SPENCER PLATT/GETTY IMAGES
Voices
to have to invest huge amounts of
time preparing detailed income
and margin statements every
quarter. No other aspect of business is run on such short time
horizons — certainly not R&D,
capital investment programs, buying contracts, even advertising. So
why should financial reporting?
Likewise for the giving of constant
guidance and then managing toward these expectations versus
management of the business.
The priorities of business also
need to be challenged. Since the
1980s we have all been worshiping at the altar of shareholder
value. This is a doctrine that
says that the principal purpose
of business is to maximize returns to its investors.
At Unilever we have challenged
both these precepts. We have
abandoned quarterly reporting
as well as guidance. We have also
made it clear that our paramount
goals are to satisfy the demands
of consumers and customers and
to serve the needs of the communities where we operate. I am
convinced that if we do these
things well we will deliver excellent returns to our shareholders.
And so far we have not been disappointed, as we have performed
PAUL
POLMAN
strongly despite a challenging
economic environment.
The great challenge of the 21st
century is to provide good standards of living for 7 billion people
without depleting the earth’s resources or running up massive levels of public debt. To achieve this,
government and business alike will
need to find new models of growth
that are in both environmental and
economic balance. It requires new
levels of leadership as well.
As global temperatures continue to rise and natural resources deplete, business has to
decide what role it wants to play.
Does it sit on the sidelines waiting for governments to take action or does it get on the pitch
HUFFINGTON
10.20.13
Traders work
on the floor
of the New
York Stock
Exchange in
October 2013.