Our approach to human resource is premised on the fundamental belief in fostering meritocracy in the organisation, which promotes diversity and offers equality of opportunity to all employees. We do not engage in or support direct or indirect discrimination in recruitment, compensation, access to training, promotion, termination or retirement based on caste, religion, disability, gender, age, race, colour, ancestry, marital status or affiliation with a political, religious, union organisation or minority group.

The Board of Directors at the apex, as trustees of shareholders and responsible for the strategic supervision of the Company , consists of 4 Executive Directors (including the Chairman) and 11 Non Executive Directors. The Non Executive Directors come from different fields, thereby ensuring multi-dimensional perspectives in setting the strategic agenda.

The strategic management of the Company rests with the Corporate Management Committee comprising full time Executive Directors and 3 members drawn from senior management representing diverse functions.

The executive management of each business is vested with the Divisional Management Committee (DMC), headed by the Chief Executive. The DMC draws resources from different functions. Each DMC is responsible for and focused on the management of its assigned business.

Our compensation philosophy does not differentiate on gender, social status or age. It is linked to responsibility levels and based on performance. We also ensure compliance with the Equal Remuneration Act which mandates every employer to pay equal remuneration to men and women employees for the same work or work of similar nature.

We believe that corporations like ours have a responsibility to set exemplary standards of ethical behaviour, both within the organisation as well as in their external relationships. We believe that unethical behaviour corrupts organisational culture and undermines shareholder value.

A booklet on ITC’s Code of Conduct, which also contains the policy against corruption is periodically circulated to all managers. In addition, it is posted on the corporate intranet sites and the ITC Portal. The Audit Committee of the Board met nine times during the year to review, inter alia, the adequacy and effectiveness of the internal controls and monitored implementation of internal audit recommendations, including those relating to strengthening of the Company’s risk management policies and systems.

Instances of corruption involving employees or business partners were cognised for and suitable action was taken. ITC has a zero-tolerance approach to proven cases of corruption, resulting in immediate termination of service.

Our senior managers not only participated in a large number of industry fora to help contribute to debates on public policy and issues related to our businesses, but have also established a number of institutions - namely the Tobacco Institute of India and the CII-ITC Centre of Excellence for Sustainable Development - to promote public debate and shape policies on important issues concerning industry and the nation. The Tobacco Institute of India is a tobacco industry body, which helps support industry norms and Government policy initiatives.

The CII-ITC Centre of Excellence for Sustainable Development was set up by ITC in collaboration with the Confederation of Indian Industry to promote a movement on corporate sustainability in India and policy advocacy.

All our businesses/divisions have systems and procedures to identify and comply with all relevant statutory requirements. There was no non-compliance with laws or regulations by any of our businesses in 2007-08.