An introduction to ITC Ltd. Kolkata,India
Type
Public (BSE:ITC)
Founded
24 August 1910 Radha Bazar Lane, Kolkata, India
Headquarters
Kolkata, India
Key people
Yogesh Chander Deveshwar, Chairman, K. Vaidyanath, Director, Partho Chatterjee, CFO
Industry
Tobacco, foods, hotels, stationery, greeting cards
Products
Cigarettes, packaged food, hotels, apparel
Revenue
$4.75 billion USD (2006)
Employees
21,000 (2007)
Website
www.itcportal.com
ITC Limited which previously stood for Imperial Tobacco Company of India
turno ver of US $ 4.75 billion. It ranks third in preLimited, is an Indian conglomerate with a turnover ttax profit among among India's private sector corporations. corporations. The company has its registered registered office in Kolkata. The company company is currently headed by Yogesh Chander Deveshwar. It It employs employs over 20,000 people at more than 60 locations across India and is listed on Forbes 2000. The Training Centre of the company is in Munger, Bihar. ITC is also known as "Chatkal" (especially in Munger).
List of products & brands: ITC has a diversified presence in y
CIGARETTES : W. D. & H. O. Wills, Gold Flake, Navy Cut , Insignia, India Kings,
Classic Verve , Classic, Silk Cut , Scissors, Capstan, Berkeley, Bristol and Flake.
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HOTELS: ITC Welcome group Hotels, Palaces and Resorts is India's second largest
hotel chain with over 80 hotels. Based out of Hotels Division Headquarters at the ITC Green Centre in Gurgaon, ITC Welcome group is also the exclusive franchisee of The Luxury Collection brand of Starwood Hotels and Resorts in India.
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PAPERBOARDS & SPECIALTY PAPERS: ITC Bhadrachalam Paperboards Limited &
ITC Tribeni Tissues Division are now under one roof - Paper Boards and Specialty Papers
Division. There are 4 Units under one umbrella - Bhadrachalam, Tribeni, Bollarum and Kovai. ITC PSPD India's Largest Packaging Solution provider with In-Packaging & Printing Business: house film manufacturing capabillty. Multi-locational manufacturing facilities to cater to domestic and export requirements.Product Range includes Cartons (Folding & Fluted), Flexibles (Ree ls & Pouches), Shoulder Box, HL's & CBO, Printed Cork Tipping, Gaywraps. ITC PPB.
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AGRICULTURAL INDUSTRY: A gri-Business, Leaf Tobacco, Gold Ribbon, Blue
Ribbon, Aqua Kings, Aqua Bay, Aqua Feast and Peninsular.
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PACKAGED FOODS & CONFECTIONERY: Kitchens of India, Aashirvaad , Sunfeast ,
Mint-O, Candyman, Bingo Snacks.
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BRANDED APPAREL: Wills Lifestyle, John Players, Miss Players.
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TOILETRIES: E ssenza Di Wills, Fiama Di Wills, Superia, Vivel Di Wills, Vivel.
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EDUCATION & STATIONARY PRODUCTS: Ex pressions,Classmate, Paperkraft.
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INFORMATION TECHNOLOGY: ITC Infotech.
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SAFETY MATCHES: iKno, Mangaldeep, Va x Lit , Delite(Discontinued) and Aim Brands
acquired from Wimco (Western India Match Company): Ship , Homelite (Swedish Matches).
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INCENSE STICKS: Mangaldeep, Spriha,Yantra.
While ITC continues in its traditional businesses of Cigarettes, Hotels, Paperboards, Packag ing and Agri-Exports, it is gaining market share in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards. ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, is pursuing emerging oppo rtunities in Providing end-to-end IT solutions, including e-enabled services and business process o ut sourcing.
ITC's Agri-Business is India's second largest exporter of agricultural products. ITC is one of the India's biggest foreign exchange earners (US $ 2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. The company places computers with Internet access in rural farming villages; the eChoupals serve as both a social gathering place for exchange of information (choupal means gathering place in Hindi) and an e-commerce hub. What began as an effort to re-engineer the procurement process for soy, tobacco, wheat, shrimp, and other cropping systems in rural India has also created a highly profitable distribution and product design channel for the company an e-commerce platform that is also a low-cost fulfillment system focused on the needs o f rural India. The e-Choupal system has also catalyzed rural transformation that is helping to alleviat rural isolation, create more transparency for farmers, and improve t heir productivity and income.
Corporate philanthropy ITC E-choupal creatively leverages information technology to set up a meta market in favour of India's small and poo r farmers, who would otherwise continue to operate and transact in 'un-evolved' markets. As of July 2007, Sanjay Kant & Ritesh services, through 6400 Echoupal across 8 states, reach more than 4 million farmers in about 40,000 villages.
ITC
intends scaling up the initiative with 20,000 choupals and 700 saagars to reach 10 million farmers in 100,000 villages by 2010. Free access to Internet is also opening windows of
rural
India to the world at large. ITC e-choupal is now being regarded as a reliable delivery mechanism or resource development initiatives. Its potential is being tested through pilot projects in healthcare, educational services, water management and cattle health management with the help of several service providers including non-governmenta l organizations.
CSR ACTIVITIES: Environment ·
ITC has been µCarbon Positive¶ three years in a row (sequestering/storing twice the amount of CO2
than the Company emits). Water Positive¶ six years in a row (creating three times more Rainwater Harvesting potential than ITC's net consumption).
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Close to 100% solid waste recycling.
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All Environment, Health and Safety Management Systems in ITC conform to the best international standards.
Social ·
ITC's businesses generate livelihoods for over 5 million people.
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ITC's globally recognized e-Choupal initiative is the world's largest rural digital infrastructure benefiting over 4 million farming families.
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ITC's Social and Farm Forestry initiative has greened over 80,000 hectares creating an estimated
35 million person days of employment among the disadvantaged.
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ITC's Watershed Development Initiative brings precious water to nearly 35,000 hectares of
Drylands and moisture-stressed areas.
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ITC's Sustainable Community Development initiatives include women empowerment, supplementary education, integrated animal husbandry programmes.
Preserving National Heritage As a socially responsible corporate citizen, ITC endeavours to create value for the Indian Society in multiple ways, one of them being preservation of India's rich cultural heritage. ITC has made significant contribution to the promotion of Indian classical music, theatre, art and cuisine.
E-Choupal ITC¶s Agri Business Division, one of India¶s largest ex porters 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, characterized by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others µe-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 m ade 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 v irtuous cycle of higher productivity, higher incomes, 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.
ITC To Develop Infrastructure In Rural Schools ITC Limited plans to provide infrastructure facilities at select rural Government schools in the district under its ³Project Classmate´ ³ITC has undertaken this project as part of its corporate social responsibility´ Sanjay Sreenivas, Branch Manager, ITC Limited, said ³By the end of this financial year, at least 15 schools in the district will be covered under this project´ he added. A survey of nearly 50 schools conducted by ITC in Coimbatore revealed that most of them were in need of facilities such as girl¶s toilets, benches and desks, black board and play materials. Fifty-two schools had been identified in Mettupalayam and Karamadai blocks. The project had already started in about five schools.³The company will look at schools outside Coimbatore Corporation limits´, said P.A. Naresh, Chief Educational Officer, Coimbatore. ³Through this project, we aim to provide access to primary education and retain students in primary and middle schools´, Mr. Sreenivas said. Though the company had been involved in several social activities through its µproject classmate¶ it is focusing on education in a concerted manner, he asserted. The company had tied up with a Chennai based non-governmental organization (NGO), V-Excel, to carry out its activ ities in the district. Similarly, they had identified Malapuram district in Kerala for project classmate. A continuous impact assessment would also be done for the project. This was like a feedback to assess the progress of the project, Mr. Sreenivas explained. Several organizations had similar activities for schools. But they merely acted as facilitators. ³When corporate get in to such activities, they do it with their own resources´, Mr. Naresh said.ITC To Develop Infrastructure In Rural Schools.
CSR AWARDS CII-ITC Sustainability Award 2008CII-ITC Centre of Excellence for Sustainable Development The ceremony was held on 12th December 2008 as part of the 3rd Sustainability Summit: Asia 2008. Two NTPC Stations, Farakka and Faridabad have been awarded the CII ±ITC Sustainability Award 2008 in the category ³Certificate of Commendation for strong Commitment.´ Intel-AIM Corporate Responsibility Award Asian Forum on Corporate Social Responsibility The award was given during the two day conference of Asian Forum on CSR on 20th -21st November, 2008 in Singapore.
