A Report on Corporate Social Responsibility of Nestle Group ,Bangladesh. PDF

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BANGLADESH UNIVERSITY of BUSINESS AND TECHNOLOGY A REPORT ON CORPORATE SOCIAL RESPONSIBILITY of NESTLE BANGLADESH Ltd. 1 A Report On CORPORATE SOCIAL RESPONSIBILITY of NESTLE GROUP Submitted to: Ms. Afsana Saleh Lecturer Department of Marketing Bangladesh University of Business and Technology Submit...

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BANGLADESH UNIVERSITY of BUSINESS AND TECHNOLOGY

A REPORT ON

CORPORATE SOCIAL RESPONSIBILITY of NESTLE BANGLADESH Ltd.

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A Report On

CORPORATE SOCIAL RESPONSIBILITY of NESTLE GROUP

Submitted to:

Ms. Afsana Saleh

Lecturer Department of Marketing Bangladesh University of Business and Technology

Submitted by: Silent War

Sec: 4, Intake: 34th, Program: BBA

Submission Date: 04 September, 2014 2

Group Name: Silent War

Group members’ profile: Name

ID No.

Foez Ahammed Shad

13143101180

Zakia Rashid Rita

13143101364

Samiun Haque

13143101142

Jannatul Ferdous Orin

13143101159

Md. Ashiq Mia

13143101174

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Letter of Transmittal May 14, 2014 Afsana Saleh

Lecturer Department of Marketing Bangladesh University of Business and Technology

Subject: Submission of Report. Dear Madam, We are submitting herewith our report on “Corporate Social Responsibility of Nestle Group”. We have applied our sincere effort for successful completion of the interesting and learning report. From this report we have achieved a lot of basic knowledge about CSR and we think ourselves this will help us to sincere in our future life. Therefore, we believe that our report will meet your approval. We would genuinely spire any corrections and guideline as you feels necessary. Your kind advice will lead us further ahead to the best. Respectfully yours, Silent War --------------------------Department of BBA Summer 2014 Section-4 ,Intake-34th Bangladesh University of Business and Technology

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ACKNOWLEDGEMENT

The special thank goes to our helpful course instructor, Afsana Saleh. The supervision and support that she gave truly helps the progression and smoothness of the Group report. The co-operation is much indeed appreciated.

Successful completion of any type of report requires help from a number of persons and as we are still a student, we have also taken help from different people during the preparation of the report. Now, here is a petite effort to show our deep gratitude to those helpful persons.

The description of study is CSR (Corporate Social Responsibility) of NESTLE GROUP in Bangladesh. The study is considered as one of the most important facts to learn, make and exquisite of street food.

We thank whole-heartedly our respected teacher and report instructor Afsana Saleh, Department of Marketing, BUBT for giving us this type of interesting & knowledgeable topic.

Our warmth gratitude goes to many people whose affable cooperation and advice helped us a lot bringing our endeavor into realization. Finally we thank our friends who have helped us directly or indirectly during the preparation of the report.

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Table of Contents

Topic Name

Page No.

Title Fly

01

Title Page

02

Group Profile

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Letter of Transmittal

04

Acknowledgement

05

Table of Contents

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Executive Summary

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Introduction  Statement of the Research problem  Objective of theStudy  Limitation of the Study Discussion  Defination of CSR  Areas of CSR  Company Profile  Nestle Products  Nestle;s CSR Findings and Analysis

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Recommendations and conclusions

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Reference

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09-15

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Executive Summary: Nestle is the world’s largest food company, not only in terms of its sales but also in terms of its product range and its geographical presence. Nestle Bangladesh has taken corporate social responsibility as major areas of its business principles in addition to producing and marketing a wide range of products. This report is focusing on the analysis of Corporate Social Responsibilities of Nestle. Corporate social responsibility is the awareness that business activities have an impact on society and the consideration of that impact by firms in decision making. Besides emphasizing profits, firms concerned with social responsibility voluntarily engaged in activities that benefit society. Nestlé’s main focus of CSR is in three areas- Water, Nutrition and Rural Development- as those three issues are linked with their products. Nestle also have many programs like as creating awareness for drinking pure water, nutrition awareness programs for mothers, free health treatment, reduction of water consumption, Waste Water Treatment Plant (WWTP) etc. We tried our best to find out what kind of social responsibility is performed by them. We also learn various things. We collect data and some valuable information by internet from Nestle Bangladesh Ltd. Official web-site, friend and annual report. We create this report by Microsoft office 2003. Finally, we thanked those people who are helping through valuable information. Also special thanks our honorable Teacher Afshana Saleh for her guideline.

1. INTRODUCTION: In today’s world, CSR and ethics are becoming an essential part of success of any company especially if it was a multinational one, like Nestle. So how is Nestle dealing with CSR and its responsibility toward the society and environment? Thus, through our work we will explore in details Nestlé’s Corporate Social Responsibility in Bangladesh.

