Report: Analyzing CSR - Unilever's Failure and Success in Business

This report provides a comprehensive analysis of Corporate Social Responsibility (CSR), focusing on the case of Unilever and its perceived failure in implementing CSR initiatives. The report begins by defining CSR and exploring its core elements, emphasizing the connection between CSR and Total Quality Management (TQM), and the significance of corporate culture in mergers. The analysis then delves into the specific reasons behind Unilever's unsuccessful CSR approach, highlighting issues such as destabilized leadership, controversies related to labor practices, and the rejection of a major acquisition that could have been used to further personal political objectives. The report then contrasts Unilever's failures with the successful CSR practices of other companies, such as Nestlé, and discusses the importance of shared value and social responsibility. Finally, the report recommends that companies like Johnson & Johnson, Estee Lauder, and Newell Brands become more explicit and positive in relation to desired social impacts, and provide measurable outcomes to increase credibility and effectiveness. The report concludes by emphasizing the need for CSR to encompass various forms depending on the company and industry, aligning organizational philosophy with CSR standards, and promoting transparency.

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Executive Summary
The main aim of this report is to offer inclusive insights regarding the key idea of CSR and
fundamental elements of CSR, which would take along achievement to many organizations. In
addition to this, the paper has highlighted explanations, which led to the failure of CSR in
Unilever. The method used to obtain information for this report was performed through
secondary analysis. The findings show that Corporate Social Responsibility (CSR) is a self-
controlling business model which facilitates an organization to be socially responsible to its
stakeholders and the public. There is a connection between CSR and Total Quality Management
(TQM) in the sphere of contemporary business management. Moreover, there is a fundamental
factor to suppose corporate culture to in manipulating unification of businesses. Owing to the
cumulative exertion and involvedness of change management as mergers typically include
numerous integration issues and uniting business enterprises is probable to be further challenging
when integrating with different organizational values as well as cultures. The conclusion states
that corporate social responsibility as a far-reaching concept must encompass of numerous forms
relying on the company as well as industry. Organizational philosophy is thoroughly related to
basis of CSR standards, morals which redirect organization’s beliefs, managerial strategies as
well as transparency within the business other than with external shareholders. The
recommendation is that companies like Johnson & Johnson, Estee Lauder and Newell Brands
must be socially responsible must become more explicit and positive in relation to desired social
impacts.

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Table of Contents
Introduction......................................................................................................................................3
Background..................................................................................................................................3
Findings/Analysis............................................................................................................................4
Explanation of CSR Activities.....................................................................................................4
Analysis of Unilever's Unsuccessful CSR approach...................................................................5
Significance of successful CSR in Other Organizations.............................................................7
Social Responsibility and Shared Value..................................................................................7
Recommendation for other organizations to implement CSR activities.........................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
Background
Corporate Social Responsibility (CSR) is expanding in practice, as modern businesses are
seeking to develop through social as well as environmental sustainability initiatives (Tien &
Hung Anh, 2018). CSR as theoretical concepts has been promoting values, approaches and
initiatives further contributing to improved performance in every aspects of business operations
and expecting increased levels of enthusiasm, cultural integrity and transparency from
employees. CSR has been found to enhance the quality of organization and its successes
(Lawrence, Rasche & Kenny, 2019). Thus, there has been found a link between CSR and Total
Quality Management (TQM) in the domain of modern business management. Furthermore, there
is an underlying factor to expect corporate culture to in influencing merger of businesses. Due to
the increasing difficulty and complexity of change management and since mergers usually
include various integration issues; combining business enterprises is likely to be more
challenging when merging with different organizational values and cultures. Furthermore, in the
view of Jurietti, Mandelli and Fudurić (2017), important content of organizational culture
integrates CSR concepts, which could be explained as improved target standards of business
organizations and taking accountability for the functioning of the society. Organizational culture
is closely associated with foundation of CSR values, which reflect organization’s philosophy,
managerial tactics, and transparency within the organization as well as with external stakeholders
(Bettridge & Whiteley, 2016).
Aims- The following report will firstly aim to explain the key concept of CSR and underlying
factors of CSR, which would bring success to many organizations. Secondly, the paper will

