Introduction

Nestlé is the world's biggest food and beverage company. It wants to be known as a 'Respected, Trustworthy, Food, Nutrition, Health and Wellness Company'. It has used market research to find out what its consumers really want and found that they would like more information about the products that they are buying. Consumers felt that such information should be provided as part of the product. Nestlé also found that consumers were concerned about eating healthily. This growth of consumer power is known as consumerism.

As a business that wants to be socially responsible, Nestlé worked with the industry to produce a labelling system based on 'guideline daily amounts' (GDAs).

GDAs

Using government figures, scientists worked out the various amounts of different substances that an average person needed per day. Nestlé and other companies then built these into a system of symbols on products so that consumers could tell immediately if a product was right for them. The symbols show the amount of calories, sugars, fat, saturates and salt in products. This helps consumers to make appropriate choices.

Ethics

Nestlé is guided by a set of business ethics. Ethics are the values by which a business is run. An ethical business is run on principles of fairness and concern for the well-being of consumers and other stakeholders. The development of GDA labelling on packs showed Nestlé's consumers that the company is concerned about their health. The business is also concerned with communicating the right messages to its consumers. For example, it recognises that it should not encourage overeating, especially in children, nor should it encourage heavy snacking or regular meals being replaced with snacks.

Nestlé has combined its business principles and its approach to corporate responsibility in a process called 'Creating Shared Value'. This means that Nestlé looks at the impact of each of its activities on the wider environment. This is important to both shareholders and consumers. The process takes place throughout the chain of production, from the sourcing of raw materials through to final sales.

Corporate Responsibility

Corporate responsibility means Nestlé doing more than regulations demand. This means that customers and suppliers must develop a trust in Nestlé. It even extends into areas where competitors might seek an advantage. For example, by putting GDAs on foods, Nestlé might be driving consumers to other products. However, the company feels that it is more important to be responsive to consumer needs.

Corporate business principles

These principles influence how everyone at Nestlé behaves. Employees are helped to make choices that reflect Nestle's corporate good practice. Nestlé evaluates its activities against its principles in a type of social audit. For example, it monitors the impact of GDA labelling on consumers and society.

Conclusion

Nestlé has proved that by listening to consumers and being a responsible business, it can continue to grow and succeed. It has used GDA labelling to satisfy the needs of consumers.