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Corporate
Business
Principles
Pr
Principles
Mandatory
Public
Issuing department Group Legal and Compliance Target audience All employees Approver Chairman and Chief Executive Officer Date of approval April 2020, released July 2020 Repository All Nestlé Principles and Policies, Standards and Guidelines can be found in NestleDocs, on the Nest Copyright and confidentiality All rights belong to Société des Produits Nestlé S.A., Vevey, Switzerland. © 2020, Société des Produits Nestlé S.A. Design Société des Produits Nestlé S.A., Corporate Identity & Design, Vevey, Switzerland
Introduction
Commitment of the Chairman and the Chief In line with our purpose and values and the way
Executive Officer we do business, the Corporate Business
Principles set out in this document guide the
For Nestlé to be successful over time, we must actions and behaviors of everyone at the
earn the trust of our employees, consumers, company and reflect our culture which has
customers, suppliers, shareholders and wider developed over the span of more than 150 years.
society. This depends on us acting with integrity They provide a strong ethical framework,
at all times and upholding our commitments. ensuring integrity of action and compliance with
Trust in our company, products, services and laws, regulations and our own commitments.
brands can only be built consistently step by
step. This is why we take decisions with a On the foundation of strong business ethics
long-term view, while ensuring we meet our and compliance, we do business sustainably
commitments today. and in a way that creates shared value. We
conduct business in an ethical and principles
As the Good food, Good life company, we unlock based manner even in the absence of legal
the power of food to enhance quality of life for or regulatory frameworks. Where our own
everyone, today and for generations to come. principles and policies are stricter than local
In pursuing our purpose, we are guided by our legislation, the higher standard applies. This
values, which are rooted in respect. helps Nestlé meet societal expectations and
distinguishes us in the marketplace.
Creating Shared Value (CSV) is fundamental
to how we do business at Nestlé. We believe As the Chairman and the Chief Executive
that our company will be successful in the long Officer of Nestlé, we are committed to making
term only by creating value for our people, sure that our entire Company is managed and
communities and shareholders, as well as for acts according to these principles and require
society and for the environment. Our activities adherence to them from all our employees
and products should make a positive difference around the world.
to society while contributing to Nestlé’s ongoing
success.
Paul Bulcke
Chairman
U. Mark Schneider
Chief Executive Officer
Internal Reference documents:
Nestlé Code of Business Conduct
External Reference documents:
United Nations Guiding Principles on Business
and Human Rights
The Ten Principles of the United Nations Global
Compact’s (UNGC)
Corporate Business Principles 1
Corporate Business Principles – Structure
1. Consumers 4. Business integrity
• Nutrition, health and wellness • Ethics and integrity
• Quality assurance and product safety • Privacy and ethical data management
• Consumer communication
5. Transparent interaction and communication
2. Our People • Internal interaction and communication
• Human rights • Engagement and advocacy
• Diversity and inclusion
• Safety and health at work 6. Compliance
3. Value Chain
• Responsible sourcing
• Customers and business partners
• Environmental sustainability
Quality assurance
and product safety
Consumer
communication
Nutrition, health
and wellness
Human rights
Diversity and
inclusion
Consumers
Safety and
Compliance Our people health at work
Internal Responsible
interaction and sourcing
communication Transparent
interaction and Value Chain
communicationn
Customers
and business
partners
Business Integrity
Engagement Environmental
and advocacy sustainability
Privacy and Ethics
ethical data and integrity
2 Corporate Business Principles
1. Consumers Consumers
Nutrition, health and wellness Our communications to children promote
Guided by our commitment to Nutrition, healthier lifestyles and physical activity. They
Health and Wellness, our objective is to offer do not mislead, undermine parental authority,
the tastiest and healthiest choices in all of our generate unrealistic expectations of success,
product categories. We work to increase the create a sense of urgency or allude to a sense
nutritional value of our products. We strive of low price.
to improve the overall healthiness and We are committed to market to children only
affordability of our portfolio of products. Our long choices that help them achieve a nutritious diet,
established innovation capabilities help through responsible marketing practices.
