ETHICS OF BUSINESS

TOPIC: NESTLE COMPANY

PRESENTED BY:

ANUM IQBALBEENISH TARIQMAHVUSH WAQARMARIA KHALID http://www.youtube.com/watch?

v=XO0mfUso1vg&feature=related

http://www.youtube.com/watch?v=QYPsFvSbPcE

ABOUT NESTLE

• Nestlé is the world's leading Nutrition, Health and Wellness company. We are committed to increasing the nutritional value of our products while improving the taste.

• Since Henri Nestlé developed the first milk food for infants in 1867, and saved the life of a neighbor’s child, the Nestlé Company has aimed to build a business as the world's leading nutrition, health and wellness company based on sound human values and principles.

• More than just offering food and beverages, Nestlé Pakistan is a leading health, wellness and nutrition company. We believe that good food is necessary for a good life. In fact, health and nutrition is more dynamic than ever. Food has evolved from being a necessity to becoming an expression of how we live. This is why Nestlé Pakistan products are developed to provide a safe and healthy source of nutrition toall family members

VISIONS OF THE COMPANY

• We want Nestlé products to be within reach for every single Pakistani. Yet nutritional value and quality remain the most essential ingredients in all our brands.

A History of Service

• Nestlé has been serving Pakistani consumers since 1988, when our parent company, the Switzerland-based Nestlé SA, first acquired a share in Milkpak Ltd.

• Excellence in product safety, quality, and value.

• The consumer's voice is key to Nestlé Pakistan's vision and working

NESTLE’S CODE OF CONDUCT

• We respect the law at all times• We will always act in the best interests of Nestlé• We take pride in Nestlé’s reputation and consider Nestlé’s best

interests also in our outside engagements and activities• Our hiring and people development decisions will be fair and

objective• We are committed to advance Nestlé’s business• We respect and follow the Insider Trading Rules when buying or

selling Nestlé securities• We believe in the importance of free competition.

• We value and protect our confidential information and we respect the confidential information of others• We insist on honesty and we respect the Company’s assets

and property• We condemn any form of bribery and corruption• We compete and do business based only on quality and

competence• We embrace diversity and respect the personal dignity of

our fellow employees• We will consult the Code, comply with its provisions and seek guidance where needed• We take responsibility for ensuring that we all act with integrity in all situations

ETHICAL PRACTICES AT NESTLE COMPANY

CORPORATE SOCIAL RESPONSIBILY;

• Through social investments: giving to charities, leading and supporting cultural or welfare initiatives

• Through the realization that businesses create social and environmental impacts, both positive & negative, through the daily operations of their value chain.

• We 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 we are often amongst the first on the scene to help with humanitarian relief aid and food donations

• To help culture & society flourish, we do our best to encourage a host of other activities: we support charities, education and training initiatives, art and cultural events, sport events and HIV/AIDS prevention.

Human Rights

Nestlé fully supports the United Nations Global Compact’s two guiding principles on human rights.

• Supports and respects the protection of international human rights within its sphere of influence (Principle 1)

• 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 recognises that governments are ultimately responsible for the establishment of a legal framework for protecting human rights within their markets. Nestlé expects each market to respect and follow the local laws and regulations concerning human rights’ practices.

Child Labour

• It is generally acknowledged that the causes of child labour 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 labour 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. Nestlé expects its industrial suppliers and business partners to apply policies that have the same standards as the Company’s Business Principles and reserves the right to audit their compliance

• abides by national laws in all countries in which it has operations and complies with the International Labour Organisation (ILO) Convention 138 on the Minimum Age for Employment and the ILO Convention 182 on the Worst Forms of Child Labour. 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 labour, which include the encouragement of universal primary education and all aspects of economic development worldwide.

• We comply with the Environmental Act (1997), and try to ensure that at every stage of our operations, the environmental impact is minimal.

• When it comes to production, all our factories try to maximizes 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, we have stopped using heavy fuel oil in our factories, which are now run on clean natural gas. This has reduced our emissions into the atmosphere to well below the legal limits.

• In 2005, we upgraded our wastewater treatment plants in both factories. That's not all; we are continually reducing our consumption of raw water per ton of production.

• Irresponsible packaging can have a heavy impact on the environment. To reduce the amount of material used without jeopardizing the safety and quality of our products, we are always working on new packaging solutions that have minimal weight and volume and can be easily recycled.

• 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.

Nestlé Pakistan is involved in a wide range of programmes and projects intended to improve the lives of underprivileged Pakistanis

1. School Rehabilitation and Education Advancement ;

• To help improve education in rural areas, we undertook the rehabilitation of several primary and middle schools, focusing

especially on schools for girls.

• In 2004, in partnership with an NGO, we adopted a school in Pindi Dhallon, Sheikhupura, and achieved such an improvement of educational facilities, including teaching aids and teacher training, that school attendance doubled.

• Three schools were rehabilitated in 2004-05, and we also donated over 100 computers to schools in poor rural and urban communities

2. Research & Development Initiatives • In the 21st century, no country can hope to

progress without a strong commitment to scientific training and research.

• Demonstrating our investment in Pakistan's long-term future, we have committed to help set up a School of Science and Engineering at the world-renowned Lahore University of Management Sciences (LUMS

We value our people and environment and are committed to

• Develop and implement the SH&E Management System at all workplaces and incorporate all applicable SH&E Standards.

