International Journal of Current Advanced Research

ISSN: O: 2319-6475, ISSN: P: 2319-6505,

6505, Impact Factor: SJIF: 5.995
Available Online at www.journalijcar.org
Volume 6; Issue 12; December 2017; Page No. 7870-7876
DOI: http://dx.doi.org/10.24327/ijcar.2017.7876.1244
http://dx.doi.org/10.24327/ijcar.2017.
Research Article
AN ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY OF GOOGLE AND NESTLE
Tharani S *
Saveetha School of Law, Saveetha University
AR T IC L E I NF O AB ST RA CT
Article History: Since the times of the barter system to present era of plastic money, the mankind has
Received 15th September, 2017 stridden out long path. There is no doubt in this that “profitability” has always been the
Received in revised form 25th primary force and main motivation behind all this development. The concept of C Corporate
October, 2017 Social Responsibility has evolved over the years. It is today considered a vital part of the
Accepted 23rd November, 2017 strategic business of large corporations. Corporate Social Responsibility is a way of
Published online 28th December, 2017 conducting business, which makes corporate entities socially respons
responsible citizens, visibly
contributing to the social good. Socially responsible companies do not limit themselves to
Key words: using resources to engage in activities that increase only their profits. They use CSR to
CSR – Profitability – GOOGLE – NESTLE – integrate economic, environmental and social objectives
ves with the company’s operations and
growth.
Business Model.
This present study attempts to investigate about the core concept of corporate social
responsibility (CSR), and finding out its scope taking the case study of the GOOGLE and
NESTLE.

Copyright©2017 Tharani S. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted
use, distribution, and reproduction in any medium, provided the original work is properly cited.

INTRODUCTION The Companies Act, 2013 has expanded the scope by bringing
many companies in this fold of the working of corporate
No success in material terms is worthwhile unless it serves houses towards the activities of Corporate Social
the needs or interests of the country and its people”. Responsibility.
- JRD TATA
Objectives
The economic growth is achievable only in i the course of
utilization of inputs available in the environment and society. 1. To know about the provisions in Companies Act, 2013
The harnessing of natural resources has a direct impact on the with regard to the Corporate Social Responsibility
economy, the environment and society at large. The Corporate (CSR).
Social Responsibility and Corporate Governance are 2. To understand the mandatory requirement of CSR in
inextricable
nextricable in today’s going perception of the society. The today’s scenario.
Corporate Governance and business ethics make the concept of 3. To analyse the activities of CSR of GOOGLE and
Corporate Social Responsibility inevitable. As Winston NESTLE.
Churchill once said “With great power comes great Hypothesis
responsibility”, social responsibility
sibility cannot be avoided.
The Corporate Social Activities of Google is comparatively
With the passing of the enactment of Companies Act, 2013, better and epitomizes the provisions mandated by the
India has become the portent to mandate spend on Corporate Companies Act, 2013 when compared to Nestle.
Social Responsibility activities through the statutory
provisions. Even before the 2013 enactment many corporate
corpora RESEARCH METHODOLOGY
houses were engaged in the activities of Corporate Social
Responsibility in their own interest voluntarily. But this For the purpose of completion of my research work, I have
amended Companies Act, 2013 provisions put this traditional applied the doctrinal
inal or traditional research method in which
practice into a formal system and lodges great responsibility the research is carried on, on the basis of facts and data stored
on the corporate
te houses in India to set out the clear pathway in the library and archives. It involves analysis of case law,
for the effective working of the Corporate Social arranging, ordering and systematizing legal propositions. I
Responsibility Activities and to ensure strict compliance. have discussed the followings:
1. Decisions of the courts regarding the defects of the
above mentioned companies are taken into
*Corresponding author: Tharani S consideration.
Saveetha School of Law, Saveetha University
 International Journal of Current Advanced Research Vol 6, Issue 12, pp 7870-7876, December 2017

