Nestle Training and Devolopment

8/8/2019 Nestle Training and Devolopment

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History

The key factor which drove the early history of the enterprise that would

become The Nestl Company was Henri Nestl's search for a healthy,

economical alternative to breastfeeding for mothers who could not feed their

infants at the breast.

In the mid-1860s Nestl, a trained pharmacist, began experimenting with

various combinations of cow's milk, wheat flour and sugar in an attempt to

develop an alternative source of infant nutrition for mothers who were

unable to breast feed. His ultimate goal was to help combat the problem of

infant mortality due to malnutrition. He called the new product Farine

Lacte Henri Nestl.

Nestl's first customer was a premature infant who could tolerate neither his

mother's milk nor any of the conventional substitutes, and had been given up

for lost by local physicians. People quickly recognized the value of the new

product, after Nestl's new formula saved the child's life and within a fewyears, Farine Lacte Nestl was being marketed in much of Europe.

Henri Nestl also showed early understanding of the power of branding. He

had adopted his own coat of arms as a trademark; in Swiss German, Nestl

means 'little nest'. One of his agents suggested that the nest could be

exchanged for the white cross of the Swiss flag. His response was firm: "I

regret that I cannot allow you to change my nest for a Swiss cross .... I

cannot have a different trademark in every country; anyone can make use of

a cross, but no-one else may use my coat of arms."

Meanwhile, the Anglo-Swiss Condensed Milk Company, founded in 1866by Americans Charles and George Page, broadened its product line in the

mid-1870s to include cheese and infant formulas. The Nestl Company,

which had been purchased from Henri Nestl by Jules

Monnerat in 1874, responded by launching a condensed milk product of its

own. The two companies remained fierce competitors until their merger in

1905.

Nestl is today the worlds leading food company, with a 135-year history

and operations in virtually every country in the world. Their principal assets

are not office buildings, factories, or even brands. Rather, it is the fact that

they are a global organization comprised of many nationalities, religions,and ethnic backgrounds all working together in one single unifying

corporate culture. Their culture unifies people on all continents, with

roughly half their factories and people located in the developing world.

A qualified workforce, trained by Nestl or emerging from a strong

educational and industrial context, strongly influences the companys ability

to be globally competitive. The fair treatment and development of company


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staff and the strengthening of the local workforce are essential long-term

investments. They reinforce the conditions for growth and sustained

economic development in the locations where Nestl operates. Nestls

ability to employ thousands of people each year is an important contribution

the company makes towards future generations, providing income to

families

who can enhance their chances at better education, healthcare and standard

of living for entire families and communities.

INTRODUCTION OF NESTLE

Nestl Corporate Business Principles will continue to evolve and adapt to a

changing world, their basic foundation is unchanged from the time of the

origins of their Company, and reflects the basic ideas of fairness, honesty,

and a general concern for people.

Nestl is committed to the following Business Principles in all countries,taking into account local legislation, cultural and religious practices:

* Nestl's business objective is to manufacture and market the Company's

products in such a way as to create value that can be sustained over the long

term for shareholders, employees, consumers, and business partners.

* Nestl does not favor short-term profit at the expense of successful long-

term business development.

* Nestl recognizes that its consumers have a sincere and legitimate interest

in the behavior, beliefs and actions of the Company behind brands in which

they place their trust and that without its consumers the Company would not

exist.

* Nestl believes that, as a general rule, legislation is the most effective

safeguard of responsible conduct, although in certain areas, additional

guidance to staff in the form of voluntary business principles is beneficial in

order to ensure that the highest standards are met throughout the

organization.

* Nestl is conscious of the fact that the success of a corporation is a

reflection of the professionalism, conduct and the responsible attitude of its

management and employees. Therefore recruitment of the right people and

ongoing training and development are crucial.* Nestl continues to maintain its commitment to follow and respect all

applicable local laws in each of its markets.

Mission Statement

At Nestl, we believe that research can help us make better food so that

people live a better life.


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Good Food is the primary source of Good Health throughout life. We strive

to bring consumers foods that are safe, of high quality and provide optimal

nutrition to meet physiological needs. In addition to Nutrition, Health and

Wellness, Nestl products bring consumers the vital ingredients of taste and

pleasure.

Vision statement

Nestl aim is to meet the various needs of the consumer every day by

marketing and selling food of a consistently high quality.

The confidences that consumers have in our brands is a result of our

companys many years of knowledge in marketing, research and

development, as well as continuity consumers relate to this and feel they

can trust our products.

MAIN PRODUCTS

Good Food, Good Life: the key to health, nutrition and wellness.With over 140 years of experience and expertise, we take great pride in

bringing you the best products because happy, healthy consumers are

important to us.

We develop our products keeping your preferences, tastes and needs in

mind. We understand that you, along with millions of other consumers,

know that you can trust our products to deliver purity, quality, convenience

and nutrition.

Our products are carefully aligned to Pakistani tastes and needs. We're

always trying hard to develop new products and improve existing ones, and

serve our consumers better.

That's why through constant renovation and innovation we're always testing

or launching value added products and making them available in sizes that

will suit every requirement.

So explore the world of health with Nestl products, and find out what suits

your family's needs!

HUMAN RESOURCE

HR is dedicated to their employees, and ensures that they have all the rightpeople with the right skills, in the right places at the right time.

Understanding that their people are the bedrock of all their business

strategies, it is their mandate to enhance their skills with cutting-edge

training and provide them with world-standard facilities.

They select flexible, innovative people who are ready to confront new

challenges and make a difference. Their groundbreaking Management


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Trainee Programmed aims to develop talented young men and women and

help them achieve their potential in a dynamic and enabling environment.

Over a hundred people travel out of the country every year to take advantage

of their international training and development events.

GETTING STARTED:

Nestl is the worlds largest and most respected food company, and their

success is built on their people. Their 140 years of experience has taught us

that people are more important than systems & processes.

They offer you an attractive and dynamic working environment where you'll

find constant opportunities for development: a place where you can grow,

learn, and fulfill their potential to the utmost.

WHAT THEY BELIEVE IN:

They are a people company. Their people are their greatest strength, and

nothing can be achieved without their commitment and energy.

At Nestl Pakistan their opinion counts.

Here you'll fit into a corporate culture that's based on a set of fundamental

principles and values. These are:

High commitment to quality products and brands

Respect of other cultures and traditions

Commitment to strong work ethic

Personal relations based on trust and mutual respect

Proactive cooperation

Being pragmatic rather than dogmatic

Favoring decentralization and networking

Being committed to work and quality

Preferring the long-term perspective to short-term thinking

They're proud of their traditions and heritage, and as times change, these

core values keep evolving.

The Nestl Difference

At Nestl you'll find their self in a dynamic and invigorating environment,

surrounded by people who are passionate about their work.

You'll feel empathized to contribute to the company's business objectives

and to achieve their own personal and professional goals.


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You and their colleagues shape and lead the organization their energy is its

greatest strength.

Family & Female-Friendly Organization:

Diversity is central to the nature of their business. As a global organization,

Nestl caters to the needs of diverse consumers.

This is only possible due to the diverse backgrounds and interests of their

people and their firm commitment to embracing diversity at all levels.

When they employ staff, they make a commitment to provide them with

good working conditions. Female employees and their employees' families

know that Nestl Pakistan has a friendly and caring attitude.

They recently set up a day-care centre, and have established a

comprehensive Maternity Benefits Scheme for their female employees.

