Executive summary
The central purpose of this report is to assess Unilever's "economic footprint" in South Africa. It builds on an earlier study jointly undertaken by Unilever Indonesia and Oxfam GB and Novib (Oxfam Netherlands), which focused on Unilever's role in poverty reduction. The present report is broader in scope and focuses on Unilever's impact throughout the South African economy.
Unilever South Africa (ULSA), a subsidiary of Unilever PLC, has been operating in South Africa for more than 100 years. It ranks among the country's "Top 40" companies and in 2005 – it generated about R8.5 billion in sales of branded food, home and personal care products, while employing more than 4 000 workers and managers. What is the overall impact of this enterprise on South Africa's growth and development, and on its society and environmental quality?
In this report, these questions are examined using both quantitative and qualitative analysis. From an economic standpoint South Africa's input – output tables and a related Social Accounting Matrix are used to generate estimates of Unilever South Africa's direct, indirect and induced impact on such variables as private sector investment, household incomes, employment and government revenues.
Unilever South Africa's direct impacts are those felt by its 3 000 suppliers and their 20 000 employees due to the company's purchases of goods and services from them; its indirect impacts are those felt by its suppliers' suppliers owing to the orders they receive; and its induced impacts incorporate the overall demand for goods and services made by the employees of Unilever South Africa, its suppliers, and its suppliers' suppliers based on their consumption expenditures out of wages paid.
