1.

INTRODUCTION

1.1 EXECUTIVE SUMMARY

Project Title: A Project on Corporate Social Responsibility

A report on Nestl India Limited

Name of the Organization: Nestl India Limited

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1.2BACKGROUND
Corporate social responsibility (CSR, also called corporate conscience, corporate
citizenship or sustainable responsible business/ Responsible Business) is a form
of corporate self-regulation integrated into a business model. CSR policy functions as a self-
regulatory mechanism whereby a business monitors and ensures its active compliance with the
spirit of the law, ethical standards and international norms. With some models, a firm's
implementation of CSR goes beyond compliance and engages in "actions that appear to further
some social good, beyond the interests of the firm and that which is required by law.CSR aims
to embrace responsibility for corporate actions and to encourage a positive impact on the
environment and stakeholders including consumers, employees, investors, communities, and
others.
The term "corporate social responsibility" became popular in the 1960s and has remained a term
used indiscriminately by many to cover legal and moral responsibility more narrowly construed.

The Four Phases of CSR Development in India:

The First Phase
In the first phase charity and philanthropy were the main drivers of CSR. Culture, religion,
family values and tradition and industrialization had an influential effect on CSR. The industrial
families of the 19th century such as Tata, Godrej, Bajaj, Modi, Birla, Singhania were strongly
inclined towards economic as well as social considerations.
The Second Phase
In the second phase, during the independence movement, there was increased stress on Indian
Industrialists to demonstrate their dedication towards the progress of the society. This was
when Mahatma Gandhi introduced the notion of "trusteeship", according to which the industry
leaders had to manage their wealth so as to benefit the common man.
The Third Phase
The third phase of CSR (196080) had its relation to the element of "mixed economy",
emergence of Public Sector Undertakings (PSUs) and laws relating labour and environmental
standards. During this period the private sector was forced to take a backseat. The public sector
was seen as the prime mover of development. Because of the stringent legal rules and
regulations surrounding the activities of the private sector, the period was described as an "era
of command and control".

Nestl India Corporate Social Responsibility Policy

Nestl India Limited (the Company) is a leading Nutrition, Health and Wellness Company. As a responsible
Company, it has since its inception, participated in business activities which help in improving the quality of
life for the communities where it operates. This also includes creating better livelihood opportunities.
In consultation with stakeholders, the Company has decided to focus its activities on the following areas, where
it is in a position to create maximum value. These focus areas are:

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 Nutrition: A large part of our population is impacted by the double burden of malnutrition. Improving
nutrition awareness of communities particularly school children will be a focus area.

Water and Sanitation: India is among the worlds most water stressed regions. Additionally, safe drinking
water is a concern in many parts of the country. The Company would focus on helping farmers reduce water
usage in agriculture, raising awareness on water conservation and providing access to water and sanitation.

Rural Development: Supporting the sustainable development of farmers will be the third focus area.
The Company will continue to engage with stakeholders including farmers, experts, NGOs and the Government
and would take up such other CSR activities in line with Governments intent and which are important for
society.
The above areas are mapped with the activities as prescribed in Schedule VII to the Companies Act, 2013 in the
Annexure. While the focus of CSR efforts will be in the local areas and areas around it where the Company
operates, the Company may also undertake projects where societal needs are high or in special situations (such
as in the case of natural disasters etc.).
CSR expenditure will include all expenditure incurred by the Company on CSR Programmes undertaken in
accordance with the approved CSR Plan. Surplus arising out of the CSR projects or programs or activities shall
not form part of the business profit of the Company.

Implementation of CSR Activities

Current CSR activities with their execution modalities and implementation schedules are appended as
Annexure. The Company may also undertake other CSR activities as may be appropriate from time to time.
The Company would implement the CSR programmes through Company personnel and partnerships with
expert agencies, NGOs and Government. In cases where the implementation is through external implementing
agencies, the Company would monitor the implementation.

Governance

The Company follows a structured governance procedure to monitor CSR activities.

The CSR Policy is governed by the Board of Directors. In terms of the Companies Act, 2013 the Board of
Directors have constituted the Corporate Governance and Social Responsibility Committee (CSR Committee)
to formulate and recommend to the Board of Directors the CSR Policy indicating activities to be undertaken as
specified in Schedule VII and the amount of expenditure for the CSR activities. The CSR Committee monitors
the CSR Policy of the Company from time to time. The CSR Department monitors the status of each project and
reports its findings to the CSR Committee periodically. In addition Independent Director(s) may visit one or
more projects, from time to time and report their findings to the CSR Committee.
The CSR Policy issued pursuant to the Act has been recommended by the CSR Committee of the Board of
Directors and approved by the Board of Directors and shall be placed on the Companys website
www.nestle.in.

