Corporate Social Responsibility

of

FMCG Industry

Submitted To: Submitted By:

Ms. Shilki Bhatia Mohit Vats

(Faculty, DIAS) (11912303913)

Delhi Institute of Advanced StudiesAn ISO 9001:2008 Certified Institution

Plot No.6, Sector- 25, Rohini, Delhi-110085Affiliated to GGSIP University & approved by AICTE, Delhi

I. CSR Initiatives

1. HINDUSTAN UNILEVER LIMITED

Hindustan Unilever Limited (HUL) is an Indian consumer goods company based in Mumbai, Maharashtra. It is owned by Anglo-Dutch company Unilever which owns a 67% controlling share in HUL. HUL's products include foods, beverages, cleaning agentsand personal care products.

HUL was established in 1933 as Lever Brothers and, in 1956, became known as Hindustan Lever Limited, as a result of a merger between Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and employs over 16,500 workers,whilst also indirectly helping to facilitate the employment of over 65,000 people. The company was renamed in June 2007 as "Hindustan Unilever Limited".

HUL is committed to operate and grow its business in a social responsible way. Its vision is to grow their business whilst reducing the environmental impact of their operations and increasing their positive social impact.

This policy outlines their Corporate Social Responsibility agenda. Aim is to achieve responsible growth and they will inspire to bring this to life by encouraging people to take small everyday actions that will add up to make big difference.

CSR Activities :

Greening Barriers:

Water Conservation and Harvesting (linked to product Pureit)

HUL's Water Conservation and Harvesting project has two major objectives:

a. to reduce water consumption in its own operations and regenerate sub-soil water tables at its

own sites through the principles of 5R - Reduce, Reuse, Recycle, Recover and Renew;

b. help adjacent villages to implement appropriate models of watershed

development.                     

 

 SHAKTI - Changing Lives in Rural India 

Shakti is HUL's rural initiative, which targets small villages with population of less than 2000

people or less. It seeks to empower underprivileged rural women by providing income-

generating opportunities, health and hygiene education through the Shakti Vani programme, and

creating access to relevant information through the iShakti community portal.

In general, rural women in India are underprivileged and need a sustainable source of income.

NGOs, governmental bodies and other institutions have been working to improve the status of

rural women. Shakti is a pioneering effort in creating livelihoods for rural women, organised in S

elf-Help Groups (SHGs), and improving living standards in rural India. Shakti provides critically

needed additional income to these women and their families, by equipping and training them to

become an extended arm of the company's operation.

 

Health & Hygiene Education 

Lifebuoy Swastya Chetna (LBSC) is a rural health and hygiene initiative which was started in

2002. LBSC was initiated in media dark villages (in UP, MP, Bihar, West Bengal, Maharashtra,

Orissa) with the objective of spreading awareness about the importance of washing hands with

soap. 

The need for a program of this nature arose from the fact that diarrhoeal diseases are a major

cause of death in the world today. It is estimated that diarrhoea claims the life of a child every 10

seconds and one third of these deaths are in India. According to a study done by the London

School of Hygiene and Tropical Medicine, the simple practice of washing hands with soap and

water can reduce diarrhoea by as much as 47%. However, ignorance of such basic hygiene

practices leads to high mortality rates in rural India.

Economic Empowerment of Women 

The Fair & Lovely Foundation is HUL's initiative which aims at economic empowerment of

women across India. It aims to achieve this through providing information, resources, inputs and

support in the areas of education, career and enterprise. It specifically targets women from low-

income groups in rural as well as urban India. Fair & Lovely, as a brand, stands on the economic

empowerment platform and the Foundation is an extension of this promise. The Foundation has

renowned Indian women, from various walks of life, as its advisors. Among them are

educationists, NGO activists, physicians. The Foundation is implementing its activities in

association with state governments.

  

Special Education & Rehabilitation 

Under the Happy Homes initiative, HUL supports special education and rehabilitation of

children with challenges.

 Asha Daan: The initiative began in 1976, when HUL supported Mother Teresa and the

Missionaries of Charity to set up Asha Daan, a home in Mumbai for abandoned, challenged

children, and the destitute.

Ankur: In 1993, HUL's Doom Dooma Plantation Division set up Ankur, a centre for special

education of challenged children. The centre takes care of children with challenges, aged

between 5 and 15 years. Ankur provides educational, vocational and recreational activities to

over 35 children with a range of challenges, including sight or hearing impairment, polio related

disabilities, cerebral palsy and severe learning difficulties.

Kappagam: Encouraged by Ankur's success, Kappagam ("shelter"), the second centre for special

education of challenged children, was set up in 1998 on HUL Plantations in South India. It has

17 children. The focus of Kappagam is the same as that of Ankur.

Anbagam: Yet another day care center, Anbagam ("shelter of love"), has been started in 2003

also in the South India Plantations. It takes care of 11 children. Besides medical care and meals,

they too are being taught skills such that they can become self-reliant and elementary studies.

2. ITC Ltd.

ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal. Its diversified business includes five segments: Fast Moving Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri Business & Information Technology.

Established in 1910 as the Imperial Tobacco Company of India Limited, the company was renamed as the Indian Tobacco Company Limited in 1970 and further to I.T.C. Limited in 1974. The periods in the name were removed in September 2001 for the company to be renamed as ITC Ltd. The company completed 100 years in 2010 and as of 2012-13, had an annual turnover of US$8.31 billion and a market capitalisation of US$45 billion. It employs over 25,000 people[6] at more than 60 locations across India and is part of Forbes 2000 list.

CSR Activities :

Environment

ITC has been ‘Carbon Positive’ three years in a row (sequestering/storing twice the

amount of CO2 than the Company emits). 

‘Water Positive’ six years in a row (creating three times more Rainwater Harvesting

potential than ITC's net consumption). Close to 100% solid waste recycling.

All Environment, Health and Safety Management Systems in ITC conform to the best

international standards.

 

Social

ITC's businesses generate livelihoods for over 5 million people. 

ITC's globally recognised e-Choupal initiative is  the world's largest rural digital

infrastructure benefiting over 4 million farming families.

ITC's Social and Farm Forestry initiative has greened over 80,000 hectares creating an

estimated 35 million person days of employment among the disadvantaged.

ITC's Watershed Development  Initiative brings precious water to nearly 35,000 hectares

of drylands and moisture-stressed areas.

ITC's Sustainable Community Development initiatives include women empowerment,

supplementary education, integrated animal husbandry programmes.

Preserving National Heritage

As a socially responsible corporate citizen, ITC endeavours to create value for the Indian society

in multiple ways, one of them being preservation of India's rich cultural heritage. ITC has made

significant contribution to the promotion of Indian classical music, theatre, art and cuisine.

 

E-Choupal

ITC’s Agri Business Division, one of India’s largest exporters of agricultural commodities, has

conceived e-Choupal as a more efficient supply chain aimed at delivering value to its customers

around the world on a sustainable basis.

The e-Choupal model has been specifically designed to tackle the challenges posed by the unique

features of Indian agriculture, characterised by fragmented farms, weak infrastructure and the

involvement of numerous intermediaries, among others

‘e-Choupal’ also unshackles the potential of Indian farmer who has been trapped in a vicious

cycle of low risk taking ability > low investment > low productivity > weak market orientation >

low value addition > low margin > low risk taking ability. This made him and Indian

agribusiness sector globally uncompetitive, despite rich & abundant natural resources.

Such a market-led business model can enhance the competitiveness of Indian agriculture and

trigger a virtuous cycle of higher productivity, higher incomes, enlarged capacity for farmer risk

management, larger investments and higher quality and productivity.

Further, a growth in rural incomes will also unleash the latent demand for industrial goods so

necessary for the continued growth of the Indian economy. This will create another virtuous

cycle propelling the economy into a higher growth trajectory.

