july-august 2008 issue 04

a specialized csr journal

10 cover story
vc analysis:
rooting out detractors

14 entrepreneurship
developing entrepreneurs
in your organization:
the trade off

17 children's rights
child labour: a tragedy

20 alternative measures
happiness-spirituality as
the fourth bottom line

32 enabling empowerment
the care and growth leadership
model and empowerment

36 futuristic angle
future scape: an organization of one

22 csr talk:
clean development mechanism

CSR of the company, by the company, and for the people

A Publication of Asiatic Public Relations Network (Pvt.) Ltd.
contents
Editor-in-Chief
Zohare Ali Shariff
regulars Editorial Director
Khadeeja Balkhi

Managing Editor
6 global briefs Rutaba Ahmed
people - planet - profits
Research, Distribution & Development
22 csr talk Raza Tahir
Mehfooz Aleem
clean development mechanism
Creatives
28 innovative csr toolkit Kamran Rauf
the sustainable value approach Shireen Lotia
Umair Anwar
30 breather Reprint
strategic humour In line with our mission,
we encourage reproduction of
43 book in focus material, provided tbl and content
partners are given credit
mad, sad and bad management
Publisher
44 musings Asiatic Public Relations Network
do more (Private) Limited
Printed at
Nikmat Printers, Karachi
features Disclaimer
The views expressed in tbl are the
authors’ and not necessarily shared by
tbl and/or APR
10 cover story
Declaration
vc analysis: rooting out detractors From the office of
District Coordination Officer,
14 entrepreneurship City District Government Karachi
developing entrepreneurs in your organization: the trade off NO.DCO/DDO/LAW/CDGK/109/2007,
Karachi
Dated May 22, 2007
17 children's rights
child labour: a tragedy

20 alternative measures
happiness-spirituality as the fourth bottom line

24 carbon disclosure survey Subscription, advertising and

confronting climate change: supply chain leadership collaboration feedback at:

32 enabling empowerment tbl: triple bottom-line

the care and growth leadership model and empowerment
Address: A-7, Street 1,
34 case study Bath Island, Clifton,
behavioural safety at workplace
Karachi, Pakistan.
36 futuristic angle Tel: (92-21)-5837674, 5823334
Fax: (92-21)-5867103
future scape: an organization of one
E-mail: tbl@apr.com.pk
38 indus basin irrigation system report Web: www.triplebottomline.com.pk
indus basin irrigation system of pakistan

40 opinion: consumer protection Subscribe to a full year of tbl

consumer: king or slave? (6 issues) at the special rate of Rs.1,000 and
save the cost of an issue.
42 5 minutes with the ceo
csr: 5 minutes with the ceo If you wish to subscribe to tbl, or
unsubscribe, please write to us at
tbl@apr.com.pk

july-august 2008 1
 The term ‘Triple Bottom-Line’ (TBL), which translates
into “People, Planet, Profits,” captures an expanded
spectrum of values and criteria for measuring
organisational (and societal) success - social,
environmental and economic.

Through our masthead we personify the term TBL.

Essentially, our ‘bottom line’ is a grey bar with a
burgundy border which runs through the masthead,
at some points overlapping the letters and running
under them at others. Here ‘t’ stands for triple and is
represented through the three shades of the letter.
The ‘b’ stands for bottom and it sits below our grey
line with the line going through it - since this
magazine is a below the line activity, the two gel in
together. The ‘l’ stands for line and the letter sits
comfortably on top of the grey ‘bottom’ line.
acknowledgement
The tbl team expresses its profound gratitude to
the companies whose names appear below, for
their agreement to support this publication.
Bringing out a knowledge-based publication like
tbl involves considerable effort and costs. It may
not have been possible to bring out tbl in its
present format without the invaluable support
and contribution of our Founder Sponsors.
Through their support to tbl our Founder
Sponsors have confirmed that they share our
Mission of disseminating triple bottom-line

mr tbl knowledge to a diversified group including

corporate, social development and general
business groups. We believe that helping to
spread awareness of true CSR is in itself an
element of CSR. By becoming our sponsors, the
following companies have taken that vital first
step with us in our journey to facilitate awareness
and understanding of true CSR in our country.

National Foods Limited

Founder Sponsor

Mr. Tanveer B. Lone is indeed a busy man, laden with

his struggle for the truth in the Sustainability industry.
His first name, Tanveer, according to our wonderful
Ferozsons Urdu-English dictionary means
'illuminating'. We feel he is sometimes the seeker of
enlightenment, and at others, the seemingly lone
bearer. Driven towards his destination – the true light
English Biscuit Manufacturers
of CSR – he sometimes feels like a lone voice buried (Private) Limited
amidst the complex factors he confronts on the way.
Yet as he sets forth, oft-alone on this journey, he knows Founder Sponsor
he will meet companions along the sub-paths his
journey takes, merging at destinations common with
him. There will be occasions where we can all relate to
him. At times, though his capitalist-training-bred
financial focus may fluster us and his understanding
towards disseminating the true implications of the
triple bottom-line. Watch out for Mr. TBL, as he shares
his views and thoughts in articles and other features in
this issue! Feel free to share ideas with Mr. TBL that
might help clear the oft-murky waters he'll encounter
in his expedition at tbl@apr.com.pk

2 www.triplebottomline.com.pk
 editor’s note

please the people

I
received a call a few days ago from a gentleman in
a successful private sector organization, who was
first of all kind enough to compliment us on
bringing out TBL. Then he expressed his concern over
the poor state of the public places in Korangi Industrial
Area in Karachi and especially of the medians on the
main roads and the land on either side. He pointed out
that these have been earth, dust and rubble forever and
he wondered why all the industries in the area could
not spend some money to beautify the area.
The ugliness he highlighted is by no means restricted
to Korangi Industrial Area. It is all around us. Several
times different city governments have solicited the
corporate sector's participation for the city's
beautification. The response has generally been
lukewarm and unfortunately more dictated by
marketing concerns than by a spirit of CSR. Some
prominent roundabouts and road intersections were
'adopted' - a little landscaping, prominently
overshadowed by branding claiming the credit. Not
quite what the city needs. Especially as the
landscaping and plantation is seldom maintained.
Two questions come to mind. First, is such activity
corporate philanthropy or corporate social
responsibility? Second, can such activity not be
improved and made sustainable?
forth. In this respect a happier population if you will,
should be a CSR desirable. Do serene and beautiful
environs contribute to the people's level of happiness?
If you agree they do, then city beautification falls into
that overlap territory of philanthropy and CSR.
Some would argue this is too general a contention.
Well, this brings me to the second question posed
earlier. The city's beautification and its maintenance
thereof cannot be the responsibility of one or a few
companies. As we have seen, this is not sustainable. So,
I would like to suggest here that perhaps the various
associations, trade bodies and chambers of commerce
and industry which represent the corporate sector,
should take the lead and undertake city beautification
as large groups, rather than as individual companies.
The funds available will be substantially more and by
engaging suitably qualified landscaping companies,
the responsibility of maintenance will also fall to
specialists who can be made fully accountable.
Thus, while individual companies will not get
whatever dubious credit or mileage they expect from
branding roundabouts, the corporate sector as a whole
will get a much prettier and harmonious city, with a
citizenry that is ready to give back much more. Is this
wishful thinking or the practical way forward?

To answer the first, while some examples of corporate Sincerely,

largesse are clearly philanthropy, others are borderline
cases overlapping into the realms of CSR. This issue of
TBL is about people - one of the triple bottom lines.
The general public as consumers or employees or
vendors and suppliers, constitutes people. So I would
tend to argue that anything done for the betterment of
the people will contribute to their giving back more to
the corporate sector, in terms of higher productivity as Zohare Ali Shariff
employees, more purchasing as consumers and so Editor in Chief

This publication is being sent complimentary to 1500 decision-makers and opinion-formers in the corporate sector, the government, NGO
sector, international institutions and academia. Recognising that your sphere of work has the potential to compliment and reinforce the
essence of our mission, we have taken the liberty to present tbl to you. It is also available at selected outlets.

We would love to hear from you. Please do contact us at tbl@apr.com.pk with your thoughts, feedback and input from your corporate or social
practices.

tbl strongly believes in knowledge dissemination and sharing. Please feel free to share tbl contents with your peers and teams - of course we
know you’ll give tbl the credit when you share our work.

july-august 2008 3
 letters to the editor

I
read the 3rd edition of TBL and I want to congratulate you and your whole team for
bringing out a journal that is not only different from stereotype corporate journals but
actually has material to educate people.

All the best for future editions!

Fahad Qadir
Public Affairs and Communications Manager
The Coca Cola Export Corporation
Lahore

T
hank you for sending us TBL. We found the material very informative especially for
our resource centre.

Wish you good luck for your future initiatives.

Farah Naz
Programme Officer Resource Center
Sahil
Islamabad

T
hanks for sending me a copy of TBL. I enjoyed reading it. What I liked the most
about it is the space it has created, for CSR people, social entrepreneurs, and
consultants like myself. I think you people have created a platform, whereby people
from different walks can come and interact with a common wavelength. That is a great
outcome.

Congratulations!

Best wishes,

Ali Salman
Senior Partner
Development Pool
Lahore

Dear Readers,

Thank you for sharing with us your valuable feedback and views on TBL.

Mr. Qadir, we appreciate your compliments on TBL. In future issues, we will continue to
publish material that is informative and insightful to a diversified group.

Ms. Naz, thank you for taking the time to write to us and for your compliments on TBL.

Mr. Salman, we appreciate your thoughts on TBL. TBL will continue to serve as a
platform for a diversified group of people to interact and create wider awareness about
CSR.

We hope that TBL will continue to serve as a vehicle for disseminating triple bottom-line
knowledge and creating wider awareness and understanding of CSR through our readers’
active contribution and debate.

4 www.triplebottomline.com.pk
welcome on board
The tbl team is honoured to introduce our editorial
advisory board. Comprised of diverse leaders and
practitioners, our goal is that the board will steer
our efforts to their highest potential. In each issue of
tbl, we will highlight a member of our editorial
advisory board. Ayesha Tammy Haq
Member

Corporate lawyer, legal and media consultant.

Concurrently a freelance journalist and host of a
weekly current affairs television programme. Based
in Karachi.

Anwar Rammal
Chairperson

Chairman of Asiatic Public Relations (Private)

Limited, Pakistan’s leading communications and PR
agency, affiliated internationally with Hill & Habiba Hamid
Knowlton. Also Chairman of JWT, Pakistan. Based in Member
Karachi.
Founder of Saracen Consulting, a corporate
governance and responsibility consulting firm.
Currently articulating the Dubai Model of sustainable
Khadeeja Balkhi
Executive Member
development. Based in Dubai.

Khadeeja's experience spans

from strategizing, implementing
and documenting sustainability
programmes to hands-on multi-
party programme
implementations; the TBL
platform is among her favourite initiations.
Abrar Hasan
Her business journalism career took root in South Founder Sponsor Member
Carolina and Jeddah. She has published over 90
articles in Arab, Pakistani, American and other Chief Executive of National Foods Limited,
publications. Pakistan’s pioneering multi-category food company.
Innovative businessman and industry leader. Based
She composed the first Pakistani company's, in Karachi.
multiple-award winning Sustainability Report. In
addition to working with companies and NPOs,
Khadeeja is Chair, RSD Foundation; Vice Chair of
the CSR Standing Committee, FPCCI and President,
CSR Association.