Amendments

Amendments from time to time to the CSR Policy, if any, shall be considered by the Board of Directors based
on the recommendations of the CSR Committee.

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1.3RATIONALE
We are living in a world surrounded with numerous problems related to environment
andsociety. CSR (Corporate Social Responsibility) is a means to sort out these problems to
some extent because business is a part of society. Earning more and more profits is a natural
phenomenon of every business unit but social responsibility is an obligation to the people living
inside and outside the business organizations. Business comes in contact with various groups of
society such as owners, employees, customers, government, suppliers etc. The responsibility of
Business, which includes satisfaction of these parties along with the owner, is called social
responsibility of business. According to Steiner Social Responsibility implies recognition and
understanding of the aspirations of society and determination to contribute towards their
achievements. In spite of its current popularity, there are several issues which remained
pending and corporate need to be aware about them. Today, the society as a whole and media
increasingly request companies to consider social and environmental problems while
doingbusiness activities. CSR has become one of the catchphrases of new millennium across the
world and the corporate as well as government must take care of it. Today, Government has
also comes an initiative to control those business activities which makes a harmful effect on the
society.
The government suggested time to time to the business units that the corporate should enact
framework related to CSR i.e. its areas, investment, activities etc. and include them in the
vision, mission and strategic planning. CSR typically includes issues related to business ethics,
community engagement, global warming, water management, mange the use of natural
resources, human rights etc. So, in order to get sustainable development and to survive in this
competitive world, the organizations need to demonstrate a close and good relationship with
society.

Why do we need Corporate Social Responsibility?

Bridges the company with its consumer and investor: There is growing expectation from the
organizations to behave responsibly & CSR works as an Ethics Certificate for the same
Shifting paradigm of Consumer awareness: The Shift from corporate consumerism towards
'Green' and 'Ethical' consumerism has made the corporate to be green and ethical for consumer
acceptance.
Legislation: CSR covers Health &Safety, Environmental Protections, Sustainability surety and
helps visibility of Codes of Practice
Globalization: Adoption of 'Best Practice', Consumer & Legal Acceptance makes an easy way
through the global market and helps reorganization.

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1.4LITERATURE REVIEW

Goyder (2003) argues: Industry in the 20th century can no longer be regarded as a private
arrangement for enriching shareholders. It has become a joint enterprise in which workers,
Management, consumers, the locality, govt. and trade union officials all play a part. If the
system which we know by the name private enterprise is to continue, some way must be
Found to embrace many interests whom we go to make up industry in a common purpose.

Gupta, et.al. (2013) in a study on CSR in respect of CPSE in India, opined that, although most
of the Indian CPSEs has started implementation of social projects under CSR scheme
Even though some CPSEs are still not utilizing CSR fund on the ground that they have no
expertise in social field. Some CPSEs are also making excuses that this is not their core
activities.

PHD Chamber of Commerce (2013) in a Global Summit in CSR opined that, while the
introduction of CSR provision inthe Companies Act is a welcome step, however the current
Discourse of corporate philanthropy without giving any express autonomy to companies in
choosing their CSR activities may not yield the desired outcome. By allowing only selected
list of activities within the Schedule in a sectional manner may end up encouraging only a
passive participation by corporate towards CSR activities. In order to enable corporates to
participate fully in the philanthropy space, the participation must start with a more inclusive
management of CSR policies .

Rishi et.al. in a study on New Rules for CSR (2014) stated thatthere are several queries and
concerns of companies related to the applicability, implementation and likely impact of the
Clause 135 of the Companies Act, 2013. The MCA and others have undertaken series of
deliberations to understand their concerns. They suggested that companies now need to put in
place some compliance procedures and introduce an adequate governance framework.
Companies need to establish a CSR Committee to design CSR policy and identify projects
based on the proposed thematic areas. Companies will also have to monitor projects and
evaluate effectiveness and measure the impact created. All of these actions will be required to
be documented, reported and disclosed formally to all stakeholders.

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1.5 PROJECT OBJECTIVES
The primary objective of the study is to gain an insight about CSR activities by the
NESTLE INDIA LTD.
To gain knowledge about changes in Companies Act, 2013 regarding CSR activities.
To know the relevant provision regarding CSR activities.

1.6METHODOLOGY
The researcher has used primary data and secondary data. Primary data includes questions
asked by different customers availing Nestle products. Secondary data includes magazines,
internet, books, some market survey using marketing tools like asking question through phone,
etc.

The essential part of any report is research methodology. The field study was conducted to
analyze the implementation and importance of corporate social responsibility and understand
the corporate social relationship.

