How the Nestlé Board Handled the Infant Formula Crisis

In this episode, Lucas and Luna dive into one of the most defining corporate governance crises of the late 20th century: Nestlé's infant formula scandal. They explore how the board responded to accusations that aggressive marketing of formula in developing countries led to infant malnutrition and death. Lucas explains the 1977 Nestlé boycott, the board's initial denial, and the eventual formation of the Nestlé Infant Formula Audit Commission (NIFAC) under former Senator Ed Muskie. The conversation covers the tension between decentralized management and board oversight, the role of ethical audits, and how the crisis reshaped Nestlé's governance structure. Luna questions whether the board learned the right lessons, and they discuss the lasting impact on corporate social responsibility. Specific focus: the board's 1982 decision to invite an external watchdog, the Interfaith Center on Corporate Responsibility, to audit its marketing practices—a rare step at the time. #Nestlé #InfantFormulaScandal #CorporateGovernance #BoardOfDirectors #BusinessEthics #Boycott #NIFAC #EdMuskie #ICCR #DevelopingWorld #MarketingEthics #CSR #1970s #CrisisManagement #Decentralization #Business #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo