Miltonfriedman Introduction: Nestle is aninternational brand and the world largest food and beverage company which has morethan 2000 brand in 191 countries around the world.
The history of nestle was initiatedfrom the year 1866 with the foundation of Anglo Swiss. In 1905 Henri nestle whowas a German-born Swiss confectioner and founder of nestle, merged company withAnglo Swiss and now it is known as nestle group. The headquarter of Nestle liesin Vevey, Switzerland.The wordnestle is a German word which represents a nest and the logo indicates thedepicted young birds being fed by their parents, hence in this way forming alink with the company’s specialization.
(thain, 2014). This reportemphasis on the sustainability of Nestle company and especially, focusing onits Corporate Social Responsibility. Nowadays, CSR activities is being one ofthe mandatory part of organization. All the recognized company perform CSR exercisesfor society or as a piece of their obligation to sustain in the environment. Accordingly,all through the report, I have tried to focus upon CSR activities of Nestle andhow the activities are done by the company and its impacts in the society. I haveput a light on giving a brief about company philosophy that include the longterm vision and goals of the company along with its moral principles and values.Then I move toward the stakeholder interest that explains their engagement whichis fundamental to nestles continuing business success. This report containspast and present CSR report as well as the future commitment of the company.
Corporate socialresponsibility Corporationworking in the society takes benefit from the society itself and that is thereason why the corporation member of society itself needs to take certain stepsthat would help in the improvement of the society. The improvement might beenvironmental, social, cultural and so on. So this process of corporation helping the society voluntarily is knownas corporate social responsibility. Corporatesocial responsibility is an idea with numerous definitions and practices. Theway it is comprehended and actualized varies incredibly for each organizationand nation. In addition, CSR is an extremely expansive idea that tends tonumerous and different themes, for example, human rights, corporateadministration, wellbeing and security, natural impacts, working conditions andcommitment to financial advancement. Thereshould be a prospective responsibility for making ethical judgement.
As per, theeconomic responsibility manager of the corporation should involve only withlegally or economically responsibilities where giving money to a charity withregards to the income is considered as self-imposed taxation.According to the ethical responsibility both thesociety and business corporation are interrelated with each other that includeinputs i.e. employees, capital and physical resources. Discretionaryresponsibility includes unidentified donations with no expectation of a paybackthat does the sponsorship for the local event and fund to a charity (boddy, 2016). Corporate Social Responsibility activities done by Nestlecorporation “Our objective is to be theleader in Nutrition, Health and Wellness, and the industry reference forfinancial performance, trusted by stakeholders.” (Anon.
, 2017) Nestlemarket has always focused on their CSR project with their overall umbrellatheme of shared value creation to ensure that the corporation meets the U.N.prosperity development goals of nutrition, water and rural development. Theyperform business that is guided by their values rooted in respect also bycontributing to the society to ensure the long term achievement of theirbusiness. Throughout the business they assure that the following goals are tobe met. Contribution toward agronomyassistance Nestlecompany is a large-scale also known as an international food manufacturingcorporation that mass- produce the instant coffee, milk, ready-to-cook noodles,dairy product and other numerous edible products. Nestle company has beenfocusing on agronomy assistance.
Nestle has been helping coffee farmers ofdifferent countries by providing knowledge of crops and also by providingbarangays with livelihood skills and other opportunities (Miller, 2016). Nestlehas been able to improve the growing method of coffee of Philippines so thatfarmers get better harvest and eventually help to increase the supply of coffeethat further enhance the income of the farmers (miller, 2016). As nestle has been supporting upstreammarket which benefits them for quality products that quite obviously supports thedownstream market including the customer and consumers creating a Win-Winsituation. Contribution toward community andnation Nestle alsohas contribution toward community and nation by creating different programs tohelp the underprivileged members of the society of different countries. Few ofthe projects like Cut and Sew livelihood project, Yard and Garden livelihoodproject, Suklay and Gunting project, Julius Maggi kitchen project, Miss KongTrainor’s program, Street Illuminations Projects has been implemented in manycountries like Bangladesh (hasan, 2015). The company donates money for a good cause, withacquaintance of a charity partner. Their work force focuses on three areas thathas been supported by the following commitments. · Builduprural areas· Upgradingthe human rights· Promotinghonest employment and diversity Contributiontoward environmental protection and preservation Nestle had has been contributing towards environmentalprotection and preservation.