Vivian Lines
Member

President and Chief Operating Officer of Hill &

Knowlton’s Asia Pacific Region and concurrently
Khawar Masood Butt President and CEO Southern Asia. Based in
Founder Sponsor Member Singapore.
Chairman and MD of English Biscuit Manufacturers
(Pvt.) Limited, Pakistan’s leading biscuit company.
Entrepreneur and business visionary with a firm
commitment to CSR. Based in Karachi.

vision and
Vision: To steadily facilitate the germination of sustainable visions for
organisational growth, sharing specific triple bottom-line knowledge and tools

Mission Statement: To disseminate triple bottom-line knowledge to a

mission diversified group including corporate, social development and general business
groups primarily through a specialised journal, expanding in accordance with
organisational capacity and market readiness

july-august 2008 5
global briefs
PEOPLE
Remake a Living: The Jobs
Are Blowin' in The Wind
Turbines are sprouting like
wildflowers after rain in Texas,
California, Iowa, Minnesota,
Washington, Oregon, Colorado,
Illinois, and Oklahoma. Not to
mention China.
As the hype about "green" jobs has
grown, the wind-energy industry
has done a pretty good job of
reporting accurately on their job
creation. Industry analysts estimate
that wind energy currently
employs about 50,000 domestic
workers, both on-site at wind farms
and down the chain of products
and services needed to build,
transport, install, and operate all
those turbines.
The number of jobs is growing
quickly and wind companies could
support as many as 500,000 jobs 20
years from now. That's according to
a U.S. Department of Energy report
that outlines a plan for the nation to
get 20 percent of its electricity from
wind power by 2030.
The World Wind Power Asso-
ciation says that wind already
provides 19 percent of electricity
production in Denmark, 9 percent
in Spain and Portugal, and 6
percent in Germany and Ireland.
The fastest growing job title in the
wind-energy world might just be
wind technician. Community
colleges across windy states are
gearing up to train big incoming
classes.
Technicians perform a wide variety
of tasks in the construction,
operation, and maintenance of
wind turbines. Requirements
include a year of mechanical
experience and a basic
understanding of hydraulics and
electrical systems.
6 www.triplebottomline.com.pk
Several hiring authorities recom-
mend that technician positions are
great career development starting
places for people interested in the
wind power industry. After gaining
some experience in this field,
technicians can explore education
in technical/engineering fields,
sales, and marketing, management,
finance, and regulation professions.
Shared by Grist, an online environmental news magazine
Green Banking Innovation
Award
China's first-ever award specifically
focused on green banking and
sustainable finance, called the
Green Banking Innovation Award
was given to China Industrial Bank
in July this year. This is a bank that
promises to integrate social
responsibility and sustainable
development into its strategy, and
has implemented numbers of
activities.
At the event, Xiaogang, Director of
Green Watershed, said that: "Green
Banking is defined from two
dimensions. Internally, a green
bank often improves resource
efficiency and encourages
employees to participate in
environmental activities. Externally
and more importantly, it has to
minimize indirect environmental
impacts through financing
activities, and explores new
opportunities from environment-
related business." The jury
committee, consisting of eight
NGOs, developed an approach to
assess the overall performance of
nominated banks based on
materials submitted by banks as
well as public information.
The award promotes banks and
other financial institutions to
consider their roles in environ-
mental protection. This initiative
shows that Chinese NGOs are
using more diversified approaches
to advocate sustainable
development, and highlights the
efforts of Chinese banking sector on
environment.
The Green Banking Innovation
Award is backed by Green
Watershed, Friends of Nature,
Institute of Public & Environmental
Affairs, Green Earth Volunteer,
Global Environmental Institute,
Civil Society Watch, China
Development Brief and Green
Volunteer League of Chongqing.
SynTao, a leading consulting firm
in China on CSR, was an advisor to
the award.
"Green Rating" of Colleges:
Princeton Review
The Princeton Review recently
released its new "Green Rating" of
colleges for 2009 - a measure of
how environmentally friendly,
responsible, and committed the
institutions are. The Princeton
Review developed the Green
Rating, which is a numerical score
on a scale of 60 to 99, in
consultation with ecoAmerica , a
non-profit environmental
marketing agency. The Green
Rating was based on data collected
from the schools in the 2007-08
academic year concerning their
environmentally related policies,
practices, and academic offerings.
The review rated 534 U.S. colleges
on their commitment to environ-
mental responsibility, provision of
"healthy and sustainable" campus
life, and preparation of students for
"citizenship in a world defined by
environmental challenges." The
review graded on factors including
energy use, buildings, transpor-
tation, food, recycling, and classes.
The institutional survey for the
rating included questions on
everything from energy use,
recycling, food, buildings, and
transportation to academic
offerings and action plans and
goals concerning greenhouse gas
emission reductions. The highest-
scoring schools, in alphabetical
order: Arizona State; Bates (Maine);
Binghamton (N.Y.); College of the
Atlantic (Maine); Emory (Ga.);
Georgia Institute of Technology;
Harvard (Mass.); U. of New
Hampshire; U. of Oregon; U. of
Washington; and Yale (Conn.).
Arizona State and U. of New
Hampshire.
The Green Rating scores appear in
the website profiles of the 534
schools and are posted on The
Princeton Review's website.

PLANET
ECO Pedal System
Improves Fuel-efficiency
Want to be an eco-driver but can't
seem to keep the pedal off the
metal? Nissan Motor Co.'s recently
announced its new "ECO pedal"
system, which pushes back against
excess foot pressure to encourage
fuel-efficient driving. It makes the
gas pedal press upward when it
senses motorists are speeding up
too quickly. It calculates the most
efficient rate of acceleration in a
vehicle based on how fast fuel is
being burned and other factors and
causes the gas pedal to push back
to alert overzealous drivers.
The ECO accelerator will be
installed in some Nissan cars
starting next year and be
accompanied by a real-time dash-
board display of fuel consumption.
Nissan says the ECO pedal could
help drivers increase fuel efficiency
5 to 10 percent, and the device can
easily be switched off by those who
don't like Big Brother watching
their lead foot.
Gorilla Census Finds
125,000 More Western
Lowland Gorillas than
Expected
A new gorilla census in the
Republic of the Congo has found
about 125,000 more western
lowland gorillas than expected
living in the northern part of the
Montana-sized country, effectively
doubling the known population of
the species. Western lowland
gorillas are one of four gorilla
subspecies, all of which are in
danger of extinction. "These figures
show that northern Republic of
Congo contains the mother lode of
gorillas," said Steven Sanderson of
the Wildlife Conservation Society.
However, very real threats to the
gorillas remain, including hunting,
disease, and habitat loss. "Far from
being safe, the gorillas are still
under threat from Ebola and
hunting for bush meat. We must
not become complacent about this.
Ebola can wipe out thousands in a
short period of time," said Emma
Stokes of the Wildlife Conservation
Society. A separate study released
this week by the International
Union for the Conservation of
Nature found that almost half of
the world's 634 kinds of primates
are in danger of extinction due to
deforestation and hunting.
Shared by Grist, an online environmental news magazine
Climate Change Adaptation
Report: WBCSD
The World Business Council on
Sustainable Development (WBCSD)
has published 'Adaptation: An
Issue Brief for Business' which
briefly explains the potential
impacts of climate change on
business and associated risks and
opportunities for a number of
sectors including tourisms, retail,
logistics and manufacturing.
Adaptation refers to "taking the
right measures to reduce the
negative effects of climate change
(or exploit the positive ones) by
making the appropriate
adjustments and changes".
The report emphasizes that
adaptation implementation should
be assessed as it could generate
tangible and short-term benefits for
business operations. It could also
yield benefits for local commu-
nities. Key drivers of adaptation
planning or implementation
include: competitive advantage,
cost savings, liability management,
investor pressure. The WBCSD
highlights that minimizing risk and
leveraging opportunities require
the building of adaptation
strategies into risk management
and business planning processes
across the value chain.
According to the report, the
impacts of climate change are still
not fully understood. That is why
the effects of climate change should
be evaluated on a sectoral and
geographic basis. The report states
that: "From a business perspective,
climate change is likely to affect the
location, design, operation and
marketing of infrastructure,
products and services. From a
human perspective, climate change
will have socioeconomic
implications for workforces and
markets."
Biodiversity Bank
Established for Rainforest
Conservation
A biodiversity bank has been set up
to raise funds to protect and
conserve the biodiversity-rich
34,000 hectares of Malua Forest
Reserves in the east coast of Sabah.
The rainforest is inhabited by the
Sumatran rhinoceros, about 1,000
orang utans and other rare animal
species. The Malua Wildlife Habitat
Conservation Bank, or Malua
BioBank will be jointly managed by
New Forests and the state
government.
The Malua Wildlife Habitat
Conservation Bank (Malua
BioBank) is a first-of-its-kind
business model for investing in
tropical rainforest conservation on
a commercial basis. Located next to
one of the last areas of virgin
rainforest in Sabah, Malaysia on the
island of Borneo, the Malua
BioBank will restore and protect
34,000 hectares (80,000 acres) of
critical orangutan habitat called the
Malua Forest Reserve.
The Malua BioBank project will
entail rehabilitation of the Malua
Forest reserves and sell Biodiversity
Conservation Certificates, with
each certificate offered at US$ 10,
representing 100-square meters of
rainforest restoration and
protection. The certificates will be
registered in the TZ1
environmental registry and will be
tradable, or can be retired.
Nothing like this has ever been
done for the biodiversity in tropical
rainforests. The sale of certificates
will make rainforest rehabilitation
and conservation a commercially
competitive land use. By figuring
out a commercial model for
biodiversity conservation in the
tropics, you effectively increase the
pool of possible funds for rainforest
conservation.
july-august 2008 7
PROFITS
What Gets Measured
Gets Done
The International Council of Forest
and Paper Associations (ICFPA), in
association with the World
Business Council for Sustainable
Development (WBCSD) and the
World Resources Institute (WRI)
recently announced the
development of a methodology for
calculating greenhouse gas
emissions from pulp and paper
mills. This innovative calculation
tool will serve as a simple unified
industry approach to emissions
accounting and is an example of the
forest products industry taking the
worldwide lead in developing
simple, transparent methods to
calculate greenhouse gas emissions.
ICFPA President W. Henson Moore
(also President and CEO of the
American Forest & Paper
Association) said that: "The tool can
be used on any scale, from
determining emissions from a
specific mill, from a specific
company, or for our industry as
whole."
The collaborating institutions
recommend that governments and
other organizations recognize the
tool they developed as the
appropriate method for calculating
greenhouse gas emissions for pulp
and paper mills. Other industry
sectors, including cement and
aluminum, have recently adopted
similar methodologies utilizing the
GHG Protocol to calculate total
industry as well as factory specific
emissions.
This process provides a model for
other industry associations
developing sector-specific
greenhouse gas calculation tools,"
said Jonathan Lash, WRI president.
The tool is based on protocols
8 www.triplebottomline.com.pk
previously developed by WRI and
the WBCSD, and was peer
reviewed and endorsed by their
project, the GHG Protocol.
According to WBCSD President,
Björn Stigson: "This new calculation
tool will enable the forest and
paper sector to collect and report
accurate data in a unified way, thus
helping to achieve comparability
worldwide".
China's Renewables Sector
Booming: The Climate
Group Study
A study by nonprofit The Climate
Group reveals that China's
renewable-energy sector is growing
substantially. China is the world's
largest carbon emitter and builds
about one coal-fired power plant a
week on average. The country's
renewables industry is also setting
records. In 2007, China's $12 billion
investment in renewables was
second only to Germany's; by 2009,
China's renewables-investment is
expected to be the world's largest.
According to the study, China
already has the world's largest
installed capacity for renewables
generation, due in large part to the
huge Three Gorges Dam. The
report states that China is the
world's fifth-largest wind-power
producer, the biggest manufacturer
of both solar panels and solar water
heaters, and will soon be the
world's top exporter of wind
turbines. "Everybody sees China as
this monster polluter, but it is
doing so much more than that,"
said Changhua Wu of The Climate
Group. "China has got the green
message."
Advocates Pushing LEDs
into the Spotlight
Compact fluorescents have had
their time in the sun; it's time to
herald the era of LEDs, say
advocates. Light-emitting diodes
are bright, extremely long-lasting,
über-efficient, and can color-shift
by remote control (fun!). The bulbs
shine in many traffic lights, colored
the Times Square ball on New
Year's Eve, may soon light up the
Empire State Building, and are
becoming the bulb of choice for
commercial lighting. Many bulb
manufacturers expect that they'll
soon widely light up households as
well; so sure is Philips Lighting, in
fact, that it is spending no R&D
money on CFLs, focusing solely on
LEDs. The downside, however, is
price. A 60-watt incandescent bulb
costs about $1, a comparable CFL
$2; Philips will introduce its
equivalent LED bulb in September
at the eyebrow-raising price of
$107. That will no doubt drop as
time goes on, but some experts say
the barrier is high enough that
LEDs' reach will remain limited.
Shared by Grist, an online environmental news magazine
Full Steam Ahead
Google.org, the philanthropic arm
of the search giant, has announced
a $10.25 million investment in
geothermal energy technology. The
money will back two start-up
companies that specialize in
enhanced geothermal systems
(EGS), the process of pumping
water underground to crack hot
rocks and use the resulting steam to
power a turbine and create
electricity. "EGS could be the 'killer
app' of the energy world," says Dan
Reicher of Google.org. "It has the
potential to deliver vast quantities
of power 24/7 and be captured
nearly anywhere on the planet.
And it would be a perfect
complement to intermittent sources
like solar and wind." Geothermal
currently supplies a mere 0.5
percent of global energy supply
and 0.4 percent of U.S. supply. The
investment is a part of Google.org's
RE<C effort, which has an end goal
of making renewable energy
cheaper than coal.
Shared by Grist, an online environmental news magazine
Compiled by Rutaba Ahmed
 cover story

vc analysis:
rooting out detractors
by khadeeja balkhi
for tbl

The rather significant ass-u-m-ption in using the term value

chain (VC) as opposed to supply chain is that only processes
or people that add value to a product or service are
considered to be a part of the value chain. In reality, this is
often not the case, especially where middlemen often are
observed to be detracting, rather than adding, value.