 

Commitment

Envisioning a larger societal purpose has always been a hallmark of ITC. The company sees no

conflict between the twin goals of shareholder value enhancement and societal value creation.

The challenge lies in fashioning a corporate strategy that enables realisation of these goals in a

mutually reinforcing and synergistic manner.

As a corporate citizen with enduring relationships in rural India, ITC has a history of

collaboration with communities and government institutions to enhance farm productivity and

the rural resource base. ITC’s commitments in agricultural R&D and knowledge sharing have

spanned vital aspects of competitiveness – efficient farm practices, soil and water management.

In 2000, harnessing the empowering force of information technology and its scalabilty, ITC

launched e-Choupal – a knowledge portal providing farmers with a range of information and

services. Designed to enable them to bargain collectively and enhance their transactive power, e-

Choupal became the much needed and easily adoptable tool farmers had been waiting for. Today

e-Choupal is a vibrant and rapidly growing zone of business and interaction for over 4 million

farmers.

ITC moved rapidly to apply the economic momentum of e-Choupal to solving urgent social and

environmental tasks. ITC launched Mission Sunehra Kal, a rural capacity building programme

fostering local initiatives to develop water and forest resources, open up new non-farm

livelihoods, empower women economically and expand primary education.

The Mission now embraces a community of thousands of villages that are influential nuclei of

change in rural localities spread over 11 States. A clearly focused self-help movement has gained

ground in village after village in these areas, with farmers co-operating to create much needed

economic, environmental and social assets out of their own resources.

By linking knowledge and technology transfer to the creation of economic and social capacity,

ITC has brought a new dynamic to rural development.

ITC has consciously chosen the path less travelled. A path that has led it to create sustainable

livelihoods for 5 million people. For ITC this is an expression of a commitment beyond the

market. Of a conviction that country must come before corporation. Of a true pride in being

Citizen First.

3. AMUL

Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. The co-operative was initially referred to as Anand Milk Federation Union Limited hence the name AMUL.

Formed in 1946, it is a brand managed by a cooperative body, the Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3 million milk producers in Gujarat.

Amul spurred India's White Revolution, which made the country the world's largest producer of milk and milk products. In the process Amul became the largest food brand in India and has ventured into markets overseas.

Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (1973–2006), is credited with the success of Amul.

CSR Activities :

Tribhuvandas Foundation

Tribhuvandas Foundation is an Integrated Rural Health & Development Programme of Amul. Inspired by the great success of round the clock health care services to the livestock of dairy farmers of Kaira, Shri Tribhuvandas Patel, the Founder Chairman of Amul felt the need of such a service to the rural populace too as he could learn and experience the afflictions brought to them by absence of medical services in rural villages of Kaira. He donated the prize money of his Ramon Magsaysay Award and the fund he received from kaira farmers on his retirement, for his life time service to them, to set up this Foundation. Dr V. Kurien also played an active role in this set up. It was registered as a Charitable Trust under the Public Trust Act 1950, on July 1975.

The Foundation derives its uniqueness from the fact that it is a need-based programme for villagers and is run by the villagers themselves. It fulfills the basic health care needs of the villages. Apart from providing primary treatment for various common ailments, the Foundation is also actively involved in promoting preventive health practices. It is headquartered at Anand with sub-centers spread over the district Anand and Kheda. The Foundation has a dedicated Team of Medical Officers, Nurses, Administrative staff, Dais (Traditional Birth Attendants) and Village Health Workers to provide the following services:

Treatment of common ailments; Immunization through vaccination – BCG, Triple Vaccine, Polio, Measles, Tetanus, Anti rabies at subsidised rate; Treatment of tuberculosis and anaemia ; Antenatal,postnatal care, neonatal and infant care ; Nutritional rehabilitation centers for undernourished children and vulnerable mothers; Identification of suspected cases of cancer and referrals ; Education and counseling on reversible and permanent methods of family planning, health education sessions and referral of critical cases to secondary and tertiary care centers; Building partnership with government for family planning programmes in rural areas; Distribution of contraceptive tablets and condoms through regular camps; Laparoscopic TL and minilap operations, insertion of Copper-T (IUD), and Tubectomy; Cancer awareness programme, detection camp and treatment at Shri Krishna Hospital, Karamsad; Balwadis (Day Care Centres) for pre-school play and learning activities for children of three to five years.

It also provides continuous training and retraining to Village Health Workers who are chosen from villages with the help of the Dairy Co-operative Societies. This enables the Village Health Workers to carry out health education and primary health care from door-to-door, in groups and at the Dairy Co-operative Societies Centres with confidence. The training focuses on primary health care, waterborne disease, know your body, pregnancy and the delivery period, new born

care and care of the weak child, growth monitoring, breast feeding, common disease of childhood, malaria, tuberculosis. Training is also imparted on other topics as the need arises.

The Foundation has pioneered in large scale implementation of the concept of ‘Safe Delivery Kit’ in India ensuring a hygienic and safe delivery of pregnant mother. The Foundation in partnership with Government of Gujarat, has made ‘Safe Delivery Kits’ accessible to inhabitants of remote rural interiors who had been unable to access such services from state or private agencies. The Safe Delivery Kit is supplied to various health centres of the government of Gujarat The success of the initiative has been manifested by drastic fall in neonatal tetanus, and maternal, neonatal, and infant mortality.

The Foundation has achieved a drastic reduction in percentage of Low Birth Weight in Anand and Kheda districts – birth of babies with below 2.5 kg just 11% at the end of year 2008-09 while it is 25-30% and even up to 40% in parts of India and Gujarat. The Foundation is recipient of First Prize for the Best Effort in Family Welfare in the Voluntary Sector from the Ministry of Health & Family Welfare, Government of India in 1993. The achievement in creating a popular demand for ‘Balwadi’ across the rural community led to the initiation and operation of government-run ‘anganwadis’. The Foundation has created a strong platform for organized training of rural women on appliqué/handicrafts and sale of their works to generate additional income.

In association with Sankara Eye Hospital, the Foundation has helped in performing 2000 surgeries free of cost for the vision impaired patients. The efforts on to organise camps for detection and improvement of vision of the rural people. The Foundation has been identified by Government of Gujarat providing training inputs to members of Village Health and Sanitation Committees of Village Panchayats of all the villages of Umreth, Anklav and Anand talukas of Anand District and Balasinor and Virpur talukas of Kheda District for a period of one year from 2009-2010.

Tribhuvandas Foundation has become one of Asia’s largest community healthcare service providers covering more than 700 villages. The Foundation still strives to extend its services to as much villages as possible.

4. DABUR INDIA LIMITED

Dabur India's CSR Policy is inspired by the words of its founder Dr S K Burman who said "What is that life worth which cannot bring comfort to others". While pursuing our business strategy of introducing products that give our consumers health & wellness, Dabur operates in a manner that not just continues to generate an attractive return for shareholders, but also minimizes our impact

on the environment and helps in replenishing the planet; while lending a helping hand to the community.

CSR Activities :

Corporate Citizernship 

When our Founder Dr. S. K. Burman first established Dabur, he had a vision that saw beyond the

profit motive. In his words, “What is that life worth which cannot bring comfort to others”. This

ideal of a humane and equitable society led to initiatives taken to give back some part of what

Dabur has gained from the community.

 

Our major initiatives in the Social sector include:

Establishment of the Sustainable Development Society, or Sundesh, in 1993 - a non-

profit organisation to promote research and welfare activities in rural areas;

Promoting health and hygiene amongst the underpriviledged through the Chunni Lal

Medical Trust; and

Organising the Plant for Life programme for schoolchildren - to create environmental

awareness amongst young minds.

