History of Nestle in Pakistan:

A consequence of joint venture arrangement between Nestle S.A. of Switzerland andMilkpak Ltd. in 1988, the existing production facility of Milkpak in Sheikhupura became aPart of Nestle Milkpak. The Milkpak Sheikhupura factory commenced operations in 1981 asa producer of UHT milk. By 1988, it had expanded its operation and was also producingbutter, cream, desighee - all under the brand name of MILKPAK and juice drinks under thebrand name FROST. To meet the demands of the large food market that Pakistan offered,Nestle Milkpak reorganized and reinforced the production of existing brands and gave shapeto new production lines. The first to come was a milk powder plant, which not only beganProducing NIDO in 1990 but was also critical to the production of several milk-basedProducts in the future. With the installation of the roller dryer in 1990, the first such productTo come was CERELAC - an internationally recognized brand of infant cereal. This wasFollowed by LACTOGEN 1 & 2 in 1991. The year 1992 saw the introduction of teaWhitener EVERYDAY and milk powder in bulk packing named GLORIA. MILO andNESLAC came under production in 1994 and MILO RTD in 1995. Local packing ofImported coffee under the name of NESCAFE 3 in 1 commenced the same year. In 1996,Nestle Pak Ltd first confectionery plant of POLO Mint was installed and the production ofNESTLE PURE ORANGE JUICE commenced. Packaging of coffee under the brand name ofNESCAFE CLASSIC was undertaken the same year. In 1997 NESTLE WHEAT and twovariants of POLO viz. Strawberry and Orange was introduced. In 1998 a substantial capitalinvestment was made to launch several products and install two new state-of-the-artTechnologies. SWEET TREETS were launched in early 1998. The addition of two flavors ofPOLO: Blackcurrant and Strong Mint increased the number of POLO variants to five.

A new variant Lemony was added to the range of popular FROST fruit drink flavors and anew 1-liter packing of FROST was introduced. Flavored milks under the brand FRESH &FRUITY came under production on the new Tetra Filling Machine equipped with the modern"Slim" format. MILO RTD and UHT.

Corporate Social Responsibility:They believe that every single company, no matter where in the world it operates, oughttobe fully integrated into the local social, cultural & economic life. They must be goodcorporate citizens, and give back to the societies to which they belong. There are two waysof fulfilling their responsibility and practicing corporate

Social Responsibility:

Through social investments: giving to charities, leading and supporting cultural or

welfare initiatives.

Through the realization that businesses create social and environmental impacts, both

positive & negative, through the daily operations of their value chain.

Responsibility and Society :

Taking the Nestlé concept of corporate Social Responsibility to heart, they are deeplyinvolved in social investment and humanitarian aid. They are committed to Pakistan's longt ermbetterment, and strictly follow the code

Corporate governance:

• They deal fairly with stakeholders.

• Serves there consumers through safe, high quality products & communicate with theResponsibly.

• Adhere to environmentally safe industrial practices

• Actively involved in several social action programs (SAPs) to improve the lives o

Their country's under-privileged people. They adhere to the global Nestlé philosophy of Creating Shared Value. There dairy suppliers in the Punjab's milk district can attest to the agricultural and technical support they offer them. During their manufacturing process they are careful to minimize environmental impact and value employee welfare highly. Finally, they try to benefit there consumers by spreading awareness about healthy nutrition and lifestyles as well as constantly developing or improving existing products for health, nutrition and wellness.

Social Responsibility:

In October 2005, the biggest natural calamity in their history struck Pakistan. Thousands diedand millions were left homeless after a massive earthquake hit their mountainous northern areas. In step with the rest of the nation, Nestlé Pakistan responded immediately, putting its infrastructure and resources to work in the affected areas.

Nestle Culture:

We found a very strong organizational culture in Nestlé. It believes on team work. The headoffice gives the guide lines to the zonal managers and tells them their budget limitation. Thezonal managers are totally independent in making their plans and use their budget. Similarly,the regional managers are independent in there areas. They are given a certain target and afixed amount of budget. This is their own discretion to make plan and get the targeted resultin the given budget. The internal control system of the organization is also very tight andeffective. The check and balance system is also very strong. Due to this strong check andbalance, they can make correction in their plans. If at any time or at any place, the plan doesnot work properly, the manager knows it at a right time and they can make it well. Nobody isallowed to violate his power. They are not completely satisfied their current performance andwork for the betterment and development of the system. This is possible only through the

collective commitment.

Nestle Pakistan Products:

We believe that food plays a key role in achieving a well-balanced person. And so ourphilosophy is Good Food for a Good Life! At Nestlé, our products are developed keeping ourconsumers, their preferences and health in mind. Millions of consumers the world over trustNestlé products for good reason: when they choose a Nestlé product they have the satisfactionof choosing quality, taste, variety, convenience and the good nutrition. With over 140 years ofexperience and expertise, we take great pride in bringing you a portfolio of health andwellness because happy, healthy consumers are important to us.

Benefits:

The following benefits are provided to all employees, with no discrimination:

Leave-Personal & Medical (fixed no. per year)-

Children Education Assistance Scheme-

Provident fund-

Retirement Gratuity Scheme.

Group Insurance & Accidental Insurance Scheme

Conveyance Reimbursement Scheme.

Group Insurance & Accidental Insurance Scheme.

Conveyance Reimbursement Scheme.

Rewards:

‘Passion to Win’ awards- These quarterly awards have been institutionalized toreward those who over-achieve their targets. Long-service Awards- To recognizeemployees who have been with the company for more than 30 years.

Nestle Idea Award’- It was found from the correspondent that the company institutesNestle Idea Award every quarter to recognize and award employees who come upwith relevant and innovative ideas which have the potential of being implemented atNestlé. For all aspects of Reward Nestle apply the fundamental principles outlinedbelow. Reward Principles.

Performance Driven - The level of your Reward is linked to your performance,hence the highest performers will see the greatest Reward. There is also a direct linkbetween the performance of the business and the Reward we're able to offer.

Competitive - We benchmark all aspects of Reward to ensure we offer all ouremployees a competitive Reward package.

Inclusive - Our Reward programmed is designed to reflect the valuable contributionwhich every employee makes, not just senior managers.

ETHICAL ISSUES

The company not a binding the rules

The company not taking the moral responsibility for infant morality.

UNETHICAL ISSUES

They increase their price without informing there customers .

They offer their products at very low cost but when the customer check the expiry date that the product will be very close to expire,