Challenges Faced by Unilever in Implementing CSR Policies

This research report delves into the challenges faced by Unilever in implementing corporate social responsibility (CSR) policies and argues for the importance of addressing these challenges. It discusses the impact of these challenges on the organization and recommends solutions for successful implementation. The report also emphasizes the relevance of CSR in the overall progress and sustainability of business enterprises.

MANAGEMENT REPORT PROPOSAL
Name of the student
Name of the university
Author note

Introduction
Aiming to understand and gauge the various factors that pave the way for the challenges
faced by Unilever in the global application of the various policies related to Corporate Social
Responsibility, the research report will delve into the crucial aspects. The following research
report will endeavour to argue for the fact that it is extremely important to adopt corrective
measures for the erasure of the challenges. The following research report will also argue for
the notion that the policies and ideologies related to Corporate Social Responsibility form an
integral part in the overall progress and future sustainability of business enterprises. Hence, it
is highly important for Unilever to address the challenges and erase them.
Discussion
A closer analysis of the current business scenario will project the idea that in order to succeed
as well as compete with the changing environment and preferences, it is extremely crucial to
devise as well as enact the CRS policies (Hopkins 2017). The following research proposal
report is based on the context of the current challenges faced Unilever in incorporating and
implementing the CSR policies. The context is relevant because it will help in the generation
of the solutions that need to be adopted. Further, the research report will also take into
consideration the exact nature of the impacts that are yielded upon the business organization
due to the surging challenges. The research report will endeavour to investigate into the
above-mentioned issue in a detailed and accurate manner. The following paragraphs will shed
light on the important areas related to the challenges faced by Unilever in the inculcation of
CSR.
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Following a systematic and chronological manner, the research report will endeavour to shed
light on the suppose solutions that can be incorporated and imbibed to reduce the impacts of
the challenges. In order to contextualize the research report, the report will shed light on the
various research methodologies that can be used to analyse he secondary resources. A closer
analysis of the research methodologies will reveal the most important aspects related to the
research. In addition to this, the research report will take into consideration the information
available through a closer examination of the secondary literature. Followed by this, the
research report will also indulge in a closer and faithful analysis of the available information
from the secondary resources.
What makes this research interesting is the fact that it tries to focus on the crucial areas
related to Unilever’s challenges. However, the report will also shed light on the related
aspects of Corporate Social Responsibilities in various business organizations. What makes
the research topic worthwhile exploring is the fact that it is based on an important issue of the
various challenges that re faced by business organizations such as Unilever. In addition to
this, the research report will also conjure examples from the real practices of the organization
that is Unilever. By referring to relevant secondary sources, the research report will refer to
the views of the authors and critic.
The following paragraphs will delve deeper into the research questions, objectives that had
been enlisted. The chosen topic of the research report is relevant in contributing to the future
research endeavours.
Research aims and objectives
This study aims to study the lack of implementation of socially responsible action of the
chosen company. Following objectives of the study are:
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 To identify the challenges faced by Unilever in effective implementation of
Corporate socially responsible policies
 To analyse the underlying factors for failure of adhering to the CSR policies in
comparison to the rest of companies in market
 To recommend means of successfully implementing the CSR policies that can also
enhance the image of the company
Background of the Study
A closer examination of the information provided in the website of Unilever will project the
notion that the business organization strives to incorporate as well as implement the CSR
policies in relation to the global application (Hopkins 2017). Established in1929 by the
merger of Margarine Unilever and Lever Brothers, Unilever has strived to meet the demands
of the customers in accordance to the changing preferences. It is also observed that Unilever
has endeavoured to expand its business enterprises by inculcating diversification of the
products. A closer examination of the market expansion of Unilever will project that the
organization had expanded to 2.5 billion customers all over the world (Unilever global
company website, 2019). It is also seen that at the present scenario, Unilever has expanded its
product base to over 400 products that promises to cater to the needs of every consumer
(Unilever global company website, 2019). Unilever Global has modified its business aims by
changing their motto to “Brands with a Purpose” (policies 2019)
Taking into consideration this aspect, it can be mentioned that Unilever has adopted the
notion of ‘sustainable businesses”. This refers to the manner in which the business enterprise
indulges in conducting business while taking into consideration and prioritizing the
sustainable goals in relation to the sustainable environment and social factors (Antonaras et
al. 2018). In addition to this, the policies of Corporate Social Responsibilities are related to
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the sustainable goals. In the case of Unilever United Kingdom and Global, it is observed that
the organization observes and maintains the CSR initiatives of reducing environmental
impacts. It had also incorporated the CSR initiative of improving the social health standards
of the people. The CSR implementation can also be traced in the sustainable living brands
that serve to improve the quality and sustain the environment (Grayson 2017).