  

Sandesh is the resource centre that works towards the development and upliftment if the rural

populace. It offers a range of facilities from health posts to skill development for the rural

community. It also acts as an in house training and information centre for farmers.

Sundesh has several programmes such as Adult literacy, diagnostic and healthcare facilities,

organising health camps, cutting and tailoring , training, bee keeping , animal husbandry and self

help groups for farm development and reducing poverty. One of the key programmes is

promotion of SHGs through NABARD. The mission of this group is to promote sustainable and

equitable agriculture and rural prosperity through effective credit support , related services,

institution development and other innovative initiatives. Under this initiative finance is provided

for farm activities like minor irrigation , animal husbandry, farm mechanization , land

development , horticulture, plantation and medicinal crops. Even non farm activities like rural

industries , artisans, handicrafts, handlooms , rural housing etc are financed under this

programme

Today there are 94 active groups with SUNDESH under NABARD, of which 54 groups had

been graded , while 48 groups are linked to the bank.

Jayanti Gramin Vikas Swarojgar Yogjna. This initiative was designed for the economic

development and upliftment of families living below the proverty line. Today, the programme

boasts of over 63 SHGs influencing the lives of over 700 poor people and 48 groups that are

credit linked. The total number of groups under this project has topped 63. Of this, 55 groups

were 1st graded by the bank and CCL was done for 49 groups. About 29 other groups had been

2nd graded and 27 groups were sanctioned loan by the bank.

 

Our commitment to Environment

 Ancient wisdom of conservation

From times immemorial, Indian sages and men of wisdom have understood and appreciated

the value of nature and its conservation. Our ancestors recognised that if we grabbed from

nature beyond what was healthy, it would lead to all round degradation, and even the

extinction of humanity. That is why nature was sanctified and worshipped in the form of

gods and goddesses.

 Dabur upholds the tradition

Today, we at Dabur also value nature's bounty. Without the fruits of nature, the vision of

Dabur would never have been fulfilled. And that is the reason for our unfailing commitment

to ecological conservation and regeneration. We would like to follow the principles of our

ancient texts, which say:

 

"Dehi me dadami te" - "you give me, and I give you".

 

Back to Nature

Rare herbs and medicinal plants are our most valuable resource, from which all our products

are derived. Due to overexploitation of these resources and unsustainable practices, these

plants and herbs are fast reaching the point of extinction. In view of this critical situation,

Dabur has initiated some significant programmes for ecological regeneration and protection

of endangered plant species.

Plants for Life

We have set up the "Plants for Life" project in the mountainous regions of the Himalayas.

Under the project, a high-tech greenhouse facility has been set up for developing saplings of

rare and endangered medicinal plants. Fully computer-controlled and monitored, this

greenhouse maintains the highly critical environmental parameters required for their survival.

We are also developing quality saplings of more than 20 herbs, 8 of them endangered,

through micro propagation.

In addition, satellite nurseries spread across mountain villages and contract cultivation of

medicinal herbs helps in maintaining the ecological balance. These measures have also

helped provide local cultivators the scientific knowledge for harvesting herbs and a steady

source of income. So that they are not forced to exploit the environment to earn a livelihood.

Living a Green HeritageThese are significant steps that can contribute to a better world for coming generations. To whom we would like to bequeath a world not bereft of nature. But full of flowering and fruit bearing trees, animals, birds and humans living in good health and complete harmony.

5. GODREJ INDUSTRIES LTD

Godrej has always believed in giving back to nature and society. The founders of Godrej had a highly developed consciousness which drove them to undertake socially relevant initiatives in housing, education, primary health, family planning, skill building, environment conservation and protection etc. These ideals are followed even today. Our purpose at Godrej is to make life better and brighter for all beings.

The founders of Godrej over a period of time, have undertaken different initiatives in different areas, which today can be said to be falling under ‘Corporate Social Responsibility’. Yet the one common theme running across the initiatives is making human life better in its totality.

CSR Activities :

Udayachal Schools: Providing quality care and education

Udayachal, the school run by the Godrej group of companies, surrounded by gulmohars, copper pods, green lawns and cooing birds, symbolises the schools’ ideal - to help students from even the humblest origins to rise to the heights of a fulfilled life.

Education in the schools focuses on total personality development of the child, which is enhanced and strengthened through joyful learning. This takes into account the physical, socio-emotional, aesthetic, spiritual and mental growth,rather than merely academic progress.

The need for a school at Vikhroli arose when, 50 years ago, on his routine visits to the company,

Pirojsha Godrej was greatly disturbed by the plight of the employees’ children who, having

nothing else to do, were just wasting their time roaming the factory surroundings. Pirojsha’s

youngest son Naval, agreed with his father and enthusiastically pursued the project. Naval’s wife

Soonu, suggested involving Cooverbai Vakil, a noted educationist and product of Shanti-

Niketan, in this endeavour. The School began in 1955 in a small grain store, as a Bal Mandir.

The founders went from door to door in the Godrej Housing Colony, explaining the benefits of

education, almost begging employees to send their children to the newly opened school where

they had to actually bathe and groom some of the children. Even today, individual needs are

catered to and nutritional supplements and medical services provided.

For the parents, years of constant exposure to cultural and educational programmes including

lectures by eminent personalities, helped lay the foundation for a holistic educational system.

Gradually the school grew into a 3 medium (Gujarati, Marathi and English), 3000 students strong

centre of pre-primary, primary and secondary learning.

Currently, Udayachal School, caters to children other than those of employees. This change was

brought in, when the Chairman and Managing Director of the Company gave in to repeated

requests from local residents who also wanted their children to get the quality education. This

promotes interaction amongst children of different castes, religions and socio-economic milieu.

Udayachal School is also an ISO-14001 certified institution, which goes to show that

environmental issues are held dear here.

On the technical side, subjects such as carpentry, fitting, electronics, plumbing and computer

skills are offered for boys and girls. Every child is made aware of the environment. This

awareness extends to the students’ immediate environment where they clean their classrooms.

On a small plot near the school, children are taught how to grow and take care of plants from the

sowing stage to a full-grown plant.

It is our constant endeavour to create a happy and fun-filled learning environment for children.

Through experiential learning, we aim to develop young inquiring minds. Children are given

freedom to discover, explore, question and make choices.

Godrej Memorial Hospital - striving to strike the right balance

The Godrej Hospital (GMH) was set up by Godrej Memorial Trust. The objective of the hospital was to create a balance between the philanthropic hospital in the city and the private hospitals. For the same purpose, an alternate business model was created which would have high quality healthcare services at an affordable cost in a rational and ethical manner.

The hospital has in fact managed to implement this unique business model which is inspired by the concept of Sustainable Philanthropy. This model was adopted with a belief that a wholly philanthropic model would not be sustainable and would grow only in a very limited sense.

To make healthcare available at affordable prices, the OPD is divided into three types- OPD for poor patients where the patients are charged only Rs 10 per consultation, the concessional OPD

where Rs 150 is charged for general speciality and Rs 200 for superior speciality consultations. The patient can see the doctor for the same ailment free for another nine days after the first visit and then 50 percent as follow up charges from the 10th to the 30th day. The hospital also takes pride in being one of the only hospitals in the city that does not insist on any advance.

The hospital building is well designed, where the bed moves with the patient as required. All modern biomedical equipment is available, such as CT scans, advanced operating microscopes, equipment for key-hole surgeries, life support equipment as well as ICUs for adults and new born babies (neonates).

To help the needy patients, a network of trusts and charitable institutions is put in place and is activated readily if the need arises. The hospital provides free emergency medical service through its cardiac ambulance with a well-trained medical team. The pharmacy, diagnostic and casualty services are available round the clock.

