Corporate Responsibility and Sustainability in the Food Industry: A Case Study of Unilever

This report discusses the challenges related to corporate responsibility and sustainability in the food industry, with a focus on Unilever. It analyzes best practices and makes recommendations for businesses to be more responsible by taking into account global considerations. The report covers issues such as supply chain management, animal testing, and eco-friendly packaging.

Business Ethics,
Responsibility and
Sustainability

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Examine and critically discuss the key challenges relating to corporate responsibility and
sustainability relating to your chosen sector/industry............................................................1
Critically analyse and explain what you consider to be 'best practice' within the chosen
sector/industry, making references to ethical and moral issues. ...........................................3
Make recommendations for businesses in the sector/industry to show they are being more
responsible by taking into account global considerations. ....................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business ethics basically involves the implementation of the various business practices
and policies and involves issues that includes discussions on the ethics which basically involves
discrimination, corporate governance, fiduciary responsibilities, insider trading, bribery and other
topics. Business responsibility basically involves the duty or responsibility of an individual to
complete a task or job. Business sustainability basically involves the coordination and
management of the social, financial , environmental and various other concerns in order to
ensure the ongoing, ethical and responsible success. In this report, the industry chosen is based
on the Food sector. The organisation which is chosen as the food based industry is Unilever. It is
a British based multinational consumer goods industry which is basically headquartered in
London, England. The report involves the various key challenges which are related to the
corporate sustainability and responsibility within the chosen food industry. In addition to that it
involves the critical analysis and best practices done within the industry in reference to the moral
and ethical issues. Furthermore, the report involves the recommendations for the industry or
sector which involves the various global considerations.
MAIN BODY
Examine and critically discuss the key challenges relating to corporate responsibility and
sustainability relating to your chosen sector/industry
Corporate responsibility basically involves a form of private business self regulation
which basically focuses on contributing towards the activist, societal goals of a philanthropic and
ethically oriented process or practices. In case of sustainability it basically involves meeting the
needs without harming and compromising with the ability of the future generations in order to
meet their needs(Cook, LaVan and Zilic, 2018).The term sustainability is not only related to the
natural resources but also need economic and social resources. The human rights, social justice
and climate change, environmental sustainability and various other issues are always a cause of
concern for the people. There are various issues around the world and in addition to that
corporate social responsibility plays a equal important companion. In today's scenario, people are
a very concern about the practices and policies which are made by the organisation in relation to
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the environmental issues. In context to Unilever, there are various challenges related to the
corporate social responsibility that involves:
Different priorities and corporate culture: The main challenge of the food industry involves
different priorities and corporate culture. It is very important and crucial for the organisation to
present a united front in relation to the various business ethics and that comprises of the social,
environmental and political issues. In this case, the Unilever struggle when getting everyone on
the same level which basically arises due to different business units having different
priorities(Tasleem, Khan and Nisar, 2019).
Demand for disclosure and transparency:
There has been a increase in demand due to all kind of stakeholders that basically
involves the consumers, suppliers, team members, local community organizations and investors.
There has been a constant increase in the demand due to accountability and greater transparency
within the organisations with whom the Unilever perform and do their business. In order to face
these challenges, businesses need various business practices for the purpose to prioritize various
ways in which they can manage, collect, organize and interpret ate their data for the purpose to
accurate, clear and complete various business and financial activities. In context to Unilever, the
main marketing challenge basically involves persuading the customers in order to change the
sustainable behaviours(Ishaq and Di Maria, 2020). There are various challenges in the
environmental sustainability that basically involves :
Uncompromising food production harms: It basically involves issues and harms related to the
production of food items. In context to Unilever, there are various number of issues which are
mainly related to the consumption and food production which majorly have a major impact on
the human health and environment that basically involves the chemicals, energy, water use,
water pollution, soil bio diversity, biotechnology and various other issues.
Green washing: The green washing has become one of the major concerns in the drink and food
world and which is basically involved in the true respectability of the packaging. In context to
Unilever, the food waste issue is the major cause of concern(Song and Kim, 2018).
