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72 Unilever Annual Report and Accounts 2005
Report of the External Affairs and Corporate Relations Committee
Remit
The Committee’s specific responsibilities are:
• to review external developments likely to have significant
influence upon Unilever and its ability to conduct its business,
and advise on how best to handle them;
• to report to the Boards on Unilever’s standing in the external
world, particularly among the target audiences identified in the
Company’s Corporate Relations strategy;
• to oversee issues management, with a particular focus on non-
financial risks to the Unilever business and reputation;
• to monitor the effectiveness of Unilever’s corporate relations
activities including communications, publications, media
exposure, government and public relations, and participation in
industry initiatives; and
• to review the Company’s Corporate Relations strategy and the
adequacy of the organisation and resources committed to it.
Meetings
In its four meetings in 2005, the Committee focused particularly
on developments on corporate responsibility, review of reported
breaches of Code of Business Principles, Unilever’s leadership role
in the Transatlantic Business Dialogue and policy issues such as risk
communication and counterfeiting.
The Committee recommended to the Boards to embed and
integrate Corporate Responsibility further into all parts of the
business, and highlighted the potential and impact of product
brands addressing social challenges. Successful examples are Dove
leading on inner beauty, and Lifebuoy addressing hygiene through
its handwashing campaign.
The report on the Code of Business Principles was carefully
reviewed and the Committee was satisfied with the actions taken
to address reported and verified breaches. The Committee agreed
the importance of keeping the Code alive and supported the
proposed regular measurement of understanding of the Code
across the business.
Unilever’s leadership role in the Transatlantic Business Dialogue was
discussed. The Committee considered that the issuance of two
declarations at the EU/US Summit on transatlantic economic
integration and growth, and on fighting global piracy and
counterfeiting, underpinned by the political commitment to
monitor and report progress on concrete actions, were good
outcomes.
Several policy issues impacting Unilever’s business and reputation
were reviewed, and particular attention was given to the growing
problem of counterfeiting for the consumer goods sector. The
Committee re-iterated the importance of fighting counterfeiting,
through an integrated strategy of raising awareness of the
importance of intellectual property protection for future innovation
and investment, and through encouraging joint action by
Government to ensure consumer safety and legal enforcement.
Lynda Chalker Chairman of the External Affairs and Corporate
Relations Committee
Leon Brittan
Antony Burgmans
Wim Dik