CHAPTER1: INTRODUCTION

1.1 Overview Of The Study (Executive Summary)

Corporate social responsibility (CSR) is emerging as a new field in the
management research. In India, many firms have taken the initiatives of CSR
practices which have met with varying needs of the society. The present study has
made an attempt to understand the status and progress and initiatives made by large
firms of India in context to CSR policy framing and implementation. The CSR
initiatives in context to health, education and environment sector to be rated by the
interviewee were identified from the literature. Based on the information and
discussions mentioned a matrix of various policy factors has been prepared.

Inspired by a vision to serve a larger national purpose and abide with the
strong value of Trusteeship, ITC has crafted innovative business models to create
larger societal capital while simultaneously delivering long term shareholder value.
This overarching aspiration to create meaningful societal value is manifest in ITC's
strategy to enhance the competitiveness of value chains of which it is a part. It is
therefore a conscious strategy to design and implement Social Investments / CSR
programmes in the context of ITC's businesses, by enriching value chains that
encompass the most disadvantaged sections of society, especially those residing in
rural India, through economic empowerment based on grass-roots capacity building.

ITC's sustainability initiatives are inspired by its overarching vision of

contributing to the triple bottom line objectives of building economic, environmental
and social capital. Its deep engagement with rural communities and other stakeholders
is evident in its large scale social investment initiatives and value chains that support
over five million sustainable livelihoods. During June 2012, at the Rio+20 United
Nations Summit in Rio de Janeiro, ITC Limited was presented with the 2012 World
Business and Development Award for its transformational rural initiatives in social
and farm forestry programmes in India. ITC has spearheaded a large scale social
investments programme christened Mission Sunehra Kal.

This programme aims at building rural capacity in partnership with local

communities to develop water and forest resources, open up new non-farm
livelihoods, empower women economically and expand primary education.

1.2 Rationale Of The Study

The objective of the study on is to ensure that I as a student develop in real life
experience for handling the specific project and also to develop all understanding of
the various activities related to the area of my specialization. This training gives us a
substantial corporate exposure and also serves as a useful tool of interaction with the
corporate sector.
The main objective of the study is:
To know about the corporate social responsibility concept and its importance
in todays corporate world in detail
To know about the CSR initiatives taken by ITC company and how it manages
to be in its position.
To get the knowledge regarding CSR conduct and how such concept has
emerged in recent years.
To get an indepth knowledge on the industrial overview of a company and
how it maintains the position in the market with the help of CSR.

1.3 Scope Of The Study

The scope of the study covers the following area:
The study has covered various aspects of CSR conduct and how such activities
are useful for todays corporate world.

It also covered area of ITCs CSR initiatives for development of the society as
well as for the companys development

1.4 Sources Of The Data

Methodology shows how and from which source the data or
information is collected. This project is theoretical as well as practical so the data was
collected from the following sources:

DATA COLLECTION SOURCES:

ITCs Sustainability Report
Books reference on Strategic Management
www.itcportal.com

CHAPTER 2: CORPORATE SOCIAL RESPONSIBILITY

2.1 INTRODUCTION ON CSR
In todays changing world nothing is perpetual but from past many years or
from the business industries origin word social responsibility is fixed despite of its
changing names. The concept of social upliftment of society is into the existence
either in the form of philanthropy, dashvandh and now corporate social responsibility.
For the emergence of any new concept or garnishing of older one needs great mind
and time too Carroll 1991 suggested a pyramid model for the implementation of CSR
practices.

Michael Hopkins' Definition of CSR:

Corporate Social Responsibility is concerned with treating the stakeholders
of a company or institution ethically or in a responsible manner. Ethically or
responsible' means treating key stakeholders in a manner deemed acceptable
according to international norms.

