Executive Summary – Annual Social Report 2007

Page | 1 Unilever Pakistan & Unilever Pakistan Foods

Executive Summary – Annual Social Report 2007

Table of Contents
Executive Summary……….. 3 About the Company……..... 4 Code of Business Principles……… …………...6 Chairman’s Message……....7 Corporate Social Responsibility (CSR) Policy & Goals…… …..................... 8 Stakeholder Engagement….9 Education……… …………10 Health & Hygiene…......... .13 Sustainable Development… …………..15 Employee Involvement…. 17 Awards ………… …………19 Contact Details………….. 20

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Executive Summary – Annual Social Report 2007

Executive Summary
“Our mission is to add vitality to life. We meet everyday needs for nutrition; hygiene and personal care 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 addressing global environmental and social concerns through our own actions and working in partnerships with stake holders at local, national and international levels. We aim to meet our consumer needs and provide them with better, healthier and environmentally friendly products. We aim to gain strong roots in local markets and first-hand knowledge of the local culture. We aim to simplify our businesses and achieve world-class expertise to serve consumers everywhere. Through this we will deliver superior returns to stakeholders.

CSR Highlights in 2007
Brands give back in Ramadan - During Ramadan, Wall’s Selection launched a community initiative. The campaign brought an opportunity to bring joy, happiness and social development to the SOS village for orphans. Blue Band established a partnership with the World Food Programme and contributed to feed the hungry through a donation of Rs. 1.8 M. Unilever and the United Nations World Food Programme joined hands in a three-year global partnership called ‘Together for Child Vitality’, aimed at fighting child hunger. Lifebuoy donates hand pumps to government schools - Lifebuoy has always been committed to ensuring a better life through health & hygiene for its consumers by creating a germ free environment. So to serve the community the Lifebuoy team partnered with LEAD Pakistan and installed hand pumps in schools in Khairpur and Sukkur and also taught students and teachers the benefits of hand washing. Unilever supports education - Unilever continues to Add Vitality to Life by making quality education accessible to low income groups. Merit based scholarships and grants are awarded to deserving students 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 at Unilever a platform from where they can contribute to society. It is a mutually beneficial exercise for society and Unilever employees. At

Unilever Pakistan, we are truly people oriented. Not only do we maintain the highest standards in operational and management practices and enrich people’s lives through our brands, we also honour our commitment to our employees and to members of the community within which we operate. We take pride, therefore, in being a true multi-local multinational.

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About the Company – Annual Social Report 2007 About the Company
Unilever Pakistan Limited Unilever Pakistan Foods Limited
(Formerly Rafhan Best foods Limited) Unilever is one of the largest FMCG companies of the world, represented in 150 countries with over 200,000 employees. In Pakistan, the first Unilever Company was incorporated in 1948, and today it is one of the most prominent multinationals in the country. The two public listed limited companies have 5 wholly owned and 7 third party manufacturing sites across Pakistan and have around 1,500 people on their payroll and many thousands indirectly. Committed to meeting the growing aspirations of consumers, Unilever Pakistan has consistently provided high quality, branded products and enjoys leadership position in Home and Personal Care and Food Categories. Unilever’s flagship brands Lux, Lifebuoy, Brook Bond, Surf, Lipton, Knorr and Walls, to name a few remain house hold names. On 24 April, 2007 Rafhan Best Foods Limited was renamed Unilever Pakistan Foods Limited, bringing the same promise of world class products for your everyday needs. Unilever Pakistan has a widest reach of any FMCG. Its distribution network reaches remote regions within the country. With a wide range of offerings, including low unit priced packs, Unilever Pakistan addresses all segments of the socio-economic pyramid. Unilever is a proud part of Pakistan’s history, contributing to the economic growth of the nation and catering to the daily needs of 160 million people. It contributes significantly to the national exchequer through tax revenue and is committed to developing downstream capability through technology transfer to 3P manufacturers, suppliers and distributors. Widely recognised as leaders in developing talent, it is regularly referred as the most preferred employer in the country. Globally Unilever is increasingly drawing talent from its operatives in Pakistan, opening new vistas for career development.

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Code of Business Principles – Annual Social Report

2007 Code of Business Principles
Our Code of Business Principles establishes the basis on which Unilever Pakistan’s business is built. These principles are actively lived by all our employees and business partners. The Code contains a number of separate elements grouped together into four general categories.

