Answer 1)

Executive Summary: Hindustan Unilever Limited's Commitment to Sustainable and Safe

Goods and Services

INTRODUCTION:

Hindustan Unilever Limited (HUL) is a top consumer goods company in India, ranked among the
top 100 companies on both the BSE and NSE stock exchanges. Known for its wide range of
brands and products, HUL is a trailblazer when it comes to integrating sustainability into its
business practices. In this executive summary, we will focus on how HUL fulfills Principle 2 of
the National Guidelines on Responsible Business Conduct (NGRBC), which requires
businesses to provide goods and services in a sustainable and safe manner. Our analysis
draws from the Business Responsibility & Sustainability Report (BRSR) for the financial year
2022-23.

CONCEPT AND COMMITMENT:

Principle 2 of the NGRBC highlights the importance of sustainability and safety in the production
and delivery of goods and services. It emphasizes the need for businesses to minimize their
environmental impact, ensure product safety, and promote the well-being of consumers and the
community. HUL has fully embraced this principle, making it a fundamental part of their
business strategy. They align their operations with global sustainability standards and national
guidelines.

Sustainable Product Development

HUL approaches sustainable product creation from all angles. They include sustainability into all
phases of the product lifecycle, including procurement, production, and packaging. These are a
few major projects:

1. Sustainable Sourcing: HUL makes sure that its raw materials are produced in a
sustainable way by sourcing them responsibly. By 2025, they hope to have sourced all
of their agricultural raw resources sustainably. The Sustainable Tea Partnership and the
Unilever Sustainable Living Plan (USLP) are two noteworthy initiatives.
2. Eco-friendly Manufacturing: HUL makes every effort to reduce its environmental
impact during the production process. They have invested much in renewable energy
sources and energy-efficient technologies. HUL has lowered its water and greenhouse
gas emissions as of 2022–2023, in line with their sustainability objectives.
3. Innovative Packaging: HUL is committed to reducing plastic waste and promoting a
circular economy. They have introduced packaging solutions that are recyclable,
reusable, and compostable. By 2025, HUL aims to cut their use of virgin plastic in half
and ensure all their plastic packaging is reusable, recyclable, or compostable.
Safety and Quality Assurance

HUL gives the quality and safety of their products a high priority. They follow worldwide safety
standards and strict quality control procedures. Here are a few crucial elements:

1. Product Safety: To guarantee the security of its products, HUL has put strong
procedures in place. They follow safety laws and carry out thorough testing throughout
the whole product lifecycle. Additionally, the business constantly reviews and enhances
its safety procedures.
2. Consumer Health: HUL is committed to improving customer health with its products. In
an effort to promote healthy diets, they have altered a number of their products to have
less salt, sugar, and trans fat. Programs like "Win with Wellness" show how dedicated
HUL is to advancing wellbeing.
3. Transparency and Communication: HUL maintains transparency in their operations
and product information. They provide clear labeling on their products, enabling
consumers to make informed choices. HUL also engages with stakeholders to address
safety concerns and gather feedback for continuous improvement.

Community and Stakeholder Engagement

Hindustan Unilever Limited (HUL) understands the importance of connecting with the
community and stakeholders to promote sustainable development. They've got a cool approach
that includes:

1. Community Programs: HUL has launched several community programs aimed at

improving health, hygiene, and livelihoods. They've got initiatives like the Swachh Aadat,
Swachh Bharat (SASB) program and the Project Shakti, which empower rural women
and promote hygiene practices throughout India.
2. Stakeholder Collaboration: HUL knows the power of teamwork! They collaborate with
various stakeholders, including suppliers, NGOs, and government bodies, to push
forward their sustainability agenda. These partnerships are super important for
spreading sustainable practices and making a bigger impact.
3. Reporting and Accountability: HUL is all about being transparent and accountable in
their sustainability efforts. They publish detailed reports on their progress and
challenges, giving stakeholders a full picture of their sustainability performance. The
BRSR 2022-23 is a perfect example of HUL's commitment to responsible business
conduct.

