Is this CSR Champion Acting Like Scrooge?

Unilever has a terrific reputation for its CSR activities. So some students might be a little surprised that it has hit the headlines for perhaps the wrong reasons?

The consumer goods giant has been labelled a “modern day Scrooge” after it scrapped the Christmas party, hampers and bonuses for factory staff who staged its first UK strike. Over 2,500 employees have staged a strike in protest at changes to Unilever’s pension scheme.

The strike is highly unusual for Unilever. Newspapers report, in fact, that it is the first strike Unilever has experienced in the UK, despite the firm having a history that goes back well over 100 years. It looks like the employer-employee relationship has deteriorated significantly in recent months and Unilever management’s response is hardly likely to improve things in the short-term.

In retaliation for the industrial action, Unilever has cancelled striking workers’ Christmas parties, hampers and bonuses, instead opting to give away thousands of hampers to charity, along with £15 gift vouchers which employees were due to receive.

A trade union representative made the connection between Unilever’s CSR reputation and the apparent contradiction in their response to the pensions dispute…

“The company has a proud history of decency, this spiteful behaviour is very bad for their reputation.”

Will the action damage Unilever’s reputation? Possibly, but it very much depends on how much publicity the strike receives. Have you heard about it before you read this blog entry? If you are a customer who buys Marmite or Dove soap, will Unilever’s actions change your buying preferences as a consumer? I suspect not.