Amul CSR - MMS Sem 4 Report 1 - Content
Amul CSR - MMS Sem 4 Report 1 - Content
Amul CSR - MMS Sem 4 Report 1 - Content
1
Introduction on Amul the Taste of India
Amul is an Indian dairy cooperative, based at Anand in the state of
Gujarat, India. Formed in 1948, it is a brand managed by a cooperative body,
the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which
today is jointly owned by 3.6 million milk producers in Gujarat. Amul is
actually the abbreviated form of Anand Milk Union Limited.
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 ventured into markets overseas.
2
Vision
Amul’s vision is to provide more and more satisfaction to the farmers,
employees and distributers.
3
Mission
“We at GCMMF (Gujarat Co-operative Milk Marketing Federation)
endeavour to satisfy the taste and nutritional requirements of the customers and
of the world, through excellence in marketing by our marketing team. Through
co-operative networking, we are committed to offering quality products that
provide best value for money”.
4
List of Amul Products
Bread spreads:
Amul Butter
Amul Lite Low Fat Bread spread
Amul Cooking Butter
Delicious Margarine
Pure Ghee:
Milk Powders:
Amul Mithaimate
Weets:
5
Fresh Milk:
Curd Products:
Amul Ice-creams:
Vanilla Royale
Royal Treat Range (Butterscotch, Rajbhog, Malai Kulfi)
Nut-o-Mania Range (Kaju Draksh, Kesar Pista Royale, Fruit Bonanza,
Roasted Almond)
Nature's Treat (Alphanso Mango, Fresh Litchi, Shahi Anjir, Fresh
Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)
Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone,
Chococrunch, Megabite, Cassatta)
Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake
Magic)
6
Amul SUGAR FREE Frozen Foods (Milk Based Sweet)
Amul ProLife Probiotic Ice cream
Brown Beverage:
Milk Drink:
Health Beverage:
7
Objective of the study
8
History
Over seven decades ago the life of a farmer in Kaira was very much like
that of farmers anywhere else in India. His income was derived almost entirely
from seasonal crops. Many poor farmers faced starvation during off-seasons.
Their income from milch buffaloes was undependable. The milk marketing
system was controlled by contractors and middlemen. As milk is perishable,
farmers were compelled to sell their milk for whatever they were offered. Often,
they had to sell cream and ghee at a throwaway price.
They were in general illiterate. But they could see that the system under
which contractors could buy their produce at a low price and arrange to sell it at
huge profits was just not fair. This became more noticeable when the
Government of Bombay started the Bombay Milk Scheme in 1945. Milk had to
be transported 427 kilometres, from Anand to Bombay. This could be done only
if milk was pasteurized in Anand.
9
Sardar Patel reiterated his advice that they should market their milk
through a co-operative society of their own. This co-operative should have its
own pasteurization plant. His advice was that the farmers should demand
permission to set up such a co-operative. If their demand was rejected, they
should refuse to sell their milk to middlemen.
Sardar Patel pointed out that in undertaking such a strike there should be
some losses to the farmers as they would not be able to sell their milk for some
time. If they were prepared to put up with the loss, he was prepared to lead
them. The farmers’ deputation readily accepted his proposal.
Sardar then sent his trusted deputy, Mr. Morarjibhai Desai, to Kaira
District to organize milk co-operative – and a milk strike if necessary. Mr.
Desai held a meeting in Samarkha village on January 4, 1946. It was resolved
that milk producers’ co-operative societies should be organized in each village
of Kaira District to collect milk from their member-farmers. All the milk
societies would federate into a Union which would own milk processing
facilities. The Government should undertake to buy milk from the Union. If this
wasn’t done, the farmers would refuse to sell milk to any milk contractor in
Kaira District.
The Government turned down the demand. The farmers called a ‘milk
strike’. It lasted 15 days. Not a drop of milk was sold to the milk merchants. No
milk reached Bombay from Anand, and the Bombay Milk Scheme almost
collapsed. After 15 days the milk commissioner of Bombay, an Englishman,
and his deputy visited Anand, assessed the situation and accepted the farmers’
demand.
10
producers of the district. The Union began pasteurizing milk in June 1948, for
the Bombay Milk Scheme – just a handful of farmers in two village co-
operative societies producing about 250 litres a day.
The only remedy was to set up a plant to process the extra milk into
products like butter and milk powder. The logic of this step was readily
accepted by the Government of Bombay and the Government of India, except
for a few doubting Thomases. The government of India helped the Union to get
financial help from UNICEF and assistance from the Government of New
Zealand under the Colombo Plan. Technical aid was provided by F.A.O. A
Rs.50 – lakh factory to process milk powder and butter was blueprinted. Its
foundation stone was laid by the then President of India the late Dr. Rajendra
Prasad on November 15, 1954. The project was completed by October 31, 1955,
on which day the late Pandit Jawaharlal Nehru, the then Prime Minister of
India, declared it open. The new dairy provided a further fillip to the co-
operative movement among milk producers. The union was thus enabled to
organize more village co-operative societies and to handle more and more milk
each year. This event also brought a breakthrough in dairy technology as the
products were made processing buffalo milk for the first time in the world.
11
Kaira Union introduced the brand “Amul” for marketing its product range. The
word “Amul” is derived from Sanskrit word ‘Amulya’ which means ‘priceless’
or precious’. In the subsequent years Amul made cheese and baby food on a
large commercial scale again processing buffalo milk creating a history in the
world.
12
Leadership
He arrived in Anand on Friday, the 13th May 1949. His only intention at
that time was to obtain a release from his bond and get out of Anand as quickly
as possible. At the end of 1949, when he got relieving order from his job from
13
the Government Creamery, he was all set and eager to pack off to Mumbai. Shri
Tribhuvandas Patel, the then Chairman of Kaira District Co-operative Milk
Producers Union (popularly known as Amul).
14
funds mobilized from foreign food donations. Producers’ co-operatives were the
central plank of the project that sought to link dairy development with milk
marketing.
Even after Operation Flood-III came to a close more than 10 year back, rural
milk producers continue to receive remunerative income for the milk they
supply to the village dairy cooperative. Our consumers are assured that quality
milk is always available at reasonable prices. The village dairy co-operatives
and the federal bodies continue to submerge the artificial distinctions of caste,
religion and politics by continuing with the co-operative way of life.
15
from the U.S. apart from innumerable awards and recognition from across the
world. Awards are important points of recognition during one’s lifetime, but his
work has touched the lives of millions of Indians every day, every morning and
evening. Dr. Kurien is the undisputed ‘Dudhwalla’ of India.
Dr. Kurien’s innovative mind and leadership has been harnessed not only
in dairy development, but also in other spheres. Following the White
Revolution, the Government brought other primary commodities like edible
oils, fruits and vegetables under his care. The cooperative umbrella was
extended to the growing of trees and even to salt farming.
16
work for the nation’s farmers, Dr. Kurien established the Institute of Rural
Management (IRMA) at Anand in 1979. IRMA was initially set up to provide
management training and research support to the cooperatives being established
all over the country. Over the years, this has been expanded to cover more
sectors like oilseeds, fruit, vegetables, forestry, etc.
17
What is CSR?
Corporate social responsibility (CSR, also called corporate conscience,
corporate citizenship or responsible business) is a form of corporate self-
regulation integrated into a business model. CSR policy functions as a self-
regulatory mechanism whereby a business monitors and ensures its active
compliance with the spirit of the law, ethical standards and national or
international norms.
18
of the relationship between social and financial performance, concluding that
the contradictory results of previous studies reporting positive, negative, and
neutral financial impact, were due to flawed empirical analysis and claimed
when the study is properly specified, CSR has a neutral impact on financial
outcomes.
19
Definition of CSR
Most definitions describe CSR as a concept whereby companies integrate
social and environmental concerns in their business operations and in their
interaction with their stakeholders on a voluntary basis. (CEC: Green Paper
for Promoting a European Framework for Corporate Social
Responsibility)
20
CSR Origin and Development in India
The concept of CSR has been imbibed in Indian society from the very
beginning. Gandhi’s philosophy of trusteeship is similar to CSR of the modern
world; companies like TATA and BIRLA have been imbibing the case for
social good in their operations for decades long before CSR become popular
cause. The avid interest in community welfare among the Tata Group dates
back to the 1860s when the company was founded by Jamshedji Tata. This
explains why nearly two-thirds of the equity of Tata Sons, the Tata Group's
promoter company, is held by philanthropic trusts, which have created a host of
national institutions in science and technology, medical research, social studies
and the performing arts.
