Nestle’s success in India: Shared value or conscious capitalism?


The 2 Percent Project

It is 1961 in Moga, Punjab and Nestle is launching its operations in India introducing its founder Henri Nestle’s covenant for social responsibility to “positively influence the social environment.” Along the same time,  late Indian prime minister, Indira Gandhi was sowing the seeds of her legacy through India’s green revolution, providing higher yield crops for agriculture.

Five decades later, Nestle has played a critical role in “rescuing a million people from crushing poverty,” according to a study titled “Creating shared value- Impact of Nestle’s Moga factory on surrounding area” by the Third World Center for Water Management.

Starting with 180 farmers supplying milk in 1961, Nestle launched its corporate social responsibility initiatives providing an assured income to farmers, improving socio-economic conditions and creating loyalty among the local population.The factory now employs over 2400 people, has over 86,000 suppliers and indirectly impacts another 45,000 individuals.

The Moga plant is more hygienic than the nearby Government-run hospital. Today, villagers…

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