Achievements and Recognition

HUL has been getting major props for their sustainability and safety efforts. They've racked up
several awards for their sustainability initiatives, including:
 1. Environmental Performance: HUL consistently gets featured in the Dow Jones
Sustainability Index, which shows they're leaders in environmental performance.
2. Social Impact: Their social impact programs are getting a lot of love for making a real
difference in health and livelihoods within communities all across India.
3. Innovation in Sustainability: HUL is rocking the boat when it comes to sustainable
product development and packaging. They've set some industry standards and have a
bunch of awards and recognitions to show for it.

CONCLUSION:

Hindustan Unilever Limited is a great example of how a business can effectively incorporate
sustainability and safety into its core operations. They've shown a strong commitment to
Principle 2 of the NGRBC by providing goods and services that are not only safe for consumers
but also environmentally sustainable. HUL takes a comprehensive approach, including
sustainable sourcing, eco-friendly manufacturing, strict safety standards, and community
involvement, which sets a high bar for responsible business practices. As HUL continues to lead
the way in sustainability, it serves as a role model for other companies looking to balance
profitability with social and environmental responsibility.

Recommendations

To further strengthen their dedication to sustainability and safety, HUL could consider the
following recommendations:

1. Boost Circular Economy Initiatives: Put more effort into promoting circular economy
principles, especially when it comes to packaging and waste management.

2. Expand Health-focused Product Range: Keep innovating and expanding their lineup of
health-focused products, addressing the latest consumer health trends and needs.

3. Foster Stronger Engagement with Stakeholders: Deepen connections with stakeholders,

particularly consumers and community groups, to gain a better understanding of their needs and
incorporate their feedback into sustainability strategies.

4. Harness the Power of Technology: Utilize advanced technologies like AI and IoT to
optimize supply chain efficiency and further reduce their environmental impact.

By continuously evolving and adapting their strategies, HUL can maintain its leadership position
in sustainability and safety, contributing to a healthier and more sustainable future for everyone.
Answer 2)

Corporate Governance at Hindustan Unilever Limited (HUL): An Analytical

Overview
INTRODUCTION:

Hindustan Unilever Limited (HUL) has a solid framework of corporate governance in place,
supporting its operations and strategic direction. As a subsidiary of Unilever, HUL upholds high
standards of corporate governance, ensuring transparency, accountability, and ethical business
practices. In this analysis, we will dive into HUL's corporate governance philosophy, the profiles
of its board members, and their roles and contributions to the company's governance.

Corporate Governance Philosophy

HUL's approach to corporate governance revolves around maintaining the utmost integrity,
transparency, and accountability. The company firmly believes that good governance is
essential for sustaining long-term stakeholder value. This philosophy is ingrained in their
comprehensive governance structure, which includes the Board of Directors, various board
committees, and strict adherence to regulatory and ethical standards.

Board of Directors: Composition and Profiles

HUL's Board of Directors is a well-balanced mix of executive and non-executive members,

including independent directors. This composition ensures a diverse range of skills and
perspectives that contribute to effective governance.

1. Nitin Paranjpe – Chairman

 Role: Non-Executive Chairman
 Skills and Competencies: Nitin Paranjpe has extensive experience in
leadership and strategic management, having previously served as the CEO of
HUL.
 Committees: Nitin Paranjpe is a member of the Nomination and Remuneration
Committee.
 Other Board Positions: Chief Operating Officer of Unilever.

2. Rohit Jawa – CEO & Managing Director

 Role: Executive Director
 Skills and Competencies: Rohit Jawa brings broad experience in marketing
and business development, having served in various leadership roles within
Unilever.
 Committees: Rohit Jawa is a member of the Corporate Social Responsibility
(CSR) Committee.
 Other Board Positions: Does not hold any positions outside HUL.
3. Sanjiv Mehta – Director
 Role: Non-Executive Director
 Skills and Competencies: Sanjiv Mehta brings strategic leadership and
expertise in business transformation.
 Committees: Sanjiv Mehta is the Chairperson of the Risk Management
Committee.
 Other Board Positions: President of Unilever South Asia.

