As the bee searchesfor nectar, flowers are pollinated,crops grow....Every small action makes a big difference.            ...
CONTENTS                                    HIGHLIGHTS   1 Introduction   2 Our business & brands                     45,0...
INTRODUCTION        We provide millions of Indians with a great variety of affordable and quality products which better   ...
OUR BUSINESS AND BRANDS                                                                                              Net S...
Material consumed and Purchase of goods                 Advertising & PromotionINR 8,901 crores                           ...
SUSTAINABILITY STRATEGY    Unilever’s vision is to double the size of its business while reducing the overall impact on en...
COMPETITIVE, PROFITABLE & SUSTAINABLE GROWTH Business               Growth          Sustainability                       S...
STAKEHOLDER ENGAGEMENT FOR                                  SCOPING THE AREAS FOR INTERVENTION:                         Ke...
GOVERNANCE STRUCTURE                                                    Grow markets in                         Ensure sus...
GOVERNANCE AND EXECUTION TEAM                                 Management Committee governing the agenda                   ...
OUR COMMITMENTS                                      Execution enablers       Strategic action                            ...
Awards & Recognitions (2009)                        Awarded Customer and Brand Loyalty                     Award by Busine...
CONSUMERS Making a difference through our brandsDespite advances in science and increasing prosperity, millions of people ...
SAFE DRINKING WATER                                   The NIE scientifically established that homes     HYGIENE           ...
Lifebuoys Swasthya Chetna is the single largest     To assess whether using soap at the right time         conducts oral h...
One can get 50%                                                                                           RDA of important...
WELL-BEING FOR ALLConsumers with limited income cannotafford to compromise on quality and they valuethe consistency that b...
- Risks for consumers, workers, and the             RESPONSIBLE MARKETING AND     PRODUCT RESPONSIBILITY                  ...
Self-regulatory codes                              HUL has decided that it will not advertise             COMMUNICATION WI...
Awards & Recognitions (2009)                      Project Shakti won the Silver Trophy                      at the EMPI-In...
BUSINESS PARTNERS Enhancing livelihoods through partnershipsFrom sourcing to distribution – we engage with a diverse set o...
Business partner code                                Shakti: Micro-businesses, massive impacts               we are domina...
Our Shakti initiative can be described in many             make INR 3000-4500 a month. This channelways – as a sales and d...
Awards & Recognitions (2009)                       HUL ranked fourth in the ‘Top Companies                        for Lead...
EMPLOYEES Building responsible leadersOur employees are our biggest assets. Every step taken by our team boosts our growth...
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
Hul sustainable developmentreport2009_tcm114-226531
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Hul sustainable developmentreport2009_tcm114-226531

  1. 1. As the bee searchesfor nectar, flowers are pollinated,crops grow....Every small action makes a big difference. SUSTAINABLE DEVELOPMENT REPORT, 2009
  2. 2. CONTENTS HIGHLIGHTS 1 Introduction 2 Our business & brands 45,000 Shakti entrepreneurs serving more than 4 Sustainability strategy 1,00,000 villages across India Making a difference 19 tea estates certified10 Consumers by Rainforest Alliance for sustainable through our brands Enhanced livelihood of 75,000 sourcing of tea18 Business Enhancing livelihoods rural women by INR 18 crores partners through partnerships in partnership with DHAN foundation Our employees volunteered more than 1,15,000 hours for community initiatives Building22 Employees responsible leaders Lifebuoy Swasthya Chetna through HUL Sankalp has touched more than 120 million Indians28 Ecosystem Sustainable living since 2002 More than 3 million Creating a households protected by36 Society positive impact Reduced environmental impact Pureit water purifier of our manufacturing operations by Ensuring returns through42 Investors - 31% for water use sustainable growth - 28% for CO2 from energy measured per tonne of production over 2004 baseline HUL felicitated for receiving 46 Industry & Business associations highest number of patents 47 Glossary in 2009 in India 48 GRI and UNGC content index 49 About the report
  3. 3. INTRODUCTION We provide millions of Indians with a great variety of affordable and quality products which better their lifestyles. Our strategic approach – small actions, big differences – illustrates our responsibility towards our multiple stakeholders, and the deep and reciprocal impact we have on each other.Dear Stakeholders, to developing micro-enterprise opportunities. raw materials, manufacturing, distribution, to consumer use and disposal. Therefore, we are2009 was a challenging, yet transformational, year In 2009, we received the highest number of patents implementing changes in our processes that willfor business. The global economic and financial in India and continued to focus on product and positively influence the entire value chain.crisis highlighted the wider challenges of what process innovations to derive improvements and Through our brands we will change the behavioursit means to be a sustainable business. better the quality of our consumers life through and habits of millions of our consumers. our brands. The collective transformation will make a bigBusinesses must grow and generate profits, butthis cannot be the only role of a business. At its core, Future sustainability strategy difference in society and to our business.business is about people and an understanding of Although we have made excellent progresstheir needs and aspirations. This is what will make Issues like poverty, low awareness about health and hygiene, scarcity of water and natural resources, are on many fronts while addressing the needs of oura business thrive in the long run. An approach any stakeholders, the highlight has been the impactnarrower than this may bring short-term dividends, barriers to growth. Hence, it is imperative to address these issues in ways that go beyond simple generated by Pureit water filter in 3 million homesbut will come at the cost of long-term value. and the contribution of our employees who charitable or philanthropic actions. If the impactOne is reminded, in this context, of the absolutely needs to be scaleable and sustainable it will also volunteered 1,15,000 hours for community service.inspiring words of Lord Leverhulme, the founder require an organisational culture where people are These individual actions may seem small, but haveof Lever Brothers – "I believe that nothing can be not just sensitive to the issues we face, but also helped our business cumulatively creategreater than a business, however small it may be, recognise that addressing them has become central a substantial difference to our stakeholders.that is governed by conscience; and that nothing to business strategy and sustainability. Through this report we would like to share ourcan be meaner or more petty than a business, efforts with our stakeholders. We invite yourhowever large, governed without honesty and The simple truth is that in the long run you cannot have a thriving business in a failing society. Once feedback, which is important for us as we progresswithout brotherhood." This belief has stood Lever on this journey.Brothers, and now Unilever, in good stead through this truth is accepted, we can drive actions that willover 100 years of its existence. contribute to Indias, and the developing worlds, sustained and equitable growth. Hindustan UnileverIn the 76 years of our presence in India, we have will strive to remain at the forefront of theseparticipated actively in contributing to society not transformational initiatives.only with product innovations that make people feel Nitin Paranjapegood, look good, and get more out of life, but also Our business processes and brands have an impact Managing Director & Chief Executive Officerwith our social initiatives – from health campaigns at every stage of the value chain – from sourcing HUL Sustainable Development Report, 2009 1
