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48
REPORT OF THE CORPORATE RESPONSIBILITY AND REPUTATION COMMITTEE
Terms of Reference
The Corporate Responsibility and Reputation Committee
overseesUnilever’s conduct as a responsible multinational
business. The Committee is also charged with ensuring that
Unilever’s reputation is protected and enhanced. A key element of
the role 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.
The Committee comprises three independent Non-Executive
Directors: Sir Malcolm Rifkind, Hixonia Nyasulu and Louise
Fresco. Sir Malcolm Rifkind chairs the Committee. Keith Weed,
Chief Marketing and Communication Officer and a member of the
Unilever Leadership Executive, attends the Committee’s
meetings.
The Committee’s discussions are informed by the perspectives of
Unilever’s two sustainability leadership groups. The first is the
Unilever Sustainable Development Group (USDG) – five experts
from outside Unilever who advise our senior leadership on
thedevelopment of its sustainability strategy. The second is the
Unilever Sustainable Living Plan (USLP) Steering Team, the group
of senior executives who are accountable for the delivery of the
USLP. The insights from these groups help to keep the Boards
informed of current and emerging trends and any potential risks
arising from sustainability issues.
The Committee’s terms of reference and details of the Unilever
Sustainable Development Group are available on our website at
www.unilever.com/investorrelations/corp_governance.
Meetings
Meetings are held quarterly and ad hoc as required. The
Committee Chairman reports the conclusions to the Boards. Four
meetings were held in 2011.
The Committee’s agenda comprises a number of standing items.
These include the Code of Business Principles, litigation and the
USLP. In 2011, Committee members requested that product and
occupational safety be added to these standing items.
In addition, the Committee reviews a number of strategic topics.
For example, in 2011 these included a review of the system
Unilever uses to manage issues and reputational risks and a
discussion of animal testing.
Code of Business Principles and litigation review
The Committee is responsible for the oversight of the Unilever
Code of Business Principles and associated Code Policies, which
set out the standards of conduct we expect of our employees.
The Committee ensures that the Code of Business Principles and
Code Policies remain fit for purpose and are appropriately
applied. Inthis regard it complements the role of the Audit
Committee which considers the Code as part of its remit to review
risk management.
During the year, members of the Committee endorsed the
refinement of the system for collating statistics relating to cases
under the Code of Business Principles and Code Policies. The
improved visibility of this data means that management is able to
monitor infringements more closely and identify trends.
Pursuant to the remit of the Committee, the Chief Legal Officer
reports to the Committee on litigation matters which have a
reputational impact including environmental issues, labour
relations and competition law compliance. These matters are
then also considered by the full Boards. For further information
on ‘Legal proceedings’ please see note 20 on page 103.
Unilever Sustainable Living Plan
The Committee monitors progress on the USLP. The USLP is at
the heart of Unilever’s aim to double the size of its business while
reducing its environmental impacts and is available on our
website at www.unilever.com/sustainability.
The Committee reviews any potential risks that could damage the
credibility of the USLP, and each of its meetings addresses a
different element of the USLP. In 2011 the governance
mechanisms of the USLP were discussed, as well as issues such
as sustainable agricultural sourcing, water and safety.
The Committee visited Unilever’s research laboratory at Colworth
in the UK to learn more about the role of R&D and the science of
behaviour change. Both are crucial to achieving the USLP’s
targets. Unilever’s work in developing alternative approaches to
animal testing was also reviewed.
During the Boards’ visit to Indonesia, the Committee received a
briefing from the World Resources Institute’s local expert on
deforestation. Sustainable sourcing of palm oil is a major target in
the USLP. The briefing gave the Committee a detailed update on
deforestation issues in Indonesia as well as a broad overview of
Unilever’s actions in this area and how it is working collaboratively
with growers, suppliers, customers, governments and NGOs to
promote sustainable palm oil.
Evaluation of the Committee
The Committee carried out a self-assessment of its performance,
led by the Committee Chairman. The Board also evaluated the
performance of the Committee and concluded it was performing
effectively.
Sir Malcolm Rifkind
Chairman of the Corporate Responsibility
andReputationCommittee
Louise Fresco
Hixonia Nyasulu
Unilever Annual Report and Accounts 2011
Report of the Directors Governance