Assignment:

Corporate Social Responsibility: CSR at Unilever

Bangladesh Limited

CSR-401 (01)

Prepared For:
Mr. Zubair Shimon

Prepared By
0630200 Tarik Aman
0630243 Mohammed Junaid

Letter of Transmittal

December 13, 2009

Mr. Zubair Shimon

Lecturer, CSR
School of Business

Independent University, Bangladesh.

Honorable Sir,

We are the students of “Corporate Social Responsibility (CSR 401)” course instructed by
you. In this course you have assigned us a term paper on the CSR of any organization
of Bangladesh. For this we have selected “Unilever Bangladesh Limited.” as our project.

This is the first time we are creating a term paper on this issue and therefore have a very
little knowledge about this. Although we have tried our best to make a good report but
there are some inadequacies in the proposals. We would like to apologize in advance if
the report contains any unintentional mistakes.

We hope that you will remark our works considering our limitations.

Yours’ most obediently

Tarik Aman 0630200

Mohammad Junaid 0630243

CONTENTS:

0.1 Letter of Transmittal 2

1.1 What Is CSR 4

2
1.2 Potential business benefits from CSR 4

2. CSR practices in Bangladesh 5

3. CSR at Unilever Bangladesh 6

3.1 Education 6

3.2 Women's Empowerment 8

3.3 Nutrition, hygiene & personal care 12

4.0 Reference 16

1.1 What Is CSR

Corporate social responsibility (CSR), also known as corporate responsibility, corporate

citizenship, responsible business, sustainable responsible business (SRB), or corporate
social performance, is a form of corporate self-regulation integrated into a business
model. Ideally, CSR policy would function as a built-in, self-regulating mechanism
whereby business would monitor and ensure its adherence to law, ethical standards, and
international norms. Business would embrace responsibility for the impact of their
activities on the environment, consumers, employees, communities, stakeholders and all

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other members of the public sphere. Furthermore, business would proactively promote
the public interest by encouraging community growth and development, and voluntarily
eliminating practices that harm the public sphere, regardless of legality. Essentially, CSR
is the deliberate inclusion of public interest into corporate decision-making, and the
honoring of a triple bottom line: People, Planet, and Profit.

The practice of CSR is subject to much debate and criticism. Proponents argue that there
is a strong business case for CSR, in that corporations benefit in multiple ways by
operating with a perspective broader and longer than their own immediate, short-term
profits. Critics argue that CSR distracts from the fundamental economic role of
businesses; others argue that it is nothing more than superficial window-dressing; others
yet argue that it is an attempt to pre-empt the role of governments as a watchdog over
powerful multinational corporations. Corporate Social Responsibility has been redefined
throughout the years. However, it essentially is titled to aid to an organization's mission
as well as a guide to what the company stands for and will uphold to its consumers.

1.2 Potential business benefits from CSR

The scale and nature of the benefits of CSR for an organization can vary depending on
the nature of the enterprise, and are difficult to quantify, though there is a large body of
literature exhorting business to adopt measures beyond financial ones. Orlitzky, Schmidt,
and Rynes found a correlation between social/environmental performance and financial
performance. However, businesses may not be looking at short-run financial returns
when developing their CSR strategy.

The definition of CSR used within an organization can vary from the strict "stakeholder
impacts" definition used by many CSR advocates and will often include charitable efforts
and volunteering. CSR may be based within the human resources, business development
or public relations departments of an organization, or may be given a separate unit
reporting to the CEO or in some cases directly to the board. Some companies may
implement CSR-type values without a clearly defined team or program.

The business case for CSR within a company will likely rest on one or more of these
arguments:

a) Human resources

A CSR program can be an aid to recruitment and retention, particularly within the
competitive graduate student market. Potential recruits often ask about a firm's CSR
policy during an interview, and having a comprehensive policy can give an advantage.
CSR can also help improve the perception of a company among its staff, particularly

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when staff can become involved through payroll giving, fundraising activities or
community volunteering.

b) Risk management

Managing risk is a central part of many corporate strategies. Reputations that take
decades to build up can be ruined in hours through incidents such as corruption scandals
or environmental accidents. These can also draw unwanted attention from regulators,
courts, governments and media. Building a genuine culture of 'doing the right thing'
within a corporation can offset these risks.

