Over the years, ITC has evolved from a single product company to a multi-business corporation. Its diverse businesses include fast moving consumer goods, hotels, paperboards, paper & packaging and agri business. Each of these businesses is vastly different from the others in its type, the state of its evolution and the basic nature of its activity, all of which influence the choice of the form of governance. Besides, there are in-house shared services like Central Projects Organisation (CPO), ITC Life Sciences & Technology Centre (LSTC), Trade Marketing & Distribution (TM&D) etc. which render essential services across businesses. The challenge of governance for ITC therefore lies in fashioning a model that addresses the uniqueness of each of its businesses /shared services and yet strengthens the unity of purpose of the Company as a whole.
Since the commencement of the liberalisation process, India's economic scenario has altered radically. Globalisation has significantly heightened business risks and in response many of the Indian companies have strengthened norms of transparency and good governance. Equally, in the resultant competitive context, freedom of executive management and its ability to respond to the dynamics of a fast changing business environment are the new success factors. ITC’s Governance Policy recognises the challenges of business reality in India.