A PROJECT REPORT

On

A Study of HR Practices in ITC

Master of Business Administration
OF
Tumkur University

ITC Bangalore

Submitted by:
Lakshmi V
Under the guidance of:
Dr. Noorafza

OBJECTIVE

The main objective of the study is as follows:

To know the recruitment & selection procedures adopted in this company.

To improve training and development programs used in the company.
To know how the performance of the employees is being appraised.
To provide better employee welfare.
To increase the labor productivity

ITC's Environment, health and safety (EHS) Policy

ITCs mission is to sustain and enhance the wealth-generating capacity of its
portfolio of businesses in a progressively globalizing environment. As one of
Indias premier corporations employing a vast quantum of societal resources, ITC
seeks to fulfill a larger role by enlarging its contribution to the society of which it
is a part. The trusteeship role related to social and environmental resources, aligned
to the pursuit of economic objectives, is the cornerstone of ITCs Environment,
Health and Safety philosophy. ITCs EHS philosophy cognizes for the twin needs
of conservation and creation of productive resources.
In the multi-business context of ITC, Corporate Strategies are designed to create
enduring value for the nation and the shareholder, through leadership in each
business and the attainment of world-class competitive capabilities across the value
chain. The objective of leadership extends to all facets of business operations
including Environment, Health and Safety.
ITC is, therefore, committed to conducting its operations with due regard for the
environment, and providing a safe and healthy workplace for each employee.
Various international and national awards and accreditations stand testimony to
ITCs commitment to EHS. Such external recognition further reinforces the need to
direct the collective Endeavour of the Companys employees at all levels towards
sustaining and continuously improving standards of Environment, Health and
Safety in a bid to attain and exceed benchmarked standards, whether regulatory or
otherwise.
In particular, it is ITCs EHS policy To contribute to sustainable development through the establishment and
implementation of environment standards those are scientifically tested and
meet the requirement of relevant laws, regulations and codes of practice.
To take account of environment, occupational health and safety in planning
and decision-making.

 To provide appropriate training and disseminate information to enable all

employees to accept individual responsibility for Environment, Health and
Safety, implement best practices, and work in partnership to create a culture
of continuous improvement.
To instill a sense of duty in every employee towards personal safety, as well
as that of others who may be affected by the employees actions.
To provide and maintain facilities, equipment, operations and working
conditions which are safe for employees, visitors and contractors at the
Companys premises.
To ensure safe handling, storage, use and disposal of all substances and
materials that are classified as hazardous to health and environment.
To reduce waste, conserve energy, and promote recycling of materials
wherever possible.
To institute and implement a system of regular EHS audit in order to assure
compliance with laid down policy, benchmarked standards, and
requirements of laws, regulations and applicable codes of practice.
To proactively share information with business partners towards inculcating
world-class EHS standards across the value chain of which ITC is a part.
All employees of ITC are expected to adhere to and comply with the EHS Policy
and Corporate Standards on EHS.
ITCs EHS Policy extends to all sites of the Company. It will be the overall
responsibility of the Divisional/SBU Chief Executives, through the members of
their Divisional Management Committees, General Managers and Unit Heads, to
ensure implementation of this Policy and Corporate Standards on EHS, including
formation of various committees and designating individuals for specific
responsibilities in respect of their Division/SBU.

The Corporate EHS Department is responsible for reviewing and updating

Corporate Standards on EHS, and for providing guidance and support to all
concern.

In particular, it is ITCs EHS policy To contribute to sustainable development through the establishment and
implementation of environment standards that are scientifically tested and
meet the requirement of relevant laws, regulations and codes of practice.
To take account of environment, occupational health and safety in planning
and decision-making.
To provide appropriate training and disseminate information to enable all
employees to accept individual responsibility for Environment, Health and
Safety, implement best practices, and work in partnership to create a culture
of continuous improvement.
To instil a sense of duty in every employee towards personal safety, as well
as that of others who may be affected by the employees actions.
To provide and maintain facilities, equipment, operations and working
conditions which are safe for employees, visitors and contractors at the
Companys premises.
To ensure safe handling, storage, use and disposal of all substances and
materials that are classified as hazardous to health and environment.
To reduce waste, conserve energy, and promote recycling of materials
wherever possible.

