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Ethical Responsibility of Multinational Companies: What Went Wrong with Maggi Brand of Nestle India?

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  • Soni P.K.

    (Assistant Professor, Department of Commerce, Swami Vivekananda Night Collegeof Arts and Commerce, Dombivli (East), Maharashtra, India.)

  • Dr. C.K. Harnawale

    (Head, Department of Commerce, Vice Principal, Peoples College, Nanded, Maharashtra, India.)

Abstract

Ethical responsibility is depicted as one of the four layers of CSR pyramid which deals with the standards, norms or expectations of all stakeholders’ moral rights (Carroll, 1991). It is expected that all multinational companies (MNCs) should equally focus on all responsibilities of CSR. However, it has been observed that the MNCs focus preferably on economic, legal and philanthropic activities by neglecting ethical responsibilities which are equally important. This negligence sometimes results in tragedic effects on the society. The Coca Cola, Cadbury, Enron, Bhopal gas tragedy are few of the examples of negligence of MNCs with regards to ethical responsibilities. This paper deals with the recent issue of Nestle Maggi in India with reference to ethical responsibilities and associated implications.

Suggested Citation

  • Soni P.K. & Dr. C.K. Harnawale, 2015. "Ethical Responsibility of Multinational Companies: What Went Wrong with Maggi Brand of Nestle India?," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 6(3), pages 73-76, September.
    • Handle: RePEc:aii:ijcmss:v:6:y:2015:i:3:p:73-76
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    References listed on IDEAS

    as
    1. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
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