Again every business firm has to work under some social environment that is
known as a society and as a good corporate entrepreneur one has to be responsible for
the society where their firm is operating. Helping the society by means of preserving
the environment, minimizing the wastage of natural resources, helping the needful,
conducting educational camps, promoting IT education running schools/ NGOs,
recycling of products, counseling sessions awareness programs regarding the different
diseases. All these type of activities constitutes corporate social responsibility
practices or initiatives, which help the society/inspiring the lives of the
underprivileged and lend a hand in the upliftment of the society. If every business
firm starts taking initiatives of CSR practices this planet will be marvelous place to
live.CSR responsibilities or initiatives are very wide.
In India, many firms have taken the initiatives of CSR practices which have
met with varying needs of the society. The present study has taken three major sector
IT, FMCG and Auto industry for the survey. As these three are the leading sectors of
India and are into the planning of CSR initiatives. After globalization of world
economies most of the companies/ business firms in India either already have a CSR
practices initiatives or are in process of taking the initiatives. Case studies of the
major firms have been used for identification of major CSR initiatives taken by firms
with respect to health, education and environment sector. Results of the study
identified the major CSR initiatives taken up by the firm and major driving forces and
proposing a framework by learning the key CSR initiatives taken and driving forces
for the same.

2.2 Why CSR ?

The current trend of globalization has made the firms realize that in order to
compete effectively in a competitive environment they need clearly defined business
practises with a sound focus on the public interest in the markets.
Firstly, the increase in competition among the multinational companies to gain
first mover advantage in various developing countries by establishing goodwill
relationships with both the state and the civil society is ample testimony to this
transformation.
Secondly, in most of the emerging markets, the state has a duty of protecting
the interests of the general public and thus gives preference to companies which take
care of the interests of all the stakeholders.
Thirdly, emerging markets have been identified as a source of immense talent
with the rising levels of education. For example, the expertise of India in churning out
software professionals and China in manufacturing has now become internationally
renowned. In order to draw from this vast talent pool coming up in developing
countries, companies need to gain a foothold in these markets by establishing sound
business practices addressing social and cultural concerns of the people.
It has been observed that consumers consider switching to another company's
products and services, speak out against the company to family/friends, refuse to
invest in that company's stock, refuse to work at the company and boycott the
company's products and services in case of negative corporate citizenship behavior.

Fourthly, firms all over the world are beginning to grasp the importance of
intangible assets, be it brand name or employee morale. Equity created in a company's
reputation or brand can easily be harmed or even lost particularly for companies
whose brand equity depends on company reputation. Reputation is built around
intangibles such as trust, reliability, quality, consistency, credibility, relationships and
transparency, and tangibles such as investment in people, diversity and the
environment. Only firms that have gained the goodwill of the general public and are
ideal corporate citizens will be to develop these intangible assets into strategic
advantages. CSR can be an integral element of a firm's business and corporate-level
differentiation strategies.
Fifthly, CSR is an important factor for employee motivation and in attracting
and retaining top quality employees as well. Innovation, creativity, intellectual capital
and learning are helped by a positive CSR strategy. Sixthly, better risk management
can be achieved by in-depth analysis of relations with external stakeholders. Given
the increase in cross-border business relationships and the threat of cross-border
litigation, boards have to consider the risk management standards of business
partners, and even suppliers. CSR also helps in compliance with regulation and the
avoidance of legal sanctions, while the building of relationships with host
governments, communities and other stakeholders can enhance a companys
reputation and credibility and be important with regard to its future investment
decisions

2.3 Social Responsibility of Corporates

Corporate social responsibility is a term describing a company's obligation to

be accountable to all of its stakeholders in all its operations and activities. Socially
responsible companies consider the full scope of their impact on communities and the
environment when making decisions, balancing the needs of stakeholders with their
need to make a profit.

A companys stakeholders are all those who are influenced by and can
influence a companys decisions and actions, both locally and globally. Business
stakeholders include (but are not limited to) employees, customers, suppliers,
community organizations, subsidiaries and affiliates, joint venture partners, local
neighborhoods, investors, shareholders (or a sole owner), and the environment.
A concept whereby companies integrate social and environmental concerns in their
business operations and in their interaction with their stakeholders on a voluntary
basis.

