5624 Social Review [19] 6/5/04 4:15 pm Page C1 2003 Listening, learning, update on progress U

Summary social review 5624 Social Review [19] 6/5/04 4:15 pm Page C2

Contents

This Summary Social Review acts as a signpost to further information and case studies on our website. For details see the index at www..com/environmentsociety/socialreporting.

Management and performance Perspectives on progress About this Review 2 Meeting everyday needs 7 Values in action 2 Focus on food 8 Creating value, sharing wealth 3 Focus on health and hygiene 10 Ensuring consumer safety 3 Global business, local benefits 12 Safe working, healthy employees 4 Valuing diversity, respecting rights 5 Progress report and looking forward 13 Engaging with communities 5 External assessment 13 Listening and learning 6

Our business

Unilever is a multi-local multinational with with those of the Dutch margarine Unilever has two divisions – Foods and consumers, employees, business partners producer . Unilever now Home & Personal Care. Food brands and shareholders on every continent. has operations in around 100 countries include such well-known names as and our products are on sale in around , , Hellmann’s, , The Unilever Group* was created in 50 more. In 2003 our turnover was Flora/Becel and Bertolli. Home & Personal 1930 when the British soap-maker €42,942 million and we employed Care brands include , , Omo, merged its businesses 234,000 people. , Pond’s and .

Turnover and operating profit 2003 Turnover by geographical region 2003 For more information on our financial € million % of total €42,942 million performance, please see our Annual Review and Summary Financial Turnover 42,942 Latin America Statement 2003 and our Annual Operating profit 5,529 €4,380 Report & Accounts 2003 or visit 10.2 Operating profit BEIA** 6,772 www.unilever.com/investorcentre/

Europe financialreports. ** BEIA = Before exceptional items and Asia & Pacific 42.6 €18,297 amortisation of goodwill and intangible assets. €7,094 16.5

Africa, M East 7.7 and Turkey 23.0 €3,302

North America €9,869

Front cover photograph We asked employees to take photos This photograph was taken by Adriana- representing CSR in action around our Maria Santos, an employee at our home business. The picture shows our on-site and personal care products factory in fire fighting team – which is staffed Recife, Brazil and the winner of the entirely by employee volunteers – Unilever corporate social responsibility practising their skills at their monthly (CSR) photographic competition in 2003. training session.

* The Unilever Group, also referred to as Unilever or the Group, consists of the two parent companies, Unilever N.V. and Unilever PLC, which, together with their group companies, operate as nearly as practicable as a single entity. 5624 Social Review [19] 6/5/04 4:15 pm Page 1

Chairmen’s introduction

The world in which we operate is changing. Consumers are increasingly bringing their views as citizens into their buying decisions, demanding more from the companies behind the brands. They want companies and brands they can trust.

In this Summary Social Review, we offer an update on the progress we are making in Unilever to listen and learn from our consumers and our other stakeholders, as we strive to be both a successful business and a responsible week-long ‘Leadership Growth Journey’, Our Leadership Growth Journey programme corporate citizen. held last year in Portugal (see photo). involves groups of future business leaders in a challenge that includes community and One of the journey’s aims is to help outdoor assignments. Here Co-chairmen In the last five years we have become a managers to reconnect with what is Antony Burgmans (left) and Niall FitzGerald more focused, streamlined business important in our own lives, with our lead the group in 2003’s journey in Portugal’s mountainous Peneda-Geres national park. concentrating on fewer, stronger brands. sense of values and purpose, and then Now is the right time to restate our reflect on our leadership responsibilities. mission, which can be summed up in Just as with individual managers, so with one word: vitality. the business as a whole: we need to invest the effort to make explicit this and a multi-stakeholder approach. Unilever’s mission is to add vitality to life. sense of being on a journey with a This Summary Review and additional We meet everyday needs for nutrition, purpose, connected to the communities information on our website give an hygiene, and personal care with brands and environment in which we live. overview of our global performance. Just that help people feel good, look good as important is the local engagement and get more out of life. Among the tasks we addressed during that each of our companies has in every 2003 was to set out more clearly how country where we operate. It is at Taken together with our established we apply our business principles to the country and community level where the statements of values as a business – the marketing of food and beverages, benefits of responsible business are felt, Corporate Purpose and Code of Business including principles for advertising to and where negative impacts must be Principles – this increased clarity about children. We also worked on ways to managed. It is there that business, what we stand for puts us in a better achieve greater transparency on social working with governments and civil position to succeed in the years to and environmental standards in our society organisations, must strive to come. Our mission is important because supply chains. We highlight key aspects spread prosperity, protect and preserve it aligns our employees with a clear of our performance and our continuing the environment and enhance long-term aspiration and focuses us all on serving work with employees and communities sustainability. our consumers. in this Summary Review, trying to show the dilemmas as well as successes. We are committed to open engagement Yet restating our mission and values and with our partners, locally and globally. asking our employees to adhere to them The fact that we don’t always get Thank you for taking an interest. Please is only a first step. The challenge comes everything right is one reason why we tell us what you think – we welcome in living them out in day-to-day business are committed to transparency, dialogue your views. decisions, and doing so in a way that is both internationally acceptable and locally appropriate. The long-term success of our business is intimately connected with the vitality of the communities and the environment in which we operate.