The hospital does free cleft surgeries in association with Smile Train Project and have completed

over 300 surgeries till date. The hospital also organises free medical camps, especially on

cataracts. For the convenience of patients who cannot make it to the hospital, an out door

collection service has started in Vikhroli, Powai, Kanjumarg and Chembur area.

Godrej Memorial Hospital (GMH) has now been awarded the NABH accreditation (accreditation assures ‘Quality of Care & Patient Safety’ in accredited Hospitals), w.e.f. 1st July 2009.

Long term employment for the visually disabled

The activity of hardware packet making for chairs has been outsourced to National Association for Disabled Enterprises (NADE) for the last several years. The objective of this decision was to ensure continued occupation for the visually disabled. The activity began way back in 1996-97, where approximately 8,000 to 10,000 hardware packets of 30 different kinds every month were made by them.This activity continues till date, with the scope increasing to 40,000 packets of 200 kinds. The type of hardware components has also increased from 20 components then to 75 components now, with the change in business scenario and customer requirements. In a span of about ten years, we got approximately 3 million hardware packets from NADE. What is amazing is that the defects due to wrong packing was observed to be less then 2000 PPM, which is really a commendable performance by the people working on it.

The activity has also helped us learn that when a process is fool proofed and there is a level of dedication towards it, the output can be excellent.

Environment protection and corporate responsibility

The vast tract of unique Mangrove forests conserved and protected by Godrej in Vikhroli demonstrates how industry and nature could well exist in harmony with each other. The mangrove flora of Pirojshanagar is well diversified. There are 13 species of mangroves and mangrove associates. The faunal composition in the area is also equally diverse.Major objectives of SPGMEC are conservation of the marine diversity (mangrove ecosystem) through research, education/awareness building and regular monitoring. Simultaneously, the centre is engaged in the propagation of various species of mangroves, developing theme parks on medicinal plants and rare endemic plant species, palms amongst others.

The Green Business Centre, Hyderabad

The Green Business Centre, technically assisted by USAID, is the first building in the world to receive the Platinum LEED award, making it one of the most environmentally advanced buildings in the world. A Green Building keeps environmental concerns in focus in the following areas - a) selection of site for the building b) architectural features c) water and energy efficiency d) energy efficiency of equipments in the buildings e) selection and usage of materials f) Indoor Air Quality g) Occupant Thermal Comfort.

A Green building and a conventional building would visually not look very different, but the difference really lies in the design, the construction and operational aspects.

Conserving for a brighter tomorrow

Godrej & Boyce, being a light engineering company, does not fall in the designated industries category as per Energy Conservation Act.

However, at Godrej, voluntary compliance of energy conservation systems is in place for the last two decades. Inspired by the adage, ‘One cannot manage what one does not measure’, Godrej believes measurement/monitoring and verification of past v/s present data gives an insight and paves a roadmap for Energy Conservation Measures (ECM) to be taken up.

At Godrej, Energy audits are conducted at regular intervals and all techno-economically viable suggestions are implemented.

6. EMAMI LTD

Emami Limited is an Indian producer of fast moving consumer goods (FMCG), such as cosmetics and health and baby products. The company is based in Kolkata.

The company is well known in India for its fairness cream products for men. In 2008 the company announced that it intended to offer baby care products. The company's health products unit offers tonics for colds and coughs as well as nutraceuticals.

CSR Activities :

Emami’s mission of “contributing whole heartedly towards the environment and society’ attains

a more humane form with its approach of addressing various social issues. As a responsible

corporate citizen, Emami continues to invest in socially meaningful projects inWest Bengal and

adjoining states. As a part of company’s Corporate Social Responsibility Emami has devised

various “Self Employment” schemes like “Emami Mobile Traders” and “Small Village Shops”

schemes for the rural unemployment youth:

 

Highlights of “Self Employment” scheme”

 

Emami Mobile Traders

This scheme covers small to large villages with population ranging from 1500 to 5000.

The selected persons are involved in door to door selling of Emami products in interior villages

Depending on the effort and motivation of the individual, the monthly earning varies between Rs

500 to Rs

2000 per month.

On an average they can earn 18% on the sale value of the products.

Emami does not take any deposit from the selected individuals and takes back unsold stocks if

required

Emami guarantees a minimum income of Rs 1000 per month provided a total sale of Rs 4000 is

achieved per month

Proper training of sales and marketing skills

Free product samples were supplied for personal use to give prospective consumers a first-hand

experience.

Uniform, raincoats and pullovers and personal accident insurance cover is provided

Cycles at 50% rates/ on installment payment can be purchased

 

Emami Small Village Shops

This scheme is being promoted mostly for women in villages where there are no permanent

shops.

The housewives put up the Small Village Shops at their own village residence

They market the Emami products from their home to the other villagers

The housewives are encouraged to take up this challenge with the help of NGOs and voluntary

workers working in villages

Emami does not take any deposit from the women and takes back the unsold products

The marketing training given by Emami helps the person to find selling opportunities for other

items manufactured by micro enterprises as well

 

The Roll Out

An initial trial in West Bengal showed encouraging results leading to financial independence of

women and unemployed youth. We have rolled out the schemes to Andhra Pradesh, Madhya

Pradesh, Orissa and Chattisgarh over last one year. We also plan to consolidate the activities in

more states like Orissa, Madhya Pradesh, Andhra Pradesh and Chattisgarh.

 

Community Medical Support

The Company sponsors subsidized treatment of the needy in best-in-class hospitals like AMRI

and Shree Vishudhanand Hospital and Research Institute in Kolkata. Donations are made in the

form of free supplies of medicines, assistance for surgeries and hospital charges for the poor

through trust. Emami established the ‘Emami National Institute for Bone Marrow

Transplantation’ in the Narayana Hrudayalaya Institute, Bangalore, under the supervision of Dr

Devi Shetty, the well-known cardiac surgeon. This institute provides treatment for bone marrow

transplantation at free or affordable costs to the needy.

7. GlaxoSmithKline Pharma Ltd.

GlaxoSmithKline plc (GSK) is a British multinational pharmaceutical, biologics, vaccines and consumer healthcare company which has its headquarters in Brentford, London. As of March 2014, it was the world's sixth-largest pharmaceutical company after Johnson & Johnson, Novartis, Hoffmann-La Roche, Pfizer, and Sanofi, measured by 2013 revenue. The company was established in 2000 by the merger of Glaxo Wellcome (formed from the acquisition of Wellcome plc by Glaxo plc) and SmithKline Beecham plc (formed from the merger of Beecham Group plc and SmithKline Beckman Corporation, which in turn was formed by combining the Smith, Kline & French and Beckman companies).

The company has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. As of 2 May 2014 it had a market capitalisation of £79 billion, the fourth-largest of any company listed on the London Stock Exchange. It has a secondary listing on the New York Stock Exchange. Andrew Witty has been the chief executive officer since May 2008.

GSK manufactures drugs and vaccines for major disease areas such as asthma, cancer, infections, diabetes, digestive and mental health conditions, the biggest selling of which were Advair, Avodart, Flovent, Augmentin, Lovaza, and Lamictal in 2013. Many medicines were historically discovered or developed at GSK and its predecessor companies and are now sold as generics. Its drugs and vaccines earned £21.3 billion in 2013. Its consumer healthcare division, which earned £5.2 billion in 2013, sells oral healthcare and nutritional products, drinks and over-the-counter medicines, including Sensodyne, Boost and Horlicks.

CSR Activities :

Corporate Social Responsibility

We are a research-based pharmaceutical company. Our mission is to improve the quality of

human life by enabling people to do more, feel better and live longer.

We believe that through our business we make a valuable contribution to society by developing

and marketing medicines which improve people’s lives. Our philosophy is to target support to

selected programs that are innovative, sustainable and which produce tangible results.

