The principle of shared value states that businesses can create economic value and at the same time, also creates value for the society through addressing its needs. Nestlé, a Switzerland-based food and beverage company, demonstrates this concept. Nestlé is best positioned to create shared value in the field of rural development. This was done by increasing farmers’ income and through the provision of financial support for them. Nestlé also helps low-income farmers to become suppliers of their own agricultural produce through its “Agripreneurship” program, hence generating income to support their families and grow their businesses. A total of 300,000 farmers were trained through capacity-building programs in 2013 and 47.6 million Swiss francs were given as financial assistance to dairy farmers. Nestlé also aims to increase transparency and traceability in its supply chain to share them with its consumers and stakeholders.
In my view, Nestlé demonstrates the concept of shared value perfectly. It addresses the needs of the society, in this case to build an environment conducive to farming and also supporting farming as a business, to fulfill both its ethical duty and the growth of its business. In terms of its business growth, I believe that it will maintain a secure and long-term supply of ingredients with its farmers, which will be essential for the growth of global demand. Nestlé’s transparency in sharing where and how their ingredients originate to suppliers will also improve its practices, hence improving its brand reputation internationally.