Executive Summary.

Nestle has been engaged in CSR activities since its inception; It started with (Breast Milk
Substitute) BMS and today helping various communities in the value chain, safeguarding its
employee's healthy future, and finally joining the road to Zero.

In the report, Nestlé's contribution to CSR is assessed using six core characteristics of CSR; it
highlights Nestlé's engagement in CSR activities over the perimeter of all core characteristics.
Carroll's pyramid, three-domain model and creating shared value (CSV) were used to analyse
the Nestle CSR practices in the light of all the theoretical frameworks. Nestle plays its role in all
social dimesons identified in Carroll's framework. According to the three-domain model,
sustainable initiatives are in the economic/legal/ ethical domain. Nestle has built a foolproof
system to create values for its consumers, people, and ecology. Nestle embraced the CSV to
derive the social initiatives, which is part of the strategic approach to the business. It has
already got the assurance from Bureau Veritas (BV) that complies with Global Repotting
Initiatives (GRI).

Nestle Corporate strategy is evaluated along with practices, and it's collaborating with all world
NGO's like IFRC, CLMRS, FTS 4 to make sure that its forefront in terms of its contribution to
society, people and ecology.

Nestle's role was assessed in terms of crisis and Pandemic, and it is evident that it has not fallen
apart from its responsibilities in a crisis.

Recommendations were given for the slippages and overlooked areas, which the team can
review, and a certain line of action can be set. Conclusion is drawn at the end of the report.

1
Contents
Cover Sheet: Non-Anonymous Marking......................................................................................................1
Executive Summary.....................................................................................................................................2
1 Introduction.........................................................................................................................................4
1.1 Company Introduction.................................................................................................................4
1.2 Nestle Vision Mission Statement Strategy, and Shared Values....................................................5
2 CORE CHARACTERISTICS OF CSR..........................................................................................................6
2.1 Volunteering................................................................................................................................6
2.2 Managing Externalities................................................................................................................7
2.3 Multiple stake holder orientation................................................................................................8
2.4 Social and economic alignment...................................................................................................9
2.5 PRACTICES AND VALUES............................................................................................................10
2.6 Beyond philanthropy.................................................................................................................10
3 Theoretical Frameworks Various.......................................................................................................11
3.1 Carroll’s Framework...................................................................................................................11
3.1.1 Economics responsibility....................................................................................................11
3.1.2 Legal responsibility............................................................................................................13
3.1.3 Ethical Requirement..........................................................................................................13
3.1.4 Philanthropy......................................................................................................................14
4 Three Domain Model.........................................................................................................................15
5 Creating shared values......................................................................................................................15
6 Nestle’s CSR Strategic approach........................................................................................................17
6.1 Nestle Corporate Culture for People.........................................................................................18
6.2 Building the society....................................................................................................................19
6.3 Joining the Race to Zero.............................................................................................................20
7 Criticism.............................................................................................................................................21
8 Nestle Actions During crisis...............................................................................................................22
9 Recommendations.............................................................................................................................22

2
 9.1 Society.......................................................................................................................................22
9.2 Employees Welfare....................................................................................................................23
9.3 Planet Environment...................................................................................................................23
10 Conclusion.....................................................................................................................................24
11 References.....................................................................................................................................25

1 Introduction
It is challenging for businesses to survive with the sole objective of making a profit by overlooking the
environment, society, economy, consumers, employees (Heyward, 2020). According to Crane et al.
(2015), the business house should develop a competitive management model aiming to balance out the
expectations of society and shareholders by involving them in long term activities to cope with a
complex turbulent environment.

CSR is declared as one of the key tool for business houses to cope with environmental pressure and
staying competitive in the business (Aguilera, et al., 2007). It is strongly believed that CSR has played a
fundamental role in the distribution of goods, services, generation of wealth and employment in the
society.

According to the European Commission, CSR is defined as “the process of integration in the
organizational activities the social, environmental, ethical and human concerns from its groups of
interest with two aims: (1) to maximize the value creation for these parts, and (2) to identify, prevent
and mitigate the adverse effects of firm actions on the environment” (European Commission, 2011, p.
6).

1.1 Company Introduction.

Nestle is one of the world’s largest fast moving consumer goods company (FMCG). Its history started
from 1866, when Anglo-Swiss Condensed Milk company was the first to open condensed milk factory in
Switzerland. Henri Nestle had first break through in developing the infant food in 1867.He merged his
company with Anglo- Swiss to form a Nestle group (Nestle, 2021).

