Corporate responsibility –

a critical analysis of Nestle

Mohammad Rashedul Hoque

 Nestle
• America’s Most Admired Food
Companies” in Fortune magazine for the
twelfth consecutive year.
• the world's largest food company, whose
brands include Nescafé, Jenny Craig,
Gerber and Poland Spring, San Pellegrino,
Stouffer's and Maggi.
 Nestle’s Objective
• “For a business to be successful in the
long term it has to create value, not only
for its shareholders but also for society.”
 Nestle at a glance
• Presently Nestle is operating their business activities in
84 countries with a 456 factories and a totaling of more
than 0.27 million employees.
• In 2008 the company reported 109.9 billion CHF group
total sales with a net profit of 18.0 billion CHF.
• Some of the key issues that the company presented in
their CSV report 2007 are 76% of increased production
volume since, 22% Reduction of packaging material for
bottled water, 3% reduction of energy use, 16 %
reduction of green house gas emission and 28 % of
water withdrawl. Nestlé Waters accounts for 0.0009% of
fresh water withdrawals from our earth.
Organizational sustainability

Capacity and
Sustainability

Institutional Program Financial

Governance Quality of Financial
Service Management

Mgmt Revenue
Practice Customer Stability
Focus

Human Cost
Resources External Consciousness
Relations
 Nutrition, Health and Wellness profile

• Strategy has been based on nutritious products that contribute

to the health and wellbeing of consumers.
 Values of Nestle
Value for Nestlé
• Securing supplies of high-quality raw materials
• Improving community relationships and product quality
• Lowering manufacturing and distribution costs
• Entering new and emerging markets
• Achieving competitive shareholder returns
Value for Society
• Improved yields and increased incomes
• Reducing consumption of natural resources
• Creating jobs in local Communities
• Widening access to nutritional products consumers prefer
• Generating local investment and economic growth
Environmental issues
 Environmental issues
• 18% of our factories are certifi ed to ISO 14001 and/or OHSAS
18001. We aim to certify 100% of our factories by 2010.
• Reducing green house gas emission though using clean fuel and
using natural gas
• Reduciton of methane emission by using that as a fuel
• Reduciton of transportation emission by setting up factories in the
area where they work.
• Reduction of water withdrawl
• Use of coffee crops as a substituted fuel
 Environmental programme
• Environmental Protection Programme in argentina
• Using Landfill Methane Gas Efficiently in USA
• Biogas Production in Milk Farms in China
• Recycling Contest in Malaysia
• Tree Planting Programme in Phillipines
• Sustainable Packaging in italy
 Social issues
• Eco-Schools Programme
• School Recycling Programme
• Poverty and hunger programme
• Primary education programme
• Stakeholder participation in developing product quality
 Critisism and corporate crime
• Melamine concentrations in milk products
• Unethical Marketing of Artificial Baby Milk-substitute of
breastfeed
• Exploiting Farmers-Ivory cost and Ghana, Buying cocoa from
child slaves
• Union Busting-Colombia, Pakistan
• Illegal extraction of groundwater-Brazil
• Fraudulent Labeling-Colombia
 Conclusion
• Achieved a huge market share
• Maximizing shareholders benifit
• Remarkable social activities
• Future plan

1. Continued expansion in science-based solutions,

2. Promoting consumer interest – Nutrition, Health and Wellness,
3. Concern for the future: water and food security,
4. Base of the pyramid strategy through Popularly Positioned Products, which we will
continue to expand, to offer an increasing array of products with higher nutritional
value at lower prices.