Stakeholder Management of Unilever

The paper explores the stakeholder management of Unilever, a multinational fast moving consumer goods company. It discusses the impact of stakeholders on the company and ways to manage them effectively. The stakeholders include investors, employees, consumers, governments, financial institutions, suppliers, logistics chains, ecommerce companies, social networking websites, marketing companies/PR agencies, and competitors. The paper also includes a literature review on stakeholder theory and stakeholder management theory.

Running head: STAKEHOLDERS OF UNILEVER
Stakeholder management
Name of the student
Name of the university
Author Note:

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STAKEHOLDERS OF UNILEVER
Executive Summary:
The management of stakeholders have gained immense importance in the survival and growth of
the business organisations. The multinational companies owing to their global presence come
under influences of innumerable stakeholder groups both in their home countries and host
countries. The stakeholder base includes investors, employees, consumers and governments both
from their home countries and host countries. The paper would deal with these stakeholders and
ways to manage them by taking Unilever as the example.

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STAKEHOLDERS OF UNILEVER
Table of Contents
Introduction:....................................................................................................................................2
About Unilever:...............................................................................................................................2
Figure 1. Graph showing 5 year historic price of Unilever.............................................................3
Stakeholders of Unilever and their impact on the company:...........................................................4
Literature review:.............................................................................................................................8
Stakeholder theory:..........................................................................................................................8
Stakeholder management theory:....................................................................................................9
Development of an effective stakeholder communication plan or strategy:.................................10
Engagement with the Government................................................................................................12
Engagement with the NGO’s.........................................................................................................12
Engagement with the Suppliers.....................................................................................................12
Engagement with the customers....................................................................................................13
Use of social networking platforms in project implementation:...............................................13
Critical analysis, evaluation and examination:..............................................................................15
Conclusion:....................................................................................................................................17
References......................................................................................................................................18

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STAKEHOLDERS OF UNILEVER
Introduction:
As per Hörisch, Freeman and Schaltegger(2014), stakeholder’s management has gained
immense significance in management of business management and the importance of
stakeholders in the operation is indisputable. The term refers to the management of stakeholders
so as to ensure benefit of all them. This helps business organisations to gain prolonged support of
stakeholders. Stakeholders can be individuals or groups, but all of them play tremendous role in
ensuring growth and sustenance of business operations in the market. In fact, the stakeholder
management has emerged as a core business strategies which advances and gains shape. The
stakeholders’ engagements play far more significant roles multinational companies compared to
small firms. This makes it important to maintain a continuous strong communication with the
stakeholder groups. The paper would explore this engagement of stakeholders through the lenses
of one of the largest fast moving consumer goods marketer in the world, Unilever.
About Unilever:
Unilver is one of the world’s oldest and largest multinational fast moving consumer
goods marketing companies. In fact, according to an article published by the China Daily,
Unilever occupies the fourth position internationally behind PepsiCo, Procter & Gamble and
Nestle AG (chinadaily.com.cn 2018).The company has its headquarters in London, the United
Kingdom and Rotterdam, Netherlands. Unilever is a public limited multinational company
primarily listed on London Stock Exchange. Unilever adopts various business models to function
in the global market like export, joint venture, acquisition and merger and wholly owned
subsidiaries. The British-Dutch consumer giant functions in its potentially important host
countries like the United States of America and India through its wholly owned subsidiaries
which are also public limited companies listed on the top stock exchanges like NYSE and

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NSEIL. The graph below shows that Unilever holds a high position in the share market and
enjoys a formidable capital base.
Figure 1. Graph showing 5 year historic price of Unilever
(Source: londonstockexchange.com 2018)
Unilever along with its wholly owned subsidiaries own some of the top brands in the
global market like Lux and Axe. The product line of the company consist of food and drink,
home care, personal care and water purifier.It exports products in countries where it has no direct
presence. Thus, Unilever through its diverse products serve millions of customers around the
world both through its subsidiaries and channel partners. The management of the company is
helmed by Paul Polman, the present CEO. The wholly owned subsidiaries function under the
leadership of their individual management which function under director of the apex
management. The company is one of the top employers in the world and works with several
governments. The company employs around 165000 employees and bears an expenditure of €
6712 million globally. The company earned a profit of €8857 million while its net profit is €6486

