Topic > Critical evaluation of Unilever through value creation and sustainability integration

IndexUsing the sustainable value model and levels of value creation to evaluate UnileverCase analysis of Unilever using the sustainable value modelDiscussing environmental value and social of Unilever by applying 1+7 value modelThe idea of ​​incorporating sustainabilityUnilever faces challenges and there is a problemThis essay will analyze a specific case: Unilever based on sustainability theory. Additionally, this section also uses value creation levels to evaluate consumer goods manufacturer Unilever. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay Using Sustainable Value Model and Levels of Value Creation to Evaluate Unilever Case Analysis of Unilever Using Sustainable Value Model According to Unilever's Sustainable Living Plan (2015 ), Unilever has played a vital role in the goals of Sustainable Development (SDG) of the United Nations and in COP21. As the first company to create a stand-alone human rights report using the United Nations Guiding Principles framework, it announced a new goal to become carbon positive in its manufacturing process by 2030. Unilever as a classic example of sustainable consumer goods manufacturer that creates value for both stakeholders and shareholders. There is a five-year partnership with the International Fund for Agricultural Development (IFAD) that will use their specialized knowledge in sustainable agriculture and guide smallholder farmers and rural businesses into markets and train them in sustainable agriculture best practices. Rural populations can get adequate jobs, but above all escape poverty, while producers can reduce costs, because 60% of agricultural raw materials are renewable, and environmental stakeholders applaud that hunger is ended, security is achieved food and increase nutrition. Unilever has reduced the plastic used for bottles by up to 15%, as demonstrated by its Sustainable Living-Domestos brand, customers prefer them because they are lighter to transport and maintain their resistance, while retailers like them because they save around 1,000 tonnes of plastic per year and environmental stakeholders applaud the reduction of plastic resin. Discuss Unilever's environmental and social value by applying the 1+7 value model. Unilever creates sustainability and social value at the same time as it builds its brands and businesses. It will be discussed according to the 1+7 value model. Level 1, there are three areas where mitigating environmental risks can create significant value for both shareholders and stakeholders. First, proactively prepare for catastrophic events to reduce the likelihood of a disaster. Second, reduce cleanup fees by managing cleanup projects ahead of schedule. Third, pursue lower product liability insurance by limiting environmental risk exposure for employees, contractors and customers. sustainable ways bring positive consequences for business, for example, by 2015, Unilever had 60% of agricultural raw materials from sustainable sources, helped mitigate future supply chain risks associated with climate change and long-term supply of raw materials. Reduction of process costs. (level 2) mainly refers to using less material and energy per unit of production and reducing the amount of waste. The cost of cleanup ishigher than that of pollution prevention. Since 2008 Unilever has avoided more than €600 million in water, waste and energy efficiency interventions across its global factory network. Unilever has also helped reduce CO2 emissions from energy in the production process since 2008, achieving a 39% reduction per tonne in production by 2015. In level 3 product differentiation, the company provides products environmentally preferable while consumers prefer environmentally friendly products and services. At Unilever there is green product and brand differentiation, according to an interview with Lesley Thorne, Global Sustainability Manager who about Sustainability at Unilever, a Sustainable Living brand, both has a clear purpose that contributes to a social or environmental concern and also the product itself must achieve one or more objectives. For example, Dove serves a purpose that consumers can reach to over 15 million, while its new compressed aerosol deodorants serve the same purpose, but have become half as small as before. This innovation reduces the carbon footprint per can by approximately 25%. In level 4, the invocation of technology creates a new market and develops new businesses based on sustainability. Wineing with the Unilever brand and innovation through the development and research of new products, such as household and personal products, but also foods and drinks. Furthermore, Unilever Indonesia promotes its products through direct marketing to the public and ensures quality in real conditions. Beyond that, Unilever Indonesia also drives volume growth in the island outside Java. In level 5, companies can protect and enhance the brand based on environmental and social strategies, because the brand has loyal customers, supplier choice and attracts investors. Paul Polman, CEO of Unilever, believes that the company should have more responsibility in the business to create a virtuous cycle that will ultimately benefit the consumer, rather than the customer bearing the costs alone. For example, Unilever is more focused on introducing detergents, its products are washed at lower temperatures, so that they not only comply with low-carbon living and also meet the aspiration of Unilever's Sustainable Living Plan , customers benefit from lower transportation costs, lower packaging costs and the entire value chain benefits. Level 6, companies attempt to influence industry standards with their favor of regulation over competitors. Unilever's Sustainable Living brands and transformative change program are all ways they are embedding a commitment to respecting human rights into the operational process, as well as with suppliers and other business partners. In 2015, they published the first human rights report using the UN Guiding Principles framework. Therefore, they trained 860 employees as human rights ambassadors and 19,000 people on ending sexual harassment and related topics. They built the Rin Career Academy to help women gain educational opportunities to improve their spoken English and life skills, while in Brazil women are improving the entrepreneurial skills needed to start their own business. Level 7: Radical innovation, where process innovation creates value delivered to customers. Through the Unilever Sustainable Living Plan, Unilever will deliver transformative change across its brands, innovation, sourcing and operations. Overall, their fundamental change involves entire systems, not simply improvements.