3
 Fig 1 – Nestle’s first products (Nestle, 2021)

Nestle is using its research and development (R&D) platform with the help of science technology and
innovation to help meet Nestle’s 2030 vision for zero environmental in its operations and achieving net
zero greenhouse gases by 2050.

Nestle has taken some of the key steps in transforming its portfolio to more environmental friendly.

1.2 Nestle Vision Mission Statement Strategy, and Shared Values

Nestlé’s mission is to deliver the good food and good life to the communities, fig 1.2one describes the
Nestle Vision, Mission, strategy and shared values.

4
 Fig 1.2 – (Adapted from: Nestle, 2020)

2 CORE CHARACTERISTICS OF CSR

5
2.1 Volunteering
This voluntary nature of CSR is critiqued by many experts as a major drawback and argued in the interest
of a legally mandated accountability. For example, the EU has started acknowledging the legislative
environmental role in implementing CSR (Crane et al., 2014). Nestle is ensuring the nutrition information
available to consumers. In 2020 Nestle announced the scheme of Nutri-score as the preferred labelling
system in continental Europe. Nutri-score offers a complete overview of food beverages giving each
product a colour coding from A-E to base on nutritional values it carries (Nestle, 2020).

Nestle has also closely worked in maise bio fortification in Nigeria and Zimbabwe; that project helps
enhance the maise's nutritional values. They are also engaging the stakeholders to know the benefits of
bio fortification.

Nestle was leading in complying with the FTSE4Good Breast milk substitute (BMS). It is encouraging
other manufacturers to develop leads, abide by the Financial Times Stock Exchange-Russell Group
(FTSE4) Good BMS (Breast Milk substitutes) criteria, and improve their ATNI BMS (Breast milk substitute)
sub-index performance. To date, two other companies have been recognised by FTSE4Good, and
another follows the criteria voluntarily. It will advocate for more aggressive industry action, encouraging
other BMS processors to take the measure (Nestles, 2020).

2.2 Managing Externalities.

Externalities in CSR relate to all determinants, either positive or negative, that have an impact on the
stakeholder’s rights, but could be discounted during business
decision process (Hamidu et al., 2015).

Nestle always aimed to address the elements that impact the

environment and communities. It reduced the greenhouses by 37% in
per ton of production in 2010. Launching the Net-zero road map
aims to half the emission by 2030 and reduce to zero by 2050
(Nestle, 2020).

All the factories have waste diversion process in place, and owing to
that it has achieved zero waste status in 95% of its factories for
disposal status. It is aiming to achieve 100% for all of its business
Fig 2.3 (Nestle, 2020)
(Ntesle, 2020).

6
Nestle has put all efforts to put Child Labor Monitoring and Rededication System(CLMRS) to curb child
labour. it is monitoring 86,000 children, and as a result of their efforts, one-third of the children are no
longer in child labour. One hundred twenty-seven thousand five hundred fifty children are protected
against child labour due to the company’s efforts. It helped provide the school kits and renovate the
buildings in communities (Nestle, 2020).

2.3 Multiple stake holder orientation

Business responsiveness should be beyond their shareholders, that is, stakeholders who are significantly
impacted by their decisions, such as employees, consumers, suppliers and communities (Crane &
Matten, 2013).

Nestle has maintained the two reporting systems; the

integrity reporting system is dedicated to internal
employees that address the wellbeing of employees,
and external stakeholders are monitored and engaged
by another tool called Tell us it helps generate the
analysis. It is using the insights of these tools to drive
the developments. Fig 2.4 reflects the engagement
with stakeholders. ItFighas
2.4 (Nestle, 2020)
a plan to combine both
platforms into Case Management System (CMS), which will generate better quality data for anslsysis.

Fig 2.5 CMS (Nestle, 2020)

7
In 2020, the initial pilot of the CMS tool was designed to streamline handling complaint cases in the
system. The tool has been launched in five markets: Brazil, Greater China Region; Russia and Eurasia; the
Middle East and North Africa; and Colombia.

Nestle collaborated with stakeholders in 10 under-developed countries in Asia and Africa; Examples
include creating awareness and supporting the Egyptian Government's 2030 vision in combating iron
deficiency in mothers-to-be and children under three years of age.

