Thais love their cuppa coffee, and in the sweltering heat, a glass of ice coffee can be especially refreshing. Street vending in Thailand is part of local culture and one can find a lot of independent street stalls selling beverages. In 2006, Nestlé discovered the huge potential of street Baristas and invited a group of vendors to discuss how Nestlé could create value for them and improve their standard of living Most vendors were keen to learn how to provide professional service and market their products better. Thus, Nestlé organised a workshop for vendors who were trained on a variety of issues ranging from basic operations such as safety and hygiene, taste, decoration and merchandising to retaining customer base. In the past three years, this initiative has expanded tremendously, with a huge wave of interest in 2008-2009 following a massive layoff from factories due to the economic downturn in Thailand. Nestlé has created income opportunities for 750 new street entrepreneurs who sell beverages in kiosks, push-carts, or mopeds. As street vending is not taxed, a vendor can earn as much as a factory worker working 6 days a week, and on a very good day, earn as much as a management executive. This programme is now supported by the Ministry of Labour in Thailand and co-sponsored by the Bank of Agriculture and Agricultural Cooperatives (BAAC), and has been selected by the Thai Government as part of the Fast Track Fund Support Programme for the unemployed. Nestlé hopes to recruit 600 new entrepreneurs by the end of 2009 and is aiming to reach 1,000 new vendors in 2010.  A win-win approach for the street vendors as well as for Nestlé!

   Former UN Secretary General Kofi Annan recently addressed an audience of around 400 people at the Nestlé Creating Shared Value (CSV) Forum in Rio de Janeiro, Brazil. Mr Annan stressed the importance of CSV emphasising that it is a positive way of being responsible – whether by transferring technology or by making a contribution against climate change, or by efficiently using energy. He believed the CSV model could be used as a model by rich and poor countries and said it is possible to make profit with sustainability while giving something to society. He suggested that the best way to make sustainability a shared value is to exploit resources rationally, believing that sound societies have to be based on peace, security, economical balance, respect for human rights and the rule of law – which should not be left to governments alone. Mr Annan also sent a message to young people motivating them to play a constructive role in their communities, to become good global citizens, make good choices and have an active voice in the world.

Nestlé’s priority has always been long-term development, not short-term gains. In early October, Nestlé Chairman Peter Brabeck-Letmathe discussed his concern about the accelerating deterioration of the environment, our natural resources, and the consequences of that deterioration on global development. According to the WWF and Global Footprint Network, 25% of the world population faces water scarcity, and household water needs are predicted to rise by 61% by 2050. If present trends continue, the livelihoods of one-third of the world population will be affected by water stress in 2025. In his presentation Mr. Brabeck-Letmathe talks about how sustainability is our responsibility to meet the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable development does imply limits in technology and resources, but it is an important process of change -- where decisions are made that are consistent with the future, as well as with present needs. I think we all share Mr. Brabeck’s belief that, in order to create value for our shareholders, we need to create value for the farmers that supply us, our employees, our consumers and in the communities we operate. An important step in creating shared economic and social value is demonstrating responsible behavior that is mindful of the future. Download Mr. Brabeck’s presentation here: Why CEOS should be worried about the environment - Sept 2009

Professor Peter Shergold, Macquarie Group Foundation Chair, Centre for Social Impact, directs a collaboration in Australia that examines the current state of the social economy - including the effect of the recession on non-profit organizations, philanthropy, and corporate social responsibility. Shergold points out that the global financial crisis puts a strain on resources when demand for donations and giving is at its highest. He says that while some detractors think this signals the end of CSR, others believe now more than ever businesses have the opportunity to boost their reputation by remaining firmly committed to a responsibility and sustainability platform. Shergold is cautiously optimistic about the future of CSR, he believes consumers are looking for companies with transparent, sustainable, and reputable business practices; and that embedding these values internally and externally will create shareholder and social value.

The Nomination Period for the Nestlé Prize in Creating Shared Value will close on October 31^st and we would welcome applications in the field of nutrition, so do not hesitate to nominate worthy projects or encourage self-nominations! Examples of nutrition entries could be found in the fields of food science and technology, fortification, nutrition education and healthy lifestyles programmes, or other initiatives aimed at fighting malnutrition. The nomination form is available here. The Nestlé Prize in Creating Shared Value seeks to encourage and reward innovative approaches to the problems of nutrition, water, or rural development. Information on how to participate can be found on http://www.nestle.com/CSV/CSVatNestle/CsvPrize/About.htm We have already received many great nominations from all over the world. Most projects nominated so far seek to improve access to and management of water or improve the lives of farmers and rural communities. Nestlé will commit to the Prize winner an investment of up to CHF 500,000 for a specified period of time, to assist in the development and scale-up of the innovation. You can also help us spread the word about the Nestlé Prize by talking about it on your blog, Twitter, Facebook or LinkedIn or by sending the Nestlé Prize flyer (attached below) to your local charity, NGO or community group. Creating Shared Value Prize Brochure (PDF)