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Csr itc

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Csr itc

  1. 1. Corporate Social Responsibility By:- Shivani Patel (53) Himali Amin (54) Namita Rajan (56) Saurabh Singh (57) Palak Kalia (58) Aswini Paleri (59) Ankit Modi (60) Ashish Thakor (61) ‘The only company in the world carbon positive, water positive & solid waste recycling positive’
  2. 2. Introduction • Incorporated on August 24th 1910 with the name of Imperial Tobacco Company of India Limited. • 1970- Indian Tobacco Company, 1974- I.T.C. Ltd. and 2001- ITC Ltd. • Headquartered at J.L. Nehru road, Kolkata • VISION – to sustain its position as one of India’s most admired and valuable companies
  3. 3. Triple Bottom Line Economic • A turnover of over US $ 7 billion and a market capitalisation of nearly US $ 35 billion. • Direct employment to more than 29,000 people. • Total shareholder’s funds grew at a compound rate of 26% per annum over the last 15 years. Environmental • Carbon Positive seven years in a row. • Water Positive for ten years • Solid Waste Water Recycling five years. • Environment, Health and Safety Management Systems in ITC conform to international standards. Social • Livelihoods for over 5 million people • e-choupal benefitting over 4 million farmers. • Social and Farm Forestry • Watershed Development • Sustainable Community Development
  4. 4. CSR Spend Rs. in Crores 2010-11 2011-12 2012-13 Corporate Social Responsibility spends 45 62 82 Average Profit After Taxes for three immediately preceding Financial Years(FY) 3,482 4,104 5,070 CSR spends as a % of Average Profit After Taxes for three immediately preceding FYs 1.29% 1.51% 1.62%
  5. 5. CSR Initiatives Undertaken
  6. 6. Mission: Sunehra Kal Andhra Pradesh Orissa Maharashtra Kerala Madhya Pradesh Karnataka Bihar Tamil Nadu Rajasthan Uttar Pradesh West Bengal
  7. 7. Integrated Watershed Development Issue: Struggle with erratic rainfall patterns Example: Ranjangaon area near Pune district in Maharashtra, it was under severe draught during kharip season of 2009. 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.
  8. 8. Integrated Watershed Development Helped conserve soil and moisture for over 1,17,000 households covering 28 districts across seven states (Andhra Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Orissa and Tamil Nadu). Partnership either with NABARD(National Bank for Agriculture and Rural Development) or various state governments.
  9. 9. Livestock Development • 1.21 billion population(2011 censes) • 87.2 million living in rural area • 70% of India's rural population owns cattle • Livestock plays an important role in the economy of rural India • Milk yields are abysmally low due to poor quality stock • ITC Choupal livestock Development
  10. 10. ITC Choupal Livestock Development • Programe aims at assisting cattle-owners to upgrade their low-yielding indigenous stock through cross-breeding by artificial insemination.
  11. 11. • 299 Cattle Development Centers managed by trained local community members • ITC trains and equips technicians to provide an integrated package consisting of artificial insemination, cattle health and nutrition, pregnancy and post-natal services.
  12. 12. At doorstep • Comprehensive animal husbandry services are provided right at the doorstep through Cattle Development Centers managed by trained local community members • Backward linkages are also being strengthened for dairy inputs, particularly cattle feed
  13. 13. Result Livestock Development Now Animal husbandry services (Artificial Insemination doses) 12,67,371 Beneficiary farmers 3,62,106 Cattle Development Centres 299
  14. 14. Next step in this direction • Project Gomukh in Munger - an integrated dairy management program that aims at providing customized services and solutions at every stage of the dairy value chain
  15. 15. Social & Farm Forestry
  16. 16. AIM:  An alternative means of livelihood for the rural community.  The project will promote the Eucalyptus & Casuarina Plantation under the Social Forestry Programme in West, East Godavari and Visakhapatnam districts for the development of small and marginal tribal and weaker section farmers through sangha concept.
  17. 17. Objective  To create awareness among the Tribal & Weaker section communities towards promotion, benefits, of Eucalyptus & Casuarina Plantation.  Carbon Sequestration through Reforestation of severely degraded land mass.  To provided alternative employment opportunities, good market linkages with the paper industry for the pulp wood growers for marketing their produce.  To free the farmers from the bondages of the middle men and to sell their produce at a reasonable price directly to the paper mills.
