Teaching Note | HBS Case Collection | March 2013

Nestlé: Agricultural Material Sourcing Within the Concept of Creating Shared Value (CSV) (TN)

by Ray A. Goldberg and Matthew Preble

Abstract

In December 2012, Hans Jöhr, Nestlé's head of corporate agriculture, was preparing to meet with the company's board of directors to discuss its vision for the future related to sustainable agriculture. Nestlé's continued success depended on its ability to access the raw agricultural ingredients essential for the operations of the world's largest agribusiness in a secure, sustainable, and ethical way. Doing so not only ensured the future wellbeing of Nestlé, but of its suppliers, partners, and customers as well. The world's changing climate, emerging health crises around hunger and obesity, and an increasingly urbanized population presented Nestlé with numerous challenges for the future. Other emerging issues such as the importance of food security, consumer demands for more nutritious food, increased collaboration between public and private entities, consolidation within the global agribusiness community, new sources of product origination, and the rise of new technologies, among many other trends, would all influence how Nestlé did business in the future. The company had focused on the strategic issues of nutrition, water, and rural development, and had started a number of programs to begin addressing these challenges. As he sat in his office, Jöhr considered how the company was going to ensure the sustainability of its supply, and how Nestlé planned to work with the entirety of the supply chain to ensure proper stewardship of the land and water resources the chain managed, while also introducing new technologies, engaging with consumers on the role food played in their overall health, working with both small- and large-scale farmers in managing their operations in a sustainable way, and verifying that its programs were all working towards these diverse goals.

Keywords: Agribusiness; sustainability; Sustainability Management; Agribusiness; Environmental Sustainability; Food; Nutrition; Agriculture and Agribusiness Industry;

Citation:

Goldberg, Ray A., and Matthew Preble. "Nestlé: Agricultural Material Sourcing Within the Concept of Creating Shared Value (CSV) (TN)." Harvard Business School Teaching Note 913-412, March 2013.