Which, is precisely where the value chain analyses

methodology can fit in, first of all in developing economies
such as Pakistan's: Eliminating the people who detract

10 www.triplebottomline.com.pk
disproportionate economic gains in
relation to their roles in the VC.
Creating Stakeholder
Value Along VCs
CSR Value chain initiatives
examine every stakeholder along
the supply chain (including the
planet as a stakeholder), exploring
where mutual value initiatives may
be untapped. Following the
stakeholder mapping exercise,
companies must analyse the value
exchange and honestly evaluate
where they can manage their
operations to add more value to
parties involved in a particular
process.
Through even a basic study, the
company may often find that
through its current role, it is not
adding value to significant VC
actors; or worse, that it is playing a
role in an exploitative process;
albeit sometimes without being
cognizant of it. Hence the Nike
child labour and similar scandals.
Clearly it is wise for companies to
initiate such studies internally and
act themselves, before the media or
civil society begin highlighting the
weak links in their supply chains.
Why Value Chain
Analysis?
In addition to the obvious synergies
manifest in the areas of producti-
vity, business development and
market access, from the social or
macroeconomic progress aspect,
developing country populations
seem to have much to gain from
Value Chain Analysis (VCAs) since
they are often along the down-
stream end of global value chains, if
at all a part of them.
Pakistan's largest export revenue
generating industry, the hailed,
albeit troubled textile industry,
contributes to less than 3 percent of
its global value chain. Although
until recently, Pakistan was still
confirmed as the fourth largest
producer of cotton in the world.
The nation's output was until 2007
close to 8.5 percent of the total
global cotton production, according Development (AGRIDEA). For
to the Pakistan Textile Journal. instance, farmers or sharecroppers
Pakistan's peak production was in that live in generations of debt,
2005, contributing 14.3 million bales seemingly cannot exert any
of cotton to the global cotton VC, negotiation power in situations
according to the Textile Institute of where the bonded labour label
Pakistan. It's been a negative trend would be a euphemism for their
since, with a 13.4 percent decrease circumstances.
in our output the next year.
"Some actors are stuck in value
Clearly, value addition to our chains that exploit low income
agricultural produce remains possibilities," Roduner asserts in a
relatively limited. The disparity report based on the insights gained
between our production and our during the online debate on the
role in the global VC may be where forum 'Value Chains in Rural
a localized beneficiation imperative Development'.
kicks in (see beneficiation box on
next page). Why the apparent "Value chain actors are those who
tangent? We're small global VC directly deal with the production,
players, even if vicariously through processing, packaging, trading etc.
our larger industries: hence our of a product," Roduner clarifies.
negotiation powers tend to remain "Usually they own the product for
limited. some time as it travels along the
chain."
Reforming Political Financing: Anywhere on
the Horizon for Pakistan?
Over eleven years ago, in 1997, the Thai Constitution introduced new
party, political finance and election laws. Under the Organic Law on
Political Parties and the Organic Law on Elections, it empowered an
independent Election Commission of Thailand (ECT) with exacting
oversight authority. These laws and the Commission were set up to
regulate party operations and accounting practices to enhance
transparency and accountability within the party system. A key
objective of the legislation was also to strengthen parties as
ideological bodies and broaden their membership bases - with the
aim of reducing the prevalence of patronage and vote buying. Now
that's a great euphemism, especially if applied to Pakistan's current
political context.
Hence all the more critical for us to Highlighting the macro-
examine fair practices throughout development angle, Roduner adds
our end of the value chain, where that "by strengthening one actor in
the need for global price a value chain there is the possibility
competitiveness urges a blind eye of creating competitive advantages
towards ideas such as fair wages. for the whole system." There's a
positive ripple effect here and
Actors, Exploitation several groups of stakeholders
competing in local or global
and Opportunities markets can benefit from such
"More important than belonging to advantages.
a value chain is the role people play
in it, i.e. their negotiation power in As a nation, being a part of the
the value chain," reinforces Daniel downstream global VCA means
Roduner of the Swiss Center for that Pakistan's factories or
Agricultural Extension and Rural businesses negotiation influence or
july-august 2008 11
 global leverage is dwarfed by the
buyers at the end of global supply
chains. The multinationals and
other large corporations at the end
of global supply chains
unabashedly flex their muscle over
the factories whose very viability is
dependent on the orders from the
macho end of the supply chain.
Remaining Cautious
Apparently enough, value chains
are intrinsically dynamic,
constantly evolve and can swiftly
change. Any value chain analysis
faces the limitation of providing a
static picture, a snapshot at one
moment in time, Roduner cautions.
VC analysts or other practitioners,
he adds, must learn to supplement
VCA methodologies with analytical
tools that help them understand
these dynamics and tendencies.
Hence, VC actors themselves need
to learn the skills to explore their
value chains and how markets are
evolving, so that they too can
evolve and remain competitive.
People only temporarily a part of
the value chain, such as
development agencies, must be
careful to structure required VC
interventions that nurture
entrepreneurial solutions along
value chains and do not stifle them.
As with all tools, VCAs must have
strict metrics to measure success.
The Foreign Investment Advisory
Services, for instance centres its
success measurement on increased
competitiveness in global value
chains and inward investment
promotion.
Developing Economy
Examples
The Indian government introduced
its own carpet labeling initiative,
Kaleen, in response to European
consumer awareness of child
labour in the South Asian carpet
industry. Initially civil society
groups introduced the 'Rugmark'
initiative in response to demand for
human rights along VCs. Carpet
exporters perceived 'Rugmark' as
foreign intervention and overly
stringent. So they initiated 'Kaleen',
their own industry-wide, self-
regulated code of conduct
administered by the quasi-
governmental Carpets Export
Promotion Council and a national
monitoring committee chaired by a
government representative.

CSR Buzzwords
Examining Beneficiation Prospects in Global (and Local) Supply Chains
Among the buzzwords in the 'real' world of CSR is
anything related to value chains. This is old news
for many, perhaps particularly the organized
development sector. Michael Porter articulated his
value chain model in 1985, mainstreaming it via his
best-seller, Competitive Advantage: Creating and
Sustaining Superior Performance.
Many have since successfully run with the idea.
And there are plenty of exciting, relatively newer
manifestations of value chain-based CSR
opportunities.
For instance, beneficiation. In the inclusive
economic development or CSR context, the term
describes the proportion of the value derived from
asset exploitation which stays 'in country' and
benefits local communities. We didn't just make this
up: the beneficiation idea was inspired from the
series of processes through which ore extracted
from mining is reduced to particles that can then be
separated into mineral and waste. The former is
suitable for further processing or direct use, the
next series of value addition processes.
Since the concept took root in the extractive
industry, we'll take the diamond industry as an
example. Beneficiation would advocate that the
cutting and polishing processes within the diamond
value chain should be conducted in the same
country as they were mined, to maximise the
industry's local economic contribution.
The case, however, is often that the countries with
the mines process the 'waste' and the valuables
extracted are shipped and processed within the
company's country of preference. The latter is often
developed countries with the technological
manufacturing already in place. Beneficiation would
contend that while the company is investing its
reaping mining expertise -often developing- country,
it must also invest in setting up further processes of
its value chain in the host country: thereby truly
adding value via employment, technology transfer
etc. to its extractive initiatives in the developing
country.
Truly Local Economic Growth
The beneficiation philosophy can be further
narrowed to fit non-multinational perspectives,
focusing on bringing economic growth to the local-
most or rural levels. For instance, for a Pakistani
agri-based manufacturer, the CSR VCA would
explore how to retain or shift select processes
upstream. Upstream of a manufacturer means
closer to the farmer, and unfortunately in our case,
closer to dire poverty. Where there is poverty in a
value chain, the CSR Value Chain Analyst sees

12 www.triplebottomline.com.pk
 opportunity, although not without caveats.
If a set of people, e.g. sharecroppers, are adding
value to a supply chain and not being fairly
compensated for it, it is, (over-)simplistically put, a
matter of identifying where that value is usurped
and passing it on to the source(s) of value addition.
Even if social dynamics including the feudalistic
reality complicate such a solution-process infinitely,
hope is still visible, with successful examples
serving as motivation in the face of ongoing
frustrations.
For instance, in a globally notorious industry, the
timber industry, Ghana managed to institute a law
that stipulates legal agreements with communities
that live where timber companies cut wood. This is
a progressive step for an industry that tended to
subtract environmental and social value from local
communities. Instituted in the 1990s the regulation
stipulates that companies tendering for timber
cutting permits would be assessed in terms of their
respect for the social and environmental values of
local residents.
Under the new law, which came into operation a
decade ago in 1998, logging companies are
required to secure a 'Social Responsibility
Agreement' with the customary owners of the land.
This agreement follows a standard pattern, to
include a code of conduct for a company's
operations - guiding environmental, employment
and cultural practices - and a statement of social
obligations, which is a pledge of specific
contributions to local development, seemingly akin
to Pakistani laws for exploration companies. Each
agreement must be fully negotiated with the local
community. There is a strict procedure for
developing an Agreement with local representatives
and the district forest office before submission to a
central evaluation committee.
While at the time of research these agreements
were still in their infancy, the policy itself already
provided useful lessons for other countries where
high-value timber is logged. They provide guidance
on how to implement a fairly simple, cost-effective,
accountable system to support sustainable and
socially responsible logging - all while maintaining a
sharp focus on the interests of the stakeholders at
the beginning of the forestry value chain, the
communities hosting the trees and the value chain's
impact on their lives.

There are similar examples standards and sound

underway in Pakistan. The
ambitious Pakistan Compe-
titiveness and Compliance
Initiative (PCCI) adopted by the
FPCCI (Federation of Pakistani
Chambers of Commerce and
Industry), for instance, aims to
environmental practices.
Not only do such initiatives
promote a focus on truly beneficial
local economic growth, but they
also improve member companies'
competitiveness. For instance,
References
A Corporate Social Responsibility (CSR)
Diagnosis Module for Application in Value
Chain Analysis (VCA) (2006), Foreign
Investment Advisory Service; World
Bank/International Finance Corporation;
Overseas Development Institute: programme
on Business and Development Performance,
London.

bring all social, environmental and
security compliances into one
scorecard within the next decade.
That means almost reducing the
average 35 not-directly-product-
related audits into one complete
system. The first industries
participating in this are of course
the export-intensive textile and
leather industries.
Proudly Pakistani?
Proudly South African is a non-
membership status was already
recognised as a factor in
government procurement decisions
by the Department for Education.
Members were given preference in
tenders. Similar labelling initiatives
can be found in many countries,
but South Africa's is among the few
that requires labour and environ-
mental ethics to qualify for the
label.
There are numerous global VC
Roduner, D. (2007), Donor Interventions in
Value Chain Development: Community of
Practice on Value Chains in Rural
Development, Swiss Centre for Agricultural
Extension and Rural Development (AGRIDEA)
Swiss Agency for Development and
Cooperation (SDC), Berne.
Fox, T., Ward, H., and B. Howard (2002) The
Public Sector's Role in Promoting CSR,
Washington DC: World Bank, Private Sector
Development Department - source for 3
regional examples.
Mayers, J. and S. Vermeulen (2002),
Company-community forestry partnerships:
From raw deals to mutual gains? International
Institute for Environment and Development

profit company that promotes initiatives that Pakistan can become (IIED), London.

