A STUDY ON CORPORATE GOVERNANCE

(CSR IN ITC)

INTRODUCTION

ITC has a diversified presence in FMCG (Fast Moving Consumer Goods), Hotels, Paperboards
& Specialty Papers, Packaging, Agri-Business and Information Technology. While ITC is an
outstanding market leader in its traditional businesses of Hotels, Paperboards, Packaging, AgriExports and Cigarettes, it is rapidly gaining market share even in its nascent businesses of
Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. Meera
Shankar, will join the board of ITC Ltd as the first women director in its history. She will be an
additional non-executive director of the cigarettes-FMCG-hotel major.
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India
Limited. As the Company's ownership progressively Indianite, the name of the Company was
changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited
in 1970 and then toI.T.C. Limited in 1974. In recognition of the Company's multi-business
portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising
Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery
Products, Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business and Information Technology - the full stops in the Company's name
were removed effective September 18, 2001. The Company now stands rechristened 'ITC
Limited'.

The Company's beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the
center of the Company's existence. The Company celebrated its 16th birthday on August 24,
1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru
Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more
ways than one. It was to mark the beginning of a long and eventful journey into India's future.
The Company's headquarter building, 'Virginia House', which came up on that plot of land two
years later, would go on to become one of Kolkata's most venerated landmarks.
Though the first six decades of the Company's existence were primarily devoted to the growth
and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the
beginnings of a corporate transformation that would usher in momentous changes in the life of
the Company.
ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business. It is today India's most sophisticated packaging house.
In 1975, the Company launched its Hotels business with the acquisition of a hotel in Chennai
which was rechristened ITC-Welcome group Hotel Chola (now renamed My Fortune, Chennai).
The objective of ITC's entry into the hotels business was rooted in the concept of creating value
for the nation. ITC chose the Hotels business for its potential to earn high levels of foreign
exchange, create tourism infrastructure and generate large scale direct and indirect employment.

Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100
owned and managed properties spread across India under four brands namely, ITC Hotels Luxury Collection, Welcome Hotels, Fortune Hotels and Welcome Heritage.
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002
and became a Division of the Company, Bhadrachalam Paperboards Division. In November
2002, this division merged with the Company's Tribune Tissues Division to form the Paperboards
& Specialty Papers Division. ITC's paperboards' technology, productivity, quality and
manufacturing processes are comparable to the best in the world. It has also made an immense
contribution to the development of Sarapaka, an economically backward area in the state of
Andhra Pradesh. It is directly involved in education, environmental protection and community
development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial
Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to
improve customer service with reduced lead time and a wider product range.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. In
August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed
to Surya Nepal Private Limited (Surya Nepal). In 2004, the company diversified into
manufacturing and exports of garments.
In 1990, ITC acquired Tribune Tissues Limited, a Specialty paper manufacturing company and a
major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni
Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with
the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in
November 2002.
The Division is today one of India's largest exporters. ITC's unique and now widely
acknowledged e-Chou pal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it
extends to 10 states covering over 4 million farmers. Also, through the 'Chou pal Pradarshan
Khet' initiative, the Agri services vertical has been focusing on improving productivity of crops
while deepening relationship with the farming community.
ITC launched line of premium range of notebooks under brand Paper Kraft in 2002. To augment
its offering and to reach a wider student population, the Classmate range of notebooks was
launched in 2003. Classmate over the years has grown to become India's largest notebook
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brand and has also increased its portfolio to occupy a greater share of the school bag. Years
2007- 2009 saw the launch of Practical Books, Drawing Books, Geometry Boxes, Pens and
Pencils under the 'Classmate' brand. In 2008, ITC positioned the business as the Education and
Stationery Products Business and launched Indias first environment friendly premium business
paper under the 'Paper Kraft' Brand. 'Paper Kraft' offers a diverse portfolio in the premium
executive stationery and office consumables segment. In 2010, Color Crew was launched as a
new brand of art stationery.
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores
later expanded its range to include Wills Classic formal wear (2002) and Wills Club life evening
wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John
Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier
fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and
retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the
occasion, ITC launched a special 'Wills Signature', taking the event forward to consumers.
In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC
InfoTech India Limited, to more aggressively pursue emerging opportunities in this area. Today
ITC InfoTech is one of India's fastest growing global IT and IT-enabled services companies and
has established itself as a key player in offshore outsourcing, providing outsourced IT solutions
and services to leading global customers across key focus verticals - Banking Financial Services
& Insurance (BFSI), Consumer Packaged Goods (CPG), Retail, Manufacturing, Engineering
Services, Media & Entertainment, Travel, Hospitality, Life Sciences and Transportation &
Logistics.
ITC's foray into the Foods business is an outstanding example of successfully blending multiple
internal competencies to create a new driver of business growth. It began in August 2001 with
the introduction of Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered
the confectionery and staples segments with the launch of the brands mint-o and Candy
man confectionery and Aashirvaadatta (wheat flour). 2003 witnessed the introduction
of Sunfeast as the Company entered the biscuits segment. ITC entered the fast growing branded
snacks category with Bingo! In 2010, ITC launched Sunfeast Yippee! To enter the Indian instant
noodles market. In just over a decade, the Foods business has grown to a significant size under
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seven distinctive brands, with an enviable distribution reach, a rapidly growing market share and
a solid market standing.
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value
chain found yet another expression in the Safety Matches initiative. ITC now markets
popular safety matches brands like Kino, Mangaldeep and Aim.
ITC's foray into the marketing of Agabatti (incense sticks) in 2003 marked the manifestation of
its partnership with the cottage sector. Mangaldeep is a highly established national brand and is
available across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur,
Sambrani and Nagchampa.
ITC entered the Personal Care Business in 2005. In seven years, the Personal Care portfolio has
grown under which have received encouraging consumer response and are also being
progressively extended nationally.
In 2010, ITC launched its hand rolled cigar, Armentieres, in the Indian market. Armentieres
cigars are available exclusively at tobacco selling outlets in select hotels, fine dining restaurants
and exclusive clubs
ITC Limited (BSE: 500875) or ITC is an Indian public conglomerate company (25.4% owned by
British corporation, British American Tobacco)headquartered in Kolkata, West Bengal, India. Its
diversified business includes four segments: Fast Moving Consumer Goods (FMCG), Hotels,
Paperboards, Paper & Packaging and Agri Business. ITC's annual turnover stood at $7 billion
and market capitalization of over $34 billion. The company has its registered office in Kolkata. It
started off as the Imperial Tobacco Company, and shares ancestry with Imperial Tobacco of the
United Kingdom, but it is now fully independent, and was rechristened to India Tobacco
Company in 1970 and then to I.T.C. Limited in 1974.
The company is currently headed by Yogesh Chander Deveshwar. It employs over 29,000 people
at more than 60 locations across India and is listed on Forbes 2000. ITC Limited completed 100
years on 24 August 2010.
List of products & brands
In FMCG, ITC has a strong presence in:

Cigarettes: W. D. & H. O. Wills, Gold Flake Kings, Gold Flake Premium, Navy
Cut, Insignia, India Kings, Classic (Verve, Menthol, Menthol Rush, Regular, Citric Twist, Mild
& Ultra Mild), 555, Benson & Hedges, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky
Strike, Players and Flake.

Foods:

(Kitchens

of

India; Aashirvaad,Minto,Sunfeast,Candyman,Bingo,Yippee, Sunfeast Pasta brands in Ready to

Eat, Staples, Biscuits, Confectionery, Noodles and Snack Foods);

Apparel: (Wills Lifestyle and John Players brands);

Personal care: (Fiama di Wills; Vivel; Essenza di Wills; Superia; Vivel di Wills brands of
products in perfumes, hair care and skincare)

Stationery: (Classmate and Paper Kraft brands)

Hotels: ITC's hotels (under brands including WelcomHotel) have evolved into being
India's second largest hotel chain with over 80 hotels throughout the country. ITC is also the
exclusive franchise in India of two brands owned by Sheraton International Inc.- The Luxury
Collection and Sheraton which ITC uses in association with its own brands in the luxury 5 star
segment. Brands in the hospitality sector owned and operated by its subsidiaries
include Fortune and Welcome Heritage brands.