1.5.1 DATA TYPE

Data used of this report is mainly secondary data, which are collected second hand through books and
company magazines.

1.5.2 TOOLS USED

Graph,
Pie chart and
Tables.

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1.7LIMITATIONS OF THE STUDY

Constraint of time.

Lack of information of Nestle for 2016.

1.8CHAPTER PLANNING
The following project has been presented in form of the following chapters:-

Chapter 1: Introduction

The purpose of Introduction is to provide a basic description of the topic of the project
Corporate Social Responsibility and its importance. The background of the subjects builds a
platform for the next coming topics to be discussed. The Literature review indicates some
related theories to the topic already highlighted which gives importance to the project.
Objectives of the study are also defined in here. The methodology shows the steps which has
been taken for the completion and development of the project.

Chapter 2: Conceptual Framework

Conceptual frameworks are abstract representations, connected to the research project's goal
that direct the collection and analysis of data (on the plane of observation the ground).Here,
the national and international scenario of corporate social responsibility is shown and through
this, analysis can be done about how aware the global world is regarding the subject. The
impact amd effect of the topic is also shown.

Chapter 3: Data Analysis and Presentation

The process of evaluating data using analytical and logical reasoning

to examine each component of the data provided. This form of analysis is just one of the many
steps that must be completed when conducting a research experiment. Data of Nestle India from
various sources has been gathered, reviewed, and then analyzed to form some sort of finding or
conclusion. There are a variety of specific data analysis method, some of which include data
mining, text analytics, business, and data visualizations.

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Chapter 4: Conclusions and Recommendations

The interpretations are given of the significance of the findings of a research project along with
recommendations for action. These recommendations will be based on the research and on any
other relevant information available, including own past experience in a market or in business.
Conclusions and recommendations usually form an important part of a project brief and of any
report or documentation, and are a key part of the value offered to clients by
professional market research.

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 2. CONCEPTUAL
FRAMEWORK
2.1 NATIONAL SCENARIO
The Companies Act, 2013

In India, the concept of CSR is governed by clause 135 of the Companies Act, 2013, which
was passed by both Houses of the Parliament, and had received the assent of the President of
India on 29 August 2013. The CSR provisions within the Act is applicable to companies with
an annual turnover of 1,000 crore INR and more, or a net worth of 500 crore INR and more, or a
net profit of five crore INR and more. The new rules, which will be applicable from the fiscal
year 2014-15 onwards, also require companies to set-up a CSR committee consisting of their
board members, including at least one independent director. The Act encourages companies to
spend at least 2% of their average net profit in the previous three years on CSR activities. The
ministrys draft rules, that have been put up for public comment, define net profit as the profit
before tax as per the books of accounts, excluding profits arising from branches outside India.

The draft rules (as of September 2013) provide a number of clarifications and while these are
awaiting public comment before notification, some the highlights are as follows:

Surplus arising out of CSR activities will have to be reinvested into CSR initiatives, and this
will be over and above the 2% figure

The company can implement its CSR activities through the following methods: - Directly on
its own - Through its own non-profit foundation set- up so as to facilitate this initiative -
Through independently registered non-profit organizations that have a record of at least three
years in similar such related activities - Collaborating or pooling their resources with other
companies

Only CSR activities undertaken in India will be taken into consideration

Activities meant exclusively for employees and their families will not qualify

CURRENT STATE OF CSR IN INDIA

Companies have specialized Corporate Social Responsibility teams that formulate policies,
strategies and goals for their Corporate Social Responsibility programs and set aside budgets to
fund them. These programs are often determined by social philosophy which have clear
objectives and are well defined and are aligned with the main stream business. The programs

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are put into practice by the employees who are crucial to this process. Corporate Social
Responsibility programs ranges from community development to development in education,
environment and healthcare etc. For example, a more comprehensive method of development is
adopted by some corporations such as Bharath Petroleum, and Hindustan Unilever Limited.
Provision of improved medical and Sanitation facilities, building schools and houses, and
empowering the villagers and in process making them more self-reliant by providing Vocational
training and a knowledge of business operations are the facilities that these corporations focus
on. Many of the companies are helping other peoples by providing them good standard of
living. Kingfisher is Europe's largest home improvement retailer, with 1,300 stores and 9,000
employees in 16 countries. Its operating companies include BCC (The Netherlands), Promarkt
(Germany), VandenBorre (Belgium), Darty (France), Comet (UK), B&Q (UK), Kotas
(Turkey) and Rno-Dpt (Canada). At the end of 2001, Kingfisher unveiled a group-wide
initiative to monitor, improve and report on corporate social responsibility issues at the level of
individual companies. The group has identified six ways in which it believes Corporate Social
Responsibility can help its business:
1. Being ready for the future: identifying and managing issues which have the potential to
affect the bottom line, either positively or negatively;
2. Respect for people: making Kingfisher companies attractive places to work, and thereby
retaining skilled staff;
3. Stores that communities welcome: maximizing customer loyalty and improving morale
among the workforce;
4. Product innovation: identifying 'green' products that consumers will want to buy;
5. Saving costs: recognizing that many CSR initiatives are largely good housekeeping, such as
reducing waste and retaining staff more effectively;
6. Brand: using innovation and excellence within individual operating companies to enhance
the reputation of the group as a whole.

