1-Unilever’s motives to undertake such ambitious programs for sustainability development was to use one of their main products which is palm oil to grow in hopes of bettering their economic situation. “Palm oil offers two major benefits to manufactures and growers. First the yield of palm oil is higher than that of any other edible vegetable oil source. Second, the properties of palm oil allow for its use with less processing, saving both time and money.” (283) Unfortunately, this has had a highly negative impact on the countries it was being grown in. Specifically the environment has seen the rough end of it as well as people have been relocated to make room for the plantations, and local people had been affected economically.
These large plantations often have lots of conflict between local communities and estate investors. The government promotes palm plantation growth because of the financial opportunities; however, the benefits rarely make it to the homegrown people. Unilever must implement their sustainability development plans in order to decrease the negative impacts of the palm oil plantations and continue to expand, which will help to keep their business successful.
2-To improve the wages and living conditions of the oil palm and workers worldwide, Unilever needs plans to equalize production with the demands of the product in order to circumvent a reduction in prices and palm oil. Decreasing the high numbers of negative impacts of the palm oil trees in order to socially be excepted and improve living conditions for the locals would be a help to their industry. The triple bottom line shows that Unilever depended on economic, environmental, and social assets. They company used this concept to show why Unilever needed to preserve these assets. “ The strategies now guide Unilever’s worldwide operations.” (285) If Unilever continues to improve all aspects of this triple bottom line; they will accomplish their goals as a company and therefore become more sustainable.
3-This is where the triple bottom line comes into play. Unilever can control how the oil palm industry is run in Ghana by enforcing this. Unilever has complete control to make sure that the products are grown in a environmental friendly way or to the standards of living from the locals. Unilever should encourage the locals to work within the palm industry because if they do it in the correct way, it can be helpful to their economy as well as profits for them. It can potentially be a very positive decision for their economy. Such actions can improve the corporation image and reputation as well as have advantages in recruitment and in labor disputes. It can also increase employee loyalty and customer loyalty. They also build a strong connection between social and performance and economic performance.
4-The impacts of the Unilever’s divesting itself of the palm plantations will not have full control over the industry. Fortunately, they will still have an input. They will still have influence over the triple bottom line of oil palm industry; however, it will not be nearly as much as they have had in the past. In giving up this control, they no longer have to feel the economic pressures in order to demonstrate profitability, limited company vision (shortsighted and internally focused), and the lack of leadership to champion and sustain efforts
Finally the 4 questions are