Analysis of Sustainability Reports of ITC Limited and Indian Oil

This paper analyzes the sustainability reports of ITC Limited and Indian Oil, two companies in India. It examines their values, mode of operation, similarities and differences in their reports, and their relevance to the Sustainable Development Goals. The paper also discusses the sustainability phases in which the companies sit and the extent to which their social reports reflect their stated values.

Running Head: ECONOMICS1
Business, Society and the Planet
Name
Affiliation
Date

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Introduction
Business sustainability refers to the coordination and management of social, financial and
environmental concerns and demand so as to ensure ongoing, responsible and ethical success.
Business sustainability aims at addressing to main categories, that is to say, the effect of the
business on the society and environment. For the case of this paper, we are going to make an
analysis of two companies in India with sustainability reports. In addition, we are going to look
at the values of these companies. Further, their mode of operation will also be analyzed by
considering their differences in various issues (Holte et al, 2010).
Description of the companies
For the purpose of this paper, the selected companies include, ITC Limited and Indian
Oil. All of the two companies operate in India but have a different background. For ITC limited,
it deals in a number of businesses such as Cigarettes, lifestyle retailing, safety mechanisms,
incenses sticks, stationary and education products, personal care products, and packed food. The
business deals with various products which are in line with the increased growth of India’s
FMCG industry. The company has continuously ensured that it keepsin the market (James et al,
2015).ITC limited is considered among the most famous multi-businesses in India having a
market of $50 billion. In addition, the business is considered among the largest companies in the
world with core sustainability values in the industry of consumer goods. Currently, ITC limited
is ranked as the leading company making Consumer goods in India. Also, the agri-business of
ITC is largest in Indis because they are the greater exporters of different agricultural products
(Magee et al, 2013).On the other hand, the Indian Oil operates as the biggest company in the area
in regards to turnover making it the only company in India to be included in the "Fortune Global
500" listing. The company is monitored by the Ministry of Natural Gas and Petroleum of India.

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Around 90% of the company shares are owned by the state. The core business of
IndianOilCompany is refining, marketing, and transportation of different petroleum products.
The company's business has expanded to other countries such as the United Arab Emirates,
United States of America, Singapore, Mauritius, and Sri Lanka. Also, the company has been in
the position to set up operational offices in areas such as Bangladesh and Myanmar (Capra,
2015).
Similarities and differences of the reports
Similarities
Both the ITC limited and Indian Oil sustainability report indicate the activities of their
business. In this case, the Indian Oil report deeply concentrates on the business operation such as
refining, market distribution, pipeline, and natural gas and many others. Also, the ITC's
sustainability report indicates the various activities performed such as agriculture, food packing,
and many others. Therefore, both the company's' reports broadly illustrate their businesses
operations for each activity performed (Wandemberg, 2015).
The company's' sustainability reports clearly indicate their economic performances
annually. For example, Indian Oil indicates that it experienced an increase in the production of
natural gas from -1.09% in 2017 to 10.49 in 2018. This was a great improvement that the
company has ever experienced. The two companies broadly indicate the Performance of each
sector or product by illustrating their annual contribution to the business. Also, the capacity for
each activity done by the ITC and Indian Oil is indicated in the sustainability report (Bakari,
2017).

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The information in both sustainability reports is clearly illustrated. IN this case, the
companies used diagrams, to illustrate their business activities. In addition, the information in the
reports is clearly illustrated for each report making it relevant and important for analyzing the
sustainability of the two companies in India. All reports indicate their contribution to the
economic performance of India by illustrating their export performance (Maditati et al, 2018).
In both reports, graphs, charts, and tables are adopted to illustrate the various business
activities. For example, ITC limited used graphs to illustrate the financial contribution of the
government to the business. Also, Indian Oil Company used tables to illustrate its refining
capacity. Therefore, all the reports were structured with different graphs, charts, and tables so as
to clearly display their information (Fawcett et al, 2012).
Differences
For ITC's sustainability report, clearly indicates its boundary, scope, and profile unlike
Indian Oil Company. In this case, ITC's sustainability report indicates that “Sustainability Report
2018 has been prepared on the basis of the latest Global Reporting Initiative (GRI) Standards and
meets the In Accordance Comprehensive criteria". This makes the ITC sustainable report more
detailed as compared to the Indian oil report. In this case, the ITC report indicates the aims, and
performance of each sector unlike the Indian Oil report (Black et al, 2010).
In explaining various information, the ITC report mostly used pictures for evidence of the
information while the Indian oil report is more of graphs, tables, and charts. While illustrating
most of its business activities, performances, stakeholders and services, ITC limited mostly used
the picture. For an Indian Oil company, tables and graphs were the most used tools to display
various numerical data and structured information (Rakes, 2018).

