Analysis of Social Responsibilities and Ethical Decision-Making in ITC Ltd



Analysis of Social Responsibilities and Ethical Decision-Making in ITC Ltd.

ITC Ltd: Towards a Triple Bottom Line Performance

Analysis ITC Ltd.代写 Analysis of Social Responsibilities and Ethical Decision-Making in ITC Ltd. ITC Ltd: Towards a Triple Bottom Line Performance.


ITC Ltd is one of the largest UK based company in India. It mainly deals with tobacco products. The company products amount to more than 75 percent of its turnover. Since the year 2010, it started diversifying into other sectors to maintain its revenue base as well as balance its social and environmental responsibilities. In its strategic plan, the company envisions a situation where it has a responsibility towards its shareholders as well as others affected by its business including employees, farmers, and suppliers.

Current Acceptable standards in CSR Analysis ITC Ltd.代写

In a bid to comply with the current acceptable standards. ITC Ltd. has envisioned its triple bottom line strategic plan to reflect financial sustainability. Economic growth and social capital for the nation. The triple bottom line approach focused on the three strategic efforts for acceptable standards.

The effort to create environmental value was envisioned by having different initiatives. Analysis ITC Ltd.代写

In its bid to reduce the carbon emissions it has lived to store twice the carbon emitted by having mechanisms for carbon storage for other uses. The company has invested in sustainable water usage by collecting three times as much of water consumed. It has also invested in water recycling initiative which has provided water to the community through watersheds.Analysis ITC Ltd.代写**格式

Beside it using other forms of energy, the company has continuously generated more than 31 percent of its energy needs from the renewable sources such as waste from the industry. Besides all the above, two of its hotels, ITC Royal Gardens and ITC Green Center were recognized for their contribution in creating a green building for a greener environment.

On the other hand, ITC Ltd effort also focused on creating social values. Analysis ITC Ltd.代写

The company employs more than 5 million people from Indian, both direct and indirect employment. Additionally, one of its initiative, e-Choupal, has benefited more than 4 million farmers in India. In the effort to build a greener environment, ITC Ltd has maintained more than 107, 000 hectares land green and watershed that supply water to more than 54, 000 hectares of dry land. Moreover, the company has participated in the social support participating in education, women empowerment, and integrated animal husbandry.

Analysis ITC Ltd.代写
Analysis ITC Ltd.代写

Gaps in the CSR That Has Potential Risk to Stakeholders Analysis ITC Ltd.代写

Regardless of the tobacco market potential growth and ITC Ltd. leading in the market. It remained reluctant and in a dilemma on the social cost tobacco business is inflicting to the society and its role. The management feels responsible for mitigating these social risks by diversifying its brand and market to other industries while reducing its focus on tobacco production, manufacturing, and marketing.Analysis ITC Ltd.代写**格式

Tobacco use is associated with numerous human health risks, and it has been rated to contribute to more than 8 percent of deaths in the world. Therefore, the company management feels responsible for averting this trend considering a few other options and this caused an ethical dilemma and a gap in its CSR.

Furthermore, it has remained a gap because of a few other considerations. Analysis ITC Ltd.代写

One, the company mind about the impact of divestitures in tobacco will have on its shareholders’ profits. Two, what will happen to millions of farmers dependent on tobacco farming? Three, there are those who indirectly depend on the company like the community supports and CSR activities and most importantly the distributors and suppliers. The gap in CSR represents a chain of reaction of impacts.Analysis ITC Ltd.代写**格式

The company came up with the strategy to diversify to other industries like farming, paper, confectionery, information technology and more to avoid the scenarios of people having to lose profits, jobs, and their only source of income. The move not only aimed at creating economic and financial sustainability to the shareholders but also the other stakeholders who directly or indirectly depend on the company.

The Impact of the Divestiture in Tobacco on the Stakeholders Analysis ITC Ltd.代写

As a lot have been explained above on the social cost of tobacco, if the company decides to do away with tobacco business. Then there are positive and negative impacts to the stakeholders. One, the company may end up downsizing thus most people will lose their employment. Second, the farmers will also be affected as the tobacco market will lower.Analysis ITC Ltd.代写**格式

Third, other people like distributors and suppliers as well as those indirectly involved in the value chain will be negatively affected by losing business. However, the company is intending to withdraw gradually hence giving the stakeholders time to adjust and get other investment alternatives. Although all the stakeholders will feel the effect of the company’s withdrawal. The impact will not be that high as compared when it is abrupt.

Critique of the Strategy Plan Analysis ITC Ltd.代写

Although the tobacco market was growing exponentially, there were stringent measures introduced by the government and other market forces. The industry had started to face sanctions from the government like the ban on advertising tobacco-related products, ban on sale to the minors, the ban of public smoking and another restrictive measure. The taxation for the tobacco products was also increased. These measures reduced the amount of output even though there was no change in consumption rates.

Additionally, high taxation led to the entry of contraband and counterfeit tobacco products to the market. Analysis ITC Ltd.代写

These new changes affected the tobacco industry, and as a result. Companies were spending more resources on branding to remain relevant in the market. The company management viewed this in another angle of tobacco being a burden to the society considering to cost-benefit analysis. Tobacco was associated with diseases like cancers and others that the company felt responsible. Something had to be done! Therefore, the triple bottom line approach was born as a strategy to diversify as well as solve the identified social cost.

Comparison of the ITC Ltd. with CSR in the Industry Analysis ITC Ltd.代写

ITC Ltd is a unique company that has recognized the effect of its business to society. Its business model not only focuses on its profitability but also environmental and social impacts. It has many initiatives focusing on giving back to the community such as watersheds, women empowerment, education support and more. Such initiatives are the standards for the companies in all the industries. What makes the ITC Ltd. unique and stand out in the industry is the realization of how it can reduce tobacco use and remain financially, economically and socially viable. Therefore, ITC Ltd. is consistent with the CSR as expected in its industry as well as in other industries.

Ethical Decision-Making

Analysis of Decision-Making in ITC Ltd. Analysis ITC Ltd.代写

The management is aware of the company’s social responsibilities. And therefore the decisions made based on the balancing between the three tenets, that is, financial, economic, and social. Using the triple bottom line approach the company tried balancing its stakeholders and more so those affected it business activities. In this respect, using the three dimensions, the company is making an ethical decision which eventually benefits all the stakeholders.Analysis ITC Ltd.代写**格式

For instance, its decision to diversify to other industries and gradually divestiture from tobacco business was ethical in that. The company aimed at reducing the social evil of tobacco use which has affected the health of many people while maintaining its financial, economic and social responsibilities.

Analysis ITC Ltd.代写
Analysis ITC Ltd.代写

Connection Between Ethics and Decisions Made in ITC Ltd. Analysis ITC Ltd.代写

For decades ITC Ltd. had been playing its role in the CSR in India. The company responsibilities guided the decision to diversify to the stakeholders. Therefore, in making its decision, the management was guided by the broader impact to the stakeholders to which the own company protection from unemployment and loss of investment. On the other hand, it was also guided by the impact of its tobacco business to society prompting it to consider alternative investments which do not harm the people.

The gap in Ethical Decision making Analysis ITC Ltd.代写

After the realization of the effect tobacco has on the public. The company had an ethical decision to stop farming, manufacturing, and marketing tobacco product. Although it was an ethical decision to make, it could have caused more harm to the stakeholders financially. Therefore, it was also ethical to make it gradual.


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