Preserving Mission and Brand Within Unilever

Agenda

• Situation – Chris• Ben & Jerry’s Background – Kai• Unilever Background – JC• Problem: Low Employee Morale –

Listya• Problem: Social and Environmental –

Joanna• Action Plan – Chris

Statement of the Problem

• In September 2000, Ben & Jerry’s transitioned from an independent-minded premium ice cream maker to a division within a multinational corporation

• 2004 – head of Social Mission compiled data for Social and Environmental Assessment report

– Candid look at Ben & Jerry’s operation– Three-part mission “linked prosperity”

The Stakeholders

• Ben & Jerry’s– Employees– Customers– State of Vermont

• Unilever– Franchises– Shareholders

The Big Questions

• How to get back on progressive footing?

– Being an “edge-dweller”

• How to remain competitive in your business practices while remaining true to your company’s mission statement?

Ben & Jerry’s Company Background

• Premium ice-cream maker• Socially conscious

– Ben and Jerry’s Foundation– 1% For Peace

• Generous employee treatment– Onsite day-care center– No-layoff policy– “No higher than five times”

• Cartoony, fun, and responsible

History

• 1978: First homemade ice cream scoop shop

• 1979: First-ever Free Cone Day• 1984: Public stock offering • 1986: “Cowmobile”

History (cont.)

2000: Announced acquisition by Unilever

$4.00

$54.00

$104.00

$154.00

$204.00

$254.00 Total Sales $237.04

About Unilever

• Headquartered in the United Kingdom

• Owns many well-known brands– Dove– Lipton– Calvin Klein

• 246,000 employees in 1999• Business in over 150 countries

About Unilever cont.

• One stated priority is “environmental responsibility”– Conducts environmental audits at 90%

of factories– Screened its fishery suppliers for

sustainability

About Unilever cont.

• Another stated responsibility is “responsible corporate behavior”– Established a Company Code of

Business Principles– Spent £26 million on community

involvement in 1999

Acquisition of Ben & Jerry’s by Unilever

• Pre-deal commitments– Ben & Jerry’s would retain brand name– All employees would be retained for two

years– Unilever would contribute $5 million to

the Ben & Jerry’s Foundation– Created a “external board” to assist the

new CEO with managing the brand• The board could file lawsuits if they felt

Unilever was not living up to the agreement

The Acquisition cont.

• After the merger– Replaced the 7.5% of pretax profits to a

percentage of sales with a minimum of $1.1 million for ten years.

– Updated computer systems and supply chain

– Kept the local suppliers of all-natural milk

Problem: Low Employee Morale

• Causes:– Layoffs due to restructuring efforts– Unilever’s tighter code of conduct– Uncertainty in changing from a small

business to a multinational corporation

Possible Solutions: Low Employee Morale

• Unilever to provide “Old Town Hall Meeting” situations– Gives employees voice

• Give Ben&Jerry’s leeway on action within political/social forum – More passive

• Matching employee donations to charity – Time– Money

Possible Solutions: Low Employee Morale

• Continue with generous severance package

• Assist with job placement upon layoffs • Internal communications campaigns

– Boost employee morale from within• External board

– Represents Ben & Jerry’s employees

Problem: Losing Brand Loyalty

• Causes– Ben & Jerry’s was a child of the 70’s, an icon

in progressive politics and social issues

– Employees no longer free to drive the Ben &Jerry’s van out for rallies

– Unilever’s Code of Business Principles stating “No support for political parties or promotion of any parties’ interests” (i.e. Iraq war)

Possible Solutions: Losing Brand Loyalty

• Change from employee freedom to agreed upon causes or organizations to support

• Publicize the Company’s Annual Social & Environmental Assessment Report

Problem: Declining Support to The Ben & Jerry’s Foundation

• Causes– Unilever set a floor of how much money

would be donated to the Ben & Jerry’s Foundation

– Decline in corporate giving, employee matching gifts, community action teams

– Declining revenue because of “uncertainty of identity”

Possible Solutions: Declining Support to The Ben & Jerry’s

Foundation• Solutions

– Set protocols to allow employees to donate time for community volunteerism

– Partnerships between franchises and particular causes

– Establishing a Ben & Jerry’s-branded flavor for a cause (i.e. Rainforest Crunch)

Problem: Artificial Sweetener Conflict

• Causes– Market demand for low-carbohydrate

products– Contrary to mission statement– Threat to pride in “process-chlorine-

free” packaging

Possible Solutions: Artificial Sweetener Conflict

• Use low-fat yogurt• Chlorine no longer an issue in

packaging• Maintain “all natural” values

Action Plan – Unilever

• Survey Ben & Jerry’s employees– Focus on improving employee morale

• Formal guidelines on political involvement– Approved list of organizations and

causes– Encourage employee action plans for

reasons to support causes• Research environmentally friendly

alternatives to meet market demands

Action Plan – Ben & Jerry’s

• Internal PR campaign focused on employees

– Promote what Unilever has done for company

– Shift focus away from the negative• Get back to grass roots Ben & Jerry’s

mentality• Promotions for website

– Social and environmental causes– Passive support for political agendas

Questions?