  4. 4. OUR BUSINESS AND BRANDS Net SalesHULs heritage dates back to 1888, when the first Lever product, Sunlight bar, touched Indian INR 17,524 croresshores. Today, HUL is Indias largest fast-moving consumer goods company with a strong portfolioof foods, home and personal care products that touch the lives of 2 out of 3 Indians, everyday.# Net Profit INR 2,202 crores‘We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life.’ 6 brands with net sales more than INR 1000 crores Category Home and Personal care: INR 13,150 crores (net sales) highlights Foods, Beverages and Ice-creams: INR 3,062 crores (net sales) # Hansa Research, Guide to Indian Markets, 2006
  5. 5. Material consumed and Purchase of goods Advertising & PromotionINR 8,901 crores INR 2,391 croresExports Research & DevelopmentINR 1,000 crores INR 81croresLeading Number one Number two • Fabric wash • Dish wash • Toothpastecategory • Personal wash • Skin care • Ketchupspositions* • • Shampoos Deodorants • • Packaged tea Jams • Coffee * Source: A.C Nielsen - Value shares, 2009
  6. 6. SUSTAINABILITY STRATEGY Unilever’s vision is to double the size of its business while reducing the overall impact on environment. This new vision recognises that the world is changing, populations are growing and the rise in incomes is fuelling a growth in the demand for consumer products. Products like ours rely on an increasingly constrained set of natural resources, whether it is fuel, water, or other raw materials. In Hindustan Unilever Limited (HUL), the principle Surf Excel can save enough water for meeting at the category, brand, and marketing plan level. of Corporate Responsibility (CR) is an integral the basic hygiene needs of many Indians. We have a very strong and trusted position part of our commitment to all our stakeholders – Thus, small individual actions multiplied with in India and we can leverage this to our consumers, customers, employees, the our large consumer base will make a big competitive advantage. environment and the society that we operate in. difference in combating the issues society faces. - Ensuring sustainable practices in our Today, India is battling multiple issues like water operations: To secure a thriving future, we need small, scarcity, poverty, and problems arising out of low Our billions of big to establish sustainable sources for raw materials. everyday brands consumers difference awareness of health, hygiene, and nutrition. If actions Being a company that is heavily dependent on these issues are not addressed soon, they will water, agriculture, fuels and petrochemicals, we create insurmountable barriers to business We will further demonstrate that successful must plan now for a future in which water could growth. We believe that helping society prosper business strategies are driven by responsible be scarce, agriculture could be under pressure, and ensuring a sustainable future for the planet business practices. The key to this approach is and fuels will be expensive. Our consumers add goes hand in hand with our goal of ensuring developing a CR framework which integrates up to two-thirds of the Indian population, hence growth that is competitive, profitable, and the social, economic, and environmental agenda addressing sustainability issues is a high priority. sustainable for our organisation. with our business priorities – growing markets, maintaining the competitive edge, enjoying - Building a good reputation through Our contributions have to be substantial and goodwill in the communities we operate in, responsible leadership: CR is one of the sustainable, which is why we are not just banking and building trust and an exceptional reputation. key components of reputation and trust. on our philanthropic programmes, but are Hence, in the future, the three cornerstones A good reputation can be a major competitive transforming our core business practices as well. for CR integration with business at HUL will be: advantage and can build employer brand Even the seemingly small innovations in our and consumer loyalty. brands and business processes can lead to a big - Growing markets responsibly: We will address difference in society as we touch the lives of two issues related to hygiene and nutrition through out of every three Indians1. product innovations and awareness. Gathering information about the concerns expressed by For example, if one household uses Surf Excel consumers, communities, and stakeholders can detergent, it can conserve two buckets of water help us identify opportunities for innovation per wash. A million Indian households using 1Hansa Research, Guide to Indian Markets, 20064 HUL Sustainable Development Report, 2009
  7. 7. COMPETITIVE, PROFITABLE & SUSTAINABLE GROWTH Business Growth Sustainability Strategic objectives Beneficiary drivers barriers integration executed through our growth enablers stakeholders BRANDS PEOPLE PROCESSES Create a positive Develop Shaping theGrow markets - Poverty impact through employees as Consumers - Low awareness Grow sustainabilityFuel market- markets our brands change agents for agenda byrelevant on health Business responsibly sustainable growth leveraginginnovation & nutrition partnerships partners Leadership in Ensure Drive eco-efficiencyRaw material - Climate change Ensure Employees - Water scarcity sustainable health & safety in our operationssecurity sustainable of our people - Raw material sourcing of agri- and extendEfficient supply scarcity practices based products Instill values principles with Ecosystemchain business partners Lead water Advocate Engage and Society - Investor analystCorporate Responsible conservation in sustainability communicate evaluationreputation leadership Indian villages values in with stakeholders - Employer brand future leaders in a responsible Investors - Building trust manner Our brands, people, and processes act as enablers of our corporate responsibility strategy and will help us grow markets, fuel innovation, create societal legitimacy and build our reputation, thereby ensuring competitive, profitable and sustainable growth, and a positive impact for our stakeholders. HUL Sustainable Development Report, 2009 5