c) Brand differentiation

In crowded marketplaces, companies strive for a unique selling proposition that can
separate them from the competition in the minds of consumers. CSR can play a role in
building customer loyalty based on distinctive ethical values. Several major brands, such
as The Co-operative Group, The Body Shop and American Apparel are built on ethical
values. Business service organizations can benefit too from building a reputation for
integrity and best practice.

d) License to operate

Corporations are keen to avoid interference in their business through taxation or

regulations. By taking substantive voluntary steps, they can persuade governments and
the wider public that they are taking issues such as health and safety, diversity, or the
environment seriously as good corporate citizens with respect to labor standards and
impacts on the environment.

2. CSR practices in Bangladesh:

The discussions on CSR practices in Bangladesh in its modern global terms, are relatively
new, but not so for the concept itself. Because, being a part of the global market, it is
difficult to ignore CSR standard specifically in the export sector. In general, it is true
that in Bangladesh, the status of labor rights practices, environmental management and
transparency in corporate governance are not satisfactory, largely due to poor
enforcement of existing laws and inadequate pressure from civil society and interest
groups like Consumer Forums. Globally, as CSR practices are gradually being integrated
into international business practices and hence is becoming one of the determining factors
for market accesses, it is becoming equally instrumental for local acceptability. A focus
on CSR in Bangladesh would be useful, not only for improving corporate governance,
labor rights, work place safety, fair treatment of workers, community development and
environment management, but also for industrialization and ensuring global market
access. CSR in Bangladesh can also contribute a lot to community development. The
corporate house can develop the community by creating employment, providing primary
education, contribution to infrastructure development like road and high-ways and
addressing environmental concerns. This is more relevant for a country like Bangladesh

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where the government interventions in these fields augmented by corporate alliance can
go a long way in developing the economy, society and environment. Although a
developing country, because of global competitiveness and demand, the CSR practices
and standards are being gradually implemented in Bangladesh. But there is a long way to
go. There are challenges to implement CSR properly in Bangladesh. Ultimately CSR
practices should be better practiced in Bangladesh for better and enhanced performance.

3. CSR at Unilever Bangladesh:

Unilever Bangladesh focuses its voluntary social initiatives in three key areas: Health,
Education and Women's Empowerment - all aimed at improving the living standards of
Bangladeshi people. Unilever takes CSR as its VALUES, thus making a great impact on
Bangladesh’s society.

3.1 Education
Unilever Bangladesh emphasizes on better opportunities of education at all levels and for
everyone. Here we talk about some of the social initiatives taken by UBL in the area of
education.

• a) Promoting equal opportunities

Faria Lara Foundation is a voluntary organization working in the remote village of Halta
Dawatala in Bamna Upozila, Barguna District, in the south of the country. FAL
Foundation came forward to work with this organization to assist semi-urban female
students to acquire spoken/written English and basic Computer skills after their SSC
Exam and help them to compete with their urban peers.

Three month training program:

In April 2005, UBL Chairman Sanjiv Mehta officially handed over a cheque of Taka 5
Lakh and 10 computers to Selina Hossain, Executive Director of the Faria Lara
Foundation. Under this project 40 female SSC students from 16 secondary institutions in
the district went through a three-month training program on basic computer skills, spoken
and written English.

The courses were conducted by Certified IT professionals and English language

professors. The effectiveness of the course was evaluated by a final exam conducted by
Adcomm, UBL’s agency for executing the various projects related to FAL Foundation.

In 2007 May, Fair & Lovely Foundation again re-started the program of providing
Supplementary Education program with Faria Lara Foundation. This program continues
in 2008 as well. 20 SSC and 20 HSC Examinees were given the opportunity to train for
three months in Borguna District.

• b) Education for All

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Unilever came forward to support an institution that provides free primary education to
children of lowest income families. There exist some institutions that provide education
to these hapless children and one such organization is Shathee Samaj Kalyan Samity
(SSKS), an NGO working for the slum residents in the city’s posh residential area-
Banani.

Free evening school:

Besides entrepreneurial training and other activities, SSKS runs a free evening school for
children residing in slums and was funded by an international NGO thus far. Towards the
end of 2004, the supporting organization wrapped up its activities from Bangladesh
which left SSKS floundering for funds.

