Part 2 PDF

PROJECT REPORT ON CORPORATE SOCIAL
RESPONSIBILITY OF AMUL- THE TASTE OF INDIA
INTRODUCTION
WHAT IS CSR?
The voluntary compliance of social and ecological responsibility of companies is called

Corporate Social Responsibility (CSR).
Corporate social responsibility is basically a concept whereby companies decide voluntarily to

contribute to a better society and a cleaner environment. Corporate social responsibility is
represented by the contributions undertaken by companies to society through its business
activities and its social investment. This is also to connect the Concept of sustainable
development to the company‘s level.
Over the last years an increasing number of companies worldwide started promoting their
Corporate Social Responsibility strategies because the customers, the public and the investors
expect them to act sustainable as well as responsible. In most cases CSR is a result of a variety
of social, environmental and economic pressures.
Sahyadri Institute of Management And Research, Sawarde 1

The Term Corporate Social Responsibility is imprecise and its application differs. CSR can not
only refer to the compliance of human right standards, labor and social security arrangements,
but also to the fight against climate change, sustainable management of natural resources and
consumer protection.
The concept of Corporate Social Responsibility was first mentioned 1953 in the publication
Social Responsibilities of the Businessman‘ by William J. Bowen. However, the term CSR
became only popular in the 1990s, when the German Betapharm, a generic pharmaceutical
company decided to implement CSR. The generic market is characterized by an
interchangeability of products. In 1997 a halt in sales growth led the company to the realization
that in the generic drugs market companies could not differentiate on price or quality. This was
the prelude for the company to adopt CSR as an expression of the company‘s values and as a part
of its corporate strategies. By using strategic and social commitment for families with chronically
ill children children, Betapharm took a strategic advantage.
In July 2001, the European Commission decided to launch a consultative paper on Corporate
Social Responsibility with the title „Promoting a European Framework for Corporate Social
Responsibility―. This paper aimed to launch a debate on how the European Union could
promote Corporate Social Responsibility at both the European and international level.
The paper further aimed to promote CSR practices, to ensure the credibility of CSR claims as
well as to provide coherence in public policy on CSR.

DEFINITION
Since the 1960s, corporate social responsibility has attracted attention from a range of businesses
and stakeholders. A wide variety of definitions have been developed but with little consensus. Part
of the problem with definitions has arisen because of the different interests represented. A business
person may define CSR as a business strategy, an NGO activist may see it as 'greenwash' while a
government official may see it as voluntary regulation." In addition, disagreement about the
definition will arise from the disciplinary approach." For example, while an economist might
consider the director's discretion necessary for CSR to be implemented a risk of agency costs, a
law academic may consider that discretion to be an appropriate expression of what the law
demands from directors.
Corporate social responsibility has been defined by Sheehy as "international private business self-
regulation."[4] Sheehy examined a range of different disciplinary approaches to defining CSR. The
definitions reviewed included the economic definition of "sacrificing profits," a management
definition of "beyond compliance", institutionalist views of CSR as a "socio-political movement"
and law's own focus on directors' duties. Further, Sheehy considered Archie Carroll's description
of CSR as a pyramid of responsibilities, namely, economic, legal, ethical, and philanthropic
responsibilities. While Carroll was not defining CSR, but simply arguing for classification of
activities, Sheehy developed a definition differently following the philosophy of science—the
branch of philosophy used for defining phenomena.
Carroll extended corporate social responsibility from the traditional economic and legal
responsibility to ethical and philanthropic responsibility in response to the rising concerns on
ethical issues in businesses. This view is reflected in the Business Dictionary which defines CSR
as "a company's sense of responsibility towards the community and environment (both ecological
and social) in which it operates. Companies express this citizenship (1) through their waste and
pollution reduction processes, (2) by contributing educational and social programs and (3) by
earning adequate returns on the employed resources.

A BRIEF HISTORY OF CORPORATE SOCIAL RESPONSIBILITY
The history of CSR dates back many years and in one instance can even be traced back 5000 years
in Ancient Mesopotamia around 1700 BC, King Hammurabi introduced a code in which builders,
innkeepers or farmers were put to death if their negligence caused the deaths of others, or major
inconvenience to local citizens. In Ancient Rome senators grumbled about the failure of businesses
to contribute sufficient taxes to fund their military campaigns, while in 1622 disgruntled
shareholders in the Dutch East India Company started issuing pamphlets complaining about
management secrecy and "self-enrichment". With industrialization, the impacts of business on
society and the environment assumed an entirely new dimension. The "corporate paternalists" of
the late nineteenth and early twentieth century's used some of their wealth to support philanthropic
ventures. By the 1920s discussions about the social responsibilities of business had evolved into
what we can recognize as the beginnings of the "modern" CSR movement. "The phrase Corporate
Social Responsibility was coined in 1953 with the publication of Bowen's Social Responsibility of
Businessmen" (Corporate watch report, 2006). The evolution of CSR is as old as trade and business
for any of corporation. Industrialization and impact of businesses on the society led to a complete
new vision. By 80's and 90's CSR was taken into discussion, the first company to implement CSR
was Shell in 1998. (Corporate watch report, 2006) With well informed and educated general people
it has become a threat to the corporate and CSR is the solution to it. In 1990 CSR was standard in
the industry with companies like Price Waterhouse Copper and KPMG. CSR evolved beyond code
of conduct and reporting, eventually it started taking initiative in NGO's, multi stake holder, ethical
trading. (Corporate watch report, 2006).

CSR LAWS IN INDIA
The Companies Act, 2013, a successor to The Companies Act, 1956, made CSR a compulsory act.
Under the notification dated 27.2.2014, under Section 135 of the new act, CSR is compulsory for
all companies- government or private or otherwise, provided they meet any one or more of the
following fiscal criterions[9]:
 The net worth of the company should be Rupees 500 crores or more
 The annual turnover of the company should be Rupees 1000 crores or more
 Annual net profits of the company should be at least Rupees 5 crores.
If the company meets any one of the three fiscal conditions as stated above, they are required to
create a committee to enforce its CSR mandate, with at least 3 directors, one of whom should be
an independent director[10].
The responsibilities of the above-mentioned committee will be[11]:
 Creation of an elaborate policy to implement its legally mandated CSR activities. CSR
acts should conform to Schedule VII of the Companies Act, 2013.
 The committee will allocate and audit the money for different CSR purposes.
 It will be responsible for overseeing the execution of different CSR activities.
 The committee will issue an annual report on the various CSR activities undertaken.
 CSR policies should be placed on the company’s official website, in the form and
format approved by the committee.
 The board of directors is bound to accept and follow any CSR related suggestion put up
by the aforementioned committee.
 The aforementioned committee must regularly assess the net profits earned by the
company and ensure that at least 2 percent of the same is spent on CSR related activities.
 The committee must ensure that local issues and regions are looked into first as part of
CSR activities.
NEED OF CSR LAWS
 CSR laws are meant to help in transferring excess capital from the haves to the have-nots
via acts of charity. According to available data, CSR laws will help in increasing amount
of monetary contribution from $600 million to $2 billion annually. This will help corporate
undertakings to take up a lot more social, economic and environmental activities in order
to help the general populace. This will also help corporates to have a direct stake in
improving the society and drastically change their role from perceived exploiters of
commerce to facilitators of development. They will be forced to contribute beyond the
surface level and help in changing the society in a much deeper way.
FEATURES OF CSR LAWS
The broad and important features of the CSR laws are as follows:
 Quantum of money utilized for CSR purposes are to be compulsorily included in the
annual profit-loss report released by the company[12].
 The CSR rules came into force on 1st April 2014 and will include subsidiary companies,
holdings and other foreign corporate organizations which are involved in business
activities in India[13].
 CSR has been defined in a rather broad manner in Schedule VII of Companies Act,
2013. The definition is exhaustive as it includes those specific CSR activities listed in
Schedule VII and other social programmes not listed in schedule VII, whose inclusion
as a CSR activity is left to the company’s discretion.

CSR activities listed in schedule VII include:
“eradicating hunger and poverty, promotion of education and employment, livelihood

enhancement projects, promoting gender equality, women empowerment, hostels for women and
orphans, old age homes, day care, environmental sustainability, protection of flora and fauna,
contributions to PM relief fund, measures to benefit armed forces veterans, war widows and
dependants, promotion of sports, and rural development projects”.
 Net profits are calculated on the basis of Section 198 of Companies Act, 2013.
However, only domestic branches are included and dividend-related payments are left
out of the final calculation of total net profits.
 Companies are allowed to implement CSR via any of the following means possible.
 Setting up a Trust or Society under Section 8 of the 2013 Companies act under its direct
administrative control.
 Corporates can outsource the CSR tasks to established social enterprises- institutions
engaged in CSR activities for 3 years or more. These institutions are meant to engage
in not for profit activities. The corporates though are supposed to monitor the social
enterprises meant to enforce their CSR mandate.
 Companies can collaborate with fellow companies and work out some arrangement
based on the CSR rules.
CSR activities should follow the below-mentioned rules:
 Any familial activity or act of personal charity is not to be included as part of CSR
activity.
 Any sort of contribution-fiscal or otherwise by political organizations is outside the

purview of CSR activities as indicated under Section 182 of the 2013 Companies Act.
 All CSR activities are to be conducted in Indian territory to be considered valid.

 Companies can utilize a maximum of 5 percent of their total expenditure to help in

capacity building of their society, trust or outsourced social enterprise.
 As stated before listed public companies are mandated to have up to 3 directors as part
of their CSR committee- one of whom should always be independent. Unlisted and
private companies are allowed to have at least 2 directors and no independent director.
 CSR reports are to be compulsorily published on an annual basis. The reports have a
fixed format as designed by the CSR rules, which must include details like official CSR
policy, the number of funds dedicated to CSR and its detailed utilization as well as a
detailed explanation for non-utilization of funds if any. The said format and its
constituents must be displayed on the official website of the company.
 CSR activities initiated by a foreign company has to be via its Indian subsidiary to be
considered legitimate under Section 135 of the companies act.
 Trusts created by companies to carry out their mandated CSR tasks, are to be
compulsorily registered in some states where it is mandatory under Income Tax, 1956.
 Companies are allowed to co-operate with their independent counterparts, provided the
latter has a proper tracking and reporting system for CSR activities that may be
undertaken.
 Companies are allowed to engage in capacity building by allotting up to 5 percent of all

expenses to be incurred on CSR activities to be devoted to training and equipping of
personnel to carry out CSR and related activities.
Activities that cannot be considered as CSR include:
 Operational and administrative activities of the business.
 CSR activities that do not take place in Indian territory.

 Employee and familial welfare activities are strictly outside the purview of CSR tasks
as well.
 Fiscal help rendered to political outfits is not considered as a CSR activity as well.
 Events like the marathon, award functions, fiscal help rendered to charitable
institutions, sponsoring TV shows etc that are strict “one-off”-i.e. meant to happen just
once in a while are not considered CSR.
 Companies cannot report lawful duties rendered under acts or regulation like Labor Act,
Land act etc. cannot be considered as CSR tasks.
IMPORTANCE OF CSR
Corporate social responsibility (CSR) plays a major role in developing the economy of a country.
It can be defined as the way in which a company manages various business entities to produce an
impact on the society. Companies with high CSR standards are able to demonstrate their
responsibilities to the stock holders, employees, customers, and the general public.
Business organizations that have high corporate social responsibility standards can attract staff
thereby reducing employee turnover and cost of recruitment. What is the importance of corporate
social responsibility? Anyone can give a clear answer to this question. Companies voluntarily
contribute a large sum of money to make a better society and a clean environment. Corporate
social responsibility is a process in which all companies come together as one and take part in the
welfare of the society. Many organizations conduct campaigns to create awareness among
corporate, civic bodies, and government bodies about the importance of corporate social
responsibility.
Many national and multinational firms are booming in various developing countries. But at the
same time, these countries suffer social challenges such as poverty, corruption, population
growth, etc. Therefore, it is important for all companies to strive together and adapt corporate

social responsibility standards to make the society better than before. An organization can exhibit
a better image in the society if it cares for its employees and involve them in social activities. The
responsibilities of an organization may range from providing small donations to executing bigger
projects for the welfare of the society. Many business houses around the world show their
commitment to corporate social responsibility.
What is the importance of corporate social responsibility? The answer lies in two things:
1) Organizations understanding their role in developing a society and
2) Awareness among business houses, corporate bodies, and the people. Versatile,
profitable, and dynamic businesses are the driving forces that build the economy of the
country. We must remember that the growth of a country purely depends on the growth of
the society and the people in the society.
BENEFITS OF CSR
Organizations of all sizes are rapidly discovering that Corporate Social Responsibility (CSR) and
sustainable business practices can foster improved green programs and overall environmental
stewardship.
Today, we are seeing increased awareness and active participation by business professionals in
the development of CSR policies. Organizations are increasingly more involved in green
initiatives by adopting sustainable processes and practices, adapting products and services to the
low-carbon economy and innovating in all areas their business. The net positive on reducing
waste, designing green buildings, implementing green operations and maintenance plans — all
have continually proven to yield a positive return on investment (ROI).
CSR has come to rely on a more complex set of factors than corporate governance alone, and
likewise also depends on sustainable development, environmental impact and supply chain
management.

The development of the new carbon trading markets, verified emission reductions (VERs), also
known as carbon offsets, and renewable energy credits (REC‘s), it has become easier for
organizations to create and measure direct ROI from CSR. Likewise, CSR efforts have shown to
yield measurable returns in waste reduction, improved efficiency, diminished liabilities,
improved community relations, and brand recognition.
Through communicating clear and measurable sustainability objectives and the implementation
of practical and equally functional corporate governance mechanisms, organizations are realizing
that they can have a achieve ROI through their sustainability efforts.
Integral strategies in ensuring substantive long-term results include:
 Define path of progress in CSR and strategically manage expected organizational outcomes
 Ensure basic CSR values are culturally integrated across the organization
 Adopt an effective engagement strategy with stakeholders to create buyer awareness and
loyalty
 Properly map organizational objectives and critical success indicators with CSR
performance metrics
Innovative organizations that understand the value of CSR work to create a corporate culture in
which each employee is committed to doing his or her part to improve the environment. According
to Forrester Research, effective CSR and sustainability practices within large companies have been
shown to contribute to a profit increase up to 35 percent.

SCOPE OF CSR
1. Education.
i) Support t o Technical /Vocational Institutions for their self -development.
ii) Academic education by way of financial assistance to Primary, Middle and Higher Secondary
Schools.
iii) Adult literacy amongst those belonging to BPL.
iv) Awareness Programmers on girl education.
v) Counseling of parents
vi) Special attention on education, training and rehabilitation of mentally & physically challenged
children/persons.
vii) Spreading legal awareness amongst people and disadvantageous sections of the society about
their rights & remedies available.
viii) Promotion of Professional Education by setting up educational Institutions offering courses

in Engg. Nursing, Management,
ix) Medicine and in Technical subjects etc.
x) Provide fees for a period of one year or more to the poor and meritorious, preferably girl
students of the school in the operational area of the Company to enable them to get uninterrupted
education.
2. Water Supply including Drinking Water:
i) Installation/Repair of Hand Pumps/Tube Wells.
ii) Digging/Renovation of Wells.

iii) Gainful utilization of waste water from Under -ground Mines for Cultivation or any other
purpose.
iv) Development/construction of Water Tank/Ponds.
v) Rain water-harvesting scheme.
vi) Formation of a Task Force of Volunteers to educate people regarding vii)Proper use of drinking
water.
viii) Empowerment to the villagers for maintenance of the above facilities for availability of water.
3. Health Care organizing, health awareness Camps on
i) AIDS TB and Leprosy
ii) Social evils like alcohol, smoking, drug abuse etc.
iii) Child and Mother care
iv) Diet and Nutrition.
v) Blood donation camps.
vi) Diabetics detection & Hypertension Camps
vii) Family Welfare.
viii) Senior Citizen Health Care Wellness Clinics.
ix) Fully equipped Mobile Medical Vans.
x) Tele medicine xi) to supplement the different programme of Local/State Authorities.
xii) Along with De addiction centers

