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Sep 4, 2010

HRM Report on Nestlé

MBA 2ND SEMESTER MORNING - NUML Multan

• ANUM RAEES

• ARSLAN SAHID

• IFRA YAQOOB

• IQRA AMJAD

• HASEEB RAZIQ

• RAO TOUFIQ
Project Dated: 09th April 2010
CONTENTS

• HISTORY

• INTRODUCTION

• VISSION & MISSION

• MAIN PRODUCTS

• HUMAN RESOURCE

• SAFETY AT WORK

• RECRUITMENT

• Training

• CAREER MANAGEMENT

• NESTLE SPIRIT

• CORPORATE BUSINESS

• RELATIONSHIPS

• AGRICULTURAL RAW MATERIAL

• CORPORATE SOCIAL RESPONSIBILITIES

• EARTHQUAKE RELIEFE

• REFRENCES

History
The key factor which drove the early history of the enterprise that would become
The Nestlé Company was Henri Nestlé's search for a healthy, economical alternative
to breastfeeding for mothers who could not feed their infants at the breast.
In the mid-1860s Nestlé, a trained pharmacist, began experimenting with various
combinations of cow's milk, wheat flour and sugar in an attempt to develop an alternative
source of infant nutrition for mothers who were unable to breast feed. His ultimate goal
was to help combat the problem of infant mortality due to malnutrition. He called the new
product Farine Lactée Henri Nestlé.
Nestlé's first customer was a premature infant who could tolerate neither his mother's
milk nor any of the conventional substitutes, and had been given up for lost by local
physicians. People quickly recognized the value of the new product, after Nestlé's new
formula saved the child's life and within a few years, Farine Lactée Nestlé was being
marketed in much of Europe.
Henri Nestlé also showed early understanding of the power of branding. He had adopted
his own coat of arms as a trademark; in Swiss German, Nestlé means 'little nest'. One of
his agents suggested that the nest could be exchanged for the white cross of the Swiss
flag. His response was firm: "I regret that I cannot allow you to change my nest for a
Swiss cross .... I cannot have a different trademark in every country; anyone can make
use of a cross, but no-one else may use my coat of arms."
Meanwhile, the Anglo-Swiss Condensed Milk Company, founded in 1866 by Americans
Charles and George Page, broadened its product line in the mid-1870s to include cheese
and infant formulas. The Nestlé Company, which had been purchased from Henri Nestlé
by Jules
Monnerat in 1874, responded by launching a condensed milk product of its own. The two
companies remained fierce competitors until their merger in 1905.
Nestlé is today the world’s leading food company, with a 135-year history and operations
in virtually every country in the world. Their principal assets are not office buildings,
factories, or even brands. Rather, it is the fact that they are a global organization
comprised of many nationalities, religions, and ethnic backgrounds all working together
in one single unifying corporate culture. Their culture unifies people on all continents,
with roughly half their factories and people located in the developing world.
A qualified workforce, trained by Nestlé or emerging from a strong educational and
industrial context, strongly influences the company’s ability to be globally competitive.
The fair treatment and development of company staff and the strengthening of the local
workforce are essential long-term investments. They reinforce the conditions for growth
and sustained economic development in the locations where Nestlé operates. Nestlé’s
ability to employ thousands of people each year is an important contribution the company
makes towards future generations, providing income to families
who can enhance their chances at better education, healthcare and standard of living for
entire families and communities.

INTRODUCTION OF NESTLE
Nestlé Corporate Business Principles will continue to evolve and adapt to a changing
world, their basic foundation is unchanged from the time of the origins of their Company,
and reflects the basic ideas of fairness, honesty, and a general concern for people.
Nestlé is committed to the following Business Principles in all countries, taking into
account local legislation, cultural and religious practices:
* Nestlé's business objective is to manufacture and market the Company's products in
such a way as to create value that can be sustained over the long term for shareholders,
employees, consumers, and business partners.
* Nestlé does not favor short-term profit at the expense of successful long-term business
development.
* Nestlé recognizes that its consumers have a sincere and legitimate interest in the
behavior, beliefs and actions of the Company behind brands in which they place their
trust and that without its consumers the Company would not exist.
* Nestlé believes that, as a general rule, legislation is the most effective safeguard of
responsible conduct, although in certain areas, additional guidance to staff in the form of
voluntary business principles is beneficial in order to ensure that the highest standards are
met throughout the organization.
* Nestlé is conscious of the fact that the success of a corporation is a reflection of the
professionalism, conduct and the responsible attitude of its management and employees.
Therefore recruitment of the right people and ongoing training and development are
crucial.
* Nestlé continues to maintain its commitment to follow and respect all applicable local
laws in each of its markets.

Mission Statement
At Nestlé, we believe that research can help us make better food so that people live a
better life.
Good Food is the primary source of Good Health throughout life. We strive to bring
consumers foods that are safe, of high quality and provide optimal nutrition to meet
physiological needs. In addition to Nutrition, Health and Wellness, Nestlé products bring
consumers the vital ingredients of taste and pleasure.
Vision statement
Nestlé aim is to meet the various needs of the consumer every day by marketing and
selling food of a consistently high quality.
The confidences that consumers have in our brands is a result of our company’s many
years of knowledge in marketing, research and development, as well as continuity –
consumers relate to this and feel they can trust our products.

MAIN PRODUCTS
Good Food, Good Life: the key to health, nutrition and wellness.
With over 140 years of experience and expertise, we take great pride in bringing you the
best products because happy, healthy consumers are important to us.
We develop our products keeping your preferences, tastes and needs in mind. We
understand that you, along with millions of other consumers, know that you can trust our
products to deliver purity, quality, convenience and nutrition.
Our products are carefully aligned to Pakistani tastes and needs. We're always trying hard
to develop new products and improve existing ones, and serve our consumers better.
That's why through constant renovation and innovation we're always testing or launching
value added products and making them available in sizes that will suit every requirement.
So explore the world of health with Nestlé products, and find out what suits your family's
needs!

HUMAN RESOURCE
HR is dedicated to their employees, and ensures that they have all the right people with
the right skills, in the right places at the right time.
Understanding that their people are the bedrock of all their business strategies, it is their
mandate to enhance their skills with cutting-edge training and provide them with world-
standard facilities.
They select flexible, innovative people who are ready to confront new challenges and
make a difference. Their groundbreaking Management Trainee Programmed aims to
develop talented young men and women and help them achieve their potential in a
dynamic and enabling environment.
Over a hundred people travel out of the country every year to take advantage of their
international training and development events.

GETTING STARTED:

Nestlé is the world’s largest and most respected food company, and their success is built
on their people. Their 140 years of experience has taught us that people are more
important than systems & processes.
They offer you an attractive and dynamic working environment where you'll find
constant opportunities for development: a place where you can grow, learn, and fulfill
their potential to the utmost.

WHAT THEY BELIEVE IN:


They are a people company. Their people are their greatest strength, and nothing can be
achieved without their commitment and energy.
At Nestlé Pakistan their opinion counts.
Here you'll fit into a corporate culture that's based on a set of fundamental principles and
values. These are:
• High commitment to quality products and brands
• Respect of other cultures and traditions
• Commitment to strong work ethic
• Personal relations based on trust and mutual respect
• Proactive cooperation
• Being pragmatic rather than dogmatic
• Favoring decentralization and networking
• Being committed to work and quality
• Preferring the long-term perspective to short-term thinking
They're proud of their traditions and heritage, and as times change, these core values keep
evolving.

The Nestlé Difference


At Nestlé you'll find their self in a dynamic and invigorating environment, surrounded by
people who are passionate about their work.
You'll feel empathized to contribute to the company's business objectives and to achieve
their own personal and professional goals.
You and their colleagues shape and lead the organization – their energy is its greatest
strength.

