!"#$%&The NestlØ Managementand Leadership Principles©2 003 4 !"#$%& ( ' () )*+, 7 ( ) ( ! ) ! ! " !"#$%& ' ( )!*"+ #, $- %.!&/" !"#$%&'()*+,-./0©A pril 2003, Nestec Ltd., Human Resources DepartmentJuly 2003, NestlØ (China) Ltd., (Chinese translation)Concept and design: Nestec Ltd., Marketing Communications, Corporate Identity and Design, Vevey, SwitzerlandPrinted by Beijing Guangming Jiecheng Company Image Design Co., Ltd.
!"#$%&The NestlØ Management and Leadership PrinciplesTable of contents 10NestlØ A Human Company12 !"#14The NestlØ Values16 !"#14High commitment to quality products and brands16 !"#"$%&'()15Respect of other cultures and traditions17 !"#$%&15The NestlØ culture17 !18The NestlØ Leadership: Adding Value20 ! " #$22General Principles24 26Organisational Principles27 !28Management Commitment29 !"#R
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The NestlØ Management and Leadership PrinciplesNestlØ, over its long historical developmentThe new version not only re-emphasisesfrom a small village operation to the world sthe values that have been and always willleading food Company, has demonstratedbe those of NestlØ, but focuses strongly onan enviable capability to adjust to an ever-the skills that will ensure NestlØ s futurechanging external environment, withoutover the years to come. It is also alignedlosing its fundamental beliefs and corewith the Corporate Business Principles,values, so important for long-term have been revised in the years to come, this capability willWe wish that each of you carefullycontinue to be challenged even more asread this document, share it with yourNestlØ is growing in size and complexitycollaborators, take pride in adheringup to a dimension which demands ato its principles and implement them withcontinuous evolution of its organisationconviction and of the way in which it is believe indeed that these principlesThis permanent transformation will beare there to be lived not only throughdriven by the need to manage complexitydiscussions with colleagues and duringwith a high level of efficiency, leveragingtraining sessions but mainly by takingall the intangibles which enhance ourconcrete action in the workplace. Thesecompetitive edge. Our personal motivationprinciples should be applied everywherebased on willingness to learn and toand at all times in our organisation, thusquestion what we are doing and why we arebecoming a tangible expression of ourdoing it, combined with our longstandingcorporate culture and a key component ofrespect for certain NestlØ values, will assureour such a setting, every employee ofNestlØ has both an individual andcomplementary role to play in buildingthe Company of Basic NestlØ Management andLeadership Principles were issued in first version reflected the specificsituation of the Company at that time, andintended to build a bridge at a moment whenit was essential to ensure that our NestlØP. Brabeck-Letmathevalues were recorded for future Executive OfficerT
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The NestlØ Management and Leadership PrinciplesNestlØ is a human Company providinga response to individual human needsNestlØthroughout the world with specific concernfor the wellbeing of both its consumersand its employees. This is reflected inA Human Companyits attitude and its sense of responsibilitytowards people. NestlØ aims to increasesales and profits but, at the same time, toraise the standard of living everywhere itis active and the quality of life for Ø is also convinced that it is the peoplewho form the strength of the Companyand that nothing can be achieved withouttheir commitment and their energy, whichmakes people its most important of people at all levels startswith appropriate information on theCompany s activities and on the specificaspects of their work. Through opencommunication and active co-operation,everyone is invited to contribute toimprovements enhancing Company resultsand personal
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The NestlØ Management and Leadership PrinciplesHigh commitmentRespect of other culturesThey can be described as follows:to quality products and brandsand traditionsThe NestlØ_ Commitment to a strong work ethic,Worried by the high level of infantFrom its inception, NestlØ developedintegrity, honesty and at that time and relying onits business internationally and becameValuesscientific research, the Company founder,aware of the fact that food products_ Personal relations based on trustHenri NestlØ, created a revolutionaryhave to be closely linked to local eatingand mutual respect. This implies a sociableproduct, Farine LactØe NestlØ ( NestlØand social towards others, combined with anMilk Cereal ), which has helped to saveability to communicate openly and lives of many children the world is why NestlØ from the very starthas always shown respect for diverse_ A personalised and direct way of dealingNestlØ s coat of arms, the birds nest,cultures and traditions. NestlØ endeavourswith each other. This implies a high levelwhich refers to his name, has become ato integrate itself as much as possibleof tolerance for other ideas and opinions,symbol for our products being a safeinto the cultures and traditions where it isas well as a relentless commitment toharbour for our , adding also to the local environ-co-operate proactively with its own set of values laid out inEver since, product safety and quality,this document. Therefore, NestlØ embraces_ A more pragmatic than dogmaticResearch & Development based innovationcultural and social diversity and does notapproach to business. This implies beingcapacity and strong brands are a prioritydiscriminate on the basis of