Pugnacious Terry Smith is throwing punches again. The Mauritius-based fund manager has lambasted consumer-goods giant Unilever for its public posturing. It’s not just that autonomous subsidiary Ben & Jerry’s is to stop selling ice-cream in Jewish West Bank settlements and areas of east Jerusalem. “More ludicrous,” Smith says, is the company’s attempt to define the purpose of Hellmann’s mayonnaise.
Jope appears to be fashioning himself as Polman 2.0 with an investor-friendly update. He’s retained purpose as buzzword number one. Yet its role is more commercially disciplined. Jope wants every Unilever brand to be capable of being marketed with some benefit to society other than its core function.
Jope isn’t asking his marketing department just to staple a random cause to each of his products. There has to be some relevance. Overall, it makes sense in theory and Unilever says it’s working in practice too. Surely Hellman’s or Knorr stock cubes merit their place if: customers want them because they taste better than the competition; the workers can be well paid and operate in decent conditions, using ingredients from suppliers who are treated fairly; production and consumption don’t harm the environment; and there’s profit for shareholders?
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