MAKING SUSTAINABLE LIVING BUSINESS RESPONSIBILITY COMMONPLACE REPORT 2014-15 CONTENTS
01 Making Sustainable Living Commonplace 13 Principle 5: Human Rights 06 Principle 1: Ethics, Transparency and Accountability 13 Principle 6: Environment 07 Principle 2: Products Life Cycle Sustainability 15 Principle 7: Policy Advocacy 09 Principle 3: Employees’ Well-Being 16 Principle 8: Inclusive Growth 11 Principle 4: Stakeholder Engagement 18 Principle 9: Customer Value MAKING SUSTAINABLE LIVING COMMONPLACE
HINDUSTAN UNILEVER LIMITED IS COMMITTED TO OPERATE AND GROW ITS BUSINESS IN A SOCIALLY RESPONSIBLE WAY. YOUR COMPANY HAS A SIMPLE PURPOSE – TO MAKE SUSTAINABLE LIVING COMMONPLACE.
Sustainability enshrined in this purpose Plan (USLP) since the year 2010 and has USLP also contributes to activities listed in builds future resilience of the business made good progress on the goals set by the ‘National Voluntary Guidelines on and ensures that your Company creates a the Plan. Social, Environmental & Economic long-term value for its stakeholders. It Responsibilities of Business (NVGs)’ also enables your Company to achieve the Through USLP your Company has notified by the Ministry of Corporate ambitious Unilever Sustainable Living committed to help more than a billion Affairs, Government of India as well as Plan (USLP) which spans across the value people take action to improve their health activities listed in Schedule VII of Section chain of its operations. and well-being, halve the environmental 135 of the Companies Act, 2013. footprint of the making and use of the The Company’s vision is to double the size products and enhance the livelihoods of This Report describes activities of the of the business whilst reducing the millions while growing the business – and Company under each of the nine principles environmental footprint and increasing its your Company has set tough targets to as outlined in the NVGs. positive social impact. Your Company has make sure that it delivers. For more embraced the Unilever Sustainable Living information on the USLP, visit www.hul.co.in.
Business Responsibility Report 2014-15 Making Sustainable Living Commonplace 1 SECTION A : GENERAL INFORMATION ABOUT THE COMPANY
1. Corporate Identity Number (CIN) of the L15140MH1933PLC002030 Company
2. Name of the Company Hindustan Unilever Limited
3. Registered address Unilever House, B D Sawant Marg, Chakala, Andheri East, Mumbai 400099
4. Website www.hul.co.in
5. E-mail id [email protected]
6. Financial Year reported 1st April 2014 to 31st March 2015
7. Sector(s) that the Company is engaged • 20231 Soaps in (industrial activity code-wise) • 20233 Detergents • 20236 Shampoos • 20235 Toothpastes • 20234 Deodorants • 20237 Cosmetics • 10791 Tea • 10792 Coffee • 10750 Packaged Foods (Including Frozen Desserts) • 27501 Water Purifiers
8. List three key products/services that the • Soaps & Detergents Company manufactures/provides (as in • Personal Products [including Skin care, Hair care, Oral care, Deodorants and balance sheet) Colour Cosmetics] • Beverages & Packaged Foods [including Tea, Coffee, Packaged Foods, Frozen Desserts, Ice Cream and Bakery Products]
9. Total number of locations where business activity is undertaken by the Company
i. Number of International Locations None (Provide details of major 5)
ii. Number of National Locations • Registered Office: Unilever House, B D Sawant Marg, Chakala, Andheri East, Mumbai 400 099 • Research Centre: 64, Main Road, Whitefield P O, Bangalore 560 066 • Regional Office (East): Brooke House, 9 Shakespere Sarani, Kolkata 700 071 • Regional Office (West): Uttara, Plot No. 2, Sector No. 11, CBD Belapur, Navi Mumbai 400 614 • Regional Office (North): Block No. A, Plot No. B, South City I, Delhi - Jaipur Highway, Gurgaon 122 001 • Regional Office (South): 101, Santhome High Road, Chennai 600 028 • Regional Office (Lucknow): Office Space Number 101, 102, 103, 108 and 109, Shalimar Titanium Vibhuti Khand, Gomti Nagar, Lucknow, Uttar Pradesh 226010 (For details of Plant Locations, please refer to the Annual Report 2014-15.)
10. Markets served by the Company India
2 Introduction to Business Responsibility Report Hindustan Unilever Limited SECTION B: FINANCIAL DETAILS OF THE COMPANY
1. Paid up Capital (INR): 21,634.65 Lakhs 2. Total Turnover (INR) 30,17,050 Lakhs 3. Total profit after taxes (INR) 4,31,526 Lakhs 4. Total Spending on Corporate Social Responsibility (CSR) 2.1% (INR 8,235 Lakhs) as percentage of average Net profit of the company for last 3 financial years
5. List of activities in which expenditure in 4 above has been incurred (Rs. lakhs) Sr. CSR Project Relevant Projects/ Amount Amount spent on the Cumulative Amount spent No. Section of Programmes outlay project/programs expenditure Direct / through Schedule coverage (budget) upto 31st implementing VII in which March, 2015 agency* the Project Direct Overheads is covered expenditure (Note 1) 1 Handwashing Behaviour (i) Bihar 60 60 - 60 CIFF Change Programme 2 Safe Drinking Water (i) West Bengal 200 199 - 199 Population Services International (PSI) 3 Domex Toilet Academy (i) Chindwara, 106 106 - 106 eKutir UP and Orissa 4 Ashadaan (iii) Mumbai 67 88 - 88 Direct 5 Sanjivani (i) Assam 70 66 - 66 Direct 6 Water Conservation Projects (iv) PAN India 2,200 1,890 222 2,112 Implementing Agencies (Note 2) 7 Environment & Sustainability (iv) PAN India 263 263 - 263 Direct - Supply Chain 8 Solidaridad - (iv) PAN India 126 126 - 126 Solidaridad Sustainability Regional Expertise (Tea Procurement) Centre 9 Project Shakti (iii) PAN India 4,651 4,651 - 4,651 Direct 10 Fair & Lovely Foundation (ii) PAN India 300 100 154 254 Direct
11 Livelihood Programme - (ii) PAN India 150 147 - 147 Labour Net and Prabhat TARA Livelihood Academy 12 Ankur School (iii) Assam 30 22 - 22 Direct 13 Project Sunlight (iv) PAN India 105 105 - 105 Direct 14 Relief Funds / Save the (iii) Delhi 31 31 - 31 Direct Children - Donation 15 Good Life Club - (ii) Chennai 5 5 - 5 Direct Scholarship (Hot Tea Shop) TOTAL 8,364 7,859 376 8,235
Note 1: (i) eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water (ii) promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly, and the differently abled and livelihood enhancement projects; (iii) promoting gender equality, empowering women, setting up homes and hostels for women and orphans; setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically backward groups; (iv) ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water; Note 2: Foundation for Ecological Society, Mysore Resettlement and Development Agency, Society for Promotion of Eco Friendly Sustainable Development, Development Support Centre, Aga Khan Rural Support Programme (India), DHRUVA, Maharashtra Institute of Technology Transfer for Rural Areas (Khamgaon), Maharashtra Institute of Technology Transfer for Rural Areas (Nashik), Solidaridad Regional Expertise Centre, Watershed Organisation Trust (WOTR), Sanjeevani Institute for Empowerment and Development, Parmarth Samaj Sevi Sansthan, People’s Action for National Integration, Professional Assistance for Development Action, International Finance Corporation, Samuha, Baif Institute for Rural Development, Parmarth Samaj Sevi Sansthan- Sumerpur, Sahjeevan
Business Responsibility Report 2014-15 Introduction to Business Responsibility Report 3 SECTION C : OTHER DETAILS 1. Does the Company have any Subsidiary Company/ As on 31st March, 2015, your Company has 11 subsidiary Companies? companies. Hindustan Unilever Foundation and Bhavishya 2. Do the Subsidiary Company/Companies participate in Alliance Child Nutrition Initiatives - both not-for-profit companies the Business Responsibility (BR) initiatives of the parent incorporated to promote and implement the Corporate Social company? If yes, then indicate the number of such Responsibility agenda and work in the areas of social, economical subsidiary company(s) and environmental concerns and contribute to the sustainability initiatives of the Company. In addition, Unilever India Exports Limited and Pond’s Exports Limited also contribute to the sustainability initiatives of the Company. 3. Do any other entity/entities (e.g. suppliers, distributors The Code of Business Principles and Business Partner Code etc.) that the Company does business with, participate are applicable to all the business partners of the Company. The in the BR initiatives of the Company? If yes, then business partners of the Company are required to follow these indicate the percentage of such entity/entities? [Less codes in their business endeavours. than 30%, 30-60%, More than 60%] SECTION D : BUSINESS RESPONSIBILITY (BR) INFORMATION DETAILS OF DIRECTOR/DIRECTORS RESPONSIBLE FOR BR The Corporate Social Responsibility Committee comprises of Mr. O. P. Bhatt as the Chairman and Mr. Aditya Narayan, Dr. Sanjiv Misra, Ms. Kalpana Morparia, Mr. Sanjiv Mehta and Mr. P. B. Balaji as members of the Committee.
