Analysis of Strategic Corporate Social Responsibility at Nestle

This report provides a comprehensive analysis of Nestle's corporate social responsibility (CSR) practices. It begins with an introduction to CSR and its significance, followed by an examination of Nestle's internal and external objectives. The report delves into the impact of CSR on various stakeholders, including employees, customers, investors, and the government. It explores Nestle's CSR strategies, focusing on key areas like nutrition, rural development, water conservation, and environmental sustainability. The report also recommends specific CSR strategies to support both internal and external objectives. Furthermore, it analyzes Nestle's value chain and how CSR integrates into each step, highlighting the benefits of CSR, such as satisfied employees, customers, and positive public relations. The report concludes by emphasizing the importance of aligning business objectives with social responsibility for long-term sustainability and success.

Strategic corporate social
responsibility

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1...........................................................................................................................................3
1.2...........................................................................................................................................4
1.3...........................................................................................................................................5
1.4...........................................................................................................................................6
TASK 2............................................................................................................................................7
2.1...........................................................................................................................................7
2.2...........................................................................................................................................8
2.3...........................................................................................................................................9
TASK 3..........................................................................................................................................11
3.1.........................................................................................................................................11
3.2 ........................................................................................................................................11
3.3.........................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Corporate Social Responsibility is a 0mechanism which controls and assures the
compliance with the spirit of law and ethical standards. It is the responsibility of the company
towards the society which not only benefits society but also assist corporate occupying
competitive edge in the market. For the better understanding this responsibility, this report has
taken Nestle which is renowned for nutrition, health and well being of human being. This report
depicts about the impact of corporate social responsibility on the internal and external
environment of company. It evaluates the company’s value chain and determines method for
agreement and engagement with all stakeholders. It examines the internal and external reporting
measurements which analyse the effect of corporate social responsibility strategy.
TASK 1
1.1
The corporate social responsibility complies with internal and external objectives of
corporate. The internal objective of the Nestle is to create healthy and safety working
environment for employees and give preference to the satisfaction of workforce as it believes on
the simple fundamental that if the employees are satisfied they will keep the consumers satisfied.
Nestle have created occupational health and safety Committees which plans, implements and
control policies to create environment which ensure workforce are physically and mentally fit.
They also organise regular health checkups and take the initiative to counter lifestyle-related
diseases. Nestle have arranged quit smoking campaign and also take care to prevent occupational
accidents (Servaes and Tamayo, 2013). Through these measures taken by company, the workers
consider themselves that they are valuable resources for the organization so they can enhance
their productivity and contribute in the growth and development of the corporate.
Nestlé’s objective is to become leader in Nutrition, health and wellness and earn
profitability (Aguinis and Glavas, 2012). To streamline the outside objective with CSR, A
company can undertake following steps by giving finance assistance to charities, cultural or
welfare initiatives. They have combined social responsibility and economic growth to survive
longer in the market. The objective of nestle is to meet the nutrition needs of all ages and provide
quality services to customers and increase the profitability of the company. Nowadays,
Consumers consider the initiatives of company in determining the image of company and affects

their purchasing decision that whether they want to connect with the company or not. They meet
standards of quality in supplying healthy and nutritional products to customers.
When the Nestle company make objectives and purposes then it needs very specific and
understandable for each and every member of the firm. In the current scenario the company has
objective for example to provide healthy and safe environment to the employees. On the basis of
SMART objectives explained as below: Specific: The objective is very specific because it helps to the Nestle in order to attract
the customers and sustain them towards the entity. Measurable: On the basis of respective aspect the objective such as provide safely and
healthy environment is measurable appropriately. If the customer become more efficient
and sustain towards the business entity of Nestle then able to know that firm performing
well (Servaes and Tamayo, 2013). Achievable: As per the respective kind of element the Nestle can achieve it by providing
several kinds of safety equipments. Reliable: The objective of providing healthy and safely workplace is highly reliable as
well as appropriate which helps to achieve internal and external both the purposes.
 Timely: The current type of objective and purpose is appropriate and achievable
according to the time.
1.2
As per traditional approach, companies were only focused on generating profits of the
company. But nowadays, they have to give same priority to CSR as given to the profit to survive
longer in the industry (Fernandez-Feijoo, Romero and Ruiz, 2014). Nobody wants to connect
with the company who is irresponsible towards the society. The Nestle firm has undertaken
various CSR activities which affect the stakeholder of the company. The impact of CSR on
internal and external stakeholder is given below: Employees: CSR is also determined by the ethical behaviour of the company, they
consider human resource as the most valuable resource. So organization has some sort of
responsibilities towards their employees. Nestle entity need to provide working
environment which gives equal opportunities to all the employees and takes care of their
health and safety. If the company is sensitive towards the growth of the employees, they
also feel motivated to work harder and enhance their productivity.