4. Environment
i) Organizing sensitizing programmes on Environment Management and
ii) Pollution Control.
iii) Green belt Development
iv) A forestation, Social Forestry, Check Dams, Park.
v) Restoration of mined out lands.
vi) Development of jobs related to agro product i.e., Dairy/Poultry/farming and others.
vii) Plantation of saplings producing fruit. viii) Animal care.
5. Social Empowerment.
i) Self /Gainful Employment Opportunities – Training of Rural Youth for Self Employment
(TRYSEM) on Welding, Fabrication, and other Electronic appliances.
ii) To provide assistance to villagers having small patch of land to develop mushroom farming,
medicinal plants, farming & other cash crops to make them economically dependent on their
available land resources.
iii) Training may be provided by agricultural experts for above farming.
iv) Organizing training programmes for women on tailoring Embroidery designs,
v) Home Foods/Fast Foods, Pickles, Painting and Interior Decoration and other
vi) Vocational Courses.
vii) Care for senior citizens.
viii) Adoption/construction of Hostels (especially those for SC/ST &girls)

ix) Village Electricity/Solar Light
x) To develop infrastructural facilities for providing electricity through Solar Lights or alternative
renewal energy to the nearby villages. Recurring expenditure should be borne by the beneficiaries.
xi) Pawan Chakki as alternative for providing electricity in villages, etc.
6. Sports and Culture
i) Promotion of Sports and Cultural Activities for participation in State and National level.
ii) Promotion/Development of sports activities in nearby villages by conducting Tournaments like

Football, Kabaddi and Khokho, Cricket etc.
iii) Providing sports materials for Football, Volleyball, Hockey sticks etc. to the young and talented
villagers.
iv) Promotion of State level teams.
v) Sponsorship of State Sports events in Bihar.
vi) Sponsorship of Cultural event to restore Indian Cultural Traditions and Values.
vii) Possibility of providing facilities for physically handicapped persons may be explored.
viii) Medias for preparing of documentary films.

WHAT’S YOUR ROI?
There are proven methodologies that demonstrate ROI benefits to CSR. A partial summary of
such strategies has been outlined below and reflect best practices in the implementation of
successful CSR programs designed to drive improved operational performance and net positive
ROI.
Business Benefit: Improving Operational Efficiency
Perhaps the strongest — and best documented — argument for engaging employees in
environmental practices is the connection between CSR involvement and increased operational
efficiency. Front-line employees are often in the best position to identify inefficiencies and
propose improvements. Educating employees on CSR can improve profitability by supporting
greater efficiency through less waste, water and energy usage.
Business Benefit: Innovation
Employee E&S education is also a source of innovation and savings resulting from the
development of new product and service lines as well as new technologies, materials or processes
that reduce water, energy usage or harmful materials.
Business Benefit: Supply Chain Management
Educating employees on sustainability practices throughout the supply chain can lead to greater
efficiencies and help build collaboration to meet sustainability, quality and other goals. It can
also strengthen relationships between a company and its suppliers by aligning values and
objectives.
Business Benefit: Financial Responsibility
We are seeing an unprecedented level of government programs and initiatives designed to drive
corporate decision-making within markets that include manufacturing, construction, etc., to
invest in implementing practical and measurable green building design, construction, operations,
and maintenance solutions.
In many cases, the good news is that implementation of sustainable operations can drive increased
efficiency through reductions in energy consumption, implementation of building maintenance
methodologies that are often cost neutral, and decreasing the cost of workspaces through use
of recycled furniture while changing too low–use lighting (which provides eco-friendly work
environments), to name a few.
Government subsidies and incentives often further complement and reward efforts to develop
and implement successful sustainable operations and maintenance programs. Nearly all of the
points needed for LEED Certification (40 points) can be achieved through the energy and
atmosphere category (35 points). It is by far the largest category within the rating system, and
emphasizes the combination of energy performance and renewable energy, which has shown can
lower costs by up to 50percent in the first year alone.
It is widely accepted that green building occupants are healthier and much more productive in
their work. With an average of 90 percent of Americans spending more of their time indoors,
green buildings often have better indoor air quality and lighting, among other key advantages
Measuring the impact of CSR in achieving social and environmental goals can be difficult, but is
becoming more common if not expected within corporations, often as a factor of CSR. Typically
in business, what gets measured gets managed, and as long as the right metrics system is created
and data is tracked accurately, almost any environmental CSR initiative can yield positive results.
There seems to be a direct correlation between the implementation of effective green programs
and design of green buildings to improved office worker productivity and employee morale,
while driving efficiencies and reduced consumption.
Innovative, forward-thinking companies have learned that they must be fully committed to
strategic initiatives that are directly tied to their business‘core competencies (or those of clients,
employees, etc.). The advantages of doing so through an effective CSR program, such as building
brand recognition, realizing increased sales and fostering trust with employees and community,
can be achieved as a win-win in almost all situations. With committed leadership and a strategic
approach most companies can find a substantial ROI benefit in CSR.
CORPORATE SOCIAL RESPONSIBILITY IN INDIA
India is the first country in the world to make corporate social responsibility (CSR) mandatory,
following an amendment to The Company Act, 2013 in April 2014. Businesses can invest their
profits in areas such as education, poverty, gender equality, and hunger.
The amendment notified in the Schedule VII of the Companies Act advocates that those companies
with a net worth of US$73 million (Rs 4.96 billion) or more, or an annual turnover of US$146
million (Rs 9.92 billion) or more, or a net profit of US$732,654 (Rs 50 million) or more during a
financial year, shall earmark 2 percent of average net profits of three years towards CSR.
In the draft Companies Bill, 2009, the CSR clause was voluntary, though it was mandatory for
companies to disclose their CSR spending to shareholders. It is also mandatory that company
boards should have at least one female member.
CSR has been defined under the CSR rules, which includes but is not limited to:
 Projects related to activities specified in the Schedule; or
 Projects related to activities taken by the company board as recommended by the CSR
Committee, provided those activities cover items listed in the Schedule.
CORPORATE SOCIAL RESPONSIBILITY: EXAMPLES IN INDIA
TATA GROUP
The Tata Group conglomerate in India carries out various CSR projects, most of which are
community improvement and poverty alleviation programs. Through self-help groups, it is
engaged in women empowerment activities, income generation, rural community development,
and other social welfare programs. In the field of education, the Tata Group provides scholarships
and endowments for numerous institutions.

The group also engages in healthcare projects such as facilitation of child education, immunization
and creation of awareness of AIDS. Other areas include economic empowerment through
agriculture programs, environment protection, providing sport scholarships, and infrastructure
development such as hospitals, research centers, educational institutions, sports academy, and
cultural centers.
ULTRATECH CEMENT
Ultratech Cement, India’s biggest cement company is involved in social work across 407 villages
in the country aiming to create sustainability and self-reliance. Its CSR activities focus on
healthcare and family welfare programs, education, infrastructure, environment, social welfare,
and sustainable livelihood.
The company has organized medical camps, immunization programs, sanitization programs,
school enrollment, plantation drives, water conservation programs, industrial training, and organic
farming programs.
MAHINDRA AND MAHINDRA
Indian automobile manufacturer Mahindra & Mahindra (M&M) established the K. C. Mahindra
Education Trust in 1954, followed by Mahindra Foundation in 1969 with the purpose of promoting
education. The company primarily focuses on education programs to assist economically and
socially disadvantaged communities. CSR programs invest in scholarships and grants, livelihood
training, healthcare for remote areas, water conservation, and disaster relief programs. M&M runs
programs such as Nanhi Kali focusing on girl education, Mahindra Pride Schools for industrial
training, and Lifeline Express for healthcare services in remote areas.
ITC GROUP
ITC Group, a conglomerate with business interests across hotels, FMCG, agriculture, IT, and
packaging sectors has been focusing on creating sustainable livelihood and environment protection
programs. The company has been able to generate sustainable livelihood opportunities for six
million people through its CSR activities. Their e-Choupal program, which aims to connect rural
farmers through the internet for procuring agriculture products, covers 40,000 villages and over
four million farmers. Its social and farm forestry program assists farmers in converting wasteland
to pulpwood plantations. Social empowerment programs through micro-enterprises or loans have
created sustainable livelihoods for over 40,000 rural women.
Methodology of corporate social responsibility
CSR is the procedure of assessing an organization’s impact on society and evaluating their
responsibilities. It begins with an assessment of the following aspects of each business:
 Customers;
 Suppliers;
 Environment;
 Communities; and,
 Employees.
The most effective CSR plans ensure that while organizations comply with legislation, their
investments also respect the growth and development of marginalized communities and the
environment. CSR should also be sustainable – involving activities that an organization can uphold
without negatively affecting their business goals.
CSR trends in India
FY 2015-16 witnessed a 28 percent growth in CSR spending in comparison to the previous year.
Listed companies in India spent US$1.23 billion (Rs 83.45 billion) in various programs ranging
from educational programs, skill development, social welfare, healthcare, and environment
conservation. The Prime Minister’s Relief Fund saw an increase of 418 percent to US$103 million
(Rs 7.01 billion) in comparison to US$24.5 million (Rs 1.68 billion) in 2014-15. The education
sector received the maximum funding of US$300 million (Rs 20.42 billion) followed by healthcare

at US$240.88 million (Rs 16.38 billion), while programs such as child mortality, maternal health,
gender equality, and social projects saw negligible spend.
In terms of absolute spending, Reliance Industries spent the most followed by the government-
owned National Thermal Power Corporation (NTPC) and Oil & Natural Gas (ONGC). Projects
implemented through foundations have gone up from 99 in FY 2015 to 153 in FY 2016, with an
increasing number of companies setting up their own foundations rather than working with existing
non-profits to have more control over their CSR spending.
2017 CSR spends further rose with corporate firms aligning their initiatives with new government
programs such as Swachh Bharat (Clean India) and Digital India, in addition to education and
healthcare, to foster inclusive growth.

