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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

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