Paperboard, Specialty Paper, Graphic and other Paper;

Packaging and Printing for diverse international and Indian clientele.

InfoTech (through its fully owned subsidiary ITC InfoTech India Limited which is a SEI
CMM Level 5 company)
Rural initiatives
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 'eChou pal' 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 e-Chou pals
serve as both a social gathering place for exchange of information 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 companyan e-commerce platform that is also a low-cost fulfillment
system focused on the needs of rural India. The e-Chou pal system has also catalyzed rural
transformation that is helping to alleviate rural isolation, create more transparency for farmers,
and improve their productivity and incomes.
Corporate philanthropy
ITC e-Chou pal creatively leverages information technology to set up a meta-market in favor of
India's small and poor farmers, who would otherwise continue to operate and transact in 'unevolved' markets.
As of July 2010, services through 6500 E Chou pal across 10 states, reach more than 4 million
farmers in about 40,000 villages. Free access to Internet is also opening windows of rural India
to the world at large.
ITC e-Chou pal is now being regarded as a reliable delivery mechanism for 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-governmental organizations.
Classmate notebooks were launched with the initiative of contributing 1 rupee towards the
education of poor children, from every four notebooks it sold.
Classmate has launched a programme called Classmate Ideas for India challenge. The
programme would be a part of the company's centenary initiative. The nation-wide programme
would invite ideas of the youth, who have the potential to transform India. Classmate Ideas for
India challenge plans to reach out to 25 lakh students across 30 cities, 500 schools and 200
colleges across the country
Forbes rankinG
ITC features on the Forbes Global 2000 rankings for 2007 at position 1256
ITC is the only Indian FMCG company that features on the Forbes Global 2000 rankings for
2009 at position 987.

ITC has won the inaugural 'World Business Award', the worldwide business award
recognizing companies who have made significant efforts to create sustainable livelihood
opportunities and enduring wealth in developing countries. The award has been instituted jointly
by the United Nations Development Programme (UNDP), International Chamber of Commerce
(ICC) and the HRH Prince of Wales International Business Leaders Forum (IBLF). In 2012, ITC
Limited was presented the World Business and Development Award at Rio+20 UN Summit for
its transformational rural initiatives in social and farm forestry programmes in India.

ITC is the first from India and among the first 10 companies in the world to publish its
Sustainability Report in compliance (at the highest A+ level) with theist G3 guidelines of the
Netherlands-based Global Reporting Initiative (GRI), a UN-backed, multi stakeholder
international initiative to develop and disseminate globally applicable Sustainability Reporting
Guidelines.

ITC is the first Indian company and the second in the world to win the prestigious
Development Gateway Award. It won the $100,000 Award for the year 2005 for its trailblazing
ITC e-Chou pal initiative which has achieved the scale of a movement in rural India. The
Development Gateway Award recognizes ITC's e-Chou pal as the most exemplary contribution
in the field of Information and Communication Technologies (ICT) for development during the
last 10 years. ITC e-Chou pal won the Award for the importance of its contribution to
development priorities like poverty reduction, its scale and reliability, sustainability and
transparency.

ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate
Triple Impact Award in 2007 for its invaluable contribution to the triple bottom line benchmarks
of building economic, social and natural capital for the nation.

ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility (Asia)' in
2007, the Award for CSR in Emerging Economies 2005 and Excellence in Corporate
Governance' in the same year. These Awards have been instituted by the Institute of Directors,
New Delhi, in association with the World Council for Corporate Governance and Centre for
Corporate Governance.

ITC Hotel Royal Gardenia, Bengaluru is the first Indian Hotel and world's largest, to get
the LEED Platinum rating - the highest green building certification globally.

The Stockholm Challenge 2006 for the e-Chou pal initiative. This award is for using
Information Technology for the economic development of rural communities.

