Escolar Documentos
Profissional Documentos
Cultura Documentos
ON AMUL
SUBMITTED TO
YEAR 2012-2013
SAMEER SHAIKH
SY BMS
ROLL NO:
PROJECT GUIDE
CERTIFICATE
The information submitted in the project is true and original to the best of
our knowledge.
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.
Last but not the least I would like to thank my family and friends for their
continuous support and help.
DECLARATION
Roll no. 14
WHAT IS CSR ?
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.
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?
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
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.
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.
Type Cooperative
Industry Dairy
Founded 1946
Headquarters Anand, Gujarat, India
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 (1973-
2006), 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
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 procurement-
production-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 co-
operative through a democratically elected 9-member managing committee, and doing
business by purchasing milk from members and selling it to the district level co-
operative. 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 consumer with the end product. Every function involves human intervention: 23.60
lakh primary milk producers; 35,000 rural workmen in more than 11,400 village
societies; 12,000 workers in 15 dairy pla-nts; 750 marketing professionals; 10,500
salesmen in distribution network and 600,000 sal-esmen in retail network. Accu-
mulation of human capital is sine qua non for the development and growth of any
enterprise or economy. The GCMMF is sensitive towards CSR. It believes that
technology and capital are replicable inputs but not the human capital. Since men are
the basis for achieving the CSR, the GCMMF lays emp-hasis on their development into
competent, courteous, credible, reliable, responsive communicators and performers.
CSR-sensitive Business Philosophy
The first step towards discharging the CSR is the business philosophy of the GCMMF. It
is two-fold: one, to serve the interests of milk producers and second, to provide quality
products to consumers as value for money. Evolution of an organisational system has
ensured that the corporate social responsibility towards the primary milk producers,
village and the ecological balance is fulfilled. The milk producers are paid for their milk
in accordance with market forces and realisation of value for their produce. Invariably
the price paid to the member-producers in Gujarat is higher by 15 per cent than the
national average.
Earnings Of GCMMF
Nurturing its primary members - the milk producers - is the first mission of the GCMMF.
Discharge of this responsibility is reflected in the manner in which the GCMMF conducts
its business and shares its earnings. The milk from the village co-operatives is
purchased at an interim price. So as to maximise the earnings of the milk producers the
GCMMF changes the product profile during the fiscal and directs its sales and
marketing activities towards those products that would bring in maximum returns. True!
Every business organisation follows the same principle. But the GCMMF follows it with
the central interest of the producers. During the fiscal, as the GCMMF finds that from its
earnings it is possible to pay more to the producers for milk, the final price is declared
higher than the interim price being paid. Before the GCMMF closes its financial
accounts the co-operatives are paid ‘price difference‘, the amount between the interim
price and the final price. Thus profit of the GCMMF is very low. The net profit (PADT) of
the GCMMF during 2003-04 was Rs 7.31 crore against a turnover of Rs 2,947 crore, a
meagre 0.25%. Further out of the net profit of Rs 7.31 crore, Rs 4 crore was given as
share dividend to the co-operatives. To fulfill its corporate social responsibility towards
its milk producers and co-operatives the GCMMF works on razor thin profits and
retention of funds.
CSR-oriented To Staff
The GCMMF hires and trains people to take advantage over its competitors. It has
developed in-house modules for training and competence building to improve and up
grade of their knowledge; communication skills to understand the customer, be
responsive to customer requirements, and communicate clearly for trouble shooting of
problems. They are expected to be courteous, friendly, respectful, and considerate to
the customer. To improve the credibility and trustworthiness of the managers it is
important they perform consistently and accurately every time and at all times. The
structure of salary and perquisites is altogether different. The first and foremost the staff
must get satisfaction from the job they. They are recognised for their contribution
(Climate Survey) CSR-AMUL WAY
GCMMF formed a specific organization named "Amul Relief Trust" (ART) under the
Chairmanship of Dr. V. Kurien in 2001 with a donation of Rs. 50 Millions for
reconstruction of the school buildings damaged in the 2001 earthquake in the Kutch
area.
The Trust reconstructed 6 schools damaged by the above earthquake at a cost of Rs.
41.1 millions in Kutch area. Four of these schools started re-functioning from the last
two academic sessions and the other two schools from the current session.