South African companies, products a part of, such as the Fairtrade

and services in order to support job
creation and economic growth.
Equally as important, it also
requires companies to demonstrate
their commitment to social
responsibility. A logo signifies to
consumers that the company
satisfies criteria on local content,
quality, commitment to fair labour
label.
about the writer
Remember, when looking at
effective VC initiatives, the more Khadeeja Balkhi, Sustainability
the merrier: the more stakeholders Consultant, is Vice Chairman of the
that are invested in an initiative, the recently-founded CSR Standing
more effective it is likely to be. Committee at the FPCCI.
Taking key groups into confidence
is, well, key to the long-term
sustainability of any VC actor.

july-august 2008 13
entrepreneurship

developing entrepreneurs in your

organization: the trade off

by ali salman
for tbl

E
ntrepreneurship is a concept that has gained widespread currency today. Governments,
NGOs, corporations; everybody is talking about entrepreneurship. Governments
encourage civil servants to act independently and creatively and become entrepreneurs.
NGOs and their donors, want their managements to adopt innovative and sustainable
models to solve social problems, in other words paving way for social entrepreneurship.

14 www.triplebottomline.com.pk
 The business corporations
encourage their employees to
generate business independently
and take initiatives and have
coined the term 'intrapreneures' for
such employees. These are
employees who exhibit
entrepreneurial characteristics
within the organizational domain
and for the organization, not for
self-interest.
I will take on this last category in
this article and will discuss the
possible ways of encouraging
entrepreneurship within corporate
corridors. For this, I will largely
dwell upon my formal knowledge
about, and practice of, entrepre-
neurship and my over six year's
experience as an employer.
Entrepreneurship:
Characteristics
I associate entrepreneurship with
four basic characteristics: a resolve
to remain independent (be your
own boss), defining some unique
space/opportunity in the market
(innovator), assuming a personified
risk-return relationship (calculated
risk- takers), and marshalling
available resources (being
resourceful).
Let me also be clear on what
expectations I have from my
employees. I want my employees to
be self-interested rational economic
agents (as if some people are not!).
These people would devote their
best energies to the organization
with certain expectations, accept
market-based rewards only and
believe that their growth is
conditional to organizational
growth.
Real World Lessons in
Entrepreneurship
The corporate leaders and
employers looking to make their
employees 'rain-makers' or
business generators, should give
them real world lessons in
entrepreneurship. First lesson to be
learnt, for both employers and
employees, is of independence.
Independence requires
involvement of employees not just
in the execution stage, but in the
planning stage as well. We usually
give targets to our staff but little
space to act independently. We
want them to follow a laid-out road
map and achieve results
accordingly. In the process, we
make them slaves of commu-
nication. However, as our staff goes
out and meets clients, several new
dimensions are discovered. The
marketing plan might have been
built on rosy assumptions. The
competitive forces might have been
under-estimated. In such
circumstances which require out-
of-the box thinking on part of the
staff, 'slaves of communication'
type employees will usually choke.
Lack of trust leads to
corporate loss
During a recent human
resource assessment
assignment with a client, I
discovered that a very
innovative sales strategy was
suggested by an existing staff
member. However, the staff
member was so reluctant that
he credited that idea to some
one else, trusted for his market
knowledge. The strategy
worked. The employee, after
taking oath from me not to
disclose his name, told me that
his superiors do not have
confidence in his analysis and
they would always reject his
ideas. This, I thought, had
generated a permanent lack of
confidence in that otherwise
ambitious young fellow. Who
will suffer from this…obviously,
the management!
The second key real world lesson is
identification of an opportunity.
Corporate leaders should not just
give assignments; rather they
should pose problems in a way to
encourage and exert the analytical
skills of employees. By posing real
world problems, for instance,
slowing up of receivables process,
you will take your staff into
confidence from the outset. Once
you instill confidence in them, you
can expect them to identify
opportunities creatively.
Third key lesson is personification
of risk-reward structure. Your
employees would become
entrepreneurs only if you allow
them to take measured risks and
assure them of reasonable rewards
for taking initiatives. Taking
initiatives is always a risky
business, and it can go in either
direction. If you want your
employees to be entrepreneurs,
then you should also accept the bad
side: a good chance of a failure.
Why government
employees do not
behave like entrepre-
neurs?
All good-hearted civil servants
know this by heart: act of
omission can be ignored; act
of commission (if it proves a
failure) will not be left
unpunished. Therefore,
government employees do not
engage in acts of commission
i.e., they do not take initiatives.
Actually entrepreneurs are
designed to commit this act of
commission throughout their
life cycle - it is the same as
taking some initiative.
The fourth, though not the last,
lesson is being resourceful. As a
leader or a manager, you will have
certain resources at your disposal,
which will define the constraints
also. However, the same resources
available to different persons can
yield different results. That
difference is largely a function of
entrepreneurial characteristics:
marshalling available resources to
july-august 2008 15
 get the best. Employees who
always wear complaints on their
sleeves due to a lack of resources
will never become good entrepre-
neurs. As a manager, your job is to
distinguish entrepreneurs from
non-entrepreneurs and plan your
incentive structure accordingly.
Instilling
Entrepreneurship and
Loyalty
The six million dollar question is:
how to instill entrepreneurship in
your employees while keeping
them loyal to the organization. The
answer: ownership. The ownership
form would largely vary across the
corporate spectrum. For small-to-
medium-sized companies, the
ownership may well only mean
behavioural ownership, which is,
taking employees in confidence
while making key decisions, and
selling them ideas and products
before they sell it to the outside
world. In the Japanese model of
Corporate Management, the
employer is a father-like figure. For
large-sized companies, the
ownership should translate into
stocks and shares. This is what the
U.S. model has taught us.
3M is a multinational
company with diversified
product lines. 3M has reaped
the rewards of intrapre-
neurism. 3M has a standard
policy that allows all
employees to work on
developing their own business
ideas at least 15 percent of the
time they are at work. One of
the big breakthroughs that
came from this programme
was the concept of Post-It-
Notes which was pioneered by
an employee who wanted
something that wouldn't fall out
to mark pages in his hymn
book at church.
16 www.triplebottomline.com.pk
There is always a degree of distrust Build a quiet coalition for your
between the employee and the idea; early publicity triggers the
employer. The latter believes that corporate immune system.
he/she is being exploited and the
former believes that the employer is Never bet on a race unless you
not doing enough. The degree are running in it.
would vary across the organization
as well as across organizational Be true to your goals, but
hierarchies. However, a key point realistic about ways to achieve
to consider when taking your them.
employees on board is to offer them
ownership-a real stake in the game. Honour your sponsors.
Naturally, this cannot be done
while signing the employment
contract, but this can surely be built
into the career track of each
about the writer
employee. If employees are not
Ali Salman currently works as a senior
offered ownership, whether in a partner at Development Pool and
formal sense (shares/stocks) or an teaches Economics. Ali specializes in
informal sense (process of decision economic analysis, entrepreneurship,
making), there is a high likelihood policy formulation and business
that after all the years of training models. Ali did his Masters in
them as entrepreneurs, you will Economics from Boston University as a
lose them. They will become true Fulbright Scholar; his MA in
Development Studies as Royal
entrepreneurs and will take their
Netherlands Fellow; and an MBA from
own course - often taking some Quaid-i-Azam University, Islamabad.
slice from your cake in terms of
market share- and at least all the
knowledge with them.
10 Commandments for
Intrapreneurs
Gifford Pinchot's book
'Intrapreneuring, Why You Don't
Have to Leave the Corporation to
Become an Entrepreneur' provides
ten commandments for
intrapreneurs:
Do any job needed to make
your project work regardless of
your job description.
Share credit wisely.
Remember, it is easier to ask for
forgiveness than permission.
Come to work each day willing
to be fired.
Ask for advice before asking
for resources.
Follow your intuition about
people; build a team of the best.
 children’s rights

child labour: a tragedy

by miriam katz
for tbl

Child labour is a reality in Pakistan. Many organizations have estimated that there could
be anywhere from 8 to 19 million child labourers in the country. The age of a child is
defined from age five to age fourteen, of which there are 40 million in Pakistan, according
to a survey last year by the Federal Bureau of Statistics, funded by International Labour
Organization's IPEC (International Programme on the Elimination of Child Labour). This
means that nearly half of all children are working. This is unacceptable given that a
principle of policy in Pakistan is to provide free education and rid the country of illiteracy.
In many cases, the parents of child labourers cannot afford an education for their children
or they believe that education does not lead to marketable skills. However, statistics show
that most child labourers go on to have children that do not attend school and the cycle of
poverty continues. This article will be divided into three sections: the first will discuss the
laws regarding child labour and why child labour continues to be a reality; the second will
look at different industries where children work and how they affect the wellbeing of those
children; and the third will examine possible solutions.

july-august 2008 17
 Laws Governing Child
Labour
First, a definition of child labour is
in order. The definition given by
the International Labour
Organization (ILO) is fourfold:
working during early age;
overwork or giving too much time
to work; lots of pressure to work;
and lastly, a readiness to work for
low pay. Article 11 of the Pakistani
Constitution prohibits slavery,
trafficking and the participation of
children under 14 in hazardous
employment. Hazardous
employment includes many
different occupations such as
transport, factories, mines, work
involving agricultural machinery
and pesticides, and carpets. In 1995,
the government passed the
Employment of Children Rules,
which mandates, among other
things, that work places have to be
clean and that proper ventilation
has to be provided, according to
The State of Pakistan's Children
2006 report by the Society for the
Protection of the Rights of the Child
(SPARC).
Pakistan has also ratified several
conventions on child labour
including the 1957 ILO Forced
Labour Convention and in 1990, the
UN Rights of the Child Convention,
the SPARC report states. In spite of
all the positive laws that Pakistan
has enacted, there were two laws
passed by the government that
ensure the continuation of child
labour. In 1991, the Employment of
Children Act was passed, which
allows families to employ children
under 14. This regulation means
that government inspectors will not
investigate homes. In 1992, the
government passed the Bonded
Labour Abolition Act, which
cancelled all the debts of people in
bonded labour, according to the
SPARC report.. Bonded labour
effectively means that families have
acquired debts, which are repaid
through work. The debts pass to
the next generation, ensuring a
continuation of poverty. Although
the passing of that act may seem
18 www.triplebottomline.com.pk
like a positive step, the children
who are bonded or their parents are
often illiterate and would not know
about the existence of this law.
Thus, bonded labour continues.
The Reasons Why
Child Labour Exists
Child labour continues to be a
reality for various reasons. In
Northwest Frontier Province
(NWFP), for instance, at least 1.1
million children are engaged in
hazardous labour according to
SPARC, although this is most likely
underestimated because home
businesses are not registered. In
NWFP, 50 percent of children in
primary school drop out and many
parents are also addicted to heroin,
which forces the children to work,
NWFP also has a very low literacy
rate compared to the rest of
Pakistan: just 37.3 percent,
according to a report by IRIN Asia
(UN Office for the Coordination of
Humanitarian Affairs), Statistics
show that 50 percent of children
that are trafficked for work live
with parents who cannot read,
according to SPARC report, thus
education plays a big role in child
labour.
As mentioned above, the Pakistani
government passed a law forgiving
debts for all bonded labourers;
however, the practice still
continues. The SPARC report
reveals that 52 percent of
households with child labourers
have debt. In the carpet industry
alone, half a million children must
work due to family debt, according
to a U.S. Department of Labor
report on Pakistan (July 2008). In
addition, most of the families that
are bonded have no land, which
means that bonded labour, much
like child labour in general, is
mainly a rural problem. In Sindh
province, the bonded labourers are
treated basically as slaves. Most of
them are men and their wives and
children "are also captives of the
feudal lords".
Industries using Child
Labour
Child labour occurs in many
different industries. One of the
most prominent is the carpet
industry, despite the fact that the
government designates it as
hazardous labour. UNICEF has
estimated that approximately one
million children work in the carpet
industry and that many of these
children started working there
when they were under 10 years old.
However, these statistics may be
meaningless because, as stated by
the Pakistan Carpet Manufacturers
and Exporters Association, 90
percent of carpet weaving is done
in the home and therefore, they do
not know whether parents or
children are working.
Approximately one quarter of the
children in the carpet industry are
girls, and due to a prevailing view
that girls have less worth than
boys, many are sexually abused,
states the SPARC report. The most
common ailments in the carpet
industry are back pain, poor
eyesight and respiratory disorders.
If school was free and was timed to
suit the children and parents, 90
percent of parents say they would
send their children to school, this
report further reveals. However,
many parents also say that children
should be working because
unemployment has recently been
rising and children should be
learning skills that will aid them in
getting a job.
One of the worst kinds of child
labour is domestic labour, mainly
because it is hidden away and not
regulated by the government. In
addition, because child labour is
mainly a rural problem, domestic
labour is often unrecognized
because it takes place mostly in
cities such as Lahore, Islamabad
and Karachi. One-quarter of all
homes in Pakistan use children in
their homes for many types of
domestic chores and 62 percent of
them are girls, according to SPARC.
Many of these children are
physically or sexually abused and
they are forced to work long hours.
Children working in the domestic
sector rarely go to school and they
do not have the chance to interact
with other children. Lastly, the
work is often unpaid. This is a very
tragic situation because the
government does not include
domestic work as a hazardous
occupation.
Another industry in which many
children are involved is the surgical
tool industry. In Sialkot city, at least
5800 children are working 8 to 10
hours day and 6 days each week.
The main reason why children are
used in this industry is because the
work requires very quick hands.
The children experience many
terrible things in this industry
including burns, respiratory illness
and carpal tunnel syndrome. 95
percent of the children report bad
sleep and 40 percent experience
physical punishment at work. This
is a horrible state of affairs,
especially given the fact that
children represent 30 percent of the
workers in the surgical tools
industry, according to SPARC
report.
Solutions to End Child
Labour
Attitudes will have to change if
child labour is to be eradicated.
One of the main reasons why child
labour continues to exist is that
girls are seen as worth less than
boys. In most families where
children work, there is an average
of 8 children and if girls are
employed, the families have at least
9 children. If women were involved
in the formal sector, it is more likely
that they would have fewer
children and also delay the age at
which they have children. Thus, the
government should find a way to
empower women and children. In
addition to this, the Pakistani as
well as Western governments must
invest more money into the
education system. It is clear that
many parents do not want to send
their children to school either
because they must pay or they view this practice that dooms many
the school system as inadequate. If families to a lifetime of debt and
parents want their children to poverty.
succeed in the future, they must
have faith that school will help
them and primary school must be References
free. According to a survey, 24 Society for the Protection of the Rights of the
percent of children believed that Child "The State of Pakistan's Children 2006"
school did not teach them any http://www.sparcpk.org/publications/sopc_200
6.pdf
useful skills, as stated in an article
on YesPakistan, a website service of IRIN Asia "Child labour still widespread in
NWFP"
the Human Development http://www.irinnews.org/report.aspx?repor-
Foundation of North America. The tid=26413\
government could open schools U.S Department of Labor "Pakistan"
that teach lifelong skills to children http://www.dol.gov/ILAB/media/reports/iclp/sw
eat/pakistan.htm
who must work.
YesPakistan.com staff writer "Policy
Although the government passed a considerations for ending child labor in
Pakistan" http://www.yespakistan.com/peo-
law that forgave all debts, this law ple/child_labor.asp
has not been enforced. As
mentioned above, children that
work are usually illiterate and are
not familiar with laws passed by about the writer
the government. Many of their
parents would be unaware of this Miriam Katz is a freelance writer based
law as well. The government in London. She currently writes for the
should employ counsellors that Environmental Peace Review. Her
work with illiterate people and areas of interest include environmental
make them aware of such issues, renewable energy, biofuels and
developments. In addition, with climate change. She holds a Bachelors
in Arts degree in Political Science and
regard to enforcement, the
Environmental Studies from the
government should pass a law University of Toronto. She can be
declaring domestic employment reached at m.il.katz@gmail.com
hazardous. Most children work at
home and parents are often not
mindful about regulations
regarding child labour - these must
be enforced.
Conclusion
In conclusion, the continuation of
child labour is a tragic situation.
There have been many positive
laws passed that regulate child
labour and Pakistan is a party to
many conventions that prohibit
child abuse in labour, but these
practices are still a reality. In many
industries, children suffer injuries
that should not happen in
childhood and they lose a very
important thing: the opportunity to
play and be with other children
their own age. Most of them do not
go to school and miss the chance to
learn skills that will last their whole
lives. If the government can do only
one thing, it should work to end
july-august 2008 19
alternative measures

happiness-spirituality as
the fourth bottom line
by asim malik
for tbl

'Serving society' seems to be one of

the newfound mantras of the
corporate sector. Being a part of
people at the grassroots levels,
uplifting the destitute, shouldering
the elderly, educating the illiterate
or improving conditions in the
rural areas; these form a slew of
Corporate Social Responsibility
(CSR) ventures and are becoming a
necessary part of the branding
exercise. The focus here is not
restricted to people alone; it
extends to creating awareness
about the growing environmental
hazards, or even protecting
wildlife.

CSR makes sound business sense.

IBM, for instance, believes that
there is a bigger reason
organizations invest in CSR: the
reality that businesses cannot
succeed in a society which fails. It
is, therefore, imperative for
organizations to understand the
social milieu in which they
function.

TBL Movement Drivers expected to consider human rights,

In an age of rising recognition and
The triple bottom-line movement evaluate their impact on the
the imperative need to increase
has taken off. Indeed, 45 percent of environment, and on future
employee engagement, CSR
the world's top companies publish generations.
initiatives follow suit. A company
may chart out a policy, draw up a sustainability reports, according to
the Department of Environment, "Work is such a large part of life
plan, and invest funds, but it needs
Water, Heritage and the Arts, that employees increasingly want
complete endorsement and active
Australia. This change has not to work for organizations which
participation by its employees to
come about because of the reflect their values, and for us, it's
carry the policies forward and
graciousness of organizations. also an issue of attracting and
implement them.
Changing values among retaining talent," says Jennifer
stakeholders (and, indeed, the Johnston of Bristol-Myers Squibb.
In companies like Cisco, employees
also work on several technologies notion that multiple stakeholders
that help humanity at large such as define the organization, not just Gross Happiness
power management, reduced stockholders, but employees, Index: Alternative to
power usage, productivity- managers, the community at large,
enhancing applications and so on. and the environment itself!) is a key GDP
driver of this movement. National-level initiatives are
Senior employees there also have
Employees desire an organization following suite. Bhutan has
the option of working with NGOs
that they can be proud of. Along developed a gross happiness index.
to improve the NGO's strategy,
with profit, organizations are While all OECD nations have not
finances, business, or execution.

20 www.triplebottomline.com.pk
gone this far, the UK is taking
happiness seriously. In the UK, the
Cabinet Office has held a string of
seminars on life satisfaction and
published a paper last year
recommending policies that will
lead to an increase in the nation's
happiness. The policies include
quality of life indicators when
making decisions about health and
education, and finding an
alternative to gross domestic
product (GDP) as a measure of how
well the country is doing - one that
reflects happiness as well as
welfare, education and human
rights. There are even journals and
professors specializing in
happiness.
Happiness is increasingly equated
with quality of life, and not the
quantity of material possessions. As
nations move to postmodern
economies, other issues are gaining
more importance, such as
spirituality; the meaning of life and
the ultimate nature and purpose of
humankind.
Spirituality: The Fourth
Bottom-Line?
But where there may be a subtle
shift toward the spiritual, can it
become the fourth bottom-line? We
certainly don't see stakeholders
holding long meditation sessions
outside of corporate offices and
government buildings.
Corporations already face the
challenge of incorporating social
indicators. Certainly, the purpose
of a fourth bottom-line is not to be
an additional burden for
organizations. Spirituality includes
four interrelated factors: nurturing
a relationship with the transcen-
dent; regular practice of meditation
or prayer; physical practices to
harmonize or transform the body;
and fostering social relationships.
There are two external factors - the
transcendental and the social
(although of course, the transcend-
ent and social are both within) and
two internal factors - mind and
body (of course, external as well
and interdependent).
Indicators of
Spirituality as The
Fourth Bottom-Line
Are there any indicators that
spirituality can become a bottom-
line? Can the historically
immeasurable be measured?
There are clear risks. Along with
the potential perception of
patriarchy, come the problems of
caste/class: with elite groups
claiming they can best interpret the
spiritual. The transcendent
becomes a weapon: linguistic,
political, and economic.
Yet, this is the nature of our world.
Taking a layered approach may be
an appropriate way to consider.
Using the metaphor of the 'iceberg
of spirituality', the tip of the iceberg
can be measured, as that is the
often visible. Beyond that exist the
social dimensions of spirituality -
manifested in such acts as
community care, group medita-
tions, shared experiences and so on;
thus bolstering a 'system of
spirituality'. This system too can be
evidenced. If we delve deeper, we
see the worldview of spirituality -
ethics, ecology, devotion, multiple
paths, and transcendence. As we
move to deeper levels of
spirituality, measurement becomes
more difficult.
Is there any evidence that
spirituality as an issue is gaining
interest? With workshops
happening in Croatia, Pakistan,
Malaysia, Australia, Thailand,
Germany, Taiwan, New Zealand,
USA, among many other countries,
we see increasing awareness about
and interest in spiritual issues
worldwide.
Materialism
Data confirms that materialism
does not lead to happiness. A study
by Tim Kasser of Knox College,
Illinois, found that young adults
who focus on money, image and
fame tend to be more depressed,
have less enthusiasm for life and
suffer more physical symptoms
such as headaches and sore throats
than others (The High Price of
Materialism, MIT Press, 2002).
Indeed, Kasser believes that
advertising, which is central to the
desire machine, should be
considered a form of pollution, and
be taxed or advertisers should be
forced to include warning messages
that materialism can damage one's
health.
Spirituality, while it does enhance
economic productivity, social
connectivity, inner and outer
health, should not be confused with
economic materialism or indeed
any type of materialism (even the
spiritual variety, that is, collecting
gurus, mantras, or using the
spiritual to accumulate ego).
The Spiritual Template
of Our Life
Part of the challenge we face is to
transform our template of life itself.
Currently it is: birth, student, work,
retirement and death. In a spiritual
model, spirituality would travel
through all these stages. Also,
'student-hood' would never
terminate but rather continue
throughout one's life. In addition,
the worker phase would exist
throughout our lives, transformed
to mission - doing what is most
important - and that is translated
into life-long earning and
meaningful rewards. Service to
society would be a part of our daily
lives - finding some way, every
day, to contribute to the
community. Thus, seeing
spirituality as the fourth bottom-
line means transforming the
foundational template of our
lifecycle. This is especially crucial
as the global ageing of society
changes our historically stable age
pyramid.
about the writer
Asim Malik works in the
microfinance industry
and has also been
involved in providing
consultation and
bringing innovations in
the field of retail
distribution for the
FMCG sector.
july-august 2008 21
csr talk
kerstin dietrich
Advisor Clean Development Mechanism (CDM) and Climate Change
by khadeeja balkhi
for tbl
Ms. Dietrich is a global
specialist on the Clean
Development Mechanism
(CDM). During her recent,
fourth, visit to Pakistan she
graciously shared with
TBL, her thoughts about
the development and
potential of the CDM in
developing countries like
Pakistan.
22 www.triplebottomline.com.pk
Khadeeja Balkhi: If you
were to capture the
essence of the CDM as you
see it, how would you
phrase it?
Kerstin Dietrich: The Clean
Development Mechanism (CDM) is
a climate protection instrument
that facilitates the use of renewable
energies and energy efficiency
measures in developing countries.
KB: What sparked your
interest in the CDM
initially? What keeps you
motivated now that you are
a global expert?
KD: I have been involved with the
German Development Cooperation
for more than twelve years now.
German Development cooperation
is committed to sustainable
development. In 2003, I started to
work on climate protection. At that
time, the CDM was still under
development and there were very
few projects underway. I found it
quite fascinating that a market
instrument should contribute to
sustainable development in
developing countries. This is what
still motivates me: that the CDM is
still developing. In the past three
years, we have seen that a number
of new project types and new
modalities for bundling small
projects with high development
benefits have been approved.
KB: Can you give examples
where other developing
countries have benefited
from implementing the
CDM?
KD: Well, I think that the most
prominent examples are China and
India, which are major players in
the CDM. Along with CDM
projects, innovative technologies
are also being introduced. The
CDM is a market instrument and it
has really helped build renewable
energy industries in these
countries.
KB: As you've so aptly put
it, the CDM is a process.
What are the current
caveats of this process?
KD: There is still a lot of struggle
with the methodologies to calculate
emission reductions and to
demonstrate additionality. This
applies in particular to energy
efficiency projects.
For some project types the
requirements for baseline
calculation are very strict and thus
hamper project development. I
think in particular the high upfront
costs for project development are a
major obstacle.
Note: The concept of 'additionality' is a
crucial feature of an approvable CDM
project: the project must establish that
the planned emission reductions would
not occur without the additional
financial incentive provided by emission
reductions credits. That means, as Ms.
Dietrich put it, that a CDM activity is
additional only "if greenhouse gas
(GHG) emissions are reduced below
those that would have occurred in the
absence of the registered CDM project
activity".
KB: What are the
challenges that host
countries trying to develop
CDM projects should watch
out for, in your opinion?
Which do you think
Pakistan could particularly
prepare for?
KD: I think that for the host
countries (developing countries
that host CDM projects), the CDM
is ideal to promote renewable
energies and energy efficiency. In
particular in rural electrification
with renewable energies (not grid
connected), there should be a huge
potential to develop CDM projects.
In the textile sector there is
potential for fuel switching
measures, improvement of boilers
and steam optimisation systems.
energy efficiency projects only. Off-
grid rural electrification with
renewable energy is a typical
example.
Note: A little bit more about the Gold
Standard from Ms. Dietrich's work:
Project developers can also try to get
into the premium CER market for small
projects with high development
benefits. The Gold Standard (GS)
Foundation offers a quality label to
CDM and voluntary offset projects,
fetching premium prices. Renewable
energy and energy efficiency projects
with sustainable development benefits
are eligible. The Gold Standard is
endorsed by over 38 non-governmental
organizations worldwide.
How the GS emerged: Besides the
Kyoto market, other actions taken to
reduce greenhouse gas emissions are
being verified and traded. Voluntary
markets for emissions reductions that
are exempt from the provisions of the
Kyoto Protocol are developing rapidly.
Companies are more and more
concerned about their environmental
impact and tend to neutralise activities
they cannot avoid, for example flying.
They see voluntary offsetting as part of
their corporate responsibility and/or as
part of their image strategy. Emission
offsets in this category are usually
verified by independent agents and are
commonly referred to as Verified
Emission Reductions (VERs).
Demand for both types of credits exists.
The mid-2008 market price for the
various risk levels of CERs ranges from
8-12 Euros for medium-risk forwards,
12-15 Euros for low-risk forwards, 13-
18 Euros for registered projects and 16-
22 Euro for issued CERs. The price for
VERs is considerable lower and is 3-4
Euros.
lot from others' experiences. I think
that Pakistani companies should
consider, carefully, with whom
they are going to develop their
CDM project; or even consider
developing it alone provided that
they have the funds.
KB: Given current trends,
where do you think
Pakistan will be in the
global CDM marketplace
ten years from now?
Alternatively, how long will
it take us to reach the
potential you've seen here -
again, assuming existing
trends?
KD: To date, Pakistan has one
registered CDM project and I think
about another eight are in the
validation stage. A number of
stakeholders are currently actively
building capacities for CDM project
development. I am sure we will see
a lot more in the coming year and I
am happy to contribute to that
development.
about the writer
Khadeeja Balkhi is a
Sustainability Consultant
who finds great joy in her
work, whether it's
strategizing, hands-on
implementation, field-based
stakeholder engagement or documentation
and monitoring. She can be reached at
editor@triplebottomline.com.pk