However, it is seen that Unilever faces certain problems in the implementation of the
envisioned CSR policies in the local as well as global scale. Recent studies are emblematic of
the fact that there are certain global challenges that need to be eradicated following the local
mannerisms (Forbes.com, 2019). The problem and challenge lies in the fact that Unilever has
to meet the specific challenges and ideologies of each area. It is also observed that due to the
faulty leadership of Poleman, Unilever has suffered innumerable financial and other losses
related to the public relations (Forbes.com, 2019). In addition to the above-mentioned
problems, Unilever’s policies of Corporate Social Responsibilities also face the
implementation challenge related to the global applications. Unilever has faced the brunt of
environmental challenges (Rangan et al. 2017). Unilever had often failed to incorporate the
environmental policies in a proper manner. Further, the implementation of CSR objectives
and policies are also facing the challenge of the political propagandist ideologies that serve to
nullify the sustainable objectives of the organization. This is a problem now because
customers throughout the world are aware of the various nuances of the corporate social
responsibilities related to each business organization. Recent studies project the idea that the
recent customer trends and preferences are inclined towards the companies that incorporate
and achieve the said CSR objectives (Salvioni et al. 2016). Certain studies also reveal the
idea that Unilever’s apparently sustainable products are often manufactured by endangering
many crucial factors. Lastly, Unilever also faces the challenges related to the short term goals
that act as hurdles for the application of CSR goals.
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This is a problem because although Unilever has devised various CSR strategies, it is facing
problems in implementing them on a global scale. Unilever faces the challenge of the
opposing and negative impact on the environment (Salvioni et al. 2016). It is also seen that
Unilever also faces the CSR challenge of convincing the customers to reduce the
environmental impacts (Forbes.com, 2019). The need of the hour is to adopt and enhance the
innovative policies to ensure the proper implementation of the CSR policies. It can be said
that the question is important as it encapsulates the need for the implementation of correct
strategies for the implementation of the global CSR policies.
Research Methodologies
In order to answer the various research questions and to arrive at proper and accurate research
results, it is important to resort to the adoption of correct and applicable research
methodologies. Recent studies are emblematic of the notion that adoption of research
methodologies is crucial for the proper study of various researches. The following research
shall incorporate the relevant methodologies in order to arrive at the results.
Data Collection
In order to understand the challenging factors, the following research will adopt the data
collection procedure that is based on the qualitative data collection. Recent studies project the
notion that qualitative data collection in research allows the collection of data from the
available secondary resources. Qualitative method of data collection is also based on the idea
of amalgamation of the information available from the secondary resources (Tran 2019). The
research has taken into consideration the qualitative data collection by collecting relevant
data from the scholarly articles available in Google Scholar. This had enabled the scope for
the study to collect necessary information from the articles. In addition to this, qualitative
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data collection has also paved the way for the accurate references to the information
generated from the information in the news articles and statistical data. The research has
solely focused upon the collection of secondary data. This had enabled the research to refer to
the views of the authors and critics in relation to the topic. The secondary resources that are
going to be used point towards the peer reviewed journals and the information generated from
the news articles and the statistical data. Referring to journal articles will assist in the proper
collection of the views of the tested and relevant articles. The information from news articles
will also permit the scope for the reference to the real examples that involves the topic. The
research report will also take into consideration the relevant information that is available
from the official website of the business organizations. This will assist in the development of
the proper ideas in relation to the exact challenges related to the incorporation of the CSR
policies in Unilever.
