Hindustan Unilever Limited

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PROJECT REPORT ON “corporates social responsibility of Hindustan Unilever Limited” IN PARTIAL FULFILLMENT OF MASTER OF MANAGEMENT STUDIES SUBMITTED BY MISS VARSHA DIPAK PAWAR MMS SEM-III( FINANCE) UNDER THE GUIDANCE OF DR.PRASAD BHANAGE SUBMITTED TO “ MUMBAI UNIVERSITY ” THROUGH

MADANBHAI SURA INSTITUTE OF MANAGEMENT KHED(RATNAGIRI) 2018-2020

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DECLARATION 1I MISS VARSHA DIPAK PAWAR student of MMS –SEM-III at MADANBHAI SURA INSTITUTE OF BUSINESS MANAGEMENT KHED hereby declare that I have

completed my summer internship project entitled “CSR ACTIVITY ON HUL LTD, as partial fulfilment of the requirement of the course curriculum for the academic year 2018-2020. The data collected and the work done by me is truly authentic and is not borrowed or copied from any dissertation report. The project contains true and complete information.

Name : VARSHA DIPAK PAWAR. Sign

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CERTIFICATE This is to certify that “MISS VARSHA DIPAK PAWAR” has submitted the project report, titled “CSR ACTIVITY ON HUL LTD” Completed as per the requirements of the two years full time masters of management studies (MMS) course of Mumbai University for Semester of the academic year 2018-2020.

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Dr. Prasad bhanage

Dr. PRASAD BHANAGE

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ACKNOWLEDGEMENT

“ Gratitude is not a thing of expression ; it is more matter of feeling .” To acknowledge, it would be a word too small for the help and guidance extended by all the people involved in my project as my mentors. There is always a sense of gratitude which one express towards others for their help and supervision in achieving the goals. This formal piece of acknowledgement is an attempt to express the feeling of gratitude towards people who helpful me in successfully completing of my training. My success at RASHTRIYA CHEMICAL AND FERTILIZERS LTD. Was because of the contribution and guide provided to me by the Institute itself. My sincere acknowledgements are due to them. To begin with, I would first like to thank Mr.dharmendra ramteke(H.R.D Manager) for giving me the opportunity to work with RCF and get in depth knowledge about the finance department of RCF ltd . I would also like to thank Mr-vivek oak( finance Manager and Mr G.bhandari Sir for valuable support and help. I take this opportunity thank to dr Prasad bhanage ( director ) at madanbhai sura institute of business management, who has been a guiding light of his encouragement and help in making my internship project a success. Last but not least I would like to thank all the respondents for giving their precious time and relevant information and experience, I required, without which the Project would have been incomplete.

MISS VARSHA DIPAK PAWAR.

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Hindustan Unilever Limited (HUL)

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TABLE OF CONTENTS

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Executive Summary

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MEANING

What is Corporate Social Responsibility (CSR)?

Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public. By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.

To engage in CSR means that, in the ordinary course of business, a company is operating in ways that enhance society and the environment, instead of contributing negatively to them. KEY TAKEAWAYS 

Corporate social responsibility is important to both consumers and companies.

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Starbucks is a leader in creating corporate social responsibility programs in many aspects of its business.

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Corporate responsibility programs are a great way to raise morale in the workplace.

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Importance of CSR Establishing a CSR programme The factors driving companies to pursue a CSR agenda are fairly consistent across the corporate world; however, once a company makes the decision to adopt CSR orientated activities, a plan (involving a lot of engagement with employees, managers, suppliers, NGOs and others) must be implemented to carry out the agreed CSR programme. Within the pages of its CSR Implementation Guide the International Institute for Sustainable Development (IISD) outlines what it considers to be the six key components which go towards a coherent CSR plan

CSR resistance Cynics suggest that companies often develop a CSR agenda not because of an altruistic desire to assist in curing the ills of society, but for reasons more akin to a box ticking exercise. Whatever the consensus, some organisations either implement their CSR programme with a distinct lack of heart or resist adopting a CSR policy altogether. In the opinion of Mr Potts, if a resistance to CSR policies does exist, it usually stems from the notion of allowing external stakeholders to directly influence corporate policies and strategies, Avoiding ethical blowback According to Mr Webb, many companies are shackled by an adherence to a 20th century mindset imbued by the Milton Friedman paradigm of ‘only shareholder returns count’. 9

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Instead, companies should be looking at business strategy through the lens of sustainable supply or resilience – a very different proposition from the Friedman philosophy. “Tesco suffered hugely because all their suppliers hated them, and so did everyone else,” says Mr Webb. “This was because they squeezed everyone and it backfired on them in the end. The Wharton Business School professor Thomas Donaldson calls this type of scenario the ‘ethical blowback’.”

