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    Unilever Philippines Internal Control and Procedures

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    Niks Spears
    Unilever has extensive internal control and procedures to ensure efficient operations. Senior directors are responsible for understanding the importance of internal controls in managing risk. The Board of Directors sets up processes to examine and evaluate the effectiveness of internal controls on a daily basis. Key controls include financial controls to monitor budgets, inventory controls, maintenance controls, cost controls, inspections, audits, and use of information technology systems like SAP for operations and ERP for centralized database management.

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    Unilever Philippines Internal Control and Procedures

    Uploaded by

    Niks Spears
    395 views2 pages
    Unilever has extensive internal control and procedures to ensure efficient operations. Senior directors are responsible for understanding the importance of internal controls in managing risk. The Board of Directors sets up processes to examine and evaluate the effectiveness of internal controls on a daily basis. Key controls include financial controls to monitor budgets, inventory controls, maintenance controls, cost controls, inspections, audits, and use of information technology systems like SAP for operations and ERP for centralized database management.

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    UNILEVER PH

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    Unilever has extensive internal control and procedures to ensure efficient operations. Senior directors are responsible for understanding the importance of internal controls in managing risk. The Board of Directors sets up processes to examine and evaluate the effectiveness of internal controls on a daily basis. Key controls include financial controls to monitor budgets, inventory controls, maintenance controls, cost controls, inspections, audits, and use of information technology systems like SAP for operations and ERP for centralized database management.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    395 views2 pages

    Unilever Philippines Internal Control and Procedures

    Uploaded by

    Niks Spears
    Unilever has extensive internal control and procedures to ensure efficient operations. Senior directors are responsible for understanding the importance of internal controls in managing risk. The Board of Directors sets up processes to examine and evaluate the effectiveness of internal controls on a daily basis. Key controls include financial controls to monitor budgets, inventory controls, maintenance controls, cost controls, inspections, audits, and use of information technology systems like SAP for operations and ERP for centralized database management.

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    UNILEVER PHILIPPINES

    INTERNAL CONTROL AND PROCEDURES

    The Unilever control model is based on a set of Business Principles that


    establish efficiency standards. It is critical that senior directors in each section
    understand the importance of internal control because they are a critical component of
    massive risk factors. The Boards of Directors are responsible for setting up a process
    to examine the effectiveness of internal controls, as well as reviewing and evaluating
    their effectiveness. Unilever evaluates the effectiveness of its internal control system
    on a daily basis and monitors its risks on an ongoing basis.

    OPERATIONS CONTROLS:
    Operations Controls is the control in which you make certain that operations activities
    are carried out as they were planned. Operations Controls include following controls:
    Financial Control
    Budget Control
    Inventory Control
    Care Control
    Cost Control

    FINANCIAL CONTROL:
    Unilever's board of directors implemented fiscal controls in order to monitor public
    presentation and compare it to the achievement of fiscal goals. Unilever executives
    devise plans to line the hazard in a systematic way. They use a financial appraisal
    procedure to determine at what pace they are achieving their strategic fiscal goals.
    This procedure requires each concern unit's senior director to assess the effectiveness
    of fiscal controls.

    BUDGET CONTROL:
    Unilever's directors use budget control to track whether their income and outgoings
    are planned or not. They have a comprehensive budget system that is approved by all
    stakeholders and the board of directors, and it is regularly revised and restructured.
    The public presentations against Unilever's budget are tracked using a monthly and
    quarterly coverage model. The updated study is then distributed to the various
    stakeholders.

    INENTORY CONTROL:
    Unilever Philippines has a very well-organized system in place to manage their
    inventory. They produce goods in accordance with their customers' desires and
    gustatory sensations. They face a greater challenge in terms of supply concatenation
    and warehouse capacity on their own. At their various distribution centers, where they
    control the supply and demand of their merchandises, they had a very strong stock list
    control. Unilever also has a proper warehouse management system in place, with
    which they have capacitated their stock lists..

    MAINTENANCE CONTROL:
    Unilever Philippines has a proper care control system. The care director at Unilever
    separately monitors the equipment on day-to-day footing. After supervising, they
    create a study on the history of this monitoring for future scrutiny. Furthermore, they
    have a warning system qui vives on their equipment ‘s which makes their controlling
    system more effectual and efficient.

    COST CONTROL:
    Cost control is a method of controlling costs and determining whether they are in
    accordance with the budgeted costs. Cost control is critical at Unilever because it
    determines the company's stability. Unilever keeps costs under control in order to
    increase net income. They have a proper check and balance over the waste of natural
    resources in order to extinguish those natural resources that are inequitable for their
    production procedure.

    INSPECTION:
    In addition to a review system, Unilever employs inspectors. They inspect the quality
    of goods, machines and equipment, natural materials used in the production of goods,
    as well as the site and location where they conduct their research.

    AUDITED ACCOUNT AT UNILEVER:


    Unilever's internal audit performs an important function in ensuring the value of risk
    management and other related control operations to both operations management and
    the Board. Unilever has an independent audit commission that is entirely made up of
    Non-Executive Directors. This Committee meets with the Chief Auditor and external
    hearers on a regular basis.

    INFORMATION TECHNOLOGY:
    Unilever employs information engineering to provide directors with the information
    they require in order to make decisions. Unilever employs the SAP package to
    supervise and command its operations, which is now used globally. The ERP system
    generates one-year sustainability reports. SAP is collaborating more with business
    leaders and procedure leaders; it develops and supports business schemes. The SAP
    system values its clients, has run into them, has begun to listen to them, and has begun
    to take disciplinary actions in response to their demands.
    Mistakes can be controlled by SAP and corrected as soon as they are detected.

    SAP:
    SAP stands for Systems Application and Products in Data Processing. It was created
    as a criterion-based package by IBM applied scientists in the 1970s. Organizations
    rely on SAP to complete their tasks. This includes managing their daily operations,
    inbound and outbound logistics, funds, human resources, and so on.

    ERP:
    ERP stands for Enterprise Resource Planning. It is used by various organizations to
    centralize the database systems and maps of each section in a single system. Unilever
    employs ERP, which assists them in reducing losses and increasing net income.

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