Maintaining high standards of Corporate Governance has been fundamental to the business.
Responsible corporate conduct is fundamental to the way businesses do business. In India. the principles of Corporate Governance are based on transparency, accountability and focus on the sustainable success of a business over the long term.
The article discusses corporate governance framework of Hindustan Unilever Limited (HUL). With almost 90 years of heritage in India, the corporate governance framework of Hindustan Unilever Limited (HUL) has evolved over the decades and is inspired by its core values of Respect, Integrity, Responsibility & Pioneering.
HUL actions are governed by values and principles, which are reinforced at all levels within the Company.
The Corporate Governance Code adopted by the Board acts as a comprehensive framework within which the Company, Board of Directors (‘the Board’), and Statutory Board Committees may effectively operate for the benefit of its varied stakeholders, the company’s annual report revealed.
Conducting operations with integrity and respect for the many people, organisations and environments HUL business touches has always been at the heart of its corporate responsibility.
“At Hindustan Unilever Limited, we feel proud to belong to a Company whose visionary founders laid the foundation stone for good governance long back and made it an integral part of its day-to-day business.”, the company said.
HUL’s history is a story of growth powered by ideas and values. Its business has always been driven by a sense of purpose and the belief that businesses must have a purpose beyond profit.
“We continue to believe that the only way a business will succeed is by making a positive contribution to addressing the challenges the world faces.”, HUL said.
HUL is committed to doing things the right way which means taking business decisions and acting in an ethical way and compliance with applicable legislation.
Code of Business Principles (‘the Code’) is an extension of values and reflects a commitment to ethical business practices across operations. It acknowledges individual and collective responsibilities to manage our business activities with integrity.
The Code inspires us to set high standards of governance which not only meet applicable legislation but go beyond in many areas of our functioning, the company said.
“To succeed, we believe, requires the highest standards of corporate behaviour towards everyone we work with, the communities we touch and the environment on which we have an impact.”, the company said.
“This is our road to consistent, competitive, profitable and responsible growth and creating long-term value for our shareholders, our people and our business partners. The above principles have been the guiding force for whatever we do and shall continue to be so in the years to come.”, the largest FMCG said.
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The Board is responsible for and committed to sound principles of Corporate Governance in the Company.
The Board plays a crucial role in overseeing how the management serves the short and long-term interests of shareholders and other stakeholders.
This belief is reflected in governance practices, under which it strives to maintain an effective, informed and independent Board.
The company keeps governance practices under continuous review and benchmarks itself to best practices across the globe.
In recognition of its high standards of governance practices, HUL was conferred with several awards over the last few years, and it is committed to raise the bar of Corporate Governance excellence with each passing day.
During the year 2021, HUL was recognised in the ‘Leadership’ category on the Corporate Governance Scorecard developed jointly by International Finance Corporation (IFC) and Bombay Stock Exchange (BSE) – Institutional Investor Advisory Services India Limited (IiAS).
“I believe that nothing can be greater than a business, however small it may be, that is governed by conscience; and that nothing can be meaner or more petty than a business, however large, governed without honesty and without brotherhood.” – William Hesketh Lever
Also Read: CSR: Hindustan Unilever spends Rs. 157 Cr on SDGs projects in FY 2022