• Identify and reduce hazards and environmental aspects in order to;

-  Prevent injuries and damage to health of employees, contractors, visitors and our business.

-Minimise environmental impacts arising from our operation and  products

• Operating our workplaces to meet or exceed legislative and other requirements applicable to Nestlé.

• Establishing measurable objectives and targets for SH&E that are reviewed periodically to ensure continual improvement aimed at:;

-  Eliminating work related injuries and illness.

-  Preventing pollution and improving environmental performance.

• Providing SH&E related information, instruction and awareness to all employees and contractors.

• Communicating and consulting internal and external stakeholders on SH&E matters.

• Ensuring all managers and employees understand their responsibilities and accountabilities to deliver against company’s SH&E Policy.

EARTHQUAKE RELIEF• First responses -When the earthquake struck, Nestlé Pakistan responded

instantly, even before the magnitude of the disaster had dawned upon the nation. We immediately donated food and beverage items.

-Within two days, we 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.

• We 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 and suffering, our teams, consisting of about forty Nestlé employees and distributors, went out and distributed Nestlé products to the affected 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, we were able to distribute 80 trucks of goods, worth Rs 20 million. Two 10-ton trucks of drinking water were dispatched to Muzaffarabad Hospital, and our volunteer teams ensured that goods were distributed fairly and efficiently to those who needed them most .

Aftermaths (EARTHQUAKE RELIEF FUNDS)

• We 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

• We are thankful that no Nestlé employee was personally affected, though a few lost family members and property. We have compensated all employees, distributors and their staff for homes destroyed, to the tune of Rs 4.1 million.

• We intend to build an orphanage in the affected areas for the hundreds of children who lost their parents in this disaster.

Our efforts are focused on1. Well and Hand-Pump Installation

Projects ;• Our first tube-well was completed in

2002 in a village of 3000 inhabitants in Tehsil Dunyapur, Khanewal. A second one was commissioned in 2005 near Chishtian.

• Since then 300 hand pumps have been installed in the arid deserts of Thar and Cholistan.

• Moreover, the residents of villages which host our milk reception centers know that they can always make use of our water pumps

2. Help Centre for Farmers

• We give training in animal husbandry practices, vaccinate and treat their milch animals, help farmers buy feed supplements and fodder seeds, and assist in breed improvement

• This translates into increased milk production, better income, and a better life for farmers

SOCIETY• Taking the Nestlé concept of corporate

Social Responsibility to heart, we are deeply involved in social investment and humanitarian aid.

• We are committed to Pakistan's long-term betterment, and strictly follow the code of corporate governance.

• We deal fairly with stakeholders.

• We serve our consumers through safe, high quality products & communicate with them responsibly. We try to benefit our consumers by spreading awareness about healthy nutrition and lifestyles as well as constantly developing or improving existing products for health, nutrition and wellness

• During our manufacturing process we are careful to minimise environmental impact and value employee welfare highly.

• We are actively involved in several social action programmes (SAPs) to improve the lives of our country's under-privileged people.

• We offer generous financial support to hospitals and organisations that are dedicated to providing services to the poor. Only recently, we donated a mobile dispensary to APWA for its medical outreach programme in a remote community near Hub, Sindh.

• We 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 we offer them.

• We have always responded generously with assistance to victims of natural disasters, such as floods, earthquakes and droughts.

• When the October 2005 earthquake hit Azad Kashmir and the NWFP, we lost no time in reaching out to the affected with

• donations of food products worth millions of rupees

1.Workers Rights Criticisms

Exploiting Farmers ;

• Use child labour and treat them as slaves

• Workers paid low or no wages for their work done in the company

UNETHICAL PRACTICES AT NESTLE

• Union Busting

Extremely Unethical Business Practice

• This paper gives an overview of the campaign against Nestlé and responds to arguments Nestlé has used in the recent past in letters, booklets and briefings

1.Unethical Marketing of Artificial Baby Milk ;• The World Health Organisation (WHO) estimates

that 1.5 million infants die each year because of inappropriate feeding, because children vulnerable to disease are being bottle-fed on breast milk substitutes rather than breastfed whenever possible.

• Artificial milk can harm babies because it does not contain the natural antibodies which a mother's milk provides.

• It is also extremely expensive, so that in many poor countries people dilute it too much to make it last longer, which causes malnutrition.

2. Fraudulent Labeling In November 2002, police ordered Nestlé

Colombia to decommission 200 tons of imported powdered milk. The milk had come from Uruguay under the brand name Conaprole, but the sacks had been repackaged with labels stating they had come from a local Nestlé factory, and stamped with false production dates of 20th September and 6th October 2002. The real production dates were between August 2001 and February 2002.

3. Promoting unhealthy food

• A recent report by the UK Consumers Association claims that 7 out of the 15 breakfast cereals with the highest levels of sugar, fat and salt were Nestlé products

• Nestlé dismisses the role of corporate responsibility in promoting healthy food.

Severe Environmental Concerns

1.Promotion of Genetically Modified Food;

2.Illegal extraction of groundwater ;

3.Pollution Nestlé has been involved in a number of

pollution incidents, including one at a pumpkin processing plant . Incidents of this kind show the hazardous nature of industrial food production: even apparently benign materials like pumpkin can turn into a serious hazard in large enough quantities. Nestlé has also been involved in water pollution incidents in Britain.

4. Promoting untested nano-technology

Animal & Public Welfare

• Pyres of Burning Animals;

SUMMARY

VIDEO!!!