Data Analysis
In order to analyse the acquired data from the secondary sources, the research has taken into
consideration the qualitative data analysis related to the processes of selection, interpretation
and abstraction. The adoption of this process had enabled the research to gauge the various
nuances of the information available from the secondary sources. The data analysis would
be conducted by adopting one of the analytical research models. This paper will be adopting
the review model. This will be based on the effective consideration of already available data
and information in order to conduct the in-depth analysis of the issue to understand the
complex phenomenon. The review method is based on the formal assessment of the available
information.
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Presentation of the Research
In order to arrive at the results, the research report had resorted to the amalgamation of the
various secondary resources. In this research, the secondary resource had been analysed and
studied for a closer analysis of the topic in relation to Unilever. A closer examination of the
recent news articles such as Forbes news articles have projected that Unilever has indeed
failed in many areas to incorporate the said CSR objectives (Forbes.com, 2019). The
information that Unilever faces challenges in the implementation of the CSR and sustainable
policies have been found in the relevant statistical and other subjective information
(Graafland et al. 2019). It is also observed that although Unilever has incorporated the
policies related to sustainability, it is facing varied problems associated with the application
of the CSR policies. It has been found that the short-term policies and ideologies of Unilever
have impeded the application of the corporate social responsibilities strategies (Carroll 2016).
Recent studies also project the notion that sole focus on the short-term goals of a business
organization can pave the way for the hurdles in the implementation of CSR polices. Recent
studies also project the idea that corporate social responsibility refers to the various strategies
and policies that are adopted after taking into consideration the social and environmental
responsibilities (Carroll 2016). Therefore, in order to achieve the proper implementation of
the CSR objectives, it is essential to erase the problems. Through the analysis of the
secondary resource, it has been found that the challenges in the implementation of CSR can
impact the overall functioning of firms such as Unilever. The inability to incorporate CSR in
a proper manner can pave the way for lower customer support and lower customer belief in
the organizational activities. In addition to this, it is also found that the various challenges in
CSR application can lead to the loss of the faith of the investors (Neslen 2017). Recent
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studies justify the fact that the policies of Corporate Social Responsibilities form an integral
role in garnering the required faith of the customer base.
It has also been found that Unilever’s failure to implement the CSR strategies can be
attributed to the factor of the incorrect leadership of Paul Poleman. Recent studies reflect the
idea that without the existence of proper leadership in business organizations, the various
organizational activities cannot be incorporated (Hultman et al. 2018). Information from
recent news articles project that under the leadership of Paul Polman, Unilever had suffered
losses in connection to the financial transactions (Neslen 2017).
It is seen that Unilever faces the challenge of being mired in innumerable controversies in
relation to the labour rights (Graafland et al. 2019). It has to be accepted that in addition to
the external social responsibilities, Unilever is also entrusted with the duty to take into
consideration the rights of the employees. In the global scenario, it can be traced that
Unilever is often accused of violating the basic rights of labours. A study projects the notion
that Hindustan Unilever has often been accused of exploitations the rights of the workers and
increasing the rate of the already existing poverty (Hopkins 2017). Thus, it can be said the
global application of CSR policies faces the challenge of faulty implementation and irregular
checks on the implementation of the policies. It is traced that the exact challenge faced by
Unilever is vested in the incorrect ideologies and controversies. The need of the hour is to
look into these issues at the earliest. The global challenge of Unilever in the application of
CSR can be attributed to these controversies. Another controversy that has affected Unilever
is the controversy related to the environmental impacts of Nestle, Unilever and PepsiCo.
Recent studies present that these business organizations had indulged in illegal rainforest
deforestation (Neslen 2017). The news article also mentions that Unilever had engaged in the
displacement of the natural habitat of wild animals such as Elephants. This is reflective of the
manner in which the CSR objectives are restrained and even overturned by the improper
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implementation and irregular checks on the implementation of CSR policies. Recent studies
also project the idea that Unilever has also suffered the brunt of the controversial issue of the
mercury poisoning that had been experienced in India (The Guardian). The global challenges
of Unilever in the incorporation of the CSR policies can be read in terms of these
controversies. It has to be accepted that the CSR policies face challenges are perpetrated by
the controversies that reduces the applicability of the policies.