The role of the Corporate Social Responsibility Committee is as follows: • formulating and recommending to the Board the CSR Policy and activities to be undertaken by the Company; • recommending the amount of expenditure to be incurred on CSR activities of the Company; • reviewing the performance of the Company in the area of CSR; • providing external and independent oversight and guidance on the environmental and social impact of how the Company conducts its business; • monitoring CSR Policy of the Company from time to time; • monitoring the implementation of the CSR projects or programs or activities undertaken by the Company;
The Committee is responsible for the implementation of the CSR Policy of the Company. The details of the Committee members are as follows: Name Designation DIN Mr. O. P. Bhatt* Independent Director 00548091 Mr. Aditya Narayan Independent Director 00012084 Dr. Sanjiv Misra Independent Director 03075797 Ms. Kalpana Morparia Independent Director 00046081 Mr. Sanjiv Mehta Chief Executive Officer & Managing Director 06699923 Mr. P. B. Balaji Executive Director, Finance & IT and 02762983 Chief Financial Officer *Chairman PRINCIPLE-WISE (AS PER NVGs) BR POLICY / POLICIES (REPLY IN Y/N) Your Company conducts its business with integrity and with respect for all those associated with its activities. These values are an asset to the Company, just as its people and brands. To maintain these values and the reputation created from it, your Company requires the highest standards of behaviour – consistently observed by all associated with it. The Code of Business Principles (CoBP) sets out these standards. CoBP is the guiding principle on the basis of which various policies of the Company are formed. USLP is a time bound plan with specific goals and targets that commits us to deliver sustainable growth. The CoBP and the USLP also imbibe the requirements enunciated in the National Voluntary Guidelines. The National Voluntary Guidelines provides the following nine principles Principle 1: Ethics, Transparency and Accountability [P1] Principle 6: Environment [P6] Principle 2: Products Lifecycle Sustainability [P2] Principle 7: Policy Advocacy [P7] Principle 3: Employees’ Well-being [P3] Principle 8: Inclusive Growth [P8] Principle 4: Stakeholder Engagement [P4] Principle 9: Customer Value [P9] Principle 5: Human Rights [P5]
4 Introduction to Business Responsibility Report Hindustan Unilever Limited Sr. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9 No. 1 Do you have policy/policies for… Y Y Y Y Y Y Y Y Y 2 Has the policy been formulated in consultation Y Y Y Y Y Y Y Y Y with the relevant stakeholders? 3 Does the policy conform to any national / Y Y Y Y Y Y Y Y Y international standards? If yes, specify? The Code of Business Principles (CoBP) of the Company confirms to the United Nations Global Compact (UNGC) guidelines and International Labour Organisation (ILO) principles. The Unilever Sustainable Living Plan Progress Report conforms to Global Reporting Initiative (GRI) indicators.
4 Has the policy been approved by the Board. Y Y Y Y Y Y Y Y Y If yes, has it been signed by MD/owner/CEO/ appropriate Board Director? The Code of Business Principles and USLP are frameworks adopted by Unilever globally and have been adopted by the Company. 5 Does the company have a specified committee Y Y Y Y Y Y Y Y Y of the Board/ Director/Official to oversee the implementation of the policy? The CoBP is administered under the overall supervision of the Management Committee of the Company, headed by the Chief Executive Officer and Managing Director. The Audit Committee of the Board reviews the implementation of CoBP. The CSR Committee of the Board reviews the implementation of the USLP besides the scope that has been laid out for this Committee under the Companies Act 2013. 6 Indicate the link for the policy to be viewed USLP: online? www.hul.co.in/sustainable-living-2015/ CoBP: www.hul.co.in/aboutus/purposeandprinciples/ourprinciples/ Supplier Code: www.hul.co.in/aboutus/purposeandprinciples/business_partner_code/ 7 Has the policy been formally communicated to Y Y Y Y Y Y Y Y Y all relevant internal and external stakeholders? 8 Does the company have in-house structure to Y Y Y Y Y Y Y Y Y implement the policy/policies 9 Does the Company have a grievance redressal Y - Y Y Y Y - - Y mechanism related to the policy/policies to address stakeholders’ grievances related to the policy/policies? 10 Has the company carried out independent Y Y Y Y Y Y Y Y Y audit/ evaluation of the working of this policy by an internal or external agency?
GOVERNANCE RELATED TO BR The CSR Committee of the Company The Company publishes an update on The Management Committee of the comprising a majority of Independent progress in India under Unilever Company on a monthly basis reviews Directors is responsible for formulating, Sustainable Living Plan, every year. The complaints, issues and concerns received implementing and monitoring the CSR USLP India Progress Report 2014 can be under the CoBP framework as also the Policy of the Company. The Committee accessed at www.hul.co.in implementation of the CoBP. The Audit reviews progress on various sustainability Committee of the Company on a quarterly initiatives, including progress under the In line with the requirements of the basis reviews the implementation of the USLP. Companies Act, 2013, your Company has CoBP. also published the Annual Report on CSR activities, which forms part of the Directors’ Report of the Company.