2. The various web sites are consulted for the collection of b) Aggressive tax avoidance: Wilson’s (2009) tax-
material regarding the needfulness of corporate social sheltering probability measure, the permanent book-tax
responsibility and the activities of Google and Nestle difference and discretionary book-tax differences.
towards society wherever necessary. c) Irresponsible CSR Activities: Negative social ratings
3. Various newspapers have been consulted and obtained from KLD Research & Analytics.
information is collected regarding the day –to-day d) Findings: Firms with excessive irresponsible CSR
problems face by the people with regard to te products activities have a likelihood of engaging in tax-sheltering
and services provided by the Google and Nestle. activities and greater discretionary / permanent book-tax
4. Different articles relating to corporate social differences.
responsibility and other related research papers and
Corporate Social Responsibility
quoted in my research work.
Moreover, while proposing the Corporate Social
REVIEW OF LITERATURE
Responsibility Rules under Section 135 of the Companies Act,
Topic: A case study on Corporate Social Responsibility in 2013, the Chairman of the CSR Committee mentioned the
NESTLE, TATA, ITC. Guiding Principle as follows: "CSR is the process by which an
organization thinks about and evolves its relationships with
Author & Co-Author: Sanjeet Singh, Jagmeet Bawa, Gagan
stakeholders for the common good, and demonstrates its
Deep Sharma.
commitment in this regard by adoption of appropriate business
Abstract: The motive of corporate social responsibility processes and strategies. Thus CSR is not charity or mere
actually increased cut throat competition between the business donations. CSR is a way of conducting business, by which
forms. Because of this competition, the companies stated corporate entities visibly contribute to the social good. Socially
exploiting the quality of product as well as the environmental responsible companies do not limit themselves to using
concern. Slowly and gradually the business houses realized resources to engage in activities that increase only their profits.
that they have to give back to the society because they are They use CSR to integrate economic, environmental and social
surviving because of the society only. This realization gives objectives with the company's operations and growth."
the birth to the concept of Corporate Social Responsibility.
The companies on whom the provisions of the CSR shall be
However, the companies started using this concept for brand
applicable are contained in Section 135(1) of the Companies
building more than delivering it as a responsibility. The studies
Act, 2013. As per the section, the companies having Net worth
also revealed that the companies used the corporate social
of INR 500 crore or more; or Turnover of INR 1000 crore or
responsibility for enhancing their profit as well.
more; or Net Profit of INR 5 crore or more during any of the
Topic: Nonfinancial Disclosure and Analyst Forecast financial year shall be required to constitute a Corporate Social
Accuracy: International Evidence on Corporate Social Responsibility Committee of the Board "hereinafter CSR
Responsibility Disclosure. Committee" with effect from 1st April, 2014. The above
provision requires every company having such prescribed Net
Author: Suresh RadhaKrishnan
worth or Turnover or Net Profit shall be covered within the
Abstract: a) Examine the relationship between disclosure of ambit of CSR provisions. The section has used the word
nonfinancial information and analyst forecast accuracy. "companies" which connotes a wider meaning and shall
b) Use the issuance of stand-alone corporate social include the foreign companies having branch or project offices
responsibility reports to proxy for disclosure of nonfinancial in India.1
information.
Income Tax Deductibility
c) Gather a sample of stand-alone corporate social
responsibility reports from the corporate Register, the As per the notified rules, it has been clarified CSR spends
Corporate Responsibility Newswire, CSR-NEWS and the excludes “activities undertaken in pursuance of the normal
firm’s own websites. Finally use firm-level data from 31 course of business of the company”. If expenditure on CSR is
countries. not one contemplated under Section 37 of the IT Act2-which
provides for allowance of any expenditure not being in the
Findings
nature of capital expenditure or personal expenses of the
1. The issuance of stand-alone CSR reports is associated assessee laid out exclusively for the purposes of the business
with lower analyst forecast error. or profession-we have tax issues emerging. The dilemma is if
2. The negative relationship is stronger in countries that any expenditure on CSR is considered by the taxman as not
are more stakeholders oriented. expended wholly or exclusively for the purposes of the
3. The relationship is stronger for firms and countries business, on the backdrop that the CSR rules excludes
with more opaque financial disclosure. “activities undertaken in pursuance of the normal course of
business of the company”, will this contribution be considered
Topic: Is Corporate Social Responsibility associated with Tax
as permissible CSR spending. From a technical perspective,
avoidance? Evidence from Irresponsible CSR Activities.
there is good ground to suggest that the required-to-spend
Author: Qiang Wu amount is perceived by the legislature to be mandatory in
nature.
Abstract:
a) Examine the empirical association between CSR and tax
avoidance.
1
http://www.mca.gov.in/SearchableActs/Section135.htm, 05.11.2017.
2
https://taxguru.in/company-law/deduction-of-csr-expenses-under-income-tax-act-
1961.html, 05.11.2017.

