Corporate Social Responsibility

By:-Shivani Patel (53)

Himali Amin (54)

Namita Rajan (56)

Saurabh Singh (57)

Palak Kalia (58)

Aswini Paleri (59)

Ankit Modi (60)

Ashish Thakor (61)

‘The only company in the world carbon positive,water positive &solid waste recycling positive’

Introduction• Incorporated on August 24th 1910 with the name of Imperial Tobacco Company

of India Limited.

• 1970- Indian Tobacco Company, 1974- I.T.C. Ltd. and 2001- ITC Ltd.

• Headquartered at J.L. Nehru road, Kolkata

• VISION – to sustain its position as one of India’s most admired and valuable

companies

Triple Bottom Line

Economic

• A turnover of over US $ 7 billion and a market capitalisation of nearly US $ 35 billion.

• Direct employment to more than 29,000 people.

• Total shareholder’s funds grew at a compound rate of 26% per annum over the last 15 years.

Environmental

• Carbon Positive seven years in a row.

• Water Positive for ten years

• Solid Waste Water Recycling five years.

• Environment, Health and Safety Management Systems in ITC conform to international standards.

Social

• Livelihoods for over 5 million people

• e-choupal benefitting over 4 million farmers.

• Social and Farm Forestry

• Watershed Development

• Sustainable Community Development

CSR Spend

Rs. in Crores 2010-11 2011-12 2012-13

Corporate Social Responsibility spends 45 62 82

Average Profit After Taxes for three immediately preceding Financial Years(FY)

3,482 4,104 5,070

CSR spends as a % of Average Profit After Taxes for three immediately preceding FYs

1.29% 1.51% 1.62%

CSR Initiatives Undertaken

Mission: Sunehra Kal

Andhra Pradesh

Orissa

Maharashtra

Kerala

Madhya Pradesh

Karnataka

Bihar

Tamil Nadu

Rajasthan

Uttar Pradesh

West Bengal

Integrated Watershed Development

Issue: Struggle with erratic rainfall patterns

Example: Ranjangaon area near Pune district in Maharashtra, it was under severe draught during kharip season of 2009.

Facilitates building, reviving and maintaining water harvesting structures as well as management of water resources to reverse land degradation, provide critical irrigation and increase agricultural productivity.

Integrated Watershed Development

Helped conserve soil and moisture for over 1,17,000 households covering 28 districts across seven states (Andhra Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Orissa and Tamil Nadu).

Partnership either with NABARD(National Bank for Agriculture and Rural Development) or various state governments.

Livestock Development

• 1.21 billion population(2011 censes)

• 87.2 million living in rural area

• 70% of India's rural population owns cattle

• Livestock plays an important role in the economy of rural India

• Milk yields are abysmally low due to poor quality stock

• ITC Choupal livestock Development

ITC Choupal Livestock Development

• Programe aims at assisting cattle-owners to upgrade their low-yielding indigenous stock through cross-breeding by artificial insemination.

• 299 Cattle Development Centers managed by trained local community members

• ITC trains and equips technicians to provide an integrated package consisting of artificial insemination, cattle health and nutrition, pregnancy and post-natal services.

At doorstep

• Comprehensive animal husbandry services are provided right at the doorstep through Cattle Development Centers managed by trained local community members

• Backward linkages are also being strengthened for dairy inputs, particularly cattle feed

Result

Livestock Development NowAnimal husbandry services (Artificial Insemination doses) 12,67,371

Beneficiary farmers 3,62,106Cattle Development Centres 299

Next step in this direction

• Project Gomukh in Munger - an integrated dairy

management program that aims at providing customized services and solutions at every stage of the dairy value chain

Social & Farm Forestry

AIM:

An alternative means of livelihood for the

rural community.

The project will promote the Eucalyptus

& Casuarina Plantation under the Social

Forestry Programme in West, East

Godavari and Visakhapatnam districts for

the development of small and marginal

tribal and weaker section farmers through

sangha concept.

Objective

To create awareness among the Tribal & Weaker section communities

towards promotion, benefits, of Eucalyptus & Casuarina Plantation.

Carbon Sequestration through Reforestation of severely degraded land

mass.

To provided alternative employment opportunities, good market linkages

with the paper industry for the pulp wood growers for marketing their

produce.

To free the farmers from the bondages of the middle men and to sell their

produce at a reasonable price directly to the paper mills.

A growing Need…

• Wood is the major raw material for pulp and paper industry.

• ITC, launched a major plantation programme in 1982.

