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ITC Limited One of Indias Most Admired Companies

Introduction
Incorporated in 1910 under the name Imperial Tobacco Company of India Ltd As it was progressively Indianized, it was renamed as Indian Tobacco Company Ltd in 1970

Background

Current Position

One of the leading Indian private sector companies with a market capitalisation of over US $ 30 billion and a turnover of US $ 6 billion. Ranks amongst Indias 10 Most Valuable Companies according to a study conducted by Economic Times Major foreign exchange earner (US $ 3.2 billion in the last decade)

MISSION To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value VISION 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 Companys stakeholders.

IDEALOGIES
Aim to measure and account for both share holder & societal value creation and Retain Indian-ness of the brand ITC making ITC socially responsible through ITC e-Choupal and Mission Sunehra Kal.

Corporate Governance Structure


2 Core Principles of ITC Corporate Governance Mandate
Management must have the executive freedom to drive the enterprise forward without undue restraints This freedom of management should be exercised within a framework of effective accountability
Compensati on Committee Audit Committee

Nominations Committee

Investor Services Committee

Sustainabilit y Committee

Past and Future Promises

Past Promises which ITC lived up to:


Promise of India first Promise of shareholder value enhancement Promise of value creation at society level

Promises still on shaky grounds:


Ethical corporate citizenship Employee safety

Future scope:
Sustain its efforts to achieve its twin goal e-Choupal 3.0

Sustainability Issues

SHAREHOLDERS
ITC has always aimed and achieved a CAGR of over 24 % in the past 15 years. Information related to shareholding pattern, compliance with corporate governance norms, etc. is also posted on SEBI's EDIFAR website ITC is among the few companies to have obtained the coveted Quality Management System Certification ISO 9001:2000 for its investor servicing

CUSTOMERS
Major sustainability issues - Good Product/service quality, Low Cost, Ease of Availability, etc. To meet these issues ITC invests in R&D , leverages IT to improve supply chain and also follows various international standards.

EMPLOYEES
Key issues personal development and growth prospects, health & safety ITC promotes policy of Freedom of Association, training programmes, effective feedback mechanisms.

SUPPLIERS
Key issues adequate return on investments, growth of business. ITC promotes constant feedback and joint product development and sharing best practices to upgrade quality. Supporting small and medium industries with guaranteed buyback arrangements

COMMUNITY
Issues - Environmental impact, health & sanitation, Livelihood generation Mission Sunehra Kal flagship programme. Several of its initiatives are in line with the Millennium Development Goals (MDGs) set by the United Nations. Rural supplementary education centres impacted 2,00,000 primary goers. The Sustainable Livelihoods initiative of ITC strives to create alternative employment for surplus labour. Invested Rs. 40 crores in the year on societal upliftment.

GOVERNMENT
On time payment of taxes and duties by the company along with legal compliance. Full alignment with the Government of Indias National Action Plan on Climate Change

FARMERS
ITC e-Choupal which has empowered more than 4 Million farmers across 10 states and 40,000 villages Transforming wastelands into productive plantations Boosting productivity through superior high-yielding plant species ITCs virtual employment platform www.rozgarduniya.com

ENVIRONMENT
Carbon positive enterprise 5th year in a row Water positive - 8th year in a row Solid waste recycling positive 3rd year in a row ITCs WOW Wealth Out of Waste programme

Benchmark and Standards Adherence

Climate Change
Low carbon growth path Increased carbon sequestration

Water Conservation and Management


Zero effluent discharge Rainwater harvesting

E-Waste Management
Maximize utilization of all IT assets

Air Emissions
Phased out ODS

EHS
Quality Management Systems ISO 9001, TQM, Six Sigma, IQRS Environment Management Systems - ISO 14001 OHSAS 18001 Internal Audit Services relating to Systems and Controls - ISO 9001: 2008 and rated Level 5 by DNV

Solid Waste Management


Segregated at source Individually addressed Increase consumption of externally generated wastepaper as a source of fibre 99.8% of 579 Kilotonnes of the waste recycled

Product Responsibility

Workplace Policies
HIV/AIDS

Anti Child/Forc ed Labor

Work Place

AntiDiscrimin ation

Freedom of Associatio n

Mission Sunehra Kal

PRIMARY WATER SHED SOCIAL AND WOMEN LIVESTOCK EDUCATION DEVELOPME FARM EMPOWE- DEVELOPM NT FORESTRY RMENT ENT 228,872 children covered through 2380 Supplementar y Learning Centres 54,615 hectares brought under soil and moisture conservation 107,521 hectares greened, generating 48.38 million person - days of employment 14,278 women members 1035 self help groups 164 Cattle Development Centres 2300 villages covered annually

e-Choupal

Critique

The sustainability report of ITC is highly consistent and has a GRI (Global Reporting Initiatives) - G3 standard A+ rating One point missing in the report is that the share of its cigarettes business in overall top line and bottom line Another point of contention being ITCs claim of being Carbon positive, whereas the smoke from its cigarettes leads to high degree of pollution in terms of passive smoking as well as releasing toxins into the atmosphere ITC highly opposed the CSR bill that was recently proposed by the government Another point of contention is the threat of lawsuits being filed against ITC for the ill effects that its cigarettes cause among users

Thank You

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