Unilever 2008 Annual Report Download - page 27

About Unilever continued
24 Unilever Annual Report and Accounts 2008
Report of the Directors
Unilever is a very culturally diverse business, with 20 different
nationalities represented among our top-level group of 100
managers worldwide.
We have worked to embed diversity firmly into our day-to-day
business decisions, via our talent management and people
processes, from appointments to development. As part of the
Human Resources planning process our business units are
required to develop specific diversity plans that are aligned to the
priorities and needs of their regions and categories. Progress on
implementation of these plans is monitored closely.
We continue to carry out quarterly measurement and tracking of
diversity against our objectives, using the HR Strategy in Action
tool. Gender diversity remains an important priority.
Information Technology
Unilever IT is a global function headed by a Chief Information
Officer, reporting to the Chief Financial Officer, with a strategy
to deliver simple and competitive IT solutions in a cost-effective
way to support the business agenda.
A common technology framework and common standards for
architecture, key technologies, process, information and service
allow Unilever to simplify its IT operations to better exploit
global scale in IT. For example, this common approach facilitates
the move towards regional supply chain organisations and
the development of regional shared service centres, notably
in Finance and Human Resources, which in some cases
are outsourced.
The IT function is a key enabler for the One Unilever
transformation towards a globally aligned business through:
• strategic alliances and partnerships with global suppliers;
• improving IT infrastructure and service levels, whilst
reducing costs;
• building consistent IT capabilities, processes and databases; and
• strategic outsourcing in selected key areas
The implementation of an integrated enterprise-wide information
system in each region in support of the One Unilever
transformation is firmly on track. The Western Europe region
completed its phased implementation, with the last group of
countries going live at the end of 2008. The Asia Africa CEE
region made good progress as a number of countries were added
in a phased implementation towards 2010. The Americas is
already fully operational across the region.
Unilever partners with a selected group of leading suppliers to
develop and maintain a limited number of complementary IT
systems that collectively cover our business needs. This promotes
radical simplification, increased flexibility and agility, faster
implementation and reduced costs.
Intellectual property
We have a large portfolio of patents and trademarks, and we
conduct some of our operations under licences that are based on
patents or trademarks owned or controlled by others. We are not
dependent on any one patent or group of patents. We use all
appropriate efforts to protect our brands and technology.
Property, plant and equipment
We have interests in properties in most of the countries where
there are Unilever operations. However, none is material in the
context of the Group as a whole. The properties are used
predominantly to house production and distribution activities
and as offices. There is a mixture of leased and owned property
throughout the Group. There are no environmental issues
affecting the properties which would have a material impact
upon the Group, and there are no material encumbrances on our
properties. Any difference between the market value of properties
held by the Group and the amount at which they are included in
the balance sheet is not significant. Please refer also to the
schedule of principal group companies and non-current
investments on page 140 and to details of property, plant and
equipment in note 10 on page 99. We believe our existing
facilities are satisfactory for our current business and we currently
have no plans to construct new facilities or expand or improve our
current facilities in a manner that is material to the Group.
Laws and regulation
Unilever businesses are governed by laws and regulations
designed to ensure that products may be safely used for their
intended purpose and that labelling and advertising are truthful
and not misleading. Unilever businesses are further regulated by
data protection and anti-trust legislation. Important regulatory
bodies in respect of our businesses include the European
Commission and the US Food and Drug Administration.
We have processes in place to ensure that products, ingredients,
manufacturing processes, marketing materials and activities
comply with the above-mentioned laws and regulations.
Legal proceedings
We are involved from time to time in legal and arbitration
proceedings arising in the ordinary course of business. However,
although the outcome of legal proceedings are inherently difficult
to predict, we are not currently involved in any legal or arbitration
proceedings which may be expected to lead to material loss or
expenditure in the context of the Group results. Similarly we do
not have any material obligations under environmental legislation.
None of our Directors or Officers is involved in any legal
proceedings which are material as aforesaid. For further
information on certain legal proceedings please refer to ‘legal
proceedings’ within note 25 on page 126.