BUSINESS ETHICS AND CORPORATE

GOVERNANCE

CSR IN HUL

A Project Report
Submitted in partial fulfillment of the requirements for the
award of degree of Masters of Business Administration

2019 – 2021

Submitted by : Guided by :
AVNEET SINGH KALRA – 0191MBA057 Col. ANAND
GAURAV GUPTA – 0191MBA062
MANSI TAHILIANI – 0191MBA069
PRIYANKA ARORA – 0191MBA186

Bharati Vidyapeeth
Institute of Management & Research, New Delhi
Re-Accredited with Grade “A” by NAAC
Recipient of B-school leadership award from Star News
A-4, Paschim Vihar, New-Delhi,Ph:011-25286442 Fax 011- 25286442

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 Certificate of Originality

This is to certify that the project report entitled

“.........................................................................” Submitted in partial fulfillment of the
requirement for the award of the degree of MBA is an original work carried out by <
name of the students> under the guidance of ______________. The authenticity of the
project work will be examined by the viva examiner which includes data verification,
checking duplicity of information etc. and it may be rejected due to non-fulfillment of quality
standards set by the Institute.

Signature of the student

ERP Id

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 Acknowledgements

Name  & signature of the student

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 TABLE OF CONTENTS

SNO. PARTICULARS PG.NO.

1. Introduction ………………………………………………………………….…… 5-6

1.1 Introduction
1.2 CSR Perspective
1.3 Implementations
1.4 Monitoring

2. Literature Review …………………………………………………………..…… 7-

10
2.1 Review of Literature

3. Details of CSR Implemented in HUL ………………………………….……… 11-

24
3.1 CSR Initiatives

4. Current Strategies Adopted by HUL …………………………………...…….. 25-

32
4.1 Current Strategies CSR
4.2 Project Shakti – Changing Lives in Rural India
4.3 Lifebuoy Swasthya Chetana – Health & Hygiene Education
4.4 Fair & Lovely Foundation – Economic Empowerment of Women
4.5 Green Barrens – Water Conservation & Harvesting
4.6 Happy Homes – Special Education & Rehabilitation
4.7 Yashodadham
4.8 Vindhya Valley

5. Conclusions ……………………………………………………………………..…..
33
5.1 Conclusions

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 6. Recommendations ……………………………………………………………… 34-
35
6.1 Recommendations
6.2 Social
6.3 Environmental
6.4 Employees
6.5 Customers

7. References

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 CHAPTER-1
INTRODUCTION

1.1 Introduction
Hindustan Unilever Limited (HUL) is India’s largest fast-moving consumer goods company,
touching the lives of two out of three Indians with over 20 distinct categories in home &
personal care products and food & beverages. They endow the company with a scale of
combined volumes of about 4 million tonnes and sales of over Rs. 13,000 crores. HUL is also
one of the country’s largest exporters; it has been recognised as a Golden Super Star Trading
House by the Government of India. The Anglo-Dutch company Uni lever owns a majority
stake (52%) in Hindustan Unilever Limited. HUL was formed in 1933 as Lever Brothers
India Limited and came into being in 1956 as Hindustan Lever Limited through a merger
of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is
headquartered in Mumbai, India and has an employee strength of over 15,000 employees and
contributes for indirect employment of over 52,000 people. The company was renamed in
June 2007 to Hindustan Unilever Limited´. In 2007, Hindustan Unilever was rated as the
most respected company in India for the past 25. Hindustan Lever Limited (HLL) is India's
largest fast-moving consumer goods company, with leadership in Home & Personal Care
Products and Foods & Beverages. HLL's brands, spread across 20 distinct consumer
categories, touch the lives of two out of three Indians. They endow the company with a scale
of combined volumes of about 4 million tonnes and sales of Rs.10,000 crores. HLL has
32,400 employees (40,000 including Group Companies) at present, including about 1,425
managers.
 Financial status: 2003 figures (Rs. Lacs)
 Gross Turnover: 11096.02
 Turnover/ Sales: 10138.35
 Net Profit: 1771.79
Unilever holds 51.55% of the equity in HLL. HLL is India's largest marketer of Soaps,
Detergents and Home Care products. It has the country’s largest Personal Products business,
leading in Shampoos, Skin Care Products, Colour Cosmetics, and Deodorants. HLL is also

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the market leader in Tea, Processed Coffee, branded Wheat Flour, Tomato Products, Ice
cream, Soups, Jams and Squashes. HLL is also one of the country's biggest exporters and has
been recognized as a Golden Super Star Trading House by the Government of India; it is a
net foreign exchange earner. HLL is India's largest exporter of branded fast-moving
consumer goods. The diverse products range is manufactured in over 100 factories located
across the length and breadth of India and 28 of them in backward areas. The Khamgaon soap
plant and the Sumerpur detergent bar unit have been recognized as among the best in the
Unilever world.

1.2 CSR Perspective

Corporate Social Responsibility (CSR) in Hindustan Lever Limited (HLL) is rooted in its
Corporate Purpose - the belief that "to succeed requires the highest standards of corporate
behaviour towards our employees, consumers and the societies and world in which we live".
HLL's CSR philosophy is embedded in its commitment to all stakeholders -- consumers,
employees, the environment and the society that the organisation operates in. HLL believes
that it is this commitment which will deliver sustainable, profitable growth. HLL's key CSR
initiatives are undertaken with a long-term view. Initiatives that are sustainable, have long-
term benefits and an ongoing business purpose linked to them are accorded priority focus. As
early as in the 1950s, HLL focused on import substitution when balance of payments was an
issue. Since the 1980s, most of HLL's investments have been in designated backward areas
and zero-industry districts, spreading industrialisation. HLL has revived sick industries and
has developed local entrepreneurship.