 Customer: They does not want to do business with the company which has reputation for
being socially irresponsible (Pedersen, 2015). Business which takes initiatives for the
growth and development of the community and protect the environment can attract
customers who share these values. The CSR activities conducted by the Nestle are adding
on to their value and image and can result in higher customer satisfaction. These
customers then build long term connection with Nestle firm which makes them satisfied
and thus contributes in attainment of goals and objective of the company. Investors: Investors makes the investment decision on evaluating past performance and
track record of social responsibilities (Preuss, 2013). Government have formulated laws
to contribute in CSR activities if they have earned specific fixed profit and if the Nestle
takes CSR activities, that attracts the investor as it might comes to the mindset that the
company is earning profit therefore contributing in the development of society so it will
give good return to the shareholder. It is mandatory for specified firm Nestle to mention
about their working towards society, environment and governance in the Annual returns
of the organisation.
 Government: The legislature maker has inserted sections in the Companies act to monitor
the responsibilities of organization towards the society and environment. If Nestle
company fails to fulfil their responsibilities, then it attracts fines and penalties. It might
create negative image and affect reputation of the Nestle.
1.3
The management of Nestle have designed strategies by considering its corporate social
responsibility. The sustainability goal of the company is reflected in operations of the
organisation and is committed to make productive contribution in communities in which they
operate. They believe that healthy society life plays integral role in long term stability of our
society and economy. Nestle have given priority in the following areas: water, waste, energy
(Climate change), sourcing, packaging and nutrition, health and wellness.
They have undertaken steps in following sectors which align with the corporate strategies: Nutrition: The mentioned company are working on actual dietary intake, lifestyle and
health status of children in Mexico, China and Australia (Navi, 2012). The business
organisation wants to build leadership in knowledge of children's nutrition which will
assist in product designing and interaction with consumers. The company are willing to

provide nutritionally sound products for children by reducing risk of malnutrition through
fortifying micronutrients and reducing salt in the food products. Nestle consider the
health and well being of society while formulating strategies for the company. Rural developments: Firm depend on the farmers for the raw material and inputs, so it is
the social responsibility of Nestle to take care of well being of the farmers and their
families. Business organisation have implemented proper sourcing in the supply chain
and have roll out the Nestle Cocoa plan with the farmers. Water: Company has increased awareness on conserving water and proper discharge of
water after making it less filthy. Environmental stability: They concentrate on transparency and long term engagement in
climate policy. While formulating strategies for the product designing, they also analyzed
the affect of their product on the environment.
 Our People, Human rights and compliance: The mentioned firm have developed the
system which ensures employees and stakeholder can inform management about the
possible compliance violations. Nestle try to enhance the gender diversity in the
workplace.
1.4
Nestle is working very well in fulfilling its corporate social responsibility, but still it is
lacking in one or the more key areas. So certain CSR strategies can be recommended to support
internal and external objectives: Campaign: Nestle can arrange campaign to create health awareness through media. They
can educate people about the importance of healthy food intake and problems faced by
people in consuming excess junk foods. It can also promote some nutritional products of
Nestle. This step will help in fulfilling the economic and social objectives of the
company. With help of provide and arrange the several campaigns then the Nestle firm is
highly able to do CSR activities. For example: when the management of Nestle arrange a
campaign in order to provide awareness about the health, diseases and nutritions. By this
it provides information and aware local community and reduce burden of the
government. Assistance to health care service provider: They can provide financial and medical
assistance to the health care and put posters on the walls regarding tips and solution about