Total Competitive Remuneration:

At Nestl you can be sure you'll get competitive and fair remuneration

structures. Their remuneration is benchmarked against other organizations

and surveyed on a regular basis to ensure that they remain competitive.

Their pay and compensation strategy is tied to the achievement of their

business objectives. This linkage helps us define a growth-oriented culture,

making us the most preferred employer in the market.

The benefits of working at Nestl go beyond the financial. Here, you'll find a

structure to help you fulfill their ambitions and support their lives.

Growth:

New employees are given responsibility at an early stage, and high

performers can develop fast.

Their international and multicultural working climate is conducive to

creativity, innovation and personal development. And you'll get competitive

working conditions, a compensation package and social benefits in line with

their company's high standards.

Here, you'll get the room to add value and make a real difference. If you'requalified and ready to confront new horizons, you'll have the chance for a

truly international career.

Learning:

If you want to keep learning and improving every day of their working life,

you might fit in very detail at Nestl Pakistan.


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reports about their local performance and those of other sites, enabling easy

internal benchmarking and identification of best practices.

Safety at Work Award:

In order to reinforce a culture of safety in the company Nestl has created a

'Nestl Safety at Work Award' 2008. Nestl country or market organizations

worldwide presented applications to the jury. Each country or market

organized an internal safety award competition and designates one champion

team to participate in the Nestl Safety Award. Local winners are recognized

with Gold, Silver and Bronze awards and the global winners will be

announced at the end of March.

The winners are presented with their trophies at the Nestl Market

Conference.

Nestl Policy on Health and Safety at Work:Nestl regards its people as its most valuable asset and places the highest

priority on protecting them. The Nestl Policy on Health and Safety at Work

is based on the Nestl Corporate Business Principles, which are binding for

the whole Nestl Group.

Prevention of work-related injury and illness

Nestl believes that work-related injuries and illnesses can be prevented.

They integrate health and safety into management of the business by

establishing local safety organizations that proactively advance a strong

safety culture. Further, they implement worldwide our mandatory Nestl.

Operational Safety, Health and Risk Management

Strategy, which meets or surpasses the requirements of the health and safety

laws applicable in the countries in which they operate conduct risk

assessments and take appropriate corrective action to minimize threats to

human health and safety. Furthermore, they establish emergency and

contingency plans to deal with residual risks. This approach also minimizes

threats to the business, protecting our shareholders interests; continuouslyimprove our performance by adapting processes, work practices and systems

as a result of monitoring safety performance and analyzing accidents or

occupational health problems.

Nestl and third parties


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Nestl understands the responsibility of the community and third parties in

managing safety. Therefore, they communicate with relevant local

communities and their emergency services, providing them with adequate

health and safety information on our operations. They encourage joint

training and exercises with local emergency services where appropriate

ensure that all third parties entering Nestl sites have sufficient relevant

information and training and are properly equipped to safely execute their

tasks on our sites; regard health and safety management as an important

consideration in supplier and contractor selection. Nestl enforces this policy

on third parties operating on our sites and encourages our suppliers and

contractors to apply similar standards of Nestl sites.

Management leadership and employee involvement

Nestl recognizes the critical role of our people to ensure a safe and healthy

work environment. As an integral part of managing the business, all Nestlmanagers are accountable for managing workplace health and safety with

strong leadership and credibility. They build a proactive safety culture by

actively engaging our employees and other relevant

stakeholders to drive implementation of all elements of our Nestl

Operational Safety, Health and Risk Management Strategy through

consultation and communication with staff at all levels educating, training

and equipping staff at all levels to ensure that they are employed to avoid

unsafe situations and to respond rapidly to unexpected events; setting targets

and monitoring performance to drive continuous improvement of our

achievements, while providing the needed resources to ensure a safe

working environment. Further, employees at all levels are accountable to

work in a safe manner to prevent injury to themselves and fellow workers,

and to become actively involved in programs to improve health and safety

performance in the workplace.

Implementation

Nestl implements this policy through the Nestl Operational Safety, Health

and Risk Management Strategy to ensure a consistent and coherentstandard worldwide. However, the specific methods of managing health and

safety at work depend on local social norms, practices and regulations. Local

management is accountable to implement an adapted safety organization to

comply with this policy.


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The Nestl Operational Safety, Health and Risk Management System,

supports the Nestl Operational Safety, Health and Risk Management

Strategy by guiding managers on the most effective implementation

approach.

Key Figures:

Tracking workplace injuries: Five-year Evolution:

Nestl started tracking injuries that lead to days away from work and/or to

medical treatment at corporate level in 1998. This tracking covers

approximately 275,000 employees and 50,000 contractors (those that work

at Nestl sites) across the world. Since then, significant progress has been

achieved. In the period 2003-2007, the number of injuries with time away

from work (for employees and contractors) per million hours workedreduced by 65%.

RECRUITMENT

WHAT THEY LOOK FOR:

It takes a special sort of person to come and work at Nestl Pakistan.

That's why, when selecting candidates, they look for a set of interrelated

characteristics encompassing three key areas: knowledge, personality and

motivation.

Professional Knowledge:

Do you have a great academic record that demonstrates their intelligence,

commitment and hard work? Can you show us you have a sharp analytical

mind, and the drive necessary to succeed in a competitive environment?

If you think you fit the bill, you may be right for Nestl Pakistan.

They look for good academic results at university or equivalent

qualifications. However, the class of the degree you have obtained, though

very important, is not the only criterion for selection.Other experiences during their studies, previous jobs, assignments, language

theses and any other significant extracurricular activities and achievements,

are also given the right.

They look for candidates who can identify a problem, analyze it, look at

different options, and come to reasoned conclusions.


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They want people with drive and tenacity, energy and enthusiasm, who can

initiate a project and follow through to the end.

All these skills are vital during a career at Nestl Pakistan.

Personality:

To succeed at Nestl Pakistan, you need more than professional knowledge.

You need a flair for the field of activity of their choice, an open mind, and a

willingness to dig in and learn new skills and ideas.

They're looking for applicants who are dynamic and communicative. People,

who can listen, understand and integrate the opinion of others, people who

can express their ideas clearly, both verbally and on paper.

They want people who like to negotiate, even with very different partners,

and to solve problems in complex situations.

They like candidates who show leadership, inspire others, and are self-confident, yet realistic. People who have a positive attitude to work and are

willing to work hard, even under pressure.They seek people who can be

objective in their assessment of themselves and of others.

Motivation:

While they expect loyalty to their company, they expect their people to be

critical and suggest improvements wherever necessary. They like people

who are motivated themselves & can motivate others.

What Will Make You Right for Nestl?

A Nestl employee is characterized by creativity and dynamism. They don't

only look for specialists, but people who have knowledge and skills in more

than one field, with broad interests.

To sum up, they want people with purpose and ambition, though not at the

expense of others.

They want people who take responsibility for their actions, who consider

Nestl their own business, and who show an entrepreneurial spirit.If you think you fit the Nestl profile, you might be just the person they're

looking for!

Recruiting process:

Applying for a current job / graduate program / internship


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Please look through the vacancies and choose which you are interested in.

Create your CV by filling out the online form.

Once the application is complete, you will receive a confirmation message

telling you that it has been received and is being processed.

Receiving CVs:

They will review and select CVs that best match open jobs. Please note that

only completed CVs will be taken into account.

