However, dependency on foreign investments has already had negative impacts on employment and environment in CEE societies [58]. Local companies throughout the region struggle —often unsuccessfully- to compete with large corporations, which benefit from enormous advantage of scale, access to cheaper capital, superior technology and massive advertising budgets.
That multinationals are able to produce greater quantities at less expense and with fewer employees gives them a distinct advantage, but creates the legacy of increased unemployment [59]. By , significant sectors of the Hungarian economy, including brewing, cement, glass, bread, vegetable oil, sugar confectionery, paper and refrigerators were in the hands of foreign multinational corporations. In , nine of the largest ten privatisations went to Western multinational corporations. Eighty-five percent of privatization proceeds came from foreign investors.
Multinationals including Electrolux, Unilever, and General Electric have plucked attractive state enterprises. Promoting unsustainable agriculture Corporations control virtually every step of the food production and distribution system, which is riddled with ecologically unsustainable practices. These agricultural chemicals are responsible for tens of thousands of deaths, and at least a million more farm worker poisonings every year. Global giants such as Phillip Morris, United Fruit, Pepsico, Cargill, Unilever and Nestle oversee vast portions of international agricultural production and trade.
In fact, multinationals either directly or indirectly command 80 percent of the land around the world that is cultivated for export crops such as bananas, tobacco and cotton. Why do you think Unilever considers sustainable agriculture so important?
High-input, industrial agriculture is the way forward. In its publication on sustainable agriculture Unilever sums up the blessings of the Green Revolution. But of course no mentioning of the many experts who claim small-scale agriculture is much more productive and sustainable.
Large-scale, industrialized, high-input agriculture fits in nicely in the corporate project of increasing corporate control of agriculture. Unilever strongly supports the use of biotechnology in agriculture see section three above. Biotechnology is used as a tool to create uniform, standardized crops convenient for industrial processing, or crops with a long shelf life. Unilever tried to create genetically uniform palm trees through tissue culture.
The company wanted to expand its palm oil operations palm trees are grown for the oil in their seeds; the seeds are used for snack foods and industrial lubricants , but the trees were too variable in size to be industrialized. Unilever created large plantations of genetically identical palms -and bought out small farmers, cut down tropical rainforests and displaced indigenous people in the process. Also, processing factories for palm oil caused severe water pollution. Unilever started using GMOs in its food products in a very early stage, even before proper regulation e.
After the quick introduction of GMOs in its foodstuffs, Unilever could claim there was no turning back. The company knows most people cannot stomach the idea of genefoods. Unilever is willfully abusing its customer brand loyalty.
The company takes a country to country position on the subject of GMOs adjusting its strategy to GM sensitivities in local markets.
This statement clearly is very vague, and leaves much room for continuous use of GMOs. Environmental pollution Unilever claims to be concerned for the safety of its operations and the environment but this attitude clearly does not stretch to India. Unilever has recently been accused by Greenpeace of double standards and shameful negligence for allowing its Indian subsidiary, Hindustan Lever, to dump several tonnes of highly toxic mercury waste in the densely populated tourist resort of Kodaikanal and the surrounding protected nature reserve of Pambar Shola, in Tamilnadu, Southern India.
Greenpeace activists and concerned residents cordoned off a contaminated dump site in the centre of Kodaikanal to protect people from the mercury wastes that have been recklessly discarded in open or torn sacks by Hindustan Lever which manufactures mercury thermometers for export, mainly to the United States.
Yet workers at the Indian factory are offered no protection from the mercury spills and several workers have complained of health problems which, they allege, is caused by their exposure to mercury in the workplace. Mercury is highly poisonous and exposure to even the small amount through air, water or skin, exerts severe effects on the central nervous system brain and kidneys.
Foetuses and young children are particularly vulnerable to poisoning by mercury [62]. The Financial Times reports 30 April that Unilever is one of the few companies that have already taken the initiative, reformulating some of its products to make them accessible and affordable to poor in India.
Detergent e. Omo and shampoo, for example, are now available in small sachets that sell for as little as half a rupee in India speaking of excessive packaging! In co-operation with others we support projects that improve health care, rise levels of education, and stimulate local economic and cultural activities. Multinationals are increasingly penetrating the lives of people by taking public space, first of all by advertisements. Unilever also bombard us through sponsorship and the interference with education and science partnerships between universities and the private sector are mushrooming.
