Unilever Essay

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Though there are some barriers but it is not impossible to have the UTZ Certification and work according to their code of conduct. To see the practicality of the certification program we studied possible impact of adopting UTZ Code of Conduct to SariWangi a famous tea brand of Indonesia. * SariWangi is one of the most popular tea bag brands in Indonesia owned by PT. UNILEVER INDONESIA Tbk. It was founded in 1973. In 2009, SariWangi expanded their warehouses and manufacturing facilities by acquiring 3.8 hectares more and were able to accommodate up to 60,000 tons per year and a blended tea manufacturing facility doubled to 8 billion tea bags per year. (Source: http://www.unilever.co.id/brands-in-action/detail/Sariwangi/325427/?WT.contenttype=view0brands) . * Also Unilever seeing globally has a long, rich history in addressing social issues through their business and brands. Also they have started their own Unilever Foundation to reduce environmental footprint and to have good social impact by having partnership with UNICEF, SAVE THE CHILDREN Campaign, OXFAM, WFP and etc. * So having detailed look in the company CSR policies and etc , Unilever can easily adopt the Code of Conduct designed by Utz as they adopted in some African countries but looking SariWangi as a local brand the people of Indonesia would not be ready to pay the higher prices for the Utz Premium ( The premium that reflects the extra price paid for Utz Certified Tea compared to the price that would be paid if the tea would not be certified). Indonesia being in a list of underdeveloped countries it would be unfair to customers to pay extra for higher quality. * Also a local study was done to check the diffrences between the prices of Utz certified Tea bags and Unilever’s Sariwangi Tea bags which showed a increase around 37% * Price for sariwangi tea bags- 15$ for tea bags *

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