Raul Sarti Maldonado | Healthy organizations and their contributions to the well-being, betterment, happiness, and peace of society
Sorry, I was invited to sit down. Good morning.
On behalf of Nestlé, a global leader company in protection, health, and well-being, I would like to manifest that it is a true privilege, and we feel honored to be invited to be made participants of this type of events.
In Nestlé, we really don’t speak about philanthropy, not because we don't believe in philanthropy: We believe philanthropy can be done as individuals, but as a company, we have always been convinced that it is not enough to only make a donation; it is not enough to do isolated works.
We definitely have the commitment. I don't know if you were aware, but we count with many people from different countries. Nestlé is… At the UN… This is a fact: The UN has 193 nations or member states; Nestlé is in 197 countries.
That's a big commitment. That is a commitment that pushes us to leave a footprint or the other way around, to leave the least possible footprint where we are (this in terms of the environment) but to leave the biggest footprint possible within the communities and places where we have the biggest impact.
This has led us to, practically since its foundation... Nestlé is a business that was born 151 years ago in Switzerland, and since its foundation you can see its DNA encased in help for… it was born for a reason, which is the nutrition of minors in Switzerland, the nutrition of babies in Switzerland, of the infants in Switzerland.
Incredibly, 151 years ago (I say incredibly because Switzerland is currently one of the most developed countries in the world) infants were dying of hunger and malnourishment in this country; and, well, the founder of the company created the dairy flour product or Nestlé lacteous farina, currently known as Cerelac in many of our countries, a product that has been in the market for over 150 years. And that is how the company was created, with a vision of helping and a vision of promoting nutrition in young children.
And I refer to this genesis of the company because our DNA is… Today the topic… we talk about healthy companies, and in our DNA it has always been branded for being a company of health, nutrition, and well-being.
Today in Guatemala we have many foreigners present, but I also see many fellow counterparts, and the corporate sector has gone through turbulent times, moments in which we have recognized that we have done things correctly, but we still have room, and plenty of room, for improvement; period in which some people have come to take accountability and we have recognized that we have opportunities.
And Corporate Social Responsibility is the vehicle through which we become aware of what we can build with the communities where we are, and specifically in the country where we are. In a country, as mentioned by the Vice Minister of Economics, a pluricultural and multilingual country where we count with over 22 official languages, and where it is a true challenge to be able to positively impact all of these communities because they all have different needs.
(I am going to go based off of this presentation.) At Nestlé, we do not refer to it as “circular economy;” however, I still wanted to use that term, because I understand there are many people who know about this concept and how it is run… it is very common concept right now. And I want to show you… based off of this PowerPoint… because if we speak about circular economy and Corporate Social Responsibility, there are books, presentations, and a lot of content; however, taking it into the day-to-day tasks of a company is a daily task and it is an arduous task to do.
And that’s where many really ask, and well, I have the privilege to work for a company that has tried, has made mistakes and has gotten back on track; and we’re on our way, and we believe or are convinced that we are on the right track.
So, we at Nestlé call it “shared creative value.” As I mentioned, we don’t practice philanthropy, but we practice this which is the DNA of the company, and we call it “shared creative value.”
However, this pyramid is based on something which is fundamental, and something that is fundamental in our countries today, in Latin America, but mainly in the moment that I came to Guatemala, the famous word: Compliance.
Gentlemen entrepreneurs, we cannot pretend to talk about Social Responsibility, to talk about Social Development programs, to talk about shared creative value, if in our basis of doing business we do not practice correctly, if we don't do it with respect to all legislation, with all politics, and with all practices which converge within the industry.
Therefore, based on compliance… and here we not only talk about compliance in topics of justice, because 2 or 3 years ago, here in Guatemala, they were (I’ll use a colloquial expression) “scaring with the mat of the dead” [Translator note: meaning, causing fear in people based on lies]; and speaking of fiscal compliance, that reporting, and having to report as… no! There is compliance in the environment, labor compliance, compliance with safety and labor laws, compliance for laws and social security, and this is the basis that we must have and we must first make a compliance matrix to start talking about shared creative value.
This, of course, the sustainability in time; if we do not have a culture of compliance and we don’t have it as the primary foundation for our activities we are not going to last 150 years. To last 150 years more we need to have a solid base and then we can speak about shared creative value.
