A PROJECT REPORT ON

CORPORATE SOCIAL RESPONSIBILITY OF THE ITC GROUP

SUBMITTED BY
Nikhil Gade
M21017
M.M.S.
Finance
Batch: 2021 – 2023

Project Guide
Prof. Nimit Sheth

SYDENHAM INSTITUTE OF MANAGEMENT STUDIES, RESEARCH

AND ENTREPRENEURSHIP EDUCATION (SIMSREE)
 CORPORATE SOCIAL RESPONSIBILITY OF THE ITC GROUP

This project report in the area of Social Relevance based on the in-depth study of the
project theme is submitted in May 2023 to Sydenham Institute of Management
Studies, Research and Entrepreneurship Education in partial fulfilment of the
requirements for the award of the two years Master in Management Studies (MMS),
affiliated to Mumbai University.

Submitted by
Name: Nikhil Gade Roll No: M21017

Through

Name of the Guide: Prof. Nimit Sheth

ii
 ACKNOWLEDGEMENT

It has always been my sincere desire as a management student to get an opportunity to

express my views, skills, attitude and talent in which I am proficient. A project is one such
avenue through which a student who aspires to be a future manager does something creative.
This project has given me the chance to get in touch with the practical aspects of
management.
I am extremely grateful to the University of Mumbai for having prescribed this project work
as part of the academic requirement in the Master of Management (MMS) course.
I wish to appreciate the management of Sydenham Institute of Management Studies,
Research and Entrepreneurship Education (SIMSREE) for providing all the required
facilities
I also wish to thank my Project Guide, Prof. Nimit Sheth, for guiding me throughout the
project and without whose support; the project may not have taken shape.
I also appreciate all the support provided by the library staff and the teaching and supporting
staff of Sydenham Institute of Management Studies, Research and Entrepreneurship
Education (SIMSREE) for providing all the necessary academic content and resources to
enable the completion of my project.
Finally, I thank all my friends and family members who have directly or indirectly helped
me towards the completion of this project.

iii
 EXECUTIVE SUMMARY

Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship
or responsible business) is a form of corporate self-regulation integrated into a business
model. CSR policy functions as a self-regulatory mechanism whereby a business monitors
and ensures its active compliance with the spirit of the law, ethical standards and national or
international norms. Business houses and corporate have been taking up social welfare
activities from time to time.
ITC is one of India's foremost private sector companies with a market capitalisation of over
US $ 30 billion and a turnover of US $ 6 billion. ITC has a diversified presence in
Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, 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, Paperboards, 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."

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 TABLE OF CONTENTS

Chapter No. Name of the concept Page No.

Introduction 1

I Research Objective 2

Research Methodology 2

Social Responsibility 3

II Social Values & Business Ethics 5

Responsibility towards Stakeholders 6

III Contribution of the ITC Group 10

IV Conclusion 22

V Bibliography 23

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 CHAPTER I – Introduction & Research Methodology

Introduction
Corporate Social Responsibility or CSR has been defined by Lord Holme and Richard Watts
in The World Business Council for Sustainable Development’s publication „Making Good
Business Sense‟ as “…the continuing commitment by business to behave ethically and
contribute to economic development while improving the quality of life of the workforce and
their families as well as the local community and society at large". CSR is one of the newest
management strategies where companies try to create a positive impact on society while
doing business. There is no clear-cut definition of what CSR comprises. Every company has
different CSR objectives though the main motive is the same. All companies have a two
point agenda- to improve qualitatively (the management of people and processes) and
quantitatively (the impact on society). The second is as important as the first and stake
holders of every company are increasingly taking an interest in “the outer circle”-the
activities of the company and how these are impacting the environment and society.
Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship,
social performance, or sustainable responsible business) is a form of corporate self-
regulation integrated into a business model. CSR policy functions as a built-in, self-
regulating mechanism whereby business monitors and ensures its active compliance with the
spirit of the law, ethical standards, and international norms. The goal of CSR is to embrace
responsibility for the company's actions and encourage a positive impact through its
activities on the environment, consumers, employees, communities, stakeholders and all
other members of the public sphere.
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. ITC is
therefore committed to creating larger 'stakeholder value' by aligning its performance to
these Triple Bottom Line objectives. As an Indian enterprise, ITC believes that this approach
can unleash strong drivers of growth to make it more inclusive and equitable for even the
most marginalized sections of society, through the creation of sustainable livelihoods, and to
ensure long-term business sustainability and competitiveness.

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Research Objectives

 To study what is social responsibility of business

 To study the concept of social responsibility
 To study the importance of CSR to organization
 To understand the various CSR activities conducted by ITC Group

Research Methodology

Secondary data is the data already collected by someone else. This data is not especially
collected to solve present or specific problem. The information is relevant and can be used for
our purpose.

2
 CHAPTER II – Why should business be socially responsible?

Social responsibility is a voluntary effort on the part of business to take various steps to
satisfy the expectation of the different interest groups. As you have already learnt, the
interest groups may be owners, investors, employees, consumers, government and society or
community. But the question arises, why businesses should come forward and be responsible
towards these interest groups. Let us consider the following points:
Public Image - The activities of business towards the welfare of the society earn goodwill
and reputation for the business. The earnings of business also depend upon the public image
of its activities. People prefer to buy products of a company that engages itself in various
social welfare programmes. Again, good public image also attracts honest and competent
employees to work with such employers.

Government Regulation - To avoid government regulations businessmen should discharge

their duties voluntarily. For example, if any business firm pollutes the environment it will
naturally come under strict government regulation, which may ultimately force the firm to
close down its business. Instead, the business firm should engage itself in maintaining a
pollution free environment.

Survival and Growth -Every business is a part of the society. So for its survival and
growth, support from the society is very much essential. Business utilizes the available
resources like power, water, land, roads, etc. of the society. So it should be the responsibility
of every business to spend a part of its profit for the welfare of the society.

Employee satisfaction - Besides getting good salary and working in a healthy atmosphere,
employees also expect other facilities like proper accommodation, transportation, education
and training. The employers should try to fulfil all the expectation of the employees because
employee satisfaction is directly related to productivity and it is also required for the long-
term prosperity of the organisation. For example, if business spends money on training of the
employees, it will have more efficient people to work and thus, earn more profit.

Consumer Awareness - Now-a-days consumers have become very conscious about their
rights. They protest against the supply of inferior and harmful products by forming different
groups. This has made it obligatory for the business to protect the interest of the consumers
by providing quality products at the most competitive price

To be loyal to everyone: A business should not work for the benefit of the
owners/shareholders alone. The participation of the employees, the customers, the suppliers
and the Government in the activities of a business is more than the participation of the
owners. The business, therefore, has the primary duty to serve these different groups apart

3
from satisfying the owners.

To compensate adverse effects: The activities of a business do have certain adverse effects
on the society. For example, the production process may pollute the environment. There may
be air as well as noise pollution due to industrial activity in a particular place. Improper
treatment of wastes and effluents may, sometimes, produce foul smell that people living
nearby cannot bear. There is also scope for water contamination. The business, therefore, has
the responsibility to adequately compensate the society for all these adverse effects.

To secure goodwill: It is also possible for a business to secure goodwill by being socially
responsible. By offering good quality products at affordable prices and by not indulging in
antisocial activities like adulteration. Black-marketing, etc., a business organization will be
able to secure the goodwill of its customers.

To behave as a good citizen: Like any individual who is expected to behave as a good
citizen by obeying the laws of the country, the business as a corporate citizen also has to
abide by the laws of the nation. The businessman shall pay his tax dues promptly and shall
avoid doing anything that is forbidden by law.

To recognize the dignity of labour: No business should treat labour as a commodity that
can be purchased for a price. The employees, who exert physically as well as mentally for the
betterment of the business, are as important as the owners are. The employer, therefore, has
the responsibility to compensate the employees adequately for their labour by providing
monetary as well as non-monetary benefits.

To have healthy competition: The competition among businessmen, belonging to the same
trade or industry should be healthy. No business should adopt unfair means, e.g., talking ill of
the competitors‟ products, in order to draw the customers‟ attention.

4
 Social Values & Business Ethics

Every society generally views certain activities, conduct and behaviour of its members to be
undesirable or harmful to others. Similarly, desirable acts and conduct of people are
recognized and appreciated in society. Social values refer to the general recognition in society
about which acts are good and desirable on the part of people and which acts are not. In
relation to business, social values of business may indicate:

1. The characteristics of good business;

2. Objectives which are desirable for business to follow; and

3. The manner in which business activities should be conducted in the interest of

society. For example, we consider it bad, if any business indulges itself in selling
adulterated goods or charging higher price or polluting the environment. Thus, social
values of the business form the base for social responsibilities.

Ethics refers to conduct and activities of people based on moral principles. Honesty,
truthfulness, compassion, sympathy, feeling of brotherhood etc. are considered ethical.
Business can also be guided by certain moral principles say, running the business without
adopting unfair practices, being honest and truthful about quality of goods, charging fair
prices, abiding to laws, paying taxes, duties and fees to the government honestly. The basic
question underlying business ethics is whether business should aim at earning profit by any
means? Obviously, not. Thus, businessmen should charge only fair price for the goods and
services supplied, never sell adulterated products as pure. Indeed business ethics suggest
certain principles to conduct business so as to be morally justified. Just like social values,
business ethics also play a major role while fulfilling social responsibilities.

Business ethics compromises of all these values and principles and helps in guiding the
behaviour in the organizations. Businesses should have a balance between the needs of the
stakeholders and their desire to make profits. While maintaining these balances, many times
businesses require to do trade-offs. To combat such scenarios, rules and principles are formed
in the organization. This ensures that businesses gain money without affecting the individuals
or society as a whole. The ethics involved in the businesses reflect the philosophy of that
organization.

5
 Responsibility of Business towards different Stakeholders

After getting some idea about the concept and importance of social responsibility of business
let us look into the various responsibilities that a business has towards different groups with
whom it interacts. The business generally interacts with owners, investors, employees,
suppliers, customers, competitors, government and society. They are called as interest groups
because by each and every activity of business, the interest of these groups is affected directly
or indirectly.

1. Responsibility towards owners

Owners are the persons who own the business. They contribute capital and bear the business
risks. The primary responsibilities of business towards its owners are to:
 Run the business efficiently
 Proper utilization of capital and other resources.
 Growth and appreciation of capital.
 Regular and fair return on capital invested

2. Responsibility towards investors

Investors are those who provide finance by way of investment in debentures, bonds, deposits
etc. Banks, financial institutions, and investing public are all included in this category. The
responsibilities of business towards its investors are:
 Ensuring safety of their investment,
 Regular payment of interest.
 Timely repayment of principal amount

3. Responsibility towards employees

Business needs employees or workers to work for it. These employees put their best effort
for the benefit of the business. So it is the prime responsibility of every business to take care
of the interest of their employees. If the employees are satisfied and efficient, then the only
business can be successful. The responsibilities of business towards its employees include:
 Timely and regular payment of wages and salaries.
 Proper working conditions and welfare amenities.
 Opportunity for better career prospects.
 Job security as well as social security like facilities of provident fund,
group insurance, pension, retirement benefits, etc.
 Better living conditions like housing, transport, canteen, crèches etc.
 Timely training and development

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 4. Responsibility towards suppliers
Suppliers are businessmen who supply raw materials and other items required by
manufacturers and traders. Certain suppliers, called distributors, supply finished products to
the consumers. The responsibilities of business towards these suppliers are: a. giving regular
orders for purchase of goods.
 Dealing on fair terms and conditions.
 Availing reasonable credit period.
 Timely payment of dues.

5. Responsibility towards customers

No business can survive without the support of customers. As a part of the responsibility of
business towards them the business should provide the following facilities:
 Products and services must be able to take care of the needs of the customers.
 Products and services must be qualitative
 There must be regularity in supply of goods and services
 Price of the goods and services should be reasonable and affordable.
 All the advantages and disadvantages of the product as well as procedure to use
the products must be informed do the customers.
 There must be proper after-sales service.
 Grievances of the consumers, if any, must be settled quickly.
 Unfair means like under weighing the product, adulteration, etc. must be avoided

6. Responsibility towards competitors

Competitors are the other businessmen or organizations involved in a similar type of
business. Existence of competition helps the business in becoming more dynamic and
innovative so as to make itself better than its competitors. It also sometimes encourages the
business to indulge in negative activities like resorting to unfair trade practices. The
responsibilities of business towards its competitors are:
 Not to offer exceptionally high sales commission to distributers, agents etc.
 Not to offer to customers heavy discounts and /or free products in every sale.
 Not to defame competitors through false or ambiguous advertisements.

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 7. Responsibility towards government
Business activities are governed by the rules and regulations framed by the government. The
various responsibilities of business towards government are:
 Setting up units as per guidelines of government
 Payment of fees, duties and taxes regularly as well as honestly.
 Not to indulge in monopolistic and restrictive trade practices.
 Conforming to pollution control norms set up by government.
 Not to indulge in corruption through bribing and other unlawful activities.

8. Responsibility towards society

A society consists of individuals, groups, organizations, families etc. They all are the
members of the society. They interact with each other and are also dependent on each other
in almost all activities. There exists a relationship among them, which may be direct or
indirect. Business, being a part of the society, also maintains its relationship with all other
members of the society. Thus, it has certain responsibilities towards society, which may be as
follows:

 Help the weaker and backward sections of the society

 Preserve and promote social and cultural values
 Generate employment
 Protect the environment
 Conserve natural resources and wildlife
 Promote sports and culture
 Provide assistance in the field of developmental research on education,
medical science, technology etc.

8
Social Values and Business Ethics
Every society generally views certain activities, conduct and behaviour of its members to be
undesirable or harmful to others. Similarly, desirable acts and conduct of people are
recognized and appreciated in society. Social values refer to the general recognition in society
about which acts are good and desirable on the part of people and which acts are not. In
relation to business, social values of business may indicate:
 The characteristics of good business;
 Objectives which are desirable for business to follow; and
 The manner in which business activities should be conducted in the interest of
society. For example, we consider it bad, if any business indulges itself in selling
adulterated goods or charging higher price or polluting the environment. Thus, social
values of the business form the base for social responsibilities.

Ethics refers to conduct and activities of people based on moral principles. Honesty,
truthfulness, compassion, sympathy, feeling of brotherhood etc. are considered ethical.
Business can also be guided by certain moral principles say, running the business without
adopting unfair practices, being honest and truthful about quality of goods, charging fair
prices, abiding to laws, paying taxes, duties and fees to the government honestly. The basic
question underlying business ethics is whether business should aim at earning profit by any
means? Obviously, not. Thus, businessmen should charge only fair price for the goods and
services supplied, never sell adulterated products as pure. Indeed business ethics suggest
certain principles to conduct business so as to be morally justified. Just like social values,
business ethics also play a major role while fulfilling social responsibilities.

9
 CHAPTER III – Contribution of the ITC Group

Philosophy
Inspired by a vision to serve a larger national purpose and abide with the strong value of
Trusteeship, ITC has crafted innovative business models to create larger societal capital
while simultaneously delivering long term shareholder value. This overarching aspiration to
create meaningful societal value is manifest in ITC's strategy to enhance the competitiveness
of value chains of which it is a part. It is therefore a conscious strategy to design and
implement Social Investments / CSR programmes in the context of ITC's businesses, by
enriching value chains that encompass the most disadvantaged sections of society, especially
those residing in rural India, through economic empowerment based on grass-roots capacity
building.
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. ITC is
therefore committed to creating larger 'stakeholder value' by aligning its performance to
these Triple Bottom Line objectives. As an Indian enterprise, ITC believes that this approach
can unleash strong drivers of growth to make it more inclusive and equitable for even the
most marginalized sections of society, through the creation of sustainable livelihoods, and to
ensure long-term business sustainability and competitiveness.
Preamble
It is the Company's intent to make a positive difference to society. It recognises that it cannot
do it all; so that if there are choices to be made, bias will be towards doing fewer projects
with greater impact and focusing initiatives on communities in which the Company lives and
operates. Policy
It is ITC's policy:
1. To pursue a corporate strategy that enables realisation of the twin goals of
shareholder value enhancement and societal value creation in a mutually reinforcing and
synergistic manner.
2. To align and integrate Social Investments / CSR programmes with the business value
chains of your Company and make them outcome oriented. To support creation of on and off-
farm sustainable livelihood sources thereby empowering stakeholder communities to
conserve and manage their resources.
3. To implement Social Investments / CSR programmes primarily in the economic
vicinity of your Company's operations with a view to ensuring the long term sustainability
of such interventions.
4. To contribute to sustainable development in areas of strategic interest through
initiatives designed in a manner that addresses the challenges faced by the Indian society
especially in rural India.
5. To collaborate with communities and institutions to contribute to the national
mission of eradicating poverty and hunger, especially in rural areas, through agricultural
10
research and

11
knowledge sharing, superior farm and agro-extension practices, soil and moisture
conservation and watershed management, conservation and development of forest resources,
empowering women economically, supplementing primary education and participating in
rural capacity building programmes and such other initiatives.
6. To align your Company's operations with the national objective of inclusive growth
and employment generation by leveraging your Company's diversified portfolio,
manufacturing bases, supply chains and distribution channels, to infuse an appropriate mix of
capital and technology to further social business initiatives such as e-Choupal, animal
husbandry, agarbatti rolling etc. and support organisations / institutions engaged in building
linkages with local, regional and urban communities and markets.
7. To sustain and continuously improve standards of Environment, Health and
Safety through the collective endeavour of your Company and its employees at all levels
towards attaining world class standards and support other programmes and initiatives,
internal or external, for the prevention of illness and combating of diseases as may be
considered appropriate from time to time.
8. To encourage the development of human capital of the Nation by expanding human
capabilities through skills development, vocational training etc. and by promoting
excellence in identified cultural fields.

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E CHOUPAL

The Big Picture:

ITC's Agri Business Division, one of India's largest exporters of agricultural commodities,
has conceived e-Choupal as a more efficient supply chain aimed at delivering value to its
customers around the world on a sustainable basis.
The e-Choupal model has been specifically designed to tackle the challenges posed by the
unique features of Indian agriculture, characterised by fragmented farms, weak infrastructure
and the involvement of numerous intermediaries, among others.
The Value Chain - Farm to Factory Gate:

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'e-Choupal' also unshackles the potential of Indian farmer who has been trapped in a vicious
cycle of low risk taking ability > low investment > low productivity > weak market
orientation > low value addition > low margin > low risk taking ability. This made him and
Indian agribusiness sector globally uncompetitive, despite rich & abundant natural resources.
Such a market-led business model can enhance the competitiveness of Indian agriculture and
trigger a virtuous cycle of higher productivity, higher incomes, and enlarged capacity for
farmer risk management, larger investments and higher quality and productivity.
Further, a growth in rural incomes will also unleash the latent demand for industrial goods so
necessary for the continued growth of the Indian economy. This will create another virtuous
cycle propelling the economy into a higher growth trajectory.
The Model in Action:
Appreciating the imperative of intermediaries in the Indian context, 'e-Choupal' leverages
Information Technology to virtually cluster all the value chain participants, delivering
the same benefits as vertical integration does in mature agricultural economies like the
USA.
'e-Choupal' makes use of the physical transmission capabilities of current intermediaries -
aggregation, logistics, counter-party risk and bridge financing -while disintermediating them
from the chain of information flow and market signals.

14
With a judicious blend of click & mortar capabilities, village internet kiosks managed by
farmers - called sanchalaks - themselves, enable the agricultural community access ready
information in their local language on the weather & market prices, disseminate knowledge
on scientific farm practices & risk management, facilitate the sale of farm inputs (now with
embedded knowledge) and purchase farm produce from the farmers' doorsteps (decision
making is now information based).
Real-time information and customised knowledge provided by 'e-Choupal' enhance the
ability of farmers to take decisions and align their farm output with market demand and
secure quality & productivity. The aggregation of the demand for farm inputs from
individual farmers gives them access to high quality inputs from established and reputed
manufacturers at fair prices. As a direct marketing channel, virtually linked to the 'mandi'
system for price discovery, 'e-Choupal' eliminates wasteful intermediation and multiple
handling. Thereby it significantly reduces transaction costs.
'e-Choupal' ensures world-class quality in delivering all these goods & services through
several product / service specific partnerships with the leaders in the respective fields, in
addition to ITC's own expertise.

15
Social & Farm Forestry

ITC procures wood pulp for its Paper and Paperboards business from renewable plantations
cultivated by tribals and farmers on their private wastelands. ITC invested in extensive R&D
to create clonal saplings which apart from being disease resistant, grow much faster and in
harsher conditions. A large number of tribals and marginal farmers have benefited by
growing these pulpwood saplings on their private wastelands. ITC‟s paperboards business is
a willing buyer of their produce, whilst the growers are free to sell to the highest bidder in
the open market.
ITC could have taken the easier route by importing pulp, rather than a more difficult route of
mobilising tribals and marginal farmers which involved long gestation and substantial
investment exposure. However, the adoption of this more challenging route has not only
created a source of sustainable livelihoods for a large number of disadvantaged sections of
society, but has also brought a multiplicity of benefits by creating a large green cover that
contributes significantly to groundwater recharge, soil conservation and carbon sequestration.
Recently, ITC‟s social forestry project in Andhra Pradesh was registered under the Clean
Development Mechanism of the United Nations Framework
Convention on Climate Change. The carbon credits earned will also be shared with the tribals
and farmers, enabling them to participate in an international carbon market mechanism

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 Integrated Watershed Development
Water resource management is one of the most critical challenges facing the planet,
especially for countries like India where agriculture is the livelihood for a major proportion
of the population. Most are small farmers who depend on the yearly monsoon to grow crops.
Volatile weather as a result of climate change is simply adding to their heavy burden - poor
soils, lack of access to information and technology, inadequate infrastructure, inability to get
credit from formal channels - keep these farmers trapped in poverty and they are among
India's poorest, most vulnerable communities.
Recognising the vital role that irrigation and water play in the rural economy, ITC supports
the creation of watershed projects in water-stressed areas, providing precious water resources
for agriculture, rural communities and livestock. Based on a participatory approach that
involves local communities, the programme facilitates building, reviving and maintaining
water harvesting structures as well as management of water resources to reverse land
degradation, provide critical irrigation and increase agricultural productivity

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Women’s Empowerment
Women, especially poor women in rural areas, remain the invisible backbone of their
households and communities. However, their many disadvantages - poor education, limited
opportunities for skills training, few property rights, and restrictive social norms - mean low-
paying labour work is often their only option. Whatever they earn is almost always spent on
improving the quality of life of their families.
ITC‟s initiatives provide sustainable economic opportunities to poor women in rural areas by
assisting them to form microcredit self-help groups that enable them to build up small
savings and finance self-employment and micro-enterprises. A large number of women earn
income as self-employed workers or as partners in microenterprises. The programme has
demonstrated that extra income in the hands of women leads to significant and positive
changes in human development since it is spent largely on children’s education, health and
nutrition, and is a catalyst for gendering development.

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Livestock Development
While agriculture is the backbone of India's rural economy, livestock rearing is also a vital
contributor. Almost all rural households own livestock - even landless families will own one
or two cows or buffaloes. For the poorest among these families, livestock is often their only
sustained source of income. However, in general milk yields are extremely low a result of
poor nutrition and genetic quality.
ITC's Livestock Development Programme provides artificial insemination services to
produce calves with significantly higher milk yields - producing enough surplus that can be
sold. Cattle Development Centres in villages provide services right at the owner's doorstep
which also include veterinary support to ensure proper health and nutrition.
Having surplus milk for sale brings in extra income, especially useful for poor households.
With the additional income and experience, families can invest increasing their herds, paving
the way for dairying to become a viable livelihood option.
Cattle-owners are encouraged to join together and form milk marketing societies so that they
can reduce logistic costs and connect to larger markets to get higher prices. In selected areas,
ITC also sets up modern milk collection centres where scientific testing ensures better prices
for better quality, motivating owners to invest more in cattle health and nutrition.

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Primary Education

A major obstacle that prevents poor children from progressing to a better future is the
fact that they cannot get a decent education, starting right from the primary level.
ITC's Programme aims to create enabling conditions so that more underprivileged
children stay in school and complete their schooling, and also to improve learning
outcomes so that they have better skills and abilities.
To create an atmosphere conducive to learning, the Programme provides infrastructural
support to government primary schools - desks and chairs, lights and fans, classrooms and
other structural improvements, textbooks and notebooks, sports kits, etc. Sanitation
infrastructure is a top priority - separate toilets for boys and girls, drinking water and
handwashing stations, etc. - are backed by a proactive approach to developing hygienic habits
among children.
To make learning more stimulating, the Programme partners with education providers to
introduce modern teaching and assessment methods that help children to achieve higher
learning levels and better results. For example, Read India Plus in partnership with Pratham,
one of India's leading NGOs in the education field - focuses on enhancing reading and
mathematical ability among 6 - 14 year olds. Supplementary Learning Centres in villages
provide coaching to help weak students keep up in school and drop-outs to return to the
school system.

