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Case Study : Hindustan Unilever HINDUSTAN UNILEVER LIMITED ‘THE BEST CORPORATE COMMUNICATOR’ Introduction Hindustan Unilever Limited

(HUL) is India's largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.10,000 crores. The mission that inspires HUL's over 15,000 employees is to "add vitality to life". With 35 Power Brands, HUL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds 51.55% of the equity. A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care brands in about 100 countries worldwide. Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life Our deep roots in local cultures and markets around the world give us our strong relationship with consumers and are the foundation for our future growth. We will bring our wealth of knowledge and international expertise to the service of local consumers - a truly multi-local multinational. Our long-term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively, and to a willingness to embrace new ideas and learn continuously. To succeed also requires, we believe, the highest standards of corporate behaviour 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, creating long-term value for our shareholders, our people, and our business partners. Over 100 years' link with India 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.

In one of the most visible and talked about events of India's corporate history.000 individual shareholders and financial institutions.The liberalisation of the Indian economy. In 1993. the company had launched Red Label tea in the country. started in 1991. deregulation permitted alliances. The erstwhile Lipton's links with India were forged in 1898. were merged with Brooke Bond. with significant interests in Instant Coffee.In 1931. it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India.As a measure of backward integration. Tea Estates and Doom Dooma. being the first among the foreign subsidiaries to do so. Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). Unilever acquired Lipton in 1972. always in line with Indian opinions and aspirations. enabling greater focus and ensuring synergy in the traditional Beverages business. which markets Huggies Diapers and Kotex Sanitary Pads. Subsequently in 1998. clearly marked an inflexion in HUL's and the Group's growth curve. In 1992. Brooke Bond & Co. and its factory represents the largest manufacturing investment in the Himalayan kingdom. 1993.Since the very early years. Then in July 1993. Lakme Limited. BBLIL merged with HUL. By the end of the year. two plantation companies of Unilever. followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). Nepal Lever Limited (NLL).55% equity in the company. The rest of the shareholding is distributed among about 380. HUL has vigorously responded to the stimulus of economic growth. the company entered into a strategic alliance with the Kwality Icecream Group families and in 1995 the Milkfood 100% Icecream marketing and distribution rights too were acquired. By 1903. Unilever now holds 51. acquisitions and mergers. to market Lakme's market-leading cosmetics and other appropriate products of both the companies. The two companies . HUL and yet another Tata company. without any constraints on production capacity. Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. Kimberly-Clark Lever Ltd.Pond's (India) Limited had been present in India since 1947. Unilever set up its first Indian subsidiary. Finally. 1996. acquisitions and alliances on the Foods and Beverages front. These three companies merged to form HUL in November 1956. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment. effective from April 1. Simultaneously. the erstwhile Brooke Bond acquired Kothari General Foods. HUL has also set up a subsidiary in Nepal. The growth process has been accompanied by judicious diversification. The NLL factory manufactures HUL's products like Soaps. Lakme Lever Limited. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. with effect from January 1. HUL offered 10% of its equity to the Indian public. India Limited was formed. The 1990s also witnessed a string of crucial mergers. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. formed a 50:50 joint venture. Detergents and Personal Products both for the domestic market and exports to India. Hindustan Vanaspati Manufacturing Company. the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL.HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994. and in 1977 Lipton Tea (India) Limited was incorporated. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Brooke Bond's presence in India dates back to 1900. In 1995. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. In 1912.

YEAR MILESTONES 1888 Sunlight soap introduced in India. 1913 Vim scouring powder introduced. HUL acquired the government's remaining stake in Modern Foods. The amalgamation was done to ensure for the Group. Chennai. besides a common distribution system since 1993 for Personal Products. In 2003. HUL's entry into Bread is a strategic extension of the company's wheat business. 1902 Pears soap introduced in India. 1918 Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs. a leader in value added Marine Products exports. Lever Brothers appoints agents in Mumbai. In 2002. Verschure Creameries. thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. and Hartogs. the government decided to award 74 per cent equity in Modern Foods to HUL. and Karachi. HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies. 1922 Rinso soap powder introduced. in a historic step. 1903 Brooke Bond Red Label tea launched. Kolkata. 1895 Lifebuoy soap launched. Jurgens. 1914 Vinolia soap launched in India.had significant overlaps in Personal Products. 1925 Lever Brothers gets full control of North West Soap Company. 1905 Lux flakes introduced. Speciality Chemicals and Exports businesses. The two also had a common management pool and a technology base. 1926 Hartogs registers Dalda Trademark. 1930 Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unie. 1924 Gibbs dental preparations launched. benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. 1931 . In January 2000.

1939 Garden Reach Factory purchased outright. Prakash Tandon takes over as the first Indian Chairman. Chennai. concentration on building up Dalda Vanaspati as a brand. 1955 65% of managers are Indians. Sewri factory site bought. . 1942 Unilever takes firm decision to "train Indians to take over junior and senior management positions instead of Europeans". 191 of the 205 managers are Indians. 1941 Agencies in Mumbai. 1934 Soap manufacture begins at Sewri factory in October. 1944 Reorganisation of the three companies with common management but separate marketing operations. company acquires own sales force. 1961 Mr. one of the first Indian covenanted managers. joins HVM. Kolkata and Karachi taken over.Hindustan Vanaspati Manufacturing Company registered on November 27. Prakash Tandon becomes first Indian Director. and Ghaziabad Vanaspati factories bought. with 10% Indian equity participation. Kolkata rented and expanded to produce Lever brands. 1951 Mr. 1947 Pond's Cold Cream launched. Prakash Tandon. 1958 Research Unit starts functioning at Mumbai Factory. 1933 Application made for setting up soap factory next to the Vanaspati factory at Sewri. Shamnagar. 1959 Surf launched. North West Soap Company's Garden Reach Factory. 1956 Three companies merge to form Hindustan Lever Limited. Lever Brothers India Limited incorporated on October 17. 1932 Vanaspati manufacture starts at Sewri. 1957 Unilever Special Committee approves research activity by Hindustan Lever. Tiruchy. 1943 Personal Products manufacture begins in India at Garden Reach Factory. 1937 Mr. 1935 United Traders incorporated on May 11 to market Personal Products.

opened. Sunsilk shampoo launched. G.plan approved. Clinic shampoo launched. Thomas. Ganguly takes over as Chairman from Mr. more new foods introduced. Unilever shareholding in the company comes down to 51%. . 1963 Head Office building at Backbay Reclamation. 1979 Sodium Tripolyphospate plant at Haldia commissioned. informal price control on soap begins. S. 1977 Jammu synthetic Detergents plant inaugurated. Indian shareholding increases to 18. 1982 Government allows 51% Unilever shareholding.1962 Formal Exports Department starts. V. Animal Feeds businesses transferred to Lipton. opens in Mumbai. G. T. statutory price control on Vanaspati and baby foods withdrawn. 1980 Dr. V. Taloja chemicals unit begins functioning. Thomas takes over as Chairman from Mr. Fair & Lovely skin cream launched. 1965 Signal toothpaste launched. 1984 Foods. informal price control on soaps withdrawn. Statutory price control on Vanaspati. 1968 Mr. Anik ghee launched.57%. 1973 Mr. Animal feeds plant at Ghaziabad. 1975 Ten-year modernisation plan for soaps and detergent plants. Prakash Tandon. 1974 Pilot plant for industrial chemicals at Taloja. Close-up toothpaste launched. Rajadhyaksha. 1978 Indian shareholding increases to 34%. 1969 Rin bar launched. 1964 Etah dairy set up. Indian shareholding increases to 14%. Mumbai. Rajadhyaksha takes over as Chairman from Mr. Nickel catalyst production begins. V. A. G. Jammu project work begins. Rajadhyaksha presents plan for diversification into chemicals to Unilever Special Committee . Indian shareholding increases to 15%. Liril marketed. Fine Chemicals Unit starts production. 1976 Construction work of Haldia chemicals complex begins. T. Taj Mahal tea launched. 1966 Lever's baby food. Bru coffee launched 1971 Mr. Fine Chemicals Unit commissioned at Andheri. 1967 Hindustan Lever Research Centre.

1988 Launch of Lipton Taaza tea. 1998 Group company. 2000 Mr. . 1996 Mr. HLL enters branded staples business with salt.1986 Agri-products unit at Hyderabad starts functioning . . Banga takes over as Chairman from Mr. Datta takes over as Chairman from Dr. Factory set up at Pune in 1995. 1993. M. Merger ultimately accomplished in December 1994. S. B..first range of hybrid seeds comes out. Pond's India Ltd. with HLL. S. HLL introduces branded atta. S.to market Huggies diapers and Kotex feminine care products. with effect from January 1. merges with HLL with effect from January 1. acquisition of the Amalgam Group 2005 Launch of "Pureit" water purifiers Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company. Dadiseth takes over as Chairman from Mr. Tata Oil Mills Company (TOMCO). 1992 HLL recognised by Government of India as Star Trading House in Exports. M. S. Khamgaon Soaps unit and Yavatmal Personal Products unit start production.Kimberley-Clark Lever Ltd. K. 1993 HLL's largest competitor. Launch of Vim bar...'s 50% equity in Lakme Lever Ltd.Lakme Lever Ltd. Ganguly. HLL acquires Kwality and Milkfood 100% brandnames and distribution assets. M.. HLL acquires Lakme brand. B. 1995 HLL and Indian cosmetics major. form 50:50 joint venture . 1990 Mr. Surf Excel launched. 2003 Launch of Hindustan Lever Network. 1998. Merger of Group company. 1994 HLL forms Nepal Lever Limited. the biggest such in Indian industry till that time. Dadiseth. K. Datta. who joins the Unilever Board. A. merges with the company with effect from April 1. 1991 Surf Ultra detergent launched. Kissan acquired from the UB Group. HLL and US-based Kimberley-Clark Corporation form 50:50 joint venture . 2002 HLL enters Ayurvedic health & beauty centre category with the Ayush range and Ayush Therapy Centres. factories and Lakme Ltd. new Regional Innovation Centres also come up. Brooke Bond Lipton India Limited. Lakme Ltd. the first public sector company to be disinvested by the Government of India. HLL recognised as Super Star Trading House. 1997 Unilever sets up International Research Laboratory in Bangalore. HLL acquires 74% stake in Modern Food Industries Ltd. HLL introduces Wall's.

Shakti aims to have 100. comprising about 4. and about 250 million rural consumers. coffee. and relief & rehabilitation after the Tsunami caused devastation in South India. It has already touched 70 million people in approximately 15000 villages of 8 states. Close-up. The rest of the shareholding is distributed among 380. Pond's. and creating access to relevant information through the iShakti community portal. HUL's distribution network.000 suppliers and associates. They are manufactured over 40 factories across India. and water management. HUL has traditionally been a company. The vision is to make a billion Indians feel safe and secure. reaching out to 100.000 villages and directly reaching to 150 million rural consumers. look good and get more out of life. personal products. HUL is creating micro-enterprise opportunities for rural women. HUL's brands . HUL is also running a rural health programme – Lifebuoy Swasthya Chetana. HUL is focusing on health & hygiene education. which incorporates latest technology in all its operations. Knorr-Annapurna.000 women entrepreneurs in its fold.touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The program now covers 15 states in India and has over 31.55% of the equity.000 villages. It is also involved in education and rehabilitation of special or underprivileged children. Shakti. The operations involve over 2." HUL meets everyday needs for nutrition.300 managers. Clinic. Pepsodent.000 crores. many with post-doctoral experience acquired in the US and Europe. Fair & Lovely. Surf Excel. Wheel. including over 1. and personal care with brands that help people feel good. ice cream and culinary products. Brooke Bond. women empowerment. It is a mission HUL shares with its parent company. HUL believes that an organisation's worth is also in the service it renders to the community. The Hindustan Unilever Research Centre (HLRC) was set up in 1958. most recent being the village built by HUL in earthquake affected Gujarat. Rin. covering 6. branded staples. HUL is also one of the country's largest exporters. and now has facilities in Mumbai and Bangalore. Unilever.000 employees.soaps. Kissan. hygiene. Shakti also includes health and hygiene education through the Shakti Vani Programme. detergents. is to "add vitality to life.000 Shakti entrepreneurs covering 500. By the end of 2010. The programme endeavours to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. care for the destitute and HIV-positive. Lux. it has been recognised as a Golden Super Star Trading House by the Government of India. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures. tea. . Lakme.like Lifebuoy. the company embarked on an ambitious programme. thereby improving their livelihood and the standard of living in rural communities. which holds 51. HLRC and the Global Technology Centres in India have over 200 highly qualified scientists and technologists. Through Shakti. Kwality Wall's – are household names across the country and span many categories .10. Sunsilk.3 million retail outlets reaching the entire urban population. and rural development. In 2001. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs. touching the lives of over 600 million people.000 redistribution stockists. The mission that inspires HUL's over 15.000 individual shareholders and financial institutions.