 

CSR in India

We follow the rationale that we are linked closely to the communities in which we operate-

locally, nationally or globally. We cannot exist in isolation. All our actions are focused around

this feeling of being centered.

Our stated mission statement is “To lend a helping hand to the less fortunate in our society

through the support of women, children and the aged in the areas of health and education.”

Implementing this philosophy in spirit, we make a positive contribution to the communities in

which we operate, and invest in health and education programs and partnerships that aim to bring

sustainable improvements to under-served people.

 

Our core value – we care

Being a premier pharmaceutical company in the country, GSK’s core value is to be a good

corporate citizen. It is committed to the communities in which it works. Support to the

community through charitable initiatives is the way through which it invests in society. This is

done by :

Being proactive in improving the environment

Participating and contributing actively for Tribal Welfare

 

Our initiatives are primarily focused towards women & children and are directed in the areas of

Health and Education. We believe that these areas are related and of direct concern to GSK. If

there is proper education, one will eventually learn to be hygienic, and if one is hygienic, will

one remain healthy. The organization facilitates in educating masses on good practices of healthy

living.

At GlaxoSmithKline India, the activities towards community development are attached to the

Corporate Communications Department. Since 1970, the Company has been implementing

various social responsibility activities apart from statutory ones. The following Community

Development activities are carried out through the company’s social work unit situated at its

Head Office in Mumbai.

 What we doWe provide money, medicines, time and equipment to non-profit organizations to help improve

health and education in under-served communities. We focus on programs that are ‘innovative,

sustainable and bring real benefits to those most in need’.

 Field action projects undertaken:

Rural projects:

Healthcare

1. GSK India undertakes a number of Rural Development initiatives through GRAMIN

AAROGYA VIKAS SANSTHA (GAVS), a Rural Health Development Organization. GAVS is

a registered public trust promoted by the heritage company Glaxo India in April 1997.

2. India is a country with more than one billion people where an estimated 350 million people live

in absolute poverty. Tribal people constitute roughly 8% of India’s population. Tribals are socio-

economically disadvantaged and marginalized groups. Most tribes are concentrated in heavily

forested areas that combine inaccessibility with limited political or economic significance.

3. Tribals have been accorded special status in the constitution and there are several schemes

designed for their upliftment. However, a number of these schemes are poorly implemented and

there has not been much improvement in their status. Even today, the tribal population lags

substantially behind in terms of education and health.

4. GAVS works in 15 predominantly Tribal villages in Peth Taluka, Nashik District. As a part of its

Rural Tribal Development mission, GSK collected primary data from 92 villages around Nashik

in the year 2005, to identify the most under served village communities which needs support.

5. Peth is the smallest Tehsil / Block in the district; it occupies 3.63% of the district. The tribal

population in Nashik falls amongst the 10% of the total Tribal population (7.4 million) in the

state of Maharashtra. These groups remain isolated, living in remote forest and hilly areas. A

majority of them have poor health status and are ignorant about health issues. Inaccessibility, low

literacy level, absence of any NGO and paucity of basic healthcare facilities characterize these

villages. That is why we selected this cluster of villages for providing support.

6. The Trusts’ Mobile Clinic covers a distance of 160 kms each day and visits a cluster of five

villages in rotation, covering all 15 villages. A qualified medical practitioner along with two

healthcare workers visits the villages five days a week. Social workers and 30 Healthcare

Workers from the local villages render help in this activity. Over 20000 Tribal people are

benefited by this healthcare initiative.

7. The villagers often suffer from skin problems, TB, Asthma, water-borne diseases and

Respiratory Tract Infections. Ignorance, poverty and difficult terrain make it near impossible for

these inhabitants to avail of timely medical services. This results in aggravation of the diseases to

extreme conditions, often leading to fatalities.

  

Education

GAVS also operates a Balwadi (pre-school) for under five age group children of rag-pickers’

community in a slum pocket called Amrapali in Nashik. Besides inculcating good civic norms,

these techniques train and educate their minds with impact.

GAVS field action programs include:

Medical check- up and treatment offered at Trust’s Mobile Van

Ongoing Health camps and Health awareness programs

Vocational Training activities for employment generation at the local level

Women empowerment activities through SELF HELP GROUPS

Innovative programs that accurately address a current issue or Health related need

 

Urban projects :

HIV/AIDS Helpline, Mumbai

GSK launched a 24-hour Helpline in October 2000, as a unique and innovative initiative for

counseling and dissemination of information on HIV/AIDS.

The unique features of this Helpline are:

Complete acceptance of the caller

No stigma attached

Confidentiality maintained

Professionally managed by highly qualified Counselors.

The Helpline provides not only information on the disease but also emotional support to callers.

Operating between 9.00 a.m. and 6.00 p.m. the calls are answered by professional counselors.

The caller’s misconceptions and inhibitions on HIV/AIDS are cleared which helps them to

improve their quality of life.

 

 Other projects

Support for the girl child

GSK supports girl students in Janata High School every year by the way of supporting their

education. In a small way, GSK is also involved in community developmental activities with

Adolescents girls in Mariama nagar slums at Worli Naka.

 

Donations for humanitarian relief efforts

GSK donates essential products for humanitarian relief efforts. Such donations are made at the

request of government and charitable organizations.

 

Supporting NGOs

GSK also supports organizations like Aakanksha by way of donating space for running a

learning centre for around 100 less privileged children from slums in around Worli.

GSK supports ISKCON Foundation’s Mid-Day Meal project in Mumbai for less privileged

children by way of Cash Donation

 To summarize, we believe that we as an organization have a significant role to play in the

betterment of our environment and the world around us. We believe that we have a duty in

giving back to society some part of our success and strive to do this through our support of the

under privileged sections of our society.

The ‘responsible business practice’ is one of the most dynamic and challenging subjects

corporate leaders face today and we are geared to take on this challenge.

II. The Reporting Guideline adopted by the Companies

S. No COMPANY NAME REPORTING GUIDELINE ADOPTED

2011-12 2012-13 2013-14

1 Hindustan Unilever Ltd. Global Reporting

Initiative

(GRI) guidelines

Global Reporting

Initiative

(GRI) guidelines

Global Reporting

Initiative

(GRI) guidelines

2 ITC Ltd. GRI Sustainability

Reporting

Guidelines

GRI Sustainability

Reporting

Guidelines

GRI Sustainability

Reporting Guidelines

3 AMUL GRI

G3.1 Guidelines

GRI

G3.1 Guidelines

GRI G3.1 Guidelines

4 Dabur Global Reporting Initiative

(GRI) guidelines

Global Reporting Initiative

(GRI) guidelines

Global Reporting Initiative

(GRI) guidelines

5 Godrej Industries Ltd. G4 guidelines G4 guidelines G4 guidelines

6 Emami Ltd. G4 guidelines G4 guidelines G4 guidelines

7 GlaxoSmithKline Pharma

Ltd.

(GRI)

G3.1 Sustainability

Reporting

Guidelines

(GRI)

G3.1 Sustainability

Reporting

Guidelines

(GRI)

G3.1 Sustainability

Reporting Guidelines

III. CSR Expenditure

S.

No

COMPANY

NAME

PROFITS

(Profit Before Tax)

Expected

CSR

Expenditu

re (2% of

Av NP of

last three

years)

Actual CSR

Expenditure

in 2013-14

Deviation

2010-11 2011-12 2012-13 2013-14

1 Hindustan Unilever

Ltd.7,716.90 5,730.00 5,096.30

123.62 81.91 14.42

2 ITC Ltd.22,431.9

3

23,845,285

30,474,764

454.27 511.67 30.44

3 AMUL

39,534 61,976 16,781

788.6 452.6 10.23

4 Dabur-1487 -3786 -739

-40.08 3.45 5.42

5 Godrej Industries

Ltd.

