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Creating Shared Value

What is Creating Shared Value?
Creating Shared Value is the basic way we do business, which states that in order to create long-term value for shareholders, we have to create value for society. But we cannot be either environmentally sustainable or create shared value for shareholders and society if we fail to comply with our Business Principles.
This involves compliance with national laws and relevant conventions, as well as our own regulations, which often go beyond our legal obligations. For example, we support the Universal Declaration of Human Rights (UDHR), which stands at the basis of the UN Global Compact’s Human Rights Principles. Our strong support for the UN Global Compact, and our detailed commitments to the Fundamental Conventions of the International Labour Organisation (ILO) or other relevant instruments, are laid out in our Nestlé Corporate Business Principles and related policy documents, and their application is verified through our CARE programme and our internal Corporate Group Auditors. Beyond that, how we do business is based on sustainability - ensuring that our activities preserve the environment for future generations. In line with the Brundtland Commission's definition, sustainable development to Nestlé means "development that meets the needs of the present without compromising the ability of future generations to meet their own needs".

But Creating Shared Value goes one step further. A company consciously identifies areas of focus, where: a) shareholders’ interest and society’s strongly intersect, and b) where value creation can be optimised for both. As a result, the company invests resources, both in terms of talent and capital, in those areas where the potential for joint value creation is the greatest, and seeks collaborative action with relevant stakeholders in society. At Nestlé, we have analysed our value chain and determined that the areas of greatest potential for joint value optimisation with society are Nutrition, Water and Rural Development. These activities are core to our business and vital to the welfare of the people in the countries where we operate.
Nestlé Prize in Creating Shared Value
Starting in 2010, the Nestlé Prize in Creating Shared Value will be awarded every other year to encourage and reward an outstanding innovation or project in the areas of water, nutrition or rural development.
For more details visit the global web page for Nestlé Prize in Creating Shared Value.
Creating Shared Value Advisory Board
To increase our positive impact on society, the Nestlé Creating Shared Value Advisory Board met for the first time in April 2009. The Board members, all internationally recognised experts in corporate strategy, nutrition, water and rural development were appointed for three years to act as direct advisors to the Nestlé Chairman and CEO.
The board meets twice a year to advise the Nestlé Chairman and CEO on development of the CSV concept, the Nestlé value chain and the potential actions to be taken, as well as select the winner of the Nestlé Prize in Creating Shared Value.