Professional Documents
Culture Documents
Undertaken By HUL.
Submitted
by
Arjuman Ansari.
Eram Khan.
Sayeeda Khan.
Shazia Khan.
Shabnam Saboowala.
Sana Shaikh.
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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.
Place : Mumbai.
Date : 18/08/2010
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Introduction.
HUL’s heritage dates back to 1888, when the first Unilever product, Sunlight, was
introduced in India. Local manufacturing began in the 1930s with the establishment
of subsidiary companies. They merged in 1956 to form Hindustan Lever Limited
(The company was renamed Hindustan Unilever Limited on June 25, 2007). The
company created history when it offered equity to Indian shareholders, becoming
the first foreign subsidiary company to do so. Today, the company has more than
three lakh resident shareholders.
HUL’s brands -- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely,
Sunsilk, Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr,
Annapurna, Kwality- Walls - are household names across the country and span
many categories - soaps, detergents, personal products, tea, coffee, branded staples,
ice cream and culinary products. They are manufactured in over 35 factories,
several of them in backward areas of the country. The operations involve over
2,000 suppliers and associates.HUL's distribution network covers 6.3 million retail
outlets including direct reach to over 1 million. HUL has traditionally been a
company, which incorporates latest technology in all its operations.
Hindustan Unilever was recently rated among the top four companies globally in
the list of “Global Top Companies for Leaders” by a study sponsored by Hewitt
Associates, in partnership with Fortune magazine and the RBL Group. The
company was ranked number one in the Asia-Pacific region and in India.
The mission that inspires HUL's more than 15,000 employees, including over 1,400
managers, is to “add vitality to life". The company meets everyday needs for
nutrition, hygiene, and personal care, with brands that help people feel good, look
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good and get more out of life. It is a mission HUL shares with its parent company,
Unilever, which holds about 52 % of the equity.
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
sindirect 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).
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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.
Foods
From yummy ice creams to scrumptious sauces, our food brands can satisfy even
the most discerning palates.
Home care
Whether you want fresh, soft clothes or sparklingly clean bathrooms, our home
care brands can help
Personal care
In need of hair care heroics? Wanting to relax with a luxurious bath? Our personal
care brands have answers to all these questions and more.
They meet everyday needs for nutrition, hygiene and personal care with brands that
help people feel good, look good and get more out of life.
Company Profile.
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Hindustan Unilever Limited
Founded 1933
Key people Harish Manwani (Chairman), Nitin Paranjpe (CEO and Managing Director)
Website www.hul.co.in
Present Stature.
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.
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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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The World Business Council for Sustainable Development in its publication
"Making Good Business Sense" by Lord Holme and Richard Watts, used the
following definition. "Corporate Social Responsibility is the continuing
commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their
families as well as of the local community and society at large"
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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:
Companies need to answer to two aspects of their operations. 1. The quality of their
management - both in terms of people and processes (the inner circle). 2. The
nature of, and quantity of their impact on society in the various areas.
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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 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
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
patients were treated. In 2008 through 437 camps, 31,790 patients have been
treated.
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Disaster relief and rehabilitation
Floods, Bihar, 2008
HUL contributed 10,000 kits worth Rs.60 lakhs as the first installment of material
for immediate relief of the flood affected families of Araria District in Bihar. The
kit contained essential items such as utensils, clothes, blankets and other useful
material. In all, 12 truckloads of material were distributed to the affected families
under the guidance of the Araria District Magistrate.
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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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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After the devastating earthquake in Gujarat in 2001, HUL reconstructed a village in
the Bhachau Taluka of Gujarat's Kutch district in December 2002. Named as
Yashodadham, this village was dedicated to 1,100 residents of Nani Chirai village,
which was completely wrecked by the earthquake. Yashodadham was
constructed with the active involvement of villagers and is spread over 25 acres,
comprising 289 homes.
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
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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
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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Lifebuoy Swastya Chetna (LBSC) is a rural health and hygiene initiative which
was started in 2002. LBSC was initiated in media dark villages (in UP, MP, Bihar,
West Bengal, Maharashtra, Orissa) with the objective of spreading awareness about
the importance of washing hands with soap.
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.
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EMPOWERMENT OF WOMEN THROUGH EDUCATION
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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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.
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:
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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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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.
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.
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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
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.
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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
Not to be confused with a corporate state, a corporative government rather than the
government of a corporation
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independent Board. We keep our governance practices under continuous review
and benchmark ourselves to the best governed companies across the globe.
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.
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Composition
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
Executive Director (Legal) and Company Tel nos. : +91-22-398 32557 / 32358
Secretary / 32532 / 32312
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252, Veer Savarkar Marg
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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