1.3 Implementation
An illustration of how HLL implements its CSR activities is Project Asha Daan. HLL
supports Asha Daan run in Mumbai by the Missionaries of Charity (an NGO founded by the
late Mother Teresa). Asha Daan is a home for abandoned, handicapped children, the destitute
and people affected by AIDS (HIV positive). Asha Daan had been set up on a 72,500 square
feet plot, in the heart of the city leased by the company. HLL also bears the capital and
revenue expenses for maintenance, upkeep and security of the premises.

1.4 Monitoring
Unilever’s Summary Social Review 2003 gives an update on the progress Unilever is making
to listen and learn from consumers and other stakeholders as they strive to be both successful

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business and responsible corporate citizens. This review complements the environmental
report 2003 and the annual review 2003. The review acts as a signpost to further information
and case studies across the Unilever website. This undergoes regular updation. It focuses on
creating value, sharing wealth, ensuring consumer safety, employee health, engaging with
communities, food and other local benefits.

CHAPTER-2
LITERATURE REVIEW

2.1 Review of Literature

Most nations have directed their policies towards making business the engine of
socioeconomic development and, in response, the private sector has generated heretofore
unimaginable growth rates, wealth, and profits (Carroll et al, 2010). By placing business at
the center of national interests, corporate headquarters now define the skylines of major cities
and, in developed economies, have replaced religion as the new sites of worship. Despite
enabling policies and infrastructural support for the burgeoning private sector, many national
and regional governments are paralyzed by their debt burdens, lack of revenue streams,
mounting civic responsibilities, and growing public discontent and distrust. Frynas et al
(2015) state that while the needs of society were traditionally part of the remit of the state,
corporate power challenges and undermines this custodianship. Shifting responsibilities
between the state, its citizens, and the private sector raise important questions about who is
responsible for what and for whom?

Whether motivated by benevolence, shared value creation, enlightened self-interest, capturing

market share, image building, or a combination of these, the long-term success and
sustainability of firms is closely associated with the wellbeing and prosperity of the societies
within which they are embedded, as the long-term success and sustainability of societies is
associated with the success of their economic activities. Over time and with the rise and
mobility of corporate power, the reciprocity and interdependence between business and
society have weakened. Attributing clear responsibilities between increasingly impoverished
and weakened governments, and increasingly wealthy, mobile, and autonomous businesses
has become a major challenge. (Bansal et al, 2019)

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The aim of political CSR is to study the evolving interdependencies between politics,
business, and society. Broadly speaking, the field may be divided into bottom-up political
mechanisms legitimizing corporate behavior and regulatory top-down approaches. Bergman
(2016) mentioned that most of the literature on political CSR focuses on bottom-up
mechanisms relating to the expansive and expanding role of business as firms assume societal
responsibilities previously associated with the state. Examples include initiatives to reduce
poverty, develop and manage infrastructure, or provide access to health, education, and other
services. This variant is premised on three characteristics. First, the bottom-up adoption of
proactive responsibilities is viewed as intrinsically voluntary. In this regard, taking on
societal or governmental responsibilities is perceived as a strategy to garner political favor or
to avoid regulation. Second, it is assumed that governments confined by fiscal limitations are
increasingly unable to meet their responsibilities without the assistance of the business sector.
Firms fill this vacuum in contexts where national governance structures are weak, unstable,
or absent. Finally, and as a consequence, exercising political CSR is strategically beneficial to
firms because responding to social demands in contexts where they have become the most
powerful actors with significant political influence ensures access to markets and a
benevolent regulation environment. (Bergman et al, 2017)

According to Boodoo (2016) Recent evidence suggests that governments are increasingly and
explicitly adopting top-down mechanisms of political CSR as a policy tool to address societal
needs or environmental management. These approaches signal a reformulation of political
expectations for business to engage beyond the economic domain and increase their
commitment to social and environmental issues. Notable examples include CSR regulations
introduced in China in 2006, the corporate and investment laws regulating social and
environmental responsibilities in Indonesia since 2007, the 2% CSR mandate introduced in
Mauritius in 2009, Denmark’s National Action Plans for CSR in 2008 and 2012, and India’s
Companies Act 2013. Carroll & Shabana (2010) state that the Business Roundtable’s
Statement of Purpose of a Corporations from August 2019, signed by 181 US CEOs under
the chairmanship of Jamie Dimon, is in line with this global trend. While the debate
concerning mandatory versus voluntary responsibilities is still the defining characteristic of
political CSR, the general consensus seems to be that CSR could be used to complement
rather than challenge or replace corporate governance. In most cases, it is viewed as a way to
standardize CSR involvement across sectors, promote sustainable corporate practices, and
foster transparency and accountability. Especially in emerging markets where governments