Only selected candidates will be contacted.

In any case, you will receive an e-mail telling you when the job you applied

for has been filled.

Register for our talent pool:

If there is no job opening suitable for you, you can still register your detailsin our database. You will then be considered as a potential candidate for new

up coming positions.

They regularly review CVs and jobs to try to match registered candidates

with job openings.

You will only be contacted if they find a suitable match.

The Interview Process

Graduate Program Applicants

Regular group interview sessions are held throughout the year for most of

the Graduate Programs.

This is a one-day sessions that consists of discussions about potential jobs

and career developments, individual interviews with HR and line managers,

group and/or individual case studies.

If you are successful at the group stage, you will be invited for an individual

interview day with HR and line managers.

Professional applicants:You should expect a series of individual interviews with HR and line

managers. These will generally focus on your background and motivation as

theyll as how you likely fit Nestl's culture and values.


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Internships applicants:

You will be interviewed by HR as theyll as a line manager. These

interviews will generally focus on your background and motivation as

theyll as how you likely fit Nestl's culture and values.

TRAINING

Management Trainee Programmed:

If you're young, bright and hard working, the Management Trainee Program

may be the place for you. They hire fresh graduates as potential managers to

develop new competencies and skills through on-the-job development.

You'll be hired in one of various departments at inductee level on a 12-

month training program. Once you've completed the program, you will be

assigned independent responsibilities supporting the company's businessneeds.

They begin sourcing Management Trainees in January. Preliminary

interviews and screening is organized according to the graduation schedules

of Pakistani and foreign universities, and are followed by interviews with

senior management.

Employee Nutrition Training

Building a continuous nutrition learning culture within Nestl is a key

element in our journey to become a nutrition, health and wellness company,

to provide profitable growth in the future. To support this objective, they

have developed the NQ (Nutritional Quotient) training program for

employees, based on the principle that nutrition is everybodys business at

Nestl, irrespective of the area in which employees work.

Nestls expert nutrition knowledge is long-established, centered on the

activities of Nestl Nutrition and our R&D network. The NQ program is

designed to widen and increase the knowledge base among employees in

other job functions, giving everyone the confidence to apply this knowledge

in their work.

The program combines nutritional knowledge with commercial application.For example, when communicating with consumers about balanced diets,

the knowledge gained by Nestl employees through the NQ program will

help make nutrition and wellness tangible to consumers, ensuring that Nestl

is regarded as a knowledgeable partner in nutrition matters. Not only this - a

major aim of the program is also to help employees make informed and

healthy nutrition choices for themselves and their own families.


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A modular program

NQ training comprises engaging modules suitable for all employees, from

the Executive Board to plant operators, and leverages the nutrition expertise

of Nestl scientists and health marketing specialists. Implementation began

in 2007, with Nestl nutrition experts and marketing specialists taking part

in "train the trainer" sessions across our zones to support the cascade of

knowledge to all employees.

Key to the success of the NQ training are interactive, customized modules

designed to encourage people to participate and put knowledge into action.

These are tailored to specific needs:

Foundation module: a stand-alone program of learning and development for

Nestl employees whose jobs are principally non consumer or customer

facing.

Advanced module: core learning for staff who are engaged with externalbodies and consumers/customers.

Specialist modules: place particular emphasis on understanding the

consumer and application of the Nestl nutrition and wellness strategy in

specific product categories.

A complete toolkit

The NQ program toolkit comprises a suite of materials for trainers, including

training manuals and slide sets. For trainees themselves, learning takes place

in an engaging way using a variety of media and formats, including

interactive games, motivational video content and an on-line quiz. This is

used to measure collective progress and to allow each trainee to evaluate, in

an entirely confidential way, his or her personal lifestyle choices. The toolkit

also comprises awareness-raising and motivational material that can be used

and adapted to meet local needs, including posters, questionnaires and

certificates.

Ongoing development

As nutrition and our insights into nutrition evolve, so too will our NQ

Nutrition training, helping Nestl employees to keep abreast of new

developments and maintain a high level of credibility through the breadthand depth of our nutrition expertise.

Internships:

Internships are a great way to apply the knowledge and skills you are

developing at university and get experience in a leading corporation.


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They offer project-based internship positions in various departments at

Nestl Pakistan.

You may be hired as an intern at various points during their academic career:

during undergraduate study or graduate school.

Most internship assignments are offered during the summer months and

generally run for 6 to 8 weeks.

At the end of the internship you will be required to submit a project or

program report to the company on the topic assigned to you at the beginning

of the internship program.

If you impress us with their talent & hard work, you may be considered for

employment opportunities after you have completed their studies.

The Nestl Human Resource Policy

This policy encompasses those guidelines which constitute a sound basis forefficient and effective HR Management in the Nestl Group around the

world.

They are in essence flexible and dynamic and may require adjustment to a

variety of Circumstances. Therefore its implementation will be inspired by

sound judgment, compliance with local market laws and common sense,

taking into accounts the specific context. Its spirit should be respected under

all circumstances.

As Nestl is operating on a worldwide basis, it is essential that local

legislation and practices be respected everywhere. Also to be considered is

the degree of development of each market and its capacity to advance in the

management of their human resource.

Should any HR policy conflict with local?

Legislation, local legislation will prevail.

These policies are addressed to all those who have a responsibility in

managing?

People as they will as to HR professionals??

The Nestl Management and Leadership Principles include the guidelines

inspiring all the Nestl employees in their action and in their dealings with

others. The Corporate Business Principles refer to all the basic principleswhich Nestl endorses and subscribes to on a worldwide basis. Both these

documents are the pillars on which the present policy has been built.

A SHARED RESPONSIBILITY:


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HR managers and their staff are there to provide professional support in

handling people matters but should not substitute themselves to the

responsible manager.

Their prime responsibility is to contribute actively to the quality of HR

management throughout the organization by proposing adequate policies,

ensuring their consistent application and coherent implementation with

fairness. Acting as business partners, the HR manager advises and offers

solutions which results in positive impact on the organizations

effectiveness.

Furthermore, she/he proposes best practices and provides state-of-the-art

support and counseling to her/his colleagues. Together they act as co-

responsible partners for all HR matters. This partnership is the key for

efficiency in people management. The communication skills of the HR staff

must be appropriate to deal with all delicate matters as they occur frequently

in human relations issues. They gain their credibility not only from theirprofessional contribution but also through the care and the excellence of

their communication skills.

CAREER MANAGEMENT

JOINING NESTLE:

The Nestl Human Resource Policy The long-term success of the Company

Depends on its capacity to attract, retain and develop employees able to

ensure its growth on a continuing basis. This is a primary responsibility for

all managers. The Nestl policy is to hire staff with personal attitudes and

professional skills enabling them to develop a long-term relationship with

the Company.

Therefore the potential for professional development is an essential standard

for recruitment.

Each new member joining Nestl is to become a participant in developing a

sustainable quality culture which implies a commitment to the organization,

a sense for continuous improvement and leaves no place for complacency.

Therefore, and in view of the importance of these Nestl values, special

attention will be Paid to the matching bettheyen a candidates values and the

Company culture.Hence, a clear communication of these principles and values from the very

beginning of the recruitment process is required.

Moreover, for managerial positions specific leadership qualities and

business acumen will be required. Nestl wishes to maintain and develop its

reputation as an employer of high repute. Contacts with universities,

attendance at recruitment events and other contacts are to be undertaken so


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as to ensure good visibility of the Company vis--vis relevant Recruitment

sourcing. Particular care will be given to the treatment of each Candidacy

regardless of the outcome of the selection process.

