Nestle-Case.docx - Nestl SA Nescaf Plan in China Luke...

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Nestlé SA: Nescafé Plan in China Luke Sardella Jevon Bisschop Nayla Hamid Omar Hassouneh Yasmine Mansour Nicole Berra
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1. Nestle strayed away from traditional Corporate Social Responsibility (CSR) initiatives and adopted a created shared value (CSV) approach to business. Because Nestle’s original mission was to nurture products aimed exclusively at the customers, the company needed to redefine how it delivered its products so it could conform to the goals of CSV. Nestle defines CSV as a “company-specific” method that aims more at sustainability and less at the ethical and legal standards that government bodies have imposed. Nestle claims that this action of self-sustainability shall be viewed as a competitive advantage and creation of wealth rather than cost. By joining with the community, value is created under win-win circumstances that have led to societal and economic benefits. Rather than using CSR as a reactive measure, CSV is built into Nestle's business model proactively, realigning the entire company budget rather than being restricted to a CSR budget. Nestle adopted CSV "as a growth platform" making it integral to its strategy for every separate business it is in (that being food products, water, coffee). Value is distributed throughout its supply chain with a focus on three key areas: Nutrition, Water and Rural Development. Nutrition hits the end users as the focus revolves around delivery quality products. Water addresses the distribution and manufacturing processes, ensuring resources are used efficiently and properly. Rural Development focuses on the farmers, ensuring that they had the support, techniques and tools needed. By tending to its partners across its value chain, Nestle has created a process of “collaborative clusters” that runs off of efficiency and support, resulting in higher yields, higher quality, higher profits and a positive reputation.
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2. CSV is a powerful creator of opportunity by allowing strategy to come to life by finding new problems along the supply chain to solve. CSV promotes sustainable practices that
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