 To institute and implement a system of regular EHS audit in order to assure

compliance with laid down policy, benchmarked standards, and
requirements of laws, regulations and applicable codes of practice.
To proactively share information with business partners towards inculcating
world-class EHS standards across the value chain of which ITC is a part.
All employees of ITC are expected to adhere to and comply with the EHS Policy
and Corporate Standards on EHS.
ITCs EHS Policy extends to all sites of the Company. It will be the overall
responsibility of the Divisional/SBU Chief Executives, through the members of
their Divisional Management Committees, General Managers and Unit Heads, to
ensure implementation of this Policy and Corporate Standards on EHS, including
formation of various committees and designating individuals for specific
responsibilities in respect of their Division/SBU.
The Corporate EHS Department is responsible for reviewing and updating
Corporate Standards on EHS, and for providing guidance and support to all
concern.
Corporate Governance
Preamble
Over the years, ITC has evolved from a single product company to a multibusiness corporation. Its businesses are spread over a wide spectrum, ranging from
cigarettes and tobacco to hotels, packaging, paper and paperboards and
international commodities trading. Each of these businesses is vastly different from
the others in its type, the state of its evolution and the basic nature of its activity, all
of which influence the choice of the form of governance. The challenge of
governance for ITC therefore lies in fashioning a model that addresses the
uniqueness of each of its businesses and yet strengthens the unity of purpose of the
Company as a whole.
Since the commencement of the liberalisation process, India's economic scenario
has begun to alter radically. Globalisation will not only significantly heighten

business risks, but will also compel Indian companies to adopt international norms
of transparency and good governance. Equally, in the resultant competitive context,
freedom of executive management and its ability to respond to the dynamics of a
fast changing business environment will be the new success factors. ITC's
governance policy recognises the challenge of this new business reality in India.
DEFINITION AND PURPOSE
ITC defines Corporate Governance as a systemic process by which companies are
directed and controlled to enhance their wealth generating capacity. Since large
corporations employ vast quantum of societal resources, we believe that the
governance process should ensure that these companies are managed in a manner
that meets stakeholders aspirations and societal expectations.

CORE PRINCIPLES
ITC's Corporate Governance initiative is based on two core principles. These are :
i.

Management must have the executive freedom to drive the enterprise

forward without undue restraints; and

ii.

This freedom of management should be exercised within a framework of

effective accountability.

ITC believes that any meaningful policy on Corporate Governance must provide
empowerment to the executive management of the Company, and simultaneously
create a mechanism of checks and balances which ensures that the decision making
powers vested in the executive management is not only not misused, but is used
with care and responsibility to meet stakeholder aspirations and societal
expectations.

Cornerstones

From the above definition and core principles of Corporate Governance emerge the
cornerstones of ITC's governance philosophy, namely trusteeship, transparency,
empowerment and accountability, control and ethical corporate citizenship. ITC
believes that the practice of each of these leads to the creation of the right
corporate culture in which the company is managed in a manner that fulfls the
purpose of Corporate Governance.
Trusteeship :
ITC believes that large corporations like itself have both a social and economic
purpose. They represent a coalition of interests, namely those of the shareholders,
other providers of capital, business associates and employees. This belief therefore
casts a responsibility of trusteeship on the Company's Board of Directors. They are
to act as trustees to protect and enhance shareholder value, as well as to ensure that
the Company fulfils its obligations and responsibilities to its other stakeholders.
Inherent in the concept of trusteeship is the responsibility to ensure equity, namely,
that the rights of all shareholders, large or small, are protected.
Transparency :
ITC believes that transparency means explaining Company's policies and actions to
those to whom it has responsibilities. Therefore transparency must lead to
maximum appropriate disclosures without jeopardising the Company's strategic
interests. Internally, transparency means openness in Company's relationship with
its employees, as well as the conduct of its business in a manner that will bear
scrutiny. We believe transparency enhances accountability.
Empowerment and Accountability :
Empowerment is an essential concomitant of ITC's first core principle of
governance that management must have the freedom to drive the enterprise
forward. ITC believes that empowerment is a process of actualising the potential of
its employees. Empowerment unleashes creativity and innovation throughout the
organisation by truly vesting decision-making powers at the most appropriate
levels in the organisational hierarchy.