wherever necessary. There are teams dedicated to sourcing. is aimed at achieving this knitting. headed by the Chairman.000 employees.If Hindustan Unilever straddles the Indian corporate world. Engineering. Managing Director (Foods) and the Finance Director. Managing Director (HPC). planning and logistics. commercial. it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life. For managing sales operations. Its organisation structure. HUL is organised into two self-sufficient divisions Home & Personal Care & Foods . Quality Assurance. with regional branches in Delhi. HUL divides the country into four regions. and comprising 5 whole time Directors and 5 independent non-executive Directors. it must also retain the soul of a small company. For this. HUL and Group companies have about 16. Typically. Technology.supported by certain central functions and resources to leverage economies of scale wherever relevant. Kolkata. The fundamental principle determining the organisation structure is to infuse speed and flexibility in decision-making and implementation. managerial resources are dedicated exclusively to a business. with empowered managers across the company's nationwide operations. Legal & Secretarial. each category and each function . BusinessesHome & Personal Care• Personal Wash• Fabric Wash• Home Care• Oral Care• Skin . It is present in Home & Personal Care and Foods & Beverages categories. For example. each Division now has dedicated HR managers. Divisions Each division is self-sufficient with dedicated resources and assets in sales. The day to day operations are supervised by the National Management comprising the Vice Chairman. They with their respective Managing Director.is headed by a Vice President. which has and will continue to evolve with time. The commercial team of a Division is responsible for its supply chain management.Sales. they comprise Regional Sales Managers and Area Sales Managers. Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) company. Manufacturing . Headed by a Regional Manager. comprise that Division's Management Committee. assisted by dedicated field forces. The two divisions are further reorganised into categories. In Marketing. comprising Sales Officers and Territory Sales Incharges. But. Central functions HUL's Central Functions are Finance. Research. Board At the apex is the Board. with each factory peopled by teams of Production. HUL believes that while it leverages the scale of a large corporate. marketing. Information Technology. Human Resources. including 1200 managers. and Corporate Affairs. Their services are shared across the company. Chennai and Mumbai. and manufacturing. Each Division has a nationwide manufacturing base. Commercial. Commercial and Personnel Managers. each category has a Marketing Manager who heads a team of Brand Managers dedicated to each or a group of brands.

Central and Eastern Europe and Turkey before moving to Vice President. he was appointed President and Chief Executive Officer of the HPC . Manwani joined the Board of HUL in 1995. Home and Personal Care for the Africa Business Group. marketing and business administration and joined Unilever SA in 1978. in May 2000. Whilst in this position Mr. Unilever South Africa. Mr. Manwani joined HUL in 1976. he held regional responsibility as the Category Leader for Personal Products for the then Central Asia and Middle East (CAME) Business Group. which was followed by a spell as Marketing Director. Mr. Following several Sales and Marketing assignments.Care• Hair Care• Deodorants & Talcs• Colour Cosmetics Foods• Tea• Coffee • Branded Staples• Culinary Products• Ice Creams• Modern Foods rangesNew Ventures• Hindustan Unilever Network• Ayush ayurvedic products & services• Sangam• Pureit water purifiersExports• HPC• Beverages• Marine Products• Rice• Castor Mr. responsible for the Personal Products business. In April 2005. Mr.Marketing.North America Business Group. Mr. the Consumer Goods Council of South Africa and was a member of Presidential Big Business working group Prior to assuming responsibilities as the Chief Executive Officer (CEO) of Hindustan Unilever Limited. he was elevated to the Unilever Executive as President – Asia & Africa. Baillie is also the Group Vice President responsible for Unilever’s business in South Asia. Manwani then moved to the UK as Senior Vice President for the Global Hair Care and Oral Care Categories and in early 2001 was appointed President of the Home & Personal Care (HPC) . he took up the position of Sales Director. Baillie served on several external Boards including the Advertising Standards Authority. On his return to South Africa in late 1988. Baillie moved to London in 1994 to Personal Products Co-ordination where he became the Regional Liaison Member for Africa. Mr. Pakistan and Bangladesh. Manwani has attended the Advanced Management Programme (AMP) at Harvard Business School. Baillie was Group Vice President and Head of Unilever AMET (Africa. In addition. Middle East and Turkey). Baillie was appointed Managing Director Lever Pond’s South Africa in 1997 and National Manager. culminating in a secondment to Lever Rexona in Australia in 1987.Latin America Business Group In 2004.Harish ManwaniChairman A distinguished alumnus in statistics & economics and MBA from Mumbai University. he became Divisional Vice President . Sundaram . Baillie graduated from the University of Natal with majors in business finance. Mr. which includes Sri Lanka. D. Mr. Mr. Mr. Mr. Middle East.Douglas BaillieCEO and Managing Director Douglas Baillie (50) Born and educated in Zimbabwe. His career over the years has spanned various sales and marketing positions.