It has engaged with all stakeholders and rivals to advance industry commitments on promoting Breast
Milk substitute (BMS) products for 0 to 12-month-olds while assuring agreement with antitrust laws.

2.4 Social and economic alignment.

Social and economic alignment is feature has prompted much attention to the ‘business case for CSR’ –
namely, how firms can benefit economically from being socially responsible. Research conducted on
African American business managers, economic and ethical responsibilities come first, followed by legal
responsibility, and philanthropic responsibilities come last in terms of priority (Edmondson and Carroll,
1999 cited in Haron & Amran, 2015).

Nestle has collaborated with The Global Alliance for YOUth

and featured the European commissioner for jobs and social
rights for Jobs, Mr Nicholas Smith, in a Facebook live event
for Europe Middle East and North Africa (EMENA). Nestle
and The Global Alliance for YOUth will offer 300,000 first
jobs, apprenticeships and traineeships across the EMENA
region by 2025; Nestle will offer 40,000.

Nestle supported 19.8 million children through a nutritional

and behaviour change program; school teachers and
caregivers ran the program. During Covid-19, It ran online
programs in various schools about the awareness of healthy
eating.
Fig 2.6 (Nestle, 2020)

8
Covid-19 was life transformational for both world and Nestle too. Nestle allowed its employees to work
remotely to enable parents to full fill their family obligation. It placed safety measures in all of its supply
chains, offices and factories to ensure employee safety.

It donated nearly CHF 110, 000 to support COVID-19 relief initiatives developed by the Kenya Red Cross
Society and the IFRC. This donation was just part of our more significant response, fighting the crisis with
over CHF 10 million in combined financial and in-kind contributions to assist people and communities.

It also helped people stay hydrated and during Covid-19 time by water centre activities launched in
Argentina and Pakistan.

2.5 PRACTICES AND VALUES

CSR is clearly about a particular set of business practices and strategies that deal with social issues, but
for many people it is also about something more than that – namely a philosophy or set of values that
underpin these practices. This perspective is evident in CSR initiatives of
communitarian or collectivistic societies valuing traditions and cultural
practices of their local communities (Wang, 2011).

All employees enjoy a safe, healthy, and professional environment driven

by empowerment and the right to speak up, and it is part of the
company’s fundamental values. Values of Diversity and inclusion drive
Nestle as its natural strengths. Business ethics and compliance
commitment, business code of conduct, corporate business principles Fig 2.7 (Nestle, 2020)

are fundamental conditions to shared values.

2.6 Beyond philanthropy

CSR is primarily concerned in some parts of the world with philanthropy – that is, corporate
discretionary responsibility or voluntarism toward the general public. It is no longer charitable in reality
only but more than just philanthropy and community improvement initiatives (Wang, 2011).

Nestle has donated and supported over 75,000 families in partnership with the Bancos de Alimentos de
México in a rural area of Mexico. The objective of this activity is to improve the living standard in
communities in Mexico.

Nestle collaborated with various (International Federation of Red Cross) IFRC in various locations in the
world and donated above 7 million CHF in the form of aid support for various countries.

9
Nestlé’s CSR impact is far beyond the philanthropy and community giving, infact it looks broader picture
of their operation on environment and society. This point of CSR should be lifted from elective level to
and embed with business processes of the business (von Schnurbein et al., 2016).

3 Theoretical Frameworks Various.

CSR will be seen in the lens of various frameworks.

3.1 Carroll’s Framework

Fig 3-a Carrols framework- (Thacker, 2019)

3.1.1 Economics responsibility.

It may look unusual to see the economic aspect to part of CSR, however it is considered as fundamental
or the core due to the fact that expectations from society is to have sustainable business and that will be
only possible if businesses are profitable. Profits can help incentivize employees shareholders and giving
the valuable services to their customers (Carroll, 2016)

According to Statista (2020), Nestlé’s profitability has been phenomenally growing for last 15 years,
though it dropped by ~3% in 2020 compared to 2019, yet It posted a net profit of CHF 12.2 billion in
2020. Nestle is paying is increasing dividend to shareholder’s year by year,

10
 Graph 3.1 (Statista, 2020)

Nestle is obliging its shareholders very well, it is increasing dividend per share for it shareholder’s year
on year. It increased its shareholder’s dividend by 8% in 2021 compared to 2020, which is USD 2.99 (Y
Charts, 2021).

