Unilever 2012 Annual Report Download - page 62

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ABOUT UNILEVER GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
59Unilever Annual Report and Accounts 2012 Report of the Directors overnance
The ommittee maintains close scrutiny of the mechanisms
for compliance with the Code and Code Policies as ongoing
compliance is essential to promote and protect Unilever’s values
and standards, and hence the good reputation of the Group.
At each meeting the Committee reviews detailed statistics on
the completion of investigations into non-compliance with the
Code and Code Policies. Reporting of these statistics has been
improved over the year.
Training is also an ongoing topic of review. Members of the
Committee keep abreast of the training provided to employees
relating to the Code and the Code Policies. In 2012 online courses
on Protecting Information, Respect, Dignity and Fair Treatment
and Living the Code were rolled out.
Ltgaton revew
The Chief Legal Officer reports to the Committee on litigation
and regulatory matters which may have a reputational impact
including environmental issues, bribery and corruption
compliance 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 126.
Unlever Sustanable Lvng Plan
The Committee monitors progress on Unilever’s Sustainable
Living Plan and reviews any potential risks that could affect
Unilever’s reputation. Each of its meetings addresses a different
element of the USLP.
The USLP is at the heart of Unilever’s vision to double the size
of its business while reducing its environmental footprint and
increasing its positive social impact.
In the autumn, members of the Committee were pleased to note
that Unilever had incorporated sustainability into its Virtuous Circle
of Growth model as a succinct way of communicating how
sustainability can deliver benefits for the business in terms of
growth opportunities, cost savings and risk reduction (see page 9).
Unilever’s first report on the USLP was published in April 2012
(Unilever Sustainable Living Plan: Progress Report 2011). The
Committee reviewed the report and plans for its communication.
The Committee also studied a report of Unilever’s activities
at Rio+20, the United Nations Conference on Sustainable
Development, in June 2012. The purpose of Unilever’s participation
in the summit was to raise the profile of the Unilever Sustainable
Living Plan, to influence the global sustainability debate and
to encourage other businesses and partners to take action
on sustainability.
The Committee reviewed research by Unilever on what
influences opinion formers’ views of Unilever. This revealed that
sustainability is an important driver of reputation for companies
in the consumer goods sector and that Unilever is well regarded
for its sustainability efforts.
Safety
An analysis of occupational safety and product safety and quality
is included at each meeting. The Committee views these as
extremely important topics and continues to advocate that they
are allocated high priority by Unilever management. During 2012,
Unilever placed particular effort on safe travel, working with
Cranfield University and other partners to develop an approach
that tackles internal risks as well as collaborating with others
to address external risk factors such as road safety blackspots.
Further tems
The Committee reviewed the processes for managing and
identifying reputational risk, particularly the risks arising from
the increasing use of social media which means information can
be communicated rapidly to a worldwide audience.
Towards the end of the year, the Committee put in place an annual
review of issues that are strategically important to Unilever. This
allows Committee members to see how the Group is managing
the issues and how issues may change in prominence or risk over
time. The first review was held early in 2013.
In 2012 a particularly important discussion centred on market
regulation that affects the Group’s ability to operate effectively.
Compliance with differing regulatory regimes adds complexity
and cost to the business. Unilever advocates consistent principles
for regulations globally to ensure consumers can enjoy our
products safely, sustainably and effectively, whilst allowing
Unilever to operate efficiently on a global scale.
Evaluaton of theorporate Responsblty ommttee
The Boards evaluated the performance of the Committee and
the Committee carried out a self-assessment of its performance,
and each have concluded the Committee is performing effectively.
Sr Malcolm Rfknd
Chairman of the Corporate Responsibility Committee
Louse Fresco
Hxona Nyasulu