Unilever Social Report 2007_tcm96-120483

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Executive Summary Annual Social Report 2007

Page | 1 Unilever Pakistan & Unilever Pakistan FoodsLimited


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Table of Contents ExecutiveSummary..3

About theCompany.....4

Code of BusinessPrinciples...6

ChairmansMessage....7

Corporate SocialResponsibility(CSR) Policy &Goals.....................8

StakeholderEngagement.9

Education10

Health &Hygiene..........13

SustainableDevelopment..15

EmployeeInvolvement.17

Awards 19

ContactDetails..

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Executive Summary

Our mission is to add vitality to life. We meeteveryday needs for nutrition; hygiene and personalcare with brands that help people feel good, look good and get more out of life.

As a multi-local multinational, we aim to play our part in addressingglobal environmental and social concerns through our own actionsand working in partnerships with stake holders at local, national andinternational levels. We aim to meet our consumer needs andprovide them with better, healthier and environmentally friendlyproducts. We aim to gain strong roots in local markets and first-handknowledge of the local culture. We aim to simplify our businessesand achieve world-class expertise to serve consumers everywhere.

Through this we will deliver superior returns to stakeholders.

CSR Highlights in 2007Brands give back in Ramadan - During Ramadan, Walls Selection

launched a community initiative. The campaign brought anopportunity to bring joy, happiness and social development to theSOS village for orphans. Blue Band established a partnership withthe World Food Programme and contributed to feed the hungrythrough a donation of Rs. 1.8 M. Unilever and the United NationsWorld Food Programme joined hands in a three-year globalpartnership called Together for Child Vitality, aimed at fightingchild hunger.

Lifebuoy donates hand pumps to government schools - Lifebuoyhas always been committed to ensuring a better life through

health & hygiene for its consumers by creating a germ freeenvironment. So to serve the community the Lifebuoy teampartnered with LEAD Pakistan and installed hand pumps inschools in Khairpur and Sukkur and also taught students andteachers the benefits of hand washing.

Unilever supports education - Unilever continues to Add Vitality toLife by making quality education accessible to low income groups.Merit based scholarships and grants are awarded to deservingstudents desirous of studying at LUMS, BNU, GIKI, HEJ and others.Unilever encourages volunteerism The InLuv (Integrated League of Unilever Volunteers) program aims to give the volunteers atUnilever a platform from where they can contribute to society. It is amutually beneficial exercise for society and Unilever employees. At


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Unilever Pakistan, we are truly people oriented. Not only do wemaintain the highest standards in operational and managementpractices and enrich peoples lives through our brands, we alsohonour our commitment to our employees and to members of thecommunity within which we operate. We take pride, therefore, inbeing a true multi-local multinational.



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About the Company Annual Social Report 2007

About the Company

Unilever PakistanLimited UnileverPakistan Foods Limitedth (Formerly Rafhan Best foods Limited) Unilever is one of thelargest FMCG companies of the world, represented in 150 countrieswith over 200,000 employees. In Pakistan, the first Unilever

Company was incorporated in 1948, and today it is one of the mostprominent multinationals in the country. The two public listedlimited companies have 5 wholly owned and 7 third partymanufacturing sites across Pakistan and have around 1,500 peopleon their payroll and many thousands indirectly. Committed tomeeting the growing aspirations of consumers, Unilever Pakistanhas consistently provided high quality, branded products andenjoys leadership position in Home and Personal Care and FoodCategories. Unilevers flagship brands Lux, Lifebuoy, Brook Bond,Surf, Lipton, Knorr and Walls, to name a few remain house holdnames. On 24 April, 2007 Rafhan Best Foods Limited was renamedUnilever Pakistan Foods Limited, bringing the same promise of world class products for your everyday needs. Unilever Pakistanhas a widest reach of any FMCG. Its distribution network reachesremote regions within the country. With a wide range of offerings,including low unit priced packs, Unilever Pakistan addresses allsegments of the socio-economic pyramid. Unilever is a proud partof Pakistans history, contributing to the economic growth of thenation and catering to the daily needs of 160 million people. Itcontributes significantly to the national exchequer through taxrevenue and is committed to developing downstream capability

through technology transfer to 3P manufacturers, suppliers anddistributors. Widely recognised as leaders in developing talent, it isregularly referred as the most preferred employer in the country.Globally Unilever is increasingly drawing talent from its operativesin Pakistan, opening new vistas for career development.


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Code of Business Principles Annual Social Report2007

Code of Business PrinciplesOur Code of Business Principles establishes the basis on which

Unilever Pakistans business is built. These principles are activelylived by all our employees and business partners. The Codecontains a number of separate elements grouped together into fourgeneral categories.