Foundation of Trust
Corporate Responsibility ultimately depends on how we behave as individuals. The base line for this behaviour includes: our general standard of conduct, compliance with laws and regulations; open and honest business transactions and avoidance of conflict between our personal interest and company responsibilities.

Mutually Beneficial Relationships
There are four principles that describe the mutually beneficial relationships which we as a company want to develop and sustain – our environment, the community in which we operate, our business partners (distributors, suppliers, agencies, key accounts and third party manufacturing units and co-packers) and, last but not the least, with all our employees.

Responsible Management Practices
These cover good corporate governance on behalf of our shareholders, our cooperations with the government and with public bodies in pursuing our legitimate business interests. This also includes respect for public opinion and concern for safety throughout the operations, as well as respect for competition.

Consumers are the reason for the existence of our business. It is our responsibility to provide them with safe products they can trust and to offer them value in terms of price and quality. It is this trust and goodwill which we must preserve at all times.

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Chairman’s Message – Annual Social Report 2007

Chairman’s Message
As Unilever approaches the sixtieth year of presence in Pakistan, we take pride in the consistent way we have integrated our corporate social responsibility with delivering sustainable and superior returns to shareholders. By constantly focusing on both the objectives we have built a business that attracts, retains and develops the best talent. Looking ahead, we see opportunities for serving our consumers with healthier and more environmentally friendly products. We also see scope for further strengthening our roots, particularly in rural areas. At Unilever we are uniquely placed to meet the growing aspiration of millions of Pakistanis for a better quality of life. Ehsan Malik


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Corporate Social Responsibility – Annual Social Report 2007

Corporate Social Responsibility (CSR) Policy
The long-term success of our business is intimately interconnected with the vitality of the environment and communities in which we operate. The environment provides us with the raw materials and ingredients we need to make our products, while healthy prosperous communities provide us with a healthy, growing consumer base. We seek to make a positive impact on society through: · The brands we produce and sell · Our commercial operations and relationships · The voluntary contributions we make to the community · Our wider engagement with society We are also committed to making continuous improvements in the management of our environmental impact and to working towards our longer-term goal of developing a

Corporate Social Responsibility- Our Goals
sustainable business. Our approach to managing our business and social responsibilities is based on ensuring CSR is part of our business operations and a willingness to learn from our actions and the experience of others. The driving forces behind our commitment to good Corporate Citizenship are: Global Mandate – Unilever is committed to CSR across the globe and all Unilever Companies adhere to not only the Code of Business Principles, but initiatives like the Global Compact as well. Business need – CSR is identified as an intrinsic part of our business strategy, not outside it. Commercial initiatives benefiting communities exemplify this. Reputation Management – CSR allows us to consolidate our reputation as a multi-local multinational and enables us to invest back into our operating environment. Employee drive – CSR creates a high level of employee interest and is a perfect means of encouraging individuals in ‘making a better world’.

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Corporate Social Responsibility – Annual Social Report 2007

Stakeholder Engagement
Our Corporate Purpose:
“To succeed requires the highest standards of corporate behavior towards our employees, consumers and the societies and world in which we live. This is our road to sustainable, profitable growth for our business and long-term value creation for our shareholders and employees.” Listening to and learning from all the diverse opinions, beliefs, knowledge and vast experiences of our stakeholders helps us to understand their needs. This is central to our approach and enables us to achieve our business goals. Our business success depends upon relationships of mutual benefit with many people: consumers, employees, investors, share holders, government agencies, media/press, NGO’s, the corporate sector, educational institutions, financial institutions, suppliers, customers and the distributors and retailers who take our brands to market and the community at large. “Lever Raabta” is an in-house consumer research facility to get continuous feedback about our products. Based on the insights we gain from our valued consumers we develop, change and improve our products. We also conduct an on-going dialogue with various government organizations and the Chambers of Commerce and Industries for their valuable suggestions. As far as our employees are concerned we even have tools in place for their feedback on our business structure and other corporate efforts. Our corporate department facilitates strong media engagement, which is always encouraged. All in all our communication processes include formal customer and consumer research, contributions to public policy debates, opinion - former surveys, community meetings and informal dialogues with nongovernmental organizations and special interest groups and the media. The essence of open, constructive and consistent dialogue is that it helps us interpret social

expectations, better understand our markets, improve our operations and build on our overall global citizenship approach. These discussions embody the essence of our stakeholder engagement purpose: “People listening to and learning from each others’ diverse experiences and knowledge”.

