priya project

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CONTENTS HISTORY INTRODUCTION VISSION & MISSION MAIN PRODUCTS HUMAN RESOURCE SAFETY AT WORK RECRUITMENT Training CAREER MANAGEMENT NESTLE SPIRIT CORPORATE BUSINESS RELATIONSHIPS AGRICULTURAL RAW MATERIAL CORPORATE SOCIAL RESPONSIBILITIES EARTHQUAKE RELIEFE REFRENCES History The key factor which drove the early history of the enterprise that would become The Nestlé Company was Henri Nestlé's search for a healthy, economical alternative to breastfeeding for mothers who could not feed their infants at the breast. In the mid-1860s Nestlé, a trained pharmacist, began experimenting with various combinations of cow's milk, wheat flour and sugar in an attempt to develop an alternative source of infant nutrition for mothers who were unable to breast feed. His ultimate goal was to help combat the problem of infant mortality due to malnutrition. He called the new product Farine Lactée

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Page 1: priya project

CONTENTS

HISTORY

INTRODUCTION

VISSION & MISSION

MAIN PRODUCTS

HUMAN RESOURCE

SAFETY AT WORK

RECRUITMENT

Training

CAREER MANAGEMENT

NESTLE SPIRIT

CORPORATE BUSINESS

RELATIONSHIPS

AGRICULTURAL RAW MATERIAL

CORPORATE SOCIAL RESPONSIBILITIES

EARTHQUAKE RELIEFE

REFRENCES

History

The key factor which drove the early history of the enterprise that

would become The Nestlé Company was Henri Nestlé's search for a

healthy, economical alternative to breastfeeding for mothers who

could not feed their infants at the breast.

In the mid-1860s Nestlé, a trained pharmacist, began experimenting with

various combinations of cow's milk, wheat flour and sugar in an attempt to

develop an alternative source of infant nutrition for mothers who were

unable to breast feed. His ultimate goal was to help combat the problem of

infant mortality due to malnutrition. He called the new product Farine

Lactée Henri Nestlé.

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Nestlé's first customer was a premature infant who could tolerate neither

his mother's milk nor any of the conventional substitutes, and had been

given up for lost by local physicians. People quickly recognized the value of

the new product, after Nestlé's new formula saved the child's life and within

a few years, Farine Lactée Nestlé was being marketed in much of Europe.

Henri Nestlé also showed early understanding of the power of branding. He

had adopted his own coat of arms as a trademark; in Swiss German, Nestlé

means 'little nest'. One of his agents suggested that the nest could be

exchanged for the white cross of the Swiss flag. His response was firm: "I

regret that I cannot allow you to change my nest for a Swiss cross .... I

cannot have a different trademark in every country; anyone can make use of

a cross, but no-one else may use my coat of arms."

Meanwhile, the Anglo-Swiss Condensed Milk Company, founded in 1866 by

Americans Charles and George Page, broadened its product line in the mid-

1870s to include cheese and infant formulas. The Nestlé Company, which

had been purchased from Henri Nestlé by Jules

Monnerat in 1874, responded by launching a condensed milk product of its

own. The two companies remained fierce competitors until their merger in

1905.

Nestlé is today the world’s leading food company, with a 135-year history

and operations in virtually every country in the world. Their principal assets

are not office buildings, factories, or even brands. Rather, it is the fact that

they are a global organization comprised of many nationalities, religions,

and ethnic backgrounds all working together in one single unifying

corporate culture. Their culture unifies people on all continents, with

roughly half their factories and people located in the developing world.

A qualified workforce, trained by Nestlé or emerging from a strong

educational and industrial context, strongly influences the company’s ability

to be globally competitive. The fair treatment and development of company

staff and the strengthening of the local workforce are essential long-term

investments. They reinforce the conditions for growth and sustained

economic development in the locations where Nestlé operates. Nestlé’s

ability to employ thousands of people each year is an important contribution

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the company makes towards future generations, providing income to

families

who can enhance their chances at better education, healthcare and

standard of living for entire families and communities.

INTRODUCTION OF NESTLE

Nestlé Corporate Business Principles will continue to evolve and adapt to a

changing world, their basic foundation is unchanged from the time of the

origins of their Company, and reflects the basic ideas of fairness, honesty,

and a general concern for people.

Nestlé is committed to the following Business Principles in all countries,

taking into account local legislation, cultural and religious practices:

* Nestlé's business objective is to manufacture and market the Company's

products in such a way as to create value that can be sustained over the

long term for shareholders, employees, consumers, and business partners.

* Nestlé does not favor short-term profit at the expense of successful long-

term business development.

* Nestlé recognizes that its consumers have a sincere and legitimate

interest in the behavior, beliefs and actions of the Company behind brands

in which they place their trust and that without its consumers the Company

would not exist.

* Nestlé believes that, as a general rule, legislation is the most effective

safeguard of responsible conduct, although in certain areas, additional

guidance to staff in the form of voluntary business principles is beneficial in

order to ensure that the highest standards are met throughout the

organization.

* Nestlé is conscious of the fact that the success of a corporation is a

reflection of the professionalism, conduct and the responsible attitude of its

management and employees. Therefore recruitment of the right people and

ongoing training and development are crucial.

* Nestlé continues to maintain its commitment to follow and respect all

applicable local laws in each of its markets.

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Mission Statement

At Nestlé, we believe that research can help us make better food so that

people live a better life.

Good Food is the primary source of Good Health throughout life. We strive

to bring consumers foods that are safe, of high quality and provide optimal

nutrition to meet physiological needs. In addition to Nutrition, Health and

Wellness, Nestlé products bring consumers the vital ingredients of taste and

pleasure.

Vision statement

Nestlé aim is to meet the various needs of the consumer every day by

marketing and selling food of a consistently high quality.

The confidences that consumers have in our brands is a result of our

company’s many years of knowledge in marketing, research and

development, as well as continuity – consumers relate to this and feel they

can trust our products.

MAIN PRODUCTS

Good Food, Good Life: the key to health, nutrition and wellness.

With over 140 years of experience and expertise, we take great pride in

bringing you the best products because happy, healthy consumers are

important to us.

We develop our products keeping your preferences, tastes and needs in

mind. We understand that you, along with millions of other consumers,

know that you can trust our products to deliver purity, quality, convenience

and nutrition.

Our products are carefully aligned to Pakistani tastes and needs. We're

always trying hard to develop new products and improve existing ones, and

serve our consumers better.

That's why through constant renovation and innovation we're always testing

or launching value added products and making them available in sizes that

will suit every requirement.

So explore the world of health with Nestlé products, and find out what suits

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your family's needs!

HUMAN RESOURCE

HR is dedicated to their employees, and ensures that they have all the right

people with the right skills, in the right places at the right time.

Understanding that their people are the bedrock of all their business

strategies, it is their mandate to enhance their skills with cutting-edge

training and provide them with world-standard facilities.

They select flexible, innovative people who are ready to confront new

challenges and make a difference. Their groundbreaking Management

Trainee Programmed aims to develop talented young men and women and

help them achieve their potential in a dynamic and enabling environment.

Over a hundred people travel out of the country every year to take

advantage of their international training and development events.

GETTING STARTED:

Nestlé is the world’s largest and most respected food company, and their

success is built on their people. Their 140 years of experience has taught us

that people are more important than systems & processes.

They offer you an attractive and dynamic working environment where you'll

find constant opportunities for development: a place where you can grow,

learn, and fulfill their potential to the utmost.

WHAT THEY BELIEVE IN:

They are a people company. Their people are their greatest strength, and

nothing can be achieved without their commitment and energy.

At Nestlé Pakistan their opinion counts.

Here you'll fit into a corporate culture that's based on a set of fundamental

principles and values. These are:

• High commitment to quality products and brands

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• Respect of other cultures and traditions

• Commitment to strong work ethic

• Personal relations based on trust and mutual respect

• Proactive cooperation

• Being pragmatic rather than dogmatic

• Favoring decentralization and networking

• Being committed to work and quality

• Preferring the long-term perspective to short-term thinking

They're proud of their traditions and heritage, and as times change, these

core values keep evolving.

