating to advance its goods and assist even more children. Through its associations, the company ensures that its foodstuffs are speedily and readily acquired by the people who require them the most (Torres, 2011). Through establishing manufacturing plants in sub-Saharan Africa, the company seeks to alleviate the issue of starvation (Torres, 2011). This also has helped and enhanced the creation of local jobs in these countries hence creating wealth.
How allowing patent rights affects the company
To allow patent rights helps the company reach out to the maximum population, which is one of its main objectives. However, its efforts to do so have been mistaken as an expansion to maximize financial gains. The disputes that the corporation might face are associated with the execution of the Online contracts (YouTube, 2012). The improvement of Plumpynut distribution is greatly dependent on the quantity of stock. The most important objective is to contact the majority of the populace who are distressed by undernourishment. Without enough stock, distribution is hampered. The most interesting aspect of the business is that gigantic international companies are buying these financial exclusive rights.
They are not only buying these rights, rather they are plowing the profits back to prolong the research to stop the expansion of malnutrition (YouTube, 2012). The company might progress by giving out exclusive rights to the companies interested in a partnership. To foster growth and efficiency, Nutriset is going to expand new assets to reach out to poor people (YouTube2, 2012). However, the motivating bit is the fact that these agreements might be functional in unrelated conditions.
Pursuing profit or helping the poor
The company has been accused of exploiting a global calamity for its own financial benefits. However, the CEO of Nutriset is helping to restrain undernourishment using moneymaking and a sustainable operation from the day the company was formed (Fisher, 2013). To manufacture the product in locations that are close to the affected population, Nutriset and its CEO are committed to building industrial units in Africa (Fisher, 2013). Since the establishment of Nutriset, the CEO has been working to create a contemporary agro-industrial supplement in Africa (Fisher, 2013).
The company’s profits show it as the global giant in the treatment of undernourishment. Nonetheless, Nutriset recognizes its tough place as a global leader in the production of malnutrition alleviating products. Nonetheless, capital is not the intent of this company. Business is often considered unhealthy in humanitarian services since it is often driven by the urge to make money rather than help the poor. However, Nutriset’s chief officer has proven that his company has a humanitarian agenda other than making profits.
Ten years after the creation of Plumpy’nut, the World Health Organization openly advocated for Nutriset curative alternatives for the treatment of undernourishment (Fisher, 2013). Five years after the UN’s endorsement, Nutrisent had increased its turnovers immensely. The greatest customers who buy Nutrisent’s products include the United Nations and NGOs involved in humanitarian activities.
This achievement has provoked critics who squabble that humanitarian exploits and financial trade are not well matched. Concerning this allegation, Michel Lescanne disagrees and protects the intention of his company. Assuming Nutriset possesses a quasi-monopoly, it maintains a high levy of autonomy to avoid external influence and pressure. Managers of the company have confirmed that they have declined to expand the company’s production to manufacture dietary complements for athletes (Fisher, 2013).
Solutions for the ethical issues experienced by Nutrisent
They include:
- Controlling the sale of a product
- Restricting patent rights
- Exploring other distribution channels
- Expanding production to areas where the product is needed the most
- Outsourcing for raw materials to meet demand
- Focusing on the company’s initial goals and objectives
Recommendation
Controlling the sale of a product
Controlling the conditions of sales is one of the ways that can be used to address the ethical issues faced by Nutriset. The accusations leveled against the company that it has been using its supplementary dietary products to make money are serious allegations. Therefore, to mitigate this issue, conditions of sale must be stringent to restrict the sale of the products to unintended markets. This might include restricting sale only to humanitarian organizations such as the United Nations and reputable Non-Governmental Organizations. This will help in controlling the supply of Plumpy’nut and help the company to meet its noble objectives of feeding malnourished children.
Restricting access to patent rights
In addition, restrictions on the patent rights to manufacture this product should be effected. This will only allow closer supervision hence guaranteeing the maintenance of the quality of the products (Fisher, 2013). With the challenge of meeting the global market demand, the company should consider outsourcing other marketing and supply chains. This will help in delivering the products to the right places where they are most needed. This is consistent with the company’s goal to reach out to the greatest percentage of people who need the product. It is also important for the company to develop more companies in the developing countries where the issue of malnutrition is most prevalent.
Conclusion
This paper has discussed the ethical issues facing the Nutriset Company and its course to feed malnourished children all over the world. The paper begins with a fact summary to explain how the company was created. The paper then gives a summary of the ethical dilemma faced by the company. The ethical issues are explicitly discussed and presented in a clear approach. This memo has listed several solutions that are considered effective in addressing the ethical issues faced by the company. Lastly, two of the best solutions to deal with the ethical dilemma faced by Nutriset have been recommended.
References
Fisher, A. (2013). Nutriset. Web.
Kersh, R., Stroup, D. F., & Taylor, W.C. (2011). Childhood Obesity: A Framework for Policy Approaches and Ethical Considerations. Web.
Rice, A. (2010). The Peanut Solution. Web.
Torres, J. (2011). The Washington Post. Famine in Africa tests improvements in assessing and treating malnutrition. Web.
YouTube, (2012). Conversation: the peanuts paste that could save million. Web.
YouTube2, (2012). Making Plumpy Nut in Ethiopia. Web.