Professional Documents
Culture Documents
A Project On Hul CSR
A Project On Hul CSR
Undertaken By HUL.
Submitted
by
Arjuman Ansari.
Eram Khan.
Sayeeda Khan.
Shazia Khan.
Shabnam Saboowala.
Sana Sheikh.
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Acknowledgement.
Apart from the efforts of us, the success of this project depends largely on the
encouragement and guidelines of many others. I take this opportunity to express
my gratitude to the people who have been instrumental in the successful
completion of this project.
I would like to show my greatest appreciation to Prof. Sameer Virani. I can’t say
thank you enough for his tremendous support and help. I feel motivated and
encouraged every time I attend his lecture. Without his encouragement and
guidance this project would not have materialized.
The guidance and support received from the company – Hindustan Unilever
Limited – who contributed and are contributing to this project, was vital for the
success of the project. I am grateful for their constant support and help.
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Certificate.
This is to certify that Eram Khan, Arjuman Ansari, Sayeeda Khan, Shazia Khan, Shabnam Saboowala
& Sana Shaikh ,BMS final year students of Rizvi College Of Arts, Science & Commerce have
completed their project under the guidance of Prof. Sameer Virani towards the partial fulfillment of
the award of TYBMS during the academic year – 2010 - 2011
The project work entitled “CSR & Corporate Governance Activities of HUL”
________________ _________________
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Declaration.
We hereby declare that the project work entitled “ Corporate Social Resposibility
& Corporate Governance Activities of HUL” submitted to the Rizvi College,is
record of the original work done by us under the guidance of Prof. Mr.Sameer
Virani, Faculty Member, Rizvi College Of Arts, Science & Comerce.
Place : Mumbai.
Date : 18/08/2010
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Introduction.
Hindustan Unilever Limited (HUL) (BSE: HUL) is India's largest fast moving
consumer goods company, touching the lives of two out of three Indians with over
20 distinct categories in home & personal care products and food & beverages.
They endow the company with a scale of combined volumes of about 4 million
tonnes and sales of over Rs. 13,000 crores. HUL is also one of the country's largest
exporters; it has been recognised as a Golden Super Star Trading House by the
Government of India.
HUL was formed in 1933 as Lever Brothers India Limited and came into being in
1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan
Vanaspati Mfg. Co. Ltd. and United Traders Ltd.. It is headquartered in Mumbai,
India and has an employee strength of over 15,000 employees and contributes for
indirect employment of over 52,000 people. The company was renamed in June
2007 to “Hindustan Unilever Limited”.
In 2007, Hindustan Unilever was rated as the most respected company in India for
the past 25 years by Businessworld, one of India’s leading business magazines. The
rating was based on a compilation of the magazines annual survey of India’s Most
Reputed Companies over the past 25 years. HUL is the market leader in Indian
consumer products with presence in over 20 consumer categories such as soaps,
tea, detergents and shampoos amongst others with over 700 million Indian
consumers using its products. It has over 35 brands. Sixteen of HUL’s brands
featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual
Survey (2008). According to Brand Equity, HUL has the largest number of brands
in the Most Trusted Brands List. It’s a company that has consistently had the
largest number of brands in the Top 50 and in the Top 10 (with 4 brands).
Hindustan Unilever's distribution covers over 1 million retails outlets across India
directly and its products are available in over 6.3 million outlets in India, i.e.,
nearly 80% of the retail outlets in India. It has 39 factories in the country. Two out
of three Indians use the company’s products and HUL products have the largest
consumer reach being available in over 80 per cent of consumer homes across
India.
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Our History.
In the summer of 1888, visitors to the Kolkata harbour noticed crates full of
Sunlight soap bars, embossed with the words "Made in England by Lever
Brothers". With it, began an era of marketing branded Fast Moving Consumer
Goods (FMCG).
Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and
Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the
market in 1937.
The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the
company had launched Red Label tea in the country. In 1912, Brooke Bond & Co.
India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through
an international acquisition. The erstwhile Lipton's links with India were forged in
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1898. Unilever acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited
was incorporated.
