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Making A Difference Through CSR:Meeting the Challenges

CSR as Business Strategy~ the NESTL ersecti!e

"resente# $y:Stephane Alby

E%ecuti!e Director& 'inance ( ControlNestl) *Malaysia+ Berha#


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Making A Difference Through CSR:Meeting the Challenges

An intro#uction

An ,ntro#uction

Nestl)-s Concet of CSR

Conclusion


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The NESTL Group

. 'oun#e# in /011 $y 2enri Nestl)

. Nestl) is resent in o!er /33 countries

. 4orl#-s largest foo# 5anufacturer&hea#6uartere# in S7it8erlan#

. E5loys 9;&333 eole 7orl#7i#e

. // factories in 01 countries

. Sales of ;9 $illion in#i!i#ual ro#uctseach year

. 4orl#-s largest ri!ate nutritionresearch facility

. /< R(D Centers 7orl#7i#e

. RM $illion in!est5ent annually onR(D

NESTL ~ An Introduction

NESTL MALAYSIA

. Starte# $usiness oerations in /=/9

. "u$lic liste# on Bursa Malaysia

. Malaysia-s lea#ing halal foo#co5any

. E5loys >&333 e5loyees

. RM;?/ $illion in sales turno!er in933

. 0 'actories@ 1 Sales ffices an# /National Distri$ution Centre

. 4orl# class ro#ucts ( $ran#s:


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Soli# CSR 'oun#ation

Nestl) 7as esta$lishe# as the result of the hu5anitarian act of ourfoun#er& 2enri Nestl)? 2e #e!eloe# a cereal 5ilk $ase# ro#uct in /011to sa!e an infant-s life as the $a$y coul# not $e $reastfe#?

CSR is art of Nestl)-s DNA an# is inherent in Nestl)-s Manage5ent (

Lea#ershi "rinciles ~ to create longter5 !alue for society

CSR is $uilt into the Nestl) Cororate Business "rinciles an# is a art ofits $usiness strategy?

Nestl) suorts The N lo$al Co5act-s "rinciles 7hich are

incororate# in the Nestl) Cororate Business "rinciles ~ as a gui#e forour $usiness ractices?


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The Role of Business an# CSR

Built into Corporate Strategy

e!lect" #utually dependentrelation"hip$ bu"ine"" and "ociety

'or Business:.relia$le& high 6uality sourcing.i5ro!e# go!ern5ent functioning regulatory.skille#& loyal 7orkforce.suerior ro#ucts 7hich successfullyco5ete

'or Society:.i5ro!e# earnings $y suliers.i5ro!e# skills an# earnings& Fo$ sta$ility e5loyees.higher 6uality of life consu5ers.greater sta$ility& econo5ic an# social#e!elo5ent 7hole society


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Mar% &ra#er' Senior (ello)' Center !or Bu"ine"" andGo*ern#ent' +ohn (, &ennedy School o! Go*ern#ent'-ar*ard .ni*er"ity and Managing /irector' (oundation

Strategy Group 0(SG1

The Concept o! Shared 2alue Creation


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Share# Galue Creation

Through Share# Galue Creation& a co5any links itsoerations to generating longter5 !alue $oth for its $usinessan# for society as a 7hole& an# #efines its success in ter5s ofinternal financial returns an# e%ternal social an# econo5icresults? lti5ately& creating share# !alue ackno7le#ges $oththe 7ork that cororations nee# to #o to re#uce negati!ei5acts on society as 7ell as& an# 5ore fun#a5entally& ho7they can $e art of rogress on glo$al challenges?


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Create long ter# *alue !or Bu"ine"" and Society

Mutually dependent relation"hip$ bu"ine"" and "ociety

&ey part o! bu"ine"" "trategy

2alue creation through the *alue chain$ Agricultural "upplier"' e#ployee" and a""ociate"' cu"to#er" and "ociety at large

In*e"t#ent" #u"t be good !or the country and the co#pany

(ollo)ing code" o! conduct nece""ary' but not "u!!icient

To create Share*alue' you ha*e to create Shared2alue )ith "ociety



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Share# Galue is alie# across Nestl)HsGalue Chain

Agriculture andSourcing

3urcha"ing 3ractice"

Agricultural andSupplier /e*elop#ent

a) #aterial acce"" at

"peci!ied 4uality and!ore"eeable price

-igher !ood outputu"ing !e)er re"ource"

2aluechaini#pact

Gro)thconte5t

Ne"tl6

bene!it

Societybene!it

Manu!acturingand /i"tribution

En*iron#ental' Sa!etyand Labour 3ractice"

Better (ood Sa!etyStandard" and7or%!orce /e*elop#ent

3re#iu# !ood#anu!acturer

-igher !ood production"tandard"

