Professional Documents
Culture Documents
Submitted by
MMS-FINANCE
Batch 2016-18
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CERTIFICATE
This project work is original and not submitted earlier for the award of any
degree diploma or associate ship of any other university/Institution.
Name:
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DECLARATION
Signature: Signature:
Date: Date:
Director Signature:
Date:
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ACKNOWLEDGEMENT
I take this opportunity to present my vote of thanks to all those guideposts who really acted as
lightening pillars to enlighten our way throughout this project that has led to successful and
satisfactory completion of this study.
I am grateful to my faculty mentor Dr. Medha Bakhshi for providing me this opportunity to
undertake this project & providing me with their support, valuable time & advice, whole
hearted guidance & co-operation.
Lastly, I am thankful to all those friends, who have been there for me whenever I needed
them for the guidance of my project.
I hope that I can build upon the experience and knowledge that I have gained and make a
valuable contribution towards the industry in coming future.
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Executive Summary
Corporate Social Responsibility (CSR) is a concept that suggests that it is the responsibility
of the corporations operating within society to contribute towards economic, social and
environmental development that creates positive impact on society at large. Although there is
no fixed definition, however the concept revolves around that fact the corporations need to
focus beyond earning just profits. The term became popular in the 1960s and now is
formidable part of business operations.
The following project contains detailed information about the company i.e. Hindustan
Unilever. Starting from the performance of the FMCG industry. Also, reason for selecting
HUL as research topic based on its performance. Some of the motivational and leadership
practices followed by the company makes it unique from others and they utilize to its
optimum level. Talking about the Leadership development at HUL is about building leaders
through a combination of disciplined routines and processes: a collective expertise, honed
through practice, in recognizing and developing talent. HUL is often referred to as a ‘CEO
Factory’ having contributed over 450 CEOs within the corporate world.
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INDEX
CHAPTE PARTICULARS Page
R NO No.
1 INTRODUCTION 7
2 COMPANY PROFILE 13
3 LITERATURE REVIEW 16
5 CSR ACTIVITIES 19
7 CONCLUSION 27
REFERENCES 28
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1. INTRODUCTION
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1.2 About CSR
CSR Defined
Most definitions describe CSR as a concept whereby companies integrate social and
environmental concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis. (CEC: Green Paper for Promoting a European Framework
for Corporate Social Responsibility)
The World Business Council for Sustainable Development (WBCSD) defines CSR as "The
continuing commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the work force and their families as well
as of the local community and society at large”.
Corporate social initiatives are major activities undertaken by a corporation to support social
causes and to fulfil commitments to corporate social responsibility. The conclusion would be
that there is no unanimity on the definition of what constitutes Corporate Social
Responsibility (CSR). However, what could be taken into account CSR is generally used to
describe business’s efforts to achieve sustainable outcomes by committing to good business
practices and standards.
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CSR Origin and Development in India
The concept of CSR has been imbibed in Indian society from the very beginning. Gandhi’s
philosophy of trusteeship is similar to CSR of the modern world; companies like TATA and
BIRLA have been imbibing the case for social good in their operations for decades long
before CSR become popular cause. The avid interest in community welfare among the Tata
Group dates to the 1860s when the company was founded by Jamshedji Tata. This explains
why nearly two-thirds of the equity of Tata Sons, the Tata Group's promoter company, is held
by philanthropic trusts, which have created a host of national institutions in science and
technology, medical research, social studies and the performing arts.
Dr.Kurien’s Amul-led Operation flood had pioneered inclusive growth through work with
dairy farmers at grass-root level, changing lives, enhancing income, empowering women and
at the same time reaping benefits to the business.
At Indian Oil, corporate social responsibility (CSR) has been the cornerstone of success right
from inception in the year 1964. The Corporation’s objectives in this key performance area
are enshrined in its Mission statement: "to help enrich the quality of life of the community
and preserve ecological balance and heritage through a strong environment conscience."
Before Corporate Social Responsibility found a place in corporate lexicon, it was already
textured into the Birla Group's value systems. As early as the 1940s, the founder G.D Birla
espoused the trusteeship concept of management. Simply stated, this entails that the wealth
that one generates, and holds is to be held as in a trust for our multiple stakeholders.
Regarding CSR, this means investing part of our profits beyond business, for the larger good
of society.
Over the years CSR has gained importance in India as companies are realizing the importance
of investing in CSR for achieving benefits of creating shareholder value, increased revenue
base, strategic branding, operational efficiency, better access to capital, human and
intellectual capital and lower business risks has emerged as an effective tool that synergizes
the efforts of Corporate and the social sector towards sustainable growth and development of
societal objectives at large.
