Tejgaon College,

Dhaka.
Term Paper
on
Effects of corporate social responsibility on Nestlé.
Submitted To: Submitted by:
Mohammad Rafiqul Islam Mohammad Rakib Hossain
Assistant Professor Roll No: 193508
Dept. of Finance & Banking MBA (Final Year)
Tejgaon College,Dhaka Session: 2018-2019
Mobile No: 01304457912
E-mail: mdrakib3346@gmail.com
Dept. of Finance & Banking
Tejgaon College,Dhaka

National University, Gazipur.

Submission Date: 25 November, 2021

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 Effects of corporate social responsibility on Nestlé
DECLARATION

I  declare that the Submitted term Paper is my original work and no part of it has been
published anywhere else in the past. I take full responsibility, that if in future, the paper is
found invalid according to basic rules, the last decision will be of the Authorities concerned.
Any form of plagiarism will lead to disqualification of the paper.

Signature
Date:

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 ACKNOWLEDGEMENT

The special thank goes to our helpful term paper instructor, Md Rafiqul Islam. The
supervision and support that she gave truly helps the progression and smoothness of the
Group report. The cooperation is much indeed appreciated. Successful completion of any
type of report requires help from a number of persons and as we are still a student, we have
also taken help from different people during the preparation of the report. Now, here is a
petite effort to show our deep gratitude to those helpful persons.

The description of the study is CSR (Corporate Social Responsibility) effect on NESTLE.

The study is considered as one of the most important facts to learn, make and exquisite of
street food.

We thank whole-heartedly our respected teacher and report instructor Md Rafiqul Islam,
Department of Finance, Tejgaon College,Dhaka. for giving us this type of interesting &
knowledgeable topic. Our warm gratitude goes to many people whose affable cooperation
and advice helped us a lot bringing our endeavor into realization. Finally we thank our
friends who have helped us directly or indirectly during the preparation of the report. 

Table of Contents
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Topic Name Page No.

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Cover Page 1-1
Declaration 2-2
Acknowledgement 3-3
Table of Contents 4-4
Summary 5-5
Introduction 8-13
 Statement of the Research problem
 Objective of the Study
 Limitation of the Study
Discussion 13-13
 Defination of CSR
 Areas of CSR
 Company overview
 Nestlé Bangladesh Limited:
 Nestle Products
 Nestle CSR
Nestlé’s CSR Principles 13-13
corporate social responsibility Of Nestlé 13-14
CSR Effect of Nestlé 15-21
Company philosophy 21-22
 Nestle vision
 Nestle goals
 Nestle mission
 Nestle values and principles
 Stakeholder interest
Non-governmental organizations (NGOs) 22-22
Past CSR activities done by Nestle and its effect 23-23
Current CSR project and outcomes 23-24
Related positive and negative outcomes of CSR activities 24-25
 Effects on environment
 Effects on economy
 Effects on society
Drawbacks of Nestle 25-25
Initiatives of Nestlé Bangladesh 26-27
Findings and Analysis 27-30
Conclusions 31-31
Reference 31-31

Summary

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Since the times of the barter system to the present era of plastic money, mankind has
strided out a long path. There is no doubt in this that “profitability” has always been the
primary force and main motivation behind all this development. This motive actually
increased cut throat competition between the business forms. Because of this competition,
the companies started exploiting the quality of products as well as the environmental
concern. Slowly and gradually the business houses realized that they have to give back to
the society because they are surviving because of the society only. This realization gives
birth to the concept of Corporate Social Responsibility. However, the companies started
using this concept for brand building more than delivering it as a responsibility. The studies
also revealed that the companies used the corporate social responsibility for enhancing their
profit as well. This present study attempts to investigate the core concept of corporate social
responsibility (CSR), and find out its scope by taking the case study of the NESTLE.

Keywords: CSR, Nestle, Business model.

Introduction
Corporate Social Responsibility refers to the management model according to which
business firms take care of the society and environment as their social responsibility. The
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society pays the price in terms of pollution and other difficulties for business to run
smoothly. Even the human society suffered with a number of new diseases because of the
environmental changes coming because of the industrial pollution. However, in the present
era companies are using most of their business strategy to take competitive advantage over
others as well as to enhance the profit to the companies. A properly executed CSR concept
can result in huge competitive advantages, such as better access to capital and markets,
boosted sales and profits, operational cost reserves, enhanced productivity and quality,
competent human resource, value-added and status, improved customer loyalty, enhanced
decision-making and risk management processes. The CSR can be understood as a
responsibility of business wherein the business not only takes care of the internal
stakeholder (i.e., Shareholders, Workers) but also the external stakeholder (i.e., society,
nature) as well. The 2013 Act offers a chance to catch up and make our corporate
regulations more contemporary, as also potentially to make our corporate governing
framework a model to imitate for other economic systems with similar physiognomies. The
2013 Act is more of a rule-based legislation comprising only 470 sections, which refers that
the extensive part to the regulation will be in the form of rules. There are over 180 sections
in the 2013 Act where rules have been arranged and the draft rules were released by the
MCA in three batches. It is generally anticipated that the 2013 Act and undeniably the rules
will stipulate for phased execution of the provisions and in line with this, 98 sections of the
2013 have been notified and subsequently the analogous section of the 1956 Act ceases to
be in force. The CSR can be understood as a responsibility of business wherein the
business not only takes care of the internal stakeholder (i.e., Shareholders, also the external
stakeholder The 2013 Act offers a chance to catch up and make our corporate regulations
more contemporary, as also potentially to make our corporate governing framework a model
to systems with similar physiognomies. The 2013 Act is more of based legislation
comprising only 470 sections, which refers that the extensive part to the regulation will be in
the form of rules. There are over 180 sections in the 2013 Act that have been arranged and
the draft rules were released by the MCA in three batches. It is generally anticipated that the
2013 Act and undeniably the rules will stipulate for phased execution of the provisions and
in line with this, 98 sections of the 2013 Act have been notified and subsequently the
analogous section of the 1956 Act ceases to be in force (Grant, Thornton, an insight for
growth 2013).
The 2013 Act played a vital role in converting the Corporate Social Responsibility (CSR)
activities as law from a voluntary activity. Now the corporate houses have a legal obligation
to perform the CSR and have to spend 2% of their profit in the societal works. The main
objective of the CSR law is to enhance the lives of the individuals and exceed profit-and-