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CSR Education –Annual Social Report 2007
The Company’s dedication to Corporate Social Responsibility stems from its core values, business principles and commitment to improving the community in which it operates. The objective is to enter into initiatives that are sustainable and contribute to social development and long term environmental management. The key focus in the social uplifting activities is the areas of Primary Education, Health and hygiene, Nutrition and Sustainable Development.

Making quality primary education available to the lesser privileged
The Citizen Foundation Since 2002, we have been supporting The Citizen Foundation (TCF) for primary education in rural areas throughout Pakistan. At TCF we started with the support of three schools and today Unilever Supports 15 schools. TCF provides students and teachers with better opportunities, facilities and a cleaner and healthier environment. Further supporting TCF, Unilever Pakistan Foods Limited (UPFL) has committed to support the expansion of the TCF Walls School, thus providing more children with the opportunity to study. CARE Foundation In 2007, we supported CARE Foundation for the running cost of the school, improvement of educational standards and infrastructure in Bilal Ganj government school, Lahore. Previously, we supported the construction of a new library at CARE school #4 in Lahore.

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ation –Annual Social Report 2007

Public Private Partnership (PPP) Unilever and the Rahim Yar Khan (RYK) team have been supporting the Government Elementary School since 2003, which includes improving the school environment and behavioural changes as a means of enhancing and sustaining the quality of education. It has E positively impacted the lives of more than 1000 students of which nearly 15% are female students. In d 2007, Unilever partnered with Idar-e-Taleem-o-Aaghai u (ITA) to further improve the school system and develop the local talent in the form of qualified c teachers and staff. Based on the success of the RYK Government school project, in 2006 Unilever entered into a tripartite partnership with Pakistan Centre of Philanthropy and the District Government of Ghotki to support a school in Kamo Shaheed district of the Sindh province.

Encourage Reading and Creativity in Children
Alif Laila Book Society Since 2006 Blue Band and Energile, have supported the “Gusto” project, a children magazine that encourages reading and creativity in kids. More than 2000 copies have been printed in two published editions and over 2500 children have access to the magazine. Art Project

2007 was the seventh year that Unilever undertook this project which involved schools across Pakistan and encourages creativity and innovation amongst children between the ages of five to 18. Paddle Pop,

t treat for young consumers, is the ideal co-partner h for the Art Project. The project included over 150 e schools from five cities. Over 200 teachers attended ic the workshop and 95% of them found the o techniques taught useful for their students. Over ni 40,000 students benefited from the learning and the c brand awareness extended to over 60,000 students. W al l’ Page | 11 Unilever Pakistan & Unilever Pakistan Foods s Limited

CSR Education –Annual Social Report 2007

Economic Empowerment through Education
“Making a Better World” is a core belief at Unilever Pakistan Limited. We demonstrate our commitment by supporting social development 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 also partnered with leading institutes of excellence that provide professional degrees. ountry. eaconhouse National University by Fair Lovely and the Corporate Affairs department. Lahore University of Management and Sciences Deserving candidates who qualify for admissions to the LUMS MBA programme are eligible for a 7 year interest free loan funded by Unilever. Our aim is to make quality professional education available to women from the lesser privileged areas of the c B In 2007 Unilever signed an agreement with Beaconhouse National University where four scholarships are being provided to deserving liberal arts students funded & HEJ, Karachi University Knorr is supporting 1 deserving student as Research supported by nilever- Supply Chain team and employees.

ssociate in food technology. This project is A U Ghulam Ishaq Khan Institute Unilever is supporting 1 B.Sc Mechanical Engineering student for four years at GIKI. This is another project supported by Unilever Supply Chain team employees.