2.2 INTERNATIONAL SCENARIO

Corporations, by which we mean medium to large-sized firms, businesses and companies, exist
primarily to make money. They are the instruments through which profitable activity is carried
out; they represent capitalism, therefore. The profit motive has often been characterized as
single-mindedly grasping and unconcerned about all other interests, as the 1920s cartoon on the
right shows. However, it is clear that the profit-making instruments are also the deliverers of
many desirable things for the community. Principally, they deliver goods and services of many
kinds. In the UK, for example, they provide our food, transportation, banking and insurance
services, holidays, entertainment and sources of information. In other countries, they provide
much wider ranges of services, including waste disposal, medical care, security and even
education. In the UK, their activities account for roughly 60 percent of spending, with
government spending accounting for the remainder.
What the UK government thinks about CSR
The government believes that CSR is about the behavior of private sector organizations and
their contribution to sustainable development goals.

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Essentially it is about how business takes account of its economic, social and environmental
impacts in the way it operates maximizing the benefits and minimizing the downsides.
Specifically, we see CSR as the voluntary actions that business can take, over and above
compliance with minimum legal requirements, to address both its own competitive interests and
the interests of wider society.
In the United States, the idea of corporate social responsibility appeared in the early part of the
twentieth century. Corporations at that time came under attack for being too big, too powerful,
and guilty of anti-social and uncompetitive practices. Critics tried to curb corporate power
through antitrust laws, banking regulations and consumer protection laws. Faced with this kind
of social protest, a few far-sighted business executives advised corporations to use their power
and influence voluntarily for broad social purposes, rather than for profits alone. This approach
appealed to those who opposed more government restrictions on business because it allowed
business to retain its power and influence while meeting some of societys demands.
Source: Frederick, W. C., Post, J. E. and Davis, K. (1992) Business and society: corporate
strategy, public policy and ethics.
Philanthropic foundations
Some large corporations moved to the idea of foundations: charitable and philanthropic
NGOs which distributed funds to worthy causes while keeping the brand name in public view.
The first was that of John D. Rockefeller Seniors foundation in 1906. Rockefeller admired
Carnegies actions, and advisers told him that his fortune was rolling up so fast his heirs would
dissipate their inheritances or become intoxicated with power, unless he set up permanent
corporate philanthropies for the good of Mankind. The Rockefeller Foundation has distributed
over $14 billion (at todays values) to a wide range of causes and individuals. It still continues,
with J. D. Rockefeller III devising the term venture philanthropy in 1969. Venture
Philanthropy has aims which tie in with the triple bottom line idea.

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 3. DATA ANALYSIS AND
PRESENTATION
3.1 ANALYSIS OF NESTLES CSR ACTIVITIES

Nutrition, Health, and Wellness

Actions taken by Nestle
Nestle opened a new Clinical Development Unit to support their research and streamline the
way they evaluate the impact of their foods and ingredients on human biology, health, taste
and pleasure
The Nestl Research Center (NRC) has published new research, exploring ways in which
human behavior towards food influences dietary choices
Nestle launched new health economics studies in order to better understand how to
maximize the health return on costs for nutritionally-vulnerable consumers buying
fortified products
Nestl Health Science has developed an eating assessment tool that can help healthcare
professionals and careers identify dysphagia problems early in at-risk patients
Nestle have launched new biofortification research in Cte dIvoireGuideline Daily
Amounts (GDA) now appear on 99% of products in the EU region
Nestle studied the latest food guides and dietary recommendations from authorities
around the world and, for each of their product categories, identified appropriate portion
size ranges tailored to different ages and life stages

Nestle performance
Nestle renovated 6692 products for nutrition or health considerations
They provided Nutrition Quotient (NQ) training for 226,000 employees since2007
They Healthy Kids Global Programmed reached 5.4 million children in 2012
They sold 100 billion servings of iodine-enriched Maggi products worldwide in 2012