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STAKEHOLDERS OF UNILEVER
million in the year 2017 (unilever.com 2018). Unilever besides earning an immense profit also
promotes to the growth and development of societies around the world through its corporate
social responsibilities. The main markets of Unilever are Europe, Asia-Pacific, Americas, Middle
East and Africa where some of the subsidiaries like Hindustan Unilever rule their respect
markets making huge profits on its behalf (bloombergquint.com2018).
Stakeholders of Unilever and their impact on the company:
The above discussion about Unilever brings into light the several stakeholders both
groups and individuals. The following table would enlist the stakeholders including the ones
mentioned and the ones not mentioned.
Stakeholders Internal/
external
Impacts on Unilever
Management bodies (apex and
subsidiaries)
Internal 1. Forms strategies and policies of Unilever
and its subsidiaries.
2. Forms a bridge between the company and
the key stakeholders like governments,
financial institutions and legal systems.
3. Provides guidance and directions to the
middle and lower strata.
4. Steers the operations of Unilever.
Employees (Unilever and its
subsidiaries)
Internal 1. Executes the strategies formed by
the apex management and achieve
business targets.
2. Directly deals with the customers
(stakeholders) and gain

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STAKEHOLDERS OF UNILEVER
information about their future
needs.
3. Provides information about future
stakeholder moves.
Managers (Unilever and its subsidiaries) Internal 1. Executes policies formed by the
apex management.
2. Heads operational departments.
3. Guide employees.
4. Represents the company whenever
required.
5. Functions as points of
communication between the apex
management and the lower level
employees.
6. Recognise the training needs of
lower level employees, thus
facilitate high level performance in
Unilever.
7. Appraise lower level employees
Governments (the Government of the
United Kingdom, Netherlands and the
host countries)
External 1. Forms laws
2. Provides facilities like land to set
up business units and tax rebates
3. Provides ways for international

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STAKEHOLDERS OF UNILEVER
expansions.
4. Provides guidance regarding
business operations like minimum
wages and work place safety.
5. Forms social development
initiatives which in turn guides and
engages the CSR of Unilever and
its subsidiaries.
Financial institutions, stock exchanges
(of the UK and host countries)
External 1. Form policies for financial
transactions of Unilever and its
subsidiaries.
2. Facilities flow of financial capital
between the company and its
business partners like suppliers.
3. Provides facilities to Unilever and
its subsidiaries to raise capital
from the securities market by
floating securities.
4. Provides gateway to Unilever and
its subsidiaries to facilitate sell
products online.
Suppliers External 1. Provides the company with raw
materials and WIP.

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STAKEHOLDERS OF UNILEVER
Logistics chains External 1. Enables Unilever to sell its
products globally.
2. Thus helps in generation of
revenue.
3. Provides Unilever and its
subsidiaries with information
regarding customer requirements
and future trends.
Ecommerce companies External 1. Provides gateways to advertise
goods and sell them.
Social networking websites External 1. Provide platform to Unilever
to market products.
2. Allows the company gain
customer feedback in the
comment sections.
3. Facilitates predicting and
forecasting future customer
trends.
4. Facilitates generation of
revenue.
5. Strengthens the brand power of
Unilever and its products.
Investors External 1. Invest in the securities of

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STAKEHOLDERS OF UNILEVER
Unilever and provides it
with capital.
2. Can impact the operations
by investing and divesting,
thus influencing its
financial base directly.
Marketing companies/PR agencies External 1. Allow Unilever to promote
products.
2. Strengthens goodwill and
brand value.
3. Allows company to
communicate its strategies
to other stakeholders like
government and customers.
4. Enables company to create
desired product image
through advertisements.
Customers External 1. Purchases products and
generates revenue.
2. The revenue enables
company to give high
ROI to investors, thus

