NESTLE Business Ethics 2014

CSR Report

Sustainability Report

Chairman of Nestle said:

“We believe we can make an important contribution to society, by going a step beyond corporate social responsibility to create value through our core business both for our shareholders and society. We prioritize the areas of nutrition, water and rural development to create shared value.”

Accountability Report

1. Organisational information

The investments of Nestle must be good for the countries where they operate, as well as good for the company. Therefore, while corporate social responsibility and sustainability represent a set of useful principles and practices, Nestle believe that the true test of a business is whether it creates value for society over the long term.

Actively engaged in the data collection process for the 2006 Global Accountability Report.

2. Organisational structure

1. Research and development

2. Sourcing of raw material

3. Manufacturing

4. Packaging

5. Distribution

6. MKT and Consumer Communication

7. Corporate Communication

8. Human Resources

9. Regulation

Nestle governing body is the Annual General Meeting of Shareholders (AGM). Leading the company is the chairman of the Board on Chief Executive Officer.

In the corporate governance are 4 committees.

CSV Report

3. Transparency dimension

Nestle Rank first among the ten assessed corporations for their transparency capabilities with a score of 54%.

4. Participation dimension

With no external stakeholder engagement policy and mixed internal member control, Nestle Rank sixth among the ten assessed corporations for their participation capabilities with a score of 38%.

5. Evaluation dimension

Nestle rank second among the ten assessed corporations for their participation capabilities with a score of 74%.

6. Complaint and response dimension

Nestle Rank fifth among the ten assessed corporations for their complaint and response capabilities with a score of 44%

It begins with the understanding that for Nestle business to prosper over the long term, the communities that the company serve must also prosper.

It explains how business can create competitive advantage, which in turn will deliver returns of shareholders, through actions that substantially address a social or environmental challenge.

Nestle is positioned to CSV in three areas: Nutrition, Water and Rural Development

Business Principles

The ten Nestle Corporate Business Principles form the basis of Nestle culture. The ten principles are implemented through the relevant codes, policies and other processes and tools.

The ten principles of business operation provide the foundations four our Creating Share Value strategy.

CEO of Nestle said:

“Creating shared values is built upon fundamental commitments to society, both to achieve the highest standards for compliance with laws, codes of conduct and our own Nestle Corporate Business Principles as well as to protect the environment for future generations.”

1. Nutrition

2. Quality assurance

3. Consumer communication

4. Human rights

5. Leadership and personal

responsibility

6. Safety at work

7. Supplier relationship

8. Agriculture and rural development

9. Environmental sustainability

10. Water

Are they in compliance with what they communicate?

Do they confuse...

?

Sustainability

CSR

with

...

Nestle didn´t confuse corporate social responsibility and sustainability but they think that both represent a set of useful principles and practices.

How the company divided different role in society and each of them have a responsible for the supervision and management.

Nestle Nutrition Council

CSV Advisory board

Any example?

REAL

Nutrition

Nestle CEO visits the Nestle-sponsored Nutrimovi programme in Guatemala, offering free nutritional advice to lower income consumers.

The Nestle Research Center Metabolic Unit runs clinical studier in areas including metabolism and energy regulation, to support Nestle Nutrition, Health and Wellness initiative

Water

Agricultural employee, visiting farmers near France, to discuss farming methods that avoid polluting ground water and in the other picture with Nestle Waters specialist taking water sample.

Rural development

Bio-fortification of cassava at Nestle Experimental Farm in Yamoussoukro, an agronomist with the farmer examines plants.

Carolina Nivela Sandra Cadenas Sonia Villaverde

Thomas Azaïs Gaspard Lestienne Kevin Lerma

Business Ethics 2014

Recommendations

Actual purpose of Nestle

1. Create economic added value with justice and distributing it with equity.

2. Supply useful goods and services, efficiently and fairly.

3. Provide jobs, opportunities in accordance with human dignity and human rights.

4. Promote the necessary relationships among stakeholders, fostering reciprocity and collaboration.

5. Strive for the continuity and sustainability of firms

6. Be a good corporate citizen. Beyond its core activities, being an agent for good within society.

1. Create economic added value with justice and distributing it with equity.

2. Supply useful goods and services, efficiently and fairly.

MULTI-BRANDS

3. Provide jobs, opportunities in accordance with human dignity and human rights.

4. Promote the necessary relationships among stakeholders, fostering reciprocity and collaboration.

5. Strive for the continuity and sustainability of firms

NESTLE SHOULD DO

NESTLE DOES

CONTINUITY

Highlight

Environmental sustainability

Water commitment

COMMITMENT

Real

6. Be a good corporate citizen. Beyond its core activities, being an agent for good within society.

NESTLE SHOULD DO

NESTLE DOES

VALUE CREATION

Implicate stakeholders in the

Nutrition, Health and Wellness

Rural development

P. Drucker;

“Free enterprise cannot be justified as being good for business, it can be justified only as being good for the common good for society”

Nestle’s purpose is specified in the mission of the company:

« To provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. »

This purpose does not refers to many ends and requirements that cannot be ignored when evaluating a business’s compliance with ethics.

The purpose should allow us to determinate whether the company’s activities are appropriate, providing us, at the same time, criteria to evaluate whether it is succeeding or not.

MISION

"Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night.

VISION & VALUES

To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved shareholder value by being a preferred corporate citizen, preferred employer, and preferred supplier selling preferred products

OBJECTIVE

New Purpose for Nestle

Be the leader in Nutrition Health and Wellness, and the industry reference for financial performance

INTRODUCTION

• Founded in 1867 by Henri Nestlé, German Pharmacist
• He launched “Farine lactée”.

The value of the discovery enabled

a rapid expansion in America and

Europe

• Headquarters are in Switzerland
• Present in 194 countries
• 468 factories
• 34 R+D centers in 4 continents

Nestlé merged with the Anglo-Swiss Condensed Milk Company

Develop the product “Nescafé”

1905

1938

1977

1996

2011

Already had Maggi, Crosse & Blackwell, Findus, Libby, the diversification of Stouffer and become the major shareholder in L’Oreal.

More acquisitions

Became the first food company to partner with the Fair Labor Association

“ To provide consumers, all around the world, with the best tasting, most nutritious choices in a wide range of food and beverage categories, creating wealth fairly distributed between our shareholders, suppliers and employees for the instigation of a continuous and sustainable improvement of our society’s lifestyle.”

ORGANIZATIONAL CHART SPAIN

Code of Business Conduct

PILLARS

8. Confidential information

9. Assets fraud protection

10. Bribery and Corruption

11. Gifts, Meals and entertainment

12. Discrimination and harassment

13. Failure to comply

14. Reporting illegal conduct

1. Compliance with law

2. Conflicts of interest

3. Outside directorships

4. Families and Relatives

5. Corporate opportunities

6. Insider Trading

7. Antitrust and fair dealing

Is the mission and vision aligned with the Code Of Conduct?

Nestlé is a familiar company that cares about their employees and also their customers.

Nestlé is committed ti continue with its exemplary business opportunities trying to explode but with out compromising their citizenship.

The main aspects are present in both documents:

for example

Employees

When they extend the shares stock, the employees are the preferred option. With that increase the shareholders value.

INDICADORES NESTLE ESPAÑA