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“How shall freedom be defended? By arms when it is attacked by arms, by truth when it is attacked by lies, by faith when it is attacked by authoritarian dogma. Always, in the final act, by determination and faith.”

― Archibald MacLeish

Friday, March 28, 2014

Paul Bulcke and Nandu Nandkishore: How do you match your words with action in Nestle Philippines?

"Ach, I want NESTLE to be respected. I don't say "loved",
that's stupid! Paul Bulcke, Nestle CEO

Paul Bulcke, Nestle CEO



From The Focus Magazine

The Focus: You mentioned showing respect for other cultures. How is this reflected in the company’s daily business?

Bulcke: Take our Corporate Business Principles. They form the basis for our business practices across the Group, and we have had them translated into over 50 languages. Of course we could have made English our “official” language as many other globally active corporations have done. The translation effort wasn’t merely a sign of respect for other languages and cultures, however – we wanted to communicate the values and practices we consider important to every single one of our employees. And using their native language is the first step.
From Business Today
"We build trust every time someone buys our products. This happens at least one billion times a day," he said. There is more to it. Trust is also built by the way the company manages its employees, deals with the civil society and governments. Nestle, he said, is fanatical when it comes to ensuring quality and total compliance with ethics." Nandu Nandkishore, Executive Vice President, Nestle S.A 
Wealth Without Work
Pleasure Without Conscience
Knowledge Without Character
Commerce (Business) Without Morality (Ethics)
Science Without Humanity
Religion Without Sacrifice
Politics Without Principle
Nestle Corporate Business Principles
1. Nutrition, Health and Wellness
Our core aim is to enhance the quality of consumers lives every day, everywhere by offering tastier and healthier food and beverage choices and encouraging a healthy lifestyle. We express this via our corporate proposition 'Good Food, Good Life'. 
2. Quality Assurance and product safety
Everywhere in the world, the NestlĂ© name represents a promise to the consumer that the product is safe and of high standard. 
3. Consumer Communication
We are committed to responsible, reliable consumer communication that empowers consumers to exercise their right to informed choice and promotes healthier diets. We respect consumer privacy. 
4. Human rights in our business activities
We fully support the United Nations Global Compact’s (UNGC) guiding principles on human rights and labour and aim to provide an example of good human rights’ and labour practices throughout our business activities. 
5. Leadership and personal responsibility
Our success is based on our people. We treat each other with respect and dignity and expect everyone to promote a sense of personal responsibility. We recruit competent and motivated people who respect our values, provide equal opportunities for their development and advancement, protect their privacy and do not tolerate any form of harassment or discrimination. 
6. Safety and health at work
We are committed to preventing accidents, injuries and illness related to work, and to protect employees, contractors and others involved along the value chain. 
7. Supplier and customer relations
We require our suppliers, agents, subcontractors and their employees to demonstrate honesty, integrity and fairness, and to adhere to our non-negotiable standards. In the same way, we are committed towards our own customers. 
8. Agriculture and rural development
We contribute to improvements in agricultural production, the social and economic status of farmers, rural communities and in production systems to make them more environmentally sustainable.
9. Environmental sustainability
We commit ourselves to environmentally sustainable business practices. At all stages of the product life cycle we strive to use natural resources efficiently, favour the use of sustainably-managed renewable resources, and target zero waste. 
10. Water
We are committed to the sustainable use of water and continuous improvement in water management. We recognise that the world faces a growing water challenge and that responsible management of the world’s resources by all water users is an absolute necessity. 



The Nestle Case Study In The Philippines
Consider this case involving the Company and a distributor, Forefront IT Trading Corp., owned by Filipino investors who are now complaining of unfair and unethical business practices by their foreign partners. In a disgusting display of corporate bullying, the multinational refused to pay Forefront's more than P12 million in collectibles unless it signed a Release and Quit Claim dropping all other legitimate claims. This when a ranking official of the foreign firm had promised, verbally, the settlement of all just and reasonable claims.

The amount consisted of close to P1 million in withheld expanded value-added tax (EVAT) for 2007 that the multinational should refund to Forefront, plus P11.07 million representing performance incentives, advances made by Forefront for the company's promotional activities and cost of products taken back by the multinational.

The multinational allegedly took back the products in Forefront's possession after terminating the distributorship agreement when the latter protested the meddling and unprofessional conduct of the multinational's sales official assigned to it. The distributor had wanted a replacement.

It turned out that the multinational's sales official was carrying on an extramarital relationship with a Forefront executive, a married man. She exploited this relationship to secure unusually large orders of her employer's products and even slow-moving items that Forefront had to dispose of even at cost, even to the extent of forgoing profits. Santa Banana, she even succeeded in passing on to Forefront some poorly paying accounts not included in the original agreement. All these eventually resulted in huge losses to the distributor.

This came to a point where Forefront experienced difficulties in meeting its payroll, the 13th month pay for December 2007, and separation benefits for some 80 employees who had to go as a result of severe financial stress.



When advised of the affair and the resulting conflict of interest situation, the latter simply dismissed the matter as "a purely personal affair between two consenting adults," and ignored the request that their sales official be replaced. Yet, the multinational's own Corporate Business Principles and Code of Conduct states, among other things, that the company "requires its management and employees to avoid even the appearance of impropriety in its business relationships on behalf of the company."