Exercise 8: Responsibility

Corporate Social Responsibility Of Nestlé

Introduction

Nestlé is an international brand and the world largest and beverage company which more
than 2000 brand in 191 countries around the world. The history of nestle initiated from the year
1866 with the foundation of Anglo Swiss. In 1905 Henri Nestle who was a German-Swiss
confectioner and the founder of Nestle, merged company with Anglo Swiss and now it is known as
Nestlé group. The headquarter of Nestlé lies in Vevey, Switzerland. The word Nestlé is a German
word which means represents a nest and the logo indicates the depicted young birds being feed by
their parents, hence in this way forming a link with the company’s specialization. This report
emphasizes on the sustainability of Nestlé company and specially, focusing on its Corporate Social
Responsibility. Nowadays, CSR activities are being one of the mandatory part of the organization. All
the recognized company performs CSR exercises for society or as a piece of their obligation to
sustain in the environment.

Code of Business Conduct

Since the Company was founded, Nestlé’s business practices have been governed by
integrity, honesty, fair dealing and full compliance with all applicable laws. Nestlé employees
worldwide have upheld and lived this commitment in their everyday responsibilities ever since, and
Nestlé’s reputation remains one of the Company’s most important assets today. The Nestlé
Corporate Business Principles prescribe certain values and principles which Nestlé has committed to
worldwide. This Code of Business Conduct specifies and helps the continued implementation of the
Corporate Business Principles by establishing certain nonnegotiable minimum standards of behavior
in key areas. The nature of the Code is not meant to cover all possible situations that may occur. It is
designed to provide a frame of reference against which to measure any activities.

Contribution toward agronomy assistance

Nestlé company is a large-scale also known as an International food manufacturing
corporation that mass produce the instant coffee, milk, ready to cook noodles, dairy product
and other numerous edible products. Nestle company has been focusing on agronomy
assistance. Nestlé has been helping coffee farmers of different countries by providing knowledge of
crops and also by providing barangays with livelihood skills and other opportunities. Nestlé has been
able to improve the growing method of coffee of Philippines so the farmers get better harvest and
eventually help to increase the supply of coffee that further enhance the income of the farmers. As
Nestlé has been supporting upstream market which benefits them for quality products that quite
obviously support the downstream market including the customer and consumers creating a Win-
Win situation.

Contribution toward community and nation

Nestlé also has contribution toward community and nation by creating different programs to
help the underprivileged members of the society of different countries. Few of the projects like Cut
and Sew livelihood project, Yard and Garden livelihood project, Suklay and Gunting project, Julius
Magi Kitchen project, Miss Kong Trainor’s program, Street Illumination project has been
implemented in many countries like Bangladesh. The company donates money for a good cause,
with acquaintance of a charity partner. Their work force focuses on three areas that has been
supported by the following commitments.

 Buildup rural areas

 Upgrading the Human Rights
 Promoting Honest employment and diversity
Contribution toward environmental protection and preservation
Nestlé has been contributing towards environmental protection preservation. One of the
many contribution of Nestlé is a step of initiation towards greenies afforestation, as it has made the
commitment of not doing deforestation in 2010. Furthermore, Nestlé has promised not to sell any
product that includes the process of deforestation during its manufacturing. They acquired an
acquaintance with a non-government organization in 2013 where they got hold of the guides to
track and demonstrate the areas at highest risk of deforestation. Nestlé has also supported Global
Forest Watch (GFW) by joining a number of companies through an online mapping application
where they shared information about the round-about of the forest worldwide.

Company philosophy

Nestle vision
a. The vision of nestle is to remain the main multinational association in food, nutrition,
wellbeing then wellness.
b. To maximize the utilization of good quality of local raw material.
c. To protect the earth by being focused on ecologically solid business practices, and
considering the need to safeguard on common assets and spare energy.
d. Nestlé’s idea is to be worldwide renowned leading nutrition, health and wellness
(NHW) company.

Nestle goals
a. Nestle goals is to help 50 million children to have healthier life as well as help 30 million
livelihoods in community specifically associated with its business and make progress toward
reducing the effect in its operations.
b. Nestle commits to reduce sugar by 5% added to its products by 2010.
c. Upgrade farm economic among the farmers who provide them goods.
d. Progress labors’ livelihood and protect children in their agricultural supply chain.

Nestle mission
a. Nestles mission is satisfying their customer by providing the best tasting in their product and
greatest nutritious varieties in a wide choice of food and beverage categories and other
eating instances, since morning to night.