Family & Female-Friendly Organization:


Diversity is central to the nature of their business. As a global organization, Nestlé caters
to the needs of diverse consumers.
This is only possible due to the diverse backgrounds and interests of their people and
their firm commitment to embracing diversity at all levels.
When they employ staff, they make a commitment to provide them with good working
conditions. Female employees and their employees' families know that Nestlé Pakistan
has a friendly and caring attitude.
They recently set up a day-care centre, and have established a comprehensive Maternity
Benefits Scheme for their female employees.

Total Competitive Remuneration:


At Nestlé you can be sure you'll get competitive and fair remuneration structures. Their
remuneration is benchmarked against other organizations and surveyed on a regular basis
to ensure that they remain competitive.
Their pay and compensation strategy is tied to the achievement of their business
objectives. This linkage helps us define a growth-oriented culture, making us the most
preferred employer in the market.
The benefits of working at Nestlé go beyond the financial. Here, you'll find a structure to
help you fulfill their ambitions and support their lives.

Growth:
New employees are given responsibility at an early stage, and high performers can
develop fast.
Their international and multicultural working climate is conducive to creativity,
innovation and personal development. And you'll get competitive working conditions, a
compensation package and social benefits in line with their company's high standards.
Here, you'll get the room to add value and make a real difference. If you're qualified and
ready to confront new horizons, you'll have the chance for a truly international career.

Learning:
If you want to keep learning and improving every day of their working life, you might fit
in very detail at Nestlé Pakistan.
From their very first day, you will start to acquire new skills that may take you to the
very top, and to the furthest corners of the world.
Here, you'll thrive in an environment of lifelong knowledge enrichment, where learning
is a continuous process rather than an occasional programme or event.
That's why you'll find their self working with people who want to know more, do more
and achieve more – for themselves., and for the organization.

SAFETY AT WORK
Nestlé is committed to being a leader in workplace safety and health.
The Nestlé Occupational Health and Safety Management System (NSMS) was revised in
line with the 2007 edition of the international standard OHSAS 18001 and reissued to all
Nestlé operations, reinforcing our commitment that “Safety is non-negotiable”.
They are also working towards external certification of our factories against OHSAS
18001. This will provide a common language around our health and safety management
systems, and make it easier to demonstrate implementation of these standards to our
stakeholders.
The number of workplace injuries has been reduced. For example, in 2007 the number of
injuries leading to one or more days away from work in Nestlé decreased to almost one
quarter of that seen in 2001.

Major focus on preventing accidents:


Over the years, Nestlé has developed a strong network of local Safety, Health and
Environment functions that develops and shares best practices in accident prevention
across the world.

Involving employees:
Employees at all levels are employed to assume ownership of workplace safety. Behavior
based safety programs are being implemented in all operational sites (including factories
and distribution centers). Safety observations made by those most concerned are gathered
and analyzed and measures to eliminate or manage risks are implemented.

Tools to manage safety performance:


Custom-made tools have been put in place to track workplace safety key performance
indicators. Safety practitioners and managers have access to reports about their local
performance and those of other sites, enabling easy internal benchmarking and
identification of best practices.

Safety at Work Award:


In order to reinforce a culture of safety in the company Nestlé has created a 'Nestlé Safety
at Work Award' 2008. Nestlé country or market organizations worldwide presented
applications to the jury. Each country or market organized an internal safety award
competition and designates one champion team to participate in the Nestlé Safety Award.
Local winners are recognized with Gold, Silver and Bronze awards and the global
winners will be announced at the end of March.
The winners are presented with their trophies at the Nestlé Market Conference.

Nestlé Policy on Health and Safety at Work:


Nestlé regards its people as its most valuable asset and places the highest priority on
protecting them. The Nestlé Policy on Health and Safety at Work is based on the Nestlé
Corporate Business Principles, which are binding for the whole Nestlé Group.

Prevention of work-related injury and illness


Nestlé believes that work-related injuries and illnesses can be prevented. They integrate
health and safety into management of the business by establishing local safety
organizations that proactively advance a strong safety culture. Further, they implement
worldwide our mandatory Nestlé.
Operational Safety, Health and Risk – Management
Strategy, which meets or surpasses the requirements of the health and safety laws
applicable in the countries in which they operate conduct risk assessments and take
appropriate corrective action to minimize threats to human health and safety.
Furthermore, they establish emergency and contingency plans to deal with residual risks.
This approach also minimizes threats to the business, protecting our shareholders’
interests; continuously improve our performance by adapting processes, work practices
and systems as a result of monitoring safety performance and analyzing accidents or
occupational health problems.

Nestlé and third parties


Nestlé understands the responsibility of the community and third parties in managing
safety. Therefore, they communicate with relevant local communities and their
emergency services, providing them with adequate health and safety information on our
operations. They encourage joint training and exercises with local emergency services
where appropriate ensure that all third parties entering Nestlé sites have sufficient
relevant information and training and are properly equipped to safely execute their tasks
on our sites; regard health and safety management as an important consideration in
supplier and contractor selection. Nestlé enforces this policy on third parties operating on
our sites and encourages our suppliers and contractors to apply similar standards of
Nestlé sites.

Management leadership and employee involvement


Nestlé recognizes the critical role of our people to ensure a safe and healthy work
environment. As an integral part of managing the business, all Nestlé managers are
accountable for managing workplace health and safety with strong leadership and
credibility. They build a proactive safety culture by actively engaging our employees and
other relevant

stakeholders to drive implementation of all elements of our Nestlé Operational Safety,


Health and Risk Management Strategy through consultation and communication with
staff at all levels educating, training and equipping staff at all levels to ensure that they
are employed to avoid unsafe situations and to respond rapidly to unexpected events;
setting targets and monitoring performance to drive continuous improvement of our
achievements, while providing the needed resources to ensure a safe working
environment. Further, employees at all levels are accountable to work in a safe manner to
prevent injury to themselves and fellow workers, and to become actively involved in
programs to improve health and safety performance in the workplace.

Implementation
Nestlé implements this policy through the Nestlé Operational Safety, Health and Risk –
Management Strategy to ensure a consistent and coherent standard worldwide. However,
the specific methods of managing health and safety at work depend on local social norms,
practices and regulations. Local management is accountable to implement an adapted
safety organization to comply with this policy.

The Nestlé Operational Safety, Health and Risk Management System, supports the Nestlé
Operational Safety, Health and Risk – Management Strategy by guiding managers on the
most effective implementation approach.

Key Figures:

Tracking workplace injuries: Five-year Evolution:


Nestlé started tracking injuries that lead to days away from work and/or to medical
treatment at corporate level in 1998. This tracking covers approximately 275,000
employees and 50,000 contractors (those that work at Nestlé sites) across the world.
Since then, significant progress has been achieved. In the period 2003-2007, the number
of injuries with time away from work (for employees and contractors) per million hours
worked reduced by 65%.

RECRUITMENT
WHAT THEY LOOK FOR:
It takes a special sort of person to come and work at Nestlé Pakistan.
That's why, when selecting candidates, they look for a set of interrelated characteristics
encompassing three key areas: knowledge, personality and motivation.

Professional Knowledge:
Do you have a great academic record that demonstrates their intelligence, commitment
and hard work? Can you show us you have a sharp analytical mind, and the drive
necessary to succeed in a competitive environment?
If you think you fit the bill, you may be right for Nestlé Pakistan.
They look for good academic results at university or equivalent qualifications. However,
the class of the degree you have obtained, though very important, is not the only criterion
for selection.
Other experiences during their studies, previous jobs, assignments, language theses and
any other significant extracurricular activities and achievements, are also given the right.
They look for candidates who can identify a problem, analyze it, look at different options,
and come to reasoned conclusions.
They want people with drive and tenacity, energy and enthusiasm, who can initiate a
project and follow through to the end.
All these skills are vital during a career at Nestlé Pakistan.