Pond's (India) Limited had been present in India since 1947. It joined the Unilever
fold through an international acquisition of Chesebrough Pond's USA in 1986.
Since the very early years, HUL has vigorously responded to the stimulus of
economic growth. The growth process has been accompanied by judicious
diversification, always in line with Indian opinions and aspirations.
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HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation
in 1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex
Sanitary Pads. HUL has also set up a subsidiary in Nepal, Unilever Nepal Limited
(UNL), and its factory represents the largest manufacturing investment in the
Himalayan kingdom. The UNL factory manufactures HUL's products like Soaps,
Detergents and Personal Products both for the domestic market and exports to
India.
The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on
the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired
Kothari General Foods, with significant interests in Instant Coffee. In 1993, it
acquired the Kissan business from the UB Group and the Dollops Icecream
business from Cadbury India.
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Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal
restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL
in 1998. The two companies had significant overlaps in Personal Products,
Speciality Chemicals and Exports businesses, besides a common distribution
system since 1993 for Personal Products. The two also had a common management
pool and a technology base. The amalgamation was done to ensure for the Group,
benefits from scale economies both in domestic and export markets and enable it to
fund investments required for aggressively building new categories.
In January 2000, in a historic step, the government decided to award 74 per cent
equity in Modern Foods to HUL, thereby beginning the divestment of government
equity in public sector undertakings (PSU) to private sector partners. HUL's entry
into Bread is a strategic extension of the company's wheat business. In 2002, HUL
acquired the government's remaining stake in Modern Foods.
In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of
the Amalgam Group of Companies, a leader in value added Marine Products
exports.
HUL launched a slew of new business initiatives in the early part of 2000’s. Project
Shakti was started in 2001. It is a rural initiative that targets small villages
populated by less than 5000 individuals. It is a unique win-win initiative that
catalyses rural affluence even as it benefits business.
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Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000
villages across 15 states and reaching to over 3 million homes.
In 2002, HUL made its foray into Ayurvedic health & beauty centre category with
the Ayush product range and Ayush Therapy Centres. Hindustan Unilever Network,
Direct to home business was launched in 2003 and this was followed by the launch
of ‘Pureit’ water purifier in 2004.
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Company Profile.
Founded 1933
Key people Harish Manwani (Chairman), Nitin Paranjpe (CEO and Managing Director)
Website www.hul.co.in
Present Stature.
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Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods
company, and estimates that two out of three Indians use its products. It has over
42 factories across India.
HUL is also one of the country's largest exporters; it has been recognised as a
Golden Super Star Trading House by the Government of India.
The Hindustan Unilever Research Centre (HURC) was set up in 1958, and now has
facilities in Mumbai and Bangalore. HURC and the Global Technology Centres in
India have over 200 highly qualified scientists and technologists, many with post-
doctoral experience acquired in the US and Europe.
HUL also renders services to the community, focusing on health & hygiene
education, empowerment of women, and water management. It is also involved in
education and rehabilitation of underprivileged children, care for the destitute and
HIV-positive, and rural development. HUL has also responded to national
calamities, for instance with relief and rehabilitation after the 2004 tsunami caused
devastation in South India.
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“A business that makes nothing but money is a poor kind of
business.”
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The same report gave some evidence of the different perceptions of what this
should mean from a number of different societies across the world. Definitions as
different as "CSR is about capacity building for sustainable livelihoods. It respects
cultural differences and finds the business opportunities in building the skills of
employees, the community and the government" from Ghana, through to "CSR is
about business giving back to society" from the Phillipines.
Traditionally in the United States, CSR has been defined much more in terms of a
philanphropic model. Companies make profits, unhindered except by fulfilling
their duty to pay taxes. Then they donate a certain share of the profits to charitable
causes. It is seen as tainting the act for the company to receive any benefit from the
giving.
The European model is much more focused on operating the core business in a
socially responsible way, complemented by investment in communities for solid
business case reasons. Personally, I believe this model is more sustainable because:
But as with any process based on the collective activities of communities of human
beings (as companies are) there is no "one size fits all". In different countries, there
will be different priorities, and values that will shape how business act. And even
the observations above are changing over time. The US has growing numbers of
people looking towards core business issues.
