Nestle Water Crisis in Flint MI Flashcards
(11 cards)
Why was the Nestlé water extraction in Flint, MI controversial?
The extraction was controversial because Nestlé continued to bottle and sell water from Michigan’s aquifers for profit, while Flint residents were suffering from contaminated drinking water, leading to ethical concerns about resource justice and environmental impact.
What key EBMgt principle did Nestlé and the Michigan Department of Environmental Quality (MDEQ) overlook when approving the water extraction permit?
They ignored stakeholder input, which is a critical source of evidence in EBMgt. Over 80,000 public objections were submitted, but they were not meaningfully considered in the decision-making process.
What are the potential consequences of ignoring stakeholder input in business decisions?
Ignoring stakeholder input can result in public backlash, reputational damage, loss of trust from communities, and regulatory scrutiny—as seen in the public outcry against Nestlé’s water extraction during the Flint water crisis.
How can external pressures, like public opinion and media, influence business decisions?
External pressures can push companies to re-evaluate decisions, especially when reputational risks increase. In the Flint case, media coverage, public protests, and petitions led to Nestlé selling its North American water business in 2021 to mitigate reputational damage.
What ethical issues were raised by Nestlé’s water extraction during the Flint water crisis?
Ethical issues included environmental injustice (extraction of resources from a community without access to safe water) and corporate greed (profiting from a public resource while the local community suffered from contamination).
In the context of the Flint water crisis, what role does transparency play in decision-making?
Transparency is crucial for building trust and ensuring that decisions are made with all relevant evidence in mind. In the Flint case, lack of transparency in the decision to grant Nestlé a water extraction permit eroded public confidence in both the company and government agencies.
How did the Nestlé Flint water extraction issue highlight the failure of applying evidence-informed decision-making?
The scientific evidence about aquifer sustainability and the ethical evidence from community stakeholders were not adequately considered. Decisions were based on economic benefits and internal data rather than comprehensive, balanced evidence from all sources.
What is the main takeaway for businesses in terms of evidence-based decision-making from the Nestlé water crisis?
Businesses should incorporate multiple sources of evidence, including stakeholder feedback and ethical considerations, to make decisions that are not only financially sound but also socially responsible and sustainable.
What long-term impacts did the Nestlé water extraction in Flint have on the company’s reputation?
The controversy led to consumer boycotts, NGO campaigns, and regulatory pressure, ultimately resulting in Nestlé’s decision to sell its North American water brands to mitigate brand damage and reduce reputational risks.
How can stakeholder engagement improve business decision-making, based on the Flint-Nestlé case?
Engaging stakeholders ensures that diverse perspectives, including those of marginalized communities, are considered, helping companies to avoid ethical missteps and make decisions that are both socially responsible and sustainable.
How would you cite this information
(Kennedy, 2018)
