Marketing Communications
FMCG - Cigarettes business has an
internal code for advertising/ promotions, which is reviewed every year, and whenever any
new law/rules are introduced. The internal code is more stringent than other codes. It not
only comprehensively covers all aspects of other codes but also encompasses areas not
covered by them. The requirements under Advertising Standards Council of India (ASCI) code
of conduct, which is now the Government of India's Governing code, are applied across the
business.
All laws related to the product category such as The Cigarettes (Regulation of
Production, Supply and Distribution) Act, 1975, The Cigarettes and Other Tobacco Products
(Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and
Distribution) Act, 2003, The Cable Television Networks (Regulation) Act, 1995, and The
Cinematography Act, 1952, which have provisions for regulations of advertising/promotions
in India are strictly followed.
Any State Government laws on advertising/promotion for ITC's products are completely
adhered to. There is on-going review of these codes to ensure compliance.
The FMCG Cigarettes business sells a legal product, which is not banned in any market
where it sells. Tobacco products are often a subject of public debate. Stringent quality
standards/systems are established to respond to queries/ concerns and are known to all
stakeholders.
The Foods business voluntarily follows
the ASCI (Advertising Standards Council of India) Code for all Marketing Communication.
Every time a new Marketing Communication is created, it is checked for compliance with
the ASCI Code. In addition, a monthly compliance validation is done by respective
managers.
The Foods business does not sell any product which is 'banned in certain markets' or is
'the subject of stakeholder questions or public debate'.
In the Paperboards & Specialty Papers, Packaging
& Printing and Greeting, Gifting and Stationery businesses, all codes/
standards relating to Standard Weights & Measures Rules are followed. These
requirements are reviewed on a monthly basis for compliance. None of the products from
these businesses is 'banned in certain markets' or subject of stakeholder concern or
public debate.
In the Hotels business, marketing
communication is governed by self-regulation and guided by Indian Society of Advertisers
(ISA) Rules and guidelines.
It is reviewed quarterly to ensure compliance with relevant rules and internal
guidelines.
The Hotels business does not sell any product banned in the market nor is the subject
of stakeholder questions or public debate.
Agri-business has not advertised its
product and services in a major way and no voluntary code is therefore required to be
followed. Communications and promotions done so far have been in accordance with the law
of the land and have been duly approved by the Legal Department of the Company.
The business is in the process of establishing a voluntary code, as it has recently
initiated advertising its retail business.
The Leaf Tobacco business provides
Corporate Advertisements (e.g. 'With best compliments from ITC Ltd'. etc.) to souvenirs
published by certain organisations. This is in accordance with the provisions of
Cigarettes and Other Tobacco Products Act (Prohibition of Advertising and Regulation of
Trade and Commerce, Production, Supply and Distribution) Act, 2003. However, the business
does advertise its Organic Agri-inputs. The business also publishes Corporate
Advertisements (stating that ITC-ILTD is India's leading tobacco exporter and providing
contact details) in reputed International Tobacco Journals.
No product advertisement relating to tobacco is published by the business. The business
also maintains a website, 'itc-iltd.com', which provides the details of Tobaccos grown in
different regions of India. All the advertisements published in various fora are reviewed
by the Divisional Management Committee (DMC) every month. Any material change in the
contents of the website are also approved by the DMC.
Lifestyle Retailing business follows the
Voluntary Code on Advertising and Promotion.
The code ensures that the advertisements are not deliberately misleading in terms of
claim and representation, and are not offensive to generally accepted standards of public
decency (nothing vulgar, indecent or repulsive). Glorification of acts of sex and violence
is avoided. References to religion in general and specific religions are also avoided. It
is ensured that advertisements maintain fairness to competition and the contests and
promotions are as per the laws of the land. The terms and conditions of promotions are
vetted by the Legal Department. There is no deriding of race, caste and community in
advertisements or promotion. Packaging of the product is in accordance with Packaging and
Weights & Measures Acts.
Compliance is ensured through on-going review. Each campaign/promotion is vetted for
compliance before release.
The Lifestyle Retailing business does not sell any product that is banned in certain
markets or subject of stakeholder questions or public debate.
Compliance
All the businesses/Divisions of ITC have well-established systems, procedures and
review mechanisms to identify and comply with the laws and regulations concerning products
and services. ITC continued to comply with all applicable statutes. |
