“FUCTIONAL MANAGEMENT PROJECT”

“A STUDY OF CSR ACTIVITY OF ITC

WITH E-CHOUPLE SYSTEM"

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

MASTER OF MANAGEMENT STUDIES

(UNIVERSITY OF

MUMBAI) BATCH

2022-2024

SUBMITTED BY

SIDDHANT RATHOD (C41)

UNDER THE GUIDANCE OF

PROF.DINESH SONKUL

SUBMITTED TO

DR.V.N. BEDEKAR INSTITUTE OF MANAGEMENT STUDIES, THANE.

 DECLARATION

I hereby declare that the Project titled “A Study of CSR Activity of ITC With E-
Chouple System"is an original work prepared by me and is being submitted to the Dr.
V. N. Bedekar Institute of management studies (University of Mumbai) in partial
fulfilment of MMS Degree for the academic year 2022- 24.

To the best of my knowledge, this Project Report has not been submitted earlier to this
University or to any other Affiliated College for the fulfilments MMS degree and due
acknowledgement has been made in the text to all other material used. Wherever
references have been made to intellectual properties of any individual / Institution /
Government / Private / Public Bodies / Universities , research paper, text books,
reference books, research monographs,archieves of newspapers,corporate,indivisuals,
business / Government and any other sources of intellectual properties i.e speeches,
quotations, conference proceedings, extracts from the website, working paper, seminal
work etc, they have been clearly indicated, duly acknowledged and included in the
bibliography.

Date & Sign of Candidate

 CERTIFICATE BY GUIDE

This is to certify that project report entitled “A Study of CSR Activity of ITC With E-
Chouple System"Submitted by Mr. Siddhant Rathod in the partial fulfilment of the
requirements for the award of Master of Management Studies, (University of
Mumbai) DR.V.N. Bedekar Institute of Management studies, is a record of the
candidate’s own work carried out by him under my supervision and guidance. The
matter embodied in this report is original and due acknowledgement has been
made in the text to all other material used.

Authorized Signatory

Date
 ACKNOWLEDGMENT

I want to express my gratitude to Prof. Dinesh Sonkul who served as my project mentor,
for his invaluable advice and unwavering support during the entire process. I also want to
express my sincere gratitude to my guide for his help and support with the project. Also,
thank my guide for being patient with me through all the difficulties we faced. I am thankful
to all my teachers and friends who have helped me directly and indirectly towards
completing the project.
 INDEX

Sr. No Title Pg. No

1 EXECUTIVE SUMMARY 1

1.1 OBJECTIVE OF STUDY 2

2 ABOUT ITC 3-4

3 CSR ACTIVITY OF ITC: INTRODUCTION & E-CHOUPAL 5

4 TRANSACTION MODEL 6

5 E-CHOUPAL AND TRANSACTION MODEL 7

5.1 E-CHOUPAL PLAN OF ACTION 8-9

6 E-CHOUPAL SYSTEM 10-11

6.1 COMPARISON OF E-CHOUPAL AND CONVENTIONAL SYSTEM 12

7 BENEFIT OF E-CHOUPAL 13-14

8 CHALLENGES 15

9 E-CHOUPAL ADVANTAGES 16

10 OTHER CSR ACTIVITIES OF ITC 17-18

11 LITERATURE REVIEW 19-23

12 RESEARCH METHODOLOGY 24

13 FINDING 25

14 SUGGESTIONS 26

15 CONCLUSION 27

16 BIBLIOGRAPHY 28

17 REFERENCES 29
 EXECUTIVE SUMMARY:

This social relevance project delves into the Corporate Social Responsibility (CSR) initiatives of ITC
Limited, with a specific focus on its e-Choupal system. The report provides an overview of the company,
followed by an in-depth exploration of its CSR endeavors. Beginning with an introduction to the company,
the report highlights ITC's core operations and its significance in the corporate landscape. Subsequently, it
delves into the CSR practices undertaken by ITC, emphasizing its commitment to societal welfare and
sustainable development. The report then transitions into a discussion on the theoretical framework
underpinning the project, elucidating key concepts and methodologies employed in the study. It outlines
various research methods utilized for data collection, including qualitative and quantitative approaches,
ensuring a comprehensive analysis. Moving forward, the report presents a detailed examination of data
analysis techniques employed, elucidating findings and interpretations derived from the collected data.
Through statistical analysis and qualitative assessments, the report sheds light on the efficacy of ITC's CSR
initiatives, particularly the e-Choupal system.
Overall, this report provides valuable insights into ITC's CSR practices, underscoring the company's
dedication to social responsibility and its innovative approach towards rural development through initiatives
like the e-Choupal system. By integrating theoretical frameworks, robust research methodologies, and data
analysis, the report offers a holistic understanding of ITC's CSR endeavors, paving the way for informed
discussions and further research in this domain.

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 OBJECTIVE OF STUDY:

1) Evaluate the effectiveness of ITC's CSR initiatives, particularly the e-Choupal system, in
rural development.

