Contemporary Business Issues At Unilever Case Study

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Chapter 1 : Unilever’s Path to Sustainability

Sustainability plays a crucial role in modern business operations, shaping corporate responsibility and efficiency. Unilever's green initiatives demonstrate the balance between profitability and environmental impact. Need assistance with academic research on this topic? Get expert Help With Assignments to enhance your knowledge and ace your sustainability-focused projects effortlessly!

Background

Sustainability refers to adopting measures and strategies that help reduce the depletion of natural resources and protect the environment. Each company focuses on using this approach within its operation to reduce costs and enhance goodwill in the industry. Sustainable development aims at keeping the balance between fulfilling current needs with focusing on future requirements. This approach is based on three major pillars that are economic, environmental and social. Sustainability in a firm helps in reducing overall turnover and results in improving overall organization's efficiency (Streimikiene et al, 2021). Company that focuses on sustainable activities can create a healthy and positive working environment within its operations results in improving satisfaction level of employee’s leading to reduces turnover. This approach helps firm in increase in their operational efficiency as concentration has been provided on reducing wastage results in decreasing overall cost. Sustainability also helps firm to gain various benefits that has been introduces by government. As company is using green energy and various renewable material firm can gain various tax benefits that are provided by authority.

This report is based on the sustainability approach that has been used by Unilever and its impact on operation, environment and stakeholders. Unilever was established on 2 Sept 1929 as the retailer Company in UK with the merger of Dutch margarine product and soap Maker Company. It provides variety of consumer products including soap, food items, energy drinks, cleaning agents, ice-cream, bottles water, toothpaste etc. Headquarter of company lie in London and products of company are accessible in more than 190 countries. Dove, Lifebuoy, Lux, sun silk, sunlight etc are the famous brand of the company and it has become largest manufactures of soap in the world. Company was able to earn an annual turnover of 60.70 billion Euros in 2022 with 38% market share (Annual turnover of Unilever, 2023). Unilever has faced challenges due to in capabilities in managing organizational operation with the well being of society. Sustainable plan in 2010 has been introduced by company which includes various measures and strategies that company is going to implement in upcoming time. This guides manager and employees of company in determining activities that help in protecting environment and assist in effectively achieving goals and objectives.

Justification of Study:

In the current situation, concern towards protecting environment and natural resources has been increased. As the number of industry has been increased there is increases in the pollution and decreasing in the quality of resources which requires each firm to be focused towards implementing sustainable measures in their operation. As company’s profit is link with resources that has been provided by environment, suitability helps in filling social responsibility which assists in attracting large number of customer (Buallay 2019). Deforestation and reducing bio diversity has been increased in the world due to increase in profitability motive and reducing environmental and societal concern. This creates the needs of introducing sustainable measures that will focus towards developing strategies which helps in reducing negative impact on nature and balance organizational growth. Each firm focuses on reducing employees’ turnover within its organization, sustainable measures aim at forming strategies and polices that does not impact on cultural and social belief of individual resulting improving their satisfaction level. Consumer in current time is focus on products that are healthy and have positive impact on the health and overall well being. Using sustainable measures restrict firm to include in unfair practices and results in providing effective product to consumer.

Significance of study:

The study connected on sustainability will help company in determining the importance of environmental activities on the working of the organization. This will help in creating awareness regarding the impact of not including such activities in the operations of firm (Naciti 2019). Conducting study assist other firm in same industry to identified various challenges and obstacles that occur in path of implementing strategies. This will help company in formulating strategies and polices which can be effectively used to overcome all obstacles. This report will support firm in facing all uncertainty and overcoming them efficiently.

Structure

Structure of desertion will include five parts that includes introduction, Literature review, Methodology, findings and conclusion. In the introduction chapter, information has been provided regarding the aim and objective of report (Hall 2021). It will also include information related to the needs and significance of study in the current time.

Under chapter two, literature review will be provided that includes all the critical point related to the topic. This will includes both empirical and theoretical research that opposes and support the research topic.

After that various comparison and evaluations of different philosophies and research methods will be discussed in research methodology chapter. It will also provide information regarding primary and secondary research which will be conducted to collect research’s information.

In chapter 4 details will be provided regarding information that has been collected by conducting research.

