Eliminating Modern Slavery from Supply Chains Can Nestlé Lead the Way

Eliminating Modern Slavery from Supply Chains: Can Nestlé Lead the Way? 1. Who are the key stakeholders in this setting and what are their needs related to ethical and corporate social responsibility (CSR)? a. The key stakeholders in this setting include the consumers, the partners in the industry, investors, and NGO’s. Their needs related to ethical and corporate social responsibility include education within the company, protection/engagement of their work force, and environmental factors. Overall, stakeholders expect a fully transparent relationship with a company for them work efficiently. 2. Please answer the following: a. How does Nestle’ address the ethical and corporate social responsibility needs of the key stakeholders you identified in Question 1? Explain. i. The Nestle addresses the ethical and corporate social responsibilities efficiently. Despite the negative outcomes of child labor, Nestle was honest and transparent with their shareholders. Many other companies would handle this issue differently but Nestle decided that it was in the shareholder’s best interest to not neglect this matter and be honest. The company has been combatting and has overcome many adversities and was successful in doing so. Their ability to alter their business model efficiently and efficiently when required benefited the company. b. Based on the five components of a corporate socially responsible strategy depicted in Figure 9.2 in Chapter 9, is Nestlé’s strategy socially responsible? Explain. i. Based on the five components of a corporate socially responsible strategy Nestle’s strategy is socially responsible. The company developed a socially responsible plan by focusing their efforts into factors that would affect the environment, workplace, society, and the marketplace. Nestle identified their target consumers through a thorough analysis that allowed the company to design a development plan. Nestle maintained knowledge of their corporate socially responsible strategy by monitoring the effects of the policies they implemented. Overall, Nestle designed and maintained a socially responsible plan that was efficient and effective in achieving the company’s goals. c. How does Nestlé link rewards and incentives to strategically important employee behaviors and the company’s targeted sustainability outcomes? Explain. i. Nestle links rewards and incentives to strategically important employee behaviors and the company’s targeted sustainability outcomes in a variety of ways. The company has widened their reach in the market and has a more global presence. This has resulted in an increased amount of consumers and market share as well as total revenues for Nestle. The changes implemented within the business environment have enhanced their workforce and consumer’s satisfaction. Nestle’s involvement in multiple organizations such as FLA, CLMRS, TNCP etc. has promoted their company’s image and employee behavior. d. If you were an investor in Nestle’ to what extent do the company’s ethical and social corporate responsibility efforts match your own system of personal ethics? Please explain. i. If I was an investor in Nestle the company’s ethical and social corporate responsibility efforts would not match my personal ethics. Nestle neglected their attention toward human right violations and continued to pass themselves on as an “ethical” company. Despite their acknowledgment of their actions, honesty does not automatically make a company forgivable. Especially as an investor, I wouldn’t want any of my money invested into a company that is not trust worthy and can affect the value of my investment because of their neglection toward ethical practices. 3. In what ways, if any, is Nestlé acting in an ethical and corporate socially responsible way? What changes to its ethics and CSR strategy would you suggest and why? a. Nestle is acting in an ethical and corporate socially responsible way in many different aspects. The first being Nestle’s impact on local communities. The company inspires individuals to live and promote a healthy and cleaner lifestyle in their communities. Nestle also designed a training program in aim to further educate fishing vessel captains, owners, and crew members on the working conditions for the employees. In developing this program Nestle worked alongside Verité, its supplier Thai Union, the Royal Thai Government, and the Southeast Asian Fisheries Development Center. In addition, Nestle has partnered and worked closely with many organizations that promote an environmentally friendly company who cares about the world. 4. What recommendations would you make to Magdi Batato to increase Nestlé’s triple bottom line performance? Provide a justification for these recommendations based on the outlook for Nestlé and the attendant risks. a. I would provide Madgi Batato a few recommendations to increase Nestle’s triple bottom line performance that targets the people, prosperity, and planet factors. I would strongly recommend Nestle focus their brand image on advancing human rights such as poverty, world hunger and diversity. Nestle is a major player in the food and beverage business and has a major global presence. I believe that an effective plan implemented on contributing to world hunger and other social factors can highly benefit the company’s image. I would also recommend Nestle should also follow many companies’ footsteps and take initiatives in environment friendly plans such as lowering their greenhouse gas emissions or partnering with organizations that contribute to global hazards such as pollution and deforestation. The risks that come along with these recommendations are fairly minimal. The main risk would be Nestle’s return on their investment. Both the recommendations listed above are not in any means cheap. These recommendations also don’t have any guarantee to directly generate profits for the company. However, it is the brand image and reliability that Nestle should be seeking in these ventures, not profit.