Creating shared value in the supply chain
A Nestlé case study

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Page 1: Introduction

Nestle 17 Image 6Nestlé 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 of products every year to over 50 countries around the world.

Nestlé is a household name within the UK, producing some of Britain’s most popular brands such as KIT KAT®, NESCAFÉ®, SMARTIES®, GO CAT® and SHREDDIES®. Over one billion KIT KATs are produced in the UK every year.

Nestlé’s culture

Nestlé has a series of corporate business principles designed to guide the way in which the organisation and its employees operate. These principles are at the basis of Nestlé’s culture and aim to protect the trust of its consumers and other stakeholders. The principles and their associated policies are concerned with activities related to:

  1. consumers
  2. human rights and labour practices
  3. employees
  4. suppliers and customers
  5. the environment.

Nestle 17 Image 5Nestlé works within the secondary sector of industry, creating and supplying products to customers. It converts raw materials into finished goods for consumers to enjoy. Raw materials used in many of Nestlé’s products are sourced from the primary sector. For example, Nestlé brands such as KIT KAT, AERO® and SMARTIES contain cocoa sourced from cocoa farmers around the world.

Nestlé works with cocoa farmers in order to help them run profitable farms and eliminate child labour, whilst developing a sustainable supply of cocoa for Nestlé products.

This case study looks at the importance of applying the principles of corporate social responsibility to a business’ activities. It will demonstrate how Nestlé creates shared value within its cocoa supply chain to enhance the lives of cocoa farmers whilst also improving the quality of its products for consumers.

Nestlé | Creating shared value in the supply chain