Last chapter of the dissertation (conclusion) includes collective information of all the finding that has been occurred in the study. Recommendation will be provided to overcome issue of sustainability within firm.

Research aim and objective:

Aim:

The aim behind initiative current study is to ascertain the Unilever sustainability initiatives and challenges in attaining sustainability.

Objective:

• To study the concept of sustainability and its theories and models.
• To examine Unilever’s sustainability initiatives’ and its impact on stakeholders.
• To identify challenges and obstacles those are impacting sustainable objectives.
• To recommend competent strategies to Unilever for improving sustainability.

Chapter 2

This study explores Sustainable Business Practices, focusing on Unilever's sustainability initiatives, their impact on stakeholders, and challenges in implementation. Key theories like CSR, Stakeholder Theory, and Green Economics are analyzed.

Concept of sustainability and ideas, theories and models related to sustainable business practices.

According to Adloff and Neckel (2019) development should be carrying out within country after focussing on both present as well as future needs and wants of society. Suitability refers to the operating and carrying out business operation that are having less impact on the natural resources and environment. Each company must focus on sustainable approach within their operation for maintaining stability in the industry. Alsayegh Abdul Rahman and Homayoun, (2020) analyzed that government regulation, consumer and societal preferences are major factors that have generated the importance and needs of sustainability in the business practices. Success and stability of firm in the market is greatly influence by the environmental and nature protected activities that have been undertaken by the company. Chams and García-Blandón (2019) described that in current situation, sustainability helps in attracting large number of customer and assist in improving overall profitability position of the firm,. Consumers are attracted to company that are using large number of environment protecting activities as to protect environment.

Contemporary Business Issues At Unilever Case Study

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On the contrary Esty and Karpilow (2019) claimed that involving sustainable activities leads to increases in cost and expenses for the firm results in reducing overall profitability position of business entity. This is because acquiring sustainable raw material and process requires extra investment resulting in enhancing overall expenditures of company. Fernando, Popadiuk and Santos (2019) explained that there are various model, theories and concept that help film in effectively introduces and implement environmental protection activities within their firm. Corporate social responsibility is one such method by which company could focus towards implementing environmental protection strategies within its operation. CSR of firm aims at introducing measures which does not only concentrate on profits rather humans; natural and societal impact is also considered. For example: Uniliver undertake CSR strategies by promoting healthier, nutritious and hygiene products to clients.

Fransen, Schalk and Auld (2020) also identified that stakeholder theory is more beneficial in the business practices for overall development of organization. This theory is linked with determining the entire stakeholder that is interested in the working of company. Strategies should be formed that helps in fluffing needs and demand of all stakeholders leading to develop better brand reputation. This theory is more impacted then other as it focuses on covering wide areas of population results in widening satisfaction level of various individuals. Based on the view point of Furstenau et al, (2020) institutional theory is more effective for maintaining and carrying out sustainability in the operations of firm. It has been believes that following suitability in each aspect and do not focus on other will results in ineffective results. This theory pays emphasis on creating organizational structure, practices and patterns which are linking to wider cultural and social environment.

Gatto (2020) described that AMO theory that is ability, motivation and opportunities is the most effective method which aim at introducing sustainability within the supply chain. This model concentrates towards allocating activities to employees according to their capability results in reducing wastage by firm. This also includes motivating employees by providing various training and development session that helps in improving their efficiency results in reducing environment impacts. On the other hand Han (2021) explicated that introducing green economics in the operation of firm is the best method to balance profit and growth of country. This model includes investment by company in adopting such technology and developing infrastructures that helps in reducing operational cost and also assist in decreasing pollution and carbon emission. Green economy concentrates on promoting development and growth with implementing equitable and sustainable measures.

Influence of Uniliver’s sustainability initiatives on business’s operation, environments and stakeholders.

Hörisch, Schaltegger and Freeman (2020) determined that sustainability initiatives within firm helps in reducing negative impact on the overall natural resources of country. This has been achieved as company is focusing towards identifying strategies and measures that helps in protective biodiversity and environment. For example: In the sustainable plan of Unilever, company has concentrates towards using plant based substitute for various milk products and meat. This aims at reducing the loss of biodiversity by 50 % at the end of 2050. On the other hand Komatsu, Rappleye and Silova (2019) analzed that increasing use of agriculture and plant based products results in causing eutrophication in the natures. This will results in increase in phosphorus and nitrogen releases in environment results in creating negative impact on the surrounding.