4. Kalpana Morparia – Independent Director

 Role: Non-Executive Independent Director
 Skills and Competencies: Kalpana has a strong legal background and
extensive experience in banking and financial services.
 Committees: She serves as the Chairperson of the Audit Committee and is a
member of the Nomination and Remuneration Committee.
 Other Board Positions: In addition to her role here, she also serves as an
Independent Director at Dr. Reddy's Laboratories and Philip Morris International.

5. Leo Puri – Independent Director

 Role: Non-Executive Independent Director
 Skills and Competencies: Leo brings expertise in financial services and
investment management to the table.
 Committees: He is a member of the Audit Committee and the Risk Management
Committee.
 Other Board Positions: Leo also holds the position of Chairman of JP Morgan
India.

6. Ashu Suyash – Independent Director

 Role: Non-Executive Independent Director
 Skills and Competencies: Ashu has a wealth of experience in asset
management and financial services.
 Committees: She serves as a member of the Audit Committee and the CSR
Committee.
 Other Board Positions: Ashu is also an Independent Director at Hindustan Zinc
and L&T Infotech.
 7. Aditya Narayan – Independent Director
 Role: Non-Executive Independent Director
 Skills and Competencies: Aditya brings extensive experience in the FMCG
sector to the board.
 Committees: He is a member of the Risk Management Committee.
 Other Board Positions: Aditya's board positions are solely within HUL, with no
additional outside roles.

Board Committees

HUL has a bunch of important committees in place to make sure they're keeping a close eye on
things and giving strategic guidance. Let's break them down:

 Audit Committee: These folks are in charge of looking after the financial reporting and
disclosure stuff. Kalpana Morparia is the chair, and she's got Leo Puri and Ashu Suyash
on her team.
 Nomination and Remuneration Committee: These guys handle all the appointments
to the board and figure out how much the bigwigs should get paid. Kalpana Morparia is
the boss here too, and she's got Nitin Paranjpe helping her out.
 Corporate Social Responsibility (CSR) Committee: This crew is responsible for
keeping an eye on HUL's CSR initiatives. Rohit Jawa leads the pack, and Ashu Suyash
is part of the team too.
 Risk Management Committee: These guys are all about identifying and dealing with
any business risks that come up. Sanjiv Mehta is the chair, and Leo Puri and Aditya
Narayan are on his side.

Insights and Contributions

It is significant that HUL's board members bring a wide variety of expertise and experience to
the table. It is what keeps the business's governance and strategic decisions on course. Their
competence spans a wide range, from financial acumen and strategic leadership to legal
expertise and industry-specific understanding. HUL can rest easy knowing that the proper
people are in charge and making wise decisions with this ideal team.

In order to preserve justice and balance, the board must include both executives and
independent people. These independent directors are essential because they offer new insights.
In order to manage risks and provide openness in financial and operational matters, this is
important.
CONCLUSION:

HUL takes corporate governance seriously, and their framework reflects that. They prioritize
ethical business practices and the well-being of their stakeholders. The board members, with
their diverse backgrounds and expertise, approach their responsibilities with utmost
seriousness, holding HUL to the highest standards of governance. This not only strengthens
HUL's position in the market but also enhances its reputation as a socially responsible and
ethical organization.

https://www.hul.co.in/investor-relations/annual-reports/
Answer 3)

INTRODUCTION:

In the competitive sales world, managers often find themselves in complex situations where
they have to balance ethical considerations with business objectives. So, here's the deal: our
scenario involves a purchase manager from a big company who's offering a sweet order worth
Rs. 50 lakh to an IT hardware company. But here's the catch: he's making the offer contingent
upon a Rs. 50,000 donation to a charity managed by his wife. Now, this situation brings up a
classic ethical dilemma where the immediate benefit for the business clashes with principles of
ethical conduct and integrity.

Part A: Ethical Dilemmas

Conflict of Interest

The main ethical dilemma in this scenario is a conflict of interest. You see, the purchase
manager's request for a donation to his wife's charity creates a personal benefit that's all mixed
up with his professional duties. This raises concerns about how transparent and fair the
procurement process is. It suggests that the decision to place the order might be more
influenced by personal gain rather than a fair assessment of business needs and the supplier's
capabilities.

