ITC Limited
Sustainability Report 2013
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Social Performance

Human Rights Significant Investments

All large contracts in ITC for the construction of hotels, factories, and significant upgrades included environment, health, safety and human rights clauses covering decent place of work and beyond compliance labour practices

During 2012-13, nearly Rs. 1,361 Crores of our total capex cash flow of Rs. 2,141 crores was incurred on machinery and technology, sourced from reputed global suppliers/vendors who follow internationally accepted norms and standards on Human Rights. Approximately Rs. 654 Crores were invested on new factories, hotels and modernisations.

All large contracts in ITC, for the construction of hotels, factories, and significant upgrades, included environment, health, safety and human rights clauses covering decent place of work and beyond compliance labour practices.

All these were managed and supervised by ITC managers, who also ensured proper implementation of Human Rights compliance.

Systems have been established to ensure compliance of our Policies and Standards, through rigorous audits by Corporate Internal Audit and Corporate EHS.

Human Rights: Supply Chain

As a large and multi-product enterprise whose products are benchmarked nationally and internationally, we recognise our responsibility to proactively encourage high levels of ‘Human Rights’ standards in our supply chain.

Our approach to managing human rights in the following distinct categories is described below:

Our major businesses are vertically integrated across several Divisions that follow ITC policies.

We procure inputs for the Company’s agri-based businesses entirely from state controlled trading platforms and the open market.

We position our managers at all significant ‘outsourced’ manufacturing facilities (Cigarettes, Personal Care, Branded Apparels and Packaged Foods) to ensure high standards of product quality and adherence to ITC’s guidelines on EHS and labour practices. Government officials also routinely inspect these Units to ensure compliance with relevant labour and factory regulations, which, inter alia, provide for the necessary EHS and labour practices standards.

The execution of ITC’s human rights policies is obligatory for all service providers operating within our establishments.

During 2012-13, the total number of service providers was 6,981 of which 1,426 operated within the Company’s premises and 5,555 worked off-site. 87% of contracts on-site and 87% of contracts off-site, included important clauses on Human Rights, environment, health and safety. No contracts were cancelled during the year as a result of non-compliance with ITC’s human rights clauses.

Prevention of Discrimination at the Work Place

During 2012-13, no incident of discrimination in any of the ITC units was reported either to the concerned units or statutory authorities.

Freedom of Association

During 2012-13, no incidents of violation of freedom of association were reported either to the concerned units or statutory authorities. Within ITC’s operations, there are no areas where the right to exercise freedom of association and collective bargaining is at risk.

Prohibiting Child Labour and Preventing Forced Labour at Work Place

During 2012-13, no incidents of child or forced labour were reported either to the concerned units or statutory authorities.

As a large and multi-product enterprise whose products are benchmarked nationally and internationally, we recognise our responsibility to proactively encourage high levels of ‘Human Rights’ standards in our supply chain

Diversity and Equal Opportunity

We believe that every individual brings a different and unique set of perspectives and capabilities to the team. A discrimination-free workplace for employees provides the environment in which diverse talents can bloom and be nurtured.

Governance Bodies and Diversity

Our compensation philosophy does not differentiate on gender, caste or age. It is linked to responsibility levels and is based on performance

Our approach to human resource is premised on the fundamental belief of fostering meritocracy in the organisation, which promotes diversity and offers equality of opportunity to all employees. We do not engage in or support direct or indirect discrimination in recruitment, compensation, access to training, promotion, termination or retirement based on caste, religion, disability, gender, age, race, colour, ancestry, marital status or affiliation with a political, religious, union organisation or minority group.

The Board of Directors at the apex, as trustees of shareholders and responsible for the strategic supervision of the Company, consists of 4 Executive Directors (including the Chairman) and 14 Non-Executive Directors as on March 31, 2013. The Non-Executive Directors come from different fields, thereby ensuring multi-dimensional perspectives in setting the strategic agenda.

The strategic management of the Company rests with the Corporate Management Committee comprising full time Executive Directors and 6 members drawn from senior management representing diverse functions.

The executive management of each business is vested with the Divisional Management Committee (DMC), headed by the Chief Executive. The DMC draws resources from different functions. Each DMC is responsible for and focused on the management of its assigned business.

Equal Remuneration

Our compensation philosophy does not differentiate on gender, caste or age. It is linked to responsibility levels and is based on performance. We also ensure compliance with the Equal Remuneration Act, which mandates every employer to pay equal remuneration to men and women employees for the same work or work of similar nature.

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