Nestlé has a non-union HRM style with limited trade union involvement although it has trade unions in

certain sectors and recognises these accordingly. Nestlé is a global company; their corporate business
principle includes reference to human rights, human resources in the workplace and in essence sets the
standards of their employment relationship worldwide. The principles are written in 40 different
languages and distributed to all their management everywhere Nestlé refers to the employee as an
integral part of the company’s assets. Nestlé has clear management controls, HR practices and mentions
recruitment as the task of employing the right people for the job all strengthening their open concept of
the employment relationship. 4. Changes affecting the employment relationship 4.1 HRM vs. IR
(Pluralist vs. Unitarist)

The changing employment relationship has seen a move away from Industrial Relations or Personnel
towards HRM style which has resulted in much more direct manager interface with all employees.
Industrial Relations were a pluralist style open to conflict with divisions on power. HRM is a unitarist
style, there is more power with the direct line managers and as a result employees have retrospectively
become more involved in their own career possibilities. Nestle has a unitary style which helps
employees become more aware of the company’s directions and strategies as a result.

https://www.bartleby.com/essay/Nestl%C3%A9-the-Employment-Relationship-F3SCV2H3DRVS

How are human rights governed in your company?

The Nestlé Human Rights Working Group (HRWG) aims to strengthen the effectiveness and improve the
coordination of human rights-related activities and initiatives across the entire company.

The HRWG meets on a bi-monthly basis in order to:

Supervise and coordinate the progress made on the implementation of human rights at the corporate
and markets levels against Nestlé commitments;

Provide strategic orientation on areas that need to be prioritized to further mainstream human rights
within Nestlé structure and operations;

Contribute technical expertise to ongoing and future human rights initiatives and activities;

Preempt and discuss specific Nestlé-related human rights issues and any action to be taken.

The heads of the following departments or their direct reports are represented on the HRWG: Human
Resources; Public Affairs; Legal; Security; Compliance; Procurement; Safety, Health and Environment;
and Risk Management. The HRWG reports to the Corporate Compliance Committee and to the Issue
Roundtable (both chaired by Executive Board Members) on a periodical basis. Inputs are provided
directly to the Executive Board Members as needed.

In addition, specific human rights issues are addressed by the Child Labour Action Group and the
Operations Water Task Force, both chaired by Executive Board Members. In December 2014, our CEO
Paul Bulcke delivered a keynote speech at the UN Annual Forum on Business and Human Rights
presenting our approach to human rights and his role as Nestlé’s CEO in this area.

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Update 2016:

Human Rights Due Diligence Programme

Nestle’s submission to the Corporate Human Rights Benchmark disclosure platform

Nestlés disclosure to KnowTheChain

Does your company have a publicly available commitment to respect human rights?

Yes, Principle 4: "Human rights in our business activities" of the Nestlé Corporate Business

Principles ([link]) explicitly recognizes the corporate responsibility to respect human rights as defined in
the UN Framework on Business and Human Rights.

Since 2010 we have reviewed (created or amended) 15 policies to incorporate relevant human rights
elements and make our human rights commitment operational. These include:

Policy on Marketing Communication to Children (2015)

Commitment on Land and Land Rights in Agricultural Supply Chains (2014)

Commitment on Water Stewardship (2014)

Supplier Code (2013)

Responsible Sourcing Guideline (2013)

Commitment on Rural Development (2013)

Commitment on Child Labour in Agricultural Supply Chains (2013)

Human Resources Policy (2012)

Policy on Condition of Work and Employment (2011)

Consumers Communication Policy (2011)

Nestlé Group Security Standard (2011)

Employee Relations Policy (2010)

Flexible Work Environment at Nestlé (2010)

Privacy Policy (2010)

Policy on Transparent Interaction with Authorities (2010)

Policy commitment

How are human rights governed in your company?

The Nestlé Human Rights Working Group (HRWG) aims to strengthen the effectiveness and improve the
coordination of human rights-related activities and initiatives across the entire company.

