Post on 20-Jan-2023
BUSINESS PROFILE OF SELECTED COMPANIES
PROFILE OF NESTLE NIGERIA
Mission Statement
Nestlé is the world's leading nutrition, health and wellness
company. Our mission of "Good Food, Good Life" is to provide
consumers with the best tasting, most nutritious choices in a
wide range of food and beverage categories and eating
occasions, from morning to night
Vision and values
To be a leading, competitive, Nutrition, Health and Wellness
Company delivering improved shareholder value by being a
preferred corporate citizen, preferred employer, preferred
supplier selling, preferred products.
Nestle, the leading nutrition, health and wellness company has
emerged the best company in Creating Shared Value in Nigeria.
Nestle Nigeria Plc is a Nigeria-based company engaged in the
manufacturing, marketing and distribution of food products
including purified water throughout the country and West
Africa. It head office is located at 22/24 Industrial Avenue,
Ilupeju Lagos. The Company operates in two business segments:
food and beverages. Its food segment includes the production
and sale of Maggi, Cerelac, Nutrend, Nan, Lactogen and Golden
Morn. Its beverages segment includes the production and sale
of Milo, Milo Ready to Drink, Choco milo, Nido, Nescafe and
Nestle Pure Life. The Company explores the use of local raw
materials in its production processes and has introduced the
use of locally produced items, such as soya bean, maize,
cocoa, palm olein and sorghum in a number of its products. It
substituted imported corn starch with locally produced cassava
starch as a recent development. The Company’s products are
distributed through various distributors that are spread
across the whole country.
DESCRIPTION OF NESTLE MARKET
Market Share/Importance:
Nestlé employs approximately 253,000 people in some 511
factories worldwide. Nestlé is not only Switzerland's largest
industrial company, but also the world's largest food company,
considerably larger of than its nearest rivals Kraft Foods
Inc. and Unilever plc. With products like Perrier and Nescafé,
it is the market leader worldwide in coffee and mineral water,
the largest manufacturer of pet food, and is fast increasing
its share of the ice cream market.
Nestlé acquired Ralston-Purina, a US pet food company, in
2001. Despite producing pet food through its subsidiary,
Carnation, since 1985, this acquisition now sees it outstrip
Mars as the world's largest pet food manufacturer. Not to be
outdone by Unilever's acquisition of Ben and Jerry's, Nestlé's
merger with US food corporation Dreyer's to form the Dreyer's
Grand Ice Cream Company in 2003 has given it the number one
spot in the US ice-cream market, having already bagged the
Häagen Dazs, Schöller and Mövenpick brands. Globally, Nestlé
is now hot on the heels of Unilever as the number one ice
cream seller, a position that it seeks in every market and
category in which it operates around the world Nestlé is
the biggest food company in the world, with a market
capitalisation of roughly 210 billion Swiss francs, which is
more than 200 billion U.S. dollars
In 2013, consolidated sales were CHF 92.16 billion and net
profit was CHF 10.02 billion. Research and
development investment was CHF 1.50 billion.
· Sales by activity breakdown
22% from drinks (coffee, tea, etc)
7% from bottled water
19% from dairy products
15% from ready-prepared dishes and ready-cooked dishes
11% from chocolate, candies, other sweets
12% from pet products
13% from Nestlé Nutrition (incl. baby food) and HealthCare
Sales by geographic area breakdown
28% from Europe
44% from Americas (25% from US)
28% from Asia, Oceania and Africa
MAJOR COMPETITORS OF NESTLE
· Nestlé's largest international competitors
are PepsiCo, Kraft Foods, Unilever and Mars Incorporated. It
also faces competition in local markets or specific product
ranges from numerous companies, including Sara
Lee, Cadbury and Danone. Mars, Incorporated Groupe Danone,
Mondelez International, Inc.