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loss matters for businesses or individuals. Thus the CSR can be defined as the
responsibility to the business to defend, sphere and foster human values and endorse
socio-economic welfare. CSR is frequently understood interchangeably with philanthropy.
While philanthropy can be said to be a vital vehicle for doing welfare, it is certainly not
homogeneously disseminated across time and space within the whole social sector. CSR
actually can be referred to as the concentrated effort by the organizations to coexist with the
society and nature investment newsletter (2014) Now with the changing systems and the
activities, the previous concept of CSR has little changed to be in more of an isolated form
and profitable concept. To be known that basic six core characteristics of CSR are as
follows:
The definition of the CSR is often, and the definition of the CSR is diverse in different
countries. The EC (1) defines CSR as “the accountability of organizations for the influences
on society." To meet the objective of social responsibility, companies “should have in place
a procedure to assimilate social, environment, ethical, human rights and customer
apprehensions into the business operations and main strategy in vital association with their
stakeholders.

1. Statement of the Research Problem:
The research problem statement frames our entire study. Preparing a
research problem statement is often the hardest part of writing a research
proposal or thesis. A research problem statement lays the foundation for work
that needs to be done to correct a situation, in the case of international aid
organizations, or presents a statement of research intent for a master’s or
doctoral thesis. As well as background information, a research problem statement
outlines the current situation,
identifies the challenges, specifies the location and indicates the people involved. 

2. Objective of the Study 
We have prepared this report based on two purposes. That are-

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  To develop our knowledge in Corporate Social Responsibility.
 And provide more valuable step to the company for better CSR

3. Limitations of the Study
We are lucky enough to get a chance to prepare a report on “Corporate
Social Responsibility of NESTLE”. We tried heart & soul to prepare a well-informed
report. But unfortunately we faced some difficulties when preparing this report. We tried
to overcome the difficulties. In spite of trying our level best, some difficulties that hamper our
schedule report work:
 

Discussion
1. Definition of Corporate Social Responsibility
 Corporate Social Responsibility briefly CSR means responsibility a corporation or company
has to the society. Corporate social responsibility (CSR), also known
as corporate responsibility, corporate citizenship, responsible business, sustainable respons
ible business (SRB), or corporate social performance, is a form of corporate self-regulation
integrated into business models. Ideally, CSR policy would function as a built-in, self
regulating mechanism hereby business would monitor and ensure their adherence to law,
ethical standards, and international norms. Business firms conduct activities to produce
goods and services to generate profits. Business, however, as a part of the larger
society has a responsibility towards it.
 

2. Areas of CSR

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 Consumers

Employees Social
Environment
Responsibility

Investors

There are four basic areas of social responsibility. These are shown in the
 following diagram.

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 3. Company Overview

Nestlé: Today’s Nestlé is the world's largest food and nutrition company, founded by Henri
Nestlé (10 August 1814 – 7 July 1890); a German confectioner in Vevey, Switzerland in
1866. In the food industry, Nestlé is the most trusted name with high quality products.
"Good Food Good Life" is the mission of Nestlé, which drives the company to provide
consumers with the best tasting and most nutritious choices in a wide range of food and
beverage categories and eating occasions. The vision of Creating Shared Value and the
very own Corporate Business Principles shaped the company culture and made them a
reliable investor over 86 countries of the world. Today Nestlé
employs around 339,000 people and have factories or operations in almost every country of 
the world with a total equity of CHF 92.2 billion.

4. Nestlé at a glance:

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  CHF 92.2 billion in sales, 2013
 339,000 employees in over 150 countries
 447 factories in 86 countries
 Over 2,000 brands
 1 billion Nestlé products sold every day

5. Nestlé Bangladesh Limited:
Nestlé Bangladesh Limited started its commercial operation in Bangladesh in 1994. Its total 
authorized capital is TK 1.5 billion and total paid up capital is TK 1.1 billion. The only factory
of the company in Bangladesh is situated at Sreepur, 55 km north of Dhaka. The factory
produces the instant noodles and cereals and repacks milks, soups, beverages and infant
nutrition products. Today Nestlé Bangladesh Ltd. is a strongly positioned organization. The
Company is continuously growing through the policy of constant innovation, concentrating
on its core competencies and its commitment to high quality food for the people of
Bangladesh.