4410 5283.23 5101 66.77 68.15 17.08

6 Emami Ltd.1,219.24 1,474.56 2,615.51

23.65 24.79 12.14

7 GlaxoSmithKline

Pharma Ltd.129.09 1,180.44 1,285.48

15.6 5.33 10.27

IV. Corporate Governance Report

1. ITC LTD

Preamble

Over the years, ITC has evolved from a single product company to a multi-business corporation. Its businesses are spread over a wide spectrum, ranging from cigarettes and tobacco to hotels, packaging, paper and paperboards and international commodities trading. Each of these businesses is vastly different from the others in its type, the state of its evolution and the basic nature of its activity, all of which influence the choice of the form of governance. The challenge of governance for ITC therefore lies in fashioning a model that addresses the uniqueness of each of its businesses and yet strengthens the unity of purpose of the Company as a whole.

Since the commencement of the liberalisation process, India's economic scenario has begun to alter radically. Globalisation will not only significantly heighten business risks, but will also compel Indian companies to adopt international norms of transparency and good governance. Equally, in the resultant competitive context, freedom of executive management and its ability to respond to the dynamics of a fast changing business environment will be the new success factors. ITC's governance policy recognises the challenge of this new business reality in India.

Definition and Purpose

ITC defines Corporate Governance as a systemic process by which companies are directed and controlled to enhance their wealth generating capacity. Since large corporations employ vast quantum of societal resources, we believe that the governance process should ensure that these companies are managed in a manner that meets stakeholders aspirations and societal expectations.

Core Principles

ITC's Corporate Governance initiative is based on two core principles. These are :

Management must have the executive freedom to drive the enterprise forward without undue restraints; and this freedom of management should be exercised within a framework of effective accountability.

ITC believes that any meaningful policy on Corporate Governance must provide empowerment to the executive management of the Company, and simultaneously create a mechanism of checks and balances which ensures that the decision making powers vested in the executive

management is not only not misused, but is used with care and responsibility to meet stakeholder aspirations and societal expectations.

Cornerstones

From the above definition and core principles of Corporate Governance emerge the cornerstones of ITC's governance philosophy, namely trusteeship, transparency, empowerment and accountability, control and ethical corporate citizenship. ITC believes that the practice of each of these leads to the creation of the right corporate culture in which the company is managed in a manner that fulfils the purpose of Corporate Governance.

Trusteeship: ITC believes that large corporations like itself have both a social and economic purpose. They represent a coalition of interests, namely those of the shareholders, other providers of capital, business associates and employees. This belief therefore casts a responsibility of trusteeship on the Company's Board of Directors. They are to act as trustees to protect and enhance shareholder value, as well as to ensure that the Company fulfils its obligations and responsibilities to its other stakeholders. Inherent in the concept of trusteeship is the responsibility to ensure equity, namely, that the rights of all shareholders, large or small, are protected.

Transparency : ITC believes that transparency means explaining Company's policies and actions to those to whom it has responsibilities. Therefore transparency must lead to maximum appropriate disclosures without jeopardising the Company's strategic interests. Internally, transparency means openness in Company's relationship with its employees, as well as the conduct of its business in a manner that will bear scrutiny. We believe transparency enhances accountability.

Empowerment and Accountability: Empowerment is an essential concomitant of ITC's first core principle of governance that management must have the freedom to drive the enterprise forward. ITC believes that empowerment is a process of actualising the potential of its employees. Empowerment unleashes creativity and innovation throughout the organisation by truly vesting decision-making powers at the most appropriate levels in the organisational hierarchy.

ITC believes that the Board of Directors are accountable to the shareholders, and the management is accountable to the Board of Directors. We believe that empowerment, combined with accountability, provides an impetus to performance and improves effectiveness, thereby enhancing shareholder value.

Control: ITC believes that control is a necessary concomitant of its second core principle of governance that the freedom of management should be exercised within a framework of appropriate checks and balances. Control should prevent misuse of power, facilitate timely management response to change, and ensure that business risks are pre-emptively and effectively managed.

Ethical Corporate Citizenship: ITC believes that corporations like itself have a responsibility to set exemplary standards of ethical behaviour, both internally within the organisation, as well as in their external relationships. We believe that unethical behaviour corrupts organisational culture and undermines stakeholder value.

The Governance Structure

Flowing from the philosophy and core principles, Corporate Governance in ITC shall take place at three interlinked levels, namely -

Strategic supervision by the Board of Directors Strategic management by the Corporate Management Committee Executive management by the Divisional Chief Executive assisted by the Divisional

Management Committee

It is ITC's belief that the right balance between freedom of management and accountability to shareholders can be achieved by segregating strategic supervision from strategic and executive management. The Board of Directors (Board) as trustees of the shareholders will exercise strategic supervision through strategic direction and control, and seek accountability for effective strategic management from the Corporate Management Committee (CMC). The CMC will have the freedom, within Board approved direction and framework, to focus its attention and energies on the strategic management of the Company. The Divisional Chief Executive, assisted by the Divisional Management Committee, will have the freedom to focus on the executive management of the divisional business.

The 3-tier governance structure thus ensures that:

Strategic supervision (on behalf of the shareholders), being free from involvement in the task of strategic management of the Company, can be conducted by the Board with objectivity, thereby sharpening accountability of management.

Strategic management of the Company, uncluttered by the day-to-day tasks of executive management, remains focused and energised; and

Executive management of the divisional business, free from collective strategic responsibilities for ITC as a whole, gets focused on enhancing the quality, efficiency and effectiveness of its business.

Roles

The core roles of the various entities at the three levels of Corporate Governance will be as follows:

Board of Directors (Board):

The primary role of the Board of Directors is that of trusteeship to protect and enhance shareholder value through strategic supervision of ITC, its wholly owned subsidiaries and their wholly owned subsidiaries. As trustees they will ensure that the Company has clear goals

relating to shareholder value and its growth. They should set strategic goals and seek accountability for their fulfillment. They will provide direction, and exercise appropriate control to ensure that the Company is managed in a manner that fulfills stakeholder aspirations and societal expectations. The Board must periodically review its own functioning to ensure that it is fulfilling its role.

The ITC Board will be a balanced Board, consisting of Executive and Non-Executive Directors, the latter including independent professionals. Executive directors, including the Executive Chairman, shall not generally exceed 1/3rd of the total strength of the Board. The Non-Executive Directors shall comprise eminent professionals, drawn from amongst persons with experience in business / finance / law / public enterprises. Directors shall be appointed / re-appointed for a period of three to five years, and in the case of Executive Directors up to the date of their retirement, whichever is earlier. The Board shall determine from time to time the retirement age for both Executive and Non-Executive Directors. The Board shall specify the maximum number of company Directorships which can be held by members of the ITC Board.

Non-Executive Directors are expected to play a critical role in imparting balance to the Board processes by bringing an independent judgement to bear on issues of strategy, performance, resources, standards of Company conduct, etc.

The Board shall meet at least six times a year and as far as possible meetings will be held once in two months. The annual calendar of meetings shall be agreed upon at the beginning of each year. As laid down in the Articles of Association of the Company, the quorum for meetings shall be one third of members and decisions shall be taken by simple majority, unless statutorily required otherwise. Meetings shall be governed by a structured agenda. All major issues included in the agenda shall be backed by comprehensive background information to enable the Board to take informed decisions. Agenda papers, as far as practicable, shall be circulated at least three working days prior to the meeting. Normally items for the Board Agenda, except those emanating from Board Committees, shall have been examined by the CMC. Minutes shall be circulated within 15 working days of the meeting and confirmed at the next meeting. Board decisions shall record the related logic as far as practicable.

