Innovation and The Sustainable Organisation

Innovation and The
Sustainable
Organisation
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PART A...........................................................................................................................................3
Business approach to making profit from sustainability.............................................................3
Overview of the company............................................................................................................4
Literature Review........................................................................................................................5
Sustainability Stakeholders..........................................................................................................6
Sustainability Benchmark............................................................................................................7
Recommendation for managers...................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTRODUCTION
Innovation and sustainability represents the concept behind the next phase of economic
growth. It integrates the preservation of natural environments by the ecosystem with the notion
of business creativity (Baker and Mehmood, 2015).It providing vital products and services that
meet public health, equality and environmental protection these are the social goals and an
organization need to fulfil it. This report based on Unilever case study for sustainability which
further helps in innovating new products and services in the market for environmental benefits.
Unilever is UK based transnational consumer goods company which founded in 2nd September
1929 and founded by William Lever. This report covers the various topics such as sustainability
which organization offer, relevant literature review, sustainability stakeholders, benchmarking
and some recommendation for managers to improve overall performance.
MAIN BODY
PART A
Business approach to making profit from sustainability
Living in a unpredictable and unstable environment. Temperatures are growing, heat waves
are more common, food resources are increasingly rare, inequality gap is increasing, and millions
of people still have no access to basic sanitation and hygiene (Helsen, 2018). Such problems are
further exacerbated as the global population continues to expand. Opportunity comes with
transformation although co-founded of Unilever, Business & Sustainable Development
Commission, estimated that implementation of the Sustainable Development Goals (SDGs). It
aims to solve 17 of the most pressing issues in the world would generate new markets of at least
$12 trillion a year (Unilever sustainable plan, 2020).
In 2010, company launch Unilever Sustainable Living Plan (USLP) for sustainable
growth. It helps us to push our brands for sustainable development, save costs, reduce risk and
create trust among our stakeholders (de Vargas Mores And et.al., 2018). USLP is comprised of
three goals and based on nine-pillar that cover social, environmental and economic success
across the supply chain. This includes goals for expansion, like how customers use our goods
and how we provide finished products.Three major goals of Unilever Sustainability Living plan
is to improve health care facilities for around more than 1 Billion people by 2020, reduce
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environmental impact by 2030 and enhance livelihood of millions of people by 2020 (Unilever
Sustainable Living Plan, 2020).
Above mention picture shows the 17 sustainability development goals of Unilever
Company which helps the organization to maintain sustainability as well as generate profit
(Unilever sustainable plan, 2020). The opportunities provided by this change would be massive–
business opportunities up to US$ 12 trillion per year and up to 380 million jobs by 2030.
The union of the Dutch Margarine Unies and the British soap manufacturer Lever
Brothers in September 1929 led Unilever to create a neologism of the names of both firms. The
company's name is a portmanteau.
In the 1930s, industries expanded and in Africa and Latin America new enterprises were
introduced. During the Second World War the Nazi invasion of Europe stopped Unilever from
reinvestirting its capital into Europe, then it established new companies in the United Kingdom
and the United States.
Overview of the company
Unilever is UK based consumer goods manufacturing company which deals in huge range
of products such as food, energy drinks, ice cream and soft drinks, cleaning products, cosmetics,
and personal care. Unilever is among the oldest multinationals and they served in almost 190
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countries. It is a double-listed company composed of Rotterdam based Unilever N.V. and New
York based Unilever plc. The 2 businesses have a shared board of directors and function as a
single firm. Unilever is organized into four major sectors-food, beverage (drinks and ice cream),
home care, and beauty & personal care. It has facilities for product development in China, India,
the Netherlands, UK and the US.
Literature Review
According to Leleux and van der Kaaij (2019), Business approach of Unilever for
sustainability not only supported coordination with stakeholders but also promotes the accurate
and efficient reporting of sustainability results. The small collection of relevant key performance
indicator closely linked to the core product of the organization adds to the focus of sustainability
activities and makes contact clearer.
Helsen (2018), state that Unilever Company identifies sustainability issues by following
constructive approach that is required. They look at reasons for sustainability initiatives as well
as the big obstacles that multinational companies face. With the help of Unilever Sustainability
Living Plan (USLP), they highlight the contribution that global marketers can bring to executing
a sustainable strategy, and some of the obstacles they face.
Díaz-García, González-Moreno and Sáez-Martínez, (2015), discuss that, Unilever
Sustainable Living Plan aims to separate our development from our environmental impact while
growing our impact on society. Their strategy has three main targets to accomplish, underpinned
by nine commitments and objectives that extend our success across the value chain. Unilever
going to start partnering with others by concentrating on those sectors where they can make most
progress and help in UN Sustainable Development Goals (SDGs).
Fellnhofer (2017), Unilever recently announced its fourth consecutive year of growth for its'
sustainable living' products, which grew 46 per cent faster than the rest of the company,
generating 70 per cent of its increase in turnover. All Unilever's products are on a mission to
reduce their environmental footprint and maximize their positive effect on society.
Geissdoerfer, Savaget and Evans (2017),Consumer demand for sustainable brands is rising
strongly. Research indicates that 54 percent of customers would like to buy sustainable manner,
and even one-third of them do so. It is a huge opportunity and they have to make sure our
products are at the forefront of it.
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