Csr nestle

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  • We have 3 areas of interest for discussion today


  • 1. Making A Difference Through CSR: Meeting the Challenges CSR as Business Strategy ~ the NESTLÉ perspective Presented by: Stephane Alby Executive Director, Finance & Control Nestlé (Malaysia) Berhad
  • 2. Making A Difference Through CSR: Meeting the Challenges An Introduction An introduction Nestlé’s Concept of CSR Conclusion
  • 3. NESTLÉ ~ An Introduction The NESTLÉ Group NESTLÉ MALAYSIA • Founded in 1866 by Henri Nestlé • Started business operations in 1912 • Nestlé is present in over 100 countries • Public listed on Bursa Malaysia • Malaysia’s leading halal food company • Employs 4,000 employees • RM3.1 billion in sales turnover in 2005 • World’s largest food manufacturer, headquartered in Switzerland • Employs 253,000 people worldwide • 511 factories in 86 countries • Sales of 32 billion individual products each year • 8 Factories; 6 Sales Offices and 1 National Distribution Centre • World’s largest private nutrition research facility • World class products & brands: • 17 R&D Centers worldwide • RM5 billion investment annually on R&D
  • 4. Solid CSR Foundation - Nestlé was established as the result of the humanitarian act of our founder, Henri Nestlé. He developed a cereal milk based product in 1866 to save an infant’s life as the baby could not be breastfed. -CSR is part of Nestlé’s DNA and is inherent in Nestlé’s Management & Leadership Principles ~ to create long-term value for society -CSR is built into the Nestlé Corporate Business Principles and is a part of its business strategy. -Nestlé supports The UN Global Compact’s Principles which are incorporated in the Nestlé Corporate Business Principles ~ as a guide for our business practices.
  • 5. The Role of Business and CSR For Business: • reliable, high quality sourcing • improved government functioning – regulatory • skilled, loyal workforce • superior products which successfully compete For Society: • improved earnings by suppliers • improved skills and earnings, job stability – employees • higher quality of life – consumers • greater stability, economic and social development - whole society Built into Corporate Strategy Reflects mutually dependent relationship: business and society
  • 6. The Concept of Shared Value Creation Mark Kramer, Senior Fellow, Center for Business and Government, John F. Kennedy School of Government, Harvard University and Managing Director, Foundation Strategy Group (FSG)
  • 7. Shared Value Creation Through Shared Value Creation, a company links its operations to generating long-term value both for its business and for society as a whole, and defines its success in terms of internal financial returns and external social and economic results. Ultimately, creating shared value acknowledges both the work that corporations need to do to reduce negative impacts on society as well as, and more fundamentally, how they can be part of progress on global challenges.
  • 8. Shared Value Creation – Create long term value for Business and Society – Mutually dependent relationship: business and society – Key part of business strategy – Value creation through the value chain: Agricultural suppliers, employees and associates, customers and society at large – Investments must be good for the country and the company – Following codes of conduct necessary, but not sufficient – To create Share value, you have to create Shared Value with society
  • 9. Shared Value is applied across Nestlé's Value Chain Agriculture and Sourcing Manufacturing and Distribution Products and consumers Purchasing Practices Environmental, Safety and Labour Practices New/renovated products for nutrition health and wellness Better Food Safety Standards and Workforce Development Increase knowledge and awareness for healthy lifestyles Nestlé Raw material access at benefit specified quality and foreseeable price Premium food manufacturer Profitable growth from superior product benefits Society Higher food output benefit using fewer resources Higher food production standards Wider access to food, and nutrition and health Value chain impact Growth Agricultural and context Supplier Development
  • 10. Shared Value Creation Each Nestlé market has its own CSR projects – with the overall umbrella theme of Shared Value Creation which helps ensure that we meet the U.N. Millennium Development Goals. Throughout the Group, we try to ensure that one or more of the following goals are met : • Eradicate extreme poverty and hunger • Achieve universal primary education • Promote gender equality and empower women • Reduce child mortality • Improve maternal health • Combat HIV/AIDS, Malaria and other diseases • Ensure environmental sustainability • Develop global partnerships
  • 11. OUR CSR WORK IN MALAYSIA • Extensive range of CSR initiatives in Malaysia which focus on education and improving the quality of lives for less privileged communities. • Some of our commitments include : – Contract farming for the hard-core poor; – Setting up of kindergartens in rural areas; – Providing learning resources for the physically and mentally challenged; – Bridging the digital divide and promoting the learning of English in rural schools via ICT; – Mentoring of SMEs in the food industry; – Helping to provide sustainable livelihoods for single mothers
  • 12. Improving Farmers’ Income in Kelantan Contract Farming of Chillies – Nestlé works closely with the local farmers association in sourcing for quality agricultural produce and provide technical expertise to ensure better yields – Nestlé provides transfer of knowledge and assistance to the farmers on Good Agricultural Practices and helps them be self-sufficient and independent. – Created partnerships for sustainable agriculture. – Access to raw materials from a reliable source and meeting Nestlé quality standards. – Project has won the Prime Minister’s Award for Socio-Economic Development, – Farmers were accorded the respected and acknowledged SALAM accreditation for excellence in farming practices in 2005 – which is the official recognition that Good Agricultural Practice (GAP) is implemented and abided by.
  • 13. Investing in the Future of the Food Industry The Nestle Food Mentoring Programme for SMEs - The programme was initiated in 1999 to provide assistance to small- medium companies in the food industry to attain world class standards through the sharing of knowledge and experience with Nestlé - Range of mentoring topics covered including halal certification; HACCP; marketing; legislation; sourcing; etc - To date, the programme has successfully trained more than 2000 participants from 700 companies
  • 14. INTERNALISING OUR CSR WORK In an effort to internalise the CSR philosophy of the company, we unveiled a company-wide initiative in 2005 ~ the Nestlé REACHING OUT to COMMUNITY & KIDS employee volunteer programme (or Nestlé ROCKS for short) to further encourage employee involvement in the communities where the Company operates, which is aimed at reaffirming and strengthening our commitment to CSR. • Nestlé ROCKs provides an avenue for all our employees to be involved in Nestlé’s CSR programmes while giving them the opportunity to fulfil their own social or community obligations. This is the first initiative that is launched nationally in all work locations involving some 3,500 employees, and allows our employees to dedicate 16 hours of their work time annually towards CSR activities, endorsed by the Company. • Currently, there are 28 homes, orphanages and charitable organisations that Nestlé has been supporting, where they may volunteer their services.
  • 15. The NESTLÉ Concept of Corporate Social Responsibility Conclusion: The CSR Hierarchy CREATE SHARED VALUE Reduce poverty, Improve health Empower people SUSTAINABILITY Protect the future COMPLIANCE Laws, Business Principles, codes of conduct
  • 16. Thank You For further info, please visit: www.nestle.com www.nestle.com.my Or call Freephone: 1-800-88-3433