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In today's scenario, people get confuse with the concept of corporate social responsibility and
objective of the organisation. In context to earning profits, a business firm has the major
responsibility to earn profits as compare to the owners and shareholders. In context to Unilever,
the organisations works in their best way for safeguarding the interest of the environment and
community(Laskar, 2018).
Critically analyse and explain what you consider to be 'best practice' within the chosen
sector/industry, making references to ethical and moral issues.
The moral and ethical issues are basically related to the wrong and right conduct. In
context to ethics, these are basically related to the rules which are provided by the various
external sources. There are various type of ethical issues in the organisation and these issues
might involve unethical accounting, discrimination,nepotism and favouritism, corporate
espionage, health and safety, abuse of leadership authority and privacy. In order to deal with
these ethical issues it is important to follow a ethical code of conduct that will guide the leaders,
managers and employees at the workplace(Rashid, 2018).
For example, the code of conduct in the principles of regions and in workplaces. On the other
hand, the morals basically refers to a person or individual own principles which helps in
regarding the wrong and right. In context to Unilever, the organisation is a huge firm and is
involved in almost every operations. There are various ethical issues in the organisation that
basically involves the supply chain management, animal testing, environmental reporting,
controversial techniques, human rights, pollution, habits and resources and various other political
activities.
Supply Chain Management: It basically involves the management of the flow of services and
goods and also includes all process related to the raw materials and final products. In context to
Unilever, the supply chain is extending beyond the manufacturing process and is basically
transforming into digital transformation and use of artificial intelligence in order to manage a
supply chain risks and also ensuring that the organisation can easily meet its demand of the
customer(Gupta, 2018).
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Animal Testing: It is basically related to the practice of experimentation and research with the
animals. In context to Unilever, the organisation is not involved in the practice of animal testing
and is one of the few companies who is listed by PETA(Patrignani and Whitehouse, 2018).
In context to Unilever, there are various practices which are conducted in reference to the moral
and ethical issues and in context to the food industry, they focuses on having a positive impact
on the distributors, value chain, third parties and working with the suppliers for the purpose to
raise the bar on various issues that involves corruption, anti-bribery and human rights. In context
to the organisation, the Unilever's Business integrity programme aims at bringing values to the
life of organisation's employees and also helps in applying ethical standards to the day to day
operations(Wong and Kim, 2020).The organisation's code of business principles involves the
learning materials, clear policies and guidelines in order to respond, detect and prevent any kind
of inappropriate behaviour in the organisation.
There business integrity basically focuses on making the organisation better and stronger
and helps in engaging, retaining and attracting the best employees and getting better for the
purpose of selecting the right business partners and suppliers. There practice to support the
situations and conditions in order to work in a collaborative manner both with the partners and
internally. In addition to that the organisation ensure to align its business operations with laws,
regulations and values in all the countries where is perform its business operations. It basically
follows the practice of three pillars which involves Prevention, Detection and Response. The
organisation believes in performing various activities with the high level of integrity and also
focuses on portraying respect to the environment, organizations and the society. The organisation
also focuses on making a positive impact on the society in various forms. The major practices of
the Unilever involves voluntary contributions to the organisation and society through bringing a
positive influence on the society.
The other main objective of the organisation is to develop a sustainable business. The
company follows a code of business principles that helps the organisation to perform various
ethical and moral practices. The organisation has obtained a certain standard in relation to the
relationship with customers, employee relationships and creating a impact on the environment. In
the year, 2010, the organisation launched its sustainable living plan with the objective to cut
down the environment footprint by half in the year 2020. In today's scenario, the ethical conflicts
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is a common issue. Therefore the employee misconduct is not a common issue. The common
issues in employee misconduct basically involve harassing other workers, misusing company
time and taking credit for other's work. In context to Unilever and various other companies have
enforced ethical code of conduct that clearly indicates the punishment and definition of the
misconduct of employees. All these documents provides data and information related to the
company's philosophy and mission statement. In order to deal with the moral and ethics issues it
is important that the company should revisit there code of ethics in a timely manner for the
purpose to accommodate changes and trends in the national practice. In context to Unilever, the
organisation's business leaders need to amend their code of ethics.
