Creating Shared Value at Nestl$$

Creating Shared Value is the fundamental way Nestl$$ does business across the entire value chain and the way we connect with society at large. It begins with the understanding that for our business to prosper over the long term, the communities we serve must also prosper.It entails businesses creating competitive advantage, which in turn will deliver better returns for shareholders, through actions that substantially address a social or environmental challenge. It is built on strong foundations of compliance and sustainable business practices to preserve the environment for future generations.

As a company, we are best positioned to create shared value in three areas: nutrition, water and rural development.

A key pillar in our Creating Shared Value strategy is nutrition because food and nutrition are the basis of health and of our business $$ it$$s the reason why we exist. Nestl$$s mission is to enhance the quality of life of our consumers by providing tastier and healthier food and beverage choices, and services that help people improve their nutrition, health and wellness.

Our focus on water and rural development is driven by their critical importance not only to our business but also to our employees, farmers, suppliers, distributors and communities where we operate.

We live up to our commitments to environmental, social and economic sustainability through business practices embedded at the core of our operations. These aim to deliver better financial results for our shareholders by improving working conditions for our suppliers, instilling environmental practices that both benefit the planet and cut costs, and enhancing products to meet the specific needs of our customers.

This involves substantial training and education of people inside and outside of Nestl$,$ as well as large investments in technology with lower environmental impact. We are also one of the founding members of the UN Global Compact Lead $$ an important platform for corporate sustainability leadership.

Creating Shared Value requires compliance with the highest standards of business practice, including international codes and standards as well as our own Code of BusinessConduct, Corporate Business Principles, and Management and Leadership Principles.

Questions $($each worth $25$ pts$.).$ Please answer in one$-$page only.

$1.$ Please list the areas in which Nestl$$ creates shared value. How does Nestl$$ create shared value in these areas? $(50$ pts$)$

$2.$ What could Nestl$$ do differently? $(25$ pts$.)$

$3.$ What does this case teach us about CSV$?(25$ pts$.)$