• ITC, initiated a Biotechnology based Tree Improvement Programme (TIP)

by promoting clonal plantation.

• Tribal Farmers undertake the plantation and its maintenance in their own

lands.

• Sangha’s (Mandal Samakhyas - MS) would oversee the project activity

implementation in their region, which includes awareness / training /

resource provision and distribution.

• ITC would provide sapling / financial resources.

Wonders of Clonal Technology

Clonal technology primarily envisages

taking advantages of the natural variation in

tree species for immediate gains in

productivity and quality from plantations.

The field tested and proven superior

genotypes are multiplied through vegetative

propagation in greenhouses under controlled

environmental conditions.

ITC Bhadrachalam clones comprise natural as well as control

pollinated hybrids of Eucalyptus and Subabul (Leucaena).

Advantages:

High rate of survival of clonal plantation.

High rate of productivity.

Reduced land requirements.

Cost & work effciency.

Additional income for farmers.

Project Working Area:

10 Mandals in East Godavari District

5 Mandals in West Godavari District

10 Mandals in Visakhapatnam District

Greening Wasteland

• ITC’s afforestation mission goes beyond regenerating

wastelands and forest.

• Under this initiative superior planting stock is supplied to

farmers. Here a free technical extension service is provided.

• ITC offers attractive buy back arrangements for mature

plantations.

ITC: Carbon Positive

Apart from other advantages, large scale greening

effort plantation have the potential to sequester

millions of tonnes of carbon dioxide, and create a

potential Green House Gas.(GCH)

ITC has been placed in unique position of being

eligible to create ‘ Certifiable CO2 Credits’.

Women Empowerment Initiative by ITC limited

Venture funds provided by ITC have already spawned hundreds of women entrepreneurs. Their earnings, ranging from Rs 70 to Rs 150

per day, not only supplement household incomes but also significantly enhance their

self-esteem.

Pickle-making, fish-processing, vermicomposting, spice processing and agarbatti-rolling in rural areas and chikankari, garment-sewing, driving and computer-aided

secretarial training in semi-urban areas are some of the examples

microfinance microenterprise

Extensive mobilisation of women Formation of micro-credit groups Capacity building to handle cash transactions, bank accounts, government office, etc Promotion of savings to create corpus Internal lending to meet consumption needs External loaning for productive purposes

Chikankari Organisation of women into production groups Introduction of revolving fund Skills training & up-gradation to enhance employability External consultancy for modern designs Capability building for value addition in work Marketing channel for finished goods

Chikankari in Hardoi :A Case study Promoting Rural Women Entrepreneurs

Structure of Micro enterprise

Enterprise Coordinator

Designer

Sanchalika

Production Group (50 women)

SHG SHG SHG

Member Member MemberMember

Info flow

NGOITC

Chikankari Value Chain

Production group

orders

orders

orders

orders

Finished goods

NGO Partner

Customers

Finished goods

ITC

Primary Education• 35 % illiterate

• 15 % Reaching high school

• 7% Completing graduation

• Lack of infrastructure , funds and quality talent.

Primary Education

1. Improving infrastructure in Government schools.

2. Providing supplementary education to support

children with school learning and exam

preparation.

3. Building community and parental involvement with

school education.

Primary Education

• ITC-sponsored NGOs also conduct teacher training programmes to raise the standard of teaching in government-run primary schools.

Primary Education Now

Government Schools assisted through infrastructural support

973

Students being covered 3,19,812

Supplementary Learning Centers (cumulative) 3,011

Primary Education

• ITC launched its Classmate

brand in 2003 with the

notebooks category.

• Classmate is the lead

provider of all student

stationery needs.

Primary Education

• To improve educational

outreach

• 482 libraries and resource

centers is supported

• 421 schools are covered

under Roaming Laptops

programme

ITC’s ‘e-choupal’

1990

•Establishment of International Business Division

•Agri-trading Company

1996

•Opening of Indian market

•Entry of international competition

1998

•Option of sale, merger or closure of IBD

•Chairman: ‘Use of Information technology’

2000

•Blending of shareholder value creation and social development

•Launch of ‘e-choupal’

Origins of ‘e-choupal’

What is ‘e-choupal’

To bring efficiency to ITC’s procurement process Increased empowerment of rural farmers

Choupal : ‘A village meeting Place’

Vendors and customers come together to do business transactions New Business Model: e-choupal

Why ‘e-choupal’

Over dependence on intermediariesLower margins

Low Productivity Low risk taking ability

Weak market orientation

Rural India is a difficult business

Location

Under-trained workforce

Before ‘e-choupal’: Mandi System

‘Mandi System’: Operation Process

Inbound Logistics Display and Inspection Auction

Bagging and

weighing Payment Outbound

Logistics

Farmers find the auction process demeaning.