Paranjpe worked as Area Sales Manager – Detergents and then Product Manager – Detergents. Nitin Paranjpe Exectuive Director Mr.Narayan Director Mr. Kakkar joined the Company in June 1984 and has worked in various Sales and Marketing assignments. Paranjpe is the Executive Director for the Home & Personal Care business. During 2001. Sanjiv was appointed as the Executive Director Sales and Customer Development in May 2007.He was seconded to Unilever. he became the Category Head – Fabric Wash & Regional Brand Director (Asia) for some Laundry and Household Cleaning (HHC) Brands.Finance & IT Director Mr. Sanjiv Kakkar is BA (Economics) and PGDM from IIM Ahmedabad with 23 years work experience. He is also the Chairman of ICI India Research & Technology Centre. Commercial Manager and Treasurer. he became the Branch Manager. Mr. A. Mr. Chennai and in February 1999 was appointed a member of the Project Millennium team. North Africa and the Middle East countries. Narayan is the Managing Director and CEO of ICI India Limited. In 2000. Sundaram is post-graduate from Madras University and a Fellow of the Institute of Cost and Works Accountants of India (FICWA). Narayan joined the Board as Independent Non-Executive Director in 2001. Personal Products and Oral & Hair Care He has also had key stints as Category Head of Oral and General Manager – Sales & Customer Management of Personal Products. London and was involved in a review of the Organisation Structure. Sanjiv Kakkar Director Mr. He was appointed Vice President – Oral & Hair Care in May 2004. In his early years in the Company. He joined Hindustan Unilever in 1975 as a Management Trainee. IT and business strategies for Unilever companies in the Indian sub-continent. he moved to Unilever. London. he was Assistant to the Unilever Chairman & Executive Committee in London. He became the Finance Director of the erstwhile Brooke Bond Lipton India Limited in March 1994. On his return to India in 2002. Mr. .Foods and joined the Management Committee on 1st January 2007. Mr. Mr. Mr. Effective March 2006 Mr. Kakkar was appointed as Executive Director . Nitin Paranjpe after obtaining a degree in BE (Mech) and MBA in Marketing (JBIMS) from Mumbai joined the Company as a Management Trainee in 1987. Central Asia and Middle East Group with responsibility for Finance. he became Vice President – Home Care (Laundry & HHC) India responsible for the top and bottom-line of the Homecare business. In April 1996. In March 2006. In 2004. He returned to India in May 1999 as Finance & IT Director of HUL. He has worked in various capacities as Corporate Accountant. A. He was again seconded to Unilever in August 1996 as Senior Vice President–Finance. His marketing experience spans across categories including Beverages.as Commercial Officer for Africa and Middle East Group between 1990 and 1993 and on return was the Financial Member of the TOMCO Integration team from 1993 to 1994. D.

This reputation is an asset. It must have practical value in our day-to-day business and each one of us must follow these principles in the spirit as well as the letter. He was Chairman and Managing Director of the erstwhile Pond's (India) Ltd. our business partners and the world in which we live. Our first priority is to be a successful business and that means investing for growth and balancing short-term and long-term interests. Parekh Director Mr. Parekh has held senior positions in Grindlays and Chase Manhattan. The general principles contained in this Code set out those standards. D. We want this Code to be more than a collection of high-sounding statements. integrity and openness. S. K. More detailed guidance tailored to the needs of different countries and companies will build on these principles as appropriate. but will not include any standards less rigorous than those contained in this Code. S. EmployeesUnilever is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of our company. We will not use any form of forced.V. Code of Business Principles Standard of Conduct We conduct our operations with honesty. employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed. He is the Executive Chairman of Housing Development Finance Corporation. To succeed requires the highest standards of behaviour from all of us. just as real as our people and brands.Obeying the Law Unilever companies and employees are required to comply with the laws and regulations of the countries in which we operate. Narayanan Director Mr. Narayanan is a post-graduate from Madras University. D. He is now Chairman of the Academy of Management Excellence. and with respect for the human rights and interests of our employees. We are committed to working with employees to develop and enhance each individual's skills . Mr. Parekh holds a FCA degree from England & Wales. It also means caring about our consumers. Mr. We will recruit. Prahalad Code of Business Principles Unilever has earned a reputation for conducting its business with integrity and with respect for the interests of those our activities can affect. employees and shareholders. compulsory or child labour. He joined the Board as Independent Non-Executive Director in 1987. We are committed to safe and healthy working conditions for all employees. C. We shall similarly respect the legitimate interests of those with whom we have relationships. V. Parekh joined the Board as Independent Non-Executive Director in 1997.