Foundation of TrustCorporate Responsibility ultimately depends on how we behave asindividuals. The base line for this behaviour includes: our general

standard of conduct, compliance with laws and regulations; openand honest business transactions and avoidance of conflictbetween our personal interest and company responsibilities.

Mutually Beneficial Relationships There are four principles that describe the mutually beneficialrelationships which we as a company want to develop and sustain our environment, the community in which we operate, our businesspartners (distributors, suppliers, agencies, key accounts and thirdparty manufacturing units and co-packers) and, last but not theleast, with all our employees.

Responsible Management Practices These cover good corporate governance on behalf of ourshareholders, our cooperations with the government and withpublic bodies in pursuing our legitimate business interests. Thisalso includes respect for public opinion and concern for safetythroughout the operations, as well as respect for competition.

ConsumerConsumers are the reason for the existence of our business. It is

our responsibility to provide them with safe products they can trustand to offer them value in terms of price and quality. It is this trustand goodwill which we must preserve at all times.


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Chairmans Message Annual Social Report 2007

ChairmansMessage

As Unilever approaches the sixtieth year of presence in Pakistan,we take pride in the consistent way we have integrated ourcorporate social responsibility with delivering sustainable andsuperior returns to shareholders. By constantly focusing on boththe objectives we have built a business that attracts, retains anddevelops the best talent. Looking ahead, we see opportunities forserving our consumers with healthier and more environmentallyfriendly products. We also see scope for further strengthening ourroots, particularly in rural areas. At Unilever we are uniquelyplaced to meet the growing aspiration of millions of Pakistanis for abetter quality of life. Ehsan Malik

Chairman



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Corporate Social Responsibility Annual Social Report2007

Corporate Social Responsibility(CSR) Policy

The long-term success of our business is intimately interconnectedwith the vitality of the environment and communities in which weoperate. The environment provides us with the raw materials andingredients we need to make our products, while healthy prosperouscommunities provide us with a healthy, growing consumer base. Weseek to make a positive impact on society through: The brands weproduce and sell Our commercial operations and relationships

The voluntary contributions we make to the community Our widerengagement with society We are also committed to makingcontinuous improvements in the management of our environmentalimpact and to working towards our longer-term goal of developing a

sustainable business. Corporate SocialResponsibility- Our GoalsOur approach to managing our business and social responsibilities

is based on ensuring CSR is part of our business operations and awillingness to learn from our actions and the experience of others.

The driving forces behind our commitment to good CorporateCitizenship are:

Global Mandate Unilever is committed to CSR across the globeand all Unilever Companies adhere to not only the Code of Business Principles, but initiatives like the Global Compact aswell. Business need CSR is identified as an intrinsic part of ourbusiness strategy, not outside it. Commercial initiativesbenefiting communities exemplify this.

Reputation Management CSR allows us to consolidate ourreputation as a multi-local multinational and enables us to investback into our operating environment. Employee drive CSRcreates a high level of employee interest and is a perfect meansof encouraging individuals in making a better world.



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Corporate Social Responsibility Annual Social Report2007

Stakeholder Engagement

Our Corporate Purpose:

To succeed requires the highest standards of corporate behaviortowards our employees, consumers and the societies and world inwhich we live. This is our road to sustainable, profitable growth forour business and long-term value creation for our shareholders andemployees.

Listening to and learning from all the diverse opinions, beliefs,knowledge and vast experiences of our stakeholders helps us tounderstand their needs. This is central to our approach and enablesus to achieve our business goals. Our business success dependsupon relationships of mutual benefit with many people: consumers,employees, investors, share holders, government agencies,media/press, NGOs, the corporate sector, educational institutions,financial institutions, suppliers, customers and the distributors andretailers who take our brands to market and the community at large.

Lever Raabta is an in-house consumer research facility to getcontinuous feedback about our products. Based on the insights wegain from our valued consumers we develop, change and improveour products. We also conduct an on-going dialogue with variousgovernment organizations and the Chambers of Commerce andIndustries for their valuable suggestions. As far as our employeesare concerned we even have tools in place for their feedback on ourbusiness structure and other corporate efforts.

Our corporate department facilitatesstrong media engagement, which isalways encouraged. All in all ourcommunication processes includeformal customer and consumerresearch, contributions to publicpolicy debates, opinion - formersurveys, community meetings andinformal dialogues with non-governmental organizations andspecial interest groups and themedia. The essence of open,

constructive and consistent dialogueis that it helps us interpret social


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expectations, better understand ourmarkets, improve our operations andbuild on our overall global citizenshipapproach.

