Introduction:

Nestl Pakistan Ltd is a subsidiary of Nestl S.A, - a company of Swiss origin headquartered in
Vevey, Switzerland. It is a food processing company, registered on the Karachi and Lahore stock
exchanges and operating in Pakistan since 1988 under a joint venture with Milk Pak ltd and took
over management in 1992. Headquartered in Lahore, the Company operates four production
facilities. Two of its factories in Sheikhupura and Kabirwala are multi product factories. One
factory in Islamabad and one in Karachi produce bottled water. The factory in Kabirwala is the
largest milk intake plant in the Nestl world. Through its effective marketing and a vast sales and
distribution network throughout the country, it ensures that its products are made available to
consumers whenever, wherever and however. Nestl Pakistan operates in many ways but people,
products and brands are the main flag bearers of the Companys image.
Nestle emphasizes that it focuses on environment friendly operations, ethical business practices
and their responsibility towards the communities. The companys strategy is guided by Nestls
Corporate Business Principles which are in line with internationally accepted best practices and
ethical performance culture. Nestls existing products grow through innovation and renovation
while maintaining a balance in geographic activities and product lines. Long-term potential is
never sacrificed for short-term performance. The Companys priority is to bring the best and
most relevant products to people, wherever they are, whatever their needs are, and for all age
groups.

Ethical Issues of Nestle Pakistan:

As a nutrition, health, and wellness company, Nestl holds the responsibility to promote its
products in an encouraging balanced consumption, especially for children. Nestl states that all
of their products are always advertised responsibly by adhering to detailed policies and
principles, along with voluntarily signing up for industry pledges in more than fifty
countries. Nestl promises to continue to review and update its principles to ensure that all of
their products are advertised legally and in an honest manner. In the past, Nestl has experienced
a few ethical issues that have resulted in dishonest and unlawful scenarios.
In Pakistan, Nestle started its water plant due to which, the water level was decreased from the
nearby village. This resulted in a scarcity of water due to which the villagers had no choice but to
drink the dirty water, which lead to many people getting sick The blame was put on Nestl
because of the well that had been dug in their community that not only is very dirty, but very
scarce. The water is not only very dirty, but the water level sank from 100-300 to 400 feet,
Dilwan says from an article in Worldcrunch. The village requested for clean water to be piped in
and Nestl refused their request. Nestl gains its success from countries, such as Pakistan, that
have extremely bad drinking water. The problem that Nestl was facing was the fact that they
were telling people that their product, Pure Life Water, is the answer to their
problems. However, Nestl was selling the Pakistani people, their own ground water that they
have enhanced with minerals to make clean and healthy for them by at the same time, leaving
them with no water coming out of their own house faucets. The little water that did come out of
their faucets was dirty and undrinkable. The only way that Nestl helps Pakistan people is by
making them purchase Nestls water that can only be afforded by a few families.
Nestl defended itself by stating the fact that they have built two water filtering facilities that
were providing over 10,000 people in Pakistan with clean drinking water, saving lives. The
company also brings the communities that it sells its water to tax dollars that are welcomed by
officials, and is fully supported by an armada of lawyers and Project resource people. Nestl
pumps several million cubic meters annually and transports the water in tanker trucks to bottling
plants. Nestl is draining developing countries from their ground water to create their Pure Life
bottled water that is purified and cleaned with minerals for the people to purchase back at high
prices.
Restricting trade union rights through fake supervisors:
In countries such as Pakistan, Indonesia and Philippines, Nestl management created hundreds of
supervisory positions on production lines. These supervisors dont supervise anyone, have
no authority and have the same (or worse) wages and benefits as workers. Theyre different in
just one way ... they cant join the union.
Nestl Water workers were denied the right to water:
The Nestl Kabirwala plant in Pakistan started producing "Pure Life" bottled water in 2000. But
the only drinking water workers were allowed was ordinary tap water. This is despite daytime
temperatures reaching 47 C in the summer! In April 2006 the union won the right to have water
dispensers installed in the plant, supplied with Nestl "Pure Life" water. So after 6 years of
producing Pure Life bottled water, workers finally won the right to drink it.
Interfering in trade union elections:
From August 2006 to July 2007 the management of Nestl Pakistan interfered in union elections,
harassing then illegally firing the candidate for union president. On 28 July 2007 a ruling by the
Labor Court finally forced Nestl management to respect the right to free union elections and
end its harassment of the elected union president.

