BUSINESSES SHOULD CONDUCT AND GOVERN THEMSELVES WITH INTEGRITY, AND IN A MANNER THAT IS ETHICAL, TRANSPARENT AND ACCOUNTABLE
We aim to create an environment where
employees embody our values of integrity,
respect, responsibility, and pioneering, while
remaining vigilant and confident in addressing
potential concerns. Our Business Integrity
program brings these values to life, helping
employees apply ethical standards in their
daily work. This program includes clear policies,
guidelines, and robust procedures to prevent,
detect, and respond to inappropriate behaviour.
By focusing on business integrity, we strengthen
our ability to attract and retain top talent, select
the right partners, and protect our people,
assets, and reputation.
Our Business Integrity framework ensures our
operations align with our values and comply
with laws and regulations. It has three pillars:
Prevention, Detection, and Response. These high
standards protect our stakeholders and support
sustainable growth. Knowing the code and doing
the right thing makes our company stronger.
Message from Our
Leadership
"At HUL, we are committed to upholding the highest standards of business integrity. Our Code of Business Principles and related policies guide our actions, ensuring we operate with honesty, integrity, and respect for human rights. We strive to create a positive impact through our operations and relationships, fostering a culture of integrity at all levels.”
Vivek Mittal Executive Director, Legal and Corporate Affairs
Nil
Bribery/corruption charges against our BoD/KMPs/employees/workers by law enforcement agency
Nil
Material fines/penalties/punishments as per regulation 30 of SEBI LODR
Nil
Corruption/conflicts of interest complaints against the Director/KMPs
0%
Value chain partners covered by the awareness programs
ESSENTIAL INDICATORS:
EI-1. Percentage covered by training and awareness programmes on any of the principles during the financial year:
| Segment | Total number of training and awareness programmes held | Topics/principles covered under the training and its impact | Percentage of persons in respective category covered by the awareness programmes |
|---|---|---|---|
| Board of Directors | 5 | Update on ESG Goals, Customer Development, Consumer and Market Insights, Research & Development, Building Talent and Capabilities & Update on Changes to the BRSR Reporting Framework | 88.9% |
| Key Managerial Personnel | 5 | 100.0% | |
| Employees other than BoD and KMPs** | 1* | Introduction to Sustainability, ESG Goals, Climate Change, Human Rights, Health and Safety, and Skill Upgradation | 78.9% |
| Workers** | 1* | 85.7% |
Above table
represents HUL’s Board of Directors and Key Managerial Personnel
*During the year, we rolled out a comprehensive training module to drive
awareness among our employees and workers on the above topics, as
represented in the table. In addition to this, we undertook various thematic
training programmes across the organisation during the year
**Employees and workers include both permanent and other than
permanent/contractual (including part time)
EI-2. Details of fines/penalties/ punishment/award/compounding fees/ settlement amount paid in proceedings (by the entity or by Directors/KMPs) with regulators/law enforcement agencies/ judicial institutions, in the financial year, in the following format (Note: the entity shall make disclosures based on materiality as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website)
During FY 2024-25, there were no material fines/penalties/ punishments/awards/compounding fees/settlements as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 imposed on the Company or its Directors/KMPs.
EI-3. Of the instances disclosed in Question 2 above, details of the Appeal/Revision preferred in cases where monetary or non-monetary action has been appealed.
Not applicable
EI-4. Does the entity have an Anti-Corruption or Anti-Bribery Policy? If yes, provide details in brief and if available, provide a web link to the Policy.
Yes, one of the five pillars of our code policy focuses on countering corruption. Under this pillar, various policies address bribery, money laundering, gifts and hospitality, conflicts of interest, and more. Our commitment to doing business with integrity requires consistently high standards. We have built a strong reputation for being an ethical, trustworthy company. We are responsible for protecting that reputation by conducting our business with integrity as we interact with business partners, consumers, and public authorities. Dealings with public officials are particularly high risk; even the appearance of illegal conduct could cause significant damage to our reputation. Accordingly, our zero-tolerance approach towards bribery and corruption applies to all our operations and prohibits any kind of bribery. All these policies can be referred at Link.
EI-5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery/corruption.