2) Assess the impact of ITC's CSR efforts on stakeholders and the environment.

3) Analyze the alignment of ITC's CSR strategy with global sustainability goals.

4) Identify challenges and opportunities in the implementation of ITC's CSR programs.

5) Provide actionable recommendations for enhancing the impact and sustainability of ITC's
CSR initiatives.

Overall, ITC aims to harness to transform the delivery of government service and contribute to the social
and economic development of Maharashtra.

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 ABOUT ITC

ITC was formed on 24 August 1910 under the name of Imperial Tobacco Company of India Limited, and
the company went communal on 27 October 1954. The former decades of the company's activities centered
mainly around tobacco products. In the 1970s, it diversified into non-tobacco businesses. In 1975, the
company acquired a hotel in Chennai, which was renamed the ITC-Welcome group Hotel Chola' (now
renamed Welcome Hotel Chennai).In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepali and
British joint venture, with the share divided between ITC, British American Tobacco, and various
independent domestic shareholders in Nepal. In 2002, Surya Tobacco became a subsidiary of ITC, and its
name was changed to Surya Nepal Private Limited. In 2000, ITC launched the Expressions range of greeting
cards, the Wills Sport range of casual wear, and a wholly owned information technology subsidiary, ITC
InfoTech India Limited. In 2001, ITC introduced the Kitchens of India brand of ready-to-eat Indian recipes,
which are produced and sold internationally, at first in cans and later in retort packages, and more recently
online and at festivals. In 2002, ITC entered the confectionery and staples segments and acquired the
Bhadrachalam Paperboards Division and the safety matches company WIMCO Limited.ITC diversified into
body care products in 2005. ITC Ltd (ITC) was incorporated on August 24, 1910, under the name Imperial
Tobacco Company of India Ltd to make cigarettes and tobacco. In 1975, the company entered the hospitality
business with the acquisition of ITC

Welcome group Hotel Chola. 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, AgriExports, 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 US $ 14 billion and a turnover of
over $ 5 billion. 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 Companies by Business World,

3
and India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable
(Company)

4
Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks
among Asia's 50 best performing companies compiled by Business Week. ITC has a diversified presence in
Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, AgriBusiness, Packaged Foods &
Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and
other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes,
Hotels, Paperboards, Packaging, and AgriExports, it is rapidly gaining market share even in its nascent
businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care, and Stationery. As one of
India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented.
ITC's AgriBusiness is one of India's largest exporters of agricultural products. ITC is one of the country's
biggest foreign exchange earners ($ 3.2 billion in the last decade). The Company's 'eChoupal initiative is
enabling Indian agriculture to significantly enhance its competitiveness by empowering Indian farmers
through the power of the Internet. This transformational strategy, which has already become the subject
matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural
distribution infrastructure, significantly enhancing the Company's marketing reach. ITC's wholly-owned
Information Technology subsidiary, ITC Infotech India Ltd, provides IT services and solutions to leading
global customers. ITC Infotech has carved a niche for itself by addressing customer challenges through
innovative IT solutions. Its beginnings were humble. A leased office on Radha Bazaar Lane, Kolkata, was
the center of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by
purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the
sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the
beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia
House', which came up on that plot of land two years later, would go on to become one of Kolkata's most
venerated landmarks. The Company's ownership progressively Indianised, and the name of the Company
was changed to I.T.C. Limited in 1974

5
 CSR activities of ITC Company

Introduction:

Farming is the spine of the Indian economy deliver 23 percent of GDP, and utilize 66 percent of work
compel. In light of the green uprising, India's horticultural yield has enhanced to the point that it is one
independent and a net exporter of an assorted variety of sustenance grains, yet most Indian agriculturists
have stayed poor. The causes take in leftovers of shortage period rule and a rural plan in view of little,
inefficient land prosperity. The other imperatives are frail correspondences, various go-betweens, inordinate
conviction on the storm deviation between posts separated agro-atmosphere zones, and numerous others.
The untoward outcome is clashing quality and uncompetitive costs, making it difficult for the agriculturists
to offer his make the Planet showcase. ITC's trail-blasting reaction to this inconvenience is the - e-Choupal
plot; the single biggest thusly innovation-based association by a corporate article in provincial India that is
change the Indian rancher into a dynamic learning looking for residents. Improving the information of
agriculturists and hoisting them to another request of strengthening. ITC expects to give the administrator of
master gain on even the littlest identity agriculturist alluring its intensity in the aggregate offer.