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Health and Sanitation

Ending open defecation and ensuring all citizens have access to proper toilet facilities is a top
priority on India's national agenda. However, building toilets must go hand-in-hand with
strategies to encourage people, especially in rural India, to change age-old habits and use the
toilets regularly and in a hygienic way.
ITC's Health & Sanitation Programme aims to build awareness on the critical link between
sanitation and health so that families come forward with the interest in building toilets for
themselves. For maximum impact, campaigns are customised for different groups - men,
women, children, community leaders, etc.
Community groups - generally women's self-help groups - are formed and they carry out
most of the activities: identifying potential households, providing information and building
awareness, managing funds, supervising construction, following up on usage. Families get a
loan through the Group to build the toilet but must pay part of the cost. Their financial stake
fosters a strong sense of ownership and encourages regular usage.

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An Exemplary Contribution to the Triple Bottom Line
A growing portfolio of businesses encompassing FMCG, Paperboards & Packaging, Agri &
Foods Business, Hotels and Information Technology.
 A turnover of over US $ 7 billion and a market capitalisation of nearly US $
35 billion.
 Total Shareholder Returns, measured in terms of increase in market capitalisation and
dividends, grew at a compound rate of 26% per annum over the last 15 years.
 The new FMCG businesses support the competitiveness, technology up gradation and
market reach of over 150 Small and Medium Enterprises (SMEs).
 ITC Group provides direct employment to more than 29,000 people.
 ITC’s businesses generate livelihoods for over 5 million people.
 ITC’s globally recognised e-Choupal initiative is the world’s largest rural
digital infrastructure benefiting over 4 million farmers.
 ITC’s Social and Farm Forestry initiative has greened over 1,25,000 hectares,
creating over 56 million person-days of employment among the disadvantaged.
 ITC’s Watershed Development initiative brings precious water to over 90,000
hectares of drylands and moisture-stressed areas.
 ITC’s Sustainable Community Development initiatives include women’s
empowerment, supplementary education, integrated animal husbandry
programmes.

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CHAPTER IV – CONCLUSION

Organizations are coming to realize the bottom-line benefits of incorporating sustainability

into their DNA. It’s beneficial for attraction and retention and it’s the right thing to do. HR is
a key organizational leader and can take the lead or partner with other executives to work
cross functionally to integrate CSR objectives into how business gets conducted. HR
practitioners can act as translators of the organization’s CSR commitment vertically and
horizontally across departments. Most will find upon reading this report that they have many
good practices underway. Many will find they have a new structure for their thinking they
can apply practically in the workplace. Some will believe the current economic downturn
will put these ideas on the backburner until the economy rebounds, while others think that
organizations which abandon their CSR integration in the downturn will lose ground and
breed cynicism in brighter times. Regardless of the point of view, all agree that effective HR
leadership on CSR integration requires Board, CEO and executive commitment to be
successful. Indeed, the roadmap is predicated on the assumption of this top level
commitment. However, more and more organizations are committing to sustainability and to
embedding CSR into “all that we do”, so it is hoped the 11 steps provide some guidance as to
how to go about doing this. The firm of the future is expected to have undergone significant
transformation such that CSR no longer becomes managed as a separate deliverable, but is
part of the experience of being an employee in an organization that lives its values. For
human resource professionals embarking on CSR or deepening their CSR experience, this
roadmap can help them understand their role in sustainability and CSR and how they can
foster an environment that embeds a CSR ethic in “the way we do business around here”.
The organizations abide their social responsibilities not only with government pressure it is
also because of their social values and goodwill which is created by more and more
involvement in these activities that makes a positive perception of the business organization
in the minds of people which influences their preference.

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Bibliography

Websites
www.google.co.in
en.wikipedia.org
www.itcportal.com

Books
Business organization – Ankur Chhabra
Business studies –T.N. Chhabra

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Student’s Profile

Name – Nikhil Gade

Program – Master in Management Studies (M.M.S.)
Qualification – Bachelor in Engineering (B.E.)

Phone +91 8097867520

Email – nikhilgade.2123@simsree.org

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