Nestlé Chairman discusses good corporate governance

Nestlé Chairman Peter Brabeck-Letmathe discusses the Company’s approach to corporate governance in a recent video interview recorded with World Finance Magazine.

Mr Brabeck-Letmathe spoke to the United Kingdom-based publication at its 2011 Corporate Governance Awards ceremony in London, where Nestlé received the award for Best Corporate Governance in Switzerland.

The World Finance Magazine annual awards honour corporations which have achieved excellent levels of corporate governance; opting to serve the best interests of their shareholders with maximum transparency.

Accepting the 2011 award on behalf of Nestlé, Mr Brabeck-Letmathe explained the Company’s approach to business, emphasising that Nestlé is not “looking for short-term profit optimisation” but aims instead for “long-term sustainable value creation”.

He also maintained that good corporate governance involves regular and open communications.

He said: “We are in constant contact with shareholders. We listen very carefully to what they think, and what they think good corporate governance should be.”

“The creation of trust depends on good corporate governance. Employees want to work for a company that has integrity. Shareholders want to invest in a company that has good corporate governance. Consumers want to know how a company is being run, if it is honest, and if it is controlled.”

Mr Brabeck-Letmathe concluded by saying that good corporate governance is about instilling the “right values” into the people and the company.

He stressed that people observe how company leaders behave to see if there is a conflict between what is being said and “what is actually being lived”.

Nestlé’s 144th Annual General Meeting for shareholders will take place on April 14, 2011 in Lausanne. The speeches will be webcast live. More details can be found in our Events section.