Personality:
To succeed at Nestlé Pakistan, you need more than professional knowledge. You need a
flair for the field of activity of their choice, an open mind, and a willingness to dig in and
learn new skills and ideas.
They're looking for applicants who are dynamic and communicative. People, who can
listen, understand and integrate the opinion of others, people who can express their ideas
clearly, both verbally and on paper.
They want people who like to negotiate, even with very different partners, and to solve
problems in complex situations.
They like candidates who show leadership, inspire others, and are self-confident, yet
realistic. People who have a positive attitude to work and are willing to work hard, even
under pressure.They seek people who can be objective in their assessment of themselves
and of others.

Motivation:
While they expect loyalty to their company, they expect their people to be critical and
suggest improvements wherever necessary. They like people who are motivated
themselves & can motivate others.

What Will Make You Right for Nestlé?


A Nestlé employee is characterized by creativity and dynamism. They don't only look for
specialists, but people who have knowledge and skills in more than one field, with broad
interests.
To sum up, they want people with purpose and ambition, though not at the expense of
others.
They want people who take responsibility for their actions, who consider Nestlé their
own business, and who show an entrepreneurial spirit.
If you think you fit the Nestlé profile, you might be just the person they're looking for!

Recruiting process:
Applying for a current job / graduate program / internship

Please look through the vacancies and choose which you are interested in.
Create your CV by filling out the online form.
Once the application is complete, you will receive a confirmation message telling you
that it has been received and is being processed.

Receiving CVs:

They will review and select CVs that best match open jobs. Please note that only
completed CVs will be taken into account.
Only selected candidates will be contacted.
In any case, you will receive an e-mail telling you when the job you applied for has been
filled.

Register for our talent pool:


If there is no job opening suitable for you, you can still register your details in our
database. You will then be considered as a potential candidate for new up coming
positions.
They regularly review CVs and jobs to try to match registered candidates with job
openings.
You will only be contacted if they find a suitable match.

The Interview Process

Graduate Program Applicants


Regular group interview sessions are held throughout the year for most of the Graduate
Programs.
This is a one-day sessions that consists of discussions about potential jobs and career
developments, individual interviews with HR and line managers, group and/or individual
case studies.
If you are successful at the group stage, you will be invited for an individual interview
day with HR and line managers.

Professional applicants:
You should expect a series of individual interviews with HR and line managers. These
will generally focus on your background and motivation as they’ll as how you likely fit
Nestlé's culture and values.

Internships applicants:
You will be interviewed by HR as they’ll as a line manager. These interviews will
generally focus on your background and motivation as they’ll as how you likely fit
Nestlé's culture and values.

TRAINING
Management Trainee Programmed:
If you're young, bright and hard working, the Management Trainee Program may be the
place for you. They hire fresh graduates as potential managers to develop new
competencies and skills through on-the-job development.
You'll be hired in one of various departments at inductee level on a 12-month training
program. Once you've completed the program, you will be assigned independent
responsibilities supporting the company's business needs.
They begin sourcing Management Trainees in January. Preliminary interviews and
screening is organized according to the graduation schedules of Pakistani and foreign
universities, and are followed by interviews with senior management.

Employee Nutrition Training


Building a continuous nutrition learning culture within Nestlé is a key element in our
journey to become a nutrition, health and wellness company, to provide profitable growth
in the future. To support this objective, they have developed the NQ (Nutritional
Quotient) training program for employees, based on the principle that nutrition is
everybody’s business at Nestlé, irrespective of the area in which employees work.
Nestlé’s expert nutrition knowledge is long-established, centered on the activities of
Nestlé Nutrition and our R&D network. The NQ program is designed to widen and
increase the knowledge base among employees in other job functions, giving everyone
the confidence to apply this knowledge in their work.
The program combines nutritional knowledge with commercial application. For example,
when communicating with consumers about balanced diets, the knowledge gained by
Nestlé employees through the NQ program will help make nutrition and wellness tangible
to consumers, ensuring that Nestlé is regarded as a knowledgeable partner in nutrition
matters. Not only this - a major aim of the program is also to help employees make
informed and healthy nutrition choices for themselves and their own families.

A modular program
NQ training comprises engaging modules suitable for all employees, from the Executive
Board to plant operators, and leverages the nutrition expertise of Nestlé scientists and
health marketing specialists. Implementation began in 2007, with Nestlé nutrition experts
and marketing specialists taking part in "train the trainer" sessions across our zones to
support the cascade of knowledge to all employees.
Key to the success of the NQ training are interactive, customized modules designed to
encourage people to participate and put knowledge into action. These are tailored to
specific needs:

• Foundation module: a stand-alone program of learning and development for


Nestlé employees whose jobs are principally non consumer or customer facing.
• Advanced module: core learning for staff who are engaged with external bodies
and consumers/customers.

• Specialist modules: place particular emphasis on understanding the consumer and


application of the Nestlé nutrition and wellness strategy in specific product
categories.

• A complete toolkit
The NQ program toolkit comprises a suite of materials for trainers, including training
manuals and slide sets. For trainees themselves, learning takes place in an engaging way
using a variety of media and formats, including interactive games, motivational video
content and an on-line quiz. This is used to measure collective progress and to allow each
trainee to evaluate, in an entirely confidential way, his or her personal lifestyle choices.
The toolkit also comprises awareness-raising and motivational material that can be used
and adapted to meet local needs, including posters, questionnaires and certificates.

Ongoing development
As nutrition and our insights into nutrition evolve, so too will our NQ Nutrition training,
helping Nestlé employees to keep abreast of new developments and maintain a high level
of credibility through the breadth and depth of our nutrition expertise.

Internships:
Internships are a great way to apply the knowledge and skills you are developing at
university and get experience in a leading corporation.
They offer project-based internship positions in various departments at Nestlé Pakistan.
You may be hired as an intern at various points during their academic career: during
undergraduate study or graduate school.
Most internship assignments are offered during the summer months and generally run for
6 to 8 weeks.
At the end of the internship you will be required to submit a project or program report to
the company on the topic assigned to you at the beginning of the internship program.
If you impress us with their talent & hard work, you may be considered for employment
opportunities after you have completed their studies.

The Nestlé Human Resource Policy


This policy encompasses those guidelines which constitute a sound basis for efficient and
effective HR Management in the Nestlé Group around the world.
They are in essence flexible and dynamic and may require adjustment to a variety of
Circumstances. Therefore its implementation will be inspired by sound judgment,
compliance with local market laws and common sense, taking into accounts the specific
context. Its spirit should be respected under all circumstances.
As Nestlé is operating on a worldwide basis, it is essential that local legislation and
practices be respected everywhere. Also to be considered is the degree of development of
each market and its capacity to advance in the management of their human resource.
Should any HR policy conflict with local?
Legislation, local legislation will prevail.
These policies are addressed to all those who have a responsibility in managing?
People as they will as to HR professionals??
The Nestlé Management and Leadership Principles include the guidelines inspiring all
the Nestlé employees in their action and in their dealings with others. The Corporate
Business Principles refer to all the basic principles which Nestlé endorses and subscribes
to on a worldwide basis. Both these documents are the pillars on which the present policy
has been built.

A SHARED RESPONSIBILITY:
HR managers and their staff are there to provide professional support in handling people
matters but should not substitute themselves to the responsible manager.
Their prime responsibility is to contribute actively to the quality of HR management
throughout the organization by proposing adequate policies, ensuring their consistent
application and coherent implementation with fairness. Acting as business partners, the
HR manager advises and offers solutions which results in positive impact on the
organization’s effectiveness.
Furthermore, she/he proposes best practices and provides state-of-the-art support and
counseling to her/his colleagues. Together they act as co-responsible partners for all HR
matters. This partnership is the key for efficiency in people management. The
communication skills of the HR staff must be appropriate to deal with all delicate matters
as they occur frequently in human relations issues. They gain their credibility not only
from their professional contribution but also through the care and the excellence of their
communication skills.