The HRWG meets on a bi-monthly basis in order to:

Supervise and coordinate the progress made on the implementation of human rights at the corporate
and markets levels against Nestlé commitments;

Provide strategic orientation on areas that need to be prioritized to further mainstream human rights
within Nestlé structure and operations;

Contribute technical expertise to ongoing and future human rights initiatives and activities;

Preempt and discuss specific Nestlé-related human rights issues and any action to be taken.

The heads of the following departments or their direct reports are represented on the HRWG: Human
Resources; Public Affairs; Legal; Security; Compliance; Procurement; Safety, Health and Environment;
and Risk Management. The HRWG reports to the Corporate Compliance Committee and to the Issue
Roundtable (both chaired by Executive Board Members) on a periodical basis. Inputs are provided
directly to the Executive Board Members as needed.

In addition, specific human rights issues are addressed by the Child Labour Action Group and the
Operations Water Task Force, both chaired by Executive Board Members. In December 2014, our CEO
Paul Bulcke delivered a keynote speech at the UN Annual Forum on Business and Human Rights
presenting our approach to human rights and his role as Nestlé’s CEO in this area. ([link])

Policy commitmentGovernance: Board oversightManagement: Tracking effectivenessPublic policy &

engaging governments

How are human rights managed within your company?

We deliver on our responsibility to respect human rights at the corporate level and across country
operations through the implementation of our Human Rights Due Diligence Programme. The
Programme is made of 8 pillars that are described below. For more information on the progress we have
made against each of these pillars, see section 9 of this survey or visit our website: [link]
Pillar #1 – Policy commitments: We integrate human rights into new and existing Nestlé policies and
procedures. Since 2010 we have reviewed (created or amended) 15 policies and policy commitments to
include relevant human rights elements [more information is provided as part of section 1 “Policy
commitment” of this survey]

Pillar #2 – Stakeholder engagement: We engage with a range of international and local stakeholders,
including government agencies, international organisations, trade unions, business associations, civil
society organisations and academia to discuss specific issues and improve our practices. Human rights
issues are systematically integrated into our global stakeholder consultations. In addition engagement
with local stakeholders and rights-holders is a core dimension of our Human Rights Impact Assessments
(see also below Pillar #5 for more information).

Pillar #3 – Training: We train our employees on human rights in order to raise their awareness and make
them understand how human rights apply in their daily activities. We also provide targeted training to
specific departments and functions such as the Nestlé Group Audit, Human Resources, Legal, Security,
etc.

Pillar #4 – Risk evaluation: We evaluate human rights risks across our business activities to assess the
likelihood and severity of human rights risks to our business. High human rights risks are integrated into
our Enterprise Risk Management (ERM) system. High risks are reported to the Executive Board
Members.

Pillar #5 – Impact assessments: Together with the Danish Institute for Human Rights, we conduct specific
Human Rights Impact Assessments (HRIAs) in high-risk countries. In 2013 we released a joint white
paper called “Talking the Human Rights Walk” ([link]) presenting the key outcomes of our first seven
HRIAs. HRIAs are a unique opportunity for us to engage in-depth discussions with Nestlé employees,
suppliers, local communities and stakeholders in different regions. These assessments also inform us
about the challenges we face on the ground, and help us implement effective action plans to address
gaps between international human rights standards and current practices, both at the corporate and
country levels.

Pillar #6 – Coordination: Our human rights activities are carefully coordinated across our business
activities though the Nestlé Human Rights Working Group (HRWG). It gathers eight departments heads
or their representatives (Human Resources; Public Affairs; Legal; Security; Compliance; Procurement;
Safety, Health and Environment; and Risk Management) that meet on a bi-monthly basis to review
progress against the Human Rights Due Diligence Programme, and to discuss and address specific
human rights issues.