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Indian oil sustainability report is presented and formatted well as compared to ITC's. In
this case, the sustainability report of ITC is divided into two parts as some importation id
presented on the right and other on the left. This makes the information to be so compacted
making it difficult for readers. While the information in the Indian Oil sustainability report is
presented on full pages, this makes the information to be readable and more clearly. Also, Indian
Oil sustainability report is well aligned (justified) why ITC sustainability report is not well
arranged/ aligned making information to be poorly displayed (Shaker, 2015).
Relevancy of the Sustainability Development Goal for the companies
For an Indian Oil company, its major Sustainable Development Goal is; Ensuring Energy
security. Being a government-owned company, it prioritizes in the access of energy resources,
energy efficiency, energy security and energy sustainability (Liam et al, 2013). By achieving
this measure, the government has to incorporate various initiatives so as to increase the
exploitation and production of petroleum resources. In the sustainability report, it is indicated
that various policies were launched by the government to ensure effective security of energy.
Among the policies launched include, "The new Hydrocarbon Exploration Licensing Policy
(HELP)", "National Data Repository (NDR)", "Discovered Small Field Policy (DSF)" and many
others. These policies launched with various aims, for example, the NDR was aimed at making
the whole production and exploration data is readily available for research, development,
academic and exploration purposes. By implementing the various policies and programs, the
government of India will be in the position to ensure that the resources are secure. The strategies
implemented by the Indian Oil company on ensuring security on energy indicate more relevancy
as they aim at sustainable development (Morelli and John, 2011).

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For ITC limited, the most relevant sustainable goal is, pursuing 'responsible
competitiveness'. In order for ITC limited to achieve this objective, it has focused on managerial
resources, innovation, creative capacity and business operation in various areas in the society
hence helping them become successful in the creation of social capital. In order to achieve its
objective, ITC has implemented various innovation strategies of value chain aimed at benefiting
rural communities and farmers. For example, the pulp and wood fiber value chain which was
supported by the paperboards business of ITC. The company used R&D to develop Clonal
sapling with an intention of enabling the poor tribes to convert their unused land into plantation
(Liam et al, 2013). The business did this by building various groups in the area and they were
provided with technical support to manage and grow plantations. Also, the company was in the
position to create Indian brands which are world class with an intention of retaining and
capturing the value of the country's economy. Therefore, this objective is more relevant because
it aims at transforming the wellbeing of the local people of India without causing any effect on
the environment or economy (Manning et al, 2011).
Sustainability Phase/s (Dunphy, Griffiths & Benn) where the companies sit
Considering the sustainability report of ITC limited, the business is operating under the
last stage, sustaining organization. In this phase, sustainability becomes the major source of an
enabler of competitive advantage and other objectives. This phase involves transformative
culture,and redefined business context and relationships The Company is under this
sustainability phase because its major strategy is aimed at creating up a change by transforming
the society (Reinecke et al, 2012). In addition, the company is doing this by creating capacity,
innovation and strengthening the multi-talented resources of the people in the society so as
enable them to be in the position to contribute towards the society's capital. Whereas Indianoil

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company lies under the third stage of sustainability that is to say; compliance (Manning et al,
2011). This phase is all about reducing environmental messes by reducing their impacts, dealing
with various sorts of public related debacles and also assessing risks in the environment. The
company is under this sustainability phase because it focuses on conserving the products of
petroleum by promoting the efficiency of energy. With the help of "Petroleum Conservation
Research Association (PCRA)", the company has been in the position to implement strategies
and policies regarding the conservation of petroleum so as to reduce over-dependence on oil
requirement by the Country. In addition, fuel-efficient devices or equipment have been adopted
so as to ensure effective conservation (Reinecke et al, 2012).
The extent to which the social reports provided by these companies reflect their
stated values
To a large extent, the social report provided by the companies reflect their values as
explained below; first, the company activities are in line with their sustainability values. For
example, the ITC is implementing various strategies on ensuring competitiveness which was its
objective in the report. Also, the Indian oil company has implemented various innovation to help
in conserving oil products. Therefore, it isn't clear that the companies have put into action their
sustainable development objectives. Second, the companies have concentrated on the sustainable
development objectives which are in line with their activities (Liam et al, 2013). For example,
the Indian oil company deals in refining, marketing, and transportation of oil products, and it
aims at ensuring sustainable development of its industry by ensuring energy security, conserving
energy and many others. Therefore, the companies the social reports of these companies are in
line with their state's values because they aim at fulfilling their sustainable development
objectives (Dhaka et al, 2011).

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Lastly, the performance of the businesses, in this case, the companies aim at the
improved performance so as to attain economic growth and development of their area. According
to the sustainability report of Indian oil, it indicates the performance of natural gas and petroleum
as the major trend of macroeconomics. By understanding this, the company has ensured the
effective performance of the sector by conserving energy and ensuring the security of energy. By
doing so, the company's stated reports clearly solve the issues addressed in the reports which are
in line with its core stated values (Liam et al, 2013).
Conclusion
Considering my engagement with the group members, I was in the position to make a
conclusion about the two companies that is to say; ITC and Indian Oil. In this case, I was in the
position to notice that the companies are not interested in business operations but also improve
the wellbeing of the people and the environment. For example, the Indian Oil company looks at
improving the welfare, and development of women in the society by implementing various
initiatives such as in-house and external training programs, health programs meant for women
and many others. Also, ITC has implemented various activities and programs such as; a
forestation, watershed management, primary education, livestock development, women
empowerment, sanitation and health and management of water. This showed me that the
companies are not only profit oriented but also aim at changing the well-being of people by
implementing various initiatives. Therefore, this indicated me that, the two companies are more
concerned about the sustainable development of their society.

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