CASE STUDY

Hindustan Unilever Limited

Introduction of Hindustan Unilever Limited

In 1931, Unilever first set up Hindustan Vanaspati Manufacturing Company, Lever Brothers India
Limited in 1933 followed by United Traders Limited in 1935. The 3 companies were merged in
1956 to form Hindustan Unilever Limited; India’s largest FMCG company with its products
reaching a majority of the households in the country. The mission of the company is to “To add
vitality to life". So far it has been effective in carrying out its mission to the best of its ability.
They have an annual turnover of INR 45,311 crores (the financial year 2020-21).

CSR activities and Social Welfare of HUL Group:

CSR is a management technique in which companies incorporate social and environmental

concerns into their operations and connections with stakeholders. As a part of CSR initiatives, it
has contributed towards Health, Education, Renewable energy and Environment protection,
Promotion of Heritage, Art & Culture. Corporate Social Responsibility Initiatives of HUL in FY
2020-21 impacted more than 90,000 lives, out of which 27% belong to SCs, STs, and other
backward communities, while 13% of the beneficiaries were women and it has made a positive
impact on the environment and society. The company’s CSR is 2% of the annual net profit of
161.70 crores.

Diversification:

HUL planned to enter into various sectors to capture new opportunities that the market had to offer.
They expanded their industries portfolio by entering into the food and beverages sector, cleaning
agents, personal care products, water purifiers and fast-moving consumer goods. This year, their
CSR initiatives will be prominent in 4 states namely, Uttarakhand, Chhattisgarh, Nagaland, and
Gujarat.
CSR Objectives :

The goal of corporate social responsibility is to give back to the community, participate in
charitable initiatives, and add value to society. Businesses are increasingly relying on corporate
social responsibility (CSR) to make a difference and establish a positive brand. Here, the focus is
on the Sectors of Education, Health, Renewable Energy, Environment, Heritage, Art and
Culture, and Drinking water.

Proposed CSR Activities:

1) Education:

HUL provides training with features like Transparency, Centralised front end portal interface,
providing opportunities objectively and assessing the skill development programs. Additionally,
along with training, funds for the building and repair of substantial infrastructure are also allocated,
under which the funds shall be distributed and used evenly in that specific time frame. Also,
specialized equipment such as computers, projectors, generators, and under extraordinary
circumstances the company shall also lease/purchase land for the schools, etc, Earlier, HUL
introduced the “Parivartan” Model School Program – ‘Parivartan’ was started with a multi-
pronged approach under which HUL has adopted 13 Government primary schools.

2) Healthcare:

HUL has looked into different elements to invest in to accomplish their idea related to healthcare.
The company intends to invest in feeding malnourished children in rural regions in particular.
Sanitation is one of the most important aspects of community well-being because it protects human
health, hence the company intends to invest in sanitation in hospitals. The company is also willing
to invest in infrastructure and medical equipment since these two are major parts of the healthcare
system.

3) Renewable Energy:

One of the most cost-effective sources of energy is Solar energy. HUL finds it relatively simple to
replace 30-50 percent of their power needs with solar power via on-site and off-site solutions,
while also significantly lowering their power costs. The cost-cutting measures could allow them
to raise wages, hire more employees, and expand their businesses.
 4) Environment:

Enterprises misuse available natural resources and release harmful pollutants, contributing to the
deterioration of existing ecosystems and posing severe risks to our planet's biodiversity. The
concept of corporate social responsibility, which is associated with environmental care, and social
order, creates a real opportunity to implement principles of sustainable development at the most
basic level. There are efforts underway to provide a conceptual framework for describing the idea
of sustainability from a systemic viewpoint, the perspective of individual entities, and their role in
laying the groundwork for a sustainable society.

5) Heritage, Art, and Culture:

The handloom industry is one of the world's major unorganized economic activities, and it plays a
significant role in rural and semi-rural livelihoods. The handloom business is primarily
decentralized, and the majority of employees come from the poorer parts of society, who weave
for their own needs. This industry's weavers are preserving traditional arts and crafts from a variety
of states. Handloom fabrics have an unrivaled level of artistry and intricacy, and certain
weaves/designs are still beyond the capabilities of modern machines.

6) Drinking-Water:

In 2004, the company launched the 'Pureit' water purifier. Water quality is influenced by the state
of the raw water source and its watershed, seasonal fluctuations, the performance of the panchayat
water treatment system, and, most critically, household water treatment and storage and water,
sanitation, and hygiene practices. Drinking water is supplied from dug wells and borewells and is
electrically pumped through pipelines to an elevated storage tank or an open well, disinfected, and
then given to families through taps located all around the village under gravity pressure.
HUL founded the “Water for Public Good” on the premise that water is a good that should be
shared and managed by citizen communities. The goal was to use government, communities,
professionals, and mission-based organizations to catalyze effective solutions to India's water
difficulties.
The Way Forward

Listed above are all the CSR Activities which HUL has thought about, now it is up to you, which
CSR activity should be selected by the company out of Education, Health care, Renewable energy,
Environment, Drinking Water and Heritage, Art and Crafts.
Based on the above information, find the state (Uttarakhand, Chhattisgarh, Nagaland, and Gujarat)
which will be more suitable to perform the above-mentioned CSR activities.
The company has to decide based on the CSR activities provided and analyze which are more
suited in the state which meets the requirements of the region and adds value to the society.