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A selection of companies based on as a sample on various industries of Pakistan. 1. Citizen-Police Liaison Committee ( CPLC) 2. National Refinery Limited 3. Pakistan Petroleum Limited 4. Shell Pakistan 5. Pakistan State Oil (PSO) 6. Pak-Arab Refinery Company Limited 7. Sui Southern Gas Company ( SSGC) 8. Askari Commercial Bank Limited 9. Khadam Ali Shah Bukahari (KASB) Securities 10. The Bank of Punjab 11. First Woman Bank Limited ( FWBL) 12. Dollar East Exchange Company (PVT) Limited 13. Cresent Steel and Allied product Limited ( CSAPL) 14. ICI Pakistan Limited 15. Engro Chemical Pakistan Limited 16. Soccer Ball industry of Pakistan 17. Unilever Pakistan limited 18. National Foods Pakistan Limited 19. Proctor and Gamble Pakistan 20. Geo TV
Industrial Relation Journal, country paper on CSR sixth Asia Pacific high level employers conference Dhaka 2-3, December 2003
Pakistan after its emergence as a geopolitical entity has a number of aspirations, which are relevant and vital for its sovereignty, autarky and development. The sustenance and expansion of countrys Energy, Oil and Gas sectors is essential for the availability of energy carriers for their utilization and contribution to countrys industrial development and economic growth. National Refinery Limited has made significant and notable contribution to the countrys processing and supply requirements of countrys mineral oil energy carriers, lube base oil and asphalt requirements of the country since over thirty year period. It has acquired expertise and capability in the important and diverse areas of oil processing. National Refinery Limited (NRL) is countrys largest Petroleum Refining and petrochemical complex having a wide range of Fuels, Lube Base Oils, Asphalts, BTX petrochemicals and specialty products in its product range. This has provided it a unique and competitive edge. NRLs quality products are utilized for both domestic consumption and exports. NRL has a well-defined Environmental Policy which plays a key role in its decision making process to ensure compliance with relevant laws (NEQS). NRL achieved a landmark by acquiring ISO-14001 and OHSAS 18001 certifications. This success exhibits NRL employees commitment towards HSE policy by implementing Environmental Management System and Occupational Health and safety Management System.2 Available information only describes one indicator of the index rest of management practices, social posture and others did not find in the available sources3.
Shell Pakistan:
2 3
National Refinery Limited Economic Review 2-3, 2005 Ibid 4 Pakistan Petroleum Limited Economic Review 2-3 2005
Shell Pakistan is one of the famous companies in the oil and gas sector of Pakistan. Shell brand name has a 100 year history in this particular area of world. From 1899 till 2007 it has made several joint ventures and mergers but Shell Pakistan is its final identity. Nowadays Shell is working with a mission of sustainable development and allege that there future is linked with the future of Pakistan. The company is of the point of view that society's expectations here in Pakistan from the big business are changing. These expectations include safe places to live and work, a healthy environment, conservation of the bio-diversity, environmental protection, clean air, clean water, reasonable return on investments and job opportunities, to name a few. Shell Pakistan believes that the way to manage these challenges is through a commitment to the principles of Sustainable Development. These principles include the robust profit generation, value delivery to the customers, environmental protection, and management of resources, providing benefits to the communities, providing safety and respect to the people and working with stakeholders. Shell being a responsible corporate citizen has always contributed in society through various activities and Shells bulk oil installation at Machike is no exception. Inline with Shells policy on "Shell in Society", a free eye testing and medical camp was arranged on 9th April 2005 at Machike in collaboration with Layton Rehmatullah Benevolent Trust (LRBT). In order to follow its principles of sustainable development Shell is involved in number of activities which can provide benefits to the individual and society at large. These activities involve the free eye camps and medical camps in the northern areas of Pakistan, Shell road safety program and Shall Tameer program. Shell Pakistan has showed its full commitment to the benefits of society by its above mentioned activities.5 Being a responsible corporate citizen Sell Pakistan invests from its social investment in the four social sectors which are education, health, environment and heritage. Shell Pakistan provides funds to different hospitals, educational institutes, rich heritage sites and other social development programs notable amongst which are Layton Rahmatullah Benevolent Trust (LRBT), The Kidney Centre (TKC), Behbud Association, Human Rights Education Program and The Book Group.6 Again the CSR index approach is taken as building social posture of the company in others words social image and neglecting the other three important indicators of CSR. The only information made available in order to interpret CSR index by the company is related to social posture. Management practices, environmental issues and key corporate governance issues are not being highlighted by Shell in its practices.
