There is no single accepted definition of corporate social responsibility, so comparing two organizations or several organizations can bring up a lot of confusion. The two major areas to focus on are benefits to society and benefit to business. When it comes to benefits to society ITC excels, they have a lot of initiatives to benefit society, such as farming (e-choupal), watershed developments, and education initiatives. Not only that, but ITC generates lively hood for over 5 million people. Giving these programs I would say ITC in not consistent with others in the industry, but they excel beyond all others in their corporate social responsibility.
ITC LTD decision making process it not a simple policy that was developed overnight, it has evolved into a plan called corporate governance. The challenge of governance for ITC therefore lies in fashioning a model that addresses the uniqueness of each of its businesses and yet strengthens the unity of purpose of the Company as a whole. The corporate governance is based on two principles “Management must have the executive freedom to drive the enterprise forward without undue restraints” and “This freedom of management should be exercised within a framework of effective accountability”. Checks and balances are utilized in executive management to ensure the decision making powers are not abused, but are used with care and responsibility to meet stakeholder’s expectations.
Social responsibility and business ethics are concepts that usually go together for a business environment. Business ethics represents the company’s moral principles to ensure employees are acting in an ethical manner while completing business functions. Social responsibility is ideals that society and governments hold that a business should not conduct themselves in a manner counterproductive to societal norms. The two ideals come together when a company writes a code of ethics to prove the company only acts in its best interest so long as it does not damage the company social responsibility. Given these ideals ITC LTD has consistently strived to benchmark its services, products, and processes to exceed global standards. It instills in all its employees the company’s core values from day one; they also state that they provide “a commitment beyond the market”.
Empowerment is an essential concomitant of ITC’s first core principle of governance that management must have the freedom to drive the enterprise forward. Empowerment unleashes the creativity of employees, but given checks and balances scheme this could lead to problems. Check and balances are in place so no one person can overstep their bounds, but personalities can wreak havoc on that type of system. What one person might think as a good idea another could think of bad idea, in that lies the conflicts of personality. How is it one person can say another’s idea is good or bad? Also ITC is structured so that the boards of directors are accountable to shareholders and management is accountable to the board of directors. Given that structure the board can have almost unlimited power to do as they please as long as it benefits the shareholders.
Utilizing specific components of Strategic corporate social responsibility ITC LTD will be able to excel. The need to focus on defining their message they need to focus on what they want to do. They can’t one year decided they want to clean neighborhoods and next year plant trees, there needs to be a clear message. Next area to focus on would be creating a scorecard. A score card focuses on measureable and achievable goals and allows transparency and to be able to measure progress. But utilizing this LTD must be honest about any setback or delays. The last major focus area would be seeking publicity. Reaching out to media outlets to promote CSR activities gives LTD positive exposure.
Other major organizations and competitors utilize these components very well. Corporate social responsibility plans are drafted approved by boards and posted on company’s websites. They focus on what they want to accomplish and give long time goals that don’t stray from original plan. But not all organizations utilize these methods some just “shoot from the hip” sometimes that works and they are very successful but more often than not they fail and end up with negative exposure. Nowadays with the frequency of social media and the internet almost all companies post and promote on these mediums.
Internal influences which have impacted a corporate social responsibility plan come mainly from higher level employees. These employees either embrace the changes or resist changes. Employees that resist changes are difficult because they may go along with the plan but if the “whole heartily” don’t believe in the plan it is destined to fail. External influences can come from a number of areas whether it is the general public, government pressures, even lack of standards can play trouble.
Potential risk are always their when making a plan but the key is not to rush the plan. False starts result from a lack of adequate implementation planning. This could be because the subject is difficult to plan or predict, or because the implications and issues that arise once work begins are unexpected and stall the implementation process. Commonly, weaknesses across the other enablers also show themselves in an inability to hold a coherent program of actions together. ITC has consciously chosen the path less travelled. A path that has led it to create sustainable livelihoods for 5 million people. For ITC this is an expression of a commitment beyond the market. Of a conviction that country must come before corporation. A true pride in being Citizen First.
ITC LTD generally likes to take the path less travelled when it comes to corporate social responsibility. Given this I would suggest realigning some of its strategy’s to “safer” policy’s and initiatives. While the current plan has worked very well it leaves a lot of room for failure, which can cause a lot of negative publicity. Researching leading competitors in the area to find out what avenues they have taken on their CSR program, and potentially following some of their established programs. Once programs are decided on I would look at partnering with competitors to reduce the risks to our company.
Revising a strategy plan would consist of the seven steps to effective corporate social responsibility. Defining the message which layout exactly what needs to accomplish this step would also involve customers for input. From their creating a measurement system or “scorecard” that way goals are measurable and we aren’t just “winging it”. Partnering with non-profit organizations to lend credibility and promoting on social media (events, solicit ideas, experiences and concerns). Finally creating reports that include pictures graphs and stories to present to stakeholders and shareholders will appeal them and increase confidence in the plan.
Considering influences is a huge part to any corporate social responsibility plan. Internal forces are things that an organization can easily change or improve. Internal influences are normally employees, by creating a solid well thought out plan and being transparent will go a long way to motivating employees to back and promote the plan. External influence is efforts a company makes to manage its relationship with the external world. This relationship can and should include a wide variety of activities: not just corporate philanthropy, community programs, and political lobbying, but also aspects of product design, recruiting policy, and project execution.
Ethics were considered in the original plan while revising but it was found that there were no problems so no need to change anything. ITC LTD is committed to the community which is shown by focusing their CSR plans on areas that no others dare to enter. The CEO is committed to help the “average person” .They have proven this time and time again with all the programs they have created such as watershed development programs, E-Choupal rural digital physical infrastructure, renewable energy, and wealth out of waste programs.

7 Steps to Effective Corporate Social Responsibility. (n.d.). Retrieved May 26, 20