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An Analysis of Corporate Social Responsibility of Google And Nestle
The nine principles of National Voluntary Guidelines are3: colleges are a part of this program and the 100 that rank the
top for proposal submission share 500 Google “Campus
Principle 1: Businesses should conduct and govern
Volunteer Stars” Scholarships every year.6
themselves with ethics, transparency and accountability.
Principle 2: Businesses should provide goods and services Dr. Eric Schmidt, Google’s Executive Chairman, spoke out
that are safe and contribute to sustainability throughout about his thoughts on this program, “It’s amazing to see the
their life cycle. creative, meaningful solutions coming out of Google China
Principle 3: Businesses should promote the wellbeing of all Social Innovation Cup. Today’s students are tomorrow’s
employees. innovators, and the fresh perspective you bring is crucial to
Principle 4: Businesses should respect the interests of, and solving the world’s big social issues.”7
be responsive toward all stakeholders, especially those
In 2008 when the program started, it was more than 6000
who are disadvantaged, vulnerable and marginalized.
applications from 755 schools. In 2011 after years of having
Principle 5: Businesses should respect and promote human
this program it grew even bigger. There were over 20 thousand
rights.
proposals from over 1000 colleges and universities. 3,326
Principle 6: Business should respect, protect, and make
proposals from 677 schools went to semi-finals and 310
efforts to restore the environment.
proposals from 172 schools were in the finals. The winner runs
Principle 7: Businesses, when engaged in influencing public
his or her project with Google awards.
and regulatory policy, should do so in a responsible
manner. Supporting Earthquake Relief
Principle 8: Businesses should support inclusive growth and
In the Sichuan province of Western China a rated earthquake
equitable development.
of 8.0 hit in 2008. Google sent support rescue and relief
Principle 9: Businesses should engage with and provide
efforts. Google and its employees raised over 2 million dollars
value to their customers and consumers in a responsible
and donated over 1 million dollars worth of advertising to
manner.
earthquake relief organizations.
Corporate Social Responsibility of Google
Google developed a communication platform for resource
Google began in 1996, as a research project by Larry Page support, a search platform for families looking for lost
who was soon joined by Sergey Brin, two Ph.D students at relatives, and a global platform for charitable donations. A
Stanford University. Company was first incorporated as new, but cool concept of Google, Google maps, provided
privately held company on September 7, 1998. China’s State Bureau with access to see the areas that were hit
and know what damages and better aid needed to be for rescue
The Vision: To make search engines so powerful that they efforts.
would understand “Everything in the World”.
In September 2008, Google funded construction of 15 Google
The Mission: To organise the world’s information and make it Quake Relief Hope schools in the city of Mianyang Sichuan
universally accessible and useful. province helping over 18 thousand elementary and high school
students go back to school.8
The products and services by the Google are Google Chrome,
Google maps, Google news, Google earth, Google finance. Google Grants
The evolution of products are Google calendars, picasa,
Google Grants is an in-kind donation program awarding free
Google reader, Gmail, You tube, Orkut, Google talk.4
AdWords advertising to select charitable organizations. It has
Google focus on the youth and how they may better serve the supported hundreds of organizations in advocating and
world with the three main focuses of their corporate social promoting their causes, such as, animal rights and literacy,
responsibility. These three main focuses are: abandoned children, and HIV education.9
1. Google China Social Innovation Cup for College Room to Read, is an organization which educates children in
Students Vietnam, Nepal, India and Cambodia. This organization got
2. Supporting Earthquake Relief the attention of a sponsor who has donated funds to support the
3. Google Grants education of 25 girls for the next 10 years.
An added part would be Google Green with the ways that CoachArt, an organization which supports children with life-
Google tries to keep the environment a safe and clean place for threatening illnesses through art and athletics programs, has
everyone.5 seen a 60 to 70 percent increase in volunteers.
Google China Social Innovation Cup for College Students Google Green
The Google China Social Innovation is a nationwide The goal of Google Green is to use 100% renewable power to
competition with the goal to empower the youth of China to help power the world with clean energy.
become agents of social change. College
Google Green is committed to purchase over 2.2 gigawatts of
students bring ideas and proposals in hopes to instil in China’s
renewable energy which is equivalent to over 1 million cars on
future the values of social responsibility, importance of
the road. This makes google the largest non-utility purchaser
community welfare, and the spirit of self-empowerment. Many
6
https://jennettelo.wordpress.com/2014/03/28/googles-csr/, 06.11.2017.
3 7
http://csridentity.com/india/9%20principles.asp, 05.11.2017. http://www.gong1chuang1.com/eng/homepage.php, 06.11.2017.
4 8
https://www.thebalance.com/google-overview-company-culture-and-history-2071320, https://googleblog.blogspot.in/2008/05/responding-to-earthquake-in-china.html,
06.11.2017 06.11.2017.
5 9
Ibid. https://www.google.com/grants/how-it-works/, 06.11.2017.