ITC believes that the Board of Directors are accountable to the shareholders, and
the management is accountable to the Board of Directors. We believe that
empowerment, combined with accountability, provides an impetus to performance
and improves effectiveness, thereby enhancing shareholder value.
Control :
ITC believes that control is a necessary concomitant of its second core principle of
governance that the freedom of management should be exercised within a
framework of appropriate checks and balances. Control should prevent misuse of
power, facilitate timely management response to change, and ensure that business
risks are pre-emptively and effectively managed.

Ethical Corporate Citizenship :

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

ITC Ltd. Policy on Human Rights

ITC believes that all its employees must live with social and economic dignity and
freedom, regardless of nationality, gender, race, economic status or religion. In the
management of its businesses and operations therefore, ITC ensures that it 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.
Policy
ITC upholds international human rights standards, does not condone human rights

abuses, and creates and nurtures a working environment where human rights are
respected without prejudice.
Implementation
The Corporate Human Resources function of ITC is responsible for the Human
Rights Policy design, implementation and updation.The policy is implemented at
all locations of ITC through a set of separate policies and procedures covering
each of the main constituents of human rights applicable at the workplaces.
Monitoring&Audit
The assessment procedures for different constituents of this policy are defined
against each specific policy.

Consideration of Human Rights Impacts Across the Supply Chain

As a large and multi-product enterprise whose products are benchmarked
nationally and internationally, ITC's main supply chains can be grouped as follows:
1. For all its operations, technology, machinery and equipment are sourced
from reputed and globally benchmarked suppliers/vendors who are expected
to follow internationally accepted norms and standards on human rights.
2. ITC's major businesses are vertically integrated across several Divisions. A
substantial part of the supply chain is therefore internal through strategic
backward linkages. Common values relating to human rights performance
are shared across this supply chain.
3. Being a major agri-based company, the agriculture sector is a major supplier
of inputs for its operations. The bulk of agricultural commodities are
procured from state controlled trading platforms and the open market.
A very small proportion of ITC's business consists of supply chains comprising
local vendors and suppliers. The policy framework for such entities is enunciated

separately in 'Policy to Ensure Respect for Human Rights across the Supply
Chain'.
Policy to Prevent Discrimination at Workplace
ITC acknowledges that every individual brings a different and unique set of
perspectives and capabilities to the team. A discrimination-free workplace for
employees provides the environment in which diverse talents can bloom and be
nurtured. This is achieved by ensuring that a non-discrimination policy and
practice is embedded across the Company in line with corporate principles and
benchmarked business practices.
Policy
ITC's approach to its human resources is premised on the fundamental belief in
fostering meritocracy in the organisation which, pari passu, promotes diversity and
offers equality of opportunity to all employees. ITC does 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, or
union organization or minority group.
Implementation
The policy is communicated to all employees through induction programmes,
policy manuals and intranet portals.
The custodian of this policy is the head of each operational unit and Divisional
Chief Executives of the respective business.
ITC's complaints resolution procedure is premised on the freedom of employees to
approach higher officials beyond his/her immediate superior. For the unionised
employees, compliance of the policy is ensured through a robust grievance
handling procedure and the presence of a union that brings violations to the notice
of the unit HR head.
Monitoring&Auditing
The accountability for the application of the non-discrimination employment

policy rests with the Unit Head who reviews anti-discriminatory complaints
annually or on a case-by-case basis.
The Corporate Human Resources function conducts non-discrimination reviews
annually on a sample basis with unit heads and through on-site assessments

ITC's Core Values are aimed at developing a customer-focused, highperformance organisation which creates value for all its stakeholders:
Trusteeship
As professional managers, we are conscious that ITC has been given to us in
"trust" by all our stakeholders. We will actualise stakeholder value and interest on a
long term sustainable basis.
Customer Focus
We are always customer focused and will deliver what the customer needs in terms
of value, quality and satisfaction.
Respect For People
We are result oriented, setting high performance standards for ourselves as
individuals and teams.

