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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 />

G4-27, G4-26, G4-56, Employment G4-DMA, Freedom of association <strong>and</strong> collective barga<strong>in</strong><strong>in</strong>g G4-DMA<br />

In June <strong>2015</strong>, we launched a Maternity Protection Policy for<br />

employees worldwide. It is estimated to be one of the most<br />

progressive programmes of its k<strong>in</strong>d <strong>in</strong> the <strong>in</strong>dustry. The policy<br />

is based on the International Lab<strong>our</strong> Organization (ILO)<br />

Maternity Protection Convention <strong>and</strong> establishes m<strong>in</strong>imum<br />

st<strong>and</strong>ards that must be implemented at <strong>Nestlé</strong> workplaces<br />

by 2018. It forms part of <strong>our</strong> commitment to the UN’s Every<br />

Woman Every Child, the Cl<strong>in</strong>ton Global Initiative <strong>and</strong> the<br />

UN Global Compact. Learn more about the policy here.<br />

As well as comply<strong>in</strong>g with national laws, we expect all<br />

<strong>Nestlé</strong> bus<strong>in</strong>ess entities to respect <strong>in</strong>ternationally recognised<br />

human rights st<strong>and</strong>ards set out <strong>in</strong>:<br />

• The eight ILO Core Conventions;<br />

• The ILO Tripartite Declaration of Pr<strong>in</strong>ciples;<br />

• The International Bill of Human Rights;<br />

• The Organisation for Economic Co-operation <strong>and</strong><br />

Development (OECD) Guidel<strong>in</strong>es for Mult<strong>in</strong>ational<br />

Enterprises (2011); <strong>and</strong><br />

• The UN Framework <strong>and</strong> Guid<strong>in</strong>g Pr<strong>in</strong>ciples on Bus<strong>in</strong>ess <strong>and</strong><br />

Human Rights.<br />

Measur<strong>in</strong>g <strong>and</strong> shar<strong>in</strong>g <strong>our</strong> progress<br />

We measure <strong>our</strong> performance aga<strong>in</strong>st KPIs, many of which are<br />

shared <strong>in</strong> this report. The Safety, Health <strong>and</strong> Environmental<br />

Susta<strong>in</strong>ability – Performance Management (SHE–PM) system<br />

allows us to record <strong>and</strong> collate performance data on lead<strong>in</strong>g<br />

<strong>and</strong> lagg<strong>in</strong>g <strong>in</strong>dicators (<strong>in</strong>clud<strong>in</strong>g work-related <strong>in</strong>jury <strong>and</strong> illness<br />

rates). <strong>Nestlé</strong> communicates progress externally through this<br />

report <strong>and</strong> by participat<strong>in</strong>g <strong>in</strong> a number of external schemes.<br />

The ‘<strong>Nestlé</strong> & I’ employee engagement survey<br />

Our employee survey, <strong>Nestlé</strong> & I, is conducted every two<br />

years. In 2014, work<strong>in</strong>g with new external partners, we<br />

improved it to <strong>in</strong>crease <strong>in</strong>sight around culture <strong>and</strong> recognition.<br />

The survey was circulated to around 260 000 employees for<br />

<strong>in</strong>put <strong>and</strong> the global results were published <strong>in</strong> early <strong>2015</strong>.<br />

Over the c<strong>our</strong>se of three survey cycles (2014–2019), we aim<br />

to achieve:<br />

• A 5% <strong>in</strong>crease <strong>in</strong> engagement;<br />

• A global participation rate of 90%;<br />

• A 20% reduction <strong>in</strong> the time the survey takes to<br />

complete; <strong>and</strong><br />

• 100% of the reports delivered on time.<br />

The global results <strong>in</strong>dicated that we achieved an 87%<br />

participation rate globally, the highest s<strong>in</strong>ce the beg<strong>in</strong>n<strong>in</strong>g of<br />

<strong>Nestlé</strong> & I, with views from 226 200 employees, work<strong>in</strong>g <strong>in</strong><br />

various markets, functions <strong>and</strong> globally managed bus<strong>in</strong>esses.<br />

