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Nestle is a world-wide manufacturer of food like chocolate-milk bar, milk powder and coffee. Since Facebook was becoming one of the most popular social media with a huge amount of users all over Europe, Asian, America and Australia, Nestle embraced this networking technology as it launched an official facebook site for marketing and achieving more customers as well as supports.

However, lacking experiences and policies on social media administration makes Nestle getting into troubles easily and it will lose customers’ supports if no applicable measures are taken.

The following video uploaded by the Greenpeace organization reveals the environmental damage caused by palm oil purchases from Nestle to produce Kit Kat milk bars. The ‘fight’ between Greenpeace and Nestle caused Nestle a great impacts on its customer base, especially on those who were offended by the environmental damages.

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(video link: http://www.youtube.com/watch?feature=player_embedded&v=VaJjPRwExO8)

The article (http://www.1goodreason.com/blog/blog/2010/05/19/nestles-social-media-meltdown-case-study/) demonstrates a typical risk of embracement of social media in Nestle:

  • reputation risk

As the social media is opened to the public to contribute their opinions, it is highly possible that the social media technology will be utilized as a tool to make negative, abusive or offensive comments. The worse case is that those negative comments may lead to a wider range of impacts on the loyalty of customers.

This risk is particularly relevant to the company as Nestle is a food manufacturer and its reputation determine customers’ faiths on the health level of both products and the company itself.

(Countermeasure / policy)

– Nestle is supposed to be transparent on its manufacturing policies.

– It should raise a discussion board to gain responses and solutions from the public in order to interact with Internet users and earn their trusts.

Another scenario is that an employee requested an altered Nestle logo to be attached to the profile picture of commenting user, otherwise his/her posts will be deleted. This request led to a pool reaction on the official facebook page of Nestle, and then the employee behaved badly on the users.

 

(http://search.proquest.com.ezp01.library.qut.edu.au/docview/914991070)

This case demonstrates the following risk:

  • organization’s liability for employee acts of defamation

It is relevant to the Nestle since it was trying to have strong policy which insisted posters on its facebook page to have its logo.

(Countermeasure / policy)

– Nestle should have a effective mechanism to review the employees’ posts before their actions (posts monitoring system and rules)

– Employees who are involved in the facebook should be trained and qualified by policy / rule tests

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