Exploitation in terms of payment

Distortion of Quality of produce

Limitations

Players of e-choupal

• Critical Element

• Act as a familiar

and approachable

human interface

for the farmers and

villagers

• Acts as a link

• Communicates

daily prices

• Provides

logistical

services

• Provide info on

trading

transactions

• Critical Element

• Act as a familiar

and approachable

human interface

for the farmers and

villagers

Sanchalak

• Acts as a link

• Communicates

daily prices

• Provides

logistical

services

• Provide info on

trading

transactions

UpSanchalak Samyojak

Network of e-Choupals, information centers equipped with a computer connected to the Internet, located in

rural farming villages

Farmers use the services of the sanchalak (the centre operator) to find the price their produce can fetch at

different places, via the computer

“Empowered” to make an informed decision on when and at which procurement centre to sell their produce

for maximum profit

E-Choupal in Detail

To improve yields with a demonstration plot of land

Best practices have been put into practice along with high quality fertilisers and seeds

Comparisons made with yields from control plots

Choupal Pradarshan Kheth (ChoupalDemonstration Field) programme

Pricing

E-choupal Stages

PricingPrevious day’s mandi closing

price- Fair Average Quality (FAQ)price

Mandi prices are communicated to the sanchalak through the e-

Choupal portal

Inspection& Grading

Sanchalak inspects theproduce and based on his

assessment of the quality makes appropriate deductions

Sanchalak performs the quality tests in the

farmer’s presence and must justify any deductions

If the farmer chooses to sell , the sanchalak gives him a note

Weighing& Payment

Farmer takes the note from the sanchalak and proceeds with his

crop to the nearest ITC procurement

hub

Chemist visually inspects and verifies the assessment of the

sanchalakHub Logistics

Farmer then collects his payment, also reimbursed for

transporting his crop

E-choupal Process

Right price for their crops

Recognition: Farmers are not simply agricultural

producers, butintegral partners

Income increase:About 2.5% over the mandi system

Benefits of E-choupal

Weather

Agricultural Best Practices

Customized Quality Solutions

Intelligent product

Development

Other benefits of E-choupal

The ITC Green Centre Project

The ITC Green Centre houses the headquarters of ITC’s Hotels Business and was declared the worlds largest Platinum rated Green Building when

it was certified in 2004.

The facility is built with 4 floors with one basement and one

mezzanine floor. The total built up area is 15799 sq.mt., out of which

9294 sq.mt. is conditionedarea .It was awarded the LEED

Platinum rating under LEED 2.1 NC in 2004. The building is

operational for 5 days a week and for about 10 hours per day.

Not only they have designated smoking zones in convenient

locations with their own exhaust fans, but the copy-printer room in

the building has its own separate exhaust as well. Moreover, 90% of all regularly occupied areas

have access to open-able windows.

Key Features

Sustainable SiteAlternative Transportation

Heat Island EffectStorm Water Management

Water EfficiencyWater Efficient Landscaping

Innovative Waste Water Technologies

The building adopts a rectangular L North East

Energy & Atmosphere EnvelopeHot Water

Ozone Depletion

Materials and ResourceStorage and Collection of Recyclables

Regional Materials

Indoor EnvironmentalQuality

CO2 Monitoring Environment Tobacco Smoke Control

Results

• “We had a cost over-run of 12 per cent,” adding that

similar projects undertaken after this one saw reduced

costs of 4-7 per cent.

• "Actually, now the cost of such a building would be

lower than that of a normal office building,” – Khatri

Renewable Energy

ITC commitment to the environment is manifest in its constant endeavour to enlarge its positive carbon footprint.

This is achieved not only through enhanced energy conservation, but also through use of renewable energy sources and expanding

carbon sequestration through its large scale Social and Farm Forestry Programmes

 ITC is also constantly expanding its renewable energy portfolio. More than 38% of its energy consumption is now met from

renewable sources, and this is expected to touch 50% in the next 4-5 years.

Improved utilisation of carbon neutral fuels such as biofuels in the Paperboards and Specialty Papers Business and the

commissioning of 13.8 MW wind power projects in Maharashtra and Tamil Nadu contributed to increased utilisation of renewable

energy.

Example

• Solar Photovoltaic Technology