Growth Beyond Profit: ITC's Sustainable Business Model

ITC Chairman and Managing Director Sanjiv Puri asserts that sustainability and inclusive growth must be fundamental to corporate business models, a principle his conglomerate actively follows. He articulated that economic progress is inseparable from sustainability, urging organizations to generate not only economic value but also societal value through what he termed 'responsible competitiveness.'

Puri called for corporations to transcend the creation of shareholder value alone. He noted that such responsible practices are increasingly demanded not only by evolving regulations related to environmental and social systems but also by stakeholders globally. He stressed that developing business models beneficial to society makes sound business sense, especially given current global challenges.

The world faces a convergence of crises, including geopolitical instability, trade disputes, and the climate crisis, impacting livelihoods and food security. Puri described this as a 'perfect storm' where novel strategies are required, with the vulnerable bearing the brunt. He advocated for collaborative efforts between government, the corporate sector, and civil society to tackle climate change, acknowledging India's commitment to a low-carbon growth path.

Illustrating ITC's approach, Puri cited the company's creation of an ecosystem that reduces reliance on virgin resources for its paperboard business and extends to fruit juices. This involves initiatives from R&D to supporting small farmers. Regarding CSR, he suggested viewing it as a business venture with measurable outcomes, emphasizing the need for community capacity building to ensure long-term sustainability of initiatives.