21
Over the years CSR has gained importance in India as companies are
realizing the importance of investing in CSR for achieving benefits of creating
shareholder value, increased revenue base, strategic branding, operational
efficiency, better access to capital, human and intellectual capital and lower
business risk. CSR has emerged as an effective tool that synergizes the efforts
of Corporate and the social sector towards sustainable growth and development
of societal objectives at large.
An insight into the history of CSR reveals that till 1990s it was solely
dominated by the idea of philanthropy. Considering CSR as an act of
philanthropy, businesses often restricted themselves to one time financial grant
and did not commit their resources for such projects. Moreover, businesses
never kept the stakeholder in mind while planning for such initiatives, thereby
reducing the efficacy and efficiency of CSR initiatives. However, over the last
few years, the concept of CSR has been changing.
Today, the corporate world has just started seeing the opportunity to help
solve the problems CSR addresses. Private Sector has come out in favour of
22
social responsibility and demonstrated their support for the Government’s
commitment to provide greater economic opportunities to the disadvantaged.
Policy Initiatives
Realizing the role that can be played by corporate sector in addressing some of
the glaring problems of a developing nation like India, ministry of corporate
affairs (MCA) is expecting a fund flow of more than Rs 10,000 crore a year
from private companies for social welfare initiatives as part of their CSR after
Parliament clears the Companies Bill. Once the legislation is ratified by
Parliament, India would become the first country to mandate CSR through a
statutory provision. According to the proposal, it will be mandatory for private
firms to earmark 2% of their average net profit for CSR initiatives. The
government wants corporate houses to spend the sum in social sectors such as
education and health rather than involving themselves in individual
philanthropy6. MCA’s draft voluntary guidelines on CSR are along global
principles such as ethics and transparency, well-being of employees, human
rights, health and safety, use of environment-friendly raw materials, following
regulatory frameworks and larger engagement of stakeholders.
While the breeding programme was initiated as back as in 1952 with two
Surti bulls from the Kanjari village of Kaira district, visionaries like Dr Kurien,
Father of White Revolution in India, realized that without a scientific and
23
professional approach in management of breeding and animal health care
development cannot take place. As a result of this, a new centre was established
in 1964 and registered the same under Societies Act of 1860 as Amul Research
& Development Association (ARDA).
Its continuous effort has brought milk procurement from a few cans to on an
average procurement of 1.5 million litres per day and in winter peak almost 2
million litres. ARDA has significantly helped in managing the livestock of
farmers thereby their income, livelihood and quality of life.
24
In order to further strengthen its activities, ARDA is in constant touch
with national and international agencies, academicians and researchers and even
provide platform for graduates and postgraduate students to do their research
work to fulfil their academic purpose.
The first Mobile Veterinary Dispensary was flagged off by Late Dr Rajendra
Prasad, then the President of India way back in 1950. Since then Amul has
come a long way in the management of animal husbandry introducing the best
management practices and the services are provided 24 hours today.
Experiencing the best medical service to their cattle, a women in a village of
Anand made a remark that it is better to take birth here as buffalo rather than
human as they are looked after better than them – human.
25
In order to provide 24 hrs services, Amul has today twelve veterinary-
sub-centres with the Head Office at Anand and supported by more than 75
veterinary mobile vans with the best communication system. This programme is
well taken care by a dedicated team of 125 veterinarians.
Amul has further established mobile and static animal disease diagnostic
laboratories at Balasinor equipped with sophisticated equipment’s and
professionals to assist the veterinary services for specific treatment of the ailing
animals. The objective of these facilities is to maximize milk production by
ensuring sustainable sound reproductive and overall health of milch animals of
our milk producers by accurate diagnosis of different diseases of livestock
through doorstep and static diagnostic facilities.
