Evaluation of Corporate Eco-Efficiency on Organization Performance: Case of Unilever Kenya Limited

Abstract

Eco-efficiency is meant to reduce ecological effects by de-coupling resource use and environmental consequences leading to diminishing environmental impact. Eco-efficiency philosophy came to the fore during the Rio Earth summit in 1992 as a business solution for a sustainable world. Emerging global phenomenon such as global warming, negative externalities, loss of diversity, diseases among others, have resulted into a coordinated global pressure to make countries to be more responsible to the environment. Developed and developing countries are now searching for an answer, to the continued devastating ecological effect, which allows the businesses and nations to achieve environmental protection coupled with economic growth. However industries all over the world operate as profit-maximizing entities which are expected to engage in activities that meet the financial responsibilities of the firm and the shareholders. Due to intense competition and business rivalry, little room exists for firms to contribution to society as a whole and specifically to the natural environment. The main objective of the study was to evaluate the corporate eco-efficiency on organization performance at Unilever Kenya Limited. Both quantitative and exploratory research design were employed while Regression analysis was used to establish the effects of waste management, greener energy and GHG emissions. The findings refute the claims by managers that eco-efficiency adoption is expensive and reduces competitiveness of business. The results showed a significant relationship between organization performance in Unilever Company and all the four eco-efficiency variables. The study concluded that adoption of eco-efficiency influence performance of Unilever Kenya Limited especially in improving efficiency, technology acquisition, reduced long run cost and sustainability. The study recommends that Unilever Company should integrate eco-efficiency into their business strategy and also involve the stakeholders.

Keywords: corporate eco-efficiency, organizational performance, Unilever Kenya Limited.