Swiss food giant Nestle is trying to improve the performance of their suppliers of agricultural products to improve quality, reduce costs, and contribute to sustainable development. Its initiatives focus primarily on coffee, cocoa and milk. Nestle managers argue that the initiatives provide both private benefits (improved quality and reduced costs for companies) and social benefits (higher incomes for farmers, better environmental quality in agricultural areas). Issues include the ways in which these programs create value for shareholders, the manner in which they should be on the market, and their effectiveness in addressing social issues. "Hide
by Forest Reinhardt Source: Harvard Business School 24 pages. Publication Date: December 10, 2004. Prod. #: 705018-PDF-ENG
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