6. Products of Nestlé:
Globally the product line of Nestlé is very large but in Bangladesh currently there are
only 12 products. Nestlé believes all foods and beverages can be enjoyable and play an
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important role in balanced and healthy diet & lifestyle; as a result, no matter how short the
product line is, it ensures the same quality in comparison to the other countries.

Category Brands
Nutrition Formula (Lactogen Recover, Prelactogen, All 110, NAN,
Lactogen, BABY n ME, Cereal
Culinary Maggi, Shad-e-Magic, Maggi Noodles, Maggi Soup, Magic Cube
Dairy Nido Fortified
Breakfast Cereal Kokocranch, Corn Flakes
Beverage Nescafe Classic, Nescafe 3 in 1, Coffee Mate, Nestea (Only
available
for Vending Machine)
Confectionery Munch rollz
Table 1: Nestlé Brands in Different Categor
7. Nestlé’s CSR  
 It is evident that the Manufacturing companies score better than the other companies
when it comes to CSR. This finding shows that the issue of CSR is more vital for the
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 manufacturing sector. The score for the Public and private sector organization is
similar. IT has been also observed that the companies performing CSR responsibly
are more sustainable than the other companies

Nestlé’s CSR Principles:

Nestle Bangladesh has taken corporate Social Responsibility (CSR) as major areas of
its business principles in addition to producing and marketing a wide
range of food products.The company not only believes in manufacturing and marketing
products, making profits, paying taxes and complying with state laws but also believes that 
a good company has something more to do for the society- even more than
CSR which has become a buzz word during the recent years in the corporate world.

Corporate social responsibility Of Nestlé

Main Falling
Rural development  Follow the countryside growth framework to understand the needs
of farmers.
 Execute accountable sourcing in their supply chain.
 Constantly advance the green coffee supply chain.
 ·       Roll out the nestle cocoa plan with cocoa farmers.
Water  Work to attain water efficiency and sustainability crosswise
operations.
 Advocate for effective water policies and stewardship.
 Treat the water society discharge effectively.
 Raise awareness on water conservation and improve.
 ·       Engage with suppliers, especially those in agriculture.
Environment  Improve resource efficiency in operations.
sustainability  Provide climate change leadership.
 Promote transparency and proactive, long term engagement in
climate policy. Improve the environmental performance of their
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 packaging.
 Assess and optimize the environmental impact of their products.
 ·       Provide meaningful and accurate environmental information
and dialogues. Preserve natural capital, including forests.
Our people, human  Assess and address human rights impacts in their operations and
rights and compliance supply chain. Eliminate child labor in key categories.
 Ensure that all employees and stakeholders can easily report
possible compliance violations.
 Enhance gender balance in their workforce.
 Ensure all nestle employees are covered by a certified safety and
health management system.
 Work against corruption and bribery.
 Provide training on corporate business principles, nutrition, and
environmental sustainability.
 ·       Roll out the global youth initiative across all their operations.
   Build knowledge leadership in children’s nutrition.
Nutrition  Lead the industry in nutrition and health research through
collaboration.
   Provide nutritionally sound products designed for children.
 Help reduce the risk of under nutrition through micronutrient
fortification.
 Reduce sodium (salt) in their products.
 Reduce sugars in their products.
 Reduce saturated fats and remove Trans fats in our products.
 Encourage consumption of whole grains and vegetables.
 Deliver nutrition information and advice on all their labels.
 ·       Promote portion guidance for consumers.

CSR Effect of Nestlé

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Nestlé is the world’s leading nutrition, health and wellness company. There are 33 thousand
employees working in this organization. Nestle is a MNC which operates in 83 countries
with the help of 461 factories. Nestle operates mainly in developing countries. Approx. 50%
of its plants operate in developing countries. Nestle claims to protest the trust of customers
and stakeholders with the strong principles. The principles and their related policies are
concerned with actions related to:
Project Details- Nutrition- Nestlé Healthy Kids (NHK) Program:
Purchase Request: According to the instruction of Nestlé South Asia Region (SAR), at first
NBL has to raise a ticket mentioning that they want to start an NHK program in a school. If
SAR gives proper clearance, only then NBL takes preparation to initiate the NHK program in
a particular school.
Selection of School: There might be a series of schools for the project. At a time, all of the
schools cannot be covered. So based on available resources and other supporting
activities, NBL selects a school and starts a further process.Purchase Requisition: After
selecting a particular school, NBL asked the school authority to give a requisition. It is just
for having a record that school authorities have consent for the NHK program.
Participant list: Then, school authorities give a participant list to NBL that shows how many
students are going to attend from which classes.
Training Schedule: Nutritionist Professor Nazrul Islam prepare the training schedule of
behalf of NBL after getting the participants list.
Purchase Order: Formally or officially, now NBL starts work for the NHK program which
is known as purchase order. Purchase requisition and purchase order is just the official
approach to start and have validity of work.
MoU: After releasing the purchase order, a Memorandum of Understanding (MoU) has been
signed between the Principal of the school and Managing Director of NBL mentioning all the
process and conditions which is required for official purpose or per company policy.
Printing: After that NBL goes for poster printing, nutrition book printing to conduct the
training session. Sometimes, they also print the course completion certificates based on the
number of participants. Sometimes, certificates are printed after the completion of course.
Training: Training usually starts on the month of March. The whole training period consists o
f 6 months which includes 6 modules of learning. Thus, usually the training program ends
in August. It is because the evaluation report of the training program has to be submitted by
October to the Headquarters in Vevey, Switzerland.
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Evaluation Report: Through some mock test and quiz competition, NBL representatives pre
pare the evaluation report of each participant. There is a certain percentage of marks
that needs to be obtained to pass the training process. As it is a continuous process of six
months, usually the results come positive.
Certificate: After the course completion, students receive a certificate to encourage them
so that they become interested about the nutrition value of food.
Project Modification: Based on the evaluation report, NBL makes necessary changes for
the forthcoming year planning. This is how the whole NHK project has been working for the
last four years.
Social Impact of NHK Program:Previously I have given some data and charts on how many
students are enrolled in the NHK program. It ensures one thing that the number of students
are aware about nutritional aspects and they help others to be aware about nutrition. If that
fact is true then so far 5000 students received the training and they were able to know
10000 more people. This is how knowledge sharing happens.
 
