Task 1: Types of organizational objectives and responsibilities leading to organizational success
1.1 Different organizations in the United Kingdom
In the 1890s, William Hesketh Lever, founder of Lever Brothers, wrote down his ideas for Sunlight Soap – his revolutionary new product that helped popularize cleanliness and hygiene in Victorian England. (Unilever, 2018)
Unilever is a proud owner of over 400 brands all over the world, which includes food and beverages, home and personal care, Ice creams, billion-euro brands etc. Since Unilever manufactures many brands under each type of products as mentioned earlier, as a consumer purchases a product for his or her daily usage it if most likely to be a Unilever brand.
2. GlaxoSmithKline (GSK)
Beginning in 1715 with the opening of an apothecary shop in London, our story has always focused on innovation. From a selection of individual entrepreneurs to a global company of around 100,000 employees, we’ve developed a variety of medicines and healthcare products that form the foundations of today’s GSK. (GSK, 2018)
GSK is a highly recommended leading pharmaceutical company in the United Kingdom and all over the globe over 160 countries. Their three global businesses are pharmaceuticals, Vaccines, and consumer healthcare.
Rolls-Royce grew from the electrical and mechanical business established by Henry Royce in 1884. Royce built his first motor car in 1904 and in May of that year met Charles Rolls, whose company sold quality cars in London. An agreement was reached that Royce Limited would manufacture a range of cars to be exclusively sold by CS Rolls & Co – they were to bear the name Rolls-Royce. (Rolls-Royce, 2018)
Rolls-Royce is actually two companies, where most are familiar with the automobile division however, it also has an aerospace and defense division which in fact generates the higher revenue in the company. Rolls-Royce is the 2nd largest jet engine manufacturers in the world. Additionally they provide engines to ships and submarines as well. They provide to customers over 150 countries and operate in over 50 countries.
4. Imperial Tobacco
Founded in 1901, Imperial Tobacco has established itself as one of the world’s leading producers of high-quality tobacco products. Imperial Tobacco Limited is the UK’s No.1 tobacco company manufacturing and distributing brands such as Lambert & Butler, JPS, Player’s, Carlton, Golden Virginia and Rizla for the UK market. (Imperial Tobacco, 2016)
Imperial Tobacco is a part of the Imperial Group, the group currently has over 33,000 employees and is currently operating in over 44 countries and providing to customers in over 160 countries.
1.2 Vision, Mission and Values
Unilever has a simple but clear purpose:
“To make sustainable living commonplace. We believe this is the best long-term way for our business to grow.” (Unilever, 2018)
This vision statement puts emphasis on sustainability, especially among consumers. The following components are notable in Unilever’s vision statement:
1. Commonplace sustainable living
2. Best long-term way
3. Business growth
Commonplace sustainable living is a core component in Unilever’s corporate vision statement. This component shows the company’s efforts in changing its products to suit current market conditions. For example, through sustainable design for home care and personal care products, Unilever helps consumers reach their goals to integrate sustainability in their lives. The corporate vision also states that commonplace sustainability is the best long-term way for the business. Unilever understands the importance of sustainability and other market trends shaping the industry. Moreover, the vision statement reflects the company’s view of sustainability as a way to maintain business growth. This vision statement aligns with Unilever’s corporate social responsibility strategy to address business stakeholders in the consumer goods industry. (Young, 2017)
“Adding vitality to life. Meeting everyday needs for nutrition, hygiene, and personal care. Helping people feel good, look good, and get more out of life.” (Young, 2017)
This mission statement underscores how the company satisfies customers in various aspects of their lives. The following are the significant components in Unilever’s mission statement:
1. Adding vitality to life
2. Meeting everyday needs for nutrition, hygiene, and personal care
3. Helping people feel good, look good, and get more out of life
Adding vitality to life is a general indicator of business strategy in Unilever’s corporate mission statement. Such vitality is the value that consumers can expect from the company’s products. The corporate mission also specifies the aspects of life where such vitality is added. For example, Unilever’s food products address consumers’ vitality needs in terms of nutrition. Furthermore, through these products, the company attracts customers who want to feel good, look good, and get more out of life. The mission statement’s specification of the types of products provides a foundation for the product mix in Unilever’s marketing mix. (Young, 2017)
Our Corporate Purpose states that to succeed requires “the highest standards of corporate behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact.”
Our values define how we do business and interact with our colleagues, partners, customers and consumers. Our four core values are integrity, responsibility, respect and pioneering. As we expand into new markets, recruit new talent and face new challenges, these guide our people in the decisions and actions they take every day. (Unilever, 2017)
1.3 Stakeholders and stakeholders’ objectives
Stakeholders are the individuals, groups or organizations that possess an interest or concern towards the organization, and can affect or be affected through the activities or objectives of the organization.
Simply customers, investors, pressure groups, suppliers, government, investors/ shareholders, local communities, managers, owners, employees can be identified as the stakeholders of an organization.
These Stakeholders can be separately identified as follows:
Stakeholders can be internal or external, the internal stakeholders are the parties which are directly involved in the activities of the organization, like owners, employees, investors and managers. Similarly, the external stakeholders are the parties which do not directly be involved with the activities of the organization however are affected in some way by the activities of the organization, such as the government, local communities, lenders, suppliers, customers and pressure groups.
However, it may be difficult to satisfy all interests of the stakeholders since the interest of one stakeholder may oppose with the interest of another stakeholder. In example, the Shareholders aim to increase their wealth through making investments whereas, the managers aim to reduce the costs and this may deprive the interests of the shareholders.
1. Owners/ Shareholders – Owners or the shareholders have the similar objective over the organization in return for the investments they make on the organization i.e., to increase their wealth.
As mentioned in the figure 1.2 the outlook for the 2018 of the Rolls-Royce Company is pretty successful. Additionally, the increase in the profits mean that the wealth of the owners/ shareholders would also eventually result in an increase.
2. Employees and Managers – Employees and managers too basically possess the same interest over the organization where they are employed at i.e., to salary increments and promotions. Currently, Rolls- Royce employ a staff over 22,300 employees. Rolls-Royce accounts for 1 in every 250 jobs in the UK. (Rolls-Royce, 2018)
They also train over 600 apprentices in their UK schemes. Additionally they have invested over £ 32 million on learning during the year 2016. Although we know it’s not all you look for, we offer all employees competitive base salaries and access to bonus plans. (Rolls-Royce, 2018)
1. Customers – A customer’s main and prime interest on a particular organization would be to fulfill their needs and wants. Further, the main customer segment of the Rolls-Royce organization are the young adults of the age 30s and the adults of the age 45s. Rolls-Royce is a luxury brand vehicle which mostly targets the customers with the ability the purchase their vehicles who are mostly of the higher social class. Accordingly, our deep design knowledge and in-service experience ensures that we are best placed to help our customers to optimize product performance and availability. Our service agreements drive reliability improvements to reduce the frequency of maintenance intervals. (Rolls-Royce, 2018)
2. Suppliers – Suppliers interest over an organization would be the continuation of the contracts and due payments. According to Rolls-Royce “Supplier Code of Conduct”, we recognize the importance of paying suppliers on time for the goods and services they provide. As part of this commitment we have produced guidance materials for suppliers to help ensure they are paid on time. (Rolls-Royce, 2018)
3. Government – Government’s interest over the organization would be the obtain taxes on time and to oblige by the laws set by them. Therefore Rolls-Royce, We are committed to undertaking any lobbying activities in compliance with all applicable laws, and to behave ethically in all our interactions with governments, their agencies and representatives. Rolls-Royce is registered in the EU’s Transparency register. Rolls-Royce North America is registered under the federal Lobbying Disclosure Act. Certain employees have qualified as “lobbyists” under the Act and are consequently listed as such on the company’s registration. (Rolls-Royce, 2018)
4. Local Communities – Local communities are interested in an organization in order to obtain employment opportunities, to improve living standards, etc. Following that Rolls-Royce is engaged in several projects to enhance the standards of local communities through, Muskaan, it is a STEM learning initiative conceived by Rolls-Royce and supported by Charities Aids Foundation India to increase interest and encourage learning amongst students taking Science, Technology, Engineering and Math (STEM) subjects.
CRISP scholarship is funded by the Foreign and Commonwealth Office and Rolls-Royce for mid-career top level people in the field of science and innovation – with links to public policy – in India ; Sri Lanka.
Tamana is a non-profit voluntary organisation that helps the cause of mentally challenged, multiply disabled and autistic.
