ABHOY K OJHA ITC LTD.: TOWARD A TRIPLE BOTTOM LINE PERFORMANCE

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IMB 339
ABHOY K OJHA ITC LTD.: TOWARD A TRIPLE BOTTOM LINE PERFORMANCE
INTRODUCTION
With a population of more than 1 billion, India has been a major market for all kinds of products and services,
including tobacco products. Despite significant opposition to the consumption of tobacco products by citizen groups,
and government efforts to restrict their consumption through a variety of legislations, India has been a very
attractive market for the tobacco industry in general, and the cigarette industry in particular. The decline in smoking
in the developed world, as a result of government-imposed restrictions and changing attitudes toward smoking has
made India one of the few opportunities for growth for the global cigarette industry. However, the tobacco industry,
including the cigarette industry, has been a source of significant health problems. Some estimates suggest that
globally 11,000 people die because of tobacco in a dayi. Other estimates suggest that 100 million died because of
tobacco in the 20th century and one billion could die in the 21st century ii. The dilemma for industry captains has
been to decide on the future direction of their firms such that it addresses the interest of all stakeholders, including
the society at large, while maintaining short-term and long-term viabilities.
ITC Ltd. has been a diversified company. In addition to being a dominant player in the cigarette industry in India, it
had interests in hotels, agri-business (which included tobacco), packaged foods, lifestyle products, personal care
products, education and stationery products, paperboard and packaging, and more. It also had subsidiaries in other
businesses, including information technology. It has been trying to keep the interest of all the stakeholders in mind
and position itself as a socially-responsible organization. The Chairman of ITC Ltd., while addressing the
shareholders on July 27, 2007 emphasized the need for corporate social responsibility and suggested that ITC Ltd.
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producing economic, environmental and social values, and thus contributing to national progress. His July 24, 2009
address to the shareholders, highlighted a wide range of initiatives in the communities within which the company
has reach, including watershed development, animal husbandry services, education services, and self-help services
as part of the efforts of the company to live up to the promise emphasized in its vision.
ITC Ltd. had to chart its future direction for the next phase of its lifecycle in light of the tremendous opportunities
for growth in the cigarette industry and the controversies around significant social costs, largely owing to health
risks for primary and even secondary smokers. Sanjiv Puri, a long time manager with ITC Ltd. with a wide range of

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