ABOUT AMUL- THE TASTE OF INDIA
Amul (Anand Milk Union Limited)
Type Cooperative
Industry Dairy
Founded 1946
Headquarters Anand, Gujarat, India
Key people Chairman, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF)
Revenue US$2.15 billion (2010–11)
Employees 735 employees of Marketing Arm. However, real pool consist of 3.03 million milk
producer members
Website www.amul.com

INTRODUCTION
Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. The word
AMUL is derived from the Sanskrit word AMULYA meaning invaluable. The co-operative is also
sometimes referred to by the unofficial backronym: Anand Milk Union Limited.
Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.03 million milk
producers in Gujarat.
Amul spurred India's White Revolution, which made the country the world's largest producer of
milk and milk products. In the process Amul became the largest food brand in India and has also
ventured into markets overseas.
Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973- 2006),
is credited with the success of Amul.

HISTORY
Amul-cooperative registered on 14 December 1946 as a response to the exploitation of marginal
milk producers by traders or agents of the only existing dairy, the Polson dairy, in the small city
distances to deliver milk, which often went sour in summer, to Polson. The prices of milk were
arbitrarily determined. The government had given monopoly rights to Polson to collect milk from
Kaira and supply it to Bombay city.
Angered by the unfair trade practices, the farmers of Kaira approached Sardar Vallabhbhai
Patel under the leadership of local farmer leader Tribhuvandas K. Patel. He advised them to form
a cooperative (Kaira District Co-operative Milk Producers' Union) and supply milk directly to the
Bombay Milk Scheme instead of Polson (who did the same but gave them low prices). He
sent Morarji Desai to organize the farmers. In 1946, the milk farmers of the area went on a strike
which led to the setting up of the cooperative to collect and process milk. Milk collection was
decentralized, as most producers were marginal farmers who could deliver, at most, 1–2 liters of
milk per day. Cooperatives were formed for each village, too. By June 1948, the KDCMPUL had
started pasteurizing milk for the 'Bombay Milk Scheme'. Under the selfless leadership
of Tribhuvandas Patel, in 1973, Amul celebrated its 25th Anniversary with Morarji
Desai, Maniben Patel and Verghese Kurien.
The cooperative was further developed and managed by Dr. Verghese Kurien with H.M. Dalaya.
Dalaya's innovation of making skim milk powder from buffalo milk (for the first time in the world)
and a little later, with Kurien's help, making it on a commercial scale, led to the first modern dairy
of the cooperative at Anand, which would compete against established players in the market.
Kurien's brother-in-law K.M. Philip sensitized Kurien to the needs of attending to the finer points
of marketing, including the creation and popularization of a brand.
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to
Anand's neighbourhood in Gujarat. Within a short span, five unions in other districts – Mehsana,
Banaskantha, Baroda, Sabarkantha and Surat – were set up, following the approach sometimes
described as the Anand pattern.

In 1970, initiated White Revolution of India, as it help create, Gujarat Co-operative Milk
Marketing Federation Ltd., which now overlooks Amul, in 1973, and today, it is the second best
dairy in India. To combine forces and expand the market while saving on advertising and avoid
competing against each other, the GCMMF, an apex marketing body of these district cooperatives,
was set up in 1973. The Kaira Union, which had the brand name Amul with it since 1955,
transferred it to GCMMF.
In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.
Technological developments at Amul have subsequently spread to other parts of India.
The GCMMF is the largest food products marketing organization of India. It is the apex
organization of the dairy cooperatives of Gujarat. It is the exclusive marketing organization for
products under the brand name of Amul and Sagar. Over the last five and a half decades, dairy
cooperatives in Gujarat have created an economic network that links more than 3.1 million village
milk products with millions of consumers in India. Gujarat Cooperative Milk Marketing
Federation Ltd.
On September 30, 2018, Prime Minister Narendra Modi inaugurated Amul's chocolate plant in
Mogar, Anand near their headquarters.

AMUL BUTTER GIRL
Edited from an article by Mini Varma published in The Asian Age on March 3, 1996
The moppet who put Amul on India's breakfast table 50 years after it was first launched, Amul's
sale figures have jumped from 1000 tonnes a year in 1966 to over 25,000 tonnes a year in 1997.
No other brand comes even close to it. All because a thumb-sized girl climbed on to the hoardings
and put a spell on the masses.
Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old housewife is out
in the balcony drying clothes. From her second floor flat she can see her neighbours on the road.
There are other people too. The crowd seems to be growing larger by the minute. Unable to curb
her curiosity Sheela Mane hurries down to see what all the commotion is about. She expects the
worst but can see no signs of an accident. It is her four-year-old who draws her attention to the
hoarding that has come up overnight. "It was the first Amul hoarding that was put up in Mumbai,"
recalls Sheela Mane. "People loved it. I remember it was our favourite topic of discussion for the
next one week! Everywhere we went somehow or the other the campaign always seemed to crop
up in our conversation."
Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you, from strategically
placed hoardings at many traffic lights. She is the Amul moppet everyone loves to love (including
prickly votaries of the Shiv Sena and BJP). How often have we stopped, looked, chuckled at the
Amul hoarding that casts her sometime as the coy, shy Madhuri, a bold sensuous Urmila or simply
as herself, dressed in her little polka dotted dress and a red and white bow, holding out her favourite
packet of butter.
For 30 odd years the Utterly Butterly girl has managed to keep her fan following intact. So much
so that the ads are now ready to enter the Guinness Book of World Records for being the longest
running campaign ever. The ultimate compliment to the butter came when a British company
launched a butter and called it Utterly Butterly, last year.
It all began in 1966 when Sylvester daCunha, then the managing director of the advertising agency,
ASP, clinched the account for Amul butter. The butter, which had been launched in 1945, had a
staid, boring image, primarily because the earlier advertising agency which was in charge of the
account preferred to stick to routine, corporate ads.
In India, food was something one couldn't afford to fool around with. It had been taken too
seriously, for too long. Sylvester daCunha decided it was time for a change of image.
The year Sylvester daCunha took over the account, the country saw the birth of a campaign whose
charm has endured fickle public opinion, gimmickry and all else. The Amul girl who lends herself
so completely to Amul butter, created as a rival to the Polson butter girl. This one was sexy, village
belle, clothed in a tantalising choli all but covering her upper regions. "Eustace Fernandez (the art
director) and I decided that we needed a girl who would worm her way into a housewife's heart.
And who better than a little girl?" says Sylvester daCunha. And so it came about that the famous
Amul Moppet was born.
That October, lamp kiosks and the bus sites of the city were splashed with the moppet on a horse.
The baseline simply said, Thoroughbread, Utterly Butterly Delicious Amul,. It was a matter of just
a few hours before the daCunha office was ringing with calls. Not just adults, even children were
calling up to say how much they had liked the ads. "The response was phenomenal," recalls
Sylvester daCunha. "We knew our campaign was going to be successful."
For the first one year the ads made statements of some kind or the other but they had not yet
acquired the topical tone. In 1967, Sylvester decided that giving the ads a solid concept would give
them extra mileage, more dum, so to say. It was a decision that would stand the daCunhas in good
stead in the years to come. In 1969, when the city first saw the beginning of the Hare Rama Hare
Krishna movement, Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative
team working on the Amul account came up with a clincher -- 'Hurry Amul, Hurry Hurry'. Bombay
reacted to the ad with a fervour that was almost as devout as the Iskon fever.

