Title: Responsible Care A Business Partners Perspective
1Responsible Care A Business Partners
Perspective
The European Responsible Care Conference
Dublin - 23rd October 2005
2Unilever - At a Glance
- Every day 150 million people choose our brands to
feed their families and to clean their homes. - Our products are sold in 150 countries.
- We employ more than 265,000 people
- Annual sales of over 40 bn
- We spend approx. 6.7 bn a year on RD and Brand
Marketing
3 Vitality Mission
4Vitality Brands
- The Values and Reputation of our Brands are
central to this mission - slowly built, quickly lost
- The Values and Reputation of our Partners are
associated with the mission
5Vitality Brands
- The Values and Reputation of our Brands are
central to this mission - slowly built, quickly lost
- The Values and Reputation of our Partners are
associated with the mission - Our Brands are the consumer touch points in the
value chain
6The Value Chain
Tier 2 3 Suppliers etc.
Tier 1 Suppliers
Retailer
Consumer
In Home Use
Materials
Brands
7SHAREHOLDERS increasingly link social and
environmental practice to financial returns
Business in a Goldfish Bowl
MEDIA sceptical, hunts headlines for
scandal-fatigued audiences. Stories instantly
cross media and markets
CONSUMERS sophisticated, demanding, expect
responsibility/ accountability from big business
Business
PRESSURE GROUPS tenacious, targeting global
brands
8Meeting Our Commitments
- Unilever Product Environmental Stewardship
- Safety and Environment Assurance Centre (SEAC)
- Environmental and Regulatory Affairs Centre
(ERAC) - Unilever Sustainability Initiatives
- Agriculture
- Fishery
- Water
- Specific Industry Collaborations e.g. in Europe
- AISE
- Colipa
- Cefic
- Corporate Social Responsibility (CSR) Programmes
9The CSR Impact Footprint
Voluntary contributions Voluntary contributions
made to the community and wider society, often in
partnership with not-for-profit organisations,
are the visible tip of the iceberg of the much
larger impact of business operations Impact of
operations The most important impact on society
is through a business's direct operations Impact
through the value chain A wider indirect impact
along the 'value chain', from suppliers through
trade customers to consumers Increasingly our
concerns will range through the value chain.
10Unilever Business Partner Code
- In 2004 we started to introduce the Code by
writing to all those suppliers with whom we have
a direct relationship
11Unilever Business Partner Code
- In 2004 we started to introduce the Code by
writing to all those suppliers with whom we have
a direct relationship - In keeping with Unilevers partnership approach,
we work together with our partners, first to
establish how compatible their standards are with
ours and then, where necessary, to agree on
measures and timescales to achieve the desired
performance levels.
12Unilever Business Partner Code
- In 2004 we started to introduce the Code by
writing to all those suppliers with whom we have
a direct relationship - In keeping with Unilevers partnership approach,
we work together with our partners, first to
establish how compatible their standards are with
ours and then, where necessary, to agree on
measures and timescales to achieve the desired
performance levels.
Initial Focus is with Tier 1 Suppliers
13Chemicals Value Chain
Tier 2 3 Suppliers etc.
Tier 1 Suppliers
Retailer
Consumer
- Derivatives
- Specialities
- Surfactants
- Polymers
- Electrolytes
- Solvents
- Thickeners
- Bleaches
- Water softeners
- ...........
- Formulation
- Packaging
- Hair Care
- Skin Care
- Oral Care
- Laundry
- Home Care
Distribution Sale
In Home Use
- Base Chemicals
- Petrochemicals
- Oleochemicals
- Minerals
- Salts
- .........
14Chemicals Value Chain
Tier 2 3 Suppliers etc.
Tier 1 Suppliers
Retailer
Consumer
- Derivatives
- Specialities
- Surfactants
- Polymers
- Electrolytes
- Solvents
- Thickeners
- Bleaches
- Water softeners
- ...........
- Formulation
- Packaging
- Hair Care
- Skin Care
- Oral Care
- Laundry
- Home Care
Distribution Sale
In Home Use
- Base Chemicals
- Petrochemicals
- Oleochemicals
- Minerals
- Salts
- .........
15Unilever Business Partner Code
- There shall be compliance with all applicable
laws and regulations of the country where
operations are undertaken. - There shall be respect for human rights, and no
employee shall suffer harassment, physical or
mental punishment, or other form of abuse. - Wages and working hours will, as a minimum,
comply with all applicable wage and hour laws,
and rules and regulations, including minimum
wage, overtime and maximum hours in the country
concerned. - There shall be no use of forced or compulsory
labour, and employees shall be free to leave
employment after reasonable notice. - There shall be no use of child labour, and
specifically there will be compliance with
relevant ILO standards. - There shall be respect for the right of employees
to freedom of association. - Safe and healthy working conditions will be
provided for all employees. - Operations will be carried out with care for the
environment and will include compliance with all
relevant legislation in the country concerned. - All products and services will be delivered to
meet the quality and safety criteria specified in
relevant contract elements, and will be safe for
their intended use. - There shall be no improper advantage sought,
including the payment of bribes, to secure
delivery of goods or services to Unilever
companies.
16 Key Dimensions of Supplier Assurance
Supplier Assurance Dimensions
SAFETY HEALTH ENVIRONMENT
QUALITY CONSUMER SAFETY
EMPLOYMENT TERMS CONDITIONS
BUSINESS INTEGRITY
BUSINESS PARTNERS CODE
17Process
- STEP 1 COMUNICATE REQUIREMENTS
- Common letter to all suppliers
- Request evidence of positive assurance
- external certifications e.g. ISOs etc
- internal policies and codes
- STEP 2 SUPPLIER ASSESSMENT
- Common methodology with all suppliers
- Risk Assessment is pivotal to the process
- conducted at Plant Material levels
18Supplier Survey (Step 1)
Responsible Care
19Supplier Survey (contd)
20 ASSESSMENT PROCESS ( Step 2)
Risk Assessment
Internal screen assessment of all Unilever
suppliers vs. the key assurance
dimensions Evaluation of Risk Potential
Self Assessment
Request for detailed information from supplier
plants where we require further positive
assurance Evaluation of management
processes controls
Audits
Specialist audits where positive assurance is
lacking Evidence of performance standards
21 ASSESSMENT PROCESS ( Step 2)
Supplier Survey
Risk Assessment
Internal screen assessment of all Unilever
suppliers vs. the key assurance
dimensions Evaluation of Risk Potential
Self Assessment
Request for detailed information from supplier
plants where we require further positive
assurance Evaluation of management
processes controls
Audits
Specialist audits where positive assurance is
lacking Evidence of performance standards
22Responsible Care - some observations
- Good management practice supported by external
certification is a key element of positive
assurance. - Commitment to improvement programmes and
publication of performance metrics is essential
to consumer confidence - Responsible Care is an excellent framework to
promote these aims, and spread best practice.
Thank you
23Responsible Care - some questions
- Our scope is global and our scrutiny is at the
individual site/material level. - Can the industry consortia provide a data
exchange of external certifications ? - Can KPIs be aggregated and reported by market
segment ? - E.g. surfactant suppliers
- Can national/regional organisations promote the
globalisation of best practice across
geographic boundaries ? - Ultimately we require global solutions to be
implemented at the local level
24Thank you