CSR Case - Essay Example

Corporate Social Responsibility Case about Nestle [Teacher 18th April When companies go global they face social risks associated with other markets. CSR strategy is a best tool to deal with social risks involved in operating in new markets. Corporate social responsibility is considered as the best strategy of all times. Through corporate social responsibility, companies can easily get some place in social and public circles. Nestle is already contributing to social, economic and sustainable development of countries it is working in.

In the future, best corporate social responsibility strategy would be more paying especially in developing counties. In this case study about the corporate social responsibility (CSR) initiatives of Nestlé and tries to address different dynamics of CSR contributions of Nestle. Nestle has been selected for writing a case because it is a global company that touches the lives of billions and it is an important contributor to CSR initiatives. Keywords: Nestle, CSR Table of Contents Abstract 2 Introduction 4 Analysis 4 Corporate Social Responsibility Initiatives 4 Motives for Corporate Social Responsibility Initiatives  6 Outcomes of the Corporate Social Responsibility Initiatives 6 Recommendations 7 Conclusion 7 References 9 Introduction Corporate social responsibility (CSR) is one of the most important concepts of strategic management.

Today, CSR strategies are often used by large multinational companies (MNCs) to increase their goodwill and profitability. CSR endorses a vision of business accountability to shareholders, employees, environment, and society. MNCs use environment and other attributes of a particular place and it is the responsibility of the MNCs to contribute to sustainable development. This essay aims at highlighting the CSR initiatives of by Nestle and whether Nestle has sought to inflict any harm on one or more of its stakeholders for profit seeking.

Nestle has been selected for writing a case because it is a global company that touches the lives of billions and it is an important contributor to CSR initiatives. In this essay we are going to talk about its CSR initiatives and we will also discuss the impacts of these initiatives on all stakeholders. Analysis Nestle is included in one of the world largest Fast Moving Consumer Goods companies. Products of Nestle are being used in 197 countries with the US and China major markets for sales.

Nestle is spending hundreds of millions of dollars annually for the social and economic uplift of deprived communities around the world. In this part of the case study, we are going to discuss the different initiatives of Nestle in the world (Kramer, Pfitzer and Jestin, 2005). Corporate Social Responsibility Initiatives Agronomy Assistance: Nestle is supporting farmers and agriculture sectors of agriculture economies in the world. It is funding for the uplift of agriculture sector in many countries.

Health and Nutrition: Nestle is also funding different NGOs to improve health and nutrition conditions in less developed and backward countries. Education and Manpower Development: Education and manpower development is among the top concern of the CSR strategist of Nestle. The main focus of these CSR strategies is on the youth of the poor and low income countries. Community Development: Nestle is also contributing towards the cause of community development. This CSR strategy also focuses on poor countries of Asia and Africa.

Environment Protection and Preservation: Environment protection and preservation is among the top concerns of the rights groups and world leaders. Considering the gravity of the situation, Nestle also set aside a major portion of funds to contribute to the preservation and protection of environment. Solid Waste Management: Nestle is also actively participating in the infrastructure development for solid waste management. Rural Development: It is also funding different rural development and urban development programmers in Asia and Africa.

Water Availability: Water shortage is a growing phenomenon in the world. Many countries in the world are suffering from severe shortage of drinking water and one billion people around the world do not have access to clean drinking water. Making water available for all is also on the list of top management of Nestle. Motives for Corporate Social Responsibility Initiatives  As per the Annual Report of Nestle S.A. for the year 2014, there are a lot of objectives behind devising a good CSR strategy.

Following are some of the most important motives of behind devising the CSR strategy. Reputation and Brand Management Medium Access to capital and increased shareholder value Risk management Improved relationships with government Transparency Outcomes of the Corporate Social Responsibility Initiatives Criticism on CSR: The policies of CSR of Nestle are criticized in many countries due to the exploitation of environment and its own workers. People who criticize on the policies of Nestle claim that without provision of rights to workers, CSR strategies are worthless (The International Union of Food, 2008).

Impacts on Company: There are many fold benefits of CSR strategy of Nestle. Among the most important benefits is the increased goodwill, profits and brand value of the company. Impacts on Shareholders: Shareholders also enjoy some benefits due to CSR strategy. Due to increase in profits, brand value, and goodwill of the company, the share price of the company also increases which is an important benefits for shareholders of Nestle. Impacts on Customers: Customers are tending to buy the products of the company with high goodwill and the company that shows care for people.

Increasing numbers of customers are showing their interest in products of Nestle. Impacts on Employees: Some CSR initiatives also focus on the needs of the poor employees. But there is a long way to go for reducing the exploitation of poor workers. Recommendations After discussing different dynamics of CSR initiatives of Nestle, it is important to recommend some improvements for the CSR initiatives of Nestle. Nestle needs to introduce a more transparent ways to disburse the funds to needy people.

Many people and rights group criticize Nestle for having dual standards. These people claim that Nestle is not investing in its own poor workers whereas; it spends millions of dollars to win the favors of local authorities and rights groups. So it is time that the higher management of Nestle understood that they need to introduce transparent method of funding for beneficiaries. They also need to address the concerns of their own worker. Conclusion At the end of this essay it is important to summarize important points of this essay.

The main objective of this essay is to shed light on the important of CSR and CSR initiatives by Nestle. Nestle has been selected for writing this case study because it is a global company that touches the lives of billions in 197 countries and it is an important contributor to CSR initiatives. Impacts of these initiatives on all stakeholders have been discussed and some recommendations have been made at the end of this essay. Nestle is investing around the world in social causes heavily. Hundreds of thousands of people are benefiting from the CSR initiatives of Nestle.

The impacts of CSR spending are great for the company and are increasing the brand value, profits, and goodwill of the company around the world. CSR contributions also increase the shareholders equity thereby increasing the value of the company. Nestle also needs to address the concerns of low paid poor workers. References Kramer, M., Pfitzer M., Jestin, K. (2005). The Nestlé Concept of Corporate Social Responsibility as Implemented in Latin America. Retrieved from: http://www.fsg.org/tabid/191/ArticleId/205/Default.aspx?srpush=true.

Accessed: 18th April 2015. Matibag, D. (2013). Corporate Social Responsibility (CSR) of Nestle. SlideShare.com. Retrieved from: http://www.slideshare.net/desireematibag/corporate-social-responsibility-csrof-nestle. Accessed: 18th April 2015. Nestle S.A. (2014). 2014 Annual Report of Nestle. Retrieved from: http://www.nestle.com/asset-library/documents/library/documents/annual_reports/2014-annual-report-en.pdf. Accessed: 18th April 2015. The International Union of Food. (2008) Nestlé’s Corporate Social Responsibility (CSR).

Retrieved from: http://www.iuf.org/nespressure/en/Nestle_CSI.pdf. Accessed: 18th April 2015.