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 International Journal of Current Advanced Research Vol 6, Issue 12, pp 7870-7876, December 2017

of renewable energy in the world. Google buys  Green Power Leadership 2011 and 2014
clean electricity directly from wind and solar farms around the  Top Rank Cool IT Leader board 2012 and 2013.
world.
Google commits a lot towards helping China. They give
They are also committed to invest over 2.5 billion in opportunities to college and university students to have their
renewable energy projects which makes them one of the ideas impact people for the better. Their Google Green
largest corporate investors in renewable energy in the world. ultimately helps the environment and the people they are
With this they believe they are creating a better future for buying the energy from.13
everyone.10
We can see from the numbers given that the programs are
Energy Consumption by Google rising in numbers and getting more attention. They are helping
1. Google data centres consume 50% less energy China with new schools for youth. We see a lot of help for
compared to a typical data centre. China. Google could get some backlash for putting their main
2. Google purchases or produces 24% of renewable energy focus in one area while others may need the help to. I think a
and the company has 11% renewable electricity already good change or add on could be to add more countries or other
on the grid, thus total use of renewable energy accounts areas besides China that could use similar help.
to 35%. The use of remaining 65% energy which is non- Corporate Social Responsibility of Nestle
renewable is neutralized by carbon offset projects.
3. In Mountain View campus 1.9 MW solar panels NESTLÉ India is a subsidiary of NESTLÉ S.A. of
generate more than 3 million kWh clean energy. Switzerland. With eight factories and a large number of co-
4. Google has made an agreement to invest more than packers, Nestlé India is a vibrant Company that provides
USD1.5 billion in renewable energy projects such as consumers in India with products of global standards and is
large-scale wind and rooftop solar panels. committed to long-term sustainable growth and shareholder
5. Alphabet Inc. Google’s parent company has committed satisfaction.
to invest USD2.5 billion in solar and wind projects. Nestlé's purpose is enhancing quality of life and contributing
6. The average annual power usage effectiveness (PUE) to a healthier future. The two objectives of the company is to
for Google’s global fleet of data centres was 1.12 in shape a better and healthier world and to inspire people to live
2015, compared with the industry average of 1.7. healthier lives.
7. To date, 854,000 square meters (9.2 million square feet)
of Google office facilities have achieved Leadership in NESTLÉ India manufactures products of truly international
Energy and Environmental Design (LEED) quality under internationally famous brand names such as
certification.11 NESCAFÉ, MAGGI, MILKYBAR, KIT KAT, BAR-ONE,
MILKMAID and NESTEA and in recent years the Company
Waste Reduction and Recycling by Google has also introduced products of daily consumption and use
1. In 2015, Google has diverted 84% of waste from its such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ
global data centre operations away from landfills, and Dahi and NESTLÉ Jeera Raita.14
so far in 2016, it has diverted 86%. Nestlé is the world’s leading nutrition, health and wellness
2. In 2015, 19% of the servers Google deployed were company. There are 33 thousand employees working in this
remanufactured machine. organization. Nestle is a MNC which operates in 83 countries
3. In 2015, 52% of the components Google used for with the help of 461 factories. Nestle operates mainly in the
machine upgrades in company data centres were developing countries. Approx. 50% of its plants operates in the
refurbished inventory. developing countries. Nestle claims to protest the trust of
Carbon Emissions by Google customers and stakeholders with the strong principles. The
principles and their related policies are concerned with actions
1. The company has been carbon neutral since 2007. related to:
2. Google’s ‘Commuting Sustainably’ program keeps
5,700 cars out of the road and company shuttle  consumers
program and electric vehicle charging stations is  human rights and labor practices
equivalent to more than 87 million vehicle miles  employees
annually.  suppliers and customers
3. Google is increasing the range of its operations in  The environment.
cloud, a platform that is carbon neutral with positive
Nestlé performs within the secondary sector of industry,
environmental implications.
producing and distributing products to consumers. It
4. From 2009 to 2015, the company’s carbon intensity
transforms raw materials into packed goods for customers to
per revenue (metric tonnes Scope 1 and 2
relish. Company purchase the raw material from the primary
CO2e/million USUSD) and per full-time equivalent
sector.
employee both decreased by more than 50%.12
For example: Nestlé purchase cocoa directly from the farmers
Google has won two awards more than once for their efforts.
at all its plants and use it make the products i.e., KIT KAT,
AERO® and SMARTIES. The companies claim that by doing
10
https://www.technobuffalo.com/2011/05/18/googles-green-initiative-environmentally-
conscious-technology/, 07.11.2017.
11 13
Ibid. https://www.forbes.com/sites/karstenstrauss/2016/09/15/the-companies-with-the-best-
12
https://www.theguardian.com/environment/2016/dec/06/google-powered-100- csr-reputations-in-the-world-in-2016/#73cf235e7506, 05.11.2017.
14
renewable-energy-2017, 07.11.2017. http://companies-profiles.blogspot.in/2009/08/nestle-india.html, 07.11.2017.

