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Responsible Care A Business Partners Perspective

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Title: Responsible Care A Business Partners Perspective


1
Responsible Care A Business Partners
Perspective
The European Responsible Care Conference
Dublin - 23rd October 2005
2
Unilever - 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
4
Vitality 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

5
Vitality 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

6
The Value Chain
Tier 2 3 Suppliers etc.
Tier 1 Suppliers

Retailer
Consumer
  • Distribution
  • Sale

In Home Use
  • Base Materials
  • Derivatives
  • Formulation
  • Packaging

Materials
Brands
7
SHAREHOLDERS 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
8
Meeting 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

9
The 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.
10
Unilever Business Partner Code
  • In 2004 we started to introduce the Code by
    writing to all those suppliers with whom we have
    a direct relationship

11
Unilever 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.

12
Unilever 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
13
Chemicals 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
  • .........

14
Chemicals 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
  • .........

15
Unilever 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
17
Process
  • 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

18
Supplier Survey (Step 1)
Responsible Care
19
Supplier 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
22
Responsible 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
23
Responsible 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

24
Thank you
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