One of the many contributions of Nestle is a stepof initiation towards greeneries afforestation, as it has made the commitmentof not doing deforestation in 2010. Furthermore, nestle has promised not tosell any product that includes the process of deforestation during itsmanufacturing. They acquired an acquaintance with a non-governmental organizationin 2013 where they got hold of the guides to track and demonstrate the areas athighest risk of deforestation.Nestle has also supported Global Forest Watch (GFW) byjoining a number of companies through an online mapping application where theyshared information about the round-abouts of the forests worldwide (Nestle, 2013). Company philosophy(vision, Goals, Values and principles) Nestle vision a. The vision of nestle is to remainthe main multinational association in food, nutrition, wellbeing then wellness. b.
To maximize the utilization of goodquality of local raw material. c. To protect the earth by being focusedon ecologically solid business practices, and considering the need to safeguardon common assets and spare energy. d. Nestlé’s idea is to be worldwiderenowned leading nutrition, health and wellness (NHW) company (Nestle, 2017) Nestle goals a. Nestlegoals is to help 50 million children to have healthier life as well as help 30million livelihoods in community specifically associated with its business andmake progress toward reducing the effect in its operations.
b. Nestlecommits to reduce sugar by 5% added to its products by 2010 (Nestle, 2017) c. Upgradefarm economic among the farmers who provide them goods. d. Progresslabors’ livelihood and protect children in their agricultural supply chain (Nestle, 2017).
Nestle mission a. Nestles mission is satisfying theircustomer by providing the best tasting in their product and greatest nutritiousvarieties in a wide choice of food and beverage categories and other eatinginstances, since morning to night (Jurevicius, 2013) Nestle values and principles a. Nestlebelieve in people rather than frameworks as they do the business according to aset of principles founded on honesty, equality and general concern for society. b. Nestleis concerned on creating a motivation for their investors. c.
Nestlebelieve in constant change focusing on their environment (Nestle, 2010). Stakeholder interest Stakeholders Engagement Community Nestle have worked with the stake holders of the community in the Mossel Bay Locale of South Africa since 2009. Drought (dry season) is one of the great problem in Moosel. Over inclusive way to deal with water administration, nestle provided dairy agriculturists with water and begun to address the water quality in a local lagoon. Nestlé’s factory in those region is set to develop a zero water facility in 2017.
Non-governmental organizations (NGOs) Currently, nestle have supported the World Animal Protection by contributing to the partner on a business benchmark on Farm Animal Welfare (BBFWA), which is worldwide measure of animal welfare principles in food organization. Representatives of NGOs also supported Nestle on animal health and welfare issue. · Suppliers (include farmers) Nestle have helped the coffee farmers in Lampung area of Indonesia that support productivity and nature of the Robusta coffee through Nescafé plan.
76 rancher(farmer) field schools has started around 20000 ranchers on good agricultural practices (nestle, 2017). Nestle also improved the growing method of growing coffee in Philippines so that farmer get better harvest which will return in quality product to nestle (Miller, 2016) Consumer and common public Nestle have helped 62000 youthful Europeans to find employment opportunities or training project as 200 organizations have joined Youth activity, started by nestle company. Currently nestle is working with America and preparing the similar action plan for Asia, Oceania, Africa and the Middle East · (Nestle, 2017) Past CSR activities done by Nestleand its impacts a. Nestlehad built up Rural Development Framework in 2012 which was begin to rollout in2013 as the overall wellbeing of rural groups are essential for the long-termsuccess of their business.
