Business principles in action - nutritional labelling
A Nestlé case study

Page 1: Introduction

Consumers have higher expectations than ever before. They want products to match these expectations. They also want accurate, up-to-date and useful information about what they buy. In short, consumers want the facts. This growth of consumer power is known as consumerism. In the area of fast moving consumer goods(FMCG), marketing has become a specialised and complex process. When developing...
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Page 2: Ethics and business principles

Ethics In business, ethics are the moral principlesor values held by those within the organisation. These support and influence its decision-making. In order to be ethical in its operations, Nestlé's decisions are guided by a series of business principles. In order to be ethical in its operations, Nestlé's decisions are guided by a series of business principles. The well-being of...
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Page 3: The need to be responsible

Nestlé's business principles are central to its framework for corporate responsibility. This framework also enables it to Create Shared Value with suppliers, partners, customers and consumers across the world. Corporate responsibility involves Nestlé doing more than the regulations and laws require. This means that the individuals and organisations it does business with have more...
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Page 4: Corporate business principles as a form of social auditing

The purpose of corporate business principles is to influence how employees within the organisation behave. These principles and policies are given to everybody at Nestlé. These principles provide clear guidelines for employees. This helps them to make choices which reflect the company's ethical stance. As well as creating value for the company, Nestlé also creates value for the...
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Page 5: Communication

Measuring effectiveness of communications Nestlé spent considerable sums of money on a consumer communication campaign on GDAs. This was to make consumers aware of the new labelling system so that they would use it when choosing what to eat and buy. The campaign was evaluated by a market research company to help Nestlé understand how well the communications with consumers had worked...
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Page 6: Conclusion

This case study demonstrates that Nestlé's approach to responsible business is good business. By focusing on the development of GDA labelling, it shows how a market-orientated business can use its business principles to satisfy the needs of consumers. In the longer term, it is good for the business since it helps to Create Shared Value and allows Nestlé to connect positively with its...
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