Even when promoting employees intensively from within the organization, it

is the role of management and HR to keep an eye on valuable candidates

from outside and to Benchmark internal skills with external offers.

Whilst adequate recruitment tools may improve the hiring process, it is

understood that the decision to hire a candidate remains in the hands of the

responsible manager Supported by the HR staff. Under no circumstances

should the decision to hire or not to hire be left in the hands of an outside

consultant or expert. As mentioned in the Nestl Management and

Leadership Principles, only relevant skills and experience and the adherence

to the above

Principles will be considered in employing a person. No consideration will

be given to a candidates origin, nationality, religion, race, gender or age.It is as important to hire the right person as it is to integrate newcomers in

the organization so that their skills and behavior can merge smoothly with

the Company culture. Whereas from new employees it is expected to respect

their companys culture, it is accordingly required from all employees to

show an open mind towards new ideas and proposals coming from outside.

EMPLOYMENT AT NESTLE

The Corporate Business Principles outline the Companys commitment to

fully endorse and to respect a series of principles and international

conventions concerning employees rights, the protection of children against

child labor and other important issues. These principles are to be respected

everywhere and under all circumstances.

The management will implement the necessary processes to ensure that

these principles are enforced at all levels. Employees who are not abiding

with the Corporate Business Principles and the Nestl Management and

Leadership Principles cannot be maintained in employment and will be

requested to leave the organization. Also their main suppliers and providers

of out sourced services should be informed of the Corporate Business

Principles and should comply with those. Nestl provides a workingenvironment which protects the health and there welfare of the employees

according to the highest?

Affordable standards of safety, hygiene and security. Each employee should

not only Care for her/his own safety but also that of her/his colleagues.

Therefore, suggestions for improvement are they come and will be given

prime consideration.


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In the same way that no discrimination for reason of origin, nationality,

religion, race, Gender or age will be tolerated when joining Nestl, no such

discrimination will be tolerated towards Nestls employees. Furthermore,

any form of harassment, moral or sexual, will not only be prohibited but

actively tracked and eliminated. Internal Rules and regulations will

explicitly deal with discrimination and harassment issues so as to obtain the

best possible prevention. Nestl considers that it is not enough to avoid

discrimination or harassment. It is essential to build a relationship based on

trust and respect of employees at all levels. Therefore, it is indispensable for

each manager to know how her/his employees feel in their work. In larger

units it may be necessary to organize such feedback on a regular basis, using

internal surveys or other valuable approaches. Nestl favors a policy of long-

term employment. Whenever, an operation activity cannot be maintained

within the Nestl sphere, reasonable steps will be undertaken to avoid

overall loss of employment by identifying an external Business willing totake over activity from Nestl, whenever this is possible.

If this is not possible, a closing down may be unavoidable. It will be handled

in full respect of local legislation and of the Corporate Business Principles.

A social plan will be elaborated taking into account the legitimate interests

of the concerned staff.

Reasonable efforts will be deployed to reduce, as much as possible, the

negative Social impact of such a situation.

Knowledge transfer:

Knowledge Transfer is about making the very best out of our huge

intellectual assets and resources and ensuring that this information is shared

with our partners and within our communities.

The research and business models that have proved of great success within

Nestl have been taken on into communities and used to enable and their

other businesses and initiatives.

The most recent example of this is the participation of Nestl in donating

funds for the drilling of deep wells and the installation of 22 community

water supplies to provide clean and safe water for some 40 000 people. Thefunds are also be used to train community structures on maintaining the

pumps and improve overall hygiene practices.

The project is under the umbrella of the International Federations Global

Water and Sanitation Initiative (GWSI) launched in 2005, which has set a

framework for scaling-up action and partnership to contribute to the UN

Millennium Development Goals, in particular the goal to reduce by half the


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number of people without sustainable access to safe water and sanitation by

2015.

Listening and responding to employee views

Businesses throughout Nestl listen and respond to employees. Nestle

globally conducted an independent survey, which provided constructive

feedback from employees on a range of topics. A clear finding was that

Nestle employees wanted the business to take a fresh look at internal

communication. Nestle responded firstly by running structured workshops to

help translate opinions into action. Various initiatives they are implemented

as a result. These range from new opportunities to meet and share ("mystery

lunches" and monthly departmental meetings) to improved information

sources (intranet and publications library). Nestl is conducting a global

employee survey. This is currently underway, and they will be able to report

on it in future publications.

Work/Life Balance:

At Nestl they believe that the employees private and professional life

should have a good balance.

Not only because it reinforces employees satisfaction, loyalty and enhances

Productivity but also because it positively reflects on the Companys

reputation. It helps attracting and retaining people and reconciles economical

imperatives with theyll being. Nestl is willing to support employees who

wish to take an active part in the life of the community or by assuming

responsibilities in professional, civic, cultural, religious or voluntary

organizations it being understood that any activity during working theirs be

first approved by the Company.

In the same spirit, Nestl provides flexible working Conditions whenever

possible and provides its employees to have interests and motivations

outside work.

PROFESSIONAL DEVELOPMENT:

Learning:Learning is part of the Company culture. Each employee, at all levels, is

conscious of the need to upgrade continuously her/his knowledge and skills.

The willingness to learn is therefore a non-negotiable condition to be

employed by Nestl. First and foremost, training is done on-the-job. Guiding

and coaching is part of the responsibility of each manager and it is crucial to

make each one progress in her/his position. When formal training programs


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are organized they should be purpose oriented and designed to improve

relevant skills and competencies. Therefore they are proposed in the

framework of individual development programs. As a consequence,

Attending:

A program should never be considered as a reward. Adequate training

programs are developed at the level of each operating company capitalizing

on the availability of local, regional or global resource of the Group. It is the

responsibility of HR staff to assist the management in the elaboration of

training programs. Great importance will be attached to programs enhancing

the language skills of the employees. Training programs organized at the

International Training Centre Rive-Reine aim at developing and sharing best

practices of the various management disciplines practiced in the Group.

They also strive to strengthen corporate cohesion as theyll as to promote

networking throughout the Group. Training programs should, as much aspossible, be based on action learning and reduce ex-cathedra teaching to the

strict minimum. It is necessary to make optimal use of e-learning programs

as a complement to or a substitute for formal training programs.

According to needs they should be made available at shop floor level and

enlarge the access to training. It is the role of each manager to assess

progress achieved as a result of training Programs. Assessing and

Developing each employee is in charge of her/his own professional

development. However, the Company endeavors to offer the opportunity to

progress for those having the determination and the potential to develop their

capabilities.

Such opportunities should take into account the potential of each employee

and be discussed with transparency. They will be based on defined

possibilities, concentrate on the next career step and not on vague promises

or remote hypotheses. The Company provides its employees to express their

objectives and expectations in an open dialogue. The objective is to retain

and motivate employees by offering attractive but realistic career moves

allowing them to develop their skills over a long-term period within the

framework of economic reality and a changing environment. Whereas

succession plans forecast the Company needs, they will be reconciled,inasmuch as possible, with individual development plans. HR management

provides the support for implementing the necessary planning tools, having

in mind the necessary flexibility to cope with unforeseen situations.

However, it is understood that each manager is co-responsible for preparing.

