The Nestlé Scandals: A Case of Corporate Misconduct

Nestlé – A Brand With a History of Scandals

Since the war in Gaza began in October 2023, it has led millions to boycott brands and businesses that either support Israel or profit from its illegal occupation of Palestine. These boycotts not only reflect political solidarity but also demonstrate how consumer choices can influence corporate behavior. As boycotts impacted businesses financially, many Pakistanis realized that corporations may not always align with their interests. One such business is the Swiss-origin corporation, Nestlé. However, Nestlé’s boycotts began long before the war in Gaza.

It is a company so large that chances are, if you’ve ever been to a grocery store, you have likely come in contact with one of its products. Founded in 1866, the corporation has solidified its presence in 185 countries, with more than 2,000 brands under its name. It is a prime example of a business that prioritizes profit over consumers, ethics, and internationally accepted codes of conduct. It claims that its products, ranging from bottled drinks and cereal to chocolate, confectionery, ice cream, coffee, and baby products, align with consumer health and nutrition. The company showcases this through providing nutritious options with added vitamins and minerals, as well as healthier snack alternatives. At least that is what they claim in their marketing campaigns and packaging.

The Baby Formula Scandal

The most noteworthy controversy of Nestlé is the Baby Formula Scandal. Nestlé pioneered baby formula as a substitute for breastmilk but quickly realized that its customer base is small, as most mothers do not need substitutes. Any reasonable company would have left it at that, but Nestlé decided to manipulate and take advantage of parents trying to give their children a healthy life. The story initially broke in the 1970s and was then expanded on in the 80s. It concerned the infant deaths that took place due to the diseases caused by baby formula in African, South American, and Caribbean countries, yet it managed to reach the Pakistani maternity wards in the 1990s.

Despite being deemed “The Baby Killer,” Nestlé’s baby formulas were promoted in Pakistan, which was next to their target of countries of low and middle-income markets that lacked policies to stop them and had a large population of illiterate parents. Nestlé promoted the formula as a modern, superior alternative to breastmilk using unethical tactics, including giving away free supplies in hospitals. Nestlé’s salespersons (saleswomen and men dressed in nurses’ uniforms) would give free samples of the baby formula to new mothers in maternity wards, and once the mother stops producing breastmilk due to it not being utilized, the formula becomes the single source of nutrition for the baby.

Regardless of whether or not it was affordable to the parents. They had become dependent on it. The diseases it causes include numerous health issues, including asthma, allergies, acute diarrhea, dehydration, lower cognitive development, respiratory infections, childhood cancer (leukemia), chronic diseases, anemia, and malnutrition, all of which have led to a rise in serious illness and death in babies, which doctors informally refer to as “bottle baby disease.” One study estimates Nestlé has caused an estimated 212,000 excess infant deaths per year and an increase in the infant mortality by 9.4 per 1000 births. These cases are rarely reported in Pakistan, but one such case was of one-month-old Wajeeha, whose father felt that he was being watched and harassed.

An ex-salesperson, Syed Amir Raza Hussain, became Nestlé Pakistan’s whistleblower. He started at Nestlé in 1994 but resigned in 1997, despite his promising career. As Nestlé’s medical delegate, he witnessed the death of a four-month-old infant who was only given breastmilk for a month, contrary to the recommended 6 months. The baby died of acute diarrhea and dehydration. Since he and his wife were also expecting, Hussain decided to investigate further and was informed by a pediatrician about the dangers of bottle feeding. This realization opened his eyes to what he had been selling, and he decided to raise his voice for it in a 1999 report titled “Milking Profits: How Nestlé Puts Sales Ahead of Infant Health.” The 2018 movie “Tigers” was inspired by his story, bringing the message to millions, exposing one of the many scandals Nestlé has been a part of.

Nestlé’s Labor Exploitation

Nestlé’s unethical practices extend far beyond the scandal mentioned earlier. The company has repeatedly harassed employees who demand their legally guaranteed rights, employing the same playbook whenever labor unrest arises at its factories. Despite earning millions of dollars in profits each year, many employees remain stuck in contract positions, even after decades of service. Permanent employment and outstanding dues are systematically withheld. Nestlé’s first response is to target union leaders and active members by harassing and intimidating them. It then maintains the workers’ silence by instilling fear, silencing demands for justice. Workers face terminations, intimidation, threats from hired goons, and even false criminal cases, which lead to arrests.

Each time, workers have taken Nestlé to the Labour Court, such as in the cases of the Kabirwala contract workers, Union President Mohammad Hussein Bhatti, or others. They have received a ruling in their favor. Ordering reinstatement and clearing of outstanding dues. And each time, without fail, the MNC has challenged the decision in high courts and dragged the final rulings long enough to evade reinstating or paying the employees. When long legal battles exhaust the victims’ resources and hope, the MNC considers its job done and carries on with its practices.

On February 25, 2025, Asif Javed, a former Nestlé employee, set himself on fire outside the Lahore High Court (LHC) and ultimately died on March 1st. Javed, along with other colleagues, was terminated in 2016 after attempting to unionize for better labor conditions, a clear act of anti-union retaliation by Nestlé. After a nine-year-long legal battle, Javed found himself financially and emotionally drained, with little hope for justice. In a desperate final act, he left the Lahore High Court for the last time and tragically ended his life. The minimal media coverage of this story in Pakistan, with only a few independent newspaper coverages until his final act, reveals the extreme lengths workers have to go to be heard. It also makes a strong case for the country’s apathy towards labor rights and the struggles of workers.

Nestlé’s Marketing Strategy to Build Trust

Furthermore, apart from the above-mentioned scandals, Nestlé has been allegedly involved in child slavery, contaminating groundwater, spreading misinformation, and exploiting water-scarce areas. However, these issues are rarely covered in mainstream media, and when most of us think of Nestlé, its “Pure Life” image comes to mind. The MNC understands how to conduct its public relations so that most of us associate it with an entity that cares about consumers and the community.

The company indulges in a phenomenon known as corporate philanthropy and uses it as a marketing strategy to develop trust and a good image of itself among consumers. This trust then influences consumers to purchase said corporation’s products. It utilizes important theories of social psychology, such as impression management, which is the deliberate effort to shape others’ views by managing the information shared during social interactions, and self-presentation, the act of influencing others’ perceptions of oneself, to achieve its desired public image.

One campaign that most Pakistanis will be familiar with is the Nestlé Bunyad marketing campaign that singer and social worker Shehzad Roy endorsed and took part in. The formula was aimed at addressing the needs of children suffering from an iron deficiency, a common occurrence in Pakistan. This partnership between Nestlé and Shehzad Roy was extended further when the MNC collaborated with Roy’s Zindagi Trust, a non-governmental, non-profit organization that aims to bring a new life to neglected public schools in Pakistan. Nestlé’s Healthy Kids Programme educated teachers on, despite the irony, tackling malnutrition. Ad campaigns like these are paired with misinformation and become the perfect ground for Nestlé’s profits.

Conclusion

The case of Nestlé and its many scandals highlights the urgent need for drafting relevant policies that protect consumers and workers from corporate misconduct. These cases remind us that corporations are not always what they claim to be, and we need to watch them closely while remaining skeptical of the claims they make, especially when they surround our health. A ban on suggestive marketing practices that mislead consumers about the health benefits or necessity of products is a crucial step in this direction. One that is visible in a particularly small font on Nestlé Lactogrow’s packaging, which reads “Mother’s milk is the best food for a child” in Urdu. As consumers become more aware of where their money goes, it becomes crucial to support businesses that have historically aligned with ethical practices and to hold corporations accountable for their actions.

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