Professional Documents
Culture Documents
SUBMITTED TO
PROF. SHRUTI NAIK
YEAR 2012-2013
PROJECT GUIDE
Prof. Shruti Naik
CERTIFICATE
The information submitted in the project is true and original to the best of
our knowledge.
_______________
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PROJECT GUIDE
CO-ORDINATOR
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PRINCIPAL
ACKNOWLEGEMENT
I would like to take this opportunity to thank all those who have stood by my
side, encouraged me and helped me throughout my study.
I owe a lot to everyone who co-operated in making my thesis on
CORPORATE SOCIAL RESPONSIBILITY OF AMUL.
I, would like to express my gratitude towards my Prof. Shruti Naik, for
giving me an opportunity prepare a project on Corporate Social
Responsibility of Amul.
I take immense pleasure in thanking my thesis guide Prof. Shruti Naik.
Last but not the least I would like to thank my family and friends for their
continuous support and help.
DECLARATION
WHAT IS CSR ?
The paper further aimed to promote CSR practices, to ensure the credibility of
CSR claims as well as to provide coherence in public policy on CSR.
IMPORTANCE OF CSR?
What is the importance of corporate social responsibility? The answer lies in two things:
1) organizations understanding their role in developing a society and
2) awareness among business houses, corporate bodies, and the people. Versatile,
profitable, and dynamic businesses are the driving forces that build the economy of the
country. We must remember that the growth of a country purely depends on the growth
of the society and the people in the society.
BENEFITS OF CSR
Organizations of all sizes are rapidly discovering that Corporate Social
Responsibility (CSR) and sustainable business practices can foster improved green
programs and overall environmental stewardship.
Today, we are seeing increased awareness and active participation by business
professionals in the development of CSR policies. Organizations are increasingly more
involved in green initiatives by adopting sustainable processes and practices, adapting
products and services to the low-carbon economy and innovating in all areas their
business. The net positive on reducing waste, designing green buildings, implementing
green operations and maintenance plans all have continually proven to yield a
positive return on investment (ROI).
CSR has come to rely on a more complex set of factors than corporate
governance alone, and likewise also depends on sustainable development,
environmental impact and supply chain management.
The development of the new carbon trading markets, verified emission
reductions (VERs), also known as carbon offsets, and renewable energy credits
(RECs), it has become easier for organizations to create and measure direct ROI from
CSR. Likewise, CSR efforts have shown to yield measurable returns in waste reduction,
improved efficiency, diminished liabilities, improved community relations, and brand
recognition.
Through communicating clear and measurable sustainability objectives and the
implementation of practical and equally functional corporate governance mechanisms,
organizations are realizing that they can have a achieve ROI through their sustainability
efforts.
Integral strategies in ensuring substantive long-term results include:
ABOUT AMUL
Amul (Anand Milk Union Limited)
Type
Cooperative
Industry
Dairy
Founded
1946
Headquarters
Anand, Gujarat,
Key people
Revenue
India
Employees
Website
www.amul.com
Introduction
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. The
word Amul () is derived from the Sanskrit word Amulya(), meaning
invaluable. The co-operative is also sometimes referred to by the unofficial backronym:
Anand Milk Union Limited.
Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.03 million
milk producers in Gujarat.
Amul spurred India's White Revolution, which made the country the world's largest
producer of milk and milk products. In the process Amul became the largest food brand
in India and has also ventured into markets overseas.
Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (19732006), is credited with the success of Amul.
Achievements of GCMMF
15 District Unions
The Govt. of India has honoured Amul with the Best of all categories Rajiv
Gandhi National Quality Award.
GCMMF (AMUL) has the largest distribution network for any FMCG company. It has
nearly 50 sales offices spread all over the country, more than 5 000 wholesale dealers
and more than 700 000 retailers.
Amul became the world's largest vegetarian cheese and the largest pouched-milk
brand.
