Nestle Sustainability Case Study

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Nestle is a worldwide brand on beverage production with a wide popularity and support. However, it was disreputable for its sourcing activities. 21st of September is the day of ‘Anti Nestle Day” annually. In 2005, it got the award of ‘The Nastiest Company’ due to the abusing of water resources as well as overproduction of Capsule Coffee in the sourcing aspect, which hindered the sustainability development.

Sustainability refers to the principle of the current production mode without harming the future development. Under the economic, social and environmental aspect, sustainability required feasibility equity to maintain. Firstly, nestle purchases the water resources in India Ocean for making beverage with a low cost of 0.000087 USD per gallon,
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The convenience of capsule coffee arouses great attention, and the wide popularity is shown with a global sales volume of 13.45 billion USD. But the packaging of the Capsule coffee is not environmental friendly, it consists of aluminum, this material is so difficult to be dispose with a time length of 150 -500 years required. From 1986 until now, the globe had already consumed 27 billion of Coffee Capsule with ninety thousand of plastic waste produced. Although Nestle recognize the problem of solid waste. It also claims that they have cooperated with a recycling company that consumers could mail the used capsule back to Nestle and recycling job will be handled. This measure is not practical. Firstly, it will just encourage citizens to produce much more waste with mailing. Even the manager of Oxfarm Australia criticized “This means (mailing recycle service) is to increase the cost of waste production, why don’t we chose organic coffee capsule instead?” (Julia.S …show more content…
As promoted by Oxfam and the Fairtrade labelling Organizations International (FLO), Coffee and Farmer Equity Practices are prompted to provide 16 million USD are provided annually to the farmers of coffee bean as a subsidy. Even though the challenges brought by fair trade will lead to decrease in revenue, affecting the stock value of Nestle, it is an ideal way to promote Social Cooperate Responsibility, save Nestle from the poor reputation. The executive officer of FLO said ‘The plan of Fair Trade can enable consumers to morally agree with cooperation’s’ behavior, choose to purchase their coffee with a positive image.’ (Paul.R 2009) To conclude, the problem of exploitation can be effectively deal

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