During FY 2024-25, there were no charges of bribery/corruption by any law enforcement agency against our Directors/ KMPs/employees/workers.
| Category | FY 2024-25 | FY 2023-24 |
|---|---|---|
| Directors | - | - |
| KMPs | - | - |
| Employees | - | - |
| Workers | - | - |
EI-6. Details of complaints with regard to conflict of interest:
During FY 2024-25, there were no complaints concerning conflicts of interest against the Directors and KMPs.
| Category | FY 2024-25 | Remarks | FY 2023-24 | Remarks |
|---|---|---|---|---|
| Number of complaints received in relation to issues of conflict of interest of the Directors | - | - | - | - |
| Number of complaints received in relation to issues of conflict of interest of the KMPs | - | - | - | - |
EI-7. Provide details of any corrective action taken or underway on issues related to fines/ penalties/action taken by regulators/law enforcement agencies/judicial institutions, on cases of corruption and conflicts of interest.
Not applicable, as we do not have any instances of corruption/conflicts of interest against Directors and KMPs.
EI-8. Number of days of accounts payables (Accounts payable *365) / Cost of goods/ services procured) in the following format:
| Parameter | FY 2024-25 | FY 2023-24 |
|---|---|---|
| Number of days of accounts payables | 84 days | 85 days |
EI-9. Open-ness of business: Provide details of concentration of purchases and sales with trading houses, dealers, and related parties along-with loans and advances & investments, with related parties, in the following format:
| Parameter | Metrics | FY 2024-25 | FY 2023-24 |
|---|---|---|---|
| Concentration of purchases* | |||
| a. Purchases from trading houses as % of total purchases | 23.0% | 22.8% | |
| b. Number of trading houses where purchases are made from | 332 | 296 | |
| c. Purchases from top 10 trading houses as % of total purchases from trading houses | 42.5% | 51.9% | |
| Concentration of sales | |||
| a. Sales to dealers/distributors as % of total sales | 66.9% | 69.6% | |
| b. Number of dealers/distributors to whom sales are made | 4,373 | 4,394 | |
| c. Sales to top 10 dealers/distributors as % of total sales to dealers/ distributors | 5.3% | 4.9% | |
| Share of RPTs** in | |||
| a. Purchases (Purchases with related parties/Total purchases) | 10.6% | 6.2% | |
| b. Sales (Sales to related parties/Total sales) | 1.0% | 1.0% | |
| c. Loans & advances (Loans & advances given to related parties/ Total loans & advances) | 66.8% | 69.2% | |
| d. Investments (Investments in related parties/Total investments made) | 21.4% | 17.9% |
*From FY2024-25, Purchases include both product input materials and capex procurement
**Related party transactions are as per the standalone financial statements of HUL
LEADERSHIP INDICATORS
LI-1. Awareness programmes conducted for value chain partners on any of the principles during the financial year:
Our Responsible
Partner Policy (RPP) sets out the requirements that all our suppliers must
comply to do business with us.
Our RPP and its Fundamental Principles embody our commitment to responsible,
transparent, and sustainable business.
Each fundamental principle of
the RPP guides what HUL expects from its responsible and sustainable
suppliers. We are
committed to working with our suppliers on this journey of continuous
improvement.
We have also verified alignment to and implementation of the RPP’s mandatory
requirements using supplier self-declarations,
online assessments and independent verification, including third-party
audits for designated high-risk
countries and supplier types.
| S. No. | Total number of awareness programmes held | Topics/principles covered under the training | % of value chain partners covered (by value of business done with such partners) under the awareness programmes | |
|---|---|---|---|---|
| 1 | One program (total of 5,098 vendors were trained through digital medium) |
|
|
98.3% |
LI-2. Does the entity have processes in place to avoid/manage conflict of interests involving members of the Board? (Yes/No) If yes, provide details of the same.
Yes, we have adopted the ‘Code of Conduct’ for the Board of Directors, which sets clear guidelines for avoiding and disclosing actual or potential conflicts of interest with the Company. We receive an annual declaration and changes, if any, from time to time from our Board of Directors and Senior Management on the Code of Conduct Policy. The Policy is available on our website and can be viewed at Link.