We will simultaneously respect and value people and uphold humanness and
human dignity.
We acknowledge that every individual brings different perspectives and
capabilities to the team and that a strong team is founded on a variety of
perspectives.
We want individuals to dream, value differences, create and experiment in pursuit
of opportunities and achieve leadership through teamwork.
Excellence
We do what is right, do it well and win. We will strive for excellence in whatever
we do.
Innovation
We will constantly pursue newer and better processes, products, services and
management practices.
Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In
pursuit of our goals, we will make no compromise in complying with applicable
laws and regulations at all levels
ITC believes that all its employees must live with social and economic dignity and
freedom, regardless of nationality, gender, race, economic status or religion. In the
management of its businesses and operations therefore, ITC ensures that it 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.
Policy
ITC upholds international human rights standards, does not condone human rights
abuses, and creates and nurtures a working environment where human rights are
respected without prejudice.

Implementation
The Corporate Human Resources function of ITC is responsible for the Human
Rights Policy design, implementation and updation.
The policy is implemented at all locations of ITC through a set of separate policies
and procedures covering each of the main constituents of human rights applicable
at the workplaces.
Monitoring & Audit
The assessment procedures for different constituents of this policy are defined
against each specific policy.

Consideration of Human Rights Impacts Across the Supply Chain

As a large and multi-product enterprise whose products are benchmarked
nationally and internationally, ITC's main supply chains can be grouped as follows:
1. For all its operations, technology, machinery and equipment are sourced
from reputed and globally benchmarked suppliers/vendors who are expected
to follow internationally accepted norms and standards on human rights.
2. ITC's major businesses are vertically integrated across several Divisions. A
substantial part of the supply chain is therefore internal through strategic
backward linkages. Common values relating to human rights performance
are shared across this supply chain.
3. Being a major agri-based company, the agriculture sector is a major supplier
of inputs for its operations. The bulk of agricultural commodities are
procured from state controlled trading platforms and the open market.

A very small proportion of ITC's business consists of supply chains comprising

local vendors and suppliers. The policy framework for such entities is enunciated
separately in 'Policy to Ensure Respect for Human Rights across the Supply Chain'
Policy to Ensure Respect for Human Rights Policy across the Supply Chain
ITC provides products and services of superior quality and value by sourcing its
technologies, equipment and inputs from reputed international and Indian
manufacturers and suppliers. Common values, relating to human rights
performance, are shared across the entire supply chain because ITC is committed
to the importance of a socially responsible and accountable supply chain.
Policy
ITC nurtures an internal working environment which respects human rights
without prejudice. Likewise, it expects its business partners to establish a human
rights compliant business environment at the workplace.

Implementation
The responsibility for implementation of this policy rests with the Divisional Chief
Executive of the concerned business and the Unit Manager. The policy is
communicated internally through policy manuals and intranet portals, and
externally by the HR personnel of concerned units to vendors/suppliers.
Monitoring & Audit
ITC has established a policy intent for mapping/monitoring progress and
performance of existing and potential vendors/suppliers on human rights
performance.
Policy to Prevent Discrimination at Workplace
ITC acknowledges that every individual brings a different and unique set of
perspectives and capabilities to the team. A discrimination-free workplace for

employees provides the environment in which diverse talents can bloom and be
nurtured. This is achieved by ensuring that a non-discrimination policy and
practice is embedded across the Company in line with corporate principles and
benchmarked business practices.
Policy
ITC's approach to its human resources is premised on the fundamental belief in
fostering meritocracy in the organisation which, pari passu, promotes diversity and
offers equality of opportunity to all employees. ITC does 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, or
union organization or minority group.

