Wednesday, April 27, 2011

Nandu vs. Cory

"Nandu Nandkishore: The Nestle Executive Who Disrespected Cory Aquino!"
by The EQualizer Post, 15 April 2011
Full and original article appears here.

Image from The EQualizer Post

Frits van Dijk, head of Nestle’s business in Asia, Oceania, Africa and the Middle East, will retire in September. Nandu Nandkishore, who became head of Nestle’s nutrition unit last year, will replace him.

We do not believe that it is morally acceptable for Nestle to promote senior executives even if they cheat during their overseas assignments, deceive and cover-up serious misdeeds, treating shareholders and the public as gullible fools.
Are cherished Nestle values not important anymore? Are controversial executives just "kicked upstairs" in Nestle? If so, this would be a great insult to all the honest and competent executives in Nestle worldwide!

Some companies are not content with just being monopolies.
They have to be bullies and hypocrites.
Take the case of a multinational that espouses “trust, integrity and honesty.”
Alas, their behavior is the exact opposite.
A curious case involves one distributor who discovered a sexual affair between their top officer and the sales manager in charge of their account.
Instead of addressing the blatant conflict of interest, guess what the multinational did when this was brought to the officers’ attention?
They illegally terminated the distributor’s contract, and threatened him so he would remain silent.
It’s enough to make you spit in your coffee and throw it at their faces. Ramon Tulfo (Philippine Daily Inquirer)

My friends at the Philippine branch of a multinational coffee-dairy maker must fix the stink about their sales manager and a distributor. The story is going around town. The food giant’s female sales boss not only is having an affair with their distributor’s married general manager, but also has caused the latter to abscond with company funds. The distributor’s owners are scandalized that the multinational has chosen to treat the affair as one of consenting adults, instead of a conflict of interest. That’s bad, since the multinational’s vaunted primary corporate policies are honesty, integrity and fairness. Jarius Bondoc (Philippine Star)

Several months ago, I wrote about this food multinational corporation that was bullying one of its Filipino distributors. Considered the world’s largest food and drink company, this multinational had terminated its contract with a distributor and had threatened to do the same with another distributor. The reason stated was conflict of interest.
The alleged conflict of interest was based on Distributor 1’s shareholders’ discovery that one of its executives, a married man, was having an affair with a sales executive of the multinational. The relationship led to double the amount of discounts on the multinational’s goods given to retailers (such as groceries) by the executive. This led to brisk sales, but at a loss to the distributor.

The multinational made money all right because it sold its brands, and their executive got recognition and financial incentives because of her performance. However, all these were at the distributor’s expense. Even more disturbing, an independent audit showed that there were “phantom deliveries” of products to the distributor, non-existent goods, but still paid for because of the connivance between the parties to the illicit affair.
* * *

When the distributor brought up the illicit relationship to the multinational executive’s superiors, they shrugged it off as an affair between two consenting adults. This was despite the company’s Corporate Code of Ethics that enjoins its management and employees to “avoid even the appearance of impropriety in its business relationships on behalf of the company.” In the code, there is also a provison that says “sanctions will be applied in the event of misconduct or abuse of established corporate standards.”

Well, sanctions were applied all right, but to the wrong party—my gulay, to the distributor!
Eventually, the multinational had a dialog with the distributor to settle their differences. Nothing came out of it.

As it turned out, this was not an isolated case. Another sales employee of the multinational coerced five Filipino distributors of the company in Central Luzon to pass on goods to Metro Manila wholesalers at 8 to 10 percent discount.

Manila distributors like Distributor 2 could not compete with such low prices, but because the multinational forced it to “hit targets at all costs,” it had no choice. In the process, it lost money.

* * *

My gulay, the distributors later found out that the customer offering preferential discounts was the executive’s husband. They discovered this when the checks they were given by the customer bounced. Upon investigation, the checks were traced to the executive’s account. And the distributors were not the only ones left holding the bag. Just when the couple’s scam was discovered, the executive’s husband got cash advances from the Metro Manila wholesalers for goods they never got. One of them even lost P22 million.

When the distributor approached the multinational for redress, the company did not accept any responsibility and instead offered to help only as far as paying for the distributors’ legal expense to sue. However, independent lawyers say the executive, by her verbal or written orders, some in documents with the multinational’s letterhead, bound the company to take responsibility by virtue of the doctrine of “apparent authority.”

What do you do with a bully who runs roughshod over its distributors? You take him to court!
Emil Jurado (Manila Standard)"


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