Some of the activities covered under this programme are: Minimize digestive,
metabolic, and infectious diseases; Reduce calf mortality; Immunization
programme to avert outbreak of diseases; Educate the member producers’ about
animal welfare, hygiene, nutrition, management aspects and clean milk
production; Distribution of Saaf Kit pray and Mas-strip to milk producers to
make use of teat spray post milking as daily practice; Sexual health control; Dry
cow therapy; Introduction of milking machine; Impart training for First Aid and
Artificial Insemination; Emergency visit; Animal nutrition and awareness
programme etc.
The dedicated service of Amul to the livestock of farmers have made its
milk procurement area almost free from diseases thereby helped greatly in
augmenting milk production and better return to farmers reducing their
dependency on the seasonal crops for the livelihood. The effort put by Amul to
take care of the cattle stock has helped farmer producers to look after their cows
and buffaloes as a part of family members.
26
Animal Nutrition:
The plant has since then grown in size to become Asia’s largest cattle
feed plant producing more 1100MT of feed daily. Amul has plan to further
expand its capacity in the coming years. Supply of regular balanced cattle feed
has significantly helped farmers to over come economic losses due to health
problems, reduced reproductive efficiency, infertility etc. The plant today
manufactures following products: Amuldan (Bypass Protein Feed), Calf Starter,
Milk Replaced, Mineral Mixer, Medicated Feed, Urea Mineral Molasses Block.
In order that the feeds supplied to the farmers are cost effective raw
materials are procured during seasons from all over India. The following
material form part of various feed manufactured by the plant: Cotton seed
extraction, Groundnut extraction, Sunflower extraction, Rapeseed extraction,
Maize gluten, Maize oil cake, Goar bhardo, Cotton seed oil cake, Mango seed
27
extraction, Palm kernel extraction, De-oiled rice bran, Rice polish fire, Rice,
Jowar, Salt Dicolciom phosphate (D.C.P.), Vitamin AD3, Calcite powder Trace
mineral, Molasses etc.
28
Quality Management System Initiatives
The initiation of Total Quality Management (TQM) way back in 1994
was to work with the well-known quality management initiatives which have
proven to be effective elsewhere to create a culture of transparency, openness
and leadership in the organization. Realizing that with emerging competition,
doing business would become more exciting yet extremely competitive which
would require at time not only a whole set of new skills and competencies but
quick adaptability to change without much stress or turbulence. As a very
unique measure Amul extended all the TQM initiatives to its business partners
whether it was the farmer producer in the village or a wholesale distributor in a
metro town or it’s most sophisticated production unit.
29
The plants are also periodically audited for Hygiene and Quality
Management Systems by various agencies like Export Inspection Agency
(EIA), Armed Forces, various Indian Statutory Bodies, International statutory
Bodies and Quality Management Agencies.
Amul Dairy has been recipient of countless awards for its outstanding
efforts in processing and providing quality products to consumers thereby
enhanced income in to the hands of dairy farmers. Some of these awards are the
Best Productivity Performance Awards for three consecutive years from 1985
and Sustained productivity Performance Award in 1988-89 from National
Productivity Council, Government of India, Indian Merchants’ Chamber Award
- for Outstanding Performance in the field of R&D of Food Processing
Industries Based on Agricultural Products -1988, again Best Productivity
Performance Awards 1994-99 from National productivity Council, G. D. Birla
International Award - Outstanding Contribution to Rural Upliftment , Sahkari
Vikas Ratna Award – awarded on the occasion of Indian Co-operative
Centenary Celebration for the outstanding contributions in the field of Dairy
Co-operative movement in Asia – 2005, National Energy Conservation Award –
2009 from Ministry of Power, Government of India.
30
improve professional skills of employees emphasizing continuous improvement
of quality and food safety issues.
Amul’s primary village cooperative societies are the first ‘grass root
level’ organizations in the rural sector to achieve ISO 9001 : 2000 certification
in India, perhaps in the world. This has been possible because of Amul’s
continued commitment to offer consumers excellent products from the house of
Amul.
31
society personnel and dairy plant personnel. Laboratories are equipped with
state of the art equipment’s and well-trained professionals.