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1.1. Statement of the Research Problem: The research problem statement frames our entire study. preparing a research problem statement is often the hardest part of writing a research proposal of thesis. A research problem statement lays the foundation for works that needs to be done to correct a situations, in the case of international aid organizations, or presents a statement of research intent for a master’s or doctoral thesis. as well as background information, a research problem statement outlines the current situation, identifies the challenges, specifies the location and indicates the people involved.

1.2. Objective of the Study: We have prepared this report based on two purposes. That are1. To develop our knowledge in Corporate Social Responsibility. 2. And provide more valuable step to the company for better CSR.

1.3. Limitations of the Study We are lucky enough to get a chance to prepare a report on “Corporate Social Responsibility of NESTLE”. We tried heart & soul to prepare a well-informed report. But unfortunately we faced some difficulties when preparing this report. We tried to overcome the difficulties. In spite of trying our level best, some difficulties that hamper our schedule report work: 1.3.1. Shortage of time: Within a short time, we need to prepare some other courses’ reports for in this session. For this reason, we could not get a fluent time schedule for the report. 1.3.2. Limitation of related with the organization: The employees of Nestle Bangladesh Limited were too busy of their work. For this, they did not sufficient time to fulfill our queries and some of them neglected us to support.

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1.3.3. Difficulty in collecting data: Many employers of the organization were not well known about all information that we asked them. Many of them also hesitated to answer the questions. These things hampered the information collection.

2. Discussion

2.1. Definition of Corporate Social Responsibility Corporate Social Responsibility briefly CSR means responsibility of corporate or company has to the society. Corporate social responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance, is a form of corporate self-regulation integrated into business model. Ideally, CSR policy would function as a built-in, self regulating mechanism hereby business would monitor and ensure their adherence to law, ethical standards, and international norms. Business firms conduct activities to produce goods and services to generate profits. Business, however, as a part of the larger society has a responsibility towards it.

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2.2. Areas of social responsibility There are four basic areas of social responsibility. These are shown in the following diagram.

Consumers

Employess

Social Responsibility

Environment

Investors

2.3. Company profile: Nestlé Bangladesh Limited started its first commercial production in Bangladesh in 1994. March 12, 1995 it incorporated as a public limited company and the bank received its license from Bangladesh on March 23, 1995. Nestlé Bangladesh's factory is situated at Sripur, 55 km north of Dhaka; the factory produces instant noodles, cereals and repacks milks, soups, beverages and infant nutrition products. Registered address detail: Gulsan Tower (4th Floor), Plot no.31, Road No, 53, 10

Gulsan North C/A, Dhaka- 1212, Bangladesh. Nestlé currently employs 600 people directly in the company and another 1000 people indirectly in the industry.11% female. Its total authorized capital is TK1.5 billion and total paid up capital is TK 1.1 billion. Nestlé does not publish financial report to the public.

Name of

NESTLÉ IN BANGLADESH Ltd.

organization: Location:

Gulsan Tower (4th Floor), Plot no.31, Road No, 53, Gulsan North C/A, Dhaka- 1212, Bangladesh.

Contact No:

Nil

Foundation:

March 12, 1995

Business Type:

Multinational Company

Factory:

Sripur, 55 km north of Dhaka

Sales season:

All Season

Investments (approximately):

TK 1.5 billion

Profit-yearly (approximately): Loss-yearly (approximately): Product type:

Food

Business range:

World wide

Competitors:

Yes, but neutral

Problems:

Political problem

Future plan:

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2.4. NESTLE PRODUCTS: List of Market Offerings (List of Product & Services of the organization with Sizes and Prices) Nestle produces a wide variety of food products. A list of products is attached to this report as appendix 2. The major products are described below: 1. Baby foods 2. Sports Nutrition 3. Chocolates 4. Waters 5. Beverages 6. Coffee 7. Frozen meals 8. Ice cream and frozen treats 9. Imported foods 10. Healthcare Nutrition 11. Pet foods

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2.5. Nestlé’s CSR Principles: Nestle Bangladesh has taken corporate Social Responsibility (CSR) as major areas of its business principles in addition to producing and marketing a wide range of food products. The company not only believes that in manufacturing and marketing products, makes profits, paying taxes and complying with state laws but also believes that a good company has something more to do for the society- even more than CSR which has become a buzz word during the recent years in the corporate world. Nestlé’s main CSR’s are describing broadly:

2.5.1. Creating Share Value: For nestle the terminology is CSV (creating shared value)—Nestlé’s own style of CSR to create value for share holders and society simultaneously, in a manner that is integrally linked to their core business strategies and operations. The philosophy of creating shared value envisions them to have long term business success. For a company to be successful in the long term and create value for its shareholders, it must also create value for society. Creating Shared Value (CSV) encourages businesses to create economic and social value simultaneously by focusing on the social issues that they are uniquely capable of addressing. CSV builds on a strong base of performance in environmental sustainability and compliance, as illustrated in the CSV Pyramid above. In addition, we recognize the vital role of our people and the importance of engaging and collaborating with other organizations’.

