Overview of ITC
ITC was incorporated on 24th August 1910 under the name Imperial Tobacco Company of India Limited. Progressively, as the Company's ownership Indianised, the name of the Company was changed to I.T.C. Limited in 1974. As ITC has a wide range of businesses such as Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001 and it now stands rechristened 'ITC Limited'.
ITC’s diversified profile
Triple bottom line performance
The triple bottom line (people, planet and profits) captures the values and criteria for measuring organizational success, which consists of economic, environmental and social aspects. Economic performance
ITC’s strategy involves creation of multiple drivers of growth which encompasses FMCG, Paperboards and Packaging, Agri Business, Hotels and Information Technology. The gross income of the company stands at 31423 crores, the turnover is around US$ 6 billion and the non-cigarettes net turnover is 50%. The shareholder returns over a period of time are as follows:
9th year in a row, ITC has sustained its ‘water positive’ status. It creates freshwater which is twice its consumption. 6 years consecutively, ITC is ‘carbon positive,’ being able to sequester twice its emissions. It has also been ‘solid waste recycling positive’ for a period of 4 years in succession. Based on this, ITC is the only enterprise in the world to have sustained these three global environmental distinctions. Nearly 31% of the energy consumed by the company is from renewable sources. As of 2011, all luxury hotels of ITC have been accorded the LEED platinum rating. This achievement makes ITC Hotels the ‘greenest luxury hotel chain’ in the world and places the company at the forefront in terms of the environmental stewardship. Social performance
ITC uses an inclusive strategy while defining the company’s innovative business models. This has created sustainable livelihood opportunities for over 5 million people. ITC’s e-Choupal initiative has benefited over 4 million farmers in over 40,000 villages. This has been a pioneering transformation in rural areas. The Social and Farm Forestry Initiative of ITC has greened nearly 1,15,000 hectares creating great employment opportunities among marginal farmers. ITC’s watershed development initiative helps accumulate precious water to over 54,000 hectares of drylands. ITC’s sustainable community development initiatives include women’s empowerment, education and animal husbandry programmes. The company also strives to promote human rights, in the form of freedom to associate, prohibition of child labour and prevention of discrimination at workplace.
Company’s Governance Philosophy
ITC defines corporate governance as a systemic process by which companies are directed and controlled to enhance their wealth generating capacity. ITC believes that the governance process should ensure that societal resources are utilized to meet stakeholder’s aspirations and societal expectations. The corporate governance structure and processes are based on 2 core principles: 1) Management must have the executive freedom to drive the enterprise forward without undue restraints. 2) Freedom of management should be exercised within a framework of effective accountability. The definition and the principles gives rise to the following cornerstones of the governance philosophies: 1) Trusteeship – Large corporations have an economic and social purpose and therby the board of directors have the responsibility to fulfil the obligations of their stakeholders and shareholders. 2) Transparency – ITC believes revelation of company policies enhances accountability. 3) Empowerment – It unleashes creativity and innovation which drives the organization. 4)...
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