us innovate with speed and agility. Our objective is to provide consumers with
We are committed to providing transparent accurate and transparent nutrition information
nutrition information and to encouraging healthy through product labeling based on sound
lifestyles. We express this via our corporate science in a format that helps them make
maxim “We are Nestlé, the Good food, Good life informed food and beverage choices.
company”. When providing infant nutrition solutions,
we apply the following principles:
Quality assurance and product safety • We are committed to supporting
Everywhere in the world, the Nestlé name breastfeeding as the ideal nutrition for babies;
represents a promise to the consumer that the • We recommend breastfeeding over all other
product is of the highest quality and safe. feeding alternatives;
Our commitment is to never compromise • Every child has the right to the best possible
on the safety of any product. Our Quality Policy first 1000 days of life;
summarizes the essential elements of our • Caregivers should have access to the highest
commitment, including: quality solutions for the choices they may
• Developing, manufacturing and providing make;
products and services that are trusted • All solutions must be rooted in current, high
and preferred in order to enhance quality of quality nutritional and behavioral science;
life and contribute to a healthier future; • All caregivers should feel respected and at
• Maintaining high food safety standards peace with their decision about how to feed
in all countries in which we operate; their baby; and
• Challenging ourselves to continuously • Achieving the best possible nutritional
improve our management systems outcomes requires responsible engagement
to guarantee product quality and safety and advocacy with all stakeholders.
aiming for zero defects; and
• Inspiring ownership of product quality and These principles apply equally, everywhere.
safety by all employees and third parties Our infant food marketing is conducted in
in our value chain. accordance with the World Health Organization
(WHO) International Code of Marketing of
Consumer communication Breast-milk Substitutes and subsequent
Our communications aim to make World Health Assembly (WHA) resolutions,
a positive impact on consumers’ lives. We are as implemented by each member state of the
committed to responsible, reliable consumer WHO. Additionally, we have implemented the
communication that empowers consumers to “FTSE4Good” criteria. In countries classified as
make informed choices and promotes healthier ‘high risk’ for child malnutrition and mortality,
diets. We provide an accurate representation we comply with our specific rules, going beyond
of foods in a way that does not encourage local legal requirements when these are less
over-consumption. Science supports all of our strict. In these countries, we do not promote
health claims. infant formulas nor “follow-up” formulas for
children under 12 months of age.
Corporate Business Principles 3
2. Our people Our people
Human rights Diversity and inclusion
We are committed to provide our Our long-term success depends on our
employees all over the world with good working capacity to attract, develop, and retain the
conditions and flexible employment possibilities best performing employees, who respect our
that support a better balance of private and values and adhere to our purpose of unlocking
professional life consistent with our expertise the power of food to enhance quality of life for
as a leading Nutrition, Health and Wellness everyone, today and for generations to come.
company. Diversity and inclusion is an integral part
We respect and promote human rights in of Nestlé’s culture. We promote the inclusion
our operations and entire value chain, in line with of all communities, cultures and ages into our
the United Nations Guiding Principles and the workforce and seek to leverage the diversity of
Ten Principles of the UN Global Compact. thinking to drive creativity and innovation.
We take steps to identify and address any We are committed to enhancing gender balance
actual or potential adverse impacts arising and providing equal opportunities for everyone
directly or indirectly through our own activities at our company.
or our business relationships. We manage these We do not tolerate any discrimination due to
risks by integrating controls into our policies and origin, nationality, religion, race, gender, age,
internal systems, acting on the findings, tracking physical condition, sexual orientation, or engage
our actions, and communicating with our in or permit any kind of harassment based on
stakeholders about how we address impacts. any of the above or for any other reason.
We are committed to the International Bill of We treat each other with respect and dignity
Human Rights and the principles concerning and expect everyone to promote a sense of
fundamental rights set out in the International personal responsibility.
Labor Organization’s Declaration on the We respect international conventions
Fundamental Principles and Rights at Work. concerning employees’ rights. Externally, we
We are committed to the Tripartite Declaration act and engage with society and stakeholders
of Principles concerning Multinational in an inclusive way across our diverse business
Enterprises and Social Policy (ILO) and the OECD environments and entire value chain.
