Lets put India First

Strategic CSR at ITCGroup 4 Abhinav Jain 09P122 AbhishekTripathi 09P123 Debashish Jena 09P134 Kumar Niraj Mohan 09P149 Piyush Jain 09P155 ShwetaBagrecha 09P172

VISIONSustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the its stakeholders

MISSIONTo enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value

ITCs CORE VALUESTrusteeship Customer Focus Respect For People Excellence Innovation Nation Orientation

PRODUCTS

CSR DEFINITIONy "A concept whereby companies decide voluntarily to

contribute to a better society and a cleaner environment y Groups view: y It is the positive attitude of the corporate towards the society in which it functions by rendering services and facilities y It minimises the negative environmental and social impacts of business and maximises their positive environmental and social impacts

CSR at ITCy E- Choupal

Awardsy United Nations Industrial Development Organisation

(UNIDO) Awardy International conference on Sharing Innovative Agribusiness

Solutions 2008 at Cairo for ITC's exemplary initiatives in agri business through the e-Choupal.y Ashoka - Changemakers Health For All Award 2006y For the Rural Health Services model for delivery of health

services through the e-Choupals.y The Stockholm Challenge 2006y For using information technology for the economic

development of rural communities

Awardsy The Corporate Social Responsibility Award 2004 from The

Energy and Resources Institute(TERI) for its e-Choupal initiativey Innovation for India Award 2006 for ITC e-Choupal in

the Social Innovations category for business organizations.y The Golden Peacock Innovation Award 2004

E-Choupaly Information centers equipped with computer & internet located y y y y

in villages Serve as a gathering place for exchange of information & ecommerce hub Has been effective in cutting middlemen & reducing supply chain Indirectly enhances farm productivity by giving detailed weather forecasts, best practices in farming & supply of quality inputs Improved price realization by making available live data on markets, and expert opinion on expected future price movements

Choupal Sagary ITC Rural malls located in the vicinity of 30 e-choupal centers y A transparent best price sales window to farmers y Provide services like training, soil testing, product quality

certification & medical services y Strategic Implicationsy Strong Agricultural Supply Chain y Robust Distribution Network y Rural Market Penetration y Increased Quality and Productivity

Mission Sunehra Kaly Empower rural communities to adopt sustainable changes that makes

them compete economically with the rest of the country y Fosters local initiative to develop water and forest resources, opens new industrial livelihoods & help in economic upliftment of women y Stagnation and deterioration have swiftly been replaced by change and improvement. y Four problematic areas that it focuses are:y loss of productivity through soil erosion caused by spiralling land use and

decline of water tables and forest resources. y too much dependence on out-modelled farm practices and inferior inputs y loss and disruption of farm incomes and non-availability of alternative livelihoods. y inadequate access to primary education and healthcare.

Social and Farm Forestryy AIM:y To address the livelihood problems of marginal farmers and the ecological

imperative of regenerating biomass and nurturing depleted soils.y Initiativesy Under agro-forestry programme 1,07,521 hectares of wasteland has been

made cultivable and 451 million saplings have been planted.y ITC has thus helped to bring 16,400 hectares of wasteland under social

forestry benefiting 19,376 poor households in 480 villages.y The company organises wasteland owners into forest user groups who are

trained in silviculture, land development and plantation maintenance.y It has also provided a package of loans and supplies of high-yielding, disease-

resistant cloned saplings developed at its R&D Laboratory at Bhadrachalam.

Social and Farm Forestry(Contd.)y Strategic Implications:y Strengthening Supply Chain for Paperboards Business- In an

innovative move, ITC linked the farmers need for income to the wood fibre needs of its paperboards business. y ITC facilitated them to convert their wastelands into pulpwood plantations and thus found for them a commercially viable land use alternative that can end their marginalization. y Creating An Environmental Friendly Company- The forestry programme sequester 1.95 times the total carbon dioxide emitted by ITCs operations thereby ensuring its status as a Carbon Positive Company for the third year in a row. y ITC also used 163,250 tonnes of waste paper as raw materials in their Paperboards business, thereby creating a Positive Foot-print even in the area of waste management.

Watershed Developmenty ITC has managed to set up 2884 water harvesting structures under the y y y y

programme These are extremely important in the retention of soil water and reversing the degradation of land From 5 projects in two states, the programme has covered 24 projects in 7 states. A total of 17,500 hectares in Madhya Pradesh, Bihar and Andhra Pradesh, thus generating employment equal to 5.36 lakh person days Strategic Implicationsy Increased Productivity y Creating An Environmental Friendly Company: As a result of these

measures, ITC has sustained its status as a 'Water Positive' Company for 7 consecutive years.