These discussions embody the essence of our stakeholderengagement purpose: People listening to and learning from eachothers diverse experiences and knowledge.



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CSR Education Annual Social Report 2007

The Companys dedication to Corporate Social Responsibilitystems from its core values, business principles and commitment toimproving the community in which it operates. The objective is toenter into initiatives that are sustainable and contribute to socialdevelopment and long term environmental management. The keyfocus in the social uplifting activities is the areas of PrimaryEducation, Health and hygiene, Nutrition and SustainableDevelopment.

Education

Making quality primary education available tothe lesser privilegedThe Citizen Foundation Since 2002, we have been supporting The

Citizen Foundation (TCF) for primary education in rural areasthroughout Pakistan. At TCF we started with the support of threeschools and today Unilever Supports 15 schools. TCF providesstudents and teachers with better opportunities, facilities and acleaner and healthier environment. Further supporting TCF,Unilever Pakistan Foods Limited (UPFL) has committed to supportthe expansion of the TCF Walls School, thus providing morechildren with the opportunity to study.

CARE Foundation In 2007, wesupported CARE Foundation for therunning cost of the school,improvement of educationalstandards and infrastructure in BilalGanj government school, Lahore.Previously, we supported theconstruction of a new library at CAREschool #4 in Lahore.

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Limited


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CSR Ed

uc

ation Annual Social Report 2007

Public Private Partnership (PPP) Unilever and theRahim Yar Khan (RYK) team have been supportingthe Government Elementary School since 2003,which includes improving the school environmentand behavioural changes as a means of enhancingand sustaining the quality of education. It haspositively impacted the lives of more than 1000students of which nearly 15% are female students. In2007, Unilever partnered with Idar-e-Taleem-o-Aaghai(ITA) to further improve the school system anddevelop the local talent in the form of qualifiedteachers and staff.

Based on the success of the RYK Governmentschool project, in 2006 Unilever entered into atripartite partnership with Pakistan Centre of Philanthropy and the District Government of Ghotki to support a school in Kamo Shaheeddistrict of the Sindh province.

Encourage Reading andCreativity in Children Alif Laila Book Society Since 2006 Blue Band and Energile, have

supported the Gusto project, a children magazine that encouragesreading and creativity in kids. More than 2000 copies have beenprinted in two published editions and over 2500 children haveaccess to the magazine. Art Project

2007 was the seventh year that Unilever undertookthis project which involved schools across Pakistanand encourages creativity and innovation amongstchildren between the ages of five to 18. Paddle Pop,


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theiconicWalls

treat for young consumers, is the ideal co-partnerfor the Art Project. The project included over 150schools from five cities. Over 200 teachers attendedthe workshop and 95% of them found thetechniques taught useful for their students. Over40,000 students benefited from the learning and thebrand awareness extended to over 60,000 students.



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CSR Education Annual Social Report 2007

Economic Empowerment through EducationMaking a Better World is a core belief at Unilever Pakistan

Limited. We demonstrate our commitment by supporting socialdevelopment programmes that improve the quality of life,particularly for the under-privileged.In the area of education, where the main thrust has been on the

development of primary education institutes, Unilever alsopartnered with leading institutes of excellence that provideprofessional degrees.

ountry. eaconhouse National University byFair Lovely and the Corporate Affairsdepartment. Lahore University of Management and Sciences Deservingcandidates who qualify for admissions to theLUMS MBA programme are eligible for a 7year interest free loan funded by Unilever.Our aim is to make quality professionaleducation available to women from thelesser privileged areas of the c B In 2007

Unilever signed an agreement withBeaconhouse National University where fourscholarships are being provided to deservingliberal arts students funded &

HEJ, Karachi University Knorr is supporting1 deserving student as Research supportedby nilever- Supply Chain team andemployees.

ssociate in food technology. Thisproject is A U

Ghulam Ishaq Khan Institute Unilever is supporting 1 B.ScMechanical Engineering student for four years at GIKI. This isanother project supported by Unilever Supply Chain teamemployees.


