Creating Shared Value: Nestle UK's Commitment to Social Impact and Sustainability

Running head: SHARED VALUE CREATION
Shared Value Creation
Name of the Student
Name of the University
Author Notes:

1SHARED VALUE CREATION
DATE:
MEMO TO:
FROM:
PLACE:
SUBJECT:
Company Shared Value
Companies around the world have come a long way from the age old concept of
Corporate Social Responsibility (CSR). A company is said to paying attention to CSR when they
interlink their operations with the betterment and wellbeing of the society. However CSR has
been identified as a concept that pays attention to the sustainability in the short run only. The
idea of Company Shared Value (CSV) is a much broader concept. It is concept in which
companies incorporate societal and ecological concerns in their business activities (Crane et al.
2014). A company can carry out the same by integrating the following activities in its operations;
reconceiving the markets and the products, redefining the production in the chain and by
consolidating mass development. The purpose of the memo is to enumerate the shared value that
is being created by Nestle UK in their operations. This paper will identify the grounds on which
the company are providing value for each of their stakeholders and the obstacles that the
company might encounter in doing the same.
The concept of shared value has been adopted by Nestle from the initial days of
formation of the company. They have set an example to organizations around the world by acting

2SHARED VALUE CREATION
as innovators of the shared value concept. They are constantly showing strides in shared value
creation by working towards mitigating social issues, by operationalizing shared value and by
ensuring their full commitment towards the creation of shared value.
Attention to social issues
Nutrition: Nestle provide products that offer health benefits to the customers. Furthermore the
products that are being provided by nestle are supplied in cheap rates. The company has found
competitive advantage through constant innovation and partnerships.
Conservation of water: Nestle have been advocates for conservation of scare water resources.
They use water efficiently enough so that other members of the supply chain are benefited by the
same. In the year of 2017 Nestle planned to conserve water in their supply chains of milk and by
the year 2020 they aim to reduce the water consumption by 50% with 2010 as a starting point
(Nestle.co.uk. 2019).
Environmental sustainable development: Nestle have identified the need for change that is
required in their plant as a result of the adverse climatic changes. Excluding the hazardous
wastes, no other waste from factories of the company are transferred to incinerators and landfills.
In addition, they have also implemented activities toward low carbon emission and the use of
renewable sources of energy. Most of the packaging materials associated to the products
produced by Nestle are recyclable. By the year 2020, the company aims to reduce emissions of
gas by 40% (Nestle.co.uk. 2019).
Initiative of Rural Development: The Company values the supply chain and the farms from
where they receive their raw materials. Nestle provides support to the development or farmers by