EARTH Our most important stakeholder Dabur India Limited Business Responsibility Report 2011-12 SEBI has mandated to submit report on ‘National Voluntary Guidelines on Social, Environmental & Economic Responsibility of Business’ as issued by the Ministry of Corporate Affairs, which requires businesses to embrace ‘People, Planet, Profit’ approach in a sustainable manner. For this, 9 Principles with their respective Core Elements are suggested to be implemented in the core business processes of an organisation and to report on this to its stakeholders. Following is the Business Responsibility Report of your company on the Principles, Core Elements & Reporting Framework as suggest in the Guidelines. EARTH Our most important stakeholder CLIMATE CHANGE IS ON THE INCREASE AND IS SHAPING OUR PLANET. OUR DESTINY IS INTERTWINED WITH SURVIVAL OF NATURE, AS WE KNOW IT. At Dabur, our aim is to make our own activities more sustainable and encourage our consumers, suppliers and others to do the same. WHILE WE AIM TO CONTINUOUSLY GROW OUR BUSINESS, WE WISH TO DO THIS IN A WAY THAT REDUCES OUR TOTAL ENVIRONMENTAL IMPACT. We are fine-tuning how we source raw materials to how consumers use and dispose of the products and have identified the most significant environmental impacts. AT DABUR, WE DEPEND ON NATURE FOR ITS BOUNTIFUL PICKINGS, WITHOUT WHICH AYURVEDA WOULDN’T EVER HAVE BEEN POSSIBLE. We are equally conscious of giving back more than what we take from our environment, and so we have set ourselves an ambitious target to significantly minimise our impact on the Environment and even help in replenishing the Planet. Business Responsibility Report Contents The Dabur Philosophy 3 Employee Well-Being 20 Chairman’s Message 4 Stakeholder Engagement 24 Organisation Profile 6 Respecting Human Rights 26 Financial Performance For 2011-12 8 Caring For The Environment 28 Awards Bestowed On Dabur 9 — Back To Nature 29 Environment, Social & Governance Policy 10 — Carbon Footprint 36 Key Risks & Mitigation 12 — Water Conservation 38 — Counterfeit Products 12 — Green Manufacturing 40 — Climate Change & Environmental 13 — Packaging Recycling 44 Degradation — LEED Certification 47 — Employee Safety 13 Influencing Public & Regulatory Policy 48 Governance & Commitments 14 Community Service 50 — Vision & Mission 14 — Brand-Led Activities 53 — Code of Conduct 15 — SUNDESH 60 — Whistle Blower & Protection Policy 15 Some Success Stories 78 — Corporate Governance 16 Engaging With Consumers 94 — Shareholder Engagement 17 Goals & Targets For Next Reporting Period(s) 95 Safe And Sustainable Products 18 The Way Ahead… 96 2 | DABUR INDIA LIMITED The Dabur Philosophy Dabur Greenhouse at Banepa, Nepal “DEHI ME DADAMI TE” (AS YOU GIVE ME, I GIVE YOU IN RETURN) This ancient Sanskrit text aptly coveys Dabur’s commitment towards sustainability. At Dabur India Ltd., sustainability is not merely a buzz word. The concept of sustainability is incorporated into the core of our business and has been expanded to encompass our aspirations and responsibilities to the society and to the environment. It is this concept that inspires us to optimize our business performance to tackle the new and growing challenges of environment, technology and sustainability. Business Responsibility Report | 3 Chairman’s Message Dear Partners in Growth, t gives me great pleasure to present towards leaving a deeper imprint on believe that financial performance and I to you our detailed Business the society as a whole. All our actions sustainability go hand in hand and can Responsibilty Report for 2011-12. This is are aimed towards this larger goal never be separated. the first report from the House of Dabur by introducing products that gives that gives you a detailed insight on our consumers health & wellness; by Dabur has a long history of taking our social and environmental operating in a manner that minimizes sustainability into account in the way we initiatives. It is an expression of our our impact on the environment do business every day. Dabur continues commitment towards the environment and even help in replenishing the to place a strong emphasis on societal and the society. planet; and lending a helping hand needs, while addressing environmental to the community. and climate change issues with We have, over the years, taken rapid increased significance. strides in our journey towards going In our over 127 years of existence, we Green, covering new grounds, touching have seen many ups and downs. The Small yet significant steps are being the lives of a several people and year gone by was also a tough one for taken to not only reduce our carbon overcoming challenges along the way. the economy and industries alike as footprint but also continuously This report is a transparent and voluntary the runaway Inflation continued to put monitoring waste generation and disclosure of these sustainability and strain on businesses and margins and establish effluent waste treatment social initiatives. even threatened to slow down growths. plants across all our manufacturing units. Efforts are also on in full swing to At Dabur, we strive to lead in sustainability During such troubled times, it’s only conserve and maintain ground water by taking it into account in everything natural for companies to lose sight of level through a variety of measures, and we do. Our business is committed not sustainability initiatives in their quest I am proud to announce that Dabur just towards profitable growth, but also for business success. We, at Dabur, today has achieved zero discharge Dabur continues to place a strong emphasis on societal needs, while addressing environmental and climate change issues with increased significance. 