2.4 CSR and its Integration into Companies Work Culture

The first step is a written policy statement on CSR, which should be tracked through
the year and the progress noted in the companys annual report.

The CSR activities may also be included in both internal and external newsletters,
press releases notes, etc, to make the employees and public aware of the initiatives.

The company must also entrust specific CSR tasks to certain members in the
organization. The learning experiences should also be documented while going
through the CSR activities to make others learn from it.

The top management provides the required thrust and focus to a companys but
special staffing has become a norm.

10

CHAPTER:3 CORPORATE SOCIAL RESPONSIBILITY OF ITC

3.1 ITC Profile
ITC is one of India's foremost private sector companies with a market capitalization
of US $ 45 billion and a turnover of US $ 7 billion. ITC is rated among the World's
Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by
Forbes magazine and among India's Most Valuable Companies by Business Today.
ITC ranks among India's '10 Most Valuable (Company) Brands', in a study conducted
by Brand Finance and published by the Economic Times. ITC also ranks among
Asia's 50 best performing companies compiled by Business Week.

ITC has a diversified presence in FMCG, Hotels, Paperboards & Specialty

Papers, Packaging, Agri-Business, and Information Technology. While ITC is an
outstanding market leader in its traditional businesses of Cigarettes, Hotels,
Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in
its nascent businesses of Packaged Foods & Confectionery, Branded Apparel,
Personal Care and Stationery.

ITC's diversified status originates from its corporate strategy aimed at creating
multiple drivers of growth anchored on its time-tested core competencies: unmatched
distribution reach, superior brand-building capabilities, effective supply chain
management and acknowledged service skills in hoteliering. Over time, the strategic
forays into new businesses are expected to garner a significant share of these
emerging high-growth markets in India.

11

ITC's Agri-Business is one of India's largest exporters of agricultural products.

The ITC group's contribution to foreign exchange earnings over the last ten years
amounted to nearly US$ 5.4 billion, of which agri exports constituted 56%. The
Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance
its competitiveness by empowering Indian farmers through the power of the Internet.
This transformational strategy, which has already become the subject matter of a case
study at Harvard Business School, is expected to progressively create for ITC a huge
rural distribution infrastructure, significantly enhancing the Company's marketing
reach.

Industry Overview
ITC Company
One of the 8 Indian Companies to feature in Forbes A-list for 2004
Featuring 400 of the Worlds best big companies with M-cap. > USD 5 bln.
& are rated as the most attractive companies for investors
Only Indian FMCG Company to feature in Forbes 2000 List
A comprehensive ranking of worlds biggest companies measured by a
composite of sales, profits, assets & market value
Among top in sustained value creation (BT-Stern Stewart survey) Operating
profits Cash Profits
Ranks No. 9 among Indian listed Companies by market cap.(@31/10/05)
No. 1 in FMCG Sector; 6th amongst Private Sector
High rating for Corporate Governance and first company in India to be CG
rated

12

ITC group directly employs more than 31,000 people and the Company's
Businesses and their value-chains generate over 5 million sustainable livelihoods. The
Company continuously endeavours to enhance its wealth generating capabilities in a
globalising environment to consistently reward more than 4,23,000 shareholders,
fulfil the aspirations of its stakeholders and meet societal expectations. This overarching vision of the company is expressively captured in its corporate positioning
statement: "Enduring Value. For the Nation. For the Shareholder."

Vision statement
Sustain ITC's position as one of India's most valuable corporations through world
class performance, creating growing value for the Indian economy and the its
stakeholders

Mission statement
To enhance the wealth generating capability of the enterprise in a globalizing
environment, delivering superior and sustainable stakeholder value

Positioning statement
"Enduring Value. For the nation. For the Shareholder."

