Unilever's CSR Strategy and Ethics Analysis in International Business

This assignment analyzes Unilever's Corporate Social Responsibility (CSR) strategy and ethical considerations in the context of international business. The assignment addresses two key questions. Firstly, it examines the factors managers need to consider when making CSR decisions, including industry-based, resource-based, and institution-based considerations, using the "Tripod" approach. Secondly, it identifies Unilever's CSR orientation, classifying it as an Integrator, driven by humanistic values and focused on long-term stakeholder value. The analysis highlights Unilever's commitment to consumers, its efforts to reduce its environmental footprint, and its contributions to community programs through the Unilever Foundation, demonstrating a comprehensive approach to corporate citizenship and business sustainability. The assignment emphasizes how Unilever's CSR initiatives positively impact its brand image, consumer perception, and overall sales performance.

BUSS 5034 – International Business Strategy & Ethics
Continuous Assessment – in-class questions
Max 75 words per answer – dot points with complete sentences accepted
Name: Surranjjith Student ID: 110263543 Date:20-May-2020
T-10 Strategy:
What questions do managers need to consider when making decisions about engaging in
CSR? (Hint: Use the “Tripod” to answer this)
The questions managers need to consider when making decisions when engaging in CSR can
be summarised under three areas. They are industry based, resource based and institution-
based considerations.
Under industry-based considerations managers may consider if the whole industry is against
higher CSR standards. Small or high number of competitors. If the organisation is a first
mover, can the CSR activities act as entry barriers? Are the suppliers and buyers CSR
conscious or do they have bargaining power that might undermine any CSR initiatives? Are
the substitute products in the market more attractive to consumers due to environmental
friendliness? How to turn threats to business opportunities?
Under resource-based considerations managers need to ask if engaging in CSR activities add
value to the organisation’s primary shareholders or does it reduce the shareholder value. Does
the organisation have valuable and rare resources that its competitors lack? Can the CSR
activities be easily imitated by its competitors? if yes, then the managers might find t difficult
to create any sustainable competitive advantage. Are there assets that can tie all resources that
are valuable, rare and hard to imitate together such as differentiation.
Under institution-based considerations identify what kind of strategy needs to be employed.
For a reactive strategy is often used when there is a lack of support by top management for
CSR causes. Defensive strategy is used when CSR issues are regards as an added cost or
nuisance by top management. Accommodative strategy is used when there is legitimate social
obligation to accept responsibility and do all that is required. Proactive strategy is used when
there is proactive participation in regional, national CSR policy discussions and also where
voluntary activities are conducted beyond what is legally required.
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T-10 Ethics:
There are four CSR orientations: Idealist, Traditional Economist, Opportunity Seeker,
and Integrator. Select an orientation where Unilever might fit. Justify your selection.
Unilever fits in as an Integrator. An Integrator is driven by humanistic values and the purpose
that drives their business is to create long-term value for stakeholders in business and society.
Integrators are often visionaries who are ahead of the game. Paul Polman, CEO of Unilever
demonstrates, “I drive this business model by focusing on the consumer and customer in a
responsible way, and I know that shareholder value can come.”.
They also aim to deliver on multiple bottom-lines, responding to aims of all stakeholders
involved. Unilever gives highest priority to its consumers. Example, satisfied consumers
increase the company’s revenues from repeat sales. Unilever’s CSR strategy satisfies these
interests through innovative processes for a diverse product mix. The company’s CSR
strategy also extends to address the demands of this stakeholder group for business
sustainability. For instance, Unilever continues to enhance its production processes’
environmental footprint. As a result, an effective image of corporate citizenship is created to
influence consumer perception. These corporate social responsibility efforts suggest that
Unilever maintains its position in the consumer goods market partly by satisfying consumers’
various expectations.
In relation to communities, the Unilever Foundation, the main corporate citizenship body of
Unilever, funds community programs for sanitation, nutrition, and personal development.
Communities in turn provide positive feedback that boosts Unilever’s corporate and brand
image, which is one of the firm’s strengths and ultimately these results translate in to
increased sales and attractiveness of consumer goods from the company.
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