21 Apr Using the marketing mix (i.e., product, price, place, promotion), determine what changes Wendy’s might have to make to its operations if it opens re
Using the marketing mix (i.e., product, price, place, promotion), determine what changes Wendy’s might have to make to its operations if it opens restaurants in the foreign markets highlighted in the case
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Moestopo International Review on Societies, Humanities, and Sciences (MIRSHuS) Vol. 4, No. 1 (2024) pp. 55-66 ISSN: 2775-9601
THE STRATEGY OF UNILEVER'S CORPORATE SOCIAL RESPONSIBILITY 6.0 IN BUILDING CORPORATE PERSONAL BRANDING
Ema Kusuma* Universitas Tama Jagakarsa, Jakarta, Indonesia
Imelda Barus Universitas Tama Jagakarsa, Jakarta, Indonesia
Iswahyu Pranawukir
Institut Bisnis & Informatika (IBI) Kosgoro 1957, Jakarta, Indonesia
*Correspondence: [email protected]
ARTICLE INFO ABSTRACT
Article History: received: 12/03/2024 revised: 05/04/2024 accepted: 24/04/2024 Keywords: The CSR 6.0 Message Management Strategy, Personal Branding, Unilever DOI: 10.32509/mirshus.v4i1.68
The aim of the research is to find out the Corporate Social Responsibility (CSR) 6.0 strategy implemented by the Unilever company in building corporate personal branding. The research approach uses descriptive qualitative with a case study method to describe how Unilever is committed to CSR 6.0 and how this impacts the company's image. The data consists of documentation studies, including: Unilever's sustainability reports, company publications and related articles and research, followed by observations. The research results show that the CSR 6.0 concept is the substance of communication management carried out by Unilever in building personal branding. In fact, the CSR 6.0 concept has had an impact on Unilever's strong corporate personal branding. As for the implementation of communication, the CSR 6.0 strategy is the content of a sympathetic communication management message that Unilever has seven pillars of CSR 6.0 targets: 1) Health and Welfare, 2) Environmental Impact Reduction, 3) Social Inclusion, 4) Empowerment of Farmers and Ranchers, 5) Protection Human Rights, 6) Food and Nutrition Security, 7) Community Engagement.
INTRODUCTION
In the current era, Corporate Social Responsibility (CSR) has become a social responsibility that must be fulfilled by companies towards the community and surrounding environment as part of their business activities. Currently, the CSR concept has developed into CSR 6.0 which places greater emphasis on sustainability and long-term positive impacts on society and the environment (Mujahiddin et al., 2021).
In the Indonesian context, CSR has been stated in the Limited Liability Company Law no. 40 of 2007. Article 74 states that: (1) Companies that carry out their business activities in the field and/or related to natural resources are obliged to carry out social and environmental responsibilities. (2) Social and environmental responsibility is a company obligation that is budgeted for and calculated as company costs, the implementation of which is carried out by taking into account propriety and fairness. (3) Companies that do not carry out their
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obligations will be subject to sanctions in accordance with statutory provisions. (4) Further provisions regarding social and environmental responsibility are regulated by government regulations. On the other hand, the urgency of CSR needs to be based on the company's awareness of the fact, namely that there is an increasingly gaping gap between prosperity and poverty, both at the global and national levels. Therefore, whether it is mandatory or not, CSR must be a commitment and concern from business actors to take a role in reducing humanitarian suffering (Sabini & Ganiem, 2015).
So far, Corporate Social Responsi- bility (CSR) has been widely understood as a component of sustainability or sustaina- bility, meaning that CSR is needed as part of a business program as well as corporate survival. In this context, CSR is no longer about shares but needs. Corporations with large levels of funds for CSR will be seen as "different" by society, which is then believed to have an impact on the sympathetic aspect of the commodities sold. As a result, the greater the scope of CSR management tends to improve the image of a corporation. This argument continues to develop along with the era, which is now in the marketing era 3.0, namely values driven marketing or the simple term values oriented, from previously product oriented and customer oriented. If in legacy marketing the brand was the mainstay, now it has changed to differentiation. Differentiation in relation to CSR has a very synergistic aspect. The inclusive aspect will generate positive social support, because of the character of Indonesian social society which favors openness. At this point, of course, it can be confirmed that to build brand differentiation, CSR is needed. CSR is no longer an ironic social problem of corporations but has become a "strategy". To get maximum support from shareholders and stakeholders requires a strategic effort that is not short (Suyani et al., 2019).