For instance, the CSR definition used by Business for Social Responsibility is:
"Operating a business in a manner that meets or exceeds the ethical, legal,
commercial and public expectations that society has of business.
On the other hand, the European Commission hedges its bets with two definitions
wrapped into one: "A concept whereby companies decide voluntarily to contribute
to a better society and a cleaner environment. A concept whereby companies
integrate social and environmental concerns in their business operations and in
their interaction with their stakeholders on a voluntary basis".
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CSR is about how companies manage the business processes to
produce an overall positive impact on society.
Take the following illustration:
When you review each of these, they broadly agree that the definition now focuses on the impact of
how you manage your core business. Some go further than others in prescribing how far companies go
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beyond managing their own impact into the terrain of acting specifically outside of that focus to make a
contribution to the achievement of broader societal goals. It is a key difference, when many business
leaders feel that their companies are ill equipped to pursue broaders societal goals, and activists argue
that companies have no democratic legitimacy to take such roles. That particular debate will continue.
The most important reason CSR is taking prominence in the corporate world is
because evidence suggests that companies that pursue CSR strategies are more
profitable than those who do not. Moreover, CSR has gained prominence because
the Internet and mass media, empowered by globalization, make it difficult for
companies to bury or hide detrimental social practices. Preserving and maintaining
a healthy company image is one reason for the prevalence of CSR.
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CSR ACTIVITIES.
Sales (2007-2008) = Rs.14000 crores (rounded off)
Net profit after tax = Rs.2000 crores (rounded off)
Community initiatives.
HUL believes that an organisation’s worth beyond its business, is captured by the
service it renders to the community. We focus on nutrition, health and hygiene
education, empowering livelihoods and eco-efficiency. We are committed to
responsible leadership by positively impacting India on her most challenging
issues.
Our Goal.
We seek to positively impact India on issues relevant to stakeholders and
communities.
Our Approach.
As a part of our voluntary initiatives, we will respond to natural disaster and
support relief and welfare measures for vulnerable sections etc.
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Social
Providing healthcare
Sanjivani Mobile Medical
Facility
HUL started Sanjivani – a Mobile Medical Service in the year 2003 to bring
effective medical care to villages surrounding our Doom Dooma factory in Assam.
The objective has been to meet basic medical needs of people living in the remote
villages in Assam through a charge-free mobile medical facility. Apart from basic
medical services, it also spreads awareness on issues such as hygiene, child
immunization, family planning etc.
The project covers a radius of 40 kilometers around the factory with two mobile
vans equipped with basic medical equipment and specialised team of one male
and one female doctor, two nurses, a medical attendant and drivers.
On an average, 400 Sanjivini medical camps are conducted every year in remote
villages surrounding our factory. The project is run in close co-ordination with the
local administration and the progress is reviewed every quarter.
The Sanjivani project has provided medical assistance to more than 1,43,364
patients since its inception and in 2007 alone in 344 camps more than 22,395
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patients were treated. In 2008 through 437 camps, 31,790 patients have been
treated.
The Project aims at providing, through a strategic alliance between HUL, ACC &
Habitat International, the following facilities to the People in a phased manner:
- Construction of 100 disaster proof houses for the purpose of rehabilitation;
- Construction and development of a Community Resource Centre for people
- Design, development and implementation of livelihood programmes aiming at
sustained and increased income for 300 families
- Capacity and capability building of villagers for village development
- Promoting the concept of Self-Help Groups to develop economically, ecologically and
viable plans and to mobilize finances for farming and non-farming activities
- Creating alternate livelihood opportunities in the areas of manufacturing of concrete
products, sale of hollow brick blocks, fly ash bricks, pavement blocks etc.
- Ensuring the involvement of people in non-farming activities and help create a
feasible rapport with fair, remunerative and competitive markets
- Assist in improving the living condition for at least 300 families
- Development of a model village with provisions for safe drinking water & put in
place a mechanism for water resource management, provisions of electricity supply,
clinical & sanitation facilities, etc.