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1.3 About the organization
Homecare Brands:
Active Wheel detergent
Cif Cream Cleaner
Comfort fabric softeners
Domex disinfectant/toilet cleaner
Rin detergents and bleach
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HUL Products
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1.4 Research Objectives
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2. COMPANY PROFILE
Promoters 67.20
FPIs 13.26
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2.4 Mission, Vision, Goals
Mission: To add Vitality to life. We meet every day needs for nutrition, hygiene and
personal care with brands that help people feel good and get more out of life.
Goals: To help more than billion people take action to improve their health and well-
being. & not only to respect human rights but to actively advance them across all areas of
the business.
In 2007, Hindustan Unilever was rated as the most respected company in India for the past
25 years by Business world, one of India's leading business magazines. The rating was based
on a compilation of the magazine's annual survey of India's most reputed companies over the
past 25 years.
In 2010, The Company was felicitated for receiving the highest number of patents in the year
2009 at Annual Intellectual Property Awards 2010.
In 2011, HUL was named the most innovative company in India by Forbes and ranked 6th in
the top 10 list of most innovative companies in the world.
In 2012, Hindustan Unilever emerged as the No. 1 employer of choice for B-School students
who will graduate in 2012. In addition, HUL also retained the 'Dream Employer' status for
the 3rd year running.
In 2014, HUL was ranked 47th in The Brand Trust Report published by Trust Research
Advisory. 36 HUL brands also featured in the list including Lux, Dove, Lipton, Vim, Kissan,
Bru, Rexona, Close Up, Clinic Plus, Pond's, Knorr and Pepsodent among others.
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2.6 Ongoing activities
The Corporation plans to focus its CSR initiatives and adopt a structured approach to the
following core areas of intervention.
Education:
This would include initiatives in the field of primary and secondary education, formal
and Non-formal literacy programmes, scholarships, digital literacy initiatives,
teachers training &skills up gradation, vocational training and other holistic education
initiatives for rural &urban youth.
Healthcare:
This would include initiatives to support affordable healthcare, including awareness
&preventive programmes for various communicable & non-communicable diseases,
public &community health initiatives for the underprivileged sections of society,
addressing malnutrition amongst women & children, provision of clean & safe
drinking water to communities etc.
Sanitation:
This would include partnerships with organizations having domain expertise in the
field of providing comprehensive sanitation programmes in schools, urban slums and
rural areas, involving behavioural change & awareness towards hygiene and
sanitation habit
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3. LITERATURE REVIEW
Teach for India: ‘One day all children will attain an excellent education’- a vision that
defines Teach for India, a Teach to Lead project that encourages young college graduates and
professionals to take up two years of full-time teaching sessions in under resourced schools.
To provide quality education to all, teach for India currently works in 5 main cities of India-
Mumbai, Delhi, Pune, Hyderabad and Chennai and is well equipped with some 700 Fellows
who are working towards eradicating the high inequality present in Indian education system.
National Wildlife Federation: NGO is working to preserve the rich biodiversity existing on
our earth today NWF is one of the largest non-profit organizations in the world working for
the said cause. Though its primary base locates at the USA, it has collaborations with several
other likewise teams and local organizations working on wildlife issues on grass root level.
The organization was founded by Jay Darling in 1936 and currently has 4 million active
members participating in it in various programs and initiatives.
Hopkins, 2004: The author focuses in his discussions on corporate social responsibility on
the largest companies, the transnational corporations (TNCs). Because of their often-immense
size, decisions about the location of investments, production and technology by TNCs not
only influence the distribution of factor endowments, notably of capital, skilled labour and
knowledge, between the countries in which they run their activities, but also assume crucial
importance for their political and social consequences.
Jayati Sarkar, 2015: The paper argues that notwithstanding the potential economic costs
that may accompany mandated CSR, the provisions of the new Act are designed thoughtfully
to balance the objectives of the corporation and its shareholders on the one hand and that of
the society and its stakeholders on the other.
Kang, 2008: Found evidence of spill over of reputational penalties between firms. Among
the studies on specific elements of CSR, the environmental dimension seems to be the most
frequently examined two factors that may explain the growing interest in specific dimensions
of CSR.
Olar, 2012: This paper examines the question of measurability of the impact of Corporate
Social Responsibility on Business Performance. It starts with describing newer trends of
measuring business performance, showing that one can observe a shift from the classical
short-term analysis with particular focus on indicators like shareholder value, revenue and
market share toward taking also into account soft indicators, such as employee and customer
satisfaction that contribute to the long-term success of a company.