As Unilever’s most senior executives, our responsibility is to show leadership. One way we do this is to join groups of eighty or so young business managers from all Antony Burgmans Niall FitzGerald over the world who come together on a Chairmen of Unilever

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Management and performance

About this Review

A message from Clive Butler, This Summary Social Review provides and how we are approaching them. Corporate Development Director an update on our progress in 2003 in These cover topics as diverse as managing Unilever’s social impacts nutrition, health and hygiene and the around the world. It follows our internationalisation of business. second Unilever-wide Social Review, published in 2002, and complements Our aim in this Review has been to our Environmental Report 2003 (both explore the proposition put forward by available at www.unilever.com). some that we should focus on a few key issues rather than try to cover the In the first half, we set out our whole terrain. It is just one tool to performance where we already have improve the transparency of our group-wide data, such as health activities, share good practice and and safety. We continue to work on report on performance. Around the better ways to measure our group- world, our local companies are wide impacts, taking into account engaging with their stakeholders, that Unilever is a highly decentralised including through social reports of business operating in around their own. We welcome feedback on 100 countries. We also touch on some how we are meeting stakeholders’ of our external partnerships from the interest in our business. Global Compact through to local community initiatives. For more information on these and other initiatives not included in this In the second half of the Review, we Summary Review, please see the index at look at some of the issues currently www.unilever.com/environmentsociety/ under debate in our industry sectors, socialreporting.

Values in action

In Unilever we are guided Our Code of Business Principles sets out hotline is an important addition in our high standards of business conduct, helping us uphold the Code, as it by a clear set of values based on integrity and openness. By provides an extra way for employees to and standards that putting these shared values into everyday report breaches. We have set ourselves governs the way we do working practice, we can operate the challenging target of offering a successfully as a multinational company, 24-hour service, in every main language business around the world. at home as a trusted corporate citizen in of our 234,000 employees. In 2003 we They are set out in our diverse local societies. introduced e:learning programmes to Corporate Purpose and support new employees in better Our Code Committee oversees the understanding the Code. Code of Business Principles. operation of the Code throughout our business, providing guidance and During the year we also completed work education on its use. It reports directly to on a set of key principles to achieve the Board. Any breaches are reported greater transparency of social and through local management, where most environmental standards in our supply issues are resolved; any serious issues are chains. These steps clarify and build on referred upwards to regional group our established supplier management management and if necessary to the practices. Unilever’s major suppliers and Code Committee. partners are expected to adhere to business principles consistent with our During early 2004, our ‘ethics hotline’ own. We are working on processes to was extended to cover all our business. make these standards transparent. The confidential, independently run

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Creating value, sharing wealth

Every day, around the Total shareholder return Unilever Group distribution of cash value 1999 – 2003 added 2003 world, 150 million people % of total cash value added €13,389 million choose our products to feed 1 Invested in business for future growth their families and clean 7 Local communities 0.5 themselves and their homes. 20.8 14 By making and selling 21 Providers brands that meet people’s of capital 21.6 1999 2000 2001 2002 2003 everyday needs, we have 46.5 Employees The reference group, including Unilever, consists of grown into one of the 21 companies. Unilever’s position is based on TSR over 10.6 world’s largest consumer a three-year rolling period. Governments goods companies. putting us back in the top third of our represents direct corporate taxation peer group (see also our Annual Review alone, while the amount shown for Our continuing success in meeting 2003 for more details of our financial communities is only our voluntary consumer needs is essential if we are to performance). contributions to charities and non- thrive as a business and so be able to profit groups. pay our employees, suppliers and Unilever generates wealth by adding distributors, develop new products, value to raw materials as they are Unilever has a broad international create value for shareholders, pay taxes processed into branded goods and shareholder base. Unilever companies and invest in the future. effectively marketed to meet consumer are listed on the local stock market in needs. This value is shared among 14 countries. Around a quarter of One measure of our success is the wealth stakeholders in the business. The cash Unilever shares are held outside the UK, created for shareholders, expressed as value added statement (above right) Netherlands and USA. In 16 countries we ‘total shareholder return’ (TSR), which shows how this value is distributed, with offer our All Employee Option Plan, combines share price appreciation and employees the largest single beneficiary giving employees the opportunity to dividends paid. In 2003 our TSR through the wages and benefits they become shareholders, involved directly in performance improved (see chart), earn. The share for governments the financial performance of the business.

Ensuring consumer safety

Unilever is committed material on animals. We are committed to eliminating animal testing from our to the human and business. Equally, we must uphold our environmental safety commitment to consumer health and of all our products. safety and to the safety of our workforce and the environment. So we apply the strictest internal control procedures to Consumers trust us to provide them and ensure animal testing is carried out only Unilever's global Safety and their families with products that are safe when no alternatives are available. Environmental Assurance Centre for their intended use. Our safety policy (SEAC) plays a central role in applies equally to all our products Over the last 15 years we have spent assuring human and environmental wherever in the world they are more than €15 million on developing safety, ensuring that safety manufactured. We design them to be alternative methods. Our ongoing decisions are made independently safe, and consistently strive to control programme includes both in-house of commercial considerations. ingredients, the supply chain and research, and funding and collaboration manufacturing processes. with universities and other research SEAC is responsible for carrying organisations. We also continue to invest out the mandatory assessment of We set universal standards on critical safety in having these alternative methods product and supply chain technology issues that have to be taken into account accepted by the academic and regulatory design, considering consumer in all product development work. We communities, since only once this safety, occupational safety and carry out much of our work in this area acceptance is achieved can animal the environment. through the Unilever global Safety and testing be replaced. Environmental Assurance Centre (see box). SEAC reports to our Corporate A recent amendment to the EU Cosmetics Development Director, as the Board Animal testing Directive has emphasised the relevance member responsible for safety and The vast majority of Unilever products of this approach. We are working to environmental matters. reach consumers without testing any eliminate animal testing as soon as we can.