origin,realistic and basing decisions on NestlØ.nationality, religion, race, gender or age._ Openness and curiosity for dynamicFurthermore, NestlØ believes that itsand future trends in technology, changesactivities can only be of long-term benefitin consumer habits, new business ideasto the Company if they are at the sameand opportunities, while maintainingtime beneficial to the local for basic human values, attitudesIn short, global thinking and strategies canand be expressed through local actionand commitment._ Pride in contributing to the reputation andthe performance of the Company. This callsespecially for nurturing a sense of qualityThe NestlØ cultureand long-term achievement in the daily workbeyond fashion and shortsighted from its commitment to safety andquality and its respect for diversity, NestlØ_ Loyalty to and identification withis committed to a number of cultural values come partly from its Swissroots and have been developed during itshistory. They are also evolving so asto support the permanent reshaping ofthe
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The NestlØ Management and Leadership PrinciplesMembers of the NestlØ Management at_ A taste for initiative together with the abil-all levels are more concerned withity to create a climate of innovation and toThe NestlØ Leadership:continuously adding value to the Companythink outside the box. This implies the rightthan exercising formal authority. This canto make a mistake but also the readiness toonly materialise with a high involvementcorrect it and to learn from Valueof each employee and a common mindsetgeared to results. Contributing to results_Willingness to accept change and the abil-through project work and special assign-ity to manage becomes more frequent, reachingbeyond conventional boundaries in order to_ Adaptability of thought and deed, takingcontribute to wider group account the specificity and the com-plexity of the broader the responsibility of a NestlØManager, the more the following specific_ Credibility as a result of coherent action,criteria should be considered, in addition toleadership and skills, practical experienceand result focus:_ International experience and understand-ing of other cultures._ Personal commitment and courage. Thisincludes the capacity and the willingness toIn addition, broad interests, a good generaltake initiatives and risks as well as to main-education, responsible behaviour as welltain composure under fostering a balanced lifestyle are requiredto hold high-level management positions._ Ability to motivate and to develop people,addressing all those issues that allow othersto progress in their work and to developtheir capabilities._ Curiosity and open-mindedness as well asa high level of interest in other cultures andlife-styles. This also includes a commitmentto continuous learning and improving,as well as to sharing knowledge and ideasfreely with
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The NestlØ Management and Leadership PrinciplesNestlØ is more people, product and brandNestlØ is conscious of its socialoriented than systems oriented. Whileresponsibility, which is inherent in itsGeneralsystems are necessary, they should neverlong-term an end in Ø is as decentralised as possible,PrinciplesNestlØ favours long-term successful busi-within the framework imposed byness development and endeavours to befundamental policy and strategy decisionsa preferred Company for long-term orientedrequiring increasing flexibility. Operationalshareholders. However, NestlØ does notefficiencies, as well as the group-wide needlose sight of the necessity to improve short-for alignment and people development,term results and remains conscious of themay also set limits to to generate a sound profit each Ø is committed to the concept ofNestlØ seeks to earn consumers confidencecontinuous improvement of its activities,and preference and to follow and anticipatethus avoiding more dramatic one-timeconsumer trends, creating and respondingchanges as much as demand for its products. Therefore NestlØis driven by an acute sense of performance,adhering to and favouring the rules of freecompetition within a clear legal
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!"#$%&The NestlØ Management and Leadership PrinciplesNestlØ is in favour of and implements !" #$%&'pragmatically:Organisational ! !"#$%&'()*$+,-._ Flat and flexible organisations with few ! !"#$levels of management and broad spans !"#$%&'()Principlesof control, including project teams and task !"#$%&'(%)*+,-forces. Networking and horizontal communi-cation are encouraged with clear accounta-bility of the managers and the hierarchy. !"#$%&'()*+,- !"#$%&'!()*+_ Clear levels of responsibility and well- ! " # $!"#$ defined objectives are a must. Teamwork !"#$and networking do not affect the manager sresponsibility: a team has always aresponsible leader. ! " # !"#$%&' !"#$%&'()*+,_ A structure which assures operationalspeed and personal responsibility,with strong focus on results, reducingbureaucracy as much as
!"#$%&The NestlØ Management and Leadership PrinciplesMembers of NestlØ Management at all levels !"#$ % & '!()*are strongly committed to the Company,Management ! "! " # $#!"#$%&'its development and its culture as expressed !"#$%&in The NestlØ Management and LeadershipPrinciples. !"#$%&'()*+,$Commitment They practice what they preach and showthe example in their daily work. !"# $ % &!'"(#Apart from professional skills and insight, !"#$%&'()*+, capacity and willingness to apply ! " ! " these principles are the main criteria for !"#progressing in the organisation, regardlessof origin, nationality, religion, race, genderor