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STAKEHOLDERS OF UNILEVER
facilitates raising of
capital.
3. Attributes the company
with its high global
market position.
Competitors (internal and local) External 1. Effects strategies of
Unilever with their
own strategies.
Literature review:
Stakeholder theory:
According to Mansell(2015), stakeholders refer to groups and individuals which effect
the operations of business organisations. The stakeholders’ theory mention that the business
organisations should ethically and morally operate towards ensuring benefitting the stakeholders.
Bridoux and Stoelhorst (2014) further contributes to this opinion of Mansell (2015). They
mention that business organisations are responsible to the stakeholders because stakeholders are
capable of boosting or devastating their business operations with their decisions. For example, as
per Chavez et al. (2016) customers are capable of impacting the revenue generation of the
multinational companies like Unilever. The company uses a part of the revenue to pay dividends
to investors for their investments. Unilever enjoys high share index in the stock market and thus
canraise huge capital to support its global operations (londonstockexchange.com
2018).Davcikand Sharma (2016) mentions that high revenue generation by companies act as a
security to investors. Thus, it can be inferred from this statement that the customers do not only

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STAKEHOLDERS OF UNILEVER
influence the revenue generation of Unilever but also its capital generation. Fornell, Morgeson
and Hult(2016) point out that the investors on the other hand are capable of influencing the
revenue generation of Unilever or any other company. The investments from investors form the
capital base of the companies which catalyse their business operations like production of goods
and marketing. Thus, in this respect it can be mentioned the business organisations require to
satisfy both the customers and investors.
Stakeholder management theory:
Hörisch, Freeman and Schaltegger (2014) mentions that business organisations like
Unilever is required to manage the stakeholders efficiently and ensure their benefits.Mok, Shen,
and Yang(2015) in this respect point out a very important paradigm of the stakeholder
management theory, the conflicting interests of the stakeholders. For example, the investors
expect the companies to allocate maximum amount of revenue towards production of goods
while the investors on the other hand expect the multinational companies to give them a big
share of revenue as bonus and dividends on shares. Once, the government expects the companies
to pay immense amount of taxes while the multinational banks encourage the firm to reinvest
their capital which boosts their own revenue generation (Krüger, Rösch and Scheule 2018).
Apparently the interests of the stakeholders are contradictory. However, in reality loss of support
of stakeholder can result in loss of support of the other stakeholders as well. Hillebrand, Driessen
and Koll (2015), mention that this pressure of stakeholders on organisation necessitate the latter
to manage the stakeholders efficiently. For example, as Sharma (2016) points out customers
impact Unilever by purchasing its products and generating revenue for the company. The
company uses a part of the revenue to pay dividends to its investors. Thus, support of customers
go on to earn support of investors for the company. Thus, efficient management of stakeholders

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STAKEHOLDERS OF UNILEVER
is very important for multinational corporations like Unilever to enjoy perpetual market
leadership and growth.
Identification of stakeholders:
Hillebrand, Driessen and Koll (2015) mention that management of stakeholders is
necessary for the very sustenance of organisations. This necessitate them to identify the
stakeholders into specific categories to be able to manage them efficiently. Handfield et al.
(2015) mention that stakeholders of business organisations like Unilever can primarily be
divided into internal and external stakeholders. The apex management, the middle level
managers like the project managers and the lower level employees are internal stakeholders. The
apex management form strategies and policies. The managers lead their respective departments
according to these strategies. The lower level employees follow the instructions of the apex
management and the managers. Eskerod, Huemann and Ringhofer (2015), mentions that these
internal stakeholders play significant role in operating the company. Thus, the companies like
Unilever manage employees and managers by offering them training to improve their efficiency.
Similarly, the external stakeholders like government and customers play significant roles in
impacting the operations of the company. The government and financial institutions are the key
stakeholders which make policies which apply to the company. Dodgson (2018) mentions in this
respect that customers are important stakeholders who are capable of impacting the strategies of
the company. Thus, it can be inferred from the discussion that MNCs should identify and
manage stakeholders efficiently.
Their importance in business projects of the Unilever:
Binder (2016) mention that stakeholders play a very important role in commencement
and success of the projects. He further points out that global companies execute multiple projects

