Nestlé Philippines CSR: Company's Activities And Its Impact On Society
Introduction
Nestle is an international brand and the world largest food and beverage company which has more than 2000 brand in 191 countries around the world. The history of nestle was initiated from the year 1866 with the foundation of Anglo Swiss. In 1905 Henri nestle who was a German-born Swiss confectioner and founder of nestle, merged company with Anglo Swiss and now it is known as nestle group. The headquarter of Nestle lies in Vevey, Switzerland. The word nestle is a German word which represents a nest and the logo indicates the depicted young birds being fed by their parents, hence in this way forming a link with the company’s specialization. This report "Nestlé Philippines CSR Essay" emphasis on the sustainability of Nestle company and especially, focusing on its Corporate Social Responsibility. Nowadays, CSR activities are being one of the mandatory part of organization. All the recognized company performs CSR exercises for society or as a piece of their obligation to sustain in the environment.
Accordingly, all through the report, I have tried to focus upon CSR activities of Nestle and how the activities are done by the company and its impacts in the society. I have put a light on giving a brief about company philosophy that include the long term vision and goals of the company along with its moral principles and values. Then I move toward the stakeholder interest that explains their engagement which is fundamental to Nestle’s continuing business success. This report contains past and present CSR report as well as the future commitment of the company.
Corporate social responsibility
Corporation working in the society takes benefit from the society itself and that is the reason why the corporation member of society itself needs to take certain steps that would help in the improvement of the society. The improvement might be environmental, social, cultural and so on. So this process of corporation helping the society voluntarily is known as corporate social responsibility.
Corporate social responsibility is an idea with numerous definitions and practices. The way it is comprehended and actualized varies incredibly for each organization and nation. In addition, CSR is an extremely expansive idea that tends to numerous and different themes, for example, human rights, corporate administration, wellbeing and security, natural impacts, working conditions and commitment to financial advancement. There should be a prospective responsibility for making ethical judgement. As per, the economic responsibility manager of the corporation should involve only with legally or economically responsibilities where giving money to a charity with regards to the income is considered as self-imposed taxation. According to the ethical responsibility both the society and business corporation are interrelated with each other that include inputs i.e. employees, capital and physical resources. Discretionary responsibility includes unidentified donations with no expectation of a payback that does the sponsorship for the local event and fund to a charity.
Corporate Social Responsibility activities done by Nestle corporation
“Our objective is to be the leader in Nutrition, Health and Wellness, and the industry reference for financial performance, trusted by stakeholders.” Nestle market has always focused on their CSR project with their overall umbrella theme of shared value creation to ensure that the corporation meets the U.N. prosperity development goals of nutrition, water and rural development. They perform business that is guided by their values rooted in respect also by contributing to the society to ensure the long term achievement of their business. Throughout the business they assure that the following goals are to be met.
Contribution toward agronomy assistance
Nestle company is a large-scale also known as an international food manufacturing corporation that mass- produce the instant coffee, milk, ready-to-cook noodles, dairy product and other numerous edible products. Nestle company has been focusing on agronomy assistance. Nestle has been helping coffee farmers of different countries by providing knowledge of crops and also by providing barangays with livelihood skills and other opportunities. Nestle has been able to improve the growing method of coffee of Philippines so that farmers get better harvest and eventually help to increase the supply of coffee that further enhance the income of the farmers . As nestle has been supporting upstream market which benefits them for quality products that quite obviously supports the downstream market including the customer and consumers creating a Win-Win situation.
Contribution toward community and nation
Nestle also has contribution toward community and nation by creating different programs to help the underprivileged members of the society of different countries. Few of the projects like Cut and Sew livelihood project, Yard and Garden livelihood project, Suklay and Gunting project, Julius Maggi kitchen project, Miss Kong Trainor’s program, Street Illuminations Projects has been implemented in many countries like Bangladesh. The company donates money for a good cause, with acquaintance of a charity partner. Their work force focuses on three areas that has been supported by the following commitments.
- Buildup rural areas
- Upgrading the human rights
- Promoting honest employment and diversity.
Contribution toward environmental protection and preservation
Nestle had has been contributing towards environmental protection and preservation. One of the many contributions of Nestle is a step of initiation towards greeneries afforestation, as it has made the commitment of not doing deforestation in 2010. Furthermore, nestle has promised not to sell any product that includes the process of deforestation during its manufacturing. They acquired an acquaintance with a non-governmental organization in 2013 where they got hold of the guides to track and demonstrate the areas at highest risk of deforestation. Nestle has also supported Global Forest Watch (GFW) by joining a number of companies through an online mapping application where they shared information about the round-abouts of the forests worldwide.
Company philosophy
Nestle vision
a. The vision of nestle is to remain the main multinational association in food, nutrition, wellbeing then wellness.
b. To maximize the utilization of good quality of local raw material.
c. To protect the earth by being focused on ecologically solid business practices, and considering the need to safeguard on common assets and spare energy.
d. Nestlé’s idea is to be worldwide renowned leading nutrition, health and wellness (NHW) company.
Nestle goals
a. Nestle goals is to help 50 million children to have healthier life as well as help 30 million livelihoods in community specifically associated with its business and make progress toward reducing the effect in its operations.
b. Nestle commits to reduce sugar by 5% added to its products by 2010.
c. Upgrade farm economic among the farmers who provide them goods.
d. Progress labors’ livelihood and protect children in their agricultural supply chain.
Nestle mission
a. Nestles mission is satisfying their customer by providing the best tasting in their product and greatest nutritious varieties in a wide choice of food and beverage categories and other eating instances, since morning to night.
