Emre Akehirliolu

Ms. Ouz
Business English
16/05/2017

Why Unilever Indonesia Is a Good Company

To be successful or not to be successful, that is the question for a company. For years,
investment professionals looked for the slight edge over the competition. According to Will
Ashworth, One place they might easily overlook (but shouldnt) is within the realm of
qualitative analysis, a subjective area that is sometimes referred to as soft metrics (What).
Qualitative analysis investigates the aspects of a company that are not quantifiable. Instead, it
analyzes the business model, competitive advantage of the company, management and the
corporate governance.
Established on 5 December 1933, Unilever Indonesia is a leading fast moving
consumer goods company, whose product range includes globally known brands like Dove,
Clear, Rinso etc., in Indonesia, a country where the business environment suffers from
widespread political corruption and weak enforcement of anti-corruption legislation
(Indonesia). Corrupt judiciary affects the efficiency of companies negatively. The extensive
bribery disrupts the integrity, causes dishonesty. For example, In 2013, a Constitutional
Court Chief Justice, Akil Mochtar, was charged with accepting a USD 260,000 bribe in
exchange for fixing a court ruling. Mochtar was found guilty and received a life sentence for
corruption (Indonesia). For more than 80 years their mission statement has been We work
to create a better future everyday; we help people feel good, look good and get more out of
life with brands and services that are good for them and for others; we will inspire people to
take small every day actions that can add up to a big difference for the world; and we will
develop new ways of doing business that will allow us to double the size of our company
while reducing our environmental impact (Our). Unilever Indonesia managed to survive in a
corrupt country and got eighth place in The Worlds Most Innovative Companies list of
Forbes. (Unilever).
Satisfaction is the key to become a great company. According to Will Ashworth, If a
company fails to satisfy employees, suppliers and customers [] its only a matter of time
before its stock price implodes (What). The stocks of Unilever Indonesia have been
increasing for the last 5 years, which indicates that the company makes profit and grows
bigger each year. (UNVR). The mission statement of the company is consistent with the way
they treat their stakeholders. Without customers the company cannot survive so in almost all
situations the customer needs have to come first. (What). On a customer satisfaction survey
conducted by an internal team and an independent third party, Unilever Indonesia scored 4.3
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out of 5.0. (Sustainability). A customer, Dyah Ainein Wulansari said that, I think Unilever
has already done a good job in engaging with consumers through various productrelated
events. I appreciate how Unilever Indonesia is striving to educate consumers on various topics
related to their products, namely health, hygiene, brushing teeth, eating healthy, being active
and positive, and many more (Sustainability). Not only the customers, but the employees are
very important for Unilever Indonesia as well. To have a better future, they provide training
and development programs for employees. In their manufacturing operations, 4,800
employees were trained in technical capabilities in order to be able to work across the factory.
They also have the Multi Source Feedback Survey system that helps employees to get
anonymous feedback from their colleagues, managers etc. (Sustainability). Health and safety
of the employees are also very important for Unilever Indonesia. Their safety programs are
designed to provide a safe and healthy workplace for all the employees no matter who they
are, as its stated in their company policy and the Collective Bargaining Agreement.
(Sustainability). Another group of stakeholders is government and regulatory. Unilever
Indonesia helps out the government in the subjects that the government is inadequate. With
Unilever Indonesias contribution to the programs of government, local peoples needs are
fulfilled. The programs are: STBM (Sanitasi Total Berbasis Masyarakat) that helps villages
become free from open defecation while also promoting good sanitation practices, and Clean
Indonesia Movement that aims to provide clean public areas and schools for local people.
(Sustainability).
Unilever Indonesia ensures accountability, transparency and fairness to increase their
shareholder value. Its policy sets mandatory requirements on human and labor rights in
business relationships, as stated in their website, Suppliers must accept and sign our
Business Partner Code and Code of Business principles prior to working with us and must
comply with national labor laws (Sustainability). Unilever Indonesia ensures transparency by
providing regular and reliable information about the activities, structure, financial situation
and performance to all shareholders. In order to provide fairness in such a corrupt country,
Unilever Indonesia have a strong integrity policy that prevents bribery, All employees of
Unilever Indonesia must actively discourage the exchange of gifts in relationship with third
parties. Unilever Indonesias Blue Umbrella Whistleblower Scheme is a mechanism that
provides employees the option of reporting a wrong behavior under the conditions of
confidentiality, to an independent unit or to the global hotline of Unilever, which strengthens
the transparency and fairness. (Sustainability)
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Unilever Indonesia is a great company since they have a great company governance,
plus they are able to survive and remain as a company of integrity in a corrupt country with an
ineffective judicial system. They give importance to transparency, accountability and fairness.
They know that success depends on the satisfaction of the stakeholders and they do their best
to keep their customers, employees and the the government satisfied.
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Citations
"Indonesia Corruption Report." GANBACP. N.p., n.d. Web. 16 May 2017.
"Our Vision." Unilever Indonesia. N.p., n.d. Web. 16 May 2017.
"Sustainability Report 2013-2014." Together for a Brighter Future Unilever 2013 2014
SUSTAINABILITY Report (n.d.): n. pag. Unilever Indonesia. Web. 16 May 2017.
"Unilever Indonesia on the Forbes Worlds Most Innovative Companies List." Forbes. Forbes
Magazine, n.d. Web. 16 May 2017.
"UNVR: Indonesia Stock Quote - Unilever Indonesia Tbk PT." Bloomberg.com. Bloomberg,
n.d. Web. 16 May 2017.
"What Makes A Company Great?" Forbes. Forbes Magazine, 24 May 2010. Web. 16 May
2017.
"Who Are a Company's Most Important Stakeholders?" Destination Innovation. N.p., 02 July
2012. Web. 16 May 2017.