Sustainable Production And Products: A Case Study Of Unilever

1. Identify and give examples of sustainable (defined as ethical social and ecological) issues within the national
and global context and ow these relate to stakeholders.
2. Analyse the role of government at local, regional, national, and global levels in regulating and influencing businesses sustainability performance.
3. Critically appraise the sustainability options availbale to businesses using a wide range of relevant sources of data.
4. Evaluate the sustainability performance and actions of organisations through the application of appropriate academic concepts, models and frameworks. 

Unilever's Sustainable Living Strategies

Sustainable production and products is an issue that has attracted many discussions since the issue touches on the society, environment and general responsibility of producers. This implies that those organizations that are involved in the production of consumable products have the sole responsibility to produce products that have a minimal adverse effect on consumers and environment. Sustainable production can be described as the production system that involves designing and production of products that has economic, social and environmental benefits while at the same time protecting health and environment.

Unilever is an organization that has its headquarters in London, United Kingdom and Rotterdam, Netherlands. The company was started in 1870s and has ground to cover many countries throughout the world. The company produces a variety of products that range from food and beverages to cleaning agents and personal care products. The company currently covers more than 190 countries worldwide making the company one of the oldest company in the world. Recently the company was crown the top five sustainable company within the UK market (Unilever 2018). 

Sustainable production and products are developed with considerable effect on environment, social and economic responsibility while at the same time protecting health, environment throughout the production of the products to consumption (Blewitt 2008, p. 96).  

Unilever has develops sustainable production framework and plan that aim to produce products that have a positive impact on both the society and environment. Firstly, the focus of the company's sustainable living plan is to produce products that ensure the growth of the company and at the same time is cost effective and future-oriented. Secondly, the sustainability framework has ensured that more than 55% of the raw materials used in the production are sustainably produced. This is to ensure that there is zero release of hazardous waste into the environment and more so CO2 into the environment (Graves, Ebbesen, Mogensen & Lackner 2011, pp 1–23). Thirdly, another area of focus by the company is packaging where the company is rethinking about the plastic packaging due to their impact on the environment. Fourthly, the Unilever has a sustainable living plan that put the health and hygiene at the forefront of its production. This the company does through ensuring sustainable nutrition and building of body confidence and self-esteem. Lastly, the company has other initiatives to better the life and living conditions for many communities. The company, therefore, has several activities that such as the development of smart water products, connecting with smallholders farmers, advancing human rights and improved nutrition (Spary 2014).

Concerns and Action Plans on Sustainable Production and Products

There has been a concern on the sustainable production and products with many organizations and government agencies taking their position on the topic. Some of the players that are currently concerned about the sustainable production and products are United Nations Environment Programme (UNEP), European Union, and The United States and United Kingdom government. These organizations can be categorized as a local and international organization and areas of operation.

Firstly, the government of the United Kingdom has been on the forefront in the discussion on the sustainable production and products. The government has been developing many different policies to achieve a sustainable production and sustainable products within the private and public sector of production. The government has come up with action plans that ensure that businesses operating within the country has sustainability framework. For instance, the green economy policy of 2010-2015 aim to collaborate with businesses to make economy sustainable while at the same time has a minimal environmental impact (Lynn &. Gurel-Atay 2014).

Secondly, various companies within the United Kingdom has been in continuous discussion on the sustainable production and products. Some of these companies are manufacturers, construction companies, and environmental protection agencies. For instance, food retailers in the country have been developing strategies that aim to differentiate between organic food and nonorganic food. This is to bring out the difference between sustainable food and other food produced without sustainability system. In addition, most food producing companies such as Unilever, Danone, and Nestle has sustainability goal as their production strategies (Vig & Kraft 2018, pp. 269–273). 

Firstly, the European Union is another organization that is deeply concerned with the sustainability of production and products. For instance, the organization has developed Sustainable Consumption and Production and Sustainable Industrial Policy (SCP/SIP) Action Plan that aim to foster achieve energy efficiency, Ecolabel of products, and improved environmental efficiency of products (Laszlo & Zhexembayeva 2011a). The organization requires members which the UK is a member to come up with sustainable production framework that reduces environmental impact and produce sustainable products (European Commission 2011).

