ITC Limited
Sustainability Report 2013
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Social Performance

Product Responsibility

Customer Safety: Our Primary Concern

Product Information and Labelling

As an organisation that upholds and makes extraordinary efforts to ensure transparency and good governance, ITC’s business operations are committed to complying with every relevant law of the nation. The Company has established stringent quality standards and systems to respond to queries and concerns and have made these known to all stakeholders.

Our Consumer Goods Businesses, including branded packaged foods, personal care products, lifestyle retailing, safety matches and others, comply fully with the Legal Metrology Act. For products marketed by our businesses, we have made transparent and honest disclosures to enable the customer to exercise his freedom to consume them in a responsible manner.

ITC’s Foods Business, Personal Care Products Business, Lifestyle Retailing and others are fully compliant with the Legal Metrology Act and all Regulations made and notified thereunder.

ITC’s Cigarettes Business is fully compliant with all applicable laws and regulations concerning Product Labeling. All cigarette packs carry the statutory health warnings as mandated by law.

Our Branded Packaged Foods Business is fully compliant with the Food Safety and Standards Act

Apart from the Legal Metrology Act, the Personal Care Products Business also complies fully with the rules of the Drugs & Cosmetics Act.

In the Agri Business Division, all products are primarily sold on a B2B basis and are labelled to meet customer requirements on quality, shipping marks or importing country labelling requirements. If required, ITC also provides phytosanitary certificates, surveyor quality and quantity reports, Chamber of Commerce certificates, etc. The Company complies with all statutory requirements for exports.

In the Leaf Tobacco Business, all products are labelled in accordance with customer specifications. Every package has a unique identity (label with a bar code) right from the time of purchase of raw material (from farmers) till it is packed and shipped out.

The Leaf Tobacco Business and the Foods Business ensure ‘Product Traceability’ in the supply chain from farm to the customer.

The Foods Business is also fully compliant with the Food Safety and Standards Act, Legal Metrology Act and all Regulations made and notified thereunder. The Business has established systems to ensure that product development, trials, introduction, modification and extension take place within the statutory ambit. These systems are continuously reviewed.

Our Paperboards & Specialty Papers Business and Packaging and Printing Business comply with all product labelling requirements and follow internal quality procedures as per agreed customer specifications.

The Education & Stationery Products Business complies with all statutes on labelling and product information. For the products marketed by our business, we have disclosed all necessary information.

Marketing Communications

ITC has established standard operating procedures to ensure that all marketing and advertising communication is responsible, done in accordance with the voluntary and legal codes of conduct adopted by each Business and complies with all applicable statutes. In addition, several of our businesses including consumer goods businesses such as Branded Packaged Foods, Personal Care Products, Lifestyle Retailing, Education and Stationery Products, Cigarettes, Agarbattis and Safety Matches have established a dedicated consumer response cell in order to respond to queries on products.

All marketing communication for our businesses is subject to stringent internal checks by the legal department and the internal audit department. All product related external marketing communication is vetted by the legal department while all non-product related advertisements are approved by the Divisional Management Committees of the relevant businesses.

The Consumer Goods businesses adhere to voluntary and legal codes of conduct and voluntarily follow the ASCI (Advertising Standards Council of India) Code for all marketing communications.

We ensure that all advertisements and promotions are fair and transparent, not misleading in terms of claims and representations and not offensive to the generally accepted standards of public decency. Each product/campaign is vetted for compliance. All claims made are substantiated by ITC’s internal Quality Assurance team.

Marketing communication for the leaf tobacco business is limited to interfaces with the customers and not the final consumers and is largely in the form of crop and market reports given that unmanufactured leaf tobacco is an intermediate product. In the Leaf Tobacco Business, the customers are large domestic, multi-national manufacturers, small to medium sized regional manufacturers and tobacco merchants. Unmanufactured leaf tobacco is sourced, processed and delivered as per the specifications of the customers. The Business has in place systems to ensure adherence to customer specifications. These systems are reviewed periodically for continuous improvement.

The Business addresses customer concerns through a robust redressal mechanism and all queries/concerns are supported by a Corrective and Preventive action (CAPA) report, which are also shared with the customer.

The Agri Business organises regular engagements with customers across the organisational hierarchy. It also has in place systems to address specific customer complaints/grievances.

Marketing communication for the Hotels Business is self regulated and also governed by all applicable laws, regulations and norms, including ASCI rules and guidelines. The Hotels Business also has a comprehensive policy for customer complaints and redressal that includes prompt response to the guest, detailed investigation and resolution of guest complaints. The policy covers customer feedback received from all sources, including Electronic Guest Comment cards, letters and social media.

Compliance Concerning Provision And Use Of Products And Services

All our businesses/divisions have well established systems, procedures and review mechanisms to identify and comply with the laws and regulations concerning our products and services. We continued to comply with all applicable statutes during 2012-13.

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