Our commitment to human rights
The Universal Declaration of Human Rights (UDHR), adopted by the United Nations (UN) in 1948, is the cornerstone of modern human rights law. It calls upon “every individual and every organ of society” to promote respect for human rights. Protecting and fulfilling human rights is the duty of governments, including where it relates to corporate activity. At the same time, businesses have their own responsibility to respect human rights, which means they should act with due diligence to avoid infringing on the rights of others and to address any adverse impacts in which they are involved. In line with the UN Guiding Principles on Business and Human Rights, we base our human rights commitment and policy on the International Bill of Human Rights (consisting, in addition to the UDHR, of the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights) and the principles concerning fundamental rights set out in the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work.
We seek to uphold and promote human right in three ways:
- in our operations by upholding our values and standards
- in our relationships with our suppliers, and
- by working through external initiatives, such as the United Nations Global Compact.
Our Code of Business Principles
Our Code of Business Principles sets out our commitment to human rights. It confirms that “We conduct our operations with honesty, integrity and openness, and with respect for the human rights and interests of our employees”.
The section of our Code dealing with employees clearly states our opposition to forced and child labour and sets out our respect for employees’ right to freedom of association.
Reviewing our approach
We have reviewed our approach to human rights to ensure that we continue to live up to the standards in our Code of Business Principles and that we have effective communications and compliance mechanisms in place.
Our review has shown that further training would be beneficial to explain the different elements of human rights. Employees would also benefit from clearer definitions of these elements, such as freedom of association, collective bargaining, forced/bonded labour and child labour. An e-learning module outlining these four core human rights was rolled out to key managers in our supply chain, including procurement and human resources, in the second half of 2011. We are also in the process of upgrading the definitions of these core elements in the detailed employee guidelines that explain our Code of Business Principles. These updated guidelines will ensure our employees understand the importance and intent of the human rights elements of our Code.
Compliance monitoring of our human rights obligations is delivered via our positive assurance process. This will be complemented by a system of continuous improvement (akin to the systems we use for safety, health and environment), based primarily on self-assessment at site level and supported by periodic external audits
The self-assessment methodology is designed to be consistent with that used to monitor our suppliers’ compliance with our Supplier Code. We pilot tested this enhancement to our processes in 2008 and are rolling out this methodology across our factory operations worldwide.
Human rights & our business partners
Our human rights commitment is also reflected in the way we work with our business partners and suppliers. Unilever’s Supplier Code makes clear the standards to which we expect our business partners to adhere. It contains 11 principles covering business integrity and responsibilities relating to employees, consumers and the environment. Four of its principles address human rights, stating that there shall be:
- respect for human rights, and no employee shall suffer harassment, physical or mental punishment, or other forms of abuse
- no use of forced or compulsory labour, and employees shall be free to leave employment after reasonable notice
- no use of child labour, and specifically there will be compliance with relevant International Labour Organization (ILO) standards
- respect for the right of employees to freedom of association and recognition of employees’ rights to collective bargaining, where allowable by law.
Living out our commitments with our employees
These commitments are of no practical use unless they are part of an active process of compliance, monitoring and reporting. The Board of Unilever is responsible for this process and day-to-day responsibility lies with senior management around the world. Checks are made on this process by Unilever Corporate Audit and by our external auditors.
A review of all policies relating to the Code was undertaken during 2010. As a result, a new, streamlined framework of 24 Code Policies that underpin the Code of Business Principles was published. These have been communicated to all senior management and managers globally. Two of the Code Policies are dedicated to human rights matters. One, for our employees, is called ‘Respect, dignity & fair treatment’, the other for suppliers is called ‘Responsible sourcing’. In 2012 we have started to deliver training to our employees on these two human rights-related policies. From Board room and CEO down to factory level, we plan to complete this training by year end.
All reported breaches of the Code of Business Principles are monitored and dealt with by our local business leaders at country level. They are supported by our Head of Risk and Compliance and the Global Code and Policy Committee. We expect and encourage employees to bring to our attention any breach of the Code. A 24-hour toll-free ‘ethics hotline’ number is available in all countries for individuals who wish to raise any concerns in relation to the Code (on an anonymous basis if they wish and where local laws allow this). In 2011, 85 employees were dismissed as a result of breaches of the Code, down from 98 in 2010. Almost half of all reported breaches in 2011 were related to the ‘Respect, dignity & fair treatment’ policy.
