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Unilever Annual Report & Accounts and Form 20-F 2000

Unilever Annual Report & Accounts and Form 20-F 2000

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24<br />

<strong>Unilever</strong> <strong>Annual</strong> <strong>Report</strong> & <strong>Accounts</strong> <strong>and</strong> <strong>Form</strong> <strong>20</strong>-F <strong>20</strong>00<br />

Operating review - other information<br />

People<br />

year end in thous<strong>and</strong>s 1996 1997 1998 1999 <strong>20</strong>00<br />

Europe 101 84 82 76 82<br />

North America 31 23 23 22 39<br />

Africa & Middle East 64 58 57 48 46<br />

Asia & Pacific 78 74 72 71 84<br />

Latin America 30 30 31 29 44<br />

Total 304 269 265 246 295<br />

<strong>Unilever</strong>'s new organisation is designed to create an<br />

enterprise culture. Our leaders must be role models in<br />

this transformation. In selecting the top team for our new<br />

divisional structure, we consciously chose individuals with<br />

the right leadership skills to develop the business. These<br />

appointments included the most talented employees<br />

from Bestfoods.<br />

To foster enterprise, <strong>and</strong> to retain the best people, our new<br />

reward system is linked firmly to business performance <strong>and</strong><br />

includes a shares component. Indeed, share ownership is<br />

being actively encouraged company-wide, to bring<br />

employee <strong>and</strong> shareholder interests closely together.<br />

Our knowledge is what gives us our competitive advantage.<br />

The technology of the internet is being used to great effect<br />

to increase information sharing <strong>and</strong> to accelerate learning.<br />

Best practice is becoming common practice.<br />

We have greatly increased our emphasis on internal <strong>and</strong><br />

external communication. During the year, all employees<br />

were fully briefed on the Path to Growth strategy <strong>and</strong><br />

are regularly updated on its progress. There was a major<br />

initiative to improve the communications effectiveness<br />

of our senior business leaders.<br />

The realignment behind our biggest br<strong>and</strong>s, within two<br />

dedicated divisions, offers great opportunities for growth,<br />

career moves <strong>and</strong> personal development. As announced in<br />

<strong>20</strong>00, the sharpened br<strong>and</strong> focus also involves a programme<br />

of business disposals <strong>and</strong> redundancies. Our commitment to<br />

pursue this programme in a fair <strong>and</strong> open manner is being<br />

honoured <strong>and</strong> will continue to guide our actions.<br />

<strong>Report</strong> of the Directors<br />

Related party transactions<br />

Other than those disclosed in these accounts, there were no<br />

related party transactions that were material to the Group or<br />

to the related parties concerned that require to be reported<br />

in <strong>20</strong>00 or the preceding two years. Transactions with<br />

related parties are conducted in accordance with the<br />

transfer pricing policies described on page 49 <strong>and</strong> consist<br />

primarily of sales to joint ventures. These are disclosed on<br />

the face of the profit <strong>and</strong> loss account on page 50.<br />

Information concerning guarantees given by the Group is<br />

stated in note 25 on page 69 <strong>and</strong> under ’Mutual guarantee<br />

of borrowings’ on page 114.<br />

Intellectual property<br />

We have a number of patents, <strong>and</strong> we conduct some<br />

of our operations under licences which are based on<br />

patents or trademarks owned or controlled by others.<br />

We are not dependent on any one patent or group of<br />

patents. We protect our br<strong>and</strong>s <strong>and</strong> technology in every<br />

available way.<br />

Description of our properties<br />

We have interests in properties in most of the countries<br />

where there are <strong>Unilever</strong> operations, however none is<br />

material in the context of the Group as a whole. The<br />

properties are used predominantly to house production <strong>and</strong><br />

distribution activities <strong>and</strong> as offices. There is a mixture of<br />

leased <strong>and</strong> owned property throughout the Group. There<br />

are no environmental issues affecting the properties which<br />

would have a material impact upon the Group. See the<br />

schedule of principal group companies <strong>and</strong> fixed investments<br />

on page 101 <strong>and</strong> details of tangible fixed assets in note 10<br />

on page 58.<br />

Legal proceedings<br />

We are not involved in any legal proceedings <strong>and</strong> do not<br />

have any obligations under environmental legislation which<br />

we expect to lead to a material loss. None of our directors<br />

or officers are involved, in any way, in any material legal<br />

proceedings against us.

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