The case study problem required me to devise a CSR strategy for the company keeping in mind the recent disasters like Amphan and Assam Floods

1. CASE ANALYSIS AND SOLUTION
Name: - Biswadeep Ghosh Hazra
Institution- Xavier Institute of
Management, Bhubaneswar
Academic Year- 2019-2021

2. Executive Summary
& Assumptions
Basic overview Segmentation
CSR Activities for
2019
CSR Activities 2015-
2019
CSR Activities 2020
(Forecasted)
Details of the CSR
Activities
References
• The case solution has been prepared by mostly sticking to the
CSR Avenues of 2019. Some have been removed and some
added depending on the current situation
• COVID-19 and Relief work (Amphan, Assam floods) have been
concentrated on as they are unique to this year
• The CSR budget of last 5 years (2015-2019) have been
analyzed exhaustively to come up with the 2020 budget
• For effective targeting of the CSR activity, a detailed list of
States with various variables like Unemployment Rate, % of
people below poverty line, Literacy Rate, Rural Population,
Indian Demographics (Age Groups) to mention a few are
provided
• In addition, Segmentation is done on a total of 10 different
factors
• The final allocation is done based on two opposing forces- the
CAGR growth of individual activities and CAGR growth of the
overall CSR fund/budget
• Notebook Nation is looking to consult Nescafe/Nestle on their
CSR activities for the year 2020
• Nestle and Nescafe are one and the same organization with
both sharing common CSR funds
• Nestle will continue to perform well throughout the entire year
so as to justify the increase in the CSR funds
• All financial information are taken from the Annual Report and
there are no discrepancies there
• The impact of COVID-19 on performing the CSR activities
themselves is negligible
• The spreading of CSR activities to new states pose no threat in
terms of COVID-19 spread
Executive Summary Assumptions

3. 333
283 269 273
381
235
312
269 273
383
206
314
269 274
383
0
50
100
150
200
250
300
350
400
450
2015 2016 2017 2018 2019
MONEY
SPENT
ON
CSR
(IN
RUPEE
MILLIONS)
Prescribed CSR Expenditure (as per Companies Act,
2013
Planned Expenditure
0.252 0.339 0.259 0.236 0.303
3.658
3.384
2.196
1.703
1.945
2015 2016 2017 2018 2019
CSR as a % of Revenue CSR as a % of Profit
CAGR of Actual
Expenditure :
21.48%
• The actual expenditure to CSR activities has fluctuated over
the last five years
• The difference between Prescribed CSR, Planned and Actual
Expenditure has reduced over the years
• The difference in planned and actual expenditure if any is
added to the next year
• The gap between CSR as a % of Revenue and CSR as a % of
Profit is reducing from 2015 to 2019. This is because the
company is spending a lesser percentage of its profits on CSR
as the years progress while its revenue percentage is slowly
increasing
• Average (for last 5 years)
 CSR Expenditure(Actual)- 290 Mn Rupees
 CSR as a % of Revenue – 0.217%
 CSR as a % of Profit – 2.577%
Based on these data, 2020’s CSR expenditure should be around
465 Mn Rupees (21.48%. Based on the fact that Nestle has been
doing pretty well even during lockdown and quarantine amidst
the COVID-19 pandemic, it seems likely that the CSR activity can
be that amount in 2020
Executive Summary
& Assumptions
Basic overview Segmentation
CSR Activities for
2019
CSR Activities 2015-
2019
CSR Activities 2020
(Forecasted)
Details of the CSR
Activities
References

4. Segmentation
Growth Drivers
Age
Gender
Occupation
Socio-economic
Marital Status
Family size
Education
Income
Internet
Literate/Illiterate
Ethnicity
13–17, 18–24, 25–34,35-44,45-54, 55-
Single, married
Below Poverty Level (BPL), Very poor,
Poor, Lower Middle
Unemployed, Employed in contractual
jobs with high risk of unemployment
Male, Female, Transgender
1–2, 3–4, 5+
Indian
Internet Illiterate or very limited functioning
Strugglers, Next Billion, Aspirers
Uneducated, Educated (the level of education
might vary)
The segmentation is done by keeping in mind the disadvantaged population of
the country. These covers the wide aspects of Age, Gender, Occupation, Socio-
Economic, Marital Status, Family Size, Education, Income, Internet Literacy
and Ethnicity. The excel sheet embedded beside shows exhaustive details,
state-wise so that the CSR team at Nescafe can accordingly plan their strategy
for a particular state.
Key Performance Indicators

