HR Practices in IT & ITES Organization

(with special reference to ITC )

SUBMITTEDINTHEPARTIALFULFILLMENT OF

POST GRADUATE DIPLOMA IN

BUSINESS ADMINISTRATION
(PGDBA)
SUBMITTED TO
FACULTY OF MANAGEMENT (PGDBA)
SUBMITTED BY. SHIKHA SHARMA

ROLL NO. 201222442

SYMBIOSIS CENTRE FOR DISTANCE

LEARNING (SCDL)
PUNE

SYMBIOSIS CENTRE FOR DISTANCE LEARNING

(SCDL)
Symbiosis Bhavan, 1065-B Gokhale Cross Road,
Model Colony, Pune-411016
Website: www.scdl.net
Program: _____________________________________________
Specialization:
HUMAN RESOURCE
Name of the Student:

SHIKHA SHARMA

Registration Number:

201222442

Active Email ID:

shikayna09.sharma@gmail.com
Mobile Number:
Name of Topic:
Organization

8601650007
HR Practices in IT & ITES
(with special reference to ITC )

NO OBJECTION CERTIFICATE
This is to certify that SHIKHA SHARMA is permitted to use relevant data/information of
this organization for his/her project as a partial fulfillment of the PGDBA Program.

We wish him/her all the success.

Seal of the company

D.N. GUPTA
ASST. MANAGER
TCS
Mob-9307095246

Place:
Date:

DECLARATION OF LEARNER
This is to declare that I have carried out this project work myself in partial fulfillment of the
PGDBA Program of SCDL.
The work is original, has not been copied from anywhere else and not been submitted to any
other University/Institute for an award of any degree/diploma.

Date

Signature

Place

Name:SHIKHA SHARMA

DECLARATION OF GUIDE
certified that the work incorporated in this Project Report HR Practices in IT & ITES
Organization (with special reference to ITC) submitted by SHIKHA SHARMA is her
original work and completed under my guidance.
Material obtained from other sources has been duly acknowledged in the Project Report

Date

Signature of Guide
PULKIT CHAWLA
MBA

Place

Mob-9336488889

ACKNOWLEDGEMENT
No research can blossom from single persons mind without proper guidance, assistance and
inspiration from various quarters. My project was given its present shape by assistance of
many people whom I am greatly indebted to. I express my gratitude and indebtedness toward
the people who helped me during my project work.
This project report is a result of endless effort & immense degree of oil by many great minds.
It was pleasure to work in one of the most valuable company like ITC
I express my sincere gratitude to Mr. RAJNISH KUMAR for their support and guidance on
the ground of which I have acquired a new field of knowledge.
Lastly, I express my gratitude to my parents who financed this project and have been a moral
support to me during this project.

SHIKHA SHARMA

REG NO. 201222442

PREFACE

This report is the result of research completed for the partial fulfilment towards the award of
the degree in PGDBA. my project contains a comprehensive detail on one of the major
function of an HR manager. Human beings are a resource to an organization. like any other
material on economic resource they represent an investment whose development and
utilization require managing. there is a fundamental truth in the clinch that people are an
organizations most important asset and training provides full utilization of this asset.
training is considered as a significant and indispensable tool for an organization in todays era
because it makes the employee perfect for the job.

The report contains an introduction to the training in the theoretical concepts. the company
profile of TCS is given in detail the secondary data of training practices in ITC is also given
the finding of the study is given at the end.

At ITC contribution creativity and learning are respected as well as expected machines
cannot replace the people and success of this organization is because of its employees for the
employees to give their optimum output the organization is because of its employees for the
employees to give their optimum output the organization has to be cooperative with the needs
of its employees by making arrangements of training and development programs in the
organization the skill and efficiency of the employees can be increased which in turn
contributes to the production of the company.

EXECUTIVE SUMMARY

Effective management of human resources play a vital role in sound management of Effective
management of human resources play a vital role in sound management of ITES
ORGANIZATION as human resource management is a central sub system of modern
management system. This truism is well recognised by even market economies of USA, UK,
and France etc. Management of human resources, adaptation to any kind of change and
effective functioning of ITES ORGANIZATION are possible only when human resources are
developed. Thus, HRD facilitated for all round development of ITES ORGANIZATION in
addition to allowing them to be dynamic and responsive to the environmental changes.
The study on Human Resource Development in ITES ORGANIZATION, under present
economic scenario in the country is essential to understand banks present HRD philosophy,
practice and outcome with a view to offer suggestions for formulation of right philosophy and
practice of HRD in ITES ORGANIZATION. The present study has been undertaken in view
of the absence of systematic studied on the subject. Nationalization has changed the
complexion and dimensions of Commercial Banking in India. It helped to hasten the pace of
geographical and functional diversification.
The new dimensions have placed the varying responsibilities on the shoulders of commercial
ITES ORGANIZATION such as expansion of branch offices to unbanked and remote rural
areas on a massive scale so as to cover small scale sector, cottage and rural industries, self
employed persons, artisans, weaker sections of the society, small traders and other persons of
small means.
The study covers all the important areas of human resource development in ITES
ORGANIZATION. These areas include conceptual clarification about human resource and
human resource development in ITES ORGANIZATION, essentials of HRD, the sub-system
of human resource development like performance appraisal, training, management
development, career planning and development, organization development, participative
management, quality circles etc. These primary areas of human resources development will
8

be studied thoroughly to the maximum extent through the means of discussion, interviews,
reports, accounts, observations etc.
as human resource management is a central sub system of modern management system. This
truism is well recognised by even market economies of USA, UK, and France etc.
Management of human resources, adaptation to any kind of change and effective functioning
of ITES ORGANIZATION are possible only when human resources are developed. Thus,
HRD facilitated for all round development of ITES ORGANIZATION in addition to allowing
them to be dynamic and responsive to the environmental changes.
The study on Human Resource Development in ITES ORGANIZATION, under present
economic scenario in the country is essential to understand banks present HRD philosophy,
practice and outcome with a view to offer suggestions for formulation of right philosophy and
practice of HRD in ITES ORGANIZATION. The present study has been undertaken in view
of the absence of systematic studied on the subject. Nationalization has changed the
complexion and dimensions of Commercial Banking in India. It helped to hasten the pace of
geographical and functional diversification.
The new dimensions have placed the varying responsibilities on the shoulders of commercial
ITES ORGANIZATION such as expansion of branch offices to unbanked and remote rural
areas on a massive scale so as to cover small scale sector, cottage and rural industries, self
employed persons, artisans, weaker sections of the society, small traders and other persons of
small means.
The study covers all the important areas of human resource development in ITES
ORGANIZATION. These areas include conceptual clarification about human resource and
human resource development in ITES ORGANIZATION, essentials of HRD, the sub-system
of human resource development like performance appraisal, training, management
development, career planning and development, organization development, participative
management, quality circles etc. These primary areas of human resources development will
be studied thoroughly to the maximum extent through the means of discussion, interviews,
reports, accounts, observations etc.

Content sequence of the Project Report

Certificate from the guide of the Institute

Acknowledgement

Preface

Executive Summary
Table of content

Page Nos.

Introduction
Company profile
Organization chart*
Aims and objectives
Any specific information of the organization*
Objectives of the study
Research Methodology
o Method of data collection.
o Data Source
o Sample design
o Universe
o Sample type
o Sample size
o Sample Unit
o Statistical tools to be used
Problems and limitations
Findings, Analysis & Interpretations
SWOT/ETOP analysis*
Suggestions/Recommendations
Conclusion
Appendix
Bibliography

10

CHAPTER-1
INTRODUCTION

11

INTRODUCTION
My research report is entitled A study of HR Practices in ITC. Firstly I would like to
discuss about HR Practices.
What are HR Practices?
HR Practices are those practices which are been done by the organization for having optimum
utilization of human resource of the organization. These practices can be explained as
follows:

Recruitment & Selection

Training & Development

Performance Appraisal System

Evaluation System

Feed Back Mechanism

Rewards to Employees

Work Remuneration of the employees

Increment practices

12

CHAPTER-2
TITLE OF THE PROJECT

13

TITLE OF THE PROJECT

A Study of HR Practices in ITC

AIMS AND OBJECTIVES OF THE STUDY

The main objective of the study is as follows:

To know the effects of technology on recruitment & selection procedures adopted
in this company.
To improve training and development programs used in the company by use of
technology.
To know how the performance of the employees is being appraised.
To provide better employee welfare.
To increase the labor productivity.

PROBLEM STATEMENT
SCOPE OF THE STUDY
This policy shall apply to all PERMANENT management position in the company including
the workmen.

14

IDENTIFICATION OF VACANT POSITIONS

1. Total permanent manpower strength/budget for organization has been sanctioned
by the board of directors.
2. All the recruitment has necessarily to be made within the approved
budget/strength only.
3. Vacancies against the sanctioned budget may arise due to:

Retirement

Turnover

Natural Separation

4. whenever a vacancy arise, the concerned department has to fill up the prescribed
manpower requisition form clearly indication the job description and specification,
time frame and send it to HR department.

SIGNIFICANCE OF THE STUDY

Human resource management is the part of the organization that is concerned with the
people dimension (DeCenzo and Robbins, 1996). It is a staff, or support, junction in the
organizations. Its role is to provide assistance in HRM matters to line employees, or those
directly involved in producing the organizations goods and services. Every organization is
comprised of people; acquiring their services, developing their skills, motivating them to high
levels of performance. And ensuring to maintain their commitment to the organization is
essential to achieve organizational objectives. This is true, regardless of the type of
organization; government, business, education, health, recreation, or social action.

15

CHAPTER-3
LITERATURE REVIEW

16

LITERATURE REVIEW
Certification of ITC
Company Profile

17

COMPANY PROFILE
INDIAN TOBACCO COMPANY LIMITED
History
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company
of India Limited'. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata,
was the centre 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. The Company's ownership progressively indianised, and the name of the
Company was changed to I.T.C. Limited in 1974. In recognition of the Company's multibusiness portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels,
Information Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods,
Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the Company's name
were removed effective September 18, 2001. The Company now stands rechristened ITC
Limited.
ITC is one of India's foremost private sector companies with a market capitalization of nearly
19505 cr. and a turnover of over is 12369 cr. ITC also ranks among India's top 10 `Most
Valuable (Company) Brands', in a study conducted by Brand Finance and published by the
Economic Times. ITC was the first company in India to voluntarily seek a corporate
governance rating. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and
the World's Most Reputable Companies by Forbes magazine, among India's Most Respected

18

Companies by Business World and among India's Most Valuable Companies by Business
Today.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Personal Care, Greeting Cards, 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 and Greeting
Cards.
ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is
aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including
e-enabled services and business process outsourcing.
ITC's production facilities and hotels have won numerous national and international awards
for quality, productivity, safety and environment management systems. ITC was the first
company in India to voluntarily seek a corporate governance rating.
ITC employs over 21,000 people at more than 60 locations across India. The Company
continuously endeavors to enhance its wealth generating capabilities in a globalizing
environment to consistently reward more than 3, 97,000 shareholders, fulfill the aspirations
of its stakeholders and meet societal expectations. This over-arching vision of the company is
expressively captured in its corporate positioning statement:
ITC Leadership
Flowing from the concept and principles of Corporate Governance adopted by the Company,
leadership within ITC is exercised at three levels. The Board of Directors at the apex, as
trustee of shareholders, carries the responsibility for strategic supervision of the Company.
The strategic management of the Company rests with the Corporate Management Committee
comprising the whole time Directors and members drawn from senior management. The
executive management of each business division is vested with the Divisional Management

19

Committee (DMC), headed by the Chief Executive. Each DMC is responsible for and totally
focused on the management of its assigned business.
This three-tiered interlinked leadership process creates a wholesome balance between the
need for focus and executive freedom, and the need for supervision and control.

