You are on page 1of 27

1. INTRODUCTION

1.1 EXECUTIVE SUMMARY

Project Title: A Project on Corporate Social Responsibility

A report on Nestlé India Limited

Name of the Organization: Nestlé India Limited

1. INTRODUCTION 1.1 EXECUTIVE SUMMARY Project Title: A Project on Corporate Social Responsibility A report on

[1]

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 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".

Nestlé India Corporate Social Responsibility Policy

Nestlé 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:

[2]

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 world’s 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 Government’s 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 Company’s 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.

[3]

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.

1.3 RATIONALE We are living in a world surrounded with numerous problems related to environment andsociety.

[4]

1.4LITERATURE REVIEW

1.4 LITERATURE REVIEW Goyder (2003) argues: • Industry in the 20th century can no longer be

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.

[5]

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.

1.5 PROJECT OBJECTIVES  The primary objective of the study is to gain an insight about

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.

[6]

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.

[7]

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.

[8]

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 ministry’s 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

[9]

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), Koçtas (Turkey) and Réno-Dépôt (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’.

[10]

“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 society’s 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 NGO’s which distributed funds to worthy causes while keeping the brand name in public view. The first was that of John D. Rockefeller Senior’s foundation in 1906. Rockefeller admired Carnegie’s 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 today’s 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.

“Essentially it is about how business takes account of its economic, social and environmental impacts in

[11]

3. DATA ANALYSIS AND PRESENTATION

3.1 ANALYSIS OF NESTLE’S CSR ACTIVITIES

3. DATA ANALYSIS AND PRESENTATION 3.1 ANA LYSIS OF NESTLE’S CSR ACTIVITIES Nutrition, Health, and Wellness

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 Nestlé 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 Nestlé 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 Côte d’IvoireGuideline 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

[12]

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 Nestléproducts included iron fortification In just one year, the Nestlé 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

Our performance

They updated the Commitment on Child Labour in Agricultural Supply Chains in

three key commodity areas: cocoa, hazelnuts and vanilla

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.

They have also initiated an iron fortification programme in India, Pakistan, Sri Lanka, the Caribbean, Central

Developing dairy farmers in Moga, Punjab

[13]

They have also initiated an iron fortification programme in India, Pakistan, Sri Lanka, the Caribbean, Central
Empowering Women Water Topic How Progress Future Improve water The Nestlé Policy on Water withdrawals down

Empowering Women

Water

Topic

How

Progress

Future

Improve water

The Nestlé Policy on

Water withdrawals down

Revised Commitment

efficiency

Environmental

29%

document

Sustainability

  • 2002 to 2012

to be published 2013

Improve water stewardship outside

Nestlé Commitments on Water (2006)

Water discharges down by 45%

By 2016, reduce water withdrawal

factories

Nestlé Environmental Management System

  • 2002 to 2012

per tonne of product by 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.

[14]

Clean Drinking Water Projects in village schools . Actions taken by Nestle  Nestle continued the

Clean Drinking Water Projects in village schools.

Clean Drinking Water Projects in village schools . Actions taken by Nestle  Nestle continued the

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 Nestlé (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.

[15]

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 Nestlé (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 productionformation

Beyond the Label initiative to give consumers more

Nestle performance

Nestle run Sustainable Agriculture Initiative Projects (SAIN) in 46 countriesincluding

Nestle now have 39 factories contributing zero waste to landfill

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

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

[16]

Deforestation Nestle stand for Nestle believe that the destruction of tropical rainforests and peat lands to

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:-

[17]

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 Nestlé Commitment on Farm Animal Welfare.

[18]

3.2NESTLE ANNEXURE ON CSR ACTIVITIES

Nestlé 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

Of the content.

 
  • (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 Schools through various programmes. The

Universities

Apr June and 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

The Company aims to create awareness

year.

 
  • (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 going children and conducted in partnership 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

June and ending Dec- Jan.

The Company aims to reach out to

they go through it.

  • (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

The Company aims to improve the

lactating women.

 
  • (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 until 6 months of age among marginalised communities in slum areas through its variousProgrammes. The programme will be developed in partnership with NGOs

persons covered, number of infants breastfed within first hour, number of infants exclusively breastfed for 6 months etc.

and designed to reach out primarily to pregnant women in the third trimester and

[19]

Programmes/Activities/Initiatives

Schedule VII,

Modalities of

Implementation

Key outcomes

Section 135

Execution

Schedule

Companies

Act, 2013

Water and Sanitation

       

Sanitation Projects: Construct sanitation

girl students in village schools.

(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

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 drinking water by helping drill water wells 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.

with NGO

• Number of facilities constructed

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 conservation and protection of water resources to ensure the responsible

with NGO.

utilisation of water for a sustainable future.

       

Water awareness for farmers: The

Experts / NGOs / Government.

(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 /

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

other activities.

(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

Relief funds/ efforts

       

Contribution to Relief funds or efforts set up by the Central Government for socio- economic development and relief and welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women.

(viii)

Directly

As and when required

• Funding in cash or kind

[20]

3.3COMPARISON OF NESTLE WITH OTHER COMPANIES

Case studies:-

NESTLE vs. CADBURY Nestlé

3.3 COMPARISON OF NESTLE WITH OTHER COMPANIES Case studies:- NESTLE vs. CADBURY Nestlé Governance The CSR

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.

[21]

NESTLE vs. AMUL

AMUL is Asia’s no. 1 and world’s 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

Nestle

supplier,

the

consumer,

the

civil

society,

and the environment.

Market Cap $239.58 B

At a Glance Industry: Food Processing Founded: 1866 Country: Switzerland CEO: Paul Bulcke Website: www.nestle.com Employees: 333,000 Sales: $99.41 B Headquarters: Vevey

Forbes Lists

NESTLE vs. AMUL AMUL is Asia’s no. 1 and world’s second number co -operative dairy. Itwww.nestle.com Employees: 333,000 Sales: $99.41 B Headquarters: Vevey Forbes Lists # 41 World's Most Valuable Brands #36 Global 2000 #63 in Sales #45 in Profit #196 in Assets #11 in Market value [22] " id="pdf-obj-21-74" src="pdf-obj-21-74.jpg">

[22]

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

[23]

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.

[24]

4.2 CONCLUSION

4.2 CONCLUSION • Organizations are coming to realize the bottom-line benefits of incorporating sustainability into their

Organizations are coming to realize the bottom-line benefits of incorporating sustainability into their DNA. It’s beneficial for attraction and retention and it’s 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 organization’s 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 can’t be ignored by the corporate firms. By keeping in

[25]

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.

mind the changing market scenario business firms have to change their work culture as per the

[26]

5. BIBLIOGRAPHY

  • 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

  • 5. BIBLIOGRAPHY  Suggested sites from Google.  www.google .com  <a href=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 [27] " id="pdf-obj-26-45" src="pdf-obj-26-45.jpg">

    [27]