TARGET MARKET
Nestle is a huge company with numerous products and numerous
geographic targets so it is very difficult to tell in one word
what is the target region or market for the entire company
Nestlé has some 8,000 brands,[22] with a wide range of products
across a number of markets, including coffee, bottled
water, milkshakes and other beverages, breakfast
cereals, infant foods,performance and healthcare
nutrition, seasonings, soups and sauces, frozen and
refrigerated foods, and pet food.[23] Nestlé's brands include:
· Coffee and tea
· Bottled water (Nestlé Waters)
· Milkshakes and other beverages
· Chocolate and confectionery
· Ice cream
· Breakfast cereals (some distributed by Cereal Partners Worldwide
· Baby food
· Seasonings, soups and sauces (Nestlé Professional)
· Frozen and refrigerated foods
· Pet food (Nestlé Purina Pet Care)
Pharmaceutical products and active cosmetics (controlled by joint ventur
DESCRIPTION OF NESTLE MARKET
Market Share/Importance:
Nestlé employs approximately 253,000 people in some 511
factories worldwide. Nestlé is not only Switzerland's largest
industrial company, but also the world's largest food company,
considerably larger of than its nearest rivals Kraft Foods
Inc. and Unilever plc. With products like Perrier and Nescafé,
it is the market leader worldwide in coffee and mineral water,
the largest manufacturer of pet food, and is fast increasing
its share of the ice cream market.
Nestlé acquired Ralston-Purina, a US pet food company, in
2001. Despite producing pet food through its subsidiary,
Carnation, since 1985, this acquisition now sees it outstrip
Mars as the world's largest pet food manufacturer. Not to be
outdone by Unilever's acquisition of Ben and Jerry's, Nestlé's
merger with US food corporation Dreyer's to form the Dreyer's
Grand Ice Cream Company in 2003 has given it the number one
spot in the US ice-cream market, having already bagged the
Häagen Dazs, Schöller and Mövenpick brands. Globally, Nestlé
is now hot on the heels of Unilever as the number one ice
cream seller, a position that it seeks in every market and
category in which it operates around the world Nestlé is
the biggest food company in the world, with a market
capitalisation of roughly 210 billion Swiss francs, which is
more than 200 billion U.S. dollars
In 2013, consolidated sales were CHF 92.16 billion and net
profit was CHF 10.02 billion. Research and
development investment was CHF 1.50 billion.
Sales by activity breakdown
22% from drinks (coffee, tea, etc)
7% from bottled water
19% from dairy products
15% from ready-prepared dishes and ready-cooked dishes
11% from chocolate, candies, other sweets
12% from pet products
13% from Nestlé Nutrition (incl. baby food) and HealthCare
Sales by geographic area breakdown
28% from Europe
44% from Americas (25% from US)
28% from Asia, Oceania and Africa
MAJOR COMPETITORS OF NESTLE
· Nestlé's largest international competitors
are PepsiCo, Kraft Foods, Unilever and Mars Incorporated. It
also faces competition in local markets or specific product
ranges from numerous companies, including Sara
Lee, Cadbury and Danone. Mars, Incorporated Groupe
Danone,Mondelez International, Inc.
TARGET MARKET
Nestle is a huge company with numerous products and numerous
geographic targets so it is very difficult to tell in one word
what is the target region or market for the entire company
Nestlé has some 8,000 brands,[22] with a wide range of products
across a number of markets, including coffee, bottled
water, milkshakes and other beverages, breakfast
cereals, infant foods,performance and healthcare
nutrition, seasonings, soups and sauces, frozen and
refrigerated foods, and pet food.[23] Nestlé's brands include:
Coffee and tea
Bottled water (Nestlé Waters)
Milkshakes and other beverages
Chocolate and confectionery
Ice cream
Breakfast cereals (some distributed by Cereal Partners Worldwide
Baby food
Seasonings, soups and sauces (Nestlé Professional)
Frozen and refrigerated foods
Pet food (Nestlé Purina Pet Care)
Pharmaceutical products and active cosmetics (controlled by joint ventures)
PROFILE OF PZ CUSSONS
PZ Cussons Nigeria Plc, is a subsidiary of PZ Cussons
(Holdings) Limited, is a Nigeria-based company engaged in the
manufacture, distribution and sale of a range of consumer
products and home appliances. The Company is engaged in
manufacture and distribution of soaps, detergents, toiletries,
beauty products, pharmaceuticals, electrical goods, edible
oils, fats and spreads and nutritional products, as well as
distributes the products of Nutricima Limited, Harefield
Industrial Nigeria Limited and PZ Wilmar Limited. The Company
operates 26 distribution depots across Nigeria, namely Aba,
Ilorin, Minna, Isolo and Onitsha depots, among others. As of
May 31, 2012, the Company’s operating subsidiaries included
HPZ Limited, PZ Power Company Limited, PZ Tower Limited and
Roberts Pharmaceuticals Limited.