13

3.2 ITCs Corporate Social Responsibility

Inspired by a vision to serve a larger national purpose and abide with the
strong value of Trusteeship, ITC has crafted innovative business models to create
larger societal capital while simultaneously delivering long term shareholder value.
This overarching aspiration to create meaningful societal value is manifest in ITC's
strategy to enhance the competitiveness of value chains of which it is a part. It is
therefore a conscious strategy to design and implement Social Investments / CSR
programmes in the context of ITC's businesses, by enriching value chains that
encompass the most disadvantaged sections of society, especially those residing in
rural India, through economic empowerment based on grass-roots capacity building.

It is the Company's intent to make a positive difference to society. It recognises

that it cannot do it all; so that if there are choices to be made, bias will be towards
doing fewer projects with greater impact and focusing initiatives on communities in
which the Company lives and operates.

1. To sustain and continuously improve standards of Environment, Health and

Safety through the collective endeavour of your Company and its employees
at all levels towards attaining world class standards and support other
programmes and initiatives, internal or external, for the prevention of illness
and combating of diseases as may be considered appropriate from time to
time.
2. To encourage the development of human capital of the Nation by expanding
human capabilities through skills development, vocational training etc. and by
promoting excellence in identified cultural fields.
14

3.3 CSR philosophy of ITC

Inspired by the overarching vision of making a contribution to the national
goals of sustainable development and inclusive growth, ITC has innovatively crafted
unique business models that synergise long-term shareholder value creation with
enhancing societal capital. This commitment is reflected when ITC measures
accomplishments not only in terms of financial performance but also by the
transformation ITC has consciously engendered to augment the social capital of the
nation. in ITC's 'Triple Bottom Line' approach of contributing to the economic,
environmental and social capital of the country. Envisioning a larger societal purpose
has always been a hallmark of ITC. The company sees no conflict between the twin
goals of shareholder value enhancement and societal value creation. The challenge
lies in fashioning a corporate strategy that enables realisation of these goals in a
mutually reinforcing and synergistic manner.
As a corporate citizen with enduring relationships in rural India, ITC has a
history of collaboration with communities and government institutions to enhance
farm productivity and the rural resource base. ITC's commitments in agricultural
R&D and knowledge sharing have spanned vital aspects of competitiveness - efficient
farm practices, soil and water management.
ITC is committed to a national agenda of raising agricultural productivity and
making the rural economy more socially inclusive. ITC believes that the urgency and
scale of these tasks make market linked solutions and innovations more effective and
sustainable than capital intensive approaches.

15

3.4 CSR Initiatives by ITC

Key CSR related decision-makers in the company

Y. C. Deveshwar

Chairman

S. Banerjee

Member

H. G. Powell

Member

A. Ruys

Member

B. Sen

Member

B. Vijayaraghavan

Member

B. B. Chatterjee

Secretary

16

 e-Choupal : Rural digital-physical infrastructure

In 2000, harnessing the empowering force of information technology and its
scalabilty, ITC launched e-Choupal - a knowledge portal providing farmers with a
range of information and services. Designed to enable them to bargain collectively
and enhance their transactive power, e-Choupal became the much needed and easily
adoptable tool farmers had been waiting for. Today e-Choupal is a vibrant and rapidly
growing zone of business and interaction for over 4 million farmers.
Today 4 million farmers use e-Choupal to advantage - bargaining as virtual
buyers' co-operatives, adopting best practices, matching up to food safety norms.
Being linked to futures markets is helping small farmers to better manage risk. eChoupal has been specially cited in the Government of India's Economic Survey of
2006-07, for its transformational impact on rural lives.
ITC's strategic intent is to develop e-Choupal as a significant two-way
multidimensional delivery channel, efficiently carrying goods and services out of and
into rural India. By progressively linking the digital infrastructure to a physical
network of rural business hubs and agro-extension services, ITC is transforming the
way farmers do business, and the way rural markets work.
The network of 6,500 e-Choupal centres spread across 40,000 villages has
emerged as the gateway of an expanding spectrum of commodities leaving farms wheat, rice, pulses, soya, maize, spices, coffee, aqua-products. The reverse flow
carries FMCG, durables, automotives and banking services back to villages.