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Health & Hygiene Annual Social Report 2007

Health & Hygiene

Continued Support to Health-Care

Unilever believes in making people feel good, look good and getmore out of life. Our People Vitality Framework promotes employeewell-being and effectiveness at work. Effective programs of healtheducation are developed and implemented to provide timely andappropriate health care facilities to our employees. This alsoincludes talks by well known doctors and professionals. Support tothe community takes the form of institutionalized long termpartnerships with health care organizations. Partnerships includeinitiatives ranging from outreach clinics, infrastructural projects andpatient support: Marie Adelaide Leprosy Centre Unilever haspartnered for over five years with The Marie Adelaide LeprosyCentre (MALC) to support free treatment and prevention of Leprosyand tuberculosis, at the Peshawar and Loralai clinics.The Kidney Centre Unilever supports The Kidney Centre inproviding essential medical assistance to underprivileged patients

requiring renal treatment. In 2007 we supported the treatment of 8dialysis patients. Layton Rahmatullah Benevolent Trust (LRBT)Unilever supports LRBT to provide free eye treatment to needypatients at Khanewal hospital for minor / major surgeries. Shaukat Khanum Hospital & Pink Ribbon Breast cancer is the most commoncancer in women. In November 2007, Fair & Lovely supported PinkRibbon awareness campaign at the Lahore College and is alsosponsoring the treatment of 2 breast cancer patients at the ShaukatKhanum Hospital.

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Health & Hygiene Annual Social Report 2007

Lifebuoy Germ Busters Lifebuoy has always been committed toensuring a better life through health and hygiene for its consumersand ensure a gem free environment. In order to serve thecommunity, in keeping with the brand objectives, the Lifebuoy teampartnered with LEAD Pakistan and installed 20 hand pumps ingovernment schools in Khairpur and Sukkur and also taught themabout benefits of hand washing. Over 3,000 students and 150teachers benefited from this project. Over 350 hygiene packs withLifebuoy soap, Close-up and tooth brushes were distributed in TCFschools and to a local NGO in Chashma Ghot and Umerkot. Surf Dirt is Good Playing outdoors is good for the mental and physicaldevelopment of children thus giving credence to the brandphilosophy of Dirt is Good. Surf during its summer campaign,renewed its resolve to make the issue of experimental learning anational issue for child development. Surf Excel conducted a surveyof Pakistani mothers and collaborated with child developmentexperts in amplifying the DIG message. UN World Food Programme Blue Band established a partnership with the WorldFood Program (WFP) and contributed to their efforts to feed thehungry through its Ramdan sales. Unilever and the United NationsWFP joined forces in a three-year Global partnership aimed to fight

child hunger. There are approximately 298,000 students in WFPassisted schools, with the number expected to touch 500,000 in2008.



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Sustainable Development Annual Social Report 2007

Sustainable DevelopmentUnilever Pakistan Limited (UPL) continues to create a value chain to

provide water sustainability to the arid and remote Thar Desert,where millions rely on sporadic rainfall for survival. The project isbeing implemented through the Thardeep Rural DevelopmentProject (TRDP), a local non-government organization (NGO) with itsoffice in Thar. A large outreach in all the villages in the districtincludes: Hand pumps & Rain Harvesting Ponds

Thar book

Over 370 hand pumps have beeninstalled in the villages of Thar, makingdrinking water available to the localcommunity. Three rain-harvesting pondshave been set up which can store waterfor up to 6 months at a time, thusproviding water for agriculture and cattlebreeding.

Drip Irrigation Unilever has been the coresupporter of the Drip Irrigation projects,providing pilot funding to Thardeep RuralDevelopment Programme for demonstrationprojects in Thar. The Drip Irrigation project,MicroDrip, in collaboration with Acumen Fund isaimed at facilitating the rural communities in a


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waythattheycan beempowered tosecuretheir

rights with command over resources andcapabilities to mange the process of sustainabledevelopment. As part of its continued supportto the project, Unilever further supports thisinitiative by providing the skills and expertiserequired (in form of employee volunteerism /involvement) to help build and expandbusiness.

Unilevers Thar book initiative brings the Tharis and their uniqueway of life to the forefront. The proceeds from the sale of the bookare re-invested into the Thar water sustainability initiative.



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Sustainable Development Annual Social Report 2007

Walls SOSCampaign The Walls SOS campaign brought an opportunity to donate joy andhappiness to SOS orphaned children's home. TV/Radio promos ranon multiple media and channels with high productive frequency,through an invitation to participate in the campaign through sendingcode printed on Walls Selection carton packs and therebycontribute Rs. 10 to SOS Childrens Villages. The generated moneywill help them to build more SOS homes thus providing shelter tomore children.