Growth Compare to last year

Nestle Dvidend Per Share (DPS)
2018
3.5 140%
Dividend Per Share (DPS)

2.99
2.77
3 120%
2.42
2.41
2.28
2.5 100%
108%
114%
2 100%
80%
106%
1.5 60%
1 40%
0.5 20%
0 0%
0%
2018
Year

Dividend Per Share (DPS) Growth Compared to last year

Graph 3.2- (Adapted from: Y Charts, 2021)

11
Nestle has 418 factories in 86 countries, and it is selling its products and services across the globe, and
employing 273,000 employees across the globe. Nestlé’s economic prosperity is giving stability to its
employees and stakeholders associated in value, which is one of the positive element of Carol’s
framework.

Nestlé organised the Facebook live event with The Global Alliance for YOUth in 2020 for Europe, the
Middle East and North Africa (EMENA), where it featured the European Commissioner for Jobs and
Social Rights, Nestlé and the Alliance for YOUth announced that they will offer three hundred thousand
jobs, apprenticeships and traineeships across EMENA by 2025, where Nestlé pledged 40,000 of these
positions.

3.1.2 Legal responsibility

According to Carroll (2016, cited in Leventhal, 2018). The second commitment (or societal expectation)
is legal. Since business does not always meet society's expectations, governments regulate business
through the law, and business has to know and practice the law and the essential jurisdictions. The legal
responsibilities include.

 Operating in a method compatible with the expectations of government and law.

 complying with various national, state and local ordinances.
 Administering a business as law-abiding corporate citizens.
 accomplishing all legal commitments to societal stakeholders.
 furnishing goods and services that at least serve minimal legal requirements.

Nestle has been placed in a new compliance process in procurement, where the due diligence process
highlights suppliers' red or yellow flag situations. It is also part of the European Commission for the legal
framework of human rights standards (Nestle, 2020).

3.1.3 Ethical Requirement

Businesses are expected to operate in ethical manners. It means that apart from business compliance,
companies will practice norms and standards that are not coded into law but expected to follow, In
ethical requirements (Carroll, 2016). Nestle has following ethical compliances in place (Nestle
Compliance, 2020)

 Nestle maintain the consumer Privacy.

 Marketing of breast-milk substitutes according to the WHO Code, and antitrust law.

12
  EU pledge compliance 2021.
 99.1% Marketing to Children compliance rate.
 Established code of business conduct
 Established Anti-corruption training tool.
 Established Bribery and corruption Policy and tools and trainings for employees.
 Human and Labor rights.
 New Nestlé Policy on Conditions of Work and Employment.
 System development, targeted training and human and labor rights risk estimations in all
operations.
 Nestle follows international guidelines and principles, such as the fundamental International
Labour Organization (ILO) conventions and it support the ILO’s Tripartite Declaration for
Multinational.

Nestle’s code of ethics is deeply rooted in the following values (Nestle CWA, 2021)

 Respect for ourselves.

 Respect for others.
 Respect for diversity
 Respect or future.
 Philanthropy.

3.1.4 Philanthropy
According to Carroll (2016, cited in Leventhal, 2018) corporate Philanthropy, includes all voluntary and
discretionary activities. Though Philanthropy may not be a duty yet, it is expected from society. They are
primarily driven by social activities that are not mandatory by law. Historically, Philanthropy has been
considered very bad in Nestle world; As per Ribeiro (2010), Peter Braback gave (Nestle Chairman) his
personal views in one interview that "You should not do good with money which does not belong to
you," he said. "What you do with your own money, this is absolutely fine." So personally, Peter Braback
was not so convinced with the company's philanthropic activities.

Nestle donated CHF 3 million to the International Federation of Red Cross (IFRC) global COVID-19
response fund; it was funded to manage the Crisis during COVVID-19.

13
Nestle donated CHF 110 thousand to Kenyan families as part of the COVID-19 relief crisis; this initiative
collaborated with IFRC. Part of the fund helped the vulnerable families in the form of cash or food ration
and the rest for financing the solar water system.

4 Three Domain Model

The three Domain model is comprised of three responsibilities economic, legal and ethical. Venn
diagram highlights the overlapping of domains and creates the additional four parts economical/ethical,
legal/ethical, economical/legal and economical/legal/ ethical domains. CSR is more conceptualised and
analysed in all these seven domains, shown in the fig 3.1. The ideal overlap is central where all
responsibilities, ethical, ethical and legal are residing. The exception to Carroll’s 4-part model is
philanthropy which is submerged in one of the overlapped ethical/economic domains. (Schwartz &
Carroll, 2020).

