Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Parañaque City Campus
Col. E. De Leon St., Wawa Brgy. Sto. Niño, Parañaque City

Unilever’s Corporate Social Responsibility

Unilever’s corporate social responsibility (CSR) contributes to the
strength of the brands of the consumer goods business. According to
Archie Carroll’s theory, companies have social responsibilities to
stakeholders. At the same time, stakeholders significantly affect
business performance. In the case of Unilever, these stakeholders
include consumers, employees, investors, suppliers, and communities.
The company’s corporate citizenship and social responsibility strategy
prioritizes these stakeholders according to their importance to the
business. As a major firm in the global consumer goods market,
Unilever utilizes its corporate responsibility strategy as a supporting
approach to maintaining industry position and business sustainability.

An effective corporate social responsibility (CSR) strategy adds to

Unilever’s efforts for a sustainable business in the consumer goods
industry. Stakeholders’ interests are satisfied through appropriate
approaches that ensure holistic corporate citizenship and
responsibility fulfilment

Unilever’s Stakeholder Groups & CSR Initiatives

Unilever implements a systematic strategy to fulfill its corporate
social responsibilities. This strategy supports the company’s corporate
citizenship ideals, especially with regard to satisfying the expectations
and interests of consumers as stakeholders. For example, Unilever’s
CSR prioritization puts consumers at the top. Business sustainability is
also maintained through the strategy. Such corporate responsibility
strategy addresses the interests of the following stakeholder groups,
arranged according to their significance in Unilever’s consumer goods
business:

1. Consumers (Highest Priority)

2. Employees

3. Investors

4. Suppliers
 Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Parañaque City Campus
Col. E. De Leon St., Wawa Brgy. Sto. Niño, Parañaque City

5. Communities

6.

Consumers (Highest Priority). Unilever’s corporate social responsibility

strategy assigns the highest priority to consumers. These
stakeholders’ interests are focused on product quality and price, as
well as the environmental impact of the consumer goods business.
Consumers are significant because they directly determine Unilever’s
profits. For example, satisfied consumers increase the company’s
revenues from repeat sales. Unilever’s corporate responsibility
strategy satisfies these interests through extensive innovation
processes and quality assurance policies for a diverse product mix
(Read: Unilever’s Marketing Mix or 4Ps). The company’s CSR strategy
also extends to address the demands of this stakeholder group for
business sustainability. For instance, Unilever continues to enhance its
production processes’ environmental footprint. As a result, an effective
image of corporate citizenship is created to influence consumer
perception. These corporate social responsibility efforts suggest that
Unilever maintains its position in the consumer goods market partly by
satisfying consumers’ various expectations.

Employees. Unilever considers employees as the second priority in its

corporate social responsibility strategy. The importance of these
stakeholders is in their direct influence on organizational performance
in the consumer goods industry. Employees are interested in
competitive compensation and holistic career development. For
example, suitable HR policies for work-life balance help satisfy
workers’ needs. Unilever’s corporate responsibility strategy addresses
these interests through high compensation that effectively competes
against other employers in the labor market. In addition, the Agile
Working program addresses these stakeholders’ interest in holistic
career development. In this program, Unilever’s CSR approach includes
flexibility for employees to work anywhere and anytime, as long as
they satisfy their job roles and responsibilities. This program also
contributes to the company’s sustainability efforts by reducing
employees’ travel, thereby ensuring corporate citizenship fulfillment.
Moreover, basic concerns such as workplace safety and healthful work
practices are considered. Thus, Unilever satisfies this stakeholder
 Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Parañaque City Campus
Col. E. De Leon St., Wawa Brgy. Sto. Niño, Parañaque City

group’s interests through a multi-pronged approach to corporate social

responsibility.

Investors. Investors are given the third priority in Unilever’s corporate

social responsibility strategy. This stakeholder group is interested in
the performance of the consumer goods business. For example, higher
revenues and profitability increase investors’ satisfaction and
confidence in the company. Investors are significant in influencing the
capital available to fund Unilever’s business. The company addresses
these stakeholders’ interests and the corresponding corporate
responsibility through continuing business expansion. For instance, a
history of acquisitions to ensure dominance in the consumer goods
market characterizes Unilever’s intensive growth strategies. Such CSR
strategy also includes the company’s efforts in product innovation for
higher quality, and process innovation for better efficiency,
productivity and sustainability. The satisfaction of this stakeholder
group increases Unilever’s success in addressing its corporate
citizenship.

