Nestle Corporate Social Responsibility

Introduction

Nestle is a big international company for producing milk products, cocoa, coffee, pet care products and other different food products that are estimated with more than 2000 worldwide brands. The company has a great history that goes back to 1866 when its first product was condensed milk as the company was established in Switzerland and throughout time, the company was able to set a good position for itself among food manufacturers in the world to have an international brand called Nestle group. The group had a main mission which is keeping the wellbeing and health of the consumers and attaining the trust of stakeholders through producing high quality products that are trusted and respected by all stakeholders. The company's vision is built on respect for others and providing the society with values products and services. The company keeps high appreciation and care for its stakeholders which is clear in its ethics and corporate social responsibility practices. (Nestle, 2015) The current paper is aiming at discussing how Nestle kept and attained the respect and trust of its stakeholders including employees, customers, suppliers and society through analyzing the company's strategy, ethics and its responsibility towards stakeholder following the corporate social responsibility that is clear in the rewards the company got in the field of Freeman's principles of corporate social responsibility (CSR). The research paper is explaining how Nestle practice business ethics with its stakeholders and it provides a critical evaluation for the company's practices in implementing the principles of Freeman regarding corporate social responsibility to the stakeholders of the company. 

Nestle is a company that has a specific definition for sustainable development as it depends on having a value for making the world a place that enjoys high quality food and at the same time, the company contributes to long term social development that involves maintaining an environment which is kept clean and healthy for the future generations. The company gives due care to its stakeholders such as consumers, employees, customers, shareholders and for the society as a whole; this can be regarded in the company's practices for promoting CSR based on the principles of CSR related to Freeman. According to Freeman, Velamuri and  Moriarty, (2006), any company that seeks sustainable competitive advantage should put its stakeholders on top of its priorities and this includes giving corporate social responsibility enough care by the practices of the company. According to O'Riordan, Zmuda and Heinemann, (2015), Nestle has many practices that promotes Freeman's CSR principles such as developing its suppliers by its strategy not to reduce raw materials costs and purchase more expensive raw materials of cocoa, milk, coffee and others as the company is only investing 67 million £ in cocoa farms in the period between 2010 and 2020 as it sets measurements for quality of the cocoa such as making the farmers plant in a healthy way for consumers and the environment, the company also gives care for the farmers themselves by educating their children and provide farmers with farming programs that depend on crop management strategies that are more responsible regarding controlling pests and planting more organically. This was affirmed by Pauly, (2013) who also added that Nestle is intelligent because this policy of better farming lead it to increase the number of suppliers who became more attracted to working with it; he also referred that Nestle has a special view for the CSR practices as it has a shared value creation principle related to what Freeman focused on as the shared value is shared between the company and all stakeholders. According to Freeman and Moutchink, (2013), stakeholders' development is a basis of CSR of any successful company. Nielson et al, (2014) referred to a practice that Nestle is doing and it is among its CSR practice based on Freeman's; it is its fight against malnutrition in many countries especially for children as for example, the company is adapting a project among its community partnership projects in Colombia as Nestle provided them with its crackers which are fortified with minerals and vitamins for children at schools to be consumed at breakfast, Nestle also provided clean water for the victims of Tsunami in Siri Lanka as according to Pauly, (2013) as he also focused on how Nestle focus on the society rather than on economic benefit. The past views show how Nestle exerted great efforts towards implementing CSR practices but according to Ihlen, Bartlett and May, (2011), Nestles needs to monitor how it is marketing for its products provided for the poor and certain society categories as they referred to the control practiced by the NGO over the way Nestle markets its products for certain categories as the organization warned Nestle from marketing products for the poor in  a way that contradicts its focus on social welfare as the poor shouldn't be harmed psychologically as Nestle marketed infant formula for poor mothers badly in developing countries but he also affirmed that Nestle changed its marketing strategy to be more respecting for the poor which confirms its following to Freeman's principles of CSR. Kiran and Sharma,(2011) referred to how Nestle focused on providing better life for workers in the factories producing milk in India as the company built more advanced factories and provided the workers with a better work environment in addition to improving their life by paying them more than the prices set by the government for milk production and the company also focused on keeping the environment sources by using less water, emitting less gases and it used less energy. 

Nestle has gained many rewards for its outstanding implementations for Freeman's CSR principles such as "Your Reward" which is a reward given by the UK as it is a type of recognition programs that is given to companies that apply the CSR principles, it is based upon appreciating those employees in the organization for their behaviors and attitudes that cope with the principles of CSR. (Corporaterewards, 2015). Another reward was given to Nestle as for its CSR is BJAN reward that is provided for the company for its participation in areas such as health, public welfare, education, women, sport, community relation, the poor, the talents and being friendly to the environment The company was honored with the reward in the gala night included Access Bank Plc, First Bank Limited, Nestle Nigeria Plc, Promasidor Nigeria Limited, Nigerian Breweries Plc, Guinness Nigeria Plc, MTN Nigeria and Laferge Africa. This was as a result of the works of the company which are related to CSR in the area in a way that can encourage other companies to follow Nestle in the way it goes through in sustainable CSR; these rewards are effective in encouraging the company itself to do more works related to CSR as they focus on positive works presented for the society and all stakeholders by the company which makes it exert more efforts to keep its level of excellence. (ngrguardian, 2015). Another reward is given to Nestle for its strategy in implementing the CSR principles of Freeman is that of Ghana as the country provides certificates for the company for its great participation in the Ghana society regarding the principles of Freeman such as health, public wellbeing and education of the poor. (ghananewsagency, 2014) These rewards are giving the company its real position among other companies of the world which tells that the company that gives much interest for practices of CSR deserves appreciation and respect by the society. This can push other companies towards participating in CSR activities and implementing them effectively to reach better competitiveness regarding the social responsibility appreciated by all people.