Implementation
The policy is communicated to all employees through induction programmes,
policy manuals and intranet portals.
The custodian of this policy is the head of each operational unit and Divisional
Chief Executives of the respective business.
ITC's complaints resolution procedure is premised on the freedom of employees to
approach higher officials beyond his/her immediate superior. For the unionised
employees, compliance of the policy is ensured through a robust grievance
handling procedure and the presence of a union that brings violations to the notice
of the unit HR head.
Monitoring & Auditing

The accountability for the application of the non-discrimination employment

policy rests with the Unit Head who reviews anti-discriminatory complaints
annually or on a case-by-case basis.
The Corporate Human Resources function conducts non-discrimination reviews
annually on a sample basis with unit heads and through on-site assessments.
Policy on Freedom of Association
ITC's culture is characterized by cooperative relationships and high employee
involvement that relies on building partnerships and interdependence. Adhering to
these principles has helped build, sustain and strengthen harmonious employee
relations in the organisation.
Policy
ITC respects the employees' right to organize themselves into interest groups as
initiatives of the workers, independent from supervision by the management. In
keeping with the spirit of this Policy, employees are not discriminated against for
exercising this right.
Implementation
The policy is communicated to all employees through induction programmes,
policy manuals and intranet portals.
The custodian of this policy is the HR head of each operational unit who reports
directly to Unit Head on such issues.
The actualisation of this policy is evident from the joint agreements and minutes
that are signed between the union and the management.
Monitoring & Audit
Each ITC Unit has appropriate systems and checks to ensure compliance with the
Policy and statutory provisions, including means for filing of grievances, collective
bargaining
agreements
and
minutes
from
worker
meetings.
Compliance with the Policy is regularly monitored by Divisional and Corporate
HR.

Policy Prohibiting Child Labour and Preventing Forced Labour from

Workplace
The foundation of ITC's "No Child or Forced Labour policy" is based on the
Company's commitment to find practical, meaningful and culturally appropriate
responses to support the elimination of such labour practices. It thus endorses the
need for appropriate initiatives to progressively eliminate these abuses.
Policy
ITC does not employ any person below the age of eighteen years in the workplace.
ITC prohibits the use of forced or compulsory labour at all its units. No employee
is made to work against his/her will or work as bonded/forced labour, or subject to
corporal punishment or coercion of any type related to work.
Implementation
This policy is publicly available throughout the Company and clearly
communicated to all employees in a manner in which it can be understood through
induction programmes, policy manuals and intranet portals.
The responsibility for the implementation of the policy rests with the Units HR
Department and the security staff who do not permit underage persons to enter the
factory as workers.
Employment contracts and other records documenting all relevant details of the
employees, including age, are maintained at all units and are open to verification
by any authorized personnel or relevant statutory body.
Compliance with the policy is evident in the transparent system of recruitment and
the policy of exit interviews which are undertaken by a manager not directly
connected with the employee. For the unionised employees, compliance is also
ensured through a robust grievance handling procedure and the presence of a union
that brings violations to the notice of the unit HR head.
Monitoring
&
Audit
Sample checks of the records are undertaken annually by Corporate Human
Resources function.

Audit and assessment is undertaken annually by Corporate Internal Audit and the
Environment, Occupation Health and Safety function.

Policy on Information and Consultation on Changes

ITC's core values support an employee engagement process that aligns its
employees with a shared vision and purpose of the Company in the belief that
every individual brings a different perspective and capability to the team. ITC thus
harnesses the creative potential of all its employees by promoting a culture of
partnerships to unleash relevant synergies between different groups of employees.
Policy
All major changes in operations involving work processes, manning norms and
other productivity linked issues are carried out after discussions with the
employees and the recognized unions at each location.
Implementation
Business plans are shared with employees at all units through a series of formal
communication meetings, and through the intranet portals. Unionised employees at
the concerned units are informed of all major changes well in advance through
their representatives.
The responsibility for the implementation of the policy rests with the Unit's HR
Department in the case of unionized employees and with the concerned Divisional
Management Committees for other employees.
The employees are given enough time to consider the implications of change and
an opportunity to discuss their apprehensions, if any, with the management.
The Policy is actualised through consultative meetings with representatives of
employees, culminating in joint minutes/agreements.