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Safe working, healthy employees

Unilever strives to provide benchmarking study among its industry Unilever accident frequency rate 1999-2003 peer group. Although this positioned us Lost time accidents & restricted work cases a safe and healthy in the upper quartile of the group, we per 100,000 hours workplace and to are still falling short of our ambition of maintain consistently high being best in class. 0.6 standards worldwide. As a result, in 2004 we are focusing 0.4 on the role of leadership, at all levels in Our goal is to achieve a 0.2 safe working environment the organisation, in ensuring that our health and safety standards are 0 and a world-class consistently communicated and then 1999 2000 2001 2002 2003 reputation for health and enforced. Within each region, additional safety at work. support is being provided to those organisations whose performance is Fatal accidents 1999-2003 below the Unilever average. We will also In 2003 we met our target of full focus on safe driving, contractor 14 (4*) compliance with the Unilever management, the use of predictive 13 (7*) Occupational Health and Safety 11 (5*) 11 (3*) rather than reactive performance 7 9 (3*) Framework Standards in all companies indicators, and on harmonising our 4 7 5 and all countries. These standards require global standards for certain classes of 3

each organisation to establish an process plant and equipment. 2 4 occupational health and safety 6 4 3 management system that will deliver HIV/AIDS 4 3 2 3 continuous improvement. Based on the In some regions of the world the 1 internationally recognised standard HIV/AIDS pandemic is a grave risk to 1999 2000 2001 2002 2003 OHSAS 18001, they mandate the same employees and communities. As there is Employee on-site Contractor on-site Employee off-site (*) of which road traffic accidents global standards for all Unilever currently no cure for AIDS, education organisations worldwide. and prevention are critical to halt the spread of the disease, supported by Company programmes are developed on Our approach to preventing occupational counselling and sustainable care the basis of a comprehensive framework injury and illness is to identify and address programmes for those already infected. of HIV/AIDS interventions. These include health and safety risks before serious Unilever is committed to deploying the establishment of a programme incidents can occur. Our accident effective programmes of health infrastructure, education, prevention, frequency rate fell during 2003 compared education and to securing access to treatment and care – including anti- to the year before (see chart). The number appropriate treatment for our employees retroviral therapy where an appropriate of fatal accidents among our employees at all stages of the disease. infrastructure exists – and the building of and contractors also fell (see chart). joint programmes with the local community. However, the only acceptable target is Countries differ greatly in the quality of Unilever programmes are available as zero fatalities. Given the high number of clinical infrastructure, in national health models on both the Global Business road accidents, we have focused our priorities and in the cultural sensitivities Coalition and Global Health Initiative efforts on improving safe driving that surround HIV/AIDS. Our policies websites (www.businessfightsaids.org & standards in all regions, especially in those respond and adapt to fit local needs and www.weforum.org) and have been countries where most of our road traffic have been furthest advanced in sub- recognised in the Global Business fatalities occur. Saharan Africa. They are aligned with the Coalition’s Awards for Business Excellence. key principles of the ILO Code of Practice In 2003 Unilever organised an on HIV/AIDS, and, where relevant, Unilever five-stage framework of HIV/AIDS occupational health and safety provide models for businesses worldwide. interventions in sub-Saharan Africa

Awareness through educational programmes for all employees

Prevention including prevention and treatment of occupational Employees at our Boksburg exposures and distribution of condoms factory, South Africa, hold a candlelit vigil to Establishing status remember AIDS victims. establishing HIV status of individuals through CSR photo competition voluntary testing entry from Juanita van Rooyen, Boksburg. Acceptance of status encouraging HIV+ individuals to seek treatment

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Valuing diversity, respecting rights

Diversity is not an optional in the Czech Republic, Pakistan, South personal awareness and a practical add-on to our business. Central Europe and South Africa. planning guide for reciprocal mentoring. It is an imperative to Such numbers are important for Respect for rights ensure sustained growth, monitoring progress, but real change is Our Code of Business Principles sets out achieved by changing our internal our commitment to diversity in a working as it is integral to an culture, not simply setting targets. So our environment where there is mutual trust intimate understanding of approach to diversity centres on creating and respect for human rights. This means our consumers. an environment that inspires different that we respect the dignity of the individuals to contribute in their own individual, and will not use any form of ways within a framework of shared forced, compulsory or child labour. We Unilever is an international company by values and goals. recognise the right of employees to design. Today, there are 32 nationalities freedom of association. among our top 200 leaders, and the This starts at the top: our Executive Executive Committee of seven comprises Committee has set out a vision of Over the last four years we have five nationalities. Across Unilever, we diversity for the company and uses a integrated new businesses worth employ around 100 nationalities. seven-point ‘diversity scorecard’ to assess €30 billion into the group and made over its own decisions. A progress report is €7 billion of disposals, closing or selling By the end of 2003, more than 30% of published every six months on our 138 factories and 140 businesses. Our our managers worldwide were women, intranet for employees to see. commitment to employees recognises up from 25% when we last reported that change is inevitable, so we invest in (2001 figures). The proportion at senior During 2003, we developed a toolkit to life-long learning, with the training and levels, however, is still low at around 5% enable all employees to understand the personal development of each individual among the top 200 managers. The importance of diversity, and then to act. in skills they can use, whether inside or position is improving slowly and by the Launched worldwide early in 2004, it outside Unilever. start of 2004, women led our businesses includes a tool for self-assessment of

