Nestle Corporate Value Analysis

Nestlé is the world’s largest food company and its products are sold all around the world. It has over 300,000 employees, who work in 461 factories spread over 83 countries throughout the world. (Creating Shared Value In The Supply Chain, 2015, para.1). Nestlé is a major exporter in many European countries, such as the UK and Ireland, and exports millions of pounds worth of products which then consumers end up buying in the supermarkets.
Nestlé’s success and business development are based on a number of corporate business principles which set the direction in which the organization and its employees operate. These principles are really at the heart of Nestle’s culture and “aim to protect the trust of its consumers and other stakeholders” (Creating

A stakeholder can be a person or a group that has interest and the right to make decisions within an organization. Large multinationals, such as Nestlé, are increasingly becoming more socially responsible: “Nestlé believes for a company to be successful in the long term and create value for its shareholders, it must also create value for society. It calls this Creating Shared Value” (Creating Shared Value In The Supply Chain, 2015, para.8). Creating Shared Value has become central to the way Nestlé does business. It emphasizes the connections between societal and economic progress. In other words, it aims to create new opportunities for growth and greater value for both society and business. As one of the largest food companies, Nestlé can have a great impact on the following areas: nutrition, water and rural development. Nestlé has invested significantly in these areas in order to boost the living standards of farmers, enhance the quality and availability of water and deliver improved nutrition and wellness to consumers. Those improvements are key to the “long-term success of Nestlé’s

This concept, new way of doing business has brought about various benefits. It has become “a key way in which Nestlé is tackling issues facing cocoa farmers, their local communities and families” by raising standards of living and providing them with higher earnings. (Creating Shared Value In The Supply Chain, 2015, para.13). The Nestlé Cocoa Plan is a prime example of Nestlé’s business philosophy and clearly shows how this initiative not only created value for cocoa farmers and their families, but also helped guarantee a reliable, sustainable and high quality cocoa supply chain. Furthermore, the Nestlé Cocoa Plan is currently trying to “ensure a new generation of cocoa farmers” given that the average cocoa farmer is over 55 years old and younger farmers with new skills are needed to maintain a long-term sustainable production (Creating Shared Value In The Supply Chain, 2015, para.13). As well as increasing shared value in the supply chain, Nestlé also makes sure communication with stakeholders is effective and productive. Executives at Nestlé inform stakeholders about the progress of its program and encourage them to give feedback in order to “continue to drive improvements in its performance” (Creating Shared Value In The Supply Chain, 2015, para.19). However this concept of Corporate Social Responsibility has now changed and is seen