CSR project of ITC company

1. i
Project report on
“CORPORATE SOCIAL RESPONSIBILITY ”
Submitted in partial fulfilment for the award of the degree of
Master of management studies (MMS)
(Under the university of Mumbai)
Submitted by:
Yogesh Harishchandra Kadu
MB/B/16/006
SYMMS (SEM-IV)
Under the guidance of
Prof. Kushal Rajput
2016-2018
SAS Institute of Management Studies (MMS)

2. ii
CERTIFICATE
Date:___________
This is to certify that Yogesh Harishchandra Kadu is a Bonafide student of SAS Institute of
Management Studies.
He has completed his project work entitled “CORPORATE SOCIAL RESPONSIBILITY”
under the guidance of Faculty Member Prof Kushal Rajput satisfactorily and has submitted to the
institute. The matter presented in the project report has not been submitted earlier.
Director Project Guide
Dr. Bhagesh Sankhe Prof.Kushal Rajput

3. iii
Declaration
I hereby declare that this project report submitted by me to the SAS Institute of Management
Studies is a bonafide work undertaken by me and it is not submitted to any other University or
Institution for the award of any degree diploma / certificate or published any time before.
Name: Yogesh Harishchandra Kadu
Date: ______________ (Signature of the student)

4. iv
Acknowledgement
I am extremely grateful to University of Mumbai for having prescribed this project work as a
part of academic requirement in the „SAS Institute of Management Studies’ (MMS) course.
I wish to express a special thanks to my project guide “Prof. Kushal Rajput”. Without whose
guidance the project may not have taken shape.
I would like to thank to staff of ITC‟s group of companies who give me overall information of
company.
Finally I would like to thank all those who have directly or indirectly helped me towards the
execution of this project with full sincerity.
Sincere thanks to all.
Director Project Guide
Dr.Bhagesh Sankhe Prof.Kushal Rajput

5. v
INDEX
Sr. No Topic Pg.No
1 Certificate I
2 Declaration Ii
3 Acknowledgement Iii
Chapter 1 Introduction 1
Objective Of Study 3
Chapter 2 Research Methodology 4
Chapter 3 Social Responsibility 6
Concept Of Social Responsibility 9
Corporate Social Responsibility (Csr) 10
Why Should Business Be Socially Responsible 11
Chapter 4
Result 14
How To Set Social Responsibilities
15
Responsibility Towards Different Interest Group 16
Social Values And Business Ethics 21
Chapter 5 Discussion
Environmental Pollution And Role Of Business
22
Role Of Business In Environmental Pollution 27
Contribution Of Itc Group Of Industries In Csr 29
E Choupal 31

6. vi
Social & Farm Forestry 34
Integrated Watershed Development 35
Women‟s Empowerment 36
Providing Supplementary Education 37
An Exemplary Contribution To The Triple
Bottom Line
38
Select National & Global Recognition
For Itc‟s Sustainability Initiatives
39
Chapter 6 Conclusion 41
Chapter 7 Bibliography
44

7. Chapter 1
Introduction

8. 2
Introduction
The term SOCIAL RESPONSIBILITY is a blend of two different attributes .
SOCIAL:-
The term Social refers to a characteristic of living organisms (humans in particular, though
biologists also apply the term to populations of other animals). It always refers to the interaction
of organisms with other organisms and to their collective co-existence, irrespective of whether
they are aware of it or not, and irrespective of whether the interaction is voluntary or involuntary.
RESPONSIBILITY:-
The state of being responsible, accountable, or answerable, as for a trust, debt, or obligation.
Liable to be required to give account, as of one's actions or of the discharge of a duty or trust.
The social force that binds you to your obligations and the courses of the actions demanded by
that forces from trustworthiness. It‟s the trait of being answerable to something or being
responsible for one‟s conduct.

9. 3
OBJECTIVE OF STUDY
 To study what is social responsibility of business
 To study the concept of social responsibility
 To study the importance of csr to organization
 Different interest groups effected by csr
 To get know about social values and business ethics

10. 4
Chapter 2
Research methodology

11. 5
Collection of data
1) Primary data:-
Primary data is originally gathered specifically on project hand. One can obtain
information from dealers, salesmen, etc. it offers much greater accuracy and reliability.
2. Secondary data:-
Secondary data is the data already collected by someone else. This data is not especially
collected to solve present or specific problem. The information is relevant and can be used for our
purpose.
Following are the sources from which I have collected my secondary data:-
 Books
 Business organization – Ankurchhabra
 Internet (Google, Wikipedia)
 Business studies –T.N. chhabra