DESCRIPTION OF THE MARKET
Nigeria is PZ Cusson's largest and most diverse single market,
operating in Personal Care, Home Care, Food and Nutrition and
Electricals. We've been here for over 100 years and today employ
over 3500 people working across our extensive network.
Key Categories and Brands
Personal Care - Imperial Leather, Carex, Cussons
Baby, Premier, Robb, Venus, Joy
Home Care - Zip, Morning Fresh
Electricals - Haier Thermocool, TEC
Food and Nutrition - Yo!, Nunu, Coast, Bliss,
Mamador
Businesses
PZ Cussons Nigeria
The heart of our Peronal Care and Home Care operations we
innovate and manufacture some of Nigeria's most well loved
leading Family brands. We continue to grow through brand
innovation and renovation and the development of new
distribution points. Our major manufacturing centres are
based in Lagos and Aba and our extensive, fast and reliable
distribution network covers over 80% of the country.
Nutricima
Their Joint Venture with Glanbia Plc, develops, manufactures
and distributes unique and delicious beverages in ranges to
suit our consumers diverse range of tastes and needs.
Including milk and yoghurt based drinks such as Nunu and Yo,
and refreshing smoothies and ice teas under the Bliss brands,
our innovative formats are helping to increase the
accessability of nutritious drinks and enhance the well being
of Nigerian consumers.
HPZ
HPZ, their Joint Venture with the Haier Group delivers
quality, reliable and innovative electrical goods to the
Nigerian consumer harnessing cutting edge technology to
address everyday household challenges. Their number one market
share position is in refrigerators freezers and washing
machines and our Leading ranges in other white goods,
audiovisual, air conditioning units and generators.
Coolworld
CoolWorld Electrical Retail Stores provides a modern shopping
environment with a trusted service and finance options for our
consumers to access quality electrical goods including our own
leading Thermocool brand. Their wide product range includes
computing, televisions, DVD players, home entertainment
systems, refrigerators, freezers, air conditioners,
generators, inverters, stabilizers, automatic voltage
regulators, fans, air coolers, washing machines, water
dispensers, water heaters, gas cookers and microwaves.
PZ Wilmar
In 2011, the PZ Wilmar joint venture was formed with the
ambition to establish a food ingredients consumer brand.
Together with our partner Wilmar International Ltd, they
developed a new range of edible cooking oils - Mamador,
providing great quality, healthy cooking oil for Nigerian
families, refined locally in our new world class Palm Oil
refinery in Lagos. The jointly owned palm oil plantations in
Nigeria are aiming to ensure ongoing oil supply and to support
investment in the local Nigerian palm oil industry
Africa is one of our longest-established and most thriving
markets. Diverse, growing and exciting, our brands lead
in Home Care, Electrical Goods,Personal Care, and Food and
Nutrition. Our brands include Imperial Leather,Carex, Cussons
Baby, Zip, Premier, Robb, Nunu, Morning Fresh, Haier, Haier
Thermocool, Elephant, and Yo!.
COMPETITORS OF PZ CUSSONS
Procter & Gamble Company
Unilever
Kao Corporation
OVERVIEW OF THE CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES OF
NESTLE AND PZ
PZ
PZ is a company that is committed to conducting its business
with integrity and with care so far as the social and
environmental impact of their activities are concerned. They
aim to make a positive impact on the society through the
product they manufacture and sell, through the way in which
such product are manufactured and through their contributions
in the communities in which they operate.