Nestle values and principles

 a. Nestle believe in people rather than frameworks as they do the business according to a set
of principles founded on honesty, equality and general concern for society.
b. Nestle is concerned on creating a motivation for their investors.
c. Nestle believe in constant change focusing on their environment.

Past CSR activities done by Nestle and its impacts

d. Nestle had built up Rural Development Framework in 2012 which was begin to rollout in
2013 as the overall wellbeing of rural groups are essential for the long-term success of their
business.
b. Nestle has given services that worth 37.8 million in 2012 so that they could help more than
44000 farmers for better quality of products.
c. In 2012 Nestle carried out three Human Right Impacts Assessments (HRIAs), in Russia,
Uzbekistan and Kazakhstan
d. Nestle utilized more than 1180 agronomists and 12000 support staff to give guidance,
training and specified help for farmers.
e. Nestlé’s Fawdon confectionary production had line in the UK has put CHF (Swiss Franc) 4.9
millions of an anaerobic absorption framework, completed in September 2014, that changes
over solid and liquid sewage wastage into clean water and methane gas using common
natural absorption shapes. Due to this office will save 1000 tons CO2 reliably year, cut solid
waste by 4000kg consistently.

Current CSR project and outcomes

a. Nestle has planted 480,000 trees in the area of 2,300 hectares until 2016, according to their
RILEAF project. Beside that nestle uses recyclable water bottle that is prepared with almost
thirty less plastic than the regular half-liter bottle” for environment sustainability.
b. Nestle has worked on waste management. By, 2016 Nestlé’s 182 factories reached nil waste
for dumping. Nestle reduces waste for disposal by 77% (105000 tons) till 2006 which now
increased to 82% which is the great achievement for nestle.
c. Nestle joined the Feed the future action for Climate Smart Cocoa which helped the cocoa
maker in Ghana to receive agriculture practices to counterbalance the difficulties of climate
change
d. Nestle has started evolving educational resources for both health maintenance professionals
and parents on the welfare of breastfeeding and run campaigns and seminars in 2016. It was
seen that mother who lacks breast feeding were using the milk powder for their babies
where uneducated mother dilutes the powder milk to make it long lasting and often with
contaminated water which is harmful for their babies.
e. Nescafe has been developed in Vietnam so that it could reach the demands for their Nescafe
coffee products and also created more than 200 job opportunities.

Related positive and negative outcomes of CSR activities

The globalization of nestle has brought both negative and positive impacts in different
aspects while doing CSR activities.

Impacts on environment
The company has been working on environment sustainability. Company brought the
positive changes in environmental sectors by producing the goods that is least harmful to earth. For
that they use recyclable bottles and since, 2008 greenhouse gas release and non-renewable energy
effects for the packaging process have been condensed by 19% in Nestle water. On the other side,
nestle have negative impacts on environment such as pollution and misuse of resources. As per the
Green piece nestle neglected to comply with the regulation of China and released mass waste in
rivers and lake there. Similarly, company illegally pumped many gallons of water from California’s
San Bernardino National Forest for a long time, which is against the law.

Impacts on economy
Nestle has positively and negatively manipulated the economy of many nations. The positive
side of the organization is that Nestle have provided job and training opportunity to people. Nestle
has worked with Vietnam to order to meet the Nestlé coffee requirement where company provided
more than 200 job in that territory. When nestle conveyed work to the people of different country it
also empowered child labor in developing countries which is negative side of nestle. As per the
report provided by Fair Labor Association informed that 1.8 million kids in West Africa are in risk of
exploitation as well as child labor. Nestle signed a contract in2001 which tells to end the child labor
but nestle violated it.

Impacts on society
Nestle is renowned for many things, for instance, the newborn child recipe scandals, instant
noodles and so on. But every sides have different story. Nestle has been drawn out been the
suspects of harming the health of children. Though nestle claims that breastfeeding is finest, it was
discovered that they would contract deals young ladies dressed as medical caretakers to speak to
moms and give them tests to get them captured on new born child recipe. Various poor and
undernourished third-world ladies are physically unfit for breastfeeding and are worried with the
basics of survival where nestle take an advantage of that. These uneducated mother dilute the
powder milk and use contaminated water that harms the child. Recently, nestle start to provide
knowledge about the advantage of breastfeeding to both health care professional and parents.
Nestle is a huge company and has considerable measure of impact over many nations, particularly in
the consumer industry. They should utilize that energy to spread a positive impact and be a good
example with the goal that other developing organizations can take after their lead so they can
contend and be feasible in the global market.

References:
https://www.nestle.com/
https://samplius.com/