Corporate Social Responsibility and Sustainability at Nestlé Sri Lanka

Corporate Social Responsibility and Sustainability 1
CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY
By (Student Name)

Corporate Social Responsibility and Sustainability 2
Executive Summary
This report examines the approaches employed by Nestlé in its CSR and Sustainability
responsibilities in Sri Lanka. The report delves into the creating shared value model advanced by
Nestlé and how it benefits the local community and the company. It investigates the various
sustainability strategies used by Nestlé and the impacts of those strategies on the environment.
Finally, the report gives recommendations that the company can use to reach higher margins in
CSR and sustainability.

Corporate Social Responsibility and Sustainability 3
Table of Contents
Executive Summary.........................................................................................................................2
Organizational Approach to Corporate Social Responsibility and Sustainability...........................4
1.0 Introduction................................................................................................................................4
1.1 Nestlé Approach to Corporate Social Responsibility in Sri Lanka.......................................5
1.2 The community......................................................................................................................6
1.3 Education and training...........................................................................................................7
1.4 Sanitation and Healthcare......................................................................................................7
1.5 Employees and Labor Practices.............................................................................................8
1.6 Stakeholder involvement.......................................................................................................8
1.7 Company Reporting...............................................................................................................8
2.0 Environmental Sustainability.....................................................................................................9
2.1 Reduction of greenhouse gas emission................................................................................10
2.2 Afforestation program.........................................................................................................10
2.3 Water conservation..............................................................................................................10
2.4 Raw materials......................................................................................................................11
2.5 Packaging and distribution..................................................................................................11
Recommendation...........................................................................................................................12
Conclusion.....................................................................................................................................13

Corporate Social Responsibility and Sustainability 4
Organizational Approach to Corporate Social Responsibility and Sustainability
1.0 Introduction
Corporate social responsibility has become an essential duty of businesses today in
meeting their duty of care to the stakeholders where they operate. Many businesses realize that
they do not operate in a vacuum and require to involve local communities, local governments,
civil society organizations, suppliers and non-governmental organizations in their operations
(Leventhal 2018).
There has been heated debate simmering on the role of businesses in corporate social
responsibility and sustainability strategies. Opponents infer that businesses exist for one reason,
to maximize shareholder wealth and that all activities negating from that aspect are mere window
dressing affairs (Paun 2018; Sethi 2012). Visser (2010), for instance, posits that though many
companies claim involvement in CSR and sustainability, social problems have grown not
reduced and that climatic vagaries have gone a notch higher. He proposes CSR 2 or in short
corporate sustainability and responsibility where companies align their business strategies to
community problems hence benefitting both parties.
Other experts such as Porter and Kramer (2011) share the same thoughts. They propose a
model called Creating Shared Value, which has been executed very successfully at Nestlé. The
model aligns business interests to those of local communities thereby ensuring not only
sustainable livelihoods for local communities but also successful business performance.