Business Responsibility Report 2014-15 Introduction to Business Responsibility Report 5 PRINCIPLE 1: ETHICS, TRANSPARENCY AND ACCOUNTABILITY
BUSINESSES SHOULD CONDUCT AND GOVERN THEMSELVES WITH ETHICS, TRANSPARENCY AND ACCOUNTABILITY
HUL has always believed that good The Code along with its associated Code taken after completion of investigation. corporate governance is the foundation of Policies provides for mandatory The Chief Executive Officer (CEO) through a sustainable business. The Company was requirements covering, but not limited to, the Management Committee and Business built on this foundation and today has a the following areas: / Unit Heads is responsible for ensuring proud legacy of more than 100 years of that the Code is understood and operating in the country with integrity, • accurate records implemented throughout the Company. ethics, transparency and accountability. • reporting and accounting The Company periodically cascades the • anti-bribery principles embodied under CoBP across The seeds of good governance were sown • anti-competition the organisation. by the visionary founders William Hesketh • avoiding conflicts of interest Lever and Samuel van den Bergh of the • gifts and entertainment The Company also has a Whistle Blower Company right from the inception of the • preventing insider trading Policy which allows employees to bring to business. Our founders did not just create • political activities and political the attention of the Management, promptly some of the world’s first consumer donations and directly, any unethical behaviour, brands; they also built a business with • contact with government suspected fraud or abrasion or irregularity strong values and a mission to act as • regulators and non-governmental in the Company practices which is not in agents of social change. Today, the organisations line with the Code of Business Principles. Company continues on this journey, • respect, dignity and fair treatment The Company has provided dedicated keeping the values and principles at the • and external communications (the e-mail addresses whistleblowing.hul@ heart of everything it does. media, investors and analysts) unilever.com and [email protected] for reporting such complaints. These values and the commitment to The copy of the Code of Business Alternatively, employees can also send ethical business practices are reflected in Principles is available on the website of written communication to the Company. the Code of Business Principles (CoBP). the Company www.hul.co.in/aboutus/ Employees are encouraged to raise any The Code inspires the Company to set purposeandprinciples/ourprinciples/ concerns by way of whistle blowing standards which not only meet the without any fear or threat of being requirements of applicable legislations but The processes of identifying and resolving victimised. go beyond in many areas of it’s functioning. complaints, issues and concerns received under the CoBP framework are clearly The Company Secretary is the designated defined and regularly communicated officer for effective implementation of the CODE OF BUSINESS throughout the Company. During the Policy and dealing with the complaints PRINCIPLES financial year 2014-15, a total of 120 registered under the Policy. The Code of Business Principles describes complaints and issues from employees the operational standards the Company and business partners were reported All cases registered under the Code of follows. It also supports its approach to under the CoBP framework and the same Business Principles and the Whistle governance and corporate responsibility. were investigated and dealt with in Blower Policy of the Company are reported accordance with the CoBP protocols of the to the Committee of Executive Directors All employees, suppliers, distributors and Company. and are subject to review by the Audit other third parties who work with the Committee. Company are expected to observe the Code Complaints, issues and concerns received of Business Principles. under the CoBP framework are duly investigated and reviewed by the CoBP Committee(s). Appropriate actions are
6 Ethics, Transparency and Accountability Hindustan Unilever Limited PRINCIPLE 2: PRODUCTS LIFECYCLE SUSTAINABILITY
BUSINESSES SHOULD PROVIDE GOODS AND SERVICES THAT ARE SAFE AND CONTRIBUTE TO SUSTAINABILITY THROUGHOUT THEIR LIFECYCLE
Through the Fair & Lovely Foundation, the brand has been empowering Indian women. This year, the Foundation also provided scholarships to young women for vocational training and starts-ups.
You can read more on similar initiatives by brands in the section ‘Brands In Action’ on the website www.hul.co.in and can also download our Unilever Sustainable Living Plan India Progress Report 2014 from the company website.
SUSTAINABLE SOURCING Sourcing sustainably helps secure the supplies, reduces risk and volatility in the raw material supply chains. A dedicated team is responsible for HUL’s procurement programme, including agricultural raw materials. In 2014 the Company rolled out Your Company’s product lifecycle behavior change programmes have the Responsible Sourcing Policy (RSP) as approach spans the entire value chain reached out to 63 million people since part of its commitment to business – from sourcing of raw materials to the 2010 and has led to improved health & integrity, openness, respect for universal way consumers use its products. It is hygiene standards in lives of millions of human rights and core labour principles. crucial to manage and understand this people who buy Lifebuoy products product lifecycle to achieve the ambitious each year. Sustainable sourcing also opens up targets of the Unilever Sustainable opportunities for innovation and Living Plan. Pureit, the in-home water purifier, has partnerships. The Company sources 100% partnered with microfinance institutions of palm oil and a large part of tea, The Company has progressed well in (MFIs) to provide safe drinking water to low vegetables and fruits from sustainable making its product lifecycle sustainable income families through easy sources. To read some of the important within its direct operations. However, installments. This self-sustaining sourcing initiatives, please refer to the managing product lifecycle sustainability business model has led to protecting over online USLP India Report 2014 available on at the consumer end is proving to be three lakh low income households, in the www.hul.co.in challenging. The Company tries to combat last few years in urban slums and remote this challenge through product innovations rural areas with Pureit devices. Pureit has LIFECYCLE ASSESSMENT and use of technology. New products are cumulatively, provided 65 billion litres of Your Company’s brands are making a being innovated like Comfort One Rinse: safe drinking water globally. In India, difference to millions of lives. To know which saves two buckets of water Pureit has provided 55 billion litres of their impact across the value chain, your per wash. water as of end of 2014. Company has adopted the Lifecycle Assessment (LCA) process of Unilever. BRANDS WITH A PURPOSE Kissan through its Kissanpur campaign LCA works in three ways: Innovation is at the heart of your motivated children to get off gadgets and Company’s ambition to grow sustainably. enjoy ‘real’ nature. Kissan launched a • New product design Your Company carefully evaluates social special pack with Pogo that helped kids When designing new products LCAs and environmental concerns, risks and get creative with empty ketchup bottles are routinely used to compare new and opportunities while designing our brands. helping in cutting down waste. These existing products and to measure the efforts helped Kissan Ketchup deepen its differences in their respective Lifebuoy has embraced a social mission to connect with consumers and outpace environmental profiles. This spread importance of good handwashing market growth. information is used to help guide habits in people. Lifebuoy handwashing product developers during the
Business Responsibility Report 2014-15 Products Life Cycle Sustainability 7 innovation process and may be used to on the basis of sound science and applying environmental risk better and leads to inform consumers of the environmental rigorous standards of product safety. significant reduction in costs. performance of your Company’s products in the future. Unilever has a Safety & Environmental Initiatives like using light weight materials, Assurance Centre (SEAC) which assures optimising structural and material design, • Existing product assessment the safety and environmental sustainability developing concentrated versions of LCAs are conducted on the existing of the products as well as the processes products and eliminating unnecessary products and ingredients to help used to manufacture them. Your Company packaging, have resulted in significant identify improvement opportunities, to works closely on all safety and reduction of over 700 tonnes of plastic and improve data quality and relevance to environmental assurance issues with around 4,900 tonnes of paper in 2014. the studies and also to support external SEAC. Stringent guidelines are followed on communications. product quality and rigorous systems and A ZERO NON-HAZARDOUS processes are put in place to monitor and WASTE TO LANDFILL • Science and methodological control quality of raw materials and ORGANISATION development products before finished goods are All the factories of your Company are zero Unilever works on an ongoing basis released to the market for consumer use. non-hazardous waste to landfill sites. with partners to develop scientific Waste generation across units is approaches for LCA. It actively engages In case consumers face any issues with minimised through the principles of 3R’s in, and promotes the development of, our products they can reach the Company - reduce, reuse and recycle. new sciences to improve both the through Levercare – an initiative of the Co-processing of wastes in cement kilns, robustness and scope of lifecycle- Company that allows consumers to composting of biomass boiler ash, based approaches and assessment. register complaints and obtain information converting ETP (Effluent Treatment Plant) regarding the Company’s products. This sludge into fuel gas generation, reduction PRODUCT SAFETY may include selection of products among of process waste generation through Product safety is another crucial the range of offerings, product benefit, improvement in extraction systems were parameter of product lifecycle. All of your direction for use and safety of ingredients the major initiatives that led to waste Company’s products and processes are used in the products. reduction during the year. Recyclable designed to be safe for their intended wastes such as packaging materials, consumer or customer end use. MANAGING PACKAGING WASTE empty raw material containers and project Your Company has set ambitious goal to scrap were segregated at source and were The Code of Business Principles of the reduce waste associated with packaging re-used. Company sets out the commitment to its products. Reducing the weight of provide products and services which are packaging through a number of innovative safe for their intended use and to innovate techniques helps manage the
LIFEBUOY ‘STICKS’ TO GOOD WASTE MANAGEMENT PRACTICE
Packaging is vital part of a product’s In 2014, your Company challenged the lifecycle. It increases product’s shelf life status quo existing for last two decades and ensures that the product quality is not in packing its Lifebuoy soaps. The compromised. This is true for products Company introduced the application of across all our brands and categories. Hot Melt (a polymeric coating material) Adhesive for sealing Lifebuoy soap bar However, packaging has a major pitfall. It wrappers. increases the waste generated through the usage of products. Reduction in the The process was further optimised by packaging will ensure less waste going to applying Hot Melt Adhesive only on the the landfills, more cost savings are end panels and belly areas of the generated in materials, energy, transport wrapper instead of the entire wrapper. and disposal. The more we can design in the spirit of the circular economy, the This is expected to result in annual more value we can create for the company polymer savings of 300 tonnes for and for others. Lifebuoy alone. Your Company is in the process of extending this technology to other soap brands as well.