So, Corporate Social Responsibility (CSR) has become an important aspect of business in recent years. Companies are expected to not only seek profits but also contribute to the welfare of society and the environment. CSR has evolved from a
philanthropic activity to a key strategy for sustainable business practices. The latest version of CSR, known as CSR 6.0, emphasizes the need for companies to create long-term positive impacts on society and the environment through their business activities (Riyantie et al., 2021).
Personal branding is also increasingly important for companies to build a positive image and reputation in the eyes of the public and stakeholders. Personal branding is the process of creating a unique image and reputation for a company through actions and communications that are consistent with the company's values and goals (Kevin & Paramita, 2020).
Along with the development of the CSR concept, corporate personal branding is also increasingly important in building a positive company image in the eyes of the public. Personal branding is an effort to build a strong and convincing company image through various actions and communications that are consistent with company values (Andriyanty et al., 2021).
As a large multinational company, Unilever has taken steps to implement a CSR 6.0 strategy in its business activities. Apart from that, Unilever is also active in building corporate personal branding through the various CSR programs it carries out. Therefore, this article will discuss the CSR 6.0 strategy implemented by Unilever in building strong corporate personal branding.
Unilever has actually been a pioneer in implementing the CSR 6.0 strategy. Unilever has adopted a holistic approach to CSR, integrating it into its business operations and supply chain. The company has also launched many CSR programs aimed at improving people's lives and a "friendly" environment. Therefore, it is not surprising that Unilever has succeeded in building a strong personal branding image and gaining high trust from society at large.
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Figure 1. Unilever's CSR Program Source: Planet and Society Unilever
From Figure 1, it can be seen that a
systematic program has been conceptualized and formulated with clear steps. CSR planning is focused on long-term and sustainable implementation. Three important keywords to underline are sustainable growth, global leader and brands. This indicates aspects of sustainability, Unilever's leading role and brand differentiation (Planet & Society Unilever, www.unilever.com). This means that Unilever's CSR program has included a very clear road map for achieving strong personal branding.
In this context, this article aims to determine the content of Unilever's message in implementing the CSR 6.0 strategy known as the 7 Pillars of CSR Targets, as well as the impact on the personal branding that has been achieved. Apart from that, communication barriers are also part of the research objectives that we want to know.
Theoretically, personal branding refers to the process of building an image and reputation of oneself or an entity (such as a company or product) that is unique and consistent in the minds and perceptions of other parties. This theory focuses on how a person or entity can create and maintain a positive and consistent image or branding in the eyes of other parties (Setiawati et al., 2019).
Personal branding theory involves several important concepts and elements, including: 1) Values and goals. Personal branding starts with establishing the values and goals you want to achieve. These values and goals must be consistent with the image
you want to produce. 2) Personal branding platform. Personal branding platforms are media or channels used to build image and reputation. This platform can be in the form of social media, websites, publications and so on. 3) Personal branding message. Personal branding messages must be consistent with the values and goals to be achieved. This message must be conveyed in a creative and interesting way so that it can attract the attention of other parties. 4) Consistency. Personal branding must be consistent in all aspects, from message, platform, to actions and behavior. 5) Differentiation. Personal branding must be unique and different from other parties or other entities. This is necessary in order to differentiate yourself from others and attract the attention of other parties.
In a business context, personal branding theory can be applied to companies or products to build a positive image and reputation in the eyes of consumers and other stakeholders. Strong personal branding can help a company or product differentiate itself from its competitors and build better relationships with consumers and other stakeholders.
Companies can apply personal branding theory in practice in several ways, including (Kusnadi, 2021): 1) Establish company values and goals. The company must determine the values and goals it wants to achieve. This must be communicated consistently to all employees and other stakeholders, so that it can help build a positive company image and reputation. 2) Using the right personal branding platform. Companies must choose the right personal branding platform to build the company's image and reputation. Platforms can be social media, websites, publications and so on. Companies must ensure that the platform used can reach the target audience appropriately. 3) Convey personal branding messages consistently. Companies must convey personal branding messages that are consistent with company values and goals. This message must be conveyed in a creative and interesting way so that it can attract the attention of other parties. 4) Maintain consistency in all aspects. Companies must maintain consistency in all aspects, from messages,
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platforms, to actions and behavior. This can help build a positive and credible company image and reputation. 5) Differentiate from competitors. Companies must create an image and reputation that is unique and different from their competitors. This can help differentiate a company from its competitors and attract the attention of consumers and other stakeholders.
In applying personal branding theory, companies ensure that all aspects of personal branding are consistent and well integrated. Companies must also be able to monitor the response from consumers and other stakeholders to the personal branding that has been built, so that they can identify areas that need improvement and improve the company's overall image and reputation (Misnan & Barizki, 2021).
CSR (Corporate Social Responsi- bility) refers to a company's social responsibility in considering the impact of its business activities on society and the surrounding environment. This theory emphasizes that companies are not only responsible for making profits, but also must make positive contributions to society and the surrounding environment (Sabini & Ganiem, 2015). Therefore, CSR theory involves several important concepts and elements, including: 1) Social responsibility. Companies have a responsibility to consider the impact of their business activities on society and the surrounding environment. 2) Sustainability. Companies must consider the long-term impact of their business activities on society and the surrounding environment. 3) Transparency. Companies must be transparent in reporting the impact of their business activities on society and the surrounding environment. 4) Collaboration. Companies must work together with various parties, including governments, civil society organizations, and academic institutions, to achieve the goals of their CSR activities. 5) Stakeholder involvement. Companies must be able to involve stakeholders in their CSR activities, including employees, consumers, suppliers and the surrounding community.
In a business context, CSR theory can be applied in company practice in several ways, including (Suyani et al., 2019): 1) Integrate CSR into the company's business strategy. Companies must integrate CSR
activities into their business strategy, so that they can create a long-term positive impact on society and the surrounding environment. 2) Involving stakeholders in CSR activities. Companies must involve stakeholders in their CSR activities, so that they can ensure that the activities carried out can provide maximum benefits for the community and the surrounding environment. 3) Applying sustainability principles in business activities. Companies must consider the long-term impact of their business activities on society and the surrounding environment, so that they can create a sustainable business. 4) Transparency and accountability. Companies must be transparent in reporting the impact of their business activities on society and the surrounding environment, so as to ensure company accountability towards stakeholders. 5) Collaboration with various parties. Companies must work together with various parties, including governments, civil society organizations, and academic institutions, to achieve the goals of their CSR activities. This can help increase the effectiveness of CSR activities and create a greater impact on society and the surrounding environment.
In applying CSR theory, companies must ensure that the CSR activities carried out are consistent with the company's values and goals and have a positive impact on society and the surrounding environment. Companies must also monitor the response from stakeholders to the CSR activities carried out, so that they can identify areas that need improvement and increase the overall effectiveness of CSR activities (Pranawukir & Sukma, 2021).
On the other hand, CSR 6.0 is actually a historical construction in CSR implementation. Therefore, CSR 1.0 to CSR 6.0 is a term used to describe the development of the CSR paradigm from time to time (Unilever Financial, 2020). CSR 1.0: The initial phase of CSR that focused on philanthropy and social care without business involvement. CSR 2.0: The phase when companies begin to see CSR as part of their business strategy and creating shared value for stakeholders. CSR 3.0: The phase when companies begin to collaborate with other parties, such as government, civil
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society, academia and the media to achieve larger social and environmental goals. CSR 4.0: The phase when companies begin to use digital technology and innovation to increase the positive impact of CSR and reduce the negative impact on business. CSR 5.0: The phase when companies begin to adapt to global challenges, such as climate change, social inequality, health crises and others, in a proactive and responsive way. CSR 6.0: The phase when companies begin to transform into agents of change that contribute to achieving the Sustainable Development Goals (SDGs) (CSR 6.0 Summit (Feb 2023), San Francisco USA – Conference (https://10times.com)).
What all CSR paradigms have in common is that companies have social and environmental responsibilities that must be fulfilled. The difference lies in the method, scope, objectives and impact of CSR activities carried out by the company.
There is quite a lot of previous research relevant to the topic of this article. First, entitled: “Corporate Social Responsibility (CSR) Implementation: A Review and a Research Agenda Towards an Integrative Framework”. The research results show that the literature on CSR implementation is still limited and spread across various fields and perspectives. The author found that CSR implementation is influenced by various internal and external factors at the individual, organizational and institutional levels. The authors also found that CSR implementation has various impacts on a company's social, environmental and financial performance, as well as on employee satisfaction, commitment and behavior. The conclusion of this journal is that CSR implementation is an important and challenging topic that requires further research that is multi-level, theoretical and contextual. The author also proposes an integrated framework that can be used as a guide for researchers and practitioners to understand and implement CSR effectively (Fatima & Elbanna, 2023). Second, from the International Journal of Corporate Social Responsibility entitled: “Towards a Definition of Sustainable Banking – A Consolidated Approach in the Context of Guidelines and Strategies”. In general, this journal provides new insights
and contributions on various aspects of CSR, including definition, implementation, impact, challenges and opportunities. This journal also displays several case studies and best practices from various sectors and countries which can be used as inspiration and reference for researchers and practitioners. The conclusion of this journal is that CSR is a dynamic and relevant field that requires attention and collaboration from various parties to create shared value for companies, society and the environment (Riegler, 2023). Third, “Corporate Social Responsibility (CSR) Issues in the Context of National Economic Development”. The results of this journal's research show that companies in Indonesia still face various problems in implementing CSR, including high costs, low competence, and a wide social scope. The author finds that these problems can hinder the achievement of CSR goals and national economic development. The conclusion of this journal is that efforts are needed to improve CSR performance and its contribution to national economic development, such as increasing management awareness and commitment, strengthening government regulations and supervision, and involving the community in the CSR process. The author also suggests that companies adapt the latest CSR concept which is more holistic and innovative in building corporate personal branding (Retnaningsih, 2015). In terms of differentiation, the Unilever case study is different from the three journals because it focuses on a specific case study about Unilever, a multinational company known for its CSR practices. This article is also different, because it uses the concept of CSR 6.0, which is a new paradigm in CSR that combines social, environmental, economic, spiritual, cultural and political aspects. In addition, this article emphasizes the relationship between CSR and corporate personal branding, namely the way a company builds its image and reputation in the eyes of the public through its CSR practices.
In terms of urgency, this article has high urgency because it provides real and actual examples of how companies can implement CSR strategically and innovatively to create shared value for the
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company, society and the environment. This article is also important because it provides insight and inspiration for other companies who want to follow Unilever's footsteps in implementing CSR 6.0 and building a strong and positive corporate personal brand. Apart from that, it also contributes to the development of literature and knowledge about CSR 6.0 in relation to corporate personal branding.
In terms of novelty, this article is novel because it uses the CSR 6.0 concept, which is a new paradigm in CSR that has not been widely researched and practiced by companies. Apart from that, this article also examines Unilever's CSR 6.0 strategy in building corporate personal branding in depth and comprehensively, which has not been widely discussed in previous literature. METHOD
This research use desciptive qualitative approach (Fadli, 2021) with a case study method involving Unilever as the unit of analysis. Case studies are chosen because they can provide an in-depth and holistic understanding of the phenomenon under study (Asro et al., 2023), and allows the use of primary and secondary data from various sources (Muliani et al., 2020).
Primary data was collected through documentation studies (Rochmah et al., 2023). The documents studied include websites, social media, publications (Saputra, 2019). Meanwhile, secondary data was collected from articles about CSR (Juwairiyah et al., 2021). Observations were made on Unilever's CSR practices which can be observed directly or through online media, such as social, environmental, economic, spiritual, cultural and political programs carried out by Unilever (Mahida et al., 2019).
The qualitative data analysis technique uses the Miles, Huberman and Saldana (2014) model in (Mujahiddin et al., 2021). This technique includes three stages, namely data reduction, data presentation and drawing conclusions. Data reduction was carried out by transcription, coding, categorization and thematization of the primary and secondary data collected. Data presentation is carried out using descriptive narratives, tables, diagrams and pictures to
illustrate the results of data analysis. Conclusions are drawn using inductive and deductive logic to answer the problem formulation and research objectives (Murti, 2016). RESULT AND DISCUSSION Unilever has carried out CSR 1.0 to CSR 6.0 stages
CSR 1.0 is the initial paradigm in CSR which focuses on philanthropy and the moral obligation of companies to provide donations or assistance to communities in need. CSR 1.0 is not integrated with the company's business strategy and is only carried out as a form of social responsibility that is voluntary and sporadic. CSR 1.0 that has been carried out by Unilever includes forming the Unilever Indonesia Foundation (UIF) in 1993 as a forum for carrying out the company's CSR programs. UIF has three main pillars in implementing its programs, namely improving living standards, the environment and welfare and nutrition.