NFBM is a social organisation that strives for equality of opportunity for the blind in their education, training and employment. The organisation has started a school for blind girls.
Agastya is a charitable education trust that runs the world’s largest mobile hands-on science education programme for economically disadvantaged children and teachers. (Rolls-Royce, 2018)
1.4 Organizational responsibilities
During the earlier days the organizations were more focused on the shareholder concept where only the shareholders were benefited by the activities of the organization, however after several years the idea of benefiting the stakeholders was put forward which is the stakeholder concept. Therefore many organizations have diverted their attention towards the performing activities of the organization which would create benefits to the entire society in addition to its shareholders.
Organizational responsibilities is the way of giving back to the society, this encourages organizations to care about the society. These responsibilities are referred in several other terms like, corporate social responsibilities, business social responsibilities, corporate social performance, etc. The social responsibility is an obligation that goes beyond the organizational rules and it is a voluntary obligation. There is no universally accepted definition for business social responsibilities, however after taking all definitions provided by several organizations and scholars a common definition can be built as follows:
“Business social responsibility is the obligation of an organization’s management towards the welfare and interest of society in which operates”
According to the present view social responsibilities of an organization can be discussed under four categories:
Further, there are several benefits an organization obtains through engaging in business social responsibilities. Such as,
1. Ability to attract potential investors.
2. Organization gets support from the society to carryout organizational activities.
3. It improves the image and reputation of the business.
4. Less control of government due to satisfying the social responsibilities.
5. Can use as a tool to face the competition in the market.
“We believe business growth should not be at the expense of people and the planet. That’s why we’ve changed the way we do business, and why we want to change the way business is done. Our business model drives growth that is consistent, profitable, competitive – and responsible.” (Unilever, 2018)
Unilever has come up with a particular plan called The Unilever Sustainable Living Plan (USLP) implemented in the year 2010, which ensures to meet all the interests of their stakeholders while growing as an organization and to preserve the environment giving a positive social impact.
Unilever has implemented three big goals in order to maintain the Unilever Sustainable Living Plan. “Our Plan sets stretching targets, including how we source raw materials and how consumers use our brands. It has three big goals, supported by commitments and targets grouped across nine pillars which span our social, economic and environmental performance across the value chain.” (Unilever, 2018)
The Three goals and the nine pillars are as follows:
1. Improving health and well-being for more than 1 billion
By 2020 we will help more than a billion people take action to improve their health and well-being. 538 million people has already been achieved.
a. Health and Hygiene
i. Reduce diarrheal and respiratory diseases through hand washing – Not on track
ii. Provide safe drinking water – On track to achieve
iii. Improve access to sanitation – On track to achieve
iv. Improve oral health – Achieved
v. Improve self-esteem – On track to achieve
b. Improving nutrition – 35% of our portfolio by volume met highest nutritional standards in 2016.
i. Reduce salt levels – On track to achieve
ii. Reduce saturated fat – 92% achieved
iii. Increase essential fatty acids – 92% achieved
iv. Reduce saturated fat in more products – On track to achieve
v. Remove trans-fat – Achieved
vi. Remove sugar – On track to achieve
vii. Reduce calories in children’s ice creams – Achieved
viii. Reduce calories in more ice cream products – Achieved
ix. Provide healthy eating information – 86% achieved
2. Reducing environmental impact by ½
By 2030 our goal is to halve the environmental footprint of the making and the use of our products as we grow our business. Our products’ lifecycle, halve the greenhouse gas impact of our products across the lifecycle by 2030. Our greenhouse gas impact per consumer use has increased by around 8% since 2010. Our manufacturing, by 2020 CO2 emission from energy from our factories will be at or below 2008 levels despite significantly higher volumes.
a. Greenhouse gas – Our greenhouse gas impact per consumer use has increased by around 8% since 2010. 43% reduction in CO2 from energy per ton of production since 2008
Become carbon positive in manufacturing:
i. Source all energy renewably – On track to achieve
ii. Source grid electricity renewably – On track to achieve
iii. Eliminate coal from energy mix – On track to achieve
iv. Make surplus energy available to communities – On track to achieve
v. New factories – On track to achieve
Reduce greenhouse gas from washing clothes:
vi. Reformulation – Achieved
vii. Reduce GHG from transport – On track to achieve