Project Details- Clean Drinking Water Project Activities:
Nestlé Bangladesh Limited does not start any projects randomly without proper justification.
Thus, each of the programs has different phase of implementation. Here is
the outline for Water project:
Investigation & Assessment: When a primary school's Principal or Sr. Teacher places the re
quisition in the office of NBL to establish or sponsor a Water Tank, NBL's assigned team
first makes a survey to assess the eligibility for setting up drinking water facility.
Purchase Request & Order: Just like the NHK program, it is the same request
and order system. School authority gives a purchase request and NBL gives the purchase
order to start the work. Community
Community Engagement: 
Through this phase, school authority, panchayat, opinion leader from the community try to g
et 5-10% funds voluntarily if they want to contribute for the project.
Testing: All the time, water has been tested in the NBL's Sreepur Factory to examine
whether it is drinkable or not. quarterly

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Construction: At this phase, a nominated contractor along with help of factory engineers
starts to construct the tank and submersible deep bore well.
*Water Education: When the construction is running, simultaneously water education progra
m is also held in that particular school for students starting from class 4 and onwards.
This program helps them to learn how to use water efficiently, how to keep the water clean
and different preservation methods of water etc.
The Inauguration: By this time, the construction has been completed and the facility is
handed over to the school authority and village community. This whole process takes almos
t two months to finish it properly.
 
*Water Education Program:
Previously I have mentioned that water education programs are organized by NBL. Here I
have given below a brief outline that what is the program all about:
Poster Sharing: In total 16 posters are shared usually through an interactive session with
the students and teachers as well regarding water conservation, saving, preserving, necessi
ty etc.
Demonstrations: A water harvesting model, solar disinfection methods, drip tap demo
and different tips are discussed in the part.
Drawing Competition: As it is a water education program, students take part in the competiti
on based on the theme "water".
Winner Selection: Finally the winners got the recognition based on their drawing, use of
color, clarity of thoughts, right slogans etc. Crest and confectionaries have been given
usually to the winner, each winner from each class.
Monitoring/ Follow up:
Maintenance and repair is the utmost priority for NBL. It is important to keep track of the
condition of the water from the source. Flushing and chlorination is examined in every
quarter and help can be sought from the factory Quality Assurance department. Schools
authorities are also instructed to keep their assets as clean and preserved as possible.
Sometimes, if NBL does not find the authority cordial to protect their assets or deliberately
do something wrong, after giving some warning, NBL stops the monitoring as a part of
punishment. But this situation rarely happens, as no one wants to bear huge cost of
testing and repairing all alone.
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Social Effect of Water Project:

Number of Primary schools 38

Water Tanks 38
Numbers of Boys benefitted 22512
Numbers of Girls benefitted 19367
Nearby Villagers benefitted It is uncountable as the tank is open for all/nearby villagers

Project Details- Rural Development- Sanitation and Collecting Raw Materials:

Selection of School, Purchase Request and Purchase Order: These three processes are
just same as NHK and Water Tanks projects. If I write it again, it will be a repetition of
words. NBL follows the same process for sanitation projects as well.
Construction & Completion: Just like the water tank projects, girl’s toilets are constructed
and
completed within two months and inauguration takes place accordingly
Monitoring & Repair: School authorities are being instructed that if any problems they face,
they should inform the NBL authority. While receiving problematic calls from schools, NBl try
to fix it as soon as possible.
 

