bài thảo luận văn hóa doanh nghiệp unilever
Thuongmai University Marketing Department ESSAY COMPANY CULTURE UNILEVER Master Vu Thi Thanh Hoa Table of Contents Researched by Team INTRODUCTION .5 Company culture 1.1 Definition .6 1.2 The role of company culture Unilever’s company culture .7 2.1 General introduction of Unilever 2.1.1 History of formation and development 2.1.2 About their brands .7 2.2 Unilever’s company culture 2.2.1 Vision and Mission 2.2.2 Core Values and Development Strategy 2.2.3 Working environment 10 2.2.4 Social activities of Unilever's company culture 12 2.3 Influence of corporate culture on Unilever's business .14 2.3.1 The influence of company culture on internal company 14 2.3.2 The influence of company culture on Unilever's strategy 15 CONCLUSION 18 INTRODUCTION In the current globalization context, besides resources, there is also the exchange between cultures affecting the working style and attitude of enterprises People also pay more attention to cultural values Technical competition in this period no longer occupies a long-term position due to the rapid development of science and technology Instead, it is the key role of company culture in competition, because unlike technology, company culture is difficult or impossible to completely imitate, it will create its own unique features and attractiveness for business The culture of each enterprise will greatly contribute to shaping the personality and demeanor of the people in the business A company with an enthusiastic culture, creativity, responsibility or stagnation of individuals will directly affect the growth or fall of a company So what must the company culture be for the company to operate in a specialized, harsh environment that requires dynamism, creativity and initiative, but still needs the responsibility and connection of each individual? To answer this question, we have chosen to present the topic "Company Culture of Unilever" with the aim of helping people have a deeper insight and understanding of corporate culture, as well as the culture of a particular company Company culture 1.1 Definition Company culture can be defined as a set of shared values, goals, attitudes and practices that characterize an organization Company culture can more simply be described as the shared ethos of an organization It’s the way people feel about the work they do, the values they believe in, where they see the company going and what they’re doing to get it there Collectively, these traits represent the personality — or culture — of an organization A company’s culture influences results from top to bottom A company's culture may be expressly and deliberately cultivated, or it may simply result from the accumulation of decisions made over time With a strong company culture, employees understand the expected outcomes and behaviors and act accordingly Some companies have a team-based culture that emphasizes employee participation on all levels, while other businesses have a culture where formal, traditional, or hierarchical management is valued 1.2 The role of company culture Firstly, organizational culture creates the brand image of the organization The work culture gives an identity to the organization because it represents the way you business In other words, it determines how your people and customers perceive you Secondly, company culture is important to employers, because workers who fit in with the company culture are likely to not only be happier, but more productive as well When an employee fits in with the culture, they are also likely to want to stay with that company for longer, which reduces turnaround and the associated costs of training new hires Thirdly, culture shapes the way employees interact with their workplace 66% of job seekers consider a company’s culture and values the most important factor when considering career opportunities (source) If they work for a company with a strong culture that aligns with their own beliefs and attitudes, they’ll be more likely to work hard and remain with the company for the long haul If, on the other hand, the company’s culture does not reflect their own personal feelings, they’re much more likely to leave — or worse, remain with the company but underperform Additionally, the work culture promotes healthy relationships amongst the employees It also promotes healthy competition in the workplace Fourthly, the culture of an organization represents certain predefined policies that guide the employees and give them a sense of direction at the workplace Every individual is clear about his roles and responsibilities in the organization and knowhow to accomplish the tasks ahead of the deadlines Additionally, such policies help mold positive habits into individuals which makes them successful professionals It is the culture of the organization which extracts the best out of each team member Unilever’s company culture 2.1 General introduction of Unilever 2.1.1 History of formation and development Unilever is a leading multinational company specializing in fast-moving consumer goods (FMCG: Fast Moving Consumer Good) The company is headquartered in two cities, London in the UK and Rotterdam in the Netherlands Explaining this, Unilever is the result of the merger of two businesses Lever Brothers of the UK and Margarine Unie of the Netherlands in 1930 The products that Unilever specializes in manufacturing are very diverse, from cosmetics, laundry chemicals bleach to toothpaste, shampoo, food and more Currently, Unilever is present in more than 190 countries and territories around the world, in which Unilever entered the Vietnamese market in 1995 Over 20 years of establishment and development, Unilever has achieved many great achievements in Vietnam Owning a network of more than 150 distributors and more than 300,000 retailers, Unilever Vietnam has provided direct jobs to more than 1,500 people as well as more than 15,000 indirect jobs for third parties, suppliers and suppliers distribution 2.1.2 About their brands From long-established names like Lifebuoy, Sunlight and Pond’s to new innovations such as the Pureit affordable water