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often lack the regulatory frameworks and enforcement capacities to guide corporate behavior,
top-down approaches represent an opportunity to direct corporate awareness to social and
environmental challenges. Significantly, it also represents a way for governments to connect
the sustainability agenda—often set by external factors, such as buyers, investors,
shareholders, or international standard-setting organizations—with local culture, context,
needs, and expectations. (Cherian et al, 2019)
Despite geopolitical shifts that have caused far-reaching global uncertainties over the past
decade, India’s economy has remained robust, with steady GDP growth at above 6%. Thus
far, the forecast by the International Monetary Fund—that India’s growth would become the
highest worldwide—is on track. The collective revenue of the top ten Indian Fortune 500
enterprises have increased steadily from just over Rs. 21 trillion in 2016 to more than Rs. 23
trillion in 2017, and Rs. 27 trillion in 2018. India’s Foreign Direct Investment exceeded USD
10 billion in December 2018, up from USD 7.0 million in June 1991. Economic expansion
has translated into upward socioeconomic mobility for its citizens, especially the upper-
middle and rapidly expanding middle classes. Access to basic infrastructure and services,
however, remain a significant challenge. The latest census data indicated that 74% of the
rural population earned less than Rs. 5 000 (approximately USD 72) per month, and 24% of
the urban population still lived in slums in 2014. (Masud et al, 2018)

According to Uddin et al (2018), Such disparities have traditionally been addressed, at least
in part, by India’s long-standing commitment to corporate philanthropy. While enjoying
some success, philanthropic activities fall well short in addressing even extreme forms of
poverty, let alone providing basic services for the majority of the population. Given India’s
sizeable population and associated challenges in light of its growing geopolitical influence
and socioeconomic development potential, a popular government could realign India’s
developmental trajectory toward greater sustainably. It is within this context that Prime
Minister Narendra Modi developed his political platform, utilizing economic growth to
activate social development. The resulting Companies Act 2013 led the Indian government
into unchartered territory as it explicitly and legislatively redefined the relations between
business and society. His recent re-election illustrates the broad support of this strategy.

Based on these policies, what is the business-society nexus in India, and how is it shaped by
its context and culture? Since 2009, the Indian government has taken progressive steps to
formalize responsibilities of firms toward the Indian society and its citizens, first with the

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National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of
Business and, through successive steps, by introducing the Companies Act 2013 and
subsequent variants. Section 135 of the Act outlines what the government defines as CSR
expectations. For example, it stipulates that all firms with a “net worth of rupees five hundred
crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five
crore or more during any financial year” must establish an independent board level CSR
committee. The committee must ensure that “the company spends, in every financial year, at
least two per cent of the average net profits of the company made during the three
immediately preceding financial years, in pursuance of its Corporate Social Responsibility
Policy”. The committee is expected to formulate and recommend CSR policy, as well as
oversee the implementation thereof. According to Schedule VII of the Act, the committee
also must ensure that CSR activities “give preference to the local area and areas around it
where it operates”. Initially, the Act stipulated that, if the company fails to spend the 2% of
its profits, it is to publicly report “the reasons for not spending the amount”. On 26 July 2019,
the Lok Sabha, the House of the People (lower house of the bicameral Parliament of India),
passed the Companies Act (Amendment) Bill 2019, which stipulates that firms which fail to
spend the required amount will face fines and their officer’s potential imprisonment. All
unspent money would be transferred to a special account, to be spent on CSR activities.
(Wickert, 2016)

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 CHAPTER-3
DETAILS OF CSR IMPLEMENTED IN HUL

3.1 CSR Initiatives

HUL Initiatives Schedule VII Execution Details Target & Timeline
Activity
Project Shakti Promoting Project Shakti is an We will increase the
education, including initiative to number of Shakti
special education financially empower Entrepreneurs that
and employment rural women and we recruit, train and
enhancing vocation create livelihood employ from 45,000
skills especially opportunities for in 2010 to 72,000 in
among children, them. Through this 2016.
women, elderly and project, the
the differently abled Company endeavors
and livelihood to enhance
enhancement livelihoods of rural
projects women. Around
70% of Shakti
Ammas are working
in low Human
Development Index
(HDI < 0.51)
districts.

We contact and
appoint rural women

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 as Shakti
Entrepreneurs (SE),
commonly referred
as 'Shakti Ammas'.
SE is educated and
trained by the rural
promoter about the
Company products
and their utility in
day to day life in
maintaining health
and hygiene. After
being trained about
the products she
receives stocks from
our rural distributor
at a discount below
the price at which
the products are sold
in the normal course.
The Shakti
Entrepreneur then
sells these goods
both directly to
consumers (through
home to home
selling) and to
retailers in the
village. The
Company has
trained thousands of
Shakti Ammas
across the villages in
a bid to develop an
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 entrepreneurial
mindset and make
them financially
independent and
more empowered.
Swachh Aadat Eradicating hunger, The project is in line
Swachh Bharat poverty and with Government of
malnutrition; India’s Swachh
promoting health Bharat Abhiyan to
care including promote good health
preventive health and hygiene
care and sanitation practices and aims to
including achieve the Swachh
contribution to the Bharat goals by
‘Swachh Bharat 2019. The goal is to
Kosh’ set up by the popularise the
Central Government adoption of 3 clean
for the promotion of habits: (i) wash
sanitation and hands before meals
making available and after defecation,
safe drinking water. (ii) adopt safe
drinking water
Ensuring practices and (iii)
environmental stop open
sustainability, defecation.
ecological balance,
protection of flora Build partnerships to
and fauna, animal identify, advocate,
welfare, create awareness of
agroforestry, existing solutions
conservation of and to create new
natural resources ones in the areas of
and maintaining Waste Management
quality of soil, air and Sanitation.

