Thang Vu Hoang EMBA Coding Task - Shared Value at Unilever PDF

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A qualitative analysis of an interview from the top-tier manager in Unilever...

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Qualitative Analysis Example – Manual Coding Exercise

Qualitative analysis using thematic coding for the Empirical Methods and Business Analytics (EMBA) course at the University of Applied Sciences and Arts Northwestern Switzerland. Background information: After you have read the overview of the phenomenon of the 2030 Agenda for Sustainable Development (UN, 2016) and the theoretical framing of shared value creation (Porter and Kramer, 2011), please complete each of the tasks for the analytical phase of the research project that follow. Overview of Focal Multinational Enterprise and Research Question Unilever has been identified as a clear example of a firm that is seeking to realize shared value (Porter and Kramer, 2011) and has also taken active part in the 2030 Agenda for Sustainable Development (UN, 2016). You have been asked to answer the following research question (RQ): RQ: How well does Unilever's approach to the United Nations Sustainable Development Goals reflect a strategy of creating shared value? The United Nations Sustainable Development Goals The United Nations (UN) Sustainable Development Goals (SDG) are part of the 2030 Agenda for Sustainable Development (UN, 2016) that "seek[s] to build on the Millennium Development Goals and complete what these did not achieve" in pursuit of the "three dimensions of sustainable development: the economic, social and environmental." Broadly this can be described as eradicating poverty in all economies, realizing the human rights of [people in all societies and to protect the planet's natural environment. Business Strategies for Creating Shared Value for Society Porter and Kramer (2011) have argued that firms should see the pursuit of sustainable development (economic, social and environmental) as an opportunity to 'create shared value'. Shared value is created by firms that leverage their unique resources and expertise to create economic value by creating social value, through innovation (Porter and Kramer, 2011). Porter and Kramer (2011: 64) argue that Unilever is one company that has "already embarked on important efforts to create shared value by reconceiving the intersection between society and corporate performance." Shared value is created when (1) firms identify and act on all the societal needs, benefits and harms that are/could be embodied in their products and services (Porter and Kramer, 2011). Shared value is created when (2) firms seek to optimize their supply chains: by reducing energy use, achieve better utilization of resources, improve procurement and distribution and increase employee productivity (Porter and Kramer, 2011). Finally, shared value is created when (3) firms seek to promote local clusters of firms that enable productivity and innovation (Porter and Kramer, 2011). Opportunities for creating shared value will be closely related to the core and most important businesses of the firm, allowing the company to benefit most economically and hence sustain commitment to contributing to societal development, as the firm's scale and market presence allow meaningful impact of the social value creation (Porter and Kramer, 2011). An adapted version of a longer interview transcript for the purposes of this assessment example.

Qualitative Analysis Example – Manual Coding Exercise

Task 1: Please specify two working propositions to guide the research process, and indicate which one you use for the codebook. Working Proposition 1: Through innovation, Unilever has created shared value which both serve the economic goals of the company and the societal need. Working Proposition 2: Unilever ‘s sustainable business models have brought advantage to improve the sustainability performance of organization and the society. In this analysis, proposition 2 is chosen. Task 2: Please propose an codebook with for analysing the interview below (use consistent colours for coding and hierarchical numbering, e.g. “2.2.1 Example-Code” for a code on the third level). The number of lines does not indicate the number of necessary codes. If you have more codes, copy the table. Code Abbreviation 1.Sustainable Business IM Model

Definition This category applies when the interviewee mention about action or goals of a company which helps its heading toward sustainability. These characteristics imply that the company have a sustainable business model.

1.1 Sustainability

This category applies when the interviewee mentions about the sustainability as part in the company.

SN

1.1.1 Sustainable SSC Supply Chain

This category indicates the application of sustainable in the company supply chain.

1.1.2 Sustainable Brand

SB

This category is applied when the interviewee mentioned about some stand-out brand which have been created for a purpose.

1.2 Innovation

IN

This category is defined as the action which company took to change the current status to a better version. Innovation are imperative for a sustainable business model. Without this aspect, it is difficult for the company to achieve a sustainable business model. This category is applied when there is a mention in the interview of the value which are created for both the company, social and environment as a result of company business model.

1.3 Shared Creation

Value SVC

1.3.1 Cost Reduction

CR

This category is defined as the benefits of the company as a result from the cost reduction from its action toward the market.

