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"If they have the access to good schooling, then the child labor as such if it is helping the fathers in the field and helping with the harvesting, I don't think this is a problem. The problem is when you use the children only for that and don't allow them to go to school." (Nestlé Chairman and former CEO Peter Brabeck-Letmathe)

Conclusion

  • Through its CSR programs, Nestlé has proactively addressed and resolved most of its reputational issues, becoming one of the world's most admired companies.

  • Life is good… but as any major corporation knows, it could be better.

  • Is the company really becoming more responsible or are its Creating Shared Value programs just a facade?

Good Food, Good Life, Good CSR?

About Nestlé

  • Swiss company since 1905

  • Largest food company in the world

  • Main products: baby foods, bottled water, cereals, chocolate & confectionary, coffee, culinary, chilled and frozen food, dairy, drinks, food service, healthcare nutrition, ice cream, pet care, sports nutrition, weight management

  • 468 factories in 86 countries, operates in 194 countries and employs 339 thousands employees

  • One of the main shareholders of L'Oréal

About Nestlé

Cristicism and Controversy

The Nestlé Concept of Corporate Social Responsibility

Nestlé's CSR Facts

Conclusion

Marketing of Formula (1977)

Other CSR Related Activities

Promotion of breast milk substitutes

NGOs' criticism

  • Nestlé sued and won
  • Publicity led to boycott
  • Environmental Sustainability

  • Human Rights and Compliance

  • Sponsorships

Nutrition

Nestlé's CSR Facts

E. Coli (2009)

Ethiopian Debt

(2002)

Zimbabwe Farms (2009)

  • Linked to Nestlé's refrigerated cookie dough

  • Caused sickness in at least 72 people in 30 states

  • Nestlé voluntarily recalled 30,000 cases
  • Buying milk from illegally seized farms

  • Mugabe and his regime - subject to EU sanctions

  • Nestlé later stopped from buying milk

1975 - Nationalization of an Ethiopian business

1986 - Nestlé acquired the firm's German parent company

2002 - Nestlé demanded $6 million compensation

  • By changing recipes of its foods, it has eliminated 75 000 tons of trans fat from its products, 15 000 tons of salt and 638 000 tons of sugars.

  • Nestle is the largest fortifier of foods with vitamins and minerals.

  • In September 2010, Nestlé announced to invest more than $500 million between 2011 and 2020 to develop health and wellness products.

  • It created a wholly owned subsidiary, Nestlé Health Science, as well as a research body, the Nestlé Institute of Health Sciences.

Palm Oil Use (2010)

Horsemeat Scandal (2013)

  • Nestlé removed Buitoni beef pasta meals from shelves in Italy and Spain

  • It also halted deliveries of products containing meat from a German supplier
  • Burson-Marsteller report revealed that Nestlé is one of the 25 companies that have the magic mix of corporate citizenship and superior marketplace performance.

  • For the twelfth consecutive year, Fortune Magazine included in 2011 Nestlé in their list of The 10 Most Admired Companies in the World.

  • According to a survey by Universum Communications Nestlé was in 2011 the best employer to work for in Switzerland and occupied the 19th position in the Universum's global ranking of Best Employers Worldwide.

  • In April 2012, Nestlé obtained an A+ rating from the Global Reporting Initiative (GRI) for their global annual report on Creating Shared Value. Nestlé was the first food and beverage company to achieve an A+ rating from the GRI for a global sustainability report.
  • May 2010 - Nestlé agreed to work with Greenpeace to use sustainable palm oil by 2015

Greenwashing (2008)

Water

"Most water bottles avoid landfill sites and are recycled."

"Nestlé Pure Life is a healthy, eco-friendly choice."

"Bottled water is the most environmentally responsible consumer product in the world."

Child labor (2010)

Bottled Life (2012)

Water is not a human right, it should be privatized. (Peter Brabeck-Letmathe - Chairman and former Nestlé CEO)

2001 - child slave labor and trafficking in Ivory Coast

September 2001 - The Cocoa Protocol

2005 - lawsuit against Nestlé

2010 - the lawsuit was dismissed

  • 217 clean drinking water projects in the South Asia region, helping to improve access and sanitation for more than 100 000 school children

  • Nestlé have run 489 water-saving projects in their factories saving 6.5 million m3.

Creating Shared Value

"Philanthropy basically is doing good for no other reason that doing good. This you can do with your own money but I don't think you can use the money of your shareholders to do philanthropy, to do good. Creating shared value has a big attractiveness because it really takes into consideration the interests of both sides (business and society)." (Peter Brabeck-Letmathe - Chairman and former Nestlé CEO)

Rural Development

  • Nestlé works directly with 690 000 farmers who produce their raw materials and 73% of their factories are locate in rural areas.

  • The Nestlé Cocoa Plan - In 2012 over 27 000 farmers were trained and 1.1 million plants were distributed globally, 12 schools were built or refurbished in Ivory Coast and a partnership with the Fair Labor Association was signed to further assist their work on eliminating child labor.

  • The Nescafé Plan

Criticism and Controversy

  • 2006 - Nestlé became the first company to adopt the approach
  • Focused on 3 areas: nutrition, water and rural development

The Nestlé Concept of Corporate Social Responsibility

Thank You!

Beatrice Fulea

1 MDAE

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