Nestle is Creating Shared Value
We watched a video in class that talked about what Nestle is doing to help various ingredient producers in rural areas to grow their businesses and to get the most output from their lands. Nestle is really taking this sort of aid to a different level, though. What Nestle is doing is focusing on three areas: Rural development, water, and nutrition and they are trying to create “shared value” in these areas. This means that they are committing to improve or help in these areas, while also creating value for themselves and their customers. For example, in term of nutrition, they are improving the ingredients in their existing products to meet health and nutrition standards. Not only does this help the consumer just in terms of better food, but it also increases their sales and benefits Nestle themselves.
This idea of creating shared value has really gained traction recently. Before, I think many people believed it to be impossible to truly benefit all sides (the business, the community, and the consumer…someone always had to lose, right?) but we see that it is possible to do all of these things. Hopefully more companies, especially large ones with operations in many countries and lots of resources, will follow Nestle’s example and start to think of ways to create shared value instead of only value for themselves. The link to the full article is below: