How ethical is Unilever?
Our research highlights several ethical issues with Unilever, including boycott calls over its continued operations in Russia, criticism for use of “highly-polluting” plastic packaging, and allegations of sexual abuse in its Kenyan supply chains.
Below we outline some of these issues. To see the full detailed stories, and Unilever's overall ethical rating, please sign in or subscribe.
Politics and finance
The multinational appears to have dubious ethics when it comes to pay, tax conduct and other financial and political issues.
Unilever faced a boycott call in July 2023, over its decision to continue operating in Russia, following the country’s invasion of Ukraine. According to an article in Newsweek, the company faced particular criticism after it “said it would comply with the country's conscription laws. … requiring it to ‘permit the conscription of employees should they be called.’"
According to the article, Unilever's Chief Business Operations and Supply Chain Officer Reginaldo Ecclissato wrote in the statement: "We would like to reiterate that Unilever absolutely condemns the war in Ukraine as a brutal, senseless act by the Russian state and we continue to join the international community in calling for stability and peace in the region." However, he defended the company's decision to remain operating in Russia, as exiting would amount to "abandoning our people and brands."
The company does not fare much better when it comes to excessive pay. In 2023, its highest paid member of staff, CFO Graeme Pitkethly, received €5,286,000. The company reports on its pay ratios – the comparison between the highest and lower paid members of staff. However, it does not appear to have any robust policies to limit the difference in pay.
Unilever has a policy on tax avoidance, which states: "Secrecy jurisdictions, or so-called ‘tax havens’, are not used for tax avoidance". However, in March 2020, the financial website This is Money published an article which stated, “It is alleged that Unilever owes the taxman money because its Dutch arm had a 'permanent establishment' in the UK, meaning it should have paid more tax here. Unilever 'strongly disagrees with the positions taken by the UK tax authorities'.”
Environment
Unilever has a mixed approach to addressing its climate impacts.
The company has taken meaningful steps towards cutting emissions, such as switching to more renewable energy and working with suppliers to end deforestation in its supply chain. It reports comprehensively on its emissions, and has set a target to cut emissions from its supply chain and the use of its products by 30.3% by 2030 (compared with 2021) – in line with vital international climate goals.
However, Unilever has also been criticised by environmental groups. For example, in September 2021, Greenpeace published a report titled ‘The Climate Emergency Unpacked: How consumer goods companies are fueling big oil’s plastic expansion’. The investigation into plastic supply chain connections found that multiple companies including Unilever “all buy packaging from manufacturers supplied with plastic resin or petrochemicals by well-known [fossil fuel and/or petrochemical] companies like ExxonMobil, Shell, Chevron Phillips, Ineos and Dow”. Unilever did not appear to have responded to the report.
The company has taken some steps towards phasing out toxic chemicals, removing triclosan in its products. However, it continues to use parabens and phthalates – chemicals that are believed to disrupt hormones in the body – in its products or packaging.
Unilever scores very badly in Ethical Consumer’s packaging rating and has been criticised by other environmental groups. In November 2023, Greenpeace published a report that claimed, “Consumer goods giant Unilever is selling 1700 highly-polluting plastic sachets every single second, fuelling the global plastic pollution crisis and dumping huge amounts of waste on countries in the Global South.” The company did not appear to have responded to the report.
People
While Unilever has some positive policies when it comes to workers’ rights, it has also faced multiple criticisms for abuses in its supply chains.
For example, the company has set a target for 2026, that suppliers representing 50% of its procurement will have committed to pay at least living wage in its supply chains. Its subsidiary Ben & Jerry's has also made legally binding commitments to protect workers as part of the Milk with Dignity programme.
However, in February 2023, the BBC published an investigation into allegations of sexual abuse on tea plantations in Kenya, which found that “more than 70 women had been abused by their managers at plantations operated, for years, by two British companies, Unilever and James Finlay”. The investigation led to an inquiry by Kenya’s parliament.
According to the BBC, Unilever had faced similar allegations 10 years earlier and "launched a 'zero tolerance' approach to sexual harassment as well as a reporting system and other measures". But the BBC investigators "found evidence that allegations of sexual harassment were not being acted on". A number of women told them that because work was scarce, they were "left with no choice but to give in to the sexual demands of their bosses or face having no income".
According to the article, Unilever said it was "deeply shocked and saddened" by the allegations. It had sold its operation in Kenya while the BBC was filming.
Animals
Unilever scores very badly in Ethical Consumer’s animals rating.
The company was found to have a vague statement against animal testing, but it did not prohibit the testing of ingredients on animals, nor did it state that it would only permit testing when required by law.
Unilever has also been criticised for failure to address animal welfare in its supply chain. In 2023, it was included in an assessment of multiple companies by the Business Benchmark on Farm Animal Welfare. The group gave Unilever an ‘E’ rating, indicating “companies [that] have yet to demonstrate that they are delivering improved welfare for farm animals in their operations and/or supply chains.”
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The text above was written in July & August 2024.