NESTLE COCOA CHILD LABOUR

Nestl is the worlds leading nutrition, health and wellness company. It employs around 330,000
people and has 461 factories in 83 countries around the world; almost half of these are in
developing countries.

In the UK, Nestl employs more than 7,000 people across 19 sites. The company is one of the
UK and Irelands major exporters, exporting over 300 million worth of products every year to
over 50 countries around the world.
Nestl is a household name within the UK, producing some of Britains most popular brands
such as KIT KAT, NESCAF, SMARTIES, GO CAT and SHREDDIES. Over one
billion KIT KATs are produced in the UK every year.

Nestl has a series of corporate business principles designed to guide the way in which the
organisation and its employees operate. These principles are at the basis of Nestls culture and
aim to protect the trust of its consumers and other stakeholders. The principles and their
associated policies are concerned with activities related

Nestl works within the secondary sector of industry, creating and supplying products to
customers. It converts raw materials into finished goods for consumers to enjoy. Raw materials
used in many of Nestls products are sourced from the primary sector. For example, Nestl
brands such as KIT KAT, AERO and SMARTIES contain cocoa sourced from cocoa farmers
around the world.

Nestl works with cocoa farmers in order to help them run profitable farms and eliminate child
labour, whilst developing a sustainable supply of cocoa for Nestl products.

This case study looks at the importance of applying the principles of corporate social
responsibility to a business activities. It will demonstrate how Nestl creates shared value within
its cocoa supply chain to enhance the lives of cocoa farmers whilst also improving the quality of
its products for consumers.

PROBLEM
The use of child labour in cocoa production Because of the poverty and a lack of schools
Violation of child labour law Enslaved children and child trafficking

OBJECTIVE
Introduces the nestle supplier code
Monitoring all participants in its supply chain and set clearer labor standards.
Give special training on how to address child labor problem

AREAS OF CONSIDERATION
1.In its action plan Nestl sets out further measures that will be needed in the years ahead. The
company and the FLA will publish annual updates on the progress made.
2.Nestl is committed to transparency throughout this process.
3.It is the first company in the food industry to join the FLA, a non-profit multi-stakeholder
initiative that works with major companies to improve working conditions in their supply chains.
4.Nestl asked the FLA to map its cocoa supply chain in Cte dIvoire. It has pledged to work
with the FLA over the long term to address the issues raised in its report.

5.The current action plan is just the first step in a long process.
6.The complexity of child labour in the cocoa supply chain means solving the problem will take
years.

ALTERNATIVE COURSE OF ACTION

1. The FLA made 11 recommendations to Nestl, all of which the company fully supports and is
acting upon, in some cases in collaboration with its partners.
2. Nestl is committed to the eradication of child labour in its cocoa supply chain.
3. Measures needed to tackle child labour are prioritised, including improvements to the
companys supplier code.
4. Nestl wants suppliers in Cte dIvoire to ensure that the farmers growing cocoa for the
company are fully aware of the obligations contained in the code.
5.The company will work more closely with its suppliers, its certification partners and other
bodies to ensure those working throughout the cocoa supply chain receive better training on the
nature of the child labour problem and how to address it.