The Nestlé Difference

At Nestlé you'll find their self in a dynamic and invigorating environment,

surrounded by people who are passionate about their work.

You'll feel empathized to contribute to the company's business objectives

and to achieve their own personal and professional goals.

You and their colleagues shape and lead the organization – their energy is

its greatest strength.

Family & Female-Friendly Organization:

Diversity is central to the nature of their business. As a global organization,

Nestlé caters to the needs of diverse consumers.

This is only possible due to the diverse backgrounds and interests of their

people and their firm commitment to embracing diversity at all levels.

When they employ staff, they make a commitment to provide them with

good working conditions. Female employees and their employees' families

know that Nestlé Pakistan has a friendly and caring attitude.

They recently set up a day-care centre, and have established a

comprehensive Maternity Benefits Scheme for their female employees.

Total Competitive Remuneration:

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At Nestlé you can be sure you'll get competitive and fair remuneration

structures. Their remuneration is benchmarked against other organizations

and surveyed on a regular basis to ensure that they remain competitive.

Their pay and compensation strategy is tied to the achievement of their

business objectives. This linkage helps us define a growth-oriented culture,

making us the most preferred employer in the market.

The benefits of working at Nestlé go beyond the financial. Here, you'll find a

structure to help you fulfill their ambitions and support their lives.

Growth:

New employees are given responsibility at an early stage, and high

performers can develop fast.

Their international and multicultural working climate is conducive to

creativity, innovation and personal development. And you'll get competitive

working conditions, a compensation package and social benefits in line with

their company's high standards.

Here, you'll get the room to add value and make a real difference. If you're

qualified and ready to confront new horizons, you'll have the chance for a

truly international career.

Learning:

If you want to keep learning and improving every day of their working life,

you might fit in very detail at Nestlé Pakistan.

From their very first day, you will start to acquire new skills that may take

you to the very top, and to the furthest corners of the world.

Here, you'll thrive in an environment of lifelong knowledge enrichment,

where learning is a continuous process rather than an occasional

programme or event.

That's why you'll find their self working with people who want to know

more, do more and achieve more – for themselves., and for the organization.

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SAFETY AT WORK

Nestlé is committed to being a leader in workplace safety and health.

The Nestlé Occupational Health and Safety Management System (NSMS)

was revised in line with the 2007 edition of the international standard

OHSAS 18001 and reissued to all Nestlé operations, reinforcing our

commitment that “Safety is non-negotiable”.

They are also working towards external certification of our factories against

OHSAS 18001. This will provide a common language around our health and

safety management systems, and make it easier to demonstrate

implementation of these standards to our stakeholders.

The number of workplace injuries has been reduced. For example, in 2007

the number of injuries leading to one or more days away from work in

Nestlé decreased to almost one quarter of that seen in 2001.

Major focus on preventing accidents:

Over the years, Nestlé has developed a strong network of local Safety,

Health and Environment functions that develops and shares best practices

in accident prevention across the world.

Involving employees:

Employees at all levels are employed to assume ownership of workplace

safety. Behavior based safety programs are being implemented in all

operational sites (including factories and distribution centers). Safety

observations made by those most concerned are gathered and analyzed and

measures to eliminate or manage risks are implemented.

Tools to manage safety performance:

Custom-made tools have been put in place to track workplace safety key

performance indicators. Safety practitioners and managers have access to

reports about their local performance and those of other sites, enabling

easy internal benchmarking and identification of best practices.

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Safety at Work Award:

In order to reinforce a culture of safety in the company Nestlé has created a

'Nestlé Safety at Work Award' 2008. Nestlé country or market organizations

worldwide presented applications to the jury. Each country or market

organized an internal safety award competition and designates one

champion team to participate in the Nestlé Safety Award. Local winners are

recognized with Gold, Silver and Bronze awards and the global winners will

be announced at the end of March. 

The winners are presented with their trophies at the Nestlé Market

Conference.

Nestlé Policy on Health and Safety at Work:

Nestlé regards its people as its most valuable asset and places the highest

priority on protecting them. The Nestlé Policy on Health and Safety at Work

is based on the Nestlé Corporate Business Principles, which are binding for

the whole Nestlé Group.

Prevention of work-related injury and illness

Nestlé believes that work-related injuries and illnesses can be prevented.

They integrate health and safety into management of the business by

establishing local safety organizations that proactively advance a strong

safety culture. Further, they implement worldwide our mandatory Nestlé.

Operational Safety, Health and Risk – Management

Strategy, which meets or surpasses the requirements of the health and

safety laws applicable in the countries in which they operate conduct risk

assessments and take appropriate corrective action to minimize threats to

human health and safety. Furthermore, they establish emergency and

contingency plans to deal with residual risks. This approach also minimizes

threats to the business, protecting our shareholders’ interests; continuously

improve our performance by adapting processes, work practices and

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systems as a result of monitoring safety performance and analyzing

accidents or occupational health problems.

Nestlé and third parties

Nestlé understands the responsibility of the community and third parties in

managing safety. Therefore, they communicate with relevant local

communities and their emergency services, providing them with adequate

health and safety information on our operations. They encourage joint

training and exercises with local emergency services where appropriate

ensure that all third parties entering Nestlé sites have sufficient relevant

information and training and are properly equipped to safely execute their

tasks on our sites; regard health and safety management as an important

consideration in supplier and contractor selection. Nestlé enforces this

policy on third parties operating on our sites and encourages our suppliers

and contractors to apply similar standards of Nestlé sites.

Management leadership and employee involvement

Nestlé recognizes the critical role of our people to ensure a safe and healthy

work environment. As an integral part of managing the business, all Nestlé

managers are accountable for managing workplace health and safety with

strong leadership and credibility. They build a proactive safety culture by

actively engaging our employees and other relevant

stakeholders to drive implementation of all elements of our Nestlé

Operational Safety, Health and Risk Management Strategy through

consultation and communication with staff at all levels educating, training

and equipping staff at all levels to ensure that they are employed to avoid

unsafe situations and to respond rapidly to unexpected events; setting

targets and monitoring performance to drive continuous improvement of

our achievements, while providing the needed resources to ensure a safe

working environment. Further, employees at all levels are accountable to

work in a safe manner to prevent injury to themselves and fellow workers,

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and to become actively involved in programs to improve health and safety

performance in the workplace.

Implementation

Nestlé implements this policy through the Nestlé Operational Safety, Health

and Risk – Management Strategy to ensure a consistent and coherent

standard worldwide. However, the specific methods of managing health and

safety at work depend on local social norms, practices and regulations.

Local management is accountable to implement an adapted safety

organization to comply with this policy.

The Nestlé Operational Safety, Health and Risk Management System,

supports the Nestlé Operational Safety, Health and Risk – Management

Strategy by guiding managers on the most effective implementation

approach.

Key Figures:

Tracking workplace injuries: Five-year Evolution:

Nestlé started tracking injuries that lead to days away from work and/or to

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medical treatment at corporate level in 1998. This tracking covers

approximately 275,000 employees and 50,000 contractors (those that work

at Nestlé sites) across the world. Since then, significant progress has been

achieved. In the period 2003-2007, the number of injuries with time away

from work (for employees and contractors) per million hours worked

reduced by 65%.

RECRUITMENT

WHAT THEY LOOK FOR:

It takes a special sort of person to come and work at Nestlé Pakistan.

That's why, when selecting candidates, they look for a set of interrelated

characteristics encompassing three key areas: knowledge, personality and

motivation.

Professional Knowledge:

Do you have a great academic record that demonstrates their intelligence,

commitment and hard work? Can you show us you have a sharp analytical

mind, and the drive necessary to succeed in a competitive environment?