The resource necessary to the development of the Company as this is also

part of his accountability. Regular counseling and guidance are the best tools


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for improving performance and for helping people develop their skills. It

also allows to correct errors swiftly and to transform them into a positive

learning experience. In an organization with flat structures this supports

better delegation. Direct personal contact should always been given

preference over written communication whenever possible. Each manager

has the duty to act as a mentor for his employees. Formal assessment should

take place on a regular basis, preferably once a year. Its purpose is to

provide feedback on past performance and future potential as theyll as on

other relevant aspects concerning a staff members work including the

development of his skills and competencies. Both the positive and negative

aspects of individual performance should be frankly addressed. Assessment

of performance should be based on facts rather than opinions. For

managerial positions, assessment will be based essentially on agreed

objectives and their level of achievement.

Efficient performance management emphasizing the achievement of agreedObjectives is a prime responsibility for each manager. The necessary time

should be dedicated to the monitoring and the follow-up of the progressive

achievement of objectives during the year. This feedback is meant to

stimulate performance and should take place through an open dialogue based

on mutual trust and willingness to progress. It is requested to provide written

evidence of such meetings. Focus should be essentially on continuous

improvement, appropriate training measures but also on shaping a

Stimulating working environment. In case of serious underperformance, a

termination of employment should be envisaged. Such termination should be

handled with due respect of the person and should include, where

appropriate, separation terms that take into account the employees personal

situation. When assessing potential it should be kept in mind that the best

indicator of talent is achievement. Therefore responsibility should be given

as early as reasonable to allow people to prove themselves. Candidates for

managerial positions should clearly have demonstrated their willingness and

ability to apply the Nestl Management and Leadership Principles.

Promotions will exclusively be based on competence, insight, performance

and potential with the exclusion of any consideration for origin, race,

nationality, gender, religion or age. Flexibility is a requirement for ensuringa positive professional evolution. Staff may be requested to move to other

positions. Managers, especially international staff, may be asked to move to

other locations. International experience and participation in group

development initiatives such as GLOBE, SMPT and others can be acquired

in all countries of the Group and are a requirement for holding high-level

positions. The development of expertise in specific areas of competence is


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determinant for the Companys success. Therefore job rotation should be

practiced with caution. Whilst job rotation might be useful under certain

circumstances, it should not result in threatening their expertise in key areas

of Professional Development.

Industrial relations:

Nestl upholds the freedom of association of its employees and the effective

recognition of the right to collective bargaining. Nestl wishes, also through

its relationship with unions and other representative associations, to sustain

the long-term development of the Company, both to the benefit of the

employees and of the Company, by maintaining a level of competitiveness

adapted to its economic environment. Industrial relations are a clear

responsibility of local management and will be handled at the appropriate

level: first at site level (factories, warehouse) subsequently at regional ornational level, according to local law and practices.

Nestl will ensure that direct and frequent communication is established

with its employees, both union members and non-members, as mentioned in

the Nestl Management and Leadership Principles. Relations with unions

will be established under strict observation of national law, local practices as

theyll as those international recommendations to which Nestl has adhered

to on a voluntary basis as stated in the Corporate Business Principles.

Contacts with union delegates should create a further opportunity to provide

information allowing their members and other representative associations to

acquire a full understanding of the business activities and the goals of

Nestl. In accordance with local legislation, Nestl will refrain from any

action restricting the employees right to be or not to be affiliated to a union.

Nestl will not engage with any union or other representative association in

activities or discussions other than those relating to employment and

working conditions as theyll as issues relating to the workplace. Whenever

negotiations take place, they will be duly prepared with the full involvement

of line management and take into account both the Companys and the

employees legitimate interest. In dealings with unions, it will be ensured

that management prerogatives be properly maintained.The fact that Nestl is more people and product than systems oriented is

reflected in the way HR is functioning and is organized. Processes and

systems as theyll as professional HR tools are there to support HR

management but never to the detriment of the human dimension. The human

perspective should be present at all times and under all circumstances. The

HR function should report to the manager responsible for a defined


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operation (Region, Market, Country, and Factory) with a functional relation

to the market HR according to the size of that operation.

The HR manager should not only have the skills and competencies from a

purely professional standpoint but also have the charisma and the credibility

to be a trustworthy partner to her/his colleagues. Whereas the HR function

should indeed provide flawless administrative support, its main role is to add

value to the business and to play a proactive role in every situation where

HR action is required. Specific HR KPIs are useful in assessing the

performance of an HR unit. However, it should be kept in mind that the HR

contribution aims in the first place at optimizing the overall company

performance through improving people performance. With the evidence that

the human capital is of increasing importance, HR plays indeed a pivotal

role in the conception and implementation of the people strategies that

impact financial results and the organizations overall reputation and

effectiveness.

The Nestl Spirit:

You could be forgiven for expecting to see a mission statement here,

summing up our beliefs and principles in a few slick phrases. But that's not

the approach they take.

Nestl is not like other companies. They have a unique set of values and

guiding principles that have been built up over time. To try to summarize

them in a sentence or two would make them meaningless.

To engender the unique spirit that permeates the entire Nestle Group:

They believe in people, rather than systems

They are committed to creating value for our shareholders, but they will not

favor short-term profits at the expense of long-term business development

They are as decentralized as our basic policy and strategy decisions will

allow

They are committed to continuous improvement rather than dramatic, one-

off changes Above all, they are pragmatic and not dogmatic

If these are values that strike a chord with you, spare a few minutes to read

through the questions below. If you can tell them all with 'yes', they'd like tohear from you.

Do you look forward to change?

Nestl is proud of its traditions and heritage. But that doesn't mean they are

stuck in the past. To keep us ahead in the ever-changing food industry, they

are constantly driving forward the boundaries of our industry. Our people

must be:


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creative

excited by the future

flexible

Are you open minded and ready to learn - every day of your career?

They are committed to the continual training and personal development of

our people. A world of opportunities quite literally awaits those who are

prepared to:

learn something new every day

adapt to new environments

develop multi-lingual skills

Do you have courage in your convictions and keep your cool under stress?

Then you could have what it takes to be a Nestl manager. The development

of our business depends on finding people who are ambitious for themselvesand for our company, who can:

communicate and innovate

motivate and inspire

delegate without abdicating responsibility

Do you want to explore new countries and adopt new cultures?

Nestl has been an international company since its very beginning. Food is

intrinsically linked with local eating and social habits, and Nestl endeavors

to integrate itself as much as possible into the cultures and traditions of the

countries where it operates. To deliver products that meet the needs of

individual consumers, they need people who:

respect other cultures

embrace diversity

never discriminate on any basis

Are you ready to be the best?

Whether they are creating a product to fulfill a nutritional need, or a

chocolate bar that's purely for pleasure, Nestl is only satisfied with the best.

They expect that same commitment to quality from our people. So get intouch with us if you are:

enthusiastic

dedicated

ready to be part of our success

Many other companies say that people are their most precious asset. They

know that what makes our company unique is our staff: the people who


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share our beliefs and principles and who work constantly to keep Nestl in

its leadership position. Nestl is not a faceless company selling to faceless

consumers. It is a human company providing response to individual human

needs the world over.

