unilever pdf 2

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Trends: http://www.forbes.com/sites/forbesleadershipforum/2012/01/18/the-top-10-trends-in-csr-for-2012/ 1. Going Global: the trend is clear: Corporate social responsibility leaders will be increasingly accountable for responsible behavior all along their supply chains. 2. Transparency: Last year, according to CorporateRegister.com, more than 5,500 companies around the world issued sus- tainability reports, up from about 800 a decade ago - report from SustainAbility.com found that more than 100 sets of ratings measure which companies are the most responsi- ble. 3. Employee engagement: A Hewitt & Associates study looked at 230 workplaces with more than 100,000 employees and found that the more a company actively pursues worthy environmental and social efforts, the more engaged its employees are. The Society for Human Resources Management compared companies that have strong sustainability programs with companies that have poor ones and found that in the former morale was 55% better, business process were 43% more ef- ficient, public image was 43% stronger, and employee loyalty was 38% better 4. Collaboration & competition: The Reputation Institute’s 2011 “Pulse Survey,” which indicate that CSR is responsible for more than 40% of a company’s reputation 5. Sustainability shoppers: Consumers are increasingly tuned in to sustainability when making their buying decisions. “Green labels” have been around for a long time - Cone Communications reports in its 2010 Cause Evolution Study that “even as cause marketing continues to grow, con- sumers are eager for more. In fact, 83 percent of Americans want MORE of the products, services and retailers they use to support causes.” Unilever - USLP

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Page 1: Unilever pdf 2

Trends:

http://www.forbes.com/sites/forbesleadershipforum/2012/01/18/the-top-10-trends-in-csr-for-2012/1. Going Global: the trend is clear: Corporate social responsibility leaders will be increasingly accountable for responsible behavior all along their supply chains.

2. Transparency: Last year, according to CorporateRegister.com, more than 5,500 companies around the world issued sus-tainability reports, up from about 800 a decade ago- report from SustainAbility.com found that more than 100 sets of ratings measure which companies are the most responsi-ble.

3. Employee engagement: A Hewitt & Associates study looked at 230 workplaces with more than 100,000 employees and found that the more a company actively pursues worthy environmental and social efforts, the more engaged its employees are. The Society for Human Resources Management compared companies that have strong sustainability programs with companies that have poor ones and found that in the former morale was 55% better, business process were 43% more ef-ficient, public image was 43% stronger, and employee loyalty was 38% better

4. Collaboration & competition: The Reputation Institute’s 2011 “Pulse Survey,” which indicate that CSR is responsible for more than 40% of a company’s reputation

5. Sustainability shoppers: Consumers are increasingly tuned in to sustainability when making their buying decisions. “Green labels” have been around for a long time- Cone Communications reports in its 2010 Cause Evolution Study that “even as cause marketing continues to grow, con-sumers are eager for more. In fact, 83 percent of Americans want MORE of the products, services and retailers they use to support causes.”

Unilever - USLP

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6. Occupy from the inside: PriceWaterhouseCoopers has found that 88% of millennials, or “echo boomers,” choose employ-ers based on strong CSR values, and 86% would consider leaving if the companies’ CSR values no longer met their expecta-tions.- Companies of all kinds are looking for people to help improve their environmental, social, and ethical performance throughout their value chains. How to make it real and aligned to a company’s profile and not feel like ‘fake’ or pushed into the brands visions.

7. Social Media: Social media opens a way for stakeholders to interact directly with a company’s CSR program. Through social media, companies gain a following of people who are interested in their CSR performance and can keep tabs on stake-holder sentiment on any emerging issue.

8. Human Rights: In a time of globalization, hyper-transparency, and increasing expectations among informed stakeholders, the risk in even tacit complicity in human rights violations is growing. Just to be safe that the company is in ‘safe’ territory.

9. Earth at Seven Billion and Growing: But as more people compete for the Earth’s resources, the need to be more efficient will continue to increase. Everything from energy efficient semiconductors to electric cars to water conserving plants will find new markets in 2012 and beyond. The imperative to stretch resources ever further will make sustainability a central de-sign principle for the winning corporations of the future.If done well, and real because a company is working/affecting these fields then if taken up the issues early they will get more potential to shape the future outcomes.