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 They have also initiated an iron fortification programme in India, Pakistan, Sri Lanka,
the Caribbean, Central America, Central and West African countries and the Pacific
Islands.
In 2012, around 32 billion individual servings of Nestlproducts included iron
fortification
In just one year, the Nestl Institute of Health Sciences (NIHS) has established several
science and technology platforms and has set research projects underway, all broadly
focused on how nutrition and genetics influence health and disease

Rural Development and reasonable sourcing

Actions taken by Nestle
Nestle developed a new Rural Development Framework which will start to rollout in
2013. They had a goal to roll out the Rural Development Framework to 21 countries
by 2016 Nestle launched Responsible Sourcing Guidelines for sugar
They are the first food company to partner with the Fair Labor Association
They updated the Commitment on Child Labour in Agricultural Supply Chains in
three key commodity areas: cocoa, hazelnuts and vanilla
Our performance
They provided services worth USD 37.8 million to assistmore than 44 000 farmers
They provided direct financial assistance totaling USD23 million to farmers
They now employ more than 1 180 agronomists and 12 000support staff to provide
advice, training and technical assistance for farmers
They trained 273 808 farmers through their capacity building programmes.

Developing dairy farmers in Moga, Punjab

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 Empowering Women

Water
Topic How Progress Future
Improve water The Nestl Policy on Water withdrawals down Revised Commitment
efficiency Environmental 29% document
Sustainability 2002 to 2012 to be published 2013

Improve water Nestl Commitments on Water discharges down By 2016, reduce water
stewardship outside Water (2006) by 45% withdrawal
factories Nestl Environmental 2002 to 2012 per tonne of product by
Management System 40% vs. 2005

They are working with the International Water Management Institute and the Water Resources
Group to identify areas where local initiatives for better water management in agriculture can be
developed.The ongoing work to set up Clean Drinking Water facilities in village schools,
sanitation facilities for girl students, and water education programmes for these students are
being widely appreciated by the local communities.

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 Clean Drinking Water Projects in village schools.

Actions taken by Nestle

Nestle continued the work to address water challenges with partners that include the
2030 Water Resources Group, the UN Global Compact CEO Water Mandate, the
Water Footprint Network and the Alliance for Water Stewardship
They worked with suppliers to promote good water management through the
Sustainable Agriculture Initiative at Nestl (SAIN)
They also incorporated guidelines on water into their Responsible Sourcing
Guidelines
They conducted 16 additional Water Resource Reviews at their factories
They contributed to helping communities around the world address water issues
following natural disasters
Nestle performance
They reduced water withdrawals by 53% per tonne of product since 2002
They reduced water discharges by 64% per tonne of product since 2002
They recycled 6.9 million cubic metres of water this year
Nestle have run over 489 water-saving projects in their factories saving 6.5 million
m3
They also launched 217 clean drinking water projects in the South Asian region,
Helping to improving access and sanitation for more than 100 000 students
In village schools across several countries.

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Environmental Sustainability
Actions taken by Nestle
Nestle completed Life Cycle Assessments for all their product categories
They started the roll-out of an eco-design tool called EcodEX, which they will use to
assess and optimize environmental sustainability holistically across the entire value
chain
They promoted best practice through the Sustainable Agriculture Initiative at Nestl
(SAIN) and continued implementation of our Responsible Sourcing Audit and
Responsible Sourcing Traceability programmes
They completed 36 projects through our Energy Target Setting Initiative this year
(investing a total of CHF 82 million) saving circa 173 000 tonnes CO2eq.
They approved investment of more than CHF 120 million in environmental
improvements in their factories worldwide
They launched their Beyond the Label initiative to give consumers more
productionformation
Nestle performance
Nestle run Sustainable Agriculture Initiative Projects (SAIN) in 46 countriesincluding
Brazil, Ecuador and Kenya
They audited 2 261 of first-tier suppliers
In 2012, they purchased 80% certified sustainable palm oil (13% traceableRSPO
certified oil and 67 % Green Palm certificates)
They launched Responsible Sourcing Guidelines for fish and seafood, dairy, meat and
poultry
They halved their direct GHG emissions and water withdrawal per tonneofproduct
since 2002
They reduced their energy consumption by 38% per tonne of product since 2002
Nestle now have 39 factories contributing zero waste to landfill
In 2012, 418 factories, 130 distribution facilities and 24 R&D centres were certified
ISO 14001:2004
They phased-out more than 92% of refrigerants with high global warming and ozone
depleting potential in our industrial operations

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Deforestation
Nestle stand for
Nestle believe that the destruction of tropical rainforests and peat lands to cultivate crops is one
of the most serious environmental issues facing us today. However, as they do use some raw
materials, which have been linked with deforestation and loss of biodiversity, such as palm oil,
and they are committed to ensuring that the raw and packaging materials they source are not
associated with any damage to existing rainforests.
They have identified palm oil, paper and board, and soya as the three priority raw materials in
their combat against deforestation, so in this section I report on Nestle actions on these three
materials.