It is also found that this impacts the overall performance of Unilever. It is seen that the
improper implication of CSR policies can affect the daily functioning of the business
organization. Proper research presents the idea that these CSR challenges can be erased by
the incorporation of measures such as proper implementation and regular check upon the
CSR policies (Visser et al. 2017). It has also been found that the challenges faced by Unilever
can also be mitigated by the strict vigilance upon the implementation strategies. Recent
studies also project the notion that the incorporation of CSR policies can be ensured by the
manner in which the business organization adapts to the changes in accordance to the
prevalent needs in each country.
While exploring the topic, what was most challenging was the collection of relevant
information from the available secondary resources. It was indeed challenging to trace the
various challenges as well as shortcomings related to the implementation of CSR policies in
Unilever. What is most challenging in this research is that the above-mentioned business
organization had already imbibed the aspect of sustainable products and sustainability in
relation to CSR policies. It has to be accepted that Unilever is one of the most important
business organizations that has been focusing upon the maintenance of the sustainable
environment. Therefore, it is indeed difficult as well as challenging to trace the areas that
need to be improved by Unilever to meet the strategic goals related to CSR.
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Analysis of the findings
From the above analysis it could be said that the issue of incompetent leadership is one of the
primary aspects which has led the problem of non-implementations of some of the CSR
policies. It seems that there is a need to develop band of corporate leaders who share visions
of attracting and engaging employees in a meaningful manner. It is equally important to
consider the fact that building trust is one of the significant aspects of the new corporate
leadership requires. For effective implementation of the CSR policies, it is important to
consider that fact the leadership style should be inclusive of the following aspects:
employee’s attraction, engagement and retention of those employees (Coulson-Thomaset al.
2015). It is important to consider the changing role of the CSR policies since the leader
who has better sense of changing requirement of the policy needs are the ones to attract and
retain the staff and the employees of the company.
In case of the environmental controversies that the company is currently facing, it is to be
noted that one of the controversies that the company is faced with is challenges of effectively
implementing the CSR policies (Saxena et al. 2017). For being one of the palm oil
manufacturers of the world, they have been blamed for violating the environmental standards
since they have been cutting the palm trees which have led to the loss of habitat for the
engendered species. This is to be noted that their implementation of CSR policies are not
aligned with the activities that they have been taking up in the last few years. In case of
manufacturing products for the people all around the globe, they are destroying the habitat of
many of the engendered species of rates (Rajamurugan et al. 2017). It is to be argued that this
company fails to implement the right kind of CSR policies due to the improper understanding
of the protection of the natural resources (Joutsenvirta et al. 2017). This is further important to
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consider that the company has not been able to design their CSR policies that will promote
the interest of both the customers and the environment.
In case of the violation of the labour rights of the company since it has been argued that the
company has undertaken the unsafe method of waste disposal which is against the basic
rights of the labours who work under safe environment (Melton et al. 2017). In case f this
labour rights violation, it is important to analyse the gap between the company’s labour rights
and its proper implementation (Kabir et al. 2017). This is to be noted that protection of
human rights has not been given higher priorities in comparison to the other company is that
the global market and this has raises question about the safe standards and working
conditions of the labourers. The company has taken up number of initiatives for safe working
conditions, protection form forces labour, fair wages in all the sectors and universal standard
of operating conditions. This has been criticised that the company failed to protect the interest
of the biggest stakeholders of the company which is the employees and the staff of the
company (Haque et al. 2018). Hence effective implementations of the CSR policies have
been highlighted in number of cases and situations. This understanding of the issue leads us
to the conclusion that the company lacks the robust structure of protection of the employee’s
interests.
Hence from the above discussion it can be analysed that the source of the problem is deep
rooted in the irrespective if being one of the champions of the world in terms of
sustainability, there are number of gaps and lacunae that has been impacting the successful
operations of the company. In addition to this, it is also found that the challenges faced by the
business organizations can also be attributed to the challenge of meeting the varied
sustainable demands of the customers throughout the world (Golob et al. 2017). In order to
apply the strategies of CSR, Unilever has to take into consideration the various nuances
prevalent in each country. This can act as a challenge because it is seen that the cultural,
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social and environmental impacts in various countries differ in degree and application
(Sheehan et al. 2018). Therefore it is important to consider the fact that the issue of
sustainability is diverse and it is spread across multiple sectors. Hence it is to be concluded
that the targeting is each of the sustainability issues of the company requires individual
attention to each of the issue. Te following part of the analysis would be discussing the
recommendations of the issue of sustainable corporate policies.
