Brewing Shared Value: How Nestle is Changing the Game with Coffee Beans
As one of the most traded commodities worldwide, coffee is a crucial export crop for many nations. Nestle’s most renowned brands, including Nescafé and Nespresso, rely on the beans sourced from farmers across the globe, to continually bring coffee to millions of consumers on a daily basis.
In recent years, the company has adopted a shared value approach to their business strategy, as proposed by Professor Michael Porter. Shared value involves creating economic value while also addressing societal and environmental needs.
Nestle has implemented shared value in various ways, such as by improving the livelihoods of farmers who supply Nestle with coffee beans. They do this by providing training and resources to help farmers increase their yields and incomes, which in turn improves the quality of the coffee beans.
In addition, Nestle has also addressed environmental concerns by implementing sustainable farming practices, reducing water usage, and minimising waste in their supply chain. This not only benefits the environment but also creates economic benefits for the company by reducing costs and increasing efficiency.
By adopting a shared value approach, Nestle is not only meeting their business goals but also contributing to the United Nations Sustainable Development Goals (SDGs). SDGs are a set of 17 goals that aim to eradicate poverty, protect the planet, and promote prosperity for all.
Through shared value, Nestle is directly addressing SDGs such as no poverty, decent work and economic growth, and responsible consumption and production. This approach helps to create a sustainable future and contributes to the overall well-being of society.
In conclusion, Nestle’s adoption of shared value is a great example of how businesses can create economic value while also addressing societal and environmental needs. By addressing the SDGs, Nestle is not only improving their brand reputation but also contributing to a sustainable future for all.
References:
- Nestle. (2021). Creating Shared Value. Retrieved from https://www.nestle.com/csv
- Nestle. (2021). Our Commitment: Coffee. Retrieved from https://www.nestle.com/csv/impact/coffee
- Porter, M., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 89(1/2), 62-77.
- United Nations Development Programme. (n.d.). Sustainable Development Goals. Retrieved from https://www.undp.org/sustainable-development-goals
- United Nations Global Compact. (n.d.). Sustainable Development Goals. Retrieved from https://www.unglobalcompact.org/what-is-gc/sdgs
- Wille, A. (2021). Nestle offers farmers price incentives for greener coffee production. Reuters. Retrieved from https://www.reuters.com/business/sustainable-business/nestle-offers-farmers-price-incentives-greener-coffee-production-2021-07-15/
78% of the world’s 250 largest companies report in accordance with the GRI Standards
SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.
Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.
7 GRI sustainability disclosures get you started
Any size business can start taking sustainability action
GRI, ISEP, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom (venue: London School of Economics)
- Exclusive FBRH template to begin reporting from day one
- Identify your most important impacts on the Environment, Economy and People
- Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP.
- Benchmarking methodology to set you on a path of continuous improvement