various problems (Ingram and et.al, 2013). Further, the authorities can provide Nestle
nutritional diet chart to patients of health care service provider that will create
competitive advantages in industry and benefits the society. This will assist the company
to occupy leading position in the market and attain internal objective. Another kind of the
CSR activities are related to the assignment of service provider related to health care.
Through this the Nestle firm is capable and achieve objectives of enhance awareness
between the people of country. Sponsorship to the employees for further studies: Nestle can contribute in the education
of employees by giving sponsorship for further studies, this will not only add value to the
skills and abilities of employees, but will also enhance their performance that will
ultimately work for growth and development of Nestle (Aguinis and Glavas, 2012.). This
will motivate and encourage workforce to work on its performance and improve it and
even make them satisfied. This will help the organization to achieve internal objectives of
Nestle.
 Providing financial support to educational institutions: It is one of the best strategies of
the corporate social responsibilities because in the current era every human wants to
become educated up to the high level. Through this the Nestle firm provide sum of
money to the those institutions which provide education to the students. In this condition,
the students and people who are not able to purchase books, pay fees etc. to whom Nestle
give such supports which is highly quantified for it.
TASK 2
2.1
A value chain is the series of activities which contribute in building and creating value of
the company at every step. Thus, Corporate Social Responsibility takes part in the value chain of
the Company (Samantha, 2015). Nestlé’s value chain is to provide quality products and services
to the customers by aligning with corporate social responsibilities in the following ways: Satisfied employees: Workforce feels proud for the organisation which helps in the
development of society. It creates positive attitude and respect towards the company so
they are less likely to leave the organisation and search for the job elsewhere. It has a
positive impact on workforce motivational level, thus the role of HR in managing CSR is
significant.

 Satisfied customers: It has been identified from the recent research that a strong track
record of CSR activities attracts customers towards the product and services of the
company. Positive PR: The firm can get positive feedback from society and community through
online and traditional media. They get free publicity and benefit by the appreciation got
from the public.
 Supports public value outcomes. It analyzes the real value that a company have earned
after considering the social and environmental expenses. They can get public value
outcomes by concentrating on difference made by their CSR activities.
At the workplace of Nestle business entity when there are CSR activities are used and
implemented then costs and expenses are occurs. When talking about the cost as well as expense
aspect then the Nestle firm sometimes enhance costing or reduce level of expenditures. There are
some CSR activities are those which not gives any kind of return in terms of the monetary and
some gives such kind of return to the firm. For instance, with the help of different corporate
social responsibilities strategies the company able to enhance satisfaction level of employees and
customers both up to better level. In context to this, higher the level of satisfaction of employees
and customers the Nestle company can become more productive and generate higher sales
respectively (Navi, 2012). By this the costs and expenses which are made at the time of
implementing CSR activities that will be recover and give highly favourable return to it. Hence,
it can be said that Nestle and other every company must use different CSR activities.
2.2
There are different methods for agreement and engagement with all stakeholders for the
CSR activities: Meeting with employees: They can call for meetings with employees and discuss their
CSR plan with them and allocate their roles and responsibilities in implementing the CSR
plan. They will explain about the impact of Corporate Social Responsibility on the
Company and give reason behind adopting that activity. Formal Notices to government: They can issue formal notices to the government to take
their help and assistance by partnership or tie up with them in contributing in any CSR
activities (Sierra, Zorio and García‐Benau, 2013). Further, the government can explain
about the benefits and difference which it will make to the society in adopting this

