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Nestlé: CSR Framework

Case Overview

Nestlé sought to further sharpen its social engagement with a thorough review of its current activities and the identification of new ways of aligning social and business objectives.

The Challenge

Nestlé had a history of substantial social contributions across the globe. Despite this very positive legacy, Nestlé’s leadership saw opportunities to further reinforce the linkages between social engagement activities and Nestlé’s longer-term business development. As Nestlé headquarters transitioned from being a holding structure to a management center with increasing authority in directing global business units, social engagement initiatives also had the opportunity to evolve and, in turn, be even more specific in support of global business development.

Approach & Solutions

FSG began by evaluating Nestlé’s social engagement portfolio and mapping investments related to the various businesses, their partners and geographies. Particular attention was given to important dimensions of value creation: the approach to using unique company skills in delivering program objectives, the level of synergy between “value chain impacts” and social investments, and between the different social investment programs themselves. Interviews were conducted with Nestlé leadership to understand the social and business motivation behind each investment. The findings from the portfolio review were analyzed in the context of Nestlé’s business environment to identify opportunities for enhancement and growth.

FSG next turned its attention to analyzing the social issues Nestlé encountered in its global operations. Through research and interviews, FSG identified potential social investment targets that could play a role helping to differentiate the business. Primary emphasis was placed on the three pillars of Nestlé’s value chain: access to raw materials, manufacturing and management (infrastructure, skills, technology) and products and consumers (nutrition, health and wellness).

A framework for social engagement was developed to guide future investments and align the activities of the business units. The framework encompassed the continuation of main current initiatives as well as the development of new global initiatives and locally designed and managed projects.

Nestlé’s investment in this process clarified their strategic options and strengthened the support of its business units around the world for the company’s social engagement activities.

About Nestlé

Nestlé, headquartered in Vevey, Switzerland, was founded in 1866 by Henri Nestlé and is today the world's leading nutrition, health and wellness company. Sales for 2009 were CHF 108 bn. Nestlé employs 280,000 people and has factories or operations in almost every country in the world.

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