Social Effect of Rural Development- Sanitation Project:

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Total Girl's toilets 21
Total No. of Girl’s toilets user 11054
 
The number of girl students in different schools has increased than before after the
establishment of toilets. There is no specific data or statistics about it but both NBL and
school authority claims that it has a positive impact on the presence of girl students.
In terms of collecting raw material, NBL just started this project to collect rice and spice from
the farmers after giving proper training. So it is still in the planning phase. It does not have
any impact on society so far.
Community Opinion:
Out of 38 Schools, I have randomly picked 6 schools and talked with the Head Masters
about the condition of the Water Tank and Girls Toilet. And I have received mixed reactions
which they have given in Bangla. I have described it in English here. Their opinions are
given below:

Barmi High School: The Head Master of Barmi High School, Md. Anwar Hossain said that
“Definitely the water tank and girls toilet made our life easier. We are grateful to NBL that
they have established it. Our water tank not only helps the students but also the nearby
community. And everyone is happy. Girl students do not have any problem nor do they
escape from the school now that they have done before. When I asked about the
maintenance, he said that NBL whenever he felt any problem, he would inform NBL, and
the authority helps to sort out that problem as soon as possible also they check it regularly.
Pirujilla High School: The Headmaster of Pirujilla High School, Abu Ahammod said that,
“We have some problems regarding water tank motors and washing. I have already
informed the NBL authority. They have said that they will repair it as soon as possible. And
the Girls toilet does not have any problem so far. Girl students are comfortable now.

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Kapasia High School: The Head Mistress of Kapasia High School, Sushila Begum said that,
both the Water tank and Girls Toilet are in good condition. They do not have any problem.
Service is excellent.
Monipur High School: The Headmaster of Monipur High School, Shailesh Chandra Vrmon
said that it would be great if NBL would wash the water tank once very soon. Overall service
was very good, but a wash could be even more helpful. Girl’s toilet is giving good service as
well.
Mawna High School: The principal said, it is very helpful for us as we can access pure water
not going so far. Currently we don’t have any problem regarding the Water Tank. And the
Girl’s toilet basin has broken. We have already informed NBL; hopefully they will give
support as early as possible.
Bhovanipur High School: The principal said, they have not faced any problem after the
establishment of Water tank and Girls Toilet. Everything is going well. NBL is regularly
monitoring. The problem we had, already sorted out. Yet, he also admits that sometimes
some illiterate people try to misuse the drinking water by taking showers or some for some
other activities. But the school authority tries to take care of that issue as much as they can.
Besides, students are encouraged to maintain their school norms to ensure best use of
drinking water.
In Pirujila High school, I talked with a student of class 6 named saiful. I asked him different
questions while gossiping. Among them I randomly asked “pani bolte ki bujho’’ (What you
understand by the name of ‘water’? Although I thought that little kid would be confused but
keeping me surprised he was able to give a nice answer. He said in Bangla, “Kalke Hashte
Hole, Ajker Theke Pani Shonrokkhon Koro” which means “Save water today, to smile
tomorrow”. Then I asked in Bangla, How did you know it? He replied, “Nestlé theke pani
shikkha kormoshuchi te shikhaise amaderke” which means, “Nestlé has taught us in the
water education program”.

In brief:
Name of the schools Water Tanks Condition Girl's Sanitation Facilities

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 Pirujilla High School Need Monitoring Good
Bhovanipur High School Good Good
Mawna High School Good Need Monitoring
Kapasia High School Good Good
Monipur High School Need Monitoring Good
Barmi High School Good Good

Company philosophy

Nestle vision
a) The vision of nestle is to remain the main multinational association in food, nutrition,
wellbeing then wellness.
b) To maximize the utilization of good quality of local raw material.
c) To protect the earth by being focused on ecologically solid business practices, and
considering the need to safeguard on common assets and spare energy.
d) Nestlé’s idea is to be worldwide renowned leading nutrition, health and wellness
(NHW) company.

Nestle goals
a) Nestle goals is to help 50 million children to have healthier life as well as help 30
million livelihoods in community specifically associated with its business and make
progress toward reducing the effect in its operations.
b) Nestle commits to reduce sugar by 5% added to its products by 2010.
c) Upgrade farm economic among the farmers who provide them goods.
d) Progress labors’ livelihood and protect children in their agricultural supply chain.

Nestle mission
a) Nestles mission is satisfying their customer by providing the best tasting in their
product and greatest nutritious varieties in a wide choice of food and beverage
categories and other eating instances, since morning to night.

P a g e 22 | 32
Nestle values and principles
a) Nestle believe in people rather than frameworks as they do the business according
to a set of principles founded on honesty, equality and general concern for society.
b) Nestle is concerned on creating a motivation for their investors.
c) Nestle believe in constant change focusing on their environment.
Stakeholder interest
Community Nestle have worked with the stake holders of the community in the Mossel Bay
Locale of South Africa since 2009. Drought (dry season) is one of the great problem in
Moosel. Over inclusive way to deal with water administration, nestle provided dairy
agriculturists with water and begun to address the water quality in a local lagoon. Nestlé’s
factory in those region is set to develop a zero water facility in 2017.

Non-governmental organizations (NGOs)

Currently, nestle have supported the World Animal Protection by contributing to the partner
on a business benchmark on Farm Animal Welfare (BBFWA), which is worldwide measure
of animal welfare principles in food organization. Representatives of NGOs also supported
Nestle on animal health and welfare issue.
1. Suppliers (include farmers) Nestle have helped the coffee farmers in Lampung area of
Indonesia that support productivity and nature of the Robusta coffee through Nescafé
plan.76 rancher(farmer) field schools has started around 20000 ranchers on good
agricultural practices (nestle, 2017). Nestle also improved the growing method of growing
coffee in Philippines so that farmer get better harvest which will return in quality product to
nestle.
2. Consumer and common public Nestle have helped 62000 youthful Europeans to find
employment opportunities or training project as 200 organizations have joined Youth
activity, started by nestle company. Currently nestle is working with America and preparing
the similar action plan for Asia, Oceania, Africa and the Middle East.

