The international infant formula controversy: A dilemma in corporate social responsibility

One of the most controversial issues to face any industry has been the infant formula problem, especially in the less-developed countries (LDCs). Producers of infant formula were confronted with a boycott which evolved from a grass-roots level to one which involved many nations, international and national public agencies, non-profit organizations, scientific research institutions, large church denominations, and every company in the industry. An international boycott was aimed at Nestlé, one of the largest producers of infant formula.The aim of this paper is (1) to examine both sides of the controversy, and (2) to analyze the results of the boycott, specifically the introduction of product codes and changes in industry and company strategies. In both areas ethical implications were involved.James C. Baker is Professor of Finance and International Business at Kent State University, Kent, Ohio. Previously he was Assistant Professor at the University of Maryland and Associate Professor at San Francisco State University. His most important publications are Multinational Marketing: Dimensions in Strategy(1975) (with J. K. Ryans); International Bank Regulation(1978). He published more than 70 articles in e.g. Columbia Journal of World Business, Journal of World Trade Law, Journal of International Marketing, Foreign Trade Review, Management Decision, Academy of Management Journal, Journal of Business Finance and Accounting.