KB: In your opinion, how
has CDM already proven
itself as a mechanism to
contribute to sustainable
development? Can you
think of specific examples?
KD: There are many examples and
in particular the so-called Gold
Standard CDM projects fulfil the
sustainable development objective
of the CDM. The Gold Standard is a
premium label for CDM projects
with high development benefits;
projects that have been established
by NGOs. It can be applied to
renewable energy and end-user
However, the premium price offered for
issued Gold Standard VERs is between
5 - 6 Euros while for GS CER, prices
range between 12-14 Euros. In
addition, the cost of developing a GS
CDM project tends to be lower than the
cost of developing a CDM project for
the Kyoto market.
KB: Are there any universal
thoughts or advice you
might want to share with
companies in Pakistan who
are interested in pursuing
CDM projects?
KD: Pakistan is a late entrant into
the CDM arena and it can benefit a
july-august 2008 23
carbon disclosure survey

confronting climate change:

supply chain leadership
collaboration The Carbon Disclosure Project's
(CDP) Supply Chain Leadership
by clearcarbon consulting
for tbl Collaboration (SCLC) is an effort to
help companies better understand
the climate impacts within their
supply chains.

In October 2007, the CDP created the SCLC with the

aim of creating a standardized process for supply
chain reporting of carbon emissions, risks,
opportunities and strategies. The SCLC seeks to
address the increasing focus on carbon impacts of
corporate supply chains, where, for many sectors,
the majority of GHG emissions are generated.
Corporations require better information to develop
and deliver robust and effective carbon management
strategies into supply chain decisions. Using the
CDP process, which is the established global system
for disclosing carbon emissions and related climate
change issues, purchasers are now able to better
understand the emissions embedded within their
individual and shared supply chains.

Twelve companies (members) participated in a pilot

collaboration launched in October 2007 and
completed in February 2008. The SCLC Pilot
Members include Cadbury Schweppes, Proctor &
Gamble, Dell, PepsiCo, Hewlett-Packard, Prudential,
Imperial Tobacco, Reckitt Benckiser,
L'Oréal, Tesco, Nestlé, and Unilever.

24 www.triplebottomline.com.pk
Survey Approach
A survey, designed by CDP in
partnership with the 12 SCLC
member companies, was
distributed to 383 selected suppliers
requesting their participation in the
pilot. A striking result of the survey
is that 95 out of the 144 responders
submitted information to CDP for
the first time demonstrating the
potential of the SCLC to increase
disclosure of carbon information
along corporate supply chains.
Jay Celorie, Global Program
Manager of Supply Chain Energy,
Hewlett Packard states "The CDP
Supply Chain Leadership
Collaboration Pilot helped create
momentum and awareness of the
need for suppliers to disclose
carbon within the supply chain."
The SCLC questionnaire addressed
three sections:
Section A asks suppliers for
information about their overall
knowledge of climate change and
how it affects their company
operations.
Section B asks for a detailed
breakdown of emissions by
country, participation in carbon
emission trading schemes, a
description of their reduction
programme and the responsibility
for climate change within the
company.
Section C questions target
information on companies' supply
chains and product-level detail.
To review and analyze results, CDP
retained Clear Carbon Consulting,
USA.
The SCLC survey is proclaimed to
be a successful first step in creating
a consistent approach for suppliers
to report their climate change
efforts to their customers and other
stakeholders. The number of
companies becoming a part of
SCLC demonstrates that there is a
growing interest from businesses to
gain a better understanding of the
climate impacts of their supply
chain. The survey responses are
useful as a baseline for members to Greenhouse Gas
understand the preparedness of
suppliers to address climate change Emissions Analysis
Many suppliers indicate they are
issues and to increase their
knowledge of supply chain working on breaking down
emissions calculations into various
greenhouse gas emissions.
business segments and provide
many reasons why they currently
The SCLC is therefore an
opportunity to educate a large are not able get to that level of
detail.
number of additional companies on
the potential risks from climate
change and encourage them to Some companies stated they
produce multiple products within
measure the emissions from their
operations and products and one facility and it would be difficult
implement climate mitigation and expensive to sub-meter the
entire facility to get individual
strategies.
product line emissions.
Survey responses reveal
participating companies generally Others indicate resources do not
exist to collect or analyze the data
have an understanding of the
potential risks from climate change. needed to get to that level. A
majority of the respondents (68
Although many survey responders
are still in the early stages of percent) are able to breakdown
addressing the climate issue, they emissions to the factory or facility
level.
are willing to share information
regarding their climate change
activities and appear committed to A few companies indicate the ISO
14064 - Greenhouse Gas
increasing their efforts in the
future. Accounting standard only requires
facility level data. And they have
not gone beyond what is required
Responding suppliers represent a
variety of industries and range in that standard.
from small businesses (less than 100
employees) to large corporations GHG Protocol: Popular
with thousands of employees. Methodology
The GHG Protocol, developed by
Overall, there is a higher response
the World Resources Institute and
rate, 60 percent, for Section A
the World Business Council for
questions (Climate Change Risk,
Sustainable Development, is the
Opportunities, and Strategy), than
international standard for how
Section B (Additional GHG
companies measure their GHG
Emissions Accounting) and C
emissions. Over half of the
(GHG Emissions Analysis), at 48
suppliers responding to the survey
and 28 percent respectively.
(56 percent) use the GHG Protocol
as their methodology to calculate
The response rates reflect the
corporate emissions. Other
typical carbon management
suppliers use a wide range of
continuum of companies.
accounting methods including. 58
Companies generally assess risks
percent of the suppliers report their
first, perform (Greenhouse gas)
Scope 1 and 2 emissions. All but
emission accounting to get a
one of these companies is a large or
detailed picture of their impacts, set
medium sized supplier.
targets to measure progress, and
then evaluate reduction
A majority of responders (65
opportunities and implement
percent) report electricity use
projects. Once companies have a
information, something Pakistani
handle on the management of their
companies are now seriously
internal GHG footprint, they begin
evaluating. Only 27 suppliers
to evaluate impacts and implement
report renewable energy
reduction activities along their
investments. There was no
supply chain.
july-august 2008 25
 appreciable pattern of renewable Section A - Climate Change Risks, Opportunities
energy investments among specific
industry sectors, but large
and Strategy
companies were responsible for 65
percent of renewable energy
investments reported through the
survey.

What commercial opportunities

does climate change present to
your company for both existing
and new products and services?
Suppliers report various
opportunities presented by climate
change mitigation strategies. The
companies list savings from energy
reduction as the biggest
opportunity, as is being realized by
pockets of Pakistani companies as
well. Suppliers also see production
of energy efficient and/or new
environmental products as
opportunities for the future. For
example, there are opportunities to
produce more energy efficient
computer components. Other
suppliers indicated they are
looking at reducing the weight of
products and/or packaging to be
more efficient and reduce the waste
Analysis
and fuel-use that impacts shipping
Many companies (77 percent of respondents) see some type of GHG regulation(s)
costs. as a future risk for their company. The next most commonly reported risk is price
increases in energy and raw materials (12 percent of respondents).
What are your emissions reduction
targets? Responses to the two questions above show that companies have a more
32 percent of the responders have immediate concern about regulatory risks than physical risks (96 percent and 87
set some type of reduction target percent of respondents reported these risks). This speaks to the concern of
and 26 percent of suppliers have businesses to address short-term impacts, versus less predictable and long-term
emissions reduction targets in impacts even though these may be on a larger scale.
development. 29 of the 37 suppliers
with targets in development are
new CDP responders. This may
indicate that the request to
participate in the CDP encourages
these companies to develop
reduction targets. Responders
understand that stakeholders
expect them to develop a GHG
reduction target as part of a
credible climate strategy. The most
common type of target is an
absolute or intensity metric GHG
emissions reductions goal. Other
targets reported include carbon
neutral, diesel fuel reduction and
reductions from renewable energy
use.
The majority of suppliers have projects in place to reduce GHG emissions. Based on
responses from suppliers, 58 percent of the respondent companies are engaging in
energy consumption reduction programs. A table showing the strategies suppliers
have in place to reduce risks and take advantage of oppor- tunities is below.
Additionally, forty six companies are only pursuing strategies to reduce energy
consumption, which is typically a first step in addressing GHG emissions.
26 www.triplebottomline.com.pk
Section B - Greenhouse Gas Emissions Section C - Disclosure
in Your Supply Chain
Scope 3 Emissions
Do you track Scope 3 emissions?
Scope 3 covers all indirect
emissions (other than from
purchased electricity) that occur
from sources that are not owned or
controlled by the company.

