Criticism for Various Business Practices

Global
Corporate Ethics
Food Industry Practices
Social Responsibility
9 min read

Updated By: History Editorial Network (HEN)
Published: 
Updated:
During the 1970s, Nestlé became the focus of intense international criticism over the marketing of infant formula products in developing countries. Activists, healthcare professionals, church organizations, and consumer advocacy groups accused the company of using aggressive promotional practices that discouraged breastfeeding and contributed to serious public health risks among vulnerable populations in Africa, Asia, and Latin America. The controversy emerged during a period when multinational infant formula manufacturers were expanding rapidly into lower-income markets as birth rates slowed in many Western countries. Critics argued that Nestlé and other companies promoted breast milk substitutes in environments where poverty, limited healthcare access, unsafe water supplies, and low literacy rates made formula feeding especially dangerous when improperly used. One of the most controversial allegations involved the use of company representatives sometimes described by campaigners as “milk nurses.” According to activists and investigative reports from the period, sales representatives allegedly dressed in clothing resembling medical uniforms while visiting hospitals, maternity wards, and local communities. Critics claimed this created the impression that formula products carried official medical approval. Advocacy organizations also criticized the distribution of free infant formula samples to new mothers in hospitals. Public health experts warned that prolonged reliance on free samples could interfere with breastfeeding because milk production naturally declines when breastfeeding stops. Once the free supplies ended, families often needed to continue purchasing expensive formula products regularly. The risks associated with formula feeding in some developing regions were intensified by broader socioeconomic conditions. In communities without reliable access to clean water, refrigeration, or sterilization equipment, formula prepared with contaminated water could expose infants to diarrhea, dehydration, and waterborne diseases. Health researchers and aid groups also documented cases in which families diluted formula excessively to make supplies last longer because of financial hardship, contributing to severe malnutrition. Critics additionally argued that product preparation instructions were sometimes difficult to understand for populations facing language barriers or low literacy rates. Campaigners claimed that marketing materials often associated bottle-feeding with modernity, Western lifestyles, or improved social status, potentially influencing infant feeding decisions in vulnerable communities. Nestlé denied intentionally harming infant health and maintained that infant formula was an important nutritional alternative for mothers unable to breastfeed. The company argued that many of the broader health problems identified by critics were linked to poverty, sanitation, and healthcare limitations rather than formula products themselves. Nestlé also stated that it supported breastfeeding and later introduced revised marketing policies in response to public criticism. The controversy led to the launch of the international Nestlé boycott in 1977 and contributed directly to the development of the World Health Organization International Code of Marketing of Breast-milk Substitutes, adopted in 1981. The code established international guidelines restricting infant formula advertising and promotional activities targeting mothers and healthcare systems. The Nestlé infant formula controversy became one of the most prominent corporate ethics debates of the 20th century and significantly influenced later discussions about public health, multinational business practices, and corporate social responsibility. Why This Moment Matters : The infant formula controversy transformed international awareness of how corporate marketing practices could affect public health in vulnerable communities. It also helped establish modern standards for ethical healthcare marketing and became a landmark case in the history of global consumer activism.
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Primary Reference
Nestlé