If you think you fit the bill, you may be right for Nestlé Pakistan.

They look for good academic results at university or equivalent

qualifications. However, the class of the degree you have obtained, though

very important, is not the only criterion for selection.

Other experiences during their studies, previous jobs, assignments,

language theses and any other significant extracurricular activities and

achievements, are also given the right.

They look for candidates who can identify a problem, analyze it, look at

different options, and come to reasoned conclusions.

They want people with drive and tenacity, energy and enthusiasm, who can

initiate a project and follow through to the end.

All these skills are vital during a career at Nestlé Pakistan.

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Personality:

To succeed at Nestlé Pakistan, you need more than professional knowledge.

You need a flair for the field of activity of their choice, an open mind, and a

willingness to dig in and learn new skills and ideas.

They're looking for applicants who are dynamic and communicative. People,

who can listen, understand and integrate the opinion of others, people who

can express their ideas clearly, both verbally and on paper.

They want people who like to negotiate, even with very different partners,

and to solve problems in complex situations.

They like candidates who show leadership, inspire others, and are self-

confident, yet realistic. People who have a positive attitude to work and are

willing to work hard, even under pressure.They seek people who can be

objective in their assessment of themselves and of others.

Motivation:

While they expect loyalty to their company, they expect their people to be

critical and suggest improvements wherever necessary. They like people

who are motivated themselves & can motivate others.

What Will Make You Right for Nestlé?

A Nestlé employee is characterized by creativity and dynamism. They don't

only look for specialists, but people who have knowledge and skills in more

than one field, with broad interests.

To sum up, they want people with purpose and ambition, though not at the

expense of others.

They want people who take responsibility for their actions, who consider

Nestlé their own business, and who show an entrepreneurial spirit.

If you think you fit the Nestlé profile, you might be just the person they're

looking for!

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Recruiting process:

Applying for a current job / graduate program / internship

Please look through the vacancies and choose which you are interested in.

Create your CV by filling out the online form.

Once the application is complete, you will receive a confirmation message

telling you that it has been received and is being processed.

Receiving CVs:

They will review and select CVs that best match open jobs. Please note that

only completed CVs will be taken into account.

Only selected candidates will be contacted.

In any case, you will receive an e-mail telling you when the job you applied

for has been filled.

Register for our talent pool:

If there is no job opening suitable for you, you can still register your details

in our database. You will then be considered as a potential candidate for

new up coming positions.

They regularly review CVs and jobs to try to match registered candidates

with job openings.

You will only be contacted if they find a suitable match.

The Interview Process

Graduate Program Applicants

Regular group interview sessions are held throughout the year for most of

the Graduate Programs.

This is a one-day sessions that consists of discussions about potential jobs

and career developments, individual interviews with HR and line managers,

group and/or individual case studies.

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If you are successful at the group stage, you will be invited for an individual

interview day with HR and line managers.

Professional applicants:

You should expect a series of individual interviews with HR and line

managers. These will generally focus on your background and motivation as

they’ll as how you likely fit Nestlé's culture and values.

Internships applicants:

You will be interviewed by HR as they’ll as a line manager. These interviews

will generally focus on your background and motivation as they’ll as how

you likely fit Nestlé's culture and values.

TRAINING

Management Trainee Programmed:

If you're young, bright and hard working, the Management Trainee Program

may be the place for you. They hire fresh graduates as potential managers

to develop new competencies and skills through on-the-job development.

You'll be hired in one of various departments at inductee level on a 12-

month training program. Once you've completed the program, you will be

assigned independent responsibilities supporting the company's business

needs.

They begin sourcing Management Trainees in January. Preliminary

interviews and screening is organized according to the graduation

schedules of Pakistani and foreign universities, and are followed by

interviews with senior management.

Employee Nutrition Training

Building a continuous nutrition learning culture within Nestlé is a key

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element in our journey to become a nutrition, health and wellness company,

to provide profitable growth in the future. To support this objective, they

have developed the NQ (Nutritional Quotient) training program for

employees, based on the principle that nutrition is everybody’s business at

Nestlé, irrespective of the area in which employees work.

Nestlé’s expert nutrition knowledge is long-established, centered on the

activities of Nestlé Nutrition and our R&D network. The NQ program is

designed to widen and increase the knowledge base among employees in

other job functions, giving everyone the confidence to apply this knowledge

in their work.

The program combines nutritional knowledge with commercial application.

For example, when communicating with consumers about balanced diets,

the knowledge gained by Nestlé employees through the NQ program will

help make nutrition and wellness tangible to consumers, ensuring that

Nestlé is regarded as a knowledgeable partner in nutrition matters. Not

only this - a major aim of the program is also to help employees make

informed and healthy nutrition choices for themselves and their own

families.

A modular program

NQ training comprises engaging modules suitable for all employees, from

the Executive Board to plant operators, and leverages the nutrition

expertise of Nestlé scientists and health marketing specialists.

Implementation began in 2007, with Nestlé nutrition experts and marketing

specialists taking part in "train the trainer" sessions across our zones to

support the cascade of knowledge to all employees.

Key to the success of the NQ training are interactive, customized modules

designed to encourage people to participate and put knowledge into action.

These are tailored to specific needs:

Foundation module: a stand-alone program of learning and

development for Nestlé employees whose jobs are principally non

consumer or customer facing.

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Advanced module: core learning for staff who are engaged with

external bodies and consumers/customers.

Specialist modules: place particular emphasis on understanding the

consumer and application of the Nestlé nutrition and wellness

strategy in specific product categories.

A complete toolkit

The NQ program toolkit comprises a suite of materials for trainers,

including training manuals and slide sets. For trainees themselves, learning

takes place in an engaging way using a variety of media and formats,

including interactive games, motivational video content and an on-line quiz.

This is used to measure collective progress and to allow each trainee to

evaluate, in an entirely confidential way, his or her personal lifestyle

choices. The toolkit also comprises awareness-raising and motivational

material that can be used and adapted to meet local needs, including

posters, questionnaires and certificates.

Ongoing development

As nutrition and our insights into nutrition evolve, so too will our NQ

Nutrition training, helping Nestlé employees to keep abreast of new

developments and maintain a high level of credibility through the breadth

and depth of our nutrition expertise.

Internships:

Internships are a great way to apply the knowledge and skills you are

developing at university and get experience in a leading corporation.

They offer project-based internship positions in various departments at

Nestlé Pakistan.

You may be hired as an intern at various points during their academic

career: during undergraduate study or graduate school.

Most internship assignments are offered during the summer months and

generally run for 6 to 8 weeks.

At the end of the internship you will be required to submit a project or

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program report to the company on the topic assigned to you at the

beginning of the internship program.

If you impress us with their talent & hard work, you may be considered for

employment opportunities after you have completed their studies.

The Nestlé Human Resource Policy

This policy encompasses those guidelines which constitute a sound basis for

efficient and effective HR Management in the Nestlé Group around the

world.

They are in essence flexible and dynamic and may require adjustment to a

variety of Circumstances. Therefore its implementation will be inspired by

sound judgment, compliance with local market laws and common sense,

taking into accounts the specific context. Its spirit should be respected

under all circumstances.

As Nestlé is operating on a worldwide basis, it is essential that local

legislation and practices be respected everywhere. Also to be considered is

the degree of development of each market and its capacity to advance in the

management of their human resource.

Should any HR policy conflict with local?

Legislation, local legislation will prevail.

These policies are addressed to all those who have a responsibility in

managing?

People as they will as to HR professionals??

The Nestlé Management and Leadership Principles include the guidelines

inspiring all the Nestlé employees in their action and in their dealings with

others. The Corporate Business Principles refer to all the basic principles

which Nestlé endorses and subscribes to on a worldwide basis. Both these

documents are the pillars on which the present policy has been built.

A SHARED RESPONSIBILITY:

HR managers and their staff are there to provide professional support in

handling people matters but should not substitute themselves to the

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responsible manager.

