Nestlé India: Creating a New CSR Strategy
(6 pages of text)
In 2013, the Indian government passed a new Companies Act that mandated a two per cent spend on corporate social responsibility (CSR). This amount needed to be spent on activities over and above the normal course of business. As a result, the senior vice-president of corporate affairs for Nestlé India was facing a complex problem. He needed to revisit all existing programs—the ones covered under the normal course of business and the ones that had no relationship with the normal course of business—and then decide which ones to extend further. Any decision to discontinue programs would have an adverse impact on the company and on the many people who had come to depend on them. What was he to do?
This case is suitable for a module on structuring CSR and sustainability in an MBA-level course. The case analysis gives students an opportunity to
- understand the links between business strategy and a business’s social responsibilities;
- evaluate the process of creating a comprehensive sustainability and CSR strategy in a multinational firm that needs to follow global business strategies as well as comply with local laws; and
- appreciate the interplay between an organization’s various functions and CSR activities.
India, Large, 2017
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