Professional Documents
Culture Documents
depth to understand its effectiveness, their theory behind the strategy as well as
their motivations.
Unilevers CSR strategy is called the Unilever Sustainable Living Plan, and its sole
purpose is to make sustainable living commonplace(Unilever,2012). This
means to embed sustainability throughout their organisation from suppliers
through to consumers where everyone lives within the means of the planet. Their
vision and target is to double the size of the business, whilst halving our
environmental footprint and increasing our positive social impact (Unilever,
2012) all by 2020. This goal has been seen within the sector as impossible,
causing their competitor Nestle to be horrified at the declaration of their targets
where in some areas Unilever had no idea how they planned to achieve them
(Makower, 2014). A Unilever sustainability consultant John Elkington also
commented that the aspirations are insanely ambitious (Makower, 2014)
however Unilever responded by highlighting that they did not want to set lower
targets as that would not allow them to be pushed to their limits in terms of
sustainability though out the business. Being a large multinational Unilever gain
53% of their business from emerging markets such as India, where they have
large operations. Therefore heightening their social responsibilities to act in an
ethical manner. This essay will therefore analyse Unilevers work towards the UN
Global Compact and how they manage their social responsibility.
A main issue that the UN Global compact is tackling is the working conditions
that company promote, both from their own employees as well as the working
conditions from organisations that work with them through their value chain. The
example above of The Rana Plaza disaster highlights the need for the initiative,
as many corporations such as Primark were purchasing from this production
facility, however have no initiatives in place to ensure both adequate human
rights and labour conditions were up held. Following the UN Global Compact
Human Rights Principles both one and two; to support and protect internationally
proclaimed human rights, as well as to make sure that they are not involved or
advocating human right abuse.
Since joining the Global Compact Unilever has integrated Human Rights and
Labour iniatives into the business model with benchmark for suppliers being
created such as meeting the Mandatory Requirements of the Responsible
Sourcing
Policy;
and
[expecting] suppliers to achieve over a reasonable period of time in order to
reach Good Practice and ultimately to achieve Best Practice (Unilever, 2014).
Unilevers good practise in these areas has been identified by John Ruggie for his
report Guidance tools for companies for the UN framework for Business and
Human Rights with particular excellence in their Vietnam operations which is
often used as a bench mark for both labour and human rights.
As part of Unilevers target they aim to half the size of their environmental impact
even whilst their business doubles across all operations. Their approach is in line
with the UN Global Compact principles surrounding the environment where
Unilever has pioneers in Principle 9 encourage the development and diffusion
of environmentally friendly technologies. For example strategy on the
environment and CO2 levels has meant that they devised new techniques such
as their new packaging for their deodorant brands Sure, Dove, Lynx and Vaseline
where they have launched a campaign called compressed upon which they
have halved the size of their canisters meaning that they can save roughly 600
tonnes of CO2 per person across the world.
However in 2008 they came into conflict with Principle 7 Businesses should
support a precautionary approach to environmental challenges; as in 2008
Unilever had to act quickly regarding the Chinese milk powder crisis due to
traces of melamine found. This directly affected a lot of Unilevers products such
as their Lipton milk tea powder meaning they had to recall a large amount of
stock in precaution to any contamination and to create reassurance for the
consumers (Lynch, 2009). In response to this Unilever begun thorough testing of
all of their suppliers products to ensure that they are in line with UN guidelines.
This highlights how large corporations such as Unilever have a large ethical duty
beyond selling their product or service, especially for a product that is to be
consumed and without guidelines in place such as the UN Global Compact
companies can risk human life as well as human quality of life due to the power
they hold.
Before Unilever signed up to the Global Compact agreement they were exposed
in 2008 by a surrounding their palm oil usage. Unilever are the worlds biggest
consumer of palm oil where Greenpeace produced a report titled How Unilevers
suppliers are burning up Borneo (House of Commons, 2008). This triggered
Unilever to act straight away where they have since taken a bold stance against
this issue and have partnered with Greenpeace to build a sustainable coalition of
palm oil users, growers, traders and processors. As part of their 2020 sustainable
living plan Unilever has also committed to sourcing 100% of it palm oil from
sustainable sources which is a very large shift for the multinational. This has
added to their sustainability and positive impact that they have in developing
areas which is where their palm oil has been sourced.
Reacting to environmental issues further Unilever highlighted that the consumer
accounts for 68% of their total greenhouse gas footprint and has launched
campaigns across the world such as I prefer 30 (Unilever Report 2013). This
works with individuals across the world and from developing countries to
promote greater environmental responsibility. Unilever has clearly highlighted
the need to encourage others to promote environmental sustainability and have
taken the approach to use their products to reach mass markets. Unilever has
translated this campaign to all areas including underdeveloped areas to instil
environmental sustainability within growing economies. This aligns with principle
8 to undertake initiatives to promote greater environmental responsibility
Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms,
including extortion and bribery.
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