Their prime responsibility is to contribute actively to the quality of HR

management throughout the organization by proposing adequate policies,

ensuring their consistent application and coherent implementation with

fairness. Acting as business partners, the HR manager advises and offers

solutions which results in positive impact on the organization’s

effectiveness.

Furthermore, she/he proposes best practices and provides state-of-the-art

support and counseling to her/his colleagues. Together they act as co-

responsible partners for all HR matters. This partnership is the key for

efficiency in people management. The communication skills of the HR staff

must be appropriate to deal with all delicate matters as they occur

frequently in human relations issues. They gain their credibility not only

from their professional contribution but also through the care and the

excellence of their communication skills.

CAREER MANAGEMENT

JOINING NESTLE:

The Nestlé Human Resource Policy The long-term success of the Company

Depends on its capacity to attract, retain and develop employees able to

ensure its growth on a continuing basis. This is a primary responsibility for

all managers. The Nestlé policy is to hire staff with personal attitudes and

professional skills enabling them to develop a long-term relationship with

the Company.

Therefore the potential for professional development is an essential

standard for recruitment.

Each new member joining Nestlé is to become a participant in developing a

sustainable quality culture which implies a commitment to the organization,

a sense for continuous improvement and leaves no place for complacency.

Therefore, and in view of the importance of these Nestlé values, special

attention will be Paid to the matching bettheyen a candidate’s values and

the Company culture.

Hence, a clear communication of these principles and values from the very

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beginning of the recruitment process is required.

Moreover, for managerial positions specific leadership qualities and

business acumen will be required. Nestlé wishes to maintain and develop its

reputation as an employer of high repute. Contacts with universities,

attendance at recruitment events and other contacts are to be undertaken

so as to ensure good visibility of the Company vis-à-vis relevant Recruitment

sourcing. Particular care will be given to the treatment of each Candidacy

regardless of the outcome of the selection process.

Even when promoting employees intensively from within the organization, it

is the role of management and HR to keep an eye on valuable candidates

from outside and to Benchmark internal skills with external offers.

Whilst adequate recruitment tools may improve the hiring process, it is

understood that the decision to hire a candidate remains in the hands of the

responsible manager Supported by the HR staff. Under no circumstances

should the decision to hire or not to hire be left in the hands of an outside

consultant or expert. As mentioned in the Nestlé Management and

Leadership Principles, only relevant skills and experience and the

adherence to the above

Principles will be considered in employing a person. No consideration will

be given to a candidate’s origin, nationality, religion, race, gender or age.

It is as important to hire the right person as it is to integrate newcomers in

the organization so that their skills and behavior can merge smoothly with

the Company culture. Whereas from new employees it is expected to

respect their company’s culture, it is accordingly required from all

employees to show an open mind towards new ideas and proposals coming

from outside.

EMPLOYMENT AT NESTLE

The Corporate Business Principles outline the Company’s commitment to

fully endorse and to respect a series of principles and international

conventions concerning employee’s rights, the protection of children

against child labor and other important issues. These principles are to be

respected everywhere and under all circumstances.

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The management will implement the necessary processes to ensure that

these principles are enforced at all levels. Employees who are not abiding

with the Corporate Business Principles and the Nestlé Management and

Leadership Principles cannot be maintained in employment and will be

requested to leave the organization. Also their main suppliers and providers

of out sourced services should be informed of the Corporate Business

Principles and should comply with those. Nestlé provides a working

environment which protects the health and there welfare of the employees

according to the highest?

Affordable standards of safety, hygiene and security. Each employee should

not only Care for her/his own safety but also that of her/his colleagues.

Therefore, suggestions for improvement are they come and will be given

prime consideration.

In the same way that no discrimination for reason of origin, nationality,

religion, race, Gender or age will be tolerated when joining Nestlé, no such

discrimination will be tolerated towards Nestlé’s employees. Furthermore,

any form of harassment, moral or sexual, will not only be prohibited but

actively tracked and eliminated. Internal Rules and regulations will

explicitly deal with discrimination and harassment issues so as to obtain the

best possible prevention. Nestlé considers that it is not enough to avoid

discrimination or harassment. It is essential to build a relationship based on

trust and respect of employees at all levels. Therefore, it is indispensable

for each manager to know how her/his employees feel in their work. In

larger units it may be necessary to organize such feedback on a regular

basis, using internal surveys or other valuable approaches. Nestlé favors a

policy of long-term employment. Whenever, an operation activity cannot be

maintained within the Nestlé sphere, reasonable steps will be undertaken to

avoid overall loss of employment by identifying an external Business willing

to take over activity from Nestlé, whenever this is possible.

If this is not possible, a closing down may be unavoidable. It will be handled

in full respect of local legislation and of the Corporate Business Principles.

A social plan will be elaborated taking into account the legitimate interests

of the concerned staff.

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Reasonable efforts will be deployed to reduce, as much as possible, the

negative Social impact of such a situation.

Knowledge transfer:

Knowledge Transfer is about making the very best out of our huge

intellectual assets and resources and ensuring that this information is

shared with our partners and within our communities.

The research and business models that have proved of great success within

Nestlé have been taken on into communities and used to enable and their

other businesses and initiatives.

The most recent example of this is the participation of Nestlé in donating

funds for the drilling of deep wells and the installation of 22 community

water supplies to provide clean and safe water for some 40 000 people. The

funds are also be used to train community structures on maintaining the

pumps and improve overall hygiene practices.

The project is under the umbrella of the International Federation’s Global

Water and Sanitation Initiative (GWSI) launched in 2005, which has set a

framework for scaling-up action and partnership to contribute to the UN

Millennium Development Goals, in particular the goal to reduce by half the

number of people without sustainable access to safe water and sanitation by

2015.

Listening and responding to employee views

Businesses throughout Nestlé listen and respond to employees. Nestle

globally conducted an independent survey, which provided constructive

feedback from employees on a range of topics. A clear finding was that

Nestle employees wanted the business to take a fresh look at internal

communication. Nestle responded firstly by running structured workshops

to help translate opinions into action. Various initiatives they are

implemented as a result. These range from new opportunities to meet and

share ("mystery lunches" and monthly departmental meetings) to improved

information sources (intranet and publications library). Nestlé is conducting

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a global employee survey. This is currently underway, and they will be able

to report on it in future publications.

Work/Life Balance:

At Nestlé they believe that the employee’s private and professional life

should have a good balance.

Not only because it reinforces employee’s satisfaction, loyalty and enhances

Productivity but also because it positively reflects on the Company’s

reputation. It helps attracting and retaining people and reconciles

economical imperatives with they’ll being. Nestlé is willing to support

employees who wish to take an active part in the life of the community or by

assuming responsibilities in professional, civic, cultural, religious or

voluntary organizations it being understood that any activity during working

theirs be first approved by the Company.

In the same spirit, Nestlé provides flexible working Conditions whenever

possible and provides its employees to have interests and motivations

outside work.

PROFESSIONAL DEVELOPMENT:

Learning:

Learning is part of the Company culture. Each employee, at all levels, is

conscious of the need to upgrade continuously her/his knowledge and skills.

The willingness to learn is therefore a non-negotiable condition to be

employed by Nestlé. First and foremost, training is done on-the-job. Guiding

and coaching is part of the responsibility of each manager and it is crucial

to make each one progress in her/his position. When formal training

programs are organized they should be purpose oriented and designed to

improve relevant skills and competencies. Therefore they are proposed in

the framework of individual development programs. As a consequence,

Attending:

A program should never be considered as a reward. Adequate training

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programs are developed at the level of each operating company capitalizing

on the availability of local, regional or global resource of the Group. It is the

responsibility of HR staff to assist the management in the elaboration of

training programs. Great importance will be attached to programs

enhancing the language skills of the employees. Training programs

organized at the International Training Centre Rive-Reine aim at developing

and sharing best practices of the various management disciplines practiced

in the Group. They also strive to strengthen corporate cohesion as they’ll as

to promote networking throughout the Group. Training programs should, as

much as possible, be based on action learning and reduce ex-cathedra

teaching to the strict minimum. It is necessary to make optimal use of e-

learning programs as a complement to or a substitute for formal training

programs.