8 Products Life Cycle Sustainability Hindustan Unilever Limited 9 PRINCIPLE 3: EMPLOYEES’ WELL-BEING
BUSINESSES SHOULD PROMOTE THE WELL-BEING OF ALL EMPLOYEES
Employee well-being is a continuous Company is often referred to as a “CEO these, there are leadership programs process at HUL, enabling employees to Factory” having contributed over 400 CEOs led by leaders through the year to build feel good, live healthy and work safely. within the corporate world. functional capabilities. Your Company believes that employee health, nutrition and well-being are CAPABILITY BUILDING AND • People Planning Processes: Your imperative to achieve a profitable growth. TRAINING Company has a rigorous and Your Company is always trying to create an • Unilever Future Leaders Programme: transparent people planning process organisation which promotes the well- With its robust talent systems and which is owned by leaders at each level being of all its employees while giving processes, your Company identifies who review and assess talent on both them ample opportunities to perform. talent early and invest to build the “What” and the “How’” of capability. HUL’s flagship Unilever performance through an objective Your Company is known for its efforts to Future Leaders Programme (UFLP) is process. Capability building and career build capability and leadership among the a highly sought after programme by plans for talent form an integral part of employees and attracting some of the best fresh recruits. In 2014, HUL celebrated this process. talent in the marketplace. 60 years of UFLP. The programme has emerged as an established foundation • Growth Through Diversity of THE “LEADERSHIP FACTORY” for many inspiring leaders across and Experience: Your Company has a Your Company’s strong employer value beyond Unilever. clearly defined career philosophy which proposition is rooted in its unique revolves around job rotation and positioning as a “Leadership Factory” – • 70:20:10 Capability Building: HUL’s diversity of experiences at all stages of offering big jobs early on in career to holistic 70:20:10 capability building the individual’s career. groom for functional and business approach ensures blended learning Internationalisation is also built-in and leadership responsibilities. Over 200 with 70% capability built on the job currently around 200 managers of the managers of HUL, currently serve Unilever through live assignments, 20% through Company have been expatriated to globally in leadership roles across coaching, short term projects and other Unilever countries. markets and functions with the numbers exposures and 10% through classroom, increasing over the last few years. Your virtual and e-learning. Over and above
SHARPENING SKILLS AT HR FOR FACTORIES floor employees. ‘Stepping into One’ THE SHOP FLOOR In the manufacturing units, your Company (SIO), a capability intervention, supports has taken a huge leap in its capability building the talent pipeline for all shop Your Company keeps a sharp focus on agenda for shop floor employees by floor employees into potential executives proactive and employee centric shop launching HR for Factories and World floor practices. It has undertaken a host Class Manufacturing (WCM) to focus on DIVERSITY AT THE SHOP FLOOR of programmes in the space of skill enhancement and career A total of 100 female employees now capability building on the shop floor. progression. work on our shop floors. In 2014, over 50 women were recruited to work on shop The Front Line Leadership Development floors, who went through a structured Programme (FLDP), designed especially induction programme to enhance the for the supply chain supervisors to develop required skill sets for working in the right competencies essential to lead factories. They were trained on aspects the shop floor was launched last year. related to quality, gender sensitisation, industrial skills etc. After completion of SPARKLE AT SHOP FLOOR training, they were posted in various The Shop floor Skill Upgradation departments including Quality programme, ‘Sparkle’, a centrally hosted Assurance, Commercial Operations and intranet based tool, supports skill Safety. mapping, skill assessment, performance assessment and gap analysis for the shop
8 Hindustan Unilever Limited Business Responsibility Report 2014-15 Principle 2: Products LifeEmployees’ Cycle Sustainability Well-Being 9 employees are women. This has been employees. As part of induction to new achieved in a systematic manner through employees, Prevention of Sexual senior leadership commitment, balanced Harassment of Women at Workplace hiring practices, enabling infrastructure (Prevention, Prohibition and Redressal) and work practices like daycare centres, Act, 2013 and its consequences have agile and flexible work arrangements. The been shared with employees. thrust is to further build an inclusive organisation which acknowledges and FREEDOM OF ASSOCIATION, appreciates differences and leverages the PARTICIPATION AND COLLECTIVE diversity. BARGAINING Your Company follows the principle of BUILDING THE Your Company’s initiatives to achieve a freedom of association and right to EMPLOYER BRAND winning balance are elaborated in the negotiate. The human rights practices For the fourth year in a row, the Company online USLP India Report 2014. assure respect for the right of employees was recognised as the ‘No. 1 Employer of to freedom of association and recognition Choice’ among students on campus in the AFFIRMATIVE ACTION AND of employees’ rights to collective Nielsen survey. In addition, your Company PREVENTION FROM SEXUAL bargaining, where allowed by law. There retained the ‘Dream Employer’ status for HARASSMENT are 103 employee associations in HUL. the fourth consecutive year and continued We have a policy on affirmative action and Nearly 10,000 permanent employees are to be the top company considered for a policy on prevention of sexual members of these associations. During application by B-School students. harassment to ensure a harassment free the last year, we entered into long term workspace for all our employees. settlements with around 1,000 employees The Facebook ‘Unilever Diaries’ page has covering four factories / branches across over 5,00,000 fans and helps the Company • All the Company’s employees and the India. to deepen its engagement with the employees from subsidiaries are extended student community. This in turn communicated on the various aspects There are over 100 permanent female blue helps strengthen the brand image among of prevention of sexual harassment at collar employees in our factories and over students. The Alumni Facebook group that work through e-mailer articles and 20 permanent blue collar employees with engages ex-employees crossed the 1,000 other means of communication disabilities in our factories. member mark in 2014. regularly. FAIR LABOUR PRACTICES OCCUPATIONAL HEALTH, SAFETY • The Sexual Harassment of Women at Your Company has an excellent record on AND WELL-BEING Workplace (Prevention, Prohibition & industrial relations and since 2008 has Occupational Health & Safety is considered Redressal) Act, 2013 (the Act) requires maintained a record of near-zero loss of one of the prime responsibilities of the companies to constitute Internal man days due to industrial unrest. We Company. The entire line management is Complaints Committee (ICC), consisting currently have around 3,800 employees responsible for driving physical, mental and of at least one external member and who are employed on contractual / emotional well-being with ample support 50% women members. As per the temporary basis. from a well qualified medical team. The CEO requirement of the said Act, your heads the Central Safety, Health & Company has constituted Internal GRIEVANCE REDRESSAL Environment Committee, which reviews the Complaints Committees. It has The CoBP and Whistle Blower Policies health & safety performance of the designated the external independent provide for reporting in confidence of Company. member as a Chairperson for each of issues like child labour, sexual the Committees which is beyond the harassment etc. Your Company has By end of 2014, the Company had achieved requirements of law. provided a dedicated e-mail address and a 76% reduction in Total Recordable 24 hour hotline to which all whistle blower Frequency Rate (TRFR) compared to 2008 • During the year, two complaints with complaints can be sent. The identity of the baseline for accidents in factories and allegations of sexual harassment were complainant is always protected. Systems offices. filed with the Company and the same and mechanisms have been put in place to were investigated and resolved as per ensure non-retaliation and non- Please refer the online USLP India Report the provisions of the Act. victimisation of the complainant. 