32
societies’ milk together which helps in achieving economy in transportation of
milk. These tankers are thoroughly cleaned at every unloading of milk at Dairy
Plant and certified for its hygiene for transportation of milk by QC personnel.
This system has almost wiped out any possibility of spoilage to milk. Chilling
milk at grass root level and transportation of the same in road milk tankers have
reduced microbial load in raw milk which in turn has reduced processing costs
in terms of energy, thereby better return to farmer producers.
Geo-remote sensing based vehicle tracking system has been put in use for
efficient handling of Road Milk Tankers carrying milk to Dairy Plant. Amul
Research and Development Association is a centre of excellence in the field of
research and development of cattle breeding and animal health care. This Centre
is recognized as a Scientific & Industrial Research Organization by the
Department of Scientific & Industrial Research, Ministry of Science &
Technology, and Government of India. It provides quality semen for artificial
insemination program; impart training to inseminators, prevention and control
of diseases.
33
mastitis and control the incidences; assessing efficacy of vaccination could be
determined by detection vaccination titters.
Animal Nutrition:
Amul’s focus on balanced cattle feed supplies to its dairy farmers has
helped in better productivity and cattle’s free from problems associated with
malnutrition. This has been possible due to its state-of-art cattle feed plant
which produces more than 1100 Tons of cattle feed daily. It has future plan to
expand its present manufacturing capacity. Amul also helps in development of
green fodder.
34
Introduction of New Analytical Methods:
Quality of life:
Assured market for their milk and daily income round the year from milk
has improved the quality of life of farmers. The role of village dairy co-
operative societies in the overall development of the villages have brought
better social infrastructures in the villages such as roads, communication
system, schools, health centres, water facilities, banks etc.
35
VMS Workshops:
Amul Darshan:
36
include visit to Cattle Feed Plant, Dairy Plant, Chocolate Plant, Dairy
Demonstration Farm and presentation by the Co-operative Development Group.
Zonal Meeting:
37
Village Group Discussion:
Dairymen Training:
38
Development Review:
Amul Patrika:
39
Importance of CSR:
Companies that focus on doing good in their communities will attract the
attention of local media. These positive stories will provide you with highly
trustworthy free publicity because they will come from journalistic sources
rather than from advertising copy. Furthermore, all the people who are
beneficiaries of your assistance will sing your company’s praises on their social
media networks.
40
C. Brand Differentiation:
D. Lower Costs:
E. Happier Employees:
Employees work harder and stay with a company longer when they
believe in what the company is doing. Focusing on corporate social
responsibility can be a great way to show your team what your company values.
You foster the well-being of your workers when you make clear that each of
them is contributing to the betterment of their community while also earning a
pay check.
41
Why CSR?
Corporate social responsibility (CSR) is all the rage among brands today.
"Giving back" and "doing good" have become the mantras of many companies
hoping to appeal to the modern generation of consumers, who are increasingly
concerned about global and social issues. But the motivation behind many
companies' CSR efforts actually provides the very reason that they shouldn't
take on socially responsible initiatives.
Saving the world is a noble ambition, but logistically, it's difficult to truly
gauge your impact when you just write a check to a charity. At the Cellular
Connection, McCarty encourages his team to engage in local grassroots
volunteer activities, so all employees have the chance to get involved.
Whether it's you or another person at your company, make someone the
designated point person for your CSR initiatives. This individual needs to be the
42
one who motivates the team and focuses on building social responsibility into
the company culture. Otherwise, your company's efforts can get lost in the
shuffle and begin to feel like a chore or just another to-do list item.
Challenges of CSR:
Although CSR has gained emphasis in India, there are several issues
challenging its effectiveness and reach. A lack of proper understanding of the
concept of CSR, non-availability of authentic data and specific information on
the kinds of CSR activities, coverage, policy etc. are some of the various
challenges facing CSR initiatives. Absence of training and undeveloped staff is
additional problems for reduced CSR initiatives. A survey conducted by Times
Group survey elicited responses from participating organisations about various
challenges facing CSR initiatives in different parts of the country revealed.