Engaging with communities

Unilever is deeply rooted Community spend by motivation 2003 % of total €66 million Partnerships in action in the communities where In Brazil, Unilever provided financial it does business. and strategic support to Ecotropica, Charitable a local NGO focused on conserving donations Around the world, we make voluntary 38 Commercial the quality of life of tropical contributions to charities, and work in 36 initiatives ecosystems, which links closely to in the partnership with non-profit organisations. community Unilever‘s partnership with the We focus on meeting local needs and Living Lakes network. aim to use our skills to make a real Social 26 difference. investment In Kenya employees completed the planting of over In 2003 we undertook a special study of providing income-generating 100,000 indigenous trees within our our existing partnerships, looking for opportunities (see page 12). tea estates. In partnership with the best practice lessons from those that are local community, the company is strategic and involve business, civil In 2003, we committed €66 million to helping to conserve biodiversity in society organisations and the public community involvement, equivalent to tea-growing areas. sector working together. One example is 1.5% of pre-tax profits. Our study shows Project Shakti in India, where Unilever that at least 9,000 charities and non- In Canada our household cleaner works in close partnership with local profit groups of many different sizes brand, , works with Habitat for government and NGOs to empower around the world benefited from this Humanity to build affordable underprivileged rural women by commitment. We estimate that more housing for families who would not than 125 million people are touched by otherwise be able to buy a home of these projects, three quarters through their own. Money is donated via the our hygiene campaigns. sale of Vim products and employees volunteer to give a hand in helping We estimate that in 2003 more than to construct the homes (see left). 42,000 Unilever employees – nearly one in five – were involved in community activities with company support and encouragement.

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Listening and learning Many people and Listening to consumers Unilever supports and learns from many Consumers are at the heart of our of the organisations that promote organisations affect our business: listening to their views is the corporate social responsibility and business or are affected key to our success. We are encourage multi-sector co-operation and by it. Listening to and engaged in an ongoing partnership. Internationally, we are conversation with members of Business for Social learning from our consumers all over Responsibility in the USA, CSR Europe stakeholders informs the world, to and the International Business Leaders our decision-making, understand their Forum. Our local companies are also diverse tastes and active, for example as founder members strengthens relationships needs. For example, of the Brazil-based Instituto Ethos and helps us succeed as all new Unilever business leadership and through Philippine Business for trainee recruits in India spend six weeks Social Progress. a business. living in a village interacting directly with rural consumers to develop a sound Different groups inevitably have differing understanding of their needs. Recognising responsible business perspectives and approaches. Engaging practice in challenging partnerships requires all Listening to employees We are included in two international parties to respect genuinely held beliefs Following a pilot employee survey in stock market indexes, the Dow Jones and expertise, if each is to benefit and 2002, we plan to take the survey Sustainability Indexes (DJSI) and the learn. Sometimes different parties have worldwide in 2004. All employees can FTSE4Good Index Series. In 2003, to agree to disagree so that progress contribute to our improvement process for the fifth year running, we led the can be made. and this tool will give them a clear food industry category of the DJSI. voice on issues such as leadership and An analyst at Dow Jones commented: Our engagement processes include opportunities for personal development. “The successful execution of its formal consumer and customer research, sustainability strategy positions initiating and responding to surveys, Listening to international Unilever among the leaders of its contributions to public policy debates, organisations industry. This is supported by partnership research projects, community Unilever is a founder signatory of the Unilever’s high level of engagement meetings, and formal and informal UN Global Compact, a multi-sector across all three corporate dialogues with NGOs and special interest forum which brings together business, sustainability dimensions – economic, groups. In 2003 we commenced a joint international and civil society environmental and social.” research project with Oxfam to explore organisations to address issues of the links between wealth creation and sustainable development and poverty Unilever was ranked third out of the poverty reduction. We will report on alleviation. We are committed to living top 100 ‘companies that count’ for findings in 2004. Our partnership work out the Compact’s nine founding corporate responsibility in the on environmental issues is summarised in Principles (covering the three areas of second CR Index, published early in our Environmental Report, published human rights, labour and the 2004 in the UK by Business in the alongside this Review. environment) in our everyday business Community (BITC), an independent operations, and furthering the Compact’s business-led organisation. Listening to investors objectives by participating actively in its We have a continuing dialogue with programmes. Unilever also led the food producers socially responsible investment (SRI) and processors sector of the Business analysts, who use a variety of methods We engage with the in the Environment Index – BITC’s to assess our environmental, social and Global Compact annual survey of corporate financial performance. In developing directly in policy environmental engagement – and our worldwide key performance dialogues, in was placed in the Premier League of monitoring, we are seeking a balance particular those companies with an overall score between broad global data on externally on Sustainable greater than 95%. set common indicators and the need to Development focus in depth on material issues of and Development of direct relevance to Unilever and our Small and Medium-Sized Enterprises. We industry sectors (see box). contribute to Compact learning forums, engage in UN partnership initiatives, and encourage advocacy through our senior executives’ speeches and Unilever publications and website. Several of our local businesses are also members of the Compact’s local networks. Examples of the projects and case studies we have submitted to the Compact are available at www.unglobalcompact.org.

