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Creating a Corporate Responsibility
Culture: 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 & WELL
BEING
1 Health & Hygiene
By: 2020
Help more than a Billion
people to improve their
Health & Hygiene
By: 2013
303 Million Reached
183 Million - Lifebuoy
55 Million - Pureit
52 Million-Toothpaste Brands
13 million- Dove Self Esteem Programs
2 Improving Nutrition
By: 2020
Double the proportion of
our portfolio that meets
highest nutrition standards
By: 2013
31% of Unilever's Portfolio by volume
met highest nutrition standards
GOAL: 2
REDUCING
ENVIRONMENTAL
IMPACT
1 Green House Gases
By 2020:
Half The Green House Gas
Impact of products
By: 2010
Greenhouse Gas Footprint impact
per consumer use has increased by
5% (approx).
2 Water Use
By 2020:
Half The Water Associated with Consumer use of
products
By: 2010
Water Impact per consumer use
has increased around 15%
3 Waste and Packaging
By 2020:
Half The Waste Associated with Disposal use of
products
By: 2010
Waste Impact has reduced around 11%
4 Sustainable Sourcing
By 2020:
100% Sourcing of
Agricultural Raw
Materials Sustainably
By: 2013
48% of Agricultural Raw Materials
Were Sustainably Sourced by Unilever
GOAL 3:
ENHANCING LIVELHOODS
1 Fairness in Workplace
By: 2020
Unilever to advance
Human Rights Across
their operations & extended
supply chain
Resultant Commitment to be
given in 2015
2 Opportunities for Women
By: 2020
Unilever to empower
5 million Women
Resultant Commitment to be
given in 2015
3 Inclusive Business
By: 2020
Positive Impact on lives
of 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 Integrity
Act With Integrity & Principles within themselves
Taking Difficult Decisions
• Breakthrough Thinking
Generation of New Ideas.
Conceptual Thinking for Competitive Business Advantage.
• Organizational Awareness
Formal & Informal Structure of Organization
Leadership Competencies
• Change Catalyst
Excitement for New Opportunities.
Positive Response to Challenges.
• Objective Analytic Power
Solving Complex Situation
Skill for Problem Breakdown into Components.
• Developing Self
Self-Development Activities
Learning from Experience
Leadership Competencies
• Team Commitment
Cooperative Working Environment
• Team Leadership
Lead in Problem Solving & Clarification of Job Roles
• Business Motivation
Profit, Business Competition & Employee Satisfaction.
• Passion for Growth
Desire 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

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Creating a Corporate Responsibility Culture: Unilever's Approach

  • 1. Creating a Corporate Responsibility Culture: the Approach of Unilever UK
  • 2. 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:
  • 3. S. No. Area's of CSR Unilever Commitment Unilever Performance GOAL 1: IMPROVING HEALTH & WELL BEING 1 Health & Hygiene By: 2020 Help more than a Billion people to improve their Health & Hygiene By: 2013 303 Million Reached 183 Million - Lifebuoy 55 Million - Pureit 52 Million-Toothpaste Brands 13 million- Dove Self Esteem Programs 2 Improving Nutrition By: 2020 Double the proportion of our portfolio that meets highest nutrition standards By: 2013 31% of Unilever's Portfolio by volume met highest nutrition standards GOAL: 2 REDUCING ENVIRONMENTAL IMPACT 1 Green House Gases By 2020: Half The Green House Gas Impact of products By: 2010 Greenhouse Gas Footprint impact per consumer use has increased by 5% (approx). 2 Water Use By 2020: Half The Water Associated with Consumer use of products By: 2010 Water Impact per consumer use has increased around 15% 3 Waste and Packaging By 2020: Half The Waste Associated with Disposal use of products By: 2010 Waste Impact has reduced around 11% 4 Sustainable Sourcing By 2020: 100% Sourcing of Agricultural Raw Materials Sustainably By: 2013 48% of Agricultural Raw Materials Were Sustainably Sourced by Unilever GOAL 3: ENHANCING LIVELHOODS 1 Fairness in Workplace By: 2020 Unilever to advance Human Rights Across their operations & extended supply chain Resultant Commitment to be given in 2015 2 Opportunities for Women By: 2020 Unilever to empower 5 million Women Resultant Commitment to be given in 2015 3 Inclusive Business By: 2020 Positive Impact on lives of 5.5 Million people Resultant Commitment to be given in 2015
  • 4. 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
  • 5. 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.
  • 6. 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.
  • 7. 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.
  • 8. 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.
  • 9. Leadership Competencies • Self Confident Integrity Act With Integrity & Principles within themselves Taking Difficult Decisions • Breakthrough Thinking Generation of New Ideas. Conceptual Thinking for Competitive Business Advantage. • Organizational Awareness Formal & Informal Structure of Organization
  • 10. Leadership Competencies • Change Catalyst Excitement for New Opportunities. Positive Response to Challenges. • Objective Analytic Power Solving Complex Situation Skill for Problem Breakdown into Components. • Developing Self Self-Development Activities Learning from Experience
  • 11. Leadership Competencies • Team Commitment Cooperative Working Environment • Team Leadership Lead in Problem Solving & Clarification of Job Roles • Business Motivation Profit, Business Competition & Employee Satisfaction. • Passion for Growth Desire to go beyond Targets Ambitious
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. Code of Business Principles • Innovation - Apply scientific innovation to meet customer needs • Competition - Believes in fair competition • Business integrity - Transparency in nature of work
  • 17. 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
  • 18. 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;
  • 19. 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.
  • 20. 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.
  • 21. 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.’
  • 22. 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.
  • 23. Reinforcing The corporate Responsibility Culture
  • 24. 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.
  • 25. 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.
  • 26. 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
  • 27. 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.
  • 28. 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
  • 29. 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