According to needs they should be made available at shop floor level and

enlarge the access to training. It is the role of each manager to assess

progress achieved as a result of training Programs. Assessing and

Developing each employee is in charge of her/his own professional

development. However, the Company endeavors to offer the opportunity to

progress for those having the determination and the potential to develop

their capabilities.

Such opportunities should take into account the potential of each employee

and be discussed with transparency. They will be based on defined

possibilities, concentrate on the next career step and not on vague promises

or remote hypotheses. The Company provides its employees to express their

objectives and expectations in an open dialogue. The objective is to retain

and motivate employees by offering attractive but realistic career moves

allowing them to develop their skills over a long-term period within the

framework of economic reality and a changing environment. Whereas

succession plans forecast the Company needs, they will be reconciled,

inasmuch as possible, with individual development plans. HR management

provides the support for implementing the necessary planning tools, having

in mind the necessary flexibility to cope with unforeseen situations.

However, it is understood that each manager is co-responsible for

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preparing.

The resource necessary to the development of the Company as this is also

part of his accountability. Regular counseling and guidance are the best

tools for improving performance and for helping people develop their skills.

It also allows to correct errors swiftly and to transform them into a positive

learning experience. In an organization with flat structures this supports

better delegation. Direct personal contact should always been given

preference over written communication whenever possible. Each manager

has the duty to act as a mentor for his employees. Formal assessment

should take place on a regular basis, preferably once a year. Its purpose is

to provide feedback on past performance and future potential as they’ll as

on other relevant aspects concerning a staff member’s work including the

development of his skills and competencies. Both the positive and negative

aspects of individual performance should be frankly addressed. Assessment

of performance should be based on facts rather than opinions. For

managerial positions, assessment will be based essentially on agreed

objectives and their level of achievement.

Efficient performance management emphasizing the achievement of agreed

Objectives is a prime responsibility for each manager. The necessary time

should be dedicated to the monitoring and the follow-up of the progressive

achievement of objectives during the year. This feedback is meant to

stimulate performance and should take place through an open dialogue

based on mutual trust and willingness to progress. It is requested to provide

written evidence of such meetings. Focus should be essentially on

continuous improvement, appropriate training measures but also on

shaping a Stimulating working environment. In case of serious

underperformance, a termination of employment should be envisaged. Such

termination should be handled with due respect of the person and should

include, where appropriate, separation terms that take into account the

employee’s personal situation. When assessing potential it should be kept in

mind that the best indicator of talent is achievement. Therefore

responsibility should be given as early as reasonable to allow people to

prove themselves. Candidates for managerial positions should clearly have

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demonstrated their willingness and ability to apply the Nestlé Management

and Leadership Principles.

Promotions will exclusively be based on competence, insight, performance

and potential with the exclusion of any consideration for origin, race,

nationality, gender, religion or age. Flexibility is a requirement for ensuring

a positive professional evolution. Staff may be requested to move to other

positions. Managers, especially international staff, may be asked to move to

other locations. International experience and participation in group

development initiatives such as GLOBE, SMPT and others can be acquired

in all countries of the Group and are a requirement for holding high-level

positions. The development of expertise in specific areas of competence is

determinant for the Company’s success. Therefore job rotation should be

practiced with caution. Whilst job rotation might be useful under certain

circumstances, it should not result in threatening their expertise in key

areas of Professional Development.

Industrial relations:

Nestlé upholds the freedom of association of its employees and the effective

recognition of the right to collective bargaining. Nestlé wishes, also through

its relationship with unions and other representative associations, to sustain

the long-term development of the Company, both to the benefit of the

employees and of the Company, by maintaining a level of competitiveness

adapted to its economic environment. Industrial relations are a clear

responsibility of local management and will be handled at the appropriate

level: first at site level (factories, warehouse) subsequently at regional or

national level, according to local law and practices.

Nestlé will ensure that direct and frequent communication is established

with its employees, both union members and non-members, as mentioned in

the Nestlé Management and Leadership Principles. Relations with unions

will be established under strict observation of national law, local practices

as they’ll as those international recommendations to which Nestlé has

adhered to on a voluntary basis as stated in the Corporate Business

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Principles.

Contacts with union delegates should create a further opportunity to

provide information allowing their members and other representative

associations to acquire a full understanding of the business activities and

the goals of Nestlé. In accordance with local legislation, Nestlé will refrain

from any action restricting the employee’s right to be or not to be affiliated

to a union. Nestlé will not engage with any union or other representative

association in activities or discussions other than those relating to

employment and working conditions as they’ll as issues relating to the

workplace. Whenever negotiations take place, they will be duly prepared

with the full involvement of line management and take into account both the

Company’s and the employees’ legitimate interest. In dealings with unions,

it will be ensured that management prerogatives be properly maintained.

The fact that Nestlé is more people and product than systems oriented is

reflected in the way HR is functioning and is organized. Processes and

systems as they’ll as professional HR tools are there to support HR

management but never to the detriment of the human dimension. The

human perspective should be present at all times and under all

circumstances. The HR function should report to the manager responsible

for a defined operation (Region, Market, Country, and Factory) with a

functional relation to the market HR according to the size of that operation.

The HR manager should not only have the skills and competencies from a

purely professional standpoint but also have the charisma and the

credibility to be a trustworthy partner to her/his colleagues. Whereas the

HR function should indeed provide flawless administrative support, its main

role is to add value to the business and to play a proactive role in every

situation where HR action is required. Specific HR KPI’s are useful in

assessing the performance of an HR unit. However, it should be kept in

mind that the HR contribution aims in the first place at optimizing the

overall company performance through improving people performance. With

the evidence that the human capital is of increasing importance, HR plays

indeed a pivotal role in the conception and implementation of the people

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strategies that impact financial results and the organization’s overall

reputation and effectiveness.

The Nestlé Spirit:

You could be forgiven for expecting to see a mission statement here,

summing up our beliefs and principles in a few slick phrases. But

that's not the approach they take.

Nestlé is not like other companies. They have a unique set of values and

guiding principles that have been built up over time. To try to summarize

them in a sentence or two would make them meaningless.

To engender the unique spirit that permeates the entire Nestle

Group:

They believe in people, rather than systems

They are committed to creating value for our shareholders, but they

will not favor short-term profits at the expense of long-term business

development

They are as decentralized as our basic policy and strategy decisions

will allow

They are committed to continuous improvement rather than dramatic,

one-off changes Above all, they are pragmatic and not dogmatic

If these are values that strike a chord with you, spare a few minutes to

read through the questions below. If you can tell them all with 'yes',

they'd like to hear from you.

Do you look forward to change?

Nestlé is proud of its traditions and heritage. But that doesn't mean they are

stuck in the past. To keep us ahead in the ever-changing food industry, they

are constantly driving forward the boundaries of our industry. Our people

must be:

creative

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excited by the future

flexible

Are you open minded and ready to learn - every day of your career?

They are committed to the continual training and personal

development of our people. A world of opportunities quite literally

awaits those who are prepared to:

learn something new every day

adapt to new environments

develop multi-lingual skills

Do you have courage in your convictions and keep your cool under

stress?

Then you could have what it takes to be a Nestlé manager. The development

of our business depends on finding people who are ambitious for themselves

and for our company, who can:

communicate and innovate

motivate and inspire

delegate without abdicating responsibility

Do you want to explore new countries and adopt new cultures?

Nestlé has been an international company since its very beginning. Food is

intrinsically linked with local eating and social habits, and Nestlé endeavors

to integrate itself as much as possible into the cultures and traditions of the

countries where it operates. To deliver products that meet the needs of

individual consumers, they need people who:

respect other cultures

embrace diversity

never discriminate on any basis

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Are you ready to be the best?

