SDG Goal 12 UNILEVER

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[Module code] SDG Goal 12: Ensure Sustainable Consumption And Production Patterns Case Study: Unilever [Assignment type] [Student ID:] [Student name] [Date]

SDG Goal 12: Ensure Sustainable Consumption and Production Patterns Case Study: Unilever Introduction This report examines global corporate organizations' complex ethical issues and possibilities, focusing on international management, governance, and sustainability through the perspective of SDG 12: "Ensure Sustainable Consumption and Production Patterns." The changing world of multinational business makes SDG integration essential for ethical operations. SDGs recognize companies' interwoven involvement in global issues and provide a universal framework for ethical decision-making (Baragiola and Mauri, 2022). SDG Goal 12 was chosen because it reduces environmental consequences and promotes sustainable consumption and production, balancing economic growth and ecological preservation. This paper critically analyzes Unilever's five-year performance, a global consumer products firm devoted to sustainability. Unilever's corporate governance is examined for compliance with international and ethical standards. The report also analyzes Unilever's SDG Goal 12 efforts using reports, UN Global Compact guidelines, and academic literature. Besides explaining Unilever's path, the paper offers concrete solutions to advance international management, governance, and sustainability (Bocken, 2017). Sustainable Development Goal (SDG) Justification SDG Goal 12, "Ensure Sustainable Consumption and Production Patterns," was chosen to address the growing environmental issues of contemporary consumption and production. Global sustainability is threatened by the linear framework of production and consumption, which depletes resources, generates waste, and degrades the environment. Goal 12 of the 2030 Agenda for Sustainable Development aims to change these tendencies to be more responsible, efficient, and sustainable ( Leleux et al., 2019) . The rising worldwide demand for products and services emphasizes the need for sustainable consumption and production. As the world's population and economy develop, economic growth must be separated from environmental effect. Unilever, a consumer goods industry is closely related to consumption and manufacturing. Its various food, beverage, cleaning, and personal care products put it at the forefront of environmentally affected sectors. SDG Goal 12 fits Unilever's position of creating and distributing goods worldwide. Complex supply networks and production processes underpin Unilever's global operations. The company's dedication to sustainable sourcing, eco-friendly packaging, and environmental

responsibility aligns with Goal 12. Explore Unilever's efforts to tackle unsustainable production and consumption while also making a positive impact on the SDGs via an analysis of its operations ( Kostiuchenko and Zakorko, 2019) . Unilever affects customer behavior and industry standards outside its company. Unilever's capacity to improve consumer behaviors, supplier practices, and industry standards is examined in relation to SDG Goal 12. Critical Analysis of the International Management Environment Currency changes, trade policies, and economic growth rates affect Unilever's worldwide business the environment. Diverse product range and worldwide presence subject Unilever to changing economic circumstances, affecting customer spending power and product demand. Unilever works in several countries with different governments. Political stability, trade agreements, and regulations greatly impact the firm. Trade policy changes and geopolitical conflicts might affect Unilever's supply networks and market access. Cultural variations, consumer behaviour, and social expectations comprise the social component (Chang et al., 2019). As a consumer products company, Unilever must handle cultural differences, evolving customer tastes, and societal demands for sustainability and ethical sourcing. In the fast-paced consumer products market, technology is crucial. Manufacturing, supply chain, and digital marketing innovations affect Unilever's competitiveness. Efficiency and industry developments need adopting new technology. Given Unilever's sustainability focus, environmental concerns are crucial. Unilever's tactics are driven by regulations, customer demand for eco-friendly goods, and environmental responsibility. A strong company image requires adaptability to changing environmental requirements. The importance of external variables' unpredictability in the international business environment is highlighted by Lawrence and Lorsch's piece on the topic (Geier and Hasan, 2021). Unilever has to be adaptable in order to deal with the unknowns caused by political instability, shifting customer tastes, and global economic upheaval. Managing assets (ownership), selecting optimal worldwide locations, and internalizing activities are all highlighted as issues in Dunning's OLI framework (Kuzey et al., 2021). The worldwide success of Unilever relies on its capacity to integrate critical processes, choose advantageous locations, and balance ownership . Over the last five years, Unilever has shown remarkable strategic agility by adjusting to the ever-changing global business landscape. Notable changes include: i. Sustainable Sourcing Initiatives:

