Captain Planet

When Polman became CEO of the Anglo-Dutch multinational Unilever, in January 2009, it was his first time in the role of chief executive. That doesn't appear to have inhibited him: Since then he has transformed Unilever into one of the world's most innovative corporations. In addition to abolishing earnings guidance and quarterly reporting (on day one as CEO), he launched a plan to double corporate revenue by 2020 while simultaneously reducing the company's environmental impact by half. These are truly "audacious objectives," he acknowledges. "Nobody has ever made such a public commitment, and nobody has ever achieved anything like this." Polman believes that his initiatives build on the company's founding values: improving health and hygiene, and otherwise benefiting society. Though "a capitalist at heart," he thinks the system needs fine-tuning--in part through socially responsible investment. The Unilever Sustainable Living Plan not only sets ambitious targets but establishes detailed measures of progress toward them. Doing away with quarterly reporting has allowed the business to be more focused on the long term, and changes in the compensation system support that. In this edited interview with HBR's editor in chief, Polman talks about taking risks, attracting shareholders who support Unilever's strategy (hedge fund investors needn't apply), and why consumers are now in charge.

• Executives
• Consumer behavior
• Environmental sustainability
• Corporate social responsibility
• Earnings forecasting