12. 6
Chapter 3
Social Responsibility

13. 7
Social Responsibility
‘ We make a living by what we get, but we make a life by what we give.” – Winston Churchill.
. There is always a trade-off between economic development, in the material sense, and the
welfare of the society and environment. Social responsibility means sustaining the equilibrium
between the two. It pertains not only to business organizations but also to everyone whose any
action impacts the environment. This responsibility can be passive, by avoiding engaging in
socially harmful acts, or active, by performing activities that directly advance social goals.
In our daily life, you perform a number of activities. For example, brushing our teeth, listening to
our parents, showing respect to elders obeying traffic rules on road etc. why do we perform all
these activities? It is because we live in a family as well as in society and the members of your
family as well as the society want from us to do all of them. They do several things for us and
expect something from you, which you must do.
The expectations of the family or society become our obligations, which we need to fulfil . For
example, taking care of your parents or children, keeping the road clean by not throwing garbage
on it, etc. There are also obligations towards yourself, which you need to fulfil .For example,
taking food timely, going to sleep early at night, etc. that keep you fit and takes care of your
health. Now you fulfil all these obligations by performing certain activities which are called your
responsibilities. Any responsibility you have, particularly towards members of the society with
whom you interact or towards the society in general, are called your social responsibility.
Social responsibility can be classified into two parts:
individual social responsibility or ISR is the responsibility of every individual for his/her
actions. It is morally binding on everyone to act in such a way that the people immediately
around them are not adversely affected. ISR is a commitment everyone has towards the society –
contributing towards social, cultural and ecological causes. ISR is based on an individual‟s ethics.
Instead of giving importance only to those areas where one has material interests the individual

14. 8
supports issues for philanthropic reasons. “ISR is viewed as a tool for CSR”. ISR forms the base
for CSR or Corporate Social Responsibility because if everyone in a business organization does
his/her bit the bigger things automatically fall into place.
Corporate Social Responsibility or CSR has been defined by Lord Holmes and Richard Watts
in The World Business Council for Sustainable Development‟s publication „Making Good
Business Sense‟ as “…the continuing commitment by business to behave ethically and contribute
to economic development while improving the quality of life of the workforce and their families
as well as the local community and society at large".
This is true in case of business also. As we know, every business operates within a society. It
uses the resources of the society and depends on the society for its functioning. This creates an
obligation on the part of business to look after the welfare of society. So all the activities of the
business should be such that they will not harm, rather they will protect and contribute to the
interests of the society. Social responsibility of business refers to all such duties and obligations
of business directed towards the welfare of society. These duties can
be a part of the routine functions of carrying on business activity or they may be an additional
function of carrying out welfare activity.
Let us take an example. A drug-manufacturing firm undertakes extensive research and thus,
produces drugs which are qualitatively superior. It also provides scholarships or fellowships to
the family members of its employees for studying abroad. We find, in both the cases, the drug-
manufacturing firm is carrying out its social responsibility. In case of the former, it is a part of its
routine business function while in the latter case it is a welfare.

15. 9
Concept of Social Responsibility
We all know that people engage in business to earn profit. However, profit making is not the sole
function of business. It performs a number of social functions, as it is a part of the society. It
takes care of those who are instrumental in securing its existence and survival like- the owners,
investors, employees, consumers and government in particular and the society and community in
general. So, However, while doing so two things need to be noted to view it as social
responsibility of business.
First-any such activity is not charity. It means that if any business donates some amount of
money to any hospital or temple or school and college etc., it is not to be considered as discharge
of social responsibility because charity does not imply fulfilling responsibility.
Secondly- any such activity should not be such that it is good for somebody and bad for others.
Suppose a businessman makes a lot of money by smuggling or by cheating customers ,and then
runs a hospital to treat poor patients at low prices his actions cannot be socially justified. Social
responsibility implies that a businessman should not do anything harmful to the society in course
of his business activities.
Thus, the concept of social responsibility discourages businessmen from adopting unfair means
like black-marketing, hoarding, adulteration, tax evasion and cheating customers etc. to earn
profit. Instead, it encourages them to earn profit through judicious management of the business,
by providing better working and living conditions to its employees, providing better products,
after sales-service, etc. to its customers and simultaneously to control pollution and conserve
natural resources.

16. 10
Corporate Social Responsibility (CSR)
Corporate Social Responsibility or CSR has been defined by Lord Holme and Richard Watts in
The World Business Council for Sustainable Development‟s publication „Making Good Business
Sense‟ as “…the continuing commitment by business to behave ethically and contribute to
economic development while improving the quality of life of the workforce and their families as
well as the local community and society at large". CSR is one of the newest management
strategies where companies try to create a positive impact on society while doing business. There
is no clear-cut definition of what CSR comprises. Every company has different CSR objectives
though the main motive is the same. All companies have a two point agenda- to improve
qualitatively (the management of people and processes) and quantitatively (the impact on
society). The second is as important as the first and stake holders of every company are
increasingly taking an interest in “the outer circle”-the activities of the company and how these
are impacting the environment and society.
Corporate social responsibility (CSR, also called corporate conscience, corporate
citizenship, social performance, or sustainable responsible business) is a form of corporate self-
regulation integrated into a business model. CSR policy functions as a built-in, self-regulating
mechanism whereby business monitors and ensures its active compliance with the spirit of the
law, ethical standards, and international norms. The goal of CSR is to embrace responsibility for
the company's actions and encourage a positive impact through its activities on the environment,
consumers, employees, communities, stakeholders and all other members of the public sphere.
The term "corporate social responsibility" came into common use in the late 1960s and early
1970s after many multinational corporations formed the term stakeholder, meaning those on
whom an organization's activities have an impact. It was used to describe corporate owners
beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic
management: a stakeholder approach in 1984.]
Proponents argue that corporations make more

