Unilever 2006 Annual Report Download - page 67

64 Unilever Annual Report and Accounts 2006
Report of the Directors (continued)
Report of the Corporate Responsibility and Reputation Committee
Terms of reference
In 2006, the Committee revised its name and terms of reference
and made the following adjustments:
• the members of the Committee will include the Executive
Director who chairs the Corporate Responsibility Council;
• the Committee has oversight of and will make
recommendations to the Boards on Unilever’s conduct with
regard to corporate and societal obligations and its reputation
as a responsible corporate citizen;
• it will ensure that appropriate communications policies are in
place and working effectively to build and protect Unilever’s
reputation internally and externally; and
• it will provide oversight and guidance on the environmental
and social impact of how Unilever conducts its business.
The full text of the Committee’s terms of reference can be found
on Unilever’s website at www.unilever.com.
Meetings
In its four meetings held in 2006, the Committee focused on
areview of its terms of reference, implementation of Unilever’s
Code of Business Principles and its supplier code, corporate
responsibility strategy as defined by the newly established
Corporate Responsibility Council (consisting of executive
members from supply chain, SEAC, communications and regional
representatives), Unilever’s role in the Investment Climate Facility
for Africa and policy issues such as biofuels.
The Committee welcomed the visibility and importance given to
the Code by Executive Directors as an important mechanism to
ensurethat Unilever operates as a good corporate citizen. The
Committee reviewed the programme for further embedding of
the code in Unilever’sbusiness operations, including the training
module to keep the code alive and understood.
Unilever’s lead role in the Investment Climate Facility for Africa,
launched at the World Economic Forum in Cape Town in June,
was discussed. This initiative is supported by several companies,
governments, the EU Commission and the World Bank. Unilever’s
commitment to help drive development and growth in Africa
through public/private partnerships was fully endorsed.
The Committee noted good progress made on redefining
Unilever’s corporate environmental strategy.
The important role and impact that values-led product brands
have on the health and prosperity of the communities Unilever
serve was discussed and the CEO leadership role recognised
(Social Innovation: How values-led brands are helping to drive
business strategy, speech by Patrick Cescau, available on Unilever’s
website at www.unilever.com).
Policy issues discussed included Unilever’s strategy on biofuels.
First generation biofuels are made from rapeseed oil and other
ingredients generally used for food, while second generation
biofuels are made from materials including wood, straw, pulp and
waste. Members supported Unilever’s position to improve energy
efficiency and set targets for the use of renewable energy with
the aim of combating climate change causes. Members also
agreed that biofuels can play an important role as an alternative
energy provided they meet the criteria of being sustainable,
efficient and not having a negative impact on public health. It was
agreed that second generation biofuels would meet these criteria.
Unilever should develop a strategy geared towards promoting that
more resource, particularly in R&D, be allocated to accelerating
the introduction of second generation biofuels and other
sustainable, cost-effective sources of renewable energy.
Lynda Chalker Chair of the Corporate Responsibility and
Reputation Committee
Leon Brittan
Antony Burgmans
Wim Dik
Ralph Kugler Executive Director