A PROJECT REPORT ON CORPORATE SOCIAL RESPONSIBILITY ON AMUL SUBMITTED TO PDF

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A PROJECT REPORT ON CORPORATE SOCIAL RESPONSIBILITY ON AMUL SUBMITTED TO PROF. SHRUTI NAIK YEAR 2012-2013 PREPARDED AND SUBMITTED BY SAMEER SHAIKH SY BMS ROLL NO: PROJECT GUIDE Prof. Shruti Naik VIDYA VIKAS UNIVERSAL COLLEGE OF ART, COMMERCE, SCIENCE, BMM & BMS MALAD (WEST) MUMBAI 400064 CERTIFI...

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A PROJECT REPORT ON CORPORATE SOCIAL RESPONSIBILITY ON AMUL

SUBMITTED TO PROF. SHRUTI NAIK YEAR 2012-2013

PREPARDED AND SUBMITTED BY SAMEER SHAIKH SY BMS ROLL NO:

PROJECT GUIDE Prof. Shruti Naik

VIDYA VIKAS UNIVERSAL COLLEGE OF ART, COMMERCE, SCIENCE, BMM & BMS MALAD (WEST) MUMBAI 400064

CERTIFICATE

We hereby certify that Mr. Sameer Shaikh of VidyaVikas Universal College studying in Second Year BMS (Semester IV) has completed project on CORPORATE SOCIAL RESPONSIBILITY OF AMUL in the academic year 2012-2013.

The information submitted in the project is true and original to the best of our knowledge.

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PROJECT GUIDE

CO-ORDINATOR

_____________ PRINCIPAL

ACKNOWLEGEMENT

I would like to take this opportunity to thank all those who have stood by my side, encouraged me and helped me throughout my study. I owe a lot to everyone who co-operated in making my thesis on CORPORATE SOCIAL RESPONSIBILITY OF AMUL. I, would like to express my gratitude towards my Prof. Shruti Naik, for giving me an opportunity prepare a project on Corporate Social Responsibility of Amul. I take immense pleasure in thanking my thesis guide Prof. Shruti Naik. Last but not the least I would like to thank my family and friends for their continuous support and help.

DECLARATION

I, SHAIKH SAMEER USMAN the student of second year B.M.S. (Semester IV) (2012-2013) hereby declare that I have completed the project on Corporate Social Responsibility of Amul. The information submitted is true and original to the best of my knowledge.

Signature of Student: _______________ Name of the Student: Sameer Shaikh. Roll no. 14

WHAT IS CSR ? The voluntary compliance of social and ecological responsibility of companies is called Corporate Social Responsibility (CSR). Corporate social responsibility is basically a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. Corporate social responsibility is represented by the contributions undertaken by companies to society through its business activities and its social investment. This is also to connect the Concept of sustainable development to the company‘s level. Over the last years an increasing number of companies worldwide started promoting their Corporate Social Responsibility strategies because the customers, the public and the investors expect them to act sustainable as well as responsible. In most cases CSR is a result of a variety of social, environmental and economic pressures. The Term Corporate Social Responsibility is imprecise and its application differs. CSR can not only refer to the compliance of human right standards, labor and social security arrangements, but also to the fight against climate change, sustainable management of natural resources and consumer protection. The concept of Corporate Social Responsibility was first mentioned 1953 in the publication ‗Social Responsibilities of the Businessman‘ by William J. Bowen. However, the term CSR became only popular in the 1990s, when the German Betapharm, a generic pharmaceutical company decided to implement CSR. The generic market is characterized by an interchangeability of products. In 1997 a halt in sales growth led the company to the realization that in the generic drugs market companies could not differentiate on price or quality. This was the prelude for the company to adopt CSR as an expression of the company‘s values and as a part of its corporate strategies. By using strategic and social commitment for families with chronically ill children children, Betapharm took a strategic advantage. In July 2001, the European Commission decided to launch a consultative paper on Corporate Social Responsibility with the title „Promoting a European Framework for Corporate Social Responsibility―. This paper aimed to launch a debate on how the European Union could promote Corporate Social Responsibility at both the European and international level. The paper further aimed to promote CSR practices, to ensure the credibility of CSR claims as well as to provide coherence in public policy on CSR.