E-CHOUPAL:

E-Choupal, deriving its name from the Hindi term for "Town meeting place," represents a virtual
marketplace where farmers engage directly with processors, securing fairer prices for their produce. This
innovative platform harnesses existing intermediary networks to overcome logistical challenges, mitigate
counter-party risks, and facilitate bridge financing. Launched by ITC Limited in June 2000, e-Choupal has
burgeoned into the largest Internet-based intervention in rural India. Its primary objective is to furnish
farmers with real-time, crop-specific information, thereby enhancing their decision-making capabilities and
enabling them to align crop yields with market demand more effectively. As a web-based initiative under
ITC's IBD, E-Choupal serves as a comprehensive resource hub, offering farmers access to essential
information and services aimed at bolstering farm productivity, enhancing price realization, and reducing
transaction costs. Through the platform, farmers can access up-to-date local and global market information,
weather forecasts, and scientific farming practices in regional languages such as Hindi, Marathi, Kannada,
and Telugu. Furthermore, E- Choupal facilitates the procurement of high-quality agricultural inputs and
streamlines the purchasing process, ensuring convenience and efficiency by enabling doorstep deliveries and
seamless transactions.

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 TRADITIONAL MODEL:

In the current agricultural system in India, farmers rely on various sources of information such as the
Department of Agriculture, government colleges, and insurance agencies for guidance on weather forecasts,
modern farming practices, and insurance coverage. They typically obtain agricultural inputs from retailers
who source them from wholesalers, who in turn maintain connections with manufacturers. Following the
harvest, farmers transport their produce to local markets, known as mandis, where they sell their goods to
traders and representatives of processing companies through open outcry auctions. The government oversees
these market yards to ensure fair price discovery and regulate the aggregation of goods. Successful bidders
purchase the produce, weigh it, pay a portion of the amount to the farmers, and transport the goods to
processing However, each intermediary in this chain adds their markup to the final price, increasing the
overall cost for the processor. Consequently, despite farmers being at the beginning of the chain, they often
receive the lowest prices and margins due to the added costs along the supply chain.

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 E-CHOUPAL AND THE TRADITIONAL MODEL:

The principal fascination of e-Choupal is that it associates huge and small makers and clients and dispenses
with the need for mediators (who are basic in the conventional market). E-Choupal is a virtual market that
unites merchants and clients. Geological separation never again limits the support of agriculturists. The
primary obstacle of the customary market is that data asymmetry is natural in the market whereas e-Choupal
accommodates straightforward exchange. The exchange time at the ITC center is not exactly at the Mandi
i.e. 2 or 3 hours where as 1-2 days in Mandi. Some more focuses are:-

 Customer-driven and not subject to delegates.

 Capable of being utilized for various exchanges.
 Easily versatile once it is confirmed.
 Uses neighborhood ability and nearby individuals to create neighborhood pioneers.
 Uses all the current foundations and lawful systems.
 Scientific method for examination, testing, and weighing.

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 E-CHOUPAL PLAN OF ACTION:

1. Community Engagement: Initiate community outreach programs to raise awareness about E-Choupal
and its benefits among rural farmers. Conduct informational sessions and workshops to educate
farmers about the platform's features and how it can improve their livelihoods.

2. Infrastructure Development: Establish internet-enabled kiosks (choupals) in rural villages to serve as

access points for farmers. Ensure these kiosks are equipped with necessary hardware and software to
provide seamless access to market information, agricultural resources, and value-added services.

3. Capacity Building: Provide training and capacity-building programs for farmers to enhance their
digital literacy skills and proficiency in utilizing the E-Choupal platform. Offer workshops on topics
such as online market transactions, data interpretation, and best agricultural practices.

4. Partnership Development: Forge partnerships with local governments, NGOs, agricultural

organizations, and technology providers to strengthen the E-Choupal ecosystem. Collaborate with
financial institutions to facilitate access to credit and financial services for farmers through the
platform.

5. Content Localization: Develop and curate content in regional languages to ensure accessibility for
farmers from diverse linguistic backgrounds. Provide market information, weather updates, and
agricultural tips in languages such as Hindi, Marathi, Kannada, and Telugu to cater to the needs of
local communities.

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6. Quality Assurance: Implement quality control measures to ensure the accuracy and reliability of
information provided through the E-Choupal platform. Regularly update market prices, weather
forecasts, and agricultural advisory content to reflect real-time conditions and market trends.

7. Feedback Mechanism: Establish a feedback mechanism to gather input from farmers and
stakeholders on their experiences with E-Choupal. Use this feedback to continuously improve and
refine the platform, addressing any challenges or concerns raised by users.

8. Monitoring and Evaluation: Develop key performance indicators (KPIs) to monitor the impact and
effectiveness of E-Choupal in empowering farmers and improving agricultural outcomes. Conduct
regular evaluations and assessments to track progress toward program goals and identify areas for
optimization.

1
0
 E-CHOUPAL SYSTEM:

The E-Choupal system is a pioneering initiative developed by ITC Limited, aimed at revolutionizing agricultural supply
chains and empowering rural farmers in India. Here's an overview:

1. Direct Farmer-Buyer Interaction:

E-Choupal enables direct communication and transactions between farmers and buyers, bypassing
traditional intermediaries. This direct interaction empowers farmers to negotiate fair prices for their
produce and eliminates the need for middlemen, thereby increasing their profitability.

2. Access to Information:
E-Choupal provides farmers with access to crucial information such as real-time market prices,
weather forecasts, and agricultural best practices through internet-enabled kiosks located in rural
villages. This information empowers farmers to make informed decisions regarding crop cultivation,
harvesting, and selling.

3. Market Expansion:
By connecting farmers to a wider market beyond their local area, E-Choupal opens up new avenues
for trade and income generation. Farmers can now access buyers from distant regions, reducing their
reliance on local markets and increasing their market reach.

4. Reduced Transaction Costs:

With E-Choupal, farmers can save significantly on transaction costs by eliminating multiple layers
of intermediaries involved in traditional agricultural supply chains. This reduction in costs translates
to higher profits for farmers and lower prices for consumers.

5. Empowerment and Inclusion:

E-Choupal empowers farmers by giving them greater control over their agricultural activities and
finances. It promotes inclusivity by providing access to information and markets for smallholder
farmers who were previously marginalized in traditional agricultural systems.

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 6. Sustainable Practices:
Through E-Choupal, ITC promotes sustainable agricultural practices by disseminating information
on environmentally friendly farming techniques, crop diversification, and resource conservation.
This contributes to the long-term sustainability of agriculture and rural livelihoods.

7. Social Impact:
The E-Choupal system has had a significant social impact by improving the socio-economic status of
rural communities. It has created employment opportunities, enhanced access to education and
healthcare, and fostered community development in rural areas.

Overall, the E-Choupal system represents a successful model of technology-driven rural development,
demonstrating how innovation can empower farmers, improve agricultural productivity, and create positive
social change in rural communities.

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COMPARISON OF E CHOUPAL AND CONVENTIONAL SYSTEM:

12
 BENEFIT OF E-CHOUPAL:

1. Digital Transformation:

E-Choupal facilitates digital transformation in rural agricultural communities by providing access to

internet-enabled kiosks. These kiosks serve as hubs where farmers can access information, market
platforms, and advisory services. By embracing digital technology, farmers can improve efficiency,
access markets beyond their immediate vicinity, and stay updated on relevant agricultural practices and
market trends.

2. Credit and Insurance Access:

Through E-Choupal, farmers gain access to essential financial services such as credit and insurance.
Financial institutions partner with E-Choupal to offer credit facilities tailored to farmers' needs, enabling
them to invest in seeds, fertilizers, and equipment. Additionally, insurance providers offer customized
insurance products to protect farmers against crop failures, natural disasters, and other risks, providing
financial security and stability.

3. Leadership Development:

E-Choupal fosters leadership development among farmers by empowering them to take ownership of
their agricultural activities and participate in decision-making processes. Through training programs,
workshops, and community engagement initiatives, farmers develop leadership skills such as problem-
solving, communication, and collaboration. This empowerment enhances farmers' confidence and
capacity to advocate for their interests, driving positive change in their communities.

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4. Market Access and Diversification:

E-Choupal expands farmers' market access by connecting them to a broader network of buyers, both
locally and globally. By participating in online trading platforms facilitated by E-Choupal, farmers can
access buyers beyond their immediate vicinity, diversify their customer base, and explore new market
opportunities. This market access and diversification enable farmers to optimize their sales, negotiate
better prices, and increase their income.

5. Risk Mitigation and Resilience:

E-Choupal helps farmers mitigate risks and build resilience against agricultural uncertainties. By
providing access to timely information on weather forecasts, pest outbreaks, and market trends, E-
Choupal equips farmers with the knowledge to anticipate and respond to potential risks. Additionally,
through insurance products offered via E-Choupal, farmers can protect their livelihoods against crop
losses, ensuring financial stability and continuity in times of adversity.

 The transaction time at the ITC hub is also much faster than mandi.
 ITC has given recognition to integral partners in the supply process & not merely as agricultural
producers and thus elevating the level of respect of farmers. Similarly providing shaded seating
area while waiting for their paperwork shows ITC really cares for farmers

14
 CHALLENGES:

Phase imbalances lead to damage of equipment. Telecommunication infrastructure in villages is poor.

Telephone exchanges also have limited battery backup. In addition, there is no local support staff to
maintain or troubleshoot telephone exchanges. The support team is also short-staffed. Other challenges
are: -

 Illiteracy about computers in rural areas as well as rural population has low trust on electronic
system.
 Selection of an educated, intelligent, reliable and mature person as a Sanchalak.
 Improper knowledge about the rural market.
 The vicious circle of intermediaries (Adatiya & Brokers).
 Improper and complex user interface on e-Choupal.
 Lack of rules and regulations related to electronic Choupal.
 Mistrust about inspection, testing, and weighing of produce on centers.

ITC‘s example shows the key role of IT in providing and maintaining by a corporation but used by local
farmers to bring transparency, increase access to information, and catalyze rural transformation while
enabling efficiencies and low-cost distribution that make the system profitable and sustainable. Critical
factors in the apparent success of the venture are ITC‘s extensive knowledge of agriculture and the effort
ITC has made to retain many aspects to the existing production system, including retaining the integral
importance of local partners. ITC e-Choupal is committed to transparency and respect and fairness
towards farmers as well as local partners. There are several issues that the company has addressed.
Firstly, it is not just tweaking around but a greater efficiency in the supply chain. One of the problems in
redesigning supply chains is how to use different tools, thus making the various players still own the
chain. Here, the farmer and the team are involved in painting the big picture, so there is enthusiasm and
a feeling of ownership. experimentation-based strategies more weightage.