PZ CUSSONS Nigeria has been in the forefront of the social and
economic development in Nigeria for more than 100 years. The
PZ Cussons Foundation was established in November 2007 in
order to discharge social responsibility in a more robust and
systematic manner. It is currently set up as an independent
body with the primary aim of discharging CSR activities of the
principal company by supporting projects in the area of
health, roads, education and water. The Foundation is a
demonstration of the commitment of PZ Cussons to Nigeria and a
strong desire to make life noticeably better for the
communities in which they operate.
PZ CUSSONS FOUNDATION
PZ CUSSONS Nigeria has been in the forefront of the social and
economic development in Nigeria for more than 100 years. The
PZ Cussons Foundation was established in November 2007 in
order to discharge social responsibility in a more robust and
systematic manner. It is currently set up as an independent
body with the primary aim of discharging CSR activities of the
principal company by supporting projects in the area of
health, roads, education and water. The Foundation is a
demonstration of the commitment of PZ Cussons to Nigeria and a
strong desire to make life noticeably better for the
communities in which they operate.
HEALTH AND SAFETY:
PZ Cussons (Nigeria) Plc recognises that health and safety of
all employees, contractors, customers, neighbours and all
stakeholders is a top priority and forms an integral part of
its business activities.
The Group is committed to maintaining a safe work place at all
sites, depots and business units across the country so that
accidents and ill health due to work situations are avoided.
The Group regards occupational health and safety as a
fundamental business responsibility and reviews health and
safety matters on a regular basis to ensure that business
activities are undertaken in a responsible manner and in
accordance with relevant statutory legislations.
All categories of employees are trained in occupational health
and safety and provided with necessary personal protective
equipment (PPE) while emphasizing their role in conforming to
safety standards, using established procedures and working
safely to maintain a safe and healthy work environment. Health
and safety practice is fundamental to good manufacturing
practice (GMP). The roll-out of their World Class
Manufacturing (WCM) programme has ensured that their factories
are pleasant and enjoyable places to work in. In addition,
fire equipment such as fire extinguishers, water hydrants,
automatic smoke detectors, etc are in place to handle any fire
emergency.
The Group employs health and safety specialists and provides
on-site medical facilities for employees. Standards of health
and safety at work are continually monitored and improved
through regular safety audits, risk assessments and permit-to-
work, formal accident investigation, hazards identification
and elimination, safety induction and training.
FINANCIAL PERFORMANCE
- benefiting shareholders, employees and the wider community
The board commitment to the principles of CSR reflects its
view that it is incumbent on leading companies to make a
positive contribution to society through their activities. The
board also believes, however, that socially responsible
conduct is value enhancing for its shareholders and other
stakeholders. In particular, the board recognizes the
potential benefits which may be derived where its CSR
activities are aligned to the concerns and demands of its
customers and the Group listens to and takes account of those
concerns in shaping its business strategies and practices. The
board also recognizes that companies are subject to increasing
regulation, particularly in respect of environmental issues,
and that the pursuit of a proactive CSR policy reduces the
risk of adverse regulatory action.
The financial performance of PZ Cussons Nigeria Plc has a
positive impact in all territories in which it operates.
During 2009 revenue and profit after tax for the Nigerian
subsidiary were up on the previous year by 23% and 20%
respectively and this financial performance has generated
benefits for their shareholders, employees and wider
stakeholders.
Cussons we believe in 'doing good business'. We do not believe
that there need be any conflict or inconsistency between being
a successful profitable organisation and, at the same time,
running our operations in such a way that they have a positive
impact on society. On the contrary, we believe that socially
responsible conduct is value enhancing for our shareholders
and all of our other stakeholders. Our good reputation and our
continued success as a business is largely dependent on how we
discharge our responsibilities, as a Group and as individuals,
to all of our stakeholders. Those stakeholders include our
shareholders, customers, suppliers, employees, the wider
community and the environment. We are committed to conducting
our business with integrity and with care insofar as the
social and environmental impact of our activities is
concerned. We aim to make a positive impact on society through
the products which we produce and sell, through the way in
which our products are manufactured and packaged and through
the contributions we make to the communities in which we
operate”.
The above summarizes PZ Cussons’ Statement on Corporate Social Responsibility
initiative called “Doing Good Business” which sets out the Group’s
key values and principles. It was developed by a CSR Committee
which supports PZ Cussons Board responsible for overseeing CSR
within the company.