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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 get more out of life. Our People Vitality Framework promotes employee well-being and effectiveness at work. Effective programs of health education are developed and implemented to provide timely and appropriate health care facilities to our employees. This also includes talks by well known doctors and professionals. Support to the community takes the form of institutionalized long term partnerships with health care organizations. Partnerships include initiatives ranging from outreach clinics, infrastructural projects and patient support: Marie Adelaide Leprosy Centre Unilever has partnered for over five years with The Marie Adelaide Leprosy Centre (MALC) to support free treatment and prevention of Leprosy and tuberculosis, at the Peshawar and Loralai clinics. The Kidney Centre Unilever supports The Kidney Centre in providing essential medical assistance to underprivileged patients requiring renal treatment. In 2007 we supported the treatment of 8 dialysis patients. Layton Rahmatullah Benevolent Trust (LRBT) Unilever supports LRBT to provide free eye treatment to needy patients at Khanewal hospital for minor / major surgeries. Shaukat Khanum Hospital & Pink Ribbon Breast cancer is the most common cancer in women. In November 2007, Fair & Lovely supported Pink Ribbon awareness campaign at the Lahore College and is also sponsoring the treatment of 2 breast cancer patients at the Shaukat Khanum Hospital.

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Health & Hygiene – Annual Social Report 2007
Lifebuoy Germ Busters Lifebuoy has always been committed to ensuring a better life through health and hygiene for its consumers and ensure a gem free environment. In order to serve the community, in keeping with the brand objectives, the Lifebuoy team partnered with LEAD Pakistan and installed 20 hand pumps in government schools in Khairpur and Sukkur and also taught them about benefits of hand washing. Over 3,000 students and 150 teachers benefited from this project. Over 350 hygiene packs with Lifebuoy soap, Close-up and tooth brushes were distributed in TCF schools and to a local NGO in Chashma Ghot and Umerkot. Surf Dirt is Good Playing outdoors is good for the mental and physical development of children thus giving credence to the brand philosophy of “Dirt is Good”. Surf during its summer campaign, renewed its resolve to make the issue of experimental learning a national issue for child development. Surf Excel conducted a survey of Pakistani mothers and collaborated with child development experts in amplifying the DIG message. UN World Food Programme Blue Band established a partnership with the World Food Program (WFP) and contributed to their efforts to feed the hungry through its Ramdan sales. Unilever and the United Nation’s WFP joined forces in a three-year Global partnership aimed to fight child hunger. There are approximately 298,000 students in WFP assisted schools, with the number expected to touch 500,000 in 2008.

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Sustainable Development –Annual Social Report 2007

Sustainable Development
Unilever 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 is being implemented through the Thardeep Rural Development Project (TRDP), a local non-government organization (NGO) with its office in Thar. A large outreach in all the villages in the district includes: Hand pumps & Rain Harvesting Ponds

Thar book

Over 370 hand pumps have been installed in the villages of Thar, making drinking water available to the local community. Three rain-harvesting ponds have been set up which can store water for up to 6 months at a time, thus providing water for agriculture and cattle breeding.

Drip Irrigation Unilever has been the core
supporter of the Drip Irrigation projects, providing pilot funding to Thardeep Rural Development Programme for demonstration projects in Thar. The Drip Irrigation project, MicroDrip, in collaboration with Acumen Fund is aimed at facilitating the rural communities in a

way rights with command over resources and that capabilities to mange the process of sustainable they development. As part of its continued support can be to the project, Unilever further supports this empow initiative by providing the skills and expertise ered to required (in form of employee volunteerism / secure involvement) to help build and expand their business. Unilever’s Thar book initiative brings the Tharis and their unique way of life to the forefront. The proceeds from the sale of the book are re-invested into the Thar water sustainability initiative.

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Sustainable Development –Annual Social Report 2007
Wall’s SOS Campaign
The Wall’s SOS campaign brought an opportunity to donate joy and happiness to SOS orphaned children's home. TV/Radio promos ran on multiple media and channels with high productive frequency, through an invitation to participate in the campaign through sending code printed on Wall’s Selection carton packs and thereby contribute Rs. 10 to SOS Children’s Villages. The generated money will help them to build more SOS homes thus providing shelter to more children.

Other Initiatives

DIA – A collaboration amongst Unilever Pakistan Limited, Shell Pakistan, DuPont & ICI Pakistan Limited to provide a platform ‘to promote and enhance the influence of professional women’. The forum serves as a base for sharing best practices in the industry and creates awareness about innovation tools and processes, and benchmarks against each other, and the latest global diversity trends.