The employers of the Unilever should provide various opportunities related to education
for the purpose to successfully implement various policy changes and also setting goals for the
managers and the senior leaders. In context to the organisation when managers implement a
proper system of dealing with the moral and ethical issues in the workplace, everyone in the
organisation need to adhere. With the help of a strong code of ethics, it helps a organisation in
preventing the geological process of trust outside and within the walls of the organisation and
contributing towards the financial security and success which helps in making good business
sense. Though it is impossible that there will be a completely free of disgruntled and misconduct
employees but the supervisors of the organisation can focus on implementing such policies that
helps in minimizing the various ethical issues in the organisation. Through proper training it will
help and contribute towards making the workplace more enjoyable and safe for
everyone(Thomsen, 2018).
Make recommendations for businesses in the sector/industry to show they are being more
responsible by taking into account global considerations.
Global Trends and Considerations basically involves the global projects that consists of a
team which is generally formed through various cultures, continents and multiple countries. The
global considerations can be highly affected due to various factors that involves age, religion,
gender and various cultural beliefs who have a major and important impact on the cohesiveness
of the team. In context to Unilever, the organisation need to take into account various global
considerations. In order for the food industry to be more responsible there are a few
recommendations which the company can implement in its business operations. Though the idea
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of being global has been present in the workplace over a decade but it is very important to take
into account a few global considerations before entering in the global market(Rustam, Wang and
Zameer, 2019).
Identification of goals: In order to expand globally it is very important to identify the objectives
and goals. In order to identify goals it is important that the goals should be relevant, specific,
measurable and relevant which helps in predetermining the end goals. In context to the Unilever
and various other companies who are involved in the food industry it is important to follow some
practice that can help the organisation to become more responsible with taking account some of
the global considerations(Candi, Melia and Colurcio, 2019).
Improving water and energy efficiency: When it comes to industries,manufacturing and food
processing both are highly water and energy intensive. It is highly challenging and when it
comes to water and energy consumption in the manufacturing and food processing sector. In
order for Unilever to be more developed, the organisation should focus on deployment of smart
meters, sustainable water management systems and implementation of energy efficiency with the
help of acting and identifying opportunities.
Reducing food waste: As per the Food and Agriculture Organization it is determined that nearly
a third of food produced for the human consumption gets wasted every year. This not only results
in major food but also results in loss of resources which are used while producing a food material
which basically involves the energy, water, soil nutrients, labour and transportation. The main
reason of the food waste causes because of the inefficiency during manufacturing and processing
process. In order to reduce the food wastage, it is highly recommended for the food processors
and manufacturers to optimize their management systems and processes. It basically starts from
carefully identifying the causes and measuring management systems with providing effective
training to the employees(Allen and Spialek, 2018).
Using Eco friendly packaging : The packaging of the food is considered to be a major source of
pollution and waste. Nowadays, organisation are using alternatives such as paper and wood
which considered to be source of easily recyclable, renewable and biodegradable. In context to U
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liver, the organisation should start using eco friendly packaging which will help in recyclable
process(Uyar, Ramadan and Nimer, 2019).
Market Research: In order to expand business operations in the global market it is very
important to understand the regional markets before entering into it. It is basically a process of
determining the viability of a new product or service with the help of research conducted directly
in relation with the end customers. Through market research it helps a organisation to get
feedbacks and opinions from the customers about the interest in the service or product(Von
Schomberg and Hankins, 2019).
The global business have become a passage for enhancing communication, cultural
understanding and exchange of new ideas among the improved services and products and
governments. The companies who are operating at a multinational level have major influence on
the quality of life for the billions of people worldwide. The organisations who easily understands
the impact results in wider acceptance in the marketplace globally. If an organisation understands
the needs there will be high chances that a modern consumer will accept the offer from a foreign
based country.
In order to do a business at international level requires smooth relationship among the
countries which basically involves the heads of foreign governments and the state department
who are motivated to maintain cordial relationships and negotiate lucrative trade agreements.
Moreover, the companies have everything that is needed in order to gain through positive values.
