Shared value creation and the role of corporate foundation in an Indian company

Submitted by: Group 5, Section A

One of the primary activity used by companies for engaging in social initiatives is Shared value
creation. Creating shared value is basically integrating social needs and challenges into
economic value creation itself. Shared value is a business model which also address a social
issue retaining its economic value creation aspects. Porter and Kramer emphasised the
“symbiotic relationship between social progress and competitive advancement”. This
relationship “implies that both business decisions and social policies must follow the principle
of shared value”, and creating win–win options For example, GE is placing the focus on “in
country, for country” innovation, recognizing the importance of understanding the health needs
of the local environment in order to innovate inside a market, for that market.
Company under consideration is Nestle, Nestlé’s corporate business strategy is creating value
for its shareholders while at the same time creating value for society, particularly for the
communities in which the company operates.
Nestlé has focused its Creating Shared Value efforts and investments on three areas nutrition,
water and rural development which are core to its business activities. CSV is built on strong
commitments to environmental sustainability and compliance with laws, codes of conduct and
the Nestlé Business Principles.
We’ll be covering the creation of shared value by Nestlé at each stage of the value chain from
agriculture and rural development, through to delivering products to customers and disposing
of waste. Analysis of the CSV reports published annually which document how the company
acts to produce value for its business while directly benefiting consumers, employees and
suppliers, their families and their communities.
From various Nestlé’s CSV initiatives, we are analyzing how Nestlé has impacted on the
village of Moga since the company built its first Indian factory there in 1961. Moga is an
example of Nestlé’s milk district model inspired by its success in Switzerland in 1870s.
We’ll be covering how Nestlé has successfully established relationships with the community
in Moga, which in turn, have led to the development of milk production in the region, generated
employment and improved access to drinking water and sanitation.