Kerosene, LPG, CNG and petro-chemicals. This blue chip company, the winner of "Karachi Stock Exchange Top Companies Award" and a member of World Economic Forum, has been a popular topic of case studies in Pakistan and abroad based on its radical corporate turnaround over the last few years. Being one of the successful companies PSO give high consideration to the needs of its stakeholder and environment. The company has a firm belief that its good reputation is linked with the good corporate behavior. So the company considers Corporate Social Responsibility as an important factor in its day-to-day dealing with stakeholders. So in the perspective of CSR the company has its distinctive policies which include its efforts to create such an environment in which each and every individual has the equal opportunity in achieving business success. The company wants to improve the economic conditions of Pakistan by job creation, business engagement and philanthropy. Apart from it the company also includes the policies of nurturing the environment, availability of health care and educational facilities to the community. The corporate citizenship activities include the installation of the traffic signals in all the major cities and towns in the country. In providing equal educational opportunities to the citizens PSO has provided scholarships to meritorious and deserving, business management and engineering student at prestigious universities like GIK Institute of Engineering Science & Technology, Topi, NWFP; Institute of Business Administration, Karachi, Sindh; the Quaid-i-Azam University, Islamabad; University of Engineering & Technology, Khuzdar, Baluchistan; and the Punjab University, Lahore. PSO has also provided financial and other assistance to genuine charitable projects like Shaukat Khanam Memorial Trust, The Kidney Center, Al-Umeed Rehabilitation Society, Family Education Services, Darul Khushnud Center for Mentally Handicapped, etc. In order to pay respect to the health, safety and environment of employees, customers, suppliers, partners and community neighbors the company fosters the sustainable use of natures resources with the motto of: Safety First and Integrity Always.7 The role of PSO is again toward building social image and ignoring the true concept of CSR especially keeping in view management practices and environmental concerns there is no information made available on PSO website and its annual reports.
In the vision statement of PARCO it has been mentioned that companys biggest challenge is not only to figure out what future will be the right one, but also to choose a future that will give a definite competitive advantage to the company in the longterm. This very statement, the mission statement and the other information disclosed by the company do not portray the image of the company as a socially responsible. By taking the detail of all the information available on the website of the company it is quite clear that though the company is playing a good role for the economic development of the country by creating jobs through its different projects and also satisfying its shareholders but the information fails to mention the steps taken by the company for the betterment of the environment, education and health facilities provided to the community. So, it is right to say that if the company is performing the above mentioned CSR activities then it should properly disclose the information or if it is not performing such activities then it should take steps related to these activities in order to get the public confidence and long term success.8
http://www.parco.com.pk/
1. On November 30, 2006 SSGC established a Marie Adelaide Leprosy Centre (MALC) at Mirpur Khas. 2. On November 14, 2006 at Sandspit Karachi SSGC provided finances to the NGOs who joined each other to perform beach cleaning activity. The activity was organized by WWF as a part of the Indian Ocean South East Asia (IOSEA). Engr. Naeem-ur-Rehman Akhoond, SGM (MS) was the Chief Guest on the occasion. Speaking on the occasion, he appreciated WWF's efforts for nature conservation and highlighted SSGC's commitment and contribution to this cause. 3. In August 2006 SSGC has loaned two fully equipped buses in addition to providing a Mitsubishi high roof coach to the University of Balochistan (UoB) at the request of Brig (Retd.) Agha Ahmed Gul, the Vice Chancellor, so that transport difficulties faced by the students of the university could be mitigated. 4. SSGC had organized 3rd Independence Day Karachi-Hyderabad Cycle Race held on Sunday, September 10, 2006. 54 cyclists from all four provinces as well as five departmental teams comprising of SSGC, WAPDA, Pakistan Army, Pakistan Ordnance Factory (POF) and Pakistan Railway participated in the race. 5. SSGC also grant scholarships to the students at Lahore University Of Management Sciences. These scholarships are given to the students on merit bases.9 If we considered the above mentioned contributions in the CSR practicing then it only covers the corporate philanthropy. However considering the other three indicators of management practices, environmental concerns and corporate governance are not fully addressed by the given literature for instance website, annual report.
10
being perceived again as corporate philanthropy and ignoring the other indicators of the index.
