Sustainability Reporting and Analysis: Indian Oil and ITC Companies

This report assesses the sustainability of Indian Oil Corporation (IOCL) and ITC Limited, analyzing their approaches to social responsibility and performance. The report begins with company overviews, including their core business activities, industry, and performance issues. It then delves into the socio-economic and environmental issues faced by each company, exploring their impact and mitigation strategies. The analysis includes a discussion of relevant Sustainable Development Goals (SDGs) for both companies, followed by an examination of their sustainability phases based on the Dunphy, Griffiths & Benn model. The report also highlights the vision, mission, and values of each company, as reflected in their sustainability reports, and concludes with a reflection on the group's work and its findings. The report utilizes a triple-bottom line approach to evaluate the companies' financial, social, and environmental performance, providing insights into their CSR initiatives and sustainability efforts.

Running Head: MANAGEMENT
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Business, Society and Planet
5/7/2019

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Contents
Introduction...........................................................................................................................................2
Qi Company overview and Industry and performance issues................................................................2
INDIAN OIL CORPORATION........................................................................................................2
ITC Limited.......................................................................................................................................2
Q ii Social, environmental and Economic issues of ITC and Indian Oil................................................3
Q iii Sustainable development Goals (SDGs) of ITC and Indian Oil.....................................................4
Q iv Sustainability Phase/s (Dunphy, Griffiths & Benn)....................................................................4
Q v. Vision, Mission, and values of the companies...............................................................................6
Q.vi Reflection on the group in context to the work.............................................................................7
Conclusion.............................................................................................................................................7
References.............................................................................................................................................9

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Introduction
The report brings about the discussion on the assessment of the sustainability of a
business organisation, and the approach to social responsibility and social performances. For
understanding the concept of the business sustainability two companies has been taken i.e.
Indian Oil and ITC. The concept of sustainability is defined as the management of the triple
bottle line within organisation. It refers to the process of managing three aspects, i.e.
financial, social, and environmental risks and obligations. The analysis of the social
responsibility or sustainability of the business, several other aspects will be mentioned in the
assignment. These consist of the core business activities, vision, & mission, values, of the
company. In the process of discussion of sustainability of businesses, the phase of the
sustainability will also be mentioned. In the later part, the report will discuss sustainable
goals of both the companies that are found relevant within industry.
Qi Company overview and Industry and performance issues
INDIAN OIL CORPORATION
Indian Oil Corporation Limited (IOCL), or Indian Oil established in the year 1959, is
an oil and gas company owned and governed by Indian state. The company is headquartered
in New Delhi, and recognised as the largest commercial oil company in the country. Indian
Oil operates within oil Industry, and the key products in which the company deals include
Petroleum, and Natural gas (Shin et al., 2015).
The aspect of social reporting and sustainability are vital to every business
organisation irrespective of their trade of operations. Social reporting states the reporting on
some domain activities of the business that leads to impact on the society. For an example,
the issue of carbon emission in Indian Oil has been a major social issue that contributes to the
climate change causing harm to the environment, and humans. Carbon emission increases
the global temperature by absorbing the solar energy in the atmosphere. Therefore, social
reporting states the issues affecting the performance of the company (Dyllick & Muff, 2016).

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ITC Limited
ITC (Imperial Tobacco Company of India) Limited is the Indian Multinational
Company established in Kolkata, West Bengal. The company operates as within the
conglomerate industry and deals in consumer goods, such as cigarettes, apparels, education,
hotels, resorts and others.
Social reporting or the key performance issues of ITC consist of the problems that
affect the individuals working in the organisation, i.e. community at large. Labour practices,
and occupational health and safety. ITC puts special emphasis on occupational health and
safety aspect of the employees working in the organisation. The safety management system is
tuned to ensure training and other communications are used properly to reduce the risks of
accidents at workplace. Ineffectiveness in these aspects may lead to performance related
issues of the organisation (ITC, 2018).
Q ii Social, environmental and Economic issues of ITC and Indian Oil
The socio-economic issues in context to the conglomerate businesses mainly include
the issues that arise due to the human action, and it therefore affects the employment and
inequality. Moreover, the environmental risks or issues consist of the weather events,
biodiversity loss, failure of the climate change mitigation and others. Furthermore, to ensure
positive environmental impact, ITC is focused towards adopting the low carbon growth
strategy. This focuses on the enhanced use of renewable energy and assures proper
management of the energy and water consumption. Three-prolonged approach is used by ITC
to overcome the negative impact of these issues affecting performance in the environment.
This represents the strength of the approach through a proper system to first identify the issue
and then taking measures to control. Triple-bottom line approach is used by the company,
which contributed to the effective of CSR (Manu & Indira, 2018).
Discussing socio-economic and environmental impact of the company Indian Oil,
stated a difference from the conglomerate businesses. As both, the businesses vary in their
operations; therefore, issues affect their performance on basis of different factors (Xiao et al.,
2017). Air Emissions leads to the potential risk of respiration irritation, discomfort, or illness
to workers affect the individuals, i.e. society. Due to influx of workers during the phase of
construction can create the pressure on the infrastructure such as water, healthcare, and
electricity. This is the economic impact observed within Indian Oil. Water management and