Womens Empowermenty Rise in population and the shrinkage of farm plots - have made it

difficult for a large number of rural families to be totally dependent on their land as forms of a sustainable livelihood.y ITC started development of latent resources in the form of the

untapped earning power of women, by virtue of their ownership of domestic cattle thereby increasing the purchasing power of the rural sectory Set up of Self Help Groups (SHGs) facilitating the promotion of

micro-credit groups and linked them to incense stick rolling and embroidery

Womens Empowerment(Contd.)y Strategic Implicationsy Sourcing for Agarbatti Business: Since 2003, ITC has been sourcing its

Agarbattis sold under the Mangaldeep brand from a number of small scale and cottage units, most of them are the Self Help Groups set up by ITC thus serving as a chain in ITCs sourcing of agarbattis from the small scale and cottage units and also end up becoming financially empowered themselves.y Reaching Out to the Homemaker: The womens empowerment

initiatives of ITC put it in direct contact with the homemaker in most Indian families. These people now associate themselves with Brand ITC and since they have a crucial say in all purchase decisions, ITC can leverage this association to its advantage.

Rural Educationy AIM-To increasing chances of employability either through

imparting training in skills, better education or reduction of morbidity. y ITCs initiatives are aimed at (i) improving infrastructure in Government schools, (ii) providing supplementary education to support children with school learning and exam preparation and (iii) building community and parental involvement with school education so that more children go to school and finish school.

Initiativesy Contributes Rs. 1 to this initiative from the sale of each

Classmate notebook (5000 Crore market growing at a rate of 9-10%) y State-run schools are supported by ITC y construct buildings y Providing electricity connections y distributes free uniforms and books

Initiativesy 3. established around 1885 Supplementary Learning Centres

to help poor children.y These provide extra coaching to thousands of primary school

goers from poor families. y A network of rural libraries and resource centres enrich the process of learning for these children. y help stem drop-outs and enable more children to complete school and move on to higher standards.y 4. sale of ITCs Expressions Greeting Cards helps the cause of

SOS Villages basically places that look after orphan children in India.

Wealth Out Of Waste(WOW)y AIM - to protect the environment, improve civic amenities,

as well as public health and hygiene.

Wealth Out Of Waste - Initiativesy Launched in Hyderabad, Bengaluru, Chennai, Khammam

District in Andhra Pradesh and Kovai District in Tamil Nadu. y spread to households, schools, government offices, corporates and other institutions. y ITC provides special bags to accumulate dry waste like paper, plastic and metals and arranges periodic collection through outsourced agencies thereby emphasising the importance of source segregation.

Wealth Out Of Wastey Strategic Implications:y led to the creation of significant employment opportunities. y Segregated dry waste can save almost 40% of municipal garbage

handling costs, which can be utilised to improve civic amenities. y Generating Cost-Effective Raw Material: for the paper, plastics, and metal and glass industries. y Helping create awareness among the public about the advantages of the Reduce-Reuse-Recycle process.

Other CSR ActivitiesLive Stock Development y Aimy 70% of population owns cattle

and productivity is low so to increase productivityy Initiativesy Artificial insemination to boost

milk by a factor of 6 to 9. y Door to door collection of milk channels the familys production to large dairies.y Impacty Increase in Livelihood of more than 1.7 lakh people

Other CSR Activitiesy Health and Hygieney Community Health Services Focussing on Children and

Mothers y Regular camps held to build awareness, promote healthcare and provide curative health care. y Assists rural families to construct low cost sanitary units.

Treating Differently Abled Peopley Aim : changing these perceptions present in the minds of

people. y Initiatives : differently- abled are provided with an opportunity to work and become self-sufficient. y Impact : succeeded in creating an atmosphere of sensitivity and caring for differently abled people.

Reinventing Brand ITCy Timeliney 1910 : ITC incorporated as Imperial Tobacco Company y 1970 The name of the company is changed to India Tobacco Co. Ltd. y 1972 The company enters the hotel business y 1974 The name of the company is changed to I.T.C. Ltd. y 1988 The company creates an Agribusiness Division y 2000 The company launches its own branded apparel and thus enters into

the retail segment y 2001 The company drops the dots from its name to become ITC Ltd. y 2002 The company launches Aashirvad brand and enters the atta market y 2004 The company successfully enters the biscuits segment with the launch of Sunfeast

Strategies of ITCy Change of name : Strategically moved from its tobacco

business to other business segments y CSR activities : ITCs diversification strategy coincided with the strong commitment towards CSR activities

Connecting CSR to Businessy 1988 agribusiness was flagged off : Indian economy was

restricted. y 1991 economy opened : ITC didnt had expertise to compete at Global scale. y To build a unique and competitive channel to reach farmers, which is different from the model used by un-organised players and MNCs. y This was the birth of E-choupal - a shift in the business model of procuring from mandis to directly procuring from farmers.

Conclusiony ITC needed to build a strong image among the Indian y y

y y

populace. CSR initiatives has helped the society as a whole with giving a huge reach to ITC in the rural India. Other companies can take a cue from ITC and serving the society is one cause but in the process they can get strategic advantage ITC has shown the way forward for Indian companies. ITC living truly up to its motto, Enduring Value. For The Nation. For The Shareholder.

Thank You