Products Donations

Unilever in 2007 donated over 1.6 million Rupees in Product Donations to: Flood relief victims TCF – The Citizen’s Foundation St. Vincent De Paul Society Marie Adelaide Leprosy Centre (MALC) Rahat Kada DSSP – Distinguish Secretary Society of Pakistan House of Hope  Institute of Behavioural Psychology Association of Human Development

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Employee Involvement – Annual Social Report 2007 Employee Involvement
3. Unilever employees donated over Rs. 250,000 for flood relief victims, which was . Audit Department celebrated Independence Day with 60 Community and environment support at Unilever Pakistan, is more than just a Company initiative, it is also supported by its “people”. 1. Unilever launched its InLuv programme which engages employees in CSR initiatives and volunteer work in September. Its success can be seen by, employees volunteering for over 250 hours of work (from Sept to Dec). 2thhearing impaired children from the family education service on 14 August 2007 at McDonalds sea view.

4 involved in developing and implementing behavioural programs, summer camps and working closely with local district officers to ensure government syllabus and policies are followed.

5. Support Iqra Foundation, established in 2003 by the RYK Factory to provide education for the children of the domestic help at the Unilever estate. Over 50 employees contributed annually for the running of the school. . Employees Contributed to the United Nation World Food Program fight for hunger 6 walk in May 2007. . Unilever globally has taken the initiative to spread HIV/AIDS awareness within 7 the company on World Aids Days. Awareness Seminars on HIV/AIDS were held in collaboration with leading organizations on AIDS controls in Head Office and in all other factories.

Limited matched by the company and donated to the UN

Employee Involvement – Annual Social Report 2007

9. Backerei is a premier project of the School of Leadership Foundation’s (SoLF) distinctive program ‘ExtraCorp’.Extra-Corp aims to facilitate physically and mentally challenged youth to set up, own, manage and lead a conglomeration of enterprises to economically empower themselves. The Backerei team visits Unilever Head office once a month to sell their products and earn between Rs. 6,000 - 10,000 per visit. 10. Unilever has been a core supporter of the Drip

Irrigation project, providing pilot funding to the Thardeep Rural Development Programme for demonstration projects in Thar. The drip irrigation project, in collaboration with Acumen Fund, is aimed

to facilitating the rural communities in a way that they can be empowered to secure their rights with command over resources and capabilities to manage the process of sustainable development. As part of its continued support of the project, Unilever further supports this initiative by providing the skills and expertise required (in the form of employee volunteerism/ involvement) to help build and expand business.

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Awards – Annual Social Report 2007

The Asian CSR Award
Unilever Pakistan won the Excellence Award in the Best Workplace Practices category, at the Asian CSR Awards held in Vietnam on the 28th of September. Unilever Pakistan was selected for this honour for their much acclaimed Personal Vitality Health Passport annual initiative to ensure the health and well being of all its employees.

The Award celebrates Unilever’s stated mission of adding Vitality to Life. The Asian CSR Awards is organized by the RVR Centre for Corporate Responsibility at the The Asian Institute of Management (AIM) and sponsored by the Chemoil Group. This year the Awards were held in Ho Chi Minh City in Vietnam. The awards recognize and honour Asia-based companies for outstanding, innovative and world class products, services, projects and programs in the following CSR categories: Environmental Excellence; Support and Improvement of Education; Poverty Alleviation; Best Workplace Practices; Concern for Health.

Unilever won two further Awards
1. The Pan-Asian Lifebuoy hand wash program was adjudged Winner in the Concern for Health category; 2. Unilever South Asia for its women empowerment project (Project Shakti) received the Excellence Award in the Poverty Alleviation category. Nominees from all over Asia were invited to enter the programme. This year, 186 entries were received from 117 companies in 14 countries. Winning projects were asked to demonstrate leadership, sincerity and ongoing commitment in incorporating ethical values, compliance with legal requirements, respect for individuals, involvement in communities and protection of the environment in the 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 & Internal communications Unilever Pakistan Limited Avari Plaza, Fatimah Jinnah Road Karachi 75530 Tel: 92-215660062 ext 2261 Fax: 9221-5680918 Web: www.unilever.pk Fareshteh Aslam Corporate Communication Manager Brand & External Communications Unilever Pakistan Limited Avari Plaza, Fatimah Jinnah Road Karachi 75530 Tel: 92-21-5660062 ext 2528 Fax: 92-21-5680918 Web: www.unilever.pk

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