Nestle's Corporate Social Responsibility
Added on 2020-01-28
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Table of Contents1
The business environment is the surrounding factor that shapes the activities of theorganisation for conducting their planned business enterprises. It comprises of both theinternal and external factors that are integrally related with the business organisations andcontribute to the processing of the business activities. The execution of the business functionsresults in the ultimate outcome of the companies that the company initially targets to achieve.In this assignment, one of the most popular business organisations, Nestle, has been takeninto consideration for analysing the detailed impact of the business environment on theregulatory policies of the company, as well as all the related factors that directly or indirectlyinfluence the company’s overall actions. Figure 1: Logo of Nestle(Source: Nestle.com, 2016)2
LO1. Understanding the organisational purposes of businessAC 1.1 Identifying according to the structures of different types of organisation thatNestle caters for or has business relationships withThe different types of structures prevailing in the business market are categorised asthe public, private and the voluntary sectors. These groups of companies function for theaccomplishment of certain objectives that they set at the prior level of establishing theirorganisations. Nestle is a public-sector organisation. One of the examples of private sectororganisation is Tesco, whereas example of voluntary sector business organisation is BritishRed Cross. Nestle is associated with some of these business organisations for conducting acollaborative work and help each other in the attainment of their aims. Different sectors ofbusiness organisation have different objectives. Nestle could obtain the records from theother sources from the other regions instead of just searching or having the other mechanism.Nestle plays crucial role and tied up with the non government organization for girlchild education and it gives the message that girls have the equal rights for taking educationas compared to boys because many girls from the the world are illiterate and denied of thefact, that's how the contribution of nestle in a deferential and self in-facing manner which isimportant and crucial to our society and this is how nestly contributes to the world andeconomy.The major objective of the public-sector organisation is to provide necessary andbeneficial services and products to the customers of the organisation. The investment in orderto run the public-sector business organisation is provided by government. The public-sectororganisation works in order to help the customers those who do not have huge amount ofmoney, thus such sectors are not focused on earning profits. However, the objectives of theprivate sector organisation are very different from both the voluntary, as well as, privatesector business organisation. The major objective of the private sector organisation is to earnhuge profits for the growth and the development of the organisation. Similarly, the voluntarysector organisation works towards the fulfilment of their objectives. The objective of thevoluntary sector business organisation is to provide necessary services to the people those,who are trapped in certain critical situations or are facing certain crisis. 3
Nestle, being a public-sector organisation works towards providing beneficial goodsand services to the customers and not on earning profits for the organisation. Nestle drivetheir business functions for manufacturing the best quality of products in the market andserve the customers consistently. Tesco aims at serving its customers the best qualityproducts to give them a good experience that is sure enough to impact their market share andsales and promote their growth. Nestle being a well-known brand in the market has businessrelationship with Tesco and provides them with the manufactured goods that are sold in theretail market of Tesco (Nestle.com, 2016). Similarly, Nestle shares business relationship with the public sector First Milk to getsits raw materials for manufacturing dairy products. First Milk is the major British farmer-owned dairy company that aims at improving the quality of their milk with eco-friendlymeasures and benefit its farmers as well. Nestle also focuses on making a sustainable supplychain that will promote the advancement of both the sectors hiking their sales rate. Alongwith this, PhunkyFoods is associated with Nestle,like instant food, coffee and ready to makenoodles. Its a voluntary organisation. The objective of both these organisation is same that isto cater to the welfare of the children by providing best quality and healthy food products .Nestle is able to enhance its CSR, while PhunkyFoods continues to support the healthylifestyle of the children (Nestle.com, 2016).Nestle made partnership with private company FLA to identify the cause of childlabour. It focuses to mitigate the problems related to child labour. FLA and Nestle areworking together for spreading awareness to the society by various means so that the childcan get proper necessities. Thus, FLA tries to improve the social conditions by providingessential training programmes and resources. Their independent assessments, advocatingnature and transparency to share thoughts with other companies helped to develop the supplychain process for economic growth. Nestle has given commitment for helping communityand nation building by adopting programmes to help the below poverty accordingly the coffefarmers are helped by this thorough the different parts of country by providing knowledgeabout the methods of improving coffee farming many feeding programmes and medicalmissions are conducted by Nestle it conducts many programmes like solid waste managementprogrammes, environment protection and preservation act,community development , eductionand man power development, technical skills, soft ware programmes . line community 4
