UNILEVER
www.UNILEVER.CO.ZA Brochure cover 2 Unilever.indd 1
08/09/2015 21:27
2 AFRICA INDUSTRY MAGAZINE September 2015
Unilever brochure pages.indd 2
08/09/2015 22:20
UNILEVER
Bangkok, Thailand. Unilever House head office building. Unilever is a leading consumer products manufacturer in Thailand
Changing the face of GLOBAL CAPITALISM
It is rare for a global corporation to look itself squarely in the mirror and ask searching questions. Unilever, South Africa’s biggest employer and one of the world’s leading manufacturers, has done just that with the publication of its inaugural Human Rights Report.
company has been a vigorous T heproponent of corporate social
responsibility for a long time, but so far-flung are its tentacles, that ensuring every part of the business conforms to desired standards has proved to be a big challenge. Some years ago, one of its biggest suppliers in Asia ransacked a village of
indigenous peoples as it bulldozed its way through a rainforest. Further back in time, its factories in the Congo, based on forced labour, remain a part of the British and Belgium colonial enterprises that is still remembered today wit horror. So, many might argue, it’s about time. But the document Unilever has
produced is far-ranging and ambitious in its scope and aims to lead the way in demonstrating that, perhaps, global capitalism does have a heart. The document outlines Unilever’s aim not only to respect human rights, but to advance them across all areas of its business. It details areas where the company has taken significant steps AFRICAINDUSTRYMAGAZINE.COM 3
Unilever brochure pages.indd 3
08/09/2015 22:21
UNILEVER
forward, and assesses some of the challenges ahead. Paul Polman, Chief Executive Officer, of the Anglo-Dutch consumer giant, said at its launch: “Business can only flourish in societies in which human rights are respected, upheld and advanced. People are our greatest asset, and empowering them across our supply chain is not only the right thing to do, but also ensures a sustainable future for the business. “As we look ahead to the agreement of the UN Sustainable Development Goals in September and to the prospect of a global climate agreement in Paris
at the end of the year, it is a fitting time to open an honest discussion about human rights. “The effects of climate change threaten us all, with expected impacts hitting the poorest people and communities the hardest. They are often also those most at risk from negative human rights impacts. It is no longer enough for businesses to merely respect human rights. Our role must be far more active, to ensure we succeed in our commitment.” Unilever became the first company to adopt the UN Guiding Principles Reporting Framework; which is the
The company has 172,000 employees, 76,000 suppliers and sales in more than 190 countries across the globe, with varying cultural sensitivities and socio-economic challenges. Here it outlines its commitments: ■ We endorsed the women’s empowerment principles. As part of our Unilever Sustainable Living Plan (2013), we have set out our commitment to empower five million women by 2020. ■ We launched our Responsible Sourcing Policy (2014), embedding our commitment to conduct business with integrity, openness and respect for human rights and core labour principles. ■ Safety is integral to Unilever’s operations and we’ve achieved our target of halving the number of accidents in our factories and offices since 2008. ■ We are committed to a transparent and accountable approach to addressing human rights issues across the business. That’s why we invited Oxfam to research our Vietnamese operations in 2013, to help us better understand how to implement the UN Guiding Principles. We will be publishing a progress update later this year. ■ We have a zero tolerance of forced labour and are conducting legal reviews of The UK Modern Slavery Act 2015 to assess the effectiveness of our processes. We’re strengthening our training programmes on prevention of human trafficking for employees, suppliers and distributors, and are establishing reporting mechanisms. ■ The goals in the Human Rights Report are to provide safe working conditions, fair wages, equality of opportunity and freedom from discrimination.
