Report

Nestle – Key Features

Since 1866, the business has been working for the people to improve product quality and offer clients valuable services and goods. Global icons provide more than 2000 different brands to Nestle for sale. There are supply chains in 186 nations worldwide. Nestle works on achieving the 2030 Sustainable Development Goals of the United Nations (Singkali and Sasongko 2022). The creation of value for the customer is the company's primary characteristic. Thus, a bigger contribution has been made for more than 150 years to aid and support more than 50 million children, 30 million communities, and those who have a plan to improve the environment or the world.

The extensive history of Nestle along with personal usage of their goods are the driving factors for selection of the Nestle company for report. The significant initiative made by Nestle to switch to paper straws from plastic. Nestle's efforts to be sustainable in society and create a better environment are the driving force behind the decision.

Socially Responsible Investment

In order to benefit the company, Nestle focuses on the fundamental principle of producing shared value. Long-term success for the corporation will benefit society. Indicators from businesses reveal that it has contributed to the key meat, pulp and paper, and sugar supply chains being 97.2 percent deforestation-free. Similar to this, Nestle's factories have reduced their water use by 2.3 million mm cubes. Sustainability calls for a 16.3 percent reduction in the components (Corporate Governance, 2022). The most socially responsible action made by Nestle, ranking at 74.9 percent, is the use of recyclable plastic packaging. The number indicates that 74.9 percent of the company's plastic packaging may be recycled and used again.

Core Topics

·         Human Rights

·         The Environment

·         Consumer Issues

The report will cover,

·         The report will cover the company's salient features.

·         Investments will be made for the social responsibility of reducing lake.

Organizational Governance (Risk Management)

Nestle is built on corporate governance to offer the fundamentals that will create a sustainable value chain for its stakeholders or customers. Efficiency levels from top-line and bottom-line successes are balanced. For the quick study of changing customer wants, there is science and consumer-driven technical progress (Corporate Governance, 2022). Nestle committed to adopting tree plantations and reducing water consumption in their plants in 2021 as part of other efforts to rehabilitate the environment.

Its goal is to make people's lives better by giving them a safe and healthy world. Therefore, there is a chance that this participation may raise the cost of product manufacturing and market pricing. Strong Nestle was forced to move toward raising the prices of the juices or drinks after the adoption of paper straws in place of plastic ones in order to control or balance costs.

People's brains are more significantly affected by it, and they may decide to purchase the product themselves or switch to a different product or brand. Nestle is determined to carry on and make progress toward 2030's goal of completely eliminating all greenhouse emissions. and it is doable by 2050.

Nestle is therefore focusing on conference governance to determine how the firm is going in the direction of global independence and becoming an organisation that is not only dependent on the competition to produce goods at low costs or at no cost and then sell them. Instead, Nestle is focusing on environmental sustainability to win over stakeholders and customers in particular and advance social and environmental sustainability.

They have begun to take their places on the board of directors, which has been established to monitor the company's development. Since 2015, there have been new independent directors, and it is important to make sure they are effectively using their relevant knowledge of the food system, digitalization, drinks, and other business-related themes (Srivastava et al., 2019). The engagement to have shareholder, investor, roadshow, and analyst calls is still ongoing.

German roundtables were also held for investors in the Middle East, Asia, and North America, as well as in Germany, Switzerland, France, the United Kingdom, and the Netherlands. Corporate governance is consequently going in the direction of actions that are advantageous for the committed sustainability of the organisation.

The Nestle board agreed in 2021 to establish a sustainability committee so that it could examine and evaluate its social and environmental responsibilities in order to improve sustainability in general (Shen 2022). The committee is in charge of the programme for doing due diligence on human rights and climate change. Therefore, plans are developed to diversify and incorporate the firm in order to create a sustainable atmosphere.

The purpose of the corporate governance committee is to routinely examine the governance with regard to asset management, liability, and other risk assessments. There is a risk assessment that has to do with how assets are used to make better investments and which liabilities are used to carry out sustainable actions to preserve the earth. The nominating committee recognises the need of having independent directors to assess the products' organisational makeup, operational efficiency, and long-term strategy.