purifier, their range of brands is as diverse as their worldwide consumer base Unilever has more than 400 brands, 12 of which generate sales in excess of €1 billion a year Many of these brands have long-standing, strong social missions, including Lifebuoy’s drive to promote hygiene through hand washing with soap, and Dove’s campaign for real beauty They’ve also won a wealth of advertising industry honors at the prestigious Cannes Advertising Awards, including being named 2010’s Advertiser of the Year 2.2 Unilever’s company culture 2.2.1 Vision and Mission Vision Unilever’s corporate vision is “to make sustainable living commonplace We believe this is the best long-term way for our business to grow.” This vision statement emphasizes sustainability, especially among consumers Unilever's vision will vary from country to country but it’s based on the common Unilever global vision In particular, Unilever's vision in Vietnam is making the life of Vietnamese people better Unilever came to Vietnam with the desire to create a better future for the people here In addition, Unilever wants to inspire people to join hands to build a better society Mission Unilever has a strong commitment to the development of the societies where it operates Unilever’s mission is “to add vitality to life We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life” Through its products, Unilever wants to help Vietnamese people have a good life in all aspects, from health, appearance to spirit, and help them enjoy life In addition, Unilever is determined to build a successful and reputable business with profitable growth, long-term value creation for consumers, employees, partners and shareholders, and responsible contributions to the community Therefore, Unilever’s mission statement and vision statement are a basic foundation for the success of the company’s consumer goods business The mission statement indicates the strategic approaches of the company and determines how the business addresses the needs of its target consumers On the other hand, the corporate vision statement provides the development direction of the organization and presents broadly what the company needs to to succeed in the long term The vision and mission statements provide a focal point that helps to align everyone with the organization, thus ensuring that everyone is working towards a single purpose This helps to increase efficiency and productivity in the organization 2.2.2 Core Values and Development Strategy Unilever’s Core Values Core values are the deeply ingrained principles that guide all of a company’s actions, and serve as its cultural cornerstones They are the source of a company’s distinctiveness and must be maintained at all costs There are four core values at Unilever, including are integrity, respect, responsibility, and pioneering - Integrity: Unilever believes that integrity is about working in the right way Unilever’s Business Integrity programme includes clear policies, guidelines, and related learning materials, as well as robust procedures and controls to help them prevent, detect and respond to any inappropriate behaviour Their focus on business integrity makes Unilever stronger It helps them to attract, retain and engage the best employees, and better able to select the right suppliers and business partners And it also helps them grow sustainably and deliver on their strategy - Respect: Business can only flourish in societies where human rights are respected, upheld and advanced Unilever recognizes that each business has the responsibility to respect human rights and the ability to contribute to positive human rights impacts Unilever is committed to ensuring that all employees work in an environment that promotes diversity and where there is mutual trust, respect for human rights and equal opportunity, and no unlawful discrimination or victimization - Responsibility: Unilever takes responsibility for the people, communities and planet in which they operate They aim to improve the health of the planet; improve people's health, confidence and well-being; contribute to a fairer, more socially inclusive world Unilever strives to be a trusted corporate citizen and, as an integral part of society, to fulfil their responsibilities to the societies and communities - Pioneering: Unilever pioneers in making sustainable development popular They are committed to the pioneering spirit because it created them and still drives them as a business It gives them the passion for winning and for creating a better future It means that they are always willing to take intelligent risks Unilever’s core values provide the foundation on which to take their business forward A pioneering spirit, stretching business ambitions and a drive for continuous improvements form part of Unilever’s DNA, but they must always be underpinned by a commitment to operate with integrity and transparency, respect of human rights, and responsibility for the societies and environments in which the company operates Only by integrating the core values into the business way can create truly sustainable growth Development strategy Unilever's development strategy is built on the Sustainable Development Plan with the ultimate aim of creating a sustainable life for everyone in the world Unilever committed to making continuous improvements in the management of their environmental impact and to the longer-term goal of developing a sustainable business Specifically, Unilever advised on a long-term development strategy for its entire category and brand to bring beneficial growth to all stakeholders, thereby being able to make their vision realize 2.2.3 Working environment Working mode: All Unilever companies comply with local laws while also adopting global Unilever standards for occupational health and safety, consumer safety and environmental care This approach stems from the values outlined in Unilever’s Corporate Purpose and governed by the standards in the Code of Business Principles (CBPs) and the Company’s Business Partner Code The Company has instigated many programmes to ensure the safety of its employees All of its manufacturing