The products were found to have traces which are very minute. This has led to the delisted of nestle products from china. This is a very big blow to nestle as a company since it has lost a big population which as a consumer of its products. This means that the ethical dilemma that faces the products of the company is a great challenge since it has an adverse effect on the economics of the company. Another ethical dilemma showed its face in nestle in the recent years that comprised of nestles dealing with farms that were seized in Zimbabwe where they where it was buying its milk in 2008.thius meant that most of the customers who bought the Nestle products in Zimbabwe stopped or reduced since they were in full knowledge of where the milk that was used in the production of its products came from. This brought a negative impact on the business since the number of customers in Zimbabwe...

They had it rough from critics all over the world on where they got the milk from. They also faced an ethical dilemma when they insisted on being paid by the Ethiopian government this had a negative impact of the company's image to the world. This was seen as a very prudent act by the company which does very well financially to ask for payment of the subsidiaries they give.
If nestle does not change their business activities and start applying ethics to their practices then they will continue to lose a lot of money in settlement of lawsuits and eventually go out of business since its customers will continue to boycott their products.

Reference

Demand Media, Inc. (2012). How to identify & evaluate the Ethical Dilemmas of Nestle. Retrieved December 3, 2012 from http://www.ehow.com/how_5895247_identify-evaluate-ethical-dilemmas-nestle.html