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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 />

G4-56, Employment G4-DMA, Freedom of association <strong>and</strong> collective barga<strong>in</strong><strong>in</strong>g G4-DMA<br />

Our <strong>commitments</strong><br />

We shared a number of public <strong>commitments</strong> <strong>in</strong> 2012, <strong>and</strong><br />

cont<strong>in</strong>ue to publish <strong>our</strong> progress aga<strong>in</strong>st them every year. They<br />

reflect the material issues of <strong>our</strong> bus<strong>in</strong>ess <strong>and</strong> help shape <strong>our</strong><br />

strategy for cont<strong>in</strong>uous improvement. We have revised three<br />

exist<strong>in</strong>g <strong>commitments</strong> (see below) to reflect ongo<strong>in</strong>g progress:<br />

• Ensure all <strong>Nestlé</strong> employees are covered by a certified<br />

Safety <strong>and</strong> Health Management System;<br />

• Enhance gender balance <strong>in</strong> <strong>our</strong> workforce;<br />

• Provide tra<strong>in</strong><strong>in</strong>g on Corporate Bus<strong>in</strong>ess Pr<strong>in</strong>ciples, Nutrition<br />

<strong>and</strong> Environmental Susta<strong>in</strong>ability; <strong>and</strong><br />

• Roll out the Global Youth Initiative across all<br />

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

We successfully embedded learn<strong>in</strong>g around Creat<strong>in</strong>g <strong>Shared</strong><br />

<strong>Value</strong> <strong>in</strong>to all of <strong>our</strong> c<strong>our</strong>ses delivered dur<strong>in</strong>g <strong>2015</strong> at <strong>our</strong><br />

<strong>in</strong>ternational tra<strong>in</strong><strong>in</strong>g centre <strong>in</strong> Vevey, Rive-Re<strong>in</strong>e. Now we<br />

seek to do the same with learn<strong>in</strong>g around the <strong>Nestlé</strong> Corporate<br />

Bus<strong>in</strong>ess Pr<strong>in</strong>ciples. We are also roll<strong>in</strong>g out the <strong>Nestlé</strong> Youth<br />

<strong>in</strong>itiative beyond <strong>our</strong> European operations.<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 />

Governance <strong>and</strong> management systems<br />

Human Res<strong>our</strong>ces<br />

Our Human Res<strong>our</strong>ces (HR) structure is based on three<br />

dedicated areas:<br />

• Centres of expertise – provide specialised services to the<br />

bus<strong>in</strong>ess;<br />

• Bus<strong>in</strong>ess partners – embed HR strategies with<strong>in</strong> specific<br />

areas of the bus<strong>in</strong>ess; <strong>and</strong><br />

• Employee services – provide HR support to all bus<strong>in</strong>ess<br />

functions.<br />

Strategic responsibility for governance lies with Peter Vogt,<br />

Deputy Executive Vice President, Head of Human Res<strong>our</strong>ces<br />

<strong>and</strong> Centre Adm<strong>in</strong>istration, while f<strong>in</strong>al accountability rests with<br />

<strong>our</strong> Executive Board <strong>and</strong> <strong>our</strong> CEO.<br />

Safety <strong>and</strong> health management<br />

Our current Safety <strong>and</strong> Health Roadmap towards Excellence<br />

sets out <strong>Nestlé</strong>’s strategic vision for safety <strong>and</strong> health<br />

performance until the end of <strong>2015</strong>. It successfully steered the<br />

direction <strong>and</strong> focus of <strong>our</strong> activities on a global level over the<br />

last f<strong>our</strong> years.<br />

The roadmap has helped us develop <strong>and</strong> deploy<br />

programmes designed to reduce <strong>our</strong> key risks. The risks were<br />

identified earlier, based on analysis of <strong>our</strong> <strong>in</strong>jury <strong>and</strong> illness<br />

data <strong>and</strong> <strong>our</strong> management’s ambition to make a step change<br />

<strong>in</strong> terms of <strong>our</strong> safety <strong>and</strong> health performance.<br />

In <strong>2015</strong>, we have revised <strong>our</strong> m<strong>and</strong>atory st<strong>and</strong>ard for Safety,<br />