  8. 8. STAKEHOLDER ENGAGEMENT FOR SCOPING THE AREAS FOR INTERVENTION: Key messages from stakeholders: IDENTIFYING ISSUES THAT ARE MATERIAL - ‘Target. Allocate resources. Achieve those While the issues are many, it is necessary TO US: to address them in a systematic manner to make targets. This is more critical than just being a real difference. Instead of spreading thin across visible & talking about it.’ We appointed SustainAbility International all issues, we have chosen to work on five areas to conduct stakeholder engagement on our - ‘We feel that some Indian companies can be to ensure a deep impact. behalf. They analysed and assimilated the leaders in their respective sectors. HUL has the expectations of stakeholders regarding issues These areas have been arrived at using the output potential to be such a leader.’ that matter to them. from our stakeholder engagement process and areas which we are poised to address through - ‘Invest for your markets – dont do social work, These expectations were similar to the areas it isnt your ballgame.’ our business. identified by us, where HULs contribution could create a significant impact. - ‘Please make money out of it. When you make money out of it, things are going to change.’ MAPPING ISSUES ISSUES WE WILL FOCUS ON Stakeholders HUL Water conservation Corporate Priority Issues in Indian villages Brand Health Hygiene & Social Nutrition Investments Poverty Water scarcity Hygiene Commercial Product Issues to Watch Nutrition Waste Packaging waste Initiatives Brands Livelihoods management Climate change Affirmative action In our Basic Issues Corruption Eco-efficiency in Business Basics manufacturing: Business Ethics manufacturing CO2, Water, Operations Labour rights Waste Apart from the above five areas, the basic issues such as product safety, labour rights, employee health & safety, etc. have always been our areas of focus and action.6 HUL Sustainable Development Report, 2009
  9. 9. GOVERNANCE STRUCTURE Grow markets in Ensure sustainable Responsible a responsible manner practices at HUL leadership Governance Execution Governance Execution Governance Execution Director: HPC* BRANDS Leadership Team: Director: Foods Leadership Team: Chief Leadership Team: HPC* Supply Executive Corporate Management Officer Responsibility Director: Foods Leadership Team: Director: Chief Financial Leadership Team: Foods Supply Chain Officer Finance Leadership Team: Director: Leadership Team: Director: Legal Director: Leadership Team: PEOPLE Legal Human Human Resources & Compliance Human Human Resources & Compliance Resources Resources Leadership Team: Director: Supply Environment Chain & Safety PROCESSES Director: Leadership Team: Director: Supply Leadership Team: Management Leadership Team: Customer Customer Chain Environment Committee Corporate Development Development & Safety Communications *Home & Personal CareGOVERNANCE execution of the strategy there is a team of 12 - Recommending HULs positions on critical issues Sustainability Governing Council (SGC) members for approval by MCCorporate Responsibility at HUL is led by the CEO based on their respective functions.and the Management Committee (MC) of the - Receiving stakeholder feedbackcompany. The MC governs the sustainability SUSTAINABILITY GOVERNING COUNCIL The role of the SGC is formalised, with a clearstrategy with a view of key strategic approaches The Sustainability Governing Council is mandate and terms of reference outlining itsand seeks reports on impacts and efforts against responsible for: mission, purpose, membership, meetingclear targets. schedule, and reporting systems.Each of the nine cells (refer to the diagram on - Recommending sustainability priorities forpage 5) is owned by an MC member. For the approval by the MC and monitoring its progress HUL Sustainable Development Report, 2009 7
  10. 10. GOVERNANCE AND EXECUTION TEAM Management Committee governing the agenda Governing Council executing the agenda Corporate brand Managing Director Head, Corporate Responsibility: Meeta Singh and Chief Executive Officer: Nitin Paranjpe meeta.singh@unilever.com Head, Corporate Communication: Prasad Pradhan prasad.pradhan@unilever.com Chief Financial Officer: Sridhar Ramamurthy Vice President, Treasury, M&A and Investor relations: Srini Srinivasan srini.srinivasan@unilever.com Group Controller: Vivek Subramanian vivek.subramanian@unilever.com Product brands Executive Director, Home and Personal Care: Gopal Vittal Vice President, Skin Cleansing and Homecare: Sudhanshu Vats sudhanshu.vats@unilever.com Technology Management Director, Home and Personal Care: Niraj Mistry niraj.mistry@unilever.com Executive Director, Foods: Shrijeet Mishra Vice President, Packaged Foods: Sidharth Singh sidharth.singh@unilever.com People Executive Director, Human Resources: Leena Nair General Manager, Employee Relations (Human Resources): Sameer Nagarajan sameer.nagarajan@unilever.com Executive Director, Legal and Company Secretary: Dev Bajpai Deputy Company Secretary: Amit Bhasin amit.bhasin@unilever.com Processes Executive Director, Sales and Customer Development: Hemant Bakshi National Account Manager, Modern Trade: Shivam Puri shivam.puri@unilever.com Executive Director, Supply Chain: Pradeep Banerjee Head, Environment & Safety: Ganesh Tripathy ganesh.tripathy@unilever.com Head, Supply Management, South Asia: Ramesh Krishnamurthy ramesh.krishnamurthy@unilever.com8 HUL Sustainable Development Report, 2009
  11. 11. OUR COMMITMENTS Execution enablers Strategic action Activities Goal 2015 Responsibility - GC member Product brands Our brands will lead Reduce environmental impact through our brands To eliminate PVC from our brand packaging Leadership Team, as agents of change Home & Personal Care Drive hygiene for a healthy India - Lifebuoy soap will create awareness about hygiene To cover 150 million Indians cumulatively - Pureit water filter will protect Indian familiesGrow markets responsibly with safe drinking water Help consumers make a healthy choice 2/3rd of our foods & beverages portfolio Leadership Team, Foods through nutritional labelling programme to be ‘Healthy choice’ certified (as per 2007 benchmarks) Employees Develop employees Strengthen ‘Rural stint’ programme for all new All business leadership trainees Leadership Team, as change agents recruits wherein they will deliver constructive social HR (Employee Relations) for sustainable growth projects Encourage employee volunteering 50% of employees Processes Shaping the Engage with modern trade on sustainability Endeavour to drive the sustainability Leadership Team, (Sales) sustainability agenda agenda with key modern trade partners Customer Development by leveraging Extend the Shakti programme to 75,000 Scale up Shakti Entrepreneurs and increase partnerships entrepreneurs and work towards their earnings improving their earnings Brand HUL Leadership in sustainable Sustainably source key agri-based raw materials - Over 50% of tomatoes sourced from India Leadership Team,Ensure sustainable practices at HUL sourcing of agri-based like tea, tomato, palm oil as per Unilever will be from sustainable sources Supply Management products. goals and plans - Purchase all palm oil from certified sustainable sources - Purchase all tea for our Lipton tea bags from certified sustainable sources Employees Promote sustainable Drive workplace safety for our employees and All HUL and manufacturing business Head, Environment & Safety practices at HUL sensitise manufacturing business partners on the same partner units Create awareness of human rights amongst 100% employees including workmen Leadership Team, Legal all employees Processes Reduce environmental Reduce CO2 from energy Above 25% reduction of CO2 from energy by Head, Environment & Safety (Manufacturing) impact of our operations 2012 in our own factories on per tonne basis and extend the principles against 2004 baseline with our business partners Implement rainwater harvesting in our own sites In all our own factories where it has the potential to yield results Brand HUL Conserve water in We will endeavour to harvest rainwater and build Conserve 20 billion litres of water Head, CorporateResponsible leadership Indian villages awareness and capability on water conservation Responsibility Future leaders Build responsible Enable and encourage social business Support social entrepreneurship Leadership Team HR and employees leadership entrepreneurship through strategic volunteering programmes in academia (Talent development) of employees and mentorship Process Engage and communicate Communicate sustainability agenda transparently Institute an external stakeholder panel Head, Corporate (Communication with stakeholders for HUL Responsibility and Engagement) in a responsible manner
  12. 12. Awards & Recognitions (2009) Awarded Customer and Brand Loyalty Award by Business India & Business Standard Three HUL brands featured in the top ten, and seven in the top twenty list of Brand Equitys Most Trusted Brands survey Received CNBC AWAAZ Consumer Awards in three categories: - Most Preferred Personal Care Company - Most Preferred Home Care Company - Value for Money BrandThrough the seasons, the beeswork hard for the welfare of the hive.Their every action is geared towardsnourishing and protecting each other,and growing together. Through our brands, we hope to address the issues of low awareness of hygiene and nutrition, and impact the lives of our consumers.
  13. 13. CONSUMERS Making a difference through our brandsDespite advances in science and increasing prosperity, millions of people still lack accessto basic sanitation, nutrition and healthcare. We believe that our brands can grow by addressing someof the most important social and environmental challenges facing the country today.In 2005, we started to embed the sustainability Our Brand Imprint process Our focus areas:agenda into our brands by using a processcalled Brand Imprint. It is a rigorous, diagnostic Impacts Influencesprocess that analyses the social and economic by brands / products on brands / products HYGIENEvalue, as well as the negative impacts of a brand. EnvironmentalThis process has been carried out acrossall our key categories. Social and environmental ers NUTRITIONconsiderations are now integrated with m Eco nsuinnovation plans for our major brands. no Co mi cWe believe we can make a difference – Ma WELL-BEING FOR ALLthrough our brands and behaviour change rke t focampaigns in the space of nutrition and hygiene, rce sand by providing consumers, from all income Key opinion cia l PRODUCT RESPONSIBILITYgroups, access to a better life. So formers HUL Sustainable Development Report, 2009 11
  14. 14. SAFE DRINKING WATER The NIE scientifically established that homes HYGIENE A major source of disease in a developing using Pureit had a 50% lower incidence of diarrhoea. Notably, this health benefit was Products such as soap and toothpaste can help country like India is unsafe drinking water. delivered even in the absence of any other prevent disease and improve health and well- In fact, 80% of all diseases are water-borne, health, hygiene, or sanitation intervention. being. But this relies on people improving their and this problem is most acute amongst the poor. everyday habits. Poor sanitation and the lack of THE IMPORTANCE OF HANDWASHING Our Pureit water purifier provides water as safe good hygiene practices still cause millions of as boiled without the need of electricity or Studies show that washing hands with soap preventable deaths. pressurized tap water. Pureit eliminates water- is one of the most effective and inexpensive ways borne germs that cause diseases, and is a more of preventing diseases. It can reduce fatalities sustainable and affordable alternative to safe from diarrhoea by almost half and that from acute Every year, diarrhoea and acute respiratory drinking water than boiled or bottled water. respiratory infections by a quarter. Our Lifebuoy infections claim the lives of millions of children. In 2009, we expanded sales of Pureit in all 28 soap brand leads our hand-washing campaigns. Studies show that most people know they states in India, increasing access to safe drinking Its vision is to change the hygiene behaviour should brush twice a day, or wash their hands water from 5 million people in 2008, to more than of 1 billion people across the world by 2015 with soap after using the lavatory. Yet they have 15 million people in 3 million households. We are through encouraging people to regularly wash not translated this knowledge into a habit. working with UNICEF to offer safe drinking water their hands with soap. The government and health agencies are in schools and day-care centres in low-income grappling with this issue. We have been working communities in southern India. We are seeking Lifebuoy is the largest selling soap brand in partnership to help develop effective sustainable and scalable ways of expanding safe in India with over 70% Indians using Lifebuoy interventions and share our expertise to bring water education and offering products in both, at least once a year. In 2009, Lifebuoy carried about a change in consumer behaviour. urban and rural, communities. out a country-wide campaign to promote good health practices by actively encouraging WHAT WE DO In 2009, Pureit received international recognition people to inculcate good hygiene practices, in the UK government-backed innovation awards such as washing hands with soap at least Our approach is to: (the iawards), winning in the consumer product five times a day. - Make effective products that improve health category for an innovation which supports and well-being society and positively impacts the lives of its - Change habits through behaviour change consumers. programmes The Government of Indias premier health - Work with partners to develop joint campaigns assessment agency, the National Institute and achieve a broader reach of Epidemiology (NIE), conducted a year-long scientific study in Chennai on the impact of Pureit in containing diarrhoeal disease in the slums that were affected by the tsunami.12 HUL Sustainable Development Report, 2009
  15. 15. Lifebuoys Swasthya Chetna is the single largest To assess whether using soap at the right time conducts oral hygiene programmes in schools.private rural health and hygiene educational actually reduces the incidence of sickness In 2009, Pepsodent went to 180 schools acrossprogramme undertaken in India. The objective in families, in 2007-08 Lifebuoy conducted a the country to educate more than 1,50,000 kidsof the programme is to educate people about clinical trial involving 2,000 families. Half the about the right brushing, night brushingbasic hygiene habits. With a focus on rural families were supplied with soap along with practice. Pepsodent is endorsed by FDI, thecommunities, the programme targets school regular hand-washing education. The other half largest dental association globally, and is alsochildren, women, and community elders. continued with their normal hygiene practice, among the most trusted brands in India (Brand acting as a control group. The trial revealed that Equity, Economic Times). Its mission is to improveTo ensure that the message of hygiene awareness oral health by encouraging children and their among those who had received hygieneis received well, the programme involves a range families to brush twice daily. education; the use of soap increased by as muchof engaging activities, including quizzes, games, as ten times and led to a 25% reduction