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An Analysis of Corporate Social Responsibility of Google And Nestle
this they help to increase the profit of farmers as well as to and environmental sustainability.
ensure the pure quality for the consumers. Nestle is company  Roll out the global youth initiative across all their
operations.
work in more than 80 countries and many of these countries  A special leadership committee should be created for the
are developing. Thus it becomes the responsibility of the nutrition of the children.
company to coexist by create value for its stakeholders and at  Lead the industry in nutrition and health research through
the same time enrich the nature. This concept refers as collaboration.
Creating Shared Value. Nestle tend to work for Creating  Provide nutritionally sound products designed for children.
 Help to reduce the risk of under nutrition through
Shared Value which includes the following of international Nutrition
micronutrient fortification.
laws, Codes of countries with the principles of the company.15  Reduce sodium (salt) in their products.
 Reduce sugars in their products.
In consultation with stakeholders, the Company has decided to  Reduce saturated fats and remove trans fats in their
focus its activities on the following areas, where it is in a products.
position to create maximum value. These focus areas are:  Deliver nutrition information in all their labels.

 Nutrition: A large part of our population is impacted by Drawbacks of Nestle Csr Activities
the double burden of malnutrition. Improving nutrition
The above stated activities of the Nestle are contributed to the
awareness of communities is a focus area.
public and there are done with more care and caution regarding
 Water and Sanitation: India is among the world’s most the working, policies and the product to be manufactured by
water stressed regions. Additionally, safe drinking water the company. Even though all the corporate houses have
is a concern in many parts of the country. The Company Corporate Social Responsibility Committees for the proper
would focus on helping farmers reduce water usage in functioning of their CSR activities they can’t achieve 100%
agriculture, raising awareness on water conservation results. There are some drawbacks in all the cases. Here are the
and providing access to water and sanitation. drawbacks of the activities of the Corporate Social
 Rural Development: Supporting the sustainable Responsibility of the Nestle Company:
development of farmers will be the third focus area.
 Livelihood: Unemployment is a major issue impacting Nestle Water: Few people know it, but Nestle is actually the
development and health outcomes. The Company would world’s largest producer of bottled water. In fact, they’re so
focus on livelihood enhancement through trainings. keen on their water business (which also involves many of
 Education: The Company would focus on supporting their other products), that they believe water isn’t a universal
education, with a special focus on education for the girl right. Chairman said that he “believes that water is a human
child. right” and “advocates for universal access to safe drinking
water”. But his actions, as well as Nestle’s actions, show that
Main Falling
that’s just green washing.
 Follow the countryside growth framework to understand
the needs of the Farmers. Arguably, that’s not much when you considering that 500