facilities have received certificates on Occupational Health and Safety Assurance System (OHSAS) 18001 Unilever VietNam also works closely with Trade Unions with a view to improve understanding of its employees on policies implemented by Unilever VietNam “Flexible working” policy Unilever employees have the opportunity to be exposed to the "environment of the future" from the first time they enter the group Instead of being introduced to a department and fixed seats, the "new ghost" is allowed to choose the work position as you like, as long as it remains efficient Launched in 2009, the entire Unilever group must adhere to three principles of "flexibility": - Allow employees to change both location and work time, as long as the task is completed Minimize the number of business trips The management rank will be graded "support employees to work flexibly" each year Many other corporations have also announced that they have a "flexible policy", however, they just force all new employees into a cluttered and cramped area, while the leadership is always "in a quiet" room Despite insisting that all processes are "flexible," meetings must be booked several weeks in advance if they are to be fully present, while portals are never interested and developed But at Unilever, "flexible working" is taken extremely seriously Working space: The office is designed with many working areas, open spaces with different forms and styles for employees to freely choose Employees can choose the space that best suits the job they are doing as well as combine with other experiences in the office to help them be more inspired and connected with the company The workspace design reduces the number of fixed desks and increases support areas as meeting rooms, discussion areas, cafeteria, etc The variety of different workspaces allows employees to freely choose the workplace as long as they feel the maximum support, the suitability of their job and the most comfortable working experience Individual spaces for individuals are also reduced and replaced with common areas to encourage employees to interact with each other Office design expands co-working areas with many different spatial forms: quiet space with high soundproofing standards for employees who need to focus, avoid noise; open space for groups of employees working together, encouragement of maximum interaction; and diversified meeting room areas to meet employees’ needs Especially, after stressful working hours, Unilever's members can freely choose the right gym for them such as: yoga, aerobic and even have a personal trainer for you Unilever office is designed to comply with LEED (Leadership in Energy & Environmental Design) standards of the US Green Building Council (USGBC), meeting the criteria for using environmentally friendly materials, saving energy, reducing emissions, using renewable energy in an optimal manner and improving working quality At the same time, Unilever designed a green office by taking advantage of natural light with the central hub around the floor and allocating many trees in the workspace Welfare regime: - Salaries and Wages Unilever VietNam has designed and developed a competitive remuneration package The Company carries out an annual salary survey, whereby an open discussion is held with staff about personal and career development plans in order to have proper remuneration adjustments - Retirement and Pensions A collective labor agreement has been signed between Unilever VietNam and employees’ representatives The agreement covers policies on pensions, leave and other collective welfare benefits All Unilever VietNam employees benefit from the retirement programme, which in many other companies may only benefit senior managers - Medical and Other Benefits All insurance benefits regulated by the Government are granted Beyond that, since May 2001, Unilever VietNam has been the first company to offer medical insurance to every employee The new personal medical insurance packages, called the “Unikhoe” programme, is a new Unilever VietNam initiative, which allows employees to use services at the best hospitals and clinics in Vietnam for health checkups and treatment The Company has also developed the “Unilever VietNam is your companion for your whole life” programme for its employees Monthly gatherings are held to provide information, exchange experiences and raise awareness of related issues such as safety, health care, and the environment Financial support is offered to certain staff and managerial levels through interestfree motorbike and housing loans deductible from employees’ monthly salaries To support the Government campaign on wearing helmets, Unilever VietNam provides free helmets to its employees, and their children under five years of age, to ensure their safety while travelling by motorbike Thus, as noted above, Unilever VietNam has been a leader or a pioneer of many welfare policy measures for its employees, such as medical insurance for every employee and their families, which make them better off Internal activities: Unilever organizes many programs to train and develop talents at the enterprise With activities on recruiting talent in Vietnam, Unilever offers programs such as: Unilever Future Leaders Program, Unilever Future Leaders' League for fresh graduates Management Trainee Program (for Future Leaders) to train interns as employees for Unilever Unilever gives the opportunity to help each employee (old or new) learn, experience working in the business At the same time, the Strategic Partnership Department expands opportunities to work and study to higher positions such as team leader, department head, and leader Corporate culture is also promoted: Fair, respectful, boldly empowering, and always welcoming new things, new people and different opinions It has helped Unilever always develop corporate culture and connect employees with each other, different departments 10 2.2.4 Social activities of Unilever's company culture The progress of Unilever is linked to its organizational culture and the kinds of activities and policies leaders have implemented over time Typical among them