Corporate Social Responsibility - A Case Study Of Nestle (Coursework Sample)

CORPORATE SOCIAL RESPONSIBILITY: A CASE STUDY OF NESTLE
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Executive summary
Nestle partners with various multi-lateral agencies, international organizations, Non Governmental Organizations, academia and governments to enhance its capacity to deal with the challenges it faces, promote sustainable agriculture, empower consumers and respond to emergencies. The company engages in multi-stakeholder forums during which its professionals share their experience to facilitate the development of strategies geared towards the creation of a more efficient and transparent global food system. By engaging constantly with its stakeholders, the company is able to identify various emerging issues to shape its responses accordingly. Moreover, the need for a strong gender and multicultural diversity is appreciated by the firm, and this has significantly shaped its success. Research is also considered a key element of the organization’s CSR strategy. Issues such as conflict of interest, sources of agricultural products, environmental protection, human rights and human resources, consumer safety, communication with consumers and stakeholders, nutrition, competition, infant formula marketing policy, and external relations are embedded in the company’s CSR strategy. Areas of weakness for this firm include the use of tools that endanger the people and the environment, victimization of unionists, and poor response to criticism from the public hence, the need to address them moving forward.
Corporate Social Responsibility: A Case Study of Nestle
Introduction
Nestle S.A is a multinational company headquartered in Switzerland, which is involved in the manufacture and packaging of foods and beverages. This firm is regarded as the World’s largest manufacturer of foods, and had over 2000 brands and operations spread across a total of 197 countries as of October 2015 (Mohajan, 2015). This paper seeks to explore the Corporate Social Responsibility (CSR) of the company in different organizational and national contexts while focusing on the six core characteristics of CSR; namely, capacity building, understanding of the society, harnessing diversity, strategic view, stakeholder relations and questioning business as usual. Next, our discussion will touch on the variety of theoretical avenues and the diversity of theoretical concepts in CSR. The research will seek to examine the strategic approaches used currently by Nestle in fulfilling their community responsibilities and then make recommendations. The recommendations will primarily be about how a more sustainable CSR strategy can be developed for this company with regards to ecological responsibilities, social welfare, recruitment and retention of employees.
Evaluating Nestle Based on the Six Core Characteristics of CSR
Nestle has partnered with various multi-lateral agencies, international organizations, Non Governmental Organizations, academia and governments in order to enhance its capacity to deal with the challenges it faces, some of which include increasing rates of obesity, child labor and deforestation. A good example is its partnership with the International Federation of Red Cross and Red Crescent Societies (IFRC) in the year 2002. The partnership enabled the provision of water, sanitation and various hygiene programs to 228, 861 people since the year 2005. Moreover, this partnership has expanded beyond mere philanthropy to the creation of shared value in various focus areas. Nestle has also donated more than CHF 230 288 in support of emergency relief efforts. To respond to emergencies in areas hit by high-profile natural catastrophes, the company relies on support from IFRC. Such support ensures that the contributions given out by the company are utilized well (Nestle Ltd, 2002, Nestle Ltd, 2006).
Nestle has also established partnerships for sustainable agriculture, thereby benefiting the society. For instance, in the year 2000, the company went into partnership with Danone and Unilever to create the “Sustainable Agriculture Initiative Platform” which is an industry initiative involving 20 firms. Through this alliance, the company seeks to support the development of sustainable agriculture across the entire globe. The alliance is currently involved in a number of pilot projects with firms that trade in coffee like ECOM of Nicaragua, NKG of Vietnam, and Volcafe of Guatemala. Through these projects, the company aims to facilitate small-scale farmers located in these countries to develop a comprehensive model for the sustainable production of coffee. Clearly, the program positively impacts the society. Moreover, Nestle is a member of the 4Cs steering committee, which is a common code for the coffee community and works on guidelines for the sustainable production and marketing of coffee. This platform is supported by UNCTAD and IISD (Nestle Ltd, 2006; Nestle Ltd, 2016b).
These partnerships between Nestle and other entities to help people in the society are highly commendable. Given that the company works with poor farmers from developing countries, endeavoring to improve their standards can be viewed as more of a moral responsibility. In fact, such a move can be termed as a “rescue mission”, which is comparable to a passerby encountering a drowning child. The only cost such a passerby would incur is that of getting wet and a little muddy. By donating some little resources towards lifting the poor from the trappings of poverty, the company behaves ethically.
In the strategic front, Nestle engages in multi-stakeholder forums like the Evian Group. Here, the company’s professionals share their experience in order to facilitate the development of strategies geared towards the creation of a more efficient and transparent global food system. While in these forums, Nestle advocates for the liberalization of agriculture, the elimination of subsidies that act as impediments in the field of agriculture, and the expansion of markets. According to Nestle Ltd (2016c), the company believes that these policies, if well implemented, would act as a catalyst to the growth of the economies of developing countries, thereby benefiting the consumers of the products it makes. By growing the economies of these countries, Nestle gets assured of even more buyers for its products. Certainly, by making the farmer more facilitated, the firm ensures that it does not invite the risk of getting out of the materials it requires, thereby occasioning shared value (Min, 2007).
To understand the society well, Nestle holds the biennial “Creating Shared Value Global Forum,” which is basically a special event that lasts for one full day and involves the participation of development and business experts drawn from across the globe. In such forums, the participants brain storm on the increasingly more vital role of business in assisting to deal with major socio-economic problems such as meager natural resources and climate change. For example, on the 21st of June in the year 2016, one such forum took place in Abidjan, Ivory Coast in which the primary agenda was how investment for sustainable development in Africa could be done. Participants in this forum included leaders drawn from governments, civil society and the business community from Africa and beyond. Issues such as building stronger economies and societies, nutrition, security, enhancing farmer resilience and health were handled (Nestle Ltd, 2016c; Nestle Ltd, 2006). By addressing key issues such as that of climate change, the firm ensures that it cushions its business while at the same time facilitating farmers to lead a better life. Climate change has the potential of impacting flora and fauna which are the lifeblood of this organization (Min, 2007).
Nestle appreciates the fact that, effective communication with stakeholders is an extremely vital element of responsible business behavior as it leads to the creation of shared value. By engaging constantly with its stakeholders, the company is able to identify various emerging issues so as to shape its responses accordingly. Through this practice, the firm is able to drive constant improvements as far as its performance is concerned. The issues raised by stakeholders are posed for a discussion during both local and international forums. Some of these issues include, but not limited to, food safety, nutrition, health and wellness, access to education, and the role of the company in public policy issues (Polonsky & Jevons, 2009; Nestle Ltd, 2016c).
The firm also engages with stakeholders through other ways such as annual reports, and this enables them to understand where funds are invested and how the company is dealing with important matters such as environmental performance. In the countries where the company operates, stakeholder conferences are also held; whereby the approaches taken are discussed and feedback obtained. Moreover, through the Nestle Supplier Code, the threshold standards to which suppliers, agents and subcontractors must adhere are given, thus ensuring that the company develops responsible practices across its entire supply chain. Company policies, activities and principles are also discussed in the firm’s website with various websites dedicated to fundamental projects such as the Cocoa Plan (Polonsky & Jevons, 2009; Nestle Ltd, 2016c).
Engaging with stakeholders comes with immense benefits to both parties: the firm and its stakeholders. Firstly, the firm is able to understand the particular social and environmental issues which matter most to them and to the society at large. Through this, the corporate strategy of the firm gets tailored to become responsive to the identified priority areas thereby enhancing...