Rural
 Execute accountable sourcing to their supply chain.
Development billion gallons of water that will be saved under Gov. Brown’s
 Constantly advance the green coffee supply chain.
 Roll out the nestle cocoa plan with cocoa farmers. new water restrictions, but there’s something absurd and
 Work to attain water efficiency sustainability cross-wise immoral about a private company using as much water as they
examinations. want while the rest of the state is facing severe restrictions. But
 Advocate for effective water policies and stewardship. other areas in the world have it even worse than California.
 Treat the water society discharge effectively.
Water
 Conduct water awareness programmes to conserve the Indeed, unsustainable usage of aquifer water can lead to a
water and improve groundwater level. significant decrease in water levels, and can even exhaust the
 Engage with the suppliers who are especially related with aquifer. That’s right, underground water isn’t the inexhaustible
the Agriculture.
 Improve resource efficiency in operations. source many people believe it to be. In the case of Bhati
 Establish a leadership for the analysis of climate change. Dilwan, people are getting sick because if the community had
 Promote transparency and proactive, long term engagement fresh water piped in, it would deprive Nestle of its money
in climate policy. source – bottled water under the Pure Life brand.16
 Improve the standards of the environmental performance in
Environment their system of packaging. Child Trafficking: Most people love chocolate, but few know
sustainability  Access and optimize the environmental impact of their the dirty deals behind chocolate production. The 2010
products.
documentary The Dark Side of Chocolate brought attention to
 Endow with meaningful and accurate environmental
information and dialogues. purchases of cocoa beans from Ivorian plantations that use
 Preserve the natural resources like forests, reserves and child slave labour. The children are usually 12 to 15 years old,
lakes, and canals. and some are trafficked from nearby countries – and Nestle is
 Have to verify with assess and address the problems no stranger to this practice. Nestlé is now a serial offender
relating to human rights and the acts which have a greater
impact on the society in their operations and supply chain.
when it comes to violating when it comes to violating
 Eliminate the social evil of child labour. international conventions and guidelines.17
Our people,
 Enhance the gender balance in their workforce which is one
Human rights
of the Constitutional right provided under the Constitution.
Health Threats: In July 2009, the Food and Drug
and Administration (FDA) and the Centers for Disease Control and
 Ensure all nestle employees are covered by a certified
compliance
safety and health management system. Prevention (CDC) warned consumers to avoid eating any
 Work against the social evils of black money, corruption varieties of pre-packaged Nestle Toll House refrigerated
and bribery.
 Provide training on corporate business principles, nutrition,
16
https://www.zmescience.com/science/nestle-company-pollution-children/, 07.11.2017.
15 17
https://in.reuters.com/finance/stocks/company-profile/NESTta.BO, 07.11.2017. Ibid.

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 International Journal of Current Advanced Research Vol 6, Issue 12, pp 7870-7876, December 2017

