Subject category:
Production and Operations Management
Published by:
Ivey Publishing
Version: 2015-09-29
Length: 18 pages
Data source: Field research
Abstract
Nestl' SA, in an effort to integrate sustainability into its business model, has recently established the NESCAF' Plan. This multi-faceted plan is based on creating shared value. It emphasizes sustainability as a source of competitive advantage and wealth creation, rather than viewing sustainability as a cost to be incurred to minimize risks and protect the company's reputation. Nestl's creating shared value manager in the Beverages strategic business unit faces two core dilemmas in executing this plan in China. In the short term, should Nestl' purchase green coffee beans that are socially or environmentally certified (eg, Fairtrade), or should it instead expand its efforts to work directly with farmers to develop better farming practices? Longer term, would a backward integration into coffee farming provide a better means of ensuring that sustainability is embedded in the business model?
Location:
Size:
Large
Other setting(s):
2013
About
Abstract
Nestl' SA, in an effort to integrate sustainability into its business model, has recently established the NESCAF' Plan. This multi-faceted plan is based on creating shared value. It emphasizes sustainability as a source of competitive advantage and wealth creation, rather than viewing sustainability as a cost to be incurred to minimize risks and protect the company's reputation. Nestl's creating shared value manager in the Beverages strategic business unit faces two core dilemmas in executing this plan in China. In the short term, should Nestl' purchase green coffee beans that are socially or environmentally certified (eg, Fairtrade), or should it instead expand its efforts to work directly with farmers to develop better farming practices? Longer term, would a backward integration into coffee farming provide a better means of ensuring that sustainability is embedded in the business model?
Settings
Location:
Size:
Large
Other setting(s):
2013