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Perspectives on progress

Meeting everyday needs

Unilever products are sold smaller portfolio comprises both brands consumers time and effort, and reducing with global scope or potential and ‘local the amount of water needed for rinsing. in 150 different countries. jewels’ that are strong in a particular In several markets, we offer products in To succeed, we must listen country or region. small, affordable sachets, so lower- to consumers and tailor income consumers can purchase quality Strong brands build greater trust with shampoo, for example, or foodstuffs. In our products to suit the consumer. The brand is the Ghana, Annapurna salt is made available different markets, tastes, guarantee of consistent quality, ensuring in 200g sachets to place it within the habits and pockets. the product will always meet consumer price reach of some of the country’s expectations. Brands are as important for poorest families. Respecting these people on limited incomes who cannot differences, not imposing afford to risk money on unreliable We recognise that the issue of consumer products as they are for discerning, packaging is a complex one, sometimes a single global viewpoint, affluent consumers. requiring us to balance the need to is at the core of our ensure product safety (for example business approach. As consumer tastes and needs vary through tamper-proof fittings) or greatly, products within some affordability (through small portion size), international brands are tailored to meet with social and environmental concerns. People the world over aspire to improve local preferences. For example in Brazil, Unilever's approach to these challenges is the quality of their lives and gain access sales of Sunsilk more than doubled to invest in scientific research and to basic consumer goods. By 2006, following the introduction of new innovation, while working closely with purchasing power in developing and products responding to differing hair stakeholders in local markets, including emerging economies is expected to types in the region. In other cases, where consumers, governments and other exceed that of the developed world. there are distinctive local needs, we have agencies to minimise negative impacts. We believe that central to our continued developed and maintain strong local success in these growing markets are our brands – our local jewels. One example longstanding local presence and in-depth is Joko tea in South Africa, which meets Consumer understanding understanding of consumers’ needs, our consumers’ specific demands for a In seeking to meet and anticipate extensive local distribution networks and strong black tea and is the market leader consumers’ needs, our consumer above all our investment in people – in its sector. science team uses sensory and 90% of management, for example, is behavioural research techniques locally recruited. In a growing number of cases, we are in testing new products and in able to deliver additional social benefits understanding how our products Responding to local needs by reformulating products. For example, can improve people's quality of life. Our purpose in Unilever is to meet the we have enriched products with minerals everyday needs of people everywhere. and vitamins to contribute to An example of our sensory research We invest in consumer research in all preventative healthcare efforts and is our work to translate the ordinary the countries where we operate, to combat deficiencies in local diets. words our consumers use to understand better those needs. As part Working closely with UNICEF, Unilever in describe foods – such as smooth, of our ‘Path to Growth’ business Ghana has launched a brand of salt refreshing and thick – into a strategy, we are reducing the number fortified with iodine called Annapurna. common technical language that of our brands, down from more than Following its success in tackling iodine our product developers can use to 1,600 to 400 by the end of 2004. deficiency in Ghana, in 2003 we improve our products. Using this By concentrating on strong brands, we introduced it in Nigeria, Africa’s largest technique, our researchers identified are able to focus resources and fund salt market. In Asia, we reduced the the type of pea preferred by competitive levels of innovation. This lather of washing powder, saving consumers in the UK. Our Birds Eye brands were adapted to use the pea varieties which reflect this subtle consumer preference. New Annapurna Krrunchy biscuits are fortified with vitamin A and On behavioural research, an zinc to boost children’s immune example is our support for studies systems. Unilever developed these in Ghana with a third party over several years by the University manufacturer in order to keep of Wales, UK, into methods of costs down and to make an helping children to enjoy fruit and affordable product to appeal to low-income consumers. vegetables. This led to the ‘Food Dude Healthy Eating Programme’ – a partnership initiative to improve the diets of British children. See www.fooddudes.co.uk.

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Focus on food International attention The World Health Organisation has these include two social considerations: warned that obesity “has reached the participation of people and is increasingly focusing epidemic proportions globally” with communities, and impacts on the local on food as a health issue. more than one billion adults overweight. economy. Details of our sustainability As one of the world’s National obesity rates vary considerably, programmes are set out in our not always linked to wealth: from below Environmental Report. leading food companies, 5% in China, Japan and some African we recognise our countries, to more than 75% in urban Consistent global approach responsibilities to join Samoa. However, even in low prevalence We market and sell many brands that countries like China, rates in some cities have long assisted consumers in with others in addressing are now almost 20%. maintaining a healthy diet. For example, these concerns. Iglo, Birds Eye and Findus frozen foods Unilever is committed to market tasty provide vitamins from fresh vegetables all foods that help consumers everywhere year round. The Bertolli range promotes achieve nutritional balance. We a healthy Mediterranean diet, and understand that for some the pressures Hellmann’s yoghurt-based mayonnaise of modern lifestyles make it difficult for offers a tasty low-fat dressing. Flora/Becel families to eat a healthy balanced diet. pro.activ products contain plant sterols This can contribute to weight problems that reduce harmful cholesterol. Slim.Fast and disease. However for others, offers a nutritionally balanced way to especially those with low incomes, the manage weight while Lipton provides issue is the availability of safe, nutritious healthy, refreshing beverages based on food at affordable prices. the natural vitality of tea. We also offer many alternatives such as low-fat, low- Sustainable sourcing sugar and low-carbohydrate products. Raw materials and ingredients are also an important focus of attention. Unilever Some of our other brands, such as has a tradition of leadership in Magnum ice creams, are designed to be developing responsible sourcing of the treats for moments of indulgence and materials on which our business enjoyment – which we recognise as part depends. We have taken initiatives for of a healthy, balanced diet that people developing sustainable fishing practices enjoy. At the same time, we recognise through the Marine Stewardship Council our own responsibilities for effective and agriculture through the Sustainable labelling and information about the Agriculture Initiative Platform. We focus nutritional content of our products, to on those areas where we can make a enable consumers to make informed measurable contribution, for example in choices about what they eat. our agricultural programme we have agreed ten key sustainability indicators. Underpinning this approach are product In addition to environmental measures, development capabilities and strong science that increasingly enable us to offer healthier choices without compromising taste, enjoyment and convenience. The nutrition science expertise of the Unilever Health Institute (see box) and our global network of nutritionists provide the evidence and support for the health benefits and nutritional value of our products. We seek to work with healthcare professionals, government agencies and other partners to develop a joint understanding and agree common approaches in nutrition and health programmes. Each of our businesses applies this approach in ways that are relevant for their local markets. 5624 Social Review [19] 6/5/04 4:15 pm Page 9

