Nestlé Prize in Creating Shared Value

Frequently Asked Questions

What is the Nestlé Prize in Creating Shared Value?

The Nestlé Prize in Creating Shared Value (‘Nestlé CSV Prize’) is awarded in alternate
years to an individual, NGO, or small business to encourage and reward an outstanding
innovation or project in the area of water, nutrition or rural development.
The Nestlé CSV Prize seeks to support outstanding projects or innovations that aim to
improve access to or the management of water, that improve the lives of farmers and
rural communities, or that bring improved nutrition to populations suffering from
nutritional problems.
Specific fields of achievement include, but are not limited to: agriculture, including
extension services and use of new technologies; food science and technology; nutrition
education programmes; water management; protection of water resources, etc.

The first Nestlé CSV Prize was awarded in 2010.

What is meant by Creating Shared Value?

Creating Shared Value is the concept at the heart of how Nestlé runs its business. For a
business to be successful in the long term, it must create value not only for its
shareholders but also for society. At Nestlé we recognise that our success means creating
value for everyone we touch.
Creating Shared Value encourages each organisation applying the concept to create
economic and social value simultaneously by focusing on the social issues that each is
uniquely capable of addressing.
A company consciously identifies areas of focus, where shareholders’ interest and
society’s interest strongly intersect, and where value creation can be optimised for both.
As a result, the company invests resources, in terms of both talent and capital, in those
areas where the potential for joint value creation is the greatest, and seeks collaborative
action with relevant stakeholders in society.
At Nestlé, we have analysed our value chain and determined that the areas of greatest
potential for joint value optimisation with society are water, rural development and
nutrition.
Examples of how Nestlé creates shared value can be found on:
http://www.nestle.com/csv

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Why was the Nestlé Prize in Creating Shared Value launched?

Creating Shared Value is a way of thinking which is available to any organisation which
wants to utilise it.
The Nestlé CSV Prize seeks to encourage others from the private and not-for-profit sector
to realise the potential of Creating Shared Value. There are many examples of Creating
Shared Value in practice or in planning in both sectors and we aim to incentivise
development of the best examples worldwide

Who or what kind of organisations are eligible for the Nestlé CSV Prize?
Individuals, public or private organisations, such as not-for-profit organisations, non-
governmental organisations, foundations, governmental organisations, small businesses,
social enterprises, universities, research institutes, are eligible for the Nestlé CSV Prize.
The area of focus of the project must be in either of the following fields: water, nutrition
or rural development.
Applicants may be based in any country of the world; however, their project or
innovation must be implemented in a developing country.
All applications must be submitted in English.

Can an individual or organization self-nominate?

Yes. Applicants to the Nestlé CSV Prize can either self-nominate or be nominated by
others who are familiar with their work. In either case, the nomination process is the
same. Nominations must be submitted through the official Nomination Form available
online at www.nestle.com/CSV/CSVPrize or upon request at CSVPrize@nestle.com.

What about Nestlé employees? Are they eligible to nominate an organisation or

project for the Nestlé CSV Prize?
Nestlé employees are not eligible to participate themselves and cannot directly nominate
a worthy project. They are, however, encouraged to refer potential entrants in the
competition to the Nestlé CSV Prize Secretariat (CSVPrize@nestle.com) who will contact
the organisation or project.
They can also encourage an organisation to self-nominate.

What is the value of the Prize?

Nestlé commits to the Prize Laureate an investment of up to CHF 500,000 (approximately
USD 480,000) to assist in the development and scaling up of the project or innovation
and to make it available to others. The investment by Nestlé to the Prize Laureate will
likely occur over a specified period of time.
The Prize Laureate will also benefit from the worldwide recognition and publicity it will
receive by being awarded the Nestlé CSV Prize at the Creating Shared Value Forum, an
event gathering world’s experts and key opinion leaders in the areas of nutrition, water
and rural development.

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How does the Nestlé CSV Prize distinguish itself from other prizes and awards?

Worldwide, there are numerous awards, prizes and recognition for worthwhile causes and
efforts. Most recognize past achievements but do little to assist worthwhile efforts in their
quest to scale up and become more available to others.
The Nestlé CSV Prize recognises successful, innovative endeavours in the areas of water,
nutrition and rural development and lends crucial financial assistance to ensure that the
work can endure, benefit more people and communities and become sustainable. This is
the living legacy that only an investment can create.

How is the Nestlé CSV Prize Laureate selected?

The Nestlé Creating Shared Value Advisory Board – an international independent body
comprised of recognised experts in corporate strategy, nutrition, water and rural
development – determines the Nestlé CSV Prize Laureate after receiving a short-list of up
to six finalists from the Screening Committee.
The Screening Committee is divided into three subcommittees (for water, nutrition and
rural development), each of which is comprised of two Nestlé staff experts and three fair-
minded and knowledgeable external individuals in the three areas of focus of the Prize.
Each subcommittee selects up to two finalists and makes recommendations to the Nestlé
Creating Shared Value Advisory Board.
More information about the Nestlé Creating Shared Value Advisory Board is available at:
www.nestle.com/CSV

Might there be more than one winner?

Exceptionally. At the discretion of the Creating Shared Value Advisory Board, more than
one Prize Laureate may be selected. If a decision is made to award the Prize to more
than one winner, then winning entries will share the Prize purse.

What are the criteria against which entries are judged?

The Nestlé CSV Prize is awarded to the entry that best fulfils the following requirements,
as determined by the Nestlé Creating Shared Value Advisory Board:
• Innovation
• Has demonstrated measurable results on a pilot or small-scale basis
• Is judged to be feasible on a broad-scale basis or applicable to other communities
• Has high promise of improving access to nutrition, improving rural development,
or having significant impact on water management or access to clean water
• Is built on a sound and viable business model
• Has the capacity to incorporate and leverage an investment by Nestlé
• Exemplifies the concept of Creating Shared Value
• Is environmentally sustainable
• Complies with all applicable laws and regulations

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How can an organisation or project distinguish itself from other applicants?

The Nestlé CSV Prize Laureate will have to demonstrate that if fulfils all the criteria set
out above and that the project merits the multi-year investment that winning the Prize
represents.
Determining criteria include the innovative aspect of the project, its measurable impact
and results to date, its long-term viability (beyond the lifespan of the Nestlé investment),
its capacity to create shared value, as well as the potential impact that the prize monies
will have in bringing the project to scale.

When is the Nestlé CSV Prize Laureate announced and the Prize awarded?
The Nestlé CSV Prize is awarded every other year at the Nestlé Creating Shared Value
Forum. The next Prize will be awarded in 2012.

Who is the first Nestlé CSV Prize Laureate?

International Development Enterprises (IDE) Cambodia is a non-profit organization
working primarily in rural areas and carrying out projects in agriculture and water &
sanitation.
It was awarded the first Nestlé CSV Prize in May 2010 for a project aimed at increasing
agricultural productivity and income for Cambodian smallholder farmers through the
delivery of high-quality agricultural inputs and technical advice to small-scale farmers
through a network of small private entrepreneurs, or Farm Business Advisors.
Creating Shared Value is at the very heart of this project. If the farmers are successful,
the Farm Business Advisors are successful. The system flourishes only if there is real
value being created at the farm level so everyone in the project is heavily invested in the
farmers’ success.

For more information about the Nestlé Prize in Creating Shared Value, visit:
www.nestle.com/CSV/CSVPrize

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