cannot be ignored Social activities Unilever has been committed to Corporate Social Responsibility for over 16 years to improve the economic, social and environmental values of the different nations they operate Companies have a duty to manage all aspects of business in a responsible and sustainable way In so doing, they make a substantial contribution to society We can observe through main aspects: environmental, community, charitable Unilever's environmental activities Unilever is committed to running its business in an environmentally sound and sustainable manner Accordingly, it aims to ensure that its processes and products have the minimum adverse environmental impact commensurate with the legitimate needs of the business In Vietnam, Unilever has announced the Unilever Sustainable Living Plan lasting from 2010 to 2020 with three big goals: - First: Improving health and well-being for more than 20 million people in Vietnam; Second: Reducing environmental impact by half associated with the making and use of its products; Third: Enhancing livelihoods for millions of people in Vietnam as Unilever grows its business To facilitate these goals, Unilever has actively implemented the For a Healthier Vietnam programme in collaboration with the Ministry of Health, and the Ministry of Education and Training Unilever has so far reached more than 21 million people through its initiatives - - Unilever has a ‘zero waste mind-set’, and since the launch of the Unilever Sustainable Living Plan in 2010, its supply chain has delivered significant reductions in the amount of waste sent to landfill from our operations The Germ-free Toilet Journey by Vim has improved sanitary conditions for 4.7 million people in Vietnam Specifically, Unilever has also provided support to build nearly 40,000 clean toilets in the community as well as build and upgrade nearly 1,000 toilets for primary schools across the country 11 Meanwhile, Lifebuoy, to protect the lives of Vietnamese people by promoting hand washing with soap, has reached 31 million people via its communication and other practical activities through the For a Healthier Vietnam programme Unilever's community activities Unilever has been making efforts to benefit the community all over the world Unilever, putting purpose at the core of business to help create transformational change for children UNICEF has worked with Unilever since 2012, partnering with brands including Domestos, Dove, and Lifebuoy to help improve quality of life and create sustainable change for children worldwide Since 2012, Unilever has committed over US$30 million to support UNICEF’s WASH, education, and gender programs This generous donation, alongside the provision of Unilever’s in-kind support and expertise, enables UNICEF and Unilever to drive transformational change for communities and children across different crucial areas, from preventing diseases through improved sanitation, to empowering adolescents with the skills they need to build their self-confidence - In 2020 In Viet Nam, Some 250 of the top regional executives from Unilever, coming from across South East Asia and Australasia, spent the day visiting Vietnam markets, and offering some initiatives, such as upgrading toilets in schools, teaching children good hygienic behaviors to prevent diseases such as hand washing with soap, teeth brushing and cleaning key community spaces The Unilever personnel also spent time educating small scale traders about how to better serve their customers - The Protecting Vietnamese Smiles programme by P/S has provided education on oral healthcare, free dental check-ups, and treatment for over 6.8 million people nationwide - With Omo, every stain has a great story, a valuable lesson, and an unforgettable memory behind it Stemming from that belief, Omo has begun the campaign to ensure that one million Vietnamese children can be confident in getting dirty and playing safely The initiative aims to provide kids with the necessary knowledge and skills so that they can play freely in nature Unilever's charitable activities ‘Zero hunger’ is one of Unilever’s global sustainable development goals Some typical activities: To support the opening of the new Nightingale Hospital in East London, Unilever donated an initial 3,000 care packages for nurses which included products such as 12 Simple face wipes, Alberto Balsam shampoo and conditioner and Vaseline hand lotions and lip balms and is donating an additional 5,000 Dove care packages Additionally, Unilever donated PG tips, healthy Graze snacks and easy to eat food pots including Pot Noodle and Prep Co for use by staff at the hospital Unilever has also worked with Oxfam to support the setting up of new community food banks and the re-distribution of surplus food and other Unilever products in the UK In the US, they support Feeding America, the leading domestic hunger-relief charity, and its nationwide network of food banks As part of its global commitment to support the fight against the coronavirus pandemic, Unilever Vietnam committed to donating VNĐ50 billion (the US $2.245 million) to partner with the Ministry of Health (MoH) and the Ministry of Education and Training to implement initiatives that will protect people through hand-washing and surface-cleaning product donations and hygiene habit education programme Moreover, Unilever Vietnam has pledged to donate 550 tons of products to more than 1.6 million people in need in 3,000 schools, hospitals, and isolated areas, especially front-liners such as doctors, nurses, teachers, and volunteers The donation includes personal care and hygiene items, home cleaning and sanitization products and food product 2.3 Influence of corporate culture on Unilever's business 2.3.1 The influence of company culture on internal company a Leader Unilever is a multinational corporation, but almost all the directors of each branch in each country are local This has a good influence on the process of building Unilever's company culture at the branch The director is the person who directly builds the company's culture, because they are local, they can easily build Unilever's culture