Pressure to deliver strong financial results As CSR programmes continue to evolve and extend their reach, it may well become the case that companies find themselves under added pressure to have their CSR initiatives deliver a strong financial result. If this is indeed true, many would question whether this financially-orientated approach is not somewhat at odds with what the core aims of a CSR programme are supposed to be. “This depends on your timescale,” suggests Mr Webb. “In three to five years, a good CSR strategy will have delivered more engaged employees, better access to talent, lower capital constraints and a better reputation. In the longer term it can deliver serious business innovation and transformation of the company culture and how the firm sees its role in the world. Future embrace

At present, the incorporation of CSR programmes by businesses on a fundamental level appears as prevalent as ever. However, the jury is still very much out as to whether companies have it within them to embrace a broad or multifaceted vision of CSR. “It would be utopic to expect a sea change among industries,” says Mr Potts. “While there are plenty of examples of companies using strong CSR performance as a brand-building and product marketing strategy, far too many corporate executives still rely on the old financial and hierarchical models of yesteryear as the basis of their own planning. The biggest and most influential companies also tend to be the most reliant on the ‘conventional way’ of doing business. 10

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ABOUT COMPANY

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 80 years in India and touches the lives of two out of three Indians. They work to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, they are a part of the everyday life of millions of consumers across India. Their portfolio include leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit. They have over 18,000 employees and aves an annual turnover of INR 31,425 crores (financial year 2015 – 16). They are a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of €53.3 billion in 2015. Unilever has 67.2% shareholding in HUL. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit. The Company has about 18,000 employees and has sales of INR 37660 crores (financial year 2018-19). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of Food, Home

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Care, Personal Care and Refreshment products with sales in over 190 countries and an annual sales turnover of €51 billion in 2018. Unilever has over 67% shareholding in HUL

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Financial Insights Estimated Prescribed CSR Budget FY 2019-20: INR 148.02 Cr

The Company is always dedicated towards CSR activities and has spent more than the prescribed CSR budget in last five financial years. 12

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COMPANY PROFIL

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SCOPE OF STUDY This study highlight the review of corporate social responsibility management of the company. Corporate social responsibility require careful planning and. Control such long term planning and control of CSR. The study helps also to understand how the company estimates the future project cost. The study also helps to understand the analysis of the alternatives proposals and deciding whether or not to commit funds to a particular investment proposal whose benefits are to be realized over a period of time longer than one year. The capital budgeting is based on some tools namely payback period, average rate of return, net present value, profitability index and internal rate of return.

METHODOLOGY:The information for the study obtained from two sources namely-

1. primary sources 2. secondary sources primary sources : it is the information collected directly without any reference,. It is mainly through interaction with concerned officers & staff either individually or collective some of the information has been verified or supplemented with personal observation. This source include . a] through interaction with various department management

SECONDARY SOURCES : This data is from number of books and records of the company, the annual report published by the company and other magazine. The secondary data is obtained from the following. a] collection of required data from annual record, monthly record, internal published book or profile Hindustan uniliver ltd ’’ b] other books and journal & magazine c] annual reports of the company

LIMITAION Through the project was completed successfully with a few limitation may A] since the procedure and policies of the company will not allow to disclose confidential financial information the project has to be completed with available data given to us B] the period of study that that is 6 week is not enough to conduct detailed study of project. 14

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C] The study is carried basing on the information and document provided by the organization and based on the interaction with the various employees of the respective department.

Objective of the project

 Ethics, Transparency and Accountability  Products Lifecycle Sustainability  Employees’ Well-Being  Stakeholder Engagement  Human Rights Environment  Policy Advocacy  Inclusive Growth  Customer Value

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HUL PRODUCTS

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CSR Foundation Description

Hindustan Unilever Foundation

In 2008, HUL commissioned Sustainability to carry out a strategic stakeholder engagement. Based on the findings, a rigorous and detailed exercise was carried out with the HUL Board to create the Hindustan Unilever Foundation (HUF) as its vehicle for social investment in India. Accordingly HUF has been set up as a Section 25 not for Profit Company in India. It operates as a subsidiary to HUL. Water for Public Good with specific focus on livelihoods was identified as the key thrust for the Foundation. The Foundation has partnered with five leading global organizations – Oxfam, Population Services International (PSI), Save the Children, UNICEF, and the World Food Programmer. The Foundational€™s mission is to improve quality of life through the provision of hygiene, sanitation, access to clean drinking water, basic nutrition and enhancing self-esteem. Past Projects undertaken by foundation: • Hand washing • PSI: Improving Health & Hygiene • UNICEF: Sanitation for All • Water works: Improving access to safe drinking water(Bhopal).