Tree Plantation
Milk Producer members of Gujarat Dairy Cooperatives- better known as AMUL have
been celebrating the nation's Independence Day in a novel manner by planting lakhs of
saplings across Gujarat and have taken up an ambitious plan to save the environment
by planting trees, making India green and thereby reducing the effects of global
warming. The milk producers of Gujarat Dairy Cooperatives are conducting mass tree
plantation drive every year on Independence Day for last five years. In last five years
(2007 to 2011) the milk producers have planted around 311.98 lakhs trees). The most
striking feature of these entire programmes was that it has been initiated by milk
producer members of the dairy cooperatives. The unique fact about the programme was
that the milk producer members took up the oath to protect tree saplings till it survives
and grows into tree.
Over the years, due to intensive agriculture and dairying various natural resources are
getting consumed at faster pace in Gujarat state of India. The state level apex body of
dairy farmers in Gujarat gave a serious thought in this direction and discovered a novel
idea for giving back to nature. The idea was "one member one tree" plantation on our
60th Independence day - 15th August 2007.To put this idea in to the practice a design
team constituting of representatives of member unions were formed. The team
accepted the idea by heart and immediately decided to spread it among farmer
members of village dairy cooperative societies. Then the idea was communicated to
farmer members and they all welcomed it and enthusiastically agreed to implement the
idea.
For smooth implementation of the idea, the design team chalked out the road map for
various activities. Execution teams were formed at district union level to give final shape
and put the plan in action. Village level coordinators were identified and they were
trained to streamline activity of tree plantation. Various awareness materials were
prepared. Through various communication media farmer members were made aware of
benefits of tree plantation and tree plantation activity schedule
The entire plantation activity was coordinated at all the three tiers of Anand pattern - at
village, district and state level dairy cooperatives. On 15th August, 2007, after the flag
hoisting ceremony, each member took an oath to plant saplings and ensure that they
grew in to trees. Then individually they planted sapling on their own at their identified
locations like their farm, near their home, on Farm bunds, etc. They have taken
necessary care to ensure that this sapling survives and they also reported regarding the
survival to village level coordinator and district milk unions after five months. In this way,
18.9 lakh trees were planted on 15th August 2007. This was just the beginning.
Henceforth, the Village Dairy Cooperative Societies of Gujarat as a mark of respect for
our nation decided to conduct such event on every Independence Day and accepted
15th August (Independence Day) as a "Green Revolution Day by Afforestation to
Protect Mother Earth from Pollution, Climate change and Global Warming".
But all this required immaculate planning and execution. An action plan of tree
plantation programme was drawn up months back in advance. After the identification of
the chief coordinator for each district milk union, the organization of a task force for the
programme was put in place. Roles and responsibilities were assigned to each member
and area of operation allocated. After preparing the overall action plan, each union
issued a circular to the Dairy Cooperative Societies regarding the programme and
arranged meetings with the societies covered. At the village level, coordinators were
identified in respect of the villages to be covered and the number of saplings required.
Along with logistical arrangements direct contact was established with different
agencies for receipt of saplings. Pointwise methodology for implementation of tree
plantation programme on such a mass scale is as following.
Point wise Methodology of execution of programme is as following:
1. Member Unions were informed about the programme and channels of
procurement of saplings, almost six month before to scheduled date of
programme.
2. Continuous follow up were taken from the member unions about the status of
activities planned for the programme.
3. A meeting on tree plantation programme was held at GCMMF Ltd., Anand almost
a month ago in which status of action plan was each Member Union was
discussed at length.
4. Milk Unions identified the coordinator for the programme and organized a task
force for the successful implementation of the programme. The coordinator at
Milk Union level chalked out overall action plan for the programme and assigned
roles and responsibilities and area of operation to each member of task force.
5. Milk Unions (MUs) issued circular to their respective VDCSs (Village Dairy
Cooperative Societies) mentioning the entire activity and procedure planned for
the celebration of the programme. In circular details for milk producer members
to make necessary preparations like deciding the place, digging the pit, taking
care of saplings etc. well in advance were also provided. The circular was placed
on notice board of VDCSs.
