2.

CORPORATE SOCIALRESPONSIBILITY
2.1 Philanthropy
A notable trend emerging from the CSR policies of each brand is
anemphasis on philanthropy and the development of partnerships withcha
rities and community organizations. Leah Armstrong,
Sustainability and philanthropy top CSR agenda
2.1.1 Unilever United StatesFoundation
The Foundation makes contributions to recipients with clearly
defined,achievable goals that have demonstrated their effectiveness and
fiscalresponsibility.Sample grants:
$ 15,000 to African Medical & Research Fund , New York , NYAmerican Cancer
Society, Multiple Locations$ 4,000 to Cardinal Shehan Center , Bridgeport , CT$
10,000 toEducational Broadcasting Corporation, New York , NY$ 20,000 to Food
Research & Action Center , Washington , DC$ 1,500 to Greater Chicago Food
Depository , Chicago , ILHabitat for Humanity, Multiple Locations$ 6,000 to Jackie
Robinson Foundation , New York , NY$ 1,500 to Jefferson City Community Concert
Association , Jefferson City , MO$ 60,000 to Juvenile Diabetes Research Foundation
of New York , New York , NY$ 15,000 to Kids in Crisis , Cos Cob , CT$ 3,000 to Larkin
Center (IL) , Elgin , IL$ 5,000 to Liberty Science Center , Jersey City , NJ$ 3,000 to
Manhattan Institute for Policy Research , New York , NY$ 1,000 to Maryland School
for the Blind , Baltimore , MD$ 3,000 to NOW Legal Defense & Education Fund , New
York , NY$ 21,000 to National Black MBA Association , Chicago , IL$ 3,000 to
National Legal Center for the Public Interest$ 3,000 to National Womens Law
Center , Washington , DC$ 5,000 toNew York Botanical Garden, New York , NYSpecial
Olympics, Several Locations$ 5,000 to Stevens Institute of Technology , Hoboken ,
NJ$ 63,000 to Student Conservation Association , Charlestown , NH$ 25,000 to Third
Way Foundation , Washington , DC$ 4,000 to Tuskegee University , Tuskegee , AL$
6,000 toUnited Way of Central Maryland, Baltimore , MD
$ 5,000 to Victory Junction Gang Camp , Randleman , NC$ 3,000 toWashington
Legal Foundation, Washington , DC
.1.2 Internet News

Knorr Donates P1 Million to a Feeding Program

If you watch local TV channels
regularly, you've probablyseen the Knorr Cubes commercial where Chef TristanEncar
nacion challenged Filipino consumers to present aseasoning granule with more mea
t content than KnorrChicken
Cubes. The deal was, if a consumer finds a seasoning granulemeatier than Knorr

Chicken Cubes, he or she can get a prizeof P1 million. But, should there be no
product proven to
bemeatier, the P1 million prize will be donated to fund afeeding program to help im
prove the nutritional level of Filipino
kids.Unilever Philippines tapped Eurofins Analytik Gmbh, an independent third party
testing firm in Germany, and worked in accordance with an FDA-approved
testingprotocol for meat content analysis to ensure credibility. Despite the entriessu
bmitted, results showed that Knorr Chicken Cubes' meat content is at least
fivetimes more than other local brands'.Chef Tristan affirms, When it comes to
making great soups, no other brand beatsKnorr Cubes! For me, soup is not a good
enough soup without the very meaty tasteof Knorr
Cubes.And since no one won the challenge prize, Knorr Cubes donated P1 millionto
Kabisig ng Kalahi
a non-government organization that does community-basedfeeding programs in
selected depressed communities in the Philippines. The money will greatly help
address hunger andmalnutrition, which continue to affect thousandsof school-age
Filipino children. One province at
atime, Knorr is making a dent in reducing thenational malnutrition level among
school childrenthrough its
Makulay ang Buhay ng Batang Pinoy
(MBBP) feeding program.According to Ms. Bajeng Cruz, Knorr BrandManager, they
chose Kabisig because it "has amodule that's already working so we need not
reinvent the wheel to do somethingabout children's malnutrition." Knorr has been
partnering with Kabisig since
2002in operationalizing a feeding program. The P1 million donation will providehund
reds of children with nutritious meals and will help in training more parents to

P a g e4 7
prepare healthy, affordable meals for their families. To date, the MBBP
feedingprogram has already benefited more than 20,000 malnourished Filipino
children.Our commitment to good food goes beyond providing excellent cooking
aids,says Cruz. We believe that good food matters and the
Sabaw Challenge
gave usan opportunity to live out that commitment by offering undernourished kids
andtheir families the value of quality and healthful cooking. We can only be
veryhappy and proud to be of help in this way. The P1 million donation was turned
over to Ms. Vicky Wieneke of Kabisig
ng Kalahilast March 16 in a ceremony witnessed by members of the media in theMa
gkaibigan Hall at the Unilever compound in Manila

P a ge67

Our target
As part of our Sustainable Living Plan we have set the following target:We will use
our toothpaste and toothbrush brands and oral health improvementprograms to
encourage children and their parents to brush day and night. We aimto change the
behavior of 50 million people by 2020.
Brush Day and Night
Signal, Pepsodent and Close Up's mission is to improve oralhealth by getting
children and their families around the worldto brush day and night using fluoride
toothpaste. Brushinghabits that last are best forged during childhood, so we
arefocusing our campaigns on instilling good habits from anearly
age. The Brush Day and Night message focuses on the singlechange that World
Dental Federation (FDI) experts and dental professionals agreewill improve oral
health globally. The campaign is built around the insight thatparents often find it
difficult to get children to brush their teeth. Rather than beinga chore, brushing
teeth together at night can become an opportunity for passingon good habits
through shared fun. The Brush Day and Night television campaign shows the
amusing times that afather and son share when brushing their teeth together at
night. The campaignhas been supported by a website where people can share their
own videos andexperiences. The campaign is already established in France, Italy,
Greece, Indonesia, Vietnamand Morocco and will be extended to more than ten
countries in 2011. In 2010 weestimate that the campaign effectively reached 10
million children. The Brush Day and Night campaign builds on our unique
partnership with the FDIWorld Dental Federation, known as Live.Learn.Laugh, that
was first established in2004 to promote oral health.2010 marked the start of a
second phase of partnership with the FDI that will
againsupport national dental associations around the world to work with their localU
nilever oral care brand. The partnership provides funding for oral healthpromotion
projects, the national dental associations identify suitable projects andthen develop
and promote them with Unilever and the FDI. In 2011 more than 30country teams
are set to launch projects which, like our Brush Day and
Nightcampaign, seek to improve oral health through encouraging twicedailytoothbrushing with fluoride toothpaste.We also run oral hygiene programs
based in schools. We estimate that these reachmore than 4 million children a year.
Affordability
Our products are priced very competitively and offer good value for money bygiving
consumers performance they can depend on at an affordable price. We offersmall
pack sizes of Close Up and Pepsodent which bring our products within reach

P a ge6 8
of low- income consumers. We also develop new products, for example in 2008
welaunched the Pepsodent Smart Clean, a quality toothbrush that costs just 10rupe
es in India (or approximately 16 euro cents).
Improving self-esteem
Low self-esteem is a common issue, especially among young girls, andcan
increase the risk of problems such as eating disorders. Brands suchas
Dove are pioneering new ways to engage with consumers.Dove a clear
mission
The vision of one of our founders, William Lever, was toimprove women's well-being
by making everyday productsmore affordable. Today Dove is committed to helping
youngpeople to develop a positive self-image from an early age. The long-standing
Dove Self-Esteem Fund (DSEF) campaignis educating and encouraging young
people to help raise their self-esteem
andbuild a positive relationship with beauty, enabling them to realize their fullpoten
tial in life. The initiative had already helped 6.9 million young people through
educationalprograms by the end of 2010. As part of the Unilever Sustainable Living
Plan, wehave set a target to help 15 million young people by
2015. The Fund has supported partners in 26 countries. Successes in 2010 haveincl
uded:

sending a Self-Esteem Workshop Guide for Teachers to 9 000 junior highschools in

France

training teachers and youth workers with the Dove BodyThink materials inAustralia

reaching over 70 000 young people and their mentors in Mexico with avariety of
body confidence programs.People can also join the online Dove Movement for SelfEsteem, launched in the USand Canada. Members help run youth groups and school
programs and projectssuch as mother-and-daughter workshops, the idea being to
make such schemesself-sustaining. Over 12 000 girls benefited from 696 workshops
over a weekend inOctober 2010.Our analysis shows that supporting this cause is
good for business too. 56% of women are more likely to buy Dove following
campaigns such as the Campaign forReal Beauty
Vaseline Skin Fund
Skin conditions such as eczema often cause great discomfortand can have a
negative impact on people's well-being. Vaselinehas been an expert in caring for
skin since 1870 and has built a