cornerstone for operating within a fair and sustainable environment. But Mr Polman concedes: “Today, the risk of systematic human abuses exists across our chains and that of others. The process of developing this report has been inspiring and humbling. We have documented stories that show progress is possible and have taken significant steps forward to eradicate human trafficking, sexual harassment and gender-based violence.” Sue Garrard, Vice President of Sustainable Businesses, said: “This report is a crucial step in holding up the mirror to ourselves.” John Morrison, of the London-based Institute of Human Rights, commented: “First, the report makes explicit the process the company went through to decide which were its most salient human rights impacts – not just for the company, but for those impacted. Unilever’s new Home Care Liquids factory at Khanyisa
4 AFRICAINDUSTRYMAGAZINE.COM
Unilever brochure pages.indd 4
08/09/2015 22:21
‘‘
‘‘
The effects of climate change threaten us all, with expected impacts hitting the poorest people and communities the hardest. Paul Polman, CEO, Unilever
“Second, some impacts are directly out of the company’s hands, so this is a fundamental leadership point. “Third, I am pleased to see the issue of workplace harassment given particular prominence.” New investment in South African factory Unilever has been a leading employer in South Africa for generations. Today it supports 3,500 full-time workers at
five factories and eight sales offices. The most recent development is a factory at Khanyisa, part of Unilever’s R3bn ‘Capacity Transformation Project’ investment, in line with Unilever’s Sustainable Living Plan (USLP) – a plan that reduces the carbon footprint, while aiming to double the size of the business. The Khanyisa site will deliver a 50% reduction in the carbon emission footprint and a 70% reduction in water usage per tonne. Khanyisa is one of several major
UNILEVER
projects in South Africa – and Africa as a whole – as part of an overall strategy to upgrade the supply chain to world-class levels. This investment will ensure a 67% increase in production capacity, from 90,000 to 150,000 tons annually. The new factory will produce popular brands like Omo, Handy Andy, Domestos, Comfort and Sunlight amongst others. Mr Polman said, “Transforming our production capacity is one of four critical initiatives that we are driving to meet expected growth in demand. The Home Care factory will enable us to better serve our consumers with
The four critical initiatives for the Khanyisa factory are:
■ Increasing capacity to meet growth ambition. ■ Improved efficiency to reduce cost. ■ Improved technology to improve quality. ■ Improved technology to reduce environmental impact.
AFRICAINDUSTRYMAGAZINE.COM 5
Unilever brochure pages.indd 5
08/09/2015 22:21
» » » » » » »
6 AFRICA INDUSTRY MAGAZINE September 2015
Unilever brochure pages.indd 6
08/09/2015 22:21
UNILEVER
Unilever’s Indonsa factory
South African Minister of Trade and Industry, Dr Rob Davies
innovation and green technology, whilst simultaneously improving service levels for our customers. Our aim is to have the right stock at the right place in record time, matching the quantities expected by the shoppers.” The brand new factory includes many green technologies and forms part of a strategy to double business, while reducing the environmental footprint and increasing positive social impact. Speaking at the launch, South African Minister of Trade and Industry, Dr Rob Davies said that green technology, innovation and energy efficiency are the
kind of investments that South Africa welcomes as part of climate change and industrialisation aspirations. He said the success and growth of Unilever’s investment projects in the country will continue to communicate the message that South Africa is an ideal location for investment in Africa. “We are focussing on upscaling our manufacturing sector, footprint and full-scale industrialisation. With the roll out of the Black Industrialist Programme, Unilever’s investment could play a key role in knowledge sharing, technology and skills transfer to black industrialists in the FMCG and chemicals sector, thus creating an opportunity for emerging companies to be able to participate in main stream economy,” said Davies. He added that Unilever could work with the Department of Trade and Industry (DTI) in deepening the supply chain, especially with black industrialists – through backward linkages in agriculture and the FMCG sector, as well as building regional value chains on the African continent. The Khanyisa investment is one
of many that have been supported by the DTI’s 12-i Tax Allowance Incentive scheme. The Incentive scheme is used by the Government to support greenfield investments (new industrial projects that utilise only new and unused manufacturing assets) and other projects that benefit the planet as a whole.
AFRICAINDUSTRYMAGAZINE.COM 7
Unilever brochure pages.indd 7
08/09/2015 22:21
8 AFRICA INDUSTRY MAGAZINE September 2015
Unilever brochure pages.indd 8
08/09/2015 22:21
UNILEVER
Unilever history
producing brands like Sunlight soap, Lux, Dove, Domestos, Knorr, Vaseline and Lipton. The company regularly tops the polls of South Africa’s biggest and best businesses. The R1.4bn Home Care factory at Khanyisa follows a R211m investment at Indosa. Unilever South Africa is the market leader in 14 out of 17 brand categories in which it operates
South African operations Unilever’s roots in South Africa stretch back to the dawn of the 20th century, when company founder William Lever visited the country to open up new cheaper manufacturing bases for his palm oil-based products business. Initially, plants were opened in Durban and Cape Town and now there are five manufacturing bases –
In the 1880s in northern England, William Lever began manufacturing a new soap product called Sunlight, and invented the first corporate mission statement – to make cleanliness commonplace and to lessen work for women. In no time, he was serving up 450 tons of soap each year from his factory. To combat rising costs, he looked further afield for raw materials and production – hence the move to South Africa in 1904. Two factories were opened and, later, he acquired WB McIver in West Africa in 1910. At the same time the Van Den Bergh brothers were creating a margarine empire from their Dutch base. The United Africa Company was also created, comprising the activities of several companies, many very old with slave trade links. There is little doubt that, during these years, the labour
Project Images above: Unilever South Africa, Husqvarna SA (pty) Ltd, St Anne’s Diocesan Collage, The Hardy Boys and Ushaka Marine World.
