Nestle: Bottling Water During a Drought

Nestlé – Bottling Water During a Drought

Pekio Vergotis

Marylhurst University

Abstract

Corporations implement policies, make decisions and create goods that inevitably affect the societies in which they operate. Because their operations can have an immediate impact on quality of life and well-being, it is critical that weigh their financial interests against their responsibility to the communities they serve. When a company grows experiences rapid growth and diversification on a global scale, this responsibility takes on new significance as the potential for harm or good increases exponentially. When a global corporation undergoes multiple acquisitions, as well as changes in leadership and profound shifts in strategy, it can easily lose sight of its core values and the lessons learned in the past. In looking at Nestlé’s expansion and diversification history leading up to its recent transformation from a processed goods company to a producer of global nutrition, water and wellness goods, we will examine the recent controversy surrounding Nestlé’s water extracting and bottling operation in Cabazon, California, an area facing severe drought. By examining the current situation in the context of Nestlé’s history of handling past controversy, we will illustrate the conflict that ensues when a company reacts in a manner that veers from its core values – in this case - pragmatism, flexibility, willingness to learn and an open mind and respect for other people and cultures (Nestlé).

Keywords: Maybe they should stick to chocolate bars, Nestlé, Controversy, Cabazon, CA

Introduction: Corporations and Responsibilities

Corporations implement policies, make decisions and create goods that inevitably affect the societies in which they operate. Because their operations can have an immediate impact on quality of life and well-being, it is critical that weigh their financial interests against their responsibility to the communities they serve. When a company grows...