Shared value and shared riches

The report came inside a white tote bag that looked smart and sharp but, upon closer inspection, is actually made from woven sackcloth — usually used to hold rice grains. It was certainly a charming way to bring the humble “sako” upmarket.

Attached to the bag handle was a card explaining that Nestlé, which had sent by courier its 2016 “Creating Shared Value” report, was “incorporating livelihood and zero waste components in the distribution” of the document. This was done mainly by the use of the bag made from “upcycled” sacks from Nestlé’s Tanauan (Batangas) factory and sewn by women in the surrounding community.

The bag-making project, it turns out, is part of the company’s “Cut and Sew” program, described as a “livelihood project where unemployed women from the area were taught needle and thread work under the government’s Technical Education and Skills Development Authority (Tesda) Livelihood program.”

Already two decades old, the program, says the report, “is now a major revenue source for locals.”

It is indeed a “shared-value” transaction between the local sewers, most of them residing in Barangay Bagong Pook in Lipa where Nestlé’s factory is found, and the factory’s workers and management.

“The ladies of Cut and Sew supply the factory’s requirements for uniforms (pants, shirts and jackets), laboratory gowns, hairnets, shoe covers and rags,” says the report. Every year, the demand for Cut and Sew’s products has been increasing, such that by 2016 purchase orders totaled over P14 million.

Notes the report: “By engaging the locals for their sewing services, Nestlé has expanded its economic footprint beyond providing direct factory employment and continues to provide opportunities for growth in the community.”

This economic and social experiment is not only confined to Lipa. The project has been expanded to other areas where Nestlé has a presence: Tanauan City in Batangas, Pulilan in Bulacan, and Cabuyao in Laguna. The economic benefits redounding to the locals have been just as impressive as in Lipa. The Tanauan site started operations in 2015 and both revenue and garment production doubled within just one year. The women of Cabuyao have also enjoyed a sustained increase in income over the past three years, indicating, says the report, “much potential for alternative livelihood projects in these areas.”

It is indeed teamwork between the Nestlé factories and the surrounding communities. Cut and Sew is just one livelihood project where the two entities engage in “shared value.” Other projects involve a global initiative to ensure sustainable supply of quality green coffee, with Nestlé Philippines aiming to increase the supply of local robusta coffee which would in turn help local farmers increase their yield and their income from coffee.

“Farmville” is a pilot effort in Pulilan, Bulacan, through which housewives were trained, supplied with material and seed capital to grow vegetables in a plot of land donated by Nestlé. The produce are then sold in the factory, canteen and to employees, and sometimes to local residents.

“Business on Wheels” is another attempt to reach out to struggling entrepreneurs through door-to-door selling of Nestlé products. To date, says the report, the average daily income of a participant is between P600 and P1,000, certainly a huge boost to poor families’ economic security.

Another program is “Massage from the Blind” in Pulilan, where factory employees can avail of massages at their wellness center from a group of visually impaired massage therapists.

From garments to massages, Nestlé proves that it is possible for communities and businesses to work together to provide a better life for all. On a larger scale, also documented on the report are efforts dealing with education, environmental protection, nutrition and sports development.

Now 105 years old in the country, Nestlé is showing the way not just in good corporate citizenship and corporate social responsibility, but also in partnering with communities and individuals to better their lives and win the future.