CAREER MANAGEMENT
JOINING NESTLE:
The Nestlé Human Resource Policy The long-term success of the Company
Depends on its capacity to attract, retain and develop employees able to ensure its growth
on a continuing basis. This is a primary responsibility for all managers. The Nestlé policy
is to hire staff with personal attitudes and professional skills enabling them to develop a
long-term relationship with the Company.
Therefore the potential for professional development is an essential standard for
recruitment.
Each new member joining Nestlé is to become a participant in developing a sustainable
quality culture which implies a commitment to the organization, a sense for continuous
improvement and leaves no place for complacency.
Therefore, and in view of the importance of these Nestlé values, special attention will be
Paid to the matching bettheyen a candidate’s values and the Company culture.
Hence, a clear communication of these principles and values from the very beginning of
the recruitment process is required.
Moreover, for managerial positions specific leadership qualities and business acumen
will be required. Nestlé wishes to maintain and develop its reputation as an employer of
high repute. Contacts with universities, attendance at recruitment events and other
contacts are to be undertaken so as to ensure good visibility of the Company vis-à-vis
relevant Recruitment sourcing. Particular care will be given to the treatment of each
Candidacy regardless of the outcome of the selection process.
Even when promoting employees intensively from within the organization, it is the role
of management and HR to keep an eye on valuable candidates from outside and to
Benchmark internal skills with external offers.
Whilst adequate recruitment tools may improve the hiring process, it is understood that
the decision to hire a candidate remains in the hands of the responsible manager
Supported by the HR staff. Under no circumstances should the decision to hire or not to
hire be left in the hands of an outside consultant or expert. As mentioned in the Nestlé
Management and Leadership Principles, only relevant skills and experience and the
adherence to the above
Principles will be considered in employing a person. No consideration will be given to a
candidate’s origin, nationality, religion, race, gender or age.
It is as important to hire the right person as it is to integrate newcomers in the
organization so that their skills and behavior can merge smoothly with the Company
culture. Whereas from new employees it is expected to respect their company’s culture, it
is accordingly required from all employees to show an open mind towards new ideas and
proposals coming from outside.

EMPLOYMENT AT NESTLE
The Corporate Business Principles outline the Company’s commitment to fully endorse
and to respect a series of principles and international conventions concerning employee’s
rights, the protection of children against child labor and other important issues. These
principles are to be respected everywhere and under all circumstances.
The management will implement the necessary processes to ensure that these principles
are enforced at all levels. Employees who are not abiding with the Corporate Business
Principles and the Nestlé Management and Leadership Principles cannot be maintained in
employment and will be requested to leave the organization. Also their main suppliers
and providers of out sourced services should be informed of the Corporate Business
Principles and should comply with those. Nestlé provides a working environment which
protects the health and there welfare of the employees according to the highest?
Affordable standards of safety, hygiene and security. Each employee should not only
Care for her/his own safety but also that of her/his colleagues. Therefore, suggestions for
improvement are they come and will be given prime consideration.
In the same way that no discrimination for reason of origin, nationality, religion, race,
Gender or age will be tolerated when joining Nestlé, no such discrimination will be
tolerated towards Nestlé’s employees. Furthermore, any form of harassment, moral or
sexual, will not only be prohibited but actively tracked and eliminated. Internal Rules and
regulations will explicitly deal with discrimination and harassment issues so as to obtain
the best possible prevention. Nestlé considers that it is not enough to avoid discrimination
or harassment. It is essential to build a relationship based on trust and respect of
employees at all levels. Therefore, it is indispensable for each manager to know how
her/his employees feel in their work. In larger units it may be necessary to organize such
feedback on a regular basis, using internal surveys or other valuable approaches. Nestlé
favors a policy of long-term employment. Whenever, an operation activity cannot be
maintained within the Nestlé sphere, reasonable steps will be undertaken to avoid overall
loss of employment by identifying an external Business willing to take over activity from
Nestlé, whenever this is possible.
If this is not possible, a closing down may be unavoidable. It will be handled in full
respect of local legislation and of the Corporate Business Principles. A social plan will be
elaborated taking into account the legitimate interests of the concerned staff.
Reasonable efforts will be deployed to reduce, as much as possible, the negative Social
impact of such a situation.

Knowledge transfer:
Knowledge Transfer is about making the very best out of our huge intellectual assets and
resources and ensuring that this information is shared with our partners and within our
communities.
The research and business models that have proved of great success within Nestlé have
been taken on into communities and used to enable and their other businesses and
initiatives.
The most recent example of this is the participation of Nestlé in donating funds for the
drilling of deep wells and the installation of 22 community water supplies to provide
clean and safe water for some 40 000 people. The funds are also be used to train
community structures on maintaining the pumps and improve overall hygiene practices.
The project is under the umbrella of the International Federation’s Global Water and
Sanitation Initiative (GWSI) launched in 2005, which has set a framework for scaling-up
action and partnership to contribute to the UN Millennium Development Goals, in
particular the goal to reduce by half the number of people without sustainable access to
safe water and sanitation by 2015.

Listening and responding to employee views


Businesses throughout Nestlé listen and respond to employees. Nestle globally conducted
an independent survey, which provided constructive feedback from employees on a range
of topics. A clear finding was that Nestle employees wanted the business to take a fresh
look at internal communication. Nestle responded firstly by running structured
workshops to help translate opinions into action. Various initiatives they are implemented
as a result. These range from new opportunities to meet and share ("mystery lunches" and
monthly departmental meetings) to improved information sources (intranet and
publications library). Nestlé is conducting a global employee survey. This is currently
underway, and they will be able to report on it in future publications.

Work/Life Balance:
At Nestlé they believe that the employee’s private and professional life should have a
good balance.
Not only because it reinforces employee’s satisfaction, loyalty and enhances
Productivity but also because it positively reflects on the Company’s reputation. It helps
attracting and retaining people and reconciles economical imperatives with they’ll being.
Nestlé is willing to support employees who wish to take an active part in the life of the
community or by assuming responsibilities in professional, civic, cultural, religious or
voluntary organizations it being understood that any activity during working theirs be
first approved by the Company.
In the same spirit, Nestlé provides flexible working Conditions whenever possible and
provides its employees to have interests and motivations outside work.

PROFESSIONAL DEVELOPMENT:

Learning:
Learning is part of the Company culture. Each employee, at all levels, is conscious of the
need to upgrade continuously her/his knowledge and skills.
The willingness to learn is therefore a non-negotiable condition to be employed by
Nestlé. First and foremost, training is done on-the-job. Guiding and coaching is part of
the responsibility of each manager and it is crucial to make each one progress in her/his
position. When formal training programs are organized they should be purpose oriented
and designed to improve relevant skills and competencies. Therefore they are proposed in
the framework of individual development programs. As a consequence,