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energy conservation are crucial within Oil industry; therefore, these are major environmental
issues in the company. Indian Oil uses a structured approach, i.e. 3 tier approach
(identification of material issues, prioritization of issues, and validation of issues) to resolve
conflicts or issues affecting performance (Xiao et al., 2017).
Q iii Sustainable development Goals (SDGs) of ITC and Indian Oil
Sustainable development Goals (SDGs) are defined as global goals, i.e. a strategy to
put end to the problems of poverty, protecting planet, ensuring peace and prosperity. Some of
the examples of SDGs include zero hunger, no poverty, health and wellbeing, clean energy
and air, climate action, and others.
One of the key Sustainable Development goals (SDG), in context to the company,
Indian Oil includes ‘energy conversation’ and ‘water’. Managing water and waste is also a
high priority for the company, as the Indian oil reprocesses the maximum quantity of waste
generated by the site (International trade centre, 2018)
In context to ITC, the global goals or SDGs, which are found relevant, aim to fulfil or
manage several development goals, i.e. sanitation and solid waste management, social
forestry. Climate change represents is a biggest threat to the sustainable development of the
business; therefore, urgent action to halt the change in climate is one major goal of ITC.
Achievement of SDGs or global goal states the partnership of various bodies, i.e.
government, private sector, civil society, and citizens to constitute positive conditions for a
better planet (International trade centre, 2018).
Q iv Sustainability Phase/s (Dunphy, Griffiths & Benn)
The discussion in this section will enlist the phase of sustainability of both the
companies, from the analysis of key features of the sustainability reporting. The core values
of the ITC focus on development of an organisation focusing on the customer, leading to
high-performance organisation, generating value for all the stakeholders of the firm. ITC’s
CSR policy includes the involvement into affirmative aspects such as skill building, and
vocational training of the employees (Mansi, Pandey & Ghauri, 2017).
Indian Oil has been actively engaged into the social welfare activities, for the
upliftment of the people in the society. The people in the company have always worked

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towards saving the people from the environmental issues, and natural calamities. Indianoil
scholarship scheme is one of the most significant CSR activities, which ensures providing
attractive scholarship to the bright students selected based on merit (Lawania & Kapoor, 2016).
Now, the discussion will determine at which stage does both the companies, fit in the
given sustainability phases of the business organisation. The phases will determine through
what ways the company has attained the pathway of sustainability and growth in the future.
Dunphy, Griffiths, and Benn established a six-phase model, as a useful tool for the
assessment of the growth of an organisation towards sustainability. The given six elements of
the model include rejection, non-responsiveness, compliance and efficiency, proactivity, and
the sustaining organisation. The six phase model of the sustainability provides an insight to
the managers to understand and analyse the sustainability of a business organisation, and
helps in the future planning (Benn et al., 2014).
In context to the organisation, Indian Oil Corporation (IOC) it has been analysed that
the company fits best in the sustainability phase of Efficiency. The aspect of efficiency, as
sustainability phase is found suitable as the company has carried or performed social
reporting or corporate social responsibility to enlist activities for the benefit of society. This
indicates that the company is moving or progressing towards path of sustainability (Mani,

