1. CSR at Mercado

CSR s embedded in the business philosophy of Mercado. At Mercado, the business operations and processes are designed in a way that they do not become an obstacle or a burden in the way of people’s and the environment’s wellbeing. At the same time, these processes and designs boost business growth. The systematic design of operations at Mercado enables the management to ensure that the organization achieves sustainable business growth by reducing attached risk factors as well as through community building goals and ambitions. Mercado strives to increase its social impact and influence on the environment and in people’s lives- by focusing on three big goals. 

1.1. Values at Mercado

Mercado works for CSR through the CSV approach. This is made easier to incorporate in the company systems because of the core values practised at Mercado. These are:

Respect – for every one

• Trust
• Integrity
• Honesty
• Accountability

1.2. CSR goals at Mercado

1.2.1. Improving livings standards for communities through increasing employment opportunities

Mercado believes in working for the people, and working with the people. With the growth of the business across the world, Mercado ensures that it creates new employment and livelihood opportunities for millions across the globe. This is done through direct employment and contracts, as well as through inclusive business opportunities.

1.2.2. Enhancing the health and wellbeing of communities engaging with Mercado

Mercado works with communities at large and aims to help them become healthier and happier. Mercado provides nutritional boosting and support to communities where it runs operations, as well as to other communities living in regions marked below poverty. Additionally, Mercado also produces and distributes health and hygiene products to enhance the wellbeing of its customers along with the various communities it has engaged with.

1.2.3. Reducing environmental footprint

Mercado works towards reducing its environmental footprint by ensuring that it allows the legislation regarding carbon production and release. Also, Mercado works towards designing operational processes that reduce water and land pollution. All products manufactured and distributed by Mercado come with a disposal method to reduce wastage, and increase recycling. 

2. Creating shared value (CSV) at Mercado

Mercado works hard to create value for not only the shareholders but for the society at large. This approach of creating shared value has enabled impressive business growth for Mercado, as well as allowing its expansion regionally as well as in its product portfolio. Through creating shared value, Mercado brings value to the lives of communities where it operates by influencing those aspects of the society which intersect and coincide with the business offerings and business operations.

2.1. How to maximize value creation?

Through the CSV approach, Mercado can create the most value in the following aspects:

2.1.1. Nutrition

Mercado focuses on investing in the health of communities by focusing on nutrition and medication, as well as on sanitation and hygiene. The primary focus remains on ensuring health safety for children and infants.

2.1.2. Water

Mercado works hard with third parties and external as well as internal support systems to ensure that its operations do not cause water damage. In addition, it administers all its internal sewage plants to dispose of waste optimally without risking water life.

2.1.3. Air cleansing

Mercado maintains carbon units as per legislation in all its operations across the globe. The company also takes responsibility for ensuring that all its industrial sites and operations are placed away from residential areas to reduce maximum exposure of plant operations to the public.

2.1.4. Rural development

 Mercado strives to develop communities where it operates. This includes rural communities and settlements from where Mercado gets its raw materials and inputs as well as labour. Mercado created varied employment and livelihood opportunities for these communities to help them raise their living standards and quality of life.

3. Commitments made by Mercado

Commitments at the Mercado have helped shape its CSR and CSV approach based on multiple trends from across the globe. These commitments have helped Mercado maintain focus in giving back to the community as well as in developing a more sustainable environment and workplace. Commitments are the long term goals that Mercado wants to fulfil and achieve in the following different aspects:

3.1. For individuals and families

3.1.1. Living healthier lives

For families and communities, the CSV approach of Mercado focuses on helping individuals attain a balance between healthy nutrition and physical exercise as a means of a healthier lifestyle and healthy living. With today’s work style and busy schedules, this is quite a challenge. Mercado works intending to develop programs and products to help communities manage time well and stay motivated towards increasing their wellbeing.

3.1.2. Having nutritional knowledge

Mercado works with the long term aspiration of enhancing the lifestyles of communities. The company plans to do it by sharing information regarding nutritional facts, and by raising awareness of nutritional intake. The company does this by not only making the nutritional value available for its own manufactured products but also develops programs and information sharing networks to help individuals learn about healthy eating and make informed dietary decisions.

3.2. For communities

3.2.1. Rural development

Mercado works towards developing rural communities-especially where it is operational and present. The company engages not only in employment creation but also infrastructure development and education deployment programs to help communities improve their living standards. Mercado also conducts vocational training programs frequently.

3.2.2. Promoting diversity

Mercado also works towards inclusion through its diversity programs. The company has designed programs and policies to ensure the inclusion of all community groups in the employment cycle. In addition, the company also conducts training and skill enhancement sessions for all community groups –including disabled and special persons

3.3. For the planet

3.3.1. Protecting water

Mercado understands the need for protecting water resources across the globe and is also an active fighter for water preservation. With the high scarcity of clean drinking water, Mercado works and strives to provide communities with clean drinking water through having installed filter plants

3.3.2. Protecting natural resources

 With increased urbanization, natural landscapes of forests and grasslands have quickly turned into urban centres. Mercado ensures that all its operational sites are designed in a way that they do not harm or risk the natural ecosystem. In addition, the company works towards protecting the environment by building green spaces.

3.3.3. Safeguarding the environment

The operations of Mercado, like other players in the industry, are being affected by the climatic changes, and the weather alterations. To fight this change, and to safeguard the environment, Mercado works towards creating safe green spaces through high rate plantations. This is to ensure environmental sustainability and enrichment of the ecosystem.

