Business Ethics: Beyond Corporate Responsibility

Brief Overview

Corporate social responsibility is not the sole driver of business growth. Social innovation and sustainable development are critical aspects of business growth. Sustainable development and corporate responsibility have slowly taken shape through great strategies and implementation of policies. Business and NGO’s have partnered in many areas in order to achieve common goals, especially with corporate responsibility (Hartman, DesJardins & MacDonald, 2014). In today’s business world environmental sustainability and social responsibility have become the core business competencies. The changes experienced in the organization are as a result of political context, market economics, and the environmental challenges. Organizations have become more complex and multi-dimensional in order to achieve their objectives and be more efficient.

Strategic Issue

Unilever is a multinational organization that has been successful. Its success can be attributed to its strategic management assignment that has been implemented across its branches in various countries. The company profile has embarked on a personal and home care as well as edible and refreshment products to become the world most know and trusted brands (Hartman, DesJardins & MacDonald, 2014). Its vision element has earned it the respect and love as it has touched many lives. Its objective focuses on the touching the lives. Its mission element focuses on satisfying the needs of the customer that makes them feel and look good. Its brand identification and differentiation has played a significant role in the competitive market making it have a competitive advantage over its competitors (Hartman, DesJardins & MacDonald, 2014).

Key Problem

CSR is deeply coded in Unilever. However, CSR can be viewed to be a source of pressure to the organization. This is because of its wide scope and areas that can be treated to be of social responsibility. The big challenge comes with the execution of the plans in an approach that can truly deliver the lofty ambitions of the organization (Hitt, Ireland, & Hoskisson, 2016). The key problem comes with striking a balance of the society benefits and the business benefits. This is because of the propaganda that faces such noble courses. Partnering is a significant issue that affects Unilever due to the potential and quite questionable reputation that the organization may get.

Key Issues

Despite the great success, Unilever is faced with some key issues. Risk management is an issue that poses a great potential impact on the company performance due to the political risks in various countries, natural disasters, changing consumer tastes and the supply chain disruption that comes from the private-label brands. Customer relationships are an issue that comes as a result of operating in the toughest marketplaces of selling branded products (Hitt, Ireland, & Hoskisson, 2016). Sustainability is a tough challenge for Unilever as it aims at reducing the environmental impact as well as increasing positive social benefits. Supply chain risk is an issue that as the chain is exposed to possible difficult events of environmental, physical disturbances and manufacturing accidents.

Analysis and Evaluation

Hindustan Lever Limited HLL in India is a company that has been committed to the society. Its financial report is an indication of the strength of the company. For the year ended 31st March 2016, Unilever profits have increased by 4 % that is equal to 331.94 Rs. Billion (Hindustan Lever Limited, 2016). This is an indication that the organization has a wide clientele base as more people are buying the products. Unilever reduced by 6 % which is equivalent to 40.82 RS Billion (Hindustan Lever Limited, 2016). However, personal products increased by 7 % equivalent to 97.72 RS Billions. Life boy is a detergent that has gained significant recognition by the consumers due to its nature that aligns with the consumer need of germs protection. This can be seen in the sale and the detergent segment by 1 % that translates to 150.53 RS Billions. Internally Unilever grew by 4 % in India which is equivalent to 312.33 RS Billion and by 1 % outside India which is equivalent to 19.23 RS Billion (Hindustan Lever Limited, 2016). It's positive cash flows are as a result of the organization increase in total assets. The financial report is a clear indication of that Unilever is a strong company.

Unilever success has been achieved through sustainability. Management competence has played a significant role in its success. The management has ensured talent management in the organization. This has been driven by the force of recruiting people with a purpose in the organization. The workforce is a key to growth ambitions. This means looking beyond profits by a way of having an emotional connection with the people, allowing employees to be brand ambassadors as well as giving employees a chance tell their stories on platforms such as LinkedIn (Hitt, Ireland, & Hoskisson, 2016). Unilever has also focused on empowering people rather than forging partnerships. This has been played by business ethics, sustainability and equality. Its purpose through the brands has made sustainable living a common place for all. This is because of the intrinsic value that consumers can derive from its products. The marketing strategy of Unilever has played a significant role in its success. Its market penetration runs extensively in North America, Europe, and Asia which extends its product innovation (Kapferer, 2012). Its market development, diversification strategies have resulted in the expansion of its market. Monitoring and control by the company have created a balance in the financial, customer, internal and innovation perspective.

One of Unilever challenge is the recycling label failures. Its packaging is mostly in plastic that in most cases end up being dumped rather than recycled. This goes against the company environmental sustainability is it is hazardous to the environment (Kapferer, 2012). Unilever has also faced power failure that has led to wasteful use of haste. This was a result of the rivalry with P&G that saw the company lose more than $45 billion sales (Kapferer, 2012).

Recommendation

Unilever has to embark on strategic objectives that will help the corporation aim at establishing additional products that can retain its customers by advancing to their expectations. It should also focus on striking a balance between the company and CSR. This should be done through keen consideration of the benefits that the society will derive from the corporation and still not exert pressure on the business. Environmental sustainability should be on the forefront of the organization in order to maintain a reputable public image. This comes as a result of the accusation made that the company does not adhere to recycling policy. In order to enhance its growth, the corporation should target more market segments for the health and beauty conscious people through healthy and beauty care products.

Action Plan

Objective: To enhance business growth through sustainable development and social innovation

Step 1: Widen market segments. This will help in catering for the beauty and health conscious people further leading to growth.

Step 2: Consider the benefits of recycling the plastic packaging materials used. This will indicate the company to be committed to environmental sustainability

Step 3: form alliances with reputable firms. This will facilitate the CSR objective of the company.

Step 4: Build strong customer relationships. This will play a significant role in maintaining customer confidence of their products.

It is true to say that implementing the strategies will not be a smooth sail as there are unpredictable events that may happen especially in the toughest markets. However, with a determined management team, the plans will be implemented and executed in the right way in order to realize the organization growth beyond CSR.

 

 

 

 

 

 

 

Reference

Hartman, L.P, DesJardins, J., & MacDonald, C. (2014). Business Ethics: Decision Making For Personal Integrity &Social Responsibility. McGraw-Hill Irwin

Hindustan Lever Limited (2016). Annual Financial Report 2015-2016. Retrieved from https://www.hul.co.in/Images/annual-report-2015-16_tcm1255-482421_en.pdf

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Competitiveness & globalization.

Kapferer, J.-N. (2012). The new strategic brand management: Advanced insights and strategic thinking. London: Kogan Page.