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Tsunami, South India, 2006
HUL contributed over Rs. 100 million towards relief and rehabilitation of
tsunami affected families by the way of providing relief material, land and
construction of
facilities. The Company distributed nutritional and personal hygiene products
worth Rs. 50 million for immediate relief to the needy at the time that tsunami
had hit the region. Later, pursuant to a request from the Government of Tamil
Nadu on a more pressing need to provide housing to the affected families, HUL
donated 5.27 acres of land (market value on a conservative basis is Rs. 45
million) at Tondiarpet, Chennai, to the Government of Tamil Nadu for
rehabilitation.
The complex has 960 permanent houses spread over 5.27 acres of land donated by
HUL. Employees of HUL made a contribution of Rs. 5 million towards the
construction of the facilities in the complex.
On the day of the disaster, employees from our factories and offices in
Pondicherry, Tamil Nadu and Kerala had provided necessary relief to the
Tsunami-hit
people. The relief operations included distribution of bread and biscuits to over
500 families in Pondicherry, 12,000 cooked meals for families in Chennai,
Nagapattinam, Cuddalore and Andamans. Over 12,000 dry relief packs,
comprising of Company's dry rations and personal hygiene products were
distributed
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HUL has also supported the construction of a school building, playground, multi-
purpose community centre, crèche, health centre, underground reservoir, overhead
tank, community room and a village administration office. All the structures are
earthquake and cycloneresistant.
Greening Barriers:
Water Conservation and Harvesting
Shakti is HUL's rural initiative, which targets small villages with population of less
than 2000 people or less. It seeks to empower underprivileged rural women by
providing income-generating opportunities, health and hygiene education through
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the Shakti Vani programme, and creating access to relevant information through
the iShakti community portal.
In general, rural women in India are underprivileged and need a sustainable source
of income. NGOs, governmental bodies and other institutions have been working
to improve the status of rural women. Shakti is a pioneering effort in creating
livelihoods for rural women, organised in Self-Help Groups (SHGs), and
improving living standards in rural India. Shakti provides critically needed
additional income to these women and their families, by equipping and training
them to become an extended arm of the company's operation.
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The need for a program of this nature arose from the fact that diarrhoeal diseases
are a major cause of death in the world today. It is estimated that diarrhoea claims
the life of a child every 10 seconds and one third of these deaths are in India.
According to a study done by the London School of Hygiene and Tropical
Medicine, the simple practice of washing hands with soap and water can reduce
diarrhoea by as much as 47%. However, ignorance of such basic hygiene practices
leads to high mortality rates in rural India.
The Fair & Lovely Foundation is HUL's initiative which aims at economic
empowerment of women across India. It aims to achieve this through providing
information, resources, inputs and support in the areas of education, career and
enterprise. It specifically targets women from low-income groups in rural as well
as urban India. Fair & Lovely, as a brand, stands on the economic empowerment
platform and the Foundation is an extension of this promise. The Foundation has
renowned Indian women, from various walks of life, as its advisors. Among them
are educationists, NGO activists, physicians. The Foundation is implementing its
activities in association with state governments.
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Special Education &
Rehabilitation
Under the Happy Homes initiative, HUL supports special education and
rehabilitation of children with challenges.
Asha Daan:
The initiative began in 1976, when HUL supported Mother Teresa and the
Missionaries of Charity to set up Asha Daan, a home in Mumbai for abandoned,
challenged children, and the destitute.
The vulnerable
In 1976, HUL provided a 72,500-square feet plot to set up Asha Daan in the heart
of Mumbai city. This home is supported by Mother Teresa & the Missonaries of
Charity and cares for abandoned and challenged children, victims of HIV and the
destitute. HUL bears the capital and revenue expenses for maintenance,
upkeep and security of the premises. At any point of time, about 370 people
comprising boys, girls, men and women live at the Home and their needs for food,
clothing and medicines are catered to.
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The needs of the abandoned / challenged children are met through special classes
of basic skills, physiotherapy, etc. being taken care of by the Sisters of the Home.