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STAKEHOLDERS OF UNILEVER
simultaneously like manufacturing and new product development. Thus, the project managers in
these projects, the employees and the apex management play significant role. Again, the
government and customers also play important roles. For example, the MNCs like Unilever
operate in hundreds of countries. Thus, for companies like these the host governments play
significant role.
Strategies to predict individual stakeholders’ behaviour:
The multinational companies like Unilever as per Muller (2017) require to predict the
behaviour to be able to manage them efficiently and meet their demands. Agnihotri et al. (2016)
in this respect that business organisations would require to communicate with the stakeholders
on daily basis to gain knowledge and satisfy them. An effective communication strategy with
stakeholders would enable Unilever to predict their behaviour and form appropriate strategies.
Development of an effective stakeholder communication plan or strategy:
The management of Unilever is always dedicated towards the purpose of making the
living place a sustainable commonplace and engages in the work partnership with a wide range
of different kinds of stakeholders. A partnership or bond is created between the management of
the company and with that of the shareholders (Fraile Jiménez and Delgado 2017). The
shareholders may include the likes of a wide range of NGO’s, investors, customers, consumers
and suppliers. The involvement with that of the shareholders helps the organization to manage
the different complex functioning of the business. Stakeholder engagement is one of the most
important part of the Unilever sustainable Living plan or (USLP). The following plan also
underpins the external advocacy and joint working with different Governments of different

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nations where the company has a presence (Jurietti Mandelli and Fudurić 2017). The
management of the company depends upon the transformational change that seeks to change the
ideology of the business. The mentioned company in the following assignment follows a set of
policies for transparency and an effective engagement. They are as follows;
The reputation for carrying on business with proper form of integrity and respect for the
others and the involvement of the different kinds of the brands and people. The code of business
Principles and Code Policies underpin how the management of the company interacts with the
organization’s stakeholders and other forms of business partners. The code policy on the
engagement of the external includes the likes of the two most important sections that cover
contact with the government of the country where the business has its presence and the
regulators or the NGO’s (Pronk et al. 2017). It also involves the likes of the political
interventions and political donations. The following states that only the authorized and expert
employees who are trained in a proper manner can engage with the different groups like the ones
mentioned earlier. The interactions must be conducted by them in different ways like;
 In a transparent manner with honesty, integrity and openness In accordance with the values of Unilever In accordance with local as well as International Laws
On the other hand the employees of the company must;
 Take all kinds of proper and efficient steps to ensure the truth and accuracy of the
different kinds of information Maintaining a report of all kinds of contacts and interactions that happens with the
stakeholders within and outside the workplace

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STAKEHOLDERS OF UNILEVER
 Must be honest and integrated while disclosing the names, the name of the company
and other kind of basic and Important information
As mentioned earlier, the company engages with a huge range of stakeholders daily to fulfill
the different kinds of needs of the company and keep the stakeholders updated about each and
every kind of situation and happenings. This helps the organization to attain a proper form of
value chain and also attain a proper and efficient sustainable goal for the company. Some of the
engagement strategies with different range of stakeholders are mentioned below;
Engagement with the Government
The engagement with the governments of the country where the company has its business
forms the most important part of the business (Jurietti Mandelli and Fudurić 2017). The policies
and procedures are discussed with the Government and ultimately a proper policy is curved out
by such discussions. Apart from this the direct engagement with the stakeholders with prior
permission from the Government is also another way of a sustainable engagement with the
Government (MacQueen et al. 2015). However the management of the company abstains itself
from supporting any particular political party and also does not sponsor or invest in any kinds of
political campaigns. The company also publishes its annual reports and accounts which help
them to be free from any sort of controversy from the legal and government side.
Engagement with the NGO’s
The engagement with different forms of NGO’s is utmost necessary for the management
of the company to engage in a variety of CSR initiatives (Melton Damron and Vernon 2017).
The engagement with the NGO’s also helps the organization to move towards a more sustainable