2014 available at www.hul.co.in to read more on employee well-being initiatives. • More than 26 gender sensitivity All complaints, including complaints of workshops were conducted in the last sexual harassment, received are dealt as one year covering approximately 900 per the CoBP protocols. The total number CREATING A GENDER-BALANCED employees across the country. of complaints received have been reported WORKPLACE under Principle 1. During the year, there Diversity and inclusion is at the centre of • In addition to this, a web based training have been no complaints alleging child the Company’s talent agenda. The aim is to module on Gender Sensitisation / labour, forced labour, involuntary labour be a gender balanced organisation in all Prevention of Sexual Harassment of and discriminatory employment. parts of the organisation and we refer to Women at Workplace has been this as Winning Balance. At the assigned as a mandatory training for managerial level, one third of the
10 Employees’ Well-Being Hindustan Unilever Limited PRINCIPLE 4: STAKEHOLDER ENGAGEMENT
BUSINESSES SHOULD RESPECT THE INTERESTS OF, AND BE RESPONSIVE TOWARDS ALL STAKEHOLDERS, ESPECIALLY THOSE WHO ARE DISADVANTAGED, VULNERABLE AND MARGINALISED.
To achieve the big goals of the Unilever sales system focused on some key helpline provides a single view of the Sustainable Living Plan, your Company initiatives like driving higher consumer and subsequent insights to partners with many people and throughput per store to harness the positively impact the Company. organisations that have a stake in its power of the significant coverage business. Engaging with stakeholders is expansion done in previous years. The • Project Sunlight: It is your Company’s essential in understanding stakeholder number of stores were increased which initiative to involve its consumers to concerns and expectations to create a positively impacted the growth. Your build a world where everyone lives well sustainable business. Company also focused on over 100,000 and lives sustainably. It allows people select high throughput stores, and to contribute in form of volunteering, Your Company actively engages with significantly increased its presence and spreading the message on social several stakeholders through a number of impact in these. media, preaching and practicing dedicated platforms. behaviour changing habits or by just • Building Brands in Store: Your watching and sharing our videos. In CONSUMERS AT THE HEART OF Company focused on Building Brands 2014, your Company took up two issues OUR BUSINESS in Store, especially in Modern Trade. that are important for India to create a Nine out of 10 households in India use HUL The aim was to design and deploy plans brighter future – first, to stop littering products. As a business your Company’s that help build brand equities through and second to reduce water wastage. first responsibility is to its consumers. in-store execution. Children were the key influencers for Being consumer centric also helps the both the initiatives. Company to create sustained prosperity • Levercare: In another endeavour to for its shareholders. Therefore, your connect with its Consumers and CUSTOMERS Company has taken a number of steps to provide them with better service, your Your Company has undertaken some raise the levels of consumer engagement. Company has Levercare - a toll free important initiatives during the year to number, email and a postal address become more customer centric and win in • Winning In Many Indias: Last year, where Consumers can reach the the marketplace. These initiatives include: acknowledging the homogeneity in the Company directly. Levercare is a diversity of India, your Company win-win for both, the Consumer and the • Call centres: Establishing dedicated segmented the market into 14 Company. It gives consumers the call centres for distributors as well as consumer clusters. The attempt at promise of better service and provides retailers to reach out to the Company. ushering in this new wave of the Company the opportunity to The call centres set up for retailers segmented marketing was christened connect with consumers directly and have helped many of the traditional ‘Winning in Many Indias’ (WIMI).This understand their needs, expectations trade customers reach out directly to project entailed moving the and aspirations. It helps consumers the Company. The Company receives organisation from a four sales branch voice their queries, grievances, praise more than 3,000 calls every month structure to 14 distinct consumer and offer suggestions / ideas. The from distributors and retailers. The clusters under five sales branches with no disruption to operations. The 14 clusters enable to understand better, the changing preferences drilled down to the interiors and multiple consumer segments. This empowers the Company to respond appropriately and swiftly to market conditions.
• Dial Up the Big Q: Your Company introduced Dial Up the Big Q to improve quality in every interface with the consumer from storage to store level by helping distributors and traders manage inventory and stocks. In line with the Dial Up the Big Q agenda, the
Business Responsibility Report 2014-15 Stakeholder Engagement 11 calls received from retail outlets matters. We have a designated e-mail id Foundation (HUF). HUF is working with provide useful insights and help the for shareholders, levercare.shareholder@ implementing partners such as IFC, Company to understand issues and unilever.com Solidaridad, DHAN, BAIF and MITTRA on opportunities in the marketplace better 18 projects in more than 4,000 villages of and address them effectively. The Investor Relations team also interacts 82 districts in 13 states located across 13 regularly with investors and analysts, river basins in India. The water • Partner of choice: Your Company is through quarterly results calls, one-on- conservation programme undertaken by now the preferred supplier to the one and group meetings, participation at your Company through collective action leading Modern Trade customers and investor conferences and the annual and in partnership with several NGOs, is a partner of choice on all new investors meet. Your Company’s Investor communities, other co-funders and initiatives. Your Company believes in Relations philosophy is focused on partners across India has created long term win-win partnerships with delivering quality Investor Relations cumulative and collective potential of its business partners. practices built on a strong foundation of nearly 100 billion litres. transparency and sound governance. • Joint Business Planning: Your MEDIA Company works with Joint Business • Launch of Investor Relations App: Regular interactions with the electronic, Planning (JBP) at the core, which Your Company has launched a Mobile print, television and online media take captures the business from not just a Investor Relations App, for android as place through press releases, media manufacturer’s perspective but also well as iOS platforms, for smart events and during the financial results brings in the voice of the shopper and phones and tablets. Investors can now announcements. We engage with media to the retailer into the planning horizon. access details such as share price keep our stakeholders updated about the information, quarterly results, developments in the company. A testimony to the success of this presentations, press releases and win-win partnership with the retailer is annual reports on the click of a button. EMPLOYEE ENGAGEMENT evident from winning the ‘Best Your Company has several communication Supplier’ award from customers such • Online Annual Report: Your Company processes instituted to