Vision
Sustain ITCs position as one of Indias most Valuable Corporation through world class
performance, creating growing value for the Indian economy and the companys
stakeholders

Mission
To enhance the wealth generating capability of the enterprise in a globalizing
environment, delivering superior and sustainable Stakeholder value

ITC limited is one of the top three private sector companies in India. It is a market leader in
India in Cigarettes & Tobacco, hotels, packaging, specialty papers and paperboards. It has
also entered into the life style retailing business with the lunch of the wills sports range of
relaxed wear. It has also spin off its information technology (I.T) business into a wholly
owned subsidiary to more aggressively pursue emerging opportunities.
ITC has a market capitalization of around US $ 4 billion and a turnover of over US $
1.8billion. It employees 12,000 employees at over 60 locations across India, and nearly1,
50,000 shares holders.
Over the years, ITC has evolved from a single product company to a multi-business
corporation. Its businesses are spread over a wide spectrum, ranging from cigarettes and
tobacco to hotels, packaging, paper and paperboards and international commodities
trading.
Each of these businesses is vastly different from the others in its type, the state of its
Evolution and the basic nature of its activity, all of which influence the choice of the form
of Governance. The challenge of governance for ITC therefore lies in fashioning a model
20

that Addresses the uniqueness of each of its businesses and yet strengthens the unity of
purpose of the Company as a whole.
Since the commencement of the liberalization process, India's economic scenario has
begun to alter radically. Globalization will not only significantly heighten business risks,
but will also compel Indian companies to adopt international norms of transparency and
good Governance. Equally, in the resultant competitive context, freedom of executive
management and its ability to respond to the dynamics of a fast changing business
environment will be the new success factors. ITC's governance policy recognizes the
challenge of this new business reality in India.
Indian leafs Tobacco Development (ILTD) division
The leaf & tobacco arm of ITC Ltd. For over 9 decades, has pioneered the cultivation and
development of cigarette tobacco in India. It is instrumental in making India succeed in the
global cigarette tobacco market. ITC-ILTD is head quartered (HQ) at Guntur, in the state of
Andhra Pradesh, the biggest agro-commercial center for tobacco. Mysore is the gateway to
cigarette tobacco in the state of Karnataka. Sustaining ILTD leadership in the leaf business
by combining the virtues of tradition with modernity, and delivering goods and services
efficiently with a personal touch.
ITLD give one key to superior business performance, it is his ability to turn the perceptions
capabilities, and relationships of our people into the building blocks of the organization. His
track record, so far, stands testimony to this recognition and the future will be no different.
Tobacco & its processing
ITLD is controlling from tobacco seed to finally tobacco. ITLD give adoption of
contemporary Agro- techniques and the enterprising sprit of the tobacco farmer have
led to India being aknow-ledged as one of the most important tobacco producing
countries in the world. Topical climate Coupled with two monsoons facilitates the
Indian farmer to grow tobacco throughout the gear. Tobacco cultivation in India is
spread over a large geographical area covering a wide range of Soils, each growing
area producing a unique style of tobacco .The southern states of India, Andhra
Pradesh and Karnataka are the Prime cigarette type tobacco growing regions with
4,00,000 hectares land under Tobacco cultivation. India is recognized as an ideal
21

source for a variety of tobacco, offering sustainable quality produce at competitive

prices through out the Year.
ITLDs green leaf threshing (GLT) plants with a total capacity to process 520 metric
Tones per day are comparable with the best in the world. They are fully automated with the
latest equipment to process and deliver 100 million Kgs of high quality tobacco every year. It
is no surprise that they enjoy ISO9002 and ISO14001 accreditations. He have two processing
lines in the southern state of Andhra parades - chirala with 3 processing lines and antipathy
with 1 processing line. Chirala unit is first unit in India who has received the Coveted Social
Accountability Standard Certification (SA 8000). This unit ware housing facilities are
benchmarked to international standard for hygiene and infestation control. ILTD have large
wear housing capacity to stock around 100 M.Kg of finishes produce (Tobacco).
Production process of cigarettes: The production of cigarettes in ILTD two major process. One is primary process which
includes So many sub processes, which we discussed later, and other is secondary process
which includes final packing of cigarettes and lots etc.
Primary process of cigarettes: Under this process ILTD start from the leaf cutting, which he received from his GLT unit chirala.
Chirala supply leaf all the production units of ILTD in 200kg size pack.
Production unit start from there point, First of all production unit cuts 200kg.pack in to 5-6
piece and put in to machine which give moisture 10-11% to 21%of leaf and up to 38% of
stamc. After that he cut it into 30 cut and per inch length 140 cuts per inch length respectively
through cottoned rolled squire (CRS). After the processing of cutting leaf he possesses
through drying process and these times tobaccos have up to 15% moisturizer. When tobacco
is cooled then he is passed into secondary proem. Before passes secondary proem both type
of cutting result [Leaf and stems] is mixed up. The tobacco carmines and stems are then
cooled and stacked in bins-ready to be rolled into cigarettes.

22

Production division of ILTD

India leaf tobacco development (ILTD) is a major department of ITC which have four major
production division across the country such as Bang lore, (Karnataka) munger (Bihar),
Saharanpur (U.P.)& Kolkatta (W.B). These all four-production division is producing billion
cigarettes per year.
One thing is cam man amery all production division is that all units producing wills brand
and other brand of IRC is depended upon the regional requirement of cigarettes. Wills is most
valuable brand of ITC Ltd. And his share of total sales is % appox.
Brand, name and his length are as follows: -.

23

Brand, name and his length are as follows: -.

S.No.

Brand Name

Filter/with out Filter

Length

Classic

Filter

82 mm

Gold Flake (King)

Filter

82 mm

Gold Flake (Premiums)

Filter

69 mm

Wills Navy Cut

Filter

74 mm

Capstan Fl

Filter

69 mm

Bristol

Filter

69 mm

Wills Flake

Filter

69 mm

Capstan Standard

With out

58 mm

India King

Filter

82 mm

Marketing Division
ILTD have four marketing office for maintaining advertising and promotined activities. It
maintains supply of cigarette all over India. There office is situated are as follows1. Jalandar (Punjab)
2. Saharanpur (U.P)
3. Delhi (Capital Marking office)
4. Kanpur (U.P)
Secondary process of cigarette production
After making tobacco by primary process. Then begins the one rouse task of giving shape to
the cut tobacco and dressing it up in cigarette paper. The processed tobacco is spread every on
cigarette paper from roll that is anywhere from 4000 to 6000 meters in length. Then some
thing like a long pencil is formed. This pencil of tobacco column rolled into cigarette paper is
then cut into predermined sections depending on the length of the cigarette.
After that, double length filters are inserted between every two cigarette and cut in half with a
strong blade.

24

The cigarettes get collected in aluminum trays which are then stored under controlled
conditions of temperature and humidity. After storage for a few hours these are taken to the
packers machine, which pack the cigarettes sticks into pack of 10s and 20s.
Working Area of ITC Ltd
ITC is now a days doing eight (8) major area of production, distribution and servicing. these
are as followsA. Cigarettes and Tobacco.
B. Hotels.
C. Packaging
D. Paper board & Specialty paper
E. Information Technology (IT)
F. Life style retailing
G. Agro-Exports
H. Group Companies etc
A. Cigarettes and Tobacco: - ITC buys nearly 50% of all cigarettes types tobacco grown in
India. It has been India single largest integrated sources of quality tobacco for customer
in 37 countries over the last 6 decades. ITCs Comprehensive and sophist6icated R&D
facilities cover all aspects of cultivation. Processing and packaging. ITC to process and
deliver 100 million Kgs of high quality tobacco par Annam. ITC also co-operates with
government agencies to develop new varieties of tobacco and to develop new areas for
tobacco cultivation.
B. Hotels: - ITC entered into hotels field in 1975. He is giving best hospitality services in
some field. ITC have 46 hotels across 42 destination all over India.

C. Packaging: - ITC also producing packaging items likeI. Flip top boxes.
II.

Car board outers.

III.

Shells and slides.

IV.

Soft cup and strap labels

25

V.

Bundle wraps

VI.

Flap boxes

VII.

Inner frames

VIII.

Coupon inserts & Variety

IX.

Folding crotons

The major unit (factory) which is producing packaging items- one is munger (Bihar) and
other is Tiruvottiyar hear chennai.
D. Paper Board & Specialty paper: - ITC has now integrates sits paperboard & specialty
paper business into its newly created (PSPD), to how new strategic & operational
synergies. ITC is one of the world most modern and contemn porary manufactures of
packaging (paper board) boards, with a manufacturing capacity of over 2,00,000 tones par
year (1) packaging board coasted folding box boards, solid bleached sulphates board,
white unit chipboard, liquid packaging board (2) cast coated papers and boards. The
division also produced quality(a) Printing & Writing papers
(b) Eco- friendly papers
(c) Photo copier papers.
Specialty paper:- ITC is the premier manufacturer of specialty paper in India, with a
diversified product. Range ITCs specialty paper are used in the manufacturer of cigarettes,
decorative laminates. Electrical equipment, fire works and automotive factory filters. They
are also used for fire printing, packaging and carbonizing.
The division pioneered the manufacturer of specialty paper for Indian cigarette industry in
1949.
It currently offers a comprehensive range of cigarette Tissues; plug Wray, tipping base,
printed tipping papers and metailising base.
E. Information Technology (IT): - ITC has recently spun off its 20 year old information
system division into a wholly owned subsidiary to aggressively pursue growth
opportunities in this sector. ITC Infotech India Ltd offer a powerful customer value
proposition based on its in depth domains know ledge gained from the experience of
servicing a range of internal & external customers across diverse domains. 1. FMCG
26

2. Hoteliering
3. Packaging
4. Paper boards
5. Specialty papers
6. International Trading Etc.

F. Life style retelling: - ITC also manufacturing ready made garments range of
international quality of relaxed wear under the brand name wills sport. It have 48 retail
out across 38 cites in the country. Recently he also lunched another brand name john
players offers complete range of contemn porary mens wear- like shirts, Trousers, tshirts & denims. It also lunches in Nov. 2002 under brand name the classes collection.
G. Agro-Exports: - ITC international business division (IBD) is doing Exports activities of
Agriculture products and processed foods Etc. he exports following items to UK, US and
Other European countries1. Soya meal.
2. Rice
6. Aqua products.
7. Peanuts.
8. Coffee.
9. Wheat.
10. Sesame Seeds.
11. Black pepper
12. Processed & frozen fruits & vegetables.
H. Group Companies: - Main group companiesa). ITC Hotels.
b). Surya Nepal private limited.
c). International travel house
d). Land base
Associate companies -ITC filtrona.