As I was telling you, just a brief review of what Nestlé is in the region. Nestlé in the region: Its main operation is in Guatemala with over 2,000 employees or collaborators in Guatemala. We have two production plants: One right here in Zone 12, the capital city, and the other in the City of Antigua.
Yesterday, I spoke to several of those who had the opportunity to go to Antigua, and you cannot imagine what it means to have a manufacturing plant in a city that has been declared a humanity patrimony. It is… I am going to vent right now, going to make a bit of catharsis, but it is… anything, any new crack that appears in any wall of La Antigua, Guatemala is the responsibility Nestlé; it’s the vibrations. We have to really make a tremendous effort, truly, to achieve convergence and that our interests and the interests of the community follow the same path.
So, in order to get to all of this, I was telling you that it's not just going from a PowerPoint and then we have our program of responsibility, and that is it, no. This has to breathed and lived every day, and as we do in Nestlé the 330,000 employees of the company around the world.
We have a common purpose which is to improve the quality of life and contribute to a healthier future. For whom? That is where we start to subdivide: For people and their families, for our communities, and for the planet.
So then, all our activities, all, all, all, all our activities have to be able to be framed in our purpose, otherwise, it is not a part of the activity of Nestlé. And that is what I personally like to call “an ecosystem of success,” because in an ecosystem everything has… there has to be a balance among all the participating elements. At some time that one of the elements takes on more importance, it is detrimental to the other elements that make up the ecosystem.
So then, we have encountered (in this small graph) that everything we do is based on improving the life quietly and ensuring a healthier future for people and their families, for our communities, and for the planet.
So this is like the guide map, and this is where each and every one of the activities that we do, focused and supported in each one of these pillars, is detached.
Here is how these three activities if you can see in the orange area… we work directly with the farmers, we foster employment with dignity and good working conditions (this is especially for our communities, for the planet) we use responsible manufacturing processes and responsible factory practices in the whole chain of value, and for people and families, we offer the guarantee of quality in products because we are definitely a company of mass consumption, which at the end… no matter what we do behind, the consumer, when reaching the isle, when going to the supermarket… well in the end will choose the flavor, the quality, the nutritional values of the product, independently of all that we do. So then, at the end, we have to bring together all these subjects for people and family, for the communities, for the planet, with offering quality products, and of course, that directly benefit the communities with regards to nutrition, because (going back to where I started my talk) we are a company of nutrition, health and well-being.
Let’s continue please. What do we do directly for people and families? We are now speaking directly about actions. Which actions do we take?
I'd like to tell you that in Guatemala, in a country in which we have studies… (maybe here there are a lot of people who know about this), in a country where 6 out of 10 children have malnutrition; we’re no longer speaking of poor nutrition, rather of malnutrition, because there exists the myth or the… misconception it’s called in English but “false belief,” that if the child is a little chubby, big cheeked, that he or she is well fed. That’s the, “Oh look how healthy the child is,” without knowing all the repercussions this can have in the long term for the child.
So then, in a country like Guatemala where we have great problems of malnutrition, there existed a challenge… the company here within its profile has a product, all those who are from Guatemala knows it because it is a product that has 100% of market penetration; this for those that are… that work in the commercial area know that there are very few products (I would venture to say) in the world, that have ability to say, “We are present in every single household of a country. Well with chicken broth Malher, between 5 to 6 plates of food are seasoned daily; that is to say that in approximately 3 days 100% of Guatemalan population is covered.
So then there existed a challenge: That if we had the vehicle that people are... that this is the product that people are consuming, what can we do so that it goes in benefit of Guatemalan nutrition?
Remember that we are not in a charity house; it is a company it is a company that must produce profit for shareholders. The task was… the arduous task, that was a project that lasted more than a year, was to add 15% of the daily iron requirement, to the chicken broth, without altering its taste and without affecting the pockets of consumers.
And, why is that taste so important? Because that is what they use to season the husband’s dinner; because that is what they use to season the food for sale of the lady who has a food stand; because that is what they use to season the beans for the kid’s dinner; the taste of the family. And Malher has boasted (Malher which is a Nestlé company), has boasted of being the flavor of Guatemalans.
