Nestle And Society Case Study

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Nestlé and Society Nestle through its policies has communicated the principle of sustainable development. 2006 was a change year for Nestle, the company made contracts with foundation strategy group. That was a non- profit organization which specialty is strategy consultation, evaluation and research. The alliance was resulted by the efforts of Mark Kramer and Michael Porter who were founders. The aim of this alliance was to study the Nestlé’s social responsibility practices and give recommendations by which the company can bring betterment in its CSR practices. This was an important corporate strategy that resulted in both social value and the economic value for the company. This collaboration made a strategy to implement the idea of creating…show more content…
The pyramid reflects the activities through which company could interact with the society. The pyramid is based on three levels, the compliance, sustainability, and creating the shared value. The compliance deals with the regulations and antinational laws which company has to follow. These include “United Nations Millennium Development Goals”, code of conducts as well as Nestlé’s own values and principles. All of these principles provide a guideline through which company can interact with society for mutual benefit. These all principles are written in company’s corporate business principles. Creating Shared Value Strategy Nestle has developed creating shared value strategy that aimed to meet the consumer and stakeholders needs. It was a long-term planning strategy that elaborates every single investment in term of sustainable value for the business or the society. This strategy utilizes the core business strategies to generate economic values for both, the society and the business. The aim of this strategy was to serve consumer with healthy…show more content…
That helps the company to achieve the highest level of organic sales along with brand reputation. There is an increased improvement in sales and profit margins as well. These were the objectives that Nestle was trying to achieve since 2006.this development in profitability rate is associated with high expectations of stakeholders and value of CSR expectations as well. Cost and risk reduction The involvement of Nestle in protecting water resources is associated with a reduction in cost and risk factors. The Smith (2005), argues that some CSR activities are described as equal employment opportunities, new policies, and improved practices that all increase the shareholder value in long-term by decreasing the risk and cost factor. This water saving strategy is also associated with promoting good morals and ethics in employees and resulted in reduced employee turnover (Berman et al., 1999). This increased the profitability of Nestle in term of low turnover and also in promoting

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