Project Shakti

“Doing Well by Doing Good” is the main belief of Hindustan Unilever Limited (HUL). It is also the reason why HUL began Project Shakti, which focuses on empowering women who live in rural area by offering them more job opportunities.

shakti

Relating to what we have learnt in class, I believe this project is a way for HUL to create shared value (CSV). Because in my opinion, the project brings HUL into a win-win situation as it takes social responsibilities and creates a larger benefit for both the company itself and the local community.

Instead of distributing the company’s revenue to these women or letting them rely on the dole, HUL hires them to work as Shakti Amma (selling HUL products in the nearby village) and offers them wages per month. In this case, more and more women have money available to raise their families and to buy higher quality products. As a result, people’s living standard will be improved.

This project also makes a contribution to the company’s profit. Since 70% of the population in India comes from rural area (Wikipedia), as more people in this area get jobs and receive better payment, the demand for goods and services will increase. Moreover, I consider Project Shakti as a way to expand HUL’s brand awareness because people can easily access HUL products around the rural area.

According to the article written by Michael E. Porter and Mark R. Kramer, since the pie of revenue and profits is getting bigger and bigger, I think HUL is doing well  in creating shared value. In conclusion, if a company can focus on CSV, recognize and satisfy the societal needs, this can help maintain or improve the company’s performance in the market.

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