Paul Diegel, Paul Diegel,

Carrie Bancroft,Carrie Bancroft,

Rhiannon JohnsonRhiannon Johnson

Unilever Indonesia:The Oxfam Perspective

Unilever Indonesia:The Oxfam Perspective

Shared Vision, Different Perspectives

Shared Vision, Different Perspectives

Vision Unilever and Oxfam share a commitment to global poverty

reduction

Differences: Unilever: CSR reporting can be reviewed internally Oxfam: CSR reporting requires external review for

accountability

Solution: Four independent Indonesian researchers and one report

author were jointly chosen by both

Vision Unilever and Oxfam share a commitment to global poverty

reduction

Differences: Unilever: CSR reporting can be reviewed internally Oxfam: CSR reporting requires external review for

accountability

Solution: Four independent Indonesian researchers and one report

author were jointly chosen by both

StakeholdersStakeholders

Represented Unilever / Precor Oxfam Suppliers Community / Consumers Distributors

Not Represented Primary Producers Contracting Workers Other Multinationals Local Competitors Environment Other NGOs

Represented Unilever / Precor Oxfam Suppliers Community / Consumers Distributors

Not Represented Primary Producers Contracting Workers Other Multinationals Local Competitors Environment Other NGOs

Decision MakingDecision Making

Different perspectives

Mixed project team

MOU, TOR, Principles

Data from >400 people

Limited data: supply side

Discussion to agreement

Mutual understanding

Differing viewpoints described

Different perspectives

Mixed project team

MOU, TOR, Principles

Data from >400 people

Limited data: supply side

Discussion to agreement

Mutual understanding

Differing viewpoints described

Aspects of JusticeAspects of Justice

Mainly restorative in creating a more competitive business environment

Standards for pay scales, indigenous managers, laborer

age

Build supplier infrastructure

Philanthropy

Public stand against corruption

Actions that help Unilever + help Indonesian businesses

compete globally

Mainly restorative in creating a more competitive business environment

Standards for pay scales, indigenous managers, laborer

age

Build supplier infrastructure

Philanthropy

Public stand against corruption

Actions that help Unilever + help Indonesian businesses

compete globally

UI Impact on IndonesiaUI Impact on Indonesia

Effects on Supply Chain Providers Contract Workers

Effects on Demand Customers Local Markets

Effects on Environment Sachet production / consumption Production and supply

Effects on Supply Chain Providers Contract Workers

Effects on Demand Customers Local Markets

Effects on Environment Sachet production / consumption Production and supply

Change in Oxfam & UIChange in Oxfam & UI

Greater understanding between Oxfam & UI

Commitment to poverty reduction & development

Cooperative effort possible

Discussion & dialogue → new insights

Oxfam: recognizes each multinational should be

viewed on its own merits

Greater understanding between Oxfam & UI

Commitment to poverty reduction & development

Cooperative effort possible

Discussion & dialogue → new insights

Oxfam: recognizes each multinational should be

viewed on its own merits

UI Business RelationshipsUI Business Relationships

Focused on UI needs

Builds capacity to meet needs

Competitive, power imbalance

Built reliable infrastructure

Local relationships economical

Uninvolved beyond direct links

Focused on UI needs

Builds capacity to meet needs

Competitive, power imbalance

Built reliable infrastructure

Local relationships economical

Uninvolved beyond direct links

Cultural Influnces on Business Practices

Cultural Influnces on Business Practices

Corporate worldwide guidelines vs. local customsUI followed some local customs:

Contract labor and gender roles Unique local distribution and retail

…and broke out of others:

Government corruption Improved wages Products in smaller packages

How to break cultural barriers? Is that the company’s responsibility?

Corporate worldwide guidelines vs. local customsUI followed some local customs:

Contract labor and gender roles Unique local distribution and retail

…and broke out of others:

Government corruption Improved wages Products in smaller packages

How to break cultural barriers? Is that the company’s responsibility?

Impact of UI on IndonesiaImpact of UI on Indonesia

Positive Impacts Greater wealth creation for farmers, some contractors Better working conditions for some contractors Creation and placement of affordable products for poor people

(sachets) Proof of the possibility of genuine collaboration between a

multinational and an NGO

Concerns Disparity between direct employees and contractors in the

supply chain Environmental impacts of excess packaging Marketing to poor people raises many ethical questions UI potential market consolidation Farmers’ increasing dependence on UI

Positive Impacts Greater wealth creation for farmers, some contractors Better working conditions for some contractors Creation and placement of affordable products for poor people

(sachets) Proof of the possibility of genuine collaboration between a

multinational and an NGO

Concerns Disparity between direct employees and contractors in the

supply chain Environmental impacts of excess packaging Marketing to poor people raises many ethical questions UI potential market consolidation Farmers’ increasing dependence on UI

Implications & LearningsImplications & Learnings

Private Sector: “Important engine of development”

Business benefit integrated

Fine line to balance

Check with outside perspective

Interpretation of standards

Ensure diverse economy

More research needed

Private Sector: “Important engine of development”

Business benefit integrated

Fine line to balance

Check with outside perspective

Interpretation of standards

Ensure diverse economy

More research needed