Social Performance

Labour Practices and Decent Work

 Human Rights Significant Investments

During 2011-12, nearly 55% of our total capex cash flow of Rs.2409 crores was incurred on machinery and technology, sourced from reputed global suppliers/vendors who follow internationally accepted norms and standards on Human Rights. Approximately Rs.967 Crores were invested on new factories, hotels and modernisations.

All large contracts in ITC, for the construction of hotels, factories, and significant upgrades, included environment, health, safety and human rights’ clauses covering decent place of work, and beyond compliance labour practices.

In 2011-12 large projects such as construction of the Packaging & Printing factory at Haridwar, the master facility of the lifestyle retailing business at Manesar, ITC Hotels at Chennai and Kolkata and modernisation of the Cigarette factories at Kolkata are in progress. The Green Leaf Threshing Plant at Mysore and the Cigarette factory at Pune have been completed during the reporting period. All these were managed and supervised by ITC managers, who also ensured proper implementation of Human Rights compliance.

Systems have been established to ensure compliance of our Policies and Standards, through rigorous audits by Corporate Internal Audit and Corporate EHS.

Human Rights: Supply Chain

As a large and multi-product enterprise whose products are benchmarked nationally and internationally, we recognise our responsibility to proactively encourage high levels of ‘Human Rights’ standards in our supply chain.

Our approach to managing human rights in the following distinct categories is described below:

	Our major businesses are vertically integrated across several Divisions that follow ITC policies.	All large contracts in ITC, for the construction of hotels, factories, and significant upgrades, included environment, health, safety and human rights’ clauses covering decent place of work, and beyond compliance labour practices
	We procure inputs for the Company’s agri-based businesses entirely from state controlled trading platforms and the open market.
	We position our managers at all significant ‘outsourced’ manufacturing facilities (Cigarettes, Personal Care, Branded Apparels and Packaged Foods) to ensure high standards of product quality and adherence to ITC’s guidelines on EHS and labour practices. Government officials also routinely inspect these units to ensure relevant labour and factory acts, which, inter alia, provide for the necessary EHS and labour practices standards.
	The execution of ITC’s human rights policies is obligatory for all service providers operating within our establishments.

During 2011-12, the total number of service providers was 6,311 of which 1,570 operated within the Company’s premises and 4,741 worked off-site. 98% of contracts on-site and 95% of contracts off-site, included important clauses on Human Rights, environment, health and safety. No contracts were cancelled during the year as a result of non-compliance with ITC’s human rights clauses.