It can move toward the idea in the decision-making since it has nominations for the board and candidates. In order to assess how the firm is doing right now, the governance is also dependent on the deployment of ESG-related key performance indicators. Audit committee is included in the governance to monitor financial reporting, external auditing, compliance, internal control, and risk management. The organisation may progress toward greater alignment and reward system to establish the values and performance.

It is crucial for every business, including Nestle, to progress toward risk assessments for things like fraud, compliance, enterprise risk management, and yearly risk assessments. For the stakeholders committee to produce value for the people in the society as a whole, it is crucial to be effective over the long term for deep lasting value. Therefore, the government aids in balancing the proper place of the business in society.

3 Core from Clause 6 ISO 26000 - Human Rights 

Human rights serve as the foundational principle for all organisations, including Nestle's stakeholders in society. It is important to concentrate on creating a better and happier atmosphere for people, families, and employees working for the organisation. Nestle has made a commitment to address human rights issues and then work on them in order to produce a better planet with more natural resources and better lifestyles for people. The corporate business values of Nestle, which state that if there is a human rights violation, legislation must be present to protect the workers' rights, are of utmost importance to its staff.

Nestle recognised 11 human rights in 2015 and called attention to them in the workplace (BOAKYE et al., 2019)

  • ·         The freedom of collective bargaining
  • ·         Workers accommodation
  • ·         Working time
  • ·         Workers safety and health child labour 
  • ·         Living wage
  • ·         Land acquisition
  • ·         Forced labour
  • ·         Access to water
  • ·         Mechanism of grievances
  • ·         Data privacy policy and protection

Since 2015, Nestle has been actively working on human rights. In order to improve employment conditions, it worked in 2017 to increase human rights while maintaining audit processes and offering facilities such as brownfield projects, corporate partnerships, local communities to manufacturers, and other mergers and acquisitions (TAHRI and KOURAICHE  2020). Six more human rights impact services were also evaluated in various nations where Nestle conducts business. In a similar vein, all employees received training on their human rights for the organisation or society in 2020.

In order to create a better supply chain that benefits and disadvantages working conditions for the employees, Nestle regularly monitors human rights. In order to realise that a firm must comprehend human rights and work on it in order to be sustainable, it is done to improve people's quality of life and have a good influence on stakeholders and society at large.

The need for society to work toward environmental sustainability as a social obligation carries with it a tremendous deal of responsibility (Ali 2018). The right to a sustainable and healthy environment is a fundamental human right. It is crucial to have a healthy atmosphere for anybody. Following the pandemic scenario, people all over the world have a strong understanding of the necessity of having a safe and healthy atmosphere for themselves and their families in order to preserve the environment. Nestle is therefore focusing on tree planting programs to protect the environment.

Nestle planted trees in a variety of nations in 2021. It was planned to proceed with tree planting. The investigation of potential sources of renewable energy will continue in 2022. Nestle is making a lot of effort to protect the environment, but it wasn't firmly established in any one nation or neighbourhood. Nestle is working with all nations to encourage the planting of trees and lessen the harm that greenhouse gases do to the environment.

Of course, Nestle does not have operations in every nation or region of the globe. Hence, protecting the environment against gas emissions from other businesses, automobiles, and transportation is crucial. In order to conserve the ecosystem, it is very vital to take the step of planting trees. Additionally, it displays to the public the sustainable measures done by the socially conscious business. In order to conserve the ecosystem, it is very vital to take the step of planting trees. Additionally, it displays to the public the sustainable measures done by the socially conscious business.

The Environment

Nestle's sustainability is shifting in favour of having better competition, accountability, and investment levels. The proportion demonstrates the company's significant commitment in giving women access to senior-level positions, which is a significant step toward increasing the company's social responsibility. The effort put in to reduce greenhouse gas emissions from various items Avoiding deforestation is also the best course of action for a sustainable ecosystem. Due to the anticipated future shortage for future generations, there has been a decrease in water consumption.

In a similar vein, spending money on recyclable plastic packaging is a good way to protect the environment. The regulation of greenhouse gas emissions is on the opposing side. As a result, several initiatives have reduced greenhouse gas emissions by 4 million tonnes. There have been 9.7 million more people born since the year 2018, bringing the total to 13.7 billion (Pillay and Scheepers 2020).