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STAKEHOLDERS OF UNILEVER
future and the formulation of an equally efficient sustainable plan that will be necessary for the
survival of the industry in times of turbulence.
Engagement with the Suppliers
A large number of suppliers are involved in the day to day working of the mentioned
business and thus the organization generally succeeds in achieving success in the market where
they operates. The supplier also helps the organization to innovate and design totally new kind of
products that are useful for the coming future (Fraile Jiménez and Delgado 2017). The suppliers
are brought under an umbrella that helps them to engage with the company in an efficient and
effective way.
Engagement with the customers
The engagement of the company with the customers is another important step towards the
development and the sustainability of the organization. The main motive behind the engagement
of the organization with the stakeholders of the organization is to make the most of the marketing
and promotional techniques to attract more and more customers to the organization.
Use of social networking platforms in project implementation:
Unilever’s digital social media platform enhances collaboration by means of;
 Providing the marketers of the firm the access to the latest Unilever knowledge, people
and tools and also allowing them to participate in different kinds of discussions and
share the best practices examples across the business organization To provide a set forum for the support and collaboration between the central and local
teams and between the Unilever marketers and other kind of agencies

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STAKEHOLDERS OF UNILEVER
Unilever is one of the biggest spenders on marketing and social media in the world. It
invests a huge sum of money of close to $8 billion each year to communicate its brands to the
consumers and the customers across the globe (Banks et al. 2016). Some experts have the belief
that the organization entirely controls the media and the advertising industry alone. The social
media is used by the mentioned company by means of latest marketing techniques like graphics
and 3D marketing and many more as such. Some of the features of such kind of marketing by the
organization are as follows;
a. People Centric Approach- The main aim of the management of the company to use
social media is directed towards the people or the customers of the organization. The
strategies of the organization are totally directed towards the people. The experts
controlling the different social media channels of the organization generally interact with
the customers and try to address the different problems with the products.
b. Mix up of the Global and Local Media- The mixing up of the local and the international
strategies is one of the most important elements of the business. Unilever has partnerships
with both international as well as local companies that help to develop a good
communication strategy and frameworks for the organization.
c. Media Neutral Planning- Unilever has been recently changing the media strategy to
reflect the “Omni-Channel world”. The planning of the organization is completed on a
“media-natural basis” that starts with the creative insight and target audience, and
building up a strategy from that point.
d. Demanding more from the Agencies- Unilever possesses one of the biggest contributing
amounts to different social media policies. One of the examples is the “mediapalooza”

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STAKEHOLDERS OF UNILEVER
where the management of the company invested a huge amount of $20 billion in different
forms of media agency business.
e. Innovation through Partnerships- The Company has recently entered into a new
partnership with VICE media and has also launched a new female focused video channel
has created waves in the industry. The content channel that promises to give the
mentioned organization the chance to push different products especially beauty and
personal care products to a lots of different individuals.
f. Keeping ahead of the curve- Unilever is among the selected group of companies that
implemented the different latest technological advancements of the organization. The
foundation program of Unilever helped them to gather the much needed pace to make the
most of the organization (Banks et al. 2016). The company prides itself of being ahead in
the curve. The main motive of the organization is to provide the world with new ideas
and innovations that helps them to stay ahead of all the rest of the companies and its
competitors in the market.
Unilever uses social networking sites like YouTube, Twitter and Instagram to promote its
products. The multinational consumer manufacturer uses social networking and digital marketing
platforms to not only advertise its products but also sell them. The visitors on the official website
of the company can gain complete information about the products and can order them online.
Unilever aims to provide appropriate and accurate product information on its social networking
platform. The MNC does not use distorted and unrealistic statements and models to promote its
products. It does not use schools as a part of its social media promotions and promotes healthy
habits among children like washing hands before meals on its social media promotions