Suppliers. Unilever includes suppliers in its corporate responsibility

strategy. As stakeholders, suppliers have interests in profitable
business with the company. This stakeholder group is significant in
affecting Unilever’s business capacity, based on the availability of
materials for producing consumer goods. As part of its CSR efforts, the
company maintains the Partner to Win strategic program to ensure
mutual benefit between the business and this stakeholder group. The
program satisfies suppliers’ interests through extensive collaboration
that supports Unilever’s and suppliers’ growth. For example, the
program provides strategic plans to guide suppliers in growing
together with the company. In this way, Unilever’s corporate social
responsibility policies on sustainability also influence suppliers’
business activities, thereby maximizing the benefits of corporate
citizenship.

Communities. As stakeholders, communities are included in Unilever’s

CSR strategy. Communities’ interests include environmental protection
and community development. This stakeholder group significantly
influences how consumers perceive Unilever. For example, the
 Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Parañaque City Campus
Col. E. De Leon St., Wawa Brgy. Sto. Niño, Parañaque City

company is more likely to gain positive consumer confidence through

community involvement. The Unilever Foundation is the company’s
main corporate citizenship body that satisfies these interests. The
Foundation funds community programs for sanitation, nutrition, and
personal development. These corporate responsibility initiatives
enable Unilever to contribute to community development and business
sustainability. The stakeholder group provides positive feedback that
boosts corporate and brand image, which is one of the firm’s strengths
(Read: Unilever’s SWOT Analysis: Strengths, Weaknesses,
Opportunities, Threats). The resulting impact of such corporate social
responsibility efforts on brand image translates to sales and
attractiveness of consumer goods from the company.

Unilever’s CSR Performance in Addressing Stakeholders’ Interests

Unilever has high performance in fulfilling its corporate social
responsibilities. This performance is notable even though the Unilever
Foundation was globally launched only in 2012. The global reach of the
company’s business partners, supply chain and distribution networks
facilitates the large-scale positive impact of its CSR strategy. In
addition, increased market presence can enhance such performance.
For example, Unilever can use its strong brand image to raise
consumer awareness about community needs. This recommendation
emphasizes the need for public awareness to support the corporate
citizenship activities of the company and related organizations.
 Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Parañaque City Campus
Col. E. De Leon St., Wawa Brgy. Sto. Niño, Parañaque City

References:
 Ditlev-Simonsen, C. D., & Wenstop, F. (2013). How stakeholders
view stakeholders as CSR motivators. Social Responsibility
Journal, 9(1), 137-147.
 Miles, M. P., Munilla, L. S., & Darroch, J. (2006). The role of
strategic conversations with stakeholders in the formation of
corporate social responsibility strategy. Journal of Business
Ethics, 69(2), 195-205.

 Peloza, J., & Shang, J. (2011). How can corporate social

responsibility activities create value for stakeholders? A systematic
review. Journal of the academy of Marketing Science, 39(1), 117-135.

 Unilever – Investor Relations – Annual Reports and Accounts

Overview.

 Unilever Launches Global Foundation.

 Werther Jr., W. B., & Chandler, D. (2010). Strategic corporate

social responsibility: Stakeholders in a global environment. Sage
Publications.

 Working at Unilever – Careers.

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 Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Parañaque City Campus
Col. E. De Leon St., Wawa Brgy. Sto. Niño, Parañaque City

Corporate Social Responsibility and

Good Governance
MANA 2023
Unilever (Company)

Submitted by:
Almonte, Chrristian Jay A.
Llamido, Ruth
Leguin, Irene

Course/Year/Section:
BSHM 2-1

Submitted to:
Prof. Caple Lipa
 Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Parañaque City Campus
Col. E. De Leon St., Wawa Brgy. Sto. Niño, Parañaque City

Date:
Deember 4, 2018