Past CSR activities done by Nestle and its effects

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a. Nestle had built up Rural Development Framework in 2012 which was begin
to rollout in 2013 as the overall wellbeing of rural groups are essential for the
long-term success of their business.
b. Nestle has given services that worth 37.8 million in 2012 so that they could
help more than 44000 farmers for better quality of products.
c. In 2012 Nestle carried out three Human Right Impacts Assessments (HRIAs),
in Russia, Uzbekistan and Kazakhstan
d. Nestle utilized more than 1180 agronomists and 12000 support staff to give
guidance, training and specified help for farmers.
e. Nestlé’s Fawdon confectionary production had line in the UK has put CHF
(Swiss Franc) 4.9 millions of an anaerobic absorption framework, completed
in September 2014, that changes over solid and liquid sewage wastage into
clean water and methane gas using common natural absorption shapes. Due
to this office will save 1000 tons CO2 reliably year, cut solid waste by 4000kg
consistently.

Current CSR project and outcomes

a. Nestle has planted 480,000 trees in the area of 2,300 hectares until 2016,
according to their RILEAF project. Beside that nestle uses recyclable water
bottle that is prepared with almost thirty less plastic than the regular half-liter
bottle” for environment sustainability.
b. Nestle has worked on waste management. By, 2016 Nestlé’s 182 factories
reached nil waste for dumping. Nestle reduces waste for disposal by 77%
(105000 tons) till 2006 which now increased to 82% which is the great
achievement for nestle.
c. Nestle joined the Feed the future action for Climate Smart Cocoa which
helped the cocoa maker in Ghana to receive agriculture practices to
counterbalance the difficulties of climate change
d. Nestle has started evolving educational resources for both health
maintenance professionals and parents on the welfare of breastfeeding and
run campaigns and seminars in 2016. It was seen that mother who lacks
breast feeding were using the milk powder for their babies where uneducated
mother dilutes the powder milk to make it long lasting and often with
contaminated water which is harmful for their babies.
e. Nescafe has been developed in Vietnam so that it could reach the demands
for their Nescafe coffee products and also created more than 200 job
opportunities.
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 Related positive and negative outcomes of CSR activities

The globalization of nestle has brought both negative and positive impacts in different
aspects while doing CSR activities.

Effects on environment
The company has been working on environment sustainability. Company brought the
positive changes in environmental sectors by producing the goods that is least harmful to
earth. For that they use recyclable bottles and since, 2008 greenhouse gas release and
non-renewable energy effects for the packaging process have been condensed by 19% in
Nestle water. On the other side, nestle have negative impacts on environment such as
pollution and misuse of resources. As per the Green piece nestle neglected to comply with
the regulation of China and released mass waste in rivers and lake there. Similarly,
company illegally pumped many gallons of water from California’s San Bernardino National
Forest for a long time, which is against the law.

Effects on economy
Nestle has positively and negatively manipulated the economy of many nations. The
positive side of the organization is that Nestle have provided job and training opportunity to
people. Nestle has worked with Vietnam to order to meet the nestles coffee requirement
where company provided more than 200 job in that territory. When nestle conveyed work to
the people of different country it also empowered child labor in developing countries which
is negative side of nestle. As per the report provided by Fair Labor Association informed that
1.8 million kids in west Africa are in risk of exploitation as well as child labor. Nestle signed
a contract in2001 which tells to end the child labor but nestle violated it.

Effects on society
Nestle is renowned for many things, for instance, the newborn child recipe scandals, instant
noodles and so on. But every sides have different story. Nestle has been drawn out been
the suspects of harming the health of children. Though nestle claims that breastfeeding is
finest, it was discovered that they would contract deals young ladies dressed as medical
caretakers to speak to moms and give them tests to get them captured on new born child
recipe. Various poor and undernourished third-world ladies are physically unfit for
breastfeeding and are worried with the basics of survival where nestle take an advantage of
that. These uneducated mother dilute the powder milk and use contaminated water that
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harms the child. Recently, nestle start to provide knowledge about the advantage of
breastfeeding to both health care professional and parents.
Nestle is a huge company and has considerable measure of impact over many nations,
particularly in the consumer industry. They should utilize that energy to spread a positive
impact and be a good example with the goal that other developing organizations can take
after their lead so they can contend and be feasible in the global market.

Drawbacks of Nestle

CSR Above all the mentioned activities being contributed to the society there has been
much more to take care of regarding the working, policies, product, etc. of the company.
Every company, even if tried, cannot give its 100%. The major drawbacks of this company
which violates the rule of CSR are:
 
 Falsely claiming “global policy” as the reason for not negotiating with unions.
 Lying about global policy on shift patterns.
 Excessive working hours in violation of the law.
 Interfering in trade union elections.
 Coercing workers to stop the registration of a union.
 Refusing the basic right to negotiate wages.
 Banning the basic right to freedom of assembly.
 Nestlé is now a serial offender when it comes to violating international conventions
and guidelines.