With Education as one of UBL’s primary focus in CSR, UBL felt that it would be a
shame to see such a wonderful initiative, providing education to over 300 underprivileged
children, close down.

In January 2005, Unilever Bangladesh initiated the sponsorship of the school' major
expenses. The sponsorship helps to cover salaries for the teachers and staff, uniforms and
books for the students, and other administrative outflows.

Getting more out of life:

Moreover, given the proximity of the school to UBL's corporate office, company
managers volunteer to spend time with the children and take innovative learning sessions.
These include Origami, Good behavior, Electricity and safety etc. The children eagerly
await such visit which inspire their creative thinking and is a break from the everyday
school work. Unilever's Pepsodent Dentibus also visits the school premises to create
awareness about good oral hygiene.

Hygiene & health:

UBL volunteers also visits the school to demonstrate the importance of hygiene and
health. Pop quizzes through which the children could win Lifebouy soaps, or a
Pepsodent toothpaste with each correct answer creates a flurry of eager hands to jumping
up to answer that makes it a sight to see!

The existence of the school is a great support for the children living in Banani, Gulshan,
Badda slum areas and UBL provides support for opportunities such as training for
teachers, and sports lessons for the students. Nurturing the intellect and development of
the children coming to this school can help build a strong example of conscious
involvement of the privileged society in support of the needy.

• c) Rewarding talent

Fair and Lovely Foundation undertook many initiatives to encourage women to become
empowered with skills for economic independence in life and self fulfillment. The
scholarship program was one such initiative that supported the dreams of talented women
from economically disadvantaged families.

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Bringing out the best:
In the scholarship program FAL Foundation provides scholarship worth Taka 25,000 to
female students to pursue 4 year under-graduate studies in the fields of Arts, Commerce,
Science, Engineering, Higher Agro–Science, and Medicine. More than 2000 applications
are received each year for this scholarship program.

After a rigorous need and merit assessment and a final interview conducted by renowned
professionals from various fields, 375 females have been awarded the scholarship to
continue their higher education. The scholarships are disbursed in installments following
submission of academic records showing good performance every year by each award.

Changing destinies:
The Foundation hopes that the scholarship will help to change the destiny of these young
women seeking enlightenment and economic independence although coming from a
family background that deprives them of many opportunities in life.

3.2 Women's Empowerment

• a) Empowering Women

In Bangladesh, like many other developing countries, women facing the same poverty
issues as men are subject to additional social and policy biases. For this, they remain
backward in terms of education and economic independence. Therefore their need for a
guide with a sincere mission to enhance the state of the Bangladeshi women is recognized
by all quarters.

Fair & Lovely Foundation:

Unilever strongly believes in the importance of empowering women in Bangladesh,
because the progress of any society will be constrained if a significant part of its
population is neglected and excluded from the benefits of development. It is therefore
necessary that women be progressively brought into the main stream of economic
activities. We believe, with economic and educational empowerment, women can
become more vocal about their rights and become stronger in withstanding repression in
any form.

Keeping this mind and women’s empowerment at the forefront, Fair & Lovely
Foundation was set-up as a social initiative by Unilever Bangladesh Limited on 15 June
2004 under its leading skin care brand Fair & Lovely. The mission of the Foundation is to
"Encourage economic empowerment of Bangladeshi women through information and
resources in the areas of Education, Career and Enterprise"

Education:
Even in the twenty-first century, Bangladeshi women’s economic empowerment is
looked upon as a luxury. While the economic growth of a country is dependent directly

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on the level of education of its general population, it will be most unfortunate if a
significant part of it is neglected and excluded from the benefits of development. It is this
realization that has brought about the Fair & Lovely Foundation Scholarship Program.
Any Bangladeshi female student with good academic track record is eligible to apply for
these scholarships. This program aims at providing women with basic and higher
education, as well as training and assistance. Supplementary scholarship programs are
also ongoing in partnership with the Faria Lara Foundation. After the successful project
entitled "Uttoroney Nari" in 2003 where 1,500 women students (at standard 10 level)
received courses on basic IT from NIIT, in 2004, Fair & Lovely Foundation tailor-made
yet another scholarship program for women seeking higher education.