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 CSR Project By: Hindustan Unilever Limited (HUL)

Project Budget: INR 3.50 Cr Project

Contribution to Medical Institutions (2018-19)

Project Sector : Preventive Healthcare, Water and Sanitation

Implementing Partners: Direct Implementation Project Description The Company has contributed some amount to different medical institutions for promotion of healthcare. Project Location: pan india-pan india,

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 CSR Project By: Hindustan Unilever Limited (HUL)

Project Budget: INR 0.33 CrProject

Project Ankur (2018-19)

Project Sector : Gender, Equality and Women Empowerment, Senior Citizens Care

Implementing Partners: Direct Implementation Project Description The Company has contributed some amount for project Ankur for providing special education for differently-abled children at Doom Dooma in Assam. Ankur has provided educational and vocational training to 359 differently-abled children. Project Location: Assam,

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 CSR Project By: Hindustan Unilever Limited (HUL)

Project Budget: INR 1.00 Cr

Project

Chief Minister National Relief Fund (2018-19)

Project Sector : Contribution to Central Government Fund

Implementing Partners: Direct Implementation

Project Description HUL has always been at the forefront while responding to a call for national duty and has contributed generous amounts for upliftment of communities hit by natural disasters. Last year during Kerala floods, Company contributed Rs 1 crore towards the Chief Minister’s Distress Relief Fund and provided essential products such as Pureit water purifier, soap, sanitizer, toothpaste, Atta and more as immediate relief during floods. HUL is also contributing towards rebuilding homes in the affected areas. 20

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 CSR Project By: Hindustan Unilever Limited (HUL)

Project Budget: INR 0.68 Cr

Project Sanjeevani (2Project Sector : Preventive Healthcare, Water and Sanitation Implementing Partners: Direct Implementation018-19) Project Description HUL runs a free mobile medical service camp ‘Sanjeevani’ for the local community near Doom Dooma factory in Assam. There are two mobile vans dedicated to the project. Each vehicle has one male and one female doctor, two nurses, a medical attendant and a driver. The vans are equipped with basic kits such as diagnostic kit, blood pressure measuring unit, medicines and a mobile stretcher. More than 3,30,000 patients have been treated in these service camps since its inception in 2003. In 2018 alone, nearly 16,297 patients were treated through this programme.

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 CSR Project By: Hindustan Unilever Limited (HUL)

Project Budget: INR 6.00 Cr Project Prabhat (2018-19) Project Sector : Rural Development

Implementing Partners: Labournet, Mann Deshi Foundation, Development Alternatives, yusuf meherally center, Uday (AVTEG Pvt. Ltd.), ConnectEd Technologies,

Project Description ‘Prabhat’ is HUL’s USLP-linked programme which contributes to the development of local communities around key sites including their manufacturing locations. Prabhat is building on the local community needs at grassroot level through targeted pillars of enhancing livelihoods, water conservation and ‘health and well-being’ awareness. Project Prabhat is live in over 30 locations across the country. It has directly benefited over 2.9 million people across 12 states and two union territories in India through partnerships with over 20 NGOs. More than 5,000 HUL employee volunteers

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In 2018, under the pillar of enhancing livelihoods, Prabhat launched a unique initiative 22

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 CSR Project By: Hindustan Unilever Limited (HUL)

Project Budget: INR 14.75 Cr Project Asha Daan (2018-19)

Project Sector : Gender, Equality and Women Empowerment, Senior Citizens Care

Implementing Partners: Missionaries of Charity

Project Description Asha Daan is a home in Mumbai for abandoned and differently-abled children, HIV-positive patients and destitute people. Since the inception of Asha Daan in 1976, HUL has been looking after the maintenance and upkeep of the premises. At any time, there are about 350-400 inmates at Asha Daan. During the year, the Company contributed to the Project for re-development of Asha Daan with the objective of taking better care of the inmates by providing them better facilities.