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 E-CHOUPAL ADVANTAGE:

The E-Choupal initiative by ITC delivers a multitude of advantages, benefiting both farmers and the
company:

1. IT for the Masses: With a reach extending across more than 35,000 villages in states like Madhya
Pradesh, Uttar Pradesh, Maharashtra, and others, E-Choupal provides invaluable farming
information to millions of farmers. Through the efforts of over 6,000 Sanchalaks and 17,000 Upa
Sanchalaks, even the most remote areas receive critical agricultural services, democratizing access to
essential resources and knowledge.

2. Multiple Benefits: E-Choupal offers farmers a diverse range of services, from accessing weather
forecasts and ordering agricultural inputs to consulting agronomists via email. Remarkably, some E-
Choupals even facilitate the purchase of life insurance, loan applications, and checking children's
exam results. While social benefits are evident, the project's core aim is business-driven, aiming to
create farmer communities that supply high-quality produce to ITC's rapidly growing agribusiness.

3. Better Payment Mechanisms: In leveraging various IT applications like Customer Relationship

Management (CRM) and supply chain management, E-Choupal ensures efficiency. By assisting
farmers in optimizing inputs and farming practices and rewarding superior quality with higher
payments, ITC preserves the source and enhances produce quality. Utilizing .NET technology, the
project's implementation timelines have significantly reduced, with subsequent extensions like the
Aqua Choupal for aquamarine farmers taking merely six to eight weeks. Today, E-Choupal stands as
a flexible and easily deployable solution, maintained by a streamlined team of professionals. This
expansion of the commodities sourced, such as maize, barley, sorghum, and pulses, throughout the
year further solidifies ITC's competitive edge in the commodities market.

In summary, the E-Choupal initiative exemplifies the symbiotic relationship between technology and
agriculture, delivering tangible benefits to farmers while bolstering the quality and sourcing capabilities
of ITC's agribusiness, thus underscoring its status as a transformative force in rural development.

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 OTHER CSR ACTIVITIES OF ITC:

ITC has been actively involved in various Corporate Social Responsibility (CSR) initiatives aimed at
ensuring environmental sustainability and promoting occupational health and safety. Some of these
initiatives include:

1. Ensuring Occupational Health and Safety: ITC prioritizes the health and safety of its employees by
implementing robust occupational health and safety measures across its operations. For example, the
company conducts regular health and safety training programs, provides personal protective
equipment (PPE) to workers, and adheres to stringent safety standards in its manufacturing facilities.

2. Conserving Energy: ITC is committed to reducing its energy consumption and promoting energy
efficiency throughout its operations. The company invests in energy-efficient technologies, conducts
energy audits, and implements measures to optimize energy use. For instance, ITC has implemented
energy-saving initiatives such as LED lighting, energy-efficient machinery, and renewable energy
projects like solar power installations.

3. Reducing Greenhouse Gases: As part of its efforts to combat climate change, ITC focuses on
reducing greenhouse gas emissions from its operations. The company invests in low-carbon
technologies, adopts cleaner production processes, and implements carbon offset projects. For
example, ITC has implemented initiatives to reduce emissions from its manufacturing units and
logistics operations, contributing to the global effort to mitigate climate change.

4. Conserving Water: Recognizing the importance of water conservation, ITC implements water
management initiatives to reduce water consumption and promote water efficiency. The company
invests in water-saving technologies, implements rainwater harvesting systems, and supports
watershed management projects. For example, ITC has implemented water recycling and reuse
projects in its manufacturing facilities and agricultural operations to minimize water wastage.

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5. Enhancing Eco-Efficiency: ITC is committed to enhancing eco-efficiency across its value chain by
optimizing resource use and minimizing environmental impacts. The company implements eco-
friendly practices such as waste reduction, resource recycling, and sustainable sourcing. For
example, ITC has implemented waste management programs to reduce waste generation and
promote recycling, contributing to a circular economy.

Overall, through these CSR initiatives, ITC demonstrates its commitment to environmental sustainability,
occupational health, and safety, while also contributing to the well-being of communities and ecosystems.

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 LITERATURE REVIEW:

(Ramgouda, 2021) India is a developing country. Corporate Social Responsibility has traditionally been
seen as a philanthropic activity in India. It is an activity that is performed in keeping with the Indian
tradition but not deliberated. At present, it has emerged as a benchmark for judging corporate excellence.
The concept of CSR was developed to fulfill company’s obligations towards the necessities of the society
as business is an integral part of the society. All the business firms have now realized that business and
society are inter- connected rather than being separate. This research paper tries to find out the objective of
such CSR activities undertaken by ITC Ltd. and HUL and analyzed the CSR funding of both companies in
different projects. The study is based on secondary records and the main objective of the study is to analyze
the different types CSR activities/projects undertaken by both the companies for last five years These
companies always focus on contributing towards sustainable growth of society and environment and to
make the planet Earth a better place for the next generations. This study explores the development of CSR
and aims to compare the CSR activities undertaken by these two companies in India.

(Ray, March 2024) ITC e-Choupal is simply a market led innovative business model which is designed to
enhance the competitiveness of our rural agriculture system. In the modern era of competitiveness where
there is fewer roles of government in rural markets and its input supply, the use of Information and
Communication Technology can make significant inroads in our agrarian country. ITC was the pioneer to
leverage the digital technology and other relevant information related to agriculture to empower the rural
farmers with a host of services for the overall agricultural development of our economy. Therefore, the
researcher attempted to study the case of e-Choupal of ITC and its concrete role in agricultural development
of our country along with empowerment of farmers of rural India digitally. Based on the discussion of the
study, it was found that the initiative has been able to re intermediate the local agents which has benefited
both the rural farmers and the company in terms of reducing costs and also realizing good returns from their
operations. Thus, the project has given a successful outcome for rural India and for the overall agrarian
development of our country. Keywords: Agricultural development, digital technology, e-Choupal,
empowerment, rural markets.

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(Sharma, Oct 2017) It wouldn't be wrong if one says that India lives in villages. More than 70% of Indian
citizens are located in rural areas. For India's economy to be strong, the rural India needs to grow. Financial
inclusion is a crucial driver for such growth by providing the financial products/services and information to
large sections of society and ICT (information and communication technologies) has an imperative role to
play. Usage of ICT in rural financial arena would help in attaining the goal of financial inclusion at an
affordable timely and efficient manner. Various ICT based interventions/models have been initiated by RBI
and a number of financial institutions in the industry. But there is lack of financial intervention that has been
co-created in conjunction with local farmers/people. Inspired by the success of one of such co- developed
participatory model in rural procurement and marketing infrastructure that is popularly known as E-
Choupal, we attempted to replicate the experience in the financial sector. The study conceptualized an E-
Choupal Rural Financial Intervention Model with an aim to deliver financial products/services and
information by leveraging ITC's E-Choupal network that must be tested for feasibility, efficiency, and
sustainability. The proposed rural financial inclusion model would use the E-Choupal

(Jain, Jan 2013) ITC's e-Choupal is internet kiosk, village gathering place and e-Commerce hub all rolled
into one. It caters to the information needs of the farmers at their doorstep by bridging the information and
service gap of rural India. It also established a low-cost fulfillment system focused on the needs of rural
India, which helps in mitigating rural isolation, create more transparency for farmers, and improve their
productivity and income. e-Choupal provides information on agriculture, health, insurance and education.
The effectiveness of these services depends upon how well they are being known by rural people. Thus the
present research was designed to study the knowledge of rural people about e-Choupal and its services. The
present study was conducted in four districts namely Ganga Nagar, Kota, Bharatpur, and Chittorgarh of
Rajasthan. Two Panchayat samities from each district and two villages from each Panchayat samiti were
selected on random basis. For studying the impact, one village from each selected district, where e-Choupal
is not functioning was selected. The sample consisted of 160 women and 160 men users and 40 women and
40 men non users of e- Choupal. Personal interview technique was used for collecting data. The data were
analyzed by using frequency, per centage, mean per cent score and Z test. The findings of the study clearly
indicated that users (13.4, 26.0, 58.1, 71.5, 81.9 MPS) had more knowledge than nonusers (0.0, 12.7, 35.3,
42.9 MPS) in all the five services i.e. agriculture, insurance, health, education and entertainment. Thus the e-
Choupal has made significant impact in terms of information empowerment of rural people.

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(Jain, Information Empowerment of Rural People In Agriculture Through e-Choupal, Jun 2011) Typically
poor and often illiterate, rural Indian farmers generally have very limited access to information
regardingimproved farming techniques. They do not have ready access to quality inputs, like sowing seeds,
herbicides andpesticides, or to critical information such as accurate weather forecasts. ITC conceived e-
Choupal to tackle these problems of Indian farmers. e-Choupal gives information regarding weather
forecast, market rates of crops, soil testing,agronomical practices of crops, Choupal Pradarshan Khet and
choupal hub. The effectiveness of these servicesdepends upon how well they are being known by rural
people. Thus the present research was designed to study theknowledge of rural people about e-Choupal and
its services. The present study was conducted in four districts namelyGanga Nagar, Kota, Bharatpur, and
Chittorgarh of Rajasthan. Two Panchayat samities from each district and twovillages from each Panchayat
samiti were selected on random basis. For studying the impact, one village from eachselected district, where
e-Choupal is not functioning was selected. The sample consisted of 160 women and 160 menusers and 40
women and 40 men non users of e-Choupal. Personal interview technique was used for collecting data.The
data were analyzed by using frequency and per centage. The finding clearly indicated that users had
goodknowledge than non- users about all the aspects of agriculture service which includes weather forecast,
market ratesof crops, soil testing, agronomical practices of wheat, Choupal Pradarshan Khet and e-Choupal
hub. This shows clear cutimpact of e-Choupal on rural people in terms of information empowerment in
agriculture

(Kaur, Jan 2014) Spiraling food prices and low productivity in Indian Agriculture has made food security a
cause of great concern, more so in rural India (FAO, 2011; ADB, 2011; Kaur 2013; IFAD, 2011). Despite
India’s good economic performance, it is home to the largest number of hungry people in the world. In the
ranking of the Global Hunger Index (2013), India ranks 63rd out of 88 countries. In Madhya Pradesh alone
(a state in India) more people suffer from hunger than in Ethiopia or Sudan. Needless to say, steps need to
be taken at war-footing to improve agricultural productivity. With fiscal deficits already high, public
investments in agriculture are not expected to pick up. In this context, private initiatives in Indian agriculture
that promote productivity and embed sustainability in their business model remain important. The basic
objective of the paper is to focus on an illustrative case study of setting up of internet kiosks referred to as
‘e-Choupals’. This case study empirically substantiates what economic literature has always been
emphasizing, i.e. information is critical for the efficient functioning of markets (Stigler 1961; Salop and
Stiglitz 1977). ‘e-Choupal’ is an innovative market-led ICT project by an Indian private sector company
(ITC), which provides access to information primarily to farmers.

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(Singh, Feb 2010) Problem statement: This case looked at the cost-benefit factor of the e-Choupal model in
rural India from a socio-economic perspective since it is being projected as one of the models of rural
empowerment. Questions were raised whether its growth both horizontally and vertically might be
detrimental to sustainability of traditional agrarian economy. It also examined the role of ICT and
government policies in this context. Approach: The study examined the above mentioned issues from the
context of rural India. Empirical literature was referred to build a link between various rural issues and e-
Choupal. Results: The e- Choupal model may not be leading towards a holistic development since the
individual income increase of participating members may be at the expense of non-participating members of
the rural commune. Conclusion: The results indicated that the present modus operandi of e-Choupal may
perhaps lead to further rural consolidation through corporatization rather than rural empowerment

(Dhriti Solanki, Apr 2011) ITC's e-Choupal initiative caters to the information needs of the farmers at their
doorstep by bridging the information and service gap of rural India. Services of e-Choupal include
agriculture, health, insurance, education and entertainment. The effectiveness of these services depends
upon the adoption or rejection by rural people. Attitude plays an important role in the adoption or rejection
of an innovation. Therefore the present investigation was undertaken with the objective to know the attitude
of rural people toward e-Choupal. The present study was conducted in 16 villages of 4 districts of Rajasthan
namely Ganga Nagar, Kota, Bharatpur, and Chittorgarh on a sample of 160 women and 160 men users of e-
Choupal. The attitude scale was used for collecting data. The findings of the study indicated that 85 percent
men and 54.4 percent of women had favorable attitudes towards e-Choupal followed by 11.9 percent of
menand 45.6 percent of women with neutral attitude. Very few men (3.1%) had most favourable attitude
towards e-Choupal. It can thus be said that most of the users displayed a favorable attitude towards e-
Choupal.

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(Mukerji, Jan 2013) e-Choupal is the telecentre-based initiative of the agribusiness division of Indian
Tobacco Company (ITC-ABD).1 It is well known as a ‘Bottom of the Pyramid’ venture that demonstrated a
‘win-win’ proposition for both the company and the farmer (Prahalad, 2004). E-Choupals are information
kiosks located in the villages. They provide access to agriculture-related information and services. And also
claims to connect farmers to large firms, current agriculture research and global markets (Upton & Fuller,
2003). This case study is on the e-Choupal located at Pimpri Buti in the Yavatmal district of Maharashtra,
India.

(Kapoor, May 2016) Strategic corporate social responsibility is a promising concept wherein the CSR
policy of the company is set in line with the vision, mission and philosophy of the company. Corporate
social responsibility influences business economic performances & builds the societal capital thereby
bringing coherence amongst the stakeholders. The synchronization of corporate social responsibility and
business strategies and practices will lead to leveraging the value and potential of the company to achieve
company’s competitive advantage and realize the transformational capacity of the company towards the
enhancement of societal & environmental capital. This case study is to understand the importance of
strategic corporate social responsibility to the company and the creation of larger societal values. This
case study throws light on the ITC Limited Company’s corporate social responsibility initiatives &
identification & engagement of its stakeholders in the process of CSR. The approach adopted in this case
study is first to understand the strategic CSR and its importance in the seamless execution of CSR
activities by involving the stakeholders & utilizing the company’s resources for maximum societal &
environmental impact. This study is based on extant literature on CSR and the annual CSR reports of
various companies.

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 RESEARCH METHODOLOGY:

Data sources:

The information provided is entirely based on secondary sources available across various websites. Due to
the hypothetical nature of the topic and the absence of any survey component, there is no opportunity to
collect primary data in any form.

