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April 7, 2013

Nestle creates shared value (CSV) to add value for company and society

by kailindong


Currently more and more companies establish Corporate Social Responsibility (CSR) Department to improve brand image and social influence by investing education institute in remote areas, purifying water in Africa and launch charity campaign for children. However many programs are revealed to be low efficient and lack of management, which will be a resources wasting rather than problem solving. Unilever chief marketing officer claimed that CSR departments are redundant and companies should wove social responsibility needs into the DNA of a company and it’s not enough just to put a rosy picture in annual report to demonstrate investment in a project in Africa in order to show it’s a caring company. Without government support,the initiative of company will be weaken and lead to formalism. Therefore more and more companies have realized the inefficiency of CSR issues and shift their attention to a new concept: Creating Shared Value. In Customer Value Analysis class, I learnt the new concept and the Nestle CSV examples. “Creating Shared Value begins with the understanding that for our business to prosper over the long term, the communities we serve must also prosper.” From the quotation, I find that Nestle aims to combine corporate benefit with social prosperity by taking advantage of their own business not only simply and blindly to do the “charity things”. Take the farmer programs as an example. Nestle interact with more than 690,00 farmers (mainly milk and coffee). The program is committed to the local sourcing of raw materials, offering technical assistance and ensuring cooperation to meet the highest sourcing standards. They also have close relationships with farmers through long-term suppliers. The program not only help Nestle establish a stable and high quality supplier system, which mitigate risks to business, reduce cost and raise reputation, but also help farmers to be accessible to the latest agricultural techniques and realize sustainable development.  

Learn more about Nestle CSV at:


Karen Dong


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