in thesongs, and the popular glo-germ demonstrationkit, with which one can see the germs on the number of incidences of diarrhoea amonghands, even after theyve been rinsed with only children aged five.water. This proves that using soap is essentialfor staying healthy. Since 2002, the project has IMPROVING ORAL HEALTHtouched more than 120 million Indians.In recognition of this massive effort, the Indian Tooth decay and gum disease are one of thePostal Department released a special Lifebuoy most common ailments today. The World HealthSwasthya Chetna Postal Cover in 2006. Organization has identified oral health as a neglected area of general health. In developingLifebuoy also supports the Global Handwashing countries, like India, there is low awareness of theday. It is an annual event backed by the Public- importance of oral hygiene. Encouraging peoplePrivate Partnership for Handwashing with soap, to brush regularly remains one of our mainof which Unilever is a founding partner. Lifebuoy, objectives. The benefits are proven – scientificin partnership with a coalition of public, and NGO research has shown that brushing teeth twice apartners launched the inaugural Global day, with fluoride toothpaste, can reduce toothHandwash Day in India on October 15, 2008. decay by up to 50% in children, compared to onlyAs part of this initiative, in 2009, Lifebuoy brushing once. This is a clear opportunity forpartnered with the Government of Tamil Nadu business growth as well as improving oraland organised a massive event to educate hygiene in society.people about the importance of washing hands.Thousands of school children took part Here, too, changing everyday habits is critical.in awareness-raising activities and were As one of the leading toothpaste companiesencouraged to take handwashing pledges. in India, we have the opportunity to make a difference. Pepsodent, our oral care brand HUL Sustainable Development Report, 2009 13
  16. 16. One can get 50% RDA of important B vitamins (B2, B6, B9 and B12) by consuming three cups products which on one hand enhance nutritional each cup of tea, to help of Sehatmand tea. NUTRITION every family live a healthier values and are accessible by the masses. At the same time, compliance is also easy since it fits into life and help address problems the daily lifestyles of communities in rural India.’ As lifestyles change, there is great concern about caused by micro-nutrient deficiencies. the effect of diet on general health and well- NUTRITIOUS DELIGHTS being. Governments and policy-makers expect This is achieved by using a combination of food companies to improve the nutritional quality technology and healthy ingredients to create To cater to the needs of the growing number of their products and to be more transparent and a nourishing brand of tea that is available at an of health conscious people who will not responsible in their marketing & communications. affordable price. The coating technology allows compromise on great us to use tea as a carrier for micro-nutrients and taste, Kwality Walls vitamins that help strengthen the immune launched a select range Consumers are now interested in the nutritional system and protect families from weakness of fruit flavours. value of their food and where it comes from. and common illnesses. Each standard scoop Companies that ignore these trends could face (80 ml) has less than 99 Kcal. An intensive on-ground campaign called falling sales and market share, increased Sehatmand Parivaar – Sehatmand Bharat legislation and risk to their reputation. led by major NGOs and civil society groups WHAT WE DO was launched in a few states. The mission of this programme is to educate people about HEALTHY CHOICE We believe we can make a difference to peoples combating micro-nutrient deficiency related health even as we boost business growth. problems with proper health and nutrition. Our vitality initiatives include a Nutrition Through our products and partnerships we aim Enhancement Programme – a cross-category to make a difference to the quality of peoples This initiative seeks to bring together gram benchmark developed by Unilever Food diets, helping to tackle both over- and under- panchayats and various governmental and & Health Research Institute, based on nutrition. Our approach is founded on: non-governmental bodies as well, so that the international dietary guidelines. education campaign can reach across villages. HUL introduced this programme - Improving the nutritional quality of all Ambarish Singh, CEO of Pahal, a nodal NGO across key food brands in India our products in Uttar Pradesh said, ‘Malnutrition has serious to reduce the levels of unhealthy - Developing new products and expanding long-term consequences because it impedes ingredients such as trans-fat, consumer choice physical and mental development. 70% of our saturated fat, salt, and sugar. Most - Providing clear information population cannot meet its daily requirement of our food and beverage brands carry NUTRITION THROUGH DAILY HABITS of micro-nutrients. What is alarming is that many the Healthy Choice stamp (as per 2005 communities in urban, as well as rural areas, benchmark). The Healthy Choice label Brooke Bonds Sehatmand, a tea with vitamins, is granted to food products that comply with are not even aware of the causes and health has been launched to address the nutrition needs the qualifying criteria based on international of low-income consumers. This is an innovation manifestations of micro-nutrient and vitamin deficiencies. We support these innovative dietary guidelines. for the masses, with guaranteed vitamins in14 HUL Sustainable Development Report, 2009
  17. 17. WELL-BEING FOR ALLConsumers with limited income cannotafford to compromise on quality and they valuethe consistency that brands offer. People,irrespective of their income levels, aspire to usehigh-quality innovative products. A large part AFFORDABLE INNOVATIONSof the population in India has limited resources. Pureit, the home water purifier, provides low-cost manufacturing process, wideWe continue to seek new ways of bringing our affordable and safe drinking water for middle- distribution network, and a different approachproducts within the reach of everyone. income families in India as it is cheaper than to pricing. Today, Wheel is the largest selling boiling water, or buying bottled water. detergent brand in the country, reaching moreHowever, making affordable products in an than 120 million households1.economically viable way is a challenge. Brooke Bond Sehatmand addresses the healthAny such model, or offering, will need to address needs of the low-income group of consumers Our Shakti initiative is a micro-enterprisefour non-negotiable deliverables – affordability, through their daily intake of tea. It is a unique programme that creates opportunities for theawareness, relevance, and accessibility. innovation that allows us to use tea as a carrier rural population to sell our products door-to-door for micro-nutrients. in their areas. Through this initiative, we expectWHAT WE DO to make our products more accessible to low- income consumers and reduce the menaceOur aim is to satisfy the needs and aspirations INNOVATIVE BUSINESS MODELS of locally sold spurious products.of consumers at all income levels with quality In the laundry category, we created a newproducts. Whether it is through innovative LOW UNIT PACKS business model for Wheel detergent powder thatdistribution channels, using smaller formats, delivers superior value to low-income consumers In most product categories, we have low unitor creating new products, we are developing by driving efficiencies at every stage of the value packs priced between 50 paise to INR 5, includingbusiness models to reach the low-income chain. We developed a new product formulation, brands like Lifebuoy, Clinic plus, Annapurnaconsumer as well. iodised salt and oral care brands. Price per litre of safe drinking water Pureit Boiled water Bulk pack Bottled water 25p* 47p# 350p 1200p (# as per boiling conditions in consumer home using LPG gas. Three litres of water in a typical vessel needs ten minutes to (*based on boil and ten minutes to maintain water cost of consumables) at boiling temperature) p= paise1As per Household Panel Data, IMRB 2009 HUL Sustainable Development Report, 2009 15
