HRM Report on Nestl

History
The key factor which drove the early history of the enterprise that would
become The Nestl Company was Henri Nestl's search for a healthy,
economical alternative to breastfeeding for mothers who could not feed their
infants at the breast.
In the mid-1860s Nestl, 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 Lacte Henri Nestl.
Nestl'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 Nestl's new formula saved the
child's life and within a few years, Farine Lacte Nestl was being marketed in much of
Europe.
Henri Nestl also showed early understanding of the power of branding. He had adopted his
own coat of arms as a trademark; in Swiss German, Nestl 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 noone 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 Nestl Company, which had been purchased from Henri Nestl 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.
Nestl is today the worlds 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 Nestl or emerging from a strong educational and
industrial context, strongly influences the companys 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 Nestl operates. Nestls 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
Nestl 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.
Nestl is committed to the following Business Principles in all countries, taking into account
local legislation, cultural and religious practices:
* Nestl'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.
* Nestl does not favor short-term profit at the expense of successful long-term business
development.
* Nestl 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.
* Nestl 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.
* Nestl 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.
* Nestl continues to maintain its commitment to follow and respect all applicable local laws
in each of its markets.
Mission Statement
At Nestl, 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, Nestl products bring
consumers the vital ingredients of taste and pleasure.
Vision statement
Nestl 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 companys 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 Nestl 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 worldstandard 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:
Nestl is the worlds 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 Nestl 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 Nestl Difference

At Nestl 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, Nestl 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 Nestl 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 Nestl 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 Nestl 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 Nestl 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
Nestl is committed to being a leader in workplace safety and health.
The Nestl 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 Nestl
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 Nestl decreased to almost one
quarter of that seen in 2001.
Major focus on preventing accidents:
Over the years, Nestl 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 Nestl has created a 'Nestl Safety at
Work Award' 2008. Nestl 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 Nestl 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 Nestl Market Conference.
Nestl Policy on Health and Safety at Work:
Nestl regards its people as its most valuable asset and places the highest priority on
protecting them. The Nestl Policy on Health and Safety at Work is based on the Nestl
Corporate Business Principles, which are binding for the whole Nestl Group.
Prevention of work-related injury and illness
Nestl 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 Nestl.
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.
Nestl and third parties
Nestl 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 Nestl 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. Nestl enforces this policy on third parties operating on our sites and
encourages our suppliers and contractors to apply similar standards of Nestl sites.
Management leadership and employee involvement
Nestl recognizes the critical role of our people to ensure a safe and healthy work
environment. As an integral part of managing the business, all Nestl 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 Nestl 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
Nestl implements this policy through the Nestl 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 Nestl Operational Safety, Health and Risk Management System, supports the Nestl
Operational Safety, Health and Risk Management Strategy by guiding managers on the
most effective implementation approach.
Key Figures:

Tracking workplace injuries: Five-year Evolution:

Nestl 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 Nestl 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 Nestl 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 Nestl 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 Nestl Pakistan.
Personality:
To succeed at Nestl 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 Nestl?
A Nestl 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 Nestl their own
business, and who show an entrepreneurial spirit.
If you think you fit the Nestl 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 theyll as how you likely fit Nestl's
culture and values.

Internships applicants:
You will be interviewed by HR as theyll as a line manager. These interviews will generally
focus on your background and motivation as theyll as how you likely fit Nestl'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 Nestl 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 everybodys
business at Nestl, irrespective of the area in which employees work.
Nestls expert nutrition knowledge is long-established, centered on the activities of Nestl
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 Nestl
employees through the NQ program will help make nutrition and wellness tangible to
consumers, ensuring that Nestl 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 Nestl scientists and
health marketing specialists. Implementation began in 2007, with Nestl 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 Nestl