AMUL is also the largest exporter of dairy products in the country. AMUL is available
today in over 40 countries of the world. AMUL is exporting a wide variety of products
which include Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk,
Clarified Butter (Ghee) and Indigenous Sweets. The major markets are USA, West
Indies, and countries in Africa, the Gulf Region, and SAARC neighbours, Singapore,
The Philippines, Thailand, Japan and China, and others such as Mauritius, Australia,
Hong Kong and a few South African countries. Its bid to enter the Japanese market in
1994 did not succeed, but it plans to venture again.
In September 2007, Amul emerged as the leading Indian brand according to a survey by
Synovate to find out Asia's top 1000 Brands.
In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector
in The Brand Trust Report, published by Trust Research Advisory. rediff.com; "India's
top 20 brands: Amul is No. 1"
Products
Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti
Dahi, Yoghurt, Buttermilk, chocolate, ice cream, cream, shrikhand, paneer, gulab
jamuns, flavoured milk, basundi, Amul Pro brand and others. Amul PRO is a recently
launched brown beverage just like bournvita and horlicks offering whey protein, DHA
and essential nutrients to kids along with its chocolatty taste. In January 2006, Amul
launched India's first sports drink Stamina, which competes with Coca
Cola's Powerade and PepsiCo's Gatorade. Amul also offers mithaimate which
successfully competes with milkmaid by nestle by offering more fat % at lower price.
In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its
product offering in the milk products segment. Other Amul brands are Amul Kool, a low
calorie thirst quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee and
India's first sports drink Stamina.
Amul's Icecreams are made from milk fat and thus are icecreams in real sense of the
word, while many brands in India sell frozen desserts made from vegetable fat. Amul
cares for its consumers and tries to offer them the best products at best price.
The first step towards discharging the CSR is the business philosophy of the GCMMF. It
is two-fold: one, to serve the interests of milk producers and second, to provide quality
products to consumers as value for money. Evolution of an organisational system has
ensured that the corporate social responsibility towards the primary milk producers,
village and the ecological balance is fulfilled. The milk producers are paid for their milk
in accordance with market forces and realisation of value for their produce. Invariably
the price paid to the member-producers in Gujarat is higher by 15 per cent than the
national average.
CSR-orientation To Distributors & Retailers
The GCMMF has identified the distributors and retailers are its important link in its
vendor supply chain. Through surveys the GCMMF found that 90% of the distributors do
not get any opportunity of exposure to latest management practices. The GCMMF
realised that it was a corporate social responsibility to strengthen the core business
processes of its distributors so as to keep them in mainstream business and compete
with those with formal training in management. The GCMMF has developed and trained
all its distributors through Value-Mission-Strategy Workshops, competence building,
Amul Yatra, Amul Quality Circle meetings, computerisation, and electronic commerce
activities.
Competency Building Module of the GCMMF is meant to infuse professional selling
skills by making the distributors and their salesmen aware of latest sales management
tools and techniques; enhance their knowledge of products; positioning and
segmentation strategies for various products. Under Amul Yatra the distributors and
their salesmen are taken on a visit to Anand. During this visit they are shown dairy
plants, their upkeep, international standards of hygiene and quality; the practices
adopted for clean milk production, and above all the cooperative philosophy. Through
one to one talk with the farmers, the distributors and salesmen realise AMUL is a large
business of small farmers. The visit leaves an everlasting impression on their minds that
by selling AMUL products, they are discharging a social responsibility towards a large
number of poor farmers whose livelihood depends upon their skill and integrity. They
feel proud that they are participants in development of rural society and thus in nation
building.
Earnings Of GCMMF
Nurturing its primary members - the milk producers - is the first mission of the GCMMF.
Discharge of this responsibility is reflected in the manner in which the GCMMF conducts
its business and shares its earnings. The milk from the village co-operatives is
purchased at an interim price. So as to maximise the earnings of the milk producers the
GCMMF changes the product profile during the fiscal and directs its sales and
marketing activities towards those products that would bring in maximum returns. True!