What Nestle is doing

Palm Oil
Nestlerecognise that to achieve no deforestation they must work with all agents in
The supply chain, from plantation owners, processors and suppliers all the way to
The consumer. Their Guidelines ask their suppliers to source oil from plantations that:
Are legally compliant.
Respect the free, prior and informed consent of local and indigenous communities.
Respect high conservation values (HCVs).
Protect peat lands.
Protect high carbon stock forests.
Respect all other RSPO principles and criteria.
How Nestle have performed:-

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Palm oil purchases from sustainable sources (including
Green Palm certificates)
2012: 80% of which 13% segregated RSPO oil
2011: 54%
2010: 20%

Animal Protection
What Nestle is doing

Responsible Sourcing Audit Programme

As part of their Responsible Sourcing Audit Programmed, key vendors that supply them with
animal derived ingredients are audited against the Sedex Members Ethical Trade Audit
(SMETA), a set of leading ethical practice guidelines developed by the Sedex Associate Audit
Group.

Training farmers on animal health and welfare in Farmer Connect milk districts
Animal health and welfare is also part of the RISE sustainability assessment that Nestle have
been carrying out in our milk districts in 18 different countries for more than 10 years. This
assessment incorporates animal health and welfare into the overall sustainability perspective of
farming systems. Animal health and welfare is also included in the training package that they
provide to dairy farmers worldwide. In 2012, more than 24 000 farmers were trained on animal
health and welfare topics in at least 19 countries where we have fresh milk sourcing operations.

Responsible Sourcing Guidelines now addressing animal welfare

Nestle Supplier Code already requires their suppliers to comply with all applicable laws and
regulations, including animal welfare legislation. They also expect their suppliersto
communicatethese requirements to their own suppliers, back to the farm level. Going beyond
legal obligations, in 2012, we established the Nestl Commitment on Farm Animal Welfare.

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3.2NESTLE ANNEXURE ON CSR ACTIVITIES
Nestl India Corporate Social Responsibility Activities

Programmes/Activities/Initiatives Schedule VII, Modalities of Implementation Key outcomes

Section 135 Execution Schedule
Companies
Act, 2013
Nutrition Awareness
The Company aims to create awareness (i) In collaboration The programme Change in knowledge,
regarding nutrition, good cooking with external is conducted attitudes and practices of
practices, good hygiene and the agency: basis the school students
importance of physical activity among Academic year starting Number of students covered
children in schools particularly village Universities Apr June and
Schools through various programmes. The ending Dec- Jan.
school based programme/s will involve
students receiving focused nutrition
training and will be based on a multi-
partnership approach in collaboration with
leading regional universities, NGOs and
Other stakeholders. This will enable joint
development and regional customization
Of the content.
The Company aims to create awareness (i) In collaboration The programme Change in knowledge,
about nutrition and healthy habits, with external is conducted in attitudes and practices of
importance of food, water and personal agency: accordance with students
hygiene, utilising health services and the Universities; the school year Number of students covered
importance of physical activity. These NGO starting Apr
programmes will be designed for school June and ending
going children and conducted in partnership Dec- Jan.
with NGOs/experts/government based on
the learning through sports and conducted
in the schools. Each child will receive
specified hours of training throughout the
year.
The Company aims to reach out to (i) Directly; In Throughout the Knowledge increment
children with access to the internet and collaboration year Number of students covered
engage them in learning about nutrition with NGO
and healthy habits through various
Programmes. The programme/s will be
interspersed with activities and quizzes
which test the knowledge of students as
they go through it.
The Company aims to improve the (i) In collaboration Throughout the Change in breastfeeding
nutrition, health and wellness of infants with external year behaviours
through early initiation of breastfeeding agency: NGO Metrics including: number
and promotion of exclusive breastfeeding persons covered, number of
until 6 months of age among marginalised infants breastfed within first
communities in slum areas through its hour, number of infants
variousProgrammes. The programme will exclusively breastfed for 6
be developed in partnership with NGOs months etc.
and designed to reach out primarily to
pregnant women in the third trimester and
lactating women.

