Nestle Fairtrade Analysis
GLOBAL CITIZENSHIP AND CORPORATE SOCIAL RESPONSIBILITY
Nestlé’s Case Analysis
Fairtrade or not to Fairtrade
I. Analyze: Identify Issue and its Scope
1. The primary issue is related to the coffee farmers in Africa and South America. They are not paid a sufficient price for their crop, and health and environmental standards are unregulated. Low coffee prices due to a higher supply than demand around 2000 leaving several coffee farmers with earnings below sustenance level. This caused large coffee producers to enforce a more sustainable supply chain with their coffee farmers. Nestlé is facing a decision whether to market their new instant coffee under the fair-trade brand or to keep complying with their own high CSR standards.
2. Nestlé complies with all UN principles, however some are more relevant to the situation than others. The first two human right principles are complied with, as well as the 4th (the elimination of all forms of forced and compulsory labor), all the environmental and the anti-corruption principle.
Besides this Nestlé is building schools for the workers children in the coffee plantations. They are also addressing the environmental challenges by providing farmers with agricultural assistance in form of watering systems using a minimal of water, as well as guaranteeing the farmers a base pay out of harvesting seasons.
3. Management 's objective is to improve the quality of products, at the same time, Improve the life quality of farmers in Ethiopia and El Salvador by reducing the uncertainty. With a transparent supply chain and quality control at the grass root level, company wishes to expand profits in the ethical market segment.
4. Information includes type of coffee, ingredients and composition which define the kind of coffees manufactured by Nestlé’s. Combining such details with provided data of countries coffee production helps in deciding the target-developing nation for production and target consumers. The given
Nestlé’s Case Analysis
Fairtrade or not to Fairtrade
I. Analyze: Identify Issue and its Scope
1. The primary issue is related to the coffee farmers in Africa and South America. They are not paid a sufficient price for their crop, and health and environmental standards are unregulated. Low coffee prices due to a higher supply than demand around 2000 leaving several coffee farmers with earnings below sustenance level. This caused large coffee producers to enforce a more sustainable supply chain with their coffee farmers. Nestlé is facing a decision whether to market their new instant coffee under the fair-trade brand or to keep complying with their own high CSR standards.
2. Nestlé complies with all UN principles, however some are more relevant to the situation than others. The first two human right principles are complied with, as well as the 4th (the elimination of all forms of forced and compulsory labor), all the environmental and the anti-corruption principle.
Besides this Nestlé is building schools for the workers children in the coffee plantations. They are also addressing the environmental challenges by providing farmers with agricultural assistance in form of watering systems using a minimal of water, as well as guaranteeing the farmers a base pay out of harvesting seasons.
3. Management 's objective is to improve the quality of products, at the same time, Improve the life quality of farmers in Ethiopia and El Salvador by reducing the uncertainty. With a transparent supply chain and quality control at the grass root level, company wishes to expand profits in the ethical market segment.
4. Information includes type of coffee, ingredients and composition which define the kind of coffees manufactured by Nestlé’s. Combining such details with provided data of countries coffee production helps in deciding the target-developing nation for production and target consumers. The given