CORPORATE SOCIAL RESPONSIBILITY

Submitted by:

GROUP 4

Rase, Mary Angela R.

Santiago, Shaira

Talinjale, Kay Celeine M.

Tecson, Carla A.

Tibatib, Wilfredo Jr. B.

Tonio, Larrine A.

Torralba, Erica

Vallente, James Ernest L.

CBET-17-202A

Submitted to:

Prof. Maria Luz Ison

SOCIAL RESPONSIBILITY AND GOOD GOVERNANCE

Nestlé Philippines, Inc. manufactures and markets food products in the Philippines.

The company are recognized as a leader in nutrition, health and wellness. Propelling its

mission to nourish generations of Filipino families, it produces and markets products under

some of the country’s well known brands such as Nescafé, Nido, Milo, Nestea, Maggi, Bear

Brand, Nestlé, and Purina. Nestlé Philippines expand their product range and offer various

products like breakfast cereals, chilled dairy products, coffee and creamer creations,

confectioneries, dairy health and nutrition solutions, healthcare nutrition products, ice creams,

infant nutrition products, liquid beverages and dairy culinary products, and pet-care products

to their customers. It was formerly known as Filipino, Inc. and changed its name to Nestlé

Philippines, Inc. in 1986. The main branch of the company is located at Makati City,

Philippines. And in late 1998, it became a fully subsidiary of Nestlé S.A.

Over a hundred years after it first started operations in the country, Nestlé Philippines,

Inc. (NPI) today is a robust and stable organization, proud of its role in bringing the best food

and beverage throughout the stages of the Filipino consumers’ lives. The Company employs

3,700 men and women all over the country, and is among the Philippines’ top corporations.

Its products are No. 1 or strong No. 2 brands in their respective categories.

Corporate Social Responsibility

Nestlé Philippines is committed in helping the community and nation building

through conducting multiple programs that help the underprivileged members of the society.

According to 2017's Global CR RepTrak (Reputation Institute) 100 that study and analyse

companies globally base on its Corporate Social Responsibility. RepTrak aims to present 100

companies with best CSR reputation by measuring the Workplace, Governance and

Citizenship through asking questions. And with that Nestlé ranked as #81 over 100
companies with a score of 65.6 % that is considered as fall down from its past record which is

#18.

The company’s concept in the Corporate Social Responsibility is the CSV or Creating

Shared Value is integrated to the entire Nestlé business and responsibility of each and every

employee and not just in a single department. In 2006, Nestlé was the first company to adopt

this approach that focuses on 3 main areas: the nutrition, water and rural development.

Nestlé Concept of CSR: Creating Shared Value

According to the Nestlé Chief Executive Officer Paul Bulcke, Creating Shared Value

is built upon fundamental commitments to society, both to achieve the highest standards of

compliance with laws, codes of conduct and its own Nestle Corporate Business Principles as

well as to protect the environment for future generations. In line with its mission to nurture

generation of Filipino families, Nestlé Philippines stands firmly committed to the global

Nestlé business strategy of Creating Shared Value. This approach recognizes the importance

of interdependence between business and society, and promotes a symbiotic relationship that

allows Nestlé to grow its business while contributing to the advancement of the society where

it operates. Creating Shared Value means that Nestlé intertwines its business activities with

initiatives that promote the welfare of the society.

 Nutrition

Nestlé is the largest fortifier of food with vitamins and minerals. The company plays

an active role in the promotion of good and proper nutrition throughout the Philippines, and

improve the general health and wellness of all Filipinos. Nestlé Philippines develop and

implement programs that address real concerns and contribute meaningfully in meeting
nutrition-related challenges. The company establish a nutrition awareness and practices in the

country in four ways:

1. Improving Consumers Understanding of Nutrition

o Addressing Malnutrition through Nestlé Healthy Kids

o Laki sa Gatas

2. Creating Access to Nutritious Food

o Micronutrient Fortification: Making nutritious food that is accessible to every

Filipino

o Sodium, Sugar and Transfat Reduction

3. Encouraging Healthy Habits

4. Promoting an Active Lifestyle

 Water, Environment and Safety

The company creates an action to protect the environment in four priority areas:

water, agricultural raw materials, manufacturing and distribution, and packaging. The

company aligned these actions with global sustainability to ensure the continuing

availability and usability of natural resources for future generations.