activity and will create positive image on the company. They can also take permission
from the government in investing in some crucial sectors of society.
 General Meeting with shareholder: They can arrange general meeting with the investors
and shareholders and discuss with them about the CSR strategies. They will make them
understand that this plan will yield them with future profits and value. It will help the
company to generate future profits and productivity that will ultimately give benefits to
Nestle (Servaes and Tamayo, 2013). They will convince the investors to invest their
money in this CSR plan in the meeting and can enter into agreements and try to engage
shareholders in fulfilling social responsibilities.
2.3
In order to implement the above strategies, the management of nestle is required to
undertake following actions: Assistance to health care service provider: The management needs to organize the
meeting to decide health care service provider and identify the ways through which they
can help them out. Then the manager will communicate their CSR plan with the
shareholders and employees. If they approve, they will further interact with that particular
health care service provider. If they found it satisfactory, they will provide financial and
medical assistance to them (Korschun, Bhattacharya and Swain, 2014). They will make
the team and allocate different roles and responsibilities to the team members and also
engage different stakeholders in this process. Campaign: They need to organize campaign by publishing it on any newspaper and
television.
 Sponsorship to the employees for further studies: Nestle needs to set benchmark of
performance, abilities or skills of employees and on attainment of that benchmark, the
employee will be rewarded by provided scholarship. The CSR committee will
consistently monitor the performance of workforce to determine the employee who has
achieved the benchmark.
When the Nestle company going to adopt and implement the CSR activities as well as
strategies then there are plan is to be prepared and according to that activities ate to be
implemented. In the current case while implementing the CSR activities there are plan along
with activities is to be analysed as below:

 Prepare and develop the integrated corporate social responsibilities structure in terms of
proper structure. At this stage accountable person is the manager and administer of the
firm.
 Further, at the second stage the company implement the business plan in context to the
CSR activities.
 At the third step targets are to settled and framed which are highly measurable by the
company. Along with this at here the company identify those measurements which will
helps to analyse performance and outcomes of the CSR activities (Corporate Social
Responsibility: An Implementation Guide for Business, 2016).
 In the fourth step of CSR implementation plan the firm aware employees and engage in
this process and then take actions. In addition to this, at the respective stage the
management apply CSR commitments within the working environment.
 After this, when the company going to implement then provide training and development
programs to the accountable and responsible persons and employees.
 In the further step of CSR implementation plan the Nestle establish mechanisms in order
to address and analyse those behaviours which create problem and obstacles in the plan
of respective.
 Furthermore, at this stage the Nestle company create and make the plans for
communicating at the internal as well as external level (Moon, 2014).
 At the last stage, the Nestle make commitments with the public and then implement as
well as execute the CSR activities and strategies which is going to adopt by the firm.
TASK 3
3.1
There are various types of internal reporting measurement that will evaluate the impact of
the CSR activities. The company uses various tools such as balance scorecard which is used for
measuring performance of the organization (Fernandez-Feijoo, Romero and Ruiz, 2014). In
traditional age, it was designed as a framework which provides guidelines and information
regarding the goals and objectives as well as considers financial data. In order to determine the
current actual situation, they have designed the BSC under 4 perspectives as Financial,
Customer, Internal processes and learning and growth. They set the benchmark for these key
areas and provide information about important activities inside of the company and find out the

ways that aids the entity in reaching out their goals and objectives. In this, they collect the
information regarding customer's perception and identify methods to enhance the skills and
capabilities of the workforce (Mohr Webb and Harris, 2001). This helps the company to evaluate
its own performance and analyze the positive impact of CSR contribution to their profitability
and operations.
Apart from this, the company can use 360 degree performance appraisal, level of
customer's attraction, customer relationship management and survey etc. Through these all the
measurements the chosen firm such as Nestle firm can evaluate that whether the CSR activities
provide positive result to it or not. Among these mentioned strategies customer relationship
management is also appropriate and suitable for it because of it emphasises on the various
aspects of customers. When the Nestle company uses and adopts more number of CST activities
then it directly impacts on the local community of the country as well as consumers.
From the several numbers of criterias for measuring influences of the CSR activities the
company must adopt and implement the Balanced scorecard method because it clearly indicates
that which aspect is the mostly affected (Korschun, Bhattacharya and Swain, 2014). On the basis
of it business performance in several aspects is to be identified and then further actions for CSR
activities are to be taken.
3.2
External measures also help the firm to determine the impact of CSR activities on the
Company (Korschun, Bhattacharya and Swain, 2014). The reduced complaints of customers in
response to CSR activities adopted by Nestle evaluate the feedback of customers and stakeholder
and they express their satisfaction level in those feedbacks. The company takes certain initiatives
for growth and development of the society, so quality bottled water and other product can be
provided to satisfy the nutritional needs of the organization. Government appreciates the
Companies initiatives towards society by providing awards and certificates which will add value
to the firm and help the organization to determine their contribution towards society (Schneider
and Schmidpeter, 2012). The regulatory bodies have devised the graph that will measure the
change made by the corporate in growth and development of society and raise their standard of
living. The Nestle can collect data from such regulatory bodies and can set the benchmark and
evaluate the impact of CSR on the economic area of that particular company. They can also