So it was a tremendous risk, the leading product, to mess around with its original formulation, to take nutrition to Guatemalans, but definitely, it was a commitment of the company; and today, a year and half later, I can tell you that it was a project of success. Without increasing the price and without altering the taste, we take every day 15% of the daily requirement of iron to Guatemalans.
We have also done this with our drinks, with our powdered drinks, and with our entire portfolio of Maggi soups. So this is at the Central American level; there are 700 million annual servings that, at the Central American level, are enjoyed, chicken soup with Maggi noodles.
So these are the challenges that we face at the nutritional level. And it’s giving back, it’s not philanthropy; it's how we leave a mark, because we are the leading company in nutrition, health, and wellness and we have to bring this to consumers.
It does not end here… it does not end… I was speaking to you about the false beliefs that if the child is chubby he is a healthy child. We definitely have a "muscle,” so we have an educational program; we have alliances with schools, we have alliances with communities, we have alliances with the Municipality of Guatemala and with the Ministry of Education, where we have… (and other strategic partners, including channels, mass media), where we have taken on the task of educating people, educating people; to educate parents, educating teachers in educational centers, and educating children in the promotion of good eating habits.
This is a campaign that only in airtime (in the channels, on the radio, and in the media) has had an exposure of more than 6 million dollars.
This is a collective effort, this has been achieved through partnerships where... Well, with channels it costs their air time, but we have been able to convince these media of the need to create an impact in Guatemala.
So, leading this campaign, being leaders in the industry of this campaign, we have achieved strategic partners; and today this campaign has already been known directly (or have had contact or interaction on Facebook pages, social networks) more than 2 million people in Guatemala.
So this is our commitment: To bring products that feed, but to educate the population of their intake, and a balanced intake and, in addition, the promotion of healthy lifestyles.
This is our "United for healthy children" program.
For our communities: What are we doing…? This, I made this summary... In the company there are many more activities that are done for people and their families, but I wanted to talk to you right now, to the Guatemalan business colleagues, what we do here and what can be done here.
For communities, we definitely start with our people, our most important asset. We are innovators, in my experience also, in the area of human resources, innovators in the areas of the promotion of working conditions… well, I could say, a bit of developed world: No longer in any Nestlé locality do we work more than 60 hours because we believe in rest and the balance of life (60 hours a week), in the balance of people's lives.
We have broken paradigms on the subject of maternity policy, where we go beyond the reach of maternity policy, when we already have the conception of the primary caregiver of the child. This is a protection that we provide in addition to the law. For example, in cases where the mother dies at the time of delivery, well then that license is granted to the father; those 14 weeks are granted to the father. And these are like innovative steps, because in the end we know that maternity leave is not for... well, logically it is for the creation of that mother and child bond; but if the person is not there, the mother in this case, well it must be the main primary care giver. So we already grant this benefit to people definitely, or to our collaborators.
So, definitely, it is in this type of practice that we feel we can collaborate directly, to generate a balance of life, and strengthen Guatemalan families; starting at home: Starting with the 2,000 families that depend directly on us in Guatemala, and the 330,000 that depend on Nestlé around the world.
The initiative for youth: This is a project... Here, I think that Fundazúcar is here with us; it's a project that where we have Fundazúcar as an ally. We realized… This is a global program also, implemented in Guatemala. We realized that youths come to ask for work and are asked for experience; but how will they have the experience if they have not been given the first opportunity to work? So, we saw ourselves in the dilemma, “what came first: The chicken or the egg?"
So that is a mystery that we are not going to solve here, but we said: "Well, definitely we cannot employ all the youth who are leaving the universities in the different countries, but we can make alliances with the industry, with other companies (for what?), to promote work practices, trainee programs, internships, and to teach in the different universities how a youth’s personal brand should be when going to ask for work. We aid them with their interviews and how the management of their social networks should be.
This is so important now in a world where the internet gives us immediacy and transparency; and then it is so easy to see the resume of a young man and then get into his social media, and then see how consistent is what is written in the CV (on his resume) with your photos or practices that he shows on social media.