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Programmes/Activities/Initiatives Schedule VII, Modalities of Implementation Key outcomes
Section 135 Execution Schedule
Companies
Act, 2013
Water and Sanitation
Sanitation Projects: Construct sanitation (i) Directly; In Throughout the Number of students
facilities for girl students in rural schools to collaboration year benefitted
encourage attendance. Through this with NGO Number of facilities
initiative, the Company endeavours to constructed
facilitate and remove what is considered to
be the major cause of dropout rate among
girl students in village schools.
Clean Drinking Water Projects: The (i) Directly; In Throughout the Number of students
Company aims to construct drinking water collaboration year benefitted
facilities in schools which lack access to with NGO Number of facilities
drinking water by helping drill water wells constructed
and constructing storage tanks. The
sourced water will be stored in hygienic
tanks enclosed in a specially designed
facility to preserve the quality of the water.
Water awareness for students: The (iv) Directly; In Throughout the Number of students covered
Company aims to create awareness collaboration year
among students regarding water with NGO.
conservation and protection of water
resources to ensure the responsible
utilisation of water for a sustainable future.
Water awareness for farmers: The (iv) Directly Throughout the No of farmers reached
Company aims to create awareness about year
the benefits of direct seeding of paddy and
other methods to save water in agriculture
in collaboration with the Universities /
Experts / NGOs / Government.
Environment
Fuel from Plastic: The Company aims to (iv) In collaboration Throughout the Number of households
undertake a waste separation, waste with external year reached through awareness
management and community awareness agency: Govt programme
programme/s in collaboration with the and NGO Training to local authorities
local authorities and NGOs. and implementation of
waste separation.
Employee Volunteering Programme
Employees engage with children from (i) In collaboration Regular Number of employees
marginalised communities and in creating with external volunteering/ hours spent
awareness about nutrition, healthy habits agency: NGO
and good hygiene through sports and
other activities.
Relief funds/ efforts
Contribution to Relief funds or efforts set (viii) Directly As and when Funding in cash or kind
up by the Central Government for socio- required
economic development and relief and
welfare of the Scheduled Castes, the
Scheduled Tribes, other backward
classes, minorities and women.

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3.3COMPARISON OF NESTLE WITH OTHER
COMPANIES
Case studies:-

NESTLE vs. CADBURY

Nestl
Governance
The CSR Policy is governed by the Board of Directors. In terms of the Companies Act, 2013
the Board of Directors have constituted the Corporate Governance and Social Responsibility
Committee (CSR Committee) to formulate and recommend to the Board of Directors the CSR
Policy indicating activities to be undertaken as specified in Schedule VII and the amount of
expenditure for the CSR activities. The CSR Committee monitors the CSR Policy of the
Company from time to time. The CSR Department monitors the status of each project and
reports its findings to the CSR Committee periodically. In addition Independent Director(s) may
visit one or more projects, from time to time and report their findings to the CSR Committee.
Market
Group sales CHF 92.2 billion+2.7%. Organic growth- 4.6% Real Internal Growth- 3.1%

Cadbury is a leading global confectionery company with an outstanding portfolio of

chocolate, gum and candy brands. We employ around 50,000 people and have direct operations
in over 60 countries, selling our products in almost every country around the world
Corporate Governance
In managing the affairs of the Group, the Board of Cadbury is committed to achieving high
standards of business integrity, ethics and professionalism across all its activities. As a
fundamental part of this commitment, the Board supports the highest standards of corporate
governance. To help achieve this, the Board has approved a set of Corporate Governance
Principles. These principles set out our approach to this area, and also provide a summary of our
current position.
Our Markets
Globally, confectionery is growing at around 5% p.a, although developed markets, which
account for two thirds of the global market, only grew 3% p.a. in recent years. Premium and
wellness products, such as high cocoa solids chocolate and functional and sugar-free gum and
candy, are driving growth in these markets. Emerging markets exhibit a much higher growth
rate - around 10% in the last few years. The drivers in these markets are population growth and
increasing affluence.

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 NESTLE vs. AMUL
AMUL is Asias no. 1 and worlds second number co-operative dairy. It has large market and dairy
network in every state of India and across the India, like central Asian countries, Bangladesh,
Thailand, Indonesia, Malaysia, Singapore, etc. It was started with 250 liters of milk and 2
societies and now, it produces 10 lakhs litters milk per day and has 1113 societies and more
than 6 lakes farmer members. It produces milk and milk products. The main motto of AMUL is
to help farmers. Farmers were the foundation stone of AMUL. The system works only for
farmers and for consumers, not for profit. Corporate Social Responsibility held by
Amul

Corporate social responsibility (CSR) has been defined as the commitment of Business to contribute to
sustainable economic development working with employees, their families, the local
community, and society at large to improve their quality of life, in ways that are both good for
business and good for development.
To meet with the CSR it is expected that a business in its entire procurement-production
processing-marketing chain should focus on human development involving the producer, the
worker, the supplier, the consumer, the civil society, and the environment.
Nestle
Market Cap $239.58 B