The funds would enable the gallery, which opened in May , to commission and exhibit large-scale work known as the Unilever Series each year for the coming five years. At the end of the summer , Unilever claims enthusiastically, two thousand people from Europe headed off for Ibiza!
Collaboration with oppressive regimes Margarine Unie brought major interests in Nazi Germany. What had evoked his respect? Food companies are worried if the problem continues they could face the threat of similar lawsuits to those being brought against tobacco firms. There is also concern governments may try to crack down on fast food advertising or impose mandatory health warnings. All companies at the forefront of promoting unhealthy food worldwide [ready-made microwave meals instead of fresh, whole foods , genetically engineered crops as opposed to organic crops , etc.
The multinational owns many subsidiaries all over the world see section two. Bachelors Beanfeast Unilever was the first multinational company that started using genetically modified GM products. A tiny asterisk attached to the ingredient list was the only mark to warn consumers. Bachelors Beanfeast contained soya beans which had genetic material from a virus, a bacteria and even the petunia plant inserted into them. Effects on the human body could and can not be predicted [10].
Unilever received more than 3, phone calls from angry consumers in the UK. By spring , it was forced to withdraw Beanfeast, its flagship GM food product and to agree to phase out all GM products [11].
New Blue Star Omo was introduced at the end of March [12]. Today, Unilever is aggressively promoting Omo all over Asia and Africa see box below for an illustration , packaged in quantities down to 35 gram. Unilever copied this policy. The company markets Surf in many countries and Omo in the remainder. The products are almost identical. But the packages are dissimilar enough that retailers stock Surf in the same section with Omo, often at the same price, so consumers must believe they are different products [13].
Salesmen are given bicycles with large boxes welded onto the back to transport small packs of detergent powder, margarine, soap and oil. Each salesman visits about 20 to 30 shops, following a fixed itinerary. Slim-Fast see: www. Hunger evidently is a pre-eminent problem in the South, while obesity is a big problem in the North.
Hunger and obesity should be considered as two sides of the same medal. Food corporations can now exploit the opportunities in this case: fighting overweight opened up by the culture of over-consumption, which they themselves have created. As these names suggest, Slim-Fast capitalises on the needs of weight-conscious consumers.
Unilever and Slim-Fast have developed an Internet-based service that offers advice on health management and vitality. No purchase necessary to enter or win; just fill in your details which will be used by the company to sharpen its marketing strategies.
Through their advertisements, Hindustan Lever spreads the message that a light skin is better than a dark skin. This type of advertisement promotes racism. It sends out the message that dark-skinned people are inferior. References [9] Unilever Jaaroverzicht , en verkorte jaarrekening Unilever publication, Dutch version. Entrepreneurs began to package products under brand names and promote them to millions of the new customers. It was the dawn of modern advertising and merchandising. Lever was one of the firsts to discover the efficacy of mass advertising.
Obviously, the budget for marketing and advertising has grown dramatically ever since. Advertising has always been a keystone of the business. The chimp adverts are now the longest — running TV advertising campaign of any brand, having featured in over commercials [36].
You can imagine that Unilever exerts tremendous influence through its ads, penetrating the lives of hundreds of million consumers every day. Unilever targets politicians as well, in order to influence, direct and shape policies. The company takes an active stance, like all other multinationals with huge market power, aiming to create a more favorable business climate.
Another main priority for Unilever is enhancement of its grip on the food chain. The promotion of GMOs and large-scale, export-oriented agriculture fit in this project see below.
Unilever participates in various industry lobby groups such as the International Chamber of Commerce, the Confederation of British Industry , EuropaBio , and undoubtedly has strong connections with many high ranking politicians.
Political lobbying has become more professional and institutionalized during the 90s. It involves not only the targeting of politicians, but of other groups as well employees, consumers, regulators, but most of all ethical or environmental pressure groups and NGOs. Companies generally provide little information about what is actually being said and decided within lobby groups, or claim it to be a-political.
But they all know very well that their economic weight enables them to substantially influence policy decision-making processes, be it informally or formally, indirectly or directly. Economic and political power always come together.
Unilever is a member of several influential lobby groups on the national, European, regional transatlantic and the global level, including:. Our regular surveys, consultations and reports provide grassroots business opinion and have strong influence on governments ministers and officials, MPs, and other decision makers and opinion formers.