1. Water Initiatives

o Making Every Drop Count

o Rain Water Catchment System

o Project WET

2. Solid Waste Management

o Going for Zero Waste and Full Recovery

o Coffee Waste as Fuel to Boiler

o Proper Disposal
 3. Packaging Initiatives

o Using a Simplified Life Cycle Approach in Packaging Development

4. Encouraging Environmental Programs in School

5. Greening the Supply Chain (GSC) Program

 Rural Development

It is one of the actions made by the company to support and improve the socio-

economic conditions of communities where it operates. The company explores every

possible way through which operations can create livelihood opportunities. The

company creates a livelihood programs to improve the lives of the residents. Some

programs and projects made by the Nestlé are the following:

1. Cut and Sew

2. Yard and Garden

3. Samahan ng mg Mangingisda

4. Business on Wheels

 Philantrophy Nestle Cares

The company extends the boundaries of its Corporate Social Responsibility by

pursuing programs that are purely philanthropic in nature.

1. Employee Volunteerism

o Lakbay Tagumpay o Tree Planting

o Teaching Sports o Blood Donation

o Brigada Eskwela o Calamity Reponse

2. Building for Communities

The company’s first prioritize is the safety of the employees that works under them.

To prevent the labor injuries and illness, Nestlé integrate health and safety measure to

protect their workers. Next, the company allows workers to get a better jobs and better

pay by lending out long-term investment.

Nestlé CSR Assessment

Nestlé Philippines’ concept of Corporate Social Responsibility has a great impact in

the society. It’s not just focused on the company’s success, thus it focuses on the benefits that

the society will gain. Also, deciding to make an approach called Creating Shared Value that

helps to expound the relationship of business to its society is impressive and despite of being

the first company to adopt this approach, Nestlé take a risk and brave enough to accept the

possible outcomes whether it might affect the operation of the business or not.

Meanwhile, some news states that Nestlé has done something against the human

rights and food safety. Even though the company has a lot of programs that will benefit the

society and its employees, they fail in some aspects of it. Firstly, the company used

Nespressure that squeeze the labor and suppress the right of the employee. Second, Nestlé

selling contaminated products that cause animal death. The customers lose their loyalty on

the company since the incident that causes a violent and painful death of the animals. They

state that if the food can cause animal died, how about the human. In this case, the confident

towards Nestlé product is fall and may cause a sale drop in the future.

Consumer Purchase Decisions

CSR’s is known as corrective strategies for the restoration of the community. Since

Nestlé Philippines, Inc. aims to broaden the awareness of their consumers in the practice and
creates a program on agriculture, education and manpower development, community

development, health and especially on nutrition, and the researchers think that the best way to

influence others, especially consumers is to share directly the knowledge and information

regarding their product. In that way, consumers would feel appreciated since they'd think that

they've been given time and effort to be informed. Since the company not only focuses on

those practices and find a way where the company could better align on those practices with

its overall strategy, the consumers will not hesitate to purchase a product made by Nestlé.

In the case of the animal died, the company may lose customers since the issue was

spread. The pet owners will hesitate to purchase again if the company didn’t check the

ingredient that cause animal died. Despite the fact they will lose some customers, there’s a

great possibility that it will come back once they solve the issues under the company’s name.

Recommendation

In line with the Nestlé approach, the researcher recommends to enlarge their concerns

not only in humans but also for the animals. The company must create a project that concerns

about the habitat of the animals and their health since most of our food are came from

animals, we must secure their way of living. To fulfill this, the researcher suggests to acquire

membership in the Philippine Animal Welfare Society (PAWS) and; Compassion and

Responsibility for Animals (CARA). This approach will help to gain back the loyalty of the

pet owners and solve the issue regarding animal died.

Second, the company need to end the Nespressure and apply the human right policy.

Nestle have to promise that every labourer will get a wage paid that they deserve. Since the

company focuses on the benefit of the society, they must satisfy the employee needs so that

the production process will not affect. Also, if the company did not end the Nespressure, it
will lead to employee absenteeism and turnover. In this case, the consumers will believe that

Nestlé really cares in the health and safety of each and every individual.

And lastly, Nestlé must conduct a feeding program in every school especially in the

provinces. This program will help to gain the loyalty of the consumers since they witnessed

that the company focused on the health of people especially the children. Feeding program is

not costly since the company is already producing a healthy food. It will also warm the hearts

of the consumers if they saw that the company takes a lead in providing food for the children.

Conclusion

Nestle is well- known in the international food manufacturing that promotes the

nutrition, concerns about the environments and its society. For several years nestle company

expands their advocacy through conducting trainings and project, which operates to generate

long term value both for its business and for society as a whole. Through its CSR programs

nestle as proactively addressed and resolved most of its reputational issues becoming one of

the world’s most admire companies.

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