ITC Foods gets into CSR with the 'Sunfeast Hara Banao Campaign' On (23 December 2004 4:00 pm) MUMBAI: ITC in a corporate social endeavour has unveiled its environmental awareness programme 'Sunfeast Hara Banao Campaign'. The campaign had a registered participation of over 70,000 students from over 100 schools spread across Mumbai. The environmental campaign, which extended for a period of six (06) months culminated in an inter school project contest, which was inaugurated by Ravi Naware, ITC divisional chief executive foods business at 'The Club' in Andheri today.
The campaign essentially showcased the creativity of over 70,000 children between the age group of 11-15 years. The exhibits displayed by the participants were based on their learning's gained through various environmental awareness activities carried out as a part of the 'Sunfeast Hara Banao campaign'. Speaking on the occasion Naware said, 'We believe that corporate
social
Responsibility is not an externalized activity nor is it only philanthropy. It is an internal process reflecting the soul of the Company. Initiative such as 'Sunfeast Hara Banao Campaign' is oriented towards this governing philosophy'.
ITC Foods along with award winning environmentalist Sunjoy Monga, hav e designed this campaign which focuses at bringing to light factors deteriorating our environment. Over the last six months a detailed programme was undertaken orientating school children on topics such as: Reduction in usage of plastic bags: School children were given practical lessons on the disadvantages of plastic bags and the adversities f aced thereof (Plastic bags is one the leading damaging components of the environment), recycling of plastic to minimize usage of plastic bags.
Use of alternative materials: Step-by-step instruction in using alternate m aterial such as waste paper to a make paper bags instead of plastic bags
Encourage butterfly gardens: A team of experts educated and introduced children to the concept of 'Butterfly Gardens', wherein special plants are grown whereby creating a natural habitat f or butterflies to breed
Signature Drive: A pledge from people in support of Sunfeast Hara Banao Campaign for a better tomorrow. A total of about two million signatures have been obtained by the students as a part of the drive As recognition of their efforts, about 2000 participants have been presented gifts during the 'Sunfeast Hara Banao Campaign'. The winning schools in the inter-school project competition will recieve trophies, prizes and certificates.
ITC's e-Choupal wins µCorporate Social Responsibility Award 2004¶ Indian Tobacco Company (ITC) recently won t he 'Corporate Social Responsibility Award 2004' from The Energy and Resources Institute (TERI) for its e-Choupal initiative. The award is designed to encourage social responsibility processes within the corporate sector. ITC e-Choupal, an information technology-based intervention in rural India, has already received several national and international awards as a transformation model for rural India. Earlier, it has won the 'World business award ' instituted in support of the United
Nations' Millennium Development Goals and also the Wharton-Infosys 'Enterprise business transformation award 2004' for the Asia-Pacific region. The curriculum o f the Harvard Business School now includes a case study on the ITC e-Choupal movement and how it is transforming Indian agriculture.
AWARD ITC WINS GOLDEN PEACOCK GLOBAL FOR CSR ITC has won the `Golden Peacock Global Award for Corporate Social Responsibility (CSR) in Emerging Economies for 2005'. The Award was presented in London on May 12, 2005 by Dr Ola Ullsten, former Prime Minister of Sweden, who also headed the jury 13 May 2005 : ITC has won the `Golden Peacock Global Award for Corporate Social
Responsibility (CSR) in Emerging Economies for 2005'. The Award was presented in London on May 12, 2005 by Dr Ola Ullsten, former Prime Minister of Sweden, who also headed the jury. The Golden Peacock Global Award for CSR aims to stimulate organisations to rapidly accelerate the pace of stakeholder-oriented improvement processes. Its primary objective is to encourage competitiveness in corporate governance and corporate social responsibility. ITC received the award for two of its unique initiatives that are impactfully transforming lives and landscapes in rural India - ITC's e-Choupal and soc ial and farm forestry. ITC's e-Choupal empowers over 3.5 million farmers by enabling t hem to readily access crop-specific, customised and comprehensive information in their native village habitat and language. Vernacular websites relating to each agricultural crop that ITC deals in, created by the
Company, provide ready and real-time information to even marginal farmers on the
prevailing Indian and international prices and price trends for their crop, expert knowledge on best farming practices, and micro-level weather forecast. This significantly improves the farmer's decision-making ability, thereby helping him better align his agricultural produce to market demand, secure better quality, productivity and improved price discovery. The e-Choupal model
and movement helps aggregate
demand by creating a virtual producers' co-operative, thus
facilitating access to higher quality farm inputs at lower co sts for the farmer. ITC e-Choupal also creates a two-way direct marketing channel for rural India, eliminating 13 May 2005 : ITC has won the `Golden Peacock Global Award for Corporate Social Responsibility (CSR) in Emerging Economies for 2005'. The Award was presented in London on May 12, 2005 by Dr Ola Ullsten, former Prime Minister of Sweden, who also headed t he jury. The Golden Peacock Global Award for CSR aims to stimulate organisations to rapidly accelerate the pace of stakeholder-oriented improvement
processes. Its primary objective is to encourage competitiveness in corporate
governance and corporate social responsibility
ITC received the award for two of its unique
initiatives that are impactfully transforming lives and landscapes in rural India - ITC's e-Choupa l and social and farm forestry.