Nestle investigates whether the Child's are working in cocoa field. Nestle has decidedto work with FLA to improve the situation of rural sectors by implementing practices andfocuses on improving the security (Fairlabor.org, 2012). They are spreading the awarenessprogrammes that if the children work s in a cocoa farm, it can be major issues of healthproblems. They are taking necessary steps so that the children can be sent to schools and theywill provide money if the farmers are not able to spend their money for the study of theirchildren.Nestle participates in water takeover process and made partnership with a publiccompany, i.e, World Bank. This method focuses on the sustainable innovation. This jointventured is proved as an essential factor for collaboration in the financial environment. Itaims for the sustainable practices to improve the productivity. The new venture of Nestle andWorld Bank aims to privatise water globally (Worldbank.org 2017). Nestle tried to campaignthe water industry to gain profits by funding and credibility with World Bank. They had takenthis step as water privatization faced many problems like broken promises, range issues,wasted funds of public that became threats to human life. The water resource team decided toimprove the normative approaches of the water management. The strategy of these teams isto insert the water management with the public sectors through direct partnership. GlobalCorporation of water resources must allow promoting their private agendas that can behelpful for getting the human rights for the fulfilment and profitability in the water sectors.AC 1.2 Describing the extent to which Nestle meets the objectives of differentstakeholders that influence its operations in various ways and to a varying degreeStakeholders are very important for a business organisation. The growth, as well as,success of the business organisation is determined by the stakeholders those who areconnected with the business organisation. If the business organisation is able to satisfy theneeds and the demands of the stakeholders, and even include the suggestions of thestakeholders in the decision- making process of the organisation, then the organisation willcertainly grow. The major stakeholders of the private sector business organisations are the customersof the organisation because the profit that the business organisation gains via the customersare utilised in the investment of the organisation, for the expansion of the organisation.5
Whereas, for the public-sector organisation the stakeholders are the suppliers of the company,for the voluntary sector organisation the stakeholders are the donators those who want tosupport the people struck in crisis. The important stakeholders for Nestle are the customers, the suppliers etc. Thestakeholders of the organisation help the organisation to gain profit, though Nestle is publicsector organisation, it does not aim at earning profits, still the money that the businessorganisation gains from the stakeholders, in the form of donation, help towards the growth ofthe business organisation. Stakeholders are important for the business organisation, as the perspectives of thestakeholders will form an image of the business organisation in the business market, positiveimage of the company will help the company to gain potential stakeholders. Employees of abusiness organisation are also very important stakeholder of that business organisation. If theemployees of the organisation work productively, this will help the profitable growth of thebusiness organisation. Therefore, the business organisation must focus on fulfilling therelevant needs of the employees. Employees of an organisation act as a link between theorganisation and the other stakeholders. For fulfilling the demands of the employees, theorganisation must undertake various approaches, such as the transparent approach to analysethe demands, as well as, suggestions of the employees, which could be used for benefittingthe organisation. The functioning of an organisation is not practicable without the involvement of thestakeholders that are responsible for the success of the company in every possible way. Theconduction of business activities necessitates the presence of the stakeholders in the form ofemployees, who are responsible for carrying out the tasks leading to the company’s growth.The employees’ needs are simultaneously catered to by the organisation in giving them abetter place to work at. The customers are the potential stakeholders, who determine thedemand of the products in the market. In return they get the superior quality of productsmanufactured by Nestle. In addition to these major stakeholders, the organisations that it is associated with andthe communities that are prevalent in their operating areas are equally important. The variousretail organisations get the improved quality of products that they sell to their customersearning profits, while the CSR of Nestle benefits the cause of the public and voluntaryassociations and support them to program in a better way. Nestle ensures the production of its6
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