nestle case study

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ASSIGNMENT
BUSINESS ETHICS
&
BUSINESS
ENVIRONMENT
Submitted By:
NavanSodhi
PGDM – HR
IInd Trimester

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Questions:
1. In your own words, define what is Sustainable Development.
Ans. Sustainable Development refers to that economic development that is conducted without
exhaustion of natural resources. sustainable development is concerned with achieving economic growth
alongside the protection of the environment and also at the same time making sure that these economic
and environmental benefits are available to everyone.
2. If you were the decision maker at Nestle, what other measures would you take to protect the
environment other than the ones mentioned in the case study?
Ans. Measures taken to protect the environment –
 Manufacturing processes: Manufacturing is an extremely important part of the supply chain.
Nestle have the highest potential to maximize eco-efficiency – that is, to maximize the
production of goods while, at the same time, minimizing consumption of resources and reducing
waste. There are many ways to improve eco-efficiency such as through conservation
programmes, by improving capacity utilization of factories and through other investments.
 Water as a key Resource: Nestlé recognizes that the responsible management of world-wide
water resources is an absolute necessity. Preserving both the quantity and the quality of water is
not only an environmental challenge, but also one that spans economic, political, social, cultural
and emotional fields. Nestlé’s world-wide operations utilize just 0.006% per year of the total
estimated fresh water withdrawal.
3. As a youth of this country, what do you think will matter more in future? An organization
earning a huge profit or an organization that works towards sustainable development? Give
reason for your answer.
Ans. An organization that works towards sustainable development will matter more in future.
Below mentioned are the reasons that why sustainable development is important for future generations.
o People: To ensure that all human beings can fulfil their potential in dignity and equality and
in a healthy environment.
o Planet: To protect the planet through sustainable consumption and production, sustainably
managing its natural resources and taking urgent action on climate change, so that it can
support the needs of the present and future generations.
o Prosperity: To ensure that all human beings can enjoy prosperous and fulfilling lives and
that economic, social and technological progress occurs in harmony with nature.
o Peace: To foster peaceful, just and inclusive societies which are free from fear and violence.
There can be no sustainable development without peace and no peace without sustainable
development.
o Partnership: To mobilize the means required to implement this Agenda through the
participation of all countries, all stakeholders and all people.
4. Do you think, it is high time that we Indian consumers need to understand the contribution we
are supposed to make towards our environment? What role can we play to stop organizations
that exploit the environment for their own benefit?

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Ans. The Environment is the most important resource for life. We get water, power and Oxygen from
the Environment. It helps to clear pollution and is a large habitat for animals. Earth is getting polluted by
poisonous gases and fumes made by cars and factories.
 A clean environment is essential for healthy living: If an organization don’t care about the
environment, chances are it will become polluted. It’ll be polluted with contaminants and toxins,
which may harmfully affect your health.
 The overall temperature of Earth’s atmosphere is increasing: Small changes in the average
temperature can lead to frequent occurrences of dangerous weather patterns and devastating storms.
 Biodiversity is important: Biodiversity refers to the variety of plants, animals, and other living
things in our world. According to the EPA, it can be negatively influenced by natural forces and
human activities. Therefore we should keep our environment clean and protected.
5. Remember the Maggi fiasco? In the light of that issue, can we really consider Nestle a
responsible brand?
Ans. We can still consider Nestlé a responsible brand because –
 Nestlé has made a strong comeback to regain its lost ground--nearly two years after it was forced
to withdraw its largest selling noodle brand from shops across the country following its failure to
meet certain food safety standards.
 The brand equity and customer trust has been built over generations and this has helped the brand
bounce back after a near 'death' experience.
 Nestlé’s focus on innovation has sharpened with many products at different stages of launch. The
company’s new avatar is encouraging.