Unilever's Ethical Labor Practices: A Comprehensive Case Study

This case study analyzes Unilever's ethical labor practices, highlighting its commitment to corporate social responsibility (CSR). The company prioritizes employee rights and integrates ethical practices into its sustainable living plan, focusing on the protection of supply chain employees and ensuring fair treatment and compensation. Unilever's policies, including those prohibiting child and forced labor, are implemented through a comprehensive framework involving policy development, integration into business operations, and due diligence processes. The organization employs various mechanisms for identifying and reporting issues, such as worker grievance procedures and whistle-blowing systems. Enforcement is achieved through the UNGP principles, responsible sourcing policies, and a legal framework for fair compensation. The case study emphasizes the positive impact of ethical labor practices on brand recognition and employee loyalty, reinforcing the importance of CSR and sustainable programs in fostering a better work environment.

Case study on ethical
labor practices in
Unilever Presenter’s Name

Company description
It’s a multinational company founded in 1929 by Leverhulme,
William Lever, James Darcy among others.
The product range offered includes:
-food and beverages.
-Cleaning agents.
-Personal care products.
Its headquarters is located in United Kingdom and Rotterdam,
London and Netherlands.
Has 169,000 employees working in the different branches
(Unilever, 2018)

Description of integrity-related practice
It prioritises fairness and respects every employee rights.
In unilever Corporate Social Responsibility (CSR), employees are
second priority in its strategic plan and these employees have to
abide by unilever code of conduct to be protected (Unilever, 2018).
Its ethical practices are part of the sustainable living plan of
unilever.
The plan focus is to fulfil the objectives of the Sustainable
Development Goals.
The Ethical Labour Practices of Unilever focuses on protecting its
supply chain employees and ensuring they are not discriminated.

Cont.….
Therefore, since Unilever participates in ensuring labourers are
compensated, treated fairly and protected, it does all these
under:
Compensation act
Human Right act
Health and Safety Act.
It believes in continuous development while practising CSR and
USLP.
These enables it to strive well and increase its brand
recognition as it gains the trust of its workers.

Cont.……
Since it believes in continuous development, it is planning to
build a human rights framework which will:
 advance human rights in unilever supply chain until 2020
Advance the supply chain operations of Unilever.

Policy development
Unilever has developed policies to achieve the following
principles:
1) Commitment
2) Remediation through grievance mechanism.
3) Integrating the policies in business and implementing it in
suppliers.
4) Processes and tools for due diligence (Unilever, 2013)
It uses code of commitment to resolve labour issues like wages,
collective bargaining and freedom of association.

Policies used in Unilever
1. Prohibition of child labour
2. Prohibition of forced labour
3. Policy of harassment
4. Harsh treatment policy (Unilever, 2013)
Unilever coordinates with these legal framework to ensure
human rights are protected and human beings are respected in
the workplace.

Cont.…
 In developing policy of labours, unilever uses OECD
guidelines, ISO 26000 and Global Reporting Initiative
Guidelines (Unilever, 2013).
The set Unilever labour polices are adhered by all its
branches.
It keeps strict check and balance over the policies
compliance.

Process for embedding the practice within the
organization
The process for embedding the process in the organization includes:
a) Setting out policies
b) Providing the policies to the United Kingdom and Netherlands executives.
c) Making regional plans by Unilever
d) Emphasizing the policies and dividing them according to countries needs.
e) Each country’s executive will call for convention and conferences
nationwide.
f) In the convection, department heads are explained the policies.
g) Department heads conduct supervisions and meetings to ensure the
polices are adhered to.

Identification and reporting of issues
Unilever does the following to ensure Employee Regulations’
Safety is adhered:
putting video cameras everywhere in the workplace.
Identifying labour issues through workers grievance procedures.
Using the information from the company’s help desk.
Has instituted whistle-blowing system and safety alarms in the
walls where workers can immediately report issues.
These mechanisms are controlled by Human Resource Department
and issues arising are tracked and dealt upon within in 2 days.

Enforcement
It ensures the laws and practices are enforced through:
 Implementation of UNGP principles on Business and Human
rights.
Sourcing of 100% Procurement Spend on Responsible
Sourcing Policy.
Creating a Legal Formal Framework for Fair Compensation
and Reduction of Workplace Injuries and Accidents.
The above actions are taken by creating different teams who
deal with related labourers matters.

Lesson learnt
Complying fully on ethical labour laws and policies increases
company's’ loyalty and brand recognition.
Corporate Social Responsibility is essential in an organization
as it creates a better environment for working.
Sustainably programs are crucial as they control the activities
and corporations evil intentions towards their workforce.

References
Unilever. (2018). About Unilever. Retrieved, November 21,
2018, from https://www.unilever.com/about/who-we-are/about-
Unilever/
Unilever. (2013). Labour rights in Unillever supply chain: From
compliance towards GoodPractice. An Oxfam study of labour
issues in Unilever’s Viet Nam operations and supply chain.
Retrieved from htpps://www.unilever.com/Images/rr-unilever-
supply-chain-labour rights-Vietnam-310113-en_tem244-
409769_en.pdf