  18. 18. A growing Need… • Wood is the major raw material for pulp and paper industry. • ITC, launched a major plantation programme in 1982. • ITC, initiated a Biotechnology based Tree Improvement Programme (TIP) by promoting clonal plantation. • Tribal Farmers undertake the plantation and its maintenance in their own lands. • Sangha’s (Mandal Samakhyas - MS) would oversee the project activity implementation in their region, which includes awareness / training / resource provision and distribution. • ITC would provide sapling / financial resources.
  19. 19. Wonders of Clonal Technology Clonal technology primarily envisages taking advantages of the natural variation in tree species for immediate gains in productivity and quality from plantations. The field tested and proven superior genotypes are multiplied through vegetative propagation in greenhouses under controlled environmental conditions.
  20. 20.  ITC Bhadrachalam clones comprise natural as well as control pollinated hybrids of Eucalyptus and Subabul (Leucaena).  Advantages:  High rate of survival of clonal plantation.  High rate of productivity.  Reduced land requirements.  Cost & work effciency.  Additional income for farmers.
  21. 21. Project Working Area:  10 Mandals in East Godavari District  5 Mandals in West Godavari District  10 Mandals in Visakhapatnam District
  22. 22. Greening Wasteland • ITC’s afforestation mission goes beyond regenerating wastelands and forest. • Under this initiative superior planting stock is supplied to farmers. Here a free technical extension service is provided. • ITC offers attractive buy back arrangements for mature plantations.
  23. 23. ITC: Carbon Positive  Apart from other advantages, large scale greening effort plantation have the potential to sequester millions of tonnes of carbon dioxide, and create a potential Green House Gas.(GCH)  ITC has been placed in unique position of being eligible to create ‘ Certifiable CO2 Credits’.
  24. 24. Women Empowerment Initiative by ITC limited
  25. 25. Venture funds provided by ITC have already spawned hundreds of women entrepreneurs. Their earnings, ranging from Rs 70 to Rs 150 per day, not only supplement household incomes but also significantly enhance their self-esteem. Pickle-making, fish-processing, vermicomposting, spice processing and agarbatti- rolling in rural areas and chikankari, garment-sewing, driving and computer-aided secretarial training in semi-urban areas are some of the examples
  26. 26. microfinance microenterprise Extensive mobilisation of women Formation of micro- credit groups Capacity building to handle cash transactions, bank accounts, government office, etc Promotion of savings to create corpus Internal lending to meet consumption needs External loaning for productive purposes Chikankari Organisation of women into production groups Introduction of revolving fund Skills training & up- gradation to enhance employability External consultancy for modern designs Capability building for value addition in work Marketing channel for finished goods Chikankari in Hardoi :A Case study Promoting Rural Women Entrepreneurs
  27. 27. Structure of Micro enterprise Enterprise Coordinator Designer Sanchalika Production Group (50 women) SHG SHG SHG Member Member MemberMember Info flow NGOITC
  28. 28. Chikankari Value Chain Production group orders orders orders orders Finished goods NGO Partner Customers Finished goods ITC
  29. 29. Primary Education • 35 % illiterate • 15 % Reaching high school • 7% Completing graduation • Lack of infrastructure , funds and quality talent.
  30. 30. Primary Education 1. Improving infrastructure in Government schools. 2. Providing supplementary education to support children with school learning and exam preparation. 3. Building community and parental involvement with school education.
  31. 31. Primary Education • ITC-sponsored NGOs also conduct teacher training programmes to raise the standard of teaching in government-run primary schools. Primary Education Now Government Schools assisted through infrastructural support 973 Students being covered 3,19,812 Supplementary Learning Centers (cumulative) 3,011
  32. 32. Primary Education • ITC launched its Classmate brand in 2003 with the notebooks category. • Classmate is the lead provider of all student stationery needs.
