Nestlé USA: Assessment of the Company’s SCR Activities

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Introduction

The food industry is one of the few realms of economy that will always remain in high demand for understandable reasons. Although sweets and chocolate as the subcategory of the industry in question cannot be seen as indispensable products, they are still highly popular, which has allowed companies operating in this economic setting to thrive (Ali et al., 2018). Nestlé, a Swiss company founded in 1866, though currently being represented in the food industry, in general, is primarily known for its chocolate products, which has defined its current position in the U.S. market (Kee et al., 2021). However, these are not only clever marketing and PR strategies that have made Nestlé US enter the top of the American food market. Apart from its stellar quality management and marketing, Nestlé US owes its success to the CSR activities that it has been implementing in the U.S. setting to promote collaboration and employee engagement across its departments.

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CSR Initiatives: Description

In the U.S. environment, the focus on diversity and collaboration that Nestlé US has been promoting appears to have been the most effective framework so far. Specifically, the consistent focus on the importance of sustainability as a basis for decision-making in the workplace appears to have been one of the key initiatives that has defined the Nestlé US’s current perception in the target market (Kherchi et al., 2019). In relation to the specified initiative, the activities linked to the company’s current PR status, particularly, its recent announcement of its sustainability plans, deserves a notice. Specifically, in its 2020 press release, Nestlé US noted that it “released a plan to achieve net zero greenhouse gas (GHG) emissions, a phased approach to halve its emissions by 2030 and realize net zero by 2050” (“Nestlé USA announces accelerated sustainability plans,” 2020, para. 2). Therefore, the development and implementation of the GHG-related plan in question can be considered one of the key CSR activities that Nestlé US has undertaken recently.

Another vital CSR-related activity that Nestlé US has recently undertaken involves the support of the Dairy Net Zero initiative, which has recently been introduced into the American food industry setting. In essence, the specified initiative suggests that the organizations supporting it should strive toward minimizing the levels of carbon emission to a net zero by 2050 by encouraging all farming communities to adopt the latest technological solutions allowing them to reduce the CO2 levels emission (Nestlé, 2021). In turn, Nestlé US has been supporting the specified initiative by building awareness and supporting the dairy community by investing in the promotion of technological advances within it (Zain et al., 2021). As a result, Nestlé US has reinforced the support for sustainable agriculture within the US food sector, thus, contributing to the improvement in the management of CO2 emission levels.

Finally, Nestlé US’s collaboration with the UN Global Compact deserves a mentioning as an impressive CSR activity and an important initiative that Nestlé US took in promoting greater responsibility in corporate decision-making and the management of ethical issues within a firm. Namely, Nestlé US has worked with the UN Global Compact to enhance the focus on the 10 UNGC Principles as the universally accepted standards for workplace ethics (Nestlé US, 2021). The specified activity has served to expand Nestlé US’s connections, thus. broadening the company’s scope, while also encouraging Nestlé US to accept the principal corporate ethics standards (Kherchi et al., 2019). As a result, Nestlé US has acquired the universal ethical standards for its CSR-related decisions.

Initiatives Assessment

Each of the activities listed above have reinforced Nestlé US’s potential and ability to confront the issues associated with CSR both on local and global levels. Specifically, the company’s decision to accept the idea of minimizing its CO2 emission rates has allowed Nestlé US to develop a more responsible approach toward the use of resources and the management of the impact that its manufacturing process have on the environment (Skeja & Keskin, 2017). Therefore, given the rise in concerns for environmental issues and the necessity of sustainable resource use, the described initiative appears to be quite valid (Skeja & Keskin, 2017). The effectiveness and results of the initiative in question are also quite impressive since Nestlé US has contributed to the rise in environmental awareness.

In turn, the dairy project that served as the continuation of the described initiative could be seen as the confirmation of Nestlé US’s decision and the reinforcement of its effort to contribute to the common good, which is another valid reason given the significance of sustainability (Gazzola et al., 2018). The fact that Nestlé US has decided to collaborate on a global scale and participate in an initiative designed to change the global perspective on resource consumption indicates that the company has developed a strong sense of CSR and the related values needed to continue working toward the well-being of all stakeholders involved (Gazzola et al., 2018). The results of the initiative and its effectiveness can be proven by the rise in the general rates of awareness concerning sustainability practices within the company’s setting (Nestlé US, 2021).

Finally, the third initiative mentioned above proves that Nestlé US is ready to challenge its own preconceptions regarding the promotion of global sustainability and well-being, while also accepting the values and ideas that might not have been quite applicable to its environment before (Zain et al., 2021). Specifically, Nestlé US’s collaboration with the UN Global Compact and the willingness to accept and comply with the 10 UNGC Principles of sustainable management of corporate issues proves that Nestlé US has introduced significant changes into its organizational setting, as well as that these changes are valid due to the need to promote environmental awareness (Paranamanna & Dissanayake, 2021). Similarly, the effectiveness and the results of the initiative can be described as positive since the collaboration has already attracted positive attention. Namely, the seriousness of the company’s intentions and its willingness to rearrange its performance so that its every member could acknowledge the importance of sustainable resource usage is now evident. So far, the responses toward each of the initiatives have been supportive, which shows that Nestlé US is presently on the right track (Zain et al., 2021). Overall, the initiatives above appear to be well-intended and are believed to have a positive impact on the company and its stakeholders both in the short and long term.