Research method:

The research begins by conducting a comprehensive search for articles related to Corporate Social
Responsibility (CSR). Following this, detailed data is collected and analyzed to understand the various
aspects of CSR practices. Subsequently, the study examines the strategies adopted and challenges faced by
different Indian companies in the field of CSR. Through the selection of specific Indian companies as case
studies, their efforts and contributions to CSR initiatives are highlighted and amplified. After identifying
these companies, the research evaluates their performance in terms of CSR implementation, assessing both
the positive outcomes and areas requiring improvement. Furthermore, the study explores the impact of CSR
activities on the business landscape, including their influence on profitability and commercial success.
Various case studies and examples are utilized to illustrate how CSR initiatives have contributed to
enhanced profits and overall business performance. Additionally, the research places significant emphasis
on an Indian company that exemplifies effective CSR practices. By analyzing this company's initiatives and
achievements, the research aims to provide deeper insights into the importance of CSR and its role in
achieving organizational objectives.

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 FINDING:

1. E-Choupal is observed to streamline the supply of high-quality farm inputs and facilitate
the purchase of produce directly from farmers at their doorstep.

2. This CSR initiative spans across 9 states including Madhya Pradesh, Haryana,
Uttaranchal, Karnataka, Andhra Pradesh, Uttar Pradesh, Maharashtra, Rajasthan, and
Kerala.

3. Through SWOT analysis, it is evident that ITC boasts six robust and diversified business
segments, supported by strong brand presence.

4. Despite its diversified portfolio, ITC registers relatively low revenue from tobacco products.

5. Notably, ITC has witnessed growth in both the personal hygiene and food processing sectors within
the Indian market.

6. The rapid growth trajectory of ITC can be attributed to its proactive CSR initiatives aimed at
benefiting society.

7. Since the inception of E-Choupal, the performance of ITC has showcased significant improvement.

8. The implementation of various CSR activities has led to an increase in ITC's profits,
consequently resulting in additional dividends for its shareholders.

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 SUGGESTIONS:

 Companies engaging in CSR activities ought to offer comprehensive information regarding the long-
term impacts of their initiatives. This transparency will enable stakeholders to better understand and
appreciate the initiative's significance.

 It is advisable for companies to prioritize CSR initiatives, considering their potential to contribute to the
company's sustained profitability and growth.

 While focusing on CSR, companies should reconsider the prominence of advertising tobacco products to
enhance their brand image among customers.

 Additionally, companies should implement strategies to attract customers to their CSR initiatives,
ensuring maximum engagement and impact within the community.

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 CONCLUSION:

In conclusion, the study of CSR activities of ITC with a focus on the E-Choupal system reveals a
multifaceted approach to corporate responsibility that has made a significant impact. Through initiatives
like E-Choupal, ITC has not only demonstrated its commitment to empowering farmers and rural
communities
but has also leveraged technology to drive social and economic development. The E-Choupal system,
serving as a pioneering example of inclusive business practices, has facilitated access to markets,
information, and resources for farmers across various regions. This has not only improved their livelihoods
but has also contributed to the overall growth of the agricultural sector in India. Moreover, by integrating
CSR into its core business strategy, ITC has not only enhanced its brand reputation but has also fostered
sustainable growth and positive societal impact. The company's efforts in areas such as occupational health
and safety, environmental conservation, and community development further underscore its commitment to
being a responsible corporate citizen. Overall, the study highlights the pivotal role of CSR, particularly
through initiatives like the E-Choupal system, in driving positive change and sustainable development, while
simultaneously benefiting both the company and the communities it serves.

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 BIBLIOGRAPHY

Dhriti Solanki, S. J. (Apr 2011). ATTITUDE OF RURAL PEOPLE TOWARDS E-CHOUPAL.

Jain, S. (Jan 2013). Impact of e-choupal on Information Empowerment of Rural People of Rajasthan.

Jain, S. (Jun 2011). Information Empowerment of Rural People In Agriculture Through e-Choupal.

Kapoor, S. (May 2016). Concept and Practice of Strategic Corporate Social Responsibility: Special Reference to CSR
in ITC Limited.

Kaur, S. (Jan 2014). Information, Efficiency, and Sustainability in Indian Agricultural Markets: E-Choupal, ITC's
Private Initiative.

Mukerji, M. (Jan 2013). e-Choupal, Maharashtra.

Ramgouda, P. (2021). Corporate Social Responsibility-A Comparative Study of CSR Initiatives of HUL and ITC Ltd.
in India.

Ray, P. (March 2024). Empowering farmers of rural India digitally for agricultural development: A case study based
on ITC e-Choupal.

Sharma, S. (Oct 2017). Development of ITC E- Choupal Based Rural Financial Inclusion Model.

Singh, H. (Feb 2010). e-Choupal: Hope or Hype?

28
 REFERENCE:

https://www.wikipedia.org/

https://www.researchgate.net/

https://www.itcportal.com/

https://www.itcportal.com/sustainability/sustainability-report-2013/corporate-social-responsibility.aspx

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