Nestlé’s ‘Creating Shared Value’ programme focuses on nutrition, water, and rural development

To Press Releases listJun 14, 2011

  • Organizes activities to promote good health, provide nutrition education, and create career opportunities for over 300,000 people in 120 districts

Bangkok (15 June 2011) – Nestlé (Thai) Ltd., a leading food and beverage company in Thailand, today hosted its “Growing Together” seminar, addressing private organizations’ role in Creating Shared Value for the community, and announced its campaign to promote balanced nutrition and good health, as well as creating career opportunities to elevate quality of life. Its campaign aims to cover 120 rural districts and reach over 300,000 people.

Mr. Nophadol Siwabutr, Corporate Affairs Director, Nestlé (Thai) Ltd., said, “The ‘Creating Shared Value’ programme is at the heart of how Nestlé runs its business. It’s a new and unique approach pioneered by Nestlé on the role of business in society. We are focusing on three main areas – water, nutrition, and rural development – all of which are very important to the communities in which we operate. When we operate our business we want to create shared value to benefit society at the same time.”

He said that the three areas are where Nestlé “can contribute most to improve the health and wellness of Thai people in communities around the country.”

“As far as nutrition is concerned, last year Nestlé reformulated over 6,500 products based on nutrition and health considerations in order to reduce malnutrition and over-nutrition among other things.

“In the area of water resources, we have adopted rigorous standards to reduce water consumption at our plants and facilities and increasingly contribute to sustainable community water management schemes. That is because water scarcity is the number one environmental priority for the food sector and it affects the developing world.

“In rural development, we strive to create a positive long-term impact on environmental development and standards of living, because we believe that we owe a large part of our success to emerging economies like Thailand.”

Mr. Nophadol also talked about the recent Global Creating Shared Value Forum held in May 2011 in Washington DC, USA, entitled ‘Creating Shared Value: The Role of Business in a Changing Global Context’ where Nestlé co-hosted with the Atlantic Council to introduce the concept of Creating Shared Value to an audience of leading authorities.

Commenting at the forum on how business can contribute to Creating Shared Value, Mr. Peter Brabeck-Letmathe, Chairman of Nestlé S.A., said, “The problems of society today cannot be solved by anyone alone. It will only be possible to solve these problems if businesses, governments and NGOs find a way to work together. Global challenges such as the need to double food production, the increasing demand for energy, and water management issues, mean that business today must rethink its role, especially on how it can continue to society.”

Mr. Nophadol said, “Since Nestlé is part of the business sector, we are committed to make a positive contribution to the communities we are involved with. We produce nutritional food to keep everyone healthy, and, at the same time, seek to improve the quality of life and the environment, which is in line with Nestlé’s Creating Shared Value guidelines to grow sustainably together with society.”

In Thailand, Nestlé has implemented the following initiatives to address the challenges of nutrition, water and rural development:

  1. Nestlé . This activity is one of Nestlé’s Creating Shared Value programme’s highlights. Launched in 2009, the project has a budget of Bht 30 million. Its objective is to provide nutrition education, and promote good health to elevate quality of life for people in the community. This project has already reached approximately 300,000 people in 120 rural districts.
  2. Healthy Thai Kids. Nestlé has worked with the ministries of Public Health and Education since 2004 to impart essential knowledge and build understanding on the need for proper diet, nutrition, and exercise among school children, teachers and parents as well as to encourage nutritional consumption behavior. Throughout the 6 years, Nestlé has actively organized activities to educate and provide educational aid to over 12,000 schools nationwide.
  3. Coffee Farming and Developing Project. Nestlé supports the Doi Tung Development Project in developing Arabica coffee to produce saplings. Launched in 1988, the programme helped select compatible strains of coffee for planting on high altitudes (1,200-1,400 m above sea level) which are then handed out to hill tribers for cultivation. Since 2004, Nestlé has given out approximately 300 kg of the high quality Arabica seeds, equivalent to 1.1 million saplings. In addition, Nestlé also supports the development of Robusta coffee which is popular in the Southern part of Thailand. It has initiated an experimental and demonstrational Robusta coffee plantation, and studied different strains of Robusta coffee in Chumporn province. The company also set up a center to buy coffee directly from the farmers in Chumporn and Ranong as well as introducing the production of quality Robusta saplings. 1.6 million saplings have been distributed to farmers to help assure quality coffee for consumers and a stable career for the farmers.
  4. High Quality Raw Milk Production. Nestlé supports and provides training for dairy farmers through four dairy cooperatives. The company’s dairy specialists visit farms and give dairy farmers training on how to boost farm productivity and improve the quality of raw milk.
  5. Nescafe Street Barista. Launched in 2006, the programme aims to produce non-franchise business owners. By the end of 2010, there have been over 3,500 participants.
  6. Run a Nestlé ice-cream shop for only Bht 5,999. This is one of the company’s career-building schemes for modern entrepreneurs and consumers. The programme promises steady income generation with a modest investment cost. By the end of 2010, 2,200 people have participated in this programme.

Nestlé has a clear-cut water management policy for all Nestlé plants in Thailand to reduce water consumption in their manufacturing processes. The policy also includes reusing the water after having recycling it. The instant coffee plant in Chacheungsao has been certified by the industrial organization of the province since 2009 that there has been zero waste water release from the factory. As for the other 6 plants, they successfully reduced their water consumption by an average of 5%, per year.

The principles of Creating Shared Value (CSV) are the basic approach with which the company conducts its business since the founding of Nestlé in 1866 which states that in order to create long-term value for its shareholders, it has to create value for society. However, the concept title was officially adopted in 2005. 

The concept is defined by Mr. Michael E. Porter, a leading authority in competitive strategy from Harvard Business School, who said that conventional corporate social responsibility (CSR) activities carried out by organizations do not necessarily create real value for business and society. However, Nestlé’s CSV is an approach to increasing the company’s competitive advantage and to contribute to the potential and growth of its surrounding communities, benefiting both the company and society.