Nestlé, the multinational based in Vevey, Switzerland, has just been upgraded to a positive rating (single +), following the updating of its environmental and social indicators. This reflects the positive course the company is steering in its social policy, and more particularly in terms of disclosure.
In addition to organizing regular meetings with senior management, allowing differing views to be discussed, in March 2002 the company published Nestlé Corporate Business Principles, which updates and adds to the list of ethical principles relating to human rights and environmental objectives. This 27-page document addresses social and environmental responsibility relating to the company’s commercial objectives, with particular emphasis on issues such as child labor and the company policy on water resource management.
Published at the same time, the first comprehensive report on sustainable development analyzes how these Business Principles are being applied, using a series of different examples and indicators. All stakeholders are included, mainly through the use of balance sheets. Nevertheless, further progress is still needed, particularly where strategy is concerned and in setting objectives and taking corrective action. That will help give a better idea of the company’s wish to improve its social and environmental performance.
