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About Hindustan Unilever

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods
Company with a heritage of over 80 years in India and touches the lives of two out of three
Indians.

HUL works to create a better future every day and helps people feel good, look good and get
more out of life with brands and services that are good for them and good for others.

With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos,
skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and
water purifiers, the Company is a part of the everyday life of millions of consumers across
India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin,
Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent,
Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit.

The Company has over 18,000 employees and has an annual turnover of INR 31,425 crores
(financial year 2015 16). HUL is a subsidiary of Unilever, one of the worlds leading
suppliers of fast moving consumer goods with strong local roots in more than 100 countries
across the globe with annual sales of 53.3 billion in 2015. Unilever has 67.2% shareholding
in HUL.

Companys Vision
Unilever is a unique company, with a proud history and a bright future. We have ambitious
plans for sustainable growth and an intense sense of social purpose.

Our purpose is to make sustainable living commonplace. We work to create a better future
every day, with brands and services that help people feel good, look good, and get more out
of life.

In 2009, we launched The Compass our strategy for sustainable growth. It sets out our clear
and compelling vision to double the size of the business, while reducing our environmental
footprint and increasing our positive social impact and gives life to our determination to build
a sustainable business for the long term. This is captured in the Unilever Sustainable Living
Plan.

By combining our multinational expertise with our deep roots in diverse local cultures, were
continuing to provide a range of products to suit a wealth of consumers. Were also
strengthening our strong relationships in the emerging markets we believe will be significant
for our future growth.

And by leveraging our global reach and inspiring people to take small, everyday actions, we
believe we can help make a big difference to the world.

"We cannot close our eyes to the challenges that the world faces. Business must make an
explicit and positive contribution to addressing them. Im convinced we can create a more
equitable and sustainable world for all of us by doing so, says Unilever CEO Paul Polman.
But this means that business has to change. The Unilever Sustainable Plan is a blueprint for
sustainable growth. And in 2014 we are strengthening our Plan with new commitments to
drive further transformational change.

Companys Mission
Unilever's mission is to add Vitality to life. We meet every day needs for nutrition, hygiene,
and personal care with brands that help people feel good, look good and get more out of life.

Board of Directors

Mr. O. P. Bhatt: He is the former Chairman of SBI (State Bank of India). In the 36 years
that Mr. Bhatt served at SBI, he worked on several important national and international
assignments.

Dr. Sanjiv Misra: He is a retired Indian Administrative Services (IAS) officer and a former
member of the 13th Finance Commission, a constitutional position with the rank of a
Minister of State.

Mr. Aditya Narayan: He began his career as a Management Trainee with ICI India Limited
(now Akzo Nobel India Limited) in 1973.

Ms. Kalpana Morparia: She is Chief Executive Officer of J.P. Morgan, India. Ms. Kalpana
leads each of the firm's lines of business Corporate & Investment Banking and Asset
Management.

Mr. P. B. Balaji: He joined the Company as a Management Trainee in May 1993 and has
worked in number of roles in finance and supply chain over a period of 20 years.

Mr. Sanjiv Mehta: He joined the Board of the Company in October 2013. He is also the
Executive Vice President for Unilever in South Asia and a member of Unilevers Global
Market Executive.

Major CSR Projects

Project Shakti

Covering Section (ii), promoting education, including special education and employment
enhancing vocational skills especially among children, women, elderly and the differently
abled and livelihood enhancement projects; of Schedule VII of Companys Act 2013

About the project

Project Shakti is an initiative to financially empower rural women and create livelihood
opportunities for them. Through this project, the Company endeavors to enhance livelihoods
of rural women. Around 70% of Shakti Ammas are working in low Human Development
Index (HDI < 0.51) districts.

HUL contact and appoint rural women as Shakti Entrepreneurs (SE), commonly referred as
'Shakti Ammas'. SE is educated and trained by the rural promoter about the Company
products and their utility in day to day life in maintaining health and hygiene. After being
trained about the products she receives stocks from Companys rural distributor at a discount
below the price at which the products are sold in the normal course.

The Shakti Entrepreneur then sells these goods both directly to consumers (through home to
home selling) and to retailers in the village. The Company has trained thousands of Shakti
Ammas across the villages in a bid to develop an entrepreneurial mindset and make them
financially independent and more empowered. A typical Shakti Amma earns around Rs.
1000/- per month through selling our products. A Shakti Amma in her village gains a social
stature as she is associated with the reputed company in addition to being financially
empowered.

Target of the project

To increase the number of Shakti Entrepreneurs that they recruit, train and employ from
45,000 in 2010 to 75,000 in 2016.