So this, today we have touched more than 2,000 youths directly in Guatemala, with our entire network of alliances. The Ministry of Education and the Ministry of Labor… we also work together with them through the initiative with young people; and it is this commitment to employ Guatemalan youth, because we are at the doors, gentlemen and Guatemalans, and Guatemalan businessmen, to obtain a demographic bonus. They say that it will come after 2023; 60% of the Guatemalan population will be between 15 and 27 years of age.
What are we going to do with these youths? What are we going to do with these millions of youths if we are not preparing our companies to receive these young people when they are of working age?
"Topics of inclusion,” "inclusive companies,” they say, but inclusive to women? Inclusive to youths? Inclusive to people with disabilities? Inclusive… In Guatemala, since…. I mentioned, 22 different inclusive languages in Guatemala, from the pluricultural and multiethnic side.
We have to be able to generate employment for all the centers of development of the country. We talk about… that in 2030... There are studies that in the area of Xela, of Quetzaltenango (it is a southwest area in Guatemala, for those who are foreigners), is going to be a focus of development between 3 and 5 million people; 5 million people who do not all speak Spanish; 5 million people have to know how to communicate with and how to establish a working and professional relationship with them.
So then the invitation... and we have set ourselves goals, quotas, unfortunately, but there are those in the administrative world who say that, "What is not measured is not improved”; thus we have inclusion quotas, we have quotas to work with people with a disability.
We are promoting... We are not the first (I'm not going to wear the star of being the first) but we are promoting a line of tying our products with people with Down syndrome. It is a repetitive activity that we know they can do it because other companies have already done it; and it is this type of initiatives to which we have set objectives, and we measure them. We measure the gender balance between women and men; we definitely have a long way to go. Right now we are like 33/67 in the balance; we would like to reach 50/50. We have activities that are designed for men, but not necessarily the sales area, the winery areas, the manufacturing areas, and we want to promote this type of activities for women also.
Logically, all this, in the end, how do we make part of all our 2,000 collaborators of all these initiatives? Through our volunteer program.
Through our volunteer program is how all our employees go to the schools to talk to the children about proper nutrition, they go to topics of environmental activities, they go to activities for the youth, they go to speak to the universities, to the forums, the schools of what a good interview should be and what a profile should have. That is how we achieve that all our collaborators live and feel part of the company's purpose.
Following a bit what we do in Guatemala, and speaking a little about the circular economy, about how we get from the field to the isle (or to where the finished product is), we find the Nescafé Plan; and I love this, because truthfully, here is a clear example of how a company can make a difference.
In 2013, several coffee-growing countries were affected by the rust fungus. The rust fungus (for those who do not know) is a fungus that directly affects the leaves and the coffee fruit, causing much of the productivity to be lost and the coffee to be no longer of quality.
This, of course, in a coffee-growing country, like Guatemala, and like many of the Colombian colleagues that are here, countries that depended on... Well, yesterday they were telling me that Colombia does not depend so much on coffee anymore, within the agroindustry; but in heavily coffee-producing countries, this was a tremendous impact for the economy.
What do we do? What does the company do? From 2013 to date, we have donated more than 4.5 million coffee plants that are resistant to rust to more than 9,000 coffee-growing families in Guatemala.
But this starts from the genetic research of the creation of the seed for the germination of the rust-resistant plant, the logistics of giving or donating the plant, of educating the coffee growers, the more than 9,000 coffee-growing families of the interior to good harvesting practices to increase their productivity, to be more profitable, for a product or a fruit of better quality.
And this is how we are closing the circles, because what does Nestlé win? Well yes, we ensure a supply of a better quality grain.
So, are we contributing to the country's economy? Yes, but on the other side we are making sure (coffee from Guatemala, as well as coffee from Colombia, are the best coffee beans in the world), we are ensuring a supply of this raw material, which for us, coffee is our third esqueyum* most sold in the world. So then it is a way to secure resources for the future.
So here is how we begin to close the circle, and we go further. Even yesterday I was speaking there, with some of you, that we go further and we will finally close the circle.
We no longer only buy the coffee bean, but we will process that coffee and produce a product called "Nescafé Reserva Atitlán,” which will be 100% Guatemalan coffee, 100% coffee from the Nescafé Plan. Then it goes to the Guatemalan consumer; they will be able to buy a soluble, instant coffee; Nescafé, 100% Guatemalan, 100% produced by Guatemalan hands, by Guatemalan coffee families, observing, respecting the environmental laws, environmental norms, labor laws. In other words, it is a "win, win, win, win" for all: A quality product at a good price, contributing to the Guatemalan economy, contributing directly to the coffee-growing families.
