CORPORATE RESPONSIBILITY 2008: SUSTAINING MOMENTUM AND RESPONSIBLE GROWTH

Transcription

1 CORPORATE RESPONSIBILITY 2008: SUSTAINING MOMENTUM AND RESPONSIBLE GROWTH 13 March 2008 Chatham House Paul Polman EVP Zone Americas, Nestlé S.A.

2 Disclaimer This presentation contains forward looking statements which reflect Management s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments.

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5 Nestlé Corporate Business Principles & UNGC

6 One Worldwide Environmental, Health and Safety Standard

7 Moga Punjab Factory

8 Creating Shared Value: Environment Water withdrawal per tonne of product down 28% Greenhouse gas emissions down 16% Despite 76% production increase

9 Shared Value: Hierarchy of Corporate Social Responsibility CREATE SHARED VALUE Reduce poverty, Improve health Empower people SUSTAINABILITY Protect the future COMPLIANCE Laws, Business Principles, codes of conduct

10 Development benefits Traditional CSR Philanthropy Contribution of financial or in-kind resources to development projects CSR Social investment UNDP Analysis New Generation of CSR Social investment that is strategic to the core business and that contributes to achievement of the MDGs New Generation CSR Policy dialogue / advocacy Dialogue which contributes to more effective governance institutions, rules, policies and processes Pro-poor business models/inclusive markets Enterprise solutions that accelerate and sustain access by the poor to needed goods and services and to livehoods opportunities Business Benefits Relevance to UNDP strategy priority areas: 5. CSR for inclusive markets and MDGs 5. CSR for inclusive markets & MDGs 1. Policy & institutional infrastructure 1. Policy & institutions 2. Value chains 3. Pro-poor goods & services 4. Entrepreneurship

11 UNDP MODEL CORPORATE IMPACT Philanthropy CSR Social Enterprise Definition Return or benefit Alignment with business operations and strategy Operations and activities often unrelated to core business operations where there is no expected return Social: Goodwill, benefit to community Economic: Tax benefit, not profit-generating Operating in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business Designed to generate social return (and possibly economic return) Social: Goodwill, benefit to community Economic: Not generally linked to profit, however could increase consumer base GSB Model Extending operations or provision of core goods/service offerings to economically disatvantaged segments of the population in such a way as to generate economic profit Social: Goodwill, benefit to community Economic: profit, growth of market to new consumer segment Little or none Possible alignment Strong alignement with company's core business Investment Small (<US$MM) Ranges in size Significant (US$MM+) Division ownership Foundation, CSR division CSR Division Business Development Unit Sustainability Limited, one-time outlay Limited, one-time outlay Going concern (operation should aim for commercial sustainability)

12 Technical Assistance to Farmers - India

13 4,000 Women Livestock Advisors: UNDP & Nestle Pakistan Free technical advice to 600,000 farmers globally 25 million USD in micro-credit UNDP funded Pakistan women s project

14 4,000 Brazilian Women Entrepreneurs Popularly Priced Nutritious Products Feira de Santana, Brazil - new "PPP" factory (CHF60 million) Direct jobs -125; indirect jobs 625; consumers served: 50 million Direct and door to door distributors "Nestlé Até Você": 4000 Many PPP products nutritionally fortified (vitamins, A, C, D; Iron)

15 Brazil Factory Inaugurate Feira de Santana President Luiz Inácio Lula da Silva February 9, 2007

16 Nestlé Nutrition Duchess Club: Nigeria and Ghana Nestlé Nutrition Duchess Club / 100'000 women Nestlé Nutrition school competition / 800'000 students Value for Society: fortified products, nutrition knowledge Value for Nestlé: relationships with consumers, consumer trust

17 Project WET: Water Education for Teachers Project WET: 400,000 teachers, millions of children in 22 countries Value for Society: future generations saving water Value for Nestlé: building relationship with potential future consumers

18 2007 CREATING SHARED VALUE REPORT

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