Nestle's sustainable initiatives give an outlook that it is in center qualifying the economic/legal/ ethical.
In contrast, the critics believe that Nestle is in the economic quadrant due to its economic drive and act
of selling infant formulas in third-world countries despite knowing that using the product increases the
mortality rate. It was passively reacting to WHO guidelines in a race to gain monetary benefits
(Velasquez, 1992).

5 Creating shared values

As goes by
name it
does not
mean to
share
the values, it is Fig 3.1 - Three domain main models (Schwartz & Carroll, 2003) primarily creating the values
(Chandler, 2020).

14
According to Porters (2021 cited in Chandler, 2020), Shared values are reflected in the corporate policies
and practices as a result of enhanced competitiveness, it simultaneously creates the economic and social
conditions in the society it operates. CSV is specific to the company and the connection is the value.

 We need to focus on those areas where your business most crossover the social challenges of
that area.
 Growing the revenue by revamping or reconsidering the existing product to increase the
competitiveness and finding the value preposition.
 Building the clusters that support the business in the same communities.
 Improve the business operations by dropping the cost, increasing the efficiency and creating
more impact.
 Redefining the activities in the value chain.
Nestle has flowing goals in creating shared values.

 50 million children living the leading healthier lives.

 Improve the livelihood of 30 million livelihoods in communities directly associated with the
value chain of the business.
 Zero environmental impact in the operation for the planet.

Nestle conduct a formal materiality analysis in the business value-chain every other year to identify the
key areas that have the most significant influence on the economy, society and the environment and
that creates the value to stakeholder (Nestle, 2020).

15
 Fig 3.2 - Nestle materiality analysis in value chain

6 Nestle’s CSR Strategic approach

According to Wei et al., (2021), CSR can play vital to drive the innovative work behavior (IWB) in current
competitive global business environment, shortened life cycle, rapid change in technology, meeting the
global challenges. Nestle has been giving its total contribution to society since its inception. It has
travelled a very long journey; it started from 1867 with Mr. Henry Nestle, who developed the solution to
address the high infant mortality and continued till date and pledged the net-zero headway till the year
2050. It is quite mindful about the necessities of communities around it, and hence always in race of
improving the quality of life with sustainable future.

16
 Fig 4.1 Nestle CSR Journey (Nestle, 2021)

6.1 Nestle Corporate Culture for People.

Nestle developed a long-term relationship with its employees lodged by a set of principles to drive
innovation in the business. It pledges to develop following working conditions for its people
continuously (Nestle, 2021).

 It gives employees the right of choice and level of engagement in order to drive constructive
discussions.
 It offers competitive compensation to its employees to enjoy healthy living standards.
 It treats the people engaged in outsourced business activities, which are not core to the business.
 It develops its employees with training programs to build their careers and sustainable future.

17
 Its corporate guidelines ensure the work-life balance, respect for their family lives and healthy
workplace of employees.
 Treat the employees with full dignity and zero tolerance for harassment, abuse and discrimination.
 It drives diversity and inclusion at its workplace, It aimed to increase the women workforce in the
top 200+ executives by 30% till 2022, and it is 25.6% by the end of 2020.

6.2 Building the society.

The society has major role in benefiting the business, and hence business can play a better role in
building the societies (Keys et al., 2021) Nestle took the following initiatives in order to build the society
(Nestle , 2020).

Nestle has collaborated with the Health Institute of Mother and child, called MAMTA, to create a
healthy environment for women. The project covers the wise scope with four groups adolescent,
Pregnant women, Lactating mothers and married couples. It created the awareness of menstrual and
general hygiene, post-natal hospital visits, improving the early breastfeeding practices, family planning
and nutritional effects on the lifecycles of individuals. The projects leave a holistic impact to build a
healthy society.

Nestle has tailored its support to communities from one society to another as the development of
communities is a crucial focus and positively impacts society. It built the community relationship process
(CRP) in developing countries. The tools helped identify the key stakeholders whom they need to engage
for Water sanitation and hygiene (WASH) interventions. The pilot is underway in Cambodia, Mexico,
Iran, Pakistan and South Africa. The main objective of this activity was to create awareness and access to
water, sanitation and hygiene as part of human rights to every individual.