P a ge6 9
reputation for trust; it is therefore well placed to provide support and informationon
many aspects of skincare. With this in mind, the Vaseline skincare brand
teamestablished the Vaseline Skin Fund to improve the lives of those affected by
skinconditions.Guided by an external advisory board, the Vaseline Skin Fund (VSF) ai
ms toprovide access to knowledge, advice and support for 3 million people
sufferingfrom skin conditions by the end of 2012. The Fund works with not-for-profit
andeducational organizations to support people living with conditions such as
eczemaand ichthyosis. It also supports patient advocacy organizations such as theC
oalition of Skin Diseases in the US. Among other activities, the VSF donated fundsto
allow 126 children with serious genetic skin disorders, and their families, toattend

an activity camp and receive specialist advice in the US.We estimate that more than
1.3 million sufferers benefited in 2010, either directlyor via their health practitioner.
An educational film called Starting from Scratchproduced with the USs National
Eczema Association, reached an estimated
156000 patients and their careers. In Portugal, the Vaseline Skin Fund supportedpso
riasis charity PsoPortugal in their efforts to get the condition recognized as achronic
disease, thus helping at least 5 000 sufferers. And over a million
peoplewere the end beneficiaries of a continuing medical education unit onpsychod
ermatology and skin care, a web-based education program that leads to acertificate
for doctors. The program was accessed by medical practitioners in morethan 100
countries including the US, Saudi Arabia, India and Egypt

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Meeting the criteria for sustainable sourcing
We use a variety of ways to ensure that our supplies of raw materials meet
oursustainable sourcing requirements. We can do this either through thirdpartycertification, or through a combination of self-verification and performancerepo
rting.We are working with certification organizations such as the Rainforest Alliance
(fortea), the Roundtable on Sustainable Palm Oil (for certified sustainable palm oil)
andFairtrade (for Ben & Jerrys ice cream ingredients).However, external
certification will not work across the board. Sometimes thesestandards do not apply
to all types of raw materials or geographies. And it is
verydifficult for us to work with hundreds of different national and cropspecificschemes. Where certification standards do not exist, our approach is tosuppl
ement our certified partnerships with a system based on self-verification.
Laying the foundations of our Sustainable Agriculture Code
Unilever has been carrying out research into sustainableagriculture since the mid1990s. Our Lead AgricultureProgrammes have investigated a range of techniques
to reducethe environmental impact of farming, while maintaining yieldand profits
for farmers.We started with a focus on five key crops palm oil,
peas,spinach, tea and tomatoes. While some of these programscontinue today, we
have now extended our work into other
cropsand ingredients, for example fruit and vegetables, gherkins,dairy, eggs and
vegetable oils. Throughout we have worked closely with
local growers and planters, researchinstitutes, industry and farmers associations, lo
cal government, NGOs andsometimes community groups.We began publishing
these techniques for all our key crops in Good AgriculturalPractice Guidelines
booklets. In 2004, we started engaging our growers in the

useof these Guidelines, in co-operation with other partners. This led to severalchang
es and improvements leading up to the publication of the UnileverSustainable
Agriculture Code in April 2010.
2.3.3 Enhancing livelihoods
Our business generates wealth and creates jobs in the communitieswhere
we operate.Supporting economic development
Employees, governments, investors and many others benefit economically fromour
activities. A growing opportunity for us is to meet the needs of lowincomeconsumers in emerging markets. Whether it is through new distribution
channels,using smaller, more affordable formats or creating new products, we are
trying todevelop business models to reach new consumers. We seek to raise the
skills and

P a ge8 3
productivity of the farmers and small businesses we work with so they canincrease t
heir incomes and improve their standard of living. As part of ourSustainable Living
Plan we have set the following target: by 2020 we will enhancethe livelihoods of
hundreds of thousands of people as we grow our business.
2.3.3.1 Smallholder farmers
Our goal is to link 500 000 smallholder farmers into our supply
network.We will help to improve their agricultural practices and thus
enable themto supply into global markets at competitive prices. By doing
so we willimprove the quality of their livelihoods.Meeting our target
We already work with 100 000 smallholders and we are in a good position
tounderstand their challenges.We also have a unique overview of the global supply
situation. This means we canapproach smallholders with an authoritative judgment
on the economic viability of increasing their production and the practical tools to

help them achieve it.Working with partners in local and national governments,
academia, and NGOs
iscritical to this. With their help, we can provide training, access to markets,equipme
nt, and other practical aids to increase the yields and income of smallholders.In
Kenya, for example, where our Lipton brand is the countrys largest buyer
of smallholder-produced tea, we began a project in 2006 with the Kenya TeaDevelop
ment Agency (KTDA), training growers at farmer field schools with aspecific
emphasis on sustainability.By 2008, average profit had increased by between 515%, and 38 000 participantshad achieved Rainforest Alliance certification for their
crops. The KTDA plans toexpand the program to 500 000 farmers by 2013.
Where we are now
We have bought from smallholders for decades, providing a market for tea,cassava,
spices, fruit and vegetables and other ingredients, often for farmerswhose holdings
are close to our estates or factories.Recently we have been working with partners to
boost productivity for groups of smallholders further afield.In South Africas Eastern
Cape, we are part of a public-private partnership
involvinggovernment agencies and academics aimed at developing sustainable pap
rikaproduction. In Ghana, Tanzania and Nigeria, we work with the Novella
Partnershipto support farmers who harvest Allanblackia seeds, which we use for oil.

