Introduction
This essay examines a significant ethical issue in human resource management (HRM) faced by Unilever, a global leader in consumer goods. Unilever, with a presence in over 190 countries, prides itself on sustainability and ethical business practices. However, the company has encountered HRM-related ethical challenges, particularly concerning labour conditions in its supply chain. This paper focuses on the issue of fair treatment and working conditions for workers in Unilever’s supply chain, specifically relating to tea plantation workers in Kenya. The essay explores the nature of this ethical concern, analyses Unilever’s response, and critiques the broader implications for HRM practices in multinational corporations. By drawing on academic literature and authoritative reports, this analysis aims to provide a balanced perspective on the complexities of managing ethical labour practices globally.
Background of Unilever and Ethical HRM Challenges
Unilever is a multinational corporation headquartered in the UK and the Netherlands, specialising in food, personal care, and household products. The company employs over 127,000 people directly and relies on a vast global supply chain (Unilever, 2023). HRM in such a context extends beyond direct employees to include ethical oversight of suppliers and contractors. Ethical HRM involves ensuring fair wages, safe working conditions, and respect for workers’ rights, aligning with international standards such as those set by the International Labour Organization (ILO).
One persistent challenge for Unilever has been maintaining ethical standards across its supply chain, particularly in regions with weaker labour regulations. Reports have highlighted issues such as low wages, long working hours, and inadequate safety measures among workers in Unilever’s supply chain, especially in developing countries. This essay narrows its focus to the company’s tea plantations in Kenya, where allegations of poor working conditions and human rights abuses have surfaced in recent years, raising significant ethical questions for Unilever’s HRM policies.
The Ethical Issue: Labour Conditions in Kenyan Tea Plantations
Unilever sources a significant portion of its tea from plantations in Kenya, including its own estates and third-party suppliers. While the company has promoted sustainability through initiatives like the Sustainable Living Plan, it faced criticism in 2021 when allegations emerged of sexual harassment, violence, and exploitative working conditions at its Kenyan plantations. A BBC investigation uncovered claims of systemic abuse, including gender-based violence against female workers, alongside inadequate pay and poor living conditions (BBC News, 2023). These issues directly challenge Unilever’s commitment to ethical HRM and its responsibility to uphold workers’ rights.
From an HRM perspective, the ethical issue here is twofold. First, there is the failure to ensure a safe and equitable workplace, which violates fundamental principles of employee welfare. Second, Unilever’s reliance on third-party suppliers complicates accountability, raising questions about how HRM policies can effectively extend to indirect workers. Indeed, multinational corporations like Unilever often face a tension between profitability and ethical responsibility, particularly in regions where local governance of labour standards is weak (Crane and Matten, 2016). This case exemplifies the broader difficulty of enforcing ethical HRM in a globalised supply chain.
Unilever’s Response and HRM Strategies
In response to the allegations, Unilever issued public statements condemning the reported abuses and initiated investigations into the claims. The company also committed to improving worker safety and welfare through enhanced training, grievance mechanisms, and third-party audits of its supply chain (Unilever, 2023). Furthermore, Unilever announced plans to divest from its Kenyan tea estates, transferring ownership to local entities while maintaining sourcing agreements that include strict ethical standards (BBC News, 2023). These actions reflect an attempt to address the HRM ethical issue by restructuring operational control and reinforcing accountability.
However, Unilever’s response has not been without criticism. Some argue that divesting from direct ownership of plantations may reduce the company’s ability to oversee working conditions, potentially shifting responsibility rather than resolving the underlying issues (Oxfam, 2022). From an HRM perspective, this raises the question of whether multinational corporations can genuinely uphold ethical standards through indirect relationships. Arguably, Unilever’s approach demonstrates a pragmatic effort to mitigate risk, but it also highlights the limitations of enforcing ethical HRM across complex supply chains.
Critical Analysis of HRM Ethical Implications
The Kenyan tea plantation case illustrates several broader implications for ethical HRM in multinational corporations. Firstly, it underscores the importance of due diligence in supply chain management. As Greenwood (2013) argues, ethical HRM requires not only internal policies but also robust mechanisms to monitor and enforce standards among suppliers. Unilever’s initial oversight failures suggest a gap in such mechanisms, which could have been mitigated through regular audits and worker engagement.
Secondly, the case highlights the role of cultural and contextual factors in HRM ethics. In Kenya, economic disparities and weak labour protections create an environment where exploitation can thrive. Multinationals like Unilever must therefore adapt HRM practices to local realities while adhering to global ethical standards, a balance that is often difficult to achieve (Shen, 2011). This complexity is compounded by stakeholder expectations, as consumers and advocacy groups increasingly demand transparency and accountability from corporations.
Lastly, while Unilever’s response shows an awareness of the issue, it also reveals the reactive nature of ethical HRM in crisis situations. A proactive approach—such as embedding ethical training and worker empowerment in supply chain contracts from the outset—might have prevented such issues. Generally, this case suggests that ethical HRM requires ongoing commitment rather than ad hoc responses to public criticism.
Conclusion
In conclusion, the ethical HRM issue faced by Unilever regarding labour conditions in its Kenyan tea plantations reveals the challenges of maintaining ethical standards in a global supply chain. The allegations of abuse and exploitation highlight failures in oversight and accountability, raising critical questions about how HRM policies can be effectively applied to indirect workers. While Unilever’s response demonstrates a willingness to address the issue through investigations and structural changes, critiques remain about the sustainability of these measures. This case has broader implications for multinational corporations, emphasising the need for proactive ethical HRM strategies, rigorous supply chain monitoring, and adaptation to local contexts. Ultimately, Unilever’s experience serves as a reminder that ethical HRM is not merely a compliance exercise but a fundamental component of corporate responsibility, with significant consequences for workers’ lives and organisational reputation. Addressing such issues requires continuous effort, transparency, and a genuine commitment to aligning business practices with ethical principles.
References
- BBC News. (2023) Unilever Faces Criticism Over Kenya Tea Plantation Conditions. BBC.
- Crane, A. and Matten, D. (2016) Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. 4th ed. Oxford University Press.
- Greenwood, M. (2013) Ethical Analyses of HRM: A Review and Research Agenda. Journal of Business Ethics, 114(2), pp. 355-366.
- Oxfam. (2022) Inequality in the Supply Chain: A Report on Global Labour Practices. Oxfam International.
- Shen, J. (2011) Developing the Concept of Socially Responsible International Human Resource Management. The International Journal of Human Resource Management, 22(6), pp. 1351-1363.
- Unilever. (2023) Annual Report and Accounts 2022. Unilever PLC.
[Word count: 1023, including references]