Career:
Education is like a beacon for the right career. It hints at what one is good at. Yet, with so
many choices that are available, it is easy to make a wrong decision. This led to the Fair
& Lovely Foundation’s Career Guidance Program.

During its inception in 2004, the Fair & Lovely Foundation aired a 13-episode TV series
in Channel i. Each episode showcased one particular career… encapsulating detailed
information about its prospects, means of undertaking it, and an inspiring success story to
instigate interest. Career showcased in the program were – Law, Banking, Advertising,
Defense, Graphic Designing, Engineering, Fashion Designing, Merchandising, IT,
Architecture, Journalism, Medicine and Business. The program received a huge response
in terms of viewer enquiries and letters.

Enterprise:
We believe that small & medium enterprises are crucial to the economic development of
a country like Bangladesh. The Fair & Lovely Foundation Entrepreneurship Program was
set up to explore the endless possibilities that lie in this sector for women. This Program
assists both urban and rural women by providing practical knowledge as well as business
expertise.

• b) Project Joyeeta

‘Joyeeta’ is a unique initiative of Unilever Bangladesh to provide sustainable

opportunities for over 2900 women in rural Bangladesh to earn their livelihood. Joyeeta
is derived from the Bengali word ‘Joy’ which means ‘Win’. Joyeeta is the embodiment of
a fearless female spirit trying to better her socio-economic condition by trying new
options given her surroundings and ground realities. In recent times Non Government
Organizations (NGO)s and government bodies are collaborating to establish self-help
groups for the development of rural women supported by micro-credit program. So,
Project Joyeeta came out as a realistic venture of Unilever Bangladesh aimed at
improving the lives of rural women bringing them into a sustainable income generation
through entrepreneurial skills.

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Initiation of Joyeeta:
The project started in August 2003 in a nearby Thana of Manikgonj as a pilot for six
months. From an initial twenty-five Joyeetas the number has now increased to over two
thousand. The women termed as Joyeetas are given a task of selling Unilever products
and communicating the brand values in the rural households of their village. Hence with
a sizeable margin they would be able to generate sustainable income for themselves and
hence be financially empowered. These women (Joyeetas) are serviced from the
distributor through a third party agency at a regular interval.
Forging Ahead:
The success story of Joyeeta is taken even further with a similar project named
“Aparajita” with the support from CARE. Under this project, UBL will be able to expand
initiative to reach 20 more Upazillas of the country’s northern and eastern districts. These
Unilever led projects will continue to empower women all over the country and give
them the opportunity to dream about a better future.

• c) Urban training

In a new and exciting urban training project , FAL foundation started the vocational
training project for 500 urban women across different income generating sectors in order
to improve their economic independence.

An enabling endeavor:
FAL foundation organized 8 courses which were offered to women with entrepreneurial
aspirations from across the country. The courses were conducted by renowned
personalities in respective fields such as

* Food Processing by Siddiqa Kabir

* Flower Arrangement by Nina Rahman of Ikebana
* Cooking courses by Najma Huda
* Beauty & Make-Up Course by Farzana Shakil
* Tailoring and Embroidery by Singer
* Block Printing and Handicrafts by DTC

Women with at least a college education and within the age group of 16 to 35 were
eligible to apply. The courses were conducted over the months of August and September
2005.

Creating a better future:

450 women were chosen from the thousands of enthusiastic applicants. After completing
the 15 day training course in the area of their interest, these women can now start up their
own business and be a valuable support of other women as well.

• d) Sponsorship

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In 2003, Fair & Lovely - the popular skin care cream in Bangladesh sponsored
meritorious girl students from secondary school level to computer education from a world
class computer training institute, spread out in various branches in all districts of the
country. More than 1500 girl students were nominated throughout the country to be
trained under this program.

Nominees:
The top 3 students from each branch were invited, along with their parents to attend the
formal award giving ceremony in Dhaka. It was a bright happy gathering of proud
parents and promising faces of young achievers.

Fair & Lovely is all about the modern, confident, intrinsically beautiful women of the
21st century. Hence reaching out to the young women of the country to develop them to
meet contemporary needs was a natural phenomenon, said UBL Chairman and Managing
Director Sanjiv Mehta. The Minister for ICT was impressed by the enthusiasm and
confidence among the participants present and said, "Such an arrangement would address
two crucial issues, expansion of IT education in the country and empowerment of
women. As young women, you should let this be a valuable stepping stone for greater
achievements."