Indeed, the company considers the principles of CSR to be
integral to how the Group conducts its operations and key to
the results which the Group has delivered in the past and to
its continued success and development in the future. In
particular, PZ Cussons recognises the potential benefits which
may be derived where CSR activities are aligned to the
concerns and demands of stakeholders and listens to and take
account of those concerns in shaping its business strategies
and practices. It also recognizes that companies are subject
to increasing regulation, particularly in respect of
environmental issues, and therefore believe that the pursuit
of a proactive and positive CSR policy reduces the risk of
adverse regulatory action.
One of the Group's core strategic principles is to develop
leading brands which are suited to local needs and tastes. The
introduction of everyday, good quality, affordable products
enhances the quality of the lives of consumers, particularly
in developing countries hence the belief that its mix of
products is consistent with the principles of good CSR.
‘Doing Good Business’
Recognizing that doing the 'right thing' in business can
sometimes seem to involve difficult decisions, the Statement,
the company says, is intended to provide everyone throughout
the Group, at all levels within the business, with guidance on
how to conduct their business activities and on what 'good
business' looks like at PZ Cussons. It is also intended to
motivate and support all of the company’s employees to
identify and vigorously pursue opportunities across the Group
to optimize its activities so far as their social and
environmental impact is concerned.
The Statement sets out 'the Big 6' principal areas in which
operations of the company have the greatest potential to
impact - either favorably or adversely - upon its
stakeholders. They are: The environment; Health and safety;
Product testing and consumer safety; Business conduct and
ethics; employees; and Local community and charity.
The Statement has its foundation in the company’s CANDO
values, being those core values which are embedded in its
culture: Courage; Accountability; Networking; Drive; and
Oneness
THE ENVIRONMENT
The company is committed to protecting the environment for the
benefit of not just its employees but the public at large. With
a number of the Group's products containing palm oil or its
derivatives, the CSR Committee and the Board recognize the
growing concerns over the sourcing of palm oil and the
potential for damage to the environment. As a member of the
RSPO, PZ Cussons has made a time bound commitment to 100 per
cent Certified Sustainable Palm Oil via RSPO approved supply
chain mechanisms and to promote and communicate sustainable
palm oil production, procurement and consumption to customers,
suppliers, sub-contractors and to wider value chains as
appropriate.
Furthermore, the company is committed to reporting and reducing
the Group's carbon footprint, minimization of waste, and
efficient use of energy, water and other natural resources in
the office, factory and warehouse environments and the
prevention of pollution. Indeed, all PZ Cussons manufacturing
facilities have on-going energy reduction initiatives to reduce
carbon dioxide output. Recent initiatives in Nigeria during the
year bear testimony to this. They include the successful
completion of Project Unity, a £39 million investment in
manufacturing and supply chain, involving significant
investment in plant and machinery specifically designed to be
more energy efficient, to minimize atmospheric emissions (to EU
standards) and to significantly reduce other wastes. The
company also generates its own power for its sites via gas
generators resulting in an overall lower environmental impact
than if it were to take power from the national grid. Going
forward, PZ Cussons has employed external consultants to
conduct a major energy survey of the entire Nigerian operation
to identify further reductions in emissions and savings.
LOCAL COMMUNITY AND CHARITY
PZ Cussons recognizes its responsibilities to society and, in
particular, to the local communities in which it operates.
With operations in 10 countries and employing over 8,000 people
worldwide, PZ Cussons is committed to establishing and
maintaining strong relationships with community groups,
building goodwill and a reputation as a good employer. This it
does by not only enriching the lives of its local communities
but also ensuring that where it operates, its activities do not
have any material adverse environmental or social impact upon
local communities.
PZ Cussons encourage, promote and support involvement by its
Group businesses and employees in local community and
charitable initiatives through the allocation of financial and
other resources.
The company also seek to support the local communities in which
her employees live and work by making donations to, and working
with, local charities and investing the time and skills of her
employees.
