PRINCIPLES
CSR Overview:
In Hindustan Lever Limited (HUL), CSR is rooted in its Corporate Purpose - the belief that, "to succeed we require the highest standards of corporate behaviour towards our employees, consumers and the societies and world in which we live.‖
Vision/Mission and the Philosophy regarding CSR:
HUL's CSR philosophy is embedded in its commitment to all stakeholders, including consumers and employees, the environment, and the society the company operates in. HUL acknowledges that development and poverty reduction depend on economic prosperity, and that international trade and investment create new employment, raise skill levels, and increase economic activity. The company depends on sustainable sources of raw materials, and is committed to minimizing the environmental impact, improving sustainability throughout the value chain.
Relating CR to Business Strategies
Relating CR to Business Strategies
Product Development Water conserving products
Human Resource BLT placements, igniting growth volunteering, hiring and investing in local talent (merit-based through employment exchanges)
Manufacturing Safety Health Environment manufacturing Sourcing Code of Business Practices (COBP) Compliance
Sales Shakti, cause marketing
Investment Local enterprise development Profit apportionment Community involvement initiatives
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Major CSR Themes:
Health & hygiene, education, women empowerment, rehabilitation of special or underprivileged children, care for the destitute, HIV-positive, and rural development.
Sustainable initiatives have long-term benefits, and an ongoing business purpose linked to them is given priority focus.
PROCESS
CSR Programs:
1. Community:
Rural Development: HUL launched Project Shakti in 2001 to create income-generating capabilities for underprivileged rural women by providing a small-scale enterprise opportunity, and to improve rural living standards through health and hygiene awareness. The project has been extended to 15 states covering 80,000 villages. The company has launched
‗i-Shakti‘ kiosks – an IT-based rural information service developed to provide information and services to meet rural needs in agriculture, education, vocational training, health, and hygiene. To improve business skills of the rural population, especially women, extensive training programs are held. The total strength of Shakti Entrepreneurs has reached over 30,800. Shakti also contributes approximately Rs 100 crore to HUL‘s topline, and the project was expected to achieve cash break-even by 2006.
Special Education and Rehabilitation Centre: In 1992, HUL started a centre for the handicapped in Assam called Ankur, to impart special education and provide services to children suffering from various disabilities such as cerebral palsy, mental retardation, deafness, blindness, polio, and other physical disabilities. Subsequently, the company launched other centres in Coimbatore called Kappagam (1998) and Anbagam (2003). It is also involved with The Spastics Society of Bangalore in providing education and support to children with brain damage. The society runs a school, a vocational training centre, and a free medical centre in Bangalore. HUL also bears the capital and upkeep expenses for Asha Daan,
63 a home started by Mother Teresa and the Missionaries of Charity in Mumbai for abandoned, challenged children, destitute people and HIV-positive patients.
Women Empowerment: HUL's initiative – The Fair & Lovely Foundation 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.
Disaster Relief: HUL has reconstructed a village in the Bhachau Taluka of Gujarat's Kachch district, which was completely wrecked by the devastating earthquake of January 2001.
2. Environment:
Water Conservation and Harvesting: HUL is also committed to extending its efforts on water management to the larger community, and engages in community projects in water adjacent to manufacturing sites.
3. Education:
Rural Education Program – HUL is also developing a Rural Education Program, which aims at using audio-visual aids, such as video cassettes and CDs. These tools enable teachers to explain basic concepts in mathematics, such as operation on numbers, fractions, algebra, and geometry, to primary school children in villages.
Schools Contact Program – The program indirectly benefits children studying in 21 schools. It offers donations to build an auditorium, a library, or a laboratory, or for purchasing computers, organizing training workshops for teachers, thus enabling them to more effectively manage both classrooms and the school.
4. Health:
Health & Hygiene Education: To educate people about basic hygienic habits, HUL‘s health and hygiene education initiative called Lifebuoy Swasthya Chetana, is the single largest rural educational program ever undertaken in India. The program has so far covered approximately 15000 villages in eight states.
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Organizational Support:
Approximately 9% of the company‘s resources for community involvement come in the form of employee time. Their time is ranged from their involvement in Ashadaan to the disaster affected Yashodadham village near Bhuj. HUL management trainees spend approximately four weeks on Project Shakti in rural areas with NGOs or Self Help Groups.
Financial Outlay:
In 2005, HUL committed Rs 80 million for immediate relief of the tsunami-hit areas of Pondicherry, Tamil Nadu, and Kerala. The company also planned to spend Rs 30 million, inclusive of employees‘
contribution. Its employees donated a day's salary, totaling Rs 5.1 million, which was used to help people restore their homes and start to resume their livelihoods.
The company also provided Rs 10 million for Mumbai flood relief in 2005.