STAKEHOLDER ANALYSIS OF HINDUSTAN UNILEVER LIMITED

Hindustan Unilever Limited (HUL) :BSE-500696 is India’s largest fast moving consumer company owned by a European company unilever.

HUL has an employee strength of over 16,000 employees and contributes to indirect employment of over 52,000 people. The company was renamed in June 2007 as “Hindustan Unilever Limited”.

Hindustan Unilever's distribution covers over 1 million retail outlets across India directly and its products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in India.

The company claims that two out of three Indians use its many home and personal care products, food and beverages

EXECUTIVE SUMMARY OF HINDUSTAN UNILEVER LIMITED

HUL is the market leader in Indian consumer products. Sixteen of HUL’s brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2008).

According to Brand Equity, HUL has the largest number of brands in the Most Trusted Brands List.

The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands.

AWARDS

HUL is one of the country's largest exporters; it has been recognised as a Golden Super Star Trading House by the Government of India.

In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25 years by Businessworld, one of India’s leading business

magazines. The rating was based on a compilation of the magazine's annual survey of India’s most reputed companies over the past 25 years.

HUL was one of the eight Indian companies to be featured on the Forbes list of World’s Most Reputed companies in 2007.

HUL is the most innovative company in India by Forbes list and 6th in the top

10 list of most innovative companies in the world.

HUL was ranked 39th in The Brand Trust Report (2011) published by Trust Research Advisory. Fair and Lovely creams also was listed in the same report.

Leadership Development

HUL has produced many business leaders for corporate India; one of these, Harish Manwani, has become a member of Unilever's Executive (UEx).

HUL's leadership-building potential was recognized when it was ranked 4th in the Hewitt Global Leadership Survey 2007 with only GE, P&G and Nokia ranking ahead of HUL in the ability to produce leaders with such regularity.

Community services

HUL also renders services to the community, focusing on health & hygiene education,empowerment of women ,water management.

It is also involved in education and rehabilitation of underprivileged children, care for the destitute and HIV-positive, and rural development. HUL has also responded to national calamities, for instance with relief and rehabilitation after the 2004 tsunami caused devastation in South India.

In 2001, the company embarked on a programme called Shakti, through which it creates micro-enterprises for rural women.

Confliction issues:Mercury pollution

Skin lightening creams

Hindustan Unilever's "Fair and Lovely" is the leading skin-lightening cream for women in India. The company was forced to withdraw television advertisements for the product in 2007.

Triclosan

Several academic papers have pointed out the firm's continued use of the antibacterial agent Triclosan ('Active B') in India because is under review by the American Food and Drug Administration (FDA).

Sustainability strategy Unilever’s vision is to double the size of its business

while reducing the overall impact on environment. This new vision recognizes 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

HINDUSTAN UNILEVER LIMITED STAKEHOLDERS

Stakeholders

Investors

Business Partners

Ecosystem

Society

Employees

Consumers

CONSUMERS

Type of stakeholders- Partners

Focus areas are- Hygiene Nutrition Well Being All Product Responsibility

EXPECTATION OF HINDUSTAN UNILEVER LIMITED Making a difference through our brands. Despite advances in science and increasing prosperity,

millions of people still lack access to basic sanitation, nutrition and healthcare.

We believe that our brands can grow by addressing some of the most important social and environmental challenges facing the country today.

POWER OF INFLUENCE

Hygiene- Make effective products that imposes health and well being. Change habits through behaviour change programmes. Work with partners to develop joint campaigns and achieve a

broader reach.

Nutrition- Improving the nutritional quality of all products. Developing new products, expanding customer choice. Providing clear information. To cater to the needs of growing number of health conscious

people who will not compromise on great taste. To reduce levels of unhealthy ingredients.

Well Being for All-Aim to satisfy the needs and aspirations of consumers at all income levels with quality products.Affordable innovations- Pureit, Brookebond Sehatmand.Innovative Business model.Develop new product formulation.Develop low-cost manufacturing process.Develop wide distribution network .Develop different approach to pricing.

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Product Responsibility-•Testing safety of products.•Advertising and marketing.•Consumer feedback and redressal.Product Safety

Responsible marketing and communication

Communication with consumers

GOAL OF ‘STAKEHOLDER MANAGEMENT’

To eliminate PVC from brand packaging. 2/3rd of our foods & beverages portfolio to be ‘Healthy

choice’ certified (as per 2007 benchmarks) To cover 150 .million Indians cumulatively.

GENERIC STRATEGY

Brand will lead as agents of change.

TYPE OF STAKEHOLDER

Business Partner is a neutral type of stakeholder.

BUSINESS PARTNER

Expectations of Hindustan Unilever Limited Enhancing Livelihood through Partnership. Aim is to create long lasting impact on society. Working closely with suppliers and customers. Farmers are the major part of supply chain. Working chain creates many employment opportunities. Various inputs are supplied by third party suppliers and small

holders. Business is expecting to play a role in addressing supply chain

issue such as good working condition and income for growers.