ensure a two-way as Aditya Birla Retail Limited and has introduced an interactive Online communication channel with its Shoppers Stop in 2014. These awards Annual Report which provides flexibility employees. These include: have been conferred for your to readers to customise the report. Company’s consistent approach on They can include only the pages that • Global People Survey (GPS): Global building long term sustainable interest them and also download the People Survey (GPS) measures the partnerships. Balance Sheet, P&L account, and notes level of engagement of all employees. to accounts in pdf and excel versions. Employee Engagement for India Your Company has taken the initiative of Investors also have the option to save showed a 300 bps improvement in 2014 appointing an Ombudsman for pages of their interest to a briefcase, over 2013. resolving Consumer and Customer and download them later. grievances and disputes. The details of • CEO Report back: Quarterly the Ombudsman scheme are provided Your Company has continued to performance update from the CEO to under Principle 9. maintain high standards on Investor all employees. Relations and has in recent years been SHAREHOLDERS AND recognised on various counts. In 2014, • Annual Review: All managers are INVESTORS the HUL Online Annual Report invited to the Annual Review which is The value of a business does not lie in its Microsite won the Silver Award making conducted in four major metros. balance sheet but in its shareholders. Your it the best microsite among participant Company regularly interacts with companies since no Gold was awarded • Others: The Company has other shareholders through a number of at the Designomics Awards 2014 inhouse communication channels, methods of engagement like results edition under the category on Digital. which help employees to connect, announcement, annual report, media Your Company has also been bond, inspire, express and celebrate releases, Company’s website and subject recognised at previously held editions their achievements. specific communications. of the Investor Relations Global Rankings (IRGR). OTHER KEY OPINION FORMERS The Annual General Meeting of Every year, your Company organises an shareholders is an important annual event GOVERNMENT event and provides an update on the where the shareholders of the Company All interactions with the Government, progress of the Unilever Sustainable come in direct communication with the legislators and regulators are done by duly Living Plan to various Key Opinion Board of Directors and the management. authorised and appropriately trained Formers (KOFs). In May 2015, KOFs The Board engages with shareholders and individuals with honesty, integrity, representing various stakeholder groups answers their queries on varied subjects. openness and in compliance with local such as NGOs, IGOs, Government bodies, laws and in accordance with the Code of industry bodies and consumer The Investor Service Department regularly Business Principles and Policy. organisations attended the Unilever engages with the shareholders to resolve Sustainable Living Plan event at queries and grievances, if any, and provide NGOs New Delhi. guidance for shares / shareholder related Your Company engages with a number of NGOs through Hindustan Unilever 12 Stakeholder Engagement Hindustan Unilever Limited PRINCIPLE 5: HUMAN RIGHTS
BUSINESSES SHOULD RESPECT AND PROMOTE HUMAN RIGHTS
Your Company’s commitment to human The Unilever’s Supplier Code reinforces cover human rights, labour practices, rights and fair treatment is set in its Code the principles of Human Rights and Labour environment commitment and prevention of Business Principles. Rights for all suppliers of the Company. In of corruption in business organisations. accordance with the Company policy, all The UN Global Compact is a symbol of The Code provides to conduct the suppliers are expected to respect the leadership in a complex business world operations with honesty, integrity and principles of the Supplier Code and adopt and provides a forward looking forum in openness with respect for human rights practices that are consistent with that of which the United Nations, companies and and interests of employees. Your the Company. The Unilever Supplier Code civil society organisations can come Company’s approach is to uphold and is available on your Company’s website together in an open and transparent promote human rights in three ways: and can be accessed at www.hul.co.in/ dialogue. The Company’s CoBP • in its operations by upholding its values aboutus/purposeandprinciples/ mechanism upholds these principles in all and standards businesspartnercode aspects of its business operations. • in its relationships with the suppliers and other business partners, and Unilever globally is a signatory to the • by working through external initiatives, United Nations Global Compact such as the United Nations Global Programme and is fully committed to the Compact. principles of the UN Global Compact which
PRINCIPLE 6: ENVIRONMENT
BUSINESS SHOULD RESPECT, PROTECT AND MAKE EFFORTS TO RESTORE THE ENVIRONMENT
Your Company’s approach to reduce, reuse Considering that India is a water scarce and recycle has helped to minimise its region and the water availability is environmental impact across the value expected to go down significantly in the chain. Your Company has significantly near future, your Company has identified reduced its environmental footprint in water as a key area of intervention. The
areas of CO2 emissions, water and waste Company is focusing in this area by across its manufacturing locations and creating capacities in conserving water has also made good progress in through significant investments in sustainable sourcing. Details on the partnership with relevant stakeholders progress are elaborated in the USLP India with the objective of water conservation. Progress Report 2014. Hindustan Unilever Foundation (HUF), a wholly-owned subsidiary of HUL is engaged in the community projects to conserve water for public good.
Business Responsibility Report 2014-15 Human Rights | Environment 13 HUF CREATES POTENTIAL TO SAVE 100 BILLION LITRES OF WATER
programme undertaken by your • Your Company has launched the Company through collective action and National Advisory Committee that in partnership with several NGOs, advises HUF on important matters communities, other co-funders and related to water conservation projects, partners across India has achieved the selection of partners and other related following in 2014: activities. • The 13 states and union territories • Water conservation: HUF has where the projects have been executed Future demand for water resources will created cumulative and collective include Gujarat, Maharashtra, Tamil increase significantly as population, potential of nearly 100 billion litres. Nadu, Odisha, Dadra and Nagar Haveli. economies and consumption rates • Crop yield: Your Company’s projects • The 13 river basins where the projects grow. Estimates tell us that by 2030, the have generated cumulative agriculture have been executed include Ganga, supply of water in India will be half its production of 23,000 tonnes. Tapi, Godavari, Cauvery among others. demand1. The impact of climate change • Person days: The projects have on agriculture would further compound generated 7 lakh person days of The collective actions are expected to the linkages between food, energy and employment. generate the following impacts by 2020: livelihoods in the country. To • Capacity building: Over 30,000 understand and partake in meeting this people have been trained in water • Water conservation potential of 500 challenge, HUF was formed in 2010. conservation activities, better billion litres in a cumulative and agricultural practices and other collective way. HUF along with its partners has related issues. • Employment of more than 1 million initiated 18 projects in more than 4,000 • Partners: Your Company has been person-days. villages of 82 districts in 13 states working with 18 implementing • Annual additional agricultural located across 13 river basins in India partners such as IFC, Solidaridad, production of 0.1 million tonnes on a since inception. The water conservation DHAN, BAIF and MITTRA cumulative basis.