  18. 18. - Risks for consumers, workers, and the RESPONSIBLE MARKETING AND PRODUCT RESPONSIBILITY environment, with regard to the safety COMMUNICATION of products and supply chain technology Our responsibility goes beyond manufacturing - Environmental impacts, with regard to the We are committed to responsible marketing good quality products and distributing them. We sustainability of Unilevers brands, products and have clearly defined principles which guide need to ensure that our products are safe for the and supply chain our communications. Advertising is a way for us consumers and the environment. We must also to engage with consumers on issues that matter communicate clearly with consumers so that they Our view on animal testing and chemicals to them. At the same time, we recognise the can make an informed choice. in products: influence of marketing and advertising on Most of our products are developed consumers and take our responsibilities seriously. on a global scale by following the policies and This means ensuring that all the claims we make WHAT WE DO procedures laid down by Unilever. Mentioned have a sound scientific basis and that all such below is the approach and work done by Unilever communication passes the baseline test of being Our aim is to develop safe products, market them legal, decent and honest. in this area. responsibly and communicate ethically to our consumers. We have robust systems and policies Animal testing: The vast majority of our products in place for: reach the consumer without being tested on animals. Unilever has been developing and using - Testing safety of our products alternatives to animal testing, including new - Advertising and marketing approaches to risk assessment, biological, and - Consumer feedback and redressal computer-based modelling for data generation. PRODUCT SAFETY Unilever has a policy on animal testing which explains, in detail, our view on this issue. Rigorous assessments are undertaken to establish that the product is safe for consumers as well as Use of chemicals: Unilever determines the safety the environment. This is ensured through the of chemicals in our products by assessing the SEAC (Safety and Environmental Assurance risk, taking into account the inherent properties Centre) certification process for product safety of the chemicals (hazard) and the way they are and SIMAS (Safety in Manufacturing and Supply) used (exposure to the hazard). We carefully clearance for process safety. Adherence to all choose chemicals to ensure they are safe for applicable regulations including Bureau of Indian people and the environment. Safety and Standards (BIS), Drugs and Cosmetics Act is non environmental decisions are made independent negotiable. All risk assessments are undertaken of commercial considerations through the SEAC. by SEAC. SEACs role is to provide independent scientific evidence and guidance so that we can identify and manage:16 HUL Sustainable Development Report, 2009
  19. 19. Self-regulatory codes HUL has decided that it will not advertise COMMUNICATION WITH CONSUMERS food and beverage products to children underWe support the development of self-regulatory 12 years, except for products which fulfill specific Providing a good consumer disputecodes for all our marketing and advertising nutrition criteria that are based on accepted redressal systemactivities, and apply these codes across our scientific evidence and/or applicable underbusiness. Working through industry trade bodies, Consumer feedback is very critical for HUL, national and international dietary guidelines. and we actively seek it. HUL has appointedsuch as Advertising Standards Council of India For the purpose of this initiative, ‘advertising(ASCI), we have supported the development an ombudsman for consumer disputes redressal. to children under 12 years’ means advertising This is a unique initiative and the first timeof general principles in this area and their to media audiences with a minimum of 50%integration into advertising and marketing a consumer goods company in India has of children who are under 12 years. appointed an independent and expert mediationself-regulatory codes and systems. Further, we have decided that there will be procedure for the benefit of consumers. We alsoIn 2009, six complaints were filed with ASCI no communication related to food and beverage have a consumer care helpline service calledagainst advertisements by HUL brands and products in primary schools, except for Levercare. Helpline contact details are partone complaint was upheld. The communication products which fulfill specific nutrition criteria of our standard on-pack information.was suitably modified. that are based on accepted scientific evidence To place complaint resolution on top priority, and/or applicable under national and all complaints with high or medium risk areFood & beverage marketing principles international dietary guidelines, where targeted for resolution within 14 days.In addition to national laws and self-regulatory specifically requested by, or agreed with, thecodes in India, we apply Unilevers principles school administration for educational purposes.to the marketing and advertising of all our foodand beverage products. Our food and beverage On pack labelling regulationsmarketing principles contain additional clauses For on pack information, our home care,for marketing food and beverage products personal care and food brands adhere todirected at children. They require that our applicable regulations such as the Drugsmarketing practices: and Cosmetics Act, Weights and Measures Act,- do not convey misleading messages Bureau of Indian Standards Specifications,- do not undermine parental influence. and the Trademark Act Copyright Act. Our advertisements always show parents as Food and beverage brands also adhere to gatekeepers to the product being consumed the Prevention of Foods Adulteration Act,- do not encourage pester power Fruit Product Order, Tea Control Order, Tea Act,- do not suggest time or price pressure Tea Board Regulations, etc.- do not encourage unhealthy dietary habits- do not blur the boundary between promotion and content HUL Sustainable Development Report, 2009 17
  20. 20. Awards & Recognitions (2009) Project Shakti won the Silver Trophy at the EMPI-Indian Express Indian Innovation Awards Kwality Walls Swirls awarded The Franchisor of the year for the Ice-cream parlour category by Franchise IndiaFocused and reliable, the beediligently collects pollen to bring backto the hive, and while doing this,it pollinates several flowers,benefiting each one of them. HUL is dedicated to creating a sustainable future for its stakeholders. Our activities create equitable benefits for all our business partners. We help them grow, as we grow.
