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We are heartily thankful to our supervisor, Miss Mahwish Irum, whose encouragement, guidance and
support from the initial to the final level enabled us to develop an understanding of the subject.
Lastly, we offer our regards to all of those who supported us in any respect during the completion of
the project.

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?orporate governance is the set of processes, customs, policies, laws, and institutions
affecting the way a corporation (or company) is directed, administered or controlled. ?orporate
governance also includes the relationships among the many stakeholders involved and the goals for
which the corporation is governed. The principal stakeholders are the shareholders, management, and
the board of directors. Other stakeholders include employees, customers, creditors, suppliers,
regulators, and the community at large.

?orporate governance is a multi-faceted subject. An important theme of corporate

governance is to ensure the accountability of certain individuals in an organization through
mechanisms that try to reduce or eliminate the principal-agent problem. A related but separate thread
of discussions focuses on the impact of a corporate governance system in economic efficiency, with
a strong emphasis on shareholders' welfare. There are yet other aspects to the corporate governance
subject, such as the stakeholder view and the corporate governance models around the world.

?orporate governance principles and codes have been developed in different countries and
issued from stock exchanges, corporations, institutional investors, or associations (institutes) of
directors and managers with the support of governments and international organizations. As a rule,
compliance with these governance recommendations is not mandated by law, although the codes
linked to stock exchange listing requirements may have a coercive effect.

For example, companies quoted on the London and Toronto Stock Exchanges formally need
not follow the recommendations of their respective national codes. However, they must disclose
whether they follow the recommendations in those documents and, where not, they should provide
explanations concerning divergent practices. Such disclosure requirements exert a significant
pressure on listed companies for compliance.

There are various laws and regulations from the Government for which an organization is
bound to follow so that the level of sound governance can be achieved. The following are the
different types of Laws

Ôc Environment protection laws

Ôc Employee safety and health protection

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Environmental law is a complex and interlocking body of treaties, conventions, statutes,
regulations, and common law that, very broadly, operate to regulate the interaction of humanity and
the rest of the biophysical or natural environment, toward the purpose of reducing the impacts of
human activity, both on the natural environment and on humanity itself. The topic may be divided
into two major areas: (1) pollution control and remediation, and (2) resource conservation and
management. Laws dealing with pollution are often media-limited - i.e., pertain only to a single
environmental medium, such as air, water (whether surface water, groundwater or oceans), soil, etc.
- and control both emissions of pollutants into the medium. These laws are further divided into
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Industrialization and urbanization have a resulted in a profound deterioration of Pakistan¶s air

quality. The act provides for the prevention, control and abatement of air pollution. It also provides
for the establishment of boards with a view to carrying out the above purpose.



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The heart may be damaged by the air pollution, secondary to lung diseases, nitrogen
dioxide results in pulmonary edema and aggravation of coronary disease. Toxic effects of led
pollution include impaired IQ and development defects in children. These are few of many effects of
air pollution on human beings.

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The environmental protection act provides for protection and improvement of
environment and for matters connected therewith. A man is both creator and moulders of his
environment, which gives him physical sustenance and the opportunity for intellectual, moral, social
and spiritual growth. In the long end tortuous evolution of the human race on this planet, a stage has
reached when through the rapid acceleration of science and technology, man has acquired the power
to transform his environment in countless bases and on unprecedented scale. Both aspects of man¶s
environment, the natural and manmade, are essential to his well being and to the enjoyment of basic
human rights, even the right to life itself´.


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Workplace safety is a category of management responsibility in places of

employment.

To ensure the safety and health of workers, managers establish a focus on safety that can include
elements such as:

Ôc management leadership and commitment

Ôc employee engagement
Ôc accountability
Ôc ensuring all task are carried out safely and efficiently and effectively
Ôc safety programs, policies, and plans
Ôc safety processes, procedures, and practices
Ôc safety goals and objectives
Ôc safety inspections for workplace hazards
Ôc safety program audits
Ôc safety tracking & metrics
Ôc hazard identification and control
Ôc safety committees to promote employee involvement
Ôc safety education and training
Ôc safety communications to maintain a high level of awareness on safetycc

Further divided into sub categories which are elaborated blow

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The trade union act provides for registration of trade unions with a view rendering
lawful organization of labor to enable collective bargaining. It also confers on a registered trade
union certain protection and privileges. Registration of a trade union is not compulsory but is
desirable since a registered trade union enjoys certain rights and privileges under the act.
Minimum 7 workers of an establishment (or seven employees) can form a trade union and apply
to the registrar of its registration.

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The payment of bonus act provides for payment of bonus to persons employed in certain
establishment on the basis of profits or on the basis of production or productivity and for matters
connected therewith.