That was the first of the many topical ads that were in the offing. From then on Amul began playing
the role of a social observer. Over the years the campaign acquired that all important Amul touch.
India looked forward to Amul's evocative humour. If the Naxalite movement was the happening
thing in Calcutta, Amul would be up there on the hoardings saying, "Bread without Amul Butter,
cholbe na cholbe na (won't do, won't do). If there was an Indian Airlines strike Amul would be
there again saying, Indian Airlines Won't Fly Without Amul.
There are stories about the butter that people like to relate over cups of tea. "For over 10 years I
have been collecting Amul ads. I especially like the ads on the backs of the butter packets, "says
Mrs. Sumona Varma. What does she do with these ads? "I have made an album of them to amuse
my grandchildren," she laughs. "They are almost part of our culture, aren't they? My grandchildren
are already beginning to realise that these ads are not just a source of amusement. They make them
aware of what is happening around them."
Despite some of the negative reactions that the ads have got, DaCunhas have made it a policy not
to play it safe. There are numerous ads that are risque in tone. "We had the option of being sweet
and playing it safe, or making an impact. A fine balance had to be struck. We have a campaign
that is strong enough to make a statement. I didn't want the hoardings to be pleasant or tame. They
have to say something," says Rahul daCunha.
"We ran a couple of ads that created quite a furore," says Sylvester daCunha. "The Indian Airlines
one really angered the authorities. They said if they didn't take down the ads they would stop
supplying Amul butter on the plane. So ultimately we discontinued the ad," he says laughing. Then
there was the time when the Amul girl was shown wearing the Gandhi cap. The high command

came down heavy on that one. The Gandhi cap was a symbol of independence, they couldn't have
anyone not taking that seriously. So despite their reluctance the hoardings were wiped clean. "Then
there was an ad during the Ganpati festival which said, Ganpati Bappa More Ghya (Ganpati Bappa
take more). The Shiv Sena people said that if we didn't do something about removing the ad they
would come and destroy our office. It is surprising how vigilant the political forces are in this
country. Even when the Enron ads (Enr On Or Off) were running, Rebecca Mark wrote to us saying
how much she liked them."
There were other instances too. Heroine Addiction, Amul's little joke on Hussain had the artist
ringing the daCunhas up to request them for a blow up of the ad. "He said that he had seen the
hoarding while passing through a small district in UP. He said he had asked his assistant to take a
photograph of himself with the ad because he had found it so funny," says Rahul daCunha in
amused tones. Indians do have a sense of humour, afterall.
From the Sixties to the Nineties, the Amul ads have come a long way. While most people agree
that the Amul ads were at their peak in the Eighties they still maintain that the Amul ads continue
to tease a laughter out of them. Where does Amul's magic actually lie? Many believe that the charm
lies in the catchy lines. That we laugh because the humour is what anybody would enjoy. They
don't pander to your nationality or certain sentiments. It is pure and simple, everyday fun.
Obituary: The father of the Amul girl passes away
Eustace Fernandes, the creator of the Amul girl, passed away at the age of 75. Fernandes is best
remembered as a cartoonist and an illustrator and was living a retired life for some time. The Amul
moppet has featured in hoardings for almost 43 years, making it the longest running ad campaign

ever in the world. The hoardings displayed one-liners that constituted a veritable commentary on
contemporary political and social events, with each week featuring a new theme
The iconic Amul girl, which turns 43 this year, is all set to enter the Guinness Book of World
Records for being the longest running campaign in the world.
Way back in 1966, the Amul account was given to the advertising agency called Advertising and
Sales Promotion (ASP). The team of Sylvester da Cunha, Eustace Fernandes, Usha Katrak and
Marie Pinto worked on the Amul account at that point of time. The ad became a rage with the
tagline 'Utterly butterly delicious Amul' - and the rest, they say, is history.
Fernandes worked on the Amul account for three years till 1969 and then the team of Usha Katrak,
K Kurian, Eustace Fernandes and Radha started Radeus Advertising in 1974. As a matter of fact,
the word Radeus originated from the first three letters of Radha and Eustace.

ACHIEVEMENTS OF THE “AMUL MOVEMENT”
1. The dairy cooperatives have been able to maintain democratic structure at least at the
grass-root level with the management committee of the village level unit elected from
among the members in majority of the villages.
2. The dairy cooperatives have also been instrumental in bridging the social divide of
caste, creed, race, religion & language at the villages, by offering open and voluntary
membership.
ACHIEVEMENTS OF GCMMF
 3.1 million milk producer member families
 15,760 village societies
 15 District Unions
 9.4 million liters of milk procured per day
 ₹150 million (US$2.73 million) disbursed in cash daily
 GCMMF is the largest cooperative business of small producers with an annual

turnover of ₹53 billion (US$964.6 million)
 The Govt. of India has honoured Amul with the ―Best of all categories Rajiv Gandhi
National Quality Award‖.
 Largest milk handling capacity in Asia
 Largest cold chain network
 48 Sales offices, 5000 wholesale distributors, 7 lakh retail outlets
 Export to 37 countries worth ₹150 crore (US$27.3 million)
 Winner of APEDA award for eleven consecutive years.

THE AMUL BRAND
GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50
sales offices spread all over the country, more than 5 000 wholesale dealers and more than 700
000 retailers.
Amul became the world's largest vegetarian cheese and the largest pouched-milk brand.
AMUL is also the largest exporter of dairy products in the country. AMUL is available today
in over 40 countries of the world. AMUL is exporting a wide variety of products which include
Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter
(Ghee) and Indigenous Sweets. The major markets are USA, West Indies, and countries in
Africa, the Gulf Region, and SAARC neighbours, Singapore, The Philippines, Thailand, Japan
and China, and others such as Mauritius, Australia, Hong Kong and a few South African
countries. Its bid to enter the Japanese market in 1994 did not succeed, but it plans to venture
again.
In September 2007, Amul emerged as the leading Indian brand according to a survey by
Synovate to find out Asia's top 1000 Brands.
In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector in The
Brand Trust Report, published by Trust Research Advisory. rediff.com; "India's top 20 brands:
Amul is No. 1"

PRODUCTS
Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti Dahi,
Yoghurt, Buttermilk, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns,
flavoured milk, basundi, Amul Pro brand and others. Amul PRO is a recently launched
brown beverage just like bournvita and horlicks offering whey protein, DHA and
essential nutrients to kids along with its chocolatty taste. In January 2006, Amul launched
India's first sports drink Stamina, which competes with Coca Cola's Powerade and
PepsiCo's Gatorade. Amul also offers mithaimate which successfully competes with
milkmaid by nestle by offering more fat % at lower price.
In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product
offering in the milk products segment. Other Amul brands are Amul Kool, a low calorie thirst
quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee and India's first sports
drink Stamina.
Amul's Icecreams are made from milk fat and thus are icecreams in real sense of the word,
while many brands in India sell frozen desserts made from vegetable fat. Amul cares for its
consumers and tries to offer them the best products at best price.
Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation

Marketing Award for 2007

CORPORATE SOCIAL RESPONSIBILITY HELD BY AMUL
Corporate social responsibility (CSR) has been defined as the ―commitment of business to
contribute to sustainable economic development working with employees, their families, the
local community, and society at large to improve their quality of life, in ways that are both
good for business and good for development.‖
To meet with the CSR it is expected that a business in its entire procurement- production-
processing-marketing chain should focus on human development involving the producer,
the worker, the supplier, the consumer, the civil society, and the environment.
Indeed, a very tough task. Most businesses would certainly flounder in not being able to achieve
at least one or many of those expectations. But AMUL has shown the way.
CSR-sensitive Organisational Structure
AMUL is a three tier co-operative organisation. The first tier is the co-operative society at
the village,of which; milk producers are voluntary members, managing the cooperative
through a democratically elected 9-member managing committee, and doing business by
purchasing milk from members and selling it to the district level cooperative. There are
more than 11,000 co-operatives in villages of Gujarat.
The second tier is the district co-operative that processes milk into milk products, markets
locally and sells surplus to the state co-operative for national and international marketing.
There are 12 district co-operatives each being managed by a 15-member board elected by
the college comprising the nominated representatives or chairmen of the village co-
operatives.
Third tier is the state level co-operative - the Gujarat Co-operative Milk Marketing
Federation (GCMMF) responsible for national and international marketing of milk and milk
products produced and sold to it. The GCMMF is managed by the board democratically
elected by and from amongst the chairmen of the district co-operatives.
The entire three-tier structure with the GCMMF at its apex, is a unique institution because it
encompasses the entire chain from production of raw material to reaching the consumer with