Aspirations:
The girls themselves were very excited at this grand gathering. Beaming parents
mentioned that they would encourage their daughters to continue their computer
education since they were good at it. The girls varied in their aspirations to become air
hostesses, computer scientists, botanists and economists; however, they all admitted that
Fair & Lovely Uttorone Nari Program helped them to learn more about computers and its
necessity in modern life.

Most of the girls were eager to work - to have a bright career in the future. "But many of
our parents are not equally willing", says Subarna Ahmed. "Normally, coming to Uttara
for this NIIT course would have been a problem", adds Raunak Jahan. "If I had not been
selected for this course, I would probably never have such a chance. Since this is a
prestigious scholarship, my parents are letting me come to Uttara and attend the classes,"
she adds. "And we thank Fair & Lovely for this great opportunity!"

3.3 Nutrition, hygiene & personal care

• a) Providing free health services:

Working with the Friendship charity, Unilever Bangladesh sponsored the complete
transformation of a French oil-barge into a comfortable residential boat with proper
amenities for medial procedures. Launched in 2002, the 38 meter Lifebouy Friendship
Hospital plies up and down the 'char' regions with a full team of medical experts and a
well stocked dispensary.

Facilities:

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The hospital boat boasts an unprecedented array of on-board facilities, including

* a patient observation ward,

* a gynecological and obstetrics room,
* an antenatal check-up clinic
* a small surgery for minor operations,
* a pathological lab,
* a dental surgery

Health education:
In addition, the hospital has a dedicated health education team. The team is responsible
for running much needed education program on basic health issues, such as nutrition,
sanitation and safe motherhood.

Unique impact:
The floating hospital really is unique and its impact across the char regions is difficult to
fully appreciate. To date, over 200,000 char-dwellers have had access to the hospital’s
free health services - many of whom have never had any kind of formal medical attention
in their lives. The hospital’s team of health professionals immunized 17,500 children
against common water-born illnesses and other diseases.

Making a difference:
Imran Momin, Supply Chain Director for Unilever Bangladesh, is one of the managers
who had the opportunity to see first-hand the difference that the floating hospital is
making. Following a recent trip to the flood-stricken region of Gaibandha. Imran talks of
seeing homesteads and fields under water. The plight of the char-dwellers was, in his own
words, one of "untold misery". However he says "the pale of gloom evaporated the
moment we saw the insignia of the Lifebouy Friendship Hospital at anchor".

Touching lives:
Those who have visited the floating hospital have all commented that they felt there was
a strong sense of pride hanging in the air - the pride associated with a company like
Unilever Bangladesh which has literally touched the hearts of millions of Bangladeshis.

• b) Promoting hygiene awareness:

Bangladesh has a population of over 142 million and 80% of this population lives in rural
areas. Although there has been a lot of social progress and economic development in
these areas since the country’s independence in 1971, there remains a general ignorance
about the importance of hygiene.

Campaigns:
Facing the major challenge of communicating to consumers across Bangladesh, our
health brands Lifebouy and Pepsodent initiated separate health awareness campaigns.
Lifebouy concentrating on all rural communities has a team of trained personnel to visit

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neighborhoods, market places, schools etc and communicate the importance of a healthy
lifestyle through flipcharts and leaflets. This is then followed by demonstrating the use of
Lifebouy soaps – which have been made available in small packs for people of all income
groups.

Oral hygiene:
The Pepsodent team concentrates on schools across the country and suburban localities to
promote oral hygiene. Initiatives like the Dental Support Program and Dental Health
Awareness Week, both of which have been quantum leaps in developing good oral
hygiene practices.

The Dental Support Program is a mammoth community exercise that encompasses both
direct and indirect dissemination of the need and importance of oral hygiene. Not only
does a qualified dentist visit schools to educate school children; the Program reaches out
to countless others indirectly by training primary and secondary school teachers.
Furthermore, Unilever Bangladesh reached out to educate imams at mosques on dental
hygiene, so that they can disseminate the message to their congregations. More than 3
million school children have been covered through this Program and Unilever is
committed to continue providing this service to the community.