Need to build local capacities: There is a need for capacity building of the
local nongovernmental organizations as there is serious dearth of trained and
efficient organizations that can effectively contribute to the ongoing CSR
activities initiated by companies. This seriously compromises scaling up of CSR
initiatives and subsequently limits the scope of such activities.
43
Issues of transparency: Lack of transparency is one of the key issues brought
forth by the survey. There is an expression by the companies that there exists
lack of transparency on the part of the local implementing agencies as they do
not make adequate efforts to disclose information on their programmes, audit
issues, impact assessment and utilization of funds. This reported lack of
transparency negatively impacts the process of trust building between
companies and local communities, which is key to the success of any CSR
initiative at the local level.
44
Elements of Corporate Social Responsibilities
A. CSR Strategy:
The CSR Strategy should be the starting point of the organizational CSR
practice. This strategy needs to be defined as clear as possible with a future goal
in mind.
Internal Aspects:
You will need to build solid support for the strategy before you go about
defining what you want to achieve with this strategy. It is key to this strategy to
get the support and participation from as many high-profile executives in the
organization and to identify and engage these people that are passionate about
CSR within the business. Once you have this support in place it will be easier
for you to define the CSR Strategy for your business.
External Aspects:
The CSR Strategy will act as the positioning document for the responsible
business practice of your company. Your stakeholders and the public will
expect a visionary document that shows ambition and goals.
After defining the strategy your next task will be to set up the CSR
Management system. The management system of CSR within your business
will outline what you actually need to do to make your strategy happen and to
produce results.
45
Internal Aspects:
This is where you need to engage even more individuals in your business.
Try to gather information on how the CSR Strategy has been received and then
build on that to engage the most positive people. Once you have gathered a
good team that supports your cause you can pool their knowledge and build a
sound management plan on how to deliver the different elements of the strategy.
The CSR management system is the customized tool to successful CSR. You
can go around and look at the management systems of other companies but this
management system really needs to be so customized to your organizational
context that you nearly need to build it from scratch.
External Aspects:
This will be the CSR tool you will be asked about a lot once you have it set
up. The CSR management system is your vehicle to get more external
recognition of your activities. Never give away to much information but be
helpful when other organizations what to have some tips. You never know how
they are doing managing their CSR aspects; you might learn something for your
management system.
C. CSR Reporting:
The next step after the successful set up of the management system is the
reporting of the first results of your companies CSR activities. This is called
CSR reporting. Companies usually report on an annual basis. This CSR
reporting is really the first test whether you and your team have created
something interesting and worth reporting for your stakeholders.
46
Internal Aspects:
Internally this CSR reporting is really a tough task. It will test your CSR
management and coordination skills. The goal is to produce a meaning full
publication that will be of interest to your stakeholders. The challenge you will
face inside of the company is that it will be very hard to get all the numbers and
the signed of text in time to be still up to date and relevant. Remember this
qualitative and quantitative data has not been gathered before so make sure
everyone understands what he or she are supposed to report.
External Aspects:
CSR Reporting is a very important tool once you start out with CSR as an
organization. Externally this CSR Report together with the CSR management
system will be your CSR face of the organization. So, the more professional you
can make it the better.
Internal Aspects:
47
stakeholder engagement starts in our own backyard first. Once you have that
running you can turn to the external perspective of stakeholder engagement.
External Aspects:
48
How Corporations Benefits From CSR
49
C. Boosts Employee Engagement:
Employees like working for a company that has a good public image and
is constantly in the media for positive reasons. Happy employees almost always
equal better output. Nearly 60% of employees who are proud of their
company’s social responsibility are engaged at their jobs. When companies
show that they are dedicated to improving their communities through corporate
giving programs (like matching gifts and volunteer grants!), they are more
likely to attract and retain valuable, hardworking, and engaged employees. If a
corporation is philanthropically minded, job-hunting individuals are more likely
to apply and interview for available positions. Once hired, employees who are
engaged will stay with a company longer, be more productive on a daily basis,
and will be more creative than disengaged workers.
Investors who are pouring money into companies want to know that their
funds are being used properly. Not only does this mean that corporations must
have sound business plans and budgets, but it also means that they should have
a strong sense of corporate social responsibility. When companies donate
money to non-profit organizations and encourage their employees to volunteer
their time, they demonstrate to investors that they don’t just care about profits.
