MULUND COLLEGE OF COMMERCE

CSR AND CG PRACTICE OF ITC COMPANY

(A CASE STUDY ANALYSIS)

SUBJECT: Ethics and Governance

PRESENTED BY,
PRO. ABHILASHA N, MCOM, MPHIL, (PHD)
MULUND COLLEGE OF COMMERCE
CONTENTS

▶ INTRODUCTION TO CSR AND CG

▶ INTRODUCTION OF ITC COMPANY
▶ CSR CONTRIBUTION AND ACTIVITIES OF ITC
▶ AWARDS AND RECOGNISION OF ITC WITH RESPECT TO CSR
▶ CG POLICIES OF ITC
▶ CONCLUSION
 A BRIEF NOTE OF CSR

Corporate social responsibility (CSR) is a business approach that contributes to

sustainable development by delivering economic, social and environmental benefits for
all stakeholders. CSR is a concept with many definitions and practices. The way it is
understood and implemented differs greatly for each company and country. Moreover,
CSR is a very broad concept that addresses many and various topics such as human
rights, corporate governance, health and safety, environmental effects, working
conditions and contribution to economic development. Whatever the definition is, the
purpose of CSR is to drive change towards sustainability.

Although some companies may achieve remarkable efforts with unique CSR initiatives,
it is difficult to be on the forefront on all aspects of CSR. Considering this, the example
below provides good practices on one aspect of CSR – environmental sustainability.
NOTE: INCLUDE 2 MORE SLIDES INCLUDING OBJECTIVES, IMPORTANCE,
ADVANTAGES OR ANY OTHER RELATED POINTS. (ALTEAST 2/3 SLIDES)
 A BRIEF HISTORY OF COMPANY

ITC Limited is an Indian company[6] headquartered in Kolkata, West Bengal. Its five diversified
businesses are Fast-Moving Consumer Goods (comprising Foods, Personal Care, Cigarettes and
Cigars, Apparel, Education and Stationery Products, Incense Sticks and Safety Matches), Hotels,
Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology. Although the
cigarette business contributes more than 80% of the profits of the company, 80% of the capital is
invested in the non-tobacco businesses.
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 acronym. 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.
▶
CSR POLICIES OF ITC

▶ Brief outline of CSR Policy

▶ Role of the CSR and Sustainability Committee
▶ Programmes/Projects
▶ Composition of the CSR and Sustainability Committee as on 31st March, 2018
▶ Details of implementing agencies
▶ Responsibility Statement of the CSR Committee

(Note: state some of the points related to each headings by referencing to company annual report)
CRS COMMITTEE OF ITC

CSR and Sustainability Committee

Mr. Y. C. Deveshwar Chairman
Mr. H. Bhargava Member
Mr. John Pulinthanam Member
Ms. Nirupama Rao Member
Ms. M. Shankar Member
Mr. David Simpson Member
Mr. R. K. Singhi Secretary to the Committee
 CSR CONTRIBUTION OF ITC

▶ Average Net Profit of the company for last three financial years: ` 14523.40 crores
▶ Prescribed CSR Expenditure (two percent of the amount as in item 3 above): ` 290.47 crores for FY
2017-18
▶ Details of CSR Spent during the financial year:
▶ The total CSR expenditure for the financial year 2017-18 stood at ` 290.98 crores.
Note: the prescribe CSR amount for the financial year 2017-18 was 290.47 but actual contribution made
290.98. So, company has satisfied the rule given by companies act, 2013 by contributing 2% of net profit for
social cause.
CSR CONTRIBUTION OF ITC FOR DIFFERENT SECTORS

▶ Health & Sanitation, Drinking Water and Eradication of Poverty

▶ Education, Vocational Training, Livestock Development and Livelihood Generation
▶ Environment Sustainability, Soil & Moisture Conservation and Social Forestry
▶ Women Empowerment
▶ Protection of national heritage, art and culture
▶ Agri Development

Note: specify the amount of contribution in each sectors by referencing annual report of the company.
STATISTICAL FIGURES
AWARDS AND RECOGNISION OF ITC
 A BRIEF NOTE CORPORATE GOVERNANCE (CG)

The framework of rules and practices by which a board of

directors ensures accountability, fairness, and transparency in a
company's relationship with its all stakeholders (financiers,
customers, management, employees, government, and the community). Corporate
Governance refers to the way a corporation is governed. It is the technique by
which companies are directed and managed. It means carrying the business as per
the stakeholders’ desires. It is actually conducted by the board of Directors and the
concerned committees for the company’s stakeholder’s benefit. It is all about
balancing individual and societal goals, as well as, economic and social goals.
Note: alteast 3 slides related to CG (Objectives, importance etc)
 CG PRACTICES OF ITC COMPANY

▶ THE COMPANY’S GOVERNANCE PHILOSOPHY

▶ Trusteeship
▶ Transparency
▶ Ethical Corporate Citizenship
▶ Empowerment
▶ Control
▶ THE GOVERNANCE STRUCTURE
▶ ROLES OF VARIOUS ENTITIES
Note:
1. Includes some important points of the all the main heading covering in CG report by refering annual report of the
company
2. Alteast 3 to 4 slides should be there are on CG (include meaning, important, merits, demerits, CG committee of the
company and some pictures or images related to CG)
CONCLUSION

ITC contributing more than 2% of his average profit in various sectors like education, health,
women empowerment, health and so on which helps in society as well as overall development
of the nation. ITC ranks 3rd in terms of contribution towards CSR in India.
ITC companies has good corporate governance practices like transparency, accountability,
fairness and working with the interest of both stakeholders and shareholders.
Thus, ITC Company is having good Corporate governance practices and contribution good
number of contribution for the economic development.