  21. 21. BUSINESS PARTNERS Enhancing livelihoods through partnershipsFrom sourcing to distribution – we engage with a diverse set of business partners. Our business creates economic benefitsfor all our partners, including our suppliers and distributors. We are committed to creating a positive and lasting impact on societyby developing successful business partnerships built on mutual trust and respect. Ultimately, we hope, we will realiseour strategic objectives of growing responsibly while enhancing the livelihoods of our partners.WHAT WE DO Our products require a large amount of Small-farm holders: agriculture and forestry inputs. These supplies We also work with small-farm holders toWe actively seek to resolve sustainability issues are sourced from contract growers, third-party implement sustainable agricultural methodsacross our entire value chain. This involves suppliers, and small holders. and improve both – their crop yields andworking closely with our suppliers and customers. business profits.Working with farmers who are part of our supply Businesses are expected to play a role inchain and developing micro-enterprise models, addressing supply chain issues such as working In India, Unilever is working with the governmentlike Shakti, in our distribution chain has led to conditions, and fair incomes for growers. In these to promote increased yields of gherkins used bytwin benefits. It boosts the income and prospects areas, our company is well placed to contribute. Unilevers Amora and Maille brands. We are jointlyof the farmers and small-scale businesses we work funding eight drip-irrigation trials with gherkin Farm workers: suppliers to help reduce water use and increasewith. It also provides us with security of supply We are working with Rainforest Alliance, an yields and profits.of raw materials and new distribution routes to international environmental organisation,improve the penetration of our products. to ensure that the tea estates we source from So far, two trials have been a success, resultingSECURING SUPPLIES & ENHANCING are certified. Rainforest Alliance certification in a yield increase of 84%, increased profitsLIVELIHOODS follows a comprehensive approach towards of 245%, and a 70% reduction in water use. sustainable farm management, covering social, However, two other trials failed due to theSustainable sourcing is a strategic imperative economic, and environmental aspects. As part incorrect implementation of the drip-irrigationfrom a business perspective. It not only helps of the certification it is ensured that workers technique. We are researching how we can helpus manage a key business risk, it also presents are paid wages and perks higher than the farmers avoid similar errors. More crop trialsan opportunity for growth for us and for minimum wage and they are adequately are planned in 2010.our partners. trained on occupational health and safety. HUL Sustainable Development Report, 2009 19
  22. 22. Business partner code Shakti: Micro-businesses, massive impacts we are dominant and enjoy a market share which Our expectations from our suppliers are set out Shakti is our initiative that combines social is qualitatively better as compared in our Business Partner Code, which details our responsibility, sustainability, and business to non-Shakti markets. requirements in key areas of health and safety strategy. at work, business ethics, labour standards, Shakti is not only a channel for consumer safety, and the environment. India has more than 6,30,000 villages, most increasing our reach, the Shakti of these are hard to reach and offer relatively entrepreneurs are also brand Unilever has formalised a Supplier Quality lower business potential. Hence, reaching them ambassadors for all HUL Assurance Policy to accompany the Business through the conventional distribution system brands in rural India. Partner Code. The responsibility of implementing is a challenge. Their relationship with the policy lies within the procurement function. consumers is forged by The policy ensures that we have a consistent In 2000, we collaborated with Self-Help Groups (SHG) to extend our rural reach. We partnered their home-to-home approach to supplier assessments. It also defines contacts, and go how the assessments will be done, by whom, with the SHGs by offering them opportunities for business. By promoting micro-enterprises, a long way in and where the responsibility lies to ensure building brand compliance. our initiative not only makes great business sense, but also has a deep social impact. The business loyalty. WINNING WITH CUSTOMERS objective is to extend our direct reach into untapped markets and to build brands through Our products reach consumers through a local influencers. The social objective is to provide network of customers – from large retailers to sustainable livelihood opportunities for a more diverse group of distributors, wholesalers, underprivileged rural women. and small, independent outlets and kiosks. On an average, a Shakti entrepreneur earns It is our constant endeavour that consumers have INR 700 - 1000 a month, and since most of them ready access to our products across every corner live below the poverty line, this earning is of urban and rural India. We work with over 2000 significant, often doubling the household income. distributors and cover more than 6.3 million outlets. This generates significant indirect Shakti started with 17 women in two states. employment opportunities as our distributors Today, it provides livelihood enhancing employ a large number of salespersons and opportunities to about 45,000 women in handling staff. 15 Indian states and provides access to quality products across 100,000+ villages We have also developed innovative distribution and over 3 million households every month. channels based on micro-enterprise models. These not only improve the reach of our products Project Shakti contributes to 10% of rural but also generate livelihood opportunities. turnover nationally. In most Shakti markets,20 HUL Sustainable Development Report, 2009