The Board shall have the following Committees whose terms of reference shall be determined by the Board from time to time:

Audit Committee: To provide assurance to the Board on the adequacy of internal control systems and financial disclosures. The Head of Internal Audit will act as co-ordinator to the Audit Committee, but will be administratively under the control of the Director accountable to the Board for the Finance function.

Securityholders Relationship Committee: To oversee redressal of shareholder and investor grievances, and, inter alia, approvesub-division / consolidation / issue of duplicate share certificates, transmission of shares and issue & allotment of shares upon exercise of Options under the Company's Employee Stock Option Schemes.

Nomination & Compensation Committee :To recommend to the Board inter alia(i) nominations for membership of the CMC and the Board, and oversee succession for the seniormost level of management below the Executive Directors and (ii) compensation terms for Executive Directors and the senior most level of management below the Executive Directors.

CSR and Sustainability Committee: To review, monitor and provide strategic direction to the Company's CSR and sustainability practices towards fulfilling its triple bottom line objectives. Terms of Reference of the Board Committees shall include:

Objectives, Role, Responsibilities Authority / Powers Membership & Quorum Chairmanship Tenure Frequency of Meetings

The composition of these Committees will be as follows:-

Committee Members Chairman

Audit Committee

Non-Executive Directors of the Company, as may be decided by the Board

The Director responsible for the Finance function, Head of Internal Audit and representative of Statutory Auditors shall be Invitees with the Company Secretary as the Secretary.

One of the Independent Directors, to be determined by the Committee

Securityholders Relationship Committee

Directors of the Company, as may be decided by the Board, with the Company Secretary as the Secretary.

One of the Non-Executive Directors, to be determined by the Board.

Nomination & Compensation Committee

Directors of the Company, as may be decided by the Board.

One of the Non-Executive Directors, to be determined by the Board.

CSR and Sustainability Committee

The Executive Chairman and Non-Executive Directors of the Company, with the Company Secretary as the Secretary.

Executive Chairman.

Normally meetings of the Board Committees shall be convened by their respective Chairmen. However, any member of the Committee may, with the consent of the concerned Chairman, convene a meeting of the Committee.

The Chairmanship of Board Committees shall be for two years at a time.

Signed minutes of Board Committee meetings shall be tabled for the Board's information as soon as possible. However, issues requiring Board's attention / approval should be tabled in the form of a note to the Board from the Committee Chairman. In the event there are no issues to be brought before the Board by the Audit Committee, the Committee Chairman shall submit a 'NIL' report to the Board.

Executive Chairman of ITC:

The Executive Chairman of ITC shall operate as the Chief Executive for ITC as a whole. He shall be the Chairman of the Board and the CMC. His primary role is to provide leadership to the Board and CMC for realising Company goals in accordance with the charter approved by the Board. He shall be responsible for the working of the Board, for its balance of membership (subject to Board and Shareholder approvals), for ensuring that all relevant issues are on the agenda, for ensuring that all directors are enabled and encouraged to play a full part in the activities of the Board. He shall keep the Board informed on all matters of importance. He shall preside over the General Meetings of shareholders. As Chairman of the CMC he will be responsible for its working, for ensuring that all relevant issues are on the agenda, for ensuring that all CMC members are enabled and encouraged to play a full part in its activities.

Executive Director:

As a member of the CMC, contribute to the strategic management of the Company's businesses within Board approved direction / framework.

As Director accountable to the Board for a business / function (Line Director), assume overall responsibility for the strategic management including governance processes and top management effectiveness for businesses / functions reporting to him. 

It is clarified that in the context of the multi-business character of the Company, an Executive Director is in the nature of a Managing Director for those businesses and functions reporting to him.

As Director accountable to the Board for a wholly owned subsidiary, or its wholly owned subsidiary (Line Director), act as the custodian of ITC's interest and be responsible for their governance in accordance with the charter approved by the Board.

As Director accountable to the Board for a particular corporate function (Line Director), assume overall strategic responsibility for its performance.

Divisional Management Committee (DMC):

Executive management of the divisional business to realise tactical and strategic objectives in accordance with CMC / Board approved plan. Composition of the DMC shall be determined by the Line Director with the approval of the CMC. The Divisional CEO shall convene and chair the DMC meetings. If the Divisional CEO, for any reason, is not in a position to convene a

required DMC meeting, he shall in writing delegate the power to convene and chair the required meeting to one of the DMC members identified by name. Such delegation should be either for a specific meeting or for meetings to be held during a specific period of time. It cannot be a general, open-ended delegation. The key functions of the Division shall be represented on the DMC. Normally the Divisional Financial Controller, in addition to being a member, shall act as the Secretary to the DMC and will be responsible for circulation and custody of agenda notes and minutes. The DMC shall generally meet at least once a month to review Divisional performance and related issues. Quorum for meetings shall be 50% of the members subject to a minimum of three members. Decisions will be taken by simple majority. Minutes of meetings shall be tabled before the CMC for its information. Agenda items shall be backed by comprehensive notes from the relevant member / invitee. Agenda papers, as far as practicable, shall be circulated at least three days prior to the meeting.

Divisional CEO: The Divisional CEO shall function as the Chief Operating Officer with executive responsibility for day-to-day operation of the Divisional business, and shall provide leadership to the Divisional Management Committee in its task of executive management of the Divisional business.

Board Committees

Audit Committee

Mr. S. B. Mathur Chairman

Mr. A. Baijal Member

Mr. P. B. Ramanujam Member

Mr. K. Vaidyanath Member

Mr. A. Duggal Member

Mr. K.N. Grant Invitee

Mr. R. Tandon Invitee

Mr. R. Parasuram (Head of Internal Audit) Invitee

Representative of Statutory Auditors  Invitee

Mr. B. B. Chatterjee   Secretary to the Committee

 

CSR & Sustainability Committee

Mr. Y. C. Deveshwar Chairman

Mr. A. V. Girija Kumar Member

Mr. R. E. Lerwill Member

Mr. S. B. Mainak Member

Ms. M. Shankar Member

Mr. B. B. Chatterjee Secretary to the Committee

 

Nomination & Compensation Committee

Mr. S. H. Khan  Chairman

Mr. S. Banerjee Member

Mr. Y. C. Deveshwar Member

Mr. S. S. H. Rehman Member

Ms. M. Shankar Member

Mr. K. Vaidyanath Member

 

Securityholders Relationship Committee

Mr. A. V. Girija Kumar Chairman

Mr. K. N. Grant Member

Mr. P.V. Dhobale Member

Mr. K. Vaidyanath Member

Mr. B. B. Chatterjee Secretary to the Committee

 

Independent Directors Committee

Mr. A. Baijal Member

Mr. S. Banerjee Member

Mr. A. Duggal Member

Mr. S. H. Khan Member

Mr. S. B. Mathur Member

Mr. P. B. Ramanujam Member

Mr. S. S. H. Rehman Member

Ms. M. Shankar Member

2. EMAMI LTD.

Preamble

At Emami Limited, it is commitment and continuous endeavor of the Board of Directors and all the employees to attain good corporate governance, ensuring truth and transparency, accountability in all its dealing with employees, stakeholders, consumers and community at large.

The Management believes that this organization has been entrusted by various stakeholders and they are the "trustees" of these stakeholders. It is, therefore, necessary to ensure that the organization should be managed in a manner that protects and secures the interests of its stakeholders. We (the Board of the Directors and all senior level employees) recognize society as an important stakeholder in this enterprise in addition to the promoters and other shareholders; therefore, it is part of our responsibility to practice good corporate citizenship.

It is also our belief that in order to serve the interests of our stakeholders in perpetuity, we must build this organization into an institution whose dynamism and vitality are anchored in its core values.