As part of its social responsibility, Nestle has long upheld environmental sustainability. Nestle has consequently made several efforts to promote environmental sustainability in order to have a beneficial effect. The manufacturing activities where there is a consumption of water energy and greenhouse gas emissions have environmental indicators. According to the indications, it is crucial to manage operations while enhancing the efficiency of energy consumption, which has decreased by 3.2% from 2015 to 12.5 and 14.0% from 2015 in terms of greenhouse gas emissions.

As a consequence, the following performance has a higher energy efficiency, which has improved the environment for coming generations. It is crucial to remember that this planet does not just belong to its inhabitants. However, it is the duty of the local populace or active organisations to care about and ensure the planet's security for coming generations. They need to have a safe world where people may live comfortably. Nestle has consequently made several actions in 2021 to create a healthy environment. Nestle decided to put in the time and effort necessary to find ways to cut back on greenhouse emissions.

By the year 2018, this effectively carried out several product initiatives that reduced the usage of greenhouse emissions while ramping up manufacturing. Despite facing several obstacles in its energy production volume, Nestle chose to reduce greenhouse gas emissions in an effort to protect the environment. The globe has experienced a similar dangerous predicament. The possibility of water shortage for future generations is thought to exist. Thus, Nestle's operational efficiency has resulted in a decrease in water usage and a shift toward more productive use of excess water rather than water waste. As a result, Nestle optimises its water consumption in order to save water under the cooperation with water Stewardship shape.

In this period of competition, every company is manufacturing quickly so that it may offer the product at a low price to the consumers in an effort to attract them. Nestle's key step was to switch to paper straws from plastic ones. However, Nestle is moving toward the use of paper straws rather than plastic ones after taking the worth of the environment and its sustainability into consideration. As a result, they continued to introduce paper straws over time in other nations. And while attempting to reduce the manufacturing of plastic straws, it was effective in doing so.

Consumer Issues

It is crucial for any consumer to feel secure about the information or data she is providing to the business. No customer would want to do business with a firm whose data is not safe. Nestle is a pioneering business in its socially conscious approach to the environment and society. Nestle has also pursued a variety of strategies and plans in this respect to provide a secure working environment for its employees. On the other hand, Nestle has recently made progress in protecting consumer rights. There are problems with consumers, and each one of them has information or data privacy as a top concern.

Many Nestle customers depend on the brand to feed their families and other loved ones. Therefore, it is crucial to purchase the item from the required. The relationship between the customers and the business must now be established before the customers may engage in financial transactions and buy products from the business (Suryandari 2021). Any organization's product is followed by a financial transaction that shares sensitive and personal information with the corporate database. Consequently, it is determined by each customer's preference and want. It is to connect with a business where the customer's financial information is secure.

It is done to make sure that it hasn't been shared with anybody else for any nefarious purposes. Nestle offers a platform so that its customers may make orders online or shop for items all around the world. The Nestle has a substantial supply chain management. Similar to this, consumers' access to items, no matter where they live, is a constant problem. Nestle has a more robust supply network and demonstrated that its products are available everywhere in the world. Nestle operates in about 186 nations, and its goods are accessible in each nation's cities and regions so that customers may readily purchase them.

Concern for the consumers' health and safety has always existed. Nestle has thus taken the necessary action to plant trees in an effort to save the environment. Nestle, on the other hand, is dedicated to getting rid of plastic straws and the usage of plastic in its goods (Galli and Sottas 2021). Instead, Nestle is moving toward using paper so that they may become environmentally friendly and the top option among stakeholders. Nestle's understanding of the needs and demands of the customer demonstrates responsibility.

In order to address the concerns of the customers. Nestle is working hard to solve concerns that even customers haven't thought to address, like planting trees or having a serious concern for the environment. Nestle is aiming to create a sustainable green environment where it can address customer concerns, advance socially good initiatives, and make the environment more environmentally friendly.