Recommendations
The question that has been raised time and again is how to install a sustainable project for the
implementation of the short-term and long-term policies. One of the strategic areas that the
company should focus is to re-think and focus on the issue of philanthropy. This is to be kept
in mind behind the design of any CSR policies, it is important to keep in mind that all the
business endeavours are not meant for profit making and some of the issues like the
manufacturing of the palm oil related products are to be replaced with more environment
friendly products that can sustain the species without hampering their growth. This can be
achieved by the process of the engagement of the civic organizations, community and their
initiatives and the employees who wants to volunteer for the same.
Secondly it is important to consider the fact that the all he short-term and long-term polices of
the company are to be implemented with the view of protecting and promoting the
effectiveness and efficiency of the stakeholders in the value chain.
In case of the protection of the employee rights and the company should highlight the need of
having a robust management team which is aware of the rights of the employees and the it is
only after the due consideration of all the nuances of the laws in practice the company would
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be able to adhere to the needs of the employees (O’Toole 2019). Hence this is to be
considered that equal wages, fair working condition, working hours and the proper
compensation and incentives are one of the crucial aspects of the employee management of
the company (Lee et al. 2016). Thus it is to be concluded that the impact of the robust
employee management would be important in maintaining the global image of the company
in the global market and reflect their sustainability initiative both internally and externally.
This is also important to study the industry regulations in order to implement them in a
sustainable manner. This is to be noted that the implementation of CSR policies requires the
protection an promotion of the employee rights of the company.
In order to develop environmentally sustained CSR policies, it is crucial to develop and adopt
the following steps. This is recommended that the company should develop short-term and
long-term policies be based on high standards and less reduction of greeneries (Kolk 2016).
Their initiative should be based on building trust with the stakeholders in terms of
management natural resources. Such policies should be focused on the protection and
conservation of the species hence reduction and destruction of engendered species are to be
avoided. This policies should be based on the reduction of carbon emission and minimise
total level of negative impact on the environment. This is should also be focused on
achieving the best sustainable practices as much possible since the meaning of CSR policies
becomes meaningless unless there is a lag in implementing environmentally sustainable
policies.
Lastly it is crucial to include one of the leadership styles in case of the effective
implementations of policies. This type of leadership would be based on the following ground:
leadership should be based on the analysis of the present business strategy that the company
has since it is important for the company to align their CSR policies with that of the business
strategy (McDonald et al. 2016). Hence one aspect of the CSR policy is taking initiatives to
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align and fit the CSR policies within the core business processes of the company. This new
type of leadership will have to include the engagement of all layers of management starting
from the employees to the higher level (Do 2016). This will help the company to deal with
the effective implementation of the CSR policies by including it at all level and this structure
should be based on the bottom-up approach than the top-down model. This leadership should
also be substantiated with the less changes in the leaders since this problem leads to the
change in the frequent leadership styles (Fraile et al. 2017). It is further important to consider
the fact that effective implementation of the CSR policies are to be integrating with the
thinking process based on innovation method. Leadership styles are one of the crucial aspects
of successful CSR policy implementation. Moreover in case of the CSR implementation the
role of the leader becomes crucial than the rest of the employees of the company since it is
him/her who is guiding the people to adopt socially responsible actions.
Conclusion
It has been observed that the company, Unilever has been facing one of the key issues of their
effective CSR policies, this can be concluded that the company at the present condition the
company y is facing number of challenges regarding the implementations of the CSR policies
due to the reasons of ineffective leadership, failure to maintain the standards of labour rights,
environmental standards management and the number of controversies it is engaged.
Irrespective of being one of the most successful businesses of the world, the company has
gained much appreciation and name in implementing the CSR policies. However it is not to
deny the fact that the company has failed in number of cases. This brings us the analysis that
there is a need to develop a robust structure for effectively managing the socially responsible
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actions. The company needs to develop and improve the existing management of the CSR
policies with the help of innovation and new thinking.
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