Health <strong>and</strong> Environmental Incident Report<strong>in</strong>g & Investigation,<br />

provid<strong>in</strong>g a framework for more consistent report<strong>in</strong>g. It<br />

ensures we cont<strong>in</strong>ue to have a clear <strong>and</strong> well-established<br />

procedure for def<strong>in</strong><strong>in</strong>g <strong>and</strong> report<strong>in</strong>g all types of <strong>in</strong>cidents.<br />

We track <strong>and</strong> analyse <strong>our</strong> safety <strong>and</strong> health performance<br />

regularly dur<strong>in</strong>g the year, us<strong>in</strong>g a comb<strong>in</strong>ation of lead<strong>in</strong>g <strong>and</strong><br />

lagg<strong>in</strong>g <strong>in</strong>dicators. In addition, <strong>in</strong>cidents that are classified as<br />

major (as per <strong>our</strong> procedure) are communicated with<strong>in</strong> 24<br />

h<strong>our</strong>s to senior management at local sites, as well as at the<br />

Group head office. This <strong>in</strong>itial announcement is followed by a<br />

detailed <strong>in</strong>vestigation report.<br />

In <strong>our</strong> monthly Executive Board meet<strong>in</strong>gs a review of work<br />

related fatalities is <strong>in</strong>cluded. In addition, all new global<br />

programmes are approved by a member of the EBM at f<strong>in</strong>al<br />

draft stage. This year, <strong>our</strong> Executive Board approved the new<br />

<strong>Nestlé</strong> Framework for Employee Health. It helps to structure<br />

<strong>and</strong> focus exist<strong>in</strong>g efforts, promote proven practices, ensure<br />

cross-fertilisation <strong>and</strong> guide future developments <strong>in</strong> <strong>our</strong><br />

markets <strong>and</strong> at a global level.<br />

We leverage digital communications by regularly post<strong>in</strong>g<br />

relevant safety <strong>and</strong> health articles, films <strong>and</strong> <strong>in</strong>itiatives around<br />

the world onto <strong>our</strong> Chatter (<strong>in</strong>ternal social media platform)<br />

group called We make <strong>Nestlé</strong> Safe. It is an open digital forum<br />

for shar<strong>in</strong>g ideas <strong>and</strong> global best practices.<br />

Our policies <strong>and</strong> st<strong>and</strong>ards<br />

We ask all <strong>our</strong> people to take pride <strong>in</strong> liv<strong>in</strong>g by the values <strong>and</strong><br />

pr<strong>in</strong>ciples of <strong>Nestlé</strong>, regardless of their position <strong>in</strong> the<br />

organisation. It is an approach supported by a number of<br />

policies, codes <strong>and</strong> pr<strong>in</strong>ciples, designed to engender mutual<br />

respect, personal development <strong>and</strong> safe work<strong>in</strong>g. They are<br />

as follows:<br />

• The Expatriation Policy;<br />

• The Flexible Work Environment at <strong>Nestlé</strong>;<br />

• The <strong>Nestlé</strong> Code of Bus<strong>in</strong>ess Conduct;<br />

• The <strong>Nestlé</strong> Corporate Bus<strong>in</strong>ess Pr<strong>in</strong>ciples;<br />

• The <strong>Nestlé</strong> Employee Relations Policy;<br />

• The <strong>Nestlé</strong> Enterprise Risk Management Pr<strong>in</strong>ciples<br />

(<strong>in</strong>ternal);<br />

• The <strong>Nestlé</strong> Human Res<strong>our</strong>ces Policy;<br />

• The <strong>Nestlé</strong> Management <strong>and</strong> Leadership Pr<strong>in</strong>ciples;<br />

• The <strong>Nestlé</strong> Maternity Protection Policy;<br />

• The <strong>Nestlé</strong> on the Move Policy;<br />

• The <strong>Nestlé</strong> Recognition Framework;<br />

• The <strong>Nestlé</strong> Policy on Conditions of Work <strong>and</strong> Employment;<br />

• The <strong>Nestlé</strong> Policy on Safety <strong>and</strong> Health at Work;<br />

• The <strong>Nestlé</strong> Supplier Code; <strong>and</strong><br />

• The <strong>Nestlé</strong> Total Rewards Policy.<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> 258

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