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 and water.
Hand Washing Promoting More than 600,000 This initiative will
Behaviour Change preventive children in India do help reduce the
Programme healthcare and not reach the age of incidence of life-
sanitation five due to infections threatening diseases
like diarrhea and like diarrhoea and
pneumonia. pneumonia which
Independent claim lives of over
research has shown 600,000 children in
that washing hands India.
with soap at five
critical times in a The initiative aims
day can reduce the to reach 163 million
incidence of these people by 2020.
infections
significantly.
Therefore,
inculcating behavior
change amongst
people is important.
The experience
shows that children
are in the best
position to bring in
this change among
their respective
families. The
Company conducts
hand washing
awareness
programmes in
anganwadis
(preschool centre)
and schools. Under

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 the initiatives such
as Help A Child
Reach 5 and School
Contact Programs in
Bihar in partnership
with Children
Investment Fund
Foundation (CIFF)
and the Government
of Bihar, the
Company promotes
handwashing
behaviour change
among children in
Bihar.
Domex Toilet Promoting The World Health Half of the
Academy (DTA) preventive Organisation and population in India
healthcare and United Nations does not have access
sanitation Children’s to proper sanitation
Education Fund facilities. In many
(UNICEF) estimate cases people do not
that there are more use toilets for
than 620 million defecation.
people practicing Therefore, it is
open defecation due important to create
to lack of access to awareness about
proper sanitation and behavior change on
60% of all open improved sanitation.
defecations in the
world are in India.
DTA and eKutir In the long run and
Rural Management by 2020, we will
Services Private help large number of
Limited, a social people to improve

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 enterprise identifies their hygiene habits
and trains local in India.
microentrepreneurs
who help execute the
project in their local
communities by
supplying and
building toilets.
DTA provides the
seed capital to these
entrepreneurs
through eKutir to
start up their
activity, and also
helps with initial
operational costs for
the execution of the
project. The
objective is to
reduce the incidence
of open defecation
and improve proper
sanitation thereby
promoting
preventive
healthcare. DTA
works with local
self-help groups who
educate people on
the importance of
proper sanitation and
provide them access
to microloans
through
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 microfinance
institutions to buy
the toilets from the
local micro-
entrepreneur
appointed by DTA.
Safe Drinking Water Making available The lack of safe We aim to make safe
safe drinking water drinking water is a drinking water
major public health available and
issue, particularly in affordable to people
developing countries from economically
where majority of weaker sections of
diseases are society in
waterborne. Pureit in partnership with
home water purifier microfinance and
provides water 'as NGO partners in
safe as boiled water', India
without the need for
electricity or running
water. Pureit
partners with NGOs
across the country to
make safe drinking
water accessible to
people.
FAL Foundation promoting The Foundation The Foundation is
education, including identifies around a decade old.
special education academically It is a long-term
and employment exceptional girls endeavour of the
enhancing vocation from financially Company to help
skills especially challenged exceptionally bright
among children, backgrounds and girls with
women, elderly and offers scholarships scholarships granted
the differently abled to the candidates. To through FAL

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 and livelihood maintain integrity Foundation.
enhancement and fairness the
projects selection is done by
a panel of eminent
personalities from
diverse fields.
Sustainable Sourcing Ensuring An important part of We are committed to
environmental our raw materials sourcing all our
sustainability, come from farms agricultural raw
ecological balance, and decisions materials sustainably
protection of flora relating to such by 2020.
and fauna, animal procurement can
welfare, have profound
agroforestry, implications on
conservation of climate change and
natural resources farmers’ livelihoods.
and maintaining In 2012, we entered
quality of soil, air into a public-private
and water. partnership with the
Maharashtra
Government for
sustainable sourcing
of tomatoes locally.
Water Conservation Ensuring Estimates tell us that By 2020, our
Projects environmental by 2030, the supply partnerships and
sustainability, of water in India will collective actions
ecological balance, be half its demand. would make
protection of flora To understand and available a
and fauna, animal partake in meeting cumulative water
welfare, this challenge, we potential of 500
agroforestry, set up the Hindustan billion liters across
conservation of Unilever Foundation India.
natural resources in 2010. It is a
and maintaining Section 8 not-for-

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 quality of soil, air profit company that
and water. anchors various
community
development
initiatives of
Hindustan Unilever
Limited. Hindustan
Unilever Foundation
supports national
priorities for
socioeconomic
development,
through its Water for
Public Good
programme. Each of
our projects also
complies with the
requirements of the
National Voluntary
Guidelines and the
Companies Act,
2013.
Relief Funds Contribution to the HUL has always Driven by
Prime Minister's been at the forefront occurrence of event.
National Relief Fund in responding to its
or any other fund set call for national duty
up by the Central and has contributed
Government for generous amounts
socio-economic for upliftment of
development and community hit by
relief and welfare of natural disasters. It
the Scheduled has done this
Castes, the through contribution
Scheduled Tribes, to Government relief

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 other backward funds.
classes, minorities
and women.
Prabhat Rural development ‘Prabhat’ (Dawn) is The project aims to
projects a program which create a positive
focuses on social impact in the
communities around lives of 1 million
our factories. The people.
areas of intervention
are Health &
Hygiene, raising
livelihoods and
conserving water.
The Water
Conservation
initiative is led by
Hindustan Unilever
Foundation, a
wholly owned
subsidiary of HUL
which looks at
improving the water
security in selected
regions. The
Livelihood
programme aims to
empower today’s
youth by providing
them with
employable skills
thereby enhancing
their livelihoods.
HUL is
collaborating with

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 NGOs to implement
the project.
Happy Homes: Asha Setting up homes Asha Daan: The Ongoing and long -
Daan & Ankur and hostels for initiative began in term charitable
women and orphans 1976, when HUL activity. To provide
supported Mother shelter to the
Teresa and the underprivileged
Missionaries of members of the
Charity to set up society; these
Asha Daan, a home include abandoned,
in Mumbai for challenged children,
abandoned, the HIV positive and
challenged children, the destitute. While
the HIV-positive and HUL funds the
the destitute. Asha annual maintenance
Daan has been set up of the premises, the
on a 72,500-square Missionaries of
feet plot belonging Charity look after
to HUL, in the heart the inmates.
of Mumbai city.
Since the inception
of Asha Daan in
1976, HUL has been
looking after the
maintenance of the
premises. At any
point of time, HUL
takes care of over
400 infants, destitute
men and women and
HIV positive
patients at Asha
Daan.

