Social: procurement practice, Nestle helps to boost the economic

Social:
Product Responsibility

Nestle is a complex global company that
sell millions of goods daily in thousands of brands around the world and Nestle
is one of the world’s extensive purchasers of essential foodstuff. The value
chain of this large company can be brief into three fundamental steps such as
farming, sourcing, manufacturing and allocation, as well as products and
consumers. Moreover,
Nestle activities at every step of the value chain have the capability to bring
the social gain. Through its procurement practice, Nestle helps to boost the
economic standard of hundreds of thousands of farmers around the world. As a
result of its operation, the company has enhance the bar for food safety and
employment practices. For example, Nestle decreased
the quantity of salt in their leading Maggi Two Minute Noodles Kari by 31%. It
encourage consumers to complement Maggi noodles by increasing in fresh
ingredients such as greens and eggs. (Refer to appendix 5.1). (Nestle in
Society Report 2016)

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Environmental performance: Water and
Environment Responsibility

Food production and consumption make up
a large part of the world’s resources. As a liable of food and beverage
producer, Nestle continually try hard to make Nestle products not only
delicious, healthier but also adapted to the environment. Nestle guarantee that
their actions execute with local laws and regulations as well as Nestle
guidelines. All the manufacturing plants and the National Distribution Centre
have passed by ISO14001 in Environmental Management. Nestle work hard to
reduce the environmental impact at factories in Malaysia are tracks around the
world through central reporting software called Safety, Health and Environment
Performance Monitoring. For example, in 2016 Nestle enhanced their water
recycling program with wastewater plants and significant raised their
environmental management investment. Nestle invested almost RM10 million on
water recycling projects. (Refer appendix 5.2). (Nestle in Society Report 2016) 

Economic: Rural Development

In order to produce the foods and
beverages, Nestle depend the millions of farmers around the world to offer them
with farming raw materials. Nestle
are more tend to use locally materials that are generated on a sustainable
practices and Nestle also takes care of the welfare of their stakeholders,
including peasants, rural communities, small entrepreneur and providers. Besides,
the company’s key rural development procedures are deal farming initiatives.
As part of Nestlé’s providers,
farmers are actively involved in offer them with a steady and sustainable source
of income while offering a reliable, traceable and controllable origin of
farming raw materials for the products. This is where
consumers are raising care about product traceability. For instance, Nestle contract
farming consist of the long-term fresh chili project in Kelantan and the Kedah
rice planting plan. Nestle sustain the farmers by sharing better agricultural
practices to ensure that farmers provide fair market prices for high quality
produce. (Refer appendix 5.3). (Nestle in
Society Report 2016)

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