17

 Social & Farm forestry

ITC's social & Farm forestry program emerged in response to its challenge to
source effective pulp wood from sustainable sources to enhance its competitiveness.
Instead of taking easier route to importing pulp, ITC innovatively leveraged it's
pulpwood requirements to provide sustainable livelihood opportunities to poor and
tribal marginal farmers, by assisting them to convert their private wastelands into
productive pulpwood plantations. High yielding, disease resistant and site specific
clones are developed in ITC's research center.
This program has not only created sustainable source of livelihood for a large no.
of disadvantaged sections of society but has also bought in a multiplicity of benefits
by creating a large green cover that contributes significantly to groundwater recharge,
soil conservation and carbon sequestration.

Integrated Watershed Development

`Recognising the vital role that role plays
in the rural economy, ITC promotes watershed
projects in water stressed areas providing
precious water resources for agriculture and
rural communities and livestock. Based on a
participatory

approach,

the

programme

facilitates building, reviving and maintaining water harvesting structures as well as

management of water resources to reverse land degradation, provide critical irrigation
and increase agricultural productivity.
18

The phenomenal example of this was

the Ranjangaon ara near Pune district in
Maharashtra, it was under severe draught
during kharip season of 2009 with virtuallyno
rains in the project area, farmers and cattle
were adversely affected. ITC's watershed programme became the only source of
livelihood for more than 350 farmers who participated daily in the work.
In another first of its kind agreement in the country, ITC signed MOU with the
government of Maharashtra to implement NREGA in 2 blocks of Jalna district on an
integrated watershed programme basis covering 50 villages.

Integrated Agricultural Development

The programme promotes a combination
of solutions for optimizing water management
and enhancing farm productivity. Farmers are
motivated to form agri-business centers,
enabling them to

pool

knowledge

and

resources, have access to quality inputs on time and improve productivity and quality.
A total of 20 agri-business centers provided timely agri-iputs to around 1077
members. To help farmers capture additional value from their holdings, ITC promoted
crop diversification with good market linkages. Organic spces, medicinal and
aromatic plants were promoted under this initiative

19

 Livestock Development
The programme assists small landless farmers to upgrade livestock quality
through cross-breeding by artificial insemination to boost milk productivity by a
factor of 6 to 9 times, lading to a threshold increase in household incomes and thereby
an improvement in their economic status. Following graph shows average increase in
milk productivity due to cross breeding:
The programme also provides integrated animal husbandry services that include pre
and post natal interventions. Vaccinations and heath services are provided to more
than 1.7 lakh cattle.

Women's empowerment
ITC's initiative provide sustainable economic opportuinities to poor women in
rural areas by assisting them to form self help groups that enable them to build small
savings and finance self employment and micro-enterprise. The programme has
demonstrated that extra incomes in the hands of women lead to positive changes in
human development since it is largely invested in children's education, health and
nutrition.
The total turnover of women managed micro enterprises was Rs. 61.14 lakhs, the
bulk of which was accounted by the sale of raw agarbattis and chikankar garments.

20

 Universal Education
The programme is aimed at increasing chances of employability either through
imparting training in skills or better education.The programme provides infrastructure
support to government run primary schools and coaching through Supplementary
learning centers to stem drop-outs and enable more children to complete school and
move on to higher classes.
In order to increase enrolment, poor children receive school uniforms and
text/exercise books. A network of rural
libraries and resource centers enrich the
process of learning for these children. An
innovative

initiative

of

roaming

laptop

programme is also provided to government

schools in rural areas.

21

 Awards and Recognitions

1. The inaugural Worls Business Award in 2004
o

Recognises companies which have made significant efforts to create

sustainable livelihood opprtuinities and enduring wealth in developing
countries. Sponsored by UNDP, ICC and Business leader's forum
jointly

2. The development Gateway award in 2005

o

For trailblazing e-Choupal. ITC is first Indian company and second in

the world to receive this award for its contribution towards
development initiatives.