Instead, they show that they have an interest in the local and global community.
Investors are more likely to be attracted to and continue to support companies
that demonstrate a commitment not only to employees and customers, but also
to causes and organizations that impact the lives of others.
50
How Non-profits Benefits From CSR
51
partnerships are vital to the work a corporation can do in the local community
and important to a non-profit that may not have the resources for major
marketing campaigns. For a non-profit organization, a partnership with a local
or national corporation puts its name on tons of marketing materials that
otherwise could not have been afforded on tight budgets. A key benefit is that
the partnership brings additional awareness to the non-profit’s cause.
52
How Employees Benefits From CSR
B. Increase In Creativity:
53
causes, they develop professionally and personally. By helping those in need
and volunteering as teams, employees learn to work better together on important
projects. Employees also experience a sense of pride when they know that they
work for a company that cares about the community and encourages them to be
passionate about worthy causes.
When employees notice that the company they work for is involved in
charitable endeavours, they play follow the leader and begin to engage in their
own philanthropic activities. If a company encourages group volunteerism and
matches donations to non-profits with a matching gift program, an employee is
more likely to take advantage of those programs and become more individually
philanthropically minded. Without the strong sense of CSR that a company
should adopt, employees are less likely to branch out themselves and serve the
community with monetary donations and volunteer efforts.
54
CSR Initiatives by Amul
A. Tribhuvandas Foundation:
The Foundation derives its uniqueness from the fact that it is a need-
based programme for villagers and is run by the villagers themselves. It fulfils
the basic health care needs of the villages. Apart from providing primary
55
treatment for various common ailments, the Foundation is also actively
involved in promoting preventive health practices. It is headquartered at Anand
with sub-centers spread over the district Anand and Kheda. The Foundation has
a dedicated Team of Medical Officers, Nurses, Administrative staff, Dais
(Traditional Birth Attendants) and Village Health Workers to provide the
following services.
56
feeding, common disease of childhood, malaria, tuberculosis. Training is also
imparted on other topics as the need arises.
57
Anand talukas of Anand District and Balasinor and Virpur talukas of Kheda
District for a period of one year from 2009-2010.
58
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.
C. Tree Plantation:
In 1946, the unfair trade practises of the middle men brought the farmers
of Kaira to unite and fight against this system which brought Amul into
existence. Their relentless effort in improving their socio-economic conditions
ultimately brought their working as a model for dairy development programme
in our country – popularly known as Anand Pattern. Replication of Anand
Pattern through Operation Flood programme helped India to achieve first
position in production of milk in the world.
59
Alarmed by the climate change and global warming and their understanding of
that dairy farming like agriculture is dependent on nature, they took an oath on
15th August, 2007, after the flag hoisting ceremony, to plant a sapling and
ensure that it grew into a tree. Then individually they planted sapling on their
own at their identified locations like their farm, near their home, on farm bunds,
etc. This marked the beginning of a silent new revolution to bring a green carpet
on Gujarat and India.
In the year 2007, 21,000 saplings were planted by the farmers in Kaira of
which 10,000 plants have survived. In the following year 2008, they planted
more than 5,05,000 saplings of which 1,79,000 have survived. In 2009, third
year of their movement, more than 13,51,000 saplings have been planted.
60
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 the last five years), when they fully grow up, would
provide additional 1,39,735 ha. of green cover which is additional 6.41% forest
cover of Gujarat State of India.
In last five years, milk producers of GCMMF planted around 312 lakhs
tree saplings. By doing so, milk producers of Gujarat Dairy Cooperatives have
shown their concern, awareness and commitment for betterment of
environment.
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.
When dairy farmers of Gujarat have planted more than 312 lakh trees in
just five years and are planning to plant more trees every year, they are doing an
invaluable service to the society as the brand “Amul” means price less…
priceless service to mankind. 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.
61
Dairy Conference held at Salzburg Congress Centre, Austria on 28th April,
2010.