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STAKEHOLDERS OF UNILEVER
(unilever.com 2018). This strong yet ethical social media strategy enables Unilever to access to
billions of consumers across the world on computers, smart phones and tablets.
Critical analysis, evaluation and examination:
According to, Banks et al,.(2016) Unilever implements a systematic and well calculated
strategy to fulfill its different kinds of stakeholder commitments and CSR initiatives. The
following strategy also supports the company’s citizenship ideals, especially with regard to the
satisfaction of the expectations and the expectations of the different customers. Business
sustainability is also maintained through the different kinds of strategy (Andriof et al. 2017). On
the other hand Fraile Jiménez and Delgado (2017) has stated that, CSR prioritization helps top
put the customers of the business on top rather than any other commitments. Such corporate
responsibility strategy addresses the interests of the following kinds of stakeholder groups. The
importance of the Unilever’s consumer goods business is as follows;
1. Consumers- The CSR strategy of Unilever provides the most priority to the consumers.
These stakeholder interests are focused on product quality and price as well as the
environmental impact of the consumer goods business. The satisfied consumers of the
industry increase the consumer’s revenues from repeat sales. The company’s strategy is
designed in such a way that it satisfies the needs of both the organization and the customers.
2. Employers- The Company considers the employees as the second priority in its CSR
strategies and always provides first priority to customers. This is because the company
mainly deals with the different kinds of consumer goods. The management of the company
addresses the different kinds HR policies to make the most of the business.
3. Suppliers- The organization includes the suppliers in its corporate responsible strategy. As
stakeholders, suppliers have interests in profitable business with the company. The

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STAKEHOLDERS OF UNILEVER
stakeholder group is significant in affecting the business capacity of the mentioned
company. The program satisfies supplier’s interests through different kinds extensive
collaboration that supports Unilever’s and suppliers growth.
4. Communities- Apart from the stakeholders, the different communities are also involved in
the strategic set up of Unilever. The group of stakeholders or the community of stakeholders
has a significant influence on the community development process of the organization. The
management of the company ensures to create different kinds of community fund that are
needed for the creation of a better bonding of the organization and the stakeholders. The
meetings and conferences between the stakeholders and the management of the organization
helps to curve out new kinds of feedbacks that is helpful for the betterment of the
organization and also improves the organizational and strategic performance of the
mentioned consumer goods company.
5. Investors- The investors are the last but never the least in the list of preferences. Though
being the third among the preference list they are considered to be one of the most
influential elements in the business as because the investors are the one who supply goods
and capital to the business and ensures the smooth running of the organization. However
according to, Andriof et al,.(2017) Unilever’s intensive growth strategy, process innovation,
key market characteristics and other similar elements.
A thorough analysis of the total report suggests the importance of Stakeholder Management
and also highlights the necessary elements that are needed for the proper implementation of the
Stakeholder engagement strategy in the business. Unilever has been one of the successful
companies in the market and the proper implementation and use of the right kind of strategies is
useful for the success of the business in the market.

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STAKEHOLDERS OF UNILEVER
Conclusion:
Stakeholder Management is at the centre of a firm’s CSR strategy. Stakeholders have to
be strategically engaged and managed for the success factors of any kind of project and CSR for
that matter. All kinds of stakeholder engage with the organization to receive one benefit or the
other and derive the benefits which are worth their time and effort. The following study has
shown that to be a guide to maintain a professional stakeholder management for CSR, which can
be used by the other kind of companies especially by those in the sub-region due to similar
socio-economic climate. The stakeholder management thus stands out to be one of the most
important elements in the success of Unilever. An effective and efficient stakeholder
management is key to the success of the business.

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STAKEHOLDERS OF UNILEVER
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