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Recommendations

Although the general direction taken by Nestlé US seems to be quite positive so far, several improvements can be recommended to make the transition to sustainable CSR and decision-making more seamless. Namely, Nestlé US will need to introduce tools for coordinating the implementation of CSR-related initiatives and activities across its corporate setting homogenously. To ensure that all staff members and managers follow the prescribed standards for ethical decision-making, Nestlé US will need to include a control system for maintaining consistency in its management of CSR-related issues and tasks (Ramadhini et al., 2020). For instance, Nestlé US may have to consider improving it communication framework across its organizational environment to ensure that staff members report their decisions and the outcomes of the decisions made to address specific ethical dilemmas arising in the workplace.

Additionally, the social marketing that Nestlé US adopts to advance its cause and promote its message will need to correlate to the actions that the company takes in promoting CSR. Specifically, the use of social marketing as the tool for managing the communication aspect of its CSR more effectively. Specifically, the use of social networks will allow Nestlé US to keep connected with its target community and receive feedback while also providing an account of its accomplishments (Susilowati, 2017). As a result, Nestlé US will be able to control its SCR processes more tightly by ensuring that the premises of CSR are implemented accordingly in the corporate setting and that every staff member adheres to the principles in question fully.

Conclusion

By promoting the principle of collaboration and responsible attitude toward decision-making in regard to the management of resources and the focus on sustainability, Nestlé US has made quite a difference not only in the context of its organizational environment, but also within the global business context. Nestlé US’s three recent initiatives and the associated CSR activities have been geared toward promoting responsible attitudes toward managing resources, as well as a more profound understanding of the global community needs and the role of a company’s corporate policy in meeting these needs. Therefore, Nestlé US has been quite prolific in promoting its CSR principles not only across its organizational context, but also within the industry, in general. Although Nestlé US’s performance has dropped over the past year, the company’s focus on sustainable development as a part of its corporate ethics and the premise for its organizational decision-making is bound to elevate the organization among other companies in the U.S. food industry, thus, contributing to its further boost in revenue. Overall, the course that Nestlé US has been taking can be considered as generally positive in terms of its adherence to the principal concepts of CSR. Focusing on sustainability and responsible decision-making, Nestlé US has been building the organizational setting where staff members are capable of making decisions based on essential organizational values geared toward meeting the needs of key stakeholders.

References

Ali, M. H., Ismail, A., Alam, S. S., Makhbul, Z. M., & Omar, N. A. (2018). Exploring the theory of planned behaviour (TPB) in relation to a halal food scandal: The Malaysia Cadbury chocolate case. International Food Research Journal, 25, S79-S86.

Gazzola, P., Sepashvili, E., & Pezzetti, R. (2018). How sustainable enterprises can drive the sustainable development. European Scientific Journal, 26-36. Web.

Kee, D. M. H., Syakirah, N. H., Najihah, N., Aliya, N. A., & Sikumbang, N. Z. (2021). How Nestle succeed in the food industry: A consumer perspective. International journal of Tourism and hospitality in Asia Pasific (IJTHAP), 4(2), 84-97. Web.

Kherchi, I., Fellague, M., & Haddou, S. A. (2019). How Nestle applied shared value creation in agriculture sector achieving sustainable agriculture and making more profit «Nestle Model». Management & Economics Research Journal, 1(3), 12-26. Web.

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Nestlé. (2021). Nestlé joins US dairy industry to reach net zero carbon emissions by 2050. Web.

Nestlé US. (2021). Our work with the UN Global Compact. Web.

Nestlé USA announces accelerated sustainability plans. (2020). Web.

Paranamanna, A., & Dissanayake, K. (2021). Corporate social reporting and stakeholder accountability: A case of a leading it firm. International Business and Accounting Research Journal, 5(1), 22-33. Web.

Ramadhini, A., Adhariani, D., & Djakman, C. D. (2020). The effects of external stakeholder pressure on CSR disclosure: Evidence from Indonesia. DLSU Business & Economics Review, 29(2), 29-39.

Skeja, A., & Keskin, G. (2017). Corporate sustainability indexes: FTSE 4 good index report on Nestle. Prizren Social Science Journal, 1(1), 30-46.

Susilowati, K. D. S. (2017). The role of social capital in the implementation of Corporate Social Responsibility (CSR): Lesson learned from PT. Unilever Indonesia Tbk. Journal of Innovation in Business and Economics, 1(01), 1-10.

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Zain, N. R. M., Hasan, A., Yusof, S. A. M., & Ali, E. R. A. E. (2021). combating climate change in Malaysia: Green sukuk and its potential. In Handbook of research on Islamic social finance and economic recovery after a global health crisis (pp. 264-279). IGI Global.

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BusinessEssay. 2022. "Nestlé USA: Assessment of the Company’s SCR Activities." September 1, 2022. https://business-essay.com/nestl-usa-assessment-of-the-companys-scr-activities/.

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