Critical Evaluation of Project

It is being argued continuously since the Companys Act 2013 has been enforced that this
initiative does not forms part of a CSR activity as the Shakti Entrepreneurs are just like
employees to the company as they sell the products of Hindustan Unilever exclusively but
according to the Schedule VII of Companys Act 2013 Employee benefits does not forms a
part of CSR

Water Conservation
Covering Section (1)(iv), ensuring environmental sustainability, ecological balance,
protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources
and maintaining quality of soil, air and water of Schedule VII of Companys Act 2013

About the project

According to estimates, by 2030 the supply of water in India will be half its demand. To
understand and partake in meeting this challenge, your Company set up Hindustan Unilever
Foundation (HUF) in 2010, a not for profit company that anchors various community
development initiatives of Hindustan Unilever Limited. HUF supports national priorities for
socioeconomic development, through its Water for Public Good programme with the
specific mandate to contribute to the water discourse and practice through a partnered
approach. The key thrust of this organisation is water for public good with focus on farm
livelihoods. It supports people centered, micro-level solutions to the challenges being faced
by the water sector and uses the knowledge thus gained to shape the debate on water.
Recognising that more than half of Indias agriculture lacks any kind of irrigation facilities
and that agriculture is the major consumer of water, HUF has been focusing on improving
agricultures water efficiency. So far, HUF has initiated projects across 54 districts in 9
States and 2 Union Territories located across 11 river basins in India. Water conservation
programmes undertaken by HUF, through collective action and in partnership with several
NGOs, communities, other co-funders and partners across India, have helped in the creation
of cumulative water conservation potential of 200 billion litres.\

Solidaridad - Sustainability (Tea Procurement): HUL has also formed a clear roadmap to
achieve the bold commitment to source 100% of agricultural raw materials sustainably by
2020. Sustainable agriculture means growing food in ways which sustain the soil, minimise
water and fertiliser use, protect biodiversity and enhance farmers livelihoods. The Company
will ensure that the agricultural raw materials that are used such as tea, fruits and vegetables
are sustainably sourced. The programme aims to move the Indian tea industry producers into
adopting a sustainability code which shall promote sustainable agricultural practices, improve
productivity and reduce costs ensuring future security of tea supply in India and also protect
the ecosystems (soil, water and bio-diversity) whilst improving the quality of life for
producers and workers.

Asha Daan & Ankur


Covering section (i) of Schedule VII of the Companies Act, 2013; eradicating hunger,
poverty and malnutrition, promoting preventive health care and sanitation and making
available safe drinking water.

About the project

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, 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. It aims at providing shelter to the
underprivileged members of the society which 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.

Ankur: Ankur is a centre for special education for otherwise challenged children at the
Doom Dooma in Assam. It was set up in 1993 by HULs Plantations Division at Doom
Dooma. Ankur provides educational, vocational and recreational activities to specially-
abled children.

Budget
The budget allocated collectively for all the CSR activities for 2015-16 was Rs.9212 lakhs. It
is higher than the budget allocated for 2014-15 i.e., Rs.8235 lakhs. Below is the breakup of
the budget into different CSR activities done over the years. The average profit of the
company for the past 3 years amounted to Rs.4088.37 crores of which 2% comes out to be
Rs.8177 lakhs which is significantly lower than the actual expenditure done.

Investment in different projects through different years

4,800.00 4651
4,500.00 4342
4,200.00 2014-15
3,900.00 2015-16
3,600.00
3,300.00
Budget (in lakhs)

3,000.00
2,700.00
2,400.00 2125
2112
2,100.00 1847
1,800.00
1,500.00
1,200.00
900.00 508
600.00 365
300.00 88 172 22 22 147 66 70 126126
0.00
Swachh Solidarid
Water
Project Bharat Ashadaa Project ad-
Conserva Ankur Sanjivani
Shakti Swachh n Prabhat Suataina
tion
Aadat bility
2014-15 4651 365 2112 88 22 147 66 126
2015-16 4342 1847 2125 172 22 508 70 126
Projects Undertaken

The Swacch Bharat Swacch Aadat initiative was not present in 2014-15 but there were
different activities such as Handwashing behaviour change programme, Safe drinking water,
and Domex toilet academy which contributed to the same initiative. So, together their budget
amounted to Rs.365 lakhs and it was increased to Rs.1847 lakhs in 2015-16.

Before 2014-15, the data regarding the breakup of the expenditure done on various CSR
activities is not disclosed by the company in any of its reports.

Recent Challenges
Focusing CSR choices: Guiding principles

Companies are likely to have activities scattered across the map, but thats not where they have to
staynor is it how the benefits of CSR are maximized. Many companies start with pet projects,
philanthropy, or propaganda because these activities are quick and easy to decide on and
implement. The question is how to move toward CSR strategies that focus on truly co-creating
value for the business and society. The accompanying examples suggest three principles for
moving toward this goal.
1. Build a deep understanding of the benefits. Even after selecting your chosen areas of
opportunity, finding the potential for mutual value creation is not always straightforward.
The key is finding symmetry between the two sides and being open enough to understand
issues both from a business and a societal perspective.

2. Find the right partners. Partnering is difficult, but when both sides see winwin potential
there is greater motivation to realize the substantial benefits. Relationshipsparticularly
long-term ones that are built on a realistic understanding of the true strengths on both
sideshave a greater opportunity of being successful and sustainable.

3. Time frame. Be clear on both the short-term immediate objectives and the long-term
benefits. In smart partnering, the time frame is important, as initiatives can be complex and
take time to realize their full potential.

4. Nature of benefits. Some benefits will be tangible, such as revenue from gaining access to
a new market. Others will be equally significant, but intangible, such as developing a new
capability or enhancing employee morale.