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highlight reasons, which led to the failure of CSR in Unilever. The third aim will highlight the
reasons which would led to the success of CSR in other companies. Lastly, the fourth aim will
recommend whether there is a need of CSR in other companies.
Findings/Analysis
Explanation of CSR Activities
Corporate social responsibility is a broad concept, which comprises of several forms
relying on the company and industry. Through CSR initiatives, philanthropy and volunteer
efforts, businesses change to capitalise on society vile augmenting their individual brands. As
important, as CSR is for the community it is equally prominent for business development (Maas
& Boons, 2017). CSR activities can help develop a robust association between employee as well
as corporation and can amplify morale and facilitate employees as well as employers to develop
a sense of connection with the society surrounding them. In the view of the United Nations and
the European commission, CSR progresses towards triple bottom line related to revenues, profit
margins, safeguard of the environment and fight for social justice. It has been noted that for
corporate sectors to successfully distinguish, promote and implement effective policies as well as
practices must achieve the triple bottom line results. Meanwhile accepted definition of CSR is
not related to a common term. Multinational corporations preferred sustainable growth while
several Australian business Enterprises speak about responsible business for achieving the ‘triple
P’ namely, People Planet and Profit. According to Sheehy (2015), sustainable development
relates to the optimisation of financial position while not depleting social and environmental
aspects. CSR efforts primary rely on supporting areas of challenges, which relate to the
development and improvement of children women environment and other relegated aspects of

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the society. As per the opinion of Maak, Pless and Voegtlin (2016), effective CSR necessitates
extensive as well as diligent investment on the part of the organisation. Organisations in the
modern business environment not only required to undertake activities in respectable manner
would also focus on distinguishing ways in which stakeholders perceive activities. On the other
hand, it would that in order to inculcate CSR activities within the business operation of an
organisation it is highly imperative to incorporate such and orientation towards monetary
limitations with an orientation towards individual as well as mutual moral principles and to
integrate these standards in corporate decision making. Moreover, in order to break the glass
ceiling, corporate leaders in the modern business environment must reflect on types of ethical
procedures they want to sustain in good and bad times and further utilise this since
recommitment as a basis for expanding business models, which can be financially sustainable.
Furthermore, CSR activities have a vital role in what services customers choose to procure.
As per the view of Maas and Boons (2017), customers show great inclination towards
CSR activities of organisations. Moreover, it has been suggested that ethical and philanthropic
CSR practices tend to form as well as foster client perception is that organisation which day
prefer efficiently others to high ethical standards and tells about the welfare of the society. In
consequence to such ethical obligations, there can be witnessed a strong consumer evaluation of
corporate reputation. Kolk (2016) is of the opinion that, if clients develop high awareness of
ethical implications regarding organisations behavioural patterns they tend to ensure that
organisations will efficiently sustain precise quality standards and sold or improve its corporate
reputation and prominence in the industry in which it operates.

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Analysis of Unilever's Unsuccessful CSR approach
The report of Forbes has highlighted the key information regarding the unsuccessful CSR
approach of Unilever along with the various other aspects related to it. It has been studied that
with the robust positioning of Unilever in the business market since 2009, the company
encountered certain challenges while conducting CSR initiatives. As per reports, these issues
have resulted in causing disruption to public relation strategies of Unilever as well as cause
damage to its sales and revenue growth. As per the view of Borelli (2017), these critical
challenges have materialized because of the destabilised leadership approach of CEO of
Unilever, Polman. According to Lawrence, Rasche and Kenny (2019), Polman during his
leadership management has greatly accentuated the superficial contended regulations and
practices instead of shedding light on profound business decisions. Such a disastrous approach of
Polman give rise to various controversies and criticisms regarding cases of sexual harassment,
unequal employment opportunities as well as environmental issues. Furthermore, Forbes report
has been that Unilever in 2006 has been charged of using highly toxic substances for its business
operations. In India the company was supposed to resolve an employee safety and precautions
issue with 600 workers who had been exposed to mercury from the thermometer plant. This
particular case of unsafe labour practices of Unilever has attained international attention from
one of the songs titled as "Kodaikanal Won't" by an Indian musician (Borelli, 2017). This
particular song intended to address the issue of Mercury contamination in the manufacturing
plant of Unilever. In addition to this, reports of claims that during 2011, Unilever faced
allegations of sexual harassment by the Irish Times newspaper from the workers of Africa which
claimed the unlawful labour practices performed within the organisation.

