Policy: ITC is committed to conducting business in a manner that reflects its high ethical and moral standards. It expects its employees and business partners to subscribe and adhere to this philosophy, which honours all local laws and 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. The Corporate Management Committee of the Company has approved policies covering crucial human rights areas. ITC’s Human Rights policies extend to all its operating sites.

Responsibility: It is the overall responsibility of the Divisional Chief Executives, through the members of their Divisional Management Committees, General Managers and Unit Heads, to ensure implementation of these policies on human rights, including designating of individuals for specific responsibilities in respect of their Division.

Corporate Human Resources is responsible for reviewing and updating standards on social policies, and for providing guidance and support to all concerned.

Management: The Human Rights policies approved by the CMC provide guidelines for the implementation of these policies and their periodic review. Corporate HR provides specialist services to assist in implementation and monitoring.

Training & Awareness: Employees are provided with training on the Company’s Human Rights policies at Induction Programmes. The policies are available on the Company’s website and intranet portals.

Monitoring & Follow-up: The HR resources of the Divisions ensure periodic follow-up to ensure implementation. The Internal Audit function of the Company is charged with the responsibility of ensuring compliance.

Objective: The Company’s primary objectives in the area of Human Rights performance and the goals for the next five years are to ensure that:

• All ITC’s operational units are and will remain fully compliant with the Company’s Human Rights policies, premised on a zero tolerance guiding principle towards such violations.
• All investment decisions will integrate Human Rights considerations into the decision-making process.
• All ITC’s business partners will follow and adhere to the Human Rights policies that the Company upholds.

Context: High standards on Human Rights enhance the Company’s reputation and build its brand equity, thus helping it achieve the goal of operational excellence. It gives ITC’s business partners, customers and other strategic stakeholders the confidence of dealing with a value-driven Company. It is a crucial value proposition that is offered to potential employees to attract and retain talent and motivate employees to give their best.   

Policy: As a large Indian enterprise, ITC is uniquely positioned to contribute to public policy, which it does through active participation in a number of fora. Its size also enables it to influence the process of development and contribute to sustainable growth in the areas in which it operates, thereby helping to transform the lives of a large number of people and communities. ITC’s objective of making a positive contribution to the society where it operates is served by aligning its own operations with interventions and initiatives aimed at creating sustainable livelihoods through farm and non-farm based activities.

Striding a wider canvas in the interest of the nation, ITC is committed to ensuring the preservation of India’s unique cultural heritage through various initiatives to promote, encourage and keep cultural traditions alive.

With such a diverse and critical social agenda, all ITC employees have the obligation to display high levels of integrity and ethical behaviour.

Responsibility: It is the overall responsibility of the Corporate Management Committee to ensure that its investments in the social sector are an integral part of the Company’s corporate strategy. Division-level initiatives respond to local needs and are monitored by the Divisional Management Committees and implemented through their local units in conjunction with the Corporate Human Resources Department.

The Corporate Management Committee and the Divisional Management Committees are responsible for reviewing and updating Corporate Standards on social and cultural development, and updating standards and guidelines for work in these areas as well as for providing guidance and support to all concerned.

Management: The Corporate Management Committee is the primary custodian of ITC’s social initiatives. Implementation is reviewed periodically at the Unit, Divisional and the CMC levels. A dedicated team in the Corporate Human Resources Department provides specialist services to assist in implementation and monitoring of projects. The Units are responsible for responding to specific needs spelt out by local communities and implementation is monitored by the Divisional Management Committees. In discharging social responsibility projects, all applicable rules and regulations are complied with.

Training & Awareness: Employees engaged in social development initiatives are given regular training both to enhance their domain knowledge and improve management skills. Details of social development work being done is posted on the ITC portal. Society is made aware of these projects and programmes through the circulation of a brochure called ‘Transforming Lives and Landscapes’.

Monitoring & Follow-up: Regular monitoring and follow-up is undertaken by Corporate Human Resources. External accounting firms undertake quarterly financial audits.

External audit firms and the Internal Audit function of the Company carry out system audits regularly.

Objective: The primary focus of ITC’s Social Development Initiatives is to create sustainable sources of farm and off-farm livelihoods and to improve the social infrastructure especially in areas where it impacts women and children.

In pursuit of these objectives, the following goals have been set for the next five years:

• Web-enable 10 million farmers through 20,000 e-Choupals in 100,000 villages.
• Bring at least 50,000 hectares under soil and moisture conservation practices.
• Transform at least 100,000 hectares of wastelands into productive and revenue-generating assets for the poor.
• Create at least 10,000 women entrepreneurs with a sustainable source of supplementary incomes.
• Improve the genetic stock of at least 150,000 cattle through artificial insemination practices.
• Provide supplementary education support services to at least 100,000 children.

In its endeavour to preserve India’s cultural and artistic heritage, ITC will also continue to ensure that its initiatives in the areas of preservation and promotion of Indian music, art and theatre are strengthened.

Context: A high level of community involvement creates long term enduring partnerships that contribute to creating a stable environment for its operations. ITC’s commitment that extends beyond the market enhances the Company’s credibility in the minds of stakeholders and policy makers. ITC’s focus on Social Development and on preserving India’s heritage is also a key element of its employee value proposition which helps in the attraction and retention of quality talent.

ITC’s product leadership is founded on its core strategy of continuously enhancing product values through significant investments in research and development, product design, manufacturing technology, quality, marketing and distribution.

In ITC, one of the pioneers in market research in India, the consumer is King. The Company, with core competencies in unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills, continuously endeavours to provide products that are internationally benchmarked and more than meet consumer expectations.

Responsibility: It is the overall responsibility of the Divisional/SBU Chief Executives, through the members of their Divisional Management Committees, General Managers and Unit Heads, to ensure that all ITC products and services are in accordance with the above stated policy and principles, including designating individuals for specific responsibilities in respect of their Divisions/SBUs.

Management: The unique nature of ITC’s businesses requires each business to adopt and implement necessary management systems and controls to meet policy requirements.

All the manufacturing units in the Company are certified in accordance with ISO 9001, ISO 14001 and OHSAS 18001 managements systems. All major hotels have been certified to ISO 14001 and 5 hotels have received HACCP certification. Others are in the process of receiving the certifications.

International Quality Rating System (IQRS) for Business Excellence, which rates key processes against international benchmarks, has already been introduced in a number of businesses. In addition, various other quality improvement tools such as ‘Six Sigma’ initiatives and ‘Total Productive Maintenance’ (TPM) are integrated with the Quality Management Systems.

Goals & Performance: ITC continuously endeavours to provide its consumers products that are benchmarked to international quality. Individual business performance on ‘Product Responsibility’ is described later in this section of the Report.

Context: ITC businesses have identified and adopted a number of initiatives on Product Responsibility where its performance provides significant financial, strategic and sustainability benefits complementing national priorities.