Ethical decision leads to sustainable supply chain.
Around March last year, Nestlé was in the midst of controversy with the Greenpeace organization due to its use of palm oil from Sinar Mas, a Indonesian Palm oil supplier. The issue regarding Sinar Mas was that it was causing serious damage to the rain-forests in Indonesia through illegal deforestation. After weeks of public scrutiny, Nestlé ended their partnership with Sinar Mas and made a commitment to only use sustainable Palm oil in its products.
advertising campaign by Greenpeace org. against Nestlé
Recently in September, Nestlé announced that it was going to resume its partnership with Smart, the agribusiness and food division of Sinar Mas. The significance of this decision by Nestlé is highlighted by the efforts of creating a sustainable supply chain. After Nestlé stopped its dealings with Sinar Mas, Nestlé collaborated with the NGO forest trust to ensure that its palm oil suppliers were adhering to the rules of the industry. Companies such as Nestlé have a responsibility to ensure that its suppliers maintain sustainability.
Who supplies this palm oil?
While the companies image is at stake, it also ensures that in the long term there will be less and less third-party’s supplying palm oil that effects the environment. Nestlé made an impact by abiding to its principles and working with NGOs that guided the company through the process.
Sources:
2) http://www.guardian.co.uk/sustainable-business/nestl-ngo-clean-up-palm-oil-supply-chain