Unilever - USLP

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CSR 2.0:http://www.waynevisser.com/articles/future-trends-in-csrCSR 2.0. This is a purpose-driven, principle-based approach, in which business seeks to identify and tackle the root causes of our present unsustainability and irresponsibility, typically through innovating business models, revolutionizing their pro-cesses, products and services and lobbying for progressive national and international policies.

1. Creativity: - our social and environmental problems are complex and intractable. They need creative solutions

2. Innovation and implementation: - companies will be judged on how innovative they are in using their products and pro-cesses to tackle social and environmental problems.

3. “Green”, “Ethical” and “Fair”: will become more of a mass and a norm than a nieche and something extra for a brand, its products/services and consumers.

4. Cross-collab: - cross-sector partnerships will be at the heart of all CSR approaches. These will increasingly be defined by business bringing its core competencies and skills (rather than just its financial resources) to the party“Think Global - Act Local”.

5. Good as the norm: - A clear failing of our current economic and commercial system is based on a fundamentally flawed design, which acts as if there are no limits on resource consumption or waste disposal. Instead, we need a cradle-to-cradle approach, closing all resource loops and ensuring that products and processes are inherently ‘good’, rather than ‘less bad’

6. Full transparency: - In the future, progressive companies will be required to demonstrate full life cycle management of their products, from cradle-to-cradle. We will see most large companies committing to the goal of zero-waste, carbon-neu-

Unilever - USLP

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tral and water-neutral production, with mandated take-back schemes for most products.

7. A little is not enough, trying is not succeeding: - In the future, much like the Generally Accepted Accounting Practices (GAAP), some form of Generally Accepted Sustainability Practices (GASP) will be agreed, including consensus principles, methods, approaches and rules for measuring and disclosing CSR- Many of the issues that CSR is currently trying to tackle on a voluntary basis will be mandatory in the future

8. Going the extra mile: - In the future, many of today’s CSR practices will be mandatory requirements. However, CSR will remain a voluntary practice – an innovation and differentiation frontier – for those companies that are either willing and able, or pushed and prodded through non-governmental means

9. Corporate transparency in what’s available and mandatory: - In the future, corporate transparency will take form of pub-licly available sets of mandatory disclosed social, environmental and governance data – available down to a product life

10. CSR a norm as well as a speciality: - In the future, CSR will have diversified back into its specialist disciplines and func-tions, leaving little or no CSR departments behind, yet having more specialists in particular areas (climate, biodiversity, hu-man rights, community involvement, etc.).

Summary: Collectively, these trends reflect a scenario of widespread adoption of CSR 2.0 In the future, a future in which companies become a significant part of the solution to our sustainability crisis, rather than complicit contributors to the problem, as they are today. Given the current global crises and mounting system pressures, and knowing business’s ability to adapt and rapidly change, I regard this as a highly likely prediction sketched out by a concerned pragmatist, rather than the wish-list of a CSR ‘true believer’.

Unilever - USLP

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- Expert practitioners have a vision for how sustainable business should operate, and develop new ideas, or increase exper-tise on past experience, and implement these within the business. This defines how businesses focus their attention when the spotlight isn’t particularly on them. Do they define CSR as being about philanthropy, or environmental management, or core purpose and the business model?

What are global corporations doing in CSR:

The world 10 best in social responsibility:http://money.cnn.com/magazines/fortune/mostadmired/2011/best_worst/best4.htmlhttp://www.justmeans.com/-10-Most-Socially-Responsible-Companies-in-World/46571.html1. Statoil: Expanding into alternative energy - http://www.statoil.com/en/TechnologyInnovation/NewEnergy/Pages/default.aspx

2. Ferrovial: Ferrovial is a member of both the Dow Jones Sustainability and FTSE4good investment indices (each comprised of global companies that meet high CSR standards). They’ve also created an Environmental Performance Index, the first of its kind, to track the company’s global environmental performance in real time.

3. Disney: Some of their more interesting initiatives include: running Disneyland trains on biodiesel made with cooking oil from the resort’s hotels, establishing a worldwide conservation fund and instituting a “green standard” for all employees and cast members.