Only 33 percent of companies

surveyed report they track any
Scope 3 emissions. The most
commonly tracked Scope 3
emissions are business travel and
distribution/logistics.

Are you able to breakdown Scope

Fifty-eight percent (58 percent) of responding suppliers have an established 3 emissions by any of the
baseline for their GHG reduction programme. 42 percent of suppliers have no following categories (business
inventory to date, indicating that GHG management within the members' supply
division, business unit, factory,
chains is still at an early stage.
product group, product line,
What is your company's strategy What is the mechanism by which SKU)?
for trading in the EU Emissions the company reviews climate Only 10 percent of the responders
Trading Scheme? change progress? can breakdown their Scope 3
Less than 20 percent of the 49 percent of the suppliers report emissions to some level within their
suppliers participate in emissions their companies review the status company. No companies surveyed
trading schemes. They participate of their climate change initiatives can breakdown emissions to the
across a variety of programs as through various mechanisms. SKU level. About a dozen suppliers
shown in table 11. Many companies integrate climate report that lack of access to data
change initiatives review with their and the resources to collect and
Which measurement best ISO 14001 management review analyze data limit supplier's ability
describes your company's meetings or other environmental to calculate these emission sources.
emissions intensity performance? committee meetings. Other
Only 26 percent of the suppliers companies indicate it as an agenda What methodology do you use to
provide emissions intensity item for Board meetings. 32 track or calculate Scope 3
measurements. These respondents companies (22 percent) have emissions?
indicate emissions per unit of performance reviews or appraisals All but one of 18 respondents
production or volume of for their managers tied to goals set indicated they use internal
production as the two most in their climate change databases - the other supplier
commonly used emissions intensity programmes. reported using employee surveys.
metrics.

Climate Change Governance

Which Board Committee or other
executive body has overall
responsibility for climate change?
More than a third of the responding
companies have a member of the
Board of Directors responsible for
climate change. Another third of
the respondents report an
Environment, Health, and Safety
(EH&S) or Corporate Social
Responsibility (CSR) committee as While only three companies report that they have strategies in place to engage
being responsible for climate their suppliers on their GHG emissions, a surprising 41 responders indicate they
have a strategy to engage suppliers in development.
change.

july-august 2008 27
innovative csr toolkit
the
sustainable
value
approach
by figge, hahn, liesen
for tbl
Historically, companies existed
to produce goods and services
in a profitable way. Nowadays,
companies additionally need to
answer the requests to
contribute to sustainable
development and reduce the
burdens they impose on their
stakeholders. Both of these
views are merged in a recently
developed management
approach. Professor Frank
Figge of Queen's University
Belfast (UK) and Dr Tobias Hahn
of IZT - Institute for Futures
Studies and Technology
Assessment (GER) developed a
value-oriented methodology to
assess the sustainability
performance of companies,
called Sustainable Value.
Instead of focussing on how
much burden a company (or
other organisational entity)
creates with its actions, the
Sustainable Value Approach
assesses whether a company is
using its financial, environmental
and social resources in a value-
creating way.
Background
In financial markets value is created
whenever an investment creates more
return than the benchmark. If an
investment, for example, yields a return
of 7 percent and the market only yields
a return of 4 percent then the invest-
ment has earned its opportunity costs
and outperforms the benchmark by 3
percent. In this case, an investment of
28 www.triplebottomline.com.pk
€1,000 would have generated a value of
€ 30. Following this logic, the
Sustainable Value Approach assesses
the use of environmental and social
resources in the same way in which
financial resources have been assessed
for decades - according to their
opportunity costs. From an opportunity
cost perspective the price of an
environmental or social resource is
identical to the foregone benefit of an
alternative use of that resource
(benchmark).
For the first time now, capital use and
the use of environmental and social
resources can be assessed in an
analogous way. This assessment has
another advantage: the various
resources are not only assessed in an
identical way, but their performance is
also measured in the same unit, for
example € or $. In other words, the
Sustainable Value approach allows for
an integrated monetary triple-bottom-
line assessment of corporate
sustainability performance that is in-
line with managerial thinking.
To calculate the Sustainable Value of a
company (or other organisational
entity), we have to calculate who
creates more return with a given set of
financial, environmental and social
resources of a company: the company
or the benchmark. As a result
Sustainable Value shows how much
more or less return a company has
created with its set of economic,
environmental and social resources
compared to a benchmark. In the
following example, the assessment logic
of Sustainable Value will be explained
by using the example of the German
consumer goods company Henkel in
the year 2004.
Henkel emitted 806,173 tons of CO2 in
2004. At the same time, it generated a
gross value added of € 3.2 billion. Thus,
Henkel created a return of 3,993 € per
ton of CO2. The German economy,
however, generated € 2,471 gross
domestic product per ton of CO2.
Consequently, Henkel created € 1,522
more gross value added per ton of CO2
than the German economy on average.
Multiplying these 1,522 €/t with the
total amount of CO2 emitted by Henkel,
we now know that with its use of CO2
emissions, Henkel created € 1.2 billion
more of gross value added in 2004 than
the Germany economy on average
would have created with those
emissions. In other words, in 2004
Henkel used its CO2 emissions in a
value creating way.
To find out whether a company creates
Sustainable Value the methodology
described above is applied to all
relevant economic, environmental and
social resources. It is consequently
possible to determine which companies
are most successful in managing the
conflicting goals of successful economic
activity on the one hand and the
sustainable use of financial,
environmental and social resources on
the other hand.
New Tool Online
On www.sustainable-
valuecalculator.com, it is now possible
to calculate Sustainable Value online,
using different benchmarks. The
website is part of a research project
financed by the German Ministry for
Education and Research and guides its
users through all steps of a Sustainable
Value assessment. Visitors will also find
online tutorials that give detailed
information on the background of
Sustainable Value and the use of the
Sustainable Value Calculator.
Recent Applications of
a New Approach
The Sustainable Value approach has
been further developed and tested in
various research projects commissioned
by both, public bodies and companies.
Beyond the external assessment of
corporate sustainability performance,
the approach is used to implement
sustainability strategy within
companies through internal
benchmarking and investment
appraisal. The main advantage of the
approach is that it is now possible to
analyse, monitor and manage the
sustainability performance of
companies similar to the way capital is
managed in companies today.
about the writer
Professor Frank Figge holds the Chair of
Management and Sustainability at
Queen's University Management School
of Queen's University Belfast (Northern
Ireland/UK). He is one of the early
developers of the Sustainable Value
approach. Before joining academia full
time, Figge worked for asset managers
and as a consultant in the field of
corporate sustainability. He can be
reached at figge@sustainablevalue.com.
breather

30 www.triplebottomline.com.pk
july-august 2008 31
enabling empowerment

the care and growth

leadership model and
empowerment

by etsko schuitema
for tbl

My prior research indicates that

employees give or withheld their
commitment to an organisation on
the basis of universally held
criteria. These criteria are based on
the degree to which management is
seen to have a genuine interest in
employee wellbeing and are willing
to empower or grow their
subordinates. I refer to this model
as the "Care and Growth" model of
leadership. In this article I would
like to explore the idea of
empowerment or growth a little
deeper.

There is a very commonly held

metaphor for empowerment,
namely the fishing metaphor. This
metaphor holds that if you give a
person a fish you feed them for a
day, but if you teach them to fish
then you will feed them for the rest
of their lives. This is more or less
true, of course, but like all useful
metaphors it also runs the danger
of obscuring the full implications of
the notion of 'empowerment'. This
confusion arises out of the fact that
empowerment is then seen to be
purely a question of knowledge or
skill, something which may be
taught. This implication does not
stand up to the most basic and

32 www.triplebottomline.com.pk
common sense examination of what
empowerment must mean.
Sticking to our fishing metaphor, I
have found that people generally
offer two categories of things to the
question of "how would you enable
or empower someone to fish?" The
first category raises a list of things
which one could call means. These
are things that are not associated
with either skill or knowledge. In
the case of fishing these would
include things such as a rod, reel,
line, hooks, bait, authority to fish, a
dam or fish resource and so on. The
second category one could call
ability. Under ability, one would
understand both the knowledge and
skill of how to fish, as well as an
understanding of why one should
fish.
The problem with these two
categories, though, is that they are
not sufficient to account for
someone really being committed to
feeding themselves with fish that
they themselves have caught. For
example, assume you wish to enable
someone to fish and you give them
all the means as well as the ability to
do what is required of them.
However, at the same time make
them aware that you have a big
freezer full of fish and will quite
happily give them some should they
not catch any for themselves. The
question here is, how willingly will
this person fish.
If there were no consequences that
followed on them for not catching
their own fish, but indeed they were
rewarded for not catching then it
seems pretty obvious to me that
such a person would not fish with
great enthusiasm or willingness.
This suggests that if I were serious
about empowering this person then
I would deliberately withhold the
fish in the freezer. I would, in other
words, hold them accountable for
what they have been entrusted with.
This indicates that any proper and
useful definition of empowerment
would have three categories in it,
namely those of means, ability and
accountability. By accountability I
would understand that there are
consisted rewards and punishments
that are exercised with regard to
what a person has been entrusted
with. If they had done what was
required of them they would be
rewarded, if not, then they would be
censured. In an organisational
context the category of means
would include things such as tools,
resources, standards, time and
authority. By tools one would
generally understand those things
which people add value with. This
could include anything from a
production operator's machine to an
artisan's tools to a secretary's
computer. By resources one would
understand those things which
people add value on. A few
examples could be the sculptor's
stone, the chef's vegetables and the
thatcher's grass.
By standards I would understand
what needs to be done, which
would include a specification of
both quality and quantity. Time has
two significances here, namely that
the person doing the task should be
given sufficient time to do it, and
that their leader should spend
whatever time is required in order
to provide the subordinate with the
means, the ability and the
accountability to do what is
required of them. Finally, authority
would imply that people are
allowed to do what is required of
them.
As far as ability is concerned, the
simplest category really relates to
how the task should be done. A less
straightforward concern relates to
the problem of why the task should
be done. I have come to refer to this
'why' as the benevolent intent of the
task. The reason for this is that
people are really only motivated to
do a task if they see it to be
meaningful. Meaningfulness is
essentially about a sense of
contribution. My brother Jerry
frequently argues that if you took an
average person, paid them three
times the salary that they were
getting currently but required them
to sit in an empty room staring at
the wall for 8 hours a day they
probably would not accept the job.
The reason for this is that the task
was inherently meaningless. A task
is only meaningful if there is a real
sense of making a contribution to
others in doing it.
The issue of accountability suggests
that any person's behaviour could
be above or below the standard
required of them. Should they be
careful, in other words, do what is
required of them, then they should
be recognised. Should they be
deliberately benevolent, in other
words, do more than what is
required of them they should be
rewarded. On the other hand,
should they be careless then they
should be censured, and should
they be deliberately malevolent they
should be punished.
I am therefore suggesting that the
process of empowerment requires
the deliberate use of three
instruments, namely that of means,
ability and accountability. Not to
use all three of these instruments is
to disable people. Further, the
instrument of accountability has
four strings, namely reward,
recognition, censure and
punishment. Not to be able to play
all four strings where appropriate is
equally disabling.
about the writer
Etsko Schuitema is a
transformation consultant
and a managing member of
Schuitema - a consultancy
about business transfor-
mation through business growth, based
in South Africa and Pakistan.
july-august 2008 33
case study

behavioural safety at workplace

by dr. ilyas fazil, zia uddin kirmani, dr. mohammed hanif, anwar saeed and amir khurshid
for tbl

A safety culture is directly dependent

on the attitude of employees towards
safety - proposes Attock Refinery
Limited (ARL). Below it presents an
initiative to encourage, promote and
instill safe behaviour among its
employees, in this case, through the
introduction of behavior-based safety
concepts and customized process
control solutions.