Corporate Business:

Nestl is committed to the following Business Principles in all countries,

taking into account local legislation, cultural and religious practices:

Nestl's business objective, and that of management and employees at all

levels, is to manufacture and market the Companys products in such a way

as to create value that can be sustained over the long term for shareholders,

employees, consumers, business partners and the large number of national

economies in which Nestl operates;

Nestl does not favor short-term profit at the expense of successful long-

term business development, but recognizes the need to generate a healthy

profit each year in order to maintain the support of our shareholders and thefinancial markets, and to finance investments;

Nestl recognizes that its consumers have a sincere and legitimate interest in

the behavior, beliefs and actions of the Company behind brands in which

they place their trust, and that without its consumers the Company would not

exist;

Nestl believes that, as a general rule, legislation is the most effective

safeguard of responsible conduct, although in certain areas, additional



organization;

Nestl is conscious of the fact that the success of a corporation is a reflection

of the professionalism, conduct and the responsible attitude of its

management and employees. Therefore recruitment of the right people and

ongoing training and development are crucial;

Nestl operates in many countries and in many cultures throughout the

world. This rich diversity is an invaluable source for our leadership. No

single document can capture every legal obligation that may be required in

each of these countries. Indeed, there may be conflicting legal requirements.

Nestl continues to maintain its commitment to follow and respect allapplicable local laws in each of its markets. If an interpretation of anything

contained in this document is construed as contrary to local laws, such

interpretation should not be followed in that country

Nestl Corporate Business Principles:


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Nestl is committed to the following Business Principles in all countries,

taking into account local legislation, cultural and religious practices:

Nestls business objective, and that of management and employees at all

levels is to manufacture and market the Companys products in such a way

as to create value that can be sustained over the long term for shareholders,

employees, consumers, business partners and the large number of national

economies in which Nestl operates.

Nestl does not favor short-term profit at the expense of successful long-

term business development, but recognizes the need to generate a healthy

profit each year in order to maintain the support of our shareholders and the

financial markets band to finance investments; Nestl recognizes that its

consumers have a sincere and legitimate interesting the behavior, beliefs and

actions of the Company behind brands in which they place their trust, and

that without its consumers the Company would not exist.

Nestl believes that, as a general rule, legislation is the most effectivesafeguard of responsible conduct, although in certain areas, additional



organization; Nestl is conscious of the fact that the success of a corporation

is a reflection of the professionalism, conduct and the responsible attitude of

its management and employees.

Therefore recruitment of the right people and ongoing training and

development are crucial; Nestl operates in many countries and in many

cultures throughout the world. This rich diversity is an invaluable source for

our leadership. No single document can capture every legal obligation that

may be required in each of these countries. Indeed, there may be conflicting

legal requirements. Nestl continues to maintain its commitment to follow

and respect all applicable local laws in each of its markets.

If an interpretation of anything contained in this document is construed as

contrary to local laws, such interpretation should not be followed in that

country.

National Legislation and

International Recommendations:Nestl emphasizes that, as a minimum, its employees must comply with the

laws applicable in the countries in which it operates. Nestl ensures that the

highest standards of responsible conduct are met throughout the

organization, by complying in a responsible way with the Nestl Corporate


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Business Principles:

That guide Company activities and relationships worldwide in each sector of

business interest.

Nestl supports and publicly advocates the United Nations Global Compact

and its nine principles, an initiative of the United Nations Secretary-General.

The Global Compact asks companies to embrace, support and enact, within

their sphere of influence, a set of core values in the areas of human rights,

labor standards and the environment.

Nestl recognizes that increasing globalization is leading to the development

of more and more international recommendations. Although, as a general

rule, these recommendations are addressed to governments, they inevitably

impact on business practices. Among others,

Nestl has incorporated relevant International Labor Organization

Conventions. Nestl endorses relevant commitments and recommendations

for voluntary self regulation issued by competent secretarial organizations,provided they have been developed in full consultation with the parties

concerned. These include the International Chamber of Commerce (ICC)

Business Charter for Sustainable Development. Also, Nestl uses the revised

Organization for Economic Co-operation and Development (OECD)

Guidelines for Multinational Enterprises, for its Corporate Business

Principles.

Consumers:

Nestl aims to create value that can be sustained over the long term by

offering consumers a wide variety of high-quality, safe food products, at

affordable prices. The Nestl Seal of Guarantee is its basic promise to the

consumer. Nestl believes that consumer communications such as

advertising play an important function in enabling consumers to exercise

their right to informed choice. The Company is committed to responsible

consumer communications that: do not mislead as to the benefits derived

from use of the product;

do not exploit violence, sex or profanity;

do not depict discriminatory or offensive attitudes to religious, political,

ethnic, cultural or social groups; avoid demonstrations that encourage dangerous or inappropriate use of the

product;

do not portray competitors products inaccurately, nor denigrate

competitors products;

avoid the exploitation of media events that could be in bad taste. In

addition to the above principles, Nestl does not sponsor consumer


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communication vehicles such as television and radio programs or magazines

whose strategy of attracting readers is to exploit violence, sex or offensive

attitudes to consumers. When collecting consumer data, Nestl complies

with applicable data protection regulations and applies Nestl standards

where specific legislation is not yet in place.

Children as Consumers

Nestl has developed the following principles for advertising to children:

Advertising to children should not attempt to undermine the authority,

responsibility or judgment of parents or care providers;

Advertising to children should not portray children in unsafe situations nor

encourage them to accept invitations from people they do not know;

Communications should not demonstrate either unsafe or irresponsible

consumption.As programming is increasing in importance as a marketing communications

vehicle, the principles applied to other forms of communication will be

applied here.

Human Rights:

Nestl fully supports the United Nations Global Compacts two guiding

principles on human rights. Nestl therefore: Supports and respects the

protection of international human rights within its sphere of influence

(Principle 1)

And ensures that its own companies are not complicit in human rights

abuses (Principle 2)

Nestl aims to provide an example of good human rights practices

throughout its business activities and has an interest in encouraging the

improvement of social conditions, which are an important factor for

sustainable development. Nestl also recognizes that governments are

ultimately responsible for the establishment of a legal framework for

protecting human rights within their markets. Nestl expects each market to

respect and follow the local laws and regulations concerning human rightspractices.

Child Labor:

It is generally acknowledged that the causes of child labor are complex and

include poverty, differing stages of economic development, social values

and cultural circumstances. Nestl believes policy development must take


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into account the social and legal situation of individual countries. Action to

eliminate child labor must be guided by the best interests of the child, as ill-

considered policies and commercial measures can make the situation worse

for children.

Therefore, Nestl:

is against all forms of exploitation of children. The Company does not

provide employment to children before they have reached the age to have

completed their compulsory education, as defined by the appropriate

authorities, and expects its business partners and industry suppliers to apply

the same standards;

abides by national laws in all countries which it has operations and

complies with the International Labor Organization (ILO) Convention 138

on the Minimum Age for Employment and the ILO Convention 182 on the

Worst Forms of Child Labor. The ILO recommendations are based on the

United Nations Convention of the Rights of the Child (Article 32); offers its co-operation with the relevant United Nations agencies,

governments and the business community in their efforts to deal with the

problem of child labor, which include the encouragement of universal

primary education and all aspects of economic development worldwide.