Monitoring
&
Compliance with the Policy is regularly monitored by the Unit Head.

Auditing

HIV/AIDS: Policy Guidelines

Background
ITC is committed to providing a safe and healthy work environment to all its
employees. These policy guidelines on HIV/AIDS are an endorsement of this
commitment and, in particular, of the Company's commitment to specific
programmes and actions in response to the HIV epidemic.
The Company's position is based on scientific and epidemiological evidence that
people with HIV/AIDS do not pose a risk of transmission of the virus to coworkers by casual, non-sexual contact in the normal work setting.
Policy Guidelines
Compliance
The Company's policies on HIV/AIDS with regard to its employees will, at a
minimum, comply with all relevant Central and State legislation and the Company
will implement all policies and directions of the Government regarding HIV/AIDS
whenever issued.
1. Prevention through Awareness
The Company will provide to all its employees sensitive, accurate and the
latest information about risk reduction strategies in their personal lives, with
the objectives of reducing the stigma of HIV/AIDS, encouraging safe
behaviour and improving understanding of treatment.
2. Safe and Healthy Workplace

The Company is committed to providing a safe and healthy workplace to all

its employees. It is the Company's objective that employees will have access
to health services to prevent and manage HIV/AIDS.
3. Non-discrimination
The Company will not discriminate against any employee infected by
HIV/AIDS with regard to promotions, training and other privileges and
benefits as applicable to all employees.
i.

A HIV positive employee will be allowed to continue to work in

his/her job unless

Medical conditions interfere with the specific job being done, in which
case reasonable alternative working arrangements will be made; or
The employee is incapacitated to perform his/her duties and is declared
medically unfit by a medical doctor, in which case the employee will be
assisted to rehabilitate himself/herself outside the Company.
i

The Company will not make pre-employment HIV/AIDS screening

mandatory as part of its fitness to work assessment. Screening of this
kind refers to direct methods (HIV testing), indirect methods
(assessment of risk behaviour), and questions about HIV tests already
taken.

ii

HIV/AIDS test will not be part of the annual health check-ups unless
specifically requested for by an employee.

2 Confidentiality
Voluntary testing for HIV/AIDS when requested for by the employee, will be
carried out by private or community health services and not at the workplace.
There will no obligation on the part of the employees to inform the Company about
their clinical status in relation to HIV/AIDS.
Information on clinical diagnosis of an employees' status in terms of his/her
HIV/AIDS status if advised to the Company, will be kept strictly confidential.

Management Approach
Policy: The Company's commitment in the area of economic performance is
encapsulated in its Vision statement, which is 'to 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 Company's stakeholders'. ITC's
Mission is 'to enhance the wealth generating capability of the enterprise in a
globalising environment delivering superior and sustainable stakeholder value'.
The Company's strategy is to ensure that each of its businesses is world-class and
internationally competitive in the Indian global market in the first instance, and
progressively in the offshore global markets.
ITC, as a premier 'Indian' enterprise, consciously exercises the strategic choice of
contributing to and securing the competitiveness of the entire value chain of which
it is a part. This philosophy has shaped the Company's approach to business into 'a
commitment beyond the market'.

Goals and Performance: At the enterprise level the Company's goals include:
Sustaining ITC's position as one of India's most valuable corporations
Achieving leadership in each of the business segments within a reasonable
time frame
Achieving a Return on Capital Employed (ROCE) in excess of the
Company's cost of capital, at all times
Amongst listed companies in the private sector, ITC ranked 4th in terms of Gross
Turnover and 3rd in terms of pre-tax profits for the financial year ended 31st
March 2006. The Company ranked 6th by market capitalisation amongst listed
private sector companies in the country, as at 31st March 2006.

