Corporate social responsibility of ITC Limited

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Corporate social responsibility (CSR) refers to the integration of self-regulation within a company’s business model. It entails implementing a CSR policy that serves as an ingrained and self-regulating mechanism for businesses to ensure their adherence to legal requirements, ethical standards, and international norms.

The objective is to assume accountability for and advance a positive impact on the environment, consumers, employees, communities, stakeholders, and all others in the public sphere. Moreover, businesses that prioritize corporate social responsibility (CSR) would actively support the welfare of the community and willingly cease practices that damage the public sphere irrespective of their legality.

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Corporate Social Responsibility (CSR) is the integration of public welfare into corporate decision-making, focusing on three core elements: people, planet, and profit. ITC Limited is an Indian conglomerate headquartered in Kolkata. It has a turnover of $6 billion and a market capitalization of over $22 billion. Yogesh Chander Deveshwar currently leads the company.

ITC is a versatile corporation operating in multiple industries such as Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. It holds a Forbes 2000 listing and employs over 26,000 individuals across India’s 60 locations.

ITC is unique in its commitment to sustainability, being the only company of its size and diversity that is ‘carbon positive’, ‘water positive’ and ‘solid waste recycling positive’. Moreover, ITC has generated over 5 million sustainable job opportunities, with a focus on impoverished rural areas in India. A notable illustration of this is the e-Choupal initiative, which combines digital and physical infrastructure to benefit rural communities.

The e-Choupal initiative by ITC is a renowned illustration of an inventive business model that collaborates with local communities in establishing rural markets. The digital infrastructure of e-Choupal enables small and marginalized farmers in rural India, who lack connection to the formal market, to acquire crucial information such as market prices, weather updates, and quality inputs. This empowers them to improve their farm productivity and quality, enabling them to compete more effectively in both national and global markets.

“Choupal Pradarshan Khet” has implemented customized agricultural extension services and farmer training schools, aiming to enhance farmers’ productivity through improved farming practices. The program has successfully established a two-way communication channel by integrating digital, physical, and human infrastructure. As a result of this integrated approach, farmers have experienced increased incomes and productivity. Additionally, rural communities have been transformed into prosperous markets.

ITC sources woold pulp for its Paper and Paperboards division from renewable plantations cultivated by tribals and farmers on their private wastelands. ITC has made significant investments in research and development to develop disease-resistant clonal saplings that grow faster and thrive in harsh conditions. As a result, many tribals and marginal farmers have experienced the benefits of cultivating these pulpwood saplings on their private wastelands.

ITC’s paperboards business willingly purchases the produce from the growers, who have the freedom to sell to the highest bidder in the open market. Instead of importing pulp, ITC chose the challenging path of mobilizing tribals and marginal farmers, requiring a long gestation period and significant investment.

Despite the challenges, adopting this route has provided sustainable livelihoods for many disadvantaged individuals while also creating numerous benefits. These benefits include the creation of a substantial green cover that greatly contributes to the recharge of groundwater, conservation of soil, and sequestration of carbon.

ITC’s social forestry project in Andhra Pradesh has been registered under the Clean Development Mechanism of the UN Framework Convention on Climate Change. The project will earn carbon credits, which will also be shared with the local tribals and farmers. This participation allows them to be a part of the international carbon market mechanism.

ITC supports the development of watershed projects in water-stressed areas, acknowledging the importance of irrigation and water in the rural economy. These projects benefit agriculture, rural communities, and livestock by supplying valuable water resources. The programme employs a participatory approach that engages local communities. It enables the construction, restoration, and maintenance of water harvesting structures and promotes the efficient management of water resources. This initiative aims to address land degradation, ensure essential irrigation, and enhance agricultural productivity.

ITC’s supplementary Learning Centres provide extra coaching to support school learning, preventing dropouts and helping more children finish school. ITC also sponsors outreach projects such as mobile libraries to encourage reading and a ‘roaming laptop’ program to promote computer skills and interactive learning.

ITC’s initiatives aim to support poor women in rural areas by helping them establish micro-credit self-help groups. These groups enable women to save money, pursue self-employment opportunities, and start small micro-enterprises. Many women benefit from this program by earning income as self-employed workers or as partners in micro-enterprises. The program has shown that when women have additional income, it has a considerable and positive impact on human development. The money is primarily spent on education, health, and nutrition for their children, and it also acts as a driving force for gender equality in development.

ITC’s livestock development programme aims to improve the quality of livestock in rural households by implementing cross-breeding techniques through artificial insemination. This initiative significantly increases milk productivity by 6-9 times, resulting in a substantial improvement in household incomes and lifting people out of poverty.

Currently, these initiatives are reaching out to almost 2,600 villages in 5 states. The “ITC Green Centre” in Guragao, which has been certified by the US Green Building Council for Leadership in Energy & Environmental Design, is providing leadership in positive environmental action. It is considered one of the first and largest commercial buildings in the world to be rated “Platinum” for its green features. The ITC Green Centre continues to inspire the movement towards greener buildings in India. Through design integration, energy consumption at the building has been significantly reduced. The building has been specifically designed to maximize natural lighting, reducing the need for artificial lighting.

While allowing light to enter, the windows made of glass also prevent heat transmission. Therefore, not only does this keep the building cool during daylight hours, but it also reduces the reliance on air-conditioning. Additionally, the implementation of limited exterior lighting helps minimize night sky pollution.

Water consumption has decreased by 40% and a water recycling plant has made the building a zero water discharge building. Additionally, ITC has implemented a conscious strategy to reduce its carbon footprint, resulting in over 30% of the company’s total energy consumption being sourced from renewable sources and carbon neutral fuels.

In order to fulfill its commitment of using more renewable energy, ITC has established a 14 MW wind energy facility to supply power to its packaging unit in Chennai. Additionally, ITC is making further investments in wind energy, totaling over 25 MW, to support the power needs of its hotels in Mumbai and Chennai.

When given opportunities to work and become self-sufficient, individuals with disabilities can make valuable contributions to the workplace, their families, and the community. ITC’s hotels business, ITC-Welcomgroup, has taken a proactive approach in this regard by employing people with disabilities in their hotels. Committed to treating everyone with sensitivity and empathy, ITC-Welcomegroup has established successful models that have raised awareness among other employees about the needs of those with disabilities.

ITC-Welcomegroup has employed over 100 differently abled people in various roles such as housekeeping, teleworking, bakeries, and musicians, taking into consideration their specific skills. To foster an environment of empathy and support, the company has implemented measures such as special badges for the visually impaired, whistles for hearing impaired employees to use during emergencies, and sign language classes for other staff members to communicate with them. In recognition of its long-term commitment to promoting employment opportunities for differently abled individuals, ITC-Welcomegroup received the prestigious NCPEDP-Helen Keller Award.

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