17. 11
Why should business be socially responsible
Social responsibility is a voluntary effort on the part of business to take various steps to satisfy
the expectation of the different interest groups. As you have already learnt, the interest groups
may be owners, investors, employees, consumers, government and society or community. But the
question arises, why should the business come forward and be responsible towards these interest
groups. Let us consider the following points:
i.) Public Image - The activities of business towards the welfare of the society earn goodwill
and reputation for the business. The earnings of business also depend upon the public image of its
activities. People prefer to buy products of a company that engages itself in various social welfare
programmes. Again, good public image also attracts honest and competent employees to work
with such employers.
ii.) Government Regulation - To avoid government regulations businessmen should discharge
their duties voluntarily. For example, if any business firm pollutes the environment it will
naturally come under strict government regulation, which may ultimately force the firm to close
down its business. Instead, the business firm should engage itself in maintaining a pollution free
environment.
ii.) Survival and Growth -Every business is a part of the society. So for its survival and growth,
support from the society is very much essential. Business utilizes the available resources like
power, water, land, roads, etc. of the society. So it should be the responsibility of every business
to spend a part of its profit for the welfare of the society.
iv.) Employee satisfaction - Besides getting good salary and working in a healthy atmosphere,
employees also expect other facilities like proper accommodation, transportation, education and
training. The employers should try to fulfill all the expectation of the employees because
employee satisfaction is directly related to productivity and it is also required for the long-term

18. 12
prosperity of the organisation. For example, if business spends money on training of the
employees, it will have more efficient people to work and thus, earn more profit.
v.) Consumer Awareness - Now-a-days consumers have become very conscious about their
rights. They protest against the supply of inferior and harmful products by forming different
groups. This has made it obligatory for the business to protect the interest of the consumers by
providing quality products at the most competitive price
vi.) To be loyal to everyone: A business should not work for the benefit of the
owners/shareholders alone. The participation of the employees, the customers, the suppliers and
the Government in the activities of a business is more than the participation of the owners. The
business, therefore, has the primary duty to serve these different groups apart from satisfying the
owners.
vii.) To compensate adverse effects: The activities of a business do have certain adverse effects
on the society. For example, the production process may pollute the environment. There may be
air as well as noise pollution due to industrial activity in a particular place. Improper treatment of
wastes and effluents may, sometimes, produce foul smell that people living nearby cannot bear.
There is also scope for water contamination. The business, therefore, has the responsibility to
adequately compensate the society for all these adverse effects.
viii.) To secure goodwill: It is also possible for a business to secure goodwill by being socially
responsible. By offering good quality products at affordable prices and by not indulging in anti-
social activities like adulteration. Black-marketing, etc., a business organization will be able to
secure the goodwill of its customers.
To behave as a good citizen: Like any individual who is expected to behave as a good citizen by
obeying the laws of the country, the business as a corporate citizen also has to abide by the laws
of the nation. The businessman shall pay his tax dues promptly and shall avoid doing anything
that is forbidden by law.

19. 13
ix) To recognize the dignity of labour: No business should treat labour as a commodity that
can be purchased for a price. The employees, who exert physically as well as mentally for the
betterment of the business, are as important as the owners are. The employer, therefore, has the
responsibility to compensate the employees adequately for their labour by providing monetary as
well as non-monetary benefits.
To have healthy competition: The competition among businessmen, belonging to the
same trade or industry should be healthy. No business should adopt unfair means, e.g., talking ill
of the competitors‟ products, in order to draw the customers‟ attention.

20. 14
Chapter 4
Result

21. 15
How To Set Social Responsibilities
Here are a few steps you can take to make social responsibility work for you:
Here are a few steps you can take to make social responsibility work for you:
. Set goals. What do you want to achieve? What do you want your company to
achieve? Do you want to enter a new market? Introduce a new product? Enhance your
business's image?
. Decide what cause you want to align yourself with. This may be your toughest decision,
considering all the option out there: children, the environment, senior citizens, homeless people,
people with disabilities--the list goes on. You might want to consider a cause that fits in with
your products or services. For example, a manufacturer of women's clothing could get involved
in funding breast cancer research. Another way to narrow the field is by considering not only
causes you feel strongly about, but also those that your customers consider significant.
.Choose a non profit or other organization to partner with. Get to know the group, and make
sure it's sound, upstanding, geographically convenient and willing to cooperate with you in
developing a partnership.
. Design a program, and propose it to the non profit group. Besides laying out what you plan
to accomplish, also include indicators that will measure the program's success in tangible terms.
. Negotiate an agreement with the organization. Know what they want before you sit down,
and try to address their concerns upfront.
. Involve employees. Unless you get employees involved from the beginning, they won't be able
to communicate the real caring involved in the campaign to customers.
. Involve customers. Don't just do something good and tell your customers about it later. Get
customers involved, too. A sporting goods store could have customers bring in used equipment
for a children's shelter, then give them a 15 percent discount on new purchases. Make it easy for
customer to do good; then reward them for doing it.