At the Group level, <strong>and</strong> compared to the previous cycle,<br />

results showed an 84% engagement level, represent<strong>in</strong>g a 6%<br />

improvement compared with the last survey <strong>in</strong> 2012. Overall,<br />

the results also showed fav<strong>our</strong>able performance compared to<br />

similar companies <strong>in</strong> the global FMCG sector.<br />

Go<strong>in</strong>g forward, <strong>our</strong> focus needs to be on leadership,<br />

personal growth <strong>and</strong> development, <strong>and</strong> efficiency <strong>and</strong><br />

empowerment, which strongly <strong>in</strong>fluence <strong>our</strong> employees’ levels<br />

of engagement <strong>and</strong> enablement.<br />

Relevant l<strong>in</strong>e managers with a certa<strong>in</strong> m<strong>in</strong>imum number of<br />

direct reports received an <strong>in</strong>dividual report for review. They<br />

will agree improvements, together with the support of HR<br />

bus<strong>in</strong>ess partners <strong>and</strong> their teams.<br />

In the Philipp<strong>in</strong>es, as a result of the survey f<strong>in</strong>d<strong>in</strong>gs, factory<br />

changes are help<strong>in</strong>g to improve gender balance, with l<strong>in</strong>es<br />

adapted to ensure access <strong>and</strong> gender sensitisation tra<strong>in</strong><strong>in</strong>g.<br />

In Chile, factory facilities have been adapted <strong>and</strong> improved<br />

for women.<br />

Multi-stakeholder activities<br />

Address<strong>in</strong>g challenges around safety, health <strong>and</strong> wellness,<br />

lab<strong>our</strong> relations, diversity <strong>and</strong> develop<strong>in</strong>g talent is complex. It<br />

requires collaboration by many stakeholders. We believe that<br />

participat<strong>in</strong>g <strong>in</strong> <strong>in</strong>dustry efforts can help raise st<strong>and</strong>ards,<br />

mak<strong>in</strong>g <strong>our</strong> <strong>in</strong>dustry more efficient <strong>and</strong> successful.<br />

In <strong>2015</strong>, <strong>Nestlé</strong> USA announced that it will become a<br />

found<strong>in</strong>g member of the Work<strong>in</strong>g Parent Support Coalition, a<br />

group of bus<strong>in</strong>esses that are implement<strong>in</strong>g progressive<br />

policies to improve support for work<strong>in</strong>g parents. The<br />

announcement was made at the <strong>2015</strong> Cl<strong>in</strong>ton Global Initiative<br />

Annual Meet<strong>in</strong>g – an event that br<strong>in</strong>gs together global leaders<br />

to create <strong>and</strong> implement solutions to the world’s most<br />

press<strong>in</strong>g challenges. Learn more here.<br />

<strong>Nestlé</strong> S.A. is an active member of GRSP (Global Road<br />

Safety Partnership) which is hosted by the IFRC. This promotes<br />

<strong>and</strong> supports the UN Decade of Action for Road Safety. <strong>Nestlé</strong><br />

Cameroon is an active member of the Safe Way Right Way<br />

Foundation, which actively promotes road safety <strong>in</strong> the country.<br />

Recognis<strong>in</strong>g <strong>our</strong> people<br />

Recognis<strong>in</strong>g the contributions <strong>and</strong> achievements of <strong>our</strong><br />

people is important to <strong>our</strong> bus<strong>in</strong>ess <strong>and</strong> can help motivate <strong>and</strong><br />

<strong>in</strong>spire others. How we do this is covered <strong>in</strong> <strong>our</strong> <strong>Nestlé</strong><br />

Recognition Framework, which focuses on the importance of<br />

ensur<strong>in</strong>g that appreciation is an everyday occurrence.<br />

Recognition is now a key HR priority <strong>and</strong>, us<strong>in</strong>g <strong>our</strong> global<br />

strategic Recognition Framework, we drive a consistent<br />

approach that is locally relevant at each level of the<br />

organisation. We have <strong>in</strong>troduced a recognition toolkit portal,<br />

as well as specific tra<strong>in</strong><strong>in</strong>g for l<strong>in</strong>e managers.<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> 259

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