27

ITC A RESPONSIBLE CITIZEN

ITC is a responsible corporate citizen: ITC is doing so many activities for the welfare of society and darks as a responsible corporate
leader without any gap. Some of its major societal activation for the welfare of different
section of society is as followsa. Environment, health & safety (EHS)
b. Reaching out to society
c. Preserving national heritage.
d. Supporting sustainable development
a. Envoirment, health & Safety (EHS): - As a responsible corporate citizen, ITC accords
the highest priority to environment, occupational health, and safety. It is committed to
protecting the environment in which it operates. It is equally committed to ensuring very high
standard of safety at the work place.
It is a relegations of ITC high EHS standards that lit has been the recipient of several
National and international awards- such asISO 14000
Sword of honour
Royal society of prevention of accidents awards.
National safety awards.
The corporate Environment award.
The golden peacock environment management award.
Excellence in pollution control management.
Prashanna patra award.
National Award for excellence in energy conservation.
b. Reaching out to society: - As a responsible corporate citizen, ITC promotes art, culture
and education. Besides working for the protection and enrichment of the environment and
over all social development.
Community development.
28

Education.
Protecting the environment.
c. Preserving National Heritage: - As a socially responsible corporate citizen, ITC
Endeavors to creates value for the Indian society in multiple ways, one of them being
Preservation of India rich culture heritage ITC has made significant contribution to the
Promotion of Indian classical music, theatre, are and cuisine

GRADES FOR MANAGERS

Senior Managers. (Managers)

Middleman Managers.(Asst. Managers)

Junior Managers. (Executives)

GRADES FOR WORKERS

Unskilled Workers.

Semi Skilled Workers.

Skilled Workers.

Highly Skilled Workers.

29

ORGANISATION STRUCTURE / HIERARCHY

ITC a world leading electric company works as a Team System.
Hierarchy of this organization is as follows:
Unit Head (Managing Director)

Functional Heads (General Managers)

Departmental Heads (Managers)

Section In charge (Asst. Managers)

Supervisors (Executives)

Workers

ITC constantly endeavors to benchmark its products, services and processes to global
standards. The Company's pursuit of excellence has earned it national and international
honors. ITC is one of the eight Indian companies to figure in Forbes A-List for 2004,
featuring 400 of "the world's best big companies". Forbes has also named ITC among
Asia's'Fab 50' and the World's Most Reputable Companies
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-Choupal initiative which has achieved the scale of a movement in rural
30

India. The Development Gateway Award recognizes ITC's e-Choupal as the most exemplary
contribution in the field of Information and Communication Technologies (ICT) for
development during the last 10 years. ITC e-Choupal won the Award for the importance of its
contribution to development priorities like poverty reduction, its scale and replicability,
sustainability and transparency.
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).
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's cigarette factory in Kolkata is the first such unit in India to get ISO 9000 quality
certification and the first among cigarette factories in the world to be awarded the ISO 14001
certification
ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO 14001
Environment Management Systems certification.
ITC Filtrona is the first cigarette filter company in the world to obtain ISO 14001
ITC Infotech finds pride of place among a select group of SEI CMM Level 5 companies in
the world.
31

ITC's Green Leaf Threshing plant in Chirala is the first in India and among the first 10
units in the world to bag the Social Accountability (SA 8000) certification
ITC Chairman Y C Deveshwar has received several honors over the years. Notable
among them are:
Year

Award

2007

SAM/SPG Sustainability Leadership Award conferred at the

2006

International Sustainability Leadership Symposium, Zurich.

Business Person of the Year from UK Trade & Investment, the UK
Government organisation that supports overseas businesses in that

2006
2005
2001

country.
Inducted into the `Hall of Pride' by the 93rd Indian Science Congress
Honoured with the Teacher's Lifetime Achievement Award
Manager Entrepreneur of the Year from Ernst & Young Retail
Visionary of the Year from Images, India's only fashion and retail

1998
1996
1994

trade magazine
Honorary Fellowship from the All India Management Association
Distinguished Alumni Award from IIT, Delhi
Marketing Man of the Year from A&M, the leading marketing

1986

magazine
Meridien Hotelier of the Year

ITC has won the 'Enterprise Business Transformation Award' for Asia Pacific (Apac),
instituted by Infosys Technologies and Wharton School of the University of Pennsylvania
for its celebrated e-Choupal initiative.
ITC is the only Indian FMCG Company to have featured in the Forbes 2000 list. The
Forbes 2000 is a comprehensive ranking of the world's biggest companies, measured by a
composite of sales, profits, assets and market value. The list spans 51 countries and 27
industries.
ITC continues its dominance of The Economic Times' Brand Equity listing of India's
100 Biggest FMCG Brands, with three brands from its stable making it to the top five. Gold

32

Flake remains India's biggest FMCG brand in terms of sales. Navy Cut ranks at No. 4.
ITC's Scissors brand ranks at No 5 and is the only new entrant into the top 10.
Restaurant magazine has chosen Bukhara at the ITC Maurya, New Delhi as the best
Indian restaurant in the world and the best restaurant in Asia. Bukhara has also been
adjudged one of the top 50 restaurants in the world by the London based magazine 'The
Good Food Guide'. Bukhara is the only South Asian restaurant to figure in the list.
ITC's Lifestyle Retailing Business Division (LRBD) has won the "Best Supply Chain
Practices Award" for time-effective and cost-efficient Logistics Management in
Organized Retail. The awards were organized by Retailers Association of India (rai) in
association with ITW Signode - the International leaders in packaging solutions.

ITCs market 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.
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 ITCs various businesses.
Create distributed leadership within the organisation by nurturing talented and focused top
management teams for each of the businesses.

33

Continuously strengthen and refine Corporate Governance processes and systems to

catalyse the entrepreneurial energies of management by striking the golden balance between
executive freedom and the need for effective control and accountability.

ITC'S EHS POLICY

34

ITCs mission is to sustain and enhance the wealth-generating capacity of its portfolio of
businesses in a progressively globalising environment. As one of Indias premier corporations
employing a vast quantum of societal resources, ITC seeks to fulfil a larger role by enlarging
its contribution to the society of which it is a part. The trusteeship role related to social and
environmental resources, aligned to the pursuit of economic objectives, is the cornerstone of
ITCs Environment, Health and Safety philosophy. ITCs EHS philosophy cognises for the
twin needs of conservation and creation of productive resources.
In the multi-business context of ITC, Corporate Strategies are designed to create enduring
value for the nation and the shareholder, through leadership in each business and the
attainment of world-class competitive capabilities across the value chain. The objective of
leadership extends to all facets of business operations including Environment, Health and
Safety.
ITC is, therefore, committed to conducting its operations with due regard for the
environment, and providing a safe and healthy workplace for each employee. Various
international and national awards and accreditations stand testimony to ITCs commitment to
EHS. Such external recognition further reinforces the need to direct the collective endeavour
of the Companys employees at all levels towards sustaining and continuously improving
standards of Environment, Health and Safety in a bid to attain and exceed benchmarked
standards, whether regulatory or otherwise.

In particular, it is ITCs EHS policy

To contribute to sustainable development through the establishment and

implementation of environment standards that are scientifically tested and meet the
requirement of relevant laws, regulations and codes of practice.

To take account of environment, occupational health and safety in planning and

decision-making.

To provide appropriate training and disseminate information to enable all employees

to accept individual responsibility for Environment, Health and Safety, implement
best practices, and work in partnership to create a culture of continuous improvement.
35

To instil a sense of duty in every employee towards personal safety, as well as that of
others who may be affected by the employees actions.

To provide and maintain facilities, equipment, operations and working conditions

which are safe for employees, visitors and contractors at the Companys premises.

To ensure safe handling, storage, use and disposal of all substances and materials that
are classified as hazardous to health and environment.

To reduce waste, conserve energy, and promote recycling of materials wherever

possible.

To institute and implement a system of regular EHS audit in order to assure

compliance with laid down policy, benchmarked standards, and requirements of laws,
regulations and applicable codes of practice.

To proactively share information with business partners towards inculcating worldclass EHS standards across the value chain of which ITC is a part.

All employees of ITC are expected to adhere to and comply with the EHS Policy and
Corporate Standards on EHS.
ITCs EHS Policy extends to all sites of the Company. It will be the overall responsibility of
the Divisional/SBU Chief Executives, through the members of their Divisional Management
Committees, General Managers and Unit Heads, to ensure implementation of this Policy and
Corporate Standards on EHS, including formation of various committees and designating
individuals for specific responsibilities in respect of their Division/SBU.
The Corporate EHS Department is responsible for reviewing and updating Corporate
Standards on EHS, and for providing guidance and support to all concern.

Corporate Governance
Preamble
Over the years, ITC has evolved from a single product company to a multi-business
corporation. Its businesses are spread over a wide spectrum, ranging from cigarettes and
tobacco to hotels, packaging, paper and paperboards and international commodities trading.
Each of these businesses is vastly different from the others in its type, the state of its
evolution and the basic nature of its activity, all of which influence the choice of the form of
governance. The challenge of governance for ITC therefore lies in fashioning a model that

36

addresses the uniqueness of each of its businesses and yet strengthens the unity of purpose of
the Company as a whole.
Since the commencement of the liberalisation process, India's economic scenario has begun
to alter radically. Globalisation will not only significantly heighten business risks, but will
also compel Indian companies to adopt international norms of transparency and good
governance. Equally, in the resultant competitive context, freedom of executive management
and its ability to respond to the dynamics of a fast changing business environment will be the
new success factors. ITC's governance policy recognises the challenge of this new business
reality in India.

DEFINITION AND PURPOSE

ITC defines Corporate Governance as a systemic process by which companies are directed
and controlled to enhance their wealth generating capacity. Since large corporations employ
vast quantum of societal resources, we believe that the governance process should ensure that
these companies are managed in a manner that meets stakeholders aspirations and societal
expectations.
CORE PRINCIPLES
ITC's Corporate Governance initiative is based on two core principles. These are :
i.