KASB Securities:
The KASB Group was established by Khadim Ali Shah Bukhari in 1958. This group has long-standing traditions of excellence in financial services in Pakistan. It is known primarily for investment banking, research/trading and asset management. In 1993, KASB became the local partner for the international investment banking firm, Merrill Lynch. Recently, Merrill Lynch acquired an equity stake in KASB Funds. This Group is made up of KASB Securities, KASB Funds, KASB Capital, KASB Direct and KASB Bank. The group has also diversified its interest with investments in real estate, technology, and oil and gas, while solidifying its leadership in financial services. This group is of the point of view that their continued success and growth is a reflection of their innovative approach to business and commitment to customers and community. KASB follows the view that the way in which they interact with society has an impact on their business and on their reputation. So as a firm and as an individual they have always strived to give back to society by contributing their time and resources through four key initiatives which includes: the training of employees in order to make them the leaders in their fields, active sharing of views in shaping policies of the country, showing commitment to the social welfare projects and promoting development sports and culture.11 KASB is looking forward to improve its image through imparting spirit of CSR. However lack of evidence being provided in available information that how they are implementing CSR approach. The interpretation of CSR is perceived by KASB as corporate philanthropy and others indicators are ignored as per the information available from the web site as well as annual reports.
KASB: www.kasb.com/corp_citizenship.htm
requirements and money market operations. The Bank has a cautious and constructive lending policy and it is based on principles of careful lending with maximum emphasis on security. As agriculture is considered the backbone of the economy of Pakistan so in order to strengthen the economy the Bank of Punjab has introduced "Kissan Dost Agriculture Finance Scheme" to small farmers.12 Though the bank has provided the Kissan Dost Agriculture Finance Scheme to the farmers in order to establish the agriculture sector of Pakistan economy but apart from it there is not a single activity mentioned on the website of the bank which can witness that the bank has also played role for the betterment of the community. No doubt the bank has provided several services but all of them are on the cost of the customer. There is no information available on the website record that can present it as a social responsible bank.
12 13
www.bop.com.pk/ http://www.fwbl.com.pk/
responsible bank it has to perform several activities for the well being of the whole community.
www.dollareast.com http://www.roshnihomes.org
having the authorization to use API monogram of the American Petroleum Institute since its inception in 1987, the highest international standard accredited for quality of steel line pipe. In 1997, the Company was awarded ISO 9001 Quality Management Standard Certificate which it continues to maintain as ISO 9001:2000. In addition, the company has become the first Pakistani company to have acquired oil and gas industry specifics ISO 9000-2000 Quality Management System certification from API. CSAPL is one of the staunch supporters of the cause of education and health in Pakistan. The company makes a constant attempt to improve and raise the standards of the society in which it operates. Over the last five years the company has provided funding to build thirteen primary schools and is currently supporting all these schools under the umbrella of The Citizens Foundation (TCF). The Company also provides considerable funding to many other educational institutes and hospitals throughout the country notable amongst which are Lahore University of Management Sciences, COMMECS, and the Agha Khan Hospital. The Citizens Foundation (TCF) is a not for-profit organization striving to provide quality education to Pakistan's neglected low income, urban (katchi abadis) and far-flung rural areas. TCF does this through its network of purpose-built and well-managed schools, trained teachers, developed curriculum and an effective system of monitoring and evaluation. More than 55,000 children study in 450 TCF school units all over Pakistan.16 There is not much data available to project the implementation of CSR vision which is stated in company mission statement. The only contribution made by the company is to project CSR as a corporate philanthropy and other indicators are ignored as per information available.
16
Khewra, Sheikhupura, Lahore and Karachi manufacturing sites of the company are located.17
where
major
operations
and
Company perception toward CSR is to only involve into uplifting its social image. There is not much data found that how CSR projected in their mission statement is being implemented by the company and other indicators are ignored as per information available.