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 Nestl 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 Nestl 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 Nestl 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 Nestl Human Resource Policy
This policy encompasses those guidelines which constitute a sound basis for efficient and
effective HR Management in the Nestl 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 Nestl 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 Nestl Management and Leadership Principles include the guidelines inspiring all the
Nestl employees in their action and in their dealings with others. The Corporate Business
Principles refer to all the basic principles which Nestl 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 organizations
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 Nestl 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 Nestl policy is
to hire staff with personal attitudes and professional skills enabling them to develop a longterm relationship with the Company.
Therefore the potential for professional development is an essential standard for
recruitment.
Each new member joining Nestl 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 Nestl values, special attention will be
Paid to the matching bettheyen a candidates 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. Nestl 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--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 Nestl 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
candidates 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 companys 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 Companys commitment to fully endorse and
to respect a series of principles and international conventions concerning employees 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 Nestl 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. Nestl 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 Nestl, no such discrimination will be tolerated
towards Nestls 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. Nestl 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. Nestl favors a policy of long-term
employment. Whenever, an operation activity cannot be maintained within the Nestl
sphere, reasonable steps will be undertaken to avoid overall loss of employment by
identifying an external Business willing to take over activity from Nestl, 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 Nestl 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 Nestl 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 Federations 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 Nestl 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). Nestl 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 Nestl they believe that the employees private and professional life should have a good
balance.
Not only because it reinforces employees satisfaction, loyalty and enhances
Productivity but also because it positively reflects on the Companys reputation. It helps
attracting and retaining people and reconciles economical imperatives with theyll being.
Nestl 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, Nestl 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 Nestl.
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 theyll 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 theyll as on other relevant aspects concerning a staff members 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 employees 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 Nestl 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 Companys 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:
Nestl upholds the freedom of association of its employees and the effective recognition of
the right to collective bargaining. Nestl 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.
Nestl will ensure that direct and frequent communication is established with its employees,
both union members and non-members, as mentioned in the Nestl Management and
Leadership Principles. Relations with unions will be established under strict observation of
national law, local practices as theyll as those international recommendations to which
Nestl 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 Nestl. In accordance with local
legislation, Nestl will refrain from any action restricting the employees right to be or not to
be affiliated to a union. Nestl will not engage with any union or other representative
association in activities or discussions other than those relating to employment and working
conditions as theyll 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 Companys and the employees legitimate interest. In dealings with unions,
it will be ensured that management prerogatives be properly maintained.
The fact that Nestl is more people and product than systems oriented is reflected in the way
HR is functioning and is organized. Processes and systems as theyll 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 KPIs 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 organizations overall reputation and
effectiveness.

The Nestl 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.
Nestl 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?

Nestl 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 Nestl 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?

Nestl has been an international company since its very beginning. Food is intrinsically
linked with local eating and social habits, and Nestl 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, Nestl 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 Nestl in its leadership position. Nestl 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:
Nestl is committed to the following Business Principles in all countries, taking
into account local legislation, cultural and religious practices:
Nestl's business objective, and that of management and employees at all levels, is to
manufacture and market the Companys 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 Nestl operates;
Nestl 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;
Nestl 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;
Nestl 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;
Nestl 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;
Nestl 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. Nestl 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
Nestl Corporate Business Principles:
Nestl is committed to the following Business Principles in all countries, taking into account
local legislation, cultural and religious practices:

 Nestls business objective, and that of management and employees at all levels is to
manufacture and market the Companys 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 Nestl operates.
Nestl 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; Nestl 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.
Nestl 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; Nestl 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; Nestl 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. Nestl 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:
Nestl emphasizes that, as a minimum, its employees must comply with the laws applicable
in the countries in which it operates. Nestl ensures that the highest standards of
responsible conduct are met throughout the organization, by complying in a responsible
way with theNestl Corporate
Business Principles:
That guide Company activities and relationships worldwide in each sector of business
interest.
Nestl 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.
Nestl 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,
Nestl has incorporated relevant International Labor Organization Conventions. Nestl
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, Nestl uses the
revised Organization for Economic Co-operation and Development (OECD) Guidelines for

Multinational Enterprises, for its Corporate Business Principles.

