Nestlé: A Social Media Nightmare (A)

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As the largest food and drink company in the world, Nestlé S.A. prided itself on a solid reputation built over the past 150 years. On March 17, 2010, the chairman of the board of directors was surprised by a YouTube video created by the environmental activist group Greenpeace. The graphic and provocative video criticized Nestlé for its use of palm oil in Nestlé products. It helped Greenpeace make a bold statement: Nestlé products were leading to deforestation and the extinction of orangutans. Within 24 hours, the video had more than 100,000 views and anti-Nestlé campaigns quickly emerged on Facebook, Twitter, and other social media networks around the world. At the same time, Greenpeace activists dressed up as orangutans and protested at Nestlé’s headquarters and factories in Europe. Activists urged the company to stop sourcing palm oil from companies that destroy forests in the process. Considering the popularity and force of social media, how should Nestlé react to the YouTube video?
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