And finally we come to our planet; very important, because it is everyone's home. What are we doing? How do we guarantee a better future (our purpose), how do we guarantee a better future for our planet?
What do we do in Guatemala? In Guatemala directly, we have several initiatives. With great pride, Nestlé internationally set itself the goal that by 2020 all sites (that's why it says, in the logo there on the left, it says "2020"), but all Nestlé locations around the world should be zero waste to the landfill.
What does this mean? That no Nestlé operation, no factory, no distribution center, no office can contribute anything to the landfill; but not even a handkerchief, not a Kleenex, nothing. A big challenge; we achieved it today: In June, 2018, our 4 main sites in Guatemala are zero waste to landfill.
How is this achieved? Culture; the most difficult, although you may not believe it, the most difficult thing was the waste that we produce in the offices and in the bins, and disposable plates, and plastic bags, and... I am not talking bad about any of those products, but I am speaking badly of the use that later we give them.
So then, we entered into an education and awareness campaign to classify this garbage first and commit ourselves as a locality, and commit ourselves as a company, to achieve this goal.
It costs a bit because, I tell you, because I was used to the 3 garbage dumps, and it was very simple, but it turns out that at Nestlé 7 garbage dumps appeared out of nowhere; it was organic, glass, common, plastic, aluminum... Well then, after eating, at the beginning it took me about 5 minutes to see where everything was going, but little by little the organization is taking hold, the same organization is entering the loop, and since June, 2018 we are zero waste to the landfill.
Now our factories, our Antigua factory now uses 100% energy from renewable resources, and it is also a commitment that the Zone 12 factory for this year also uses 100% of energy from renewable resources.
And finally the WASH topic; I spoke earlier, not many know, but Nestlé's main selling product around the world is water, it's pure water, or sparkling water in some cases. Well, we are running out of water. Thus it is a legitimate concern as a company. Just as I spoke to you all about how important it is for Nestlé to have good quality coffee and ensure our supply, because it is vital for Nestlé to ensure that in 20 years we will have water to supply and be able to bring bottled pure water to the market.
So, what are we doing? And it’s not enough… I can tell you what we did as a company, yes, we as a company, well we now reuse the water from the roofs, since all the rainwater enters a circuit, it goes to the toilets; we also have a dramatic reduction in the use of water per ton produced, within our manufacturing processes; we have water treatment plants that meet the requirements that will be required by 2030, we have them today.
So as a company yes, as a company and as localities we have made many initiatives; but it definitely does not stop there, because it does not help... Factory Antigua, for example: It is useless for us that the Antigua factory be a water management and reuse model if the community of Antigua, Guatemala, as such, does not use water well, because the phreatic mantel is shared by all.
Then we will face difficulties in 20 years if we as a company do not assume the leadership of working directly with the community of Antigua, with the Municipality of Antigua, and with the water companies of Antigua, in the water stewardship initiative.
So, what do we do? Lead with knowledge, bring expert people, promote initiatives of conscious use within the community to ensure this water supply.
Right now I saw that the Municipality of Antigua, Guatemala is also being promoted. We are working together with Antigua on the restoration of the Pensativo River; this to have a clean source and a source that serves not only as water, not only as a water resource, but also serves as a recreational area, as a enjoyment area, a route that passes through all of Antigua, which is currently a dump; well then collaborate with the community to make it a park, a natural park.
So then, it is this kind of activities how we... This is what we do with water; Well, I've already told you more or less: Water on roofs, water treatment plants and therefore the reduction in use per ton produced.
And finally our commitments to the planet: Reduction of CO2 emissions, renewable energy, reduction of energy consumption, refrigerant control, zero waste to the landfill, and the WASH initiative (which is about water).
And that, well then, gentlemen, is what summarizes what Nestlé considers that, at least here in Guatemala (in other countries, as I told you, other activities are carried out)... as here in Guatemala, we manifest and create shared value, in this case for the more than 17 million Guatemalans.