Analyzing Unilever’s CSR Initiatives In India And Bangladesh

Selected Business and Countries

CSR activities facilitate companies in maximizing its wealth(Alvarado-Herrera et al. 2017). The objective of this paper is to analyse the CSR (Corporate Social Responsibility) initiatives of Unilever Company in its sustainable social development. Moreover, stakeholder diagram, campaign structure, barriers evaluation and implementation of a new CSR plan will be explained in this paper through use of suitable theories.

In analysing the effectiveness of CSR initiatives FMCG industry is selected as a business industry in this paper for the reason that there are multiple FMCG organizations operating internationally (Chae and Park 2018). In addition, the selected countries for analysing Unilever’s philanthropic and ethical CSR initiativesin dealing with related concerns are Indiaand Bangladesh. Unilever Company is positioned among the renowned and successful organizations withinthe global FMCG industry. The company initiated its business operation in Britain in the year 1929 and currently is operating in more than 190 brands with its 400 established brands (Unilever 2018).

CSR or Corporate Social Responsibility is referred to a business initiative that is employed by most companies in attaining sustainable development of the nation, community and environment within which the business operates. Such activities of the company facilitate companies in increasing their profitability and wealth. Research conducted by Kim et al. (2017) evidenced that consumer satisfaction and employee engagement is maintained effectively withincompanies following CSR strategies than other companies. CSR strategies implemented by organizations increase organizational value through positively impacting community and its people in developing positive perception towards the companies. This can further increase competitive advantages and brand popularity in comparison to its business rivals. Xiao, Yoonjoung Heo and Lee (2017) revealed that “International Institute for Sustainable Development (IISD)” has implemented the CSR guide that facilitates the business organizations in implementing new and dynamic CSR functions. Based on such illustration, it can be stated that CSR activities has a vital function in the recent competitive environment. Through integrating CSR into business processes, companies can attain opportunities of generating effective corporate and social value.

Visser (2016) stated that Carroll’s CSR pyramid can easily depict such responsibilities and two among such important responsibilities are legal and economic responsibilities. The companies must operate its business in a way that it might attain enough profit. In consideration to this CSR activities theory, most of the FMCG companies like Unilever abides by the law of the nation in which it has its business operation. This is for the reason that each nation has certain important rules and regulations that indicates codified ethics of the society. Carroll’s four-part CSR definition states that such strategies include economic, legal, ethical along with philanthropic expectations that society has on companies for holding a positive perception toward the business.

CSR and Corporate strategy

Figure 1: Carroll’s CSR Activities Theory

(Source: von Schnurbein, Seele and Lock 2016)

From analysing the pyramid in the figure above explained that the society attains a perception that a company must conduct its business in an ethical manner. It is also perceived that the business must conduct its operations in an ethical manner. The theory also necessitates that the norms, beliefs and culture existing within the society develops an ethical framework that must be attained by Unilever (Wang and Berens 2015). Developing an accurate along with quality services and products, equal treatment to employees, environment-friendly manufacturing and selling strategies can serve as effective ethical responsibilities of anorganization.

CSR conducts of Unilever must recognize all its ethical and philanthropic concerns that can serve as CSR initiatives of the company. In case of Unilever business operation in Indiaand Bangladesh it has been observed that there are several issues that can be deemed as corporate social responsibilities of the FMCG company (Thomassen et al. 2018). For instance, India and Bangladesh is positioned as developing nations with a huge population. In these nations, it is observed that a considerable fraction of people is underdeveloped and live below poverty line. Due to the such situation in these two nations, they are not able to address their basic needs, it is evidenced that more than 24% in India are deprived of necessary and suitable medical treatment and in some states of Bangladesh the situation is worst (Xiao, Yoonjoung Heo and Lee 2017).

Figure 2: Increasing Trend of CSR Expenditure in India

(Source: Xiao, Yoonjoung Heo and Lee 2017)

To deal with such concerns and in order to maintain effective CSR image within the society, Unilever has considered selling almost all varieties of healthcare and consumer goods in both the nations, specially India. In consideration to philanthropic and ethical perspective, the company must consider such concern and focuses on reducingsuchsocial cause. Moreover, to decrease the philanthropic concern, Unilever focused its CSR voluntary activities on supporting “’Health-nutrition-hygiene’, ‘Education’ and ‘Women Empowerment’ (Visser 2016).

Figure 3: Trend of CSR Expenditure in Bangladesh

(Source: Visser 2016)

To address the identified ethical/ philanthropic issue observed in India and Bangladesh, Unilever can consider introducing medical van hospital in India that will travel to remote regions in these two nations and offer necessary treatment facilities to deprived people residing in the areas.