Qualitative Analysis Example – Manual Coding Exercise

Code

Abbreviation

Definition

1.3.2 Society Value

SV

This category is applied when the interviewee mentioned the social aspect of the share value which have been created through the company activities.

1.3.3 Long-term Value

LV

This category is applied when the interviewee mentions the value which is created for a long period in the future.

1.3.4 Economic Value

EV

This category indicates the value which are benefits gaining from increasingly company growth.

2.Corporate Performance

CP

This category is applied when it is implied by the interviewee about the positive performance of a company as a result of its sustainable business model.

3. Social Mission

SM

This indicate the mission of a company which heading toward the societal need and its action of the company toward the society

3.1 Society Problem

SP

This is defined as the current problem of the society stems from different source such as environment, social inequality …

4.Business Impact

BI

4.1 Stimulating Growth

SG

4.2 Market Influence

MI

This category is applied when the interviewee mention about the impact of the large scale, sustainable business toward other stakeholders such as the society, market, other company, in turn, bringing transformation. This category is applied when there is a mention in the interview of the effect created in the future by the company which help to growth others subject such as social, environment. This category indicates the influence that is made as an impact of the sustainable business to shape the market.

5. Need for unification

NU

5. Political Perspective

PP

6. Commercial Risks

CRK

7. Global Correlation

Goal GG

This category is applied when the interviewee mentions his company as an agent of change and encourage other to do the same. This category is applied when the interviewee mention about his political perspective on the current global situation. This category indicates the risk happening to the multi-stakeholders if the current global situation keep getting worse. This category is applied when the interviewee mentions the alignment of the company’s objectives. to the global goal.

Qualitative Analysis Example – Manual Coding Exercise

Task 3: Please analyse the following adaptation of an interview by Business Green with Paul Polman about the engagement of Unilever with the UN SDG.* Interview date: 21/09/2015 Source: Unilever (2016) This is [an adaptation* of the] transcript of a Business Green interview with Paul Polman, published in September 2015. Business Green is website that covers news and advice for how businesses can grow while becoming more environmentally responsible. How would you summarise your involvement this week? Social Mission

Unilever is involved in the SDG agenda as we fundamentally believe these are challenges that need to be addressed for economies, businesses and society to function. We have hardwired sustainability into the heart of everything we do across the business – our operations, innovations, our brands and our whole philosophy. There is not just a moral imperative to be sustainable but a clear business case too. We hope that by the end we will have clear commitments to tackle poverty, inequality and climate change.

I believe it is the responsibility of business to promote sustainability – but there’s a clear business argument too. Sustainability has always been in Unilever’s DNA. In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down his ideas for Sunlight Soap – a product that helped popularise cleanliness and hygiene in Victorian England. Ever since, Unilever has looked to build a strong business around societal needs. We believe it’s possible to grow and do good – indeed grow by doing good and we see consumers increasingly expecting this of business. Essentially, it’s about looking long-term, serving the societies where your consumers live, where your supply chains operate, contributing to social and economic development, creating jobs and stability, fostering a virtual circle of growth.

Sustainable Business Model Sustainability Innovation Social Mission Corporate Performance Social Mission

Social Mission Corporate Performance Sustainability Innovation Society Value Sustainable Business Model Share Value Creation Business Impact Long-term Value Society Value Stimulating Growth

* Adapted version of a longer interview transcript for the purposes of this assessment example.

Qualitative Analysis Example – Manual Coding Exercise

Our Unilever Sustainable Living Plan (USLP) is our blueprint for doing this – for operating sustainably across the business – it sets clear and measurable targets. It cuts costs, reduces risks (like future proofing our supply chain through sustainable sourcing programmes), drives growth and fosters trust and purpose.

Innovation Sustainability Cost Reduction Long-term Value Sustainable Supply Chain Stimulating Growth

The USLP has helped us be a resilient business in an increasingly volatile world. It has helped drive consistent top and bottom line growth ahead of our markets. Our longer term focus has enabled us to address some significant environmental and social challenges: moving to sustainable sourcing, reducing CO2 emissions from our factories, moving to zero waste to landfill - the latter alone saved us €200 million across our factory network - and ensuring that we respect and promote social and human rights, not just in our own operations, but throughout the entire supply chain. In 2014, we identified four big focus areas under the USLP where we could accelerate and deepen our impact even further on issues such as clean water and hygiene, sustainable agriculture, enhancing livelihoods, especially those of women, and deforestation. All of these issues are addressed through the new global goals and we will continue to work in partnership on their delivery and implementation.