At a Glance Forbes Lists

Industry: Food Processing #41 World's Most Valuable Brands
Founded: 1866 #36 Global 2000
Country: Switzerland #63 in Sales
CEO: Paul Bulcke #45 in Profit
Website: www.nestle.com #196 in Assets
Employees: 333,000 #11 in Market value
Sales: $99.41 B
Headquarters: Vevey

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 CORPORATE SOCIAL
RESPONSIBILITY (CSR)
EXPENSE
2014-2015
2015 2014
(` in million) (` in million)
Prescribed CSR expenditure as per Section 135 of the Companies Act, 2013 332.9 307.0

Details of CSR spent during the financial year

(a) Total amount planned to be spent during the year (1) 235.0 153.5
(b) Actual spent during the year (2) 206.1 85.1
(c) Amount unspent (a-b) 28.9 68.4
(to be spent in subsequent year)
(1) 2015 includes ` 68.4 million pertaining to unspent CSR expenditure of year 2014

(2) Amount paid for

- acquisition/ construction of assets Nil Nil

-other purposes 193.1 72.8

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 4. RECOMMENDATIONS AND
CONCLUSION
4.1RECOMMENDATIONS
1. SMALLER COMPANIES CAN INVEST IN CSR MORE TO GAIN
REPUTATION
2. MONITORING ON CSR OF COMPANIES BY GOVT.
3. MORE WATER AND DRAINAGE FACILITIES ACCROSS THE VILLAGES
BY PLANT OWNERS
4. FORMAL TRAINING TO VILLAGE PEOPLE FOR SELF EMPLOYMENT.
5. FOCUS ON WOMAN EMPOWERMENT
6. SUSTAINABLE LIVING

Recommendations for businesses in order to engage in CSR activities with an increased level
of efficiency:

a) Achieving increased level of cooperation between the various departments of the business
in terms of achieving CSR related aims and objectives;

b) Engagement in strategic use of social investment budget;

c) Introducing CSR aspects of the business at the initial stages of the project and integrating
it with long-term aims and objectives;

d) Specifying the activities of stakeholder identification and engagement as a continuous

process;

e) Ensuring the existence of CSR skills in all employees within the organization;

f) Implementing an effective audit/review system in terms of improving the quality of CSR.

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4.2 CONCLUSION

Organizations are coming to realize the bottom-line benefits of incorporating

sustainability into their DNA. Its beneficial for attraction and retention and its the right
thing to do. HR is a key organizational leader and can take the lead or partner with other
executives to work cross-functionally to integrate CSR objectives into how business gets
conducted. HR practitioners can act as translators of the organizations CSR
commitment vertically and horizontally across departments. Many will find they have a
new structure for their thinking they can apply practically in the workplace. Some will
believe the current economic downturn will put these ideas on the backburner until the
economy rebounds, while others think that organizations which abandon their CSR
integration in the downturn will lose ground and breed cynicism in brighter times.
Regardless of the point of view, all agree that effective HR leadership on CSR integration
requires Board, CEO and executive commitment to be successful. Indeed, the roadmap is
predicated on the assumption of this top level commitment.
The firm of the future is expected to have undergone significant transformation such that
CSR no longer becomes managed as a separate deliverable, but is part of the experience
of being an employee in an organization that lives its values. For human resource
professionals embarking on CSR or deepening their CSR experience, this roadmap can
help them understand their role in sustainability and CSR and how they can foster an
environment that embeds a CSR ethic in the way we do business around here.

In the ever changing markets Globalization and liberalization are the buzz words. In the age of
globalised world, the concept of CSR cant be ignored by the corporate firms. By keeping in

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mind the changing market scenario business firms have to change their work culture as per the
market demands. Previously we were fighting for the issues like labor laws, factory acts and
child labor. But we can see the paradigm shift in the relation of corporate house and workers.
Nowadays Firms and workers all together works as a family and work for achieving the
common goals. Profit sharing is the main agenda of the corporate houses. Those days have gone
when basic business of business is to earn profits only. In conclusion, the findings of this study
provide insights into an area of growing concern of firms towards society. Firms have been
doing great effort for the achievement of business goals and marring the business goals with
social responsibility practices. As per the changing market demands need of the hour is for the
development of CSR framework that has been imposed by the government. So that, we can
contribute to make better planet to live in.

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 5. BIBLIOGRAPHY
Suggested sites from Google.
www.google .com
www.Wikipedia.org
www.indiatimes.com
Company Reports

India Today ( Magazine & Website)

Times of India

The Telegraph

Internet for stats & general information

From our teachers

NESTLE official website (www.nestle.in)

NESTLE annual report

NESTLE CSR report

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