According to Bowie, (1999), business ethics can be regarded through a Kantian approach as Kant refers to actions in the business context and how they should be moral, he thinks that there is a maxim for every action done by the employees, he assumes that actions shouldn't be justified by lies or promises that are not based on real facts. An example is that when the manager wants his employees to do specific tasks, it is not ethical to promise them with a reward when the company isn't able to afford the reward. Gulcan, (2015) discussed how business ethics are related to applied ethics theories as he referred to the Teleological Theories- Utilitarianism which is focusing on the actions' results as those results that affect others are what determine actions to be ethical or not. He also referred to another theory which is egoism that is different as it refers to ethics through the actions themselves not the results. The Utilitarian is focusing on the acts of people and the alternative acts that affect them and others and in business this can be regarded through the organizations' policies and how following them can affect the employee and other employees, this can also be seen through the behaviors of the employees and how they affect themselves as they can decide how others can regard them and at the same time they affect other employees; for example when an employee's work results in cooperation in the department, this can affect others to be cooperative and affect the way others regard him as they will appreciate him more. Fryer, (2015) discussed business ethics as being human activities, he referred to the social contract theory that considers some social responsibilities that should be regarded by the employees and the business organization such as ethics related to the society such as charity and giving much interest to people in the community and their needs.

Nestle is a company that develops many practices in the context of its implementing to business ethics as it practices business ethics with its employees through providing them with a level of respect and appreciation seen in its motivation, reward and recognition to them. The company works according to a group of business ethics including honesty with employees, respect them, fair and equal dealing with them and being compliant to the laws, there is a standard of behavior the employees and the organization are following in addition to the policy of share value the company adopt. All employees are equal without regard to their race, culture or religion.  As for the customers, the company is very keen to provide them with the best products regarding healthy ingredients, fortified products and products that are free from harmful substances. The company is also keen on providing them with a level of consumer communication where consumers can claim any complaints and request anything they need. The company has a code of ethics that ensures the customers with having products that prevent malnutrition and this is seen in the way it markets its products as there isn't an attitude of following bad dietary life styles in the advertisement of the company but on the contrary, the company focuses on rational consumption for a better life.  (businesscasestudies, 2015) The company is commitment to provide customers with all nutrition facts on the packets of the food they buy and it is honest in every detail of information. The company's practices regarding business ethics include its practices to society as the company respects family life in its advertisements, it gives special interest for people in rural areas by making special campaigns for them and it makes special food for children which is fortified with vitamins and minerals. The company tends to use the best raw materials with the least consumption of water and other natural elements to keep the world safer. In all countries the company worked at, the company tended to respect the social culture of the people of that country. It was also keen on providing the workers in these countries with health care and food and education. (ethicalperformance, 2011)  As to suppliers, the company is obliged to follow the laws and legislations and the terms of the contracts written with each supplier with regard to the values and beliefs' respect of each supplier. Suppliers are all dealt with fairly and without any discrimination and the company is confidential regarding the security and privacy of suppliers regarding any information that may be relevant to them. (Nestle, 2015)   

Nestle focuses on sustainability of business ethics within the organization as it reviews all related issues with business ethics and analyzes how customers and the society regards Nestle ethics and then the company improves its ethical code; an example is that the company realizes the fact that people once boycott its baby milk due to the marketing campaign that focused on its being for poor people in developing countries and that it is better than mothers' milk so the company realized this and changed its marketing strategy for the product. (Curtin, 2005) The company focuses on purchasing the best types of raw materials as this is a part of its strategy of sustainable development. The sustainable development of Nestle depends on focusing on ethics in current and future practices of the company related with products, employees, customers and suppliers. The company has sustainable criteria for producing good coffee and it sets a standard for the level of quality the coffee beans should be on. Sustainability is also seen in regard to having customers satisfied with the social change the company is sharing in as fairness is focused on to be a social demand as, for example Nestle provides farmers with a 20% more prices than the market prices for the fairness of their coffee beans that can then be produced for the public in a fair price compared to its high quality. The company seeks sustainability of ethics regarding the environment and the way it uses its sources and the rational use for sources as water, farmlands and human resources in addition to the respect for animal needs as it has special vets for dealing with diseased animals and prevent getting any raw materials from any diseased animal. (Carrigan, 2005). 

Conclusion

In conclusion, it is important to focus on how business ethics are important to any business organization that needs to succeed. Corporate social responsibility is a major interest for the companies that need to have competitive advantage and to build a strong brand with a good reputation to all stakeholders. Nestle company is a great company that works in the field of food products including milk, coffee, chocolate and other products and the company is keen on keeping a high level of CSR regarding its stakeholders including the suppliers, consumers, employees and the society as a whole. The company is implementing many practices based upon Freeman's CSR principles that include respect stakeholders, recognizing their needs, having shared value creation criteria for them and to be ethical in all the company's practices with its stakeholders. Ethics have great interest by the company as all stakeholders are ethically treated by the company and this includes keeping sustainable ethic of codes as the company tries to improve its ethical practices and change its business ethics level to the better. Nestle is in need for doing more research regarding the theories and applied practices of business ethics and corporate social responsibility in order to improve its current position in the market.