www.ici.com.pk http://www.engro.com/
was organized on a cottage based system. Pentagonal pieces were prepared in the factory then were distributed to 1600 villages surrounding of Sialkot. These pieces were stitched together in the homes. In 1995 an international labor organization estimated the workforce round about 100,000. A corporate publication put the figure at 75000. These variations were due to the flexible nature of work. In the world cup year more people stitch the balls to meet the additional demands. About 30% to 50% of the total labor force comprised on women. Estimates of children involved in stitching ranged from 5000 17000. Wages of the stitchers range from Rs. 45 to Rs. 100 for a ful day work. A stitcher could stitch 3-4 balls per day and the ball rate range from Rs. 15 to Rs. 25. The top quality balls have a price of US $100 at the international level. The economic and social condition of the stitching families is very poor and can shock a person. On 1pril 6, 1995 CBS aired a short documentary on the soccer ball industry in Pakistan with a headline CHILDREN AT WORK. Pakistani children produced 36 million soccer balls in a year. Due to the media campaign the Sialkot soccer ball industry started working with two international organizations ILO and UNICEF for the eradication of the child labour. According to ILO by September 2003 about 95% of the Sialkot balls were made without child labour. Nowadays the industry is totally free from the child labour.19 So in one aspect of CSR industry is meeting the demand of it and other indicators are still lacking as per information available.
19
Represantational Approaches Matters: Farzad Rafi Khan Journal of business Ethics (2007) 73:77-89 DOI 10.1007/s 10551-006-9199-x Spring 2006
focused its involvement to the three areas that are most significant to Pakistan and its people: education, health & water. In the education sector of Pakistan UPL is providing funds to the universities like Lahore University of Management Sciences (LUMS). In order to improve the primary education in Pakistan it has also provided financial assistance to the NGOs which are working for the improvement of education like The Citizen Foundation (TCF). UPL is also working on the Unilever International Art Project for Schools. In order to provide health facilities to the people of Pakistan the Unilever Pakistan has maintained long-term partnerships with certain health organizations and supports a wide range of projects. These organizations and projects include the Marie Adelaide Leprosy Centre (MALC), Layton Rehmatullah Benevolent Trust (LRBT) and the Loralai TB Control Program. Unilever also provide support to the water sustainability initiatives. The scarcity of water in Pakistan gives the company an opportunity to provide effective solutions for water sustainability and conservation. In order to show commitment to water sustainability UPL has made partnership with, the Thardeep Rural Development Programme (TRDP).20 For the above mentioned CSR activities and other related initiatives the Karachi based Unilever Pakistan has received the Asian CSR Award which was held in Ho Chi Minh City, Vietnam on 28 September 2007. It was organized by the PVR Centre for Corporate Responsibility at the Asian Institute of Management (AIM) and sponsored by the Chemoil Group.21 From above available information the company is still projecting its contributions as a corporate philanthropist but neglecting the true concept of CSR which is not just building social image but also to improve management practices, environmental concerns and corporate governance.
In this innovative age of ever changing lifestyles, fuelled by the extensive development of technology; consumers have been compelled to change their eating habits. National Foods responds to this challenge of developing innovative food products based on convenience and fast preparation in line with modern lifestyles and yet retains traditional values through its impressive collection of food products.
20
The brand delivers its ultimate promise by consistently delivering value to its consumers. National Foods enriches family relationships by bringing people together for family traditions, feasts, seasonal holidays and of course - everyday life. National Foods is one such company which has dedicated itself to improve the lives of the peoples through providing healthy, innovative foods items that excel in quality and provide value for money. With a range of over 110 products in 12 major categories, it is one of the largest food companies in the business. In order to increase the awareness about the hygienic food and health National Foods host organizes a diverse range of events regularly which includes cooking competitions and food festivals. The company takes all these steps in order to provide free of cost advises to the community for the improvement of their health by getting an understanding about the food stuff. So after getting these insights about the company responses towards its stakeholders it can be said that the company has a positive approach towards the community and is showing its responsible behavior by providing healthy foods and advises related to the health to the community of Pakistan.22 National Foods though performing notable activities related to the health of the community but is ignoring the environmental safety, social posture and financial transparency. All the information disclosed by the company fails to cover the above mentioned areas of being socially responsible company. So the company needs to do sufficient work in the above mentioned concerns in order to enlist itself in the socially responsible companies. They did not address CSR challenges such as reducing the environmental impacts of their products, embedding responsible business practices across their supply chains, promoting employee health and wellbeing.
