Human Rights Consideration in Significant Investments

ITC upholds the spirit of human rights as enshrined in existing international standards such as the Universal Declaration and the Fundamental Human Rights Conventions of the ILO in all its operations. It does not condone human rights abuses and endeavours to create and nurture a working environment where human rights are respected without prejudice.

Policy: ITC's commitment to human rights extends to all its significant investment decisions in order to ensure integration of statutory compliance, environmental, occupational health and safety, human rights and progressive labour policies into business decision-making processes.

Implementation: The custodian of this policy is the Divisional Chief Executive/ SBU Head of the concerned business.

Monitoring & Audit: The Internal Audit function of ITC conducts periodic checks to ensure that such clauses form part of investment contracts signed during the audit period.

Compliance during 2005-06: During the year 2005-06, a significant portion of ITC's total capex cash flow of Rs.758 crores was incurred on machinery and technology. These were sourced from reputed and globally benchmarked suppliers/ vendors who follow internationally accepted norms and standards on Human Rights. Over Rs. 50 crores was incurred on various renovation projects in hotels of ITC where suppliers/ service providers are required to follow all human rights practices as mandated by ITC.

All large contracts given by ITC, for the construction of hotels, factories, and significant upgrades, include environment, health, safety and human rights' clauses covering decent workplace and 'beyond compliance' labour practices.

All large construction and installation projects - the ITC hotel in Bengaluru and the ITC composite factory project in Uttaranchal during 2005-06 - were managed and supervised by ITC managers, who ensured proper implementation of Human Rights compliance. Corporate Internal Audit and Corporate EHS departments audit all major projects in ITC and also check for compliance.

ITC managers are positioned at all significant 'outsourced' manufacturing facilities (cigarettes, apparels and packaged foods) to ensure high standards of product quality and adherence to ITC's guidelines on EHS and labour practices. All such units were covered under the relevant labour and factory Acts, which, inter alia, provide for the necessary EHS and labour practices standards. Government officials routinely inspect these units to verify implementation.

The Company is currently formulating detailed guidelines for the phased implementation of this policy to ensure that all agreements, contracts or purchase orders arising out of new investments will incorporate Human Rights clauses. These will seek confirmation that at the time of contracting and thereafter, neither the organisation nor any of its service providers will utilise child labour, any form of forced labour and provide a healthy and safe workplace free from discrimination. It will also ensure that a detailed assessment of the implementation of policies on health and safety, Human Rights and the environment will be taken up prior to the selection of service providers for all significant and strategic investments.