A commitment beyond the market

  • 22/03/2008

  • Business Today (New Delhi)

At ITC, CSR is built into its businesses. ITC is probably unique in that it does not implement its corporate social responsibility (CSR) through a separate foundation or trust. Instead, it has built these initiatives into its business model, by following what it calls the Triple Bottom Line Approach. Its Agri Business and Paper & Paperboards divisions, in particular, have undertaken massive afforestation, watershed management, livestock development, women's empowerment and primary education programmes across Maharashtra, Tamil Nadu, Andhra Pradesh, Karnataka and West Bengal. At last count, about four million farmers and hundreds of thousands of poor tribals, whom ITC designates as partners, have benefited from these initiatives. "I'm very proud to say that these initiatives have turned thousands of acres of barren, private lands into productive assets," says Deveshwar. ITC, too, has benefitted. It gains a steady and dedicated source of farm produce that keeps its supply chain humming. But there's a twist to this tale. "The beneficiaries are free to sell their produce to third parties. We do not enter into any binding contracts with them," says Pradeep Dhobale, Divisional CEO of its Paper & Paperboards Division, adding that the goodwill generated by ITC's initiatives has ensured that "not one single farmer has done so". Then, it also implements initiatives that have no direct connection with its businesses. In keeping with its focus on uplifting rural lives, it has started a programme, called Sunehra Kal Munger, to create women entrepreneurs. The belief: empowering women economically transforms them into powerful agents of social change. The company has created 7,300 women entrepreneurs and plans to take this figure to at least 10,000 by 2010 through 913 micro credit groups. It has also financed the establishment of 1,250 Supplementary Learning Centres and 139 "assisted schools" to bring education within the grasp of poor students. "For ITC, these are expressions of a commitment beyond the market," says Deveshwar.