Applicability

This code is applicable to the Board Members, members of the Management Committees and all employees upto the level of functional heads (HODs) (hereinafter collectively referred to as "Employee(s)").

All concerned must read, understand and ensure to abide by it in their day to day activities. They may contact Head- HR or Mr. A K Joshi, Company Secretary in case any query relating to compliance of this Code.

Purpose and Scope

This Code is intended to provide guidance and help in recognizing and dealing with ethical issues and to help foster a culture of honesty and accountability. Every employee is expected to comply with this Code in letter and spirit. One must not only comply with applicable laws, rules and regulations but should also promote honest and ethical conduct of the business. They must abide by the policies and procedures that govern the conduct of the Companys business. Their responsibilities include helping to create and maintain a culture of high ethical standards and commitment to compliance, and to maintain a work environment that encourages the stakeholders to raise concerns to the attention of the management.

We as employees undertake that:

Honest and Ethical Conduct:

Honesty is the basic input of Trusteeship. We shall act in accordance with the highest standards of personal and professional integrity and honesty. Such acts are not only on the Companys premises and offsite but also at company sponsored business, social events as well as other places. Our act and conduct shall be free from fraud and deception. we shall conform to the best-accepted professional standards of conduct.

Inter-personal Relationships:

In our relationship with colleagues - we recognize their respect and dignity and in the same way, we ourselves would expect the same from them.

Honour Confidentiality:

We shall maintain the confidentiality of all material non- public information about Emami’s business until and unless discharged from such obligations under requirement of any law or any provisions of this Code .

Fair Dealing:

Our dealing shall be fair with customers, suppliers, competitors, and employees of group companies and not take unfair advantage through manipulation, concealment, abuse of confidential, proprietary or trade secret information, misrepresentation of material facts, or any other unfair dealing-practices.

Conflict of Interest:

It is expected on part of the employees to make business decisions taking into account best interest of the Company as a whole, without being influenced by personal relationships or benefits. They are expected to apply their proper mind in arriving at sound decision without any conflict of interest, which may adversely affect the company’s business.

Conflict of interest may occur directly with employees, directors or through their relative or family connection. It may arise when an employee or director or a member of his/her family gets any undue personal benefits or interests due to his/her position with the Company. Under such situation, he/she is expected to disclose to the Departmental Head/ the Board about the same. The following examples are given as guidelines for determining situations where such conflict of interest may arise, but such examples are not intended to cover all possible events.

Corporate Business Opportunities: It is duty of the Employees and Directors towards the Company to enhance its legitimate business interest whenever and wherever such opportunities so arise. They are prohibited from taking benefit of such opportunities for

themselves or through third party. More so, employees and directors are not to use corporate property, information or position for personal gain or in competition with the company.

Sometimes, it is difficult to draw a line between the benefit to an employee or a director and the benefit to the company and under such situation it is prudent on part of the said employee or director to get approval in this respect from higher management beforehand.

Improper Influences – Gifts and Entertainment: No employee or director must offer, make, solicit or receive any bribe, kickback, illegal contribution or other improper payment. Such activity is not condonable. Further, no employee or director should accept any gift or gratuity of material value or excessive entertainment from any organization or individual that is having business relationship with the company. In order to avoid such situation, the employees and directors must use common sense and good judgement in case of such circumstances.

Transactions with Affiliates: As regards selection of vendors, they should be selected on competitive and merit basis, without being influenced with favouritism. Under this policy, the employees do not engage in any activities that might affect independence of judgement in such selection and any deviation of such policy requires to be brought to knowledge of the Management.

Confidential Information/Publicity: Employees are not allowed to disclose or use any confidential information obtained or gained in course of his/her employment for his/her personal gain or profit or to any other person or party. Further they are not allowed to provide any information either formally or informally to the press or to any publicity media without authorization.

Legal Compliance

Employees are responsible for the implementation of this Code ensuring compliance under this Code as well as under all applicable laws, regulations and corporate policies since such non-compliance is unethical and subject the company with unwanted fine or penalties. Therefore, to deter such occurrence, negligence or willful default would call for disciplinary action upto and including reprimand, suspension or termination depending upon the seriousness of the offence and/or the employee’s overall record.

To ensure necessary compliance with various statutes and laws applicable to the company, the Board has assigned such responsibility on Departmental Heads that they will provide such compliance reports to President -CFO for placing the same in consolidated form to the Board.

Securities Transactions and Confidential Information:

All employees and their immediate family members shall not derive any benefit or assist others to derive any benefit from the access to and possession of information about the Company or the Group which is not in the public domain.

No employee shall use or proliferate information which is not available to the investing public as it would constitute insider information for making or giving advice on investment decisions on the securities of the Company.

Such insider information might include the following:

acquisition and diversification of businesses

financial information such as profits, earnings and dividends

announcement of new product introductions or developments

asset revaluation

investment decisions /plans

restructuring plans

major supply and delivery agreements

raising finances

Reporting Concerns:

All employees shall report promptly to the management any actual or possible violation of the Code or any event which could affect the business or reputation of the Company.

Proper use of Company’s assets and cost consciousness:

We are trustees of the company’s properties, funds and other assets and as such it is our responsibility for protecting the same against any misappropriation, loss, damage, theft etc, by evolving proper internal control system and procedures. No employee shall use the company’s facilities for personal use. Even for use of company’s purpose, employees are expected to take utmost care for avoidance of wastage so that cost to the company becomes reasonable.

Environment Protection, Social Responsibility & Risk Management:

Environment Protection:

The Company places highest corporate priority in ensuring and adhering to best procedures relating to environment protection.

Social Responsibility:

Community Development:

The Company continues to contribute to the communities in which we operate and address social issues responsibly. Our products are safe to make and use. We conserve natural resources and continue to invest in a better environment.

We are committed to be driven by our conscience and regulatory standards, to deliver value to our shareholders, commensurate with our management and financial strength.

Safety, Health and friendly work place for the Employee:

The Management recognizes human resources as the prime machinery of an organization; therefore they always give first priority to provide all safety measure for good health of the employees. The Company expects that all employees of the Emami possess good habit and leave bad habit, if any, because fair and fresh environment helps employees to realize their full potential

Emami Family Culture:

The Management has fostered a culture of feeling of being togetherness and attachment amongst Emami employees through participative management practices, open interaction and mutual respect. All employees are expected extend this “Emami Family” culture further.

Risk Management:

The Company believes in evolving a comprehensive risk management framework by a process of developing strategy to not only manage but also minimize the risk. This is process of identifying, assessing and measuring the possible risk, which may be faced by the company, and then formulating plans to cover and manage the same.

We are aiming at an ideal risk management system where we have visions to make this company a zero accident company with focus on safety and environment. We like to market consumer friendly products of global best quality and ensure safety and security of all stakeholders of the Company.

Violation of this Code:

In case it is found that any of the employees does not follow this Code by engaging misconduct, the matter would be reviewed by the Board whose decision shall be final and the Company reserves the right to take appropriate action against the guilty employee.

Continual updation of Code:

This Code is subject to continuous review and updation in line with any change in law, the Companys policy, vision & plans or otherwise the Board may deem as necessary.

References

1. http://www.karmayog.org/

2. http://en.wikipedia.org/wiki/Main_Page

3. http://csrworld.net/default.asp

4. http://www.indiacsr.in/en/

5. http://www.hul.co.in/Images/HUL-CSR-Policy-Approved-on-22Sep2014_tcm114- 398622.pdf

6. http://www.hul.co.in/investorrelations/UnderstandingHUL/ CorporateResponsibility/

7. http://www.itcportal.com/about-itc/policies/corporate-social-responsibility- policy.aspx

8. http://www.amul.com/m/tree-plantation

9. http://www.dabur.com/About%20Dabur-Corporate%20Citizenship