ITC: A Global Model in Sustainability

ITC: A Global Model in Sustainability
Case Code: BSTR609
Case Length: 17 Pages
Period: 1910-2019
Pub Date: 2020
Teaching Note: Available
Price: Rs.500
Organization : ITC Limited
Industry : Conglomerate
Countries : India
Themes: Sustainability, Sustainable Development
ITC: A Global Model in Sustainability
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case discusses how ITC Limited (ITC), an Indian multinational conglomerate, built an exemplary enterprise which led to the formation of innovative business models that synergized the creation of economic wealth with the formation of ecological and social capital as a unified strategy. With a presence in diverse fields such as Paperboards and Packaging, Apparel, Foods, Hotels, Information Technology and Tobacco Products, ITC's focus was on encouraging innovative strategies that enabled it to make a growing contribution along the triple bottom lines of building economic, environmental, and social capital. Over the years, it undertook numerous social and ecological investment initiatives. One of its ground-breaking moves was the E-Choupal, the biggest internet-based intervention in rural India. The E-Choupal had grown into an ecosystem of services that addressed diverse rural needs, from agri-extension and other farm-related offerings to retail avenues to insurance and healthcare. Various other programs were the afforestation program, watershed development program, sustainable agriculture program, livestock development program, women empowerment program, primary education program, skilling and vocational training program, health and sanitation program, and solid waste management program. ITC's large scale social investments program empowered rural communities and had generated 6 million sustainable livelihoods in India as of 2019. As a result, ITC had been recognized and rewarded for its sustainability initiatives. The company was ranked No.1 amongst global peers and No.3 overall on ESG performance in the Food Products industry by Sustainalytics – a global ESG rating company – in recognition of its superior Environmental, Social, and Governance models. ITC had also been rated AA by MSCI-ESG, the highest rating amongst global tobacco companies. As part of its future plans and its social impact schemes, ITC was aiming to create over 10 million sustainable livelihoods by the year 2030. Subsequently, ITC needed to scale up its social investment programs to empower rural communities across India. However, India had the largest share of the world's poor. Its resources, relative to its population, were inadequate. Providing food, water, energy, education, healthcare, and above all, livelihood security to the projected 1.5 billion people would be a daunting challenge for India, including for companies like ITC, which were working toward creating sustainable livelihood for all and enriching the environment in India – a paradigm that ITC called responsible competitiveness. It remained to be seen whether ITC would be able to achieve its vision of creating 10 million sustainable livelihoods by the year 2030. Further, what strategies would ITC implement to achieve this goal?

Issues

The case is structured to achieve the following teaching objectives:

  • Analyze how ITC pursued innovation in business models to synergize the building of economic, ecological, and social capital as a unified business strategy
  • Examine the sustainability initiatives of ITC
  • Examine how ITC used sustainability to promote responsible competitiveness in businesses
  • Reinforce the need for courageous leadership and commitment to a long term vision in building a better society

Contents

Keywords

ITC Limited; India; Sustainability; ESG performance; E-Choupal; Tobacco Manufacturers; Social Investment Initiatives; Sustainable Livelihoods; Afforestation Program; Watershed Development Program; Sustainable Agriculture Program; Women Empowerment Program; Primary Education Program; Skilling And Vocational; Responsible Competitiveness

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