Creating shared value is an activity that will satisfy the need of the company, at the same time, solving some social problems. Realizing how meaning this activity is, more and more companies started to pay attention to hold some specific activities to create shared value. Nestlé is a very good example. This company focuses on different kinds of social problems, such as nutrition, rural development, sources. In this blog I would like to introduce sources, which I think can be the best presentation of shared value.

Nestlé guarantees their raw materials are fresh and natural. Taking milk as an example, Nestlé require their supplier, the farmers, to produce the milk on a daily basis, ensuring the materials are fresh. In order to improve the quantity and quality of the milk, Nestlé will offer technical and financial assistance and veterinary service to the farmer.

From what Nestlé have done, we can know that they are creating shared value. By providing several services for farmers, Nestlé can gain stable suppliers and high quality materials. These make milk products become best sellers of Nestlé and help Nestlé make a huge fortune. On the other side, this activity also creates social value. First of all, farmers can gain more salary by being a supplier. Moreover, as the incomes of farmers become higher, the development of rural area will definitely be speeded up. Nestlé makes profit, at the same time, paying back to society by solving problems.