INTRODUCTION

A worldwide manufacturer of consumer goods, Unilever is active in a number of

industries, including food and drink, cleaning supplies, personal care items, and
others. Lever Brothers, a British soap manufacturer, and Margarine Unie, a Dutch
margarine manufacturer, merged to become it in 1930. Since then, Unilever has
expanded into one of the biggest and most powerful corporations in the world,
operating in more than 190 nations.

The goal of Unilever is to provide for people's basic requirements anywhere in the
world. A few of its well-known brands in its portfolio are Dove, Knorr, Lipton,
Axe, and Hellmann's. With an emphasis on social responsibility, environmental
sustainability, and ethical sourcing, the company is dedicated to sustainable and
ethical business practices.

Since 1948, Unilever Pakistan, a subsidiary of Unilever, has been conducting

business there. One of the biggest manufacturers of consumer goods in Pakistan, it
offers a variety of goods in areas like food, personal care, and home care. With a
substantial market share, Unilever Pakistan is well-known for its renowned brands
as Surf Excel, Sunsilk, Lux, Lipton, and Walls.

Unilever Pakistan regularly participates in corporate social responsibility programs

in addition to its business operations. In order to advance health and hygiene,
empower women, encourage education, and address environmental issues in the
nation, the corporation has put in place a number of projects. Customers respect
and trust Unilever Pakistan because of its dedication to sustainability and its
support of the community.
Corporate Governance in Unilever:
As a Unilever subsidiary, Unilever Pakistan follows a strict set of corporate governance
principles that guarantee openness, responsibility, and moral behavior in all aspects of business.
Following are a few significant elements of corporate governance at Unilever Pakistan:

1. Board of Directors: Unilever Pakistan's Board of Directors is in charge of regulating the

company's performance and strategic direction. The board is made up of both executive
and non-executive members, as well as independent members who offer unbiased
monitoring. They make sure the business is run in a way that benefits its stakeholders and
stockholders.

2. Unilever has a detailed Code of Business Principles that explains the moral principles and
values that the business maintains. All business operations, including interactions with
personnel, vendors, clients, and the communities in which it conducts business, are
governed by this code. It encourages honesty, justice, and ethical business practices.

3. Risk management: To detect, evaluate, and reduce potential risks, Unilever Pakistan
keeps strong risk management practices in place. Systems are in place within the
organization to track and manage operational, financial, legal, and reputational risks.
Internal controls and routine audits make ensuring that risks are appropriately controlled.

4. Financial Reporting: Unilever Pakistan compiles its financial reports in accordance with
generally accepted accounting principles. It gives shareholders, regulators, and other
stakeholder’s clear and accurate financial information. To ensure accuracy and
compliance, independent auditors independently review the company's financial accounts
on the outside.

Unilever Pakistan cherishes its shareholders and interacts with them through frequent
correspondence and gatherings. It offers frequent information on the performance, strategy, and
important developments of the organization. The ability to exercise one's rights and take part in
decision-making processes, such as casting a vote on important issues, is provided to
shareholders.
Compliance and Legal Framework: Unilever Pakistan complies with all applicable national laws,
rules, and standards of corporate governance. The business encourages staff members to report
any concerns about unethical activity through formal channels in order to promote an
environment of integrity. It keeps a solid legal foundation in place to guarantee legal compliance
and safeguard the interests of all stakeholders.

Unilever Pakistan seeks to encourage long-term sustainability, foster trust, and add value for its
shareholders, workers, customers, and the larger community by upholding sound corporate
governance principles.

Companies act 2017

In Pakistan, the Companies Act 2017 has measures that support and govern corporate
governance inside corporations. As it relates to corporate governance, the Act's main features are
as follows:

1. Board of Directors: The Act specifies the members and duties of the directors' committee.
It mandates that corporations have a minimum of three directors, one of whom must be a
Pakistani citizen. The Act also places a strong emphasis on the responsibility of directors
to act honestly, in good faith, and in the company's best interests.

2. Independent Directors: The concept of independent directors is introduced by the Act. It

states that some businesses, such as publicly traded enterprises and nonprofit
organizations, are required to have at least one-third independent directors. It is required
of independent directors to deliver unbiased judgment and support sound company
governance.

3. Corporate Governance: Companies must develop and uphold a code of conduct for
directors, officials, and employees in accordance with the Act. The code of conduct
outlines the moral requirements, accountability, and expected conduct of anyone
connected to the firm. It seeks to encourage responsibility, openness, and integrity inside
the company.
 4. Transparency and Disclosure: The Act places a strong emphasis on the value of
disclosure and transparency in corporate governance. Companies are required to keep
track of and disclose details including financial statements, annual reports, and related-
party transactions. To enhance accountability and transparency, the Act also requires the
appointment of auditors and frequent financial audits.

5. Rights of Shareholders: The Act acknowledges and defends Shareholder rights. It makes
sure that shareholders may get hold of crucial documents like financial statements,
meeting notices, and resolutions. Additionally, shareholders have the option to cast a
ballot on important issues like the election of directors and auditors.

6. Corporate Social Responsibility (CSR): The Act establishes the idea of corporate social
responsibility (CSR) and encourages businesses to engage in initiatives that benefit
society and the environment. It promotes businesses to create policies and projects that
support sustainable development, philanthropy, and community engagement, but it does
not impose any particular CSR activity.

7. Regulatory Oversight: In accordance with the 2017 Companies Act, the Securities and
Exchange Commission of Pakistan (SECP) is the regulatory body in charge of monitoring
and enforcing corporate governance norms. The SECP ensures adherence to corporate
governance standards by monitoring compliance, looking into infractions, and taking
appropriate action.

The Companies Act of 2017 offers a legal framework for corporate governance, but its
successful implementation depends on how committed businesses and their management are to
upholding moral principles and industry standards. Companies are urged to create strong
corporate governance frameworks that increase transparency, accountability, and stakeholder
trust rather than merely complying with the law.