In addition to that, importing values from various countries helps in better understanding of the
culture which results in facilitating the diplomatic process(Menon and Suresh, 2020).
Through the use of efficient international shipping methods, it becomes easy for the small
businesses to compete with the various large corporations in the marketplace globally. The
organisations who are facilitating global trade are opening the door for the small players for the
purpose to thrive and compete. It basically resulted in increased opportunities for start ups and
also helps the new entrepreneurs to climb out of the poverty line and coming into the category of
middle class. With increase in competition it helps in improving the services and products
allowing the small businesses owners to innovate and compete based on the superior
quality(Cavaleri and Shabana, 2018). Due to digital communication, the emerging markets are
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developing at a faster pace and much more quickly. With the use of internet, the industries can
offer services and products at a global scale for the same cost which they usually can offer
locally(Laskar and Maji, 2018). For the objective to do business in multiple countries and
continents, the organisation's managers and owners need to identify and understand the value of
diversity when it comes to various terms such as customs, beliefs, ethnic backgrounds, genders
and religious beliefs. It basically helps in creating a atmosphere of acceptance and tolerance
among the business organisation which usually engage in the global trade. In order to perform
operations in the international market it is very important for the businesses to fulfil their
responsibilities and obligations which involves direction of operational activities in order to
create in demand global services and products, signing off and negotiating on contractual
agreements, assigning managers and department heads overseas. In addition to that it is
important to discuss performance of the organisation with the board members, executives and
staffs across the world(Wannags and Gold, 2020).
CONCLUSION
From the above report it can be concluded that business ethics plays a very important role
in the organisation. In addition to that the report also helps in analysing the business
responsibility for the purpose to ensure responsible, ethical and ongoing success. It helps in
analysing the various key challenges in the food industry such as Unilever related to the
responsibility and corporate sustainability. Moreover, it helps in critically analysing the best
practices performed within the industry in reference to the ethical and moral issues with the
required recommendations for the food industry which includes the various global
considerations.
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REFERENCES
Books and Journal
Allen, M. W. and Spialek, M. L., 2018. Young millennials, environmental orientation, food
company sustainability, and green word-of-mouth recommendations. Journal of food products
marketing, 24(7). pp.803-829.
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both business goals and social needs with innovation. Journal of Business Ethics, 160(4),
pp.1019-1033.
Cavaleri, S. and Shabana, K., 2018. Rethinking sustainability strategies. Journal of Strategy and
Management.
Cook, L., LaVan, H. and Zilic, I., 2018. An exploratory analysis of corporate social
responsibility reporting in US pharmaceutical companies. Journal of Communication
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Gupta, K., 2018. Environmental sustainability and implied cost of equity: International
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Ishaq, M. I. and Di Maria, E., 2020. Sustainability countenance in brand equity: A critical review
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Laskar, N. and Maji, S. G., 2018. Disclosure of corporate sustainability performance and firm
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Laskar, N., 2018. Impact of corporate sustainability reporting on firm performance: an empirical
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Menon, S. and Suresh, M., 2020. Synergizing education, research, campus operations, and
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Patrignani, N. and Whitehouse, D., 2018. Slow tech and ICT: a responsible, sustainable and
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Rashid, A., 2018. The influence of corporate governance practices on corporate social
responsibility reporting. Social Responsibility Journal.
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Song, S. Y. and Kim, Y. K., 2018. Theory of virtue ethics: do consumers’ good traits predict
their socially responsible consumption?. Journal of Business Ethics, 152(4). pp.1159-1175.
Tasleem, M., Khan, N. and Nisar, A., 2019. Impact of technology management on corporate
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Von Schomberg, R. and Hankins, J. eds., 2019. International handbook on responsible
innovation: A global resource. Edward Elgar Publishing.
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Wannags, L.L. and Gold, S., 2020. Assessing tensions in corporate sustainability transition: from
a review of the literature towards an actor-oriented management approach. Journal of Cleaner
Production, 264, p.121662.
Wong, A.K.F. and Kim, S. S., 2020. Development and validation of standard hotel corporate
social responsibility (CSR) scale from the employee perspective. International Journal of
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