Unilever 2004 Annual Report Download - page 17

14 Unilever Annual Report and Accounts 2004
About Unilever
(continued)
In December 2004, we joined forces with UNICEF to tackle UN
Millennium Development Goal 4, which aims to reduce mortality
rates among children under five by two-thirds over the next
ten years. We will work closely with UNICEF and bring to the
partnership our knowledge of nutrition and hygiene. We have
proven ability in delivering affordable products to low-income
consumers and experience of contributing to sustainable
development in different regions of the world.
Interest in how we manage our own operations now extends
to supply chain relations. We want to work with suppliers who
have values similar to our own and work to the same standards
as we do.
As part of our commitment to this we have developed a Business
Partner Code, aligned to our own Code of Business Principles. It
comprises 10 principles covering business integrity, and
responsibilities relating to employees, consumers and the
environment. We are working towards positive assurance of
adherence to the Code from all first-tier suppliers by the end
of 2005.
The values that inspire us and govern the way we manage our
business are clearly set out in our Corporate Purpose and Code of
Business Principles. They provide a framework within which our
managers can operate and be held accountable. The Code sets
out our respect for the human rights of our employees, including
freedom of association and labour union membership. Some of
our employees are members of such unions.
In 2004, we completed the world-wide roll-out of a confidential
ethics hotline, introduced as a way for our people to raise
concerns relating to our business principles. We are carrying out
‘pulse’ checks to ensure that employees are aware of the hotline
and understand its importance.
We communicate our performance and the progress we are
making through the Environment and Society section of our
website and publish summary social and environmental reports.
We are also producing a series of articles, ‘Global Challenges:
Local Actions’, on how we are working with a range of external
partners to tackle issues such as nutrition, hygiene and
sustainable development. For more information visit
www.unilever.com/ourvalues/environmentandsociety/.
Competition
We have a wide and diverse set of competitors in our consumer
goods businesses. Many of our competitors also operate on
an international scale, but others have a narrower regional or
local focus.
Competition is a normal part of business. We aim to compete
and give value to our consumers, customers and shareholders
in three ways:
• by continually developing new and improved products;
• by sharing our innovations and concepts with our businesses
all around the world; and
• by striving to lower the cost of our sourcing, manufacturing
and distribution processes while 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 support the fuller implementation of the Single European
Market and inclusion of other European countries in the European
Union.
Distribution and selling
Unilever’s products are generally sold through its sales force and
through independent brokers, agents and distributors to chain,
wholesale, co-operative and independent grocery accounts, food
service distributors and institutions. Products are distributed
through distribution centres, satellite warehouses, company-
operated and public storage facilities, depots and other facilities.
Exports
We sell our products in nearly all countries throughout the world
and manufacture in many of them. We export a wide range of
products to countries where we do not make them. For example,
inside the European Union we make many of our products in only
a few member countries, for sale in all of them. The chosen
manufacturing configuration is generally determined by an
optimised regional sourcing strategy which takes account of
requirements for innovation, quality, service, cost and flexibility.
Seasonality
Certain of our businesses, such as ice creams and prestige
fragrances, are subject to significant seasonal fluctuations in sales.
However, Unilever operates globally in many different markets
and product categories. No individual element of seasonality
is likely to be material to the results of the Group as a whole.