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 Ankur: Ankur is a
centre for special
education for
otherwise challenged
children at the Doom
Dooma in Assam. It
was set up in 1993
by HUL’s
Plantations Division
at Doom Dooma.
Ankur provides
educational,
vocational and
recreational
activities to
specially-abled
children.
Sanjivani Promoting HUL runs a free Ongoing and long-
preventive mobile medical term preventive
healthcare service camp -- healthcare activity.
Sanjivani -- near its Our aspiration is to
Doom Dooma provide healthcare in
Factory in Assam. far and remote areas
The aim is to where basic medical
provide free mobile facility is not
medical facility in available through
the interior villages our mobile medical
of Assam. There are service camps and
two mobile vans thereby help a large
dedicated to the number of the
project, each vehicle population over a
has one male and period of time.
one female doctor,
two nurses, a

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 medical attendant
(helper) and a driver.
The vans are
equipped with basic
kits such as
diagnostic kit, blood
pressure measuring
unit, medicines and
a mobile stretcher.
Rin Career Ready promoting The program aims to
Academy education, including inspire, educate &
special education equip the youth from
and employment modest backgrounds
enhancing vocation with skills in English
skills especially training, Office
among children, Dressing and
women, elderly and Interviewing. The
the differently abled program allows all
and livelihood the participants to
enhancement take the course by
projects simply giving a
missed call.
Deserving
individuals shall be
put up for a more
intensive face to face
3-week course.
designed to suit the
CHAPTER-4
CURRENT STRATEGIES ADOPTED BY HUL

4.1 Current Strategies CSR

Corporate Social Responsibility (CSR) in Hindustan Lever Limited (HLL) is rooted in its
Corporate Purpose - the belief that "to succeed requires the highest standards of corporate

23 | P a g e
behaviour towards our employees, consumers and the societies and world in which we live".
HLL's CSR philosophy is embedded in its commitment to all stakeholders -- consumers,
employees, the environment and the society that the organisation operates in. HLL believes
that it is this commitment which will deliver sustainable, profitable growth.

HLL's key CSR initiatives are undertaken with a long-term view. Initiatives that are
sustainable, have long-term benefits and an ongoing business purpose linked to them are
accorded priority focus. As early as in the 1950s, HLL focused on import substitution when
balance of payments was an issue. Since the 1980s, most of HLL's investments have been in
designated backward areas and zero-industry districts, spreading industrialisation. HLL has
revived sick industries and has developed local entrepreneurship.

Furthering this rich tradition of contributing to the community, HLL is focusing on health &
hygiene education, women empowerment, and water management. In addition to these
important platforms, HLL is also involved in a number of community support activities, like
providing audio-visual packages for basic education in primary schools, education and
rehabilitation of special or underprivileged children, care for the destitute and HIV-positive,
and rural development.

In recognition of these initiatives, HLL received the prestigious TERI-CSR Special Award
for the year 2002-03 from The Energy and Resources Institute (TERI). As is well-known,
TERI, which was established in 1974, is world famous for its commitment to and initiatives
in every aspect of sustainable development.

4.2 Project Shakti – Changing Lives in Rural India

Project Shakti is HLL's rural initiative, which targets small villages with population of less
than 2000 people or less. It seeks to empower underprivileged rural women by providing
income generating opportunities. Project Shakti also aims to improve the standard of living of
the rural community, by providing health and hygiene education.

In general, rural women in India are underprivileged and need a sustainable source of income.
NGOs, governmental bodies and other institutions have been working to improve the status
of rural women. Project Shakti is a pioneering effort in creating livelihoods for rural women,
organised in Self-Help Groups (SHGs), and improving living standards in rural India. Project

24 | P a g e
Shakti provides critically needed additional income to these women and their families, by
equipping and training them to become an extended arm of the company's operation.

Started in 2001, Project Shakti has already been extended to about 20000 villages in 196
districts in 11 States - Andhra Pradesh, Karnataka, Gujarat, Madhya Pradesh, Tamil Nadu,
Chhattisgarh, Uttar Pradesh, Orissa, Punjab, Rajasthan and Maharashtra. The respective state
governments and several NGOs are actively involved in the initiative.

Project Shakti already has about 6200 women entrepreneurs in its fold. A typical Shakti
entrepreneur earns a sustainable income of about Rs.1,000 per month, which is double their
average household income. Project Shakti is thus creating opportunities for rural women to
live in improved conditions and with dignity, while improving the overall standard of living
in their families. In addition, it involves health and hygiene programmes, which help to
improve the standard of living of the rural community. The project's ambit already covers
about 15 million rural population. Plans are also being drawn up to bring in partners involved
in agriculture, health, insurance and education to catalyse overall rural development. HLL's
vision for Project Shakti is to scale it up across the country, covering 100,000 villages and
touching the lives of 100 million rural consumers by 2005.