Local application global partnership with the World In keeping with our commitment to Heart Federation, Flora/Becel is helping meet everyday needs everywhere, we to promote a heart-healthy diet continuously reformulate products to and lifestyle. enhance their nutritional quality. We see this as a growth opportunity in future. Responsible marketing For example, in China, we have launched Our focus on informed consumer choice Knorr soya sauce fortified with iron also includes a responsible approach and in Kenya we are introducing a to marketing our products and Sound science underpins wholemeal maize flour fortified with communicating with consumers. In 2003 our products iron and vitamins. we developed formal food and beverage The Unilever Health Institute (UHI) is marketing principles to codify and make our international knowledge and explicit our established policies. research centre for nutrition, health A fresh brew and vitality. The Institute provides a Unilever Vietnam has developed Working from the basic premise that all strong research and development a new toothpaste after carefully food and beverage marketing materials capability, which allows us to researching local consumer must be truthful and not misleading, the improve our products and their preferences. P/S Green Tea is based principles for food and beverages make nutrition messages on the basis of on Vietnamese consumers’ love of clear that any nutrition and health claims the latest scientific insights. We also green tea. According to oriental should not only have a sound, scientific share this expertise, both with our medicine, it is believed that green basis, but also that food should be own employees in the UHI Nutrition tea helps relieve oral inflammation portrayed in the context of a balanced & Health Academy and with external caused by ‘inner heat’ or an diet. Additional principles cover scientists, healthcare professionals, imbalance of yin and yang. Green advertising to children, for example not the media and consumers. Regional tea extract contains high levels of to mislead about potential benefits from UHI centres in Africa, Asia and Latin fluoride and polyphenols, ingredients consumption of the product, such as America support local insight and known to strengthen teeth, prevent status or popularity with peers, sports innovation in developing and tooth decay and stop bad breath. success and intelligence. emerging markets.

At the fourth annual UHI symposium, held in April 2003, Unilever scientists and marketers met psychologists, educators, medical and consumer experts from all over the world. The objective was to identify the major Working in partnership scientific trends that could influence We continue to research science-based food and beverage products to innovations, seeking to increase and contribute to wellbeing and mental preserve the benefits of natural and physical performance. ingredients, to reduce salt, trans fats, saturated fats and sugar, and to enrich In 2004 the UHI symposium will be products with vitamins and minerals. Innovation and creativity in advertising by on ‘The healthy choice, an easy In the UK, Unilever Bestfoods is working their very nature test the boundaries of choice: from nutrition science to in partnership with other food expectations and sometimes cause consumer action’. manufacturers to reduce the salt concern. In 2003, for example, our content of soups and meal sauces. In Magnum ice-cream range launched a 2003 the consortium achieved a 10% marketing campaign promoting seven reduction, without compromising new flavours, each linked to one of the Differences in social norms and consumers’ enjoyment, and further ‘seven deadly sins’. Although the expectations underline how difficult it is changes are planned. campaign did not breach any advertising to adopt universal rules on advertising. standards, we recognised concerns Unilever is committed to the development Recognising the importance of physical expressed by some church groups in of self-regulatory codes of best practice in activity for health, we certain countries. We learnt that while advertising, which should be clearly encourage active the campaign appealed to many as enforced. We encourage co-operation lifestyles. For light-hearted, it was less welcome to between industry and national advertising example, Flora others in different parts of society bodies to ensure this approach succeeds supports the around the world. and evolves sensitively over time. marathon and through a new

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Focus on health and hygiene When one of Unilever’s Simple hygiene practices such as washing Across the world, Unilever markets a hands with soap can significantly cut the wide range of products that play a role founders, William Lever, incidence of diarrhoea – one of the in improving personal and home hygiene started selling Sunlight major causes of death in the developing – primary barriers against infection and branded soap 120 years world. The effective communication of disease. These include soaps such as this message will be an important part of , laundry products like Omo, ago, he didn’t just found achieving three of the United Nations’ household cleaners such as Cif and a successful business, Millennium Development Goals (reducing disinfectant cleaners like (see he also helped improve infant mortality, improving maternal box Domestos brings hygiene to life for health and combating major diseases). Polish children). Our advertisements, help- the health and life It is also a message that Unilever has lines, education programmes and hygiene chances of ordinary been communicating since it first began messages all help to alert consumers to people in nineteenth- manufacturing soap. the risks and how to tackle them. century Britain. Health and development professionals Unilever works in partnership with the increasingly recognise that providing public and academic sectors at the sanitation and clean water alone is not cutting edge of hygiene science, through enough: individuals need to understand initiatives such as the International the importance of changing their own Scientific Forum on Home Hygiene hygiene practices. As a company in (see box Promoting effective hygiene close touch with consumers’ habits, practice). Bringing the many different preferences and attitudes, we recognise agencies together helps to build our role in helping to deliver such health understanding of the complexities of messages to communities in ways that the issues involved in improving hygiene are easy to understand (see box Clean for all. hands save lives).