Wherever necessary, corrective surgery is also arranged for in the city hospitals.
Mother Teresa's desire to open a ward for female HIV positive patients
was made possible by HUL in 1995. Since its inception, the AIDS Ward has taken
care of 375 patients. Till date, over 15,750 individuals have benefited from
Ashadaan
Ankur:
In 1993, HUL's Doom Dooma Plantation Division set up Ankur, a centre for
special education of challenged children. The centre takes care of children with
challenges, aged between 5 and 15 years. Ankur provides educational, vocational
and recreational activities to over 35 children with a range of challenges, including
sight or hearing impairment, polio related disabilities, cerebral palsy and severe
learning difficulties. Ankur focuses on
educational, vocational and recreational activities. The children are taught skills,
such as cookery, painting, embroidery, bamboo crafts, weaving, candle making,
stitching, etc. depending on their aptitudes.
Kappagam:
Encouraged by Ankur's success, Kappagam ("shelter"), the second centre for
special education of challenged children, was set up in 1998 on HUL Plantations in
South India. It has 17 children. The focus of Kappagam is the same as that of
Ankur.
Anbagam:
Yet another day care center, Anbagam ("shelter of love"), has been started in 2003
also in the South India Plantations. It takes care of 11 children. Besides medical
care and meals, they too are being taught skills such that they can become self-
reliant and elementary studies.
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Economic
Empowering livelihoods
HUL DHAN Foundation
As a part of our 75th year initiatives, we partnered with DHAN foundation – a
professionally managed development organization engaged in enhancing the
incomes of 75,000 women from economically poor households in South India.
The objectives of the DHAN programme are to:
- ensure a minimum increase of aggregate Rs. 150 million for the selected 75,000
poor women
- support the federations of self help groups for initiating suitable projects for
enhancing the incomes of the selected poor women based on their needs
This project leverages the core strength of the company in the areas of brand
building and activation to serve the communities in Vindhya Valley, MP and
Rudi, Gujarat. This not only protects the SHGs from the exploitation of
middlemen, but also empowers them in becoming effective marketeers and
successful
entrepreneurs.
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HUL provided the technical know-how, business insights and marketing skills to
manufacturers to help put in place an end-to-end system that takes care of all
aspects of the business operation. HUL also provided guidance for the execution of
all business plans and review mechanisms. Keys areas where HUL assisted is:
- upgrading rural SHG manufacturing units and training them
- developing packing design
- production processes
- setting up the logistics
- sales and distribution systems and
- advertising and promotion
Vindhya Valley's portfolio of spices, honey, lentil wafers, pickles, incense sticks
and others are manufactured in 12 locations with over 500 direct beneficiaries.
HUL was awarded the TERI CSR award in 2006 by the President of India in
recognition of its conceptualisation and efforts in the Vindhya Valley Project
Environmental
A responsible corporate
citizen
The Pollution Control Committee of D&NH contacted our Silvassa Unit to tackle a
critical problem. Drums full of toxic chemicals were dumped into the Daman
Ganga river by some chemical manufacturer. It was of paramount importance to
control the spread of these toxic chemicals before it assumed severe proportions.
The task was entrusted to a team headed by our Safety Officer from our Silvassa
Unit. They provided safety equipments and neutralising agents which helped to
defuse the situation in four hours. Their quick and timely support was appreciated
by the local administration.
Water conservation
Water scarcity is one of the biggest crisis facing India. Water management has been
a focus area for HUL, and has been made one of the key performance
indicators of all HUL factories. HUL is also committed to extending its efforts on
water management to the larger community, and has engaged in community
projects in water adjacent to our manufacturing sites. HUL's Khamgaon factory is
located in a dry and arid region of Maharashtra. Around 12 years ago the factory
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started a pilot project on 'Watershed Management' on a five hectare plot to prevent
soil degradation and conserve water. The efforts have resulted in the creation of a
green belt, which is now a veritable forest of about 6,300 trees
The annual income of the farmers in the vicinity of 5 check dams increased from
around an average of Rs. 36,000/- to approx. Rs. 85,000/- per annum per farmer.