4.3 Lifebuoy Swasthya Chetana – Health & Hygiene Education

Lifebuoy Swasthya Chetana is the single largest rural health and hygiene educational
programme ever undertaken in India. Its objective is to educate people about basic hygienic
habits. It has been developed around the insight that people mistakenly believe “visible clean
is safe clean”. The programme establishes the existence of “invisible germs” and the
associated risk of infection. In India this is important, because diarrhoea, caused by invisible
germs, is the second largest cause of death among children below the age of 5. The project
will help reduce incidence of such diseases, by raising awareness of preventive hygienic
practices.
The campaign has been divided into various phases. In the initial phase, a Health
Development Facilitator (HDF) and an assistant initiate contact and interacts with students
and influencers of the community, like village community representatives, medical
practitioners, school teachers etc. A number of tools like a pictorial story in a flip chart
format, a "Glo-germ demonstration", and a quiz with attractive prizes to reinforce the
message are used. The "Glo-Germ demonstration" is a unique tool to make unseen germs

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visible and emphasize the need to adopt hygienic practices. The first interaction with students
is then replicated with the rest of the community. Subsequently, follow-up visits and
communication are undertaken at periodic intervals which reinforce the message and
learnings.

Started in 2002, the programme has as of now covered about 15000 villages in 8 states --
Uttar Pradesh, Bihar, Jharkhand, West Bengal, Orissa, Madhya Pradesh, Chhattisgarh and
Maharashtra; it has already touched about 70 million people, imparting hygiene education to
over 25 million children. The vision of this on-going project is to make a billion Indians feel
safe and secure by focussing on their health and hygiene needs.

4.4 Fair & Lovely Foundation – Economic Empowerment of Women

The Fair & Lovely Foundation is HLL’s initiative which aims at economic empowerment of
women across India. It aims to achieve this through providing information, resources, inputs
and support in the areas of education, career and enterprise. It specifically targets women
from low income groups in rural as well as urban India. Fair & Lovely, as a brand, stands on
the economic empowerment platform and the Foundation is an extension of this promise. The
Foundation has renowned Indian women, from various walks of life, as its advisors. Among
them are educationists, NGO activists, physicians. The Foundation is implementing its
activities in association with state governments.

In India, low-income families, albeit unwillingly, tend to discriminate against girl children, in
providing opportunities for education and enterprise, because of resource constraints. The
support provided by Fair & Lovely Foundation will help girl children avail opportunities of
higher education and acquire skills in appropriate professions. The series of projects that have
been drawn up to achieve the vision include the following:
Careers - Career guidance by organising career fairs. About 100,000 students have benefited
from these career fairs in 42 towns and cities in 2003, getting acquainted with over 200 career
options. The programme offers workshops for career guidance, resume-writing skills,
personality development. A career guidance programme has also been specially designed for
television, and is running on three TV channels. Career columns are being written and
sponsored in different magazines.

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Education - Scholarships for education such that it opens career avenues, specifically
targeting low-income groups are being provided. 2003 was the first year of scholarships --
147 students have received scholarships in 2003.
Enterprise: Vocational Training
 a three-month Home Health Care Nursing Assistant’s Course
 skill development in the areas of embroidery and garment designing
 professional course for aspiring beauticians.
In all, 215 women have been trained in 2003. Launched in 2003, Fair & Lovely Foundation
seeks to impact the lives of about 5000 women by 2005. This will be done through
scholarships and enterprise initiatives. For career guidance, it seeks to touch millions of
aspiring women and students in an ongoing programme, currently covering three states and
all main metros in the country.

4.5 Green Barrens – Water Conservation and Harvesting

HLL's Water Conservation and Harvesting project has two major objectives: a) to reduce
water consumption in its own operations and regenerate sub-soil water tables at its own sites
through the principles of 5R -- reduce, reuse, recycle, recover and renew; b) help adjacent
villages to implement appropriate models of watershed development.

Water scarcity is one of the biggest crises facing India in terms of spread and severity. Water
conservation and harvesting in HLL's own operations will help conserve and regenerate this
scarce resource. An attendant benefit will be reduction in the consumption of energy that
would have been spent in converting and using that water. The support to communities in
developing watersheds will help in the economic development of areas adjacent to HLL sites.

Water management is a focus area for all HLL factories. Water conservation has been made
one of the key performance indicators of an HLL factory. Through a series of technology
innovations and novel processing routes HLL has reduced its ground water consumption by
over 50%. HLL has also applied technologies that recycle effluent water after treatment –
70% of HLL sites are now zero discharge sites. There are many other measures -- Reverse
Osmosis Plants and Solar Evaporation Ponds to name a few. A simultaneous benefit is saving
in energy that otherwise would have been consumed in drawing, pumping or converting
water into steam -- HLL's energy consumption per unit of production has come down by 61%

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since 1996. Since 2003, all HLL sites have begun to harvest rain water. Rain water falling on
factory premises is accumulated in ponds, thereby renewing sub-soil water tables.

HLL is also committed to extending its efforts on water management to the larger
community, and has engaged in community projects in water adjacent to manufacturing sites.