United Nations Industrial Development Organization (UNIDO) Award at the international

conference on Sharing Innovative Agribusiness Solutions 2008 at Cairo for ITC's exemplary
initiatives in Agri business through the e-Chou pal.

The Corporate Social Responsibility Crown Award for Water Practices from UNESCO
and Water Digest for its distinguished work carried out in the water sector in India. ITC also
received the National Award for Excellence in Water Management 2007 in the 'beyond the fence'
category from the CII Sohrabji Godrej Green Business Centre for its leadership role in
implementing water and watershed management practices.

The watershed programme also won the Asian CSR Award 2007 for Environmental
Excellence given by the Asian Institute of Management. The Award recognizes and honors Asian
companies for outstanding, innovative and world-class projects. The Company also received the
Ryutaro Hashimoto Incentive Prize 2007 for Environment & Development from the Asia Pacific
Forum. This Award aims at promoting information dissemination of good practices towards
sustainable development in the Asia-Pacific region.

The Readers' Digest Pegasus Award for corporate social responsibility, recognizing
outstanding work done by socially conscious companies.

The Corporate Award for Social Responsibility 2008 from The Energy and Resources
Institute (TERI) in recognition of its exemplary initiatives in implementing integrated watershed
development programmes across 7 states in India. The company also won the award in 2004 for
its e-Chou pal initiative. The Award provides impetus to sustainable development and encourages
ongoing social responsibility processes within the corporate sector.

The 'Enterprise Business Transformation Award' for Asia Pacific (Apac), instituted by
Infosys Technologies and Wharton School of the University of Pennsylvania for its celebrated eChou pal initiative.

The Best Corporate Social Responsibility Practice Award 2008 jointly instituted by the
Bombay Stock Exchange, Times Foundation and the NASSCOM Foundation.

The NASSCOM CNBC IT User Award 2008 in the Retail & Logistics category. The
Company has been recognized for its pro-active and holistic approach to IT adoption and the

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seamless alignment of IT with business strategy. This is the fourth time that ITC has won
Nasscom's Best IT User Award since it was instituted in 2003.

The Institute of Chartered Accountants of India Award for Excellence in Financial

Reporting with its Annual Report and Accounts, adjudged as a commendable entry under the
Category 'Manufacturing and Trading Enterprises.
Ranked no.63 in The Brand Trust Report published by Trust Research Advisory in 2011
The ITC Way

ITC is a board-managed professional company, committed to creating enduring value for the
shareholder and for the nation. It has a rich organizational culture rooted in its core values of
respect for people and belief in empowerment. Its philosophy of all-round value creation is
backed by strong corporate governance policies and systems.
ITCs corporate strategies are:

Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organizational capability with opportunities in domestic and export markets.

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.

Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
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Ensure that each of its businesses is world class and internationally competitive.

Enhance the competitive power of the portfolio through synergies derived by blending
the diverse skills and capabilities residing in ITC are various businesses.

Create distributed leadership within the organization by nurturing talented and focused
top management teams for each of the businesses.