22. 16
Responsibility Towards Different Interest Groups
Competitors Society
Investors Business Customers
Employees Suppliers
Government Owners
Responsibility of Business Towards Different Interest Groups.
After getting some idea about the concept and importance of social responsibility of business let
us look into the various responsibilities that a business has towards different groups with whom it
interacts. The business generally interacts with owners, investors, employees, suppliers,
customers, competitors, government and society. They are called as interest groups because by
each and every activity of business, the interest of these groups is affected
directly or indirectly.

23. 17
i. Responsibility towards owners
Owners are the persons who own the business. They contribute capital and bear the business
risks. The primary responsibilities of business towards its owners are to:
a. Run the business efficiently
b. Proper utilization of capital and other resources.
c. Growth and appreciation of capital.
d. Regular and fair return on capital invested
ii. Responsibility towards investors
Investors are those who provide finance by way of investment in debentures, bonds, deposits etc.
Banks, financial institutions, and investing public are all included in this category. The
responsibilities of business towards its investors are :
a. Ensuring safety of their investment,
b. Regular payment of interest.
c. Timely repayment of principal amount
iii. Responsibility towards employees
Business needs employees or workers to work for it. These employees put their best effort for the
benefit of the business. So it is the prime responsibility of every business to take care of the

24. 18
interest of their employees. If the employees are satisfied and efficient, then the only business can
be successful. The responsibilities of business towards its employees include:
a. Timely and regular payment of wages and salaries.
b. Proper working conditions and welfare amenities.
c. Opportunity for better career prospects.
d. Job security as well as social security like facilities of provident fund, group
insurance, pension, retirement benefits, etc.
e. Better living conditions like housing, transport, canteen, crèches etc.
f. Timely training and development
iv. Responsibility towards suppliers
Suppliers are businessmen who supply raw materials and other items required by
manufacturers and traders. Certain suppliers, called distributors, supply finished products to the
consumers. The responsibilities of business towards these suppliers are:
a. Giving regular orders for purchase of goods.
b. Dealing on fair terms and conditions.
c. Availing reasonable credit period.
d. Timely payment of dues.
v. Responsibility towards customers
No business can survive without the support of customers. As a part of the responsibility of
business towards them the business should provide the following facilities:
a. Products and services must be able to take care of the needs of the customers.
b. Products and services must be qualitative

25. 19
c.There must be regularity in supply of goods and services
d. Price of the goods and services should be reasonable and affordable.
e. All the advantages and disadvantages of the product as well as procedure to use
the products must be informed do the customers.
f. There must be proper after-sales service.
g. Grievances of the consumers, if any, must be settled quickly.
h. Unfair means like under weighing the product, adulteration, etc. must be avoided
vi. Responsibility towards competitors
Competitors are the other businessmen or organizations involved in a similar type of business.
Existence of competition helps the business in becoming more dynamic and innovative so as to
make itself better than its competitors. It also sometimes encourages the business to indulge in
negative activities like resorting to unfair trade practices. The responsibilities of business towards
its competitors are
i not to offer exceptionally high sales commission to distributers, agents etc.
ii not to offer to customers heavy discounts and /or free products in every sale.
iii not to defame competitors through false or ambiguous advertisements.
vii. Responsibility towards government
Business activities are governed by the rules and regulations framed by the government. The
various responsibilities of business towards government are:

26. 20
a. Setting up units as per guidelines of government
b. Payment of fees, duties and taxes regularly as well as honestly.
c. Not to indulge in monopolistic and restrictive trade practices.
d. Conforming to pollution control norms set up by government.
h. Not to indulge in corruption through bribing and other unlawful activities.
viii. Responsibility towards society
A society consists of individuals, groups, organizations, families etc. They all are the members of
the society. They interact with each other and are also dependent on each other in almost all
activities. There exists a relationship among them, which may be direct or indirect. Business,
being a part of the society, also maintains its relationship with all other members of the society.
Thus, it has certain responsibilities towards society, which may be as follows:
a. to help the weaker and backward sections of the society
b. to preserve and promote social and cultural values
c. to generate employment
d. to protect the environment
e. to conserve natural resources and wildlife
f. to promote sports and culture
g. to provide assistance in the field of developmental research on education, medical science,
technology etc.

27. 21
Social Values and Business Ethics
Every society generally views certain activities, conduct and behaviour of its members to be
undesirable or harmful to others. Similarly, desirable acts and conduct of people are recognized
and appreciated in society. Social values refer to the general recognition in society about which
acts are good and desirable on the part of people and which acts are not. In relation to business,
social values of business may indicate:
a. the characteristics of good business;
b. objectives which are desirable for business to follow; and
c. the manner in which business activities should be conducted in the interest of
society. For example, we consider it bad, if any business indulges itself in selling adulterated
goods or charging higher price or polluting the environment. Thus, social values of the business
form the base for social responsibilities.
Ethics refers to conduct and activities of people based on moral principles. Honesty,
truthfulness, compassion, sympathy, feeling of brotherhood etc. are considered ethical. Business
can also be guided by certain moral principles say, running the business without adopting unfair
practices, being honest and truthful about quality of goods, charging fair prices, abiding to laws,
paying taxes, duties and fees to the government honestly. The basic question underlying business
ethics is whether business should aim at earning profit by any means? Obviously, not. Thus,
businessmen should charge only fair price for the goods and services supplied, never sell
adulterated products as pure. Indeed business ethics suggest certain principles to conduct business
so as to be morally justified. Just like social values, business ethics also play a major role while
fulfilling social responsibilities.

