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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 />

Employment G4-DMA, Labor/management relations G4-DMA, Occupational health <strong>and</strong> safety G4-DMA, Tra<strong>in</strong><strong>in</strong>g <strong>and</strong> education G4-DMA,<br />

Diversity <strong>and</strong> equal opportunity G4-DMA, Equal remuneration for women <strong>and</strong> men G4-DMA<br />

Grounded <strong>in</strong> a culture based on trust <strong>and</strong> mutual respect, we<br />

seek to ma<strong>in</strong>ta<strong>in</strong> open <strong>and</strong> collective dialogue with <strong>our</strong><br />

employees, their representatives (namely unions) <strong>and</strong> external<br />

stakeholders. It helps us make better decisions <strong>and</strong> develop<br />

stronger relations. We aim to provide an example of good<br />

human rights <strong>and</strong> lab<strong>our</strong> practices throughout <strong>our</strong> bus<strong>in</strong>ess<br />

activities. Our employees have the right to jo<strong>in</strong> organisations<br />

of their own choos<strong>in</strong>g, such as trade unions, <strong>and</strong> to engage <strong>in</strong><br />

constructive negotiations. On top of direct <strong>and</strong> frequent<br />

communication with employees, as <strong>our</strong> workforce develops<br />

<strong>and</strong> changes over time, we canvass their op<strong>in</strong>ions through a<br />

biennial employee survey. In between times, we are act<strong>in</strong>g on<br />

the results.<br />

Consistent with <strong>our</strong> ambition as a lead<strong>in</strong>g Nutrition, Health<br />

<strong>and</strong> Wellness company, we are committed to provid<strong>in</strong>g <strong>our</strong><br />

employees all over the world with good work<strong>in</strong>g conditions<br />

<strong>and</strong> a safe <strong>and</strong> healthy work environment. We diligently<br />

implement <strong>our</strong> Safety <strong>and</strong> Health Roadmap towards<br />

Excellence, with 70% of all <strong>our</strong> employees now covered by<br />

certified occupational health <strong>and</strong> safety st<strong>and</strong>ard OHSAS<br />

18001:2007.<br />

We believe safety <strong>and</strong> health is about people <strong>and</strong> not about<br />

numbers, <strong>and</strong> <strong>our</strong> ambition goes beyond the occupational<br />

environment. Instead, it enc<strong>our</strong>ages concern for the safety<br />

<strong>and</strong> health of <strong>our</strong> employees, both at work <strong>and</strong> outside work,<br />

embrac<strong>in</strong>g the ‘whole life’ concept. In this context, we<br />

recognise that <strong>Nestlé</strong> may have limited control on all variables<br />

that affect employee safety <strong>and</strong> health. Our goal is, therefore,<br />

to enc<strong>our</strong>age, support <strong>and</strong> enable <strong>our</strong> employees to take<br />

personal responsibility <strong>and</strong> choose to live, as well as work,<br />

<strong>in</strong> a safe <strong>and</strong> healthy way.<br />

In the shorter term, we are largely focus<strong>in</strong>g on <strong>our</strong> own<br />

employees <strong>and</strong> on-site contractors but progressively, we are<br />

seek<strong>in</strong>g to positively <strong>in</strong>fluence the safety <strong>and</strong> health of others<br />

throughout <strong>our</strong> value cha<strong>in</strong>, br<strong>in</strong>g<strong>in</strong>g broader benefits to <strong>our</strong><br />

bus<strong>in</strong>ess <strong>and</strong> the communities <strong>in</strong> which we operate.<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 those suppliers<br />

<strong>in</strong> direct 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<br />

to <strong>our</strong> people.<br />

F<strong>our</strong> material issues fall under the banner of ‘<strong>our</strong> people’<br />

that are rated as be<strong>in</strong>g of concern to <strong>our</strong> stakeholders <strong>and</strong> of<br />

strategic importance to <strong>our</strong> bus<strong>in</strong>ess: human res<strong>our</strong>ces,<br />

safety <strong>and</strong> health, community development <strong>and</strong><br />

unemployment, <strong>and</strong> women’s empowerment. Together,<br />

these material issues are a fundamental responsibility for us as<br />

an employer <strong>and</strong> as a responsible company. They are vital to<br />

the wellbe<strong>in</strong>g of <strong>our</strong> workforce <strong>and</strong> for the efficient function<strong>in</strong>g<br />

of <strong>our</strong> operations.<br />

Our stakeholders place particular importance on gender<br />

diversity <strong>in</strong> the workforce <strong>and</strong> at the Board <strong>and</strong> senior<br />

management level. Safety <strong>and</strong> health is another concern for <strong>our</strong><br />

stakeholders <strong>in</strong> both <strong>our</strong> direct operations <strong>and</strong> <strong>our</strong> supply cha<strong>in</strong>.<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> 256

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