Indeed, throughout its long involvement in Nigeria, the Group
has always taken very seriously its responsibilities as one of
the country’s leading companies and employers and have
supported a wide range of initiatives and projects over the
years to assist the country’s development, and to improve the
quality of life of its citizens. The PZ Cussons Nigeria
Foundation was founded in 2007 to bring greater focus to those
activities. The Foundation was mandated to support projects in
Nigeria in respect of transport and roads and other
infrastructural improvements relating to the provision of fresh
water, sanitation, health and education. The Foundation funds
and implements projects which: focus on people and community
development in locations where the Group operates; promote the
well-being of local people; are sustainable; and produce
innovative solutions which can be easily replicated throughout
the country.
Recent projects have included the introduction of solar
equipment to power a number of the facilities commissioned in
earlier phases including the recreational park in Ilupeju. The
Foundation has also provided a well-equipped classrooms and
potable drinking water, which has had a positive impact in more
than 13 communities in Nigeria.
Also during the year PZ Cussons Nigeria Plc donated
approximately £125,000 to the Foundation and PZ Cussons Plc
donated a further £125,000 to further execute projects in the
country.
Undoubtedly, PZ Cussons story as a successful and profitable
company aptly demonstrates that doing good business is good
business.
HOW THE VALUES, VISION AND MISSION AFFECTS THE CSR OFPZ/NESTLE
PZ CUSSONS
VALUES
The value of PZ Cussons is Courage, Accountability,Networking, Drive and Oneness (CAN DO) – which are inspired bythe spirit of their founders Paterson and Zochonis. Their CANDO culture is something they are very proud of for theunifying strength that binds their diverse businesses aroundthe world together.
Courage
We challenge convention, ourselves and each other. We have thestrength, willingness and determination to initiate, makethings happen and to carry them through.
Accountability
We are all champions of our Company. We take personalresponsibility for achieving our objectives. We do what we saywe shall do. We do what is right, not merely what is expected.We act with openness, integrity and trust. We ask for help,admit to our mistakes and put things right.
Networking
We are one company across all functions and geographies. Wework towards a common goal through cooperation and teamwork.
Drive
We are relentless in our pursuit of success. Together weapproach each day with the energy, passion and persistence toexceed expectations.
Oneness
We are all PZ Cussons people. We treat each other with respectregardless of status. We act professionally and together wecelebrate our success with understated pride. We are quietachievers.
VISION
1. We are a profitable, growing and dynamic company.2. We are passionate about our leading brands.3. We drive innovation in everything we do.4. We have fantastic CAN DO people.5. We are proud of our unique culture that binds us together.6. We do well, we do well and we have fun!
HOW THEIR VALUES AFFECT THEIR CSR
Their values have affected them in the way they have given
back to the society which they see as an investment. It has
helped them enhance their product sales to get increase the
numbers of their customers. To this advantage, their values
have made them committed to the stakeholders which they
consider as the essential factor in their industry. They
believe that to make sales is reflected in their CSR which is
reflected in their products. Therefore, they have made their
stakeholders to be preferred citizens by meeting various needs
and solving challenges in their surroundings. They carry out
their CSR activities based on the needs of their stakeholders
and they also put into considerations the wellbeing of their
stakeholders. PZ CUSSONS’s value goes a long way to affecting
their CSR activities based on also the product they produce
which is not centred on a particular target audience but on
all. Their values tells them how well and how far they have
meet the needs of the community within and outside, therefore
making them to sort for things that need to be done in several
states and localities which makes them socially responsible.
The values their keeps them in check of the customers thereby
ensuring that their customers and satisfied with the
activities and their performance. Based on their values, they
are able to build a residential park area for the community to
meet up the values they have set for themselves. Based on
this, their stakeholders are therefore sees them as reliable
and committed and as accountable.
NESTLE NIGERIA
The company received the award at this year’s edition of
Social Enterprise Reports and Award at MUSON Centre recently.
According to a release signed by the company’s Corporate
Communications and Public Affairs Manager, Dr. Samuel
Adenekan, Nestle was also voted as the third most socially
responsible company in Nigeria.
At the event, the Managing Director of TruContact, the
organisers of the ceremony, Mr. Ken Egbas, said the annual
award was held to reward companies which had excelled in their
CSR activities.