Whether they are creating a product to fulfill a nutritional need, or a

chocolate bar that's purely for pleasure, Nestlé is only satisfied with the

best. They expect that same commitment to quality from our people. So get

in touch with us if you are:

enthusiastic

dedicated

ready to be part of our success

Many other companies say that people are their most precious asset. They

know that what makes our company unique is our staff: the people who

share our beliefs and principles and who work constantly to keep Nestlé in

its leadership position. Nestlé is not a faceless company selling to faceless

consumers. It is a human company providing response to individual human

needs the world over.

Corporate Business:

Nestlé is committed to the following Business Principles in all

countries, taking into account local legislation, cultural and

religious practices:

Nestlé's business objective, and that of management and employees at all

levels, is to manufacture and market the Company’s products in such a way

as to create value that can be sustained over the long term for

shareholders, employees, consumers, business partners and the large

number of national economies in which Nestlé operates;

Nestlé does not favor short-term profit at the expense of successful long-

term business development, but recognizes the need to generate a healthy

profit each year in order to maintain the support of our shareholders and

the financial markets, and to finance investments;

Nestlé recognizes that its consumers have a sincere and legitimate interest

in the behavior, beliefs and actions of the Company behind brands in which

they place their trust, and that without its consumers the Company would

not exist;

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Nestlé believes that, as a general rule, legislation is the most effective

safeguard of responsible conduct, although in certain areas, additional

guidance to staff in the form of voluntary business principles is beneficial in

order to ensure that the highest standards are met throughout the

organization;

Nestlé is conscious of the fact that the success of a corporation is a

reflection of the professionalism, conduct and the responsible attitude of its

management and employees. Therefore recruitment of the right people and

ongoing training and development are crucial;

Nestlé operates in many countries and in many cultures throughout the

world. This rich diversity is an invaluable source for our leadership. No

single document can capture every legal obligation that may be required in

each of these countries. Indeed, there may be conflicting legal

requirements. Nestlé continues to maintain its commitment to follow and

respect all applicable local laws in each of its markets. If an interpretation

of anything contained in this document is construed as contrary to local

laws, such interpretation should not be followed in that country

Nestlé Corporate Business Principles:

Nestlé is committed to the following Business Principles in all countries,

taking into account local legislation, cultural and religious practices:

– Nestlé’s business objective, and that of management and employees at all

levels is to manufacture and market the Company’s products in such a way

as to create value that can be sustained over the long term for

shareholders, employees, consumers, business partners and the large

number of national economies in which Nestlé operates.

– Nestlé does not favor short-term profit at the expense of successful long-

term business development, but recognizes the need to generate a healthy

profit each year in order to maintain the support of our shareholders and

the financial markets band to finance investments; Nestlé recognizes that

its consumers have a sincere and legitimate interesting the behavior, beliefs

and actions of the Company behind brands in which they place their trust,

and that without its consumers the Company would not exist.

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– Nestlé believes that, as a general rule, legislation is the most effective

safeguard of responsible conduct, although in certain areas, additional

guidance to staff in the form of voluntary business principles is beneficial in

order to ensure that the highest standards are met throughout the

organization; Nestlé is conscious of the fact that the success of a

corporation is a reflection of the professionalism, conduct and the

responsible attitude of its management and employees.

Therefore recruitment of the right people and ongoing training and

development are crucial; Nestlé operates in many countries and in many

cultures throughout the world. This rich diversity is an invaluable source for

our leadership. No single document can capture every legal obligation that

may be required in each of these countries. Indeed, there may be conflicting

legal requirements. Nestlé continues to maintain its commitment to follow

and respect all applicable local laws in each of its markets.

If an interpretation of anything contained in this document is construed as

contrary to local laws, such interpretation should not be followed in that

country.

National Legislation and

International Recommendations:

Nestlé emphasizes that, as a minimum, its employees must comply with the

laws applicable in the countries in which it operates. Nestlé ensures that

the highest standards of responsible conduct are met throughout the

organization, by complying in a responsible way with the Nestlé Corporate

Business Principles:

That guide Company activities and relationships worldwide in each sector of

business interest.

Nestlé supports and publicly advocates the United Nations Global Compact

and its nine principles, an initiative of the United Nations Secretary-

General. The Global Compact asks companies to embrace, support and

enact, within their sphere of influence, a set of core values in the areas of

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human rights, labor standards and the environment.

Nestlé recognizes that increasing globalization is leading to the

development of more and more international recommendations. Although,

as a general rule, these recommendations are addressed to governments,

they inevitably impact on business practices. Among others,

Nestlé has incorporated relevant International Labor Organization

Conventions. Nestlé endorses relevant commitments and recommendations

for voluntary self regulation issued by competent secretarial organizations,

provided they have been developed in full consultation with the parties

concerned. These include the International Chamber of Commerce (ICC)

Business Charter for Sustainable Development. Also, Nestlé uses the

revised Organization for Economic Co-operation and Development (OECD)

Guidelines for Multinational Enterprises, for its Corporate Business

Principles.

Consumers:

Nestlé aims to create value that can be sustained over the long term by

offering consumers a wide variety of high-quality, safe food products, at

affordable prices. The Nestlé Seal of Guarantee is its basic promise to the

consumer. Nestlé believes that consumer communications such as

advertising play an important function in enabling consumers to exercise

their right to informed choice. The Company is committed to responsible

consumer communications that: do not mislead as to the benefits derived

from use of the product;

– do not exploit violence, sex or profanity;

– do not depict discriminatory or offensive attitudes to religious, political,

ethnic, cultural or social groups;

– avoid demonstrations that encourage dangerous or inappropriate use of

the product;

– do not portray competitors’ products inaccurately, nor denigrate

competitors’ products;

– avoid the exploitation of media events that could be in bad taste. In

addition to the above principles, Nestlé does not sponsor consumer

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communication vehicles such as television and radio programs or magazines

whose strategy of attracting readers is to exploit violence, sex or offensive

attitudes to consumers. When collecting consumer data, Nestlé complies

with applicable data protection regulations and applies Nestlé standards

where specific legislation is not yet in place.

Children as Consumers

Nestlé has developed the following principles for advertising to children:

– Advertising to children should not attempt to undermine the authority,

responsibility or judgment of parents or care providers;

– Advertising to children should not portray children in unsafe situations

nor encourage them to accept invitations from people they do not know;

– Communications should not demonstrate either unsafe or irresponsible

consumption.

As programming is increasing in importance as a marketing

communications vehicle, the principles applied to other forms of

communication will be applied here.

Human Rights:

Nestlé fully supports the United Nations Global Compact’s two guiding

principles on human rights. Nestlé therefore: Supports and respects the

protection of international human rights within its sphere of influence

(Principle 1)

And ensures that its own companies are not complicit in human rights’

abuses (Principle 2)

Nestlé aims to provide an example of good human rights’ practices

throughout its business activities and has an interest in encouraging the

improvement of social conditions, which are an important factor for

sustainable development. Nestlé also recognizes that governments are

ultimately responsible for the establishment of a legal framework for

protecting human rights within their markets. Nestlé expects each market

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to respect and follow the local laws and regulations concerning human

rights’ practices.

Child Labor:

It is generally acknowledged that the causes of child labor are complex and

include poverty, differing stages of economic development, social values

and cultural circumstances. Nestlé believes policy development must take

into account the social and legal situation of individual countries. Action to

eliminate child labor must be guided by the best interests of the child, as ill-

considered policies and commercial measures can make the situation worse

for children.