Guidelines for Multinational Enterprises.
In particular, we take action against any Safety and health at work
violations of human rights in our operations and We are committed to preventing
value chain, with zero tolerance to child labor, Consumer
accidents, injuries and illness related to work,
forced labor and modern slavery. and to protecting employees, contractors and
By the same token, we respect the right
Compliance
others Our
involved
people
along the value chain.
and freedom of association of our employees, Our policy on safe and healthy lives at work
including the organization and participation in establishes safety and health as an integral
Associations and Unions. component of our value of respect for ourselves
and for others around us. We recognize and
require that everyone plays an active role
Transparent in maintaining a safe and healthy working
interaction and environment. Our managers must promote
Value Chain
communication
awareness and knowledge of safety and health
to employees, contractors and anyone else
related to or impacted by our business activities.
Business Integrity
We monitor our performance through the
Nestlé Management System (NMS) for Quality
& Safety Health and Environment (SHE) to
assure a safe and healthy life in the workplace.
4 Corporate Business Principles
3. Value chain Value Chain
Responsible sourcing Environmental sustainability
We expect all of our suppliers to comply We commit ourselves to environmentally
with the Nestlé Responsible Sourcing Standard. sustainable business practices throughout
We verify supplier compliance with our our value chain. Inspired by nature, we are
requirements on a regular basis. committed to developing a circular economy
We are committed to implementing by developing recyclable or reusable packaging
sustainable agricultural practices that contribute materials, reducing food loss and waste and
to long-term production resilience, delivering exploring circular business models.
sustainable livelihoods, reduction of carbon At all stages of the product life cycle we
gas emissions, protection of biodiversity and strive to use natural resources efficiently.
the conservation and replenishment of natural We favor the use of sustainably managed
resources. We believe farmers should earn a renewable resources and target zero waste in
sufficient income to maintain a decent standard our operations. We are committed to reduce
of living. our greenhouse gas emissions and achieve net-
We encourage the dynamic transformation zero emissions by no later than 2050, in line
of our sourcing and related production activities. with the ‘Business Ambition for 1.5°C’ pledge
We expect our suppliers to act transparently including in our upstream value chain, where
and to commit to continuous improvement we will also support farmers and suppliers to
in their operations. Guided by our values rooted adapt to climate change and new environmental
in respect, we commit to the same principles in standards, as well as regenerative agricultural
our relationships with suppliers and expect them initiatives.
to act accordingly with their own suppliers. Through our commitments, we contribute
In this spirit of continuous improvement, to overcome global warming, reduce the use
we support the establishment of milestones of plastics and make its use sustainable.
to improve business practices, contribute We believe that access to water and sanitation
to intervention projects and implement is a basic human right. Together with other
requirements to improve business integrity, water users and partners, we are committed
labor standards, safety, health and to managing water resources in a way that is
environmental practices. ecologically sustainable, socially equitable and
economically beneficial.
Customers and business partners
We demonstrate honesty, integrity and
fairness to our customers.
In our business activities, we expect our
trade partners to adhere to business principles
consistent with our own. Should they demonstrate
a lack of adherence with any of our business
principles, we will request an open and
transparent discussion, establish corrective
actions or terminate the relationship, if
necessary. Conversely, we respect our partners’
reasonable standards.
Corporate Business Principles 5
4. Business integrity Business integrity
Ethics and integrity Privacy and ethical data management
The Nestlé Code of Business Conduct Nestlé respects the rights of individuals
specifies certain non-negotiable minimum in relation to their personal data and recognizes
standards in key areas of employee behavior, privacy as being a fundamental human right.
including integrity, compliance with laws, Nestlé’s commitment to protect personal data
conflicts of interests, antitrust and fair dealing, and privacy is reflected in our Global Privacy
bribery, corruption (UNGC Principle 10), Program. This Program ensures that privacy is
discrimination and harassment, and accurate embedded into our business operations and
reporting and accounting. In particular, we that the personal data we collect is processed
expect our employees and third parties in our lawfully and fairly, is kept secure against
sphere of influence to embrace the following unauthorized processing, unlawful or accidental
principles: destruction, loss or misuse, and is deleted when
• Nestlé acts legally and honestly, disclosing it is no longer required.