Attending:
A program should never be considered as a reward. Adequate training programs are
developed at the level of each operating company capitalizing on the availability of local,
regional or global resource of the Group. It is the responsibility of HR staff to assist the
management in the elaboration of training programs. Great importance will be attached to
programs enhancing the language skills of the employees. Training programs organized
at the International Training Centre Rive-Reine aim at developing and sharing best
practices of the various management disciplines practiced in the Group. They also strive
to strengthen corporate cohesion as they’ll as to promote networking throughout the
Group. Training programs should, as much as possible, be based on action learning and
reduce ex-cathedra teaching to the strict minimum. It is necessary to make optimal use of
e-learning programs as a complement to or a substitute for formal training programs.
According to needs they should be made available at shop floor level and enlarge the
access to training. It is the role of each manager to assess progress achieved as a result of
training Programs. Assessing and Developing each employee is in charge of her/his own
professional development. However, the Company endeavors to offer the opportunity to
progress for those having the determination and the potential to develop their capabilities.
Such opportunities should take into account the potential of each employee and be
discussed with transparency. They will be based on defined possibilities, concentrate on
the next career step and not on vague promises or remote hypotheses. The Company
provides its employees to express their objectives and expectations in an open dialogue.
The objective is to retain and motivate employees by offering attractive but realistic
career moves allowing them to develop their skills over a long-term period within the
framework of economic reality and a changing environment. Whereas succession plans
forecast the Company needs, they will be reconciled, inasmuch as possible, with
individual development plans. HR management provides the support for implementing
the necessary planning tools, having in mind the necessary flexibility to cope with
unforeseen situations. However, it is understood that each manager is co-responsible for
preparing.
The resource necessary to the development of the Company as this is also part of his
accountability. Regular counseling and guidance are the best tools for improving
performance and for helping people develop their skills. It also allows to correct errors
swiftly and to transform them into a positive learning experience. In an organization with
flat structures this supports better delegation. Direct personal contact should always been
given preference over written communication whenever possible. Each manager has the
duty to act as a mentor for his employees. Formal assessment should take place on a
regular basis, preferably once a year. Its purpose is to provide feedback on past
performance and future potential as they’ll as on other relevant aspects concerning a staff
member’s work including the development of his skills and competencies. Both the
positive and negative aspects of individual performance should be frankly addressed.
Assessment of performance should be based on facts rather than opinions. For managerial
positions, assessment will be based essentially on agreed objectives and their level of
achievement.
Efficient performance management emphasizing the achievement of agreed Objectives is
a prime responsibility for each manager. The necessary time should be dedicated to the
monitoring and the follow-up of the progressive achievement of objectives during the
year. This feedback is meant to stimulate performance and should take place through an
open dialogue based on mutual trust and willingness to progress. It is requested to
provide written evidence of such meetings. Focus should be essentially on continuous
improvement, appropriate training measures but also on shaping a Stimulating working
environment. In case of serious underperformance, a termination of employment should
be envisaged. Such termination should be handled with due respect of the person and
should include, where appropriate, separation terms that take into account the employee’s
personal situation. When assessing potential it should be kept in mind that the best
indicator of talent is achievement. Therefore responsibility should be given as early as
reasonable to allow people to prove themselves. Candidates for managerial positions
should clearly have demonstrated their willingness and ability to apply the Nestlé
Management and Leadership Principles.
Promotions will exclusively be based on competence, insight, performance and potential
with the exclusion of any consideration for origin, race, nationality, gender, religion or
age. Flexibility is a requirement for ensuring a positive professional evolution. Staff may
be requested to move to other positions. Managers, especially international staff, may be
asked to move to other locations. International experience and participation in group
development initiatives such as GLOBE, SMPT and others can be acquired in all
countries of the Group and are a requirement for holding high-level positions. The
development of expertise in specific areas of competence is determinant for the
Company’s success. Therefore job rotation should be practiced with caution. Whilst job
rotation might be useful under certain circumstances, it should not result in threatening
their expertise in key areas of Professional Development.

Industrial relations:
Nestlé upholds the freedom of association of its employees and the effective recognition
of the right to collective bargaining. Nestlé wishes, also through its relationship with
unions and other representative associations, to sustain the long-term development of the
Company, both to the benefit of the employees and of the Company, by maintaining a
level of competitiveness adapted to its economic environment. Industrial relations are a
clear responsibility of local management and will be handled at the appropriate level: first
at site level (factories, warehouse) subsequently at regional or national level, according to
local law and practices.
Nestlé will ensure that direct and frequent communication is established with its
employees, both union members and non-members, as mentioned in the Nestlé
Management and Leadership Principles. Relations with unions will be established under
strict observation of national law, local practices as they’ll as those international
recommendations to which Nestlé has adhered to on a voluntary basis as stated in the
Corporate Business Principles.
Contacts with union delegates should create a further opportunity to provide information
allowing their members and other representative associations to acquire a full
understanding of the business activities and the goals of Nestlé. In accordance with local
legislation, Nestlé will refrain from any action restricting the employee’s right to be or
not to be affiliated to a union. Nestlé will not engage with any union or other
representative association in activities or discussions other than those relating to
employment and working conditions as they’ll as issues relating to the workplace.
Whenever negotiations take place, they will be duly prepared with the full involvement of
line management and take into account both the Company’s and the employees’
legitimate interest. In dealings with unions, it will be ensured that management
prerogatives be properly maintained.
The fact that Nestlé is more people and product than systems oriented is reflected in the
way HR is functioning and is organized. Processes and systems as they’ll as professional
HR tools are there to support HR management but never to the detriment of the human
dimension. The human perspective should be present at all times and under all
circumstances. The HR function should report to the manager responsible for a defined
operation (Region, Market, Country, and Factory) with a functional relation to the market
HR according to the size of that operation.
The HR manager should not only have the skills and competencies from a purely
professional standpoint but also have the charisma and the credibility to be a trustworthy
partner to her/his colleagues. Whereas the HR function should indeed provide flawless
administrative support, its main role is to add value to the business and to play a
proactive role in every situation where HR action is required. Specific HR KPI’s are
useful in assessing the performance of an HR unit. However, it should be kept in mind
that the HR contribution aims in the first place at optimizing the overall company
performance through improving people performance. With the evidence that the human
capital is of increasing importance, HR plays indeed a pivotal role in the conception and
implementation of the people strategies that impact financial results and the
organization’s overall reputation and effectiveness.

The Nestlé Spirit:


You could be forgiven for expecting to see a mission statement here, summing up
our beliefs and principles in a few slick phrases. But that's not the approach they
take.
Nestlé is not like other companies. They have a unique set of values and guiding
principles that have been built up over time. To try to summarize them in a sentence or
two would make them meaningless.

To engender the unique spirit that permeates the entire Nestle Group:

• They believe in people, rather than systems

• They are committed to creating value for our shareholders, but they will not favor
short-term profits at the expense of long-term business development

• They are as decentralized as our basic policy and strategy decisions will allow

• They are committed to continuous improvement rather than dramatic, one-off


changes Above all, they are pragmatic and not dogmatic

• If these are values that strike a chord with you, spare a few minutes to read
through the questions below. If you can tell them all with 'yes', they'd like to hear
from you.

• Do you look forward to change?


Nestlé is proud of its traditions and heritage. But that doesn't mean they are stuck in the
past. To keep us ahead in the ever-changing food industry, they are constantly driving
forward the boundaries of our industry. Our people must be:

• creative

• excited by the future

• flexible

Are you open minded and ready to learn - every day of your career?

• They are committed to the continual training and personal development of our
people. A world of opportunities quite literally awaits those who are prepared to:

• learn something new every day

• adapt to new environments

• develop multi-lingual skills

Do you have courage in your convictions and keep your cool under stress?
Then you could have what it takes to be a Nestlé manager. The development of our
business depends on finding people who are ambitious for themselves and for our
company, who can:

• communicate and innovate

• motivate and inspire


• delegate without abdicating responsibility

Do you want to explore new countries and adopt new cultures?


Nestlé has been an international company since its very beginning. Food is intrinsically
linked with local eating and social habits, and Nestlé endeavors to integrate itself as much
as possible into the cultures and traditions of the countries where it operates. To deliver
products that meet the needs of individual consumers, they need people who:

• respect other cultures

• embrace diversity

• never discriminate on any basis

Are you ready to be the best?