dna interior design is a professional interior design consultancy based in Durban, South Africa. Driven by passionate and skilled designers with a focus on personal service and attention to detail. With our extensive knowledge and inherent understanding of design we create work environments that encourage productivity, vitality
conceptual design space planning feasibility analysis budget preparation project management consulting
and harmony within our Clients culture and business objectives.
+27 31 573 1163 info@dnadesign.co.za
www.dnainteriordesign.co.za
AFRICAINDUSTRYMAGAZINE.COM 9
Unilever brochure pages.indd 9
08/09/2015 22:21
UNILEVER
Aerial view of Unilever’s Indonsa factory
force in West Africa was badly treated, with forced labour rife and prices for farmers kept down. The company’s role was to export from Africa and import manufactured goods from Europe. It controlled 60% of the exports of palm oil, 45% of palm kernel and also substantial chunks of the peanut and cocoa trade. Independence movements swept many companies out of Africa,
but Unilever stayed put, even though it had to adapt to new trading conditions. In South Africa it remains one of the dominant players on the industrial scene. Now its multi-pronged approach to creating a better, sustainable business should have benefits for both employees, suppliers and consumers. Unilever became the leading manufacturer of margarine, a product
designed to be a cheaper and healthier alternative to butter. It ruled the roost for years – until now. Growing realisation that former health advice may have been flawed has seen a surge in sales of more natural foods like butter. Unilever has conceded defeat on this and has begun introducing butter into several of its spreadable margarine brands.
ADVERTORIAL
Savannah – a company that cares Savannah delivers exciting experiences around service, value and innovation. Distributing ingredients to the food and beverage, healthcare and personal care industries, Savannah focuses on relationships, information and collaboration. Savannah is an agent For Jungbunzlauer, Schuelke, Lipotec, Provital and many more leading manufacturers.
Contact: Johannesburg (+27) 11 856 4500 Cape Town (+27) 21 551 5353 Durban (+27) 31 202 0794
www.savannah.co.za
10 AFRICAINDUSTRYMAGAZINE.COM
Unilever brochure pages.indd 10
08/09/2015 22:21
UNILEVER
Supply partners – by invitation only Unilever is making a profound effort to ensure its suppliers meet their exacting standards. The procurement team is purchasing from tens of thousands of suppliers worldwide and is following the strategic decision to introduce a global Supplier Qualification System (USQS) to manage the complexity of supplier information. The procurement organization first selects suppliers, then those selected are invited to register in USQS. This system ensures that suppliers are qualified to do business with Unilever. One of the main drivers for the Unilever Supplier Qualification System is to make the process of doing business globally less complicated. The use of the USQS will enable the company to standardize and streamline engagement with suppliers, no matter
where they are located. It is a single system that allows all suppliers to demonstrate their capabilities. Being invited to join the system enables selected suppliers to qualify to work with Unilever and gives visibility throughout Unilever’s global business. However the organisation is keen to stress that membership is strictly by invitation only and that suppliers must adhere to company principles. ■
The Unilever Supplier Qualification System enables the company to standardize and streamline engagement with suppliers, no matter where they are located
ory
AFRICAINDUSTRYMAGAZINE.COM 11
Unilever brochure pages.indd 11
08/09/2015 22:21
UNILEVER SOUTH AFRICA (PTY) LTD 15 Nollsworth Crescent Nollsworth Park La Lucia Ridge 4051 Tel: +31 570 2000 / 3000 UNILEVER.CO.ZA
everest global media ltd Email: info@everestglobalmedia.com Company number: 09619508 everestglobalmedia.com africa industry magazine Issue 01 September 2015 Copyright Š 2015 Everest Global Media Ltd All rights reserved
africaindustrymagazine.com
Brochure cover 2 Unilever.indd 2
08/09/2015 21:26