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4. EXECUTION OF CSR ACTIVITIES BY HUL LTD
The Committee is responsible for the implementation of the CSR Policy of the Company.
The details of the Committee members are as follows:
Name Designation
Mr. O. P. Bhatt Chairman
Mr. Aditya Narayan Independent Director
Dr. SanjivMisra Independent Director
Ms. KalpanaMorparia Independent Director
Mr. Sanjiv Mehta Chief Executive Officer & Managing
Director
Mr. P. B. Balaji Executive Director, Finance & IT and Chief
Financial Officer
Formulating and recommending to the Board the CSR Policy and activities to be
undertaken by the Company
Recommending the amount of expenditure to be incurred on CSR activities of the
company
Reviewing the performance of the Company in area of CSR
Providing external and independent oversight and guidance on the environmental and
social impact of how the Company conducts its business
Monitoring CSR Policy of the Company from time to time
Monitoring the implementation of the CSR projects or programmes or activities
undertaken by the Company
4.3 Policy
HUL is committed to operate and grow its business in a socially responsible way. Our vision
is to grow our business whilst reducing the environmental impact of our operations and
increasing our positive social impact.
This policy outlines our Corporate Social Responsibility agenda. Our aim is to achieve
responsible growth and we will inspire to bring this to life by encouraging people to take
small everyday actions that will add up to make a big difference.
We have embraced Unilever Sustainable Living Plan (USLP) which contributes to activities
listed in the Schedule VII of Section 135 of the Companies Act, 2013. The USLP has three
global goals namely help more than a billion people take action to improve their health and
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wellbeing, reduce the environmental footprint of our products and enhance the livelihoods of
people as we grow our business.
Additionally, considering India as a water scarce region and the water availability is expected
to go down further, HUL has identified water as a key area of intervention. We will focus in
this area by creating capacities in conserving water through significant investments in
partnership with relevant stakeholders with the objective of water conservation.
We are committed to conducting our operations with integrity and respect, in the
interest of our stakeholders, and in line with our Code of Business Principles.
We believe growth and environmental sustainability need not be conflicting. Our
business model is designed to deliver sustainable growth. The inputs to the model are
our brands, our people and our operations. The outputs to the model are sustained
growth, lower environmental impact and positive social impact. The differentiator in
our business model is our USLP and the goal of sustainable living.
We collaborate and engage with different stakeholders including Governments,
NGOs, IGOs, Suppliers, Farmers, and Distributors to tackle the challenges faced by
the society.
We follow structured governance procedures to monitor CSR activities. Our CSR Policy is
governed by the Board of Directors of the Company. The Board has constituted a CSR
Committee comprising of an Independent Chair and most Independent Directors to monitor
the Policy and the programmes from time to time.
The activities described in Annexure an appended hereto are covered under Schedule VII (as
amended) of the Act that lists down permitted activities that constitute such activities. These
activities undertaken by the Company are not expected to lead to any additional surplus
beyond what would accrue to the Company in the course of normal operations.
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5. CSR ACTIVITIES
5.1 Education and Scholarships
Project- Ankur
Project Description- Ankur was set up in 1993 as a centre by your Company’s Plantations
Division for special education for differently-abled children at Doom Dooma in Assam.
Ankur provided educational, vocational and recreational activities to 33 differently-abled
children.
Project Description- The program aims to inspire, educate & equip the youth from modest
backgrounds with skills in English training, Office Dressing and Interviewing. The program
allows all the participants to take the course by simply giving a missed call. Deserving
individuals shall be put up for a more intensive face to face 3-week course, designed to suit
their needs.
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5.2 Healthcare
Project- Ashadaan
Project Description- 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, the HIV-positive and the destitute. Asha Daan has been set up on a
72,500-square feet plot belonging to HUL, in the heart of Mumbai city. Since the inception of
Asha Daan in 1976, HUL has been looking after the maintenance of the premises. At any
point of time, HUL takes care of over 400 infants, destitute men and women and HIV-
positive patients at Asha Daan. It is an ongoing and long term charitable activity. Our
aspiration is to provide shelter to the underprivileged members of the society; these include
abandoned, challenged children, the HIV positive and the destitute. While HUL funds the
annual maintenance of the premises, the Missionaries of Charity look after the inmates.