Whether they are creating a product to fulfill a nutritional need, or a chocolate bar that's
purely for pleasure, Nestlé is only satisfied with the best. They expect that same
commitment to quality from our people. So get in touch with us if you are:

• enthusiastic

• dedicated

• ready to be part of our success


Many other companies say that people are their most precious asset. They know that what
makes our company unique is our staff: the people who share our beliefs and principles
and who work constantly to keep Nestlé in its leadership position. Nestlé is not a faceless
company selling to faceless consumers. It is a human company providing response to
individual human needs the world over.
Corporate Business:
Nestlé is committed to the following Business Principles in all countries, taking into
account local legislation, cultural and religious practices:
Nestlé's business objective, and that of management and employees at all levels, is to
manufacture and market the Company’s products in such a way as to create value that
can be sustained over the long term for shareholders, employees, consumers, business
partners and the large number of national economies in which Nestlé operates;
Nestlé does not favor short-term profit at the expense of successful long-term business
development, but recognizes the need to generate a healthy profit each year in order to
maintain the support of our shareholders and the financial markets, and to finance
investments;
Nestlé recognizes that its consumers have a sincere and legitimate interest in the
behavior, beliefs and actions of the Company behind brands in which they place their
trust, and that without its consumers the Company would not exist;
Nestlé believes that, as a general rule, legislation is the most effective safeguard of
responsible conduct, although in certain areas, additional guidance to staff in the form of
voluntary business principles is beneficial in order to ensure that the highest standards are
met throughout the organization;
Nestlé is conscious of the fact that the success of a corporation is a reflection of the
professionalism, conduct and the responsible attitude of its management and employees.
Therefore recruitment of the right people and ongoing training and development are
crucial;
Nestlé operates in many countries and in many cultures throughout the world. This rich
diversity is an invaluable source for our leadership. No single document can capture
every legal obligation that may be required in each of these countries. Indeed, there may
be conflicting legal requirements. Nestlé continues to maintain its commitment to follow
and respect all applicable local laws in each of its markets. If an interpretation of
anything contained in this document is construed as contrary to local laws, such
interpretation should not be followed in that country

Nestlé Corporate Business Principles:


Nestlé is committed to the following Business Principles in all countries, taking into
account local legislation, cultural and religious practices:
– Nestlé’s business objective, and that of management and employees at all levels is to
manufacture and market the Company’s products in such a way as to create value that
can be sustained over the long term for shareholders, employees, consumers, business
partners and the large number of national economies in which Nestlé operates.
– Nestlé does not favor short-term profit at the expense of successful long-term business
development, but recognizes the need to generate a healthy profit each year in order to
maintain the support of our shareholders and the financial markets band to finance
investments; Nestlé recognizes that its consumers have a sincere and legitimate
interesting the behavior, beliefs and actions of the Company behind brands in which they
place their trust, and that without its consumers the Company would not exist.
– Nestlé believes that, as a general rule, legislation is the most effective safeguard of
responsible conduct, although in certain areas, additional guidance to staff in the form of
voluntary business principles is beneficial in order to ensure that the highest standards are
met throughout the organization; Nestlé is conscious of the fact that the success of a
corporation is a reflection of the professionalism, conduct and the responsible attitude of
its management and employees.
Therefore recruitment of the right people and ongoing training and development are
crucial; Nestlé operates in many countries and in many cultures throughout the world.
This rich diversity is an invaluable source for our leadership. No single document can
capture every legal obligation that may be required in each of these countries. Indeed,
there may be conflicting legal requirements. Nestlé continues to maintain its commitment
to follow and respect all applicable local laws in each of its markets.
If an interpretation of anything contained in this document is construed as contrary to
local laws, such interpretation should not be followed in that country.

National Legislation and


International Recommendations:
Nestlé emphasizes that, as a minimum, its employees must comply with the laws
applicable in the countries in which it operates. Nestlé ensures that the highest standards
of responsible conduct are met throughout the organization, by complying in a
responsible way with the Nestlé Corporate

Business Principles:
That guide Company activities and relationships worldwide in each sector of business
interest.
Nestlé supports and publicly advocates the United Nations Global Compact and its nine
principles, an initiative of the United Nations Secretary-General. The Global Compact
asks companies to embrace, support and enact, within their sphere of influence, a set of
core values in the areas of human rights, labor standards and the environment.
Nestlé recognizes that increasing globalization is leading to the development of more and
more international recommendations. Although, as a general rule, these recommendations
are addressed to governments, they inevitably impact on business practices. Among
others,
Nestlé has incorporated relevant International Labor Organization Conventions. Nestlé
endorses relevant commitments and recommendations for voluntary self regulation issued
by competent secretarial organizations, provided they have been developed in full
consultation with the parties concerned. These include the International Chamber of
Commerce (ICC) Business Charter for Sustainable Development. Also, Nestlé uses the
revised Organization for Economic Co-operation and Development (OECD) Guidelines
for Multinational Enterprises, for its Corporate Business Principles.

Consumers:
Nestlé aims to create value that can be sustained over the long term by offering
consumers a wide variety of high-quality, safe food products, at affordable prices. The
Nestlé Seal of Guarantee is its basic promise to the consumer. Nestlé believes that
consumer communications such as advertising play an important function in enabling
consumers to exercise their right to informed choice. The Company is committed to
responsible consumer communications that: do not mislead as to the benefits derived
from use of the product;
– do not exploit violence, sex or profanity;
– do not depict discriminatory or offensive attitudes to religious, political, ethnic, cultural
or social groups;
– avoid demonstrations that encourage dangerous or inappropriate use of the product;
– do not portray competitors’ products inaccurately, nor denigrate competitors’ products;
– avoid the exploitation of media events that could be in bad taste. In addition to the
above principles, Nestlé does not sponsor consumer communication vehicles such as
television and radio programs or magazines whose strategy of attracting readers is to
exploit violence, sex or offensive attitudes to consumers. When collecting consumer data,
Nestlé complies with applicable data protection regulations and applies Nestlé standards
where specific legislation is not yet in place.

Children as Consumers
Nestlé has developed the following principles for advertising to children:
– Advertising to children should not attempt to undermine the authority, responsibility or
judgment of parents or care providers;
– Advertising to children should not portray children in unsafe situations nor encourage
them to accept invitations from people they do not know;
– Communications should not demonstrate either unsafe or irresponsible consumption.
As programming is increasing in importance as a marketing communications vehicle, the
principles applied to other forms of communication will be applied here.

Human Rights:
Nestlé fully supports the United Nations Global Compact’s two guiding principles on
human rights. Nestlé therefore: Supports and respects the protection of international
human rights within its sphere of influence (Principle 1)
And ensures that its own companies are not complicit in human rights’ abuses (Principle
2)
Nestlé aims to provide an example of good human rights’ practices throughout its
business activities and has an interest in encouraging the improvement of social
conditions, which are an important factor for sustainable development. Nestlé also
recognizes that governments are ultimately responsible for the establishment of a legal
framework for protecting human rights within their markets. Nestlé expects each market
to respect and follow the local laws and regulations concerning human rights’ practices.

Child Labor:
It is generally acknowledged that the causes of child labor are complex and include
poverty, differing stages of economic development, social values and cultural
circumstances. Nestlé believes policy development must take into account the social and
legal situation of individual countries. Action to eliminate child labor must be guided by
the best interests of the child, as ill-considered policies and commercial measures can
make the situation worse for children.
Therefore, Nestlé:
– is against all forms of exploitation of children. The Company does not provide
employment to children before they have reached the age to have completed their
compulsory education, as defined by the appropriate authorities, and expects its business
partners and industry suppliers to apply the same standards;
– abides by national laws in all countries which it has operations and complies with the
International Labor Organization (ILO) Convention 138 on the Minimum Age for
Employment and the ILO Convention 182 on the Worst Forms of Child Labor. The ILO
recommendations are based on the United Nations Convention of the Rights of the Child
(Article 32);
– offers its co-operation with the relevant United Nations agencies, governments and the
business community in their efforts to deal with the problem of child labor, which include
the encouragement of universal primary education and all aspects of economic
development worldwide.