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Sustainable sourcing strategies have been adopted by Unilever in response to the growing demand for ethically made items among consumers. A dedication to social and environmental responsibility is on display via initiatives such as the Sustainable Agriculture Code and the ethical procurement of raw materials (da Silva Lopes, 2022). ii. Digital Transformation Unilever has put money into digital transformation because they know technology affects customer behavior. In response to technological changes in the business environment, the firm has implemented e-commerce activities, data analytics to get customer insights, and digital marketing methods. iii. Climate Action Commitments Mindful about its impact on the environment, Unilever has pledged to cut down significantly. Proactively adapting to global environmental imperatives as seen by Unilever's Sustainable Living Plan and its latest commitment to achieve net-zero emissions throughout its supply chain by 2039. iv. Agile Supply Chain Management After surviving the COVID-19 epidemic and other disturbances, Unilever's supply network proved to be resilient. As an example of good global management, consider the company's supply chain flexibility in responding to fluctuating customer demand and product availability (Malik, 2023). Corporate Governance Analysis As an international conglomerate, Unilever follows strict guidelines for corporate governance (Zou, 2021). Committees devoted to certain domains, such audit, compensation, and sustainability, work under the general supervision of a Board of Directors, which normally makes important decisions. A dedication to effective decision-making, performance, and stakeholder involvement is shown by Unilever's corporate governance, which is illustrated by its board makeup. Following best practices, the board's balanced membership of 10 directors, 3 executives and 7 non- executives ensures that there is a majority of independent non-executive directors. Board members' varied backgrounds in areas such as sustainability, marketing, technology, and finance allow for better, more well-rounded decisions (Widiatami et al., 2023). With four women and six men representing different nations. However, individuals still have room to grow, especially when it comes to improving gender balance. The independence of a non-executive director is maintained by regular

reviews that demonstrate there are no major linkages or conflicts of interest. Measures to hold management accountable, initiatives to involve stakeholders, and comprehensive financial disclosures are all examples of Unilever's commitment to transparency and accountability. Advancing orientation correspondence, laying out more clear guidelines for chief freedom, and expanding partner inclusion with nearby networks and ecological associations are regions that could have serious room for improvement. The UK Corporate Administration Code is frequently referred to by Unilever because of its double recorded structure, despite the fact that the organization isn't primarily situated in the UK. This code puts an accentuation on standards including viable board initiative, effectiveness, and obligation. A sign of Unilever's devotion to worldwide accepted procedures is how much the enterprise adheres to this rule. Global guidelines like the G20/OECD Standards of Corporate Administration need intensive assessment for an organization with Unilever's overall impact. A more complex picture of Unilever's moral position emerges when we examine the company's governance actions through the lens of other ethical frameworks. According to absolutism, which seeks to establish a single standard by which all moral decisions should be evaluated, Unilever would be doing the right thing if it always put the interests of its stakeholders and the environment first. To the contrary, relativists recognize the situational relevance of moral principles and hold that ethical standards are inherently subjective. Relativism takes into account the cultural and organizational setting while analyzing Unilever's activities; it looks at the company's dedication to sustainability and stakeholder satisfaction within culturally unique traditions (Windsor, 2022). This report reveals Unilever's philosophical stance on the universality of ethical values via the conflict between absolutism and relativism. This moral analysis sheds light on how Unilever deals with the moral dilemmas that arise from its governance structure by highlighting the complicated relationship between the company's activities, its organizational values, and the larger cultural environment. Business's Approach to the Chosen SDG Unilever's Sustainable Living Plan in yearly reports shows considerable progress toward SDG Goal 12. Since 2008, the company's innovative techniques have reduced its goods' environmental effect per user usage by 50% (Bista, S., 2019). This achievement is due to pioneering efforts like concentrated laundry detergents and