22
http://www.nfoods.com/nfl/health_nutrition.asp
Pampers Hospital Education Program educates young mothers about baby care practices, immunization and vaccination. The program involves 1200 nurses, operates in 500 hospitals and reaches close to 300, 000 mothers. Pampers Baby Care Clinic Program educates young mothers about baby care practices, immunization and vaccination by going to their doorstep. The program has a reach of 700, 000 mothers in 30 cities. Always School Education Program educates female students about good health & hygiene practices. The program reaches 250,000 girls, 1400 schools/ colleges, in 3 cities of Pakistan. Safeguard School Education Program educates 5-9 years old children about basic hygiene habits and importance of washing hands in 5000 schools, 20 cities of Pakistan, reaching close to 2 million children. Ariel Help the Needy Program provides medical equipment to about 30 institutions for disabled children. P&G-HOPE School Program runs 23 schools in Karachi and rural Sindh, providing class-1-5 education to close to 1000 children.23
Company is again practicing corporate philanthropy and ignoring the other indicators as per information available. They did not address CSR challenges such as reducing the environmental impacts of their products, embedding responsible business practices across their supply chains, promoting employee health and wellbeing.
GEO TV:
GEO TV was established in May 2002. Its test transmission started on 14th August 2002 on the PAS 10 digital satellite. Its regular transmission started on 1st October 2002. Geo TV is the first South Asian Urdu language channel to provide content comparable with world-class television broadcasters. Geo is the fastest growing TV Channel in Pakistan with ratings exceeding all satellite delivered TV channels in the market Geo has the widest distribution on cable systems in Pakistan with 100% carriage within 90 days of launch. GEO came in the market with a vision to become the voice of freedom from the Asian subcontinent. It planned to highlight the issues of concern and the cultural richness of its people through information, discussion and entertainment. GEO has tried to disseminate transparency of responsibility in order to ensure its position as the most credible and meaningful source of information, through quality programming based on issues. In order to create viewer loyalty and response GEO is committed to provide such an entertainment to the audience that they can relate to. In order to maximize viewer ownership GEO has an aim to forge an alliance amongst its three stakeholders - viewers, advertisers and shareholders. GEO is aware about the importance of the human resources and invest in the human resources because it recognizes it to be the foundation upon which the GEO future will be built. It is this very foundation that will allow GEO to attain and sustain a leadership position, thus fulfilling 24 the promise associated with its creation. Apart from this vision it is the fact that government of Pakistan banned its transmission because of the violation of code of conduct. GEO was banned because it was not fulfilling the prerequisite of code of conduct the Pakistan Electronic Media Regulatory Authority (PEMRA). GEO was banned in the country for almost seventy five days because the competent authority was of the point of view that GEO do not provide true entertainment to its viewers. GEO was declared as the promoter of the harassment, fear and depression in the society by disclosing and presenting such information that are legally wrong. So due to the lack of social responsibility displayed by the GEO the competent authority banned its transmission.
In order to regulate electronic media in Pakistan in 2007 the government of Pakistan made certain amendments in the PEMRA ordinance 2002. In order to ensure the following points the government of Pakistan took an action and president passed the ordinance.
23 24
http://www.pg.com.pk/ http://www.geo.tv/
1. improve the standards of information, education and entertainment; 2. enlarge the choice available to the people of Pakistan in the media for news, current affairs, religious knowledge, art, culture, science, technology, economic development, social sector concerns, music, sports, drama and other subjects of public and national interest; 3. facilitate the devolution of responsibility and power to the grass-roots by improving the access of the people to mass media at the local and community level; and
4.
ensure accountability, transparency and good governance by optimizing the free flow of information; 25
Pakistani government and the general public have criticized the GEO because in their views the channel promotes sensationalism in order to increase revenue and popularity. Furthermore, the channel has been seen as reporting primarily negative news regarding Pakistan, resulting in a generally depressing and pessimistic viewer ship experience.26Pakistani government has criticism for the channel's coverage of the 2005 earthquake in Kashmir, as GEO's coverage of the tragedy included disturbing scenes of victims and disaster zones. The channel's insistence that it is merely exercising freedom of speech is often criticized for being ignorant of ethical limitations and normal codes of conduct and behavior.27 The government of Pakistan had banned transmission of GEO NEWS because in the view of government GEO was not acting upon the above mentioned points and was becoming a reason of frustration, depression, and anxiety among the public by disclosing unnecessary information in quietly disheartening ways which shows its irresponsible behavior and violation of CSR practices. In the scope of CSR index management practice and environmental concern there is no data available for evaluate its CSR practices, on the other hand social posture is badly suffered due to its violation of code of conduct.
25 26 27
http://www.pemra.gov.pk/pdf/pemraordinance2007.pdf
http://www.chowk.com/ilogs/64207/47408
http://en.wikipedia.org/wiki/Geo_TV#_note-2