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Corporate Social Responsibility-NMIMS

Corporate Social Responsibility-NMIMS

ITC Limited Corporate Citizenship

ITC Limited (ITC) is one of India's foremost private sector companies having a diverse portfolio of businesses. The company has been undertaking several CSR initiatives over the years an been appreciated for them globally. The company's innovative ways and heavy investments to achieve the 'triple bottom line'are discussed.

 

About ITC

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 Agri-Exports, 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."

 

CSR philosophy of ITC

Inspired by the overarching vision of making a contribution to the national goals of sustainable development and inclusive growth, ITC has innovatively crafted unique business models that synergise long-term shareholder value creation with enhancing societal capital. This commitment is reflected when ITC measures accomplishments not only in terms of financial performance but also by the transformation ITC has consciously engendered to augment the social capital of the nation, in ITC's 'Triple Bottom Line' approach of contributing to the economic, environmental and social capital of the country. Envisioning a larger societal purpose has always been a hallmark of ITC. The company sees no conflict between the twin goals of shareholder value enhancement and societal value creation. The challenge lies in fashioning a corporate strategy that enables realisation of these goals in a mutually reinforcing and synergistic manner.

 

As a corporate citizen with enduring relationships in rural India, ITC has a history of collaboration with communities and government institutions to enhance farm productivity and the rural resource base. ITC's commitments in agricultural R&D and knowledge sharing have spanned vital aspects of competitiveness - efficient farm practices, soil and water management.

 

ITC is committed to a national agenda of raising agricultural productivity and making the rural economy more socially inclusive. ITC believes that the urgency and scale of these tasks make market linked solutions and innovations more effective and sustainable than capital intensive approaches.

 

Let's put India First

ITC's philosophy revolves around goal congruence with the national goals of sustainable development and inclusive growth. Various environmental & Social initiatives are taken by ITC to ensure sustainable growth. Some of the key initiatives taken by ITC for improvement of livelihood of disadvantaged sections of society and the reach of initiatives in mentioned in table below

 

Initiatives

Milestones

e - Choupal

4 million farmers empowered, 6,500 e - Choupals installed

Social     &     Farm Forestry

114,428 hectares greened, generating 51.48 million person - days of employment

Watershed Development

56,951 hectares brought under soil and moisture conservation

Women's Empowerment

15,378 women members 1183 self- help groups

Livestock Development

176 Cattle Development Centres 3,520 villages covered annually

Primary Education

252,329 children covered through 2,334 Supplementary Learning Centres

e-Choupal: Rural digital-physical infrastructure

In 2000, harnessing the empowering force of information technology and its scalabilty, ITC launched e-Choupal - a knowledge portal providing farmers with a range of information and services. Designed to enable them to bargain collectively and enhance their transactive power, e-Choupal became the much needed and easily adoptable tool farmers had been waiting for. Today e-Choupal is a vibrant and rapidly growing zone of business and interaction for over 4 million farmers.

Today 4 million farmers use e-Choupal to advantage - bargaining as virtual buyers' co­operatives, adopting best practices, matching up to food safety norms. Being linked to futures markets is helping small farmers to better manage risk. e-Choupal has been specially cited in the Government of India's Economic Survey of 2006-07, for its transformational impact on rural lives.

 

ITC's strategic intent is to develop e-Choupal as a significant two-way multidimensional delivery channel, efficiently carrying goods and services out of and into rural India. By progressively linking the digital infrastructure to a physical network of rural business hubs and agro-extension services, ITC is transforming the way farmers do business, and the way rural markets work.

The network of 6,500 e-Choupal centres spread across 40,000 villages has emerged as the gateway of an expanding spectrum of commodities leaving farms - wheat, rice, pulses, soya, maize, spices, coffee, aqua-products. The reverse flow carries FMCG, durables, automotives and banking services back to villages.

 

Social & Farm forestry

ITC's social & Farm forestry program emerged in response to its challenge to source effective pulp wood from sustainable sources to enhance its competitiveness. Instaed of taking easier route to importing pulp, ITC innovatively leveraged it's pulpwood requirements to provide sustainable livelihood opportunities to poor and tribal marginal farmers, by assisting them to convert their private wastelands into productive pulpwood plantations. High yielding, disease resistant and site specific clones are developed in ITC's research center.

 

This program has not only created sustainable source of livelihood for a large no. of disadvantaged sections of society but has also bought in a multiplicity of benefits by creating a large green cover that contributes significantly to groundwater recharge, soil conservation and carbon sequestration.

 

Integrated Watershed Development

Recognising the vital role that role plays in the rural economy, ITC promotes watershed projects in waterstressed areas providing precious water resources for agriculture and rural communities and livestock. Based on a participatory approach, 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.