renewable energy in industrial plants. Unilever has committed to net-zero carbon emissions from its goods by 2039 as a UN Global Compact partner. This commitment supports the Compact's principles and shows Unilever's commitment to sustainability in its business initiatives. The "Triple Bottom Line" approach to economic, social, and environmental implications has made Unilever a sustainable corporate leader, according to academic assessments (Big, 2020). Unilever's business strategy embodies this holistic approach to SDG Goal 12. Additionally, Unilever's "Love Beauty and Planet" brand promotes sustainable consumption and production. This brand represents Unilever's commitment to sustainable beauty products with ethically sourced ingredients, recyclable packaging, and carbon footprint reduction. Unilever works directly with farmers to promote sustainable agriculture under the Sustainable Agriculture Code. The company's objective of procuring 100% sustainable palm oil shows its commitment to ethical production across the supply chain (Purohit, 2020). Unilever's "Dove Real Beauty" campaign challenges beauty ideals and educates customers on the benefits of varied and sustainable beauty practices. This supports Unilever's objective of favorably influencing customer behaviour, contributing to SDG objective 12. Real-World Examples and Case Studies An example of Unilever's dedication to sustainable branding is the Ben & Jerry's brand, which has been successful thanks to its reputation as an ethical and ecologically conscious ice cream maker. Fair trade, ethical sourcing, and environmental sustainability have long been causes close to Ben & Jerry's heart. According to the Lifebuoy soap's life cycle evaluation, the product has successfully reduced its carbon impact by 36% (van Wassenaer, 2023). Such evaluations demonstrate Unilever's dedication to learning about and reducing the environmental effect of its goods. Addressing Challenges and Limitations It is difficult to apply sustainability consistently throughout Unilever's enormous activities, and the company is aware of this. To tackle intricacies and guarantee consistent sustainable standards, the corporation is investing in technologies like artificial intelligence in supply chain management. Adapting to shifting customer preferences is a constant problem, as Unilever is well aware. On the other hand, the business uses product labeling and social media marketing to communicate with customers in an effort to promote sustainable choices and increase awareness (Dam,

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2023). When dealing with cultural and regulatory variations, Unilever takes a contextual approach. For example, in order to honor cultural subtleties, the corporation adjusts its sustainable sourcing programs to coincide with regional farming methods. Sustainability is deeply rooted in Unilever's decision-making process attributable to its dedicated Sustainable Development Committee and other governance mechanisms. Establishing the company's dedication to SDG Goal 12 is greatly influenced by the level of board monitoring. There are sustainability hazards that Unilever's risk management team is aware of. A good example is the company's proactive investment in climate resilience efforts in response to the dangers that climate change presents to its supply chain. With initiatives such as the "USLP Ambition," Unilever encourages staff to take an active role in achieving sustainability targets. Sustainability is not only an administrative mandate, but rather an organization-wide obligation, thanks to the firm's dedication to employee involvement (Last, 2021). Recommendations The accomplish analysis of Unilever's approach to SDG Goal 12, "Ensure Sustainable Consumption and Production Patterns," yields various concrete suggestions to improve the company's sustainability efforts. First, Unilever may interact more with local communities to ensure that sustainable sourcing projects meet global standards and encourage local economic and social development. Sustainable agriculture and responsible production may be promoted by working with local farmers and suppliers. Unilever might use its large customer base to promote sustainable consumption. Targeted marketing strategies across demographics may impact customer behaviour and position Unilever as an eco-friendly product leader. The enterprise could likewise put resources into recyclable and biodegradable bundling examination to diminish its ecological effect. Unilever is considering forming a Supportability supervision Council at the board level to enhance supervision and administration. This committee would oversee planning, check that sustainability targets are met, and make sure everything is in line with ever-changing global rules and laws. Conclusion The sustainable initiatives, corporate responsibility, and worldwide influence of Unilever demonstrate the company's dedication to SDG Goal 12. The Sustainable Living Plan and the new product lines show the company's dedication to ecologically responsible manufacturing and consumption, which is part of their entire approach.