and resolving conflicts of interests in a fair We strive to be transparent with individuals
and transparent manner. in relation to how we process their data and
• Nestlé competes in full compliance with to provide them with meaningful control over
all applicable antitrust, competition and fair how their personal data is collected and used,
dealing laws, systematically rejecting anti- including responding to their requests and
competitive activities. Within the bounds of complaints.
applicable law, we support collaboration with We avoid using data and technology in ways
those sharing our concerns on appropriate that are unethical or could lead to discrimination,
issues to work together towards shared exploitation or cause harm. We are committed
solutions. to the ethical use of Artificial Intelligence based
• Nestlé prohibits its employees, service on the following: (I) Transparency, (II) Diversity,
providers and agents from engaging in bribery Non-Discrimination and Fairness, (III) Privacy
and corruption, along with conduct that could and Security, (IV) Environmental and Social
give rise to the appearance or suspicion of Wellbeing, (V) Accountability and (VI) Technical
such illicit activities. Robustness.
• Nestlé ensures the accuracy of financial
records and alignment with Nestlé’s
accounting standards to fulfill our obligations
to shareholders, regulators and other Consumer
stakeholders.
Compliance Our people
Transparent
interaction and Value Chain
communication
Business Integrity
6 Corporate Business PrinciplesTransparent
interaction and
5. Transparent interaction communication
and communication
Internal interaction and communication External engagement and advocacy
We promote an inspiring, innovative, Based on our purpose of unlocking the
transparent and open work environment, where power of food to enhance quality of life for
each employee is respected, has the liberty to everyone, today and for generations to come,
engage, create and contribute, always with the Nestlé understands and believes that it is
ability to speak up. Therefore, everyone in the essential to carry out responsible stakeholder
organization is encouraged to speak openly on engagement and advocacy to bring in relevant
any matter. Each employee is free to discuss any external views on matters related to its business
matter with his or her line manager and, in order activities and operations in ways that foster
to ensure the continuous evolution of such work collaboration, knowledge sharing, open
environment, can approach Human Resources, discussion, and deep dialogue. We see ourselves
Compliance or access our Integrity hotline with as part of Society.
full confidentiality. When engaging with public authorities
in relation to public policy development and
implementation, Nestlé is committed to
transparent, responsible interactions.
Corporate Business Principles 76. Compliance Compliance
The Nestlé Corporate Business Principles are Internal and external Nestlé grievance
mandatory for all Nestlé employees, and are mechanisms are widely accessible, so that both
supported by our Code of Business Conduct our employees and external stakeholders can
and other policies. We integrate them into raise concerns about potential instances of non-
our business planning, activities, operations, compliance. We investigate all concerns raised
performance reviews and auditing. Where our and prohibit retaliation against any employee for
own principles and policies differ from local such reports made in good faith.
legislation the higher standard applies.
Our Compliance Program supports the Monitoring and Reporting
continuous development and implementation The Corporate Business Principles are
of the Nestlé Corporate Business Principles associated with specific principles, policies and
based on ethics, integrity and a “doing the right standards. Our CARE auditors and our internal
thing for the right reason” mindset. auditors regularly audit our practices against
We assess compliance regarding human these commitments.
rights, conditions of work and employment, When assessing our internal control systems,
safety, health, environment and business our external auditors consider how the Corporate
integrity through our CARE Program, which Business Principles fit into the overall corporate
relies on an independent external audit network. governance framework of the Group.
We also assess progress on our societal, Findings and recommendations are
responsible sourcing, quality, responsible reported through the Board Audit Committee
marketing and other commitments through to the Nestlé S.A. Board of Directors.
independent external audits and certifications.
We continuously improve communications,
processes and training in order to ensure
adherence to the Nestlé Corporate Business
Principles and to correct gaps whenever
necessary with zero tolerance for instances
of non-compliance.
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