to best suit their country and make it easy for Unilever to enter the business and business in new markets b Employees in the company Every Unilever employee is deeply trained in company culture From the day they started working at Unilever they were taught to behave in a cultured way, to think openly about any problem they encountered Visiting Unilever's office you will always notice the positive energy radiating from each employee here It is the result of a healthy, positive company culture that every Unilever employee strives to build and maintain c Recruitment strategy 13 Unilever seeks to recruit these workers fit the vision and mission of the company Any candidate before applying to Unilever needs to know and have undergone basic training about Unilever's company culture If someone applies to Unilever, it means they have a good understanding of the company's culture and they feel they fit the culture here d Working environment Unilever's working environment gives employees freedom and openness There they not force employees to wear uniforms but can wear whatever they want as long as it is suitable for the local culture In each team, members can freely exchange ideas with each other and express their views Unilever is a working environment that always has a culture of listening and contributing to employees 2.3.2 The influence of company culture on Unilever's strategy a Distribution strategy Thinking like a local is the way Unilever uses to penetrate the market of each country Visit each country to learn their sales culture so that you can organize the distribution of goods in the most popular way of that country This is the result of leveraging local leadership For example, when coming to Vietnam, understanding that the Vietnamese retail market loves the traditional marketing style, the distribution staff needs to bring products to the store for review, so Unilever has sent people to offer products at more than 100,000 points of sale retail throughout Vietnam b Product strategy Always carrying the attitude of a visitor to find out about other people's homes, Unilever learns and buys a number of brands that are suitable for the culture of the country and they even modify some of their products to may be more relevant to that country Typically, Sunsilk shampoo contains locust extract - a folk shampoo of Vietnam, this brand has also been very successful, accounting for 80% of sales of Sunsilk shampoo brand c Advertising strategy Like other fast-growing consumer goods companies, Unilever Vietnam has two main segments in its marketing strategy system: “Above-the-Line” and “Below-theLine” (indirect promotion) Above-the-Line is activities to promote products on television, newspapers, etc to achieve one or a number of certain purposes, such as informing consumers of new products, providing instructions on how to use the products Thanks to the timely, 14 appropriate and timely direct advertising campaign, Unilever Vietnam has made great strides in the market in a short time And Below-the-Line is "all promotional activities not through the media" (according to M Christopher, Marketing Below-the-Lines, George Allen & Urwin, London) or in other words "activities" side-selling, combining personal selling and advertising into one powerful force of persuasion” (JF Engel, HG Wales and MR Warshaw, in Promotional Strategy, RD Irwin, Homewood, Illinois.) But in reality, the Below-the-Line Promotion program must rely on advertising in the mass media and must be based on targets, the nature of the product, the type of distribution channel used and target customers d Pricing strategy For each country Unilever has a pricing strategy that best suits that country Recognizing that 80% of Vietnamese consumers live in low-income rural areas, Unilever Vietnam has set a goal of reducing production costs in order to bring reasonable prices to consumers The company relied on local small businesses to find local substitutes for some of the imported ones, which both reduced purchasing costs and paid less import tax e HR strategy and Volunteering activities Unilever is not only doing business but also actively doing social work in all countries where it is located Developing human resources training human resources for future availability is always the best way that Unilever can develop in each country During its operation in Vietnam, in addition to its human resource development policy, Unilever has always been at the forefront with many humanitarian and community development activities Fully aware of its role in the development of Vietnamese society, the Company has spent a lot on humanitarian commitments, mainly focusing on the fields of health, education, poverty alleviation and disaster prevention such as the program "P/S protects the smile of Vietnam", the program "Lifebuoy" to prevent leprosy or the program "Vim", a forum for family hygiene, epidemic prevention 15 CONCLUSION Unilever grows its business by building on its strengths – combining its size and expertise with its knowledge of consumers in different markets to continue to deliver the brands and services that people want and need The sustainable business model focuses on developing Unilever's corporate culture and continues to strive to develop its contributions to the business Unilever has also strengthened the business by helping to promote Unilever corporate culture, growth and credibility, and reducing risks and costs Unilever wants to make a positive impact in many ways: through Unilever culture, commercial activities and relationships, volunteering activities and social engagement activities Unilever is constantly committed to improving its culture and protecting the environment and strives to achieve its longer-term goal of developing a sustainable business Unilever believes that profitable growth must also be responsible growth That option is at the heart of the business model, based on sustainable development and USLP It guides and exemplifies Unilever's corporate culture in how it does business and responds to growing consumer demand for brands that act responsibly in a resource-rich world 16