Corporate Social Responsibility done by Nestle, Pakistan:

The multinational corporation Nestle runs a Corporate Social Responsibility Program with
farming communities in Punjab. The Programme is social and financial in nature. The companys
CSR model is based on three key working area; Compliance, Sustainability and Community.
According to the company, compliance is respect for law; sustainability is sustenance of farming
communitys productivity and community is defined as the farming community. Nestle is helping
local farmers to develop dairy farming which improves profitability of farmers as well as well of
the company. This also helps local community to develop socially.
Nestle encourages public-private partnerships for active implementation of its CSR program.
Nestle also runs a nutrition program in the areas from where it collects milk. Under the program,
25,000 children are provided milk supplement in schools. In an open-ended interview, local dairy
farmers of Sargodha enumerated benefits of the help being provided to them by Nestle
Corporation. The farmers are given loans and technical facilities for more productive dairy
farming. The company has provided loans to the farmers to establish dairy farms and collection
points with chillers. Farmers own these business units and repay the loan in easy mode. This
improves profitability of farmers and the Nestle Corporation alike. Farmer gets better production
and productivity and the corporation gets more raw milk, as a result. However, it is difficult to
categorize this program as CSR. By definition, the program is closer to a commercial activity,
rather than a CSR activity. A number of other dairy companies and sugar mills doing business in
the adjoining areas (activities analyzed) have similar CSR programs as Nestle did.
MD of Nestle in the CSV Report 2015 said
The average years of working at Nestl at retirement are 26 years globally. This is quite
exceptional and due to the fact that Nestl has strong values, clear business principles and most
importantly because at Nestl we believe in our promise of Good Food, Good Life. We know
that we are contributing to the society when we are improving the quality of life of people in the
countries in which we operate. We do this by Creating Shared Value (CSV) because we believe
healthy populations lead to healthy economies, which aid a healthy business performance.
Nestle claims that Creating Shared Value is the way they do business. It is not about giving
away money one year to good causes only to cut back when profits are down, but about working
together over time on issues that matter and create shared value for the communities they
operate in as well as the shareholders in the process.
Globally, Nestl has linked their CSV agenda with broader development goals that focuses on:
Nutrition, Water, Rural Development, Environmental Sustainability and their People, as they
believe that they are well positioned to create a meaningful impact in those areas. In Pakistan
too, Nestle focuses on these areas and in 2015 they made good progress.
Nutrition
Nestle continued to expand its Nutrition programmes aimed at various age groups. Nestl
Healthy Women Programme a local programme that teaches young women about how what
they eat today will impact the coming generation was taken to 6 universities in Karachi, Lahore,
Islamabad and Peshawar. The reach of its global nutrition programme for children between 6 and
16 years of age Nestl Healthy Kids was increased to 85,00 children. They have been taught
about their nutritional needs and the importance of maintaining a healthy lifestyle.
Water
The highlight of 2015 for Nestl Pakistan was partnering with World Wildlife Fund (WWF-
Pakistan) to implement the Alliance for Water Stewardship (AWS) standard at Nestls
Sheikhupura Factory. The standard, being implemented in different parts of the world, promotes
better management of site-specific water use and the water catchment areas to address shared
water concerns related to quality, quantity and governance. The process was initiated in July
2015 and is expected to be completed in a year. The next site which the Pakistan market aims to
certify is its Islamabad Water Factory.

Rural Development
In Rural Development, Nestle launched an Entrepreneurship Development Programme at
Institute of Business Administration, Karachi, with a focus on agriculture. It is a weekend
certificate programme spread over 4 months. A batch of 40 students will be trained each year for
three years. The technical knowledge and skills that they acquire will enable them to make use of
modern agricultural and business management practices comprising on-farm and off-farm value
addition innovation and growth. Two other Rural Development projects, which Nestle is proud
to share with people is its Chaunsa Project under which Nestle continued to implement Best
Farm Practices in the Chaunsa Mango Sector and its support for Driver Training Facility at the
National Highways and Motorway Police (NH&MP) Training Institute in Karachi. This will be
along the same lines as the NH&MP Training Institute in Sheikhupura, which it has been
supporting for years.
People
Nestls Kero Aitemaad Programme designed to attract career aspiring women has grown
exponentially in 2015. Seven seminars have already been conducted. More than 850 girls were
reached out to across 76 colleges and universities nationwide. The main achievement is that
Nestle has created opportunities for women in Sales and Technical.