IMPORTANCE OF CSR?

Corporate social responsibility (CSR) plays a major role in developing the economy of a country. It can be defined as the way in which a company manages various business entities to produce an impact on the society. Companies with high CSR standards are able to demonstrate their responsibilities to the stock holders, employees, customers, and the general public. Business organizations that have high corporate social responsibility standards can attract staff thereby reducing employee turnover and cost of recruitment. What is the importance of corporate social responsibility? Anyone can give a clear answer to this question. Companies voluntarily contribute a large sum of money to make a better society and a clean environment. Corporate social responsibility is a process in which all companies come together as one and take part in the welfare of the society. Many organizations conduct campaigns to create awareness among corporate, civic bodies, and government bodies about the importance of corporate social responsibility. Many national and multinational firms are booming in various developing countries. But at the same time, these countries suffer social challenges such as poverty, corruption, population growth, etc. Therefore, it is important for all companies to strive together and adapt corporate social responsibility standards to make the society better than before. An organization can exhibit a better image in the society if it cares for its employees and involve them in social activities. The responsibilities of an organization may range from providing small donations to executing bigger projects for the welfare of the society. Many business houses around the world show their commitment to corporate social responsibility. What is the importance of corporate social responsibility? The answer lies in two things: 1) organizations understanding their role in developing a society and 2) awareness among business houses, corporate bodies, and the people. Versatile, profitable, and dynamic businesses are the driving forces that build the economy of the country. We must remember that the growth of a country purely depends on the growth of the society and the people in the society.

BENEFITS OF CSR Organizations of all sizes are rapidly discovering that Corporate Social Responsibility (CSR) and sustainable business practices can foster improved green programs and overall environmental stewardship. Today, we are seeing increased awareness and active participation by business professionals in the development of CSR policies. Organizations are increasingly more involved in green initiatives by adopting sustainable processes and practices, adapting products and services to the low-carbon economy and innovating in all areas their business. The net positive on reducing waste, designing green buildings, implementing green operations and maintenance plans — all have continually proven to yield a positive return on investment (ROI). CSR has come to rely on a more complex set of factors than corporate governance alone, and likewise also depends on sustainable development, environmental impact and supply chain management. The development of the new carbon trading markets, verified emission reductions (VERs), also known as carbon offsets, and renewable energy credits (REC‘s), it has become easier for organizations to create and measure direct ROI from CSR. Likewise, CSR efforts have shown to yield measurable returns in waste reduction, improved efficiency, diminished liabilities, improved community relations, and brand recognition. Through communicating clear and measurable sustainability objectives and the implementation of practical and equally functional corporate governance mechanisms, organizations are realizing that they can have a achieve ROI through their sustainability efforts. Integral strategies in ensuring substantive long-term results include:    

Define path of progress in CSR and strategically manage expected organizational outcomes Ensure basic CSR values are culturally integrated across the organization Adopt an effective engagement strategy with stakeholders to create buyer awareness and loyalty Properly map organizational objectives and critical success indicators with CSR performance metrics

Innovative organizations that understand the value of CSR work to create a corporate culture in which each employee is committed to doing his or her part to improve the environment. According to Forrester Research , effective CSR and sustainability practices within large companies have been shown to contribute to a profit increase up to 35 percent.