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Every employee receiving salary or wages up to Rs. 3500 per month and engaged in any kind
of work whether skilled, unskilled, managerial, supervisory etc. is entitled to bonus for every
accounting year if he has worked for at least 30 working days in that year.

However, employees of universities and educational institutions, hospitals, chamber of

commerce and social welfare institutions are not entitled to bonus under this act.

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Notwithstanding anything contained in the act, an employee shall be disqualified from

receiving bonus, if he is dismissed from service for fraud or riotous or violent behavior while in the
premises of the establishment or theft, misappropriation or sabotage of any property of the
establishment.

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The employee¶s provident funds and miscellaneous provisions act provides for compulsory
contributory fund for the future of an employee after its retirement or for his dependents in case of
his early death.

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This act aims to provide workmen and /or their dependents some relief in case of accidents
arising out of, and in the course of employment and causing either death or disablement of workmen.
It provides for payments by certain classes of employers to their workmen compensation for injury
by accident.

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The act caters to the needs of consumers, and a variety of services such as banking,
financing, insurance, transport, housing constructions, entertainment have been made available to the
consumers. Any person who has bought goods for the consideration and finds any defect in the

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quality, quantity, potency, purity or standard of the goods has hired or availed any service for
consideration and finds any fault, imperfection, shortcoming or inadequacy in the quality, nature and
manner of performance in relation to the service can approach the courts.

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The prevention food adulteration act aims at making provisions for the prevention of
adulteration of food. Any article of food shall be deemed to be adulterated if the article sold by a
vendor is not of the nature, substance or quality demanded by the purchaser or which it purports to
be.

  
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In EM?O for employee protection and bargaining with employee, an employee

union was established in 1970. Registered with the name of EM?O Employee Union in ³?BA´.

This union works for the permanent workers and provide safety by providing safe environment
according to the workers demand. This union also talks with management on behalf of workers in
case of strike or other workers related issues. This union is consist upon fallowing hierarchy

President

Vise President

Secretary

Vise Secretary

Treasury

Members of worker union are elected by voting within the company. Winning party submit
prescribed fee to ³?BA´. All members of winning party provide their complete information in the
prescribed form and submit it with prescribed fee. Their right and liabilities are mentioned in this
form. There is no separate head office of EM?O Worker Union.

 

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There are different criteria for different department for compensation and bonus payment.
The quarterly bonus paid to the worker on the performance basis. In the start of energy crises the
potential worker can not work in full capacity to meet bonus criteria. To eliminate this problem the
company provides generators as well as gas cylinder in 2004.

0.5 % bonus is provided on each unit after meeting set target. And 1 % bonus for extra unit
after meeting target.



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The EM?O also provide the provident facility to their employee by deducting 10% of the
basic salary, 10% of the employee basic salary as well as same amount form the employer is
deposited with in employee provident fund. The lum-sum amount of provident fund is given to the
employee after retirement.

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Medical facility and allowances is also provided to their permanent employee in case of
emergency.
For the provision of Medical facility and allowances to their workers, the two plans are practiced.

Ôc 1st they provide 45 % medical allowance of basic salary to permanent employee and
workers.

Ôc 2nd plan is for those workers who injured during work, ?ompany suffer All medical
expenditure of that employees.

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The company is already providing all needed facility to protect their workers. All the workers
are quite happy from their employer and management. The working environment is friendly;
company can improve their performance by providing safe and sound environment.

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As the main business of the organization is the manufacturing of the different pesticides so
the internal as well as external environment is very much polluted. The manufacturing plant first was
installed in the main city but because of the intervention of the government it was shifted to the
rewind road Lahore. The abundance usage of nitrates in the manufacturing of the pesticides and other
chemicals damaged the environment of the surroundings. The organization is providing proper
masks to the workers and the employees of the organization but not doing anything for broad
stakeholders.

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Under this law there are four types of acts

Ôc Trade Union Act

Ôc Payment of Bonus Act
Ôc The Employee¶s Provident Funds Act
Ôc The Workmen¶s ?ompensation Act

As far the question of workers who worked in the plant and the laws relevant to the workers, the
whole work team is outsourced so the above laws are not relevant to them except the Employee
provident fund.

They are providing employee provident funds facility for there permanent workers. The 10
5% of basic salary is the contribution from the side of the employee and same is contributed from the

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side of the employer and the amount is invested in the government securities. This whole working is
done by the finance department of the Ali Akbar group.

 
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The end consumers of this organization are farmers. They have structured special teams
which guide and give special training to their consumers regarding the usage of pesticides and
chemicals in the fields. These chemicals are so dangerous that their misuse can kill their consumers
so that is why the organization has to remain very conscious about the safety of their consumers.

