Sustainability Report 2011

  Stakeholder Engagement

We have systems and procedures to identify, prioritise and address the needs and concerns of all our key stakeholders, across all businesses and units that have withstood the test of time. The stakeholder engagement process has evolved over the 100 years of the organisation’s existence, based on mutual trust and respect developed over the years. The information gathered through the stakeholder engagement process as well as the understanding of sustainability issues within the context of ITC’s Businesses guides specific materiality issues. This is further crystallised in our Chairman’s Statement and vision from which our sustainability approach emerges. Our prioritisation and reporting stems from this abiding vision which determines our unique business models and strategies. The engagement with different segments of stakeholders as detailed below helps us keep abreast of development, anticipate influences and frame responses in a way that can be appropriately managed.

As trustees of shareholders, we believe it is our responsibility to protect and enhance their wealth. Their primary expectations remain centered around continued profitability and growth, communication and investor servicing.

As one of India's foremost private sector companies, we have performed consistently for a century now and since the inception of the Company, have rewarded our shareholders with uninterrupted dividends and issue of bonus shares from time to time.

Our Chairman addresses and provides clarifications to the shareholders at least once a year at the Annual General Meeting, the principal forum for face-to-face interaction, in the presence of the Board. The Board encourages open dialogue with all the shareholders - individuals, corporates or foreign investors.

Our corporate website www.itcportal.com provides comprehensive information and an exclusive section on 'Shareholder Value' serves to inform and service shareholders; an exclusive e-mail ID isc@itc.in has also been provided to the shareholders for direct interaction.

Understanding customer’s needs and aspirations and continuing to seek consumer delight by making available products and services of high quality along with cost competitiveness and on time delivery thereby developing a strong longterm customer relationship is the prime focus in all our businesses.

Each business has various mechanisms to capture the needs and expectations of the customer such as market surveys, personal contacts/ visits, events, customer satisfaction surveys, joint development and improvement projects, key account management, multi-level interfaces at dealer-customer-end user, personalised lifestyle privilege programme, etc. ITC continues to engage with customers on an on-going basis to capture their needs and aspirations.

Product/service quality, availability, visibility & on time delivery, cost competitiveness, continuous product/process innovation, demand for ‘green’ product and value added services are the major topics/ issues which are being discussed during the customer engagement process. Robust Quality Assurance systems supported with process innovations, adoption of green technology, lean management, six sigma, and TPM help to achieve benchmarks in products and services quality in line with customer expectations. We continue to invest significantly in R&D to develop newer products/ variants.

We continued to progress our strategic agenda of remaining globally competitive and creating engines for sustainable growth by nurturing quality talent and blending proven skills and capabilities drawn from different parts of the ITC Group. Each business focuses on engaging with employees on a regular basis as well as based on specific requirements through communication meetings, workplace interactions, mentoring and suggestion schemes, employees/manager surveys and talent recognition programmes.

We have strived to attract and retain the talent through various initiatives that focus on providing personal development and growth, a work culture that ensures high levels of performance, worldclass learning and a conducive work environment.

We have further strengthened the organisational vitality and competitiveness through various efforts including:

Given their significant role in our value chains, we continue to engage with farmers on a regular basis. A large part of our R&D efforts is dedicated to providing expertise and support to improve agri - quality and productivity.

We partner with farmers in ensuring them better price realisation, assured markets and improved productivity. More details are provided elsewhere in this Report.

Suppliers are critical to our value chain and intrinsic to our product and service quality. All our businesses have processes and practices in place such as regular formal & informal interactions, reviews, vendors’ surveys & feedbacks, etc, which are held annually or based on needs to understand their key issues and concerns, thereby ensuring the capability of suppliers/vendors to provide best-inclass products/services.

Cost of materials, products and services, variability in demand, long-term business partnerships, timely payments, technology upgradation, capacity improvement and hygiene standards are some of the key topics discussed during the supplier engagement process.

Supply chain management with emphasis on IT and infrastructure development ensures world-class products and services. Additionally, supplier audits, product certifications, sharing best practices, joint product development, supplier/vendor capacity building help suppliers/vendors to remain competitive.

Our Managers directly supervise many significant outsourced-manufacturing sites, which ensure product quality, delivery commitments, compliance to required EHS standards and cost competitiveness.

All our businesses / units regularly interact with communities surrounding their operations. Community need assessment surveys by competent agencies are conducted in and around the Units.

Livelihood support, infrastructure needs, health & sanitation, primary education, economic empowerment of women and skill development are the priority concerns raised through the need assessment surveys. Based on this, various social interventions are planned and implemented. The details are provided in the ‘Social Performance’ section of this Report.