-
Essay / Critical assessment of Unilever through value creation and sustainability integration
Table of contentsUse the sustainable value model and levels of value creation to evaluate UnileverAnalyze the case of Unilever through the sustainability model sustainable valueDiscuss the environmental and social value of Unilever by applying the 1+7 value modelThe idea of sustainability integrationUnilever faces challenges and exists a problemThis essay will analyze a specific case - Unilever based on the theory of sustainability. Furthermore, this section also uses the value creation levels to evaluate the consumer goods producer of Unilever. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get an original essayUse the Sustainable Value Model and Levels of Value Creation to Evaluate Unilever Analyze the Case of Unilever by Sustainable Value Model According Unilever's Sustainable Living Plan (2015), Unilever has played a significant role in the United Nations Sustainable Development Goals (SDGs) and COP21. Because it was the first company to create a standalone human rights report using the UN Guiding Principles reporting framework, it announced its new goal of becoming "carbon positive" in its process production by 2030. Unilever as a classic example of a consumer durable producer that creates value for both stakeholders and shareholders. There is a five-year partnership with the International Fund for Agricultural Development (IFAD) which will use their specialist knowledge of sustainable agriculture to guide small farmers and rural businesses to markets and train them in best sustainable farming practices . Rural populations can get a good job, but above all, they get out of poverty, while producers can reduce their costs, because 60% of agricultural raw materials are renewable, and environmental stakeholders applaud the eradication of hunger, food security and improved nutrition. Unilever has reduced the plastic used for its bottles by up to 15%, like its Sustainable Living-Domestos brand, customers prefer them because they are lighter to carry and retain their strength, while retailers like them because they save approximately 1,000 tonnes. of plastic per year, and environmental stakeholders applaud the reduction of plastic resin. Discuss Unilever's environmental and social value by applying the 1+7 value model Unilever creates sustainability and social value at the same time as it builds its brands and businesses. It will be discussed according to the 1+7 value model. Level 1: There are three areas where environmental risk mitigation can create significant value for both shareholders and stakeholders. First, prepare proactively for catastrophic events to reduce the likelihood of a disaster. Second, reduce rehabilitation costs by managing rehabilitation projects ahead of schedule. Third, seek lower product liability insurance by limiting environmental risk exposures for employees, contractors and customers. sustainable methods have positive business consequences, for example, in 2015 Unilever had 60% of agricultural raw materials from sustainable sources, which helped mitigate future supply chain risks associated with climate change and long-term supply of raw materials. Process cost reduction (level 2) mainly donereferring to the use of fewer materials and energy per unit of production and a reduction in the amount of waste. The cost of sanitation is higher than that of pollution prevention. Unilever has delivered more than €600 million in water, waste and energy efficiency savings across its global network of factories since 2008. Unilever has also contributed to the reduction of CO2 emissions from energy during the manufacturing process since 2008, achieving a reduction of 39% per tonne. production by 2015. In Level 3 product differentiation, the company provides environmentally preferable products while consumers prefer green products and services. Eco-friendly product and brand differentiation exists at Unilever, according to an interview with Lesley Thorne, Global Head of Sustainability, who talks about sustainability at Unilever, a Sustainable Living brand, has both a clear purpose that contributes to a social concern or environmental and the product itself must also achieve one or more of the objectives. For example, Dove aims for consumers to reach more than 15 million, while its new compressed aerosol deodorants have the same function, but they have become half the size of before. This innovation reduces the carbon footprint per can by approximately 25%. At level 4, invoking technology creates a new market and develops new activities based on sustainability. Winning with Unilever's brand and innovation through the development and research of new products, such as home and personal products, as well as food and beverages. Additionally, Unilever Indonesia promotes its products through direct marketing to the public and guarantees the quality in real condition. Additionally, Unilever Indonesia is also driving volume growth on the island outside of Java. At level 5, companies can protect and improve the brand based on environmental and social strategies, because the brand has loyal customers, choice of suppliers and attracts investors. Paul Polman, CEO of Unilever, believes the company should have more responsibility for business operations to create a virtuous cycle that ultimately benefits the consumer, rather than allowing them to bear the cost alone. For example, Unilever is focusing more on introducing detergents, its products are washed at lower temperatures, so that they not only comply with the low carbon lifespan and also meet the aspiration of the Unilever's sustainable living plan, customers benefit from lower transportation costs and reduced packaging. costs and the entire value chain benefits. At level 6, companies attempt to influence industry standards by favoring regulation over their competitors. Unilever Sustainable Living brands and the transformational change program are ways in which they integrate their commitment to respecting human rights in the operating process as well as with suppliers and other business partners. In 2015, they published the first human rights report using the UN Guiding Principles reporting framework. Thus, they trained 860 employees as human rights ambassadors and 19,000 people on ending sexual harassment and related topics. They built the Rin Career Academy to help women gain educational opportunities to improve their spoken English and personal skills, while in Brazil, women improve skills.