4. Edison: Edison is one of the leading renewable energy providers in Europe with 68 hydroelectric facilities, 29 wind farms, and one solar facility currently online (17% of the company’s installed capacity is in renewable and is their fastest growing segment).

Unilever - USLP

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5. ENI: ENI was named the best company in the world for the online communication of its corporate social responsibility ini-tiatives in the annual survey conducted by Lundquist which analyzed the 91 companies listed in the Dow Jones Sustainability Index.

6. Whole Foods Market: The supermarket chain that brought organic products to the mainstream American consumer. Giv-en Whole Foods’ longstanding commitment to CSR issues, it’s not a surprise to see it make this list.

7. Total: This one is a head scratcher. Despite efforts to appear socially responsible on their website, Total is a habitual of-fender of CSR issues including: the environment, human rights and corruption.

8. Hochtief: Germany’s largest construction company and a leader in the green real estate space, Hochtief is also a member of the Dow Jones Sustainability index.

8. Nestl: in 2009 Nestle instituted “The Cocoa Plan” in an effort to encourage sustainability, labor rights and fair trade in the cocoa industry. But, like some of the other larger companies on this list, Nestle has been frequently criticized for their questionable business practices and alleged greenwashing.

10. NextEra Energy: NEE is the largest owner and operator of wind power farms in the US and second only to Iberdrola in the world (44% of NEE’s total energy output comes from wind power).

10. Weyerhaeuser: one the biggest players in the global forest products industry, Weyerhauser owns 6.6 million acres of commercial timberland worldwide and another 15.2 million acres on long-term leases in Canada. According to their web-site, 99% of these forests are certified to sustainable forestry standards.

Unilever - USLP

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Effects of going CSR:- Novo Nordisk, a high-value CSR pharmaceutical company in Denmark, for example, after launching their Values in Action program, which aligns their business objectives with sustainable development principles, saw a 5% drop in staff turnover, while Sears found a 20% reduction in staff turnover since implementing their CSR programhttp://www.ic.gc.ca/eic/site/csr-rse.nsf/eng/rs00554.html

To be successful with CSR:Being authentic: http://www.bbc.co.uk/news/business-19876138- “You have to be authentic otherwise people become very sceptical about who you are and why you’re doing it, and that can be very damaging.”- “Klara Kozlov, senior advisory manager at the Charities Aid Foundation (CAF), helps businesses choose their charitable partnerships and develop longer term, more sustainable relationships with charities. She says schemes have to be of mutual benefit to both the corporate and the charity.There can be many ways of measuring success, so “it’s really important to have some clear goals in mind, and make sure those are shared and delivered for both partners”, as well as a clear exit strategy that leaves the charity in a better place.”- The business sense: “It’s not just about money,” she says. “[Through partnerships] charities can access the fundraising po-tential of employees, and skills and assets such as IT and marketing departments. A lot of charities are starting to recognise the importance of that.”

It’s about building trust:1. Trust in the brand2. Trust in the performance of the product3. Trust in the company to “do the right thing”4. Trust in you as an employer

Unilever - USLP

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Innovation in CSR:

The Freeplay Energy Centre: is a compact and simple to use solar powered lighting system and mobile phone charger which provides up to 16 hours shine time for one LED light bulb, or 8 hours for two LED bulbs.

The Indigo Plus LanternTM: is charged by solar, hand crank and USB technology, supported by a built-in rechargeable NiMH battery, giving up to 60 hours’ constant shine time on a low setting.- Freeplay Energy’s Managing Director, John McGrath, said: I am sure our products will be of great interest to aid and devel-opment organisations working with the 1.5 billion people who live without a regular electricity supply.- “The Freeplay Energy CentreTM and Indigo Plus LanternTM have been designed to provide sustainable, free energy and lighting for people who might otherwise need to use candles or kerosene lamps - with all their attendant risks - or use their scarce resources to pay for phone charging. The products can contribute to community development by supporting educa-tion and home working - providing light by which to read and do schoolwork in the evenings, or carry out income-generating tasks, such as sewing or mending tools.