Pillar #7 – Partnerships: We partner with expert organisations to implement our human rights
commitments and activities on the ground. In 2014, we renewed our two-year partnership with the
Danish Institute for Human Rights (DIHR). We are also an official affiliate company of the Fair Labor
Association (FLA), which helps us address labour standards, and child labour in particular, in our supply
chain. Our work with both of these organisations is key to the success of our Human Rights Due
Diligence Programme (see also section 8 of this survey “External and collaborative human rights
initiatives” for more information).

Pillar #8 – Monitoring & Reporting: Human rights have been incorporated into our internal and external
audit and monitoring procedures, both at the operations (CARE and Nestlé Group Audits) and supply
chain (Responsible Sourcing Audits and Traceability Assessments) levels. This helps us verify how
effectively human rights have been integrated into way of doing business on an ongoing basis. Our
Integrity Reporting System enables our employees to report any illegal or non-compliant behaviour they
observe – anonymously if they wish. Tell Us allows our suppliers and external stakeholders to report any
suspected violations of regulations, laws and our own policies through the internet or by phone. Every
year we report on human rights performance against these 8 pillars and the GRI G4 indicators as part of
our Nestlé in Society Report. We also report our progress against the UN Global Compact Principles at
an advanced/LEAD level.

What is the company’s approach to the engagement of stakeholders (including workers, and local
communities impacted by the company’s activities), on human rights issues?

We engage with stakeholders and rights-holders at different levels and through different channels.

Every year we conduct two global stakeholder consultations (one in London and the other in a country
operation) where human rights issues, among other topics such as nutrition, water and rural
development, are discussed with representatives from governments, international organisations, civil
society organisation and academia. Engaging with local stakeholder and rights-holders is a core
dimension of the Human Rights Impact Assessment we conduct in high-risk countries. During a HRIA
various people, groups and organizations are interviewed and consulted, with a particular focus on
impacted rightsholders. The assessment team (Nestlé and the Danish Institute for Human Rights) further
distinguishes between rights-holders who are internal to the company (e.g. workers) and rightsholders
who are external to the company (e.g. local community members, consumers, contracted workers in the
supply chain, farmers, etc.). The various stakeholders are selected for inclusion in the impact assessment
through stakeholder mapping and analysis undertaken by the assessment team prior to the assessment.
For more information, please see “Talking the Human Rights Walk” ([link], p.22-25).

In April 2014, we organised a stakeholder consultation on our approach to human rights and rural
development, including the nexus between these two topics in the context of Nestlé’sbusiness activities.
The roundtable gathered twenty human rights and rural development experts from NGOs,
intergovernmental organisations, think tanks, consultancies and trade associations. The Danish Institute
for Human Rights facilitated the panel discussion on Human Rights Impact Assessments. SustainAbility
acted as rapporteur. A summary of the stakeholder views expressed during this event has been made
public on our website ([link]).

In October 2013, Nestlé and the International Union of Food, Agricultural, Hotel, Restaurant, Catering,
Tobacco and Allied Workers’ Associations, (IUF) signed up to Joint Operating Principles for how we will
work together in the future. We have committed to bi-annual meetings to be attended by an IUF
leadership team, trade union representatives from around the world and a Nestlé leadership team, with
agenda items proposed by both parties. Additionally, two working groups have also been established
with representatives from either organisation, with a focus on gender equality for non-managerial
positions and working conditions. More than 50% of our 340,000 employees are covered by collective
agreements that are negotiated at the local level between Nestlé management and employees’
representatives.

Priority human rights issues: What are some of the priority human rights issues for your company?

Health (including workplace health & safety, prevention of pollution)

Workplace diversity / non-discrimination

Forced labour and human trafficking (including in supply chains)Freedom of association and trade union
rightsHousing

Access to water

Freedom of expression and/or right to privacy / digital rights

Women

Children (including child labour)

Migrant workers

Other issues:

Land acquisition/tenure

Living wage

Working hours

Corruption and bribery

https://www.business-humanrights.org/en/nestl%C3%A9-0

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