Unilever 2009 Annual Report Download - page 67

Report of the Corporate Responsibility and Reputation Committee
64 Unilever Annual Report and Accounts 2009
Report of the Directors Governance
Terms of reference
The Corporate Responsibility and Reputation Committee oversees
Unilever’s conduct as a responsible multinational business. It is also
charged with ensuring that Unilever’s reputation is protected and
enhanced. Inherent in this is the need to identify any external
developments which are likely to have an influence upon Unilever’s
standing in society and to bring these to the attention of the
Boards.
Pursuant to this remit the Boards have expressly delegated to the
Committee day-to-day oversight of the conduct of Unilever’s
response to the ongoing investigations by the European
Commission and other national authorities into alleged
infringements of competition law. The Chief Legal Officer and
external counsel report to the Committee in this regard and
matters are then considered by the full Board. For further
information please refer to ‘Legal proceedings’ on page 122.
The Committee comprises four independent Non-Executive
Directors: Leon Brittan (Chairman), Hixonia Nyasulu, Narayana
Murthy and Louise Fresco.
To ensure that it is kept up to date with current and emerging
sustainability issues, the Committee benefits from the insights of
two groups. The first is the Unilever Sustainable Development
Group (USDG) – five experts from outside the Group who advise
on Unilever’s sustainability strategy. The second is CRISP, the
Corporate Responsibility, Issues, Sustainability and Partnerships
group of senior executives from across the business. Both groups
are chaired by Vindi Banga, President Foods, Home and Personal
Care and member of the Unilever Executive.
The Committee’s terms of reference and details of the Unilever
Sustainable Development Group are available on our website at
www.unilever.com
Meetings
Meetings are held quarterly. The Committee Chairman reports the
conclusions to the Board.
In 2009 the Committee continued to offer its advice on the
development of Unilever’s sustainability strategy. Members were
updated on the Group’s sustainability priorities (climate change,
water, sustainable sourcing and waste) and commented on
proposals for creating business-wide environmental targets.
Topics discussed in 2009 included: competition-related issues;
food labelling and health claims; genetically modified organisms in
the food chain; packaging; palm oil, deforestation and climate
change. Particular attention was given to the topics set out below.
Code of Business Principles and Business Partner Code
The Committee scrutinises two important codes of practice – the
Code of Business Principles and the Business Partner Code – to
ensure that they remain fit for purpose and are appropriately
applied. It complements the role of the Audit Committee, which
considers the Codes as part of its remit to review risk
management.
The Committee is responsible for the oversight of both codes.
Implementation rests with the Unilever Executive who are
supported by the Corporate Code Committee and the global code
compliance organisation. Implementation is further supported by
the legal function for the Code of Business Principles and the
supply management function for the Business Partner Code.
Supply management is also responsible for gaining assurance from
suppliers that they adhere to the Business Partner Code.
Code of Business Principles
The Code of Business Principles sets out the standards of conduct
to which we expect our employees to adhere. It is complemented
by a ‘Management Commentary’ which provides guidelines for
employees on practical implementation of the Code of Business
Principles. In 2009 Unilever’s Global Code Officer conducted a
benchmarking exercise on the Commentary, leading to clearer and
more detailed guidance on topics such as gifts and entertainment.
In 2009 existing training on the Code was strengthened by the
roll-out of a new online training module and separate training
sessions on compliance with competition policy.
The Committee endorsed these developments as they are essential
in ensuring that Unilever’s standards are well-understood and
respected by employees.
Alleged infringements of the Code of Business Principles are
monitored by the Committee. This responsibility includes alleged
infringements of competition law.
Business Partner Code
Unilever’s Business Partner Code sets the standards that we expect
of suppliers in areas such as health and safety at work, business
integrity, respect for labour standards, consumer safety and
safeguarding the environment.
The Committee has monitored the development and
implementation of the Code over recent years. The Code is
supported by an Assurance Policy that sets out the operational
standards needed from suppliers to deliver the Code’s
commitments.