QUESTION $2$

$$A stakeholder is a party that has an interest in a company and can either affect or be affected by the business.$$ With reference to the case study, explain briefly the BGS stakeholder model and discuss how Unilever has maintained mutual relationships with each of its primary stakeholders.

Corporate Social Responsibility $($CSR$)$ has become an increasingly important aspect of business operations, with companies recognizing the need to balance their economic goals with social and environmental responsibilities. Unilever, a global consumer good company, has emerged as a leader in this field, demonstrating a comprehensive approach to sustainability through its Sustainable Living Plan. In this responsible, we will examine Unilever$$s stake$-$holders management strategy and how it has successfully maintained relationships with its sustainability goals.

The BGS Stakeholders Model: The BGS $($Bursa$,$ Garriga and Schwalb$)$ stakeholder model is a framework that categorizes stakeholders into four main groups: organizational, economic, societal and regulatory stakeholders. This model recognizes that businesses have responsibilities towards various stakeholders, each with different interests and expectations.

$1.$ Organizational Stakeholders: Organizational stakeholder include employees, managers, and shareholders. Unilever has made significant efforts to engage and prioritize the well$-$being of its organizational stakeholders.

Employees: Unilever has implemented policies and programs aimed at supporting employee health, safety, and development. The company offers competitive benefits, flexible work arrangements, and opportunities for professional growth. Additionally, Unilever has established a strong corporate culture that values diversity, inclusion, and ethical conduct.

Managers: Unilever$$s management team plays a crucial role in driving the company$$s sustainability agenda. The CEO, Paul Polman, has been a vocal advocate for sustainable business practices and has integrated sustainability into Unilever core strategy. Managers are responsible for implementing the Sustainable Living Plan and ensuring that sustainability targets are met across all operations.

Shareholders: Unilever has demonstrated that sustainability and profitability can go hand in hand. The Sustainable Living Plan has contributed significantly to the company$$s growth, accounting for half of its growth in $2014$ and growing at twice the rate of the rest of the business.

This strong financial performance has helped maintain positive relationship with shareholders who seek long$-$term value creation.

$2.$ Economic Stakeholders: Economic stakeholder include suppliers, customers, and competitors. Unilever has taken a comprehensive approach to engaging with these stakeholders in its sustainability journey.

Suppliers: Unilever recognizes the importance to sustainable sourcing and has implemented stringent standards for its suppliers. The company has pledged to source $100\%$ of its agricultural raw materials sustainability by $2020.$ As of $2015,$ over $55\%$ of its agricultural raw materials were sustainably sourced. Unilever works closely practices and ensure adherence with its suppliers to promote sustainable practices and ensure adherence to its Responsible Sourcing Policy.

Customers: Unilever$$s products are designed with sustainability in mind, catering to the growing consumer demand for eco$-$friendly and socially responsible products. The company has made significant investments in research and development to create innovative products that are environmentally friendly and promote health and well$-$being. This approach has helped Unilever build trust and loyalty among its customers.

Competitors: While competition is inherent in the business world, Unilever has taken a collaborative approach to sustainability. The company has partnered with other organisations, such as the World Resources Institute and Rainforest Alliance, to drive change in the industry.

By leading by example and sharing best practices, Unilever aims to raise the bar for sustainability across the consumer goods sector.

$3.$ Social Stakeholders: Societal stakeholders include local communities, non$-$governmental organizations $($NGOs$),$ and the general public. Unilever has actively engaged with these stakeholders to address social and environmental issues.

Local Communities: Unilever$$s operations have a direct impact on local communities around the world. The company has implemented various community development programs, focusing on areas such as water and sanitation, health and hygiene, and livelihoods. For example, Unilever has reached over $397$ million people with programs on handwashing, safe drinking water, sanitation, oral health, and self$-$esteem.

Non$-$Governmental Organizations $($NGOs$)$: Unilever collaborates with various NGOs to address global challenges and advance its sustainability goals. For instance, the company has partnered with organizations like O