Therefore, Nestlé:

– is against all forms of exploitation of children. The Company does not

provide employment to children before they have reached the age to have

completed their compulsory education, as defined by the appropriate

authorities, and expects its business partners and industry suppliers to

apply the same standards;

– abides by national laws in all countries which it has operations and

complies with the International Labor Organization (ILO) Convention 138

on the Minimum Age for Employment and the ILO Convention 182 on the

Worst Forms of Child Labor. The ILO recommendations are based on the

United Nations Convention of the Rights of the Child (Article 32);

– offers its co-operation with the relevant United Nations agencies,

governments and the business community in their efforts to deal with the

problem of child labor, which include the encouragement of universal

primary education and all aspects of economic development worldwide.

Business Partners:

Nestlé insists on honesty, integrity and fairness in all aspects of its business

and expects the same in its relationships with all business partners and

suppliers of materials, goods and services. Nestlé therefore supports and

applies:

– The International Chamber of Commerce revised rules on extortion and

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bribery in international business transactions, which recommend

governments to prohibit extortion and bribery for any purpose (adopted by

the ICC Executive Board on March 26, 1996);

– OECD Recommendations on Bribery and International Business

Transactions of May 1994 and the OECD Convention to counteract

corruption, which was signed by all the member countries and by Argentina,

Brazil, Bulgaria, Chile and Slovakia in 1997 (the signatories undertake to

consider corruption of foreign officials a penal act under their national law);

– Nestlé also supports OECD efforts to have non-member nations adhere to

the OECD recommendations for fighting against corruption.

RELATIONSHIPS

Relationship with Suppliers

Nestlé aims to deal only with reputable suppliers who are willing to apply

Nestlé quality standards. Supplier relationships are benchmarked and

evaluated with the objective of striving for continued improvement in the

areas of quality, service, etc. As a relationship between a supplier and

Nestlé strengthens and progresses, it may evolve into one of preferred

supplier status. Key suppliers with which Nestlé has a contractual

relationship are audited in order to ensure that they comply with the Nestlé

Corporate Business Principles or that they are working actively to achieve

compliance. Whenever instances of non-compliance are brought to the

Company’s attention, Nestlé will demand that corrective measures be

initiated. Nestlé personnel will maintain the highest standards of integrity

and professional competence in all business relationships. Sanctions will be

applied in the event of misconduct or abuse of established corporate

standards and guidelines.

Competition:

Nestlé supports free enterprise and therefore competes fairly and

recognizes other companies’ equal rights to do so. The Company supports

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the development of competition laws to protect this principle. In particular:

– Nestlé sets its commercial policy independently and does not fix prices in

agreement or collusion with competitors;

Nestlé does not allocate customers, territories or product markets in

agreement or collusion with competitors;

– Nestlé deals fairly with its customers and suppliers, in accordance with

competition laws;

– Nestlé will look towards mergers and acquisitions as a means to improve

its effectiveness, not to restrict competition;

– Nestlé’s trade payments are based on customer efficiencies and services

provided.

External Relations

Authorities: Nestlé supports ongoing dialogue between all industry sectors

in which it is active and the appropriate government and regulatory

authorities at both national and international levels, in order to promote and

implement relevant legislation, regulations and/or agreements which

protect the rights of the consumer while ensuring a healthy, competitive

environment. Business Relations: Nestlé’s business relations are based on

the principles of mutual trust, fairness and professionalism in the context of

a free-market economy. Academic/Professional Relations: Nestlé

encourages two-way communication and co-operation with academic and

professional bodies to foster continual updating of knowledge for mutual

benefit, leading to the constant improvement of the Group’s products,

policies and services.

Financial: Nestlé communicates openly, directly and accurately and takes

advantage of appropriate communication tools to ensure that information is

available simultaneously to the financial community and general public. No

individual or institution is given preferential treatment. Local Communities:

In addition to the direct investment and employment provided throughout

the world, Nestlé contributes in many countries to the well-being of local

communities in other ways. The personal involvement of Nestlé people in

many projects, together with financial assistance and sharing of know-how

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with local organizations helps to develop long-term community relations and

mutual understanding. Non-Governmental Organizations: Nestlé engages in

dialogue with non-governmental organizations that have a record of

constructive engagement and principled behavior. They encourage

discussion that can result in improved understanding and collaboration in

the economic, social and environmental betterment of the community.

Nestlé is involved in project partnerships with a significant number of non-

governmental organizations. Internet Privacy Policy: The Internet is

changing the way of doing business. It concerns business-to-business

relations and also the Company’s interaction with consumers. In this

respect Nestlé S.A. has an Internet Privacy Policy which is available on the

Corporate They site. This policy aims to protect the privacy of the users; it

covers, for instance, the accessing, deleting or correcting of information,

the security of information, and relates also to tracking technologies. Nestlé

supports industry self-regulation and respects the local laws of the markets

it serves in this domain.

Protection of the Environment

Since its early days Nestlé has been committed to environmentally sound

business practices throughout the world and continues to make substantial

environmental investments. In this way Nestlé contributes to sustainable

development by meeting the needs of the present without compromising the

ability of future generations to meet their own needs. The Nestlé

Policy on the Environment underlines this commitment. Nestlé also adheres

to the International Chamber of Commerce (ICC) Business Charter for

Sustainable Development. This Charter requires the establishment of

policies, programs and practices for conducting operations in an

environmentally sound manner.

Nestlé fully supports the United Nations Global Compact’s three guiding

principles on environment.

Nestlé therefore:

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Supports a precautionary approach to environmental challenges (Principle

7)

Undertakes initiatives to promote greater environmental responsibility

(Principle 8)

Encourages the development and diffusion of environmentally friendly

technologies (Principle 9)

Nestlé:

– integrates environmental policies, programs and practices into each

business as an element of management in all its functions;

– develops, designs and operates facilities and conducts its activities taking

into consideration the efficient and sustainable use of renewable resources,

the minimization of adverse environmental impact and waste generation,

and the safe and responsible disposal of residual wastes;

– respects and complies with existing laws and regulations in local markets

concerning environmental issues;

– applies Nestlé internal standards suitable to local conditions in those

regions where specific environmental legislation is nonexistent or

insufficient;

– improves environmental protection relevant to its activities on a

continuous basis;

– provides appropriate information, communication and training to build

internal and external understanding about its environmental commitment

and action;

– supports professional associations such as the International Chamber of

Commerce and the World Business Council for Sustainable Development in

their work relative to environmental protection, as they’ll as efforts to set

up environmental management guidelines;

– establishes environmental objectives, monitors progress, checks results

and defines future actions. This activity, carried out by Nestlé specialists,

ensures the continuous improvement of environmental performance

throughout the supply chain, from producing and purchasing of raw

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materials, to manufacturing, packaging, distribution and finally to the

consumer.

Agricultural Raw Materials

Agricultural raw materials, principally milk, coffee, cocoa, cereals,

vegetables, fruit, herbs, sugar and spices, are vital factors affecting the

quality and costs of Nestlé manufactured food products and, as a

consequence, the Company’s business performance. Sourcing strategies

and production methods are subject to an ever-changing environment. New

technological developments in the field of agriculture, changes in

agricultural policies or trade regulations, new technologies in food

processing, and evolving consumer preferences, mean that Nestlé must

adapt its sourcing strategies accordingly. This is a continuous process.

Governments and/or political institutions regulate farming and the trade of

farm products. Because of the effect of such regulation on pricing,

availability, domestic and international trade, and on the economic, social

and ecological aspects of farming and consequently on food safety and

quality aspects, Nestlé engages in constructive dialogue with government

institutions (primarily through professional organizations), and co-operates

with local authorities.

In this context Nestlé:

– supports farming practices and agricultural production systems that are

sustainable; that is those practices and systems that satisfy long-term

economic, ecological and social requirements;

– sources its agricultural raw materials either through trade channels or

directly from farmers and is not engaged itself in its own commercial

farming activities;

– supports mechanisms that contribute to a more regular income for

farmers;

– Where appropriate, provides agricultural assistance to farmers in order to:

- transfer know-how

- ensure ongoing supply at competitive conditions

- obtain raw materials that meet quality and safety specifications

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– supports an agricultural production system that is economically viable,

socially acceptable and ecologically sound and therefore encourages

sustainable farming practices;

– supports the application of new technologies and advances in agricultural

science, including the opportunities offered by today’s bioscience when

their positive effect on food safety, environment, agricultural practices and

production efficiency are scientifically confirmed and accepted by

consumers;

– recognizes the importance of genetic diversity as a pillar for future

developments in agriculture and life science, and supports its preservation

as a public good.