Initiatives of Nestlé Bangladesh

 
 

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As amongst the world’s largest food and beverage companies, Nestlé touches billions of
lives worldwide. In Bangladesh too, we have made a difference in the lives of millions of
people; from the farmers we work with to the individuals and families who enjoy our
products, and the communities and natural environment which support our operations. We
share the challenges and successes of the communities in which we operate. The following
programme highlights our commitment to creating shared value for Nestlé stakeholders and
their communities.
Nestlé Healthy Kids
Nestlé Healthy Kids (NHK), based on a Nestlé global programme , was initiated in
Bangladesh in 2010 at Nestlé’s Sreepur Factory area. It is dedicated to empowering
teachers and children with nutrition education and promoting healthy lifestyles in the school
environment and surrounding communities. In collaboration with nutrition experts, the
programme now provides over 18,000 children in village schools across Gazipur district with
knowledge on healthy diets and good nutritional practices.
Under NHK, students aged 13 to 17 years old learn about good food habits, nutritional
deficiencies, food related disorders, food hygiene, and techniques to safeguard the
nutritional value of food during preparation. The programme also helps transfer nutritional
knowledge through the students to older family members back home, helping to build
resilient and healthier communities around Nestlé factories. The Nestlé Healthy Kids Global
Programme operates in 84 countries and has educated 8 million children so far.
Clean Drinking Water

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Driven by a global commitment to promote best practices in water use, Nestlé Bangladesh
helped construct water tanks in different primary schools across the country and provided
training on sustainable water use. Our successful installation of sanitation facilities for girls
in village schools of Gazipur resulted in a visible reduction in the drop-out ratio of female
students in these institutions.
Amra Korbo Joy
As part of our commitment, we actively promote breastfeeding awareness, support in
enhancing healthcare knowledge and provide livelihood to unemployed street vendors
through an initiative called “Amra Korbo Joy”. We have also partnered with the 2030 Water
Resource Group to lead the charge in advocating for sustainable water usage, and have
worked with local NGOs to train farmers in an effort to enhance their employability.
Responsible Sourcing
Responsible sourcing practices at Nestlé help people to be better informed about what is in
their food, where it comes from and how it is made. We help farmers and suppliers develop
ethical practices to ensure sustainable supplies of quality ingredients for our products as
well as to safeguard their incomes. Nestlé Bangladesh chooses its suppliers through strictly
laid out procedures and engages with them according to internal non-negotiable minimum
standards. Our suppliers are expected to maintain high standards in the areas of business
ethics, human rights, fair labour practices, health and safety, and sustainable environmental
standards.
Reference: https://www.nestle.com.bd/nestle-in-society/other-initiatives

Overall Findings & Recommendations

From the above analysis of NBL and its three different projects, I can summarize that, Nestl
é Bangladesh Limited started its operation in 1994. It started its first CSR, water project in
2006. Later on they have introduced NHK programs & Sanitation facilities from 2010. And
from2013 onwards, they have made initial preparations for collecting raw materials as a part 
P a g e 28 | 32
of rural development. The success of their CSR depends on several other aspects, but still it
is worthy to mention that due to their dedication and continuous effort for CSR, they have
receivedStandard CharteredFinancial Express Corporate Social Responsibility (CSR) Awar
d in the year of 2010-2011.
Although NBL is going good but after the project analysis of Nutrition, Water and Rural Deve
lopment, I have some findings, observations & recommendations which are discussed
below:
Location: Nestlé operates its CSR only in the Gazipur area, as the factory is over there.
They can seek help from the factory lab or from the factory engineers, that’s why they only
perform their activities in that area only. Thus, I would like to say that only one area
operation does not contribute at its best. Because in that case, only one area started
developing and others are not. So they should introduce their activities in nearby districts as
well one by one. If they continue to perform it according to their factory wise or factory
location, then it would be very limited operation and overall contribution will be very less. As
a renowned MNC worldwide, it is not expected that Nestlé will perform less compared to
other MNC’s in Bangladesh. So as fast they will expand their market, they can reach to
more people through their CSR as well which ultimately build the brand equity and image.
Limited Resource: NBL performs their activities as per the instruction of Nestlé Delhi. So
for that reason they have limited budget, access of information and control, instruction & su
pervision. Thus, whatever decision India & Sri Lanka takes along with Bangladesh, in
most of the cases, Bangladesh needs to follow that. If NBL wants to do something extra,
they need to maintain the upper decision which is a disadvantage for Bangladesh.Global
Alignment: Although they are operating CSR in three areas, which is critical and
needed for Bangladesh, but after all it is a global strategy which they apply in
the 86 operational countries. Thus, they usually do not modify their CSR unless it is not
needed at all. For example, in Africa they work
for HIV AIDS diseases, which is massive on that zone. But that is not applicable for other co
untries. So they have modified it only for Africa as per the requirement and need. So,
following global alignment is also a shortcoming as sometimes the necessity might be less.
NHK- extra load for students: Nestlé Healthy Kids Program is a very good initiative. But it
has some drawbacks as well. For example, NHK is not a course curriculum from the
Education Board. Rather it is totally separate initiative from Nestlé which students need to le
arn after their regular class activities. So sometimes it becomes an extra burden for them. A
nd the teachers need to give extra time for that as well. So the ultimate effectiveness of the
NHK Program depends on how much teachers are capable of providing nutrition education
and how much students are able to grab the
knowledge and implement it in their day to day life.
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Limited Water Education: Water education covers many things around the students which is
a great source of learning. But this education is not for the general village people.
Whenever they provide water education, they can gather the village people to be a part of
water education so that village people also have some knowledge and be a good citizen by
ensuring ultimate effective use of water. NBL can do it as a part of their promotion as well.
Not strongly positioned Rural Development: NBL has started their rural development
CSR not much way before. It is not strongly positioned till now whereas they are operating
in a full form in Bangladesh from 1994. So this has to be in a good position by this time but
as they become late, it will take time to develop. Although it is late but proverb says better
late than never. We hope to get some good outcomes from rural development by 2016.
Areas of CSR can be modified: From my point of view, too much focused activities on Nutriti
on or Nutrition as part CSR is not that much necessary as NBL considers it in terms
of Bangladesh. To me, right now there are lots of severe social problems in Bangladesh to
address off. Among them poverty, unemployment, drug addiction, inequality in education
etc. are some of them which should get priority. For example, the population below the
poverty line is still around 31.5%. These people do not get a meal properly in a day. So in
that case, CSR is like nutrition, how much value it carries is a doubtful one. Side by side,
poverty is highly connected with the unemployment rate and the dropout ratio of the school
children. Teach for Bangladesh website shows, half of the students who enter class 1 drop
out before they complete class 5. On the other hand, about 80% who remain till class 5,
drop out before they finish class 10. There are some factors behind it like wealth, income,
social status, geographic location etc. but the irony is still there are many parents, who are
not able to ensure the primary education of their children. So for them, having knowledge of
nutrition is unnecessary. Because priority simply does not make them to do that.

