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.

A TABULAR REPRESENTATION OF TH

EIR PAST CSR ACTIVITIES

 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.