Miller and Wyborn (2020) ascertained the fact that introducing and implementing sustainable activities in the operation of firm results in providing economic benefit to firm and society. Introducing sustainable technology, green economy and using renewable energy in the operation of firm help in reducing overall costing and expense of the firm. This provides opportunities to new employees that are having skills to operate various technology results in increasing overall employment. For example; It has been identified that uniliver was able to reduces its costs by 1.5 billion since 2002 after introducing sustainable initiatives (Impact of sustainability in Unilever, 2023).

On the contrary Narayanan and Das (2022) explained the profitability and financial position of firm is highly impacted by introducing such program in the operation of firm. It has been determine that acquiring new technology and renewable energy requires high investment by company leading to increasing overall costing of company Okoro and France (2019) believed that introducing sustainable activities will results in satisfying stakeholder of firm leading to improving overall position of organisation. It has been determined that consumer preferences has been changed over time and choice has been paid towards purchasing firm company that are more concentrating on adopting sustainable measures. Introducing these measures will help improving goodwill and reputation of firm leading to mainating stability within industry.

On the other hand Purvis, Mao and Robinson (2019) identified that only focusing on sustainable activities and ignoring profitability position will creates negative impact on stakeholder’s mindset and opinion. Stakeholders of company are interested in knowing the financial position that will help in improving their economic status. Incurring high amount on acquiring such sustainable product results in increasing cost of goods and services eventually impact on the purchasing power of customer. This creates dissatisfaction among stakeholder’s results in negatively impacting on overall operation and functioning of business entity. According to the Rees (2021) it has been depicted that efficiency of carrying out business operations has been enhanced by introducing sustainable activities within operations of organization. This activity helps in reducing amount of the waste in the manufacturing process and reduces overall expenses in its maintenance and working. For example: For maintaining sustainability in maintenance of firm, Uniliver has introduces OMO Eco Active which aims at cleaning manufacturing sites and offices with less energy and water.

However, Ruggerio (2021) argued that organization face difficulty in hiring and acquiring employees that can effective work with such technology. Inappropriate use of technology reduces the effeminacy and increases cost for the organization. Company needs to incur on conducting additional training and development session so that employees could become familiar with the working and operating machines. Salas?Zapata and Ortiz?Muñoz, (2019) also claimed that competitive edge and innovation can be promoted through introducing environment friendly practices within operation of firm. Organisations that can successful implementing such strategies can overcome challenges regarding competitors resulting in increasing printability and satisfying stakeholders. For example: Unilever was first retail company in UK that has introduces sustainable plan in 2010 that assist in gaining competitive advantages. Schaltegger, Hörisch and Freeman (2019) believed that introducing measures involve high amount of risk and organisations needs to face various uncertainties. Demand forecast cannot be adequately carrying out in such situations leading to increasing amount of risk and uncertainties.

Challenges and obstacles in introducing sustainable approach within firm:

According to view point of Siebrecht, (2020) it has been identified that limitation in availability of resources is major obstacle that has been restricting organisation in implementing sustainability. It has been identified that all the technology techniques has not been introduces that can easily carrying out entire operations in sustainable manners. This creates challenges for company to gathers technology and identifies measures through which environment friendly methods could be adopted. Moreover Siltaloppi and Jähi (2021) said that cost of acquiring such technology creates huge obstacles for company. Sustainable measures are adopted with the view point of reducing impact on environment with reducing overall cost. Due to its limited availability, cost of acquiring renewable energy and other method are high. This requires firm to incur huge cost results in hampering overall financial and profitability position of organisation For example: Uniliver has adopted novel method for recollect plastic actuator and reduce pollution in the environment. This technology has been acquired at huge cost resulting in impacting on overall economic position of firm.

