Nestlé in society Creating Shared Value and meeting our commitments 2015
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<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 />
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 />
Human rights<br />
Promot<strong>in</strong>g respect for the basic rights <strong>and</strong> freedoms to which<br />
all people are entitled.<br />
Sub-issues def<strong>in</strong>ed<br />
• Child lab<strong>our</strong>: employment of children <strong>in</strong> any work that deprives<br />
children of their childhood, <strong>in</strong>terferes with their ability to attend<br />
regular school, <strong>and</strong> that is mentally, physically, socially or<br />
morally dangerous <strong>and</strong> harmful.<br />
• Lab<strong>our</strong> rights: respect<strong>in</strong>g lab<strong>our</strong> rights <strong>and</strong> hav<strong>in</strong>g positive<br />
relations with unionised employee groups <strong>and</strong> representatives.*<br />
• L<strong>and</strong> rights: acquisition of l<strong>and</strong> <strong>and</strong> accompany<strong>in</strong>g res<strong>our</strong>ces<br />
while respect<strong>in</strong>g exist<strong>in</strong>g l<strong>and</strong> rights.<br />
• Human rights <strong>in</strong> the upstream supply cha<strong>in</strong>: among <strong>Nestlé</strong><br />
suppliers, promot<strong>in</strong>g respect for the basic rights <strong>and</strong> freedoms<br />
that all people are entitled to.<br />
*Issue is covered <strong>in</strong> the chapter on Our people.<br />
Food safety<br />
Ensur<strong>in</strong>g a high quality product <strong>and</strong> prevent<strong>in</strong>g health risks<br />
aris<strong>in</strong>g from h<strong>and</strong>l<strong>in</strong>g, preparation <strong>and</strong> storage throughout the<br />
value cha<strong>in</strong>.<br />
Our <strong>commitments</strong><br />
Our <strong>commitments</strong> reflect the material issues of <strong>our</strong> bus<strong>in</strong>ess<br />
<strong>and</strong> help shape <strong>our</strong> strategy for cont<strong>in</strong>uous improvement:<br />
• Assess <strong>and</strong> address human rights impacts <strong>in</strong> <strong>our</strong> operations<br />
<strong>and</strong> supply cha<strong>in</strong>;<br />
• Elim<strong>in</strong>ate child lab<strong>our</strong> <strong>in</strong> key commodities;<br />
• Work aga<strong>in</strong>st corruption <strong>and</strong> bribery; <strong>and</strong><br />
• Ensure that all employees <strong>and</strong> stakeholders can easily<br />
report possible compliance violations.<br />
Our progress aga<strong>in</strong>st the commitment objectives is <strong>in</strong>dicated<br />
throughout the chapter us<strong>in</strong>g the follow<strong>in</strong>g icons:<br />
Achieved<br />
In progress<br />
Not yet achieved<br />
New objective<br />
Respect for human rights has always been part of<br />
how we go about bus<strong>in</strong>ess – not because it is an<br />
obligation, but because it is just the right th<strong>in</strong>g to do."<br />
Paul Bulcke, Chief Executive Officer, <strong>Nestlé</strong><br />
(Keynote speech at the annual UN Forum on<br />
Bus<strong>in</strong>ess <strong>and</strong> Human Rights, Geneva, Switzerl<strong>and</strong>,<br />
December 2014)<br />
Governance <strong>and</strong> management systems<br />
Responsibility for the supervision <strong>and</strong> management of the<br />
Group ultimately rests with the Chairman, the CEO <strong>and</strong> other<br />
members of the Executive Board, supported by a number of<br />
other governance bodies, <strong>in</strong>clud<strong>in</strong>g <strong>our</strong> Group Compliance<br />
Committee. All relevant functions with<strong>in</strong> the Group are<br />
represented at senior level, <strong>and</strong> m<strong>in</strong>utes of the committee’s<br />
meet<strong>in</strong>gs are shared with the CEO.<br />
Specific activities of the committee <strong>in</strong>clude:<br />
• Driv<strong>in</strong>g <strong>Nestlé</strong>’s cross-functional compliance programme<br />
<strong>and</strong> key compliance <strong>in</strong>itiatives <strong>and</strong> cont<strong>in</strong>uously enhanc<strong>in</strong>g<br />
the compliance culture across the Group;<br />
• Provid<strong>in</strong>g a platform for <strong>in</strong>ternal coord<strong>in</strong>ation;<br />
• Receiv<strong>in</strong>g brief<strong>in</strong>gs on compliance-related <strong>in</strong>itiatives <strong>and</strong><br />
provid<strong>in</strong>g cross-functional <strong>in</strong>put;<br />
• Identify<strong>in</strong>g deviations from best practice <strong>and</strong> driv<strong>in</strong>g the<br />
implementation of appropriate action; <strong>and</strong><br />
• Promot<strong>in</strong>g the implementation of the <strong>Nestlé</strong> Corporate<br />
Bus<strong>in</strong>ess Pr<strong>in</strong>ciples <strong>and</strong> other policies.<br />
The Human Rights Work<strong>in</strong>g Group (HRWG) complements the<br />
m<strong>and</strong>ate of the Group Compliance Committee by focus<strong>in</strong>g on<br />
human rights-related issues exclusively. Other important<br />
bodies deal<strong>in</strong>g directly or <strong>in</strong>directly with human rights <strong>and</strong><br />
compliance issues <strong>in</strong>clude the <strong>Nestlé</strong> <strong>in</strong> Society Board, the<br />
Issues Round Table, the Operations Water Task Force, the<br />
Child Lab<strong>our</strong> <strong>and</strong> Women’s Empowerment Steer<strong>in</strong>g Group,<br />
<strong>and</strong> the <strong>Nestlé</strong> Water Task Force.<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> 224