D. 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.
62
E. Dairy Demonstration Farm:
F. Amul Scholar:
63
12th standards and Gold Medallist in graduation. Amul Scholars’ Felicitation
Programme was initiated in 2004 and has facilitated many outstanding students
of Amul family.
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 honoured
500 students in Gujarat and other parts of India. In the second year it
acknowledged further 2267 students across schools in India. Moving ahead
64
(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 helps the schools to enhance their image as an academy that imparts
quality education, worth emulating by others.
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
65
among milk producers but also targeted towards encouraging hygienic practices
in the milk supply chain.
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.
66
Research Methodology
Research Problem:
Research Objective:
This study and the research have been trying to attend the following
dimensions of the Amul company: -
67
To understand ethical issues and concerns the Amul is facing, and to
explore the widely present unfair business practices that are adopted to
keep the business going.
To compare the content, extent, nature, quality and location of
disclosures regarding the corporate social responsibility by Indian
companies.
To benchmark corporate social disclosures against Global Reporting
Initiatives.
To find out the association between the social disclosures and
corporate characteristics such as size, profitability, risk and others etc.
To examine the perceptions of investors and the stock brokers with
regard to the corporate social disclosures by the Indian companies.
Information Requirement:
First, I had to know about all the competitors present in the milk
segment.
Before going for the survey, I had to know the comparative packs and
prices of all the competitors existing in the market.
Since Milk is a product that used daily hence I had to trace the market
and segment it, which mainly deals with people of various age groups.
The main information needed is the various types of brands available
in the market, their calorific value and various other facts.
As Amul Milk advertisement is mainly done through hoardings but on
television the advertisement is being telecasted timely and on proper
time or not.
68
Research Design
Sampling Design:
Population:
All types of outlets that stock and sell Amul milk in the market. The
outlets have been classified as follows: -
69
Sources of Data
Primary Sources:
The primary data was collected through questionnaires. They were filled
using the scheduled method of data collection by the researcher.
Secondary Sources:
The secondary sources were used for collecting information regarding the
sample; they were however not used for analysis.
Analysis Techniques:
Percentage Analysis
Graph Chart
70
Sampling:
71
Data Analysis and Interpretation:
The data collected were not easily understandable, so I like to analyse the
collected data in a systematic manner and interpreted with simple method.
The analysis and interpretation of the data involves the analysing of the
collected data and interpretation it with pictorial representation such as bar
charts, pie charts and other.
72
B. Are you satisfied with the milk you are consuming?
a) Yes
b) No
73
C. What do you like?
a) Quality
b) Taste
c) Price
d) Availability
74
E. What is total consumption of milk in a day?
a) Pouch milk in litre…
b) Loose milk in litre…
75
G. In pouch milk which brand do you prefer?
a) AMUL
b) MOTHER DAIRY
c) GOKUL
d) MAHANANDA
e) WARANA
f) OTHERS
76
H. Do you think the prices of the product is high/low compared to
competitor’s product?
a) Strongly agree
b) Strongly disagree
c) Agree
d) Neither
77
I. If you buy Amul milk pouch which pack you purchase?
a) Amul Gold
b) Amul Taaza
c) Amul Slim & Trim
78
J. Consumer’s opinion towards product?
79
SWOT Analysis
Strengths:
Weakness:
There are various big players in the chocolate market, which acts as a
major competitor restricting their growth. Lack of capital invested as compared
to other companies. Improper distribution channel in India.
Opportunities:
Threats:
The major threats is from other companies who hold the majority share of
consumers in Indian market i.e. Cadbury and Nestle. There exists no brand
loyalty in the chocolate market and consumers frequently shift their brand. New
companies entering in the Indian market like Fantasie fine poses lot of problems
for Amul.
80
Suggestions:
81
the success of CSR and the ability of companies to deliver on the goals of
their CSR strategy.
82
Conclusion
CSR is really about ensuring that the company can grow on a sustainable
basis, while ensuring fairness to all stakeholders, CSR has come a long way in
India. It has successfully interwoven business with social inclusion and
environment sustainability.
83
Bibliography
Books:
Websites:
www.indiacsr.in
www.amuldairy.com
www.google.com
www.wikkepedia.com
84
Annexure
Questionnaire:
Name:
Designation:
Department:
85