It is observed that most regions in Bangladesh is filed by river bodies where boat is the only medium of transportation. In such scenario, Unilever can also consider developing a floating hospital in boats (Visser 2016). In such CSR imitative of the company, personnel and services involved will be two hospital boats, doctors, nurses, medical equipment and emergency medicines. This initiative by Unilever can provide basic treatment to patients through offering affordable medicines and free health consultancy.

Carroll’s CSR activities theory

It is observed in India and Bangladesh that competitors of Unilever such as other multinational healthcare and consumer organizations has developed numerous CSR strategies. For instance, in India Godrej implemented “Pirojshah Godrej Foundation” CSR campaign that supports development of small entrepreneurs(Unilever 2018). In Bangladesh, Lafarge Cement has implemented CSR initiative of empowering women employees through training to develop community and to develop SME’s in the nation. However, Unilever can attain competitive advantage through such CSR initiative implementation as such medicalcampaigns not yet launched by any of its competitors in India and Bangladesh.

In implementing the decided CSR approach of “changing minds and hearts” campaign suitable management structure is developed for Unilever company that will support suitable implementation of this initiative.

Figure 4: Company Structure for New CSR Campaign

(Source: Authors Creation)

• In Unilever, the country directors appointed for both the nations, India and Bangladesh will be the director of this CSR campaign of launching a “Mobile hospital”. The director’s function will be to act as a chief coordinator in managing all task and services of the campaign(Xiao, Yoonjoung Heo and Lee 2017).
• The chief coordinator will be responsible for analysing all the potentials and drawbacks within this CSR campaign along with employing suitable techniques through which he will manage other departments including operations head, finance head, manager and field workers.
• The manager and the field workers appointed for this campaign will be responsible for directly serving the people targeted in both the nations for offering medical assistance (Xiao, Yoonjoung Heo and Lee 2017).
• Marketing department in this CSR initiative of Unilever will conduct promotional activities that will generate awareness among target audiences of India and Bangladesh regarding this CSR program.
• The human resource development will be responsible for appointing doctors, nurses and other local helpers from rural regions of India and Bangladesh those will offer medical services to targeted deprived individuals in the selected regions.

In implementing the CSR initiative of “Mobile hospital” in both the nations India andBangladesh, analysis of the important stakeholders related with the campaign needs to be analysed by Unilever. This can facilitate the company in addressing needs of all its internal and external stakeholders associated with this new program.

Figure 5: Stakeholder Diagram of Unilever

(Source:Mohammed and Rashid 2018)

Important external stakeholder for Unilever in this campaign will be healthcare professionals, medical equipment suppliers and patent groups. The healthcare professionals will provide medical education and services to the patents. The patients will attain advanced care through this initiative through attaining services such as clinical trialsand emergency treatments (Song et al. 2015). The suppliers will provide with advanced medical treatment tools and necessary medicines. The internal stakeholders of Unilever in this CSR program include employees, operatehead and field workers. The field workers and employees will help the emergency patients in remote areas of India and Bangladesh to attain medical advice from this campaign. The operationhead will manage all the activities of this CCSR imitative of Unilever.

In implementing the decided CSR initiative, Unilever might deal with certain barriers that can be of both external and external types such as lack of resources and local support along with no willingness to fund CSR program (Ehie 2016). To deal with such barriers, it is recommended to Unilever to implement the CSR initiative of “mobile hospital” through usingLewin’s change management model including three stages of changes as indicated in the figure below.

Figure 6: Lewin’s Change Management Model

(Source:Hwang and Kandampully 2015)

• In the “Unfreeze” stage, Unilever must consider that its local management develops an explained plan of this new CSR initiative with clear vision and mission objectives communicated in all the management levels.
• In the “change” stage, the company must ensure that the local management is communicating with related stakeholders of the CSR program. This includes doctors, nurses and suppliers of medical equipment resources (Kiker et al. 2015). Employee resistance in participation within the program must also be decreased through providing them with necessary training programs and communicating the advantages of such CSR strategy.
• In “refreeze” stage, Unilever should go for implementing the “mobile hospital” program in India and Bangladesh and provide employees with job role in this program. Additionally, regular monitoring of this program must also be done for ensuring success of this CSR initiative and for furtherdevelopments in it.

Conclusion

The objective of this paper is to analyse the CSR initiatives of Unilever Company in its sustainable social development. It was gathered from the paper that Carroll’stheory-based norms, beliefs and culture existing within the society develops an ethical framework that must be attained by Unilever. Moreover, it is also revealed that FMCG companies like Unilever abides by the law of the nation in which it has its business operation. This is for the reason that each nation has certain important rules and regulations that indicates codified ethics of the society.

References

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