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Thursday 13th of January 2011
May 11, 2010    

Nestle opposes corporate philanthropy

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by David Masters
Nestle opposes corporate philanthropy

Companies should not waste shareholders’ money on philanthropy, the chairman of Nestle claimed this week.

Peter Brabeck-Letmathe, chairman of the Switzerland-based food giant, said corporate philanthropy is a “misuse” of shareholder money, Bloomberg reports.

“I’m personally very much against corporate philanthropy,” Brabeck said in a television interview.

“You shouldn’t do good with money which doesn’t belong to you.”

Society’s problems are the joint responsibility of government, civic groups, and businesses, Brabeck said, adding that throwing money at problems can worsen rather than improve the situation.

“Most social problems are extremely complex,” he said.

“You think at first glance you solve a problem here, but the reality is you’re just creating another one somewhere else.”

Nestle’s microfinance programme provided $27 million in small loans to farmers and suppliers in 2009.

Last week Brabeck said Nestle’s European workforce is failing to work hard enough.

“We have the problem of the hours people are working,” he said.

“If you look at the hours per capita worked in Europe, they are substantially below the rest of the world.”

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Tags: corporate philanthropy, , lazy, , Nestlé

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