6. MUs task force members contacted & communicated about the concept to VDCS
and identified the village level coordinator and assigned them roles and
responsibilities.
7. MUs Coordinator properly explored and communicated the saplings acquiring
sources/nursery details to VDCSs. They also ensured that saplings reach the
VDCSs before 3 days.
8. A press note was prepared by the coordinator of the programme at MU level and
which were given in the newspapers on a day before tree plantation to boost
morale of producer members and mentally prepare them for the execution of
programme on next day.
9. At time of handing over the saplings to members from VDCS, the producer
members took oath to protect the saplings and accepted the responsibility for
successfully growing the sapling into tree.
10. On 15th August, after the milk collection process, at a predecided time sirens at
VDCSs were sounded or other means like beating Thali/utensil, loudspeaker etc.
were used to facilitate the gathering producer members in time at predecided
place in the village for celebration of Independence Day in VDCS premises,
common plot, school etc. After flag hoisting ceremony, the tree plantation activity
was executed by the producer members.
11. In many villages the milk producer members planted the trees after performing
the Puja (worship) of saplings before planting them.
12. To add fervour and enthusiasm in the programme at many places the Chairman,
Managing Director and Board of Directors of Member Unions participated in the
programme.
13. Next day after the programme on a post programme press note was prepared
giving details of the programme celebrations along with photographs. Similar
such notes were published in house magazines/ newsletters.
14. After the completion of the programme the MU's were asked to submit the report
on tree plantation activity.
15. MUs conducted survey after 5 months to find out the survival rate of sapling
under the programme.
First tree plantation programme (15th August, 2007) was carried out on "one member,
One tree" basis. Second tree plantation programme (15th August, 2008) in which
around 52.74 lakhs tree were planted was conducted on "one member three tree" basis.
In year 2009 and in year 2010, in mass tree plantation programme around 84.24 and
83.5 lakhs tree saplings were planted respectively. The programme was conducted
on "One member, Five tree" basis. Further, this year 2011 around 72.6 lakhs trees
were planted, the programme was carried out as per the same process and procedures
followed in last year.
Hence, in last five years, milk producers of GCMMF planted around 311.98 lakhs
tree saplings in 21 districts of Gujarat. By doing so, milk producers of Gujarat
Dairy Cooperatives have shown their concern, awareness and commitment for
betterment of environment.Yearwise details of tree plantation and survival of tree
saplings planted is as under.
Sr. No Year of tree plantation No. of trees planted (in lakhs) No. of trees Survived (in lakhs) Survival percentage
1 2007 18.90 11 58
2 2008 52.74 26 49
3 2009 84.24 38 45
4 2010 83.5 39 47
5 2011* 72.6 34 47
*estimated (as survey for survival percentage of the saplings planted in year 2010 is ongoing)
Achievements:
This effort to provide green cover to the earth was also acknowledged when the state
level apex body of Gujarat Dairy Cooperatives - GCMMF received four successive
prestigious "SRISHTI's G-Cube Award"-2007, 2008, 2009 and 2010 for Good Green
Governance in the "Service Category".
Further, "Amul Green" movement has also been awarded by International Dairy
Federation for best environment initiative in the "sustainability category" during the 4th
Global Dairy Conference held at Salzburg Congress Center, Austria on 28th April, 2010.
It has been estimated that when one tree is cut, in monetary terms there is loss or Rs.
33 lakhs (Oxygen worth of Rs. 5.3 lakhs, Land Fertility of Rs. 6.4 lakhs, Rs. 10.5 lakh for
reduction of pollution of atmosphere and Rs. 5.3 lakh towards Flowers / Fruits and
habitation to birds - animals). But the benefits that accrue to mankind when a tree is
planted cannot be measured in money and is priceless.
The producer members of GCMMF have really set an example for all the cooperatives
and other institutions to turn India green in the era of Global warming and environmental
crisis.
When 3 million dairy farmers of Gujarat have planted more than 311.98 lakh trees in just
five years and are planning to plant more trees every year, they are doing an invaluable
- truly Amul - service to the society.
In an era of global warming, Amul is contributing its share in making Gujarat lush green.
In this way, the milk producers of Gujarat are ushering in a silent revolution of greening
Gujarat.