P a ge84
And we are working with Oxfam to explore ways of opening global supply chains
togroups of smallholders in Azerbaijan, allowing them access to increased
incomes,and thereby supporting their communities.
2.4 Unilever Philippines CSR2.4.1 Environmental Sustainability
We aim to manage our business successfully and sustainably as a
trustedcorporate citizen around the world, respected for the value andsta
ndards by which we behave. As a responsible business, we seek
tounderstand and manage our social, environmental and economic
impacts,working in partnership with our suppliers, customers, with
governmentsand NGOs, and increasingly with consumers who are at the h
eart of everything we do.
In living up to our vision of creating a better future every day, our Corporate
SocialResponsibility (CSR) efforts finds its overarching mandate from the United
NationsMillennium Development Goals (MDG) call for the business sector to align
CSRinitiatives and contribute to the achievement of the countrys MDG targets in
theareas of Poverty, Education, Health and Environment.In Unilever Philippines, we

have focused our CSR on the Environment, ChildrensNutrition and Community

Building.
Reducing Environmental Impact
Environment care is a primary concern on Unilever Philippines. The company
iscommitted to the following:1. Ensure that
our operations
do not pollute2. Encourage
our neighbors
not to pollute3. Encourage
wider participation
to support this agenda
2.4.2 Solid Waste Management
Our factory in Paco, Manila adheres to environmentally compliant and
ISOcertified processes to ensure that no harmful wastes come out of Unile
vers plants.Project Eliminate
Our factory in Paco, Manila adheres to environmentally compliant and
ISO certifiedprocesses to ensure that no harmful wastes come out of Unilevers
plants.Garbage is one of the biggest environmental issues facing Metro Manila and
manyother cities. In Unilever, we want make sure that our operations have
minimumpossible effect on the environment.Project Eliminate was created to target
ZERO LANDFILL in our plant and offices. The target was reached in 2004 and the
company has maintained it since then,concentrating on the following goals:Reduce
/ Avoid through Total Productive Maintenance (TPM), we improved ourprocess and
reduced waste by 80%. Furthermore, as plastic is made from oil, wedeveloped a
process to use the residual packaging waste as a co-fuel for cementmanufacture.

P a ge8 6
Reuse sort all recyclable which cannot be avoided and develop processes totreat
the waste that cannot be recycled.Recycle a lot of our landfill can be recycled
directly. Teams were put in place
toimprove sorting on the production lines. Now, we sell carton and plastic torecycler
s and as a result, our garbage was reduced by 50%.
2.4.3 Clean Water Sustainability

P a ge87
Unilever Philippines commitment to a cleaner, greener river starts
withinour plant. The factory continues to achieve reductions in amounts of
water used and wastewater generated during manufacturing processes,
Our factory in Paco is at the heart of the city of Manila straddling between
smalltributaries of the Pasig River a 25km waterway stretching between Laguna
deBay and Manila Bay. The dreadful state and realities of the river are things
thatUnilever employees see and smell every day.
Operations
Unilever Philippines commitment to a cleaner, greener river starts within ourplant.
The factory continues to achieve reductions in amounts of water used
andwastewater generated during manufacturing processes. Perhaps our bestknownon-site contribution is the companys Domestic Waste Water Treatment Plan
thefirst such plant in Metro Manila, completed in 1998.
Neighbors
Unilever conducts regular clean-up drives and community-based wastemanagement
training in neighboring communities. Some of the contributions thatUnilever made
in Paco market are the provision of a waste composting machine,provision of drums
to collect items for recycling, repairing and maintaining
themarkets restrooms and producing leaflets encouraging cleanliness and wastema
nagement. And every year, the company mobilizes at least 500
volunteerscomposed of employees, students and neighboring communities in
cleaning up theManila Bay shoreline.
Wider Advocacy
Unilever, together with the Sagip Pasig Movement (Revivethe Pasig River
Movement), launched a community basedinitiative called the Clean River Zones
(CRZ) these areorganized communities composed of government,
NGOs,academe, media, industries and residents who worktogether to pursue the
rehabilitation of the Pasig
River.Efforts were also put into play to campaign for thesustainability of Laguna de
Bay the only alternativefreshwater source for the Southern Metro Manila areas.
Itstarted with a quest to gain global membership for the lake with the Living
LakesNetwork. To comply with the challenges of the candidacy, a Conservation of La
guna de Bays Environment and Resources (CLEAR) was formed, a tripartitegroup
composed of Unilever, Laguna Lake Development Authority and an NGO the
Society for the Conservation of Philippine Wetlands. It is this group that
alsolaunched the first ever Tree-preneur Program here in the

country.Unilever also supports the reforestation of La Mesa Watershed. A total of 75

hectares have been adopted and repopulated by Unilever with locally grown trees.