Pepsodent - Bangladesh Dental Society Oral Health Day:

Unilever Bangladesh and Bangladesh Dental Society (BDS) have been working together
for over a decade to promote oral health of Bangladeshi people. One of the major
activities that is carried out in partnership is the Pepsodent - Bangladesh Dental Society
Oral Health Day. In 2007, the day was organized on November 16. People called in for
appointment at a stipulated time to have his or her teeth checked by dental professionals.
300 dentists at 257 clinics in 64 districts gave free dental check-up to 12,500 people.
Unilever setup temporary dental facilities in districts where there were no clinics
available. The Day provided people with an opportunity to be aware of the condition of
their teeth and also promoted general awareness of oral hygiene.

Dentist on wheels:
Pepsodent Dentibus – a mobile dental care unit complete with basic dental treatments and
specialized dentists are going around the country with free checkups and advice. The
Dentibus travels to 2 schools a day to create dental health awareness along with providing
free checkups to students. More than 1000 children per day thus come to know about
better dental hygiene through this program. Besides this, the bus also visits various
neighborhoods where a lot of excitement is created around the free checkups.

Creating a better life:

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Together, Lifebouy and Pepsodent have been instrumental in bringing the message of a
better lifestyle, free from germs and associated trauma, to millions of people across
Bangladesh.

• c) Better health for mother and child

The health of the mother and her child is critically important for the happiness of families
and society and Unilever Bangladesh is actively involved in protecting the good moments
of life wherever possible.

Partnering with local health authorities:

Unilever Bangladesh sponsored the setting up of a modern operation facility at the Maa
Shishu O General Hospital (Mother, child and General hospital) in the Port city of
Chittagong. This facility was inaugurated on May 25th, 2004. In this endeavor, UBL has
spent 6.5 Million Taka towards modernizing the existing operating theatre and in setting
up a new operating theatre together with an advanced Intensive Care unit. This was a
much needed upgrade of the hospital which is one of the very few health care facilities in
the city with a population of 2.5 million.

Addressing local needs:

UBL was actively involved in this project, recognizing the dire need in the region for
good health care, and an opportunity to help provide access to world-class surgical
facilities through this hospital that caters for less privileged citizens of Chittagong.
Having its major manufacturing facilities in Chittagong, Unilever Bangladesh has a long-
standing association with Maa Shishu O General Hospital and this initiative will radically
enhance the services of the hospital.

Enhancing capacities:
The Maa Shishu O General Hospital was set up in 1979 and is a popular reference in
Chittagong for the treatment of mothers and infants. It treats around one and a half Lakh
patients annually providing Pediatric, Obstetric, Gynecology , Blood Transfusion,
Diagnostic services etc. However due to insufficient resources it could not cater to all the
requirements of the patients - despite the executive committee’s best intentions. This is
where UBL came in as a sponsor and besides financial help extended personal
involvement of UBL managers in ensuring speedy completion of the project. The new
OT now has world class surgical equipment including Life support, Anesthesia machines
etc.

Continued Commitment:
The involvement of UBL in bringing modern surgical facilities to this hospital did not
stop at the OT. With regular assessment, new needs for equipment have led to further
investment of another 1.5 million Taka in 2005 as well. UBL is working with the
Hospital management to enhance the skills and capabilities of the hospital staff and
management as well to be able to provide better health care to the patients. In 2007 again,

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a 3 month long Nurses’ Training Program was organized at the Hospital. The program
covered several skill areas and had experts from outside the country help enhance nursing
related skills. All these activities helped improve the emergency, critical treatment and
recovery facilities for the port city residents and increased the hospital’s ability to do
surgery.

The company not only sponsors projects at Maa Shishu O General Hospital but also
actively supports and monitors its improvement. The management quarterly visits the
hospital to take patients’ feedback and meet with the administration to review the quality
of services and carry out need assessments to enhance the services of the hospital. It is
the Company’s firm believes that to help bring vitality everywhere, it must first take steps
to improve the well-being in the community that it operates in.

4.0 Reference:

• Business Ethics (Andrew Crane and Dirk Matten)

• http://en.wikipedia.org/wiki/Corporate_social_responsibility

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• http://en.wikipedia.org/wiki/Corporate_social_responsibility#Po

tential_business_benefits

• http://www.ammado.com/nonprofit/105776/articles/9858

• http://www.unilever.com.bd

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