The company was also commended for its Quality Grains
Improvement Project, which is aimed at ensuring high-quality
grains by reducing Mycotoxin contamination in grains through
good agricultural and storage practices.
The SERAs-Nigeria CSR award is the gold standard in the
assessment and documentation of corporate social
responsibility and sustainability programmes of organisations
in Nigeria.
The CSR Award is coming on the heels of just concluded maiden
Creating Shard Value Forum in Central and West Africa held at
the Lagos Business School of Pan-African University.
The forum — the first by Nestle in the sub-region — is part of
the company’s Creating Shared Value approach, under which
initiatives are designed to address the company’s business
needs, while also scaling up sustainable investments in
nutrition, water and rural development across the world.
Health and Nutrition Nestle is an advocate for good health
and proper nutrition. It conducts feeding programs and medical
missions in the areas where it operates.
Education and Manpower Development • Donate-a-Classroom
Program • Technical Skills Scholarship Program • Academic
Linkage Program
Community Development • Cut and Sew Livelihood Project • Yard
and Garden Livelihood Project • Street Illuminations Project
Environmental Protection and Preservation • Nestle
Environmental Management • Solid Waste Management Program •
The Greening the Supply Chain • Air Emission Testing
Program Shift from Corrugated Container to Shrink Film From
twin to single sachet Reduced cut-off length Packaging Source
Reduction Program
SOLID WASTE MANAGEMENT Segregation Reuse Composting
Increasing population, with simultaneous depletion of quality
water are driving a focus to preserve this essential resource
of life Water: a precariously diminishing resource
Sensor operated faucets Water in Manufacturing •Water
Conservation Program Water Conservation Task Forces and SGA
teams Water gun on all hoses at production area Water
recycling at vacuum pump cooling system Re-used water for CIP
Boiler blowdown and effluent used for watering plants
Rural Development in Nigeria Since the 1960's, Nestlé has
adopted an agronomy programme aimed at increasing the income
of coffee farmers. By improving the methods in coffee growing,
farmers can get better and higher quality yields, and help
increase coffee supply in the country.
OTHER CORPORATE SOCIAL RESPONSIBILITY
The company has been very active in corporate socialresponsibility practice and puts premium on programs onagriculture, education and manpower development, communitydevelopment, health and nutrition, and environmentalprotection and preservation.
HOW THEIR VALUES AND VISION HAS AFFECTS THEIR CSR
The values and vision of this industry has affected their CSRbased on its operations and activities. The products andbrands focus on innovation so that they can meet and exceedtheir customer’s expectation. To this, they improve on theirproducts and brands continuously to get meet variouslyexpectation of their target market which might be in terms ofhealth, education, fun and enjoyment. They have indeed
becoming the leading and competitive company based on the factthat most company strives to meet their standards. their CSRto their staffs based on their values can be seen in the sensethat there a continuous attention given to developing theprofessional and leadership skills of staffs at all levels sothat they can directly contribute to the growth of the Companyand a higher level of performance from the staffs. To theirenvironment, they integrate environmental policies, programmesand practices into each business as an element of managementin all its functions.
The company strives always to minimize the impact of itsoperations on the environment through the utilization ofpackaging and manufacturing processes that are internationallyrecognized to have minimum impact on the environment. In linewith their principles, they take a proactive approach torespect and support the human rights principles withinbusiness operations. In 2011, they rolled out an online humanrights training tools for all their employees. The web-basedtool helps their staff to better understand the relevance ofhuman rights principle to business operations, providingexercises, case studies and links to facilitate learning. Inaddition to the effect of their values on their CSRactivities, they are able to reach out to their government bypaying their taxes as a Company and also as employees. Thismeans everyone is entitled to pay their taxes to thegovernment and also the company itself has a tax to pay to thegovernment. Therefore the values implemented by this companyhave enabled them to meet up to the expectations required ofthem to be socially responsible to their stakeholders in oneway or the other. With their values, they are able to makeobjectives to go in line with the values and with this theybegin to search for every open and necessary help that theycan render to the stakeholders around them and the onesoutside. The values of this company go a long way to determinetheir success and their failures in both CSR activities and asa company.