and capabilities. or offer of. Community Involvement Unilever strives to be a trusted corporate citizen and.Unilever neither supports political parties nor contributes to the funds of groups whose activities are calculated to promote party interests. whether directly or indirectly. financial situation and performance to all shareholders. We will provide timely.We will maintain good communications with employees through company based information and consultation procedures. bribes or other improper advantages for business or financial gain. applying rigorous standards of product safety. We respect the dignity of the individual and the right of employees to freedom of association. No employee may offer. in the development of proposed legislation and other regulations which may affect legitimate business interests. regular and reliable information on our activities. fund or asset will be established or maintained. and which are safe for their intended use.Business Partners Unilever is committed to establishing mutually beneficial relations with our suppliers.Public Activities Unilever companies are encouraged to promote and defend their legitimate business interests.Unilever accounting records and supporting documents must accurately describe and reflect the nature of the underlying transactions. or may be construed as being. Products and services will be accurately and properly labelled. give or receive any gift or payment which is.Unilever will co-operate with governments and other organisations. customers and business partners. Unilever companies and employees will conduct their operations in accordance with the principles of fair competition and all applicable regulations. both directly and through bodies such as trade associations. as an integral part of society. We will work on the basis of sound science. advertised and communicated.The Environment Unilever is committed to making continuous improvements in the management of our environmental impact and to the longer-term goal of developing a sustainable business. increase understanding of environmental issues and disseminate good practice. In our business dealings we expect our partners to adhere to business principles consistent with our own. .Business Integrity Unilever does not give or receive. CompetitionUnilever believes in vigorous yet fair competition and supports the development of appropriate competition laws. structure. No undisclosed or unrecorded account. Any demand for.InnovationIn our scientific innovation to meet consumer needs we will respect the concerns of our consumers and of society.Unilever will work in partnership with others to promote environmental care.ShareholdersUnilever will conduct its operations in accordance with internationally accepted principles of good corporate governance. a bribe. ConsumersUnilever is committed to providing branded products and services which consistently offer value in terms of price and quality. to fulfill our responsibilities to the societies and communities in which we operate. a bribe must be rejected immediately and reported to management.

Compliance with the Code is subject to review by the Board supported by the Audit Committee of the Board and the Corporate Risk Committee.Conflicts of Interests All Unilever employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. the Company is committed to exhibit the highest standards of corporate behaviour towards its consumers. They are responsible for implementing these principles. The Unilever Board is responsible for ensuring these principles are communicated to.The company is committed to making its products environmentally acceptable. the risk of an adverse environmental impact arising from processing of the product. The Board of Unilever means the Directors of Unilever N. all employees. the societies and the world in which we live.The aim of the Policy is to do all that is reasonably practicable to prevent or minimise. The Policy applies to development of a process.Assurance of compliance is given and monitored each year. on a scientifically established basis. or to that of senior management.Provision has been made for employees to be able to report in confidence and no employee will suffer as a consequence of doing so. while fulfilling consumers' requirements for excellent quality. from research to full-scale operation. In this Code the expressions 'Unilever' and 'Unilever companies' are used for convenience and mean the Unilever Group of companies comprising Unilever N. its use or foreseeable misuse. The Board of Unilever will not criticise management for any loss of business resulting from adherence to these principles and other mandatory policies and instructions. any breach or suspected breach of these principles.This Policy document reflects the continuing commitment of the Board for sound Environment Management of its operations. Unilever PLC and their respective subsidiary companies. performance and safety. Environment Policy Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the daily needs of consumers and industry. product and services.. manufacturing. In doing so. employees. if necessary through more detailed guidance tailored to local needs. . The Board of Unilever expects employees to bring to their attention. encompassing all available knowledge and information.Unilever employees must not seek gain for themselves or others through misuse of their positions. Any breaches of the Code must be reported in accordance with the procedures specified by the Joint Secretaries.V. research & innovation centres and offices. Day-to-day responsibility is delegated to the senior management of the regions and operating companies. sales and distribution.The company recognises its joint responsibility with the Government and the Public to protect environment and is committed to regulate all its activities so as to follow best practicable means for minimising adverse environmental impact arising out of its operations.V. Compliance – Monitoring – Reporting Compliance with these principles is an essential element in our business success. and Unilever PLC. and understood and observed by. It is applicable to all company operations covering its plantations.

