Introduction of Unilever Company

Corporate Social Responsibility (CSR) is known as a self-regulating business model which support a company to work on social accountability. Companies following CSR strategy pays attention to their stakeholders including management of the organization, investors, public, and customers. Unilever Company is a famous name in the consumer goods industry. Unilever offers several products such as shampoo, soaps, detergents, and body care products. Unilever managerial staff has the responsibility to develop CSR strategy and business operations related policies to execute operations in the desired manner. The prime objective of this assignment is to study a case of Unilever and its BOP plans. The present work will cover information about the product line and services portfolio of the Unilever Company. Moreover, Unilever efforts to work as a for-profit organization will be also discussed in detail. Followed by this detailed information about Unilever Commitment and its CSR strategies would be presented.      

Unilever’s Commitment of Unilever Company

The Unilever Company is highly committed to its targeted audience to cater to the best services and products for them. Unilever's commitment is to provide the same products to the poor people that they offer to the other high-income segments. This is the prime reason for Unilever's success. They have made possible for the poor and low-income groups to use the same products which are generally used by affluent. Unilever is concerned with sustainable sourcing. Company has set benchmarks in the industry for responsible sourcing to ensure sustainable business growth in the selected market. Considering the importance of sustainable growth company is building long term and strong relationship with its suppliers. In accordance with the perception of corporate management of the company, suppliers can support them in delivering highly competitive and sustainable products to the market. For supply partners standard guide and outlines are presented below:

v  Standards set for the workforce and Unilever team

v  Expectations from the partners including suppliers and retailers

v  Focusing on the achievement of sustainability goals

           In environmental footprints, a key contributing factor is the sourcing of agricultural raw materials because of our vertical integration strategy. Thus working with suppliers and other business partners has crucial importance in sustainable business growth.

            The three significant outcomes represented in the Unilever sustainable living plan are presented below (Unilever.com, 2019):

v  To ensure 100% sustainability of agricultural materials       

v  To ensure environmental footprints for the use of Unilever’s products

v  To support 1 billion people in the improvement of well-being and health.  

            According to the plan, Unilever will firstly focus on the top ten agricultural raw materials. Records present that Unilever had made efforts on this plan and they have successfully sourced 24 percentage of agricultural materials sustainability in 2011. Under the plan, Unilever will have 100% sustainable agricultural raw material by 2020. Enhancing livelihoods for millions is also a prime goal of Unilever. Under this goal, the company would try to increase the livelihood of millions of humankind (particularly proposed customers) as the company would work on growth strategy. The company would provide empowerment to 5 million women by next year (2020). The environmental impact would be reduced by controlling waste and packaging waste. Unilever has set out a goal for emissions from energy and reduction of greenhouse gas impact by 6%. Commitment statement presented by the Unilever has vital importance in the global market. Several companies are implementing this commitment statement in their organizational systems to secure a sustainable position in the local and international market. Although, companies have also identified the need for massive marketing and advertisement (Unilever.com).

The aim of Unilever is to make each dollar green by improving bottom as well as the top. Industry and market evaluation indicate that Unilever plans and strategy both are working well. The plan is basically a combination of both CSR and strategy. Serving the bottom of the pyramid (BOP) and poor people develop a positive reputation of Unilever Company in the targeted market. Thus serving BOP also work as CSR strategy. Somehow, Unilever is not only interested in server BOP and poor people as the only sole proprietor on a commitment but in fact, they are interested to team up with other corporates to work collaboratively for the betterment of our society. Moreover, emphasis on the profit generation from these action plans can influence this CSR strategy as people assume all these efforts as a strategy to earn the attention of proposed customers. CSR itself works as a marketing strategy therefore sometimes companies like Unilever just work on BOP for marketing and image building purpose (Davidson).              

Why is it or is it not acceptable for a for-profit company to profit from poverty? 

            The best way to help thousands of people for a business to help poverty and its eradication is just to follow the basic law of economics that means giving an opportunity for both sectors either poor or rich investors to earn that results in consideration of fascinating profit from their participation. It is acceptable for-profit company to profit from poverty as many companies are able to run the business with 4 billion people to who have developed the bottomed of pyramid experts. They offer products at extreme less costs thus create suitable profits by selling huge quantites including low margins, less cost and massive volume model.

 These models held sway for years on the basis of success of Uniliver  which also plays an important part in selling different products to low income consumers in many countries. Therefore, in such ways many companies have presented innovative ideas that simply offer products or services to poor that results in increments of profit. A poor person if try to borrow money at 12% to run business , he would not get loan because of zero credit history or asset and finance late will also be provided less. To resolve many issues, either Hindustan Lever with low cost products or Citibanks, US banking or Grameen banks offer much cheaper finance that make a rational choice for poor.

The poor as a market must ensure integral to a firm success so that he command senior attention of management and resource allocation in equilibrium. These steps would provide dignity and greater chance if aviabilities are allowed to open that work side by side to eradicate the poverty as well.

2-Unilever Company and its CSR strategies

Corporation of Uniliver contributes to social responsibilities that strengthen the brands of consumer great business. Main strategy of this company is to corporate citizenship and social responsibilities that prioritize the stakeholders. These steakholders particularly effect the business performance including consumers, investors and communities as well. As a whole, in the entire global consumer goods market Unilever playing its best responsibilities strategy in the form of well supported approach. It also maintains industrial level at high position and well organized business as a major firm. The products mainly requires the raw material in the form of natural oils, agricultural produce etc.

That is why it is required for the company to get the access of this resource for many years to come and that would be possible only if they care for the nature and make others also learn from it. The Unilever commitment is to provide the products to the poor that are much similar to the one they provide to the others. This is something that they are quite successful in as they have made the poor also learn how to use those products that are generally used by affluents. The implementation of Unilever gives out systematic strategy that support ideas of company citizenship as well as satisfying the expectations and interest of consumers in the form of steakholders. For example CSR ‘prioritization of Unilever has put forward the consumers at top. These strategies helps to arrange the stakeholders group in the form of Uniliver’s good business such as

1.       Consumers and Employees

2.       Investors and suppliers

3.       Communities and many others

It corporates social strategies that relates to highest priorities to consumers and focus on the product quality and price as well. Moreover, Unilever consider the employees as second priorities and organize the performance in the form of competitive compensation and appropriate career development

Conclusion of Unilever Company

The whole discussion concludes that Unilever Company is working in the consumer goods industry. Concluding discussion about BOP it can be said that Unilever is improving its business operations by developing the best suited strategies at the bottom of the pyramid. Company is serving different income segments with their widely spread product line. Unilever focus is on serving the poor people with the products and services which are offered to the people who belong to the above average income group. The Unilever has set out some plans for the sustainable growth and promotion of sustainability in the market. The prime goals regarding sustainable development can be summarized as reducing the environmental impact by 50%, improvement in the health and wellbeing of 1 billion people, and enhancing livelihoods for millions. Moreover, the company is also actively working on the promotion of sustainable agricultural raw material. 

References of Unilever Company

Davidson, Kirk. "ETHICAL CONCERNS AT THE BOTTOM OF THE PYRAMID: WHERE CSR MEETS BOP." Journal of International Business Ethics 2.1 (2009): 1-11.

Unilever.com. Together we can change the way the world does business. 2019. <https://www.unilever.com/sustainable-living/>.