Set against the backdrop of the underserved, overexploited rural India, this case highlights how the use of technology by the Indian conglomerate ITC, the lives of many rural Indians at the same time transformed it for the benefit of society. Constantly plagued by an inefficient supply chain in rural agriculture, ITC e-Choupal initiative implemented in 2000. Under the initiative, ITC set up small internet kiosks in villages, which allows to change to an efficient and transparent access to farmers … Read more »

Set against the backdrop of the underserved, overexploited rural India, this case highlights how the use of technology by the Indian conglomerate ITC, the lives of many rural Indians at the same time transformed it for the benefit of society. Constantly plagued by an inefficient supply chain in rural agriculture, ITC e-Choupal initiative implemented in 2000. Under the initiative, ITC set up small internet kiosks in villages, which allows farmers access to an efficient and transparent alternative to the traditional Mandi for marketing their products. By establishing a direct channel between the farmer and ITC e-Choupal significantly marginalized the role of middlemen, which farmers more money for their products. This not only alleviated concerns ITC e-Choupal agricultural supply chain, but also achieves a greater good economic uplift and strengthen the Indian farmers. Although e-Choupal was conceived as a response to their supply suffering ITC ITC was quick to realize that they discovered the delicate balance between economic efficiency and the achievement of corporate objectives, a social contribution. Faced in the minds of many challenges through impoverished rural Indians, ITC expanded its e-Choupal framework for core services, such as to provide access to medical care, education and information. They even have liaised with other companies, including fast-moving consumer goods companies and finance companies to provide products and services to rural Indians, who had previously commanded huge premiums or simply were not available supply. Evolving into a platform for community development, e-Choupal was both the eradication of poverty and rural isolation scratch, even during the ITC to continue to enjoy the benefits of functional procurement and distribution of value chains.
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from
Ali Farhoomand,
Saurabh Bhatnagar
Source: University of Hong Kong
26 pages.
Release date: 30 June 2008. Prod #: HKU765-PDF-ENG
ITC e-Choupal: Corporate Social Responsibility in Rural India HBR case solution