3. The Stockholm Challenge Award

4. The corporate social responsibility Crown award
o

For water practices from UNESCO and water digest

5. TERI corporate award for social responsibility 2008

o

For integrated watershed programme implemented in 7 states.

6. Golden Peacock Awards for 'Corporate Social Responsibility

(Asia)' in 2007
7. Annual FICCI Outstanding Vision Corporate Triple Impact
Award in 2007
8. United Nations Industrial Development Organisation (UNIDO)
Award
9. Readers' Digest Pegasus Award

22

3.5 Global Recognition to Itc Ltd

The company has been recognised around the globe for running its business
with responsible business practices. The feathers added to the company are the
various awards received by the company at various stages. To mention them vis-a
vis Inaugural World Business Award, Development Gateway Award, Stockholm
Challenge Award, UNESCO Water Digest Corporate Social Responsibility Crown
Award, Asian CSR Award forEnvironmental Excellence, SAM/SPG Sustainability
Leadership Award conferred on Mr. Y.C.Deveshwar, Chairman, ITC Limited, FICCI
Outstanding Vision Triple Impact Corporate Award,UNIDO Award at the
International Conference on Sharing Innovative Agri Business Solutions, Readers
Digest Pegasus Award and NCPEDP Shell Helen Keller Award.

Milestones Achieved by ITC in CSR

The three major global environmental milestone achieved by ITC are carbon
positive, water positive and solid waste recycling positive. The other Millstones
achieved are in areas-eg- e-choupal, social & farm forestry, watershed development,
womens empowerment, livestock development, primary education.

23

ITC has not only fulfilled economic, legal, ethical and discretionary social
responsibilities but have contributed to the development of Indian economy as a
whole, leading to higher level of positioning.

Thus, ITC has consciously adopted CSR practices along with incremental
changes in strategies to attain leadership position in competiveness & sustainable
business practices (Fig 1) which have prepared them to meet challenges of 21st
century.

Fig 1

24

3.6 CSR activities :

ITC's diversified business portfolio has enabled the Company to create and
nurture numerous farmer partnerships in many value chains. These cover multiple
crops and geographies. Leveraging these partnerships, ITC has created number of
unique community development programmes by synergising its social sector initiative
businessplans.
ITC believes that the inter-dependence between its agri-based businesses and the farm
sector constitutes a sustainable platform to enlarge its contribution to the Indian rural
sector.

The core principles that drive these initiatives are:

Customise the development model to address the diversity of rural India.
Enable even marginal farmers to access knowledge to compete on an equal footing in
the market place.
Empower rural communities, so that development planning and implementation are
participatory.

25

ITC's rural development initiatives embrace several critical areas:

Web-enablement of the Indian farmer to help him access relevant knowledge and
services to enhance farm productivity
Through the e-Choupal initiative, ITC aims to confer the power of expert knowledge
on even the smallest individual farmer. Thus enhancing his competitiveness in the
global market.
The immense potential of Indian agriculture is waiting to be unleashed. The endemic
constraints that shackle this sector are well known - fragmented farms, weak
infrastructure, numerous intermediaries, excessive dependence on the monsoon,
variations between different agro-climatic zones, among many others. These pose
their own challenges to improving productivity of land and quality of crops. The
unfortunate result is inconsistent quality and uncompetitive prices, making it difficult
for the farmer to sell his produce in the world market. ITC's trail-blazing answer to
these problems is the e-Choupal initiative; the single-largest information technologybased intervention by a corporate entity in rural India. Transforming the Indian farmer
into a progressive knowledge-seeking netizen. Enriching the farmer with knowledge;
elevating him to a new order of empowerment.
e-Choupal delivers real-time information and customised knowledge to improve the
farmer's decision-making ability, thereby better aligning farm output to market
demands; securing better quality, productivity and improved price discovery. The
model helps aggregate demand in the nature of a virtual producers' co-operative, in
the process facilitating access to higher quality farm inputs at lower costs for the
farmer. The e-Choupal initiative also creates a direct marketing channel, eliminating
wasteful intermediation and multiple handling, thus reducing transaction costs and
26

making logistics efficient. The e-Choupal project is already benefiting over 3.5
million farmers. Over the next decade, the e-Choupal network will cover over
100,000 villages, representing 1/6th of rural India, and create more than 10 million efarmers.