the end product. Every function involves human intervention: 23.60 lakh primary milk
producers; 35,000 rural workmen in more than 11,400 village societies; 12,000 workers in
15 dairy pla-nts; 750 marketing professionals; 10,500 salesmen in distribution network and
600,000 sal-esmen in retail network. Accu- mulation of human capital is sine qua non for
the development and growth of any enterprise or economy. The GCMMF is sensitive
towards CSR. It believes that technology and capital are replicable inputs but not the human
capital. Since men are the basis for achieving the CSR, the GCMMF lays emp-hasis on their
development into competent, courteous, credible, reliable, responsive communicators and
performers.
CSR-sensitive Business Philosophy
The first step towards discharging the CSR is the business philosophy of the GCMMF. It is
two-fold: one, to serve the interests of milk producers and second, to provide quality products
to consumers as value for money. Evolution of an organisational system has ensured that the
corporate social responsibility towards the primary milk producers, village and the ecological
balance is fulfilled. The milk producers are paid for their milk in accordance with market
forces and realisation of value for their produce. Invariably the price paid to the member-
producers in Gujarat is higher by 15 per cent than the national average.
CSR-orientation To Distributors & Retailers
The GCMMF has identified the distributors and retailers are its important link in its vendor
supply chain. Through surveys the GCMMF found that 90% of the distributors do not get any
opportunity of exposure to latest management practices. The GCMMF realised that it was a
corporate social responsibility to strengthen the core business processes of its distributors so
as to keep them in mainstream business and compete with those with formal training in
management. The GCMMF has developed and trained all its distributors through Value-
Mission-Strategy Workshops, competence building, Amul Yatra, Amul Quality Circle
meetings, computerisation, and electronic commerce activities.
Competency Building Module of the GCMMF is meant to infuse professional selling skills by
making the distributors and their salesmen aware of latest sales management tools and
techniques; enhance their knowledge of products; positioning and segmentation strategies for

various products. Under Amul Yatra the distributors and their salesmen are taken on a visit to
Anand. During this visit they are shown dairy plants, their upkeep, international standards of
hygiene and quality; the practices adopted for clean milk production, and above all the
cooperative philosophy. Through one to one talk with the farmers, the distributors and salesmen
realise AMUL is a large business of small farmers. The visit leaves an everlasting impression
on their minds that by selling AMUL products, they are discharging a social responsibility
towards a large number of poor farmers whose livelihood depends upon their skill and integrity.
They feel proud that they are participants in development of rural society and thus in nation
building.
Earnings of GCMMF
Nurturing its primary members - the milk producers - is the first mission of the GCMMF.
Discharge of this responsibility is reflected in the manner in which the GCMMF conducts its
business and shares its earnings. The milk from the village co-operatives is purchased at an
interim price. So as to maximise the earnings of the milk producers the GCMMF changes the
product profile during the fiscal and directs its sales and marketing activities towards those
products that would bring in maximum returns. True! Every business organisation follows
the same principle. But the GCMMF follows it with the central interest of the producers.
During the fiscal, as the GCMMF finds that from its earnings it is possible to pay more to the
producers for milk, the final price is declared higher than the interim price being paid. Before
the GCMMF closes its financial accounts the co-operatives are paid ‘price difference‘, the
amount between the interim price and the final price. Thus profit of the GCMMF is very low.
The net profit (PADT) of the GCMMF during 2003-04 was Rs 7.31 crore against a turnover
of Rs 2,947 crore, a meagre 0.25%. Further out of the net profit of Rs 7.31 crore, Rs 4 crore
was given as share dividend to the co-operatives. To fulfill its corporate social responsibility
towards its milk producers and co-operatives the GCMMF works on razor thin profits and
retention of funds.
CSR-oriented To Staff
The GCMMF hires and trains people to take advantage over its competitors. It has developed
in-house modules for training and competence building to improve and up grade of their
knowledge; communication skills to understand the customer, be responsive to customer
requirements, and communicate clearly for trouble shooting of problems. They are expected
to be courteous, friendly, respectful, and considerate to the customer. To improve the
credibility and trustworthiness of the managers it is important they perform consistently and
accurately every time and at all times. The structure of salary and perquisites is altogether
different. The first and foremost the staff must get satisfaction from the job they. They are
recognised for their contribution (Climate Survey) CSR-AMUL WA

AMUL RELIEF TRUST
A devastating earthquake (Richter scale – 7.9) hit Gujarat on 26th January 2001. The epicenter
of the quake was located in Kutch district. It caused death of thousands of people, tens of
thousands were injured, hundreds of thousands were rendered homeless and damage of billions
of Rupees was done.
GCMMF formed a specific organization named "Amul Relief Trust" (ART) under the
Chairmanship of Dr. V. Kurien in 2001 with a donation of Rs. 50 Millions for reconstruction
of the school buildings damaged in the 2001 earthquake in the Kutch area.
The Trust reconstructed 6 schools damaged by the above earthquake at a cost of Rs.41.1
millions in Kutch area. Four of these schools started re-functioning from the last two academic
sessions and the other two schools from the current session.
A school reconstructed by Amul Relief Trust in the earthquake affected Ratadia

Village in Mundra Taluka of Gujarat
A school reconstructed by Amul Relief Trust in the earthquake affected Nana

Asalia Village in Mundra Taluka of Gujarat.
A school reconstructed by Amul Relief Trust in the earthquake affected Devpar

Village in Mandvi Taluka of Gujarat
A school reconstructed by Amul Relief Trust in the earthquake affected Toda

Village in Mundra Taluka of Gujarat
A school reconstructed by Amul Relief Trust in the earthquake affected Moti

Bhadai Village in Mandvi Taluka of Gujarat
A school reconstructed by Amul Relief Trust in the earthquake affected Kathada

Village in Mandvi Taluka of Gujarat

CSR ACTIVITIES BY AMUL
1. TREE PLANTATION
GREEN GUJARAT TREE PLANTATION CAMPAIGN BY MILK

PRODUCERS OF DAIRY COOPERATIVES
Amul Coops plant more than 311.98 lakhs trees
Milk Producer members of Gujarat Dairy Cooperatives- better known as AMUL have been
celebrating the nation's Independence Day in a novel manner by planting lakhs of saplings
across Gujarat and have taken up an ambitious plan to save the environment by planting trees,
making India green and thereby reducing the effects of global warming. The milk producers
of Gujarat Dairy Cooperatives are conducting mass tree plantation drive every year on
Independence Day for last five years. In last five years (2007 to 2011) the milk producers
have planted around 311.98 lakhs trees). The most striking feature of these entire programmes
was that it has been initiated by milk producer members of the dairy cooperatives. The unique
fact about the programme was that the milk producer members took up the oath to protect tree
saplings till it survives and grows into tree.
Over the years, due to intensive agriculture and dairying various natural resources are getting
consumed at faster pace in Gujarat state of India. The state level apex body of dairy farmers
in Gujarat gave a serious thought in this direction and discovered a novel idea for giving back
to nature. The idea was "one member one tree" plantation on our 60th Independence day -
15th August 2007.To put this idea in to the practice a design team constituting of
representatives of member unions were formed. The team accepted the idea by heart and
immediately decided to spread it among farmer members of village dairy cooperative
societies. Then the idea was communicated to farmer members and they all welcomed it and
enthusiastically agreed to implement the idea.
For smooth implementation of the idea, the design team chalked out the road map for various
activities. Execution teams were formed at district union level to give final shape and put the
plan in action. Village level coordinators were identified and they were trained to streamline
activity of tree plantation. Various awareness materials were prepared. Through various

communication media farmer members were made aware of benefits of tree plantation and
tree plantation activity schedule
The entire plantation activity was coordinated at all the three tiers of Anand pattern - at village,
district and state level dairy cooperatives. On 15th August, 2007, after the flag hoisting
ceremony, each member took an oath to plant saplings and ensure that they grew in to trees.
Then individually they planted sapling on their own at their identified locations like their farm,
near their home, on Farm bunds, etc. They have taken necessary care to ensure that this sapling
survives and they also reported regarding the survival to village level coordinator and district
milk unions after five months. In this way, 18.9 lakh trees were planted on 15th August 2007.
This was just the beginning. Henceforth, the Village Dairy Cooperative Societies of Gujarat
as a mark of respect for our nation decided to conduct such event on every Independence Day
and accepted 15th August (Independence Day) as a "Green Revolution Day by
Afforestation to Protect Mother Earth from Pollution, Climate change and Global
Warming".