 

The phenomenal example of this was the Ranjangaon ara near Pune district in Maharashtra, it was under severe draught during kharip season of 2009 with virtuallyno rains in the project area, farmers and cattle were adversely affected. ITC's watershed programme became the only source of livelihood for more than 350 farmers who participated daily in the work.

 

In another first of its kind agreement in the country, ITC signed MOU with the government of Maharashtra to implement NREGA in 2 blocks of Jalna district on an integrated watershed programme basis covering 50 villages.

 

Integrated Agricultural Development

The programme promotes a combination of solutions for optimizing water management and enhancing farm productivity. Farmers are motivated to form agri-business centers, enabling them to pool knowledge and resources, have access to quality inputs on time and improve productivity and quality.

A total of 20 agri-business centers provided timely agri-iputs to around 1077 members.

 

To help farmers capture additional value from their holdings, ITC promoted crop diversification with good market linkages. Organic spces, medicinal and aromatic plants were promoted under this initiative.

 

Social & Farm forestry

ITC's social & Farm forestry program emerged in response to its challenge to source effective pulp wood from sustainable sources to enhance its competitiveness. Instaed of taking easier route to importing pulp, ITC innovatively leveraged it's pulpwood requirements to provide sustainable livelihood opportunities to poor and tribal marginal farmers, by assisting them to convert their private wastelands into productive pulpwood plantations. High yielding, disease resistant and site specific clones are developed in ITC's research center.

 

This program has not only created sustainable source of livelihood for a large no. of disadvantaged sections of society but has also bought in a multiplicity of benefits by creating a large green cover that contributes significantly to groundwater recharge, soil conservation and carbon sequestration.

 

Integrated Watershed Development

Recognising the vital role that role plays in the rural economy, ITC promotes watershed projects in waterstressed areas providing precious water resources for agriculture and rural communities and livestock. Based on a participatory approach, 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.

 

The phenomenal example of this was the Ranjangaon ara near Pune district in Maharashtra, it was under severe draught during kharip season of 2009 with virtuallyno rains in the project area, farmers and cattle were adversely affected. ITC's watershed programme became the only source of livelihood for more than 350 farmers who participated daily in the work.

 

In another first of its kind agreement in the country, ITC signed MOU with the government of Maharashtra to implement NREGA in 2 blocks of Jalna district on an integrated watershed programme basis covering 50 villages.

 

Integrated Agricultural Development

The programme promotes a combination of solutions for optimizing water management and enhancing farm productivity. Farmers are motivated to form agri-business centers, enabling them to pool knowledge and resources, have access to quality inputs on time and improve productivity and quality.

 

A total of 20 agri-business centers provided timely agri-iputs to around 1077 members.

 

To help farmers capture additional value from their holdings, ITC promoted crop diversification with good market linkages. Organic spces, medicinal and aromatic plants were promoted under this initiative.

 

Livestock Development

The programme assists small landless farmers to upgrade livestock quality through cross­breeding by artificial insemination to boost milk productivity by a factor of 6 to 9 times, leading to a threshold increase in household incomes and thereby an improvement in their economic status. Following graph shows average increase in milk productivity due to cross breeding:

 

The programme also provides integrated animal husbandry services that include pre and post natal interventions. Vaccinations and health services are provided to more than 1.7 lakh cattle.

 

Women's empowerment

ITC's initiative provide sustainable economic opportuinities to poor women in rural areas by assisting them to form self help groups that enable them to build small savings and finance self employment and micro-enterprise. The programme has demonstrated that extra incomes in the hands of women lead to positive changes in human development since it is largely invested in children's education, health and nutrition.

 

The total turnover of women managed micro enterprises was Rs. 61.14 lakhs, the bulk of which was accounted by the sale of raw agarbattis and chikankar garments.

 

Universal Education

The programme is aimed at increasing chances of employability either through imparting training in skills or better education. The programme provides infrastructure support to government run primary schools and coaching through Supplementary learning centers to stem drop-outs and enable more children to complete school and move on to higher classes.

 

In order to increase enrolment, poor children receive school uniforms and text/exercise books. A network of rural libraries and resource centers enrich the process of learning for these children. An innovative initiative of roaming laptop programme is also provided to government schools in rural areas.

 

Question 1: If you would be the CEO of ITC, which other CSR activities you would have undertaken that would have aligned well with the current CSR activities?

 

Question 2: Explain how e-Choupal has empowered farmers of India?

 

Question 3: It is governments job to do CSR activities and corporate should focus their attention on Profit - Explain your view point on the statement.

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