NESTLÉ

Corporate Governance & Business Ethics: Nestlé

Table of Contents

INTRODUCTION1

THEORETICAL GROUNDING1

COMPANY BACKGROUND4

Products4

Market and Sales6

CORPORATE SOCIAL REPORT10

STAKEHOLDER PERSPECTIVES AND CRITICISM12

NESTLE CSR15

Staff15

Customers16

Environment17

Suppliers17

Society18

CONCLUSION18

REFERENCES19

Corporate Governance & Business Ethics: Nestlé

Introduction

Nestlé with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestlé. In the beginning, Nestlé Company specializes in selling infant milk; which provide alternative for mothers who could not breast feed their infant (Thanassoulis 2010, p. 160). The value of the product was soon recognized, as it saved many children's life. In 1905 Nestlé Company merged with the Anglo Swiss Milk Company by the Page Brothers. The merger provides the company with a broader product line. WWI provides the company with new demand in the form of government contract. After the war ends, consumer started switching the type of milk preference. Nestlé was able to respond quickly to the change of demand; thus giving them a very high advantage to stay competitive in the market (nestle.com).

Theoretical Grounding

Nestlé is a successful company that has been around for 145 years. The company's “objectives are to be recognized as the world leader in Nutrition, Health, and Wellness, trusted by all its stakeholders and to be the reference for financial performance in its industry”. A review of the three most recent annual reports, which include the company's balance sheet and income statement, displayed how Nestlé is trying to be the reference of financial performance in its industry (Thanassoulis 2010, p. 160). Reviewing the company's assets, liabilities, and revenues reiterates Nestlé's success over the past couple of years (nestle.com).

The Nestlé currently known today is a merger between Henry Nestlé's company and the Foundation of Anglo-Swiss Condensed Milk Co. Henry Nestlé originally started the company to find an alternative to breastfeeding to save the infants who could not breastfeed. Henry Nestlé found the solution, which eventually led to the start of his company. Today Nestlé is seen across grocery stores; however, the general population identifies them based on their brands (Agarwal 2009, p. 109). A few of Nestlé's brands include Gerber, Kit Kat, Nescafé, Lean Cuisine, Carnation, Friskies, and PowerBar. Nestlé's most recent achievement was the purchase of Kraft's frozen pizza business. The company has been successful for the last 145 years and continues to grow (nestle.com).

Nestlé Company is advertising its products with the association of MUDRA advertising company. This advertising company studies the market and according to the market developed commercials for Nestlé products in various languages. The Nestlé advertisements are booked and running in almost all the channels of UK. Nestlé UK is promoting its products in different exhibitions & trade shows and organizes different event like children sport meet (nestle.com). The company places banners, poster etc for exhibiting its products and that helps in promoting its products. Nestlé UK also provides free gifts to the children such as school kit i.e., pen scale etc, with Maggie noodles & chocolates, Free Cricket bag or a sport watch, badminton racket, bag etc (Tellis, 2004).

Nestlé is implementing the robust marketing strategies as they are showing a steady performance over ...