Consumers:
Nestl 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 Nestl Seal of
Guarantee is its basic promise to the consumer. Nestl 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, Nestl 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, Nestl complies
with applicable data protection regulations and applies Nestl standards where specific
legislation is not yet in place.
Children as Consumers
Nestl 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:
Nestl fully supports the United Nations Global Compacts two guiding principles on human
rights. Nestl 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)
Nestl 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. Nestl also recognizes that
governments are ultimately responsible for the establishment of a legal framework for
protecting human rights within their markets. Nestl 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. Nestl
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, Nestl:
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:
Nestl 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. Nestl 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);
Nestl also supports OECD efforts to have non-member nations adhere to the OECD
recommendations for fighting against corruption.

RELATIONSHIPS
Relationship with Suppliers
Nestl aims to deal only with reputable suppliers who are willing to apply Nestl 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 Nestl strengthens and progresses, it may evolve into one of
preferred supplier status. Key suppliers with which Nestl has a contractual relationship are
audited in order to ensure that they comply with the Nestl Corporate Business
Principles or that they are working actively to achieve compliance. Whenever instances of
non-compliance are brought to the Companys attention, Nestl will demand that corrective
measures be initiated. Nestl 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:
Nestl 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:
Nestl sets its commercial policy independently and does not fix prices in agreement or
collusion with competitors;
Nestl does not allocate customers, territories or product markets in agreement or collusion
with competitors;
Nestl deals fairly with its customers and suppliers, in accordance with competition laws;
Nestl will look towards mergers and acquisitions as a means to improve its effectiveness,
not to restrict competition;
Nestls trade payments are based on customer efficiencies and services provided.
External Relations
Authorities: Nestl 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: Nestls business relations are based on the
principles of mutual trust, fairness and professionalism in the context of a free-market
economy. Academic/Professional Relations: Nestl 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 Groups products,
policies and services.
Financial: Nestl 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, Nestl contributes in many countries to the
well-being of local communities in other ways. The personal involvement of Nestl 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: Nestl 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. Nestl 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-tobusiness relations and also the Companys interaction with consumers. In this respect
Nestl 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. Nestl 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 Nestl has been committed to environmentally sound business practices
throughout the world and continues to make substantial environmental investments. In this
way Nestl contributes to sustainable development by meeting the needs of the present

without compromising the ability of future generations to meet their own needs. The Nestl
Policy on the Environment underlines this commitment. Nestl 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.
Nestl fully supports the United Nations Global Compacts three guiding principles on
environment.
Nestl 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)
Nestl:
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 Nestl 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 theyll as efforts to set up environmental management
guidelines;
establishes environmental objectives, monitors progress, checks results and defines future
actions. This activity, carried out by Nestl 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 Nestl manufactured
food products and, as a consequence, the Companys 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 Nestl 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, Nestl engages in constructive dialogue
with government institutions (primarily through professional organizations), and cooperates with local authorities.
In this context Nestl:
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 todays 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:
Nestl has a long tradition of helping the farmers who provide our raw material.
Nestl 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 Nestls 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, Nestl 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
Nestl 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 Nestl 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 Nestl 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 theyll as constantly developing or improving existing products for health,
nutrition and wellness.

Responsibility to environment:
In line with Nestl's global commitment, Nestl 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 theyll 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, Nestl Pakistan responded immediately,
putting its infrastructure and resources to work in the affected areas.
First response:
When the earthquake struck, Nestl 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 Nestl 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 Nestl employees and distributors, they went out and
distributed Nestl 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 Nestl 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 Nestl markets. This amount will be used to
adopt and reconstruct a model village in Azad Kashmir.
v They are thankful that no Nestl 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, Nestl SA has donated an additional Rs 16 million for reconstruction
and rehabilitation work.
Pitching in:
Nestl employees worked tirelessly to bring aid to earthquake victims. They are
immeasurably proud of our people for their contributions: Nestl employees donated Rs 3.3
million from their own salaries. Nestl employees in other countries also stepped forward
and donated to the Nestl 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, Nestl 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.