Creating a Corporate ResponsibilityCulture: the Approach of Unilever UK

About Unilever

• Founded: 1929, United Kingdom

• CEO: Paul Polman

• Industry: FMCG (Fast Moving Consumer Goods)

• Subsidiary in India: Hindustan Unilever Limited.

• World Famous Brands under Unilever:

S. No. Area's of CSR Unilever Commitment Unilever Performance

GOAL 1:IMPROVING

HEALTH & WELLBEING

1 Health & Hygiene

By: 2020Help more than a Billionpeople to improve their

Health & Hygiene

By: 2013303 Million Reached

183 Million - Lifebuoy55 Million - Pureit

52 Million-Toothpaste Brands13 million- Dove Self Esteem Programs

2 Improving Nutrition

By: 2020Double the proportion ofour portfolio that meets

highest nutrition standards

By: 201331% of Unilever's Portfolio by volume

met highest nutrition standards

GOAL: 2REDUCING

ENVIRONMENTALIMPACT

1 Green House GasesBy 2020:

Half The Green House Gas Impact of products

By: 2010Greenhouse Gas Footprint impact

per consumer use has increased by5% (approx).

2 Water UseBy 2020:

Half The Water Associated with Consumer use of products

By: 2010Water Impact per consumer use

has increased around 15%

3 Waste and PackagingBy 2020:

Half The Waste Associated with Disposal use of products

By: 2010Waste Impact has reduced around 11%

4 Sustainable Sourcing

By 2020:100% Sourcing of Agricultural Raw

Materials Sustainably

By: 201348% of Agricultural Raw Materials

Were Sustainably Sourced by Unilever

GOAL 3:ENHANCING LIVELHOODS

1 Fairness in Workplace

By: 2020Unilever to advanceHuman Rights Across

their operations & extendedsupply chain

Resultant Commitment to be given in 2015

2 Opportunities for WomenBy: 2020

Unilever to empower5 million Women

Resultant Commitment to be given in 2015

3 Inclusive BusinessBy: 2020

Positive Impact on livesof 5.5 Million people

Resultant Commitment to be given in 2015

Corporate Responsibility Culture: Unilever Approach

• 3 Major Considerations:

1. Corporate Culture & Values

2. CSR is not about Teaching Ethics

3. Consistent Communication

•Hiring Staff from Within- UCMDS1

1- Uniliver Companies’ Management Development Scheme

Unilever Approach to Corporate Responsibility

Recruiting and Training Graduate Managers.Attracting Talent:

Annual Graduate Recruitment Activity-1954.

Selecting Graduates from Pool of Applicants.

Important for Applicant to Chose Company.

FIVE REASONS TO JOIN Unilever

1. Unilever is one of the world’s greatest consumer goods companies and plays an active role addressing global environmental and social issues.

2. Our brands include some of the biggest and best-known products in the world – they’re a familiar part of daily life right around the globe.

3. As a graduate, you’ll get your teeth into a real job from day one.

4. You’ll receive all the training and support needed to launch a management career – ideally in just two years.

5. And you’ll work with bright, stimulating often brilliant people who haven’t

had to sacrifice their individuality to have a highly successful career.

RESULTS OF PROJECTION

•42% of Targeted Graduates interested to work for Socially Responsible Company

•30% attached to traditional way of above average salary.

•Retention of People.

•Corporate Responsibility: An important factor for a Job.

Selecting Leaders

Uniqueness:Unilever UK: No specialization Degree required for Jobs in

Marketing, Finance or Sales.

oWhy?- Attitude, Behavior Competencies and Character: Better Indicator of Leadership.

3 Round Selection Process

Judgment of Individual as a Whole.

Leadership Competencies

• Self Confident IntegrityAct With Integrity & Principles within themselves

Taking Difficult Decisions

• Breakthrough ThinkingGeneration of New Ideas.

Conceptual Thinking for Competitive Business Advantage.

• Organizational AwarenessFormal & Informal Structure of Organization

Leadership Competencies

• Change CatalystExcitement for New Opportunities.

Positive Response to Challenges.

• Objective Analytic PowerSolving Complex Situation

Skill for Problem Breakdown into Components.

• Developing SelfSelf-Development Activities

Learning from Experience

Leadership Competencies

• Team CommitmentCooperative Working Environment

• Team LeadershipLead in Problem Solving & Clarification of Job Roles

• Business MotivationProfit, Business Competition & Employee Satisfaction.