conserve Energy and explore opportunities for reuse and recycle. Management at all levels.. through the nominated environmental coordinator will: · Ensure implementation of HUL Policy on environment and compliance with Unilever and HUL environmental standards and the standards stipulated under relevant national / local legislation. jointly with employees. introduce and maintain environmental management systems across the company to meet the company standards as well as statutory requirements for environment. · Establish appropriate management systems for environment management and ensure regular . HUL's aims are to: · Ensure safety of its products and operations for the environment by using standards of environmental safety. · Involve all employees in the implementation of this Policy and provide appropriate training.The Environment Policy Hindustan Unilever Ltd. · Encourage development of inherently safer and cleaner manufacturing processes to further raise the standards of environment performance. · Reduce Waste. The Management Committee will: · Set mandatory standards and establish environmental improvement objectives and targets for HUL as a whole and for individual units.Responsibilities Corporate The Board and the Management Committee of HUL is committed to conduct the company operations in an environmentally sound manner.Accordingly.We will achieve this through an Integrated Environment Management approach. · Nominate:. · Assess environmental impact of all its activities and set annual improvement objectives and targets and review these to ensure that these are being met at the individual unit and corporate levels.HUL environmental coordinator. · Work in partnership with external bodies and Government agencies to promote environmental care. is responsible and will be held accountable for company's environmental performance. Provide for dissemination of information to employees on environmental objectives and performance through suitable communication networks. supported by Management Commitment as the prime driver. · Assess environmental impact of HUL operations and establish strategies for sound environment management and key implementation steps. · Review environment performance when visiting units and recognise exemplary performance. (HUL) is committed to meeting the needs of customers and consumers in an environmentally sound manner. Verify compliance with these standards through regular auditing. When believed to be appropriate.A senior line manager responsible for environmental performance at the individual HUL site. and ensure these are included in the annual operating plans. · Develop.The Vision Our vision is to continue to be an environmentally responsible organisation making continuous improvements in the management of the environmental impact of our operations. which focuses on People. through continuous improvement in environmental performance in all our activities. · Formally review environment performance of the company once every quarter. apply more stringent criteria than those required by law. which are scientifically sustainable and commonly acceptable.The Management Committee.This document defines the aims and scope of the Policy as well as responsibilities for the achievement of the objectives laid down. increase understanding of environmental issues and disseminate good practice. · Encourage suppliers and co-packers to develop and employ environmentally superior processes and ingredients and co-operate with other members of the supply chain to improve overall environmental performance. Technology and Facilities.

wherever possible. · Ensure formal environmental risk assessment to identify associated environmental aspects and take appropriate steps to control risks at acceptable levels. pre-commissioning audits and adherence to design codes. the Unit Head will: · Designate a unit environment coordinator who will be responsible for co-ordinating environmental activities at unit. with appropriate industry and Government bodies advising on environmental legislation and interact with national and local authorities concerned with protection of environment. safety committees. · Agree with the Management Committee Member responsible for the unit. risk assessment. and regularly interact with Government authorities concerned for protection of environment. Concerned line managers / heads of departments are responsible for environmental performance at department levels. · Establish systems for appropriate training in implementation of Environment Management Systems at work. Findings of such exercises should be implemented prior to commencement of the activity. · Sustain a high degree of environmental awareness through regular promotional campaigns and employee participation through training. · Ensure dissemination of relevant information on environment within the unit and to outside bodies. collating environmental statistics and providing / arranging for expert advice. · Report environmental statistics to HUL Corporate Safety & Environment Group on a monthly basis.In order to fulfill the requirements of the Environment Policy at each site. the heads of these units . · Ensure periodic audits to verify compliance with environment management systems and personally carry out sample environment audits to check efficacy of the systems. · Manage change in People. · Arrange for expert advice on all aspects of environment management. · Provide appropriate training to all employees. who will ensure implementation of HUL Policy on environment at unit level. · Regularly review environment performance of the unit against set objectives and targets and strive for continual improvement.Research and Innovation Centres Since most new products and processes are developed in these Units. · Ensure that all new operations are subjected to a systematic and formal analysis to assess environmental impact.auditing to verify compliance. emergency drills etc.Individual UnitsThe overall responsibility for environment management at each unit will rest with the Unit Head. · Ensure that all employees are made aware of individual and collective responsibilities towards environment. Technology and Facilities through a planned approach based on training. · Ensure that the unit complies with Unilever and HUL mandatory standards and the relevant national and state regulations with respect to environment. In addition to the Unit Head's responsibilities outlined above. · Participate. specific environmental improvement objectives and targets for the unit and ensure that these are incorporated in the annual objectives of the concerned managers and officers and are reviewed periodically. · Maintain appropriate emergency procedures consistent with available technologies to prevent / control environmental incidents. certain additional responsibilities devolve on them to ensure implementation of the Environment Policy of the company.

