In what ways does Unilever's focus on sustainability (see Illustration Capsule 9.4), in the long-term interest of its shareholders? Does it contribute to the company's competitive advantage or profitability. Discuss.
In what ways does Unilever's focus on sustainability (see Illustration Capsule 9.4), in the long-term interest of its shareholders? Does it contribute to the company's competitive advantage or profitability. Discuss.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
In what ways does Unilever's focus on sustainability (see Illustration Capsule 9.4), in the long-term interest of its shareholders? Does it contribute to the company's competitive advantage or profitability. Discuss.
Transcribed Image Text:ILLUSTRATION
CAPSULE 9.4
Unilever's Focus on Sustainability
With over 53.7 billion euros in revenue in 2017, Unilever
is one of the world's largest companies. The global con-
sumer goods giant has products that are used by over 2
billion people on any given day. It manufactures iconic
global brands like Dove, Axe, Hellman's, Heartbrand,
Knorr
Vegetable
ST Ives
30
Quips
NOXZEMA
Vaseline
Dove
ULTIMATE CLEA
and
many
others. What it is also known for, however, is
its commitment to sustainability, leading GlobeScan's
Global Sustainability Survey for sustainable companies
with a score 2.5 times higher than its closest competitor.
Unilever implemented its sustainability plan in as
transparent and explicit way as possible, evidenced by
the Unilever Sustainable Living Plan (USLP). The USLP
was released in 2010 by CEO Paul Polman, stating that
the company's goal was to double the size of the busi-
ness while halving its environmental footprint by 2020.
Importantly, the USLP has remained a guiding force
for the company, which dedicates significant resources
and time to pursuing its sustainability goals. The plan is
updated each year with targets and goals, as well as an
annual progress report.
According to Polman, Unilever's focus on sustain-
ability isn't just charity, but is really an act of self-interest.
The
Degree
ELLMANN
Simple
COUNTRY CROCK
REAL
PONDS
Lipton
CALCRAM
Greentea
©McGraw-Hill Education/David A. Tietz, photographer
sustainability report, the company details its progress
toward its many sustainability goals. By 2018, Unilever
had helped more than 601 million people to improve
their health and hygiene habits and had enabled over
716,000 small farmers to improve their agricultural prac-
tices and/or their incomes.
Unilever has also created new business practices
to reach even more ambitious targets. Unilever set up
a central corporate team dedicated to spreading best
sustainability practices from one factory or business unit
to the rest of the company, a major change from the
siloed manner in which the company previously oper-
ated. Moreover, the company set up a "small actions, big
differences" fund to invest in innovative ideas that help
the company achieve its sustainability goal. To reduce
emissions from the overall footprint of its products and
extend its sustainability efforts to its entire supply chain,
it has worked with its suppliers to source sustainable
agricultural products, improving from 14 percent sus-
tainable in 2010 to 56 percent in 2017.
company's most recent annual report states "growth
and sustainability are not in conflict. In fact, in our expe-
rience, sustainability drives growth." Polman insists that
this is the modern-day way to maximize profits, and that
doing so is simply rational business thinking.
To help implement this plan, Unilever has instituted a
corporate accountability plan. Each year, Unilever bench-
marks its progress against three leading indices: the UN
Global Compact, the Global Reporting Initiative's Index,
and the UN Millennium Development Goals. In its annual
AXE I
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Recommended textbooks for you
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON