PROJECT

BUSINESS & SOCIETY

Submitted to : Sharath P

Submitted by : Sachu Kurian & Safna Safar

Topic : ITC

Phase 1 Submission

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TABLE OF CONTENTS

PROJECT CONCEPT........................................................................................................1

IDENTIFICATION OF THE INDUSTRY AND COMPANY..........................................2

INTRODUCTION ................................................................................. 3

NATURE OF BUSINESS, INDUSTRY & STAKEHOLDER..........................................4

 PROJECT CONCEPT

The project concept is to identify an industry and find a company from that
industry so as to conduct a study based on parameters such as social responsibility,
CSR activities and EMS. Here, the theme of social responsibility is rapidly becoming
a budding quintessence on the domestic as well global agenda of the corporate sector.
The idea of corporate social responsibility (CSR) is not new. Business, through the
ages, demonstrated varying degrees of responsibility to society. The present study
explores global phenomenon in CSR and examines the corporate social responsibility
initiatives and trends.
The project is conducted by identifying a company and study is done based
on CSR activities and EMS. After identifying the social responsibility, CSR, rules
and regulations regarding the industry, demographic environment, EM & EMS at the
second phase, we need to give our own findings and suggestions based on that.
To conclude, it is evident that the concept of CSR and EMS has emerged
as a promising benchmark for companies not only in Asia but across the world as a
whole. However, the biggest challenge faced by companies is to develop a CSR
strategy to find tangible and business focused metrics linked to ethical, social and
environmental performance in order to meet stakeholder demands and expectations.

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IDENTIFICATION OF THE INDUSTRY AND COMPANY

India has emerged as a prominent country paying an ever-increasing

attention towards corporate social responsibility disclosure. Among the Indian
companies, ITC have emerged in top 10 ASR 2009 list. ITC have shown its presence
in top positions in most of the CSR indicators i.e corporate governance, codes and
policies; corporate social responsibility strategy and communication; corporate
environment disclosure; community investment initiatives; and total industry score.
ITC also featured as one of world's largest sustainable value creator in the
consumer goods industry in a study by the Boston Consulting Group. ITC has been
listed among India's Most Valuable Companies by Business Today magazine. The
Company is among India's 10 Most Valuable Brands, according to a study conducted
by Brand Finance and published by the Economic Times. ITC also ranks among
Asia's 50 best performing companies compiled by Business Week.
However, it is evident that the approaches taken by ITC is really
appreciative and could be followed by any other industries. So,here we have taken
the company ITC Limited to conduct our study.

ITC Limited:

ITC being a very large company and working across different sectors of
business is actively engaged in CSR activities, having a vision to serve a large
National purpose of Nation building through core values, so that every part of the
society have the change and accessibility to the basic needs, which the rural India
doesn’t have, through imparting assistance and education to uplift them from poverty
and misery these people have been facing, for a very long time. ITC has a rich
organizational culture, rooted in its core values of respect for people and belief in
empowerment. Its philosophy of all-round value creation is backed by strong
corporate governance policies and systems.

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 INTRODUCTION

ITC Limited is an Indian multinational conglomerate company headquartered

in Kolkata, West Bengal. Established in 1910 as the 'Imperial Tobacco Company of
India Limited', the company was renamed as the 'India Tobacco Company Limited' in
1970 and later to 'I.T.C. Limited' in 1974. The dots in the name were removed in
September 2001 for the company to be renamed as 'ITC Limited' where 'ITC' would
no longer be an initialism. The company completed 100 years in 2010 and as of
2012–13, had an annual turnover of US$8.31 billion and a market capitalization of
US$50 billion. It employs over 30,000 people at more than 60 locations across India
and is part of Forbes 2000 list.
ITC’s ability to leverage internal synergies residing across its diverse
businesses lends a unique source of competitive advantage to its products and
services. Today, ITC is the country‟s leading FMCG marketer, the clear market
leader in the Indian Paperboard and Packaging industry, a globally acknowledged
pioneer in farmer empowerment through its wide reaching Agri Business, the second
largest Hotel Chain in India and a trailblazer in green hoteliering. ITC Infotech, a
wholly-owned subsidiary, is one of India’s fast-growing IT companies in the mid tier
segment. This portfolio of rapidly growing businesses considerably enhances ITC’s
capacity to generate growing value for the Indian economy.
Acknowledged as a global exemplar in sustainability, ITC is also the only
enterprise in the world, of comparable dimensions to be carbon positive, water
positive, and solid waste recycling positive for several years in a row. As a testimony
to its commitment to a low carbon growth path, 43% of the total energy requirements
of ITC are met from renewable sources. ITC's production facilities and hotels have
won numerous national and international awards for quality, productivity, safety and
environment management systems. ITC was the first company in India to voluntarily
seek a corporate governance rating.