Notas do Editor

  1. Health and Hygeine: Domex Toilet Academy For every Domex bottle bought, HUL contributed five per cent of revenues to sanitation programs of Unicef in India.
  2. They do their operations with h I o and respct fr human rights and interest of their employees and also respect those with they are in relationship. The employees and company follow the rules and regulation of whichever country they are operating into It believs in diversity where there is mutual trust and respect everyone feels responsible for the performance Employees recruited on sole basis of the qualifications and abilities needed for the work safe and healthy working conditions No forced working
  3. And are safe to use. They are properly and accurately labeled advertised and communicated Corporate governance broadly refers to the mechanisms, processes and relations by which corporations are controlled and directed They about the activities, financial status and performance With customers, suppliers, bp. And xpect the partners to adhere to our business principles
  4. To fulfill responsibilities to society n community they operate cooperate with governments and other organisations, both directly and through bodies such as trade associations, in the development of proposed legislation and other regulations which may affect legitimate business interests. Unilever neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests. committed to making continuous improvements in the management of our environmental impact and to the longer-term goal of developing a sustainable business.
  5. work on the basis of sound science, applying rigorous standards of product safety. supports the development of appropriate competition laws. Unilever companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations. No bribes are given or taken. undisclosed or unrecorded account, fund or asset will be established or maintained and shared among the concerned people
  6. expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. Unilever employees must not seek gain for themselves or others through misuse of their positions Compliance with these principles is an essential element in our business success. The Unilever Board is responsible for ensuring these principles are communicated to, and understood and observed by, all employees. Day-to-day responsibility is delegated to the senior management of the regions and operating companies. They are responsible for implementing these principles, if necessary through more detailed guidance tailored to local needs. Assurance of compliance is given and monitored each year. Compliance with the Code is subject to review by the Board supported by the Audit Committee of the Board and the Corporate Risk Committee. Any breaches of the Code must be reported in accordance with the procedures specified by the Joint Secretaries. The Board of Unilever will not criticise management for any loss of business resulting from adherence to these principles and other mandatory policies and instructions. The Board of Unilever expects employees to bring to their attention, or to that of senior management, any breach or suspected breach of these principles.
  7. Most CSR work is done in these sector.
  8. Strategy tough as company narrowing down.
  9. make corporate responsibility relevant in this tougher business environment. Funding was directed towards those programmes who are most likely to deliver value for the business and community patners. specialist service has led to us being involved in advising senior managers on topics as diverse as the closure of a manufacturing site, cause related marketing programmes, and new product launches.
  10. personal values in the workplace, using their own instincts to flag up potential issues and conflicts