Business Partners:
Nestlé insists on honesty, integrity and fairness in all aspects of its business and expects
the same in its relationships with all business partners and suppliers of materials, goods
and services. Nestlé therefore supports and applies:
– The International Chamber of Commerce revised rules on extortion and bribery in
international business transactions, which recommend governments to prohibit extortion
and bribery for any purpose (adopted by the ICC Executive Board on March 26, 1996);
– OECD Recommendations on Bribery and International Business Transactions of May
1994 and the OECD Convention to counteract corruption, which was signed by all the
member countries and by Argentina, Brazil, Bulgaria, Chile and Slovakia in 1997 (the
signatories undertake to consider corruption of foreign officials a penal act under their
national law);
– Nestlé also supports OECD efforts to have non-member nations adhere to the OECD
recommendations for fighting against corruption.

RELATIONSHIPS

Relationship with Suppliers


Nestlé aims to deal only with reputable suppliers who are willing to apply Nestlé quality
standards. Supplier relationships are benchmarked and evaluated with the objective of
striving for continued improvement in the areas of quality, service, etc. As a relationship
between a supplier and Nestlé strengthens and progresses, it may evolve into one of
preferred supplier status. Key suppliers with which Nestlé has a contractual relationship
are audited in order to ensure that they comply with the Nestlé Corporate Business
Principles or that they are working actively to achieve compliance. Whenever instances
of non-compliance are brought to the Company’s attention, Nestlé will demand that
corrective measures be initiated. Nestlé personnel will maintain the highest standards of
integrity and professional competence in all business relationships. Sanctions will be
applied in the event of misconduct or abuse of established corporate standards and
guidelines.

Competition:
Nestlé supports free enterprise and therefore competes fairly and recognizes other
companies’ equal rights to do so. The Company supports the development of competition
laws to protect this principle. In particular:
– Nestlé sets its commercial policy independently and does not fix prices in agreement or
collusion with competitors;
Nestlé does not allocate customers, territories or product markets in agreement or
collusion with competitors;
– Nestlé deals fairly with its customers and suppliers, in accordance with competition
laws;
– Nestlé will look towards mergers and acquisitions as a means to improve its
effectiveness, not to restrict competition;
– Nestlé’s trade payments are based on customer efficiencies and services provided.

External Relations
Authorities: Nestlé supports ongoing dialogue between all industry sectors in which it is
active and the appropriate government and regulatory authorities at both national and
international levels, in order to promote and implement relevant legislation, regulations
and/or agreements which protect the rights of the consumer while ensuring a healthy,
competitive environment. Business Relations: Nestlé’s business relations are based on the
principles of mutual trust, fairness and professionalism in the context of a free-market
economy. Academic/Professional Relations: Nestlé encourages two-way communication
and co-operation with academic and professional bodies to foster continual updating of
knowledge for mutual benefit, leading to the constant improvement of the Group’s
products, policies and services.
Financial: Nestlé communicates openly, directly and accurately and takes advantage of
appropriate communication tools to ensure that information is available simultaneously to
the financial community and general public. No individual or institution is given
preferential treatment. Local Communities: In addition to the direct investment and
employment provided throughout the world, Nestlé contributes in many countries to the
well-being of local communities in other ways. The personal involvement of Nestlé
people in many projects, together with financial assistance and sharing of know-how with
local organizations helps to develop long-term community relations and mutual
understanding. Non-Governmental Organizations: Nestlé engages in dialogue with non-
governmental organizations that have a record of constructive engagement and principled
behavior. They encourage discussion that can result in improved understanding and
collaboration in the economic, social and environmental betterment of the community.
Nestlé is involved in project partnerships with a significant number of non-governmental
organizations. Internet Privacy Policy: The Internet is changing the way of doing
business. It concerns business-to-business relations and also the Company’s interaction
with consumers. In this respect Nestlé S.A. has an Internet Privacy Policy which is
available on the Corporate They site. This policy aims to protect the privacy of the users;
it covers, for instance, the accessing, deleting or correcting of information, the security of
information, and relates also to tracking technologies. Nestlé supports industry self-
regulation and respects the local laws of the markets it serves in this domain.

Protection of the Environment


Since its early days Nestlé has been committed to environmentally sound business
practices throughout the world and continues to make substantial environmental
investments. In this way Nestlé contributes to sustainable development by meeting the
needs of the present without compromising the ability of future generations to meet their
own needs. The Nestlé

Policy on the Environment underlines this commitment. Nestlé also adheres to the
International Chamber of Commerce (ICC) Business Charter for Sustainable
Development. This Charter requires the establishment of policies, programs and practices
for conducting operations in an environmentally sound manner.
Nestlé fully supports the United Nations Global Compact’s three guiding principles on
environment.

Nestlé therefore:
Supports a precautionary approach to environmental challenges (Principle 7)
Undertakes initiatives to promote greater environmental responsibility (Principle 8)
Encourages the development and diffusion of environmentally friendly technologies
(Principle 9)

Nestlé:
– integrates environmental policies, programs and practices into each business as an
element of management in all its functions;
– develops, designs and operates facilities and conducts its activities taking into
consideration the efficient and sustainable use of renewable resources, the minimization
of adverse environmental impact and waste generation, and the safe and responsible
disposal of residual wastes;
– respects and complies with existing laws and regulations in local markets concerning
environmental issues;
– applies Nestlé internal standards suitable to local conditions in those regions where
specific environmental legislation is nonexistent or insufficient;
– improves environmental protection relevant to its activities on a continuous basis;
– provides appropriate information, communication and training to build internal and
external understanding about its environmental commitment and action;
– supports professional associations such as the International Chamber of Commerce and
the World Business Council for Sustainable Development in their work relative to
environmental protection, as they’ll as efforts to set up environmental management
guidelines;
– establishes environmental objectives, monitors progress, checks results and defines
future actions. This activity, carried out by Nestlé specialists, ensures the continuous
improvement of environmental performance throughout the supply chain, from producing
and purchasing of raw materials, to manufacturing, packaging, distribution and finally to
the consumer.
Agricultural Raw Materials
Agricultural raw materials, principally milk, coffee, cocoa, cereals, vegetables, fruit,
herbs, sugar and spices, are vital factors affecting the quality and costs of Nestlé
manufactured food products and, as a consequence, the Company’s business
performance. Sourcing strategies and production methods are subject to an ever-changing
environment. New technological developments in the field of agriculture, changes in
agricultural policies or trade regulations, new technologies in food processing, and
evolving consumer preferences, mean that Nestlé must adapt its sourcing strategies
accordingly. This is a continuous process. Governments and/or political institutions
regulate farming and the trade of farm products. Because of the effect of such regulation
on pricing, availability, domestic and international trade, and on the economic, social and
ecological aspects of farming and consequently on food safety and quality aspects, Nestlé
engages in constructive dialogue with government institutions (primarily through
professional organizations), and co-operates with local authorities.
In this context Nestlé:
– supports farming practices and agricultural production systems that are sustainable; that
is those practices and systems that satisfy long-term economic, ecological and social
requirements;
– sources its agricultural raw materials either through trade channels or directly from
farmers and is not engaged itself in its own commercial farming activities;
– supports mechanisms that contribute to a more regular income for farmers;
– Where appropriate, provides agricultural assistance to farmers in order to:
- transfer know-how
- ensure ongoing supply at competitive conditions
- obtain raw materials that meet quality and safety specifications
– supports an agricultural production system that is economically viable, socially
acceptable and ecologically sound and therefore encourages sustainable farming
practices;
– supports the application of new technologies and advances in agricultural science,
including the opportunities offered by today’s bioscience when their positive effect on
food safety, environment, agricultural practices and production efficiency are
scientifically confirmed and accepted by consumers;
– recognizes the importance of genetic diversity as a pillar for future developments in
agriculture and life science, and supports its preservation as a public good.

