Issues of Ethical Concern - Case Study Example

INDUSTRY RESPONSIBILITY: ISSUES OF ETHICAL CONCERN; A CASE OF UNILEVER Introduction Business today faces a challenge in the highly oligopolistic market where each brand markets and promotes its products offerings to create a perceived difference of product value to its target audience. However, the ethical, social and environmental issues along with many other factors those have effects upon the consumers wellbeing are getting prominence with the growth of consumer’s awareness. Therefore the business for its long term growth and sustainability are focusing their efforts in developing a culture of Corporate Social responsibilities that have a long term value perception in the minds of the consumers. The essay would focus upon the Unilever’s food manufacturing business that has incorporated the ethical business practices in product and promotion mix to express their social, environmental concern that has earned the business its Brand Equity as is perceived by the consumers today. The business in 2013 had a 49.8 Billion Euro turnover, with a presence in 190 nations employing 174,000 people (Unilever, 2014). Ethical, Social and Environmental concerns in Marketing mix of Unilever The concern of the businesses of the present day has become an issue that has curved a space of great strategic value due to its increasing effects upon the Brand’s strength and sustainability. Sternberg (2009) suggests that the Corporate Social Responsibilities (CSR) of successful businesses are designed to implement the strategic plans to counter the mal-effects of product those may have environmental, social effects that have a high degree of ethical values involved. The increasing consumer’s level of knowledge about the adverse effects that a brand may have upon environment and society as a whole are being negated with the use of well devised strategic CSR approaches. The essay deals in identifying three ethical issues that the brand identified and are working upon them with a social, environmental and ethical outlook. The issues that the CEO of the multinational Unilever’s business Mr. Paul Coleman focused upon were in harmony with the social needs those were identified from an ethical point of view as was the need of the hour (Goldhill, 2014). Addressing challenges of climate change and its effects on Humanity Developing a sustainable plan to ensure Global Food security Developing a Business and NGO connection to actualize the environmental development plans those reduce carbon footprint and halt the depleting green forest resources. The issues those the brand have identified are in line to its core business values of building a sustainable business that have a long term perceived value among the Unilever’s consumers. Trong-Tuan (2012) suggested that the consumer’s perception of a brand value is associated with the way that the business projects its concern and care for the socio-eco issues as a whole. In this context Fassin and Van-Rossem (2010) observed that the brand of prominence use the strategy of ‘Building Brands for Life’ where the businesses aims in achieving the brand values such that the deep consumer’s insight that resonates in their purchase behaviours and thus develops deeper engagement and increased level of participation to facilitate the social causes undertaken (Corporatewatch, 2014). The business of Unilever is no different to the changing dynamics of business environment. The Corporate social responsibility that the brand has undertaken has been in a strategic alignment that ensures the promotion and knowledge development for the perspective consumers of the business across the globe. Gregg and Stoner (2011) argues that the brands tries to have a deeper understanding among the consumers about the offerings that the brand has to give to the users those are expresses in its promotional contents describing the product mix. Nevertheless, Jones et al. (2009) observed that, the CSR in business is much more than just the promotional aspect of Marketing in strict sense but it is a mode of strategic approach that is consumer’s engagement and emotional appeal seeking program. The CSR tries to build and promote issues those the brand wish to let its consumers know and engage with, develop interest and tries to achieve active participation. Thus to counter these perceptions the business needs to have a multi-dimensional outlook those are ethically, environmentally and socially considered well and thus earn a good repute for the brand for its long term sustainability and profits. The day of social media and other sources of audiovisual media may highlight an event or information that may not be well perceived by the consumers. This may damage the image of the brand that too may have a fatal long term effect upon the business. Therefore the Business of Unilever has strategically formulated the CSR activities those encompass and promotes the business’s internal values of care for the ethical guidelines in business those are reflected in the activities that the business undertakes. Gregg and Stoner (2011) argues that the increasing Globalization of modern day businesses are making the political and economical differences between nations in creating the active implementation of uniform applications of the activities of such Social, environmental development difficult at times. However, Minus and Bassiouni (2013) counters that the application of nation or economy oriented strategising of the CSR is more practical an approach for a business those would have similar value perception development for the consumer’s in those parts of the globe. The NGO (Non-Government Organizations) are becoming more prominent with Unilever’s ways of CSR activity performance that makes the