  23. 23. Our Shakti initiative can be described in many make INR 3000-4500 a month. This channelways – as a sales and distribution initiative that generates over INR 16 crores in commissionsdelivers growth; a communication initiative that for our vendors. Some of our vendors have nowbuilds brands; a micro-enterprise initiative that become distributors themselves, managingcreates livelihoods; and a social initiative that INR 2 to 10 crores in the ice-cream businessimproves the standard of life in rural India by and earning upwards of INR 1,00,000 per month.providing quality products. What makes Shaktiscalable and sustainable is the fact that it Arvind Jains story is one of the many successcontributes not only to our business, but also stories we are privileged to be part of.to the community it is a part of.*Kwality Wall’s: Mobile cart vendors Ten years ago, Mr. Arvind Jain chose to be anThousands of men belonging to economically entrepreneur, and became a vendor of Kwality Wallsweaker sections travel to bigger Indian towns in Delhi. He had the responsibility of taking careseeking employment. They are employed in of his wife, two children and four younger brothers.a variety of labour intensive activities, usually He began earning a modest sum of INR 1000earning less than what is prescribed by the per month. But soon, with his persistence, excellentMinimum Wage Act. Through our marketing selling skills and friendly nature, he was able toand distribution channels, we are working significantly enhance his earnings. His story eventowards providing sustainable and dignified inspired his brothers to become vendors of Kwality Walls.entrepreneurship opportunities to over 5,500 Over the next few years, he decided to take the next step,such migrant labourers by engaging them and with the help of company officials, he invested hisin our ice-cream distribution operations. savings and became a distributor of Kwality Walls.We provide uniforms, first aid kits, behavioural He now manages a few hundred vendors himself,and basic sales training and financial support running a vibrant and sizeable business. Today, he isthrough our channel partners. Initial stock on an extremely successful business partner of Kwality Walls,credit and a vending cart with freezers are earning a good living for himself and his family.provided by our channel partner to start them off. He has his own house in Delhi, his brothers are now wellWe have been able to make a substantial settled. He dreams of an even better future for his children,improvement in the quality of life of these who are studying in a reputed school in Delhi.vendors with this opportunity that gives thema regular income, growth potential, Mr. Jain is a self-made man, who has created an inspiringentrepreneurial training, and better living success story through his partnership with Kwality Walls.conditions. In most cases, each vendor can*Unilever in India: Hindustan Levers Project Shakti- Marketing FMCG to the Rural Consumer, V Kasturi Rangan/ Rohithari Rajan, HBS case study, March 2006 HUL Sustainable Development Report, 2009 21
  24. 24. Awards & Recognitions (2009) HUL ranked fourth in the ‘Top Companies for Leaders, 2009 (Asia Pacific region) and 10th place in the global rankings in a survey carried out by Hewitt Associates HULs Goa factory won a Gold Trophy at the Greentech Awards in the manufacturing sector category for their outstanding work in Safety ManagementBees are exemplary social insects,committed to prioritising the colonysneeds and working together. Such team work and a passionate commitment to achieve a shared goal is what helps HUL create milestones.
  25. 25. EMPLOYEES Building responsible leadersOur employees are our biggest assets. Every step taken by our team boosts our growth exponentially. We endeavour to constantlystrengthen our teams capabilities and develop innovative business solutions for a competitive, profitable, and sustainable future.We have clear action plans aimed at building responsible leaders, ensuring employee health and safety, and promoting sound humanresource practices and policies. Over the years, our approach towards nurturing leaders has been very successful.More than 400 CEOs who are steering the Indian industry have been part of HUL.WHAT WE DO business leaders. It provides exposure to the of our talent processes are considered industry various functions in a large organisation. Each best practices, for example, the FunctionalIt is vital that we have people with the right talent year, we choose the best business schools and Resource Committees, Leadership Differentiationand supporting systems to meet our growth engineering colleges in the country and select Toolkit (a matrix that maps high performing andambition. We are developing people and building promising talent to join us for the programme. high potential individuals based on an objectivestructures to help us advance towards our new During this 15-18 month structured programme, evaluation process every year on the what andvision. It is essential for us to: each trainee goes through cross-functional stints, how of performance). These observations are- Build the capabilities of our people a rural stint and an international stint (in another then used to devise strong career and- Instill values Unilever business). To facilitate learning, a senior development plans for managers, which includes- Ensure health and safety manager is appointed as a mentor, a young career planning and international opportunities- Develop responsible Human Resource (HR) manager is designated for informal connect and within Unilever. HUL is a key source of talent for practices and policies support, and a tutor is assigned to every trainee. Unilever and currently 195 HUL managers are onBUILDING CAPABILITIES international assignments with Unilever. Leadership developmentDeveloping and retaining the right people Leadership development is a strength HUL hasis going to be crucial for our growth strategy. built over decades and it is jointly owned by line Engaging future leadersWe consistently nurture talent and promote managers, HR and employees themselves. The In 2009, HUL and CNBC TV 18 started Lessonsleadership practices that develop a strong entire process is holistic and well integrated, right in Marketing Excellence. It was a series of Interteam of leaders. from attracting the best talent, providing diverse Business School marketing challenges. Through experiences through challenging roles and job this initiative, marketing students got anBusiness Leadership Training programme rotations every 2-3 years, a high performance opportunity to go through real life business casesOur Business Leadership Training programme culture, strong capability building plans, rigorous and display their thought process and devisegrooms young managers and makes them and well-executed HR planning processes. Some solutions with the advice of those in the industry. HUL Sustainable Development Report, 2009 23

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