Business Partners:

Nestl insists on honesty, integrity and fairness in all aspects of its business

and expects the same in its relationships with all business partners and

suppliers of materials, goods and services. Nestl therefore supports and

applies:

The International Chamber of Commerce revised rules on extortion and

bribery in international business transactions, which recommend

governments to prohibit extortion and bribery for any purpose (adopted by

the ICC Executive Board on March 26, 1996);

OECD Recommendations on Bribery and International Business

Transactions of May 1994 and the OECD Convention to counteract

corruption, which was signed by all the member countries and by Argentina,

Brazil, Bulgaria, Chile and Slovakia in 1997 (the signatories undertake to

consider corruption of foreign officials a penal act under their national law); Nestl also supports OECD efforts to have non-member nations adhere to

the OECD recommendations for fighting against corruption.

RELATIONSHIPS


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Relationship with Suppliers

Nestl aims to deal only with reputable suppliers who are willing to apply

Nestl quality standards. Supplier relationships are benchmarked and

evaluated with the objective of striving for continued improvement in the

areas of quality, service, etc. As a relationship between a supplier and Nestl

strengthens and progresses, it may evolve into one of preferred supplier

status. Key suppliers with which Nestl has a contractual relationship are

audited in order to ensure that they comply with the Nestl Corporate

Business Principles or that they are working actively to achieve compliance.

Whenever instances of non-compliance are brought to the Companys

attention, Nestl will demand that corrective measures be initiated. Nestl

personnel will maintain the highest standards of integrity and professional

competence in all business relationships. Sanctions will be applied in the

event of misconduct or abuse of established corporate standards and

guidelines.

Competition:

Nestl supports free enterprise and therefore competes fairly and recognizes

other companies equal rights to do so. The Company supports the

development of competition laws to protect this principle. In particular:

Nestl sets its commercial policy independently and does not fix prices in

agreement or collusion with competitors;

Nestl does not allocate customers, territories or product markets in

agreement or collusion with competitors;

Nestl deals fairly with its customers and suppliers, in accordance with

competition laws;

Nestl will look towards mergers and acquisitions as a means to improve

its effectiveness, not to restrict competition;

Nestls trade payments are based on customer efficiencies and services

provided.

External Relations

Authorities: Nestl supports ongoing dialogue between all industry sectors

in which it is active and the appropriate government and regulatoryauthorities at both national and international levels, in order to promote and

implement relevant legislation, regulations and/or agreements which protect

the rights of the consumer while ensuring a healthy, competitive

environment. Business Relations: Nestls business relations are based on

the principles of mutual trust, fairness and professionalism in the context of

a free-market economy. Academic/Professional Relations: Nestl


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encourages two-way communication and co-operation with academic and

professional bodies to foster continual updating of knowledge for mutual

benefit, leading to the constant improvement of the Groups products,

policies and services.

Financial: Nestl communicates openly, directly and accurately and takes

advantage of appropriate communication tools to ensure that information is

available simultaneously to the financial community and general public. No

individual or institution is given preferential treatment. Local Communities:

In addition to the direct investment and employment provided throughout

the world, Nestl contributes in many countries to the well-being of local

communities in other ways. The personal involvement of Nestl people in

many projects, together with financial assistance and sharing of know-how

with local organizations helps to develop long-term community relations and

mutual understanding. Non-Governmental Organizations: Nestl engages in

dialogue with non-governmental organizations that have a record ofconstructive engagement and principled behavior. They encourage

discussion that can result in improved understanding and collaboration in the

economic, social and environmental betterment of the community. Nestl is

involved in project partnerships with a significant number of non-

governmental organizations. Internet Privacy Policy: The Internet is

changing the way of doing business. It concerns business-to-business

relations and also the Companys interaction with consumers. In this respect

Nestl S.A. has an Internet Privacy Policy which is available on the

Corporate They site. This policy aims to protect the privacy of the users; it

covers, for instance, the accessing, deleting or correcting of information, the

security of information, and relates also to tracking technologies. Nestl

supports industry self-regulation and respects the local laws of the markets it

serves in this domain.

Protection of the Environment

Since its early days Nestl has been committed to environmentally sound

business practices throughout the world and continues to make substantial

environmental investments. In this way Nestl contributes to sustainable

development by meeting the needs of the present without compromising theability of future generations to meet their own needs. The Nestl

Policy on the Environment underlines this commitment. Nestl also adheres

to the International Chamber of Commerce (ICC) Business Charter for

Sustainable Development. This Charter requires the establishment of


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policies, programs and practices for conducting operations in an

environmentally sound manner.

Nestl fully supports the United Nations Global Compacts three guiding

principles on environment.

Nestl therefore:

Supports a precautionary approach to environmental challenges (Principle 7)

Undertakes initiatives to promote greater environmental responsibility

(Principle 8)

Encourages the development and diffusion of environmentally friendly

technologies (Principle 9)

Nestl:

integrates environmental policies, programs and practices into each

business as an element of management in all its functions; develops, designs and operates facilities and conducts its activities taking

into consideration the efficient and sustainable use of renewable resources,

the minimization of adverse environmental impact and waste generation, and

the safe and responsible disposal of residual wastes;

respects and complies with existing laws and regulations in local markets

concerning environmental issues;

applies Nestl internal standards suitable to local conditions in those

regions where specific environmental legislation is nonexistent or

insufficient;

improves environmental protection relevant to its activities on a

continuous basis;

provides appropriate information, communication and training to build

internal and external understanding about its environmental commitment and

action;

supports professional associations such as the International Chamber of

Commerce and the World Business Council for Sustainable Development in

their work relative to environmental protection, as theyll as efforts to set up

environmental management guidelines;

establishes environmental objectives, monitors progress, checks resultsand defines future actions. This activity, carried out by Nestl specialists,

ensures the continuous improvement of environmental performance

throughout the supply chain, from producing and purchasing of raw

materials, to manufacturing, packaging, distribution and finally to the

consumer.

Agricultural Raw Materials


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Agricultural raw materials, principally milk, coffee, cocoa, cereals,

vegetables, fruit, herbs, sugar and spices, are vital factors affecting the

quality and costs of Nestl manufactured food products and, as a

consequence, the Companys business performance. Sourcing strategies and

production methods are subject to an ever-changing environment. New

technological developments in the field of agriculture, changes in

agricultural policies or trade regulations, new technologies in food

processing, and evolving consumer preferences, mean that Nestl must adapt

its sourcing strategies accordingly. This is a continuous process.

Governments and/or political institutions regulate farming and the trade of

farm products. Because of the effect of such regulation on pricing,

availability, domestic and international trade, and on the economic, social

and ecological aspects of farming and consequently on food safety and

quality aspects, Nestl engages in constructive dialogue with government

institutions (primarily through professional organizations), and co-operateswith local authorities.

In this context Nestl:

supports farming practices and agricultural production systems that are

sustainable; that is those practices and systems that satisfy long-term

economic, ecological and social requirements;

sources its agricultural raw materials either through trade channels or

directly from farmers and is not engaged itself in its own commercial

farming activities;

supports mechanisms that contribute to a more regular income for farmers;

Where appropriate, provides agricultural assistance to farmers in order to:

- transfer know-how

- ensure ongoing supply at competitive conditions

- obtain raw materials that meet quality and safety specifications

supports an agricultural production system that is economically viable,

socially acceptable and ecologically sound and therefore encourages

sustainable farming practices;

supports the application of new technologies and advances in agricultural

science, including the opportunities offered by todays bioscience when their

positive effect on food safety, environment, agricultural practices andproduction efficiency are scientifically confirmed and accepted by

consumers;

recognizes the importance of genetic diversity as a pillar for future

developments in agriculture and life science, and supports its preservation as

a public good.