Agricultural services:
Nestlé has a long tradition of helping the farmers who provide our raw material.
Nestlé Pakistan is committed to continuing this tradition; they consider it a way of
engaging in a mutually profitable partnership with our suppliers.
Thus, ever since they took over the milk collection system in 1992, our Agricultural
Services have endeavoured to help the farmers of the milk district with their husbandry.
Better animals means there will be better milk. They gain a reliable supply of high quality
milk, but the greatest benefits, both immediate and long-term, are to the farmers
themselves.

Agricultural raw materials procured directly from farms


The decision to establish or maintain a direct procurement system depends on a number
of factors. They include:
– Company requirements in terms of quality, safety, quantity and cost;
– Proprietary characteristics of individual raw materials;
– Reliability in supply and the local conditions for sustainable production. Direct
procurement provides the following benefits to farmers and co-operatives:
– An understanding of Nestlé’s quality and safety requirements;
– Objective and transparent evaluation of raw material quality;
– transparent price policy providing farmers a reference level of prices for their raw
materials, thus leaving them with the choice as to where to sell their produce;
– Quality premiums that encourage farmers to achieve and maintain high quality
standards. If warranted, Nestlé may assist farmers to improve their quality, yield and
economic competitiveness.
Corporate Social Responsibilities
They believe that every single company, no matter where in the world it operates, ought
to be fully integrated into the local social, cultural & economic life. They must be good
corporate citizens, and give back to the societies to which they belong.
There are two ways of fulfilling our responsibility and practicing corporate Social
Responsibility:
v Through social investments: giving to charities, leading and supporting cultural or
welfare initiatives.
v Through the realization that businesses create social and environmental impacts, both
positive & negative, through the daily operations of their value chain.
Our operations throughout the world are committed to making full use of these tools.
Thus Nestlé people everywhere are involved in the many programs and projects they
have designed to strengthen local communities and nations.
They are heavily involved in projects relating to our own areas of expertise, such as
nutrition education & research, health projects, and agricultural assistance. In times of
crisis they are often amongst the first on the scene to help with humanitarian relief aid
and food donations.
To help culture & society flourish, they do our best to encourage a host of other
activities: they support charities, education and training initiatives, art and cultural events,
sport events and HIV/AIDS prevention.

Responsibility to society:
Taking the Nestlé concept of corporate Social Responsibility to heart, they are deeply
involved in social investment and humanitarian aid.
v They are committed to Pakistan's long-term betterment, and strictly follow the code of
corporate governance:
v They deal fairly with stakeholders.
v Serves our consumers through safe, high quality products & communicate with them
responsibly.
v Adhere to environmentally safe industrial practices
v Actively involved in several social action programs (SAPs) to improve the lives of our
country's under-privileged people.
v They adhere to the global Nestlé philosophy of Creating Shared Value. Our dairy
suppliers in the Punjab's milk district can attest to the agricultural and technical support
they offer them.
v During our manufacturing process they are careful to minimize environmental impact
and value employee welfare highly.
v Finally, they try to benefit our consumers by spreading awareness about healthy
nutrition and lifestyles as they’ll as constantly developing or improving existing products
for health, nutrition and wellness.

Responsibility to environment:
In line with Nestlé's global commitment, Nestlé Pakistan is dedicated to playing its role
in helping to protect the environment. They comply with the Environmental Act (1997),
and try to ensure that at every stage of our operations, the environmental impact is
minimal.
Thus, at the raw materials stage, they support sustainable agricultural and dairy farming
practices, including environmental protection.
When it comes to production, all our factories try to maximize eco-efficiency, i.e.
increase production while minimizing resource consumption, waste and emissions.
Our factories are equipped with complete testing and monitoring facilities for waste and
air emissions. To eliminate air pollution, they have stopped using heavy fuel oil in our
factories, which are now run on clean natural gas. This has reduced our emissions into the
atmosphere to they’ll below the legal limits.
Our Sheikhupura & Kabirwala factories have elaborate water treatment systems to
prevent wastewater from polluting the environment.
Natural gas incinerators at our Sheikhupura & Kabirwala factories are used to safely
dispose of material that cannot be recycled & dumped.
Our factories have environment committees to manage routine environment issues and
review performance. Environmental impact assessment is done in advance for every new
project and measures are adopted to minimize adverse impacts on the environment. Our
employees regularly undergo training to inculcate awareness about environment-friendly
practices.

Earthquake Relief
In October 2005, the biggest natural calamity in our history struck Pakistan. Thousands
died and millions they are left homeless after a massive earthquake hit our mountainous
northern areas. In step with the rest of the nation, Nestlé Pakistan responded immediately,
putting its infrastructure and resources to work in the affected areas.

First response:
When the earthquake struck, Nestlé Pakistan responded instantly, even before the
magnitude of the disaster had dawned upon the nation. They immediately donated food
and beverage items.
Within two days, they had established a crisis committee under the supervision of our
Managing Director. The same day, the management team left to visit the affected areas,
and by 11 October, the first six Nestlé trucks left our factories, bearing bottled water,
powdered and UHT milk and ready-to-cook MAGGI noodles.
Instead of burdening the government and relief agencies, they aggressively reactivated
our own shattered distribution channels to bring supplies to the people who needed them
most and established six camps to distribute relief goods.
Despite blocked roads, grave logistical challenges & an atmosphere of fear and suffering,
our teams, consisting of about forty Nestlé employees and distributors, they went out and
distributed Nestlé products to the affecters.
Within two days our teams reached the worst-hit areas around Muzaffarabad, Bagh and
Mansehra. They worked in collaboration with the Pakistan Air Force and arranged for
supplies to be airdropped to the most inaccessible areas.
Other teams of Nestlé volunteers supported relief work undertaken by other agencies
around the affected areas.
As a result of our swift and carefully planned action, they are able to distribute 80 trucks
of goods, worth Rs 20 million. Two 10-ton trucks of drinking water they are dispatched
to Muzaffarabad Hospital, and our volunteer teams ensured that goods they are
distributed fairly and efficiently to those who needed them most.

After a month:
After the crisis comes a time for rebuilding shattered lives. Among our reconstruction
efforts are the following initiatives:
v They have allocated an amount of Rs 20 million, raised through employee
contributions, matching grants and contributions from other Nestlé markets. This amount
will be used to adopt and reconstruct a model village in Azad Kashmir.
v They are thankful that no Nestlé employee was personally affected, though a few lost
family members and property. They have compensated all employees, distributors and
their staff for homes destroyed, to the tune of Rs 4.1 million.
v They intend to build an orphanage in the affected areas for the hundreds of children
who lost their parents in this disaster.
v They are initiating a livestock health improvement program to help the locals rebuild
their shattered lives.
v Our parent company, Nestlé SA has donated an additional Rs 16 million for
reconstruction and rehabilitation work.

Pitching in:
Nestlé employees worked tirelessly to bring aid to earthquake victims. They are
immeasurably proud of our people for their contributions: Nestlé employees donated Rs
3.3 million from their own salaries. Nestlé employees in other countries also stepped
forward and donated to the Nestlé relief fund. Five teams of staff volunteers worked day
and night in the affected areas to ensure that relief goods got where they are needed. A
medical detailing team worked with the students of King Edward Medical University,
Lahore, to collect medicines worth Rs 175,000. Our parent company, Nestlé SA has
donated an additional Rs 16 million for reconstruction and rehabilitation work.

References
Mr. M. Hussain Bhatti
Union Chairman Nestle
Mr. Capt. Sajjid
HR Manager
Miss Shazia Parveen
OD Executive
Tel : 92-65-111 637853
Nestle Kabbirwala Pakistan.
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Labels: Human Resource Management (HRM)

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