Group O2

Background • ITC Ltd. is the leading tobacco manufacturer in India • Market share of over 75% • Tremendous growth potential in the industry • Highly regulated industry • Diversification into other sectors to lower emphasis on tobacco business • The company is aiming to achieve a triple bottom line performance .

Money spinner • The industry contributed over 70 billion rupees to government earnings • Rs. 3383 crore worth of exports • Provides employment to 10 million people • Tremendous growth potential .

000 people in India every year 2% of the people were inclined to quit smoking According to Indian government tobacco consumption killed about 0.4 million people died prematurely owing to tobacco related illness Men smoking BIDIS lost 6 years of life .Women smoking BIDIS lost 8 years Men smoking Cigarettes lost 10 years .00. 8.8% of all global deaths and 4.2% of disabilities due to         tobacco 5.Health Hazard  In 2010.9 million people every year. .Non-educated individuals having low standard of index were more likely to consume tobacco NATIONAL THREAT 70% of tobacco smoked in India in the form of BIDIS BIDIS killed 6.

Participants • ITC and other tobacco manufacturers • The consumers and affected non users • The government • Farmers and dependent labour • Retailers and sellers .

Ethical dilemma • ITC’s primary source of income comes from tobacco • Income from other sources contributes to less than 25% of the revenue • Considerable emphasis on the government to act • Altruism • Utilitarianism • Pragmatic ethics .

 Utilitarian View :Always act to produce the greatest possible balance of good over bad for everyone affected by our action  Consequentialism : The consequences of one's conduct are the ultimate basis for any judgment about the rightness of that conduct. .  Ethical Altruism: One has an obligation to pursue the interests of others – one may even be required to sacrifice one’s own interests for the welfare of others.Definitions  Ethical Egoism: One has an obligation to pursue solely what is best for oneself.

Triple Bottom Line .ITC .

environmental and social. 2. How to achieve sustainable growth without affecting the future generation The triple bottom line captures an expanded spectrum of values and criteria for measuring organizational success: economic.Ethical Altruism ITC grew more sensitive towards : 1.000 people . Provides employment to more than 28. How important it is to look beyond the objective of wealth maximization 3. Economic perspective-ITC 1. food business to hotels and Information technology sectors. Growing portfolio spanning from the FMCG. agriculture. Impact of operations on the environment 2. A remarkable turn over of US $6 billion and a market capitalization of over US $30 billion 3.

Environmental perspective Carbon positive by storing twice the amount emitted for 5 years in a row 2. . Water positive by harvesting three times the water consumed for 8 consecutive ye 3. 31% of the energy consumed generated from the renewable resources 4. Best green building awards for ITC royal gardenia &ITC green centre 1.

. supplementary education and integrated animal husbandry also initiated. E-Choupal benefitted over 4 million farmers 3.Social Perspective Generates direct and indirect employment to over 5 million people 2. 1. Programs for women’s empowerment. 4. Greened over 107000 hec of land and its watershed initiatives helped provide water to 54000 hec of dry lands.

and the receivers of the taxes placed on the product.5 million a year expected to die. Implications Relatively small number of total people benefit when compared to the .  Good consequence : Happiness or pleasure. and addictions to tobacco. farmers. deaths.Theory of Utilitarianism  Utilitarian View Always act to produce the greatest possible balance of good over bad for everyone affected by our action.  Bad consequence : Millions of people dying & affected by the illnesses. because 5 million die in a year right now." . marketing. employees. executives. BOTTOM LINE More people become unhappy when encountering cigarettes and tobacco than become happy. and the countless millions who become sick.  People Positively affected in the tobacco industry were lawyers.

Ethical Theories CONCERN FOR ITC VS CONCERN FOR SOCIETY/GOVERNMENT .

hence ITC and the government should focus on it to reduce impact of their actions .Recommendations • Pragmatic approach to ethics should be adopted • ITC should look to sell only low nicotine cigarettes • Taxes on cigarettes should be lowered to prevent people from migrating to more harmful forms of tobacco • Education drastically reduces the incidence of death in addicts.

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