A digital transformation :
ITC began the silent e-volution of rural India with soya growers in the villages of
Madhya Pradesh. For the first time, the stereotype image of the farmer on his bullock
cart made way for the e-farmer, browsing the e-Choupal website. Farmers now log on
to the site through Internet kiosks in their villages to order high quality agri-inputs,
get information on best farming practices, prevailing market prices for their crops at
home and abroad and the weather forecast - all in the local language. In the very first
full season of e-Choupal operations in Madhya Pradesh, soya farmers sold nearly
50,000 tons of their produce through the e-Choupal Internet platform, which has more
than doubled since then. The result marks the beginning of a transparent and costeffective marketing channel. Bringing prosperity to the farmers' doorstep.

Linking farmers to remunerative markets :

Farmers grow wheat across several agro-climatic zones, producing grains of varying
grades. Though these grades had the potential to meet diverse consumer preferences,
the benefit never trickled down to the farmers, because all varieties were aggregated
as one average quality in the mandis. Enter ITC's e-Choupal intervention. The eChoupal site is now helping the farmers discover the best price for their quality at the
village itself. The site also provides farmers with specialised knowledge for
27

customising their produce to the right consumer segments. The new storage and
handling system preserves the identity of different varieties right through the 'farmgate to dinner-plate' supply chain. Encouraging the farmers to raise their quality
standards and attract higher prices.

Managing risks through technology :

The whats and ifs in the aqua farmers' life posed daunting odds. They were haunted
by the nightmare of contaminated soil, wrong levels of salinity in the water or the
killer White Spot virus, any of which could wipe out an entire shrimp crop, until the
e-Choupal site provided them the support and the know-how to cope with and manage
such risks. Information equips farmers with comprehensive know-how to keep abreast
of food safety norms to compete in the international market. Information includes
parameters for antibiotic usage, hygienic washing, sanitised dressing and air-tight
packing. All these factors help to neutralise the risks involved in aqua farming.
Making it economically much more attractive, benefiting hundreds of aqua farmers.

A dependable knowledge partner :

Coffee planters in India have for years been tossed between the highs and lows of the
international coffee market. The information needed to manage risks in the volatile
global coffee market, price updates and prevalent trends in coffee trading were just
not available to them. Launch of e-Choupal.com has equipped India's coffee planters
with appropriate knowledge base and risk management tools. The site arms them with
the latest prices posted on commodity exchanges like CSCE in New York and LIFFE
in London. Planters have access to technical analysis by experts to help them
comprehend trends, trading ranges and chart patterns in simple language. 'Parity
28

Chart' and the 'Calculator' on the site convert the coffee prices quoted in international
auctions into raw coffee equivalent for the benefit of the small growers in India.
Tradersnet, a special link on the site, brings together a large number of coffee
planters, traders and roasters, creating a virtual market for transparent price discovery.
ITC empowers Indian coffee growers with expert knowledge in logistics and risk
management, thereby enabling them to face global competition.

