TheNestléManagementandLeadershipPrinciples!#$%&©20034!#$%&'()*+,-.()20037()!(!)!!#$%&'()*+,-./!#$%&!!#$%&'()*+,-./0©April2003,NestecLtd.,HumanResourcesDepartmentJuly2003,Nestlé(China)Ltd.,(Chinesetranslation)Conceptanddesign:NestecLtd.,MarketingCommunications,CorporateIdentityandDesign,Vevey,SwitzerlandPrintedbyBeijingGuangmingJiechengCompanyImageDesignCo.,Ltd.18TheNestléLeadership:AddingValue22GeneralPrinciples26OrganisationalPrinciples28ManagementCommitmentTheNestléManagementandLeadershipPrinciplesTableofcontents10Nestlé–AHumanCompany14TheNestléValues14Highcommitmenttoqualityproductsandbrands15Respectofotherculturesandtraditions15TheNestléculture!#$%&12!#16!#16!#$%&'()17!#$%&17!20!#$2427!29!#RPTheNestléManagementandLeadershipPrinciplesR!#$%&TNestlé,overitslonghistoricaldevelopmentfromasmallvillageoperationtotheworld’sleadingfoodCompany,hasdemonstratedanenviablecapabilitytoadjusttoanever-changingexternalenvironment,withoutlosingitsfundamentalbeliefsandcorevalues,soimportantforlong-termsuccess.Overtheyearstocome,thiscapabilitywillcontinuetobechallengedevenmoreasNestléisgrowinginsizeandcomplexityuptoadimensionwhichdemandsacontinuousevolutionofitsorganisationandofthewayinwhichitisrun.Thispermanenttransformationwillbedrivenbytheneedtomanagecomplexitywithahighlevelofefficiency,leveragingalltheintangibleswhichenhanceourcompetitiveedge.Ourpersonalmotivationbasedonwillingnesstolearnandtoquestionwhatwearedoingandwhywearedoingit,combinedwithourlongstandingrespectforcertainNestlévalues,willassureoursuccess.Insuchasetting,everyemployeeofNestléhasbothanindividualandcomplementaryroletoplayinbuildingtheCompanyoftomorrow.TheBasicNestléManagementandLeadershipPrincipleswereissuedin1997.ThefirstversionreflectedthespecificsituationoftheCompanyatthattime,andintendedtobuildabridgeatamomentwhenitwasessentialtoensurethatourNestlévalueswererecordedforfuturereference.Thenewversionnotonlyre-emphasisesthevaluesthathavebeenandalwayswillbethoseofNestlé,butfocusesstronglyontheskillsthatwillensureNestlé’sfutureovertheyearstocome.ItisalsoalignedwiththeCorporateBusinessPrinciples,whichhavebeenrevisedin2002.Wewishthateachofyoucarefullyreadthisdocument,shareitwithyourcollaborators,takeprideinadheringtoitsprinciplesandimplementthemwithconvictionandenthusiasm.Webelieveindeedthattheseprinciplesaretheretobelivednotonlythroughdiscussionswithcolleaguesandduringtrainingsessionsbutmainlybytakingconcreteactionintheworkplace.Theseprinciplesshouldbeappliedeverywhereandatalltimesinourorganisation,thusbecomingatangibleexpressionofourcorporatecultureandakeycomponentofoursuccess.P.Brabeck-LetmatheChiefExecutiveOfficerTheNestléManagementandLeadershipPrinciplesV!!#$%&'()*+,!#$%&'()*+,-%.!!#$%&'()*!#!#$%&!#$%&'()*+,-./!#$%!#$%&'!#$%&'!#!#$%&'()*+!!#$%&'()*+,!#$%&'!#$%!#$%&'()*+,-./!!#$%&'()*!#$%&'()*+,!#$%&'!#$%!#$!#$%&'(!#$%&'()*+,-!#$%&'()*+1997!#$%&'()*+!#$%&'()*+,-!#$%&'()*+,-!#$%&'()*+,-.!#$%&'(!#$!#$%&2002!#$%!!#$%&'()*+,-!#$%&'!#!#$%&'()*+,-.!!#$%&'()*!#$%!#!!#$%&'()#*+,-.!#$%&'(#)*+,-.!#$%&'!#$%!#$%&'(!)*+!#$%&NNTheNestléManagementandLeadershipPrinciplesNestléAHumanCompanyNestléisahumanCompanyprovidingaresponsetoindividualhumanneedsthroughouttheworldwithspecificconcernforthewellbeingofbothitsconsumersanditsemployees.Thisisreflectedinitsattitudeanditssenseofresponsibilitytowardspeople.Nestléaimstoincreasesalesandprofitsbut,atthesametime,toraisethestandardoflivingeverywhereitisactiveandthequalityoflifeforeveryone.NestléisalsoconvincedthatitisthepeoplewhoformthestrengthoftheCompanyandthatnothingcanbeachievedwithouttheircommitmentandtheirenergy,whichmakespeopleitsmostimportantasset.InvolvementofpeopleatalllevelsstartswithappropriateinformationontheCompany’sactivitiesandonthespecificaspectsoftheirwork.Throughopencommunicationandactiveco-operation,everyoneisinvitedtocontributetoimprovementsenhancingCompanyresultsandpersonaldevelopment.NP!#!#$%&'()!#!#$%&!#$%&!#!#$%&'()!!#$%&'()*!#$%&'$()*+,-.!#$%&'()!#$%&'()*+,!#$!#$%!#$%&'()!#!!#$%&'()*+!#$%&'()!#!#$%&!#$%&!#$%&'()*+,-!#$%&NRTheNestléValuesHighcommitmenttoqualityproductsandbrandsWorriedbythehighlevelofinfantmortalityatthattimeandrelyingonscientificresearch,theCompanyfounder,HenriNestlé,createdarevolutionaryproduct,“FarineLactéeNestlé”(“NestléMilkCereal”),whichhashelpedtosavethelivesofmanychildrentheworldover.Nestlé’scoatofarms,thebirds’nest,whichreferstohisname,hasbecomeasymbolforourproductsbeingasafeharbourforourconsumers.Eversince,productsafetyandquality,Research&DevelopmentbasedinnovationcapacityandstrongbrandsareapriorityforNestlé.RespectofotherculturesandtraditionsFromitsinception,Nestlédevelopeditsbusinessinternationallyandbecameawareofthefactthatfoodproductshavetobecloselylinkedtolocaleatingandsocialhabits.ThatiswhyNestléfromtheverystarthasalwayssho