THEORETICAL REFERENCE
Triple Bottom Theory
The phrase “Triple Bottom Line” was coined by UK
environmentalist, John Elkington, The Triple Bottom Line of 21st Century
Business.1Also commonly referred to as “People, Planet, Profit” and
“3BL”, the objective of Triple Bottom Line reporting is for
companies to report on their financial bottom line as well as
their corporate social responsibility and the impact they have on
the environment.
By reporting on financial, social and environmental performance a
company becomes more transparent to its public and the corporate
culture and values become more evident to both shareholders and
stakeholders. This new line of thinking is thought to have emerged
as a result of the general worldview that capitalism is fed by self-
interest which can lead to unethical behaviour.
Pz cusson wholly Imbibe this theory, apart from operating in such a
way that their there is high return for investors, the company also
takes extra effort to carry out environmental friendly activities.
They take extra measure to ensure that they run their business in
such a way that adverse impact of the environment in minimized.
Under the environment they constantly work to reduce their emission
of Carbon, use of water, waste and packaging and Palm oil. This
according to them helps maximize the use of scarce resource in the
environment and also increase earth sustainability.
Nestle is also not left out in the practicalization of this
theory. The company is one of the highest in their category in
the stock market which implies that the investors have a
return on their investment. On the part of the environment
Nestle Nigeria Plc, always goes a step further in ensuring
that they maintain global best practise in its waste disposal
and emissions. They also carry out projects to encourage
biodiversity and environmental optimization.
Stake Holders theory
Stakeholder theory propounded by Edward Freeman states thatfor any business to be successful, it has to create value forits stakeholders: customers, suppliers, employees,communities, financiers. The theory also adds thatorganisations should take into consideration the interests ofall its stakeholders and hold none in isolation.
This theory basically, advocates that companies should put the
interest of their stakeholders first in carry out their day to
day practise. The needs of the stakeholders like shareholders,
government etc. must be factored in to company decisions.
The theatrical principal adhered to by the two P and Nestle,
both of them engage the interests of their shareholders
through annual general meetings. They also factor in
government interest by paying their taxes. In fact both of
them has a laid down procedure for dealing with of their
stakeholders.
COMPARISON BETWEEN NESTLE AND PZ CSR ACTIVITIES
o Terminology
A disparity exists between the Name that Pz call their
Coporate social reposnbility and Nestles. Why Pz just refers
to their own as CSR Nestle refer to theirs as “Creating
Shared Values”.
This has also affect the way they carry out their CSR
project, while pz takes csr as a means for advertising and
making the company known, nestle sees it as sharing a
collective value with other people, in order words they
don’t see CSR as a tool for social responsibility, in fact
the take deliberate step to ensure that their products are
away from the CSR project. They believe that the function of
selling the product is the duty of the marketing department
and not CSR.
o Focus
Another area of difference between the csr activates of
nestle and pz is the area of focus. While Nestles focus
greatly in agriculture, pz invest more of their time in
the education sector. This is not the say that the
companies doe not do CSR in other sectors of the economy
but a greater percentage of their CSR is attribute to
projects in this sector.
o Execution
Before a CSR activity can be carried out by Pz, it has to
be recommend to them hy the “pz foundation” this
foundation research’s, formulates proposal and handle the
execution of specific public relations activity that the
organisation wants to embark upon. However this is not
same in Nestle, rather the management executes the csr
contract as stipulated.
o Research
Both companies underscored the importance of research
before every CSR activities in carried out. This shows
that the entire project done by them is not a matter of
chance.
o Care for environment
Both companies are greatly concerned about how their
operation affects the planet, so they take conscious
efforts to check mate adverse effect of their operation
on nature.
CONCLUSION
Having studied the corporates social responsibility of
both companies we can give these two companies a pass
mark their CSR implementation and focus. They have taken
out time to detail the CSR activities and every day they
research to find out areas that they want to impact the
society. For example Nestle Corn revolution is helping
the Nigerian Agro- environment greatly.
However as part of our recommendation we would advise PZ
to see CSR as more than a publicity avenue.