This symbiotic relationship between Nestle and small farmers highlights how businesses can achieve
competitive advantage while also driving positive social progress.

works with small farmers (neither own land or big businesses)

helps both nestle and farmers
Nestle
1. ingredients
2. secure and sustainable supply chain for their products
Famrers: (limited resources and small scale operations)
1. trainings
2. Access to markets
3. fair pricing
Despite facing criticism for its past actions of infant formula in developing countries. it has still made a
positive impact in poor countries.

invested in programs to enhance agricultural practices,

support local communities,

promote responsible sourcing of raw materials.
History of Nestle Milk in India:

in 1962 started milk business

build dairy in Moga

region was lacking basic facilities like: electricity,

small plots of land, less than five acres. (not fertile)

one buffalo cow

death of calves
transportation, phones, or medical care.
after seeing the laciking:

Nestlé set up special places to collect milk in each town with refrigerators to keep it fresh.

sent trucks to pick up the milk

brought along experts like veterinarians and nutritionists.

provided medicine

training to help sick animals

how to improve their cows' diet (milk quality)
farmers could afford to dig deep wells for irrigation, which not only helped their cows but also increased
their crop harvests, making life better for them.
Change in Moga:

earlier 180 farmers supplied milk

now getting from 75000+ farmeers in Moga

decreased death rate by 75%

higher pay than govt decided

competing daries and milk factories have opened.
now moga and higher standards of living than other regions:

90% homes with electicity and telephones

primary and secondary schools

number of doctors inc
Nestle's successful model:

ollection points,

providing training,

introducing advanced technology.
strategy
replicated such as Brazil, Thailand, and China, benefiting both Nestlé and local communities.
why CSR is difficult to find here?

where the business ends and the social good begins.

example: working with farmers to get ingredients

social benefits such as improved healthcare, education, and economic development. ( positive
social impact)
By investing in local infrastructure and sharing knowledge and technology, Nestlé not only ensures it has
what it needs to make money but also helps improve healthcare, education, and the economy in those
places
Organizing CSR:
Good Intentions and Leadership: It's not enough for a company to have good intentions or strong leaders
who want to do good things.
Changes Needed: Businesses have to make adjustments in how they're organized, how they report things,
and how they encourage their employees to do well.
Ignoring Social Issues: Most companies don't really pay attention to social issues that might affect how they
do business or how they compete with other companies.
Separating Charity and Social Responsibility: Very few companies connect their charity work (like giving
money or resources to causes) with their efforts to be socially responsible (like treating their workers well or
being environmentally friendly).
Making Social Responsibility a Core Part of Business: Companies need to make being socially responsible a
central part of what they offer as a business, not just something they do on the side.
Changing Approach: Instead of just trying to look good to the public, companies need to focus on actually
making a positive impact on society. This means shifting their mindset from just protecting their image to
genuinely making a difference.
User
tell me more in detail and simple words
ChatGPT
Absolutely, let's break it down further:
Good Intentions and Leadership: Companies might have leaders who want to do good things and help
society.
Changes Needed: Businesses need to make some changes in how they're set up and how they work.
Ignoring Social Issues: Many companies don't really think about or pay attention to problems in society that
might affect their business.
Separating Charity and Social Responsibility: Some companies give money or help out with causes, but they
don't always connect this with their overall efforts to be responsible towards society.
Making Social Responsibility a Core Part of Business: It's important for companies to think of being good for
society as something very important for their business, not just something they do sometimes.
Changing Approach: Instead of just trying to look good to people, companies should really focus on doing
things that actually help society. This means they need to move away from just trying to have a good image
and focus on making real changes that matter.
Strategic Decision-making: Success in corporate social responsibility (CSR) involves making strategic choices
about which social issues to address. This implies a deliberate selection process rather than tackling all
issues indiscriminately.
Short-term Pressures vs. Long-term Investment: The short-term performance pressures faced by companies
make it challenging to invest in social value creation without strategic prioritization. Instead, companies
should consider CSR as a long-term investment in their future competitiveness. This perspective aligns CSR
with research and development, emphasizing its importance for sustained growth and success.
Creating Shared Value: The concept of creating shared value suggests that CSR initiatives should not only
benefit society but also enhance the company's competitive positioning. By investing in initiatives that
create shared value, companies can align their social impact efforts with their business goals, leading to
mutual benefits for both stakeholders and the organization.