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NATURE OF BUSINESS, INDUSTRY & STAKEHOLDER

ITC is one of India's foremost private sector companies with a market

capitalization of over US $ 52 billion and a gross sales value of US $ 10 billion. ITC
has a diversified presence in Cigarettes, Hotels, Paper boards & Specialty Papers,
Packaging, Agribusiness, Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG
products. While ITC is an outstanding market leader in its traditional businesses of
Cigarettes, Hotels, Paper boards, Packaging and AgriExports, it is rapidly gaining
market share even in its nascent businesses of Packaged Foods & Confectionery,
Branded Apparel, Personal Care and Stationery. As one of India's most valuable and
respected corporations, ITC is widely perceived to be dedicatedly nation-oriented.
Chairman Y. C. Deveshwar calls this source of inspiration "a commitment beyond the
market". In his own words: "ITC believes that its aspiration to create enduring value
for the nation provides the motive force to sustain growing shareholder value. ITC
practices this philosophy by not only driving each of its businesses towards
international competitiveness but by also consciously contributing to enhancing the
competitiveness of the larger value chain of which it is a part."
ITC's aspiration to create enduring value for the nation and its stakeholders is
manifest in its robust portfolio of traditional and greenfield businesses
encompassing Fast Moving Consumer Goods (FMCG), Hotels, Paper boards &
Specialty Papers, Packaging, Agri-Business, and Information Technology. This
diversified presence in the businesses of tomorrow is powered by a strategy to pursue
multiple drivers of growth based on its proven competencies, enterprise strengths and
strong synergies between its businesses.
The competitiveness of ITC's diverse businesses rest on the strong foundations
of institutional strengths derived from its deep consumer insights, cutting-edge
Research & Development, differentiated product development capacity,
brand-building capability, world-class manufacturing infrastructure, extensive rural
linkages, efficient trade marketing and distribution network and dedicated human
resources.

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 Within a relatively short span of time, ITC has established vital brands like
Aashirvaad, Sunfeast, Fabelle, Sunbean, Dark Fantasy, Mom's Magic Bingo!,
Yippee!, Candyman, mint-o, Kitchens of India, Farmland, B Natural, ITC
MasterChef in the Branded Foods space; Essenza Di Wills, Fiama, Vivel, Engage,
Savlon, Charmis, Shower to Shower and Superia in the Personal Care products
segment; Classmate and Paperkraft in Education & Stationery products; Wills
Lifestyle in the Lifestyle Apparel business; Mangaldeep in Agarbattis and Aim in the
Safety Matches segment. This growth has been rated by a Nielsen Report to be the
fastest among the consumer goods companies operating in India.
The Company continuously endeavors to enhance its wealth generating
capabilities in a globalizing environment to consistently reward more than 9,13,000
shareholders, fulfill the aspirations of its stakeholders and meet societal expectations.
ITC believes that its aspiration to create enduring value for the nation provides the
motive force to sustain growing shareholder value.ITC group directly employs more
than 32,000 people and the Company's Businesses and value-chains generate around
6 million sustainable livelihoods many of whom live at the margin in rural India.

CORPORATE STRATEGIES OF ITC:

 Create multiple drivers of growth by developing a portfolio of world class

businesses that best matches organizational capability with opportunities in
domestic and export markets.

 Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paper boards
& Packaging, Agri Business and Information Technology.

 Benchmark the health of each business comprehensively across the criteria of

Market Standing, Profitability and Internal Vitality.

 Ensure that each of its businesses is world class and internationally competitive.

 Enhance the competitive power of the portfolio through synergies derived by

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 blending the diverse skills and capabilities residing in ITC's various businesses.

 Create distributed leadership within the organization by nurturing talented and

focused top management teams for each of the businesses.

 Continuously strengthen and refine Corporate Governance processes and systems

to catalyse the entrepreneurial energies of management by striking the golden
balance between executive freedom and the need for effective control and
accountability.

PREAMBLE:

Over the years, ITC has evolved from a single product company to a
multi-business corporation. Its diverse businesses include fast moving consumer
goods, hotels, paper boards, paper & packaging and Agri business.
The Company's investments in its different businesses are structured in the
nature of in-house divisions,subsidiaries, joint ventures, associate companies and
trade investments.
The task of governing a corporation of ITC's size and diversity was rendered
more complex in post liberalization India, which began experiencing the intense
impact of globalization. In order to address its own unique organizational context and
prepare itself for the global Indian market, ITC, as early as in 1999, fashioned an
unique corporate governance model that would enable it to 'focus' on its multiple
businesses, while maximizing shareholder value.
This governance policy has not only stood the test of time, but also supported
ITC's rapid growth in the last two decades since its formulation. In the intervening
years, ITC has not only widened its diversity with the launch of several new
businesses in its chosen strategic arena, but has also responded to the growth
challenge by creating new internal structures like shared services and business
verticals,designing broad-band roles like Line CMC Members, Chief Operating
Officers of Business / Vertical, and enabling operating decision making powers at
empowered levels.

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 PHILOSOPHY :

Recognizing that business enterprises are economic organs of society and draw
on societal resources, it is ITC's belief that a company's performance must be
measured by its Triple Bottom Line contribution to building economic, social and
environmental capital towards enhancing societal sustainability. ITC believes that in
the strategic context of business, enterprises possess, beyond mere financial resources,
the transformational capacity to create game-changing development models by
unleashing their power of entrepreneurial vitality, innovation and creativity. In line
with this belief, ITC will continue crafting unique models to generate livelihoods and
environmental capital. Such Corporate Social Responsibility("CSR") projects are far
more replicable, scalable and sustainable, with a significant multiplier impact on
sustainable livelihood creation and environmental replenishment. These initiatives
are independent of the normal conduct of ITC's business. Programmes, projects and
activities (collectively "CSR Programmes") carried out in this regard are the subject
matter of this Policy.