Nestle, Creating Shared Value
Not surprisingly, Nestlé is the first company to come up when I searched for “companies who create shared value”. Drawing from Jessica’s post, I also agree that Nestle shows the concept of shared value perfectly. They are one of the few companies who realize that social problems are as central to the core business as economic problems. So how does Nestlé create shared value?
Realizing that “this” is the largest business opportunity they have
The concept of shared value is contrary to the idea of corporate social responsibility, where doing good is separate from profit maximization. Whereas, the value of decreasing negative externalities through creating shared value is integral for making profits. Nestlé acknowledges that shared value is crucial in creating long term value for shareholders by offering products and services that help people improve their nutrition, health and wellness.
Collaboration with NGOs and government
As Michael Porter says, the key now is to support deeper collaboration with NGOs and government to pull entities together in the name of progress. Nestle is currently partnering with UN Global and the Danish Institute of Human Rights to assess and address human rights impacts in their operations and supply chain.
I believe that Nestlé ’s forward thinking will help the company sustain success in the years to come. Their commitment, progress and objectives to create shared value will put Nestle in front of other companies who are trapped in an outdated approach to value creation. However, being one of the top multinational companies in the world, Nestlé will have to abide to their commitments well since the smallest fault the company does will attract global attention.