Nestlé Pakistan Limited - Integrating Corporate Social Responsibility (CSR) into business model

02 Aug, 2007

Nestlé Pakistan Ltd has a very unique CSR profile which is inbuilt into its business model. There are three Generic areas of our CSR profile and also for Afghanistan as follows:
UNIQUE MILK COLLECTION DISTRICT: The concept is to "integrate rural development with the market mechanism" and with a shared value concept create a win-win situation for the farmers and Nestlé Pakistan.
THE SNAP SHOT OF ACTIVITIES IS AS FOLLOWS:
1. Milk Collection: Nestlé collects milk from 150,000 associated farmers from an area of 100,000 square kilometres from Punjab province, with 1,700 chilling stations, 700 village milk collection centres (villagers collect milk from within the village and supply it), 400 tankers, all involving local people as contractors, suppliers and employees. In 2007 alone, over PKR 8 billion will be paid to farmers in cash for their milk.
2. Agri-services: The integral Agri-services function provides technical support to farmers in shape of veterinary assistance, farm management, animal husbandry and farmer training almost free of cost. Also importation of cows etc.
3. DAIRY DEVELOPMENT INITIATIVES: Have assisted the stake holders to formulate strategies for developing the dairy sector in Pakistan which include a white paper, participating in Dairy Board with other dairy players, support for Research and Development to University of Agriculture and University of Veterinary Sciences and official initiation of dairy sector training under National Skills Training Programme.
4.UNDP partnership project for training 4,000 women livestock workers on Basic Livestock Health and Animal Management which in turn develops into basic animal nurses and small business entrepreneurs as:
i) village milk agents.
ii) small shop holders selling animal fodder and related nutrition items.
SOCIO-ECONOMIC DEVELOPMENT FOR THE COMMUNITIES:
As part of CSR Nestlé Pakistan Ltd is spending over CHF 2 million in current year (rated amongst the top 12 best philanthropic organisations by Pakistan Centre of Philanthropy) to contribute for the socio-economic development which includes the following:
1. Primary school education.
2. Nutrition (Company products) support to destitute women, orphans
and disabled.
3. Support for higher education and research to universities and merit/ need based scholarships. (LUMS etc).
4. Support to organisations helping disabled children and people.
5. Supporting (limited scale) sports and cultural events.
6. Water projects for the communities and support for environment.
7. Humanitarian help for earthquake and building orphanage with SOS children's village.
GOOD CORPORATE GOVERNANCE: With ethical code of conduct of trust and transparency and demonstrating an image of good corporate citizenship with due respect to National and International best practices and UN Global Compact which include:
1. Provision of safe quality products for consumers respecting national and international laws on quality, food, water and nutrition segments.
2. Life insurance and minimum wages.(Even for contractors).
3. Equitable medical policy. (For management and non-management) 4.Respecting/practicing environmental laws and supporting studies for issues related to water and environment.

Read Comments