Management must have the executive freedom to drive the enterprise forward without
undue restraints; and

ii.

This freedom of management should be exercised within a framework of effective

accountability.

ITC believes that any meaningful policy on Corporate Governance must provide
empowerment to the executive management of the Company, and simultaneously create a
mechanism of checks and balances which ensures that the decision making powers vested in
the executive management is not only not misused, but is used with care and responsibility to
meet stakeholder aspirations and societal expectations.
Cornerstones
From the above definition and core principles of Corporate Governance emerge the
cornerstones

of

ITC's

governance

philosophy,

namely

trusteeship,

transparency,

empowerment and accountability, control and ethical corporate citizenship. ITC believes that
37

the practice of each of these leads to the creation of the right corporate culture in which the
company is managed in a manner that fulfls the purpose of Corporate Governance.
Trusteeship :
ITC believes that large corporations like itself have both a social and economic purpose. They
represent a coalition of interests, namely those of the shareholders, other providers of capital,
business associates and employees. This belief therefore casts a responsibility of trusteeship
on the Company's Board of Directors. They are to act as trustees to protect and enhance
shareholder value, as well as to ensure that the Company fulfils its obligations and
responsibilities to its other stakeholders. Inherent in the concept of trusteeship is the
responsibility to ensure equity, namely, that the rights of all shareholders, large or small, are
protected.
Transparency :
ITC believes that transparency means explaining Company's policies and actions to those to
whom it has responsibilities. Therefore transparency must lead to maximum appropriate
disclosures without jeopardising the Company's strategic interests. Internally, transparency
means openness in Company's relationship with its employees, as well as the conduct of its
business in a manner that will bear scrutiny. We believe transparency enhances accountability.
Empowerment and Accountability :
Empowerment is an essential concomitant of ITC's first core principle of governance that
management must have the freedom to drive the enterprise forward. ITC believes that
empowerment is a process of actualising the potential of its employees. Empowerment
unleashes creativity and innovation throughout the organisation by truly vesting decisionmaking powers at the most appropriate levels in the organisational hierarchy.
ITC believes that the Board of Directors are accountable to the shareholders, and the
management is accountable to the Board of Directors. We believe that empowerment,
combined with accountability, provides an impetus to performance and improves
effectiveness, thereby enhancing shareholder value.

Control :

38

ITC believes that control is a necessary concomitant of its second core principle of
governance that the freedom of management should be exercised within a framework of
appropriate checks and balances. Control should prevent misuse of power, facilitate timely
management response to change, and ensure that business risks are pre-emptively and
effectively managed.
Ethical Corporate Citizenship :
ITC believes that corporations like itself have a responsibility to set exemplary standards of
ethical behaviour, both internally within the organisation, as well as in their external
relationships. We believe that unethical behaviour corrupts organisational culture and
undermines stakeholder value.
ITC Ltd. Policy on Human Rights
ITC believes that all its employees must live with social and economic dignity and freedom,
regardless of nationality, gender, race, economic status or religion. In the management of its
businesses and operations therefore, ITC ensures that it upholds the spirit of human rights as
enshrined in existing international standards such as the Universal Declaration and the
Fundamental Human Rights Conventions of the ILO.
Policy
ITC upholds international human rights standards, does not condone human rights abuses,
and creates and nurtures a working environment where human rights are respected without
prejudice.
Implementation
The Corporate Human Resources function of ITC is responsible for the Human Rights Policy
design, implementation and updation.The policy is implemented at all locations of ITC
through a set of separate policies and procedures covering each of the main constituents of
human rights applicable at the workplaces.
Monitoring & Audit
The assessment procedures for different constituents of this policy are defined against each
specific policy.
Consideration of Human Rights Impacts Across the Supply Chain
39

As a large and multi-product enterprise whose products are benchmarked nationally and
internationally, ITC's main supply chains can be grouped as follows:
1. For all its operations, technology, machinery and equipment are sourced from reputed
and globally benchmarked suppliers/vendors who are expected to follow
internationally accepted norms and standards on human rights.
2. ITC's major businesses are vertically integrated across several Divisions. A substantial
part of the supply chain is therefore internal through strategic backward linkages.
Common values relating to human rights performance are shared across this supply
chain.
3. Being a major agri-based company, the agriculture sector is a major supplier of inputs
for its operations. The bulk of agricultural commodities are procured from state
controlled trading platforms and the open market.
A very small proportion of ITC's business consists of supply chains comprising local vendors
and suppliers. The policy framework for such entities is enunciated separately in 'Policy to
Ensure

Respect

for

Human

Rights

across

the

Supply

Chain'.

Policy to Prevent Discrimination at Workplace

ITC acknowledges that every individual brings a different and unique set of perspectives and
capabilities to the team. A discrimination-free workplace for employees provides the
environment in which diverse talents can bloom and be nurtured. This is achieved by
ensuring that a non-discrimination policy and practice is embedded across the Company in
line with corporate principles and benchmarked business practices.
Policy
ITC's approach to its human resources is premised on the fundamental belief in fostering
meritocracy in the organisation which, pari passu, promotes diversity and offers equality of
opportunity to all employees. ITC does not engage in or support direct or indirect
discrimination in recruitment, compensation, access to training, promotion, termination or
retirement based on caste, religion, disability, gender, age, race, colour, ancestry, marital
status or affiliation with a political, religious, or union organization or minority group.

40

Implementation
The policy is communicated to all employees through induction programmes, policy manuals
and intranet portals.
The custodian of this policy is the head of each operational unit and Divisional Chief
Executives of the respective business.
ITC's complaints resolution procedure is premised on the freedom of employees to approach
higher officials beyond his/her immediate superior. For the unionised employees, compliance
of the policy is ensured through a robust grievance handling procedure and the presence of a
union that brings violations to the notice of the unit HR head.
Monitoring & Auditing
The accountability for the application of the non-discrimination employment policy rests with
the Unit Head who reviews anti-discriminatory complaints annually or on a case-by-case
basis.
The Corporate Human Resources function conducts non-discrimination reviews annually on a
sample basis with unit heads and through on-site assessments
ITC's Core Values are aimed at developing a customer-focused, high-performance
organisation which creates value for all its stakeholders:
Trusteeship
As professional managers, we are conscious that ITC has been given to us in "trust" by all our
stakeholders. We will actualise stakeholder value and interest on a long term sustainable
basis.
Customer Focus
We are always customer focused and will deliver what the customer needs in terms of value,
quality and satisfaction.

Respect For People

We are result oriented, setting high performance standards for ourselves as individuals and
teams.
We will simultaneously respect and value people and uphold humanness and human dignity.
We acknowledge that every individual brings different perspectives and capabilities to the
team and that a strong team is founded on a variety of perspectives.
41

We want individuals to dream, value differences, create and experiment in pursuit of

opportunities and achieve leadership through teamwork.
Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we do.
Innovation
We will constantly pursue newer and better processes, products, services and management
practices.
Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In pursuit of
our goals, we will make no compromise in complying with applicable laws and regulations at
all levels
ITC believes that all its employees must live with social and economic dignity and freedom,
regardless of nationality, gender, race, economic status or religion. In the management of its
businesses and operations therefore, ITC ensures that it upholds the spirit of human rights as
enshrined in existing international standards such as the Universal Declaration and the
Fundamental Human Rights Conventions of the ILO.
Policy
ITC upholds international human rights standards, does not condone human rights abuses,
and creates and nurtures a working environment where human rights are respected without
prejudice.
Implementation
The Corporate Human Resources function of ITC is responsible for the Human Rights Policy
design, implementation and updation.
The policy is implemented at all locations of ITC through a set of separate policies and
procedures covering each of the main constituents of human rights applicable at the
workplaces.
Monitoring & Audit
The assessment procedures for different constituents of this policy are defined against each
specific policy.

Consideration of Human Rights Impacts Across the Supply Chain

As a large and multi-product enterprise whose products are benchmarked nationally and
internationally, ITC's main supply chains can be grouped as follows:
42

1. For all its operations, technology, machinery and equipment are sourced from reputed
and globally benchmarked suppliers/vendors who are expected to follow
internationally accepted norms and standards on human rights.
2. ITC's major businesses are vertically integrated across several Divisions. A substantial
part of the supply chain is therefore internal through strategic backward linkages.
Common values relating to human rights performance are shared across this supply
chain.
3. Being a major agri-based company, the agriculture sector is a major supplier of inputs
for its operations. The bulk of agricultural commodities are procured from state
controlled trading platforms and the open market.
A very small proportion of ITC's business consists of supply chains comprising local vendors
and suppliers. The policy framework for such entities is enunciated separately in 'Policy to
Ensure Respect for Human Rights across the Supply Chain'
Policy to Ensure Respect for Human Rights Policy across the Supply Chain

ITC provides products and services of superior quality and value by sourcing its technologies,
equipment and inputs from reputed international and Indian manufacturers and suppliers.
Common values, relating to human rights performance, are shared across the entire supply
chain because ITC is committed to the importance of a socially responsible and accountable
supply chain.
Policy
ITC nurtures an internal working environment which respects human rights without
prejudice. Likewise, it expects its business partners to establish a human rights compliant
business environment at the workplace.
Implementation
The responsibility for implementation of this policy rests with the Divisional Chief Executive
of the concerned business and the Unit Manager. The policy is communicated internally
through policy manuals and intranet portals, and externally by the HR personnel of concerned
units to vendors/suppliers.
Monitoring & Audit
ITC has established a policy intent for mapping/monitoring progress and performance of
existing and potential vendors/suppliers on human rights performance.

43

Policy to Prevent Discrimination at Workplace

ITC acknowledges that every individual brings a different and unique set of perspectives and
capabilities to the team. A discrimination-free workplace for employees provides the
environment in which diverse talents can bloom and be nurtured. This is achieved by
ensuring that a non-discrimination policy and practice is embedded across the Company in
line with corporate principles and benchmarked business practices.
Policy
ITC's approach to its human resources is premised on the fundamental belief in fostering
meritocracy in the organisation which, pari passu, promotes diversity and offers equality of
opportunity to all employees. ITC does not engage in or support direct or indirect
discrimination in recruitment, compensation, access to training, promotion, termination or
retirement based on caste, religion, disability, gender, age, race, colour, ancestry, marital
status or affiliation with a political, religious, or union organization or minority group.
Implementation
The policy is communicated to all employees through induction programmes, policy manuals
and intranet portals.
The custodian of this policy is the head of each operational unit and Divisional Chief
Executives of the respective business.
ITC's complaints resolution procedure is premised on the freedom of employees to approach
higher officials beyond his/her immediate superior. For the unionised employees, compliance
of the policy is ensured through a robust grievance handling procedure and the presence of a
union that brings violations to the notice of the unit HR head.
Monitoring & Auditing
The accountability for the application of the non-discrimination employment policy rests with
the Unit Head who reviews anti-discriminatory complaints annually or on a case-by-case
basis.
The Corporate Human Resources function conducts non-discrimination reviews annually on a
sample basis with unit heads and through on-site assessments.

Policy on Freedom of Association

ITC's culture is characterized by cooperative relationships and high employee involvement

that relies on building partnerships and interdependence. Adhering to these principles has
helped build, sustain and strengthen harmonious employee relations in the organisation.
Policy
44

ITC respects the employees' right to organize themselves into interest groups as initiatives of
the workers, independent from supervision by the management. In keeping with the spirit of
this Policy, employees are not discriminated against for exercising this right.
Implementation
The policy is communicated to all employees through induction programmes, policy manuals
and intranet portals.
The custodian of this policy is the HR head of each operational unit who reports directly to
Unit Head on such issues.
The actualisation of this policy is evident from the joint agreements and minutes that are
signed between the union and the management.
Monitoring & Audit
Each ITC Unit has appropriate systems and checks to ensure compliance with the Policy and
statutory provisions, including means for filing of grievances, collective bargaining
agreements and minutes from worker meetings.
Compliance with the Policy is regularly monitored by Divisional and Corporate HR.
Policy Prohibiting Child Labour and Preventing Forced Labour from Workplace
The foundation of ITC's "No Child or Forced Labour policy" is based on the Company's
commitment to find practical, meaningful and culturally appropriate responses to support the
elimination of such labour practices. It thus endorses the need for appropriate initiatives to
progressively eliminate these abuses.
Policy
ITC does not employ any person below the age of eighteen years in the workplace.
ITC prohibits the use of forced or compulsory labour at all its units. No employee is made to
work against his/her will or work as bonded/forced labour, or subject to corporal punishment
or coercion of any type related to work.
Implementation
This policy is publicly available throughout the Company and clearly communicated to all
employees in a manner in which it can be understood through induction programmes, policy
manuals and intranet portals.
The responsibility for the implementation of the policy rests with the Units HR Department
and the security staff who do not permit underage persons to enter the factory as workers.

45

Employment contracts and other records documenting all relevant details of the employees,
including age, are maintained at all units and are open to verification by any authorized
personnel or relevant statutory body.
Compliance with the policy is evident in the transparent system of recruitment and the policy
of exit interviews which are undertaken by a manager not directly connected with the
employee. For the unionised employees, compliance is also ensured through a robust
grievance handling procedure and the presence of a union that brings violations to the notice
of the unit HR head.
Monitoring & Audit
Sample checks of the records are undertaken annually by Corporate Human Resources
function.
Audit and assessment is undertaken annually by Corporate Internal Audit and the
Environment, Occupation Health and Safety function.
Policy on Information and Consultation on Changes
ITC's core values support an employee engagement process that aligns its employees with a
shared vision and purpose of the Company in the belief that every individual brings a
different perspective and capability to the team. ITC thus harnesses the creative potential of
all its employees by promoting a culture of partnerships to unleash relevant synergies
between different groups of employees.
Policy
All major changes in operations involving work processes, manning norms and other
productivity linked issues are carried out after discussions with the employees and the
recognized unions at each location.
Implementation
Business plans are shared with employees at all units through a series of formal
communication meetings, and through the intranet portals. Unionised employees at the
concerned units are informed of all major changes well in advance through their
representatives.
The responsibility for the implementation of the policy rests with the Unit's HR Department
in the case of unionized employees and with the concerned Divisional Management
Committees for other employees.
The employees are given enough time to consider the implications of change and an
opportunity to discuss their apprehensions, if any, with the management.
46

The Policy is actualised through consultative meetings with representatives of employees,

culminating in joint minutes/agreements.
Monitoring & Auditing
Compliance with the Policy is regularly monitored by the Unit Head.
HIV/AIDS: Policy Guidelines
Background
ITC is committed to providing a safe and healthy work environment to all its employees.
These policy guidelines on HIV/AIDS are an endorsement of this commitment and, in
particular, of the Company's commitment to specific programmes and actions in response to
the HIV epidemic.
The Company's position is based on scientific and epidemiological evidence that people with
HIV/AIDS do not pose a risk of transmission of the virus to co-workers by casual, non-sexual
contact in the normal work setting.
Policy Guidelines
Compliance
The Company's policies on HIV/AIDS with regard to its employees will, at a minimum,
comply with all relevant Central and State legislation and the Company will implement all
policies and directions of the Government regarding HIV/AIDS whenever issued.
1. Prevention through Awareness
The Company will provide to all its employees sensitive, accurate and the latest
information about risk reduction strategies in their personal lives, with the objectives
of reducing the stigma of HIV/AIDS, encouraging safe behaviour and improving
understanding of treatment.
2. Safe and Healthy Workplace
The Company is committed to providing a safe and healthy workplace to all its
employees. It is the Company's objective that employees will have access to health
services to prevent and manage HIV/AIDS.
3. Non-discrimination
The Company will not discriminate against any employee infected by HIV/AIDS with
regard to promotions, training and other privileges and benefits as applicable to all
employees.

47

i.

A HIV positive employee will be allowed to continue to work in his/her job

unless

Medical conditions interfere with the specific job being done, in which case
reasonable alternative working arrangements will be made; or
The employee is incapacitated to perform his/her duties and is declared medically
unfit by a medical doctor, in which case the employee will be assisted to rehabilitate
himself/herself outside the Company.
ii.

The Company will not make pre-employment HIV/AIDS screening mandatory

as part of its fitness to work assessment. Screening of this kind refers to direct
methods (HIV testing), indirect methods (assessment of risk behaviour), and
questions about HIV tests already taken.

iii.

HIV/AIDS test will not be part of the annual health check-ups unless
specifically requested for by an employee.

1. Confidentiality
Voluntary testing for HIV/AIDS when requested for by the employee, will be carried out by
private or community health services and not at the workplace.
There will no obligation on the part of the employees to inform the Company about their
clinical status in relation to HIV/AIDS.
Information on clinical diagnosis of an employees' status in terms of his/her HIV/AIDS status
if advised to the Company, will be kept strictly confidential.
Management Approach
Policy: The Company's commitment in the area of economic performance is encapsulated in
its Vision statement, which is 'to sustain ITC's position as one of India's most valuable
corporations through world-class performance, creating growing value for the Indian
economy and the Company's stakeholders'. ITC's Mission is 'to enhance the wealth
generating capability of the enterprise in a globalising environment delivering superior and
sustainable stakeholder value'.
The Company's strategy is to ensure that each of its businesses is world-class and
internationally competitive in the Indian global market in the first instance, and progressively
in the offshore global markets.
ITC, as a premier 'Indian' enterprise, consciously exercises the strategic choice of
contributing to and securing the competitiveness of the entire value chain of which it is a part.

48

This philosophy has shaped the Company's approach to business into 'a commitment beyond
the market'.
Goals and Performance: At the enterprise level the Company's goals include:

Sustaining ITC's position as one of India's most valuable corporations

Achieving leadership in each of the business segments within a reasonable time frame

Achieving a Return on Capital Employed (ROCE) in excess of the Company's cost of

capital, at all times

Amongst listed companies in the private sector, ITC ranked 4th in terms of Gross Turnover
and 3rd in terms of pre-tax profits for the financial year ended 31st March 2006. The
Company ranked 6th by market capitalisation amongst listed private sector companies in the
country, as at 31st March 2006.
The Company has consistently achieved a ROCE well in excess of its cost of capital. Of the
Rs.10,325 crores of 'value added' by the Company during the financial year ended 31st March
2006, 74% represented Contribution to the Exchequer.
Please refer to the 'Report of the Directors and Management Discussion and Analysis' section
of the Report and Accounts 2006 (available on itcportal.com) for a detailed discussion on the
Company's market standing in each of the business segments.
Context: Please refer to the 'Report of the Directors and Management Discussion and
Analysis' section of the Report and Accounts 2006 for a detailed discussion on the business
environment, opportunities, key challenges, etc. pertaining to each of the Company's
businesses (available at www.itcportal.com).

49

SWOT Analysis
The following point shows the internal and external factors affecting the market opportunities
for ITC. This SWOT analysis also shows ITC internal strengths such as their experienced
management team, a competitive product line, a global marketing realm, and the continuous
efforts by their research and development to research trends in the industry and to be creative
in exploiting those trends. Some possible opportunities noted in the SWOT analysis are the
growing markets for specialized ethnic foods and healthier food products. Another
opportunity is that the income of consumers is high enabling them to be less price sensitive,
and convenience is becoming ever more important not only to the United States but to many
countries around the world.
Although ITC has many strengths, a few weaknesses lie in the fact that the company is so
large and could possibly lose focus or have internal conflict problems. A few of the threats
ITC must stay aware of are the ease of replicability of its product line, the almost pure
competition in pricing for its products, and the quickness of technological advances causing
existing products to be no longer the most advanced.
STRENGTHS

Management
Experienced, broad base of interests and knowledge

Product Line
Unique, tastes good, competitive price, and convenient

Marketing
Diverse and global awareness

Personnel
International, diverse positions

International, diverse positions

High sales revenue, high sale growth, large capital base

Manufacturing
Low costs and liabilities due to outsourcing of bottling

Research & Development

Continuous efforts to research trends an reinforce creativity

50

Consumer/Social
Huge market in the healthy products and growing market for specialized

foods for ethnic groups

Competitive
Distinctive name, product and packaging in with regards to its markets

Technological
Internet promotion such as banner ads and keywords can increase their

sales, and more computerized manufacturing and ordering processes can increase
their efficiency

Economic
Consumer income is high, more tend to eat out, convenience is important

to U.S.
Weaknesses

Management
Large size may lead to conflicting interests

Product Line
New one calorie products have no existing customer base, generic

brands can make similar product cheaper

Marketing
May lose focus, may not be segmented enough

Personnel
Possible conflicts due to so many people, possible trouble staying focused

Finance
High expenses may have trouble balancing cash-flows of such a large operation.

Research & Development

May concentrate too much on existing products, intrapreneuralship may not

be welcomed

Consumer/Social
More expensive products than Hul. Such a high price may limit lower

income families from buying an ITC product

51

Competitive
Not entirely patentable, constant replicability by competitors

Technological
Computer breakdowns, viruses and hackers can reduce efficiency, and must

constantly update products or other competitors will be more advanced

Economic
Very elastic demand, almost pure competition

Opportunities

Expected 30% CAGR in organized market to result in better footfall and

conversion rates.
Entry into Tier 2 and Tier 3 cities.
Collaboration with foreign players because of a national brand.
An opportunity to diversify its operations in e-retailing.
As big company of India can go globally.