actual implementation of the initiatives in action to see the success of the activities undertaken. Unilever has used the aid of environment protection NGOs like Greenpeace into its wings to fight the depleting rain forest resources across the globe. The other aspect is that the businesses alone cannot actually achieve the desired results for reasons like lack of specific expertise or manpower issues. Therefore the NGOs act as a tool to help the business achieve the objectives in ways those have actual positive effects upon people and society as a whole. The climate change issue that is a concern which had been troubling the globe for some time has been well addressed by the joint venture of NGOs those work for Global balance of Flora and fauna along with internal initiatives for lesser carbon footprint that have a very positive ethical background for global concerns. The Supply chain source for the business of Unilever too follows a strict control in sourcing their raw materials from responsible parties those shares the same ethical, social and environmental care to ensure that the process of Unilever’s business projects a wholesome impression in context of the ethical message it propagates (The Guardian, 2010). The ‘Project Sunlight’ undertaken in November 2010 by the Unilever to educate the global population about the adverse effects of such disposal (Unilever, 2014). This campaign aimed to change the behavioural aspect of the users to achieve the desired carbon foot-print reductions (Sternberg, 2009). Nevertheless, another famous globally renowned product of Unilever, Lifebuoy also developed a social message that was to develop the awareness among the people to reduce the chances of diseases those may be tackled by the use of the soap product. Therefore the social message that the promotion carried was to make people aware of the diseases those may occur due to unhygienic practices and therefore help in the reduction of medical cost and give increased immunity to people in such a way that helps the dual advantage of communicating a social message and thus making the product awareness more for the audience intensifying desire to experience the product. Idemudia (2014) commented in this context that the solutions to the bigger human problems like social, economical and ethical business practices are well addressed when the consumer and business partnership grows helping each other in development along with creating a great feedback mechanism that helps the business to accommodate the changes and making the activities more fruitful for the users and business and suppliers all in one go. It has been noted that the businesses of the day for its sustainability in such a competitive market takes the social, ethical and environmental concerns very seriously and promotes them judiciously to the perspective consumers to perceive the brand in good eyes. Magnum and Loppin (2009) opined that the long term sustainability and growth of market share have a great impact upon the way the business projects its concerns for social, environmental and ethical issues to the consumers. The change felt by the consumers due to the activities undertaken by the brand gives it an edge over other competing brands in an oligopolistic market with negligible differences in terms of price and quality like aspects. Recommendations and Conclusions The food industry of Unilever has also initiated and recognized the role of social media which they have used in a manner that suites their objectives best. Thus the ethical outlook and approach for a business develops its promotional contents likewise to reach the audience the way that is perceived and interpreted well. A more robust feedback collection mechanism and implementation of those ideas along with promoting people to generate new ideas can be undertaken by the brand for a better output. The insight into the likes and dislikes of consumers forms the base for the businesses to forge their relationship with their consumers and other stakeholders to build the efforts of ethical and social activities those reflects the brand’s commitment and values. Reference List Corporatewatch, 2014. Unilever: Who, Where, How Much. [online] Available at: [Accessed 12th January, 2015] Fassin, Y. and Van Rossem, A., 2010. Corporate Governance in the Debate on CSR and Ethics: Sense making of Social Issues in Management by Authorities and CEOs. Corporate Governance: An International Review, 17(5), pp.573-593 Goldhill, O., 2014. Six things you didnt know about Unilever brands, [online]. Available at: [Accessed: 15 January, 2015] Gregg, S. and Stoner, J., 2011. Profit, prudence and virtue. 3rd Ed. Exeter: Imprint Academic. Idemudia, U., 2014. Corporate Social Responsibility and Development in Africa: Issues and Possibilities. Geography Compass, 8(7), pp.421-435 Jones, B., Bowd, R. and Tench, R., 2009. Corporate irresponsibility and corporate social responsibility: Competing realities. Social Responsibility Journal, 5(3), pp.300-310 Magnum, C. and Loppin, J.L., 2009. 8th International Conference on Corporate Social Responsibility. Social Responsibility Journal, 4(3), pp. 12-18 Minus, P. and Bassiouni, M., 2013. The Ethics of business in a global economy. 2nd Ed. Boston: Kluwer Academic Publishers Sternberg, E., 2009. Corporate social responsibility and corporate governance. Economic Affairs, 29(4), pp.5-10 The Guardian, 2010. Company Profile for Unilever. [online] Available at: [Accessed 12 January 2015]. Trong Tuan, L., 2012. Corporate social responsibility, ethics, and corporate governance. Social Responsibility Journal, 8(4), pp.547-560 Unilever, 2014. Unilever facts. [online] Available at: < http://www.unilever.com/aboutus/introductiontounilever/unileverataglance> [Accessed 12 January 2015] Read More