Continuously strengthen and refine Corporate Governance processes and systems to

catalyze the entrepreneurial energies of management by striking the golden balance between
executive freedom and the need for effective control and accountabili
LITERATURE SURVEY
Evolution of Modern CSR Notion that corporate executives should balance interests of all
stakeholders began to blossom in the 1960s. Until the 1980s CSR was considered same as
corporate philanthropy even in USA the Body Shop International of U.K. is a pioneer in Modern
CSR, mainly due to great initiative and outstanding contribution of Founder Anita Roddick.
Bhopal Gas Tragedy 1984 In the worst industrial disaster in the history at Bhopal (India) when
shortly after midnight on 3rd December 1984 a cloud of deadly methyl-isocyanides gas leaked
from pesticide plant owned by the Indian subsidiary of Union Carbide USA, killing 2000 and
severely damaging about 150000 who had to be hospitalized for respiratory and eye damage The
company became bankrupt and ultimately sold out. Adoption of internal control reforms &
regulations for Corporate Governance under the purview of CSR, were necessitated in the wake
of major Enron accounting scandals in USA. This could not however stop subsequent major
accounting scandal Satyam Computers in India where owners and Auditors had collusion.
A research sample of 515 firms including top firm such as NIKE ,Starbucks ,Ford, Microsoft
Timberland and others studied by the Centre for Corporate Citizenship at Boston College
emphasizes the potential business value of CSR to small ,medium, and large corporations Like
financial controls and human resource management, corporate citizenship is integral to keep
business healthy. The study also found that good corporate citizenship was driven by a variety of
internal and external forces. Lack of resources and a lack of top management commitment,
however, were perceived to be greatest barriers to good corporate citizenship.
Relation between CSR and Business Process Management (BPM) The first Corporate Social
responsibility of a business is to make enough profit to cover the cost for future. If this social
responsibility is not made, no other social responsibility can be met. said Prof Peter Dracker,
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the famous Management thinker of his time. The managements have to manage their respective
companies efficiently with focus on business process management (BPM) so that it would
provide benefits to all stakeholders in the
Environment by generating surplus incomes & making profit. Business Processes are generally
identified in terms of beginning and end points, interfaces and organization units including
customer unit. A business process model is a representation of companys operation or a specific
part of operation
CSR is about how companies manage business in the society to produce an overall positive
impact on the society at large. Companies need to answer two aspects of their operations:
The Quality of their management-both in terms of people and processes.
The nature of and quantity of their overall positive impact on environment and local
Communities as well as their employees in the various areasoutside stakeholders are taking an
increasing interest in the activity of company. Most look to outer circle-what the company has
actually done, good or bad, in terms of its products & services, in terms of its impact on
environment and on local communities, or how it treats & develop its workforce.
The Corporate Social Responsibility Hierarchy CSR is considered as operating a business in a
manner that meets or exceeds the ethical, legal commercial and public expectations that society
has from a particular business. CSR is seen by leadership companies as more than a collection of
discrete practices or occasional gestures or
Initiatives motivated by marketing, public relations or other business benefits.
Prof Archie Carroll of University of Georgia was the first academician to present conceptual
framework for CSR Hierarchy in his book The Pyramid of Corporate Social Responsibility:
Toward the Moral Management of Organizational Stakeholders, Business Horizons, JulyAugust, 1991,

This useful typology is not rigid, however; issues can and do evolve

overEconomic responsibilities refer to production of goods and services which are of value to
society, so that the firm can get acceptable return on its owners investment as well as pay repay
its creditors. Legal responsibilities refer to carry out business within legal framework drawn up
by the Government. For example, in the Indian context, automatic retrenchment of workforce at
the whims of the management is not allowed.

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Ethical responsibilities of a company refer to generally held beliefs about behavior in society,
e.g. a company should work with its employees and community if it is planning for layoffs,
though it may not be required by the company to do so.
Discretionary responsibilities are purely voluntary obligations on the part of a company .It can be
contribution to philanthropy or provision of crche or construction of sanitary facilities, etc. Both
ethical and discretionary responsibilities are considered as social responsibilities.
The difference between Ethical and Discretionary responsibilities is that people expect company
to fulfill their ethical responsibilities but a few people expect to fulfill their discretionary
responsibilities.

Linking Strategy and Social ResponsibilityThe combinationof socially

responsible endeavors a company elects to pursue defines its social responsibility strategy. Some
companies are integrating social responsibility objectives into their Missions Performance targets
Strategies.
The combination of socially responsible endeavors a company elects to pursue defines its social
responsibility strategy. Some companies are integrating social responsibility objectives into their
Missions Performance targets Strategies. Mainstreaming CSR Develop Companys mission One
which reflects corporate ambition consistent to changing paradigm,

Mission supported by

Vision, Giving clear futuristic direction, laying road map for sustainable growth.
Vision

