Honesty and Reputation
A Japanese proverb offers wisdom for those who would consider cheating another: the reputation of a thousand years is determined by the conduct of one hour. In business, the treatment we extend to others, whether customers, suppliers, or shareholders, comes back to help us or to haunt us.
Nestle, an international food production firm, made the decision in 1970 to market infant formula in Third-World nations. Nestle was the first and only infant formula manufacturer to enter these markets. While there was nothing illegal about marketing infant formula in African nations, there was an issue of honesty. In these countries, even in situations where mothers are malnourished, mother’s milk remains pediatricians’ preferred method of nutrition for several reasons: (1) the lack of refrigeration for unused, canned formula; (2) the lack of pure water for mixing powered infant formula; (3) the lack of knowledge about the risks of diluting the richer-looking formula to the consistency of mother’s milk; and (4) the lack of funds for the purchase of formula once the free samples run out and the mother’s milk is no longer flowing. Nonetheless, Nestle, without the disclosure of these drawbacks, entered Third-World nations and enjoyed great success in marketing formula. However, the presence of the four factors caused infant mortality rates to skyrocket in those countries where the formula was marketed.