In the developed world, in contrast, the Domestos brings hygiene to life ready availability of vaccinations and for Polish children antibiotics, together with longstanding In Poland, Domestos has brought a sanitation, means that the risks of national health education campaign infectious diseases are lower than in the on hygiene in the home to 200,000 developing world. However, risks do six-year old school children each remain, as can be seen from increased year since 2001. gut infections arising in the home environment. Such infection risks Developed in partnership with the are heightened by the trend for Ministry of Education, the more people, particularly the elderly programme educates children about and very young, to be cared for in how to avoid the dangers of the home. invisible bacteria and viruses. Tools include a website, exercise books, videos and stickers for pupils, handbooks for teachers and leaflets for parents. These are backed up by TV and press advertising and posters in major cities, as well as public information in children’s play areas and health advisory centres. 5624 Social Review [19] 6/5/04 4:15 pm Page 11

Clean hands save lives Unilever’s Lifebuoy Swasthya Chetna is ‘Glow-germ’ demonstrator to reveal the single largest rural health and hidden germs. In 2003, the hygiene educational programme programme covered about 15,000 ever undertaken in India. The Lifebuoy villages in eight states of India and brand has set a bold objective to help touched about 70 million people. educate one billion Indians over five Unilever’s annual investment is over years about basic hygiene habits, €750,000. including washing hands with soap. Diarrhoea is the second largest Promoting effective cause of death among children hygiene practice under five in India: a World The International Scientific Forum on Bank study shows that Home Hygiene (IFH) provides a forum using soap for hand- which is working to develop and washing can reduce promote the role of home hygiene incidence of diarrhoea in preventing infectious disease. This by nearly half (48%). non-commercial foundation is funded by Unilever and guided by The programme an independent scientific advisory involves health board. It brings together scientists educators working with and healthcare professionals, to young mothers, school better understand the risks, to students, teachers, promote further research and to government agencies and spread good practice. community leaders to spread the message, using IFH has developed a risk-based games, story boards, songs, approach to home hygiene – drama and a special ‘targeted hygiene’ – not creating a germ-free home, but getting rid of germs in the places and at the Gaining confidence in chemicals We go a step further to ensure times that matter. During 2003, In Europe, concerns have been raised transparency and consistency by the IFH developed a training about the safety of the increasingly working with industry partners resource for professional carers on complex chemicals being included in through the Human and Environmental preventing infection in the home, some products. Unilever is committed Risk Assessment initiative, a voluntary working with the Infection Control to strengthening consumer confidence industry programme to carry out Nurses Association. in how human health and the risk assessments on ingredients of environment are protected. We are household cleaning products. See www.ifh-homehygiene.org. playing an active part in discussions with institutions and key stakeholders about Our comments on REACH to the a new European Chemicals Policy, the European Commission concentrated REACH system, which would change on making the draft policy workable the way chemicals are controlled and on strengthening consumer and tested. confidence, not only through on-pack labelling but through a range of People trust our brands to use every additional information routes. day in their homes to safeguard their health and their children’s health too. We apply rigorous safety standards and strongly believe in providing consumers with risk information in an honest and clear way. In addition to displaying essential safety information on pack labels, more information is available via our consumer care-lines.

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Global business, local benefits Developing and functions, from health and safety to employee development, work towards emerging markets continuous performance improvement, account for around one and share best practice across regions. third of our total sales, and more than two Growing local markets Beyond our own operations, we also thirds of our employees invest in sourcing and distribution chains are outside Europe and and so support the development of small North America. and medium-sized enterprises (SMEs) and local business infrastructures. Involvement in our supply and As the world economy continues to distribution can offer people a first step integrate, we understand that real fears on the ladder of economic opportunity. arise about local impacts. In Unilever we believe that companies, doing Unilever Vietnam, for example, has business in a responsible and sustainable consciously sought to develop a range way, can help to raise the quality of life of sourcing and distribution partnerships and standards of living in some of the with local companies that require the Project Shakti helps women in rural villages poorest parts of the world. This is transfer of technology capabilities. These to develop business skills such as book especially so where business works in partnerships now support 5,500 jobs, in keeping and stock management, enabling partnership with governments, addition to the company’s 2,000 direct them to become small-scale entrepreneurs and to increase their family income. international agencies and others to employees in Vietnam. tackle the wider social, economic and environmental challenges that arise. In India the lives of more than 2,800 women have been changed through Project Shakti creates a new and effective Unilever’s operations create wealth and their involvement with our company sales and distribution mechanism for our generate employment for local people. Hindustan Lever and Project Shakti, a products. The women learn about the They bring the strengths of an rural distribution project. use of soap and detergents in home and international business to benefit local personal hygiene, information they then economies. Local employees are trained Working through women’s self-help pass on to others, improving the overall in advanced performance management groups set up by NGOs and the standard of living in the 12,000 villages systems, have access to world-class government, Hindustan Lever offers now reached by the project. technology and gain experience in rural women free business training, leading-edge consumer research and enabling them to become small-scale In 2003 we initiated i-Shakti, a pilot retailing strategies. entrepreneurs. They can then choose, extension of the scheme to educate if they wish, to become sellers of women entrepreneurs in using IT Wherever they are in the world, Unilever Unilever products. This can generate systems. We offer the spare capacity on operations work to maintain our high a steady income of around €18 per this system to partners from both the standards of responsible corporate month, nearly double their usual public and private sectors, to enable behaviour. As a minimum, our businesses household income, boosting the them to communicate with rural are required to meet all local legislation. woman’s status and dignity, as well as communities in the pilot district of In addition, our individual business her family’s wealth. Nalgonda in Andhra Pradesh.

