Generally, a company’s priority is to make as much profit as it can; however, it is tremendously important for the company to maintain an applauding business ethics.  Nestlé, a multibillion group, has indeed shown effort to contribute to its community.

A rap video, Superbaby, was released by Nestlé India as part of their “Stay Healthy Stay Healthy breastfeeding week” campaign. This successful campaign leads no monetary benefit toward the group because Nestlé products are not involved at all; it was initiated to enhance the “well-being of customers.” (Mainwaring) Although Freeman’s Stakeholder Theory borders being too idealistic, Nestlé has ultimately fulfilled one—if not more—aspect of its social responsibilities. Friedman deems such acts of companies hypocritical; I strongly disagree with his point and think that he has overlooked the benefits a company can obtain from showing good business ethics.

For Nestlé, thousands, or even millions of dollar must have been put into the “Stay Healthy Stay Healthy” campaign. But did the money spent merely raise awareness for the benefits of breastfeeding?The answer is no. From a marketing perspective, Nestlé has demonstrated an excellent ethics that cannot only gather publicity, but also possibly deduct some amount of taxes. As a result of its voluntary initiative, Nestlé is now more likely to gain favourable reputation than its rivals who do not involve in executing social responsibilities. It is then deduced that when the corporate executives are making business decisions, dedicating money to social responsibilities is a great alternative to benefit stakeholders, and at the same time, marketing the brand.

Works Cited

Mainwaring, Simon. “Nestlé© Wins At Social Storytelling By Combining Purpose And Product.” Forbes. Forbes Magazine, 9 Sept. 2014. Web. 11 Sept. 2014. <http://www.forbes.com/sites/simonmainwaring/2014/09/09/nestle-wins-at-social-storytelling-by-combining-purpose-and-product/>.

“What is Stakeholder Theory — R. Edward Freeman.” YouTube. YouTube, n.d. Web. 11 Sept. 2014. <https://www.youtube.com/embed/bIRUaLcvPe8>.

Zimmerli, Walther Ch., Klaus Richter, and Markus Holzinger. Corporate ethics and corporate governance. Berlin: Springer, 2007. Print.