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In keeping the current scenario of the area where the production plant of the organization is
working, it¶s now become the residential area and also some universities¶ campuses are there so for
the interest of broad stakeholders they should move their plant to some other industrial area. The
purely implementation of bonuses act should be established in the organization.

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Ôc ñiesel
Ôc GAP.
Ôc Guess Jeans.
Ôc H & M
Ôc Bershka.
Ôc Mero.
Ôc Tom Tailor.
Ôc Matalan.
Ôc Stadium.
Ôc Rok.
Ôc Tacoma.
Ôc ?herokee.
Ôc Jeans.
Ôc Frankie Garage
Ôc Upim
Ôc Feggi
Ôc ?alzidonia
Ôc Geoax

There are too many other customer which are being dealt by the azgard9 Ltd

Now they are struggling to get order from Levis.

 

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Their main business is jeans manufacturing and during this process pollution is
created. The wastage of cotton is thrown out of the factory and during washing process water
pollution is created and wastage is sent out of the factory and water is also polluted. Boiler has
internal as well as external affects on people because its steam affects the environment as well as
people.

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Under this law there are four types of acts

1)c Trade Union Act

2)c Payment of Bonus Act
3)c The Employee¶s Provident Funds Act
4)c The Workmen¶s ?ompensation Act

There is no registered trade union although there is a trade union but it is not
according to that defined in the act. This trade union is not too much strong and much less hold over
the organization. Now we come towards bonus from evaluation it is known that which worker
deserves bonus and it tells about his performance and it is the way to inspire the worker to work hard
to get bonus. Provident Fund is given to employees after retirement or in case of death of employees.
The compensation of disable during work is given to workers and their proper medical checkup is
taken so they over all act in a good manner.

 
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They take care of their consumers in all manners. All the defects of the product are
taken care off to avoid any reason of failure of the product. Stitching, washing and final checking is
made with great care.

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1)c They should make proper sewerage system to avoid any type of disturbance in the
environment to make it clean and clear.

2)c Trade union should be registered because it has too many privileges and the workers remain
satisfied and they work with more effort.

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Pak Elektron Limited alone has a turnover of over 180 million US ñollars. Saritow Spinning
Mills & Azam Textile Mills growing export orders, numerous successful power projects and greater
than ever base of satisfied customers are evidence to these aspirations. Works of PEL are spread at
two facilities in Lahore, the historical city and cultural hub of Pakistan. The two facilities cover an
area of 1,033,200 Sq ft and 614,252 Sq ft respectively. Both are equipped with latest technology,
state of the art testing facilities and environment friendly production process. At the heart of PEL¶s
operations is its human resource. PEL invests heavily on professional development, skill
improvement and well being of its human resource. PEL¶s employees are its most valuable asset and
PEL keeps them very dear.
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The organization is registered under Environmental Protection Agency (EPA), so the issues
relevant to environment are reviewed by the EPA.
Organization used some dangerous gaseous compounds of carbons like chlorofluorocarbon
gas in refrigerants and air conditioners which can cause a breakdown in earth¶s atmosphere. To
minimize the harmfulness of carbon compounds they have introduced a new gas named R34, which
is less harmful as compared to chlorofluorocarbon gas.

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Under this law there are four types of acts
Ôc Trade Union Act
Ôc Payment of Bonus Act
Ôc The Employee¶s Provident Funds Act
Ôc The Workmen¶s ?ompensation Act
In PEL there is a trade union which is supported by the employer of the organization. And
there is a very positive and good relation between the management and the president of the trade
union. The management is very conscious about the health and safety of the workers inside the
organization. They have dispensary for the workers and in case of any emergency they have their
own ambulance. They provide their workers special masks while doing working in production plant.
There is no concept of performance based bonuses. They just give bonus on profit based.
There is a continuous annual increment in the salary of every employee and worker. There is a 5%
deduction from the salary of the employees for provident fund.

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As we have explained above that, this is basically deals in home appliances
electronics. According to the Mr. Ali Kamran (learning and development manager of HR
department) that PEL is trying to produce such products which should be durable and easy to use.
PEL is very conscious about the satisfaction level of their customers on the basis of quality as well as
durability and price of their products as compared to their competitors.

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As the manufacturing unit of PEL is in the main city so for keeping in view the interest of
other stakeholders they should move their plant to some other place so the environment of that place
to their original position. They should introduce new type of Gas which should be environmental
friendly. The purely implementation of bonuses act should be established in the organization.

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Since 2000 Premier ñairies is working on the aspect of life to provide pesteurised milk in a healthy
way. We collect best milk from its reliable resources. After its careful and different checkings
procecces 'PURE & FRESH' milk is extracted and produced in the form of "VANIA" milk. Premier
ñairies has other many valuable products too, mentioned below. For details follow the appropriate
link.

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