Multinational corporations on the benefits of CSR and challenges of CSJ: A case study of Nestle

Studies have indicated that businesses with successful Corporate Social Responsibility (CSR) initiatives generate higher profits than those without such initiatives. In order to strengthen their brand and please consumers, businesses have depended on these initiatives for the past 50 years. These initiatives include diversity and inclusion work, employee volunteerism, philanthropic endeavors, and social issues marketing(Lily Zheng, 2020). But standards have been gradually raised in todays society. George Floyd was killed in Minneapolis by a white police officer, sparking one of the biggest protest movements in recent memory (Evan Hill et al., 2020), and the general outcry against the conventional CSR playbook indicates that outdated best practices might not be as useful as they once were. These days, what I refer to as Corporate Social Justice (CSJ) is what customers and employees want more than just Corporate Social Responsibility.

Table of Contents

I Introduction 1

I 1 Background 1

I 2 Research Problems 2

I 3 Objectives 2

I 4 Relevance 3

I 5 Outline 3

II Literature Review 4

II 1 Prior Knowledge and Research Gap 4

II 2 The concept 8

II 2 1 Corporate social responsibility (CSR) 8

II 2 2 Corporate Social Justice (CSJ) 9

II 3 The relationship between CSR and CSJ, the case of using child labor 9

III Methodology 11

III 1 Method 11

III 2 Nestlé Case 11

IV Discussion 13

V Conclusion 14

V 1 Summary findings 14

V 2 Implications 14

V 3 Recommendations 15

V 4 Further Research 15

VI References 16

Multinational corporations on the benefits of CSR and

challenges of CSJ: A case study of Nestle

I Introduction

I.1 Background

Studies have indicated that businesses with successful Corporate Social Responsibility (CSR) initiatives generate higher profits than those without such initiatives In order to strengthen their brand and please consumers, businesses have depended on these initiatives for the past

50 years These initiatives include diversity and inclusion work, employee volunteerism, philanthropic endeavors, and social issues marketing(Lily Zheng, 2020) But standards have been gradually raised in today's society George Floyd was killed in Minneapolis by a white police officer, sparking one of the biggest protest movements in recent memory (Evan Hill et al., 2020), and the general outcry against the conventional CSR playbook indicates that outdated best practices might not be as useful as they once were These days, what I refer to

as "Corporate Social Justice (CSJ)" is what customers and employees want more than just Corporate Social Responsibility

A multinational corporation based in Switzerland, NESTLÉ specializes in businesses that process food and beverages Anglo-Swiss Milk Company was merged to form the Nestlé Company in 1905 Henri Nestlé founded it, along with George and Charles Page and Farine Lactee Nestlé in 1899 The main office is in Vevey, Switzerland's Vaud region With a ranking of 64th in the 2017 Fortune Global 500 and 33rd in the 2016 Fortune Global 2000 public companies list, it is the largest food company in the world 447 companies make up the company There are roughly 339,000 workers and 189 different countries where machines are situated(McKerahan, 2024.) This case study delves into Nestlé's journey in adopting CSR initiatives that generate revenue, profit for the company and promote social responsibility, while navigating to a remarkable event due to the the development context of Corporate Social Justice (CSJ), specifically the case of Nestlé being accused of modern slavery in the form of child labor (Cartier, 2022) In this case, 8 children perceived they were being used slave labor in the cocoa industry in the Ivory Coast

I.2 Research Problems

Corporate Social Responsibility (CSR) has grown in significance for businesses over the past few years CSR is a topic that is frequently discussed in both the business and academic domains (Samuel O Idowu et al., 2015) CSR has become an almost inseparable part of multinational corporations The purpose of implementing CSR is to build the company's brand and create positive values for the social community However, with the events that have occurred in recent years, too much focus on CSR has led to a lack of recognition of corporate social justice (CSJ) Implementing CSR is necessary, but if we forget about CSJ, it will cause imbalance for businesses and society

The Nestle Group has worked hard to engage in CSR initiatives in recent years, particularly

in the areas of labor and human rights, but they haven't always met their obligations It might

be important to examine how modern slavery is discussed in a particular context in order to comprehend why it continues to be a complicated and hidden issue Very little research has been done on the topic of modern slavery and the role of MNCs, despite the fact that many books and articles have been written on the subject