Every business organisation follows the same principle. But the GCMMF follows it with
the central interest of the producers. During the fiscal, as the GCMMF finds that from its
earnings it is possible to pay more to the producers for milk, the final price is declared
higher than the interim price being paid. Before the GCMMF closes its financial
accounts the co-operatives are paid price difference, the amount between the interim
price and the final price. Thus profit of the GCMMF is very low. The net profit (PADT) of
the GCMMF during 2003-04 was Rs 7.31 crore against a turnover of Rs 2,947 crore, a
meagre 0.25%. Further out of the net profit of Rs 7.31 crore, Rs 4 crore was given as
share dividend to the co-operatives. To fulfill its corporate social responsibility towards
its milk producers and co-operatives the GCMMF works on razor thin profits and
retention of funds.
CSR-oriented To Staff
The GCMMF hires and trains people to take advantage over its competitors. It has
developed in-house modules for training and competence building to improve and up
grade of their knowledge; communication skills to understand the customer, be
responsive to customer requirements, and communicate clearly for trouble shooting of
problems. They are expected to be courteous, friendly, respectful, and considerate to
the customer. To improve the credibility and trustworthiness of the managers it is
important they perform consistently and accurately every time and at all times. The
structure of salary and perquisites is altogether different. The first and foremost the staff
must get satisfaction from the job they. They are recognised for their contribution
(Climate Survey) CSR-AMUL WAY
Tree Plantation
GREEN GUJARAT TREE PLANTATION CAMPAIGN BY MILK PRODUCERS OF DAIRY
COOPERATIVES
Amul Coops plant more than 311.98 lakhs trees
Milk Producer members of Gujarat Dairy Cooperatives- better known as AMUL have
been celebrating the nation's Independence Day in a novel manner by planting lakhs of
saplings across Gujarat and have taken up an ambitious plan to save the environment
by planting trees, making India green and thereby reducing the effects of global
warming. The milk producers of Gujarat Dairy Cooperatives are conducting mass tree
plantation drive every year on Independence Day for last five years. In last five years
(2007 to 2011) the milk producers have planted around 311.98 lakhs trees). The most
striking feature of these entire programmes was that it has been initiated by milk
producer members of the dairy cooperatives. The unique fact about the programme was
that the milk producer members took up the oath to protect tree saplings till it survives
and grows into tree.
Over the years, due to intensive agriculture and dairying various natural resources are
getting consumed at faster pace in Gujarat state of India. The state level apex body of
dairy farmers in Gujarat gave a serious thought in this direction and discovered a novel
idea for giving back to nature. The idea was "one member one tree" plantation on our
60th Independence day - 15th August 2007.To put this idea in to the practice a design
team constituting of representatives of member unions were formed. The team
accepted the idea by heart and immediately decided to spread it among farmer
members of village dairy cooperative societies. Then the idea was communicated to
farmer members and they all welcomed it and enthusiastically agreed to implement the
idea.
For smooth implementation of the idea, the design team chalked out the road map for
various activities. Execution teams were formed at district union level to give final shape
and put the plan in action. Village level coordinators were identified and they were
trained to streamline activity of tree plantation. Various awareness materials were
prepared. Through various communication media farmer members were made aware of
benefits of tree plantation and tree plantation activity schedule
The entire plantation activity was coordinated at all the three tiers of Anand pattern - at
village, district and state level dairy cooperatives. On 15th August, 2007, after the flag
hoisting ceremony, each member took an oath to plant saplings and ensure that they
grew in to trees. Then individually they planted sapling on their own at their identified
locations like their farm, near their home, on Farm bunds, etc. They have taken
necessary care to ensure that this sapling survives and they also reported regarding the
survival to village level coordinator and district milk unions after five months. In this way,
18.9 lakh trees were planted on 15th August 2007. This was just the beginning.
Henceforth, the Village Dairy Cooperative Societies of Gujarat as a mark of respect for
our nation decided to conduct such event on every Independence Day and accepted
15th August (Independence Day) as a "Green Revolution Day by Afforestation to
Protect Mother Earth from Pollution, Climate change and Global Warming".