4 | DABUR INDIA LIMITED Dabur aims to certify all its operational locations with the Integrated Management system OHSAS 18001 and ISO 14001 for Occupational Health, Safety and Environment. of water at nine of its 12 domestic also generate additional income for the the road to establishing a more socially manufacturing units. And we are well people involved. meaningful enterprise. on course to achieve zero discharge of water at all our units. Dabur also aims to certify all its As I conclude, I would like to take operational locations with the Integrated this opportunity to thank all Rain water harvesting continues to be Management system OHSAS 18001 and our valued stakeholders, for their a focused activity at our manufacturing ISO 14001 — Occupational Health, Safety unstinted support in this shared plants. While a lot of ground still needs and Environment. We have already got journey. I, on behalf of the Board and to be covered to emerge a Water- nine manufacturing units certified by the employees of your Company, Positive Corporation, these small steps – TUV NORD, and the others would follow. will look to you as always for your I am confident – would surely go a long This standard is the foundation of the continued support and encouragement. away in fulfilling this dream. overall health, safety and environment We welcome your views on our framework of Dabur. social and environmental performance We have also further broadened our and on this report. environmental focus with greater stress We have grown with India and its people. on biodiversity issues and reviving As we expand our global footprint, Dr. Anand Burman endangered herbs and plants that are we are also matching our business Chairman also core to our business. On the one growth with addressing societal needs Dabur India Ltd. hand, wastelands are being adopted wherever we operate. I am confident to cultivate some of these rare herbs, that our initiatives would go a long way while on the other, special engagement towards conservation and enrichment programmes are being developed of environment while ensuring greater involving local farmers to grow some prosperity of the community. We will rare Himalayan herbs in an effort to strive to fix -- and meet -- more stringent not only augment their numbers but goals for ourselves while progressing on Business Responsibility Report | 5 Organisation Profile EU and US through its brands Dabur, FMCG Business Vatika, Hobby and organic Root Stimulator. Health Care: The market leader for health supplements in India, Dabur is sworn to its abur India Limited is Dabur is a public company with its share motto of being committed to the health listed at premier stock exchanges of the fourth largest FMCG & well-being of every household. With D country viz. NSE & BSE. The company Company in India with brands like Dabur Chyawanprash, Dabur has been promoted by the Burman Honey and Dabur Glucose, Dabur has been Revenues of Rs. 5,362 Crore Family and is professionally managed by at the forefront of innovation & quality in & Market Capitalisation of Mr. P.D. Narang, Group Director and both manufacturing and marketing these Rs. 18,570 Crore. Mr. Sunil Duggal, CEO. products. With these brands, Dabur has also being taking the lead in a variety of Dabur has its manufacturing facilities community service initiatives to build a at 12 locations in India major being at stronger and more immune India. Rudrapur and Baddi and also at overseas locations major being at Ras al-Khaimah, Dabur also has, in its portfolio, a range of Building on a legacy of quality and Nepal and Egypt over-the-counter healthcare products experience of over 127 years, Dabur is covering areas as diverse as women’s today India’s most trusted name and the Dabur’s business can be divided into healthcare, baby care, cough & cold world’s largest Ayurvedic and Natural two categories of consumer products and rejuvenation, besides a host of Health Care Company with a portfolio manufacturing and beauty products retail. ethical medicines. of over 250 Herbal/Ayurvedic products. Dabur’s FMCG portfolio today includes five flagship brands with distinct brand identities -- Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, Réal for fruit juices and beverages and Fem for fairness bleaches and skin care products.