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Vision statements of genuine strategic intent should keep the focus on Wealth Creation for
multiple Stakeholders, including the members of its organization (employees), itsdirect
beneficiaries (owners), its economic partners (customers and suppliers) & the larger community
in which the organization operates (society broadly defined). A vision identifies what a company
is strivingfor. Avision that ignores the larger role a firm plays in society is likely to be neither
noble nor sustainable.
Mission
Mission identifies what the organization is going to do in order to attain its vision. An
automobile company may have a vision providing the best personal transportation vehicles to a
broad section of society and a mission of making affordable, fuel
Efficient cars. The mission must balance both the methods and results to be considered socially
responsible.
ITC is present in range of business sectors such as FMCG, Paper, Paperboards &

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Packaging, Hotels, and Agri-business .In FMCG space this includes segments such as Cigarettes,
Branded Foods ,Personal care products, lifestyle apparels and Accessories ,Education and
stationery products, Incense sticks and safety matches.
The vision and mission statements of ITC are:-:
Vision- Sustain ITCs position as one of the Indias most valuable corporation through world
class performance, creating growing value for the Indian economy & Companys
Stakeholders.
Mission- To enhance the wealth generating capability of the enterprise in a globalizing
Environment, delivering superior and sustainable stakeholder value. ITCs core Values are
embedded in its philosophy of trusteeship & the related belief that enterprises
Exist to serve society and that shareholder value creation is a reward for such larger societal
value creation.
ITCs e-Chou pal path breaking initiative (2000) In the Agri Business segment it is engaged in
innovatively leveraging digital technology to transform rural lives and landscapes. ITC believes
that the inter-dependence between its agro-based businesses and the farm sector constitutes a
sustainable platform to enlarge its contribution to the Indian rural sector. ITC'srural development
initiatives embrace several critical areas:
Web-enablement of the Indian farmer to help him access relevant knowledge and services to
enhance farm productivity
The endemic constraints that shackle the Indian Agriculture sector are well known -fragmented
farms, weak infrastructure, numerous intermediaries, excessive dependence on the monsoon, and
variations between different agro-climatic zones, among many others. These pose their own
challenges to improving productivity of land and quality of crops. The unfortunate result is
inconsistent quality and uncompetitive prices, making it difficult for the farmer to sell his
produce in the world market. ITC's trail-blazing answer to these problems is the e-Chou pal
initiative.

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Description: The ITC Limited - SWOT Analysis company profile is the essential source for toplevel company data and information. ITC Limited - SWOT Analysis examines the companys
key business structure and operations, history and products, and provides summary analysis of its
key revenue lines and strategy.
ITC Limited (ITC or the group) is engaged in diversified businesses of fast moving consumer
good (FMCG) products, hotel operations, paperboards, papers and packaging, and agribusiness.
The group primarily operates in India. It is headquartered in Kolkata, India and employs about
23,473 people. The group recorded revenues of INR276,234.4 million ($5,831.3 million) during
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the financial year ended March 2010 (FY2010), an increase of 13.4% over 2009. The operating
profit of the group was INR62,457.1 million ($1,318.5 million) in FY2010, an increase of 25.3%
over 2009.The net profit was INR41,681.8 million ($879.9 million) in FY2010, an increase of
25.4% over 2009.
Scope of the Report
- Provides all the crucial information on ITC Limited required for business and competitor
intelligence needs
- Contains a study of the major internal and external factors affecting ITC Limited in the form of
a SWOT analysis as well as a breakdown and examination of leading product revenue streams of
ITC Limited
-Data is supplemented with details on ITC Limited history, key executives, business description,
locations and subsidiaries as well as a list of products and services and the latest available
statement from ITC Limited
Reasons to Purchase
- Support sales activities by understanding your customers businesses better
- Qualify prospective partners and suppliers
- Keep fully up to date on your competitors business structure, strategy and prospects
- Obtain the most up to date company information available

Contents:
SWOT COMPANY PROFILE: ITC Limited
Key Facts: ITC Limited
Company Overview: ITC Limited
Business Description: ITC Limited
Company History: ITC Limited
Key Employees: ITC Limited
Key Employee Biographies: ITC Limited
Products & Services Listing: ITC Limited
Products & Services Analysis: ITC Limited
SWOT analysis: ITC Limited
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-Strengths: ITC Limited

-Weaknesses: ITC Limited
-Opportunities: ITC Limited
-Threats: ITC Limited
Company View: ITC Limited
Top Competitors: ITC Limited
Location and Subsidiary: ITC Limited
-Head Office: ITC Limited
-Other Locations and Subsidiaries: ITC Limited
METHODS OF ANALYSIS

The Qualitative Approach

In-depth case studies of small groups of learners are usually the norm in qualitative methods of
research. Detailed records of ICT-related activities, as well as the learning taking place, are
essential as they are necessary for the identification of relationships between them. However,
because of the group size being investigated, it is often difficult to generalise any findings from
such studies as they are not representative of the whole school population or community.

The Quantitative Approach

The quantitative approach often involves an experimental (or treatment) and a control group. The
experimental group is directly involved in the ICT-related learning activities while the control
group learns using the traditional method. Both groups are tested before and after the experiment
and sometimes, a delayed test may be given to determine the retention rate of the learning. One
of the limitations of the quantitative approach is that other factors, such as a novelty effect
involving increased enthusiasm of teachers and students, may be unconsciously introduced to
confound the results of the experiment.

The Quantitative-Qualitative Approach

In combining both qualitative and quantitative methods, a greater degree of accuracy and validity
in the results of studies is obtained, thus strengthening the findings and implications put forward
by the researcher. Two methods of this combined study have been advocated. The first method
involves the conducting of a large-scale quantitative study, followed by case studies of in-depth

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investigation (Becta, 2001; Cox, 1993). The second method is a well-established approach
known as meta-analysis. In this method, a large number of published case studies of similar
characteristics are collected and comparative analysis made to identify relationships between
these variables. Since its inception, researchers have consistently used this method to investigate
andevaluate data in their research. This method is described in greater detail in the next section.
THE META-ANALYSIS METHOD
The meta-analysis technique was pioneered by Glass (1977) and later adopted by many
reviewers (Cohen, 1981; Kulik, Bangert and Williams, 1983; Roblyer, 1988) in their research.
Meta-analysts (Kulik et al., 1983) normally used a quantitative approach to their studies
incorporating three main
tasks:
(a) objective procedures to locate studies;
(b) quantitative or quasi-quantitative techniques to describe study features and outcomes; and
(c) statistical methods to summarise overall findings and to explore relationship between study
features and outcomes.
The procedures involved, as used by Kulik and his associates (Kulik, Kulik and Cohen, 1980),
are briefly described.
Eng 637
1. A large number of studies that examined the effects of computer-based instructions are
collected from different databases.
2. Guidelines are used to sieve through the studies collected and those that fail to meet the
criteria are removed. Each study is counted once even when it is presented in several papers.
3. Variables and categories for describing features of the study are developed; Experimental and
control groups are taught during the same period and objective examinations are used as the
criterion of student achievement. Attitudes toward computers, subject matter and instruction
are based on self-report responses to questionnaire items or scales.
4. To quantify outcomes in each area of study, the Effect Size (ES) is used. The effect size is
defined as the difference between the means of two groups divided by the standard deviation
of the control group.
ITC's abiding vision to serve national priorities has led to the creation of unique and innovative
usiness models that simultaneously deliver the twin objectives of shareholder value creation and
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cietal capital formation.This is manifest in your Company's conscious strategy to contribute to

rural development in the context of its businesses through inclusive value chains that encompass
the most disadvantaged in rural India. Creation of sustainable livelihoods is at the heart of this
strategy. Let me highlight a few of these examples:
First, the Farm to Food Products Value Chain:
Today, more than 4 million farmers in 40,000 villages are benefitted by ITC's globally
cknowledged farmer empowerment programme the ITC e-Chou pal the world's largest ural
digital infrastructure. One of the most celebrated initiatives of ITC, the e-Chou pal has
raise rural incomes by energizing village communities into vibrant economic

elped

ganizations

thereby transforming rural lives and landscapes. Your Company's sustainable agricultural
initiatives supported by a Watershed Development Programme helps irrigate over 90,000
hectares of water stressed areas, raising rural incomes by enabling the harvesting of additional
crops. Farmer training programmes supported by Pradarshan Khet (Model Farms) help in
inculcating sustainable agricultural practices and raising productivity, further improving the
long-term realization from the farmer's meager resources.
Second, the Tree to Textbook Value Chain:
Recipient of the recent UN Award, this wood-fiber value chain has provided over 56 million
person days of employment to poor tribal and marginal farmers. A conscious strategy to promote
clonal propagation of fast growing and hardy species through intensive R & D, has today led to
significant wasteland development and greening of over 125,000 hectares through ITC's Social
and Farm Forestry Programmes.
These renewable plantations enable ITC to offer the greenest products in the country such as
Classmate notebooks and Paper Kraft business and copier paper. This year, the introduction of an
innovative agro-forestry model has led to synergizing tree growing with crop production,
demonstrating that food and fiber security need not be mutually exclusive but be mutually
reinforcing.

In addition, your Company's Wealth out of Waste (Wow) programme that promotes
resource conservation through recycling is a source of sustainable raw material for ITC's
Paperboards business. I am given to understand that over 3 million citizens, 500,000 school
children, 350 corporates and over 1,000 commercial establishments support this programme,

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which in turn helps augment green cover, conserves energy and scarce natural resources, makes
surroundings clean and healthy and creates livelihood opportunities.
Third, the Animal Husbandry Value Chain:
Your Company has been engaged in Livestock Development programmes with the objective of
increasing milk productivity thereby raising farmers' incomes. With Animal Husbandry services
extended to over 3, 00,000mulch animals, the increasing level of milk production is enabling
dairying to emerge as a commercially attractive non-farm livelihood. This year, ITC has
intensified this programme around the adjoining districts of its Monger Factory in Bihar.The
ground breaking of the Monger Dairy & Social Development project will take place shortly,
which over time will substantially enhance the livelihood potential in the area. As this CSR
intervention achieves scale, it will enable the development of a competitive value chain which in
turn can feed a packaged dairy products business and support the creation of vital Indian brands
that will further lend sustainability to the entire value chain
Fourth, the Agarbattis Value Chain: The linkage of ITC's Women Empowerment Programme
to ITC's Agarbattis Business with the brand Mangaeep is yet another unique example of
livelihood creation through competitive value chains. Through these programmes, nearly 40,000
women have been provided gainful livelihood opportunities.These value chains have not only
created millions of sustainable livelihoods but have also simultaneously created large scale
environmental and financial capital. In the process, it has also demonstrated the magnitude of
contribution that institutions like ITC can create for the Indian society through innovative
business models.

SUGGESTIONS

The findings and analysis suggest key recommendations:

Review approach of the company against the KPMG survey of global responses
From that, develop a strategic approach to CSR based on understanding of the impacts and the
tipping points in resource shortage or price rises
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 Recognition that the environment is a tipping point and natural resources such as water and
fertile land are potential business threatening issues
Realisation that the world is watching India and China and brand reputation and image can be
made or destroyed in a single action
Understand that CSR presents an opportunity to demonstrate corporate values, distinctiveness,
and employee brand as well as deliver governance. This could propel companies into the coveted
world class status
The opportunity for partnership in sectors, across sectors, across the corporate, voluntary divide

Conclusions:
* Corporate social responsibility is a form of corporate self-regulation integrated into
a businessmodel.
* 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 is embrace responsibility for, and encourage a positive impact through its activities on
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the

environment,

consumers,

employees,

communities, stakeholders

and

all

others.

* Furthermore, CSR-focused businesses would proactively promote the public interest by

encouraging community growth and development, and voluntarily eliminating practices that harm
the public sphere, regardless of legality. CSR is the deliberate inclusion of public interest into
corporate decision-making, and the honoring of a triple bottom line: people, planet.

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SUB MITTED BY :
AJEET NAGPAL
MBA 3C
SECTION-D
(AIBS)

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