Consumers in today technology age are very concerned and have problems when businesses don't respond to them in a timely manner (RASWANDA 2022). Nestle is working hard to provide a stable atmosphere for customers so they may contact the business whenever they have issues or suggestions regarding any goods or services. As a global company with operations in several nations, Nestle offers a social media platform for its customers as well as a personal website. Through the email, offered phones, or provided addresses, users may communicate their problems.

Conclusion

Nestle is more focused with getting the greatest relationship possible with customers by ensuring that consumer replies and complaints are answered promptly. The research focused on a thorough review of Nestle's social responsibilities to society and the environment. As a result, the report's foundation was an evaluation of investment in social obligations. In this regard, the study focused on the main points and subjects that should be covered in the report. The three issues covered in the report were consumer, environment, and human rights. It demonstrates that there was organisational governance and risk management in place to ensure that all projects had zero emissions of greenhouse gases by the year 2050.

In a similar manner, the report continued by analysing human rights. Since Nestle began focusing on human rights in 2015, they have identified 11 rights that may be under jeopardy and that require attention. The study also discussed the need for environmental security and the necessary procedures. Nestle has cut back on its use of plastic and water so that it can support environmental sustainability. Similar to this, Nestle's efforts to promote paper straws are immeasurable for the welfare of the environment.

The article discusses a number of consumer-related topics that are critical to comprehend, including the importance of consumer security and environmental safety. Additionally, the consumer data exchanged with businesses through financial transactions is explored, and Nestle has been successful in integrating a system that is better for consumers and responsible. In order to foster better customer relationships, the complaint process and consumer response are both stronger and better than those of the competition.

Overall, Nestle is a socially conscious company that has advanced many initiatives like the introduction of paper straw, tree planting, and other greenhouse projects to be finished to have the sustainable and better world.

References

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BOAKYE, B., NYAVI, R.D., DROEFENU, J., OKO NETTEY, R.N.A. and ADJEI MENSAH, J.O., 2019. IMPACT OF COOPERATE SOCIAL RESPONSIBILITY ON ORGANIZATION PERFORMANCE. A CASE STUDY OF NESTLE GHANA (Doctoral dissertation).

Cambaza, E.M., 2022. A Commentary on Nestlé's Corporate Social Responsibility. Academia Letters.

Galli, C.C. and Sottas, J., 2021. Nestlé:‘Caring for Water’through people, farmers, and communities. Sustainable Industrial Water Use: Perspectives, Incentives, and Tools, p.43.

Nestlé Global. 2022. Corporate Governance. [online] Available at: <https://www.nestle.com/investors/corporate-governance> [Accessed 5 August 2022].

Pillay, R. and Scheepers, C.B., 2020. Nestlé South Africa: leading multi-stakeholder partnership response in the COVID-19 context. Emerald Emerging Markets Case Studies, 10(3), pp.1-18.

RASWANDA, A., 2022. PERAN SDGS PT. NESTLE INDONESIA TERHADAP KESEJAHTERAAN MASYARAKAT PUJON (Doctoral dissertation, Universitas Muhammadiyah Malang).

Sekhon, A.K. and Kathuria, L.M., Undertaking Corporate Social Responsibility through Creating Shared Value Approach: A Case of Nestle India Limited in Punjab. BHUManagement Review, p.65.

Shen, Y., 2022, April. SWOT Analysis and Strategy Selection of Nestle. In 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022) (pp. 800-805). Atlantis Press.

Singkali, A.C. and Sasongko, G., 2022. Creating Shared Value for Millennial Age: Case Study of PT. Nestle Indonesia. Jurnal Studi Sosial dan Politik, 6(1), pp.126-133.

Srivastava, A.K., Jonjua, M. and Rana, R., 2019. Status of Communicating CSR to Stakeholders on Social Media-A Case Study on ITC Limited & Nestle India. Journal of Content, Community & Communication, 9, pp.81-91.

Suryandari, R., 2021. Implementation of the utilization of PT Nestle's Corporate Social Responsibility (CSR) funds at public elementary school Srengsem 1 Bandar Lampung. Journal of Advanced Islamic Educational Management, 1(2), pp.85-92.

TAHRI, F. and KOURAICHE, N., 2020. Nestlé in Society: Creating Shared Value Through Social Responsibility.