The Khamgaon soap factory is located in a dry and arid region of Maharashtra and gets
limited rainfall. Seven years back the factory started a pilot on ‘Watershed Management’ on a
5-hectare plot to prevent soil degradation and conserve water. The efforts have resulted in the
creation of a green belt, which is the only visible green patch in the area. The 5-hectare green
belt is now a veritable forest of about 6300 trees, including over 1400 ornamental plants and
over 600 fruit bearing plants. There has also been a remarkable improvement in the quality of
soil, and significant conservation of water. This has been documented in a booklet, 'Greening
Barrens', so that industry, government bodies and communities adopt this widely.
Encouraged by the results, HLL has extended the model to a neighbouring village, Parkhed,
in association with the TERI and the Bharatiya Agro Industries Foundation. The community
at Parkhed has already constructed 37 check dams. More than 20,000 saplings have been
planted during the 2003 monsoon. For the first time, villagers were able to collect water and
utilise it for irrigation post monsoon. The initiative received appreciation at the Johannesburg
World Summit on Sustainable Development.

In association with an NGO, Vanrai, HLL's Silvassa manufacturing hub (in the Union
Territory of Dadra & Nagar Haveli) too has embarked on a long-term project of water
harvesting, which aims to dramatically change water availability, taking it up to year-round
availability from 4 months at present. At Karchond village, near the Silvassa site, the
community has built 18 bunds. Seven of them are on a river running through the village, and
11 smaller ones at different water run-off points. This has enabled the community to sow a
second crop, thereby significantly increasing their incomes. Through an Integrated Village
Development Programme, the project's ambit also includes alternate income-generating
activities through SHGs, forestry management, education of children, nutrition.

The programme of watershed management is being progressively extended to other factories.

The Hosur Coffee Factory has set an example in low-cost water harvesting methods. Another
example is the Yavatmal Personal Products Factory, which has worked with the Social

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Forestry Department of the Maharashtra Government to improve sub-soil water table in the
area.

HLL's vision is to continuously innovate technologies to further reduce water consumption

and further increase conservation in its operations. Simultaneously, HLL sites will
progressively help communities, wherever required, to develop watersheds.

4.6 Happy Homes – Special Education & Rehabilitation

Under the Happy Homes initiative, HLL supports special education and rehabilitation of
children with challenges.
Asha Daan - The initiative began in 1976, when HLL supported Mother Teresa and the
Missionaries of Charity to set up Asha Daan, a home in Mumbai for abandoned, challenged
children, and the destitute. Subsequently, Asha Daan has also become a home to the HIV
positive. The objective in supporting Asha Daan was and continues to be to share the
organisation's prosperity in supporting the Mother's mission of serving the "poorest of the
poor". Asha Daan has been set up on a 72,500-square feet plot belonging to HLL, in the heart
of Mumbai city. HLL bears the capital and revenue expenses for maintenance, upkeep and
security of the premises. The destitute and the HIV-positive are provided with food, shelter
and medication for the last few days of their lives. The needs of the abandoned challenged
children are also met through special classes of basic skills, physiotherapy and, if possible,
corrective surgery. At any point of time, it takes care of over 300 infants, destitute men and
women and HIV-positive patients.

Over the years, HLL has opened schools for challenged children with a sharper objective of
supporting families of such children, helping the children become self-reliant by learning
appropriate skills to be productive members of the household.

Ankur - In 1993, HLL's Doom Dooma Plantation Division set up Ankur, a centre for special
education of challenged children. The centre takes care of children with challenges, aged
between 5 and 15 years. Ankur provides educational, vocational and recreational activities to
over 35 children with a range of challenges, including sight or hearing impairment, polio
related disabilities, cerebral palsy and severe learning difficulties. These physically and
mentally challenged children are taught skills, such as cookery, painting, embroidery,
bamboo crafts, weaving, stitching, etc depending on their aptitudes. The centre has

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rehabilitated 10 children, including self-employment for 6 children by providing them with
shops, and 3 girls have been provided employment as creche attendants. It has also moved to
normal schools 18 children. Since inception it has covered about 80 children. Ankur received
the Lawrie Group World aware Award for Social Progress in 1999 from HRH Princess Royal
in London.

Kappagam - Encouraged by Ankur's success, Kappagam ("shelter"), the second centre for
special education of challenged children, was set up in 1998 on HLL Plantations in South
India. It has 17 children. The focus of Kappagam is the same as that of Ankur. The centre has
17 children, being taught self-help skills, useful vocational activities like making of paper
covers, greeting cards, wrapping papers, fancy stationery, napkins, brooms made out of
coconut leaves, candles, and also some home care products. About 12 of the children have
become relatively self-reliant by earning through crafts learnt at the centre. Since inception, it
has covered about 28 children.

Anbagam - Yet another day care center, Anbagam ("shelter of love"), has been started in
2003 also in the South India Plantations. It takes care of 11 children. Besides medical care
and meals, they too are being taught skills such that they can become self-reliant and
elementary studies. Over 20,000 individuals have benefitted from the Happy Homes
initiatives since inception. HLL is wholeheartedly involved with all four centres and will
continue to be involved in the future.

4.7 Yashodadham
HLL has reconstructed a village in the Bhachau Taluka of Gujarat's Kachchh district. The
village, which has been named Yashodadham, was dedicated to its 1100 residents in
December 2002. The residents belong to Nani Chirai village, which was completely wrecked
by the devastating earthquake of January 2001.

Yashodadham, spread over 25 acres, comprises 289 homes. HLL has also provided a school
building, an exclusive playground for children and a multi-purpose community centre,
including a crèche, health centre, community room and village administration office. All the
structures are earthquake and cyclone-resistant. Space has been left all along the village for
parks and public squares, where villagers subsequently will plant trees.