Living out our commitments with our business partners
We also use a positive assurance process with our suppliers. We have communicated Unilever’s Supplier Code to all our current suppliers of ‘production items’ (ie the raw materials and packaging we use to make our products) to gain their assurance that they adhere to its principles. We follow up with those suppliers we have prioritised with a more detailed assessment and a programme of audits.
Together with some of our peer companies, in 2007 we established a global Programme for Responsible Sourcing (PROGRESS). As part of this, we have agreed on a common approach to evaluate the social and environmental commitment of suppliers across specific groups of goods and services. We believe this collaborative approach will help reduce duplicated effort for PROGRESS members and suppliers alike, accelerating the process of assessing suppliers and freeing up resources to focus on implementing improvements within the supply chain.
See the Suppliers section for more detail.
Promoting human rights
We seek to work with other companies, labour and civil society organisations to promote human rights issues globally and locally.
Global initiatives
We are a founding signatory to the Global Compact, a United Nations initiative which sets out commitments for business in relation to human rights, labour, the environment and anti-corruption. We are committed to upholding these principles across our business.
In 2010 we joined the UN Global Compact LEAD. This involves 50 companies of the 8,000 Global Compact members, who are committed to integrating sustainability within their business models and supporting the UN Global Compact around the globe.
We also co-chaired the UN Global Compact’s Working Group on Partnerships with the UN to help improve and strengthen public–private partnerships with the UN and to help deliver on the Millennium Development Goals (MDGs). Our CEO Paul Polman presented our recommendations to the UN Secretary General at the MDG Summit in September 2011. We are members of the Global Business Initiative on Human Rights which is aimed at helping companies understand their human rights obligations.
Local initiatives
Up until the sale of its tomato business to Cargill in October 2010, Unilever Brazil worked with with the local community and government to ensure that children were not exploited in the tomato plantations of its suppliers. The Infancia Protegida (Protected Childhood) initiative began in 2003 and was aimed at preventing children from working in the plantations. The project provided a basis for the formulation of public policy in the towns of Itaberaí, Silvânia, Vianópolis and Morrinhos, within the state of Goias, in partnership with the Councils of Children’s and Adolescents’ Rights, Tutorship Councils, local government and the community. Unilever Brazil devised practical initiatives that supported children’s development and ensured they were not left alone while their parents were at work. These included crèches, medical care and advice on nutrition, as well as systems to prevent pupils from dropping out of school.
A complementary initiative, Rural Responsavel (Responsible Rural Project), focused on raising awareness of health and safety issues for farm workers, aimed at eliminating informal labour in agricultural work, in partnership with local governments and agricultural unions. The company stressed the need for employers to comply with labour legislation and to provide labourers with protective equipment, for example, as well as reinforce the message that child labour should not be tolerated. In 2010, we reached our target of zero cases of child and forced labour among our suppliers. Owing to the divestment of our tomato business, in December 2010, the project was officially transferred to Cargill.
Labour relations
Between 2006 and 2009, four complaints were brought to Unilever’s attention by the International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations (IUF) relating to our operations in India and Pakistan. A further complaint was submitted by the Turkish transport union TUMTIS in 2008.
These complaints concerned site closure (Sewri factory, India), freedom of association and collective bargaining (Doom Dooma, India) and the use of temporary and contracted labour at our factories in Pakistan (Rahim Yar Khan and Khanewal).
Under the terms of the OECD Guidelines for Multinational Enterprises, the unions referred their complaints to the OECD’s National Contact Points in the UK and Turkey for investigation.
Four cases have been resolved and the means of resolution has been agreed for the fifth case relating to the Doom Dooma factory. This is in the process of being implemented.
To summarise:
- The TUMTIS complaint at our supplier’s factory in Turkey was resolved locally in January 2009.
- Unilever Pakistan reached agreement with the IUF to resolve the dispute at the Rahim Yar Khan factory in June 2009. On 21 October 2009, Unilever Pakistan reached an agreement relating to a further IUF complaint at Khanewal (retroactively applicable to 15 October 2009).
- A settlement payment was agreed by Hindustan Unilever and local trade union representatives (HLEU) on 13 October 2009 relating to the closure of the Sewri factory in 2006.
- A methodology for resolving the issues at Doom Dooma, India has been reached and is in the process of being implemented.
A more detailed description of the four cases relating to our operations in India and Pakistan is provided in a downloadable pdf – see Related links.
Summary of the OECD complaints process: OECD Guidelines for Multinational Enterprises
The OECD’s Guidelines for Multinational Enterprises are recommendations addressed by governments to multinational enterprises.