Thirdly, the United Nations Environment Programme (UNEP) as an international environmental organization has an equally developed action plan to reach environmentally sustainable production and products. In addition, the organization is involved in studies of the impact of sustainable production and sustainable products on the environment (United Nations Environmental Program 2011). The main focus of this organization is a reduction of environmental pollution and improvement of environmental conditions. To ensure this goal, the organization encourage member countries to ensures that companies involved in production produce products that are sustainable with minimal release of waste into the environment (United Nations Environment Programme 2009).

Frameworks for Sustainable Production and Products

There are many different aspects or framework that has been developing to help in sustainable products through sustainable production. Framework for evaluation and analysis of sustainable production system focus on some aspects of the production and consumption elements.

Firstly, products design is one framework that helps in achieving sustainable production and sustainable products as it utilizes the sustainability approach for designing products. The theory is based on the need to design products that use sustainable raw materials and achieve sustainable products as the end product (Thain & Bradley 2014, p. 426). In addition, the product design work with a focus on the overall economic and social impact of the product designed within and industry. When using the design of the productdesign for evaluation of sustainable production and products, the technology that is used in production is a key consideration (Kates 2010).

There are some indicators for sustainable production of sustainable products that offers the basis for the theoretical understanding of the sustainable production and sustainable products. Firstly, the chemical composition of products is one indicator of the sustainability of the product (Von Weizsacker, Hargroves, Smith & Stasinopoulos, 2009). The impact of the chemicals that are used in production or that forms the component of the final product is used evaluate the sustainable production of the products. Secondly, the waste and ecological impact of the products is another indicator for the sustainable production or sustainable products. The waste products that are produced by the by-products or the production system is another aspect of the production system that used to evaluate sustainability.  Thirdly, product packaging is another framework that is used to evaluate or analyze sustainable production system. Fourthly, energy consumption is another indicator of the sustainable production (Hensmans, Gerry & Yip 2013, p. 141).

The cost of the production and products is another aspect of the sustainability that is used to evaluate the sustainability and sustainable products. The cost-effective approach to sustainability production focuses on both customers and the producer benefits of economic sustainability production and products. The cost-effective sustainable production aims to save the cost of production that is beneficial to the producer. Secondly, the economic sustainability of the products aims to meet customers need and at the same time, the products carry the overall responsibility for health and safety of the customer. This implies that the product needs to consider the safety and the impact of the product consumption on the economic status of the consumer (Laszlo & Zhexembayeva 2011).

Social sustainability of the production and products focuses on the production of products that has a social impact on the society and consumers in general. The theoretical aspect of the social responsibility requires the company producing products. In addition, the social responsibility is used to design the product that meets the current social need in the society. Social sustainability framework also considers the social components of the intended consumers of the products that are produced within an organization (Wandemberg 2015, p. 122). 

Sustainability in Business: A Comparison of Unilever and Other Companies

The government of the United Kingdom plays an important role in the sustainable production and products as the government has developed policy framework. The government identified sustainable production as one of the four key focus and these were identified in 2005. The government has since developed the policy framework that monitors the production system within the country to ensure that sustainable production is achieved. Firstly, the government through its 2010-2915 sustainable business and environment aims to make the business and economy more sustainable with minimal environmental impact. Within this policy, the government highlights the importance of resource efficiency economy and environmental management. This implies that all production systems should consider minimal environmental impacts while reducing waste released into the environment. Secondly, the government has come up with enabling policies that make the transition to a green economy with collaboration with business such as Unilever (Morelli 2011).

A comparison between Unilever and other companies within the same sector shows disparities in sustainable approach and performance. There are many different companies within the same sector and some of these companies include Nestle and Danone.

The company has utilized the theoretical framework in designing its production system and products line. One of the elements of the theory of the sustainable production sis products design and this evidence within the company as the company designs its products based on its sustainable goals. Product design within the company is based on sustainable living brand and some of these products are Dove, Lifebuoy, Ben & Jerry’s and Comfort (Frank-Martin & Peattie 2009). Secondly, key indicators of sustainable production are waste and the impact of these wastes on the environment. This has been utilized by the company through its zero-waste initiative that aims to reduce waste and waste impact on the environment (James, Magee, Scerri & Steger 2015). Thirdly, principles of sustainable production aim to create sustainable products ranging from raw material to the final products. This is similar to the sustainable responsibility of the Unilever that can be traced from agricultural raw materials to final sustainable living brands. Lastly, the sustainability of the production considers the economic aspect of the products and its impact on the society. Cost effective drive of the Unilever aims to meet the economic responsibility of its products in the market. The sustainable growth aspect of the sustainable plan differs with the society need of responsibility as it is organizationally based (Unilever 2018).