28. 22
Chapter 5
Discussion

29. 23
Environmental Pollution and Role of Business
To preserve the society it is important to protect the environment. And, therefore, every business
must take measures to protect the environment rather than damaging it. In this section let us learn
more about different types of environmental pollution and role of business. Nature has given us
air, land including mountains, hills, forests etc. and water in the form of rivers, lakes, sea etc.,
which create an environment in which we live. Our health and wellbeing largely depend on the
quality of such environment. However, it is observed that the quality of this environment is
deteriorating day by day. We are getting neither pure water to drink nor clean air to breathe. We
are having untimely rains, storms, cyclones, floods, extended
summer, etc. We are also suffering from various diseases because of such lower quality of
environment. When the quality of environment deteriorates, it is said that the environment is
getting polluted. Thus, environmental pollution refers to contamination of environment by
various substances that have adverse effects on living and non-living matters.
Environmental pollution is of three types:
i) Air pollution,
ii) Water pollution, and
iii) Land Pollution.
Let us have a brief discussion about these three types of pollution.
i. Air Pollution
As we know the air we breathe contains several gases, dust particles etc. Our body mechanism
helps us in filtering the unwanted ones and retaining those required for our survival. However, if
there is an imbalance in the proportion of gases and dust particles in air, beyond a certain point,
our body mechanism fails to filter them and we face problem. This is also true in care of other
natural things like forests, river etc. Thus, air pollution refers to the presence of any unwanted
gases, dust particles etc. in the air, that can cause damage to people as well as nature.
Causes of Air Pollution-
Let us know how air gets polluted. Some of the common causes of air pollution area.

30. 24
i.Emission of fumes from vehicles.
ii. Emission of smoke dust and chemicals from manufacturing plants.
iii. Emission of gases and dust arising from atomic plants
iv. Emission of smoke from oil refineries, burning of trees and plants in forests,
burring of coal, etc.
Impact of Air Pollution-
Air pollution has a lot of impact on our surroundings and on us. Some of them are-
required by human beings, animals and birds, creates
serious health problems. It can create diseases like asthma, cough and cold, blindness, hearing
loss, skin disease etc. It also causes genetic disorders. In the long run and in extreme cases it can
also be fatal.
with fog. It reduces natural visibility and irritates the eyes and respiratory tract.
ch protects us from harmful
ultraviolet rays that come from the sun. It gets depleted because of air pollution and thereby
causes gene mutation, genetic defects and skin cancer.
The temperature of the earth increases due to air pollution. This is because whatever heat our
earth receives from the sun is not radiated to the atmosphere due to the excessive presence of
gases like carbon dioxide, methane, nitrous oxide, etc.
Air pollution causes acid rain which means excessive presence of various poisonous gases
like sulphur dioxide, nitrogen oxide etc. in the rainwater. This causes lot of damage to vegetation,
trees and marine life, buildings and monuments etc.
Environment is also polluted through excessive noise, known as Noise Pollution. Noise simply
means an unwanted sound that causes irritation. It is caused by modern machines and gadgets
such as rail engines, loud speakers, generators, aero planes, vehicles , machineries, telephones,
televisions etc. It initially distorts communication process, but prolonged exposure to noise

31. 25
pollution can cause loss of hearing, headache, irritation, high blood pressure, neurological or
psychological disorders, etc.
b. Water Pollution
Have you seen river Yamuna near Delhi? Are you aware about the clean Ganga project? These
two questions almost immediately remind us about the extent to which the water of our rivers has
been polluted. Water pollution refers to contamination of water due to presence of unwanted and
harmful substances thus, making water unfit for use.
Causes of Water Pollution-
The various reasons of water pollution arei.
i.Drainage of human excreta into rivers, canals etc.
ii. Improper sanitation and sewage system.
iii. Dumping of wastes and effluents by various industrial units into the rivers and
canals.
iv. Drainage of toxic substances like chemicals and fertilizers used in cultivation, into
v. Dumping of garbage, dead bodies and almost everything used in rituals to the
nearby water source by households.
Effects of Water Pollution-
The effects of water pollution are:
a. It can create health hazards among human beings, animals and birds. Diseases
like typhoid, jaundice, cholera, gastroentytis etc. are common.
b. It can endanger lives of various aquatic species.

32. 26
c. It can lead to scarcity of drinking water as the water of rivers and canals as well
as underground water get polluted.
c. Land Pollution
Land Pollution refers to dumping of useless, unwanted as well as hazardous substances on
the land that degrades the quality of soil we use. Our land gets polluted because of the
human carelessness towards the soil.
Causes of Land Pollution-
The main causes of land pollution are:
(i) Excessive use of fertilizers, chemicals and pesticides in cultivation.
(ii) Disposal of solid waste of industries, mines and quarries.
(iii) Disposal of solid waste from construction of roads, buildings etc.
(iv) Effluents of some plants like paper, sugar etc. which are not absorbed by soil.
(v) Excessive use of plastic bags, which are non-biodegradable.
(vi) Dumping of non-compostable wastes from households, hotels and hospitals as well as from
industries. These may include combustible items like plastic, cloth, wood etc., and non-
combustible items like metal, glass, ceramics, cement etc.
Effects of Land Pollution-
Land Pollution has the following harmful effects
a. Reduces the quantum of cultivable land area.
b. Causes health hazards as it contaminates the sources of food.
c. Causes damage to the landscape.
d .Leads to water and air pollution.