b. Nestlehas given services that worth 37.8 million in 2012 so that they could help morethan 44000 farmers for better quality of products. c. In2012 Nestle carried out three Human Right Impacts Assessments (HRIAs), inRussia, Uzbekistan and Kazakhstan d. Nestleutilized more than 1180 agronomists and 12000 support staff to give guidance,training and specified help for farmers. e. Nestlé’sFawdon 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 methanegas using common natural absorption shapes. Due to this office will save 1000tons CO2 reliably year, cut solid waste by 4000kg consistently (Nestle, 2012) CurrentCSR project and outcomes a. Nestle has planted 480,000 trees inthe area of 2,300 hectares until 2016, according to their RILEAF project. Beside that nestle uses recyclable water bottlethat is prepared with almost thirty less plastic than the regular half-literbottle” for environment sustainability.
b. Nestle has worked on wastemanagement. 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 achievementfor nestle. c. Nestle joined the Feed the future actionfor Climate Smart Cocoa which helped the cocoa maker in Ghana to receiveagriculture practices to counterbalance the difficulties of climate change d. Nestle has started evolvingeducational resources for both health maintenance professionals and parents onthe welfare of breastfeeding and run campaigns and seminars in 2016.
It wasseen that mother who lacks breast feeding were using the milk powder for theirbabies where uneducated mother dilutes the powder milk to make it long lastingand often with contaminated water which is harmful for their babies. e. Nescafe has been developed inVietnam so that it could reach the demands for their Nescafe coffee productsand also created more than 200 job opportunities. (Saya, et al., 2016) Relatedpositive and negative outcomes of CSR activities The globalization of nestle has brought both negative andpositive impacts in different aspects while doing CSR activities. a. Impacts on environment The company hasbeen working on environment sustainability. Company brought the positivechanges in environmental sectors by producing the goods that is least harmfulto earth.
For that they use recyclable bottles and since, 2008 greenhouse gasrelease and non-renewable energy effects for the packaging process have been condensedby 19% in Nestle water. On the other side,nestle have negative impacts on environment such as pollution and misuse ofresources. As per the Green piece nestleneglected to comply with the regulation of China and released mass waste inrivers and lake there. Similarly, company illegally pumped many gallons ofwater from California’s San Bernardino National Forest for a long time, whichis against the law. b. Impacts on economy Nestle has positivelyand negatively manipulated the economy of many nations.
The positive side ofthe organization is that Nestle have provided job and training opportunity topeople. Nestle has worked with Vietnam to order to meet the nestles coffee requirementwhere company provided more than 200 job in that territory. When nestleconveyed work to the people of different country it also empowered child laborin developing countries which is negative side of nestle.
As per the reportprovided by Fair Labor Association informed that 1.8 million kids in westAfrica are in risk of exploitation as well as child labor. Nestle signed acontract in2001 which tells to end the child labor but nestle violated it. c. Impacts on society Nestle is renownedfor many things, for instance, the newborn child recipe scandals, instantnoodles and so on. But every sides have different story.
Nestle has beendrawn out been the suspects of harming the health of children. Though nestleclaims that breastfeeding is finest, it was discovered that they would contractdeals young ladies dressed as medical caretakers to speak to moms and give themtests to get them captured on new born child recipe. Various poor andundernourished third-world ladies are physically unfit for breastfeeding and areworried with the basics of survival where nestle take an advantage of that. Theseuneducated mother dilute the powder milk and use contaminated water that harmsthe child. Recently, nestle start toprovide knowledge about the advantage of breastfeeding to both health careprofessional and parents.
Nestle is a hugecompany and has considerable measure of impact over many nations, particularlyin the consumer industry. They should utilize that energy to spread a positiveimpact and be a good example with the goal that other developing organizationscan take after their lead so they can contend and be feasible in the globalmarket.(haruka, et al., 2016)