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 CSR Project By: Hindustan Unilever Limited (HUL)

Project Budget: INR 47.81 Cr Project

Swachh Aadat Swachh Bharat (2018-19) Project Sector : Preventive Healthcare, Water and Sanitation

Implementing Partners: Direct Implementation

Project Description ‘Swachh Aadat, Swachh Bharat’ (SASB) programme is in line with the Government of India’s Swachh Bharat Abhiyan (Clean India Mission) to promote good health and hygiene practices. In 2018, the programme continued to promote good health and hygiene practices by stressing the

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need to adopt three clean habits (‘Swachh Aadat’) of washing hands five times a day, using a toilet for defecation and adopting safe drinking water practices. A part of SASB, Swachhata Doot is a volunteering programme that enables any person to become a change agent in his / her community. During 2018, through more than 2,000 employees working at the Company’s factories, they reached out to six million people through this programme. Till date 13.5 million people have been reached through the Swachhata Doot programme. The Company also contributes to the Chief Minister of Maharashtra’s Village Social Transformation Mission (VSTM). In this regard, it has also created Swachhata Curriculum that teaches students the importance of adopting three clean habits - washing hands with soap, safe drinking water practices and using clean toilets over a 21-day period. The Community Hygiene Centre – Suvidha is another important project by Company that contributes to SASB

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 CSR Project By: Hindustan Unilever Limited (HUL)

Project Budget: INR 43.35 Cr Project

Project Shakti (2018-19) Project Sector : Gender, Equality and Women Empowerment, Senior Citizens Care

Implementing Partners: Direct Implementation

Project Description Project Shakti is HUL’s initiative which aims to financially empower and provide livelihood opportunities to women in rural India. The Shakti Entrepreneurs are given training for familiarisation with Company’s products and basic tenets of distribution management. The Company has a team of Rural Sales Promoters (RSPs) who coach and help Shakti Entrepreneurs in managing their business. Across 18 States, Project Shakti has 1,09,100 Shakti Entrepreneurs whom they call ‘Shakti Ammas’. This programme has helped Shakti Entrepreneurs gain selling skills, become self-confident, improve their self-esteem, learn negotiating and communication skills. Most importantly, their interventions have helped in building and fostering entrepreneurial mindset amongst Shakti Entrepreneurs. 26

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Other CSR projects

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HUL spends Rs. 126.45 Cr on CSR during FY 2018-19 CSR and business activities are aligned towards contributing United Nation’s Sustainable Development Goals through its initiatives. Hindustan Unilever Limited (HUL), has spent Rs. 126. 45 Cr crore as against its prescribed CSR expenditure of Rs 124.19 crore (2.4% of Average Net Profit of the Company for last 3 financial years of Rs. 6209.71 Crore) during FY 2018-19 towards various schemes of Corporate Social Responsibility (CSR) and Sustainable Development programmes as prescribed under Section 135 of the Act., its Annual Report for the Year 2018-19 revealed.

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CSR and business activities are aligned towards contributing United Nation’s Sustainable Development Goals through its initiatives. According to the report, HUL believes in delivering long-term sustainable growth, while reducing its environmental footprint and increasing its positive social impact. Company has various flagship programmes including Water Conservation Project, Swachh Aadat Swachh Bharat, Project Shakti, Handwashing Behaviour Change Programme, Plastic Waste Management, Project Prabhat, Domex Toilet Academy, Asha Daan, Sanjeevani and Supporting Healthcare, in which majority of CSR fund has been invested. CSR Committee and Meetings The Corporate Social Responsibility (CSR) Committee of HUL comprises O. P. Bhatt – Independent – as the Chairman and Aditya Narayan, during the year 2018-19. The role of CSR Committee includes formulating and recommending to the Board on CSR Policy and its affairs. To review the performance of CSR programmes, Committee met twice during the year. Unilever Sustainable Living Plan HUL has a vision is to accelerate growth in the business, while reducing environmental footprint and increasing positive social impact. This vision has been codified in the Unilever Sustainable Living Plan (USLP) launched in 2010, which designs blueprint for achieving sustainable growth. By spurring innovation, strengthening the supply chain, lowering costs, reducing risks and building trust, sustainability is creating value for organization itself as well as the society. “Company has made good progress on the three USLP big goals to be achieved globally: to help more than a billion people improve their health and well-being, to halve the environmental footprint of our products and to source 100% of our agricultural raw materials sustainably and enhance the livelihoods of people across our value chain.”, annual report said.

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Bibliography

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