But all this required immaculate planning and execution. An action plan of tree plantation
programme was drawn up months back in advance. After the identification of the chief
coordinator for each district milk union, the organization of a task force for the programme
was put in place. Roles and responsibilities were assigned to each member and area of
operation allocated. After preparing the overall action plan, each union issued a circular to the
Dairy Cooperative Societies regarding the programme andarranged meetings with the
societies covered. At the village level, coordinators were identified in respect of the villages
to be covered and the number of saplings required. Along with logistical arrangements direct
contact was established with different agencies for receipt of saplings. Pointwise methodology
for implementation of tree plantation programme on such a mass scale is as following.

2. BLOOD DONATION
Amul in association with the Indian Red Cross Society aim to inspire, encourage and initiate
humanitarian services to minimize, alleviate and prevent human suffering at all times to
contribute for “Humanity to Peace”. Towards this objective Amul initiated blood donation
campaign since 1987. Blood donation camps are organized regularly in rural areas through
Village Dairy Co-operative Societies. Similarly camps are organized in Amul Dairy Campus
wherein employees and their family members join in donating blood. In addition, Amul
organizes donation of blood on emergency. Amul has made a trend in donating blood to the
society.

3. AMUL SCHOLER
1. Amul Scholarships: To encourage outstanding children of farmers in pursuing higher

studies Amul introduced scholarship schemes in 1992. The children are given
scholarships for pursing Diploma, Graduation, Post-Graduation and Doctorate. Every
year the outstanding children are identified from the villages and scholarships are
provided to fulfill their dream of achieving academic excellence. This effort has
motivated greatly children to excel in their studies and spread education in rural areas
2. Amul Scholar Felicitation Programme: Annually Amul felicitate outstanding

children of employees who have secured highest marks in 10th, 12th standards and
Gold Medalist in graduation. Amul Scholars’ Felicitation Programme was initiated in
2004 and has facilitated many outstanding students of Amul family
3. Amul Vidya Shree & Vidya Bhushan: Amul’s vision is to see an educated, talented
and strong youth in a developed India of the future and thereby contribute towards
nation building. We at Amul believe that the sound education of its youth is the
foundation of every state. Hence it is the most basic constituent for a developing nation
like ours. Towards this philosophy, Amul Vidyashree & Vidyabhushan Awards have

been instituted to recognize the brilliance of the students across India as well as the
quality of education & guidance imparted by the schools they study in. The inception
of these awards dates back to 2004-05
The Awards recognize the academic brilliance of Class 10th and 12th top merit rankers across
India and the quality of education and guidance imparted by the schools they study in and
thereby encourage the spirit of enlightenment among today’s youth. In the first year of the
Award Foundation, Amul honored 500 students in Gujarat and other parts of India. In the
second year it acknowledged further 2267 students across schools in India. Moving ahead
(2006-07) Amul instituted Amul Vidya Bhushan” awards to recognize the toppers of Std 12th
examination also. The pan India details on these Awards are available in the following links.
It is India’s first of its kind award that recognizes and rewards brilliant minds of India. By
winning this award, not only the student gets recognized, but it also help the schools to enhance
their image as an academy that imparts quality education, worth emulating by others.

4. RURAL SANITATION PROGRAM
Amul Dairy has launched a novel scheme for total rural sanitation and set a target for
itself whereby not a single milk producer will attend to nature’s call in the open. The
Dairy with the support of District Rural Development Agency (DRDA) will provide
interest free loans to its milk producers in Anand and Kheda districts to set up ‘pucca’
toilet blocks, which will not only help women milk producers avoid embarrassment but
will also ensure hygiene.
‘In five years’ time, dairy wishes to achieve the target of providing 100 per cent toilet
facilities in all villages where Amul has a milk society.
The mission is not just about bringing a cultural change by imbibing good habits among
milk producers but also targeted towards encouraging hygienic practices in the milk
supply chain.
5. Amul has prepared a model low-cost toilet block that costs Rs.11,500 per unit. While
DRDA will support this initiative through subsidy ranging between Rs.4500 and
Rs.4600 for BPL/APL families, Amul will provide its members an interest free loan

worth Rs.4300 returnable in four years’ time. A member can pay up this loan by getting
Rs.100 per month deducted from his/her bill.
4. DAIRY DEMONSTRATION FARM
As part of Amul’s continuous effort to improve the socio-economic conditions and livelihood
of dairy farmers, Amul has come out with various schemes to increase cattle holding per farmer
thereby their income.
A Dairy Demonstration Farm (DDF) has been set up at Mogar to demonstrate scientific

methods of dairy farming. The project envisages encouraging the farmers to use high yielding
animals and modern aids to increase milk production
The Union provides technical support to milk producers on Scientific Animal Husbandry
practices and also facilitates loan disbursement from banks to the needy by guaranteeing the
loan repayment on behalf of farmers. The Dairy Demonstration Farm is generating
overwhelming interest in milk producer members because of its success and viability
So far, under various schemes, thousands of farmers are covered to increase the cattle holding
size from small to medium size

5. Swarnjayanti Gram Swarozgar Yojana (SYSG)
Amul in its continued endeavor to improve the socio-economic conditions of rural people
extended its expertise in implementation of the Swarnjayanti Gram Swarozgar Yojana (SGSY)
of The Government of India (Ministry of Rural Development) on their Special Project on
“Improving Socio-economic Conditions of BPL Families of Kheda District through Animal
Husbandry and Dairying” – DAIRYING AS A TOOL FOR POVERTY ALLEVIATION.
The Swarnjayanti Gram Swarozagar Yojana is a holistic self-employment programme for the
rural poor of India. The basic objective of the programme is to bring below poverty line families
above poverty line by providing them in generating assets to become self-employed. The
purchase of assets is facilitated through a mix of government subsidy and bank credit.
It is a holistic self-employment programme as it supports all facets of self-employment like
organizing them into Self Help Groups, helping them in selection of key activities, building
their capacities, providing them appropriate training and exposure, building infrastructure,
introducing them to new technology, and providing them marketing support. The programme
is implemented through District Rural Development Agencies (DRDAs) with active

involvement of Panchayati Raj Institutions, banks, line departments of the Government and
development institutions.
Amul has covered under this programme more than 8,755 beneficiaries to whom milch animals
were distributed in the District of Kheda and stood as guarantor for the bank loans. These
beneficiaries were then given membership of dairy co-operatives in order to bring these poor
households into mainstream economy by transforming dairying into active income-generation
enterprises. As part of this programme 12,647 women and men were trained in dairy husbandry
in addition to construction of number of cattle sheds, development of green fodder plots,
distribution of chaff cutters and stainless steel cans.
To provide ground water availability, 56 bore wells were dug. More than 50 mobile Artificial
Insemination units are pressed in operation for these farmers to deliver services at the doorstep.
A Mobile Diagnostic Laboratory has also been put in operation to provide effective health
services along with round the clock service of veterinary doctors. This initiative has
considerably helped in improving the socio-economic conditions and quality of life of a large
number of BPL families.

Point wise Methodology of execution of programme is as following:
1. Member Unions were informed about the programme and channels of

procurement of saplings, almost six month before to scheduled date of programme.
2. Continuous follow up were taken from the member unions about the status
of activities planned for the programme.
3. A meeting on tree plantation programme was held at GCMMF Ltd., Anand

almost a month ago in which status of action plan was each Member Union was
discussed at length.
4. Milk Unions identified the coordinator for the programme and organized a task
force for the successful implementation of the programme. The coordinator at
Milk Union level chalked out overall action plan for the programme and
assigned roles and responsibilities and area of operation to each member of task
force.
5. Milk Unions (MUs) issued circular to their respective VDCSs (Village Dairy
Cooperative Societies) mentioning the entire activity and procedure planned for
the celebration of the programme. In circular details for milk producer members
to make necessary preparations like deciding the place, digging the pit, taking
care of saplings etc. well in advance were also provided. The circular was placed
on notice board of VDCSs.
6. MUs task force members contacted & communicated about the concept to VDCS
and identified the village level coordinator and assigned them roles and
responsibilities.
7. MUs Coordinator properly explored and communicated the saplings