Nestle as a key player in the safe food sector of the United Kingdom has a comparable approach to sustainable production and products. Nestle has a similar goal for the sustainability as it also aims to enhance quality life and healthier future for the society. The only different sustainable approach between Unilever and the nestle remains that the overall production system within the Unilever production system focuses on the sustainable raw material (Reinecke, Manning & Von Hagen 2012). Secondly, another similarity is on the packaging where both companies are rethinking on the impact of the plastic on the environment and sustainable practice. Thirdly, Nestle has another approach to sustainable products that are different from that of Unilever and this include recycling and reusing of materials used in a production system. In addition, the company is comparable to Unilever on the basis of raw material where the Nestle focus on packaging material as compared to Unilever that begins its sustainability production at the sourcing of food raw materials (Martinne 2017).

Danone is another company that also produces similar products as Unilever and though is an international company; its products are sold within the UK market. Firstly, Danone has also been advocating for better health similarly to the Unilever although the main focus of the Danone is on food as compared to sustainability as a whole. Unilever has been advocating for sustainable production system yet has minimal focus on food as compared to Danone (Donone 2018a). Secondly, Danone has better lives as its second sustainable pillar and this differs with those pillars of sustainable production found in the sustainable living plan of Unilever. This is a society approach as compared to Unilever that has environment, economic and social approach. Thirdly, better world goal of the Danone is similar to the environmental sustainable approach that is used by the Unilever. The different between Unilever and Danone based on the environmental sustainability is on the drivers for sustainability as Unilever consider the minimal release of waste into the environment as compared to Danone (Donone 2018). 

The company has been ranked the best in terms of sustainable production and products in the UK and regionally among the best. The company was ranked the fifth best sustainable company in the UK owing to its sustainability approach.  Firstly, the company's sustainability approach aim at producing sustainable products with the traceable sustainable raw material (SAI Platform 2010). Most of the competitors focus on other factors of production yet does not source sustainable raw material.  Secondly, the zero CO2 goal is impressive as its aims to reduce waste released into the environment at all cost. Many sustainable indicators show that CO2 is the worst waste that contributes to the atmospheric pollution and advocate for the reduction of this waste release into the environment. Thirdly, the company has been performing within the UK market due to its specific sustainable goals approach that is not found in the production system of its competitors. Most of the competitors such as Nestle focus on society as compared to Unilever that tries to tackle specific sustainable issues. Lastly, the company has a specific brand that is dedicated to sustainable standards in the market. Some of these brands include Dove, Lifebuoy, Ben & Jerry’s and Comfort and are label sustainable living brands. The performance of the Unilever sustainable living brand has been great and the company is realizing its sustainable growth objective (Jess 2017).

Conclusion

In conclusion, sustainable production and products is an important issue that needs to be considered by manufacturers and other production industries. The theoretical understanding of the issues indicates that product design, environmental focus, social focus and economic focus are some of the sustainable production frameworks. Studies show that some of the indicators for sustainable production systems include sustainable inputs, chemical components of the products and raw materials, the energy used in production and waste released into the environment. Unilever company has been a good sustainable producer of food products as compared to its competitors such as Nestle and Danone. The sustainable framework used by the company include sustainable raw materials, sustainable packaging material, limited release of CO2 and other waste into the environment and clear focuses on economic and socially sustainable production.  

References

Blewitt, J. (2008) Understanding Sustainable Development. London: Earthscan. p. 96.

Donone (2018) Sustainability. Available at https://www.danone.com/en/# [Accessed on April 27, 2018]

Danone (2018a) Building together a better healthier future. Available at https://www.danone.com/en/for-all/sustainability/better-world/ [Accessed on April 28, 2018]

European Commission (2011) Sustainable Consumption and Production and Sustainable Industrial Policy Action Plan. Available at https://ec.europa.eu/environment/eussd/escp_en.htm [Accessed on September 11, 2015]

Frank-Martin, B. & Peattie, K. (2009) Sustainability Marketing: A Global Perspective. Wiley, United Kingdom.

Graves, C., Ebbesen, S.D., Mogensen, M. & Lackner, K.S. (2011) Sustainable hydrocarbon fuels by recycling CO₂ and H₂O with renewable or nuclear energy. Renewable and Sustainable Energy Reviews, vol.15, no.1, pp 1–23. doi:10.1016/j.rser.2010.07.014

Hensmans, M., Gerry, J. & Yip, G. (2013) Strategic Transformation: Changing While Winning. Palgrave Macmillan. p. 141.