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These unlawful labour practices have been linked to exchange of illegal financial
transactions among the supervisors in order to conceal the act of sexual harassment and further
stop them from the unwanted sexual advances towards female employees. However, while there
has been a certain CSR initiatives taken up by CEO Polman, those initiatives towards the society
and environment have been condemned and unapproved by the non-profit organisations. For the
more one of the recent events highlighted in the business operations of Unilever revealed that in
2014 the existing systems of balances and checks have failed to limit it or prevent workers from
facing harassment in the Kenyan estate of Unilever. Studies on Unilever CSR activities have
mentioned that Polman strategically emphasized on UN sustainable development goals which
would financially benefit the company (Jurietti, Mandelli and Fudurić, 2017). In consequence,
neither CSR approach nor growth of business operations has been possible, thus resulting
Unilever to face severe disruptions. Most importantly, one of the major factors behind the failure
of Unilever's CSR approach lied on its rejection of $ 143 billion acquisition of Kraft Heinz. As
per reports, the acquisition has been rejected since it could have circumvented Unilever's CEO in
using the company for developing the personal or individual political objectives (Bettridge, &
Whiteley, 2016).
Significance of successful CSR in Other Organizations
Social Responsibility and Shared Value
There can be identified various reasons as to which companies in modern business setting
must use and incorporate CSR efforts for the overall success, expansion and growth of the
organization (Wang, 2016). Interpreting from the perspective of the business associated benefits
of CSR; it has been quite evident that modern business firms who conduct CSR activities usually
stand for the avenue to have various advantages within the sector. Unilever’s major competitor

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Nestlé through its CSR initiatives has been aiding small farmers to improve their economic level
across the world. By means of its business operations, Nestle raises the standards for food safety
and occupational services (Murphy & Murphy, 2018). Nestlé adheres to an inclusive set of
business principles that redirects company’s assurance to continuing effective business
expansion in addition to the inevitability to improve immediate results. These principles have
constructed the foundation for Creating Shared Value. Furthermore, customer welfare and
benefit is positioned at the forefront of organizations’ CSR Principles. Business firms in order to
achieve success in CSR practices must consider people as ultimate strength of the company as
their knowledge advances to business innovation, supreme quality products and enhanced living
conditions in communities across the world (Moody-Stuart, 2017).
Recommendation for other organizations to implement CSR activities
Other organizations like Johnson & Johnson, Estee Lauder and Newell Brands must build
on its legacy of collective shared value creation, shifting beyond individual efforts in order to
involve its entire global value chain of activities. These companies with an aim to be socially
responsible must become more explicit and positive in relation to desired social impacts.
Committing to provide measurable outcomes in public forum on key social issues would lead to
substantial credibility to the organization and further enable it to focus on internal resources on
effectual CSR practices. Meanwhile, it will also be beneficial for Unilever to reduce its
operational expense with CSR practices to attain improved reputation, thus reflecting positive
representation of the company within the industry in which it operates and also in societies
which it serves to achieve higher customer loyalty and sustainability. Additionally, Johnson &
Johnson, Estee Lauder and Newell Brands or other organizations must adhere to its principles of

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Fair Compensation and form a structured way to define and assess the way these elements of
company’s wage packages offer compensation to its employees in transparent, equivalent,
consistent and explainable manner. Furthermore, Johnson & Johnson, Estee Lauder and Newell
Brands or other organizations must proficiently establish goals and evaluate developments on
international basis in the domains of manufacturing impacts and customer benefit to strengthen
the association between Johnson & Johnson, Estee Lauder and Newell Brands or other
organizations’ CSR strategy and its social accountability. While, these organization have already
established socially responsible strategies and initiatives in various regions across the world as
well as at different points with its shared value chain, many of these practices have failed to
achieve success due to devastating leadership activities which have been captured in this report.
However, at this juncture, Johnson & Johnson, Estee Lauder and Newell Brands or other
organizations must proficiently shed light on greater number of success narrations through CSR
activities and sincerely represent a mode of operation which has been rooted in its corporate
strategy.
Conclusion
Therefore from the above discussion it has been concluded that CSR is major
contribution towards sustainable development, indicating the manner whereby businesses
establish a balance amongst social, environmental and the economic agendas while concurrently
addressing the expectations of shareholders and further increasing the overall stakeholder value.
It has been conclusive in the report that Unilever with its devastating leadership and unjustified
labour practice have resulted in a failed CSR practice. It has been expected that civil society
emerging activist groups along with government and corporate sectors should function together

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in order to create suitable means and opportunities for the discriminated and the marginalised
sections of the society and include them to the mainstream. Moreover, the success of CSR lies in
functioning as a fundamental part of the organisations' development strategy.

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