What's Next for Shared Value at Nestlé?
Creating shared value was born at Nestlé 10 years ago. Since then, the nutrition company has come a long way—taking the idea that business can more sustainably solve social problems and implementing it as a concrete, measurable reality. “Creating Shared Value is embedded in our DNA,” says Janet Voûte, Global Head of Public Affairs, “It's really in the hearts and minds of our top management, but also everyone... the people who work all over the world at Nestlé.”
Shared value is not just a lofty ideal at Nestlé—the company issues an annual report on shared value progress alongside its annual report every year. (You can read the full report, or a shorter summary on the Nestle website.) “This reporting, these commitments provide greater transparency to our stakeholders and to our partners,” says Voûte. That transparency was pivotal to communicating the business value of challenging issues like malnutrition, water stress, and sustainable agricultural communities.
So what’s next for a business that has already taken shared value so far? Voûte believes that Nestlé still needs to tackle the issue of communication: "We need to work to better explain how creating shared value in nutrition, water, and rural development helps to grow our revenues, enhance our margins, reduce our risk, and improve our reputation throughout."
Voûte describes two targeted audiences for this message: The first is the consumer. Nestlé aims to bring a better understanding of their shared value work into the brands that arrive in customers’ homes. The second audience to convince is mainstream investors, who will likely be more difficult to persuade. Voûte will join Michael Porter and other business leaders to discuss how shared value advocates can better communicate shared value to the investment community at the upcoming Shared Value Leadership Summit (details below).
In this video, watch Voûte discuss the concrete progress Nestlé has made in transparency, measurement, and in better translating their value to skeptics:
Register to see Ms. Voûte speak at the 2014 Shared Value Leadership Summit. You can also watch a live broadcast of the event on May 13th at 8:30am EST: Visit sharedvalue.org/livestream for more details.