33. 27
Role of Business in Environmental Pollution
From the above discussion on environmental pollution, one thing can clearly be seen that, itis
business that mainly contributes to all sorts of pollution -air, noise, water and land.
Business causes pollution in the following ways:
- Emission of gas and smoke from manufacturing plants;
- Use of machines, vehicles etc. contributing to noise pollution;
- Deforestation due to acquisition of forest lands for setting up plants;
- Growth of urbanization and industrialization;
- Disposal of wastes and effluents into rivers and canals;
- Disposal of solid wastes in the open space;
- Mining and quarrying activities; and
- Increasing use of transport.
Government has taken a major step in protecting the environment by passing the Environment
Protection Act, 1986 in addition to having Water (Prevention and Control of Pollution) Act,
1974, Air (Prevention and Control of Pollution) Act, 1981 and several other Acts. Business can
equally be instrumental in fighting pollution and protecting the environment.
Business can have three types of role - preventive, curative and awareness.

34. 28
i. Preventive Role
It means business should take all steps so that no further damage is done to the environment. For
this, business must follow the regulations laid down by government to control pollution. For
example, more and more environmental friendly products can be produced, filters can be used in
chimneys; silencers can be fitted in generators; instead of dumping industrial wastes into river
and land it can be treated properly for further productive use etc.
Businessmen should come forward to play a major role in preventing further damage done to the
environment by human beings. Sulabh International is the leading example of how to provide
proper sanitation facilities to the public.
ii. Curative Role
It means business should rectify whatever damage has been done to the environment. In addition,
if it is not possible to prevent pollution then simultaneous curative measures can be taken. For
example, planting of trees (forestation programmes) can substantially reduce air pollution near
the industrial area.
iii. Awareness Role
It means making people (both the employees as well as the general public) aware about the
causes and consequences of environmental pollution so that they voluntarily try to protect rather
than damage the environment. For example, business can undertake public awareness
programmes. Now-a-days, we find that some business houses have taken the responsibilities to
develop and maintain parks and gardens in cities and towns, which shows that they care for the
environment.

35. 29
CONTRIBUTION OF ITC GROUP OF INDUSTRIES IN CSR
Philosophy
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.
Recognizing that business enterprises are economic organs of society and draw on societal
resources, it is ITC's belief that a company's performance must be measured by its Triple Bottom
Line contribution to building economic, social and environmental capital. ITC is therefore
committed to creating larger 'stakeholder value' by aligning its performance to these Triple
Bottom Line objectives. As an Indian enterprise, ITC believes that this approach can unleash
strong drivers of growth to make it more inclusive and equitable for even the most marginalized
sections of society, through the creation of sustainable livelihoods, and to ensure long-term
business sustainability and competitiveness.
Preamble
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.
Policy
It is ITC's policy:
1. To pursue a corporate strategy that enables realisation of the twin goals of shareholder
value enhancement and societal value creation in a mutually reinforcing and synergistic
manner.

36. 30
2. To align and integrate Social Investments / CSR programmes with the business value
chains of your Company and make them outcome oriented. To support creation of on and
off-farm sustainable livelihood sources thereby empowering stakeholder communities to
conserve and manage their resources.
3. To implement Social Investments / CSR programmes primarily in the economic vicinity
of your Company's operations with a view to ensuring the long term sustainability of such
interventions.
4. To contribute to sustainable development in areas of strategic interest through initiatives
designed in a manner that addresses the challenges faced by the Indian society especially
in rural India.
5. To collaborate with communities and institutions to contribute to the national mission of
eradicating poverty and hunger, especially in rural areas, through agricultural research and
knowledge sharing, superior farm and agri-extension practices, soil and moisture
conservation and watershed management, conservation and development of forest
resources, empowering women economically, supplementing primary education and
participating in rural capacity building programmes and such other initiatives.
6. To align your Company's operations with the national objective of inclusive growth and
employment generation by leveraging your Company's diversified portfolio,
manufacturing bases, supply chains and distribution channels, to infuse an appropriate
mix of capital and technology to further social business initiatives such as e-Choupal,
animal husbandry, agarbatti rolling etc. and support organisations / institutions engaged in
building linkages with local, regional and urban communities and markets.
7. 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.
8. 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.

37. 31
E CHOUPAL
The Big Picture:
ITC's Agri Business Division, one of India's largest exporters of agricultural commodities, has
conceived e-Choupal as a more efficient supply chain aimed at delivering value to its customers
around the world on a sustainable basis.
The e-Choupal model has been specifically designed to tackle the challenges posed by the unique
features of Indian agriculture, characterised by fragmented farms, weak infrastructure and the
involvement of numerous intermediaries, among others.
The Value Chain - Farm to Factory Gate:
'e-Choupal' also unshackles the potential of Indian farmer who has been trapped in a vicious
cycle of low risk taking ability > low investment > low productivity > weak market orientation >
low value addition > low margin > low risk taking ability. This made him and Indian agribusiness
sector globally uncompetitive, despite rich & abundant natural resources.