As part of its focus on developing Capital investment by geographical SMEs, in 2003 Unilever Indonesia's region 2003 Foundation worked jointly with the % of total €1,038 million local university to provide financial, technical and training support to over 300 farmers of black soya beans. Latin America Guaranteed markets and prices secured farmers’ incomes; some 10.2 harvests increased by nearly a third; Asia & Pacific Europe and Unilever Indonesia secured supplies of beans for its Kecap Bango 14.9 45.4 soy sauce. 9.3 Africa, M East and Turkey 20.2

North America

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Progress report and looking forward

This Summary Social Review provides an update on the progress we made in 2003 to achieve the commitments External assessment The Corporate Citizenship Company made in our previous Social Review. acts as a specialist adviser to international corporations that seek to improve their economic, social Commitment in Planned Progress and environmental impacts. We 2002 Social Review achievement in 2003 have advised Unilever since 1999 Consolidate learning from self- 2004 Work on corporate-wide on the development of its assessment to select indicators indicators under CSR strategies. for future reporting development for trialling during 2004 This Summary Social Review provides a limited update on Issue CSR roadmap of good 2003 Partial, to be progress since the last report in practice, drawing on internal and completed in 2004 2002, with latest performance data external expertise and an insight into how Unilever’s Expand local reporting and support 2003 and Achieved – continuing to worldwide assessment of social local managers to include self- 2004 share learning and best impacts is developing. It offers a assessment indicators in reports practice perspective on some current issues of interest to key audiences and Issue guidance for managers on 2003 Supplier code completed. acts as a signpost to further standards for contracted suppliers Roll-out programme to information and case studies on first-tier suppliers 2004/5 the corporate website. Increase transparency of performance 2004 Ongoing. Increasing information on www.unilever.com amount of information We have checked that the contents available on website of this Summary Social Review are consistent with data supplied by Increase participation in social 2004 Ongoing – see page 6 operating companies or derived partnerships through the Global from audited financial systems. Compact and directly We have assessed the correctness Engage with stakeholders to share and Ongoing Ongoing – see page 6 of data trends and received keep abreast of best practice in CSR satisfactory explanations where necessary. We have not verified otherwise unaudited data. Looking forward a longstanding goal to maximise In 2003 we continued to work on effectiveness that is being integrated into Looking forward, Unilever is improving our social responsibility our broader corporate strategy. We are committed to publishing a further performance, and on providing more working with our first-tier suppliers to social review in 2005. For a business information about our business impacts. achieve greater transparency on social that operates in around 100 We recognise that this is an ongoing and environmental standards. countries, there are practical limits journey, where we do not always have on the subjects and level of detail the answers. We are committed to We plan to increase our participation in that can be reported, with a range learning and to managing social social partnerships, including local of stakeholders to consider, local responsibility as professionally as any partnerships and through the Global and international, governmental as other area of our business. Compact framework. We will continue well as voluntary. In our view, some to listen to and learn from our trade-off between breadth and During 2004 we are working to stakeholders, and plan to develop and depth is inevitable. Future reports implement group-wide key performance expand our reporting on our website should show how the company has indicators on social responsibility, which in order to keep these audiences responded to key stakeholders’ will feed into a group-wide social review informed of progress. views on questions of materiality in 2005. In areas as broad as health, and completeness. Ultimately, social safety and diversity we continue to set Tell us what you think reporting can only be effective and new targets to raise our performance. We remain committed to sharing our sustained if it assists internal While this makes sense in terms of experiences, to listening to the response management as well as improves operational improvements, it does make from all those with an interest in our external accountability. the definitions of performance indicators activities, and to making further more difficult, particularly when progress. Please tell us what you think. The Corporate Citizenship Company comparing them to external measures. We can be reached via Contact Us at www.corporate-citizenship.co.uk In the meantime, Unilever companies the Environment & Society section of London, April 2004 continue to increase local reporting on www.unilever.com, where you will also CSR performance. find more information about our brands and activities around the world. Also in 2004 we aim to complete our Alternatively send your comments direct CSR roadmap for local managers, to [email protected].

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Online links and publications

unilever.com www.unilever.com/environmentsociety/socialreporting for case studies and further information on our approach to corporate social responsibility www.unilever.com/environmentsociety for details of our environmental management and sustainability initiatives in fisheries, water and agriculture

2003 Listening, learning, update on progress U

Environmental report

Listening, learning, update on progress Environmental report (2003)

Meeting everyday needs of people everywhere Unilever’s Annual Review and Summary Financial Statement (2003)

Global challenges: local actions Unilever N.V. Weena 455, PO Box 760 An Overview of Unilever’s Approach to 3000 DK Rotterdam Environmental & Social The Netherlands Responsibility (2003) T +31 (0)10 217 4000 F +31 (0)10 217 4798

Unilever PLC PO Box 68, Blackfriars, London EC4P 4BQ United Kingdom T +44 (0)20 7822 5252 F +44 (0)20 7822 5951 Listening, learning, Unilever PLC registered office making progress Unilever PLC Social Review of 2001 data (2002) Merseyside CH62 4ZD United Kingdom

www.unilever.com All our publications are available online

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