4.1 Statistics :
E-Choupal- 4millions farmers empowered,6,500 e-choupal centers installed.
Socila & farm Forestry- 95,961hectares greened, generating 43 million
person-day of employment.
Watershed Development- approx 46,200 hectares brought under soil and
moisture conversation.
Women's Empowerment- approx 18,221 women members.1312 self- help
groups formed.
Livestock Development- 123 cattle development centre's 2592 village covered
annually.
Primary Education- 193,571 children covered through 1885 supplementary
learning centre's

29

4.2 Critical Analysis :

ITCs is doing lot of CSR activities in rural region of India. Although it seems
that most of these activities are done to develop positive image of ITC (it has negative
sentiment going against it for many years, as their main business has been cigarette
manufacturing) and help achieve its marketing objectives, all the initiatives taken by
ITC are unique and sincere in nature. Apart from the marketing gain, some of the
initiatives also help it to achieve financial and operational objectives since these
activities are related to its functioning as company. For example, the success of Echaupal and social and farm forestry is crucial for its operation in certain industries.
When Classmate notebooks were launched, it came up with the initiative of
contributing 1 rupee towards the education of poor children, from every single
notebook it sold. On the environmental front, ITC has achieved 'Carbon Positive' five years in a row; 'Water Positive for eight consecutive years (creating three times
more rainwater harvesting potential than ITC's net consumption); Waste Recycling
Positive for the last three years. Also, it utilizes renewable sources of energy which is
31% of total energy consumed. Its environment, health and safety management
systems conform to international standards.

30

5.1 CONCLUSION :
In the ever changing markets Globalization and liberalization are the buzz
words. In the age of globalised world, the concept of CSR cant be ignored by the
corporate firms. By keeping in mind the changing market scenario business firms
have to change their work culture as per the market demands. Previously we were
fighting for the issues like labor laws, factory acts and child labor. But we can see the
paradigm shift in the relation of corporate house and workers. Now a days Firms and
workers all together works as a family and work for achieving the common goals.
Profit sharing is the main agenda of the corporate houses. Those days have gone when
basic business of business is to earn profits only.
In conclusion, the findings of this study provide insights into an area of
growing concern of firms towards society. Firms have been doing great effort for the
achievement of business goals and marring the business goals with social
responsibility practices. As per the changing market demands need of the hour is for
the development of CSR framework that has been imposed by the government. So
that, we can contribute to make better planet to live in.From the study of these two
successful rural initiatives taken by ITC and HUL which are the leading and well
established Indian Corporates, it is very clear that it proved to be a competitive
corporate advantage in fulfilling corporate social responsibility. The decision of ITC
to extend e-Choupal to 15 other states in the country shows their commitment to the
objective of rural development in India.

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The infrastructure of e-Choupal can be put to better use for other services
especially

in

rural

health

and

education

area.

Providing safe drinking water to villages in India is a challenge which requires the
involvement of corporates and NGOs. State Governments are engaged in developing
Schemes and involving their machinery for implementation, but the success rate of
these programs is very low. Corporates can play a key role in educating the rural
population about the importance of safe drinking water in maintaining their health. It
is estimated that the cost of providing health services for the villagers suffering due to
contaminated water is 8 times higher than providing free and safe drinking water. It is
therefore suggested that all corporates should take the example of ITC and HUL and
do their best in fulfilling their Corporate Social Responsibility and participate in the
growth of Indian economy. ITC has been handling the commercial market with
successful strategies for many years. Thecompany believes that its corporate strategy
which holds societal development as an integral part of its mission of wealth creation
for the stake holders ensures the long term sustainability of the business enterprise.
ITC being a very large company and working across different sectors of business is
actively engaged in CSR activities having a vision to serve a larger National Purpose
of Nation Building through core values so that every part of the society have the
chance and the accessibility to the basic needs which the rural India doesnt have
through imparting assistance and education to uplift them from poverty and misery
these people have been facing from a very long time.

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5.2 Bibliography:
http://www.itcportal.com/about-itc/shareholder-value/key-financials/quarterlyresults-march-2013.aspx
http://www.itcportal.com/about-itc/profile/history-and-evolution.aspx
http://www.itcportal.com/about-itc/profile/the-itc-way.aspx
http://www.itcportal.com/about-itc/profile/the-itc-way.aspx

Other References:
Strategic Management Fred.R.David published by Prentice Hall International
Strategic Management Prof N.H. Mullick, Enkay Publishing

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