POWER OF INFLUENCE

Shakti – Micro Business , Massive Impact. Shakti is the initiative that combines various strategies. It was started in 2000 by combining with SHGs by offering them

opportunities of business. The business objective was to extend our direct reach into untapped

market. While the social objective was to provide livelihood opportunities for rural

women. This Project helped the villagers for earning money. They are dominate in most of the Shakti markets which are quantitatively

better than non Shakti markets.

GOAL OF STAKEHOLDER MANAGEMENTThe main goal is to create economic benefits for all partners.

GENERIC STRATEGY

Engage and communicate in a responsive manner. To gain mutual trust and respect among partners and finally

among consumers

Expectation of Hindustan Unilever Limited

Reduction of the environmental pollution

Improve eco-efficiency

Power of Influence: Helps in sustainable living

Shift to sustainable agriculture

Shift to sustainable agriculture

ECOSYSTEM

Type of Stakeholder:

PARTNERS

Goal of ‘Stakeholder Management’:

Purchase of sustainable recourses

Reduce the PVC packing for their products.

 Reduction in CO2 emission

Conserve 20 billions liters of water:

GENERIC STRATEGY

Leadership in sustainable sourcing of agri-based products.

  Promote sustainable practices at HUL.

  Reduce environmental impact of the operations.

  Conserve water in Indian villages.

STAKEHOLDRE EXPECTATIONS

Reduction of the environmental pollution

Improve eco-efficiency

LIKELY BEHAVIOUR OF UNMET EXPECTATIONTS

Public or Private agitation may arise against the adverse affects of the organization (adverse affects like waste dumping, exploitation of natural resources)

Government may interfere and finally seize the company.

RESPONSE STRATEGY

The management plans strategies which are visible to the public and the government that is they –

o 1.Invest funds for research and development for proper utilization of resources and low waste production.

o 2.Profits are directed for purchase of machinery which help in recycling of the waste products

EMPLOYEES

Type of Stakeholder:- Partners

EXPECTATION OF HINDUSTAN UNILEVER LIMITED Building responsible leader.  HUL consider as our employee are our biggest assets. Every steps taken by our team boosts our growth

exponentially.

POWER OF INFLUENCE HUL Sankalp: This is our formal employee

volunteering initiatives.

Rural programme for mangers:-Business leadership trainee are required to go through a rural stint and spend time working on projects that address the concern of the rural population.

Activities:-strengthen rural stint programme for all new recruits where in they will deliver constructive social projects. Encourage employee volunteering.

GOAL OF ‘STAKEHOLDER MANAGEMENT’ All HUL and manufacturing business partner units. 100% employee including workmen. We are developing people and building structure to

help us advance towards our new vision Employment engagement: In 2009 we began an

employee engagement programme to ensure that employees are involved in unilever vision and plans for the future.

GENERIC STRATERGY Engage and communicate in a responsive manner. To gain mutual respect and trust among partners and

finally among consumers

It has an extensive distribution network covering 6.3 million retail outlets, including reach to over one million outlets.

Its structure is designed to infuse speed and flexibility in decision making and simplementation.

In 2004, HUL pioneered the mechanism of providing an alternate redressal system for shareholdersto resolve shares related disputes pending before the parties by amicable settlement.

Power To Influence INVESTORS

HUL has been named in the 2009 world’s most ethical(WME) companies list.

In 2009, HUL has been named in the Forbes ‘Top 100 most respected companies’ list for the first time in the survey’s four year history.

As on March 31, 2010, HUL has over 3.5 lakhs shareholders, of which more than 3.4 lakhs are retail investors.

Long standing commitment to share value creation. To adopt good governance practices and embedding the

principle of sustainability in all its business strategies. Over 50 % of tomatoes sourced from India from

sustainable sources. Purchases all palm oil from certified sustainable

sources. Purchase all tea for Lipton tea bags from certified

sustainable source.

Goal Of ‘Stakeholder Management’

Leadership in sustainable sourcing of products such as soaps, detergents, personal care, tea, coffee, staples, ice-creams and culinary products .

Generic Strategies

Investors are “partners” in the HUL company.

Stakeholder expectation More successful and profitable operations. Empowered managers across the company’s

nationwide operations.

Stakeholder type

Our approach, governance structure, corporate policies, internal controls and risk management should discussed in detail in the company’s annual financial report.

Likely behaviour or outcome in case of unmet expectation(s):

To engage the services of retired judges to presides over the meetings in order to give fair view to each case.

To organise more alternative dispute redressal meetings wherein aggrieved investors could get chance to settle their disputes.

Response strategies to deal with hostile behaviour or adverse outcome

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