3roduct" andcon"u#er"

Ne)8reno*ated product"!or nutrition health and

)ellne""

Increa"e %no)ledge and

a)arene"" !or healthyli!e"tyle"

3ro!itable gro)th !ro#"uperior productbene!it"

7ider acce"" to !ood'and nutrition and health


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Each Nestl) 5arket has its o7n CSR roFects 7ith theo!erall u5$rella the5e of Share# Galue Creation 7hichhels ensure that 7e 5eet the ?N? Millenniu5De!elo5ent oals? Throughout the rou& 7etry to ensure that one or 5ore of the follo7ing goals are 5et :. Era#icate e%tre5e o!erty an# hunger

. Achie!e uni!ersal ri5ary e#ucation

. "ro5ote gen#er e6uality an# e5o7er7o5en

. Re#uce chil# 5ortality

. ,5ro!e 5aternal health

. Co5$at 2,GIA,DS& Malaria an# other

#iseases. Ensure en!iron5ental sustaina$ility. De!elo glo$al artnershis



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. E%tensi!e range of CSR initiati!es in Malaysia 7hich focuson e#ucation an# i5ro!ing the 6uality of li!es for lessri!ilege# co55unities?

. So5e of our co55it5ents inclu#e : Contract far5ing for the har#core oor@ Setting u of kin#ergartens in rural areas@ "ro!i#ing learning resources for the hysically an# 5entally

challenge#@

Bri#ging the #igital #i!i#e an# ro5oting the learning of English inrural schools !ia ,CT@ Mentoring of SMEs in the foo# in#ustry@ 2eling to ro!i#e sustaina$le li!elihoo#s for single 5others

9. CS 79& IN MALAYSIA


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Contract (ar#ing o! Chillie"

Nestl) 7orks closely 7ith the local far5ers association in sourcing for 6ualityagricultural ro#uce an# ro!i#e technical e%ertise to ensure $etter yiel#s

Nestl) ro!i#es transfer of kno7le#ge an# assistance to the far5ers on oo#

Agricultural "ractices an# hels the5 $e selfsufficient an# in#een#ent? Create# artnershis for sustaina$le agriculture? Access to ra7 5aterials fro5 a relia$le source an# 5eeting Nestl) 6uality

stan#ar#s? "roFect has 7on the "ri5e Minister-s A7ar# for SocioEcono5ic De!elo5ent& 'ar5ers 7ere accor#e# the resecte# an# ackno7le#ge# SALAM accre#itation

for e%cellence in far5ing ractices in 933 7hich is the official recognition thatoo# Agricultural "ractice *A"+ is i5le5ente# an# a$i#e# $y?

I#pro*ing (ar#er": Inco#e in &elantan


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The Ne"tle (ood Mentoring 3rogra##e !or SME"

The rogra55e 7as initiate# in /=== to ro!i#e assistance to s5all5e#iu5 co5anies in the foo# in#ustry to attain 7orl# class stan#ar#s

through the sharing of kno7le#ge an# e%erience 7ith Nestl)

Range of 5entoring toics co!ere# inclu#ing halal certification@2ACC"@ 5arketing@ legislation@ sourcing@ etc

To #ate& the rogra55e has successfully traine# 5ore than 9333articiants fro5


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,n an effort to internalise the CSR hilosohy of the co5any& 7e un!eile# aco5any7i#e initiati!e in 933 ~ the Nestl) REAC2,N T to CMMN,TJ (K,DS e5loyee !olunteer rogra55e *or Nestl) RCKS for short+ to furtherencourage e5loyee in!ol!e5ent in the co55unities 7here the Co5anyoerates& 7hich is ai5e# at reaffir5ing an# strengthening our co55it5ent to CSR?

. Nestl) RCKs ro!i#es an a!enue for all our e5loyees to $e in!ol!e# in Nestl)-sCSR rogra55es 7hile gi!ing the5 the oortunity to fulfil their o7n social orco55unity o$ligations? This is the first initiati!e that is launche# nationally in all 7orklocations in!ol!ing so5e ;&33 e5loyees& an# allo7s our e5loyees to #e#icate /1hours of their 7ork ti5e annually to7ar#s CSR acti!ities& en#orse# $y the Co5any?

. Currently& there are 90 ho5es& orhanages an# charita$le organisations that Nestl)has $een suorting& 7here they 5ay !olunteer their ser!ices?

,NTERNAL,S,N R CSR 4RK


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The NESTL Concet ofCororate Social Resonsi$ility

Conclusion:The CSR 2ierarchy

C9M3LIANCELa7s& Business "rinciles& co#es of con#uct

S.STAINABILITY"rotect the future

CEATES-AE/ 2AL.ERe#uce o!erty&,5ro!e health

E5o7er eole


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Than% You

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