Threats

Employee shortage and attrition due to rapid growth in the holl market .
Impact of slowdown in consumer spends to be felt in FMCG market.
Opening up of economy for free entry of foreign players.

A SOCIAL CHARTER FOR BUSINESS

Few weeks ago, the Humble Prime Minister Dr Manmohan Singh presented a ten-point
'Social Charter' sharing his vision on the responsibility of corporate for sustainable and
inclusive growth. He said, and I quote, "Indian industry must rise to the challenge of making
our growth processes both efficient and inclusive. This is our endeavor in Government. It will
52

have to be yours too and I seek your partnership in making a success of this giant national
enterprise. If those who are better off do not act in a more socially responsible manner, our
growth process may be at risk, our polity may become anarchic and our society may get
further divided. I invite corporate India to be a partner in making ours a more humane and
just society." Unquote.
By the Y C Deveshwar mind, the Hon'ble Prime Minister's clarion call is not only a
responsibility that we, in Indian Business and Industry, must commit ourselves to but a crying
need that we cannot afford to neglect any longer. While we can justifiably be proud of India's
stellar performance in GDP growth, the growing inequity in sharing the fruits of success is
indeed a millstone that impedes the nation's true potential. Business Corporations draw
heavily on societal resources. Therefore, it is in the enlightened self-interest of business to
engage constructively in enlarging its contribution to the broader social and environmental
agenda. Competitiveness of firms can be severely threatened by unsustainable environments
and a lopsided social structure that creates islands of affluence amidst a sea of poverty. A
constructive public-private partnership for socially responsible growth is imperative and must
occupy a larger space in the future business strategies of India's corporate sector.
You are indeed aware of the enormous importance of our rural engagement in the future
growth of your Company. We have constantly strived to meaningfully blend our social
responsibilities with business competitiveness, so that we can continue to create shareholder
value even as we enhance the benefits that accrue to rural communities. We recognize that
this is the path we must pursue to ensure sustainable and inclusive growth - a philosophy that
is central to the vision articulated by Prime Minister's Social Charter for Business. I take
immense pride that the vision enunciated by the Hon'ble Prime Minister echoes the core
values that your Company has enshrined in its management philosophy and governance
structure. We have indeed been 'practitioners' of this vision for many years now. It gives me
immense satisfaction that your Company has executed, on a substantial scale, innovative
business strategies which result in 'mainstreaming' the disadvantaged sections of rural India.
ITC Ltd. Company's pioneering e-Choupal initiative today comprises 6,400 choupals
transforming the lives of over 3.5 million farmers in 38,500 villages in 9 States of India. We
hope to reach out to 10 million farmers in 100,000 villages in the not too distant future. The
Social and Farm Forestry Programme of ITC covers 65,000 hectares providing over 28
million person days of employment among the disadvantaged. In the process, we have also
53

helped sequester over 2,000 kilotons of Carbon Dioxide as a firm commitment to combating
climate change. Your Company's Integrated Watershed Development programmes in rural
areas cover nearly 27,000 hectares providing critical irrigation to water stressed areas. This
year, we have also forged a milestone partnership with the Government of Rajasthan for an
integrated watershed development project covering 5,000 hectares. ITC's initiatives to
provide opportunities for non-farm incomes through economic empowerment of women,
supplementary education and integrated animal husbandry services continue to make
significant strides in rural empowerment.
As a nation, we face today a multi-dimensional challenge to chart a growth path that will
transform the lives of almost a third of our billion populations who live at the margin. Surely,
it is not a task that any single segment of society - be it Government or Responsible Business
- can hope to accomplish in isolation. It is true that sustained high rates of GDP growth is one
of the surest ways of creating livelihoods for the disadvantaged. However, if such growth
impulses do not envision or contain conscious efforts to enhance social value, it is not
necessary that high growth rates alone will ensure social equity. In fact, there is a danger that
competitive pressures may not actually lead to development and growth in areas that need it
the most.
ALIGNING FORCES OF FRANCHISE
Given the power of consumer franchise, how do we align forces amongst all the market
participants to support a new movement for innovative CSR?
To make 'consumer choice' a compelling market driver we would need to create a supportive
institutional framework to facilitate the process of making an informed choice by market
participants. Let me briefly elaborate on some of these enablers:
First, the Policy and Institutional Framework.

Market participants would need an effective tool to make an informed choice in

favour of a Responsible Corporation. I would suggest that Government support the
development of a 'CSR Sustainability Trust mark', or a series of Trust marks defined
by Industry segments, which could be displayed on products and services to convey to
the consumer that the enterprise follows a strong commitment to building natural and
social capital. Voluntary in nature, these Trust marks, crafted on sound scientific and
market principles, will stand for the positive impact a company has made on the
54

environment and the society. The Trust marks could also be supplemented with
Ratings, based on the extent of the individual company's involvement in creating
societal capital.

The Trust marks need to be administered by a reputed and independent body or

bodies, much like the financial rating agencies. An institutional framework and
appropriate guidelines can be created by a Government-Industry partnership to
provide organizational support and credibility.

A major impetus can emerge out of Government's consideration to extend fiscal and
financial concessions, priority clearance and other incentives to organizations that
attain sustained high ratings. Government and its agencies could also give purchase
preferences to suppliers with highly rated Trust marks.

Second, the role of Industry:

In championing a sincere commitment to a Vision that embraces contribution to

Society as a key component of business strategy.

In moving towards voluntary disclosure of Triple Bottom Line performance in the

Company's Annual Reports, verified by independent reputed third party organizations.

In making a strong effort to attain the CSR Sustainability Trust marks, and displaying
the same on their products and services.

In enlarging the Company's contribution by giving preference to vendors with a strong

CSR and Sustainability orientation.

In developing a model code of responsible conduct by Industry bodies and

associations for its members.

In encouraging Modern Retail outlets to develop special sections that display and sell
products with Trust marks.

In providing support to the creation of Awards that recognize outstanding

Sustainability Performance. This would provide a tremendous reputation asset and
incentives CSR significantly.

In strengthening reporting on Sustainability based on guidelines such as the Global

Reporting Initiative. I am sure that the Indian operations of multinationals, not listed
on Indian bourses, would also want to make such public disclosures and demonstrate
their contribution to the Indian Society. I envisage a future where Sustainability

55

Reporting will form an integral part of a firm's public disclosures, and will be valued
by stakeholders in equal measure to the established practices of financial reporting.

Third, the role of Investors.

Investors play a critical role in encouraging social accountability in corporate

behavior. Globally, there are today hundreds of funds that invest in socially
responsible enterprises. These funds rely on Sustainability Indices such as Dow Jones
Sustainability World Index, FTSE4Good, Domini 400 Social Index and others to
guide investment decisions. These funds have already channeled large amount of
investors' savings into companies that have high social brand capital.

India has witnessed some welcome developments in this direction in recent years. The
ABN Amro Bank launched a Sustainable Development Fund as India's first Socially
Responsible Investing Fund. Recently CRISIL, S&P and KLD have announced that
they would develop an Environmental, Social and Corporate Governance (ESG)
Index of Indian companies. The Institute of Chartered Accountants of India is also
reported to be working on developing a similar evaluation.

Individual investors, while seeking to maximise returns from their portfolio holdings,
could exercise a powerful choice for companies with high Triple Bottom Line
performance.

Banks and Financial Institutions could ask for voluntary disclosures and factor the
rating in their lending evaluations.

Fourth, the role of Civil Society organizations.

Consumer awareness will benefit immensely if civil society organizations and

consumer bodies actively advocate the usage of Trust marks. They could also promote
awareness amongst constituents to support products and services of companies with
higher Sustainability ratings.

Schools and educational institutions could also promote awareness on responsible

corporate behavior and its association with the Trust mark ratings on products and
services, and design elements in their curriculum to groom citizens of tomorrow as
enlightened consumers.

And finally, the Media, as one of the most powerful forces of shaping public opinion,
can make a multi-dimensional contribution in this direction.
56

It is my strong belief that by aligning such powerful forces, we will see the emergence of a
new consciousness where CSR will transcend from corporate philanthropy to a competitive
value proposition.
ITC has been instrumental in setting up the CII-ITC Centre of Excellence for Sustainable
Development, which is a unique institution that seeks to address the void in developing
requisite capability on Sustainability issues among Indian industry. The Centre endeavors to
bring about transformational change in Indian businesses by providing thought leadership,
promoting awareness and building capacity. One of the major initiatives of the CII-ITC
Centre is to recognize excellence in Sustainability practices by presenting Awards to industry,
based on a rigorous process of selection. This attempt to recognize outstanding Sustainability
initiatives is designed not only to celebrate individual corporate action, but also to inspire
others to follow.
ITC convinced that in today's enlightened India, more and more companies will respond to
the appeal made by the Hon'ble Prime Minister to forge partnerships for social action, and
achieve growth with efficiency and inclusively. Making markets work for CSR will indeed
provide the compelling foundation for such initiatives.

Philosophy
ITC is a professionally managed organisation and the core value underlying our corporate
philosophy is "trusteeship". We believe this organisation has been handed to us by the various
stakeholders in "trust" and we as professionals are the "trustees" of these stakeholders. It is
therefore our responsibility to ensure that the organisation is managed in a manner that
protects and furthers the interests of our stakeholders. We recognise society as an important
stakeholder in this enterprise and therefore it is part of our responsibility to practise good
corporate citizenship.
It is also our belief that in order to serve the interests of our stakeholders in perpetuity, we
must build ITC into an institution whose dynamism and vitality are anchored in its core
value.
Corporate Governance Policy

57

The Corporate Governance Policy is the apex level instrument guiding conduct of the affairs
of the Company and clearly delineates the roles, responsibilities and authorities of the key
entities in the governance structure of the Company. This Code forms an integral part of the
Companys Governance Policy. The directors, senior management and employees must
adhere to the Corporate Governance Policy of the Company.

Good Corporate Citizenship

In the conduct of the Companys business, the practice of good corporate citizenship is a
prerequisite and embraces the following:
Dealing with People in the Organisation
In dealing with each other, directors, senior management and employees shall uphold the
values which are at the core of our HR Philosophy - trust, teamwork, mutuality and
collaboration, meritocracy, objectivity, self respect and human dignity. Indeed, these values
form the basis of our HR management systems and processes. In selection and recruitment,
while meritocracy will be a prime criterion, managers will scrupulously consider all factors
that go towards securing the interests of the Company. ITC will focus on meritocracy, equity
and upholding of Company values in all people processes including performance
management systems, appraisals, remuneration and rewards.

A Gender Friendly Workplace

As a good corporate citizen, ITC is committed to a gender friendly workplace. It seeks to
enhance equal opportunities for men and women, prevent/stop/redress sexual harassment at
the workplace and institute good employment practices.
Sexual harassment includes unwelcome sexually determined behaviour such as: unwelcome
physical contact; a demand or request for sexual favours; sexually coloured remarks; showing
pornography and any other unwelcome physical, verbal or non-verbal conduct of a sexual
nature.
ITC maintains an open door for reportees; encourages employees to report any harassment
concerns and is responsive to employee complaints about harassment or other unwelcome
58

and offensive conduct. A committee has been constituted to enquire into complaints and to
recommend appropriate action, wherever required.
ITC demands, demonstrates and promotes professional behaviour and respectful treatment of
all employees.
Relationships with Suppliers and Customers
All directors, senior management and employees shall ensure that in their dealings with
suppliers and customers, the Companys interests are never compromised. Accepting gifts
and presents of more than a nominal value, gratuity payments and other payments from
suppliers or customers will be viewed as serious breach of discipline as this could lead
tocompromising the Companys interests.
Legal Compliance
It is the Companys policy to comply fully with all applicable laws and regulations. Ensuring
legal and regulatory compliance is the responsibility of the Chief Executives of the
Businesses and the Divisional Management Committees. The Company cannot accept
practices which are unlawful or may be damaging to its reputation. Divisional Management
Committees must satisfy themselves that sound and adequate arrangements exist to ensure
that they comply with the legal and regulatory requirements impacting each business and
identify and respond to developments in the regulatory environment in which they operate. In
the event the implication of any law is not clear, the Companys Legal Department shall be
consulted for advice.
Health and Safety
The Company attaches great importance to a healthy and safe work environment. ITC is
committed to provide good physical working conditions and encourages high standards of
hygiene and housekeeping. Particular attention should be paid to training of employees to
increase safety awareness and adoption of safe working methods, particularly designed to
prevent serious or fatal accidents.
Environment Policies
The Company believes that commitment to sustainable development is a key component of
responsible corporate citizenship and therefore deserves to be accorded the highest priority.
Accordingly, the Company is committed to Best Practices in environmental matters arising
out of its business activities and expects each business to fully demonstrate this commitment.
59

In addition to complying with applicable laws and regulations, Businesses must establish
procedures for assessing the environmental effects of their present and future activities. They
should adopt Best Practices in their environmental policies and procedures.
Personal Conduct
All directors, senior management and employees have the obligation to conduct themselves
in an honest and ethical manner and act in the best interest of the Company at all times. They
are expected to demonstrate exemplary personal conduct through adherence to the following:
Avoidance of Conflict of Interest
All directors, senior management and employees must avoid situations in which their
personal interest could conflict with the interest of the Company. This is an area in which it is
impossible to provide comprehensive guidance but the guiding principle is that conflict, if
any, or potential conflict must be disclosed to higher management for guidance and action as
appropriate.
Transparency and Auditability
All directors, senior management and employees shall ensure that their actions in the conduct
of business are totally transparent except where the needs of business security dictate
otherwise. Such transparency shall be brought about through appropriate policies, systems
and processes, including as appropriate, segregation of duties, tiered approval mechanism and
involvement of more than one manager in key decisions and maintaining supporting records.
It shall be necessary to voluntarily ensure that areas of operation are open to audit and the
conduct of activities is totally auditable.
Protection of Confidential Information
No director, senior management and employee shall disclose or use any confidential
information gained in the course of employment/ association with the Company for personal
gain or for the advantage of any other person. No information either formally or informally
shall be provided to the press, other publicity media or any other external agency except
within approved policies.
Company Facilities
60

No director, senior management and employee shall misuse Company facilities. In the use of
Company facilities, care shall be exercised to ensure that costs are reasonable and there is no
wastage.
Waivers
Any waiver of any provision of this Code of Conduct for a director, senior management or
employee must be placed for approval before the Companys Board of Directors/ Corporate
Management Committee, as appropriate.
Non Adherence
Any instance of non-adherence to the Code of Conduct / any other observed unethical
behaviour on the part of those covered under this Code should be brought to the attention of
the immediate reporting authority, who shall in turn report the same to the Head of Corporate
Human Resources Senior management for the purpose of this Code would mean the
following:
-

Managers at Grade A & its equivalent, and above

Divisional & SBU Chief Executives

Corporate HODs

* This Code of Conduct, as adopted by the Board of Directors of the Company on 26th
March, 2005, was amended on 29th March, 2006

ITC, 10 other Indian firms among world's 50 'Local Dynamos'

Going global is not the only trump card for an international recognition'. As 'many as 11 India
companies, including the likes of ICICI Bank and Bharti Airtel, have made it to a list of 50
'Local Dynamos' for mastering the dynamics of their domestic markets.
These 50 firms from the world's Rapidly Developing Economies (RDEs) are "domestically
focused, at least for now, and have devised formidable business models with which to master
the intense dynamics of their local markets," global consultancy firm Boston Consultancy
Group said in a report.

61

Other Indian companies in the list are two Tata Group entities Indian Hotels and Titan
Industries besides Amul; Apollo Hospitals, CavinKare Group, ITC Limited, NIIT, SKS Micro
finance and Subhiksha. Apart from the four BRIC countries - Brazil, Russia, India and China
- the list also Includes companies from Indonesia, Malaysia, Mexico, Poland, Slovakia,
Poland and Thailand.
The study titled "The BCG 50 Local Dynamos - How Dynamic RDE based companies are
mastering their home markets - and what MNCs need to learn from them" has 15 companies
from China, including the internet search engine Baidu.com.
BCG said these companies were selected on the basis of criteria such as high growth and
original business model specifically adapted to the unique challenges posed by RDEs.
According to BCG, companies from RDEs are "staying home" and conquering their domestic
markets. Further, these firms are using innovative Business models to beat MNCs and
established domestic incumbents, many of which are state-owned entities.
BCG said ICICI Bank has an interest income of 5,196 million dollars as compared to its
MNC competitor, HSBC, which rakes in an interest income of 1,066 million dollars. "Withs
more than 950 branches and 24 million customers, it offers a diverse range of financial
products and services and competes well against local and foreign rivals," it noted. Observing
that the chosen Dynamos target their offerings mainly at the middle class, the study said India
has shown that companies can serve the poor profitably provided they use "the right
approach".
"In consumer goods, CavinKare entered the personal care market by selling shampoo in
affordable sachets to rural customers. Titan Industries produces more than seven million
watches a year... No-frills retailer Subhiksha has brought low prices and convenience to the
lives of many Indians by locating small supermarkets close' to its customers...," the study
added.
Privacy Policy

ITC Limited welcomes you to its website and looks forward to a meaningful
interaction with you.

62

ITC Limited respects your right to privacy. Any personal information that you share
with us, like your name, date of birth, address, marital status, telephone number, credit
card particulars and the like, shall be entitled to privacy and kept confidential.

ITC Limited assures you that your personal information shall not be used/disclosed by
it, save for the purpose of doing the intended business with you, or if required to be
disclosed under the due process of law.

ITC Limited assures you that in the event of your personal information being shared
with its subsidiaries, business associates etc., such sharing of information shall be for
the purpose of doing the intended business with you.

ITC Limited reserves its rights to collect, analyse and disseminate aggregate site
usage patterns of all its visitors with a view to enhancing services to its visitors. This
includes sharing the information with its subsidiaries, and business associates as a
general business practice.

In the course of its business ITC Limited may hold on-line contests and surveys as
permitted by law and it reserves its right to use and disseminate the information so
collected to enhance its services to the visitors. This shall also include sharing the
information with its subsidiaries and business associates as a general business
practice.

If you have any questions or concerns regarding your privacy issues, please do not
hesitate to contact ITC Limited at webmaster@itc.in

While ITC Limited assures you that it will do its best to ensure the privacy and
security of your personal information, it shall not be responsible in any manner
whatsoever for any violation or misuse of your personal information by unauthorised
persons consequent to misuse of the internet environment.

Cookies :- To personalise your experience on our website or to support one of our

promotions, we may assign your computer browser a unique random number called a
cookie. "Cookies" enhance website performance in important ways like personalising
your experience, or making your visit more convenient. Your privacy and security are
not compromised when you accept a "cookie" from our website. ITC Limited does not
use "cookies" to collect personal information. "Cookies" cannot read data from your
computers hard disk or read cookie files from other websites.

ITC Limited reserves its rights to revise this privacy policy from time to time at its
discretion with a view to making the policy more user friendly.
63

In the design of our website, we have taken care to draw your attention to this privacy policy
so that you are aware of the terms under which you may decide to share your personal
information with us. Accordingly, should you choose to share your personal information with
us, ITC Limited will assume that you have no objections to the terms of this privacy policy.
A SOCIAL CHARTER FOR BUSINESS
A few weeks ago, the Hon'ble Prime Minister Dr Manmohan Singh presented a ten-point
'Social Charter' sharing his vision on the responsibility of corporates for sustainable and
inclusive growth. He said, and I quote, "Indian industry must rise to the challenge of making
our growth processes both efficient and inclusive. This is our endeavor in Government. It will
have to be yours too and I seek your partnership in making a success of this giant national
enterprise. If those who are better off do not act in a more socially responsible manner, our
growth process may be at risk, our polity may become anarchic and our society may get
further divided. I invite corporate India to be a partner in making ours a more humane and
just society." Unquote.
To my mind, the Hon'ble Prime Minister's clarion call is not only a responsibility that we, in
Indian Business and Industry, must commit ourselves to but a crying need that we cannot
afford to neglect any longer. While we can justifiably be proud of India's stellar performance
in GDP growth, the growing inequity in sharing the fruits of success is indeed a millstone that
impedes the nation's true potential. Business Corporations draw heavily on societal resources.
Therefore, it is in the enlightened self-interest of business to engage constructively in
enlarging its contribution to the broader social and environmental agenda. Competitiveness of
firms can be severely threatened by unsustainable environments and a lopsided social
structure that creates islands of affluence amidst a sea of poverty. A constructive publicprivate partnership for socially responsible growth is imperative and must occupy a larger
space in the future business strategies of India's corporate sector.
You are indeed aware of the enormous importance of our rural engagement in the future
growth of your Company. We have constantly strived to meaningfully blend our social
responsibilities with business competitiveness, so that we can continue to create shareholder
value even as we enhance the benefits that accrue to rural communities. We recognise that
this is the path we must pursue to ensure sustainable and inclusive growth - a philosophy that
is central to the vision articulated by Prime Minister's Social Charter for Business.
64

I take immense pride that the vision enunciated by the Hon'ble Prime Minister echoes the
core values that your Company has enshrined in its management philosophy and governance
structure. We have indeed been 'practitioners' of this vision for many years now. It gives me
immense satisfaction that your Company has executed, on a substantial scale, innovative
business strategies which result in 'mainstreaming' the disadvantaged sections of rural India.
Your Company's pioneering e-Choupal initiative today comprises 6,400 choupals
transforming the lives of over 3.5 million farmers in 38,500 villages in 9 States of India. We
hope to reach out to 10 million farmers in 100,000 villages in the not too distant future. The
Social and Farm Forestry Programme of ITC covers 65,000 hectares providing over 28
million person days of employment among the disadvantaged. In the process, we have also
helped sequester over 2,000 kilotons of Carbon Dioxide as a firm commitment to combating
climate change. Your Company's Integrated Watershed Development programmes in rural
areas cover nearly 27,000 hectares providing critical irrigation to water stressed areas. This
year, we have also forged a milestone partnership with the Government of Rajasthan for an
integrated watershed development project covering 5,000 hectares. Your Company's
initiatives to provide opportunities for non-farm incomes through economic empowerment of
women, supplementary education and integrated animal husbandry services continue to make
significant strides in rural empowerment.
As a nation, we face today a multi-dimensional challenge to chart a growth path that will
transform the lives of almost a third of our billion population who live at the margin. Surely,
it is not a task that any single segment of society - be it Government or Responsible Business
- can hope to accomplish in isolation. It is true that sustained high rates of GDP growth is one
of the surest ways of creating livelihoods for the disadvantaged. However, if such growth
impulses do not envision or contain conscious efforts to enhance social value, it is not
necessary that high growth rates alone will ensure social equity. In fact, there is a danger that
competitive pressures may not actually lead to development and growth in areas that need it
the most.
There is also a significantly large cost involved in implementing value-chains that are socially
inclusive. While commensurate returns may flow over the longer term, there are indeed cost
barriers, over the short to medium term, that inhibit investments in such socially inclusive
initiatives. In the absence of strong fiscal or financial incentives, business enterprises would
65

hesitate to raise such investments and commit physical and human resources over a longer
term. Therefore, it is important to examine how market drivers can creatively facilitate such
long-term investments which have larger societal benefits. Corporates will be able to support
a much larger social involvement in their business strategies, if market forces facilitate such
investments and returns.

CHAPTER-4
RESEARCH METHODOLOGY

66

Type of Research:
To study the effects of technology on hr practices, the descriptive research type is adopted.

Data Sources:
Primary Data:
The primary data was collected from the different departments of employees of Andromeda
Marketing Pvt. Ltd through structured questionnaires followed by personal interview.

Secondary Data:
The secondary data was collected through manuals, journals and Internet. Data about the
company profile and other details collected from company records, websites and through
personal discussion with various executives and other employees of the company.

Type of sampling:
Proportionate Stratified Random Sampling: The sampling method used for the study is
proportionate stratified random sampling. If the number of sampling units drawn from each
stratum is in proportion to the relative population size of the stratum.

Sample Size:
The study was conducted by taking sample of 120 employees.

Sample Unit:
The sample unit is the different departments of employees of ITC

67

Types of Research:
There are four types of research:

1. Exploratory Research:
Exploratory research studies are also termed as formulated research studies. The main
purpose of such studies is that of formulating a problem for more precise investigation of
developing

the

working

hypothesis

from

an

operational

point

of

view.

2. Descriptive Research:
Descriptive research studies, which are concerned with describing the characteristics
of particulars individual, or of a group. The main characteristics of this method are
researcher has no control over the variable, he can only report what has happened or
what is happening. The methods of research utilized in described research are survey
methods of all kinds, including comparative and correction method.

3. Experimental Research:
The most scientifically valid research is experimental research. The purpose of
experimental research is to capture cause-and-effective relationships by eliminating
competing explanations of the observed findings.

4. Panel Research:
68

Longitudinal studies are based on panel data methods. A panel is a sample of

respondents who are interviewed and then reinter viewed from time to time.
Generally, panel data relate to the repeated measurements of the same variables. Each
family included in the panel, records its purchases of a number of products at regular
intervals, say, weekly, or quarterly. Over a period of time, such data will reflect
change in the buying behavior of families.

Research Instrument:
The data collected from questionnaire is utilized for having interaction with the
respondents. The free interaction which took 15-20 min with every respondent facilitated a
better understanding of the issues and also helps verify the responses by the respondents.

Questionnaire:
The data was collected with the help of a questionnaire which contains 20 questions. The
time given for filling the questionnaire is approximately 10-15 minutes.

Tools of Analysis:
Simple percentage method: Percentage method is used to calculate the opinions of the
respondents on recruitment and selection process.
69

NUMBER OF RESPONDENTS
FORMULA

__________________________

* 100

TOTAL NO. OF RESPONDENTS

CHAPTER-5
DATA INTERPRETATION
Q1.

How long you are working in the organization?

70

Table no. 1
S.No.
1
2
3
4

Working Period
0 - .05 Year
.05 2 Year
2 3 Year
3 More Year

Percentage %
7%
19%
35 %
39

Graph No. 1

Q2.

what are the various sources of recruitment in your Organization?

Table No. 2.
S.No.
1
2

Source of Recruitment
News paper Advertisement
References

Percentage
4%
8%
71

3
4

Management
Others

86%
2%

Graph No. 2

Q3. Are you satisfied with the recruitment process of your company ?
Table No. 3
SNo.
1
2

Satisfaction Level of recruitment process

Yes
No.

Percentage
68%
32%

Graph No. 3
72

Q4. Are you satisfied with your organization salary increment Policy?
Table No. 4

S.No.

Satisfied

with

salary Percentage

increment

1.
2.
3.

Yes
No.
Cant Say

47%
23%
30%
73

Graph No. 4

Q5. Are you satisfied with the training procedure given in the Organization ?

Table No. 5
S.No.

satisfied with the training Percentage

procedure

1.
2.

Yes
No.

68%
32%

74

Graph No.5

Q6. Are you getting regular training in your company ?

Table No. 6
S.No.
1.
2.

Regular training in company

Percentage

Yes
No.

68%
32%

Graph No. 6
75

Q7. What methods is used for the performance appraisal system in your organization?

Table No. 7
S.No.

Methods used for performance Percentage

1.
2.
3.

appraisal
Forced distribution
Ranking
Others

17%
72%
11%

Graph No. 7

76

Q8. Are you satisfied with your promotion activities in your Organization?

Table No. 8
S.No.

Satisfaction

level

of Percentage

promotion activities

1.
2.

Yes
No.

77%
23%

Graph No. 8
77

Q9.

Does the present performance appraisal system meet your Career advancement?

Table No. 9
S.No.

Satisfied
performance

with

present Percentage

appraisal

in

career advancement

1.
2.
3.

Yes
No.
Cant Say

66%
6%
28%

Graph No. 9
78

10.Are you comfortable with the working environment?

Table No. 10
S.No.

Satisfaction level of working Percentage

environment

1.
2.

Yes
No.

91%
9%

Graph No. 10

79

CHAPTER-6
Recommendations and suggestions
There are the following suggestions being an HR student I would like to give the
organization:

Organization should keep the eyes on the recruitment process they should recruit the
employees from outside as well means from where they get the employees they
should recruit them.

80

As the organization is growing faster they should emphasis on the training programs
even though their training programs are quite good.

Organization should regularly give the increment on the salary so that who are not
satisfied they would become also satisfied.

Organization should analyze the training methods and should adopt those methods
which are good for the employees and promotion activities should be good so that
employees are satisfied as we know this is the basic requirement of the success.

Conclusions
There are the following conclusions come up after the research of the project by filling the
questionnaire:

The working environment of the organization is excellent this is reason why

employees are doing the work their and they are stable there.

81

Generally organization appointed the employees through the recommendations that is

references even though other sources are there.

The employees are satisfied with the recruitment process of the organization.

Most of the employees consider that the salary increment policy is good.

Generally ranking method is used in the organization for the performance appraisal
system and with the promotion activities.

As they accept that the working environment is really good this shows thye are
satisfied and the satisfaction of the employees of the organization is very necessary.

And at last I would like to say that satisfied employees contribute more to the
organization this is the reason why ITC is growing faster.

Limitation Of Study

Every research has certain limitations and even this project is not free from it. Though
most of them could be avoided, some of them which inhibited this research are listed
as follows.

Sample Size taken was very small. It did not represent the whole sample
universe. For a very highly effective research the sample size has to be very

82

big. 65 (25 employees of two companies and 15 employees of the other)

chosen for this research would not represent the whole sample.

Sometimes employees did not respond truly. They might have been in a hurry
or busy with some other work and hence the feedback would have been given
for the sake of giving. Hence data collected cannot be said to be precise.

In this survey there was a lack of statistical secondary data, which hindered
some of the comparative analysis which would have made this project more
effective.

The survey was conducted at the Lucknow office only in Marketing division.
Hence the results of this project cannot represent the Performance Appraisal of
all employees in other divisions and branches.

83

BIBLIOGRAPHY
Human resource management

-by Subbarao

Human resource and Personnel management

-by Aswathappa

Research Methodology

-by C.R Kothari

Wikipedia-The Encyclopedia (www.wikipedia.com)

www.boundless.com
www.managementation.com
www.mgmtforbest.blogspot.in
www.itc.com
www.scribd.com
www.sevensteprpo.com

84

Questionnaire
1.
2.
3.
4.

Name:
Sex :
Age :

Female
Male
15-25
25-35
35-45
45-55
55-65
Above 65
Address ________________________________________________

_______________________________________________________
Q1.
S.No.
1
2
3
4
Q2.
S.No.
1
2
3
4

How long you are working in the organization?

Working Period
0 - .05 Year
.05 2 Year
2 3 Year
3 More Year
what are the various sources of recruitment in your Organization?
Source of Recruitment
News paper Advertisement
References
Management
Others

Q3. Are you satisfied with the recruitment process of your company ?
SNo.
1
2

Satisfaction Level of recruitment process

Yes
No.

Q4. Are you satisfied with your organization salary increment Policy?
S.No.

Satisfied

1.
2.
3.

increment
Yes
No.
Cant Say

with

salary

85

Q5. Are you satisfied with the training procedure given in the Organization ?

S.No.

satisfied with the training

1.
2.

procedure
Yes
No.

Q6. Are you getting regular training in your company ?

S.No.
1.
2.

Regular training in company

Yes
No.

Q7. What methods is used for the performance appraisal system in your organization?
S.No.

Methods used for performance

1.
2.
3.

appraisal
Forced distribution
Ranking
Others

Q8. Are you satisfied with your promotion activities in your Organization?

S.No.

Satisfaction

1.
2.

promotion activities
Yes
No.

Q9.
S.No.

level

of

Does the present performance appraisal system meet your Career advancement?
Satisfied
performance

with

present

appraisal

in
86

1.
2.
3.

career advancement
Yes
No.
Cant Say

10.Are you comfortable with the working environment?

S.No.

Satisfaction level of working

1.
2.

environment
Yes
No.

87