1 Charting Our Water Future, 2030 Water Resources Group
• Greenhouse gases: Our CO2 emissions Company has a governance mechanism transparent and responsible manner since per tonne of production in 2014 reduced and score card to monitor the progress the issue was first brought to its notice in by 37%2 compared to the 2008 baseline. on USLP commitments. The Council March 2001 by local NGOs. Your Company reports the progress to the Management immediately closed the factory on its own • Water: Water usage (cubic meter per Committee and CEO on a quarterly basis. and launched an investigation. There were tonne of production) in our • Environment Sub-Committee: This is no adverse impacts on the health of manufacturing operations reduced by led by the Executive Director, Supply employees or the environment. There was 44%3 compared to 2008 baseline. Chain, and has members from various limited impact on the soil at some spots departments like Safety and within the factory premises which required • Waste: We achieved 88% reduction in Environment, Finance, Engineering, remediation. This has been confirmed by total waste generation (kg per tonne of R&D and Legal. The team engages many independent studies. Over the years, production) in 2014 over 2008 baseline. every two months to review your Company has taken several actions for environment performance and define ensuring appropriate remediation. Only soil • Sustainable sourcing: Under the the implementation strategy. remediation work is remaining. The soil Unilever Sustainable Living Plan, your remediation work will commence at the Company has committed to source RISK ASSESSMENT factory site once the decision on the 100% of agricultural raw materials All manufacturing sites have implemented clean-up standard has been taken and sustainably by 2020. Details are listed Unilever’s Environment Care Framework consent given by the Tamil Nadu Pollution in the section on Sustainable Sourcing Standards. The framework is modeled on Control Board. under Principle 2. ISO-14001 and OHSAS-18001 and is externally verified every three years. Your Company will continue to present For more details on your Company’s facts to the authorities and the public as it environment initiatives, please refer to the All the emissions / waste generated by us has always done in this case. The details online USLP India Progress Report 2014 are within the permissible limits given by on this matter are available on our website available at www.hul.co.in CPCB (Central Pollution Control Board) / in the interest of transparency and to keep SPCB (State Pollution Control Board). our stakeholders updated on the progress MONITORING PROGRESS in this matter. Your Company monitors progress on Your Company continues to deal with a sustainability at different levels as matter that is currently sub-judice and Link: www.hul.co.in/Images/Update-on-Erstwhile- mentioned below: relates to allegations of breach of Kodaikanal-Factory_tcm114-195572.pdf • Sustainability Governing Council: The environmental operating guidelines at the 2 top leadership from respective Company’s erstwhile thermometer factory Period of reporting is Q4 2013 to Q3 2014 for this data 3 Period of reporting is Q4 2013 to Q3 2014 for this data business verticals and functions at Kodaikanal in Tamil Nadu state. Your 4 The period of reporting is Q4 2013 to Q3 2014. This constitute the Governing Council. The Company has acted in an absolutely includes only reduction in disposed waste. 14 Environment Hindustan Unilever Limited PRINCIPLE 7: POLICY ADVOCACY
BUSINESSES, WHEN ENGAGED IN INFLUENCING PUBLIC AND REGULATORY POLICY, SHOULD DO SO IN A RESPONSIBLE MANNER
Your Company believes that a lot can be advocating certain best practices for the Some of the key issues on which your achieved if it works together with the benefit of society at large. Company has engaged with the Government, legislators, regulators or Government in 2014 include: NGOs to create positive social and Your Company engages with industry environmental outcomes. bodies and associations to influence public • Plastic waste management and and regulatory policy in a responsible recycling. Your Company’s approach to advocacy is manner. Many of your Company’s Board guided by the Code of Business Principles. and senior leadership team members are • Building greater awareness of The Code provides that any contact by the associated with several global bodies like handwashing practices to reduce Company or its agents with Government, the World Economic Forum (WEF), United diarrhoea and pneumonia incidences. legislators, regulators or NGOs must be Nations Global Compact (UNGC), apart done with honesty, integrity, openness and from the leading business Chambers • Seeking Government support for in compliance with applicable laws. Only in India. incentivising more businesses to adopt authorised and appropriately trained sustainable procurement, individuals can make interactions with the Your Company is represented in key manufacturing and selling practices. bodies mentioned above. Prior internal industry and business associations which approval is required for initiating any include the Confederation of Indian • Seeking action against counterfeiting contact between the Company, its Industry (CII), the Federation of Indian and parallel imports of goods in the representatives and officials, aimed at Chamber of Commerce and Industry country. influencing regulation or legislation. (FICCI), the Associated Chamber of Commerce and Industry of India • Seeking interventions to lay down Your Company tries to create a positive (ASSOCHAM), the Bombay Chamber of pesticide usage guidelines for tea. impact in the business eco-system and Commerce and Industry (BCCI) and the communities by practicing pro-active Advertising Standards Council of India • Seeking creation of an equitable and a advocacy. Its purpose is not just lobbying (ASCI). Your Company participates in judicious policy on usage of bio- the Government for securing certain multi-stakeholder debates and, when diversity resources. benefits for industry, but is also about relevant, responds to public consultations. • Seeking less time consuming procedures for effecting related party transactions.
• Seeking enforcement and prosecution against violation of our registered trademarks.
• Seeking formation of an equitable GST legislation.
• Offering partnerships to the Government in taking forward the agenda of Swachh Bharat Abhiyaan (Clean India campaign).
• Engaging with the Ministry of Corporate Affairs in bringing into effect the Companies Act, 2013 and with the Securities and Exchange Board of India on the capital market regulations in India.
Business Responsibility Report 2014-15 Policy Advocacy 15 PRINCIPLE 8: INCLUSIVE GROWTH
BUSINESSES SHOULD SUPPORT INCLUSIVE GROWTH AND EQUITABLE DEVELOPMENT
Inclusive business for the Company means creating economic well-being through employment, skill improvement and access to markets for the community we operate in. The USLP aims to enhance the livelihoods of millions of people as we grow our business by working with agricultural suppliers, smallholder farmers, small-scale distributors and retailers including young entrepreneurs.
IMPROVE LIVELIHOODS OF SMALLHOLDER FARMERS Your Company works with a number of small holder farmers across India to drive sustainable farm practices and enable farmers to become more competitive. Your Company has supported and encouraged farmers to adopt advanced technologies for better yields with regular training programmes and field-monitoring. Further, your Company has educated farmers on good agricultural practices like drip irrigation, nutrient management, pest and disease management.
EXPAND OPPORTUNITIES IN OUR VALUE CHAIN Project Shakti empowered over 70,000 Shakti Entrepreneurs (Shakti Ammas) who reached out to over 4 million households across 1,65,000 villages, by the end of 2014. These Shakti Ammas are complemented by 48,000 Shaktimaans, who are typically the husbands or brothers of the Shakti Ammas. They sell the products of your Company on bicycles in surrounding villages, covering a larger area than Shakti Ammas can cover on foot.
Read more on Project Shakti and other initiatives for small-scale retailers in our online USLP India Progress Report 2014 available at www.hul.co.in.
16 Inclusive Growth Hindustan Unilever Limited RINGING IN A NEW DAWN FOR OUR COMMUNITIES THROUGH ‘PRABHAT’
‘Prabhat’ (Dawn) is a USLP linked Seven new centres were launched in 2014 In 2014, Sunsilk partnered with Prabhat’s programme to engage with and taking the total number of centres to 13 Livelihood programme to promote contribute to the development of local and candidate enrolments to over 3,000. women empowerment. As a part of this communities around our manufacturing Twelve of the Company’s Skill initiative all certified students of the sites. As part of Prabhat your Company Development Centres are running in Beauty and Hair Care course at our implements health & hygiene, water collaboration with LabourNet, a training livelihood centres were given the ‘Sunsilk conservation and livelihood initiatives partner of the National Skill Development Life Starter Kit’ which was instrumental which are fully aligned to the USLP Corporation (NSDC). More than 1,500 in helping them train & start offering priorities. The health & hygiene people have already been certified through their own beauty services immediately programme is led by the brands like the programme and over 500 of them post certification. The training Lifebuoy, Domex and Pepsodent either have a job or have been up-skilled programme is aligned to the curriculum whereas water conservation initiative or are self employed. Development set up by Government of India’s apex skill are spearheaded by Hindustan Unilever Alternative’s TARA Livelihood Academy, development authority -- National Skill Foundation. the training and capability wing of Society Development Corporation, and covers for Technology and Action for Rural theoretical as well as practical training Prabhat’s livelihood programme aims to Advancement (TARA) is implementing the on all the technical and soft skills transform youth and women in identified livelihood programme at Sumerpur for required to start one’s career as a communities by equipping them with the Company. beautician. employable skills and competencies, thereby enhancing their livelihoods by setting up livelihood skill development centres.
