Introduction

Nestlé is the world's biggest food and drink business. It wants to be known as a 'Respected, Trustworthy, Food, Nutrition, Health and Wellness Company'. It uses market research to find out what its consumers really want. Nestlé found that consumers wanted help to have a more healthy diet. It also found that they would like more details about the products that they were buying. They felt that this should be given as part of the product. This growth of consumer power is known as consumerism.

Nestlé wants to be socially responsible. It worked with the industry to produce a system for labels. These would help consumers make choices. The system is based on 'guideline daily amounts' (GDAs).

GDAs

Several years ago scientists worked out the amounts of certain substances that an average person needed per day. This was based on government figures. Nestlé and other companies then built these into a system of symbols on products. The symbols show the amount of calories, sugars, salt fat and saturated fat in products. This helps consumers to make the right choices.

Ethics

Nestle has clear ethics. Ethics are the values by which a business is run. An ethical business is fair to customers. It is concerned for their well being. GDA labels show that Nestlé is concerned about the health of its customers. It also wants to send the right message to them. It knows there are some things it should not do. It would not be ethical to promote overeating, overeating, especially in children. It should not promote heavy snacking or meals being replaced with snacks.

Nestle wants to be socially responsible. This means doing the right thing. It uses a process called 'Creating Shared Value'. Nestle looks at how its activities impact on the wider environment. The process takes place through the entire chain of production, from the sourcing of raw materials through to final sales.

Corporate Responsibility

Corporate responsibility means Nestlé doing more than the law demands. Nestlé expects customers and suppliers to trust it to do the right thing. It does the right thing even when this might make it less competitive. For instance, GDAs might make Nestlé consumers switch to other products. Nestlé feel that this is outweighed by the wish to respond to consumer needs.

Corporate business principles

Nestlé has a set of principles. These shape how all of Nestlé's people behave. Staff should always make choices that reflect good practice. Nestlé checks this by taking a social audit. This shows whether the principles are being put into practice. For instance, it looks at the impact of GDA labels.

Conclusion

Nestlé has proved that it is a responsible business. It continues to grow and succeed by listening to consumers. It has used GDA labelling to satisfy their needs.