Bribery and Corruption

Another big issue here is the potential perception of bribery. The condition attached to the order
could be seen as a form of bribery, where they're expecting a financial benefit (in the form of the
donation) in exchange for the business. This kind of thing undermines the principles of fair
competition and ethical business practices. And let's be real, if these practices become public, it
could seriously damage the reputations of both the purchase manager's company and the IT
hardware company.

Ethical Standards and Company Policies

Many companies have strict policies and codes of conduct that straight-up prohibit these kinds
of transactions. Following these ethical standards is crucial for maintaining corporate integrity
and trust. Going against these standards, even if it means snagging a big business opportunity,
can have some serious long-term consequences. We're talking legal trouble and losing the trust
of stakeholders.

Part B: STEP WISE PROCESS FOR HANDLING THE SITUATION

Step 1: Assess the situation

First things first, let's really dig into the situation and understand it inside and out. This means:
 Identifying all the people involved (the purchase manager, the IT hardware company, the
charity, and maybe even the wider business community).
 Getting all the details about the request, like what exactly this charity is, the relationship
between the purchase manager and the charity, and the official policies of both
companies when it comes to donations like this.

Step 2: Review Company Policies and Legal Implications

Next up, let's take a look at the company's policies and what the law has to say. Here's what
you need to do:
 Check out the company's code of conduct and any policies about donations, conflicts of
interest, and bribery. And don't forget about the legal stuff too!
 Take a chat with the legal team to understand any potential legal risks and
consequences.

Step 3: Ethical Reflection and internal Discussion

This step is all about thinking deeply about the implications of saying yes to the purchase
manager's request. Here's what you gotta do:
 Take a good look at your personal and corporate values and see how they line up with
what's being proposed.
 Have a chat with senior management and, if you have one, the ethics committee. It's
important to get different perspectives and make sure that whatever decision is made,
it's in line with the company's ethical standards.

Step 4: Exploring Alternatives

Now let's consider some alternatives that can help us find a win-win situation without
compromising our ethical standards. Here are a few possibilities:
 How about proposing a transparent process for donations that isn't tied to specific
business deals? This way, we can ensure everything is above board.
 Another option is to make a donation to the charity as part of a broader corporate social
responsibility (CSR) initiative, completely independent of any specific orders or
transactions.
 We could also explore different ways to support the charity that don't create any conflicts
of interest or give off the wrong impression.

Step 5: Communicating with the Purchase Manager

Once we've had our internal discussions and considered the ethical implications, it's time to
reach out to the purchase manager. Here's what this step entails:
 We need to clearly explain our company's stance on ethical business practices and
stress the importance of maintaining integrity.
 We should propose our chosen alternative, if we have one, and discuss how we can still
support the charity within the boundaries of our ethical guidelines.

Step 6: Documenting the Process

It's crucial to keep thorough records of every step we take. This includes:
 Making sure we have a record of all our communications with the purchase manager.
 Documenting our internal decision-making process and the reasons behind our final
decision.
 Recording any alternative solutions that were proposed and noting the purchase
manager's response.

Step 7: Implementing the Decision and Monitoring

Once we've made a decision, it's time to put it into action with complete transparency and
continue monitoring the situation. Here's what we need to do:
 We must follow through on any commitments we've made, such as a CSR initiative.
 It's important to keep an eye on our relationship with the purchase manager's company
to ensure that it remains based on ethical principles and fair business practices.
 We should also review and reinforce our internal policies and provide training to prevent
similar ethical dilemmas in the future.

CONCLUSION:
Handling ethical dilemmas in business requires us to strike a delicate balance between
achieving our goals and maintaining our ethical integrity. The situation at hand involves various
ethical concerns, including conflicts of interest, potential bribery, and compliance with corporate
and legal standards. By following a structured and step-by-step approach, the sales manager
can effectively navigate this dilemma, ensuring that our company upholds its ethical standards
while finding ways to support worthy causes in a transparent and ethical manner.

Ultimately, sticking to our commitment to ethical practices not only safeguards our company's
reputation but also builds long-term trust with our clients and stakeholders. This approach
fosters a sustainable business environment where success is achieved without compromising
on integrity.