Corporate Social Responsibility: An Analysis Of Nestle

Introduction

Corporate Social Responsibility (CSR) can be defined as, “the broad array of strategies and operating practices that a company develops in its efforts to deal with and create relationships with its numerous stakeholders and the natural environment” (Waddock as cited by Lindgreen and Swaen, 2013). It has gained popularity in the space of Human Resource Management. CIPD (2010) argues that, “HR plays a role in ethical employment practices which is the core of CSR, and beyond that, it is the best department to impart organizational culture and values which directly influence CSR” (Ballinger, Gilfford and Miller, 2013). Hence, it might be debated whether CSR should be a requirement or voluntary cause for businenesses, but the purpose

To understand the drivers for these causes, we need to explore the shareholder and stakeholder view of the firm. The shareholder view asserts that business exist only to make profit for its investors, while the stakeholder view states that businesses should balance its relationships with all the groups they deal with to maximize benefits of all the groups (Shar & Bhaskar, 2007, pg 67). The paper will explore the drivers for CSR looking through the lenses of the shareholder and stakeholder view. Thereafter, it will evaluate the CSR strategy Nestle uses to implement societal activities, lastly it will then examine the drivers for CSR within the multinational food & beverage company

There are also financial benefits linked to CSR. Firms which act in the best interest of the public will eventually gain a good public image and more and more customers will eventually buy their products and increase sales volume in the long term. Some scholars like Ksiezak state that a company with a bad image due to unethical practices stands the risk of seeing its products facing boycott from customers and subsequently experiencing a drop in sales (Ksiezak, 2016, pg 56). Companies can also benefit from within the company as a result of implementing CSR as Mullerat notes that, “A company that boasts of responsible behavior attracts new talent and retains good workers” (Mullerat as quoted by Ksiezak, 2016, pg 56). Moreover, a good reputation for a company can also attract investors who are keen on investing in ethical and reputable businesses. Matteo Tonello demonstrated how in the ten years preceding 2011, there was empirical evidence in the growth of socially responsible investments, a category of investment where put their funds in companies that have a strong record of CSR activities (Tonelli, 2011). Overall, CSR activities should not be just social obligations for business, as a positive correlation evidently exists between the potential of better financial performance and engaging in more CSR