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Agricultural services:

Nestl has a long tradition of helping the farmers who provide our raw

material.

Nestl Pakistan is committed to continuing this tradition; they consider it a

way of engaging in a mutually profitable partnership with our suppliers.

Thus, ever since they took over the milk collection system in 1992, our

Agricultural Services have endeavoured to help the farmers of the milk

district with their husbandry.

Better animals means there will be better milk. They gain a reliable supply

of high quality milk, but the greatest benefits, both immediate and long-

term, are to the farmers themselves.

Agricultural raw materials procured directly from farmsThe decision to establish or maintain a direct procurement system depends

on a number of factors. They include:

Company requirements in terms of quality, safety, quantity and cost;

Proprietary characteristics of individual raw materials;

Reliability in supply and the local conditions for sustainable production.

Direct procurement provides the following benefits to farmers and co-

operatives:

An understanding of Nestls quality and safety requirements;

Objective and transparent evaluation of raw material quality;

transparent price policy providing farmers a reference level of prices for

their raw materials, thus leaving them with the choice as to where to sell

their produce;

Quality premiums that encourage farmers to achieve and maintain high

quality standards. If warranted, Nestl may assist farmers to improve their

quality, yield and economic competitiveness.

Corporate Social Responsibilities

They believe that every single company, no matter where in the world it

operates, ought to be fully integrated into the local social, cultural &economic life. They must be good corporate citizens, and give back to the

societies to which they belong.

There are two ways of fulfilling our responsibility and practicing corporate

Social Responsibility:

v Through social investments: giving to charities, leading and supporting

cultural or welfare initiatives.


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v Through the realization that businesses create social and environmental

impacts, both positive & negative, through the daily operations of their value

chain.

Our operations throughout the world are committed to making full use of

these tools. Thus Nestl people everywhere are involved in the many

programs and projects they have designed to strengthen local communities

and nations.

They are heavily involved in projects relating to our own areas of expertise,

such as nutrition education & research, health projects, and agricultural

assistance. In times of crisis they are often amongst the first on the scene to

help with humanitarian relief aid and food donations.

To help culture & society flourish, they do our best to encourage a host of

other activities: they support charities, education and training initiatives, art

and cultural events, sport events and HIV/AIDS prevention.

Responsibility to society:

Taking the Nestl concept of corporate Social Responsibility to heart, they

are deeply involved in social investment and humanitarian aid.

v They are committed to Pakistan's long-term betterment, and strictly follow

the code of corporate governance:

v They deal fairly with stakeholders.

v Serves our consumers through safe, high quality products & communicate

with them responsibly.

v Adhere to environmentally safe industrial practices

v Actively involved in several social action programs (SAPs) to improve the

lives of our country's under-privileged people.

v They adhere to the global Nestl philosophy of Creating Shared Value.

Our dairy suppliers in the Punjab's milk district can attest to the agricultural

and technical support they offer them.

v During our manufacturing process they are careful to minimize

environmental impact and value employee welfare highly.

v Finally, they try to benefit our consumers by spreading awareness about

healthy nutrition and lifestyles as theyll as constantly developing or

improving existing products for health, nutrition and wellness.

Responsibility to environment:

In line with Nestl's global commitment, Nestl Pakistan is dedicated to

playing its role in helping to protect the environment. They comply with the


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Environmental Act (1997), and try to ensure that at every stage of our

operations, the environmental impact is minimal.

Thus, at the raw materials stage, they support sustainable agricultural and

dairy farming practices, including environmental protection.

When it comes to production, all our factories try to maximize eco-

efficiency, i.e. increase production while minimizing resource consumption,

waste and emissions.

Our factories are equipped with complete testing and monitoring facilities

for waste and air emissions. To eliminate air pollution, they have stopped

using heavy fuel oil in our factories, which are now run on clean natural gas.

This has reduced our emissions into the atmosphere to theyll below the

legal limits.

Our Sheikhupura & Kabirwala factories have elaborate water treatment

systems to prevent wastewater from polluting the environment.

Natural gas incinerators at our Sheikhupura & Kabirwala factories are usedto safely dispose of material that cannot be recycled & dumped.

Our factories have environment committees to manage routine environment

issues and review performance. Environmental impact assessment is done in

advance for every new project and measures are adopted to minimize

adverse impacts on the environment. Our employees regularly undergo

training to inculcate awareness about environment-friendly practices.

Earthquake Relief

In October 2005, the biggest natural calamity in our history struck Pakistan.

Thousands died and millions they are left homeless after a massive

earthquake hit our mountainous northern areas. In step with the rest of the

nation, Nestl Pakistan responded immediately, putting its infrastructure and

resources to work in the affected areas.

First response:

When the earthquake struck, Nestl Pakistan responded instantly, even

before the magnitude of the disaster had dawned upon the nation. They

immediately donated food and beverage items.

Within two days, they had established a crisis committee under thesupervision of our Managing Director. The same day, the management team

left to visit the affected areas, and by 11 October, the first six Nestl trucks

left our factories, bearing bottled water, powdered and UHT milk and ready-

to-cook MAGGI noodles.

Instead of burdening the government and relief agencies, they aggressively

reactivated our own shattered distribution channels to bring supplies to the


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people who needed them most and established six camps to distribute relief

goods.

Despite blocked roads, grave logistical challenges & an atmosphere of fear

and suffering, our teams, consisting of about forty Nestl employees and

distributors, they went out and distributed Nestl products to the affecters.

Within two days our teams reached the worst-hit areas around

Muzaffarabad, Bagh and Mansehra. They worked in collaboration with the

Pakistan Air Force and arranged for supplies to be airdropped to the most

inaccessible areas.

Other teams of Nestl volunteers supported relief work undertaken by other

agencies around the affected areas.

As a result of our swift and carefully planned action, they are able to

distribute 80 trucks of goods, worth Rs 20 million. Two 10-ton trucks of

drinking water they are dispatched to Muzaffarabad Hospital, and our

volunteer teams ensured that goods they are distributed fairly and efficientlyto those who needed them most.

After a month:

After the crisis comes a time for rebuilding shattered lives. Among our

reconstruction efforts are the following initiatives:

v They have allocated an amount of Rs 20 million, raised through employee

contributions, matching grants and contributions from other Nestl markets.

This amount will be used to adopt and reconstruct a model village in Azad

Kashmir.

v They are thankful that no Nestl employee was personally affected, though

a few lost family members and property. They have compensated all

employees, distributors and their staff for homes destroyed, to the tune of Rs

4.1 million.

v They intend to build an orphanage in the affected areas for the hundreds of

children who lost their parents in this disaster.

v They are initiating a livestock health improvement program to help the

locals rebuild their shattered lives.

v Our parent company, Nestl SA has donated an additional Rs 16 million

for reconstruction and rehabilitation work.

Pitching in:

Nestl employees worked tirelessly to bring aid to earthquake victims. They

are immeasurably proud of our people for their contributions: Nestl

employees donated Rs 3.3 million from their own salaries. Nestl employees


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in other countries also stepped forward and donated to the Nestl relief fund.

Five teams of staff volunteers worked day and night in the affected areas to

ensure that relief goods got where they are needed. A medical detailing team

worked with the students of King Edward Medical University, Lahore, to

collect medicines worth Rs 175,000. Our parent company, Nestl SA has

donated an additional Rs 16 million for reconstruction and rehabilitation

work.

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