An adapted version of this newsletter first appeared on Inc.com
Alan Jope, CEO of Unilever since 2019, can trace the company’s purpose all the way back to its founding over 130 years ago. That’s when a man named William Lever began selling soap with the goal of making cleanliness commonplace and easing women’s workloads.
As Alan shared on my new podcast Deep Purpose, produced by Harvard Business School, the challenges he faces are much more complex. That company has grown and merged to the point that it now sells more than 400 consumer brands, from Dove shampoos and moisturizers, to Hellmann’s mayonnaise, to Ben & Jerry’s ice cream. But the same DNA that motivated the company to be socially responsible in 1885 continues to animate it today.
Of course, the challenges that Jope faces are much more complex and wide-ranging than they were in Lever’s day, as Unilever is now a giant company with a worldwide presence. It helps that Jope (who was born in Scotland) spent much of his career at Unilever offices around the world, in China, Russia, Africa and the Middle East. Throughout he has been determined to be a force for social good while also providing strong returns for shareholders. It hasn’t been easy. Here are some of the lessons Jope has learned as he has tried to fulfill Unilever’s purpose of making sustainable living commonplace.
Both profit and purpose must be tested through data. The company measures all its brands based on a pivotal question: Does the product make a positive contribution to society or the environment? At this point, the company says, 60 percent of its revenues come from brands that rank highly based on this index, and the number is growing rapidly. That’s up from 40 percent just five years ago.
And since Hellmann’s mayonnaise began prioritizing elimination of food waste, its performance has accelerated into double digits, Jope says.
One critic, noting Unilever’s languishing share price, mockingly asked: Does mayonnaise really need to have a purpose?
As a matter of fact, it does, Jope told me on my podcast. “Hellmann’s, as well as being an outstanding product, simply wants to help tackle food waste,” he explained. “Food waste is a massive contributor to carbon emissions…It is very much in Hellman’s interest, of course, to encourage people to eat up their leftovers with some delicious Hellman’s and avoid food waste. So it’s good for the brand and it’s good for the planet.”
Convincing shareholders that purpose and profit can co-exist is no easy feat. I have called trying to satisfying multiple stakeholders as “walking the razor’s edge.” And Alan has had to do that on multiple occasions.
Several months after I interviewed Jope, he announced that he would be resigning as CEO at the end of 2023. Investor discontent appears to have been a factor in his decision. I’m sure he wishes that investors could see how purpose is key to Unilever’s continued success.
Employee purpose is central to his company’s well-being. The company has conducted two-day purpose workshops for 55,000 employees, in part to help them find alignment between their personal and professional purpose. Unilever employees who report having this type of alignment are much more engaged with the company, show better performance, and score much higher than others in well-being and resilience, according to surveys.
Personal purpose needs to extend to the CEO’s office. When Jope himself took part in the purpose workshop, he realized that his attempt at clarifying his purpose was bland and uninspiring. Then he realized that his love of motorcycle travel was aligned with his leadership style.
When I talked to Jope, he was about to embark on the next leg of a world-spanning motorcycle race; he describes himself as someone who loves risk and adventure. He sees his 30-year career at Unilever – and the company’s goal to make sustainability commonplace – as an adventure. His role as CEO is to lead the adventure: “I do think it’s true to who I am and what motivates me.”