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Each house is of 400 sq. ft built-up area, with running water and electricity, in a 1600 sq. ft
plot. As desired by the villagers, the design and foundation of houses and the plot size is such
that they have the scope to build extra rooms in the future. HLL has constructed both an
underground reservoir and an overhead tank for water. HLL, which had launched immediate
relief after the quake in areas adjacent to its Kandla Exports factory, subsequently decided to
reconstruct a village, which was completely wrecked. The objective was to help a completely
wrecked village, because such settlements had the greatest need for help. Forty such villages
were inspected, around Kandla factory, and Nani Chirai was chosen.

4.8 Vindhya Valley

In 2002, the company took up a project in Madhya Pradesh, which will impact the entire
state's rural population. The mainstay of Madhya Pradesh's economy is agriculture. Prosperity
thus means increasing the income of farmers and small town and village entrepreneurs
engaged in agro-processing and cottage industries.

This is where HLL is contributing its expertise. It has helped the state government create
'Vindhya Valley', an umbrella brand, and support software for its marketing, manufacturing
and distribution. The state government has been substantially investing every year to finance
small town and village entrepreneurs. But the lack of marketing skills and market access
denied them the desired success and eventually resulted in most of these ventures becoming
unsustainable. The launch of 'Vindhya Valley', with support software from HLL, is helping
overcome the impediment. It is a truly unique and sustainable form of livelihood generation.
This has resulted as of now in the establishment of 20 small units, based in rural areas,
providing direct engagement to about 1000 families involved in the production of spices,
honey, papad, pickles, agarbatti etc.

The success of 'Vindhya Valley has been recognised by various state governments. HLL has
recently begun work with the Karnataka Government in similar projects to improve the
income and quality of life of rural communities. An umbrella brand, 'Stree Shakti', is being
created for Self-Help Groups (SHGs). The initiative will generate higher sales and higher
returns for the SHGs. In its business operations and in its principles and practices, Hindustan
Lever thus straddles the Indian corporate world, single-mindedly identifying itself with
Indian aspirations and needs in every walk of life.

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 CHAPTER-5
CONCLUSIONS

5.1 Conclusions
HUL (Hindustan Unilever Limited) has spent INR 116 crores (the sum was INR 104 crores in
2016-17) towards various schemes of Corporate Social Responsibility. The Company has a
simple but clear purpose – to make sustainable living commonplace. This purpose inspires
the Company’s vision to accelerate growth in the business, while reducing its environmental
footprint and increasing its positive social impact. The Corporate Social Responsibility (CSR)
Committee comprises OP Bhatt as the Chairman and Aditya Narayan, Dr. Sanjiv Misra,
Kalpana Morparia, Sanjiv Mehta and Srinivas Phatak.

Total Spending on Corporate Social Responsibility (CSR) of Hindustan Unilever Limited

(HUL) as percentage of average Net profit of the Company for last 3 financial years is 2.07%
(Rs 116.09 crore), revealed its annual report for the year 2017-18. During the year, the HUL
has spent an amount of Rs. 8.5 crores on Fair & Lovely Foundation and Rs. 2.14 crores
on Rin Career Ready Academy in accordance with the CSR Policy of the HUL. However,
these spends have not been considered for the purpose of computing prescribed CSR spend of
two percent of the Average Profits.

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 CHAPTER-6
RECOMMENDATIONS

6.1 Recommendations
Corporate Social Responsibility, or CSR, is a movement within the business world that
advocates a larger ethical and social role for corporations. Boards of directors’ structure
corporations to maximize profits for their shareholders, and as a result, according to
advocates of CSR, they frequently exploit or neglect the larger community and the natural
environment. People who make CSR guidelines design them to amend this problem and to
transform large companies into productive corporate citizens who contribute in positive ways
to the community.

6.2 Social
CSR emphasizes the responsibility of corporations to return some of their wealth and success
to the communities that support them. Poverty afflicts many of the developing countries
where multinational corporations employ people in their factories. Problems also exist in the
communities in North America where many corporations have their corporate headquarters.
Given their wealth, social influence and contacts within government and business,
corporations can make a difference for people in need by contributing to efforts in education,
employment training, prison diversion programs, drug counselling and small business
startups. The theory of CSR argues that the companies themselves will benefit from these
activities by helping to create stable and thriving communities that benefit everyone.

6.3 Environmental
The natural environment is the source of all wealth, and those making the wealth have been
badly abusing it for centuries. Vast forests fall for timber, cattle ranching and slash and burn
agriculture. Human activities pollute rivers and air and increasing temperatures eat away at
the polar ice caps. Companies that engage in CSR recognize that their wealth and success are
at least partly to blame for this damage, and contribute money, time and knowledge to
alternatives such as renewable energy, conservation and non-polluting alternatives.

6.4 Employees
The employees who work for a company are the ones who directly produce its wealth. In
some companies, collective bargaining agreements protect their interests, while in others they

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do not. CSR recommends that companies fairly remunerate employees for the efforts that
they put into the success of the company. Equitable packages for employees include fair pay,
benefits, paid vacations and pension plans. Just as importantly, workplaces should be healthy
and safe places that don't subject workers to unregulated toxins or dangerous conditions.

6.5 Customers
Corporations have a responsibility to provide their customers with well made, reasonably
priced products that perform as advertised. Corporations that engage in price fixing or
monopolistic practices attempt to unfairly limit the choices of the buying public, and CSR
discourages these practices. In many cases, they are also illegal. A corporation that conforms
to the dictates of CSR attempts to earn its profits by providing useful products and services to
a community, rather than by maximizing its profits at the expense of exploited consumers.

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