Vodafone M-Pesa: is a mobile-phone based money transfer and microfinancing service for Safaricom and vodacomhttp://www.vodafone.com/content/index/about/about_us/money_transfer.htmlM-Pesa allows users with a national ID card or passport to deposit, withdraw, and transfer money easily with a mobile de-vice.

Pennies: http://www.pennies.org.uk/

Voucherry: http://voucherry.com/

Unilever - USLP

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Success of CSR: Research shows that the critical success factors for implementing CSR include having an overarching vision that includes CSR, having senior management and board level commitment, engaged staff and the provision of skills, tools and incentives.

Building habits:

Cialdini’s Principles of Influence:http://www.mindtools.com/pages/article/six-principles-influence.htm1. Reciprocity: As humans, we generally aim to return favors, pay back debts, and treat others as they treat us. According to the idea of reciprocity, this can lead us to feel obliged to offer concessions or discounts to others if they have offered them to us. This is because we’re uncomfortable with feeling indebted to them. Conclusion: Unilever offers a great opportunity for people to help, make a change for others and themselves. Consumers (mostly in western worlds) are buying using different products in their daily lives, that they feel like they need and doesn’t want to give up. But at the same time through media, group pressure and other instances they are being made aware of some of the downfalls of these habits/behaviours. So if possible for the consumers to make amends, or more positively con-sume/live then they will feel the pressure to do so.

2. Commitment (and Consistency): Cialdini says that we have a deep desire to be consistent. For this reason, once we’ve committed to something, we’re then more inclined to go through with it.Conclusion: This is opportunity for Unilever with shared agendas, goals and transparency get people in from the start. And acutely say that this is a common project, and that the only way to succeed is to work together.

Unilever - USLP

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3. Social Proof: For example, we’re more likely to work late if others in our team are doing the same, put a tip in a jar if it already contains money, or eat in a restaurant if it’s busy. Here, we’re assuming that if lots of other people are doing some-thing, then it must be OK.Conclusion: Community ‘pressure’ and encouragement. Similar as the consumers working together with Unilever is it as important for the consumers to work together with other consumers.Be inspired, encouraged and empowered by what others are doing. Offer the possibility to highlight consumers contribu-tions, “success-stories” etc. And the same goes here, even though you can make a change (one person), it’s a joint project and together with millions of other people “we” have the real power to help.

4. Liking: Cialdini says that we’re more likely to be influenced by people we like. Likability comes in many forms – people might be similar or familiar to us, they might give us compliments, or we may just simply trust them.Conclusion: Brand ambassadors is the word to use here, there are influencers in people/consumers lives everywhere, some of them are close friends, others are “famous” people and some are “Internet” people.For the third example the power of Social Media is important. And here also is the opportunity to highlight people around the world who is involved in this project, and promote their efforts in a positively way.

5. Authority: We feel a sense of duty or obligation to people in positions of authority. This is why advertisers of pharmaceuti-cal products employ doctors to front their campaigns, and why most of us will do most things that our manager requests.Conclusion: Through statistics, real life examples and a sense of “higher being” promoting these causes. Showing where “we” are right now in the world, and where we have to go.Showing that there’s a gap in between which we need to overcome, and that there’s no possibility to avoid this gap and move on with our lives as usual. “We have to do this”.

Unilever - USLP

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6. Scarcity: This principle says that things are more attractive when their availability is limited, or when we stand to lose the opportunity to acquire them on favorable terms.Conclusion: This is a special opportunity for Unilever brands consumers around the world. Making it a more special and unique entity which almost could be likened to a “club”. Where everyone is welcomed to join in, but immediately gets special advantages to allocate.Making it as real as possible, showing what each contribution can do in the short and long term in these causes.

Summary:1. Enable people to help themselves, giving them the tools to help.2. Transparency and working together to achieve the goals, Unilever builds the platform but together the content is created.3. A community effort, open up for consumers to interact and inspire others. Possibility to highlight consumers contribu-tions.4. Encourage influencers, using tools like SM channels to promote consumers and connect users to each other. Making it even more ‘real’.5. Being vulnerable and transparent, be honest with what the goals and visions are for the program. Saying and showing what needs to be done in order to be successful. And to close the gap in between, “we” have to work together.6. Making USLP unique and almost like a “club”. Everyone is welcome, and make it as real as possible, what effects do each contribution have in the short and long-term.