What’s Your ROI? There are proven methodologies that demonstrate ROI benefits to CSR. A partial summary of such strategies has been outlined below and reflect best practices in the implementation of successful CSR programs designed to drive improved operational performance and net positive ROI. Business Benefit: Improving Operational Efficiency Perhaps the strongest — and best documented — argument for engaging employees in environmental practices is the connection between CSR involvement and increased operational efficiency. Front-line employees are often in the best position to identify inefficiencies and propose improvements. Educating employees on CSR can improve profitability by supporting greater efficiency through less waste, water and energy usage. Business Benefit: Innovation Employee E&S education is also a source of innovation and savings resulting from the development of new product and service lines as well as new technologies, materials or processes that reduce water, energy usage or harmful materials. Business Benefit: Supply Chain Management Educating employees on sustainability practices throughout the supply chain can lead to greater efficiencies and help build collaboration to meet sustainability, quality and other goals. It can also strengthen relationships between a company and its suppliers by aligning values and objectives. Business Benefit: Financial Responsibility We are seeing an unprecedented level of government programs and initiatives designed to drive corporate decision-making within markets that include manufacturing, construction, etc., to invest in implementing practical and measurable green building design, construction, operations, and maintenance solutions. In many cases, the good news is that implementation of sustainable operations can drive increased efficiency through reductions in energy consumption, implementation of building maintenance methodologies that are often cost neutral, and decreasing the

cost of workspaces through use of recycled furniture while changing too low–use lighting (which provides eco-friendly work environments), to name a few. Government subsidies and incentives often further complement and reward efforts to develop and implement successful sustainable operations and maintenance programs. Nearly all of the points needed for LEED Certification (40 points) can be achieved through the energy and atmosphere category (35 points). It is by far the largest category within the rating system, and emphasizes the combination of energy performance and renewable energy, which has shown can lower costs by up to 50percent in the first year alone. It is widely accepted that green building occupants are healthier and much more productive in their work. With an average of 90 percent of Americans spending more of their time indoors, green buildings often have better indoor air quality and lighting, among other key advantages Measuring the impact of CSR in achieving social and environmental goals can be difficult, but is becoming more common if not expected within corporations, often as a factor of CSR. Typically in business, what gets measured gets managed, and as long as the right metrics system is created and data is tracked accurately, almost any environmental CSR initiative can yield positive results. There seems to be a direct correlation between the implementation of effective green programs and design of green buildings to improved office worker productivity and employee morale, while driving efficiencies and reduced consumption. Innovative, forward-thinking companies have learned that they must be fully committed to strategic initiatives that are directly tied to their business‘ core competencies (or those of clients, employees, etc.). The advantages of doing so through an effective CSR program, such as building brand recognition, realizing increased sales and fostering trust with employees and community, can be achieved as a win-win in almost all situations. With committed leadership and a strategic approach most companies can find a substantial ROI benefit in CSR.

ABOUT AMUL

Amul (Anand Milk Union Limited) Type

Cooperative

Industry

Dairy

Founded

1946

Headquarters Anand, Gujarat,

Key people

Revenue

India

Chairman, Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) US$2.15 billion (2010–11)

Employees

735 employees of Marketing Arm. However, real pool consist of 3.03 million milk producer members

Website

www.amul.com

Introduction Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat, India. The word Amul ( ) is derived from the Sanskrit word Amulya( ), meaning invaluable. The co-operative is also sometimes referred to by the unofficial backronym: Anand Milk Union Limited. 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 3.03 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 also ventured into markets overseas. Dr Verghese Kurien, founder-chairman of the GCMMF for more than 30 years (19732006), is credited with the success of Amul.

Achievements of the "Amul Movement" 1. The dairy cooperatives have been able to maintain democratic structure at least at the grass-root level with the management committee of the village level unit elected from among the members in majority of the villages. 2. The dairy cooperatives have also been instrumental in bridging the social divide of caste, creed, race, religion & language at the villages, by offering open and voluntary membership.

Achievements of GCMMF            

3.1 million milk producer member families 15,760 village societies 15 District Unions 9.4 million liters of milk procured per day ₹150 million (US$2.73 million) disbursed in cash daily GCMMF is the largest cooperative business of small producers with an annual turnover of ₹53 billion (US$964.6 million) The Govt. of India has honoured Amul with the ―Best of all categories Rajiv Gandhi National Quality Award‖. Largest milk handling capacity in Asia Largest cold chain network 48 Sales offices, 5000 wholesale distributors, 7 lakh retail outlets Export to 37 countries worth ₹150 crore (US$27.3 million) Winner of APEDA award for eleven consecutive years.

