Nestlé in society Creating Shared Value and meeting our commitments 2015
nestle-csv-full-report-2015-en
nestle-csv-full-report-2015-en
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong>:<br />
Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong><br />
Nutrition, health<br />
<strong>and</strong> wellness<br />
Rural development<br />
Water<br />
Environmental<br />
susta<strong>in</strong>ability<br />
Human rights<br />
<strong>and</strong> compliance<br />
Our<br />
people<br />
G4-2, Investment G4-DMA, Non-discrim<strong>in</strong>ation G4-DMA, Freedom of association <strong>and</strong> collective barga<strong>in</strong><strong>in</strong>g G4-DMA, Child labor G4-DMA, G4-HR5, Forced or compulsory labor G4-DMA,<br />
Indigenous rights G4-DMA, Supplier human rights assessment G4-DMA, Human rights grievance mechanisms G4-DMA, Anti-corruption G4-DMA, Compliance G4-DMA (Society),<br />
Customer health <strong>and</strong> safety G4-DMA, Customer privacy G4-DMA, Compliance G4-DMA (Product responsibility)<br />
Material issues<br />
<strong>Nestlé</strong> uses a formal materiality process to identify the most<br />
important issues for <strong>our</strong> stakeholders <strong>and</strong> <strong>our</strong> bus<strong>in</strong>ess. The<br />
results are communicated <strong>in</strong> a materiality matrix.<br />
Our material issues are also considered <strong>and</strong> mapped with<br />
regard to their degree of importance <strong>in</strong> different parts of the<br />
<strong>Nestlé</strong> value cha<strong>in</strong>. In the value cha<strong>in</strong>, ‘Agriculture’ <strong>in</strong>cludes<br />
smallholder farmers with whom we do not have direct<br />
relationships <strong>and</strong> ‘Tier 1 suppliers’ refers to suppliers <strong>in</strong> direct<br />
commercial relationships with <strong>Nestlé</strong>.<br />
The <strong>Nestlé</strong> value cha<strong>in</strong><br />
Agriculture<br />
Tier 1<br />
suppliers<br />
<strong>Nestlé</strong><br />
Retail/<br />
bus<strong>in</strong>ess<br />
channels<br />
Consumers<br />
Each material issue is made up of a number of sub-issues,<br />
which are highlighted dur<strong>in</strong>g the research process. They are<br />
used as a lens to help def<strong>in</strong>e the scope of analysis. In this<br />
section, we have provided a synthesis of the f<strong>in</strong>d<strong>in</strong>gs related to<br />
human rights <strong>and</strong> compliance.<br />
Three material issues fell under the banner of human rights<br />
<strong>and</strong> compliance that were rated as be<strong>in</strong>g of concern to <strong>our</strong><br />
stakeholders <strong>and</strong> of strategic importance to <strong>our</strong> bus<strong>in</strong>ess:<br />
bus<strong>in</strong>ess ethics, which <strong>in</strong>cludes consumer privacy; executive<br />
compensation; fair tax; governance <strong>and</strong> transparency;<br />
bus<strong>in</strong>ess <strong>in</strong>tegrity; <strong>and</strong> fraud, bribery <strong>and</strong> corruption; human<br />
rights, <strong>in</strong>clud<strong>in</strong>g lab<strong>our</strong> relations, <strong>and</strong> issues <strong>in</strong> the upstream<br />
supply cha<strong>in</strong>, such as child lab<strong>our</strong> <strong>and</strong> rights l<strong>in</strong>ked to l<strong>and</strong><br />
ownership; <strong>and</strong> food safety.<br />
Uphold<strong>in</strong>g ethical pr<strong>in</strong>ciples <strong>in</strong> <strong>our</strong> bus<strong>in</strong>ess <strong>and</strong> supply<br />
cha<strong>in</strong> is fundamental to who we are as a responsible bus<strong>in</strong>ess<br />
<strong>and</strong> underp<strong>in</strong>s <strong>our</strong> licence to operate. Ensur<strong>in</strong>g the highest<br />
st<strong>and</strong>ards of food safety <strong>and</strong> quality is essential to ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g<br />
the trust we have built <strong>in</strong> <strong>our</strong> bus<strong>in</strong>ess <strong>and</strong> is fundamental to<br />
<strong>our</strong> bus<strong>in</strong>ess success. Our responsibility to respect human<br />
rights across <strong>our</strong> supply cha<strong>in</strong> is critical to the security <strong>and</strong><br />
wellbe<strong>in</strong>g of <strong>our</strong> workforce <strong>and</strong> suppliers.<br />
Our stakeholders are work<strong>in</strong>g to enhance disclosure of tax<br />
payments, implementation of anti-corruption measures,<br />
appropriate executive compensation <strong>and</strong> adoption of the best<br />
food safety practices. They are acutely concerned about<br />
human rights <strong>and</strong>, as we advance <strong>our</strong> work on child lab<strong>our</strong> <strong>and</strong><br />
l<strong>and</strong> rights, we have an opportunity to collaborate more with<br />
<strong>our</strong> stakeholders.<br />
The table below shows the outcomes of <strong>Nestlé</strong>’s most<br />
recent materiality analysis <strong>in</strong> 2014. The UNGP Report<strong>in</strong>g<br />
Framework has been adopted s<strong>in</strong>ce then, so the 11 salient<br />
issues are not necessarily reflected <strong>in</strong> their entirety <strong>in</strong> this<br />
table. However, they will be taken <strong>in</strong>to account <strong>in</strong> <strong>Nestlé</strong>’s next<br />
materiality analysis <strong>in</strong> 2016.<br />
MATERIALITY ISSUE VALUE CHAIN KEY: Moderate Significant Major<br />
Agriculture Tier 1<br />
suppliers<br />
<strong>Nestlé</strong><br />
Retail/<br />
bus<strong>in</strong>ess<br />
channels<br />
Consumers<br />
Bus<strong>in</strong>ess ethics<br />
Uphold<strong>in</strong>g ethical pr<strong>in</strong>ciples <strong>in</strong> the bus<strong>in</strong>ess <strong>and</strong> workplace.<br />
Sub-issues def<strong>in</strong>ed<br />
• Consumer privacy: the h<strong>and</strong>l<strong>in</strong>g <strong>and</strong> protection of sensitive<br />
personal <strong>in</strong>formation that <strong>in</strong>dividuals provide <strong>in</strong> the c<strong>our</strong>se of<br />
everyday transactions with companies.<br />
• Executive compensation: fair compensation for executives to<br />
reward personal <strong>and</strong> company performance.<br />
• Fair taxes: payment of taxes <strong>in</strong> accordance with laws <strong>and</strong> <strong>in</strong> a<br />
way that is proportionate to size <strong>and</strong> contributes to <strong>society</strong>.<br />
• Governance <strong>and</strong> transparency: develop<strong>in</strong>g structures that<br />
enable oversight, accountability <strong>and</strong> transparency at all levels of<br />
the bus<strong>in</strong>ess.<br />
• Fraud, bribery <strong>and</strong> corruption: zero tolerance towards<br />
deception, trickery, breach of confidence, abuse of power or an<br />
offer of advantage to ga<strong>in</strong> unfair or dishonest advantage.<br />
<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong> – Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong> <strong>and</strong> meet<strong>in</strong>g <strong>our</strong> <strong>commitments</strong> <strong>2015</strong> 223