Agricultural services:

Nestlé has a long tradition of helping the farmers who provide our raw

material.

Nestlé Pakistan is committed to continuing this tradition; they consider it a

way of engaging in a mutually profitable partnership with our suppliers.

Thus, ever since they took over the milk collection system in 1992, our

Agricultural Services have endeavoured to help the farmers of the milk

district with their husbandry.

Better animals means there will be better milk. They gain a reliable supply

of high quality milk, but the greatest benefits, both immediate and long-

term, are to the farmers themselves.

Agricultural raw materials procured directly from farms

The decision to establish or maintain a direct procurement system depends

on a number of factors. They include:

– Company requirements in terms of quality, safety, quantity and cost;

– Proprietary characteristics of individual raw materials;

– Reliability in supply and the local conditions for sustainable production.

Direct procurement provides the following benefits to farmers and co-

operatives:

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– An understanding of Nestlé’s quality and safety requirements;

– Objective and transparent evaluation of raw material quality;

– transparent price policy providing farmers a reference level of prices for

their raw materials, thus leaving them with the choice as to where to sell

their produce;

– Quality premiums that encourage farmers to achieve and maintain high

quality standards. If warranted, Nestlé may assist farmers to improve their

quality, yield and economic competitiveness.

Corporate Social Responsibilities

They believe that every single company, no matter where in the world it

operates, ought to be fully integrated into the local social, cultural &

economic life. They must be good corporate citizens, and give back to the

societies to which they belong.

There are two ways of fulfilling our responsibility and practicing corporate

Social Responsibility:

v Through social investments: giving to charities, leading and supporting

cultural or welfare initiatives.

v Through the realization that businesses create social and environmental

impacts, both positive & negative, through the daily operations of their

value chain.

Our operations throughout the world are committed to making full use of

these tools. Thus Nestlé people everywhere are involved in the many

programs and projects they have designed to strengthen local communities

and nations.

They are heavily involved in projects relating to our own areas of expertise,

such as nutrition education & research, health projects, and agricultural

assistance. In times of crisis they are often amongst the first on the scene to

help with humanitarian relief aid and food donations.

To help culture & society flourish, they do our best to encourage a host of

other activities: they support charities, education and training initiatives,

art and cultural events, sport events and HIV/AIDS prevention.

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Responsibility to society:

Taking the Nestlé concept of corporate Social Responsibility to heart, they

are deeply involved in social investment and humanitarian aid.

v They are committed to Pakistan's long-term betterment, and strictly follow

the code of corporate governance:

v They deal fairly with stakeholders.

v Serves our consumers through safe, high quality products & communicate

with them responsibly.

v Adhere to environmentally safe industrial practices

v Actively involved in several social action programs (SAPs) to improve the

lives of our country's under-privileged people.

v They adhere to the global Nestlé philosophy of Creating Shared Value.

Our dairy suppliers in the Punjab's milk district can attest to the

agricultural and technical support they offer them.

v During our manufacturing process they are careful to minimize

environmental impact and value employee welfare highly.

v Finally, they try to benefit our consumers by spreading awareness about

healthy nutrition and lifestyles as they’ll as constantly developing or

improving existing products for health, nutrition and wellness.

Responsibility to environment:

In line with Nestlé's global commitment, Nestlé Pakistan is dedicated to

playing its role in helping to protect the environment. They comply with the

Environmental Act (1997), and try to ensure that at every stage of our

operations, the environmental impact is minimal.

Thus, at the raw materials stage, they support sustainable agricultural and

dairy farming practices, including environmental protection.

When it comes to production, all our factories try to maximize eco-

efficiency, i.e. increase production while minimizing resource consumption,

waste and emissions.

Our factories are equipped with complete testing and monitoring facilities

for waste and air emissions. To eliminate air pollution, they have stopped

using heavy fuel oil in our factories, which are now run on clean natural

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gas. This has reduced our emissions into the atmosphere to they’ll below

the legal limits.

Our Sheikhupura & Kabirwala factories have elaborate water treatment

systems to prevent wastewater from polluting the environment.

Natural gas incinerators at our Sheikhupura & Kabirwala factories are used

to safely dispose of material that cannot be recycled & dumped.

Our factories have environment committees to manage routine environment

issues and review performance. Environmental impact assessment is done

in advance for every new project and measures are adopted to minimize

adverse impacts on the environment. Our employees regularly undergo

training to inculcate awareness about environment-friendly practices.

Earthquake Relief

In October 2005, the biggest natural calamity in our history struck Pakistan.

Thousands died and millions they are left homeless after a massive

earthquake hit our mountainous northern areas. In step with the rest of the

nation, Nestlé Pakistan responded immediately, putting its infrastructure

and resources to work in the affected areas.

First response:

When the earthquake struck, Nestlé Pakistan responded instantly, even

before the magnitude of the disaster had dawned upon the nation. They

immediately donated food and beverage items.

Within two days, they had established a crisis committee under the

supervision of our Managing Director. The same day, the management team

left to visit the affected areas, and by 11 October, the first six Nestlé trucks

left our factories, bearing bottled water, powdered and UHT milk and ready-

to-cook MAGGI noodles.

Instead of burdening the government and relief agencies, they aggressively

reactivated our own shattered distribution channels to bring supplies to the

people who needed them most and established six camps to distribute relief

goods.

Despite blocked roads, grave logistical challenges & an atmosphere of fear

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and suffering, our teams, consisting of about forty Nestlé employees and

distributors, they went out and distributed Nestlé products to the affecters.

Within two days our teams reached the worst-hit areas around

Muzaffarabad, Bagh and Mansehra. They worked in collaboration with the

Pakistan Air Force and arranged for supplies to be airdropped to the most

inaccessible areas.

Other teams of Nestlé volunteers supported relief work undertaken by other

agencies around the affected areas.

As a result of our swift and carefully planned action, they are able to

distribute 80 trucks of goods, worth Rs 20 million. Two 10-ton trucks of

drinking water they are dispatched to Muzaffarabad Hospital, and our

volunteer teams ensured that goods they are distributed fairly and

efficiently to those who needed them most.

After a month:

After the crisis comes a time for rebuilding shattered lives. Among our

reconstruction efforts are the following initiatives:

v They have allocated an amount of Rs 20 million, raised through employee

contributions, matching grants and contributions from other Nestlé

markets. This amount will be used to adopt and reconstruct a model village

in Azad Kashmir.

v They are thankful that no Nestlé employee was personally affected,

though a few lost family members and property. They have compensated all

employees, distributors and their staff for homes destroyed, to the tune of

Rs 4.1 million.

v They intend to build an orphanage in the affected areas for the hundreds

of children who lost their parents in this disaster.

v They are initiating a livestock health improvement program to help the

locals rebuild their shattered lives.

v Our parent company, Nestlé SA has donated an additional Rs 16 million

for reconstruction and rehabilitation work.

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Pitching in:

Nestlé employees worked tirelessly to bring aid to earthquake victims. They

are immeasurably proud of our people for their contributions: Nestlé

employees donated Rs 3.3 million from their own salaries. Nestlé employees

in other countries also stepped forward and donated to the Nestlé relief

fund. Five teams of staff volunteers worked day and night in the affected

areas to ensure that relief goods got where they are needed. A medical

detailing team worked with the students of King Edward Medical

University, Lahore, to collect medicines worth Rs 175,000. Our parent

company, Nestlé SA has donated an additional Rs 16 million for

reconstruction and rehabilitation work.