On the contrary, Singu (2022) explained that supply chain management is the crucial factors impacting the efficiency implementation of sustainability. It has been determine that company face challenges in identifying supplier that are not involve in any type of unfair practices and focusing on providing appropriates goods. Introducing suitability in supply chain requires huge time by firm to identify supplier, marketer and manufacturer that assists in reducing operational cost and negative impact on environment. Van der Byl, Slawinski and Hahn (2020) highlighted that environmental variable creates huge challenges in introducing sustainable measures. Company need to adopt strategies that helps in effective waste management, reducing greenhouse gases and less impact on natural resources. If the firm is unable to introduce measures that can overcome all challengers then it creates barrier for firm to operate sustainably. It has been determined that excessive depended on natural resources also exploited it results in negative impact on the surrounding leading to decreasing efficacy of firm.

However Van Wynsberghe (2021) assessed that poverty, society inclusion, discrimination and inadequate governance are various factors that creates challenges for company. If the government did not provide adequate polices related to corruption then the effort of firm towards sustainability cannot provide effectual outcomes. Based on point of view of Yadav et al, (2020) it has been depict that competitor polices also creates various for business entity in introduce new and acceptable measures. Shareholders are interested to invest in company that are earning high amount of profits as to ensure their return. If less concern has been provided on profits then it will unable to attract more investor’s results in negatively impacting its financial position. Customer prefers to purchase good form company that are providing it at less cost so organisation need to focus on using environment protecting measures with maintaining appropriate competitive edge. For example: uniliver operates in Retail industry which is highly competitive market results in crates obstacle for company to introduces measures that assists in balancing profitability and sustainability together.

Mangla et al, (2022) believed that adopting environment friendly strategies in company’s operation need to be align with the needs and preference of employees. Workers generally resistance to adopt any kind of changes in operation of firm results in creating barriers. This has been occurred due to fear of losing job or lack of confidence in employees to operate new technology. For example; uniliver has introduces various technology that helps in reducing wastage results in losing job of employees. This crates fear among other employees to introduce more such measures leading to increases in resistance by workers.

Summary

By summing up it has been identified that sustainability is the crucial measures that needs to be adopted by each company for maintaining stability within firm. It has been identified that corporate social responsibility, stakeholder theory and green economic are various theories and model that have been used to effectively implementing sustainability within firm. Expenditure of the firm has been reduces as it focus towards using measures that reduces wastages leading to increasing efficiency. It has also helps in increasing satisfaction level of stakeholder by improving overall profitability of an organization. Economic, social and environmental factors are various elements that are creating challenges for firm to introduce sustainable approaches within its operation.