Business Responsibility Report 2014-15 Inclusive Growth 17 PRINCIPLE 9: CUSTOMER VALUE
BUSINESSES SHOULD ENGAGE WITH AND PROVIDE VALUE TO THEIR CUSTOMERS AND CONSUMERS IN A RESPONSIBLE MANNER
STREAMLINING OPERATIONS Your Company continued to improve customer service. Customer Casefill-on- Time (CCFOT) increased to 94% and on-shelf-availability in modern trade touched an all time high of over 95%. The customers acknowledged this and declared the Company ‘the best supplier of the year’. Your Company continued to strengthen the Sales and Operation Planning Process (S&OP) and Innovation Process Management (IPM) in order to proactively drive competitive growth as well as to respond to market demands with speed and agility. Due to the focus on Your Company immensely values and partners in order to achieve mutual improving product quality through better carefully nurtures its customer growth. It aims at developing a business product designs and various quality relationships and works closely with its plan with suppliers and business partners improvement programmes, there has customers to pioneer new products, in order to reduce lead time, procurement been 50% reduction in consumer categories and concepts. Your Company’s cost, improve reliability and new complaints over last year. strong distribution network comprises innovation delivery. millions of outlets serviced by over 2,500 BEYOND BUSINESS stockists. It has a strong customer base of The big development in 2014 has been the Your Company and one of its modern trade over 2,000 suppliers and associates who launch of Unilever’s ‘Partner To Win’ 2020 customers, METRO, celebrated the World help create and deliver world class programme to create a supplier Environment Day through a tree plantation products. ecosystem where partners work with each drive. Saplings were planted through this other and the Company to create joint sapling planting activity by METRO REACHING CUSTOMERS WITH breakthroughs in products or packaging to and HUL employees. In addition to this, THREE MILLION STORES deliver the capacity, innovation and 3,000 saplings supplied by your Company Expansion of distribution reach across sustainable solutions to meet our growth were distributed to the traders and urban and rural markets was one of the ambition. customers of METRO over a 15-day period. key thrust areas for your Company during As part of the celebration, employees of the year. This resulted in the addition of PROCURE TO PAY both the companies also participated one million stores to the existing network. The ‘Procure to Pay’ project ensured together in the 10 km Run in Bengaluru for A new low cost distribution model has sustained world class levels of payment World Environment Day. Collectively more been developed to leverage the increasing efficiency and purchase order compliance. than 240 km were run between employees penetration of mobile phones among the Excellence in the ‘Record to Report’ of the two teams showing their support bottom-of-the-pyramid retailers. Taking helped your Company rank among the top behind sustainable ways of living. orders through tele-calling saves time and three companies in manufacturing sector leads to a significant reduction in front- for Best Presented Accounts by the In another initiative, HUL and Tesco end distribution cost. Reduction in Institute of Chartered Accountants of India, launched ‘India’s Favourites’ initiative in servicing cost enabled your Company to for the second consecutive year. ‘Project partnership with Smile Foundation in reach more shoppers who purchase from My Business Information’ tapped into the September 2014. Five per cent of sales those marginal outlets outside the purview potential of big data through professional from the participating HUL brands like of the traditional distribution model. analytics, state- of- the -art forecasting Surf Matic, Lipton Tea bags, Dove tools and real-time data warehouse. This Shampoo and conditioner, Vaseline Body PARTNER TO WIN 2020 enabled marketers to understand the lotions and Bru Gold Coffee were donated The ‘Partner to Win’ initiative is a strategic consumers better and as a result deploy to charity with an equal contribution from programme focused on building the right marketing mix. Tesco. relationships with selected key supplier
18 Customer Value Hindustan Unilever Limited Your Company has initiated Guideline Daily Amount (GDA) labelling on its packs in 20145.
In addition to national laws and self- regulatory codes in India, we also apply Unilever’s principles to the marketing and advertising of all the food and beverage products directed at children. These principles require that marketing practices:
• do not convey misleading messages
• do not undermine parental influence. Advertisements always show parents as gatekeepers to the product being consumed
• do not encourage pester power
• do not suggest time or price pressure RESPONSIBLE MARKETING grievances. Four retired Judges of AND COMMUNICATION different High Courts were appointed, one • do not encourage unhealthy dietary Your Company has strict responsible in each region, to act as Ombudsman to habits marketing policies with clearly defined hear the Company’s consumers and principles which guide marketing customers in a bid to resolve long pending • do not blur the boundary between communications. Your Company disputes. The Ombudsman independently promotion and content. recognises the influence of marketing and reviews the merits of the complaint and advertising on consumers and takes the decides on the issue. Your Company has Your Company does not advertise food and responsibility seriously to ensure that all taken the view that the decisions arrived at beverage products to children under 12 the claims made in advertising are backed such dispute resolution meetings, while years and does not make communication by sound scientific substantiation and that being fully binding on the Company, may related to food and beverage products in all such communication passes the test of not be binding on its consumers and primary schools, except for products being ‘legal, decent and honest’. customers and if they choose to continue which fulfill specific nutrition criteria that with litigation, they are free to do so. are based on accepted scientific evidence Your Company also supports the and/or applicable under national and development of self-regulatory codes for Your Company has been impleaded in international dietary guidelines. all its marketing and advertising activities certain legal cases, including those and applies these codes across the relating to consumer / customer disputes. business. Your Company is one of the At the end of the year, there were 76 5 Where applicable and legally allowed in accordance founder members of the Advertising consumer cases pending. with local or regional industry agreements. Standards Council of India (ASCI), a self regulatory body which has developed LABELS AND PACK principles and codes in the area of INFORMATION advertising and marketing. During the All Company products comply with the year, complaints filed with ASCI against applicable regulations such as the Drugs advertisements made by us were 32, all of and Cosmetics Act, Legal Metrology Act, which were closed and no complaints Bureau of Indian Standards Specifications, were pending at the end of the year. Trademark Act and Copyright Act, Food Safety and Standards Act, Tea Act, Tea OMBUDSMAN Board Regulations etc. for Labels and Dispute redressal is an important aspect Pack Information. of a healthy customer relationship. Your Company has a well structured alternative Food and beverage products also carry a disputes redressal mechanism for solving nutritional information table on the back of consumer and customer disputes and pack in compliance with local legislation.
Business Responsibility Report 2014-15 Customer Value 19 FOR FURTHER INFORMATION ON OUR ECONOMIC, ENVIRONMENTAL AND SOCIAL PERFORMANCE, PLEASENotes VISIT OUR WEBSITE: WWW.HUL.CO.IN
HINDUSTAN UNILEVER LIMITED Registered Office: Unilever House, B. D. Sawant Marg, Chakala, Andheri (East), Mumbai - 400 099 CIN : L15140MH1933PLC002030
HUL INVESTOR RELATIONS APP Scan the code given below to download the HUL Investor Relations App for iOS and Android Produced by Hindustan Unilever Limited. Creative Consultants: AICL Communications Limited ([email protected]) | Printed at Burda Druck India Pvt. Ltd. FOR FURTHER INFORMATION ON OUR ECONOMIC, ENVIRONMENTAL AND SOCIAL PERFORMANCE, PLEASE VISIT OUR WEBSITE: WWW.HUL.CO.IN
HINDUSTAN UNILEVER LIMITED Registered Office: Unilever House, B. D. Sawant Marg, Chakala, Andheri (East), Mumbai - 400 099 CIN : L15140MH1933PLC002030
HUL INVESTOR RELATIONS APP Scan the code given below to download the HUL Investor Relations App for iOS and Android