September 26. 2023 by Mike Manazir – (4-5 minutes)
When asked who the stakeholders are for most businesses, the answer most often comes back that it’s the customers, employees and stockholders. Upon closer examination, the list of stakeholders is much longer when you consider your suppliers, government and regulatory bodies, financial institutions,competitors, industry associations, local communities, non-governmental organizations, trade unions, media and public opinion, as well as, business and joint venture partners, your board of directors, industry analysts, environment and sustainability advocates, legal advisors and consultants, employees’ families,future generations, and society at large. One of the widely-known companies that is particularly good at stakeholder management is Unilever.
Picture this: Unilever is like the star of a ballet and its stakeholders are the dancers, each with their own unique role. Let’s take a closer look at how this performance unfolds:
A Dance of Trust with Shareholders: Unilever understands that trust is the foundation of its performance. It communicates openly with shareholders about its sustainability goals and performance, showing a commitment to long-term value creation rather than quick wins.
Customers Take Center Stage: Customers are their front-row audience and are treated to products that not only satisfy their desires, but also align with their values. Unilever’s products reflect quality and social responsibility, from eco-friendly packaging to cruelty-free testing.
Employees: The Heartbeat of the Show: The backstage is buzzing with energy, and that’s because Unilever knows its employees are the true heartbeat of the organization. They’re provided with opportunities for growth and development, and the company is dedicated to fostering a diverse and inclusive workplace.
Suppliers Join the Choreography: Unilever extends its commitment to ethical practices by ensuring its suppliers are part of the dance. It collaborates with them to uphold high standards, from sustainable sourcing to fair labor practices.
Government and Regulatory Ballet: Navigating a complex regulatory landscape, Unilever embraces its role as a responsible corporate citizen. It works with governments and regulatory bodies to shape policies that promote sustainability and business ethics.
Community Outreach Waltz: Unilever doesn’t just perform on the stage; it’s deeply connected with the communities where it operates. It contributes to local development and supports initiatives that create positive impacts.
Partners in a Duet: Collaboration with non-governmental organizations enriches Unilever’s performance. Together, they champion social and environmental causes, amplifying the company’s positive influence.
The Rhythm of Fair Labor Practices: In a harmonious collaboration, Unilever respects the rights and interests of its employees through dialogue with trade unions, ensuring that the workplace remains fair and equitable.
Reviews and Applause: Unilever values the opinions of critics and the media, whether it’s praise or constructive criticism. It uses feedback to refine its performance continually.
Directors as Conductors: The board plays the role of conductors, overseeing Unilever’s strategy and ensuring that the entire orchestra (organization) is in sync with its mission and values.
The Music Critics: Industry analysts provide critical reviews. Unilever keeps them intrigued with innovative approaches and sustainable practices.
Eco-Conscious Choreography: Environmental activists give Unilever a standing ovation for sustainability initiatives. The company strives to minimize its environmental footprint and promotes a circular economy.
Unilever’s success in stakeholder management is a masterpiece, an ongoing performance where every stakeholder has a role, and the company dances to the tune of responsibility and sustainability. It’s a testament to how a business can not only thrive but also make a positive impact on the world when it harmonizes with its stakeholders in this intricate ballet of interests.
Five keys to the “Unilever Ballet” that leaders can use to be successful in managing stakeholder interests:
Prioritize Ethical Practices: Make ethical conduct a non-negotiable part of your organization’s culture. Act with integrity in all interactions with stakeholders, as trust is the cornerstone of successful stakeholder management.
Balanced Stakeholder Focus: Recognize that satisfying the diverse interests of stakeholders is essential. Balance short-term and long-term goals, and consider the impact of decisions on all stakeholders, not just immediate financial gains.
Invest in Sustainability: Embrace sustainability as a business imperative. Commit to responsible sourcing, environmental conservation, and social responsibility initiatives. Sustainability not only benefits the planet but also builds trust and resilience.
Employee Well-being: Prioritize the well-being and growth of your employees. Cultivate a diverse, inclusive, and supportive workplace that fosters innovation and employee satisfaction.
Community Engagement: Actively engage with the communities where your organization operates. Support local initiatives, contribute to community well-being, and maintain a positive impact on your surroundings. Incentivize your employees to care about the communities they live in and become brand-ambassadors for your company.
These keys to the Unilever Ballet highlight the importance of ethical leadership, long-term thinking, sustainability, and a holistic approach to stakeholder management, which can lead to sustained success for leaders and their organizations.
Do what you do so well that they will want to see it again,
and bring their friends.
-Walt Disney
Lead from your heart. Lead to Win.
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