raw material and finished product handling. principles. and offer superior quality products and services that are appropriate to the various price points in the market as well as to our commitment to building shareholder value. employees.The company will maintain an open communication channel with its consumers and customers and will carefully monitor the feedback to continuously improve its products and services and set quality standards to fulfill them. · Ensure that treatment techniques are developed for any wastes generated as a result of the new product/process and is incorporated into the process specifications Quality Policy Hindustan Unilever Limited considers quality as one of the principal strategic objectives to guarantee its growth and leadership in the markets in which it operates. key suppliers and service providers and by entering into alliances with them. innovation and quality management across our businesses.The company is committed to respond creatively and competitively to the changing needs and aspirations of our consumers through relentless pursuit of technological excellence. products. It will institute systems and measures to monitor compliance in order to meet its responsibilities to consumers.The company delegates authority and responsibility for dissemination and implementation of this policy to each Business and Unit Head. In doing so. transport and storage. required actions and scope of the policy application as well as the responsibility for . This policy is applicable to production from its own facilities as well as to production that is outsourced. sales and distribution. Safety and Health Policy Hindustan Unilever Limited (HUL) supplies high quality goods and services to meet the daily needs of consumers and customers. which include manufacturing.The company is committed to fulfill its legal and statutory obligations and international standards of product safety and hygiene and will not knowingly sell product that is harmful to consumers or their belongings. the Company recognises its responsibility to ensure safety and protection of health of its employees.This Policy document defines the vision. aim. contractors and visitors in all its operating sites. to jointly improve the quality of its products and services. research laboratories and offices during work and work related travel.The company is committed to extend its quality standards to its contract manufacturers.The company recognises that its employees are the primary source of success in its operations and is committed to training and providing them the necessary tools and techniques as well as empowering them to ensure broad base compliance of this policy in the organisation at all levels. the societies and the environment in which we operate.will: · Ensure that a formal and systematic risk assessment exercise is undertaken during the process/product development stage with specific reference to environmental impact.The company will periodically review this quality policy for its effectiveness and consistency with business objectives. the Company is committed to exhibit the highest standards of corporate behavior towards its consumers. · Transfer technology to the pilot plant and main production through a properly documented process specification which will clearly define environmental impact and risks associated with processes. Towards this.

supported by demonstrated leadership and employee commitment at all levels as the prime drivers for ensuring a safe and healthy work environment. when and to whom is this Policy applicable).Our Vision Our vision is to be an injury free organisation. using. business related get-togethers. annual sports etc. which covers: a) Safety Principles b) Success Criteria c) Illustrative KPIThis document will form the basis for the concerned Line / Organisations in developing KPI's for their respective functions / sites. transporting. conferences. Technology and Facilities. Rules and Procedures on Occupational Safety and Health. We will realise our Vision through an Integrated Safety Management approach. Such SHE responsibilities shall form an integral part of overall job responsibilities of all employees. Warehouses · In-house purchased services i. canteen. handling. Processes.e. Offices. Where does this policy apply? · All own/leased sites – Manufacturing. training programmes. contractors and visitors) · Travel between home and work of our employees · Business related travel including stay out of headquarter · All Company organised business events i.All Unilever and HUL Standards. which focuses on People.Implementation Responsibility HUL Management at all levels is responsible for Policy implementation.These Principles have the same status as the Company's Code of Business Principles: · All injuries and occupational illnesses are preventable · All operational exposures can be safeguarded · Safety evaluation of all business processes is vital · Working safely is a condition of employment · Training all employees to work safely is essential · Management audits are a must · Employee involvement is essential · All deficiencies must be reported and corrected promptly Note: In order to facilitate operationalisation of the Safety Principles. . Depots.Scope of Application This section defines the scope of application of this Policy (where. Our MissionWe will bring safety on top of mind for all employees and will integrate it with all business processes. Systems. IT implementation etc. Research/Innovation. travel desk.e. including those that may be specific to a site are integral to this Policy and its implementation.Safety PrinciplesHUL's Occupational Safety and Health Policy is based on and supported by the following eight Principles. Every site shall prepare a responsibility matrix with respect to this Policy. All employees are required to ensure strict adherence. · Sites of associates with HUL holding > 24% while carrying out operations of making. selling or disposing off of our products Who does the policy apply to? · All employees at business anywhere · Contractors and visitors while at our own sites When does it apply? · At work (our employees. a separate document has been prepared.execution.

4) Explain the relevance of informal communication network and how to use for the benefit of a multi product company like Hindustan Unilever Ltd . you are required to prepare a speech for The Chairman of Hindustan Unilever Ltd on ‘every employee needs to be an effective communicator’. it is because of being singleminded in identifying itself with Indian aspirations and needs in every walk of life.Questions: 1) If Hindustan Unilever straddles the Indian corporate world. for being single –minded in identifying itself it needs to have good communication system. 3) Prepare a diagrammatic representation of Organization structure and explain it with relevance to Formal Communication network. 2) Based on the details given with reference to Hindustan Unilever Ltd. taking into account the parameters given in the case study you are required to explain the communication environment within the Organization set up of Hindustan Unilever Ltd.