Am I concerned about nutrition?: This is a simple observation from my personal point of

view about how much I am concerned about food nutrition. Being a part of Nestlé how much
I am maintaining regular food habits from a nutritional perspective. If I answer honestly, the
answer will be 'not at all'. NHK is a program to make students educate about the nutrition
factor of different foods, its necessity, impact on diseases etc. But how long a student will
carry out those knowledge. After finishing the classes or module of nutrition, maybe one or
at best two years they will remember it. With the passage of time, how many students will
remember it? Even if some of them will remember it, questions come how long they would
be able to maintain it throughout their life. Here, again come different factors like income,
wealth as it will influence the purchasing power of nutritious food. So, again, working for
P a g e 30 | 32
Nutrition as a part of CSR is an appreciated one but the effectiveness or ultimate objective
behind this NHK program, how sustainable it is sustainable in the long run,
is a questionable one.
Lack of regular monitoring: In the analysis part, I have made a little survey over phone in
6 primary schools or Gazipur. The results are already mentioned above. From that result I
can say the monitoring or follow up result is better than average. But still there are some
shortcomings which need to be addressed. To maintain their CSR commitment properly,
NBL should engage more people for regular monitoring and assessment to ensure highest
and error free service from their end.
Should maintain statistics of improvement: While my working on CSR operation, I
faced difficulties as there were no significant files or books or data which can give some
statistics of improvement. Construction of water tanks, girl's toilets has physical evidence
but if someone wants to know about the core information or the actual number of people
who have benefitted, there is no exact data as evidence. So, the research and development
wing of NBL can conduct a research to know about the number of actual beneficiaries.
Lack of opportunity to
take independent decisions: Independent decision making ability gives the opportunity to
make the best decision in a particular situation. But if there is interruption from other
countries a decision cannot be successful all the time. Because the product market
is always vulnerable. Demand for any product is not always stiff. So sometimes, it is
required to make a prompt decision. Same thing is applicable for CSR as well. For each and
every problem or for an urgent situation, if NBL needs to wait for an outsider's opinion, or if
the process is lengthy, the outcome will not always be fruitful. So in terms of CSR, NBL
should have the power to modify it from the ground of Bangladesh that is applicable
and appropriate most.
 

Conclusion

Nestle’s CSR effect, founded on strong principles of transparency, honesty, integrity and
fairness are playing a significant role in building an equitable and just society in the country.

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 Reference:

1. https://www.nestle.com.bd/nestle-in-society/other-initiatives
2. https://www.nestle.com/csv
3. https://thecsrjournal.in/the-complete-report-on-csr-activities-of-nestle/
4. https://www.outlookindia.com/csr_2019/nestle.php
5. https://www.researchgate.net/figure/A-framework-of-Nestle-for-
CSR_fig1_268421926
6. https://samplius.com/free-essay-examples/an-overview-of-corporate-social-
responsibility-of-nestle/
7. https://www.google.com/
8. https://databd.co/stories/corporate-social-responsibility-in-bangladesh-an-
assessment-in-effectiveness-10586
9. https://www.academia.edu/19855348/
Corporate_Social_Responsibility_CRS_in_Bangladesh_Regulation_and_Practice
10. https://insights.diligent.com/csr-books-and-resources/
11. https://www.routledge.com/Corporate-Social-Responsibility/book-series/ASHSER-
4002

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