This is reflected by our high profile in all kinds of media; each year we generate thousands of newspaper headlines, TV and radio interviews, often directly involving our member companies. BCC web site: www. In fact few policies or bills are written without extensive consultation with the CBI. It has daily contact with every level of government, with civil servants, with Ministers including the PM , and once a bill reaches Westminster with MPs.
CBI web site: www. Membership of the IoD is individual — each member joins the IoD in his or her capacity as a director. In fact its views are more balanced than those of the CBI, as the IoD is an association of people each with an equal say — the majority come from small businesses whereas the CBI is an association of businesses, some of which are larger and more influential.
IoD web site: www. The ERT was formed with the express intention of reviving the EU unification process and shaping it to the preferences of European corporations.
Unlike most other corporate lobby group in Brussels, the ERT has never bothered to lobby on detailed legislation. Virtually the entire European biotechnology industry is united in EuropaBio, which was created in EuropaBio is made up of some companies, ranging from the largest bioindustry companies in Europe including the European offices of US companies like Monsanto to national biotech federations representing small and medium-sized enterprises. Member companies include all of the major European multinationals interested in biotechnology, e.
The main industrial lobbygroup aggressively promoting the commercialisation of GM food in Europe, and ever stricter patent protections for big corporations. Unilever is one of the most influential members of EuropaBio. The TABD arguably is one of the most far-reaching and influential international corporate-state alliances.
Hence some items are for a specific regional market. Whirlpool ownership: Who owns this successful million-dollar business? Current owner and ownership history. Since Unilever operates many local companies, it has to implement a decentralized management style to oversee all of them. Unilever subsidiaries are numerous, but there are three main ones namely:.
They fend off competition from Nestle because both companies see ice-cream as a lucrative business product. Its headquarters are based in South Burlington, Vermont, Canada. Bidco Africa, products, contacts, location. This American based company solely deals with consumer foods and baking. Founded in , it mainly operates in North America and Europe. This Unilever subsidiary has its headquarters in Mumbai, India.
They deal with food, cleaning agents, personal care products, and even water purifiers. Its portfolio had 35 product brands as of Most of its items are mainly for the Asian market. In terms of employment, they have hired thousands of people worldwide.
With global revenue of Unilever PLC P. Weena P. Our deep roots in local cultures and markets around the world are our unparalleled inheritance and the foundation for our future growth. We will bring our wealth of knowledge and international expertise to the service of local consumers--a truly multi-local multinational. Our long term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively and to a willingness to embrace new ideas and learn continuously.
We believe that to succeed requires the highest standards of corporate behaviour towards our employees, consumers and the societies and world in which we live. This is Unilever's road to sustainable, profitable growth for our business and long-term value creation for our shareholders and employees.
If the adage 'two heads are better than one' applies to business, then certainly Unilever is a prime example. The two companies, which operate virtually as a single corporation, are run by a single group of directors and are linked by a number of agreements. Unilever considers itself the second largest consumer goods firm in the world, trailing only Philip Morris Companies Inc.
Unilever's third major sector is that of cleaning products, which is responsible for about 22 percent of turnover; brands include Wisk and All laundry detergents, Snuggle and Final Touch fabric softeners, and Sunlight dish detergents, and this area also includes the company's line of institutional cleaning products. Unilever maintains production facilities in 88 countries and sells its products in an additional About 47 percent of revenues originate in Europe, 21 percent in North America, 14 percent in the Asia-Pacific region, 12 percent in Latin America, and six percent in Africa and the Middle East.
The founder of Lever Brothers, Lever had a personality that combined 'the rationality of the business man with the restless ambitions of the explorer,' according to Unilever historian Charles Wilson. During the depression of the s, Lever, then a salesman for his father's wholesale grocery business, recognized the advantages of not only selling, but also manufacturing, soap, a noncyclical necessity item.
His father, James Lever, initially was opposed to the idea, believing that they should remain grocers, not manufacturers. He softened, however, in the face of his son's determination. In William established a soap factory in Warrington as a branch of the family grocery business. William also began a tradition that lasted well into the 20th century--that of producing all its raw components.
Lever Brothers, a vertically integrated company, grew to include milling operations used to crush seeds into vegetable oil for margarine as well as packaging and transporting businesses for all of its products, which then included Lux, Lifebuoy, Rinso, and Sunlight soaps. He eagerly accepted the opportunity, believing that the margarine business would be compatible with the soap business because the products both required oils and fats as raw materials.
