Building a Sustainable, Profitable Business in Volatile Times
On Monday the 20th of June 2016, Nigeria hosted one of the world’s most respected, proficient and accomplished business leaders Chief Executive Officer (CEO) of Unilever Global, Paul Polman, to an interactive session organised by Unilever Nigeria Plc and the Lagos Business School (LBS) in Lagos.
That day, the audience made up of key stakeholders in the Nation’s business sector were left enthralled, not only because of the extemporaneous nature of the delivery, but also because of the absolute qualification of the speaker and the practical application of the delivery to building sustainable and profitable businesses especially in volatile times.
Starting on a rather positive note Polman appraised the times we live in through the eyes of a confident optimist but not without identifying the prevailing challenges, saying we are truly in volatile times as well as the best of times. Never for once in the history of mankind has there been a better time to be born than now. People born in this generation are healthy and have more chances of education, it is a good time to be in this world, but at the same time, there are enormous challenges than in the time past that need to be addressed” he begins.
Reflecting on the opportunities and challenges associated with building profitable businesses in volatile times. Polman identified globalisation, digitisation and the era of abundance resulting from climate change as three global trends creating volatility with accelerating change, while calling for an all round support of the Sustainable development goals to help tackle the prevailing challenges.
“In September, 2015, 193 countries came together at the United Nations and signed the Sustainable Development Goals (SDGs); these are the continuation of the Millennium Development Goals (MDGs). We now have more opportunity to irreversibly eradicate poverty in a more sustainable way in the next 15 years and that is what the Sustainable development agenda is all about. It is about people, planet, peace, partnership, prosperity and common good,” he said.
Explaining the important role of the SDG’s in building profitable businesses, Polman continued “it is very important that businesses get involved in the SDGs, because business is 60 per cent of the GDP, 80 per cent of the financial flow and 90 per cent of the job creation. It will be ludicrous to think that government alone can handle this agenda. Any business that doesn’t contribute to the development of the society, block its own progress by doing so. It is very simple, the society cannot support a business that doesn’t contribute to the society.”
.Polman then revealed that providing green energy, empowering women and building youth capacity are three key areas that deserve deliberate attention and can yield rich rewards.
“Giving women the same opportunity as the men in this world is an opportunity to unlock the global economy by 28 trillion dollars. Providing green energy for everybody will unlock discountenance by $12 trillion and the more we create an environment where, we can unlock the potential of the young by simply including them in the design of their future; the better we are off,” he maintained.
Commenting on how Unilever has successfully built a record of sustainability over the years, Polman said: “At Unilever, we have determined to be a company that positively contribute to the society if we want to exist long time. We have been around for over a 100 of years and we are going to be around for a hundred of more years, but only if we make a positive contribution to the society. CSR is fine but it only brings you so far. We need to be sure that our business models truly address some of the major issues in the society, issues of sanitation, hygiene, food security, youth unemployment and access to water. The more you look at these issues, the more you see the enormous opportunities that are being offered to you. At Unilever, we have set our business models called ‘Unilever Sustenance Living Plan.”
According to Polman, these adopted business models have seen the company grow to greater heights across national boundaries.
“Since we started that, not surprisingly, we have seen our business do better, because we are becoming more relevant, people feel more motivated by doing more relevant work. We are attracting the right investors who want to invest in relevant long-term businesses. Our reputation has gone in globe scale; many of the countries that we operated in have seen us as either the most responsible or the most desired employer. People want to be part of a company that has a purpose and is making a difference,” he said. Polman also highlighted the place of purpose and partnership in driving successful businesses, declaring that purpose drives businesses. “We are a consumer goods company so we sell brands. All of our brands need to live the purpose. Lifebuoy helps a child reach the age of 5 by a simple act of hand washing. Knorr brings nutrition to people, in this part of the world; lack of iron has led to big issues like anaemia. Every brand with its social purpose is an enormous opportunity. The more you tap into these opportunities; the better you do. It is important to also cultivate partnership that works a partnership for prosperity,” he said.
Underscoring the role of transparency in achieving successful sustainability, Polman said: “We need business models that are more transparent, trust is low in this world, if we want to solve these problems and work together; you need to have a higher level of trust that comes from transparency. Transparency builds trust and that trust is the basis of prosperity. If you seek prosperity just to enhance yourself, you miss its purpose, but if you seek prosperity just to help others, you are fulfilling purpose. My simple message to you is - go with purpose,” he added.
Polman’s concluding words may have earned him an enduring and resounding applause amidst a standing ovation, but the overall effect of his delivery will sure have a lasting impression on his listeners and indeed the business sector in Nigeria, providing the needed pedestal to build profitable and sustainable businesses especially in the volatile times that we live in.