Gender equity and stakeholder engagement are two areas where Unilever's governance rules may use improvement, notwithstanding their conformity to global norms. Sustainability, global management, and excellent governance are all interdependent parts of Unilever's business strategy. Unilever has the potential to have a bigger impact on sustainable development in the future via targeted community involvement, better consumer education, and continuous innovation.

References Baragiola, G. and Mauri, M., 2022. SDGs and the private sector: Unilever and P&G case studies. Big, S. (2020). Unilever Sustainable Living Plan Bista, S., 2019. Sustainability in Business (A critique of environmental sustainability practices in Coca-Cola and Unilever). Bocken, N., 2017. Business-led sustainable consumption initiatives: Impacts and lessons learned. Journal of Management Development, 36(1), pp.81-96. Chang, Y., Iakovou, E. and Shi, W., 2020. Blockchain in global supply chains and cross border trade: a critical synthesis of the state-of-the-art, challenges and opportunities. International Journal of Production Research, 58(7), pp.2082- 2099. da Silva Lopes, T., 2022. Extraordinary Risk Management in International Business Strategy. In International Business in Times of Crisis: Tribute Volume to Geoffrey Jones (pp. 97-110). Emerald Publishing Limited. Dam, W.L.M., 2023. Driving sustainability in packaging design: The development of a framework to guide the transition towards a sustainable future (Master's thesis, University of Twente). Geier, B.A. and Hasan, A., 2021. Lorsch, Jay W.: The Academic Who Changed the Corporate Board Room. In The Palgrave Handbook of Organizational Change Thinkers (pp. 987-997). Cham: Springer International Publishing. https://www.unilever.com/ Kostiuchenko, N.M. and Zakorko, A.A., 2019. Transnational companies' strategic planning in the context of the Global Sustainable Development Goals. Kuzey, C., Dinc, M.S., Khan, F.U. and Raj, V., 2021. Foreign Direct Investment Decision-Making Motives for Multinational Enterprises: A Study of Eight Firms in an Emerging Economy. Journal of Management, Economics, and Industrial Organization, 5(1), pp.39-64. Last, A., 2021. Business on a Mission: How to Build a Sustainable Brand. Routledge. Leleux, B., van der Kaaij, J., Leleux, B. and van der Kaaij, J., 2019. Sustainable development goals. Winning Sustainability Strategies: Finding Purpose, Driving Innovation and Executing Change, pp.81-102. Malik, H.Z., 2023. Post-Covid improvisation in supply chain management process.

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Mariano, S.S.G., Izadi, J. and Pratt, M., 2021. Can we predict the likelihood of financial distress in companies from their corporate governance and borrowing?. International Journal of Accounting & Information Management, 29(2), pp.305- 323. Purohit, S.R., 2020. Corporate Social Responsibility And Ethical Practices In The Supply Chain. PARIDNYA-The MIBM Research Journal, 7(1), pp.86-98. van Wassenaer, A., 2023. Another look at achieving the United Nations Sustainable Development Goals: using extraction projects as a source for financing impact projects?. Journal of Energy & Natural Resources Law, 41(1), pp.93-103. Widiatami, A.K., Nurkhin, A. and Fachrurozie, F., 2023, October. Good corporate governance mechanism and sustainability report quality: A panel data analysis. In AIP Conference Proceedings (Vol. 2765, No. 1). AIP Publishing. Windsor, D., 2022. The ethical dimension of impact-oriented corporate social responsibility (CSR). In The Impact of Corporate Social Responsibility (pp. 179- 201). Routledge. Zou, S., 2021, August. Analysis on the Recovery of MNEs from the Financial Crisis: A Case Study of Unilever. In 1st International Symposium on Innovative Management and Economics (ISIME 2021) (pp. 121-128). Atlantis Press.

SDG Goal 12 UNILEVER

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