ITC's e-Choupal empowers over 3.5 million farmers by enabling them to readily access crop-specific, customised and comprehensive information in their native village habitat and language. Vernacular websites relating to each agricultural crop that ITC deals in, created by the Company, provide ready and real-time information to even marginal farmers on the prevailing Indian and international prices and price trends for their crop, expert knowledge on best farming practices, and micro-level weather forecast. This significantly improves the farmer's decision-making ability, thereby helping him better align his agricultural produce to market demand, secure better quality, productivity and improved price discovery. The e-Choupal model and movement helps aggregate demand by creating a virtual producers' co-operative, thus facilitating access to higher quality farm inputs at lower co sts for the farmer. ITC e-Choupal also creates a two-way direct marketing channel for rural India, eliminating.
A N A LYSIS
F rom
the given CSR of µImperial Tabacoo Company¶ of India Limited (ITC), we conclude that ITC Ltd is well developed company of India. ITC has a diversified presence in cigarettes, hotels, paper -brand, specialty papers, agriculture industry, packed food and confectionery, branded appareal, toiletries, Education and stationary products, information technology, safety matches and incense sticks etc. ITC serves The people through these products and brands.ITC's businesses generate livelihoods for over many million people. ITC has made significant contribution to the promotion of Indian classical music, theatre, art and cuisine. ITC is helping many poor children who do not go to school. ITC has won the `Golden Peacock Global Award for Corporate Social Responsibility (CSR) in Emerging Economies for 2005'. The Award was presented in London on May12, 2005 by Dr. Ola Ullsten, former Prime Minister of Sweden, who also headed the jury. ITC play very important role in reformation in tourism, education, agriculture and also in information technology. But on the other side It is also manufacturing cigarettes which affect our youth genration. The production of cigarettes is not in the favour of welfare of the sociaty.
UNIVERSITY SCHOOL OF MANAGEMENT
KUK
AN ASSIGNMENT ON
CORPORATE SOCIAL RESPONSEBILITY O F µITC¶ LTD, INDIA
Submitted to: Mr. Ajay Solkhe F aculty University school of management kuk
Submitteted by: Salim Deen Satter MBA(G) Pre.- A Roll No. -78
DETAILED CONTENTS S.No.
Page No.
(1)
What is CSR?
(2)
Introduction to ITC, Ltd.
1
(3)
List of products and brands
2
(4)
Corporate philanthropy
4
(5)
CSR activities
4
(6)
ITC infrasturcture in RuralSchool
6
(7)
CSR Awards
7
(8)
ITC¶s e-choupal
8
(9)
µGolden Peacock Global¶ for SCR
9
(10)
Analysis
11
What is CSR?
CSR stands for µCorporate Social Responsebility¶. Social responsibility is important in the case of business also y
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Social responsibility of business refers to all such duties and obligation of the business directed towards the welfare of the society. All the activity of the business should be such that it will not harm ,rather they will protect and contribute to the interest of society.
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. y y y y y
P ublic
Image G overnment Regulation Survival and G rowth E mployee satisfaction C onsumer Awareness
Now, in this assignment, CSR of ITC (Imperial Tabacoo Company) Ltd. has been discussed on the next pages. F irst of all, we study the brief discussion on the introduction of the company, such as products and brands, main branches, key persons, position and other activities of that company. After that corporate social responsebility is discussed.