Other InitiativesDIA A collaboration amongst Unilever

Pakistan Limited, Shell Pakistan, DuPont &ICI Pakistan Limited to provide a platform topromote and enhance the influence of professional women. The forum serves as abase for sharing best practices in theindustry and creates awareness aboutinnovation tools and processes, andbenchmarks against each other, and thelatest global diversity trends.Products

DonationsUnilever in 2007 donated over 1.6 million Rupees in

Product Donations to: Flood relief victims TCF TheCitizens Foundation St. Vincent De Paul Society MarieAdelaide Leprosy Centre (MALC) Rahat Kada DSSP Distinguish Secretary Society of Pakistan House of HopeInstitute of Behavioural Psychology Association of HumanDevelopment


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Employee Involvement Annual Social Report 2007

Employee Involvement3. Unilever employees donated over Rs. 250,000 for flood

relief victims, which was . Audit Department celebratedIndependence Day with 60 Community and environment supportat Unilever Pakistan, is more than just a Company initiative, it isalso supported by its people. 1. Unilever launched its InLuvprogramme which engages employees in CSR initiatives andvolunteer work in September. Its success can be seen by,

employees volunteering for over 250 hours of work (from Sept toDec). 2 th hearing impaired children from the family educationservice on 14 August 2007 at McDonalds sea view.

4 involved in developing and implementingbehavioural programs, summer camps andworking closely with local district officers to

ensure government syllabus and policies arefollowed.

5. Support Iqra Foundation, established in 2003 by the RYK Factory to provide education for the children of the domestic helpat the Unilever estate. Over 50 employees contributed annuallyfor the running of the school. . Employees Contributed to theUnited Nation World Food Program fight for hunger 6 walk in May

2007. . Unilever globally has taken the initiative to spreadHIV/AIDS awareness within 7 the company on World AidsDays. Awareness Seminars on HIV/AIDS were held in collaborationwith leading organizations on AIDS controls in Head Office and inall other factories.


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Limited matched by the company and donated to the UN


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Employee Involvement Annual Social Report 2007

9. Backerei is a premier project of theSchool of Leadership Foundations (SoLF)distinctive program ExtraCorp.Extra-Corp aimsto facilitate physically and mentally challengedyouth to set up, own, manage and lead aconglomeration of enterprises to economicallyempower themselves. The Backerei team visitsUnilever Head office once a month to sell theirproducts and earn between Rs. 6,000 - 10,000per visit.

10. Unilever has been a core supporter of the Drip

Irrigation project,providing pilot fundingto the Thardeep RuralDevelopmentProgramme fordemonstration projectsin Thar. The dripirrigation project, incollaboration with

Acumen Fund, is aimed

to facilitating the rural communities in away that they can be empowered tosecure their rights with command overresources and capabilities to managethe process of sustainable development.As part of its continued support of theproject, Unilever further supports thisinitiative by providing the skills andexpertise required (in the form of employee volunteerism/ involvement) to

help build and expand business.


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Awards Annual Social Report 2007

Awards

The Asian CSR AwardUnilever Pakistan won the Excellence Award in the Best Workplace

Practices category, at the Asian CSR Awards held in Vietnam on the28th of September. Unilever Pakistan was selected for this honourfor their much acclaimed Personal Vitality Health Passport annualinitiative to ensure the health and well being of all its employees.


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The Award celebrates Unilevers stated mission of adding Vitality toLife. The Asian CSR Awards is organized by the RVR Centre forCorporate Responsibility at the The Asian Institute of Management(AIM) and sponsored by the Chemoil Group. This year the Awardswere held in Ho Chi Minh City in Vietnam. The awards recognize andhonour Asia-based companies for outstanding, innovative and worldclass products, services, projects and programs in the following CSRcategories:- Environmental Excellence; -

Support and Improvement of Education; - Poverty Alleviation;- Best Workplace Practices; -Concern for Health.

Unilever won two

further Awards1. The Pan-Asian Lifebuoy hand wash program was adjudgedWinner in the Concern for Health category;2. Unilever South Asia for its women empowerment project (ProjectShakti) received the Excellence Award in the Poverty Alleviationcategory.Nominees from all over Asia were invited to enter the programme.

This year, 186 entries were received from 117 companies in 14countries.

Winning projects were asked to demonstrate leadership, sincerityand ongoing commitment in incorporating ethical values,compliance with legal requirements, respect for individuals,involvement in communities and protection of the environment inthe way they conduct their business.



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Contact Details Annual Social Report 2007

Contact Details:Unilever Pakistan Limited (UPL)

Unilever Pakistan Foods Limited(UPFL) Naila Ismail Corporate Relations

Manager CSR & Internalcommunications UnileverPakistan Limited Avari

Plaza, Fatimah Jinnah RoadKarachi 75530 Tel: 92-21-5660062 ext 2261 Fax: 92-21-5680918 Web:www.unilever.pkFareshteh Aslam Corporate Communication

Manager Brand & ExternalCommunications UnileverPakistan Limited Avari Plaza,Fatimah Jinnah Road Karachi75530 Tel: 92-21-5660062ext 2528 Fax: 92-21-5680918Web: www.unilever.pk



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