38. 32
Such a market-led business model can enhance the competitiveness of Indian agriculture and
trigger a virtuous cycle of higher productivity, higher incomes, enlarged capacity for farmer risk
management, larger investments and higher quality and productivity.
Further, a growth in rural incomes will also unleash the latent demand for industrial goods so
necessary for the continued growth of the Indian economy. This will create another virtuous cycle
propelling the economy into a higher growth trajectory.
The Model in Action:
Appreciating the imperative of intermediaries in the Indian context, 'e-Choupal' leverages
Information Technology to virtually cluster all the value chain participants, delivering the same
benefits as vertical integration does in mature agricultural economies like the USA.
'e-Choupal' makes use of the physical transmission capabilities of current intermediaries -
aggregation, logistics, counter-party risk and bridge financing -while disintermediating them
from the chain of information flow and market signals.
With a judicious blend of click & mortar capabilities, village internet kiosks managed by farmers
- called sanchalaks - themselves, enable the agricultural community access ready information in
their local language on the weather & market prices, disseminate knowledge on scientific farm
practices & risk management, facilitate the sale of farm inputs (now with embedded knowledge)

39. 33
and purchase farm produce from the farmers' doorsteps (decision making is now information-
based).
Real-time information and customised knowledge provided by 'e-Choupal' enhance the ability of
farmers to take decisions and align their farm output with market demand and secure quality &
productivity. The aggregation of the demand for farm inputs from individual farmers gives them
access to high quality inputs from established and reputed manufacturers at fair prices. As a
direct marketing channel, virtually linked to the 'mandi' system for price discovery, 'e-Choupal'
eliminates wasteful intermediation and multiple handling. Thereby it significantly reduces
transaction costs.
'e-Choupal' ensures world-class quality in delivering all these goods & services through several
product / service specific partnerships with the leaders in the respective fields, in addition to
ITC's own expertise.

40. 34
Social & Farm Forestry
ITC procures wood pulp for its Paper and Paperboards business from renewable plantations
cultivated by tribals and farmers on their private wastelands. ITC invested in extensive R&D to
create clonal saplings which apart from being disease resistant, grow much faster and in harsher
conditions. A large number of tribals and marginal farmers have benefited by growing these
pulpwood saplings on their
private wastelands. ITC‟s paperboards business is a willing buyer of their produce, whilst the
growers are free to sell to the highest bidder in the open market.
ITC could have taken the easier route by importing pulp, rather than a more difficult route of
mobilising tribals and marginal farmers which involved long gestation and substantial investment
exposure. However, the adoption of this more challenging route has not only created a source of
sustainable
livelihoods for a large number of disadvantaged sections of society, but has also brought a
multiplicity of benefits by creating a large green cover that contributes significantly to
groundwater recharge, soil conservation and carbon sequestration.
Recently, ITC‟s social forestry project in Andhra Pradesh was
registered under the Clean Development Mechanism of the United Nations Framework
Convention on Climate Change. The carbon credits earned will also be shared with the tribals and
farmers, enabling them to participate in an international
carbon market mechanism

41. 35
Integrated Watershed Development
Recognising the vital role that irrigation and water play in the rural economy, ITC supports the
creation of watershed projects in water-stressed areas, providing precious water resources for
agriculture, rural communities and livestock. Based on a participatory approach that involves
local
communities, 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

42. 36
Women’s Empowerment
ITC‟s initiatives provide sustainable economic opportunities
to poor women in rural areas by assisting them to form microcredit self-help groups that enable
them to build up small savings and finance self-employment and micro-enterprises.
A large number of women earn income as self-employed workers or as partners in micro-
enterprises. The programme has demonstrated that extra income in the hands of women leads to
significant and positive changes in human development since it is spent largely on children‟s
education, health and
nutrition, and is a catalyst for gendering development.

43. 37
Providing Supplementary Education
ITC‟s Supplementary Learning Centres offer additional coaching that backs up school learning,
stemming drop-outs and enabling more children to complete school.
ITC also supports outreach projects, including mobile libraries that foster the reading habit and a
„roaming laptop‟ programme that promotes computer skills and interactive learning

44. 38
An Exemplary Contribution to the Triple Bottom Line
A growing portfolio of businesses encompassing FMCG, Paperboards & Packaging,
Agri & Foods Business, Hotels and Information Technology.
• A turnover of over US $ 7 billion and a market capitalisation of nearly US $ 35 billion.
• Total Shareholder Returns, measured in terms of increase in market capitalisation and
dividends, grew at a compound rate of 26% per annum over the last 15 years.
• The new FMCG businesses support the competitiveness, technology up gradation
and market reach of over 150 Small and Medium Enterprises ( SMEs ).
• ITC Group provides direct employment to more than 29,000 people.
ITC‟s businesses generate livelihoods for over 5 million people.
• ITC‟s globally recognised e-Choupal initiative is the world‟s largest rural digital infrastructure
benefiting over 4 million farmers.
• ITC‟s Social and Farm Forestry initiative has greened over 1,25,000 hectares,
creating over 56 million person-days of employment among the disadvantaged.
• ITC‟s Watershed Development initiative brings precious water to over 90,000 hectares
ofdrylands and moisture-stressed areas.
• ITC‟s Sustainable Community Development initiatives include women‟s empowerment,
supplementary education, integrated animal husbandry programmes.

