Nestlé, the world’s largest food company, recently launched a campaign to be awarded  compensation for a nationalized company in Ethiopia. The livestock company was previously owned by Schweisfurth Group of Germany, a subsidiary of Nestlé, but was nationalized by the former government of Ethiopia in 1975. Nestlé requested $6-million (U.S.) in compensation at the 1975 exchange rate, some $4.5-million (U.S.) more than the Ethiopian government offered to pay.

Ethiopia is the world’s poorest country and is currently facing the possibility of a famine caused by a three-year drought. It is feared by aid agencies that the famine could prove to be more disastrous than the famine of 1984, which killed one million people. Ethiopia’s Prime Minister Meles Zenawi expressed concern over the six million people in need of emergency aid, a number that he feared could grow to 15 million in a matter of months.

After stating that the issue was a "matter of principle," he went on to say that "it is highly desirable that conflict be resolved according to international law and in the spirit of fairness and equity."

N e s t l é dropped the charges under the guise of charity. Critics, however, realized that the drop resulted from international pressure and media scrutiny. The multinational company made the decision to award the $1.5-million (U.S.), which the Ethiopian Prime Minister said was the most the country could spare, to aid in famine relief. Although this measure has been taken, corporate reputation expert John Mahony believes that the reputation of Nestlé is already damaged and that the charity offered is a case of too little, too late.

For many, this situation provides further validation for the international Nestlé boycott; a measure that criticizes the marketing practices of this industry giant. Nestlé’s track record in the baby food market and their continued disrespect for the WHO International Code and undermining of breastfeeding has alerted activists to the flimsy practices of Nestlé. The situation in Ethiopia is yet another example of Nestlé’s social irresponsibility.

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