Unilever boss Paul Polman slams capitalist obsession with profit
Paul Polman has criticised business leaders for putting profit ahead of sustainability, arguing that both can exist 'without compromise'
5:00AM GMT 28 Jan 2015
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Unilever’s Paul Polman has criticised business leaders for putting profit ahead of global issues, such as poverty and climate change.
The chief executive, who once trained as a priest, said business should never be about making money alone.
“Profit is not a purpose, it’s an end product. I always want a deeper result. People assume that if you do something good, it must cost money. I don’t know where they get that idea from,” he said, adding that business leaders “don’t need to compromise”.
“If you make closed loop systems [manufacturing operations that produce no waste], you de-risk your model and it’s good for the planet,” he said.
According to Mr Polman, the consumer goods giant has been investing in creating a greener business model, using sustainably sourced materials in its packaging, acting against deforestation and ensuring all factories are “zero waste”.
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“If we invest smartly now, then we can have our cake and eat it too,” said Mr Polman, citing Unilever’s recent financial results, which show that despite falling revenues, pre-tax profits for 2014 rose 7pc to €7.6bn (£5.7bn).
“Our share price is up 25pc over the past four months alone, showing the world that you can address tough issues without touching the economic viability of your business model.”
Mr Polman claimed it will take a $90 trillion (£59 trillion) investment in infrastructure over 15 years to build a sustainable economy to fight global warming. “Companies make up 60pc of the global economy. If they don’t play an active part, how can we solve this crisis?”
Consumer giant Unilever owns hundreds of household names including Dove, PG Tips and Hellman's
Speaking before Unilever’s Sustainable Living Young Entrepreneurs Awards in London, Mr Polman praised the new generation of social enterprises for helping to save people and planet.
The winner, Daniel Yu, founded technology company Reliefwatch to update health workers in developing countries when health centre medicines are set to expire or when stocks are low.
The start-up, which taps into existing mobile phone networks instead of requiring any investment in new IT, has operations in Honduras, Nicaragua and Panama.
Reliefwatch works with NGOs across Honduras to prevent patients receiving out-of-date medicines
Established business leaders must follow the example of young innovators in coming up with modern strategies that tackle critical issues like these, Mr Polman said: “We need to bring these young entrepreneurs into our value chain and help them to be successful.”
“We now have the opportunity to eradicate poverty and deal with the issue of climate change. What bigger opportunity do you want to see?” he added. “If we don’t all tackle climate change in a constructive way, global growth will be stifled.”