cookie dough due to risk of contamination with E. coli Lying about the shift patterns as global policy. Workers are
O157:H7 (a food borne bacterium that causes illness). In the made to work for excessive hours in violation of the law for
US, it caused sickness in more than 50 people in 30 states, half the time being in force.
of whom required hospitalization. In particular, one woman Findings
had a fatal infection before the batch was reclaimed.
From the above collected secondary data analysis done on the
But this is just a minor incident compared to the 2008 Chinese Companies of Google and Nestle it is found that both of the
Milk Scandal. Six infants were killed and 860 were companies lack somewhere or other in their contribution to the
hospitalized with kidney problems after Nestle products were society. It should be well kept in mind that as much you take
contaminated with melamine, a substance sometimes illegally from the society the same should be reflected back to the
added to food products to increase their apparent protein society to maintain the balance. There are certain factors which
content. are being analysed during the study.
Also the most recent case of MAGGI in India has violated the 1. Doing something good for the society and using it for
role of CSR to the society. the marketing.
21st May 2015 – India issues the instructions to recall of 2. Work not to be done in isolation but integrated into
Maggie noodles: Indian food agencies told Nestlé India to take the business model.
back a batch of Maggie from the state of Uttar Pradesh 3. In business, you exploit through strategy.
because they found in their test that the Maggie instant noodles 4. Accountability and transparency.
are not safe for the consumers to eat and fails to fulfil the 5. Sustainability.
norms of food safety law of India.18 6. Governance.

Nestlé Response: Nestle responds with a denial from this In case of NESTLE, the food products it is contribution should
accusation and said that Maggie is fully safe and there is no be beneficial to the consumers, but there are many issues
order like calling back Maggie from the market. Nestle against this policy very recently Maggie and Nestle baby milk,
responds with these statements on their social media account both these products are used by high range of consumers but
and the website. are found to be adulterated. Adulteration of baby products
created bad image on the Company. The Nestle also lacks in
Pollution: As with any “respectable” large company, Nestle the transparency factor. Not only consumers have bad image
has been involved in several incidents regarding pollution. A but also the workers of the Nestle. The workers of the
1997 report found that in the UK, over a 12 month company were not treated equally and even the wages offered
period, water pollution limits were breached 2,152 times in to them are far less than the potential of the workers. Hence
830 locations by companies that included Cabdury and Nestle. this was considered as a only reason for the NETPRESSURE
But again, the situation in China was much worse. Movement across the World in the year of 2002.
While people in the US and Europe are slowly becoming more It would be hard to find an organization that epitomizes the
environmentally concerned and some are opting for more corporate social responsibility of companies more than Google
sustainable sources of water, Nestle has moved to another does. Almost everywhere we turn, there is a Google product
market – Asia. Alongside companies such as Kraft or that can make an everyday task easier or push us to greater
Shell, Nestle made several environmental violations. Nestle achievements. The Reputation Institute is one of the many
Sources Shanghai Ltd’s bottled water manufacturing plant also organizations that recognize Google for its tech innovation and
made the list for starting operation before its wastewater its commitment to CSR. The Institute measures the corporate
treatment facilities had passed an environmental impact social responsibility of companies using a ranking system. For
assessment. the third consecutive year, Google tops the list of companies
Price fixing: In Canada, the Competition Bureau raided the seen as the most socially responsible.
offices of Nestlé Canada (along with those of Hershey Canada CONCLUSION
Inc. and Mars Canada Inc) in an investigation on price
fixing. Nestlé and the other companies were subject to class- For internationally operating companies, it’s difficult to build a
action lawsuits and ultimately settled for $9 million, without great reputation for social responsibility. It takes more than
actually admitting liability. Furthermore, former president and just commitment to community, building a solid workplace for
chief executive officer of Nestle Canada is facing criminal your people and honest governance-it takes the ability to
charges. communicate your positive deeds to others lest they go
unnoticed.
Promoting Unhealthy Food and Mislabeling: That Nestle is
promoting unhealthy food should come as no surprise, but the “To enrich quality of life in the society we operate in we need
level at which they operate it is simply staggering. A recent to give back to the society manifolds than what we get from
report by the UK Consumers Association claims that 7 out of it”- JRD TATA.
the 15 breakfast cereals with the highest levels of sugar, fat,
and salt were Nestle products. Nestle dismissed all References
responsibility in promoting healthy food. 1. http://www.mca.gov.in/SearchableActs/Section135.html
2. https://taxguru.in/company-law/deduction-of-csr-
expenses-under-income-tax-act-1961.html
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How to cite this article:

Tharani S (2017) 'An Analysis of Corporate Social Responsibility of Google And Nestle', International Journal of Current
Advanced Research, 06(12), pp. 7870-7876. DOI: http://dx.doi.org/10.24327/ijcar.2017.7876.1244

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