45. 39
Select National & Global Recognition
for ITC’s Sustainability Initiatives
 World Business and Development Award 2012 for ITC‟s Social and
Farm Forestry Programmes, presented at the Rio+20 United Nations
Summit
 Global Leadership Award conferred on Mr Y C Deveshwar, Chairman,
ITC Limited, by the US-India Business Council of the US Chamber
of Commerce
 SAM/SPG Sustainability Leadership Award conferred on Mr Y C Deveshwar, Chairman, ITC
Limited
 FICCI Outstanding Vision Triple Impact Corporate Award, presented
by the Hon‟ble Prime Minister of India, Dr Manmohan Singh
 FICCI Award for Outstanding Achievement in Rural & Community
Development, presented by the Hon‟ble Finance Minister of India,
ShriPranab Mukherjee
 Development Gateway Award for e-Choupal‟s contribution to Information
& Communication Technologies for Development
 Inaugural World Business Award in recognition of ITC‟s significant
efforts to create sustainable livelihood opportunities and enduring
wealth in a developing country
 Stockholm Challenge Award for the e-Choupal initiative TERI Corporate Social
Responsibility Award
 UNESCO-Water Digest Corporate Social Responsibility Crown Award
for Water Practices
 TERI Corporate Social Responsibility Award for the e-Choupal initiative
 Asian CSR Award for Environmental Excellence
 ITC was ranked 2nd among the top companies in India and 7th in Asia
in the Asian Sustainability Rating released by CSR Asia
 Reader‟s Digest Pegasus Award for Corporate Social Responsibility
 UNIDO Award at the International Conference on Sharing Innovative

46. 40
Agribusiness Solutions
 NASSCOM Social Innovation Honour for ITC‟s Social & Farm Forestry
Programme
 ITC is the first Indian company to gain membership to the World Wildlife
Fund Global Forestry & Trade Network (WWF-GFTN) for its responsible
forestry initiatives
 NCPEDP (National Centre for Promotion of Employment for Disabled People) Shell-Helen
Keller Award for the

47. 41
Chapter 6
CONCLUSION

48. 42
Conclusion
towards the welfare of society.
- it creates a goodwill for the business among the public.
- it fosters long-term survival and growth of business.
- it provides satisfaction to the employees which is directly related to productivity
- consumer have become conscious about their rights.
every elements of
the society, which may be called as various interest groups. These interest groups consist of
owners, investors, employees, suppliers, costumers, competitors, government and society.
Social values may indicate good and desirable business conduct in the best interest
ofsociety.Business ethics suggest ways and means to conduct the business affairs according to
morally justified principles.
ion refers to contamination of environment by substances that have
adverse effects on living and non-living matter.
i. Air pollution,
ii. Water pollution, and
iii. Land Pollution
types of roles to play for the control of environmental pollution
- preventive, curative and awareness roles.

49. 43
Organizations are coming to realize the bottom-line benefits of incorporating sustainability into
their DNA. It‟s beneficial for attraction and retention and it‟s the right thing to do. HR is a key
organizational leader and can take the lead or partner with other executives to work cross-
functionally to integrate CSR objectives into how business gets conducted. HR practitioners can
act as translators of the organization‟s CSR commitment vertically and horizontally across
departments. Most will find upon reading this report that they have many good practices
underway. Many will find they have a new structure for their thinking they can apply practically
in the workplace. Some will believe the current economic downturn will put these ideas on the
backburner until the economy rebounds, while others think that organizations which abandon
their CSR integration in the downturn will lose ground and breed cynicism in brighter
times. Regardless of the point of view, all agree that effective HR leadership on CSR integration
requires Board,CEO and executive commitment to be successful. Indeed, the roadmap is
predicated on the assumption of this top level commitment. However, more and more
organizations are committing to sustainability and to embedding CSR into “all that we do”, so it
is hoped the 11 steps provide some guidance as to how to go about doing this.
The firm of the future is expected to have undergone significant transformation such thatCSR no
longer becomes managed as a separate deliverable, but is part of the experience of being an
employee in an organization that lives its values. For human resource professionals embarking
on CSR or deepening their CSR experience, this roadmap can help them understand their role in
sustainability and CSR and how they can foster an environment that embeds a CSR ethic in “the
way we do business around here”.
The organizations abide their social responsibilities not only with government pressure it is also
because of their social values and goodwill which is created by more and more involvement in
these activities that makes a positive perception of the business organization in the minds of
people which influences their preference.

50. 44
Chapter 7
Bibliography

51. 45
Bibliography
www.google.co.in
en.wikipedia.org
www.itcportal.com
https://en.wikipedia.org/wiki/ITC_(company)