I.3 Objectives

Previous research articles mainly studied CSR so there are still limitations on CSJ Many multinational companies have been accused of exploiting and exploiting child labor such as the event: "Mars, Nestlé and Hershey face child slavery lawsuit in the US" (Oliver Balch, 2021), and it is unclear why MNCs are able to avoid being involved in modern slavery and why there isn't more being done to end it CSJ research on child labor inequality and how discussing it can help gain new insights Therefore, the objective of this study is to go beyond talking about the advantages of CSR and supplement the existing knowledge by studying how to discuss the event "Nestle was accused of using child labor in its wages" Cocoa harvest in Africa's Ivory Coast"

I.4 Relevance

As stated previously, the topic of corporate social justice has been overlooked by many and has not been thoroughly researched Therefore, studying the CSJ activities of MNCs in the form of child slavery on this issue is practically relevant now This will highlight the importance of this topic and make it better known so that more research can be done on the topic

I.5 Outline

This article is divided into five major parts The next section will include a literature review that will detail the literature reviews to understand the existing research and perspectives related to Nestle and Corporate Social Justice, providing perspectives by previous scholars to add to the understanding of the subject The third part explains the research methodology used, along with clarifying the collection and analysis of events that occurred at the company The fourth chapter presents the results of the analysis and discusses social issues The final chapter will draw conclusions based on the results of chapter four and discuss conclusions and recommendations for future research

II Literature Review

II.1 Prior Knowledge and Research Gap

Although significant progress has been made in understanding the role of Corporate Social

Responsibility (CSR) in multinational corporations (MNCs), there are still notable gaps in

knowledge and area that needs further research Additionally, the emerging discourse on

Corporate Social Justice (CSJ) introduces new dimensions and complexities that require

deeper exploration This section highlights some key gaps in the existing literature and

identifies future research directions Although CSR has been widely studied, research on the

integration of CSR and CSJ frameworks in the context of MNCs remains limited Existing

studies often consider CSR and CSJ as separate constructs, ignoring their linkages and

potential synergies Future research should explore how MNCs can effectively integrate CSR

and CSJ principles into corporate strategy and operations to achieve comprehensive

sustainability goals

There is growing recognition of the importance of intersectionality and diversity in CSR and

CSJ discourse However, existing research often ignores the intersecting aspects of social

identity, such as race, gender, ethnicity, and socioeconomic status, in shaping social impact

and behavior micro-enterprise of MNC Future research should adopt an intersectional lens

to examine how intersecting forms of privilege and marginalization influence MNCs' CSR

and CSJ strategies and outcomes

Table 1 Previous studies on multinational companies implementing CSR and CSJ

solutions N

o

year

Gap Results/ Findings Solutions

1 Nestlé’s war on two fronts:

A case study into the child

labour accusations against

Nestlé

(Tijmen Kampschöer, 2022)

This study has several

limitations, some

of which occur because the research will be conducted in a qualitative

manner

Additionally, the

The findings confirm that Nestlé has become more profitable in times when they were using child labour, which is seen as a form of modern slavery

NGOs and Nestlé have proposed solutions to address the root causes of child labor in cocoa farming, including the implementation of the TNCP program This program aims to enhance monitoring, increase accountability, provide

study will also be

conducted by one

person and

therefore without

interpretation

from other

researchers

Another

limitation is the

data that can be

collected, which

is limited to

archival data

because of the

sensitivity of the

subject of modern

slavery

training, improve plant expertise, enhance traceability, and establish social projects However, TNCP is not yet at a scale

to effectively help the Ivorian people, and it lacks clear goals While Nestlé aims to improve cocoa farm quality and efficiency, some argue it may prioritize its own profits over fair pay for farmers Nevertheless, there is potential to combine economic success with social responsibility

Accountability for TNCP lies partly with consumers and auditing bodies, although Nestlé has been criticized for not fully acknowledging failures Responsibility for combating child labor

is seen as shared among various actors, including communities,

cooperatives, suppliers, and Nestlé itself, with government involvement also crucial A clear understanding of child

labor and its definition is vital, with Nestlé and others developing monitoring systems to address this However, Nestlé has faced accusations of resisting regulation and transparency, despite acknowledging their importance in combating child labor Increasing traceability and regulation are seen as key steps, not only for addressing human rights issues but also for building consumer trust and meeting demands for responsibly sourced products

2 A sticky chocolate

problem: Impression

management and counter

accounts in the shaping of

corporate image

(Perkiss et al., 2021)