References

Books and Journals

• Adloff, F. and Neckel, S., 2019. Futures of sustainability as modernization, transformation, and control: a conceptual framework. Sustainability Science, 14, pp.1015-1025.
• Alsayegh, M.F., Abdul Rahman, R. and Homayoun, S., 2020. Corporate economic, environmental, and social sustainability performance transformation through ESG disclosure. Sustainability, 12(9), p.3910.
• Chams, N. and García-Blandón, J., 2019. On the importance of sustainable human resource management for the adoption of sustainable development goals. Resources, Conservation and Recycling, 141, pp.109-122.
• Esty, D.C. and Karpilow, Q., 2019. Harnessing investor interest in sustainability: The next frontier in environmental information regulation. Yale J. on Reg., 36, p.625.
• Fernando, J.T., Popadiuk, S. and Santos, N.M.B.F., 2019. Knowledge management at Unilever South America–enabling conditions and their interaction with the SECI model. Revista de Negócios, 24(2), pp.7-26.
• Fransen, L., Schalk, J. and Auld, G., 2020. Community structure and the behavior of transnational sustainability governors: Toward a multi?relational approach. Regulation & Governance, 14(1), pp.3-25.
• Furstenau, L.B., Sott, M.K., Kipper, L.M., Machado, E.L., Lopez-Robles, J.R., Dohan, M.S., Cobo, M.J., Zahid, A., Abbasi, Q.H. and Imran, M.A., 2020. Link between sustainability and industry 4.0: trends, challenges and new perspectives. Ieee Access, 8, pp.140079-140096.
• Gatto, A., 2020. A pluralistic approach to economic and business sustainability: A critical meta?synthesis of foundations, metrics, and evidence of human and local development. Corporate Social Responsibility and Environmental Management, 27(4), pp.1525-1539.
• Han, H., 2021. Consumer behavior and environmental sustainability in tourism and hospitality: A review of theories, concepts, and latest research. Journal of Sustainable Tourism, 29(7), pp.1021-1042.
• Hörisch, J., Schaltegger, S. and Freeman, R.E., 2020. Integrating stakeholder theory and sustainability accounting: A conceptual synthesis. Journal of Cleaner Production, 275, p.124097.
• Komatsu, H., Rappleye, J. and Silova, I., 2019. Culture and the Independent Self: Obstacles to environmental sustainability?. Anthropocene, 26, p.100198.
• Miller, C.A. and Wyborn, C., 2020. Co-production in global sustainability: Histories and theories. Environmental Science & Policy, 113, pp.88-95.
• Narayanan, S. and Das, J.R., 2022. Can the marketing innovation of purpose branding make brands meaningful and relevant?. International Journal of Innovation Science, 14(3/4), pp.519-536.
• Okoro, O. and France, A., 2019. Can Stakeholder Mapping and Attributes be Exploited to the Advantage of Sustainability?. OIDA International Journal of Sustainable Development, 12(10), pp.11-20.
• Purvis, B., Mao, Y. and Robinson, D., 2019. Three pillars of sustainability: in search of conceptual origins. Sustainability science, 14, pp.681-695.
• Rees, W.E., 2021. Achieving sustainability: reform or transformation?. In The Earthscan reader in sustainable cities (pp. 22-52). Routledge.
• Ruggerio, C.A., 2021. Sustainability and sustainable development: A review of principles and definitions. Science of the Total Environment, 786, p.147481.
• Salas?Zapata, W.A. and Ortiz?Muñoz, S.M., 2019. Analysis of meanings of the concept of sustainability. Sustainable Development, 27(1), pp.153-161.
• Schaltegger, S., Hörisch, J. and Freeman, R.E., 2019. Business cases for sustainability: A stakeholder theory perspective. Organization & Environment, 32(3), pp.191-212.
• Siebrecht, N., 2020. Sustainable agriculture and its implementation gap—Overcoming obstacles to implementation. Sustainability, 12(9), p.3853.
• Siltaloppi, J. and Jähi, M., 2021. Toward a sustainable plastics value chain: Core conundrums and emerging solution mechanisms for a systemic transition. Journal of Cleaner Production, 315, p.128113.
• Singu, S., 2022. Developing Leadership Skills for Sustainable Development: A Cross-Disciplinary Approach. International Journal of Sustainable Development Through AI, ML and IoT, 1(2), pp.1-11.
• Van der Byl, C., Slawinski, N. and Hahn, T., 2020. Responsible management of sustainability tensions: A paradoxical approach to grand challenges. Research handbook of responsible management, pp.438-452.
• Van Wynsberghe, A., 2021. Sustainable AI: AI for sustainability and the sustainability of AI. AI and Ethics, 1(3), pp.213-218.
• Yadav, A., Pal, N., Patra, J. and Yadav, M., 2020. Strategic planning and challenges to the deployment of renewable energy technologies in the world scenario: its impact on global sustainable development. Environment, Development and Sustainability, 22, pp.297-315.
• Streimikiene, D., Svagzdiene, B., Jasinskas, E. and Simanavicius, A., 2021. Sustainable tourism development and competitiveness: The systematic literature review. Sustainable development, 29(1), pp.259-271.
• Buallay, A., 2019. Is sustainability reporting (ESG) associated with performance? Evidence from the European banking sector. Management of Environmental Quality: An International Journal, 30(1), pp.98-115.
• Hall, C.M., 2021. Constructing sustainable tourism development: The 2030 agenda and the managerial ecology of sustainable tourism. In Activating Critical Thinking to Advance the Sustainable Development Goals in Tourism Systems (pp. 198-214). Routledge.
• Naciti, V., 2019. Corporate governance and board of directors: The effect of a board composition on firm sustainability performance. Journal of Cleaner Production, 237, p.117727.

Online

• Annual turnover of Unilever. 2023. Online Available through: < https://www.statista.com/statistics/269190/global-revenue-of-the-unilever-group-since-2007/>
• Impact of sustainability on Unilever. 2023. Online Available through: <https://iiasa.ac.at/news/sep-2023/plant-based-food-alternatives-could-support-shift-to-global-sustainability>