2.5.2. Safe Drinking Water: In our country like Bangladesh, Nestle is arranging the safe drinking water, where the sources of the pure drinking water are rare. Their all CSR activities are concentrated in the district of Gazipur because of their factory location in the district. Nestle Bangladesh limited directly supervises the implementation part of all CSV projects. They have constructed a total of 28 water tanks in ensure safe drinking water in schools of date. Some 35309 school students are directly benefited from 13

those water tanks. Their main desired goal is to supply the clean drinking water among the students of the schools and in addition nearby local folks are also drinking the clean water. The students are directly benefited in drinking water and free from water borne diseases. a total of 1540 students were given water education training so that they can learn wise use of water besides having access to safe water.

NESTLE WATER TANK FOR SCHOOL CHILDREN SRIPUR

2.5.3. Waste Water Treatment Plant (WWTP): They have a plan to implement ‘Zero Waste Discharge’. In this plan they have a Waste Water Treatment Plant (WWTP) where factory waste water is treated at least ( 60%) reuse in factory where only 40% treated water is discharge in outside. Nestle is using treated waste water in factory incinerator to capture carbon particle from black smoke of incinerator. After capturing, water color become black and this water is pressed through a Fat Trap and Per Treatment process in which chemicals are dosing for sedimentation/ separation of carbon particles. After sedimentation, colorless water is pumped to WWTP and treated water is again reuse in incinerator.

2.5.4. Reduction of Water and Energy Consumption: They also have a plan of reduction of Water and Energy consumption. Their achievement in the reduction of water consumption was 7.57 cubic meter for per ton

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of production in 2010 which was 21.92% less than 2009. In 2011, till September, water consumption per ton of production was 6.41 cubic meter where their target was 7.34 cubic meter. Every year their corporate target for water and energy savings is 5% & 3% of reduction from previous year consumption and for this they implement various plans to achieve it. Their achievement in energy consumption reduction was 10.16 Giga Joule for per ton of production in 2010 which was 8.07% less than of 2009. And the consumption for per ton of production was 9.19 Giga Joule in 2011 till September where their target is 10.00 Giga Joule.

2.5.5. Other CSR: They have contracted a total 15 girls toilet for the benefit of 8380 girls students as they had been observing many female students leave school in absence of separate toilets. It lessened the drop outs of female students at a considerable level in the Gazipur districts. The NESTLE distributed a total of 84 computers among the schools. Thousands of students have been benefited directly and indirectly from the computers. Around 3000 girl’s students trained on nutrition basics since 2010. Nestle has agreement with institute of nutrition and food science of Dhaka University. . The Nestle funds for 100 cataract surgery done in the floating hospital of “Jibon Tori”, a sophisticated floating hospital of impact foundation Bangladesh, a leading NGO work for the underprivileged people.

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Water education at Roverpalli High School

Nutrition awareness training

3. Findings and Analysis: After discussing this report we find some CSR of Nestle Bangladesh. Nestles CSR: 1. Creating Share Value 2. Safe drinking water 3. Water education program 4. Waste water treatment plant (WWTP) 5. Nutrition awareness training 16

6. Reduction of Water and Energy Consumption 7. Free Health Treatment 8. Rural Development We analyze that, this company not only believes in manufacturing and marketing products and makes profit. Nestle Bangladesh Limited directly supervises the implementation part of all social responsibility. Although there is no law that mandates CSR in Bangladesh. But they are very much aware of their social responsibility.

4. Recommendations and Conclusion:

To conclude, we saw that Nestle are trying hard to enhance their image with the creating shared value program, but that is not hiding or changing the fact that they are harming the society in many ways such as the baby milk formula, which is leading to the death of many babies around the world and threaten the future generations since Nestle has a dominant market share in different product lines in FMCG. Therefore, while looking somehow ethical, the real fact is that only Nestlé’s shareholders are the only stakeholders benefiting from the company’s strategy and work. But they are taking some social responsibilities such as Safe Drinking Water, Waste Water Treatment Plan, Girl’s Nutrition Trainong etc. that’s why if they aim to succeed in the future, Nestle should start taking care and looking more for their other stakeholders, to mention babies, farmers, future generation and employees.

Reference 1. Internet search engine-WWW.Google.com

http://bangladeshcorporate.blogspot.com/2007/05/nestle-provides-drinking-waterin.html (11:00 PM) http://nestle.bdjobs.com/bd.htm (11:02 PM)

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