The Guidelines provide voluntary principles and standards for responsible business conduct in a variety of areas, including employment and industrial relations. Through national contact points (government offices), the Guidelines provide a mechanism to bring issues to the attention of companies and a forum in which to discuss them.
National contact points seek to resolve issues through amicable discussion to the satisfaction of all parties involved – a process the OECD describes as conciliation. If conciliation fails, complaints are referred to the second stage in the process – mediation – in which an independent facilitator takes a more formal role in brokering an agreement. Should this also fail, the national contact point issues a statement or makes a recommendation.
Inherent in the OECD process is an investigation of the facts in order to validate the substance of the complaint. As a responsible business, Unilever supports the OECD’s Guidelines.
Taking action
The disputes involving our India and Pakistan operations have stimulated us to think more broadly about the use of third-party contract labour in our factories. As a result, we are implementing a range of actions. These include:
Developing new, more detailed management guidelines for our senior HR and supply chain managers to raise awareness of the need to comply with international best practice in the areas of human and labour rights. These were rolled out globally during 2010 and have been complemented by a training programme that includes ‘train the trainer’ events, cascading the programme through the whole HR factory community, and e-learning modules for use by line management. We targeted in the first instance those countries (such as India and Pakistan) where this is recognised to be a priority.
We worked with the Danish Institute for Human Rights, an independent, national human rights institution to develop a comprehensive set of management guidelines and to pilot a training programme for Unilever’s senior HR and Supply Chain leadership. The first major training session took place in the summer of 2010 and this is now available on our e-learning system.
Reviewing the manner in which contract labour is used across the business.
- We finalised an internal review of our use of temporary and contract labour in all our manufacturing (factory) operations in 2011.
Widening the scope of the third-party auditing programme under Unilever’s Supplier Code to include third-party service providers of temporary or contract workers at our factory operations.
- During 2009, Unilever conducted a number of third-party audits of our key third-party service providers of temporary labour in our factory operations. Initially, these audits focused on countries where concerns about the treatment of temporary labourers had been greatest – namely India and Pakistan. This work continues to be further widened to our other factories.
Improving the transparency of the information that we provide for our stakeholders on these issues – notably (though not exclusively) through our corporate website and sustainability reports.
We have updated our corporate website to provide additional information regarding the settlement of OECD cases, in particular those cases relating to Sewri, Rahim Yar Khan and Khanewal. An agreement on a methodology to resolve the outstanding Doom Dooma case was reached and published on the OECD website in September 2010. This agreement is in the process of being implemented. We will provide more details when the time is right to do so.
Building on informal dialogue in place with the IUF regarding our labour practices by moving to a more formal consultative mechanism with the IUF during the course of 2010.
- We hosted a formal meeting at global level with the IUF on 18 March 2010. The meeting was attended by trade union representatives from a number of key regions including Latin America, the US, Europe (including Works Council), Asia (including Japan) and Africa as well as by senior HR and Supply Chain counterparts from Unilever.
- We consequently established a formal process of meeting with the IUF and its affiliates twice per year, to discuss labour rights issues. To date we have met four times, and this has proved a useful vehicle for early identification of emerging issues. We have also established a process of ongoing dialogue with the IUF on the issue of sustainable employment practices.
In 2009, Unilever started to increase its dialogue with a number of key stakeholders on the issue of labour rights. We engaged with organisations such as the OECD, ILO and UN Global Compact (as well as the IUF) on how we could bring greater clarity on the responsibilities of companies in this complex area.
For example:
Participated in a major research project and workshops with nine other corporate members of the UN Global Compact Netherlands (GCNL) to evaluate the issues and challenges companies such as Unilever face in integrating respect for human and labour rights within their business (in line with the United Nations “Protect, Respect and Remedy” Framework). On behalf of GCNL, our CEO Paul Polman presented the consolidated report, the guidance tool entitled “How to do business with Respect for Human Rights” to Mary Robinson, the former High Commissioner for Human Rights, Professor John Ruggie, the then UN Special Representative for Business and Human Rights and Georg Kell, Executive Director of the UN Global Compact during its tenth-year Leaders Summit between 24-25 June 2010 in New York.
Supported a second parallel research project with the Institute for Human Rights and Business to develop a review of the ‘state of play’ of human rights due diligence by 24 prominent corporations seeking to integrate human rights within their business strategy. This report was published in June 2010 to coincide with the UN Global Compact Summit.
We continue to take the learnings from participating in these research programmes and from our partnerships with organisations such as the UN Global Compact, Oxfam and the Global Business Initiative on Human Rights to further evaluate how best to strengthen our approach to addressing human rights and core labour standards throughout our business.