Creating shared value in the supply chain
A Nestlé case study

Page 1: Introduction

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Nestlé is the world’s leading nutrition, health and wellness company. It employs around 330,000 people and has 461 factories in 83 countries around the world; almost half of these are in developing countries. In the UK, Nestlé employs more than 7,000 people across 19 sites. The company is one of the UK and Ireland’s major exporters, exporting over £300 million worth...
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Page 2: Corporate Social Responsibility

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In Business Studies curriculum terms, Corporate Social Responsibility (CSR) involves the business taking a broad view of its activities, looking beyond profits for shareholders and focusing on other stakeholders. A stakeholder is anyone that has an interest in or may affect the decisions and actions of a business. Stakeholders can be internal or external to the business. Internal stakeholders...
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Page 3: Creating Shared Value along the supply chain

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Supply chain activities transform natural resources and raw materials into finished products which are delivered to the end consumer. Each stage of the process adds value to the overall end product. Nestlé operates within complex supply chains. Its cocoa supply chain goes from cocoa bean to chocolate bar. This path starts with cocoa from farmers, who grow the crops; to cooperatives, which...
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Page 4: Benefits of responsible behaviour

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The Cocoa Plan is a clear example of Nestlé Creating Shared Value both for the company and for cocoa farmers, their families and their local communities. Through it, Nestlé benefits from ensuring the supply of high-quality and sustainably sourced cocoa for its products. It also ensures it supports the cocoa farming community development and meets certified ethical and environmental...
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Page 5: Communicating with stakeholders

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Effective communication with stakeholders is also an important element of responsible business behaviour. For Nestlé, engaging with stakeholders underpins Creating Shared Value. It enables it to identify emerging issues, shape its responses and continue to drive improvements in its performance. Topics raised by stakeholders are discussed with them in a variety of local and international...
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Page 6: Conclusion

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Creating Shared Value has enabled Nestlé to adopt a wider focus to its responsibilities. In doing so, it has been able to bring about a whole series of benefits to stakeholders, whether they are farmers and their communities, shareholders or consumers. The Cocoa Plan is Nestlé’s way of dealing with issues facing cocoa farmers and their communities. This is a long-term process...
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