James, P., Magee, L., Scerri, A. & Steger, M.B. (2015) Urban Sustainability in Theory and Practice: London: Routledge. Reframing social sustainability reporting: Towards an engaged approach. Environment, Development, and Sustainability. Springer. Available at https://www.academia.edu/9294719/Urban_Sustainability_in_Theory_and_Practice_Circles_of_Sustainability_2015_ [Accessed on December 03, 2014]

Jess, N. (2017) Top 10 UK’s Most Sustainable Big Businesses. Sustainable Business Toolkit. Available at https://www.sustainablebusinesstoolkit.com/big-business-csr-in-uk/ [Accessed on April 20, 2017]

Kates, R.W. (ed.) (2010) Readings in Sustainability Science and Technology – an introduction to the key literature of sustainability science CID Working Paper No. 213. Center for International Development, Harvard University. Cambridge, MA: Harvard University. Available at

https://www.hks.harvard.edu/var/ezp_site/storage/fckeditor/file/pdfs/centers-programs/centers/cid/publications/faculty/wp/213.pdf  [Accessed on December 2010].

Laszlo, C. & Zhexembayeva, N. (2011). Embedded Sustainability: The Next Big Competitive Advantage. Stanford, CA: Stanford University Press.

Laszlo, C. & Zhexembayeva, N. (2011a) Embedded Sustainability: A strategy for market leaders. The European Financial Review. Available at https://www.europeanfinancialreview.com/?p=2927 [Accessed on April 25, 2012]

Lynn R. &. Gurel-Atay, K.E. (Eds) (2014) Communicating Sustainability for the Green Economy. New York: M.E. Sharpe.

Martinne, G. (2017) Unilever sales fall short as competition bites big brands. The Thomson Reuters Trust Principles. Available at https://uk.reuters.com/article/us-unilever-outlook/unilever-sales-fall-short-as-competition-bites-big-brands-idUKKBN1CO0KS [Accessed on October 19, 2017]

Morelli, J. (2011) Environmental Sustainability: A Definition for Environmental Professionals. Journal of Environmental Sustainability -Volume 1. Rochester Institute of Technology.

Reinecke, J., Manning, S. & Von Hagen, O. (2012) The Emergence of a Standards Market: Multiplicity of Sustainability Standards in the Global Coffee Industry, Organization Studies, Forthcoming. Available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1970343

SAI Platform (2010) Sustainability Indicators, Sustainable Agricultural Initiative. Available at https://www.saiplatform.org/activities/alias/sustainability-indicators [Accessed on 09-04-2011].

Spary, S. (4 December 2014) Unilever to separate spreads business to give brands more 'focus’. Marketing Magazine. Available at https://www.marketingmagazine.co.uk/article/1325129/unilever-separate-spreads-business-give-brands-focus [Accessed on 13 March 2016].

Thain, G. & Bradley, J. (2014) FMCG: The Power of Fast-Moving Consumer Goods. First Edition Design Pub. p. 426. Available at https://books.google.com/books?id=i8MABAAAQBAJ&pg=PA426 [Accessed on 8 January 2014]

Unilever (2018) The Unilever Sustainable Living Plan: Taking action. Available at https://www.unilever.com/sustainable-living/ [Accessed on 11 July 2018]

United Nations Environment Programme (2009) United Nations Decade of Education for Sustainable Development. Available at https://portal.unesco.org/education/en/ev.php-URL_ID=23279&URL_DO=DO_TOPIC&URL_SECTION=201.html [Accessed on 2009-04-09].

United Nations Environmental Program (2011) Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication – A Synthesis for Policy Makers. Available at https://www.unep.org/greeneconomy

Vig, N. J. & Kraft, M. E. (2018) Environmental Policy New Directions for the Twenty-First Century. 2455 Teller Road Thousand Oaks, California: CQPress. pp. 269–273.

Von Weizsacker, E.U., C. Hargroves, M.H., Smith, C.D. & Stasinopoulos, P. (2009) Factor Five: Transforming the Global Economy through 80% Improvements in Resource Productivity, Routledge.

Wandemberg, J.C. (August 2015) Sustainable by Design, Amazon. p. 122. Available at https://www.createspace.com/5678024 [Accessed on 16 February 2016].

Wubs, B. (2008) International Business, and National War Interests: Unilever between Reich and Empire, 1939-45. Routledge. p. 154.