Compliance Case Study: Nestle

Compliance
Case study
Nestle
Content
01 Definition of Compliance
and Stakeholders
02 The case of Nestle
03 Stakeholders in the case

of Nestle
04 Conclusion
1. Definition of compliance
Compliance
This issue reflects the level that companies should be compelled
or encouraged to engage in voluntary activities.
Stakeholders of firm in Compliance

• Government
• Society
• Company
It is generally
recognized that
firms seek to follow
their best interests
and that those
interests are
narrowly defined
around profit
maximization.
If the following of profit
does generate
social value, how
should that outcome
be achieved?
Should firms be free to

follow their self interest
and let the market
determine the nature of
their actions or should
society impose specific
actions on firms with the
goal of achieving
specific social outcomes.
Compliance Style
Compliance with stakeholder expectations goes to the heart of
CSR.
Voluntary provide incentives that

demonstrates the value of
compliance.
compel more responsible

corporate behavior. Mandatory
Brand
Awareness
Nestle is a Swiss food and drink
company. It is the largest food company
in the world and ranked No.64 on the
Fortune Global 500 in 2017.
Nestlé's products include, baby food,

medical food, bottled water, coffee and tea,
dairy products, ice cream, snacks.
2. The case of Nestle
Nestle destroying Rainforest

This is the marketing content of kitkat
which is the chocolate brand of
Nestle.

In March 17 2010, environmental
group Greenpeace launched a social
media attack on Nestle’s Kit Kat
brand.
Palm oil- Dầu cọ
- Palm oil is an increment that
can be found in food and
comestic.
- In fact, half of the world’s
population uses palm oil in
food.
- And palm oil trees is a
natural habitat of tigers,
clouded leopards, sun bears,
and orangutan.
Government
Media Society
(Indonesia)
3. Stakeholders in
Nestle the case of Nestle
Environmentalist Supplier
(Greenpace) (Sinar Mas)
Government
Nestlé was sourcing palm oil from
Sinar Mas, an Indonesian supplier
that it claimed was acting
unsustainably . After destroying
much of the rainforests of
Sumatra and Kalimantan, the
palm oil industry is now pushing
into new frontiers like Papua.
Indonesia government seems not to have any
reactions about this case.
Media
Nestlé’s initial response was to force the video’s
withdrawal from YouTube, citing copyright. This led to a
viral outbreak of criticism on social media – Facebook
users, for example, were irritated by its threats to remove
posts on its fan page containing Kit Kat logos that had
been altered to read “Killer”.
After the video was withdrawn from YouTube, Greenpeace

posted it on Vimeo, another social media site, where it had
78,500 views within hours; it reappeared on YouTube on
March 21 and had been viewed 180,000 times overall.
Society
Infographic Style
Short term strategy Long term strategy
Nestlé suspended sourcing from Sinar Mas, The company chose the Forest Trust (TFT).
and the company held meetings with TFT works closely with the private sector—
Greenpeace in which it provided details of rather than protesting it—to make their
its palm oil supply chains. products more environmentally and
socially responsible.
Mr Blackshaw had On the issue of

Change its set up a “digital sourcing
marketing and On social media
acceleration Nestlé now has a
communications Silence team” to monitor goal of using
strategy by hiring social media only palm oil
Pete Blackshaw. certified as
sentiment 24 hours sustainable by
a day. 2015.
Nestle
commitment
Nestle
commitment
Nestle
commitment
 Comply with local laws and regulations.
 Do not come from areas cleared of natural forest after December 31,
2015.
 Respect the Free, Prior and Informed Consent (FPIC) of local and
indigenous communities.
 Protect high carbon stock (HCS) land.
 Protect peatlands.
 Comply with the principles and criteria of the Roundtable on
Sustainable Palm Oil (RSPO), the industry-wide certification body
that promotes the growth and use of sustainable palm oil products.
No deforestation
commitment
In 2010, we made a ‘no deforestation’
commitment stating that all of our products,
globally, will not be associated with deforestation
by 2020. We also support the Consumer Goods
Forum’s ambition for zero net deforestation by
2020. Our commitment was the first of its kind by
a food company and covers all the raw materials
we use to make our packaging, as well as foods
and beverages.
4. Conclusion
Showing leadership on
sustainability is becoming a
business compulsive. A risk is
potentially big when the whole
world can find out about it
overnight.
Nestlé discovered that engaging with its critics
and addressing some of their concerns was more
effective than trying to shut down discussion on
social media.
Thank You
For your attention

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Compliance

02 The case of Nestle

03 Stakeholders in the case

Stakeholders of firm in Compliance

Should firms be free to

Voluntary provide incentives that

compel more responsible

Nestlé's products include, baby food,

Nestle destroying Rainforest

2. The case of Nestle

After the video was withdrawn from YouTube, Greenpeace

Mr Blackshaw had On the issue of

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