What is the trade standard of Nestle?

What are the pros and cons for a company like Nestle if it chooses to use fair-trade chocolate?

• I can't think of anything other than a better image? Cons would be POSSIBLY less profit or at least smaller profit margin. Can anyone think of anything, please?

• Answer:

  I don't think it is possible for Nestle to salvage its tarnished image that easily. It has an appalling track record. The profit margins on fair trade goods are currently higher. The problem for Nestles wouild be that it has no experience of selling quality products. It could emulate Cadbury and buy another company. There may be a political advantage. A national government may give Nestles more access and freedom to operate if it can claim to be in some way ethical. It needn't be at all ethical just give the appearance. ====================== hypothetical Example; If Nestles agrees to pay a fair price for Cocaoa in Equador, it might hope the Equadorian government will allow it to agressively market its baby milk within the country. (Nestles has an infamous long history of trying to pusuade third world mothers that breast milk isn't best). ========================== Nestles may not want to attract attention to its general bad ethical record by doing something vaguely ethical. It may well backfire. Think about the launch of McDonald's salads. When the Conservative politicians went around in baseball caps in order to appeal to a young audience they didn't look cool just very silly. Changing your image isn't an easy process, the change needs to be root and branch or the public won't buy into it. Trying to brand higher quality chocolate along side cheap mass market chocolate runs the risk of confusing the consumer and damaging both brands. Budget consumers might start to associated Nestle as being more expensive, whilst more discerning consumer may not trust quality chocolate sold by a company that sells Kit-Kats.