5. Name of the CSR Activity undertaken
Amount Spent (in Rs.
Mn)
Number of
States/UT
Partner Agency
Nestle Healthy Kids Program 169.4 23
Various Universities,
Magic Bus India
Foundation
Project Jagriti 95.8 8
MAMTA Health
Institute
Clean drinking water projects and water
awareness programs
33.8 11
Enable Health
Society
Sanitation Projects 31.6 14 -
Water conservation & Environment 5 1
Deccan Heritage
Foundation India
Plastic Waste Management Awareness 8 1
Stree Mukti
Sanghatana
Livelihood enhancement for street food
vendors
7.5 9 Nidan
Village Adoption (Project Vriddhi) 4.6 1
SM Sehgal
Foundation
Employee Volunteering 1.6 21
Magic Bus India
Foundation
Relief Efforts 6.6 4 -
CSR Activities for 2019
Nestle Healthy Kids Program is one of
the company’s most recognizable and old
CSR activities. In 2019, the Nestle Healthy
Kids Program took up 46.6% of the entire
budget
Project Jagriti with almost 96 Million
Rupees took up 26.32% of the budget
Nestle’s maximum reach was till 23
states and minimum reach was limited to
a single state
Over the years, Nestle has tied up with
many different agencies, NGOs,
Universities and other organizations that
have added value in the CSR process and
have made the end result all the more
fruitful
Executive Summary
& Assumptions
Basic overview Segmentation
CSR Activities for
2019
CSR Activities 2015-
2019
CSR Activities 2020
(Forecasted)
Details of the CSR
Activities
References

6. CSR Activities over the years
60.9
80.8
22.2
21.6
4.8
6
Nestle Healthy Kids Program
Breastfeeding and Nutrition Awareness
Clean drinking water projects and water awareness programs
Sanitation Projects
Water conservation in Agriculture
Relief efforts
169.4
95.8
33.8
31.6
5
8
7.5 4.6 1.6 6.6
Nestle Healthy Kids Program
Project Jagriti
Clean drinking water projects and water awareness programs
Sanitation Projects
Water conservation & Environment
Plastic Waste Management Awareness
Livelihood enhancement for street food vendors
Village Adoption (Project Vriddhi)
Employee Volunteering
Relief Efforts
In Mn Rupees (Year- 2015)
In Mn Rupees
(Year- 2019)
In 2015, the total amount spent on
CSR activity was 196.3 Million
Rupees but in 2019, the same was
363.9 Million (according to the
spending attribution present in the
Annual Reports). This means that
spending has increased a massive
85.4%
Many new types of Activities have
been added over the years, from
only 6 in 2015 to 10 in 2019
Some of the Activities that are
common in both the years have
increased their allocation as well-
• Nestle Healthy Kids Program-
178%
• Clean drinking water projects-
33.33%
• Sanitation Projects- 46.3%
• Relief Efforts- 10%
Executive Summary
& Assumptions
Basic overview Segmentation
CSR Activities for
2019
CSR Activities 2015-
2019
CSR Activities 2020
(Forecasted)
Details of the CSR
Activities
References

7. Name of the CSR Activity undertaken
Amount Spent (in Rs.
Mn)
Number of
States/UT
Partner Agency
Nestle Healthy Kids Program 230 36 (pan India)
Various Universities,
Magic Bus India
Foundation
Project Jagriti 140 15 (targeted)
MAMTA Health
Institute
Clean drinking water projects and water
awareness programs
35 12 (targeted)
Enable Health
Society, UNICEF
Sanitation Projects 30 15 (targeted) -
Water conservation & Environment 10 5 (targeted)
Deccan Heritage
Foundation India
Livelihood enhancement for street food
vendors
6
7 (reduced in
accordance)
Nidan, Ishanya
Foundation
COVID-19 efforts 15 36 (pan India) -
Employee Volunteering 3 21
Magic Bus India
Foundation
Relief Efforts (Amphan, Assam Floods) 10 8 (targeted)
MUKTI, Bharat
Sevashram
CSR Activities for 2020 (Forecasted)
How the data is forecasted
• For CSR activities common in years 2015 and
2019, the CAGR is taken and adjusted
accordingly for 2020
• For programs new in 2019, the growth is
taken from 2018-2019 and forecasted using
same for 2020
• To justify the spending YoY, the number of
states targeted have been increased
• Total Spending for 2020- 479 Mn Rupees
Nestle Healthy Kids Program will continue on
to be the heavyweight in 2020 as well
From 2015 till 2019, the CAGR of Nestle
Healthy Kids Program was 44.54%. Thus for
2020, the budget should be around 245 Million
Rupees
Project Jagriti has grown by more than 62%
YoY
Clean drinking water projects has grown by
more than 8%
Sanitation Projects has grown by more than
11.5%
Livelihood enhancement program has faced a
decline which has been further declined in 2020
COVID-19 efforts have been added and two
Activities have been removed to accommodate
The major CSR activities of NESTLE has been kept intact. Because the individual CAGR of CSR activities and
overall CAGE of the entire budget are two opposing forces, the numbers are adjusted accordingly
Executive Summary
& Assumptions
Basic overview Segmentation
CSR Activities for
2019
CSR Activities 2015-
2019
CSR Activities 2020
(Forecasted)
Details of the CSR
Activities
References