Lever Brothers' successful diversification, however, now put the company in competition with Jurgens and Van den Bergh, two leading Dutch margarine companies. Jurgens and Van den Bergh both began commercial production of margarine in Fierce competitors for the remainder of the century, Van den Bergh and Jurgens decided in to pool their interests in an effort to make the best of the poor economic situation that existed in most of the world.
Competition in the margarine industry had intensified, fueled by an increasing number of smaller firms, which were exporting their products and lowering their prices to get a piece of the market.
Van den Bergh eliminated the potential for problems such as double taxation--which arose from its interests in both Holland and the United Kingdom--by creating and incorporating two parent companies for itself, one in Holland and one in England. In Jurgens and Van de Bergh decided there was strength in numbers and joined with another margarine manufacturer, Schicht, in Bohemia.
In the three companies, borrowing the ideal of a dual structure from Van de Bergh, formed Margarine Union Limited, a group of Dutch firms with interests in England, and Margarine Unie N. Through the middle and late s, the oil and fat trades continued to grow.
Although the activities of Margarine Unie and Margarine Union were focused on edible fats margarine , the companies had held soap interests throughout Europe for years. After two years of discussion, the companies decided that an 'alliance wasted less of everybody's substance than hostility' and merged on September 2, As it does today, the newly formed Unilever consisted of two holding companies: Unilever Limited, previously Margarine Union; and Unilever N.
The new organization included an equalization agreement to assure equal profits for shareholders of both companies, as well as identically structured boards. Unilever's parent companies were actually holding companies supervising the operations of hundreds of manufacturing and trading firms worldwide. The end result of the merger was a company that bought and processed more than a third of the world's commercial oils and fats and traded more products in more places than any other company in the world.
Its manufacturing activities--which included detergents and toilet preparations, margarine and edible fats, food products, and oil milling and auxiliary businesses--were joined by a need for similar raw and refined materials, such as coconut, palm, cottonseed, and soybean oil, as well as whale oil and animal fats. The Great Depression, which struck not long after the new company was formed, affected every aspect of Unilever's multifaceted operation: its raw material companies faced price decreases of 30 to 40 percent in the first year alone; cattle cake, sold as a product of its oil mills, suffered with the decline of the agricultural industry; margarine and other edible fats were affected by damaging competition as the price of butter plummeted; and the company's retail grocery and fish shops saw declining sales.
As prices and profits around the world threatened to collapse, Unilever had to act quickly to build up an efficient system of control. The 'special committee' was established in September of to do that. Operating as a board of directors over the two boards the company already had, the special committee was designed to balance Dutch and British interests and act as an inner cabinet for the organization.
It also began administering two committees established to deal with Unilever's world affairs: a continental committee to handle businesses in Europe, and an overseas committee to supervise business elsewhere. It was Cooper who seemed to lead the efforts to turn the various companies that comprised Unilever into one Anglo-Dutch team.
It was also Cooper who convinced the board of the necessity for a reorganization in , when the relationship between the profit-earning capacities of the Dutch and British companies found itself reversed. Originally, about two-thirds of Unilever's profits were earned by the Dutch group and one-third by the British group.
By , however, because of increasing trade conflicts in Europe, particularly in Germany, the situation had reversed. By selling the Lever company's assets outside Great Britain, including Lever Brothers Company in the United States, to the Dutch arm of Unilever, the assets of the two groups were redistributed so that they would be nearly equal in volume and profits, which had always been the objective of the two parent companies.
Before the oils and fats industries had progressed fairly smoothly. The only major industry breakthroughs were the discovery of the hydrogenation process just before World War I, which enabled manufacturers to turn oils into hard fats, and the possibility of adding vitamins to margarine in the s, which created an opportunity for new health-related product claims. But it was not until the end of World War II that the industry in general, including Unilever, began to recognize the important relationship between marketing and research.
Meantime, Unilever expanded its U. Lipton Company, manufacturer of tea , and the Pepsodent brand of toothpaste Although Unilever's growth until the mids was a result of expanded product lines and plant capacities, its greatest achievements between and were its adaptation to new markets and technology. The decade following World War II was a period of recovery, culminating by the early s in rapid economic growth in much of the Western world.
Until demand continued to rise and competition was not a major issue. Afterward, however, profit margins dropped, competition in Europe and North America sharpened, and success was less assured. Unilever's strategy was to acquire companies in new areas, particularly food and chemical manufacturers.
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