The Company has consistently achieved a ROCE well in excess of its cost of
capital. Of the Rs.10,325 crores of 'value added' by the Company during the
financial year ended 31st March 2006, 74% represented Contribution to the
Exchequer.
Please refer to the 'Report of the Directors and Management Discussion and
Analysis' section of the Report and Accounts 2006 (available on itcportal.com) for
a detailed discussion on the Company's market standing in each of the business
segments.
Context: Please refer to the 'Report of the Directors and Management Discussion
and Analysis' section of the Report and Accounts 2006 for a detailed discussion on
the business environment, opportunities, key challenges, etc. pertaining to each of
the Company's businesses (available at www.itcportal.com).

Dealing with People in the Organisation

In dealing with each other, directors, senior management and employees shall
uphold the values which are at the core of our HR Philosophy - trust, teamwork,
mutuality and collaboration, meritocracy, objectivity, self respect and human
dignity. Indeed, these values form the basis of our HR management systems and
processes. In selection and recruitment, while meritocracy will be a prime
criterion, managers will scrupulously consider all factors that go towards securing
the interests of the Company. ITC will focus on meritocracy, equity and upholding
of Company values in all people processes including performance management
systems, appraisals, remuneration and rewards.

A Gender Friendly Workplace

As a good corporate citizen, ITC is committed to a gender friendly workplace. It
seeks to enhance equal opportunities for men and women, prevent/stop/redress
sexual harassment at the workplace and institute good employment practices.
Sexual harassment includes unwelcome sexually determined behaviour such as:
unwelcome physical contact; a demand or request for sexual favours; sexually
coloured remarks; showing pornography and any other unwelcome physical, verbal
or
non-verbal
conduct
of
a
sexual
nature.
ITC maintains an open door for reportees; encourages employees to report any
harassment concerns and is responsive to employee complaints about harassment
or other unwelcome and offensive conduct. A committee has been constituted to
enquire into complaints and to recommend appropriate action, wherever required.
ITC demands, demonstrates and promotes professional behaviour and respectful
treatment of all employees.

Relationships with Suppliers and Customers

All directors, senior management and employees shall ensure that in their dealings
with suppliers and customers, the Companys interests are never compromised.
Accepting gifts and presents of more than a nominal value, gratuity payments and
other payments from suppliers or customers will be viewed as serious breach of
discipline as this could lead tocompromising the Companys interests.
Legal Compliance
It is the Companys policy to comply fully with all applicable laws and regulations.
Ensuring legal and regulatory compliance is the responsibility of the Chief
Executives of the Businesses and the Divisional Management Committees. The

Company cannot accept practices which are unlawful or may be damaging to its
reputation. Divisional Management Committees must satisfy themselves that sound
and adequate arrangements exist to ensure that they comply with the legal and
regulatory requirements impacting each business and identify and respond to
developments in the regulatory environment in which they operate. In the event the
implication of any law is not clear, the Companys Legal Department shall be
consulted for advice.
Health and Safety
The Company attaches great importance to a healthy and safe work environment.
ITC is committed to provide good physical working conditions and encourages
high standards of hygiene and housekeeping. Particular attention should be paid to
training of employees to increase safety awareness and adoption of safe working
methods, particularly designed to prevent serious or fatal accidents.
Environment Policies
The Company believes that commitment to sustainable development is a key
component of responsible corporate citizenship and therefore deserves to be
accorded the highest priority. Accordingly, the Company is committed to Best
Practices in environmental matters arising out of its business activities and expects
each
business
to
fully
demonstrate
this
commitment.
In addition to complying with applicable laws and regulations, Businesses must
establish procedures for assessing the environmental effects of their present and
future activities. They should adopt Best Practices in their environmental policies
and procedures.
Personal Conduct
All directors, senior management and employees have the obligation to conduct
themselves in an honest and ethical manner and act in the best interest of the
Company at all times. They are expected to demonstrate exemplary personal
conduct through adherence to the following:
Avoidance of Conflict of Interest