Project- Sanjivani
Project Description- HUL runs a free mobile medical service camp Sanjivani, near its Doom
Factory in Assam. The aim is to provide free mobile medical facility in the interior villages
of Assam. There are two mobile vans dedicated to the project, each vehicle has one male and
one female doctor, two nurses, a medical attendant (helper) and a driver. The vans are
equipped with basic kits such as diagnostic kit, blood pressure measuring unit, medicines and
a mobile stretcher. The Sanjivani team has provided medical assistance to nearly 2.5 lakh
patients since its inception in 2003 and covered more than four thousand camps till July 2013.
It is an ongoing and long term preventive healthcare activity. Our aspiration is to provide
healthcare in far and remote areas where basic medical facility is not available through our
mobile medical service camps and thereby help many the population over a period of time.
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5.3 Sanitation
Project- Water Conservation Project
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Project- Swachh Aadat Swachh Bharat
Eradicating hunger, poverty and malnutrition; promoting health care including preventive
health care and sanitation including contribution to the ‘Swachh Bharat Kosh’ set up by the
Central Government for the promotion of sanitation and making available safe drinking
water.
The project is in line with Government of India’s Swachh Bharat Abhiyan to promote good
health and hygiene practices and aims to achieve the Swachh Bharat goals by 2019. The goal
is to popularize the adoption of 3 clean habits:
(i) Wash hands before meals and after defecation,
(ii) Adopt safe drinking water practices and
(iii) Stop open defecation.
Haath, Munh Aur Bum is a well-timed shout-out to amplify the truth about unhygienic habits
that are prevalent in society. Turns out if left to the kids, hygiene advice can turn out to be
way more fun! Through this new “Haath, Munh Aur Bum” campaign, children turn into
agents of change and propagate the adoption of three Swachh Aadats. The adoption of the
three Swachh Aadats will go a long way in accomplishing the end goal of Swachh Bharat – a
clean and illness free nation. Unless we change and adopt Swachh Aadats, Swachh Bharat
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will not be a reality. Haath, Munh Aur Bum tells you how to do it. #Swachh Aadat Swachh
Bharat.
The campaign was launched by film actress Kajol Devgan, the newly appointed advocacy
ambassador for the initiative.
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5.4 Rural Development
Project- Shakti
Project Description- Project Shakti is HUL’s rural initiative, which targets small villages
with population of less than 2000 people or less.
HUL has trained thousands of women in villages across India to develop an entrepreneurial
mind-set and make them financially independent and empowered. These women
entrepreneurs (called Shakti Ammas) have been trained on basic tenets of distribution
management and familiarisation with the Company’s products. HUL has a team of rural sales
promoters (RSP’s) who coach and help Shakti Ammas in managing their business. This
includes help in business basics and troubleshooting as well as coaching in softer skills of
negotiation and communication which enable them to run their business effectively.
It started in 2001, Shakti has already been extended to about 80000 villages in 15 states.
In 2010, the Shakti programme was extended to include Shaktimaans who are typically the
husbands or other male family members of the Shakti Ammas. Shaktimaans complement the
Shakti Ammas. They sell HUL products on bicycles in surrounding villages, covering a
larger area than Shakti Ammas can cover on foot.
Shakti is pioneering effort in creating livelihoods for rural women, organised in Self Help
Groups (SHG), improving standards of living in rural India. Shakti provides critically needed
additional income to these women and their family, by equipping and training them to
become and extended arm of the company operations.
Andhra Pradesh, Karnataka, Punjab, Orrisa, Tamil Nadu, Maharashtra, Bihar, West Bengal.
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Project- Prabhat
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6. CSR FINANCIAL DETAILS OF HUL
7. CONCLUSION
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HUL, a giant in FMCG industry, is one of the most efficient corporations on the
global platform.
Its success is largely attributed to its corporate strategies and the management
decision.
It consistently makes sure to have technologies update and process complying all the
laws and regulations thus make sure that its ethical responsibilities are met with.
However, if we refer to CSR policies which are set out by the company, if the
company applies and implements those mentioned policies it will be on a line with the
generally accepted standards on CSR even though there is no specific one in
existence.
8. REFERENCES
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https://www.hul.co.in/sustainable-living/hindustan-unilever-foundation/
https://www.hul.co.in/Images/hul-brr-2015-16_tcm1255-483140_en.pdf
https://www.slideshare.net/RohanBharaj/corporate-social-responsibility-csr-at-hindustan-
unilever-hul
https://www.hul.co.in/Images/csr-policy-annexure-a_tcm1255-436264_en.pdf
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