• Passion for GrowthDesire to go beyond Targets

Ambitious

TRAINING MANAGERS

Code of Business Principles

• Principles which describes how company will behave in its dealings with internal and external stakeholders

• Started training programs

• To create awareness about major issues that may breach company Business Principle Codes

Code of Business Principles

• Standard of conduct- Operations with honesty, integrity, openness and respect to human rights

• Obeying the law- Comply with laws in whichever country they operate

• Employees - Believes in diversity in working environment

Code of Business Principles

• Consumers- Provides branded products and services

- Offers value in terms of price and quality

• Shareholders- Functions on good corporate governance

- Provide timely, reliable, regular information

• Business partners- Establish mutual beneficial relations

Code of Business Principles

• Community involvement- Trusted corporate citizen as integral part of society

• Public activities- Encouraged to promote business interests rather than party interests

• The environment- Aim at developing sustainable environment

Code of Business Principles

• Innovation- Apply scientific innovation to meet customer needs

• Competition- Believes in fair competition

• Business integrity- Transparency in nature of work

Code of Business Principles

• Conflict of interests- Personal activities and financial interest should not conflict with responsibilities

• Compliance-monitoring-reporting- Abiding by these principles forms essential element in business success

General Skills Training

Incorporated in 2004, the Corporate Responsibility and Sustainability module specified :

1. Unilever is committed to Corporate responsibility and involves taking sustanable development seriously;

2. Unilever has 3 sustainability programs in water, agriculture and fish, where it invests substantial amounts;

3. There are specialists in the UK (internal and external) who are able to support Unilever employees on these issues;

4. Understand the meaning and importance of sustainable development;

5. Each person and each business function has a role to play in making a contribution to sustainable development in the company;

6. Sustainable development is a complex challenge to face with conflicting imperatives from a range of stakeholders;

7. Ability to explain what Unilever’s commitment to sustainable development is, as well as one or two ways they can contribute as a business function.

Views Of Young Managers

A survey of the trainees in 2005 showed the real effectiveness of the new procedure as:

1. 93% agreed to understanding of Corporate Responsibility and its importance to Unilever;

2. 100% agreed that it helped them to indentify Corporate Responsibility issues in their own jobs;

3. 62% agreed on the significance of this training to find issues.

Some Feedbacks

• ‘I have always viewed Unilever as an ethical employer and this was confirmed by the presentation.’

• ‘This hasn’t changed my perception of Unilever as I think that CSR is already widely publicized.’

• ‘I feel mildly cynical about Unilever’s motives – it seems environmental issues are addressed to increase sales rather than [for reasons of] genuine environmental care.’

Continuing Corporate Responsibility Training

• Corporate Responsibility made a part of Annual training program;

• Compulsion of CR training for all the employees, fresh graduates to mid career experts;

• CR training shifted to respective Functional units;

• Central training support to all Functional Units.

Reinforcing The corporate Responsibility Culture

Role Of CSR professional

• Maintains overview

• Advice senior management

• Take care of potential gaps and issues

CSR professional Team

• Must be small to avoid complexity

• Have accountability of tasks

• Integration of work become easier.

How Unilever embed CSR in Core Business

• Unilever Organization Structure

Supports Integration.

Small central team is allocated

• Most Work of CSR in supply chain, Human Resources, Marketing and R&D sector.

Strategy Period Features Advantages Disadvantages

Path to Grow

Strategy

1999 -2004

Brand portfolio of 1600 became 400 for better focus. 150 units closed down for cost control,

55000 employees laying off

Focus on core competencies. 400

brands contributed 93% , focus on brands &

decision making. Profit increased by 4-5%

Sales dropped by 15%, Profits fell by 13%, Top Line Growth

reduced to 3%, Share price felled down by 7%, EPS effected, High

cost & advertising budget for maintaining non performing

1200 brands

Growth to vitality

Strategy

2005 -2010

High concentration on Emerging markets.

Company simplified its management structure,

20000 job cuts in Europe. Target: 3 - 5 % Organic

growth

41% revenues were generated in developing

countries. Focus on advertising and

promotion

Tough Years for company

Making corporate responsibility relevant

• re-examine some of the community investment programme.

• Promote role as business advisors rather than “internal police”

• Positioning as a service specialist.

• Pursuing scattergun approach for building broad base support of CSR activities.

Conclusions

1. Corporate culture and corporate responsibility

2. Enabling, not teaching

3. Giving permission for employees to use their own personal values

4. Consistency of communication

5.

Legally compliant profitable business

Sustainable, social

profitable business

THANK YOU

AT UNILEVER, IT’S NOT JUST ABOUT SOAP OR SHAMPOO. IT’S ABOUT HOW PEOPLE LIVE.

IT’S ABOUT HELPING PEOPLE GET A BETTER QUALITY OF LIFE AND IN DOING SO HELPING

US BUILD A STRONGER & BETTER BUSINESS