4. Value chain at Mercado and CSR

At Mercado, SCR is embedded in the company DNA. Mercado ensures that the CSV approach is integrated into all operations and systems at the company, including THE VALUE CHAIN.

4.1. Supply chain

4.1.1. Rural development

Mercado allies with farmers and other partners to obtain the high quality raw material. In doing so, the company ensures that it invests in the wellbeing in the development of its partners and related communities through educational opportunities as well as various training programs and infrastructure development.

4.1.2. Responsible sourcing

Mercado participates in responsible sourcing. All its partners throughout the supply chain and for raw materials have been tested against set ethical backgrounds to ensure that all raw sources and materials are obtained from partners doing sustainable business.

4.1.3. Animal welfare

In all its sourcing, Mercado ensures that no animals are harmed. Mercado makes sure that all animals are fed high quality fodder, and that they are kept in a clean and safe environment. In addition, Mercado also provides safe breeding grounds for animals and regularly authorizes veterinary check-ups for all animals in partner farms.

4.1.4. Human rights

Mercado is also particularly careful to ensure that all human rights are upheld in its business operations. This includes no child labour, and inclusive diversity, amongst other things. Also, the business operations of Mercado also include high dependence on local workers for labor and management – making sure all local and global human rights are followed thoroughly.

4.2. Manufacturing

4.2.1. Water, sanitation and hygiene

During the manufacturing process and value additions, Mercado maintains an emphasis on water, sanitation and hygiene. All plants and manufacturing units operated by Mercado have an authorized sanitation system in place which ensures minimal water wastage. Besides, all industrial waste is disposed of off through authorized channels only – ensuring that no natural water body and water source is harmed or polluted.

4.2.2. Natural resource stewardship

Mercado is also an active pioneer of natural resource stewardship. Mercado has devised ways to ensure that natural resources are sustainably used for industrial operations, and are not damaged during business processes. Mercado shares this knowledge publicly for the overall welfare of the environment and the planet.

4.2.3. Women empowerment

During its manufacturing process, the Mercado also ensures to employ women labour in various managerial and operational level jobs. These women are usually from local communities and are trained for new skill development and enhancement. In doing so, Mercado ensures that women are equipped with the confidence and decision making abilities s that they advance not only in their professional but also in their personal and social lives.

4.3. Retail and consumers

4.3.1. Responsible marketing and influence

Mercado makes sure to use ethical means of marketing its products. This means not only does it disseminate rightful information and data regarding the company, but also makes sure that it does not use unethical appeals in its marketing communication.

4.3.2. Marketing to children

Mercado is also careful in its marketing to children so that it is not exploitative. Rather, marketing to children is done through influencing adults towards the products offered by Mercado.

4.3.3. Product Safety

Mercado ensures product safety in consumption at all times. This is done not only through mentioning nutritional value and facts but also through a clear statement of manufacturing dates and batches. This is to make sure that consumers are aware of the product quality and life cycle. Also, the company mentions clear ways and processes of disposing of the products to ensure that the environment is sustained and not harmed.

5. Working towards achieving sustainable goals 

 The CSR and CSV approach at Mercado is closely guided by the sustainable development goals chalked out by the United Nations. Through working on the attainment of the SDGs, Mercado, and many other companies work together to create a peaceful and harmonious future that has sustainable resources and environment.    

Through connecting Mercado’s goals and commitments with the SDGs, the company has created avenues of channelling a positive impact on society through its operations and business as a whole.

5.1. No poverty

• Mercado creates opportunities for skill enhancement and vocational training
• Mercado also provides equal employment opportunities to all labours from the local communities
• Mercado promotes and supports small business ventures through inclusive business support and funding – especially for women who are micro-entrepreneurs in the community

5.2. Zero hunger

• Mercado works towards implementing a model of less food wastage and food loss – in the manufacturing as well as the supply chain process
• Mercado provides subsidized products in communities that are living below the poverty line, as well as in communities where it is operational and has industrial units and sites
• Mercado has developed recycling plants in local communities to ensure that there is no food wasted during consumption, and it is recycled into other products needed for a sustainable environment

5.3. Clean water and sanitation

• Mercado strives to ensure high water efficiency and water sustainability in all business operations and processes
• Mercado advocates and also internally implements positive water policies
• Infrastructure developed by Mercado in different rural communities and settlements ensures authorized sewage networks and lines to avoid dumping in freshwater reserves

5.4. Life on land

• Mercado works towards establishing the green supply chain
• Mercado ensures that no Green spaces are destroyed for its business and industrial purposes, and also works towards creating healthy green spaces through numerous plantations
• Mercado places a high emphasis on maintaining regular health check-ups for all community members – free of cost, and also focuses on animal welfare for farmers

5.5. Good health and well being

• Mercado works towards improving the living standards and quality of life of communities it engages with
• For farmers, Mercado has also improved farm economics
• Mercado works towards protecting the children in the supply chain processes, as well as creates diverse livelihood opportunities for adults

5.6. Quality education

• Mercado provides a hands-on learning opportunity for young adults from local communities through internship opportunities
• Mercado also sponsors various scholarship programs for different grade levels in communities where it is operations
• Mercado has inaugurated primary schools in three different regions where it has operations – in rural settlements – as a step towards achieving quality education for all.