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Agrawal & Sharma, 2015). In addition, the element of supply chain has been also found
relevant as per the phase of efficiency. Being an energy behemoth or leader Indian Oil has a
wider presence across the hydrocarbon value chain and alternate energy sources. Indian Oil
undertakes number of social welfare and community development programme throughout the
country, to lead better outcome for the sustainability (Annan-Diab & Molinari, 2017).
On the other hand, the company ITC, has shown great effectiveness in their
operations and the management of stakeholders, which determines that ITC fits to the phase
of proactivity. ITC works for the betterment and fulfils different needs of the stakeholders in
the organisation. This indicates about their growth and, achievement towards becoming most
sustainable organisation in the future. Thus, the phase of sustainability in the case of both the
companies has been described in the above discussion.
Q v. Vision, Mission, and values of the companies
The sustainability reporting or social reporting of the companies has mentioned the
vision, mission, and values of the organisation. The vision with the values of Indian Oil
includes the Corporation’s new aspirations or goals, i.e. to broaden the horizon of their
operations, to practice new-age dynamism amongst the employees. The vision of the
company is shared with the core values such as Innovation, Passion, and Trust. The mission
statement of Indian Oil states the achievement of the attainment of maximum wealth, value,
and satisfaction for the stakeholders. In addition, it also states the achieving high standards of
excellence in all aspects of energy and diversified business with their focus on increasing the
levels of customer satisfaction (Indian Oil, 2018).
The ITC Mission
The company has the mission to enhance the capacity of wealth generation of the
organisation in a global environment, and delivering value and satisfaction to their
stakeholders. The company operates with the objective of fulfilling various responsibilities
towards their employees, customers, and the society as well to attain high growth and success
in the long-term (Dyllick & Muff, 2016).
ITC has the vision to sustain the position of the brand as one of the India’s most
valuable corporations through the high levels of performance, and creating value for the
economy of India and various other stakeholders. The major values of the company ITC are

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focused upon establishing a customer-focused and high-performance organisation leading to
increased satisfaction amongst various stakeholders. It has been found that the above-
mentioned values, vision, and mission of the companies have been aligned well in their
sustainability reports (Kim et al., 2015).
Q.vi Reflection on the group in context to the work
From the above analysis of different aspects of organisations, ITC and Indian Oil, it
can be stated that both perform at a good level within their industries. The corporate
strategies or growth strategies of ITC has mentioned well, that the company is working
towards growth using multiple drivers, by developing the portfolio of making their business,
world class. It has been understood from the social reporting or corporate social
responsibility policies of these companies, that they have set a benchmark of achieving high
performance. The rate of sustainability is increasing manifold, and will continue to rise in the
future years, ensuring high growth and profitability (Yadava & Sinha, 2016).
The assignment was done as the collective effort of three people, as a group and
therefore differences in opinion regarding the companies. The key points of agreements, and
disagreements with the group members were regarding the approach or methods used by
companies in reducing issues in the environment. These disagreements sometimes led to the
situation of clash amongst the members and disturbed the harmony to work together on a
common project. Therefore, it must be resolved as it may lead to false results or negative
outcome in consideration to the assessment of the company’s position or growth
(Subramaniam, Kansal & Babu, 2017).
The perspectives provided by the group members in this work, or assignment stated
both the aspects, i.e. negative and positive of both the companies. They contributed or
supported me in developing a better understanding of the key elements of the values, or
activities that can hamper the performance of the organisation. Thus, collaboration and
understanding amongst the members of the organisation is must to undertake any kind of
group activity or project, in an effective manner.

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Conclusion
To conclude the above discussion it has been analysed that the aspect of sustainability
of a business organisation directly relates to their performance. The idea of the sustainability
is described in the above report in context to both the companies, i.e. ITC and Indian Oil
Corporation. ITC and Indian Oil must focus upon the improvement of the strategies of their
operations to avoid any issue or problem affecting their growth and success. Achieving
sustainability within business is important for the long-term growth and prosperity of the
firm, as they help in maximizing the opportunities, and minimize the risks or problems.
Hence, corporate sustainability constitutes an important part of the risk management and it
ensures practising good business culture, and long-term success.

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References
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https://www.iocl.com/AboutUs/Vision.aspx
International trade centre. (2018) Sustainable Development Goals. Retrieved from:
http://www.intracen.org/itc/Sustainable-Development-Goals/
ITC. (2018). ITC at a glance. Retrieved from: https://www.itcportal.com/
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https://www.itcportal.com/sustainability/sustainability-report-2018/sustainability-report-
2018.pdf
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