Nestle ‘shared value’ prize, 500,000CHF. Nestle profits in last year, 3,420,000,000CHF. A value sharing of 0.0146 of a percent of profit. Tax deductable of course.
So the question really should be the extent to which Nestle is changing the way it does its normal business. As I noted in the Journal of Corporate Citizenship in 2008, despite the rhetoric about “shared value” being a new strategy for core business, the numbers do not add up.
“Given that many of the examples offered by companies of how they can address social challenges through business are in practice making less of a rate of return than that expected from the business as a whole, are not scalable, and are dependent on government or NGO subsidy through partnership, we may question whether they really embody a new strategy. Perhaps they could be more appropriately understood as an advanced form of an established strategy: effective public relations through corporate philanthropy.”
In the two years since I haven’t seen much indication of a systematic attempt to change strategy.
As time goes buy, will more people have to conclude it isnt possible for a giant to be anything but greedy?
Or do you think there is real change within, real opportunity from, our largest multinationals?
Debate it at justmeans.com or below. And if you deserve support, then apply for the prize! (Think of Robin Hood).
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Professor Jem Bendell 