The Amul brand GCMMF (AMUL) has the largest distribution network for any FMCG company. It has nearly 50 sales offices spread all over the country, more than 5 000 wholesale dealers and more than 700 000 retailers. Amul became the world's largest vegetarian cheese and the largest pouched-milk brand. AMUL is also the largest exporter of dairy products in the country. AMUL is available today in over 40 countries of the world. AMUL is exporting a wide variety of products which include Whole and Skimmed Milk Powder, Cottage Cheese (Paneer), UHT Milk, Clarified Butter (Ghee) and Indigenous Sweets. The major markets are USA, West Indies, and countries in Africa, the Gulf Region, and SAARC neighbours, Singapore, The Philippines, Thailand, Japan and China, and others such as Mauritius, Australia, Hong Kong and a few South African countries. Its bid to enter the Japanese market in 1994 did not succeed, but it plans to venture again. In September 2007, Amul emerged as the leading Indian brand according to a survey by Synovate to find out Asia's top 1000 Brands.

In 2011, Amul was named the Most Trusted brand in the Food and Beverages sector in The Brand Trust Report, published by Trust Research Advisory. rediff.com; "India's top 20 brands: Amul is No. 1"

Products Amul's product range includes milk powders, milk, butter, ghee, cheese, Masti Dahi, Yoghurt, Buttermilk, chocolate, ice cream, cream, shrikhand, paneer, gulab jamuns, flavoured milk, basundi, Amul Pro brand and others. Amul PRO is a recently launched brown beverage just like bournvita and horlicks offering whey protein, DHA and essential nutrients to kids along with its chocolatty taste. In January 2006, Amul launched India's first sports drink Stamina, which competes with Coca Cola's Powerade and PepsiCo's Gatorade. Amul also offers mithaimate which successfully competes with milkmaid by nestle by offering more fat % at lower price. In August 2007, Amul introduced Kool Koko, a chocolate milk brand extending its product offering in the milk products segment. Other Amul brands are Amul Kool, a low calorie thirst quenching drink; Masti Butter Milk; Kool Cafe, ready to drink coffee and India's first sports drink Stamina. Amul's Icecreams are made from milk fat and thus are icecreams in real sense of the word, while many brands in India sell frozen desserts made from vegetable fat. Amul cares for its consumers and tries to offer them the best products at best price. Amul's sugar-free Pro-Biotic Ice-cream won The International Dairy Federation Marketing Award for 2007

Corporate Social Responsibility held by Amul Corporate social responsibility (CSR) has been defined as the ―commitment of business to contribute to sustainable economic development working with employees, their families, the local community, and society at large to improve their quality of life, in ways that are both good for business and good for development.‖ To meet with the CSR it is expected that a business in its entire procurementproduction-processing-marketing chain should focus on human development involving the producer, the worker, the supplier, the consumer, the civil society, and the environment. Indeed, a very tough task. Most businesses would certainly flounder in not being able to achieve at least one or many of those expectations. But AMUL has shown the way. CSR-sensitive Organisational Structure AMUL is a three tier co-operative organisation. The first tier is the co-operative society at the village,of which; milk producers are voluntary members, managing the cooperative through a democratically elected 9-member managing committee, and doing business by purchasing milk from members and selling it to the district level cooperative. There are more than 11,000 co-operatives in villages of Gujarat. The second tier is the district co-operative that processes milk into milk products, markets locally and sells surplus to the state co-operative for national and international marketing. There are 12 district co-operatives each being managed by a 15-member board elected by the college comprising the nominated representatives or chairmen of the village co-operatives. Third tier is the state level co-operative - the Gujarat Co-operative Milk Marketing Federation (GCMMF) responsible for national and international marketing of milk and milk products produced and sold to it. The GCMMF is managed by the board democratically elected by and from amongst the chairmen of the district co-operatives. The entire three-tier structure with the GCMMF at its apex, is a unique institution because it encompasses the entire chain from production of raw material to reaching the c...