But all this required immaculate planning and execution. An action plan of tree
plantation programme was drawn up months back in advance. After the identification of
the chief coordinator for each district milk union, the organization of a task force for the
programme was put in place. Roles and responsibilities were assigned to each member
and area of operation allocated. After preparing the overall action plan, each union
issued a circular to the Dairy Cooperative Societies regarding the programme and
arranged meetings with the societies covered. At the village level, coordinators were
identified in respect of the villages to be covered and the number of saplings required.
Along with logistical arrangements direct contact was established with different
agencies for receipt of saplings. Pointwise methodology for implementation of tree
plantation programme on such a mass scale is as following.
Point wise Methodology of execution of programme is as following:
common plot, school etc. After flag hoisting ceremony, the tree plantation activity
was executed by the producer members.
11. In many villages the milk producer members planted the trees after performing
the Puja (worship) of saplings before planting them.
12. To add fervour and enthusiasm in the programme at many places the Chairman,
Managing Director and Board of Directors of Member Unions participated in the
programme.
13. Next day after the programme on a post programme press note was prepared
giving details of the programme celebrations along with photographs. Similar
such notes were published in house magazines/ newsletters.
14. After the completion of the programme the MU's were asked to submit the report
on tree plantation activity.
15. MUs conducted survey after 5 months to find out the survival rate of sapling
under the programme.
First tree plantation programme (15th August, 2007) was carried out on "one member,
One tree" basis. Second tree plantation programme (15th August, 2008) in which
around 52.74 lakhs tree were planted was conducted on "one member three tree" basis.
In year 2009 and in year 2010, in mass tree plantation programme around 84.24 and
83.5 lakhs tree saplings were planted respectively. The programme was conducted
on "One member, Five tree" basis. Further, this year 2011 around 72.6 lakhs trees
were planted, the programme was carried out as per the same process and procedures
followed in last year.
Hence, in last five years, milk producers of GCMMF planted around 311.98 lakhs
tree saplings in 21 districts of Gujarat. By doing so, milk producers of Gujarat
Dairy Cooperatives have shown their concern, awareness and commitment for
betterment of environment.Yearwise details of tree plantation and survival of tree
saplings planted is as under.
Sr. No Year of tree plantation No. of trees planted (in lakhs) No. of trees Survived (in lakhs) Survival percentage
1
2007
18.90
11
58
2008
52.74
26
49
2009
84.24
38
45
2010
83.5
39
47
2011*
72.6
34
47
311.98
148.122
47
Total
*estimated (as survey for survival percentage of the saplings planted in year 2010 is ongoing)
Achievements:
This effort to provide green cover to the earth was also acknowledged when the state
level apex body of Gujarat Dairy Cooperatives - GCMMF received four successive
prestigious "SRISHTI's G-Cube Award"-2007, 2008, 2009 and 2010 for Good Green
Governance in the "Service Category".
Further, "Amul Green" movement has also been awarded by International Dairy
Federation for best environment initiative in the "sustainability category" during the 4th
Global Dairy Conference held at Salzburg Congress Center, Austria on 28th April, 2010.
It has been estimated that when one tree is cut, in monetary terms there is loss or Rs.
33 lakhs (Oxygen worth of Rs. 5.3 lakhs, Land Fertility of Rs. 6.4 lakhs, Rs. 10.5 lakh for
reduction of pollution of atmosphere and Rs. 5.3 lakh towards Flowers / Fruits and
habitation to birds - animals). But the benefits that accrue to mankind when a tree is
planted cannot be measured in money and is priceless.
The producer members of GCMMF have really set an example for all the cooperatives
and other institutions to turn India green in the era of Global warming and environmental
crisis.
When 3 million dairy farmers of Gujarat have planted more than 311.98 lakh trees in just
five years and are planning to plant more trees every year, they are doing an invaluable
- truly Amul - service to the society.
In an era of global warming, Amul is contributing its share in making Gujarat lush green.
In this way, the milk producers of Gujarat are ushering in a silent revolution of greening
Gujarat.