  33. 33. Primary Education • To improve educational outreach • 482 libraries and resource centers is supported • 421 schools are covered under Roaming Laptops programme
  34. 34. ITC’s ‘e-choupal’
  35. 35. 1990 • Establishment of International Business Division • Agri-trading Company 1996 • Opening of Indian market • Entry of international competition 1998 • Option of sale, merger or closure of IBD • Chairman: ‘Use of Information technology’ 2000 • Blending of shareholder value creation and social development • Launch of ‘e-choupal’ Origins of ‘e-choupal’
  36. 36. What is ‘e-choupal’ To bring efficiency to ITC’s procurement process Increased empowerment of rural farmers Choupal : ‘A village meeting Place’ Vendors and customers come together to do business transactions New Business Model: e-choupal
  37. 37. Why ‘e-choupal’ Over dependence on intermediaries Lower margins Low Productivity Low risk taking ability Weak market orientation Rural India is a difficult business Location Under-trained workforce
  38. 38. Before ‘e-choupal’: Mandi System
  39. 39. ‘Mandi System’: Operation Process Inbound Logistics Display and Inspection Auction Bagging and weighing Payment Outbound Logistics Limitations
  40. 40. Players of e-choupal • Critical Element • Act as a familiar and approachable human interface for the farmers and villagers • Acts as a link • Communicates daily prices • Provides logistical services • Provide info on trading transactions • Critical Element • Act as a familiar and approachable human interface for the farmers and villagers Sanchalak • Acts as a link • Communicates daily prices • Provides logistical services • Provide info on trading transactions UpSanchalak Samyojak
  41. 41. Network of e-Choupals, information centers equipped with a computer connected to the Internet, located in rural farming villages Farmers use the services of the sanchalak (the centre operator) to find the price their produce can fetch at different places, via the computer “Empowered” to make an informed decision on when and at which procurement centre to sell their produce for maximum profit E-Choupal in Detail
  42. 42. To improve yields with a demonstration plot of land Best practices have been put into practice along with high quality fertilisers and seeds Comparisons made with yields from control plots Choupal Pradarshan Kheth (Choupal Demonstration Field) programme
  43. 43. E-choupal Stages
  44. 44. Pricing Previous day’s mandi closing price- Fair Average Quality (FAQ) price Mandi prices are communicated to the sanchalak through the e- Choupal portal Inspection & Grading Sanchalak inspects the produce and based on his assessment of the quality makes appropriate deductions Sanchalak performs the quality tests in the farmer’s presence and must justify any deductions If the farmer chooses to sell , the sanchalak gives him a note Weighing & Payment Farmer takes the note from the sanchalak and proceeds with his crop to the nearest ITC procurement hub Chemist visually inspects and verifies the assessment of the sanchalak Hub Logistics Farmer then collects his payment, also reimbursed for transporting his crop E-choupal Process
  45. 45. Right price for their crops Recognition: Farmers are not simply agricultural producers, but integral partners Income increase: About 2.5% over the mandi system Benefits of E-choupal
  46. 46. Weather Agricultural Best Practices Customized Quality Solutions Intelligent product Development Other benefits of E-choupal
  47. 47. The ITC Green Centre Project The ITC Green Centre houses the headquarters of ITC’s Hotels Business and was declared the worlds largest Platinum rated Green Building when it was certified in 2004. The facility is built with 4 floors with one basement and one mezzanine floor. The total built up area is 15799, out of which 9294 is conditioned area .It was awarded the LEED Platinum rating under LEED 2.1 NC in 2004. The building is operational for 5 days a week and for about 10 hours per day. Not only they have designated smoking zones in convenient locations with their own exhaust fans, but the copy-printer room in the building has its own separate exhaust as well. Moreover, 90% of all regularly occupied areas have access to open-able windows.
  48. 48. Key Features Sustainable Site Alternative Transportation Heat Island Effect Storm Water Management Water Efficiency Water Efficient Landscaping Innovative Waste Water Technologies The building adopts a rectangular L North East Energy & Atmosphere Envelope Hot Water Ozone Depletion Materials and Resource Storage and Collection of Recyclables Regional Materials Indoor Environmental Quality CO2 Monitoring Environment Tobacco Smoke Control
  49. 49. Results • “We had a cost over-run of 12 per cent,” adding that similar projects undertaken after this one saw reduced costs of 4-7 per cent. • "Actually, now the cost of such a building would be lower than that of a normal office building,” – Khatri
  50. 50. Renewable Energy ITC commitment to the environment is manifest in its constant endeavour to enlarge its positive carbon footprint. This is achieved not only through enhanced energy conservation, but also through use of renewable energy sources and expanding carbon sequestration through its large scale Social and Farm Forestry Programmes ITC is also constantly expanding its renewable energy portfolio. More than 38% of its energy consumption is now met from renewable sources, and this is expected to touch 50% in the next 4-5 years. Improved utilisation of carbon neutral fuels such as biofuels in the Paperboards and Specialty Papers Business and the commissioning of 13.8 MW wind power projects in Maharashtra and Tamil Nadu contributed to increased utilisation of renewable energy.
  51. 51. Example • Solar Photovoltaic Technology