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GRENOBLE GRADUATE
SCHOOL OF BUSINESS
Content
Executive summary
Nestle is a well known multinational company, they operate all around the
world and deliver some good quality FMCG, but at the ethical level they dont
really score very well, they have a long history in boycotting from their origin
which is Switzerland going to the UK and USA. Their more significant problem
comes from their baby milk formula that for many human rights activist was the
reason for the death of many kids around world. Nestls story dont stop here,
they are also accused of child labour in Brazil and manipulating farmers, where
they were trying to look ethical through helping them when their real intention
was actually to regulate the market prices. Aside of the human level, Nestle is
also criticised for testing their products on animals like coffee carcinogenicity
on mice. But with all this problems, the image is not completely bad for the
company as they are trying to act ethical at some levels, such as water, where
with the help of some international organisations, they are raising awareness
about the important of water and how it can become a major problem in the
future if its not treated seriously soon. Therefore, since Nestle is a powerful
multinational company it should act like a role model to other companies and
try to be more ethical and transforming the world into a better place by
contributing the society and humanity alike especially when we talk about
babies and future generations, it is Nestls responsibility to make sure that kids
are brought up in a safe environment and through healthy nutrient and quality
food.
Introduction
In todays world, CSR and ethics are becoming an essential part of success of
any company especially if it was a multinational one, like Nestle. So how is
Nestle dealing with CSR and its responsibility toward the society and
environment? Thus, through our work we will explore in details Nestls
Elkingtons TBL and how they are dealing with the 3Ps, especially the Planet
and People parts when they are doing business. We will also take a look at the
initial scope concerning the aspects including Carrolls CSR widened by
economic, ethical and legal spheres. Unfortunately there are many examples
which identify the drastic actions of Nestle that are not complying with the
ethical and morality laws which is leading a negative effect on the Stakeholders
and future generation.
Nestl Research Center (NRC) has published new research, exploring ways in
which human behaviour towards food influences dietary choices. They also
launched new health economics studies in order to better understand how to
maximize the health return on costs for nutritionally-vulnerable consumers
buying fortified products. Another contribution, Nestl Health Science has
developed an eating assessment tool that can help healthcare professionals and
careers identify dysphagia problems early in at-risk patients. They have
launched new bio fortification research in Cte dIvoire.
When we talk about water, Nestle have continued our work to address water
challenges with partners that include the 2030 Water Resources Group, the UN
Global Compact CEO Water Mandate, the Water Footprint Network and the
Alliance for Water Stewardship. They also worked with suppliers to promote
good water management through the Sustainable Agriculture Initiative at Nestl
(SAIN). They have also incorporated guidelines on water into their Responsible
Sourcing Guidelines. They have conducted 16 additional Water Resource
Reviews at their factories. And finally, they have contributed to helping
communities around the world address water issues following natural disasters.
In terms of rural development, Nestle have developed a new Rural Development
Framework which we will start to rollout in 2013. It is their goal to roll out the
Rural Development Framework to 21 countries by 2015. They have launched
Responsible Sourcing Guidelines for sugar. They are the first food company to
partner with the Fair Labor Association. They also have updated their
Commitment on Child Labor in Agricultural Supply Chains in three key
commodity areas: cocoa, hazelnuts and vanilla.
So as we see, Nestle is trying to be as active as possible when it comes to the
3Ps, through their Creating Shared Value program they address some of the
worlds severe problems such as water where According to the latest figures by
UNICEF and the World Health Organization, 8% of the worlds population still
rely on unimproved water sources for drinking water, and 3% drink surface
water for example, from rivers, ponds, or lakes. In rural areas of least
developed countries, 97 out of every 100 people do not have piped water. And
according to Nestls Chairman: the current rate of overuse, we will run out of
water long before we run out of oil. And Nestle are aggressively addressing this
issue with the help for other worldwide organizations to raise awareness about
how huge and dangerous this problem is to future generations. Moreover, we
cant ignore their work when it comes to Rural Development where they
provided services worth USD 37.8 million to assist more than 44 000 farmers
worldwide and direct financial assistance up to USD 27 million as well as
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does not care for the youngest generation, which is very important in society.
Nestle is dangerous because most of the food products on the market comes
from nestle and cannot be sure that it does not contain harmful substances.
Conclusion:
To conclude, we saw that Nestle are trying hard to enhance their image with the
creating shared value program, but that is not hiding or changing the fact that
they are harming the society in many ways such as the baby milk formula,
which is leading to the death of many babies around the world and threaten the
future generations since Nestle has a dominant market share in different product
lines in FMCG. Therefore, while looking somehow ethical, the real fact is that
only Nestls shareholders are the only stakeholders benefiting from the
companys strategy and work. Thats why if they aim to succeed in the future,
Nestle should start taking care and looking more for their other stakeholders, to
mention babies, farmers, future generation and employees.
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References:
Nestle in society. (2012) Creating Shared Value and Meeting our Commitment.
[Online] [Accessed on 2 January 2014] Available from:
http://admin.csrwire.com/system/report_pdfs/1299/original/Nestle-CSV-FullReport-2012-EN.pdf
Muller, M. (2013) Nestle baby milk has grown up but not gone away. [Online]
[Accessed on 2 January 2014]
http://www.theguardian.com/sustainable-business/nestle-baby-milk-scandalfood-industry-standards
Baby milk action: nestle boycott list, 2010 [Online] [accessed on 3 January
2014]
http://info.babymilkaction.org/nestleboycottlist
Nestls corporate website. 2013[online] [Accessed on 3 January 2014]
www.nestle.com
Carrolls (1991) CSR pyramid [Online] [Accessed on 3 January 2014]
www.csrquest.net
Nestle corporate business principles [Online] [Accessed on 4 January 2014]
http://www.research.nestle.com/asset-library/documents/corporate-businessprinciples-en.pdf
Nestle stakeholder criticism [online] [accessed on 4 January 2014]
http://www.nestlecritics.org/index.php?
option=com_content&task=category§ionid=8&id=26&Itemid=53
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