THE IMPACT OF CONSUMER BOYCOTTS ON THE COMPANY'S FINANCIAL PERFORMANCE AND MANAGEMENT RECOVERY STRATEGY: A CASE STUDY OF PT UNILEVER INDONESIA TBK
DOI:
https://doi.org/10.58174/ijimes.v1i9.133Keywords:
Consumer Boycott, Financial Performance, Management Recovery Strategy.Abstract
This study analyzes the impact of consumer boycott movements on the financial performance of PT Unilever Indonesia Tbk and formulates comprehensive management recovery strategies in responding to the crisis. The boycott movement, triggered by consumer perceptions of the parent company's association with international geopolitical conflicts, has dramatically altered the competitive landscape of the fast-moving consumer goods (FMCG) industry over an extended period. The method used is a descriptive quantitative approach based on secondary data analysis from official corporate financial reports, industry market share data, and relevant academic literature. The results indicate that the boycott action had a significant negative impact on the company's financial performance, reflected in a 6.3% decline in net sales to Rp38.6 trillion in 2023, a 10.5% drop in net profit to Rp4.8 trillion, and a market share contraction from 38.5% to 34.9%. The management recovery strategy encompasses five functional dimensions marketing, corporate strategy, operations, finance, and crisis communication implemented simultaneously and in an integrated manner. The relevant legal framework, particularly Law No. 8 of 1999 on Consumer Protection, also serves as a normative foundation for formulating ethical and responsible management responses. This study concludes that restoring consumer trust requires consistent information transparency, brand communication innovation, and strategies adaptively responsive to socio-cultural dynamics.
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