Some examples of CSR 1.0 programs that have been carried out by Unilever through UIF are: a) Natural disaster relief programs, such as earthquakes, tsunamis, floods, volcanic eruptions and others. This program aims to provide assistance in the form of money, products, health facilities and psychological support to victims of natural disasters. b) Educational scholarship programs, such as the Unilever Scholarship Program and the Unilever Indonesia Foundation Scholarship Program. This program aims to provide assistance with educational costs to underprivileged outstanding students from various levels of education. c) Community empowerment programs, such as Unilever Cares for Fishermen and Unilever Cares for Farmers. This program aims to improve the welfare and skills of fishing communities and farmers who are Unilever's business partners through training, guidance, facilities and incentives.
CSR 2.0 is an advanced paradigm in CSR that focuses on integration between social responsibility and company business strategy. CSR 2.0 is not only carried out as a moral obligation, but also as an opportunity to create shared value for the company,
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society and the environment. CSR 2.0 also involves participation and collaboration from various stakeholders in formulating and implementing CSR programs.
CSR 2.0 that has been carried out by Unilever includes developing the Unilever Sustainable Living Plan (USLP) in 2010 as a long-term action plan which aims to improve people's health and welfare, reduce environmental impacts, and increase inclusive growth. USLP has three main objectives, namely: a) Improve the health and well-being of more than one billion people by 2020 by providing products that help improve hygiene, nutrition and healthy skin and hair. b) Halve environmental impact by 2030 by reducing the carbon, water and waste footprint of Unilever products throughout their life cycle. c) Increase inclusive growth for millions of parties by 2020 by increasing sources of income, skills and opportunities for Unilever farmers, suppliers, distributors, employees and consumers.
Some examples of CSR 2.0 programs that have been carried out by Unilever through USLP include: a) Lifebuoy Handwashing Campaign, which is a global campaign that aims to increase the habit of washing hands with soap among children and their families to prevent diseases that can occur. prevention such as diarrhea and pneumonia. b) Knorr Future 50 Foods, which is a global initiative that aims to increase food diversity and nutrition by promoting 50 types of plant-based foods that are good for health and the environment. c) Dove Self-Esteem Project, which is a global project that aims to increase self-confidence and positive body image among children and young women by providing education and resources about real and inclusive beauty. d) Ben & Jerry's Social Mission, namely the social mission that is an integral part of the Ben & Jerry's ice cream business which aims to create positive social change through advocacy and action on issues such as climate change, racial equality, LGBTQ+ rights, participatory democracy and world peace.
Apart from USLP, Unilever is also carrying out various other CSR 2.0 initiatives in line with changes in consumer behavior during the COVID-19 pandemic. For
example: Unilever Indonesia saw and responded to a significant increase in demand for products related to hygiene and health. To anticipate weakening consumer purchasing power, Unilever Indonesia launched products in more economical packaging sizes and prices. Apart from that, Unilever Indonesia also collaborates with various parties such as the government, social organizations, online media, e- commerce and others to provide assistance in the form of products, donations, education, health facilities and psychological support to communities affected by the pandemic.
CSR 3.0 is the latest paradigm in CSR which focuses on innovation and corporate business transformation to create solutions that can solve pressing social and environmental problems. CSR 3.0 is not only carried out as an opportunity, but also as a responsibility to contribute to the achievement of the Sustainable Development Goals (SDGs) agreed upon by the world. CSR 3.0 also involves creativity and collaboration from various parties in creating sustainable shared value.
CSR 3.0 that has been carried out by Unilever includes launching Unilever Compass in 2020 as a sustainable business strategy that aims to achieve consistent, competitive, profitable and responsible growth. Unilever Compass has four main pillars, namely: a) Building purpose-led brands that can provide social, environmental and economic benefits for consumers and society. b) Increasing operational excellence by using digital technology, data and innovation to increase efficiency, productivity and quality of products and services. c) Encouraging an inclusive culture by realizing diversity, equality and prosperity among Unilever employees and business partners. d) Maintaining trust by maintaining integrity, transparency, accountability and responsibility in all aspects of Unilever's business.
Some examples of CSR 3.0 programs that have been carried out by Unilever through Unilever Compass are: a) The Vegetarian Butcher, a brand of plant-based meat products that was acquired by Unilever in 2018 with the aim of providing delicious
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and nutritious vegetable protein alternatives for consumers. The Vegetarian Butcher products use high-quality plant- based ingredients, innovative technology and environmentally friendly production processes that reduce carbon footprints and use of natural resources. b) Horlicks Protein Plus,