Innovation

Unibrands and SDGs

They are actively working with parts of the sustainable development goals on a daily basis and include them in the company’s operation. Furthermore, Unibrands' works with a supplier’s guide, which every partner needs to sign. This supplier's guide consists of guidelines and frameworks that contribute to improvement within several of these sustainability areas. One part of the guide includes restrictions from REACH, which is a list of dangerous chemicals that are forbidden for use within the EU when producing clothes. Moreover, Unibrands is a member of the AMFORI, also known as Business Social Compliance Initiative (BSCI).

“Some of the SDGs are harder to control and effect when working within the textile business.” - Anne Broström.

Inspiration

“A prosperous company has employees knowing why they do what they do, resulting in customers buying the firm’s products or service.” - Simon Sinek.

Leadership and Social Entrepreneurship

The servant leadership is supported by how Unibrands shows the importance of educating and encouraging their employees in order to expand the company. An example of a servant action is how Unibrands used to support schools in China. If the company wants to be perceived as a social entrepreneurial business, there is a need to consider to reintroduce the charity work or other likewise social beneficial activity.

Overall impact

Socio-Cultural Environment

When applying Hofstede's comparison tool, you can tell there is a large difference in almost all dimensions between Sweden and China, except from the Uncertainty avoidance index. China exhibits a high degree of Power distance. Based on the article by Rowley and Ulrich (2012), businesses in Asia usually use hierarchy and paternalism and employees seldom question their managers or speak up. Moreover, China is a society with a high degree of masculinity. In China, there is currently a “war of talent” since employers want to hire the most talented. The collectivism dimension points out, for instance, trust among followers, which is highly recommended in leadership. In addition, it's discussed that the Chinese people prior the verbal agreement before the legal contracts and they evaluate reciprocity highly, meaning that they expect high loyalty out of their relationships by giving and taking. The time required to build up a good relation to Chinese people is one of the reasons of their high degree of long-term orientation.

Business benefit

Unibrands Enters a New Market

Unibrands intention is to expand and develop larger parts of their business into Bangladesh in the future. Regarding Hofstede’s six-dimension model, the Bangladeshi culture looks very similar to China in every dimension, excluding two (see picture). This equals that Bangladesh also has a high degree of Power distance, a low degree of Individualism, middle high degree of Masculinity and a low degree of Indulgence. The dimensions that differ compared to China is Uncertainty avoidance and Long-term orientation.

Social and environmental benefit

Knowing Why

It is essential to look upon sustainability and switch focus from just making profit and instead focusing on the whole supply chain. To work in accordance with this, Unibrands has an intention, their Why, to make both the employees and clients aware of the way they do sustainable business. One example of how they have started making factories and employees aware in China, is to use BSCI. A solution of raising awareness, Anne has a vision of educating the organization through creating an event. Everyone in the company will actively be participating and discussing, to gain more knowledge about the topic. Based on this event, a book can be designed and available for everyone, to inform how Unibrands works towards a better world. Furthermore, one can see the importance of letting every employee be fully aware of the whole supply chain. This is insured by field trips for everyone working at Unibrands to the factories in China.

Therefore, Unibrands would benefit from embracing this view of operating. Consequently, transformational leadership optimizes performance and identity among coworkers. Furthermore, the event mentioned above, should be held in Sweden, China and Bangladesh. Due to the problem of China’s diminishing workforce, Unibrands should value their employees and encourage them by giving the sense of identity. With the use of correct leadership models and a sustainable work plan, the perception of the company might attract and/or satisfy workers.

Interviews

Christer Andersson, Owner & Buying Director

Anne Broström, CSR Consultant