Farming was not the ideal profession among the youngsters due to the
low income; enhancing the farmer's income was critical because many
farmers could not fulfil their family obligations due to the low income.
Nestle played a vital role in turning the grounds. It scaled up the
impact with its theory of change (ToC). This theory identified some of
the concerns and issues faced by farmers and developed strategies
specific to raw materials such as coffee and dairy. The program helped
farmers to create a more resilient business with its initiatives, such
Fig 4.2 - (Nestle, 2020)

18
as Farmer Connect, which covered the training of 355,000 farmers. It also developed the farm
enterprise by Agripreunership program.

6.3 Joining the Race to Zero

Nestle is playing its part in order to protect the environment, starting from minimizing the use of plastic,
to waste reduction, contribution in maintaining the planet temperature by controlling the use of fossil
fuels and rehabilitation of forests and river banks. It has taken the following initiates.

Nestle (2020) plays a vital role in protecting the

planet. Nestle has worked dramatically to
reduce plastic waste; it focuses on alternative
packing materials from plastic to other
materials. It aims to minimise the use of plastic
by at least 140,000 tonnes to reduce the
environmental impact. It has achieved some
landmark achievements in reducing plastic
consumption in its manufacturing facilities.
Table 4.2 reflects some of the groundwork
done. Nestle is collaborating with external Table 4.2- (Nestle, 2020)
bodies, and it established the Nestle Institute of
packing sciences, where experts are working to develop environmentally friendly and sustainable
packing solutions.

According to the same report, Nestle aims to produce 100% recyclable packing material by reducing the
use of virgin plastic. It has also pledged to reach net Zero by 2050,
and have undertaken various projects leading to that goal. It
includes rehabilitating riverbanks and forests where palm trees
and cocoa are planted to nurture the wildlife corridor. It is
committed to being 100% deforestation-free by the end of 2022
in its raw material supply chain, such as palm and cocoa. It
initiated the cavally project with Côte d’Ivoire Government and
Earthworm Foundation, and the partnership will address the

Fig 4.3 (Nestle, 2020)

19
threats of deforestation and help the communities directly linked to the threats. It has created the field
force that identifies the community's needs to incentivise them to curb the deforestation threats.

Additionally, it requires collaboration to keep global

temperature rise below 1.5°C. It has worked with
companies, governments and people to minimize the
emissions. It set targets to reduce the emissions produced
in production process by fossil fuels, the graph 4.4 reflects
the reduction by 37% in 2020.All the factories have waste
diversion process in place, and owing to that it has Graph 4.4 (Nestle, 2020)

achieved zero waste status in 95% of its factories for

disposal status. It is aiming to achieve 100% for all of its business.

7 Criticism.
Nestle has been reported and critiqued in various medias for slippages it had in terms of addressing its
CSR obligations.

# Critics
1 Nestle internal documents acknowledged that more than 60% of food and beverage lines such as
pet food, infant formulas, and coffee do not qualify for healthy food. Though the criticality is not as
severe as Maggi 2015 crisis in India, where lead contents in the Maggi noodles were more than the
permissible limits, and it claimed more than 20% of Nestle revenue (Business Today in, 2021). It
means that Nestle's ingredients used in most processed foods do not add nutritional value to
consumers
2 Nestle has pledged not to use child labour in any labour work, especially in the Ivory Coast in
Cocoa farms. A recent lawsuit filed against Nestle for child labour in cocoa farms in the Ivory Coast,
West Africa, sparked a new row of instigation against major chocolate processors, including Nestle
(Bancroft, 2021)
3 Independent News media reported the work place accident for one of its employee in work place,
which did not only result the injury to employee, but it also damaged the company reputation and
hefty fine of GBP 640,000 to it set up in United Kingdom (Skopeliti, 2021).