8. Executive Summary
& Assumptions
Basic overview Segmentation
CSR Activities for
2019
CSR Activities 2015-
2019
CSR Activities 2020
(Forecasted)
Details of the CSR
Activities
References
230
140
35
30
10 6
15
3 10
Nestle Healthy Kids Program
Project Jagriti
Clean drinking water projects and water awareness programs
Sanitation Projects
Water conservation & Environment
Livelihood enhancement for street food vendors
COVID-19 efforts
Employee Volunteering
Relief Efforts (Amphan, Assam Floods)
In Mn Rupees (Year- 2021)
Fund Allocation’ 21
28% of Sunderban damaged (1,200 sq.km of 4,263 sq. km. destroyed)
Salt water from the ocean damaged trees and crops severely
Thousands displaced as the storm ravaged mud-houses
Sunderban is the world's largest continuous Mangrove eco-system
The Mangroves with their aerial roots (Pneumatophores) help bind the soil together- the
damage could have been much higher
West Bengal had to shift more than 5 lakh people to safety to protect the from Amphan
AMPHAN
More than 2.8 Million people affected across 28 districts and 2,525 villages
Flooding of the Brahmaputra River by an excess of Summer Monsoon.
Locals affected by double whammy of COVID-19 and flooding. Crops damaged- 1,15,515 Ha
Neighbouring states like Meghalaya are also affected to an extent
The floods have claimed multiple lives (at least 107) and many more are in imminent danger
At least 120 animals have died and an additional 147 have been rescued
ASSAM
FLOODS

9. Executive Summary
& Assumptions
Basic overview Segmentation
CSR Activities for
2019
CSR Activities 2015-
2019
CSR Activities 2020
(Forecasted)
Details of the CSR
Activities
References
Helping the disadvantaged secure a job by providing
them training and finally sending them to their job
interviews with a cup of Nescafe for optimum
performance. The program will teach essential skills for
employment such as Digital Marketing, Coding,
Entrepreneurship
Design and develop a new fitness program for senior citizens at an
old age home
The fitness program will be divided into two broad aspects-
i) The Physical fitness aspect
ii) The Mental fitness aspect
The physical fitness program will involve the best practices of Yoga,
Pranayama, freehand exercises, jogging and a number of associated
alternative treatment options like massage therapy and chiropractic
adjustment a certain fixed number of times in a month. The fitness
program would also encourage healthier eating habits and lifestyle
choices like quitting tobacco and alcohol. The mental aspect would
cover ways to relieve the mind of stress amidst the trying times
CSR Themes to Explore

10. References-
• https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2782230/
• https://www.nestle.in/sites/g/files/pydnoa451/files/investors/stockandfinancials/documents/annu
al_report/01_nestle-india-annual-report-15.pdf
• https://www.nestle.in/sites/g/files/pydnoa451/files/investors/stockandfinancials/documents/annu
al_report/nestle-india-annual-report-2016.pdf
• https://www.nestle.in/sites/g/files/pydnoa451/files/investors/stockandfinancials/documents/annu
al_report/nestle-india-annual-report-2017.pdf
• https://www.nestle.in/sites/g/files/pydnoa451/files/investors/stockandfinancials/documents/annu
al_report/nestle-india-annual-report-final-2018.pdf
• https://www.nestle.in/sites/g/files/pydnoa451/files/2020-05/Nestle-India-Annual-Report-2019.pdf
• https://www.livemint.com/companies/company-results/nestle-india-s-march-quarter-profit-up-13-
5-at-rs525-43-crore-11589293537361.html
• https://www.deccanchronicle.com/nation/current-affairs/230720/assam-floods-at-least-89-killed-
and-26-districts-affected-says-asdma.html
Executive Summary
& Assumptions
Basic overview Segmentation
CSR Activities for
2019
CSR Activities 2015-
2019
CSR Activities 2020
(Forecasted)
Details of the CSR
Activities
References

11. THANK YOU!