acquiring sources/nursery details to VDCSs. They also ensured that saplings
reach the VDCSs before 3 days.
8. A press note was prepared by the coordinator of the programme at MU level and
which were given in the newspapers on a day before tree plantation to boost
morale of producer members and mentally prepare them for the execution of
programme on next day.
9. At time of handing over the saplings to members from VDCS, the producer
members took oath to protect the saplings and accepted the responsibility for
successfully growing the sapling into tree.
10. On 15th August, after the milk collection process, at a predecided time sirens at
VDCSs were sounded or other means like beating Thali/utensil, loudspeaker etc.
were used to facilitate the gathering producer members in time at predecided
place in the village for celebration of Independence Day in VDCS premises,
common plot, school etc. After flag hoisting ceremony, the tree plantation
activity was executed by the producer members.
11. In many villages the milk producer members planted the trees after performing
the Puja (worship) of saplings before planting them.
12. To add fervour and enthusiasm in the programme at many places the Chairman,
Managing Director and Board of Directors of Member Unions participated in
the programme.
13. Next day after the programme on a post programme press note was prepared
giving details of the programme celebrations along with photographs. Similar
such notes were published in house magazines/ newsletters.
14. After the completion of the programme the MU's were asked to submit the report
on tree plantation activity.
15. MUs conducted survey after 5 months to find out the survival rate of
sapling under the programme.
First tree plantation programme (15th August, 2007) was carried out on "one member, One
tree" basis. Second tree plantation programme (15th August, 2008) in which around 52.74
lakhs tree were planted was conducted on "one member three tree" basis.
In year 2009 and in year 2010, in mass tree plantation programme around 84.24 and 83.5
lakhs tree saplings were planted respectively. The programme was conducted on "One

member, Five tree" basis. Further, this year 2011 around 72.6 lakhs trees were planted,
the programme was carried out as per the same process and procedures followed in last year.
Hence, in last five years, milk producers of GCMMF planted around 311.98 lakhs tree
saplings in 21 districts of Gujarat. By doing so, milk producers of Gujarat Dairy
Cooperatives have shown their concern, awareness and commitment for betterment of
environment.Yearwise details of tree plantation and survival of tree saplings planted is as
under.
Sr. Year of tree No. of trees planted No. of trees Survived Survival
No plantation (in lakhs) (in lakhs) percentage
1 2007 18.90 11 58
2 2008 52.74 26 49
3 2009 84.24 38 45
4 2010 83.5 39 47
5 2011* 72.6 34 47
Total 311.98 148.122 47
*estimated (as survey for survival percentage of the saplings planted in year 2010 is
ongoing)
According to statistics of Forest Survey of India considering on an average 30-40 cm diameter

of these trees, 106 trees would provide one hectare of green tree cover. Considering 47%
survivability of planted trees (based on post plantation survey data, around 148.12 lakhs out
of 311.98 lakhs tree planted survived during last five years), when they fully grow up, would
provide additional 1,39,735 ha. of green cover which is additional 6.41 percent forest cover
of Gujarat State of India.

ACHIEVEMENTS
This effort to provide green cover to the earth was also acknowledged when the state level
apex body of Gujarat Dairy Cooperatives - GCMMF received four successive prestigious
"SRISHTI's G-Cube Award"-2007, 2008, 2009 and 2010 for Good Green Governance
in the "Service Category".
Further, "Amul Green" movement has also been awarded by International Dairy Federation
for best environment initiative in the "sustainability category" during the 4th Global Dairy
Conference held at Salzburg Congress Center, Austria on 28th April, 2010.
It has been estimated that when one tree is cut, in monetary terms there is loss or Rs. 33 lakhs
(Oxygen worth of Rs. 5.3 lakhs, Land Fertility of Rs. 6.4 lakhs, Rs. 10.5 lakh for reduction of
pollution of atmosphere and Rs. 5.3 lakh towards Flowers / Fruits and habitation to birds -
animals). But the benefits that accrue to mankind when a tree is planted cannot be measured
in money and is priceless. The producer members of GCMMF have really set an example for
all the cooperatives and other institutions to turn India green in the era of Global warming and
environmental crisis.
When 3 million dairy farmers of Gujarat have planted more than 311.98 lakh trees in just five
years and are planning to plant more trees every year, they are doing an invaluable - truly
Amul - service to the society. In an era of global warming, Amul is contributing its share in

making Gujarat lush green. In this way, the milk producers of Gujarat are ushering in a silent
revolution of greening Gujarat.

CONCLUSION
Corporate social responsibility (CSR) encourages businesses accountability to a wide range
of stakeholders, shareholders, and investors.
The key are of concerns are the environment protection, and the social wellbeing of people in
society, both now and in the future.
CSR has a variety of policies such as giving to organization, providing products and services
to consumers, reducing harmful waste, and treating their employees with moral ethics.
Corporate social responsibility is the best thing that was implemented into businesses both
large and small, in this was the environment and society can be treated the way it supposed
to, with respect.
CSR is something that everyone can benefit from, when businesses adopt its policy.
Corporate had moved ahead to a really new level to fulfill their social responsibility which
not only help the society but also to these companies to make a reputation in the society.
The expectations from private sector regarding CSR is very high in the future.
In the present scenario companies play an important role in the growth and development of
the nation.They should be encouraged and motivated to contribute more.

REFERENCES
 www.amul.com
 www.wikipedia.com
 www.india-briefing.com

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PROJECT REPORT ON CORPORATE SOCIAL

RESPONSIBILITY OF AMUL- THE TASTE OF INDIA

The voluntary compliance of social and ecological responsibility of companies is called

Corporate social responsibility is basically a concept whereby companies decide voluntarily to

Sahyadri Institute of Management And Research, Sawarde 1

Sahyadri Institute of Management And Research, Sawarde 2

Sahyadri Institute of Management And Research, Sawarde 3

A BRIEF HISTORY OF CORPORATE SOCIAL RESPONSIBILITY

Sahyadri Institute of Management And Research, Sawarde 4

CSR LAWS IN INDIA

 Annual net profits of the company should be at least Rupees 5 crores.

The responsibilities of the above-mentioned committee will be[11]:

 It will be responsible for overseeing the execution of different CSR activities.

NEED OF CSR LAWS

FEATURES OF CSR LAWS

Sahyadri Institute of Management And Research, Sawarde 6

CSR activities listed in schedule VII include:

“eradicating hunger and poverty, promotion of education and employment, livelihood

CSR activities should follow the below-mentioned rules:

 Any sort of contribution-fiscal or otherwise by political organizations is outside the

 All CSR activities are to be conducted in Indian territory to be considered valid.

Sahyadri Institute of Management And Research, Sawarde 7

 Companies can utilize a maximum of 5 percent of their total expenditure to help in

 Companies are allowed to engage in capacity building by allotting up to 5 percent of all

Activities that cannot be considered as CSR include:

 Operational and administrative activities of the business.

 CSR activities that do not take place in Indian territory.

Sahyadri Institute of Management And Research, Sawarde 8

Sahyadri Institute of Management And Research, Sawarde 9

1) Organizations understanding their role in developing a society and

Sahyadri Institute of Management And Research, Sawarde 10

Integral strategies in ensuring substantive long-term results include:

Sahyadri Institute of Management And Research, Sawarde 11

i) Support t o Technical /Vocational Institutions for their self -development.

iii) Adult literacy amongst those belonging to BPL.

iv) Awareness Programmers on girl education.

viii) Promotion of Professional Education by setting up educational Institutions offering courses

ix) Medicine and in Technical subjects etc.

2. Water Supply including Drinking Water:

i) Installation/Repair of Hand Pumps/Tube Wells.

ii) Digging/Renovation of Wells.

iv) Development/construction of Water Tank/Ponds.

v) Rain water-harvesting scheme.

3. Health Care organizing, health awareness Camps on

i) AIDS TB and Leprosy

ii) Social evils like alcohol, smoking, drug abuse etc.

iii) Child and Mother care

iv) Diet and Nutrition.

v) Blood donation camps.

vi) Diabetics detection & Hypertension Camps

vii) Family Welfare.

viii) Senior Citizen Health Care Wellness Clinics.

ix) Fully equipped Mobile Medical Vans.

x) Tele medicine xi) to supplement the different programme of Local/State Authorities.

xii) Along with De addiction centers

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i) Organizing sensitizing programmes on Environment Management and

ii) Pollution Control.

iii) Green belt Development

iv) A forestation, Social Forestry, Check Dams, Park.

v) Restoration of mined out lands.

vii) Plantation of saplings producing fruit. viii) Animal care.

iii) Training may be provided by agricultural experts for above farming.