Unilever to tone down social purpose strategy after ‘virtue-signalling’ backlash
Unilever will not search to “force-fit” all of its manufacturers with a social purpose, its new chief govt stated, following a backlash over the corporate’s “virtue-signalling”.
Hein Schumacher, who took over from Alan Jope in July, stated for a few of its manufacturers, giving them a social or environmental purpose “simply won’t be relevant or it will be an unwelcome distraction”.
He added: “I believe that a social and environmental purpose is not something that we should force-fit on every brand.”
It marks a change in place from Mr Jope, who positioned social purpose on the centre of his strategy for Unilever. In 2019, he pledged to unload manufacturers that “are not able to stand for something more important than just making your hair shiny, your skin soft, your clothes whiter or your food tastier”.
The stance prompted a backlash from the City, amid rising frustration at blue chip firms for prioritising modern causes over income.
Terry Smith, considered one of Britain’s best-known traders, has criticised Unilever for changing into “obsessed” with its public picture and accused the corporate of “virtue signalling” slightly than specializing in monetary efficiency.
He stated in January final yr: “A company which feels it has to define the purpose of Hellmann’s mayonnaise has, in our view, clearly lost the plot.”
Speaking on Thursday, Mr Schumacher stated Unilever was not “giving up on purpose-led brands” altogether. He stated for some manufacturers comparable to Dove, giving them a social or environmental purpose was “logical”, because it made them extra engaging for consumers. Dove makes use of the thought of “real beauty” in its advertising campaigns, that includes girls with completely different physique varieties.
