Professional Documents
Culture Documents
GSLMM Assignment Group17
GSLMM Assignment Group17
BHUBANESWAR
SUBMITTED BY
Group 17
Abhimanyu Chundawat
U113061
Rosali Priyadarshani
U113083
Samyak Sabat
U113167
Stalin Mohapatra
U113223
Nestle. Nestle could also partner with NGOs in it sustainable and giving
back to the society venture where it would be a win-win situation for both.
However, the partnership should be mutual since NGOs are not profit
oriented .For this, Nestle should set clear guidelines and visionary for
partners who would be interested to join. Moreover the policies for
performance and compliance orientation should be laid before in order to
ensure the NGOs are on track with their commitment and the partnership
continues to be mutually beneficial for both.
4. What is the best way for Nestle to use the latest technology in
improving the management of human, land, and water
resources across its operations and supply chain?
Nestle should use the latest technology to track the water usage of its
company as well its suppliers water footprint. This is of utmost
importance in case of context farming. It should also use the latest of
technologies to communicate the same to its stakeholders and ensure
all the rules are fair and equitable. The technology can be hugely
beneficial to instill the accountability as well instill the concept of
preservation throughout the company. For the company to be
sustainable, the collaboration across the suppliers and the company
needs to be strengthened and the latest technology will just bring
about the alignment. Nestle can use/suggest the latest of technologies
like crop intensification; distribute the drought and insect tolerant
seeds to suppliers for coffee etc. The technologies can also be used to
maintain and audit the quality of milk across the globe. Other latest
technologies like micro irrigation, organic farming will go a long way for
water and land preservation. These technologies would also enhance
the nutritional benefits of the food and ensure the health aspect that
Nestle is committed to.
system?
6. How does taking a systemic approach impact Nestles future
strategy?
strategy?
The key issues that need to be addressed keeping Nestls future strategies
are production systems and methods, measurement of impact, people
development and maintaining competitiveness.
To have sustainable and ethical agricultural production, Nestle encouraged
good agricultural practices among its upstream producers. A major challenge
across the industry was to communicate these standards to consumers.
Companies, consumer advocacy groups, and environmental organizations
had different standards and metrics, and many had ways to signal their
commitments to the market. For Nestl, one of the key elements of
sustainability was that production needed to be environmentally sound, but
also economically viable for the producer over the long term. The economic
viability of producing Nestls materials was among the companys sourcing
concerns. Ethical production practices in agriculture were focused primarily
on fair and safe labor conditions for agricultural workers.
A fundamental quality of Nestls CSV approach is that it pursued
sustainability at multiple levels: among communities through its Farmer
Connect program, in its own operations through Responsible Sourcing and
other commitments, in its industry through pre- competitive agreements, and
in policy via public sector collaboration. Nestls cross-sectorial collaboration
reflected a growing willingness to engage in innovative partnerships and
multi stakeholder platforms to pursue systems-level change. Experts were
calling on a diverse set of private, public and civil society stakeholders to
gather around the major challenges on the horizon and devise systems-level
solutions. Issues like water scarcity, droughts risk management, and chronic
disease were not problems that could be solved with a piecemeal approach.
Nestle was always partnering with farmers and Hans Johrs team had already
initiated the Sustainable Agricultural Initiative at Nestle (SAIN). Hans Jhrs
Farmer Connect activities were structured around Nestls highest-volume
agricultural materials: coffee, cocoa, and milk but also vegetables and grain.
The team had constructed plans, targets, and tools for more sustainable
sourcing in each of these value chains. These activities fell under several
additional corporate initiatives e.g., the Nescaf Plan, the Cocoa Plan, and the
RISE tool for dairy production.
Nestl sought to double the amount of Nescaf coffee the company bought
directly from producers, seeking to reach 170,000 farmers by 2015. Eighty
percent of these would be smallholders. The direct relationship with
producers allowed Nestl to require more responsible production methods:
the company had committed that by 2015 all coffee sourced through Farmer
Direct would meet the 4C code of conduct, a basic set of sustainability
standards. Nestl provided agricultural training, plus it distributed high-yield,
disease-resistant coffee plantlets. These Plan activities were designed to
increase the viability and sustainability of farmers production: improved
agronomic practices would increase productivity while protecting the local
ecosystem, and the plantlets replaced old, less productive trees. The
company estimated that its investments in such coffee projects would total
CHF 500 million by 2020.
The Nestl Cocoa Plan was also designed to support farmers sustainable
production practices. The Plan had three pillars: eliminating child labor in
Nestls cocoa value chain, sustaining cocoa supply into the future, and
ensuring farmers had a sustainable income. Nestl had partnered with the
Fair Labor Association to adopt a zero-tolerance policy for child labor in its
cocoa supply chain.
While Nestls dairy activities did not have a consumer-facing plan, they were
designed to protect producers and the environment with the help of a tool
called the Response-Inducing Sustainability Evaluation (RISE). RISE was a
diagnostic tool, developed and owned by the Swiss College of Agriculture, to
identify economic, social, and environmental areas for improvement on dairy
farms. it was less important that a particular source of milk be communicated
to consumers than it was to help farmers eliminate unsustainable practices.
Milk had not attracted many consumer concerns for sustainability, though its
compliance with safety regulations and quality assurance was well monitored.
Case 2- Levi Strauss & Co.: Global Sourcing (A) & (B)
1. How attractive is China as a business opportunity? As a
member of the China Policy Group what would you recommend
and why regarding (a) continued sourcing and (b) possible
direct investment in manufacturing or marketing ventures in
China?
We would recommend sourcing and contract manufacturing in China subject
to meeting the stringent terms and conditions laid down by Levis code of
ethics and supplier code of conduct (Business Partner Terms of Engagement).
China cant be ignored as far as sourcing is concerned because it offered
economies of scale. However sourcing in China may also affect the
companys brand image and consequently the demand for its product in
developed world. Therefore Levis needs to impose high standards while
selecting suitable suppliers.
Levis should however, avoid direct investment in manufacturing and
marketing in China. The reasons for this are as under
China did not offer a unified market. Tastes, preferences and buying
power varied across regions
High inflation levels meant very high property prices which increased
the cost of doing business. Stationing Americans in China was expensive
The legal framework was weak and there was also a threat of political
instability
products were made in a manner consistent with its vision, mission and
ethical code of conduct. Thus it protected companys brand image. The main
features of these guidelines were
The guidelines were drawn after much deliberation. The discussions
involved multiple stakeholders (both internal and external), several cross
functional teams which deliberated on full range of sourcing issues. This
ensured that the guidelines were comprehensive and adopted a multi
stakeholder view of the sourcing process.
decisions could pose difficult dilemmas. Senior management made it clear that
ethics was to be a ground rule, not just a factor in decision making, and that ethical
values would take precedence over non-ethical values. Moreover, conflicts between
and among ethical principles were to be resolved through an ethical process.