Table 8-(Adapted from: Author, 2021)

20
8 Nestle Actions During crisis.
# Strategic Actions to address the stakeholders responsibilities.
1 Nestle is selling the BMS in various markets; It continuously monitors its sensitive consumer
of BMS by a mechanism, it continues to monitor the children despite the COVID-19
pandemic.
2 Nestle made its operation flexible for employees during the COVID-19; it allowed some
employees to resume work from home. It created adaptability in the workplace for those
working in operation and processing areas.
3 It engaged with industry through virtual conferences, such as the European Health Network.
In 2020 and remained committed to exchanging and supporting key initiatives.
4 It virtually carried out two Water Resource Reviews throughout 2020 to address the water
scarcity changes.
5 It virtually carried out two Water Resource Reviews throughout 2020 to address water
scarcity.
6 Nestle initiated the digitalization of Nestlé needs YOUth and its activities. Nestlé, for
example, created an entrepreneurship programme in Mexico to support young innovators
through mentoring and strategic support for their businesses. The COVID-19 pandemic
maintained the momentum at the regional and local levels due to this.
7 The COVID-19 pandemic provided a new opportunity to drive collective action and meet
global sustainability goals. Nestle has joined other businesses in promoting governments to
support long-term recovery from the pandemic.
It supported a World Economic Forum initiative in September 2020 to reset Europe's
economy with a growth model based on net-zero emissions.

Table 9-(Nestle, 2020)

9 Recommendations
9.1 Society.
 Nestle should use natural ingredients in its food chain instead of using artificial ingredients.
Artificial flavours can carry harmful chemicals that can create serious health challenges (Only

21
 Organic, 2021). Natural ingredients will maintain the nutritional values, and it will help in
building the healthy society
 Nestle sells Ultra Heat Treatment (UHT) milk in some underdeveloped countries to increase the
shelf life and target the high volume market. Some of the nutritional values of UHT milk are
compromised in elevating the temperature to 140 C in the UHT process. (Dairy Australia, 2021)
Nestle should promote pasteurized milk to avoid damaging the natural nutritional values of milk,
secondly, Nestle should strictly comply with BMS requirements set by WHO.
 Nestle Should identify the root causes of child labour in Palm, Coffee and Cocoa farms and have
concealing sessions with the community to eradicate from the route. It can develop the farmers'
communities' schools, and offer stipends to bright students to encourage the communities.

9.2 Employees Welfare

 Nestle has to consider maximising operational safety to ensure its employees' good working
conditions, health, and safety. It should develop the operating manuals and train employees to
work in processing zones to minimise workplace accidents and improve safety.
 Nestle should facilitate the working mother in underdeveloped countries and be flexible in their
operating hours and work locations to enable them to address their social life.  
 Nestle should use the latest technology tools and artificial intelligence and train their employees
on the functionalities. So they are efficient in their work and maintain the work-life balance. 

9.3 Planet Environment

Nestle employees took active part in COP 26 to highlight the key topics and focused areas. It
shared steps Nestle has taken to reach net Zero by 2050 and halve emission by 2030. It included
primary changes in regenerative agriculture practice, transforming the existing portfolio to green
solutions by reducing the its hazards to environment. Improving the supply chain to renewable
energy is one of its prime focus (Nestle, 2021)
 Nestle has its wide operation in most of the underdeveloped countries, where most of the
mobility and supply chain is by large environmentally inefficient. Nestle should pledge to move
these supply chains and logistics to renewable by frontloading its actions on pledges.
 Another commitment in COP-26 was to preserve the forests and river ways (UK Cop-26, 2021).
Nestle has to closely work with the environment, forest, and water conservation authorities and
the relevant Governments and discuss the challenges it is facing in the production of raw
materials and seek their support in preserving the natural resources.

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  Nestle is provided with independent assurance from Bureau Veritas UK Lt over creating shared
values and sustainability reports, work was limited to head office. The assurance was provided
comprehensive data and text included in the Report and included an evaluation of the Report’s
alignment to Global Reporting system (GRI) Standards and the RE100 criteria. Nestle can
replicate it to all plants and operations.

10 Conclusion
Nestle has travelled a long journey to build social values for all stakeholders at all levels. Its efforts did
not get dilute to make a strong society and people even during the crisis of Covid-19. The
acknowledgement from BV can best witness the Efforts. Its organisational goals are very much coherent
to the social values, and hence, it makes it easy for them to stay on track of economic growth. Nestle is
collaborating with Experts like YOUth, IFRC, MAMTA, CLIMR, local Governments, and other NGO’s to
find the area of development in its value chain for its employees, societies and ecology. Inevitable
slippages and overlooked areas still exist in its value chain; some suggestions are given in the
recommendation section to address them.

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https://www.businesstoday.in/latest/corporate/story/nestle-says-less-than-30-percent-
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