Unilever 2000 Annual Report Download - page 25

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23
Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors
Operating review - other information
Technology and innovation
To get the most benefit from investment, all research and
development is now aligned with our leading brands. Our
Path to Growth strategy requires us to exploit the potential
of these brands to the full, so our investment will now be
aimed at fewer, larger, projects.
In 2000 w e spent 1 187 million on research and
development: 2.5% of our turnover. We filed 423
new patent applications.
Information technology
The internet continues to change the way we do business.
In the US, we are trialling the Ariba internet buying system,
allowing us to order many items – from hotel rooms to
delivery vans – quickly and simply, at bulk-buy rates.
We have joined w ith other leading consumer goods
manufacturers to form Transora, an online trading network.
We believe that such netw orks w ill reduce our business
costs and improve efficiencies.
We are also working w ith distributors and other customers
to sell products over the net. We have already started selling
frozen food online directly to restaurants – making despatch
easier and quicker.
Internet technology also helps us to share innovation and
best practice around the world. Our internet capability
depends on sophisticated internal systems. These are being
harmonised progressively to improve efficiency and save costs.
Environmental responsibility
In 2000 w e were recognised as one of the world’s most
environmentally responsible businesses – coming first in
our industry sector of the Dow Jones Sustainability Index.
In our search for sustainable development we focus on three
areas w here we can make a real difference – fish, water and
agriculture. We are on course to source all fish from
sustainable fisheries by 2005.
For maximum impact, we work with partners around the
world. For example, we played a key role at the 2000 World
Water Forum in The Hague, leading the international CEO
panel. On agriculture, we set up an expert external advisory
board. Its task is to advise and inform our business and
suppliers on new sustainability standards.
We are reducing our overall impact on the environment,
while increasing manufacturing output.
Our latest Environment Report is available online at
www.unilever.com.
Responsible corporate behaviour
Unilever has a strong tradition of actively engaging with
the societies in which we operate. We believe that by doing
business in a responsible and sustainable w ay w e play our
part in extending prosperity and providing opportunities
for all.
During 2000 we developed a framework to evaluate our
performance as a responsible corporate citizen. We recently
published our first Social Review w hich reports on our
activities, highlights our achievements and maps the way
forward. It can be viewed on our website, at
www.unilever.com.
Our commitment to responsible corporate behaviour is
underpinned by our Code of Business Principles. The Code
sets out the basis for worldw ide operational standards, such
as product quality and employee health and safety, and
deals with such issues as conflicts of interest and bribery.
All our company chairmen are required to re-affirm their
adherence to these principles each year.
Around the world Unilever companies spent more than
50 million on community involvement. Working in
partnership with others, we support projects that improve
healthcare, raise levels of education and encourage local
economic and cultural activity. In 2000, Unilever was a
founding signatory of the UN Global Compact, which aims
to foster practical ways for companies to contribute to w ider
social development.
Competition
We have a wide and diverse set of competitors in our
consumer goods businesses. M any of our competitors
also operate on an international scale, but others have
a narrower regional or local focus.
Competition is intense and challenging. We aim to
compete and give value to our consumers and customers
in three ways:
• by continually developing new and improved products;
• by sharing our innovations and concepts w ith our
businesses all around the world; and
• by striving to lower the cost of our sourcing,
manufacturing and distribution processes whilst still
maintaining, and improving, the quality of our products.
We support efforts to create a more open competitive
environment through the liberalisation of international
trade. We also support the fuller implementation of the
Single European Market and inclusion of other European
countries in the European Union.
Exports
We sell our products in nearly all countries throughout
the w orld and manufacture in many of them. Inside the
European Union we make many of our products in only
a few countries, for sale in all of them.
We also export a w ide range of products to countries
where w e do not make them. We often use this export
trade to develop new markets before building local
manufacturing facilities, usually through our facilities
in neighbouring countries.