Unilever - USLP

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Brand Loyalty’s Influence On Consumer Behavior:http://www.essortment.com/brand-loyaltys-influence-consumer-behavior-35996.htmlBrand Loyalty is the consumer’s conscious or unconscious decision, expressed through intention or behavior, to repurchase a brand continually. It occurs because the consumer perceives that the brand offers the right product features, image, or level of quality at the right price. Consumer behavior is habitual because habits are safe and familiar. In order to create brand loyalty, advertisers must break consumer habits, help them acquire new habits, and reinforce those habits by remind-ing consumers of the value of their purchase and encourage them to continue purchasing those products in the future.

Conclusion: Here again is the opportunity to emphasize that Unilever’s products are supporting something “bigger” than itselfs. And that it takes a stance and offers both the consumers as well as other instances who is affected by the making of these products.

Supporting existing habits:http://www.tkgenius.com/2012/12/marketing-create-consumer-habits- These products are already a part of peoples everyday lives, so one part of marketing strategy should be to emphasize this. It’s “already there” and what you as the consumer have to do is for yourself and the cause just validate your purchases and together reap the benefits of these purchases.

The psychology of SM:http://www.psychologytoday.com/blog/inside-the-consumer-mind/201203/facebook-the-psychology-social-media- “Of those who visit Facebook, 43% have ‘liked’ a page posted by a brand or company.”- Consumers’ relationships with brands go far beyond functional product attributes. A number of studies have empirically shown that personality dimensions similar to those that are the foundation of human relationships are the basis for brand perceptions.

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Conclusion: Make the USLP as real as possible, through transparency and open goals it’s possible to show the personality of the program. And with certain attributes it’s possible for people to link themselves to these attributes, because it’s some common ground. “We think, feel and want to act alike”.“The significance of brand personality has been demonstrated in research showing that the greater the congruity between personality characteristics that describe a consumer’s actual or ideal self and those that describe a brand, the greater the consumer’s preference for the brand.”

Rewarding:

Linking a brands/company’s personality with its consumers is a start, but to make it a lasting relationship the importance of rewarding the consumers is important. And there are of course different ways of achieving this. What is commonly used is some sort of clear and direct benefits for the consumers, as coupons, discounts, promotion etc.And of course these sorts of rewards are a valid way of marketing, but it should definitely not be the only way. As it supports short-term reward feelings, and is often considered as a bit of “buying” the consumers and their time. To make it sustain-able in the long-term other forms of rewarding is necessary. One way of achieving another form of rewarding could be to make the consumers partly accountable, responsible or even “owners” of the program. Where the possibility then for the consumers is higher to contribute and also responsible they would feel of pressure to succeed would be higher.

You are not alone: https://new.edu/nodes/buying-decisions--2- “Communicating about, and delivering value-added products and services that you and people like you will want to buy”. Investigating the possibility to show to consumers that they’re peers and others around them are also involved in this pro-ject. Make it even more real for the consumers through this.Here it’s possible to link consumers together with their already existing peers but also to link them to others who they might

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share some common interests with.Community wise, globally, locally and personality wise.Using user data to triangulate different common interests, attributes and goals on a micro-level as well as on a macro-level.

Gamification:http://www.slideshare.net/quigleyshaun/gamification-webinar-pdf- Games are everywhere, in with us in some aspects in our daily lives, through our smartphones and everyday shopping (bo-nus points).- “81 million people play social games at least once a day” - “49 million people play multiple times a day”. So it’s something that we are used to and feel comfortable with and understand the mechanics of how it works.

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The mechanic of: money spent = points earned = unilver commitment.

Data visualisation: Showing personal and community involvement. Combined with gamification aspects. Showing how contribution there have been, how much is needed, how much that is left, time-estimation. But the problem is to make it real, and also more influential in terms of time and interest. Maybe set up short term goals, connect user with user, users to Unilever/USLP and users to program/the cause people. - Is it possible for consumers to not only achieve/follow the pre set goals but also push Unilever to do even more?

Unilever - USLP