Nestle values and principles
a. Nestle believe in people rather than frameworks as they do the business according to a set of principles founded on honesty, equality and general concern for society.
b. Nestle is concerned on creating a motivation for their investors.
c. Nestle believe in constant change focusing on their environment.
Stakeholder interest
Community Nestle have worked with the stake holders of the community in the Mossel Bay Locale of South Africa since 2009. Drought (dry season) is one of the great problem in Moosel. Over inclusive way to deal with water administration, nestle provided dairy agriculturists with water and begun to address the water quality in a local lagoon. Nestlé’s factory in those region is set to develop a zero water facility in 2017.
Non-governmental organizations (NGOs)
Currently, nestle have supported the World Animal Protection by contributing to the partner on a business benchmark on Farm Animal Welfare (BBFWA), which is worldwide measure of animal welfare principles in food organization. Representatives of NGOs also supported Nestle on animal health and welfare issue.
1. Suppliers (include farmers) Nestle have helped the coffee farmers in Lampung area of Indonesia that support productivity and nature of the Robusta coffee through Nescafé plan.76 rancher(farmer) field schools has started around 20000 ranchers on good agricultural practices (nestle, 2017). Nestle also improved the growing method of growing coffee in Philippines so that farmer get better harvest which will return in quality product to nestle.
2. Consumer and common public
Nestle have helped 62000 youthful Europeans to find employment opportunities or training project as 200 organizations have joined Youth activity, started by nestle company. Currently nestle is working with America and preparing the similar action plan for Asia, Oceania, Africa and the Middle East.
Past CSR activities done by Nestle and its impacts
a. Nestle had built up Rural Development Framework in 2012 which was begin to rollout in 2013 as the overall wellbeing of rural groups are essential for the long-term success of their business.
b. Nestle has given services that worth 37.8 million in 2012 so that they could help more than 44000 farmers for better quality of products.
c. In 2012 Nestle carried out three Human Right Impacts Assessments (HRIAs), in Russia, Uzbekistan and Kazakhstan
d. Nestle utilized more than 1180 agronomists and 12000 support staff to give guidance, training and specified help for farmers.
e. Nestlé’s Fawdon confectionary production had line in the UK has put CHF (Swiss Franc) 4.9 millions of an anaerobic absorption framework, completed in September 2014, that changes over solid and liquid sewage wastage into clean water and methane gas using common natural absorption shapes. Due to this office will save 1000 tons CO2 reliably year, cut solid waste by 4000kg consistently.
Current CSR project and outcomes
a. Nestle has planted 480,000 trees in the area of 2,300 hectares until 2016, according to their RILEAF project. Beside that nestle uses recyclable water bottle that is prepared with almost thirty less plastic than the regular half-liter bottle” for environment sustainability.
b. Nestle has worked on waste management. By, 2016 Nestlé’s 182 factories reached nil waste for dumping. Nestle reduces waste for disposal by 77% (105000 tons) till 2006 which now increased to 82% which is the great achievement for nestle.
c. Nestle joined the Feed the future action for Climate Smart Cocoa which helped the cocoa maker in Ghana to receive agriculture practices to counterbalance the difficulties of climate change
d. Nestle has started evolving educational resources for both health maintenance professionals and parents on the welfare of breastfeeding and run campaigns and seminars in 2016. It was seen that mother who lacks breast feeding were using the milk powder for their babies where uneducated mother dilutes the powder milk to make it long lasting and often with contaminated water which is harmful for their babies.
e. Nescafe has been developed in Vietnam so that it could reach the demands for their Nescafe coffee products and also created more than 200 job opportunities.
Related positive and negative outcomes of CSR activities
The globalization of nestle has brought both negative and positive impacts in different aspects while doing CSR activities.
Impacts on environment
The company has been working on environment sustainability. Company brought the positive changes in environmental sectors by producing the goods that is least harmful to earth. For that they use recyclable bottles and since, 2008 greenhouse gas release and non-renewable energy effects for the packaging process have been condensed by 19% in Nestle water. On the other side, nestle have negative impacts on environment such as pollution and misuse of resources. As per the Green piece nestle neglected to comply with the regulation of China and released mass waste in rivers and lake there. Similarly, company illegally pumped many gallons of water from California’s San Bernardino National Forest for a long time, which is against the law.
Impacts on economy
Nestle has positively and negatively manipulated the economy of many nations. The positive side of the organization is that Nestle have provided job and training opportunity to people. Nestle has worked with Vietnam to order to meet the nestles coffee requirement where company provided more than 200 job in that territory. When nestle conveyed work to the people of different country it also empowered child labor in developing countries which is negative side of nestle. As per the report provided by Fair Labor Association informed that 1.8 million kids in west Africa are in risk of exploitation as well as child labor. Nestle signed a contract in2001 which tells to end the child labor but nestle violated it.
Impacts on society
Nestle is renowned for many things, for instance, the newborn child recipe scandals, instant noodles and so on. But every sides have different story. Nestle has been drawn out been the suspects of harming the health of children. Though nestle claims that breastfeeding is finest, it was discovered that they would contract deals young ladies dressed as medical caretakers to speak to moms and give them tests to get them captured on new born child recipe. Various poor and undernourished third-world ladies are physically unfit for breastfeeding and are worried with the basics of survival where nestle take an advantage of that. These uneducated mother dilute the powder milk and use contaminated water that harms the child. Recently, nestle start to provide knowledge about the advantage of breastfeeding to both health care professional and parents.
Nestle is a huge company and has considerable measure of impact over many nations, particularly in the consumer industry. They should utilize that energy to spread a positive impact and be a good example with the goal that other developing organizations can take after their lead so they can contend and be feasible in the global market.
