1. Creating Shared Value in the supply chain

2. Introduction to Nestlé
Produces some of Britain’s most popular brands
E.g. KIT KAT®, NESCAFÉ®, SMARTIES®, GO CAT®, SHREDDIES®
Over one billion KIT KATs produced in the UK every year
The world’s leading nutrition, health and wellness company
Employs c330,000 people across 83 countries
More than 7,000 people work across 19 UK sites
£300 million worth of products exported every year to over 50 countries

3. Nestlé's culture
Corporate business principles are basis of organisation’s culture
Guide behaviours and ways of operating
Protect stakeholder interests
Consumers
Human rights and labour practices
Employees
Suppliers and customers
The environment
Nestlé's principles embedded in its approach to Corporate Social Responsibility

4. Corporate Social Responsibility (CSR)
CSR involves considering business impacts on all stakeholders
Nestlé's raw materials grown in wide range of countries
Important to take a broad view of its responsibilities
Nestlé's initiatives aim to create value for all
Creating Shared Value

5. Creating Shared Value (CSV)
An integral way of doing business for Nestlé
Based on codes of conduct and business principles
But goes beyond legal compliance
Focuses on sustainability
Aims to create value in 3 key areas
Water, Rural development, Nutrition

6. Creating shared value in the supply chain
Each stage of supply chain adds value to next
2/3 of Nestlé global expenditure on raw materials
40% of this goes on 3 ingredients – milk, coffee, cocoa
Issues in supply chain affect quality and quantity of raw materials (e.g. cocoa beans)

7. Issues facing Nestlé Nestlé operates within complex supply chain
Thousands of farmers in many different countries
Farmers may use old methods
Supplier countries often have poor infrastructure
Growing shortage of labour and skills as younger people leave cocoa farming
Threatens supply of materials

8. The Cocoa Plan Launched in 2009 in Cote d’Ivoire Aims to:
Investment of £67m over 10 years
Aims to:
Help cocoa farmers be more profitable through training and Fairtrade premium pricing
Provide education for their children
Improve respect for the environment
Enhance quality of life
Ensures high quality, sustainable supply of cocoa for Nestlé

9. Benefits of the Cocoa Plan
Investing in plant research
Higher quality seedlings produce typically 50%–200% more cocoa
Enables cocoa farmers to grow more and sustain a higher income
Investing in training farmers
To understand better crop and pest management techniques
To improve awareness of child labour issues
Improving social conditions
Partnership with the World Cocoa Foundation builds and repairs schools within cocoa farming regions
School becomes viable option for parents/children and reduces risk of child labour
Fairtrade
Crops are certificated under the Fairtrade label
Nestlé pays premium price for beans
Improves growers’ levels of income, helps future growth of communities

10. Communicating with stakeholders
Cocoa plan is evolving, growing programme
Effective communication helps to:
Identify emerging issues
Shape responses
Drive improvements
Nestlé communicates through
Annual and CSV reports
Supplier Code
Corporate and Cocoa Plan websites
Partnerships e.g. Fair Labor Association, Red Cross, governments