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, and our CEO Paul Bulcke signed the UN Global Compact CEO Statement for the 60th Anniversary of the UDHR.
Our detailed commitments to the UN Global Compact, the Fundamental Conventions of the International Labour Organization (ILO) or other relevant instruments, are laid out in our Nestlé Corporate Business Principles PDF 1159Kb and related policy documents, and their application is verified through our CARE program 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".
At the same time, Creating Shared Value goes beyond compliance and sustainability. Any business that thinks long-term and follows sound business principles creates value for shareholders and for society through its activities e.g. in terms of jobs for workers, taxes to support public services, and economic activity in general.
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) value creation can be optimized 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 analyzed our value chain and determined that the areas of greatest potential for joint value optimization with society are Nutrition, Water and Rural Development. These activities are core to our business strategy and vital to the welfare of the people in the countries where we operate.