This has been attributed to the availability of water in the wells during the Rabbi
season and also increase in the level of water in the wells during the Kharif season.
Hence, along with reaping a rabbi crop, the farmers have also been able to almost
double the yield of the Kharif crop. The initiative received appreciation at the
Johannesburg World Summit on Sustainable Development.
Silvassa
Karchond near Silvassa spans 1491 hectares and has a population of 3253
consisting of 478 families. The chief occupation of the area is farming for 4
months when water is available. After this the population migrates to Daman
Silvassa for labor/contract jobs. Thus, water conservation was a great necessity. In
association with Vanarai, an NGO, HUL's Silvassa unit embarked on a long-term
project of water harvesting, which aimed to dramatically change water availability,
taking it up to year-round availability from 4 months.
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Corporate governance
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Responsible corporate conduct is integral to the way we do our business. Our
actions are governed by our values
and principles, which are reinforced at all levels within the Company. We, at
Hindustan Unilever, are committed to
doing things the right way which means taking business decisions and acting in a
way that is ethical and is in compliance with the applicable legal requirements.
Our Code of Business Principles is an extension of our values and reflects
our continued commitment to ethical business practices and regulatory compliance.
We acknowledge our individual and collective responsibilities to manage our
business activities with integrity.
To succeed, we believe, requires the highest standards of corporate behavior
towards everyone we work
with, the communities we touch, and the environment on which we have an
impact.
This is our road to sustainable, profitable growth and creating long-term
value for our shareholders, our people, and our business partners. During last 75
years of the Company’s existence, the above principles have been the guiding force
for whatever we do and shall continue to be so in the coming years.
The Board of Directors of your Company are responsible for and committed
to sound principles of Corporate Governance in the Company. The Board plays a
critical role in overseeing how the management serves the short and long term
interests of shareholders and other stakeholders. This belief is reflected in our
governance practices, under which we strive to maintain an active, informed, and
independent Board. We keep our governance practices under continuous review
and benchmark ourselves to the best governed companies across the globe.
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The Board of Directors (the Board) is entrusted with the ultimate responsibility of
the management, general affairs,
direction and performance of the Company and has been vested with the requisite
powers, authorities and duties. The Management Committee of the Company is
headed by the Managing Director and Chief Executive Officer and has business/
functional heads as its members, which looks after management of the day-to-day
affairs of the Company.
Composition
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The Board consists of 10 Directors comprising four Executive Directors, one Non-
Executive Director and five Independent Directors. The Chairman of the Board is a
Non-Executive Director. The Board represents an optimal mix
of professionalism, knowledge and experience. The detailed profiles of the
members of the Board of Directors are
provided on page nos. 18 to 23 of the Annual Report.
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back and made it an integral principle of the business, demonstrated in the
words above.
Corporate Information
Hindustan Unilever Limited,
165/166, Backbay Reclamation
Registered Office Mumbai – 400 020
Tel : +91 – 22 – 39830000
Fax no. : +91 – 22 - 22026712
Dev Bajpai,
Email : hllshare.cmpt@unilever.com
Tel nos. : +91-22-398 32557 /
Executive Director (Legal) and Company
32358 / 32532 / 32312
Secretary
35
Dadar, Mumbai- 400 028
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HUL Policies
Unilever is committed to providing the very best not only to our customers but also
to the environment. Read up on some Unilever policies that aim to do just that.
Environment Policy
The aim of the Policy is to do all that is reasonably practicable to prevent or
minimise, encompassing all available knowledge and information, the risk of an
adverse environmental impact arising from processing of the product, its use or
foreseeable misuse.
Quality Policy
HUL’s Quality Policy describes the principles that everyone in Unilever follows,
wherever they are in the world, to ensure that they are recognised and trusted for
otheir integrity, the quality of their brands and products, and the high standards
they set.
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Safety & Health Policy
Hindustan Unilever Limited (HUL) supplies high quality goods and services to
meet the daily needs of consumers and customers.
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