improve their policies and plan as to attain that benchmark and consistently monitor the
performance, if found any deviation then can take corrective measures.
For analysing and reporting different measurements are available which are shown and
expressed in the above tasks which are such as 360 performance appraisal, customer relationship
management, balanced scorecard etc. For analysing about the external reporting there is
customer relationship management method and measurement is one of the best because it
directly focuses on the only external aspects. Through this the company such as Nestle interact
with the customers and users of the products and services of it in direct way (Ingram and et.al,
2013). When it directly interacts and meet with consumers then can know that which kind of
impact is there on the firm. If the customers give response that their buying behaviour enhances
towards the Nestle then it analyse that CSR strategies have positive impact on them. In case, if
the company take responses that through current CSR activities the management not able to
enhance purchasing power and attraction of them towards company then tale corrective actions
and frame more effective CSR strategies.
3.3
In today's world, the CSR have occupied integral part in corporate world and new
dimensions of CSR strategies are emerging (Preuss, 2013). It depicts that, if the firm wants to
survive in this competitive environment, they need to keep themselves updated with the change
in environment and issues faced by the society and community. For this purpose, management of
Nestle conducts the research program and discusses about the latest trends in the community.
Company needs to design its corporate strategies in streamlining with social responsibility of the
organization (Clapp and Rowlands, 2014). To review firm’s performance and evaluate the CSR
strategy, business has set following framework as given below: Market Performance: It depicts about the performance of companies with regards to
sales growth and the next market where the Nestle will launch its products. Products and Service: It states about the performance of the firm by assessing the
satisfaction level of customers with the product and services supplied, whether they stand
out as per the needs and expectations of the consumers (Pedersen, 2015). Operational matters: The technology used by Nestle in production and managing the
workings of the company and identifies the internal issues that hamper the performance
of the company.

 Financial Matters: It states about the financial strategy of the company and determine
the sources and deployment of funds for the firm.
 Organisation and people: It shows that the HR policy as well as the structure and culture
of Nestle.
Company can review CSR activities by evaluating these areas and refreshing and making
modifications if needed.
Another method to refresh and reinforce the Corporate Social Responsibility strategy is
Plan-do-review-revise approach (Navi, 2012). The first task of the plan is to determine the
priorities of plans for improvement and DO in the phrase depicts implementation of the chosen
plan and identify the ways to improve employee’s performance. Review stage illustrates the
impact of those implemented CSR activities and strategies and if found any deviation, take
corrective action in the Revise stage.
In order to evaluate impact of the CSR activities on the firm there are different kinds of
measurements are used by the Nestle business entity. By evaluating that whether the CSR
strategies and activities are positive and adverse for it then able to reinforce the activities
strategies. With the help of BSC, 360 performance appraisal method, customer relationship
management etc. the management of Nestle entity can know that the specific CSR activity giving
positive response or not. At the current task on the basis of evaluation those CSR activities which
are framed are to be reinforced at the workplace and then again implemented in the company
(Clapp and Rowlands, 2014). For example: when the company provide fund to the governance
for making the environment very better and clean then can evaluate using the customer
relationship management. Here by directly interacting with the consumers the Nestle firm assess
that customers are in which direction giving responses. If the firm finds that customers and local
community is not profitable then Nestle will reinforce the CSR activities and strategies.
CONCLUSION
It can be concluded that it is important for the company to adopt CSR activities not only
to fulfil its social responsibilities, but also help in economic growth and development of the
organization. The Nestle have taken care of its responsibility towards internal and external
stakeholders. Management needs to devise corporate strategy in the way that streamlines
corporate social responsibility plan. The CSR activities adopted by the organisation add value to

the reputation and development of the company. The Company uses internal and external
reporting measurement to evaluate impact of the corporate social responsibility strategy.

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