The broader fight against child labor and forced labor

is not being won, despite the counterarguments , and Nestle's frontstage

performances continue to be

manipulation

Focuses on the issues of child labor, forced child

unsustainable farming practices

in the chocolate industry, and in particular

discusses Nestlé's Ivory Coast cocoa supply chain We analyze corporate

disclosures, relevant counter accounts and subsequent

responses in new and old media as a dynamic

communication process

3 RESEARCH ON

AWARENESS AND

IMPLEMENTATION OF

CORPORATE SOCIAL

RESPONSIBILITY IN A

MULTINATIONAL

VIETNAM CASE

STUDY: NESTLE

VIETNAM Declaration of

Originality and Word

Count

(Truong Thi Thu Thanh &

Thi Thu Thanh, 2011)

There is a high potential for bias

in the responses

as respondents

exaggerated their commitment and understanding of CSR, the study used a small sample With large numbers of managers,

employees, and consumers in many places going in and out every day, small samples may not

be sufficiently representative of the population

Finally, the scope

of the research is still narrow The

This article aims

to understand the awareness of multinational organizations in Vietnam about CSR, and whether consumers'

attitudes towards social

responsibility are positive or not In addition, another objective is to understand the implementation and reporting of CSR at a multinational company operating in Vietnam by asking respondents' opinions and understanding

survey was only conducted with managers and employees at Nestlé Vietnam and consumers in Hanoi

4 Nestlé's Corporate Social

Responsibility CSR

(Piela, 2008.) There were law

violations or riots caused by Nestle Company's

activities in the early years

Nestle was accused of creating its own laws and acting according to its own principles, without regard to society

Reviewing CSR theory as well as accurately

analyzing the factors that influence the formation of CSR, delving deeply into Nestle's Corporate Social Report and the purpose will highlight the main issues considered

by the company,

II.2 The concept

II.2.1 Corporate social responsibility (CSR)

There is a wide range and complexity in the definition of corporate social responsibility H.R Bowen, an expert in organizational research, first mentioned the term "corporate social responsibility" in his book "Social responsibilities of the Businessmen" almost fifty years ago According to Bowen, corporate social responsibility is the duty of business owners to protect the rights and interests of others They also have a duty to be altruistic and make up for any losses their companies cause when they negatively impact society (Bowen, 2013) The most complete and popular model of corporate social responsibility among the many available is the CSR (Corporate Social Responsibility) pyramid model developed by A Carroll in 1991 Consequently, there are four categories of business societal responsibilities

that can be distinguished: legal, ethical, charitable, and economic Numerous facets of society are impacted and influenced by these four groups, including communities, investors, workers, consumers, customers, and other stakeholders (Carroll, 1991)

II.2.2 Corporate Social Justice (CSJ)

In the past, businesses employed corporate social responsibility as a strategy to address racism and socioeconomic disparities "CSR is a self-regulated framework that has no legal

or social obligation for corporations to actually create positive impact for the groups they purport to help," as the Harvard Business Review puts it The leadership of the company, investors, staff, and anybody else with a stake in the agency are all involved in corporate social justice, on the other hand This new strategy "requires deep integration with every aspect of the way a company functions" in order to address systemic inequality Institutions are working with the Center for Justice Research (CJR) to create their own Corporate Social Justice plans in order to satisfy the demands of increased corporate accountability and to yield measurable improvements in social justice (Center for Justice Research, 2021)

II.3 The relationship between CSR and CSJ, the case of using child

labor

Complementary but different approaches to addressing social and environmental issues in a business context define the relationship between corporate social justice (CSJ) and corporate social responsibility (CSR) Corporate Social Responsibility (CSR) has conventionally centered on voluntary endeavors executed by corporations to mitigate their adverse effects on society and the environment while augmenting their beneficial contributions These endeavours are frequently propelled by ethical considerations, stakeholder expectations, and business imperatives In contrast, CSJ adopts a more proactive and justice-focused viewpoint, placing a strong emphasis on social inclusion, the pursuit of equitable outcomes, and systemic change as a means of addressing the underlying causes of inequality and injustice Parity While philanthropy, moral business conduct, and stakeholder engagement are the main concerns of CSR, CSJ goes above and beyond philanthropy to promote social justice, human rights, and structural reform The promotion of corporate responsibility, sustainability, and social welfare are the common objectives of CSR and CSJ, despite their differences; their combination can result in more effective corporate strategies more influential and diverse companies that put sustainability and profit first in the effort to create a more fair and sustainable global environment