All directors, senior management and employees must avoid situations in which
their personal interest could conflict with the interest of the Company. This is an
area in which it is impossible to provide comprehensive guidance but the guiding
principle is that conflict, if any, or potential conflict must be disclosed to higher
management for guidance and action as appropriate.
Transparency and Auditability
All directors, senior management and employees shall ensure that their actions in
the conduct of business are totally transparent except where the needs of business
security dictate otherwise. Such transparency shall be brought about through
appropriate policies, systems and processes, including as appropriate, segregation
of duties, tiered approval mechanism and involvement of more than one manager
in key decisions and maintaining supporting records. It shall be necessary to
voluntarily ensure that areas of operation are open to audit and the conduct of
activities is totally auditable.
Protection of Confidential Information
No director, senior management and employee shall disclose or use any
confidential information gained in the course of employment/ association with the
Company for personal gain or for the advantage of any other person. No
information either formally or informally shall be provided to the press, other
publicity media or any other external agency except within approved policies.

Company Facilities
No director, senior management and employee shall misuse Company facilities. In
the use of Company facilities, care shall be exercised to ensure that costs are
reasonable and there is no wastage.
Waivers

Any waiver of any provision of this Code of Conduct for a director, senior
management or employee must be placed for approval before the Companys
Board of Directors/ Corporate Management Committee, as appropriate.

Privacy Policy
ITC Limited welcomes you to its website and looks forward to a meaningful
interaction with you.
ITC Limited respects your right to privacy. Any personal information that
you share with us, like your name, date of birth, address, marital status,
telephone number, credit card particulars and the like, shall be entitled to
privacy and kept confidential.
ITC Limited assures you that your personal information shall not be
used/disclosed by it, save for the purpose of doing the intended business
with you, or if required to be disclosed under the due process of law.
ITC Limited assures you that in the event of your personal information being
shared with its subsidiaries, business associates etc., such sharing of
information shall be for the purpose of doing the intended business with you.
ITC Limited reserves its rights to collect, analyse and disseminate aggregate
site usage patterns of all its visitors with a view to enhancing services to its
visitors. This includes sharing the information with its subsidiaries, and
business associates as a general business practice.
In the course of its business ITC Limited may hold on-line contests and
surveys as permitted by law and it reserves its right to use and disseminate
the information so collected to enhance its services to the visitors. This shall
also include sharing the information with its subsidiaries and business
associates as a general business practice.
If you have any questions or concerns regarding your privacy issues, please
do not hesitate to contact ITC Limited at webmaster@itc.in

 While ITC Limited assures you that it will do its best to ensure the privacy
and security of your personal information, it shall not be responsible in any
manner whatsoever for any violation or misuse of your personal information
by unauthorised persons consequent to misuse of the internet environment.
Cookies :- To personalise your experience on our website or to support one
of our promotions, we may assign your computer browser a unique random
number called a cookie. "Cookies" enhance website performance in
important ways like personalising your experience, or making your visit
more convenient. Your privacy and security are not compromised when you
accept a "cookie" from our website. ITC Limited does not use "cookies" to
collect personal information. "Cookies" cannot read data from your
computers hard disk or read cookie files from other websites.
ITC Limited reserves its rights to revise this privacy policy from time to
time at its discretion with a view to making the policy more user friendly.
In the design of our website, we have taken care to draw your attention to this
privacy policy so that you are aware of the terms under which you may decide to
share your personal information with us. Accordingly, should you choose to share
your personal information with us, ITC Limited will assume that you have no
objections to the terms of this privacy policy.

Bibliography
http://www.itcportal.com/
http://en.wikipedia.org/wiki/ITC_%28company%29

Book referred for the explanation of concept

Human resource management
Author K Aswathappa

Edition 4th