Sustainability

Brands with purpose like Dove, Lifebuoy, Domestos, Ben & Jerry’s and our water purification brand, Pureit are growing strongly and creating movements for change. Take Lifebuoy, its mission is to help 1 billion people adopt the life-saving practice of hand-washing. We’ve already reached nearly 300 million people in some of the most impoverished parts of the world, where preventable diseases are a daily threat. Lifebuoy also happens to be one of our fastest growing brands. In fact, in 2014, our most sustainable brands grew twice as fast as the rest of the business. The global goals being discussed this week have a strong correlation with the social mission of many of our brands.

Economic Value

Business Impact Long-term Value Cost Reduction Society Value Sustainable Supply Chain Social Mission Sustainable Supply Chain Social Mission Business Impact Society Problem Global Goal Correlation

Sustainable Brand Business Impact Social Mission Society Value Society Problem Economic Value Sustainable Brand Global Goal Correlation

How do you expect the SDGs to impact businesses? Business has played an important part in shaping the new SDGs and it will therefore play an important role in realising it. But what’s increasingly clear is that we need more businesses to embrace the sustainable development agenda and treat it as an important driver of core business strategies and investment decisions. Sustainable business models are vital to long-term inclusive growth and value creation.

Business Impact Need for Unification

Sustainable Business Model Share Value Creation Long-term Value

* Adapted version of a longer interview transcript for the purposes of this assessment example.

Qualitative Analysis Example – Manual Coding Exercise

What would you say to those who argue big business should not play a role in development politics? We should focus our attention on what’s at stake here. As business we have scale and reach, and therefore an enormous possibility to transform markets. We know that delivering the goals can happen only if the public sector, private sector and civil society all step up and demonstrate real leadership.

Need for Unification Market Influence Need for Unification

What commercial risks and opportunities do the SDGs and Paris present for a company such as Unilever? It is absolutely vital that we reach an agreement in New York and Paris this year. The effects of climate change threaten us all, impacting both consumers and supply chains and often hitting the poorest communities the hardest. This is an issue for all global companies, not just Unilever. If we don’t all tackle climate change in a constructive way, global economic growth will be stifled. I have talked earlier about the economic and business opportunities that the SDGs and Paris bring. How our brands whose social missions are aligned with tackling some of these global challenges, are growing strongly. Thinking about sustainability - the SDGs and climate - also drives innovation. So if you design with the circular economy in mind or innovate to reduce packaging, you can save money as well as doing the right thing.

Political Perspective Society Problem Commercial Risks Society Problem Commercial Risks

Political Perspective Sustainable Brand Social Mission Society Problem Economic Value Sustainability Innovation Economic Value Society Value

Practically how do you see Unilever responding to these new targets? We have already set out our ambition to double the size of our business whilst halving our environmental footprint and increasing our social impact. This is the core focus of our business – enshrined in the USLP, and something that we continue to evolve as we make progress.

Share Value Creation Economic Value Society Value Sustainability Sustainable Business Model

* Adapted version of a longer interview transcript for the purposes of this assessment example.

Qualitative Analysis Example – Manual Coding Exercise

References Porter, M.E. and Kramer, M.R. (2011) Creating Shared Value. Harvard Business Review, January-February. Unilever (2016) Paul Polman interview with Business Green [Last Accessed: 29 October 2016] URL: https://www.unilever.com/news/speeches/Paul-Polman-interview-with-BusinessGreen.html. United Nations. (2016) Transforming our world: the 2030 Agenda for Sustainable Development. [Last Accessed: 29 October 2016] URL: https://sustainabledevelopment.un.org/post2015/transformingourworld.

Grading criteria (maximum of 10 points; 15% of the final grade): -

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2 propositions that serve as guiding principles for creating the codebook (3P) Codebook (4P): o named codes (code, abbreviation), o clear definitions of codes that contain, o clear rules for assigning codes to phrases. o Codes cover all relevant information from the text Hierarchically differentiation of the codebook (2P) Text is comprehensively coded: 1P...