The most commonly used definition

of safety culture was coined by the
U.K. Health and Safety Commission:
"The product of individual and group
values, attitudes, perceptions,
competencies, and patterns of
behaviour that determine the
commitment to, and the style and
proficiency of, an organization's
health and safety management"
Some researchers are increasingly
focusing on attitudes when defining
safety, states Glendon et al, while
others emphasise that safety culture
is expressed through employees'
behaviour and work activities.
Human behavior is a complex subject
as it is linked not only to the work-
place environment but is influenced
by a number of external factors. On
the premise that a safety culture is
largely dependent on employees'
attitudes towards safety, ARL initiated
a study to measure, analyze and
control unsafe behaviour in the
workplace. In spite of safety
management systems, policies and
procedures, incident data shows that
majority of misfortunes and accidents
in the workplace are triggered by
employees' attitude, perceptions and
patterns of behaviour such as
proclivity to take shortcuts and
intuitive-based decisions, bypassing
Standard Operating Procedures
(SOPs).
34 www.triplebottomline.com.pk
Health Safety
Environment Quality
System
ARL is a Refinery that began its
operations in 1922, and its 85 year
existence has seen it transformed
into a state-of-the-art facility
incorporating a mix of the old and
the new in its hardware.
Following the establishment of its
HSE department in 2005, now
called the HSEQ Department, ARL
had an independent third-party
safety audit done by DuPont in
2006 in order to gauge where it
stands vis-à-vis international best
practices, and subsequently use
international benchmarks as a basis
for making improvements in the
organization's HSEQ systems.
The DuPont Audit yielded an
excellent evaluation of ARL's
systems, as well as a road map for
attaining higher conformance with
international benchmarks. The first
recommendation, which was
immediately implemented, was to
form a Central HSE Committee
chaired by the CEO. The Behavior
and System Audit (BSA)
Subcommittee was formed to
manage the behaviour audit
process, track timelines and ensure
quality and follow-ups.
ARL Behaviour and
System Audit
Subcommittee
The BSA, in 2007 carried out a
thorough analysis of two years
incidents and investigation data
and identified that most workplace
incidents occur due to unsafe and
uninformed behaviour, persistence
of inherited traditional beliefs and
overconfidence of workers. A need
was also felt to develop a tool to
put all the data into a systematic
format suitable for analysis, and for
subsequent development of
correctional plans.
The BSA first reviewed the
behaviour audit systems of
different industrial organizations
and analyzed the feasibility of their
adoption and implementation at
ARL. Eventually, however, BSA
developed an in-house question-
naire on "Behavioral Safety at
Workplace", which was used as a
basis for ARL's behaviour-based
study.
The questionnaire was based on the
Cornell Selectee Index, a question-
naire designed to indicate the
presence of emotional maladjus-
tment, which can be answered by a
'yes' or 'no'. Each question is aimed
at revealing the presence of some
emotional difficulty, maladjustment
tendency, or psychosomatic
reaction. In addition to this the
Thurstone equal-appearing interval
scale was adopted to collect
opinions, ranging from very
positive to very negative about a
certain object, person and activity.
A Ground-based
Approach to Safety
Management
Traditionally, safety management
has been top-down driven, with a
tendency to make line managers
responsible. This means that floor
level workers are most likely to
engage in unsafe behavior or to be
hurt as they are detached from the
safety improvement process. A
behavioural-based safety approach
is 'bottom-up' so that those who are
most likely to be hurt are actively
engaged in eliminating the occur-
rence of unsafe behaviours.
Without the entire workforce's
involvement, ownership of, and
commitment to the process, such
initiatives are most likely to fail.
In the petroleum refining business,
even a minor lapse/unsafe beha-
vior by employees or contractors
has the potential to lead to total
disaster. Organizational efficiency
is also hampered by the fact that we
have inherited a number of beliefs
and behaviour patterns from
bygone and simpler days.
The results of a well-planned and
implemented behavioural safety
system can lead to inculcating
workforce stewardship of safety
systems, lesser accidents or
incidents, near misses and property
damage, acceptance of the safety
systems and increased reporting of
defects, near misses, and accidents.
ARL Behavioural Study
ARL developed a customized
behavioural assessment tool to
gauge employees' behaviour. A
psychoanalysis of about 188
employees working in plants, crude
and product-handling departments
specifically. Operations,
Maintenance and HSEQ
departments were initially targeted
through the customized workplace
questionnaire and one-on-one
interviews. 19 cross-departmental
interviewers were selected from
different disciplines to allow the
interviewee to answer candidly.
Standardized questioning style and
recording techniques in a warm
and accepting environment were
followed to eliminate biases.
The questionnaire comprised of 32
questions divided into the
following 8 categories: attitude
towards safety within the
department; personal attitude
towards safety; working conditions
at workplace; supervisor attitude to
worker safety; job loyalty shown by
the employee; mployees attitude
and commitment towards safety;
training provided /needed; and
employees' view of HSEQ
department
Data Analysis
The answers to the 32 questions
were given a score ranging from 1
to 4, keeping in view the criticality
and nature of the category and
ARL's safety culture. The
employees' scores were calculated
as a whole, as well as for each of
the eight areas.
A benchmark was obtained by
alloting numbers to the highest
scores in each of the eight areas
with the highest number attached
to the desired safety behaviour. A
final benchmark of '76' was fixed
for the most desirable safety
behavior.
After getting quantitative data for
188 employees, the scores were
categorized into four grades.
Therapy and
Counselling Needed
The results of this study revealed
that 23 percent of the employees
had a score equal to or less than 60
and require ARL's immediate
attention and therapy and
counseling to avoid any misfortune.
Majority of the employees - 73
percent - had a score between 60
and 76 (grade B) and required
group therapy.
Summarized Results of
Behavioural Safety
Study
Grades Number of Percent- Type of
employees
(total 1988)
age therapy
required
Grade "A" 9 5 No
(>75)
Grade "B" 137 73 Group
(>60 & <76)
Grade "C" 37 20 Individual
(>50 & <61)
Grade "D" 5 3 Individual
(<51)
Ensuing Actions Taken
The findings of the study were
used by ARL to prioritize training
needs for groups of workers, based
on their behavioural patterns. The
study identified and revealed
employees' attitudes, behavioural
patterns and potential to engage in
unsafe behavior.
Based on these results, ARL carried
out subsequent planning and
developed customized training
programmes and individual/group
therapies, which are continually
used in ARL, to rectify negative
behavioural aspects of personality.
editorial note:
This case study is a self-presented
case study by the organization profiled
herein. The TBL team has accepted
and published it for reader informational
purposes, but does not take
responsibility for the verifiability of the
presumptions or facts included herein.

july-august 2008 35
futuristic angle

future scape:
an organization of one
by ramla akhtar
for tbl

The Shift: From Dis-integrity to Integrity

Traditional organizations were built on a model that separates

ownership and management from employees. It was a good
idea for its time, when it was possible for organizations that had
more knowledge and access to resources to, essentially exploit
the public. Traditional organizations have built-in impediments
to healthy communication such as the fact that communications
flow primarily top down and the organizations follow a control-
oriented approach based on division of labour which can
ultimately reduce productivity.

Now, times have changed. Knowledge is dispersed and has

become so accessible that one is just a Google search away A Disintegrated Organization
from the leading theories, formulas, how-to's and news. There
has been an 'acceleration' in our learning curve - which means
that each subsequent generation of humans takes much less
time to become more efficient. The world is flatter.

Secrets are open. Payments can be made online from people-

to-people. A mobile phone gives a Pakistani villager access to
his commodity's buyers, and Buddhist monks are urged by their Core
spiritual leaders to practice "engaged Buddhism". Employees Idea
are engaging directly with markets via blogs and social
networking websites such as Facebook.

Despite the traditional mindset that still exists to some degree in

organizations, convergence in a social, political, technical, and
moral sense is taking place. As a result of this universal shift,
organizations are changing too. An Integrated Organization

The Contemporary Self-Organizing Ends basically an idea "hub" around

Organization
The emerging organization is
breaking down the divides between
owner, manager, and employee: all
roles are assumed by one person or
group. Generally it all starts with
an idea around which a group of
free agents or entrepreneurs gather.
They are highly-skilled individuals
who have a common interest and
divide the task among themselves
according to their individual skills.
The work is project-based, and
legal relationships are 'open'.
Contracts are not enslaving and
group members may have other
project engagements.
Forced Structures
Free will and the strength of the
group's relationship and integrity
determine their sticking power.
Because they are accountable to
themselves, internal regulations
and self-scrutiny allows them to
stay competitive. Corrections are
made as performance or capability
gaps arise. An organization based
on such a model is vulnerable to
shift because "managers" cannot
exploit "employees" or fib about
their performance to "share-
holders." Therefore, it constantly
scrutinizes the external scenario to
study opportunities or threats.
Because such an organization is
which skills have gathered as
'spokes' to get things rolling, it is
knowledgeable on its own design
and area of expertise.
Change, to the members of an
intelligent organization, is a matter
of perceiving things accurately and
swiftly. As well as they perceive
change, they can modify their own
selves; they are not required to
convince a separate entity (an
owner, manager, employee). Hence,
they evolve to suit the new
circumstances. This is called "self-
organization." (Not very different
from how the very intelligent
"virus" works!)

36 www.triplebottomline.com.pk
Why Traditional Dis-
integrity No Longer
Works
Most of the troubles harrowing
today's organizations are rooted in
their disintegrated structure, which
pits one part against another. It is a
bit like the heart of a body taking a
disliking to the stomach. The results
are not nice!
Employee care and growth is seen as
a cost. Because the home is not the
office manager's problem, there is a
divide between work and life, with
one competitive to another. This has
led to high emotional and healthcare
costs globally, followed by turnover.
Curiously, this set-up perceives the
world as hostile. It is geared to
exploit more than just the compe-
titors. With the increased awareness
of the downsides of this approach
has come around a doubt about the
workability of this model. The truth
is that this structure will not cut it
any longer in a world where people
are joining hands to save the planet
and themselves and walls are being
torn down.
How Integrated
Organizations are Better
These organizations cut through
layers of expensive hierarchy and the
ensuing resentment. Collaboration is
not just a new tool. It is a character-
istic of such organizations. Decision-
making is transparent, speedy, and
agile. This subtle shift translates into
a dramatic reduction in litigation.
Diversity emerges as the group
automatically senses its "gaps" and
fills them. There is no third-policy to
bow to even when it's flying in the
face of common sense. People set
rules, not vice versa.
Work is based on passion - a
requirement as today's work
requires high levels of knowledge,
agility, and personal insight. Being
passionate about your work is
important as this fosters inspiration,
creativity and innovation. The
possibilities to a satisfied and
creative person's contributions are
limitless!
Through their very design, such
organizations are both geared to and
restricted to contribute, else they will
disintegrate as no policy nor external
funding nor can lies protect them
from external scrutiny. The final
measure of the goodness of these
organizations is their contribution to
the larger community.
Three special cases of contribution
possibilities are presented below:
Case 1: Innate Corporate Social
Responsibility
Whose responsibility is the
community anyway, when the
elements of an organization itself
don't get together? The issue of an
irresponsible organization could be
closely related to its elements being
competitive to each other. They are
designed not to collaborate. Is it not
surprising that as children we
sincerely want to make the world a
better place, and as adults, we derive
our earnings from exploiting it? This
personal-professional ethical
dissonance is based in a lack of
ownership.
The essence of Al Gore's environ-
mental campaign is that: "You
cannot teach a man something if his
salary depends on not under-
standing it." If salary is tied to
performance, which is measured as
reduced (internal) cost at any
(external) cost, it is easy to see that
this math puts the business interest
as inverse to the community's.
When a person owns a small
business, it is likely to be close to
his/her home, or in his/her home.
That is also true for an entrepre-
neurs' group. Their children, family,
friends, and lungs are breathing in
that environment. Peace and security
affect them. Social bonds exist within
that area. This exerts not just an
invisible social pressure, but more
importantly, it creates an internal
urge for responsibility. The entrepre-
neurs are directly answerable to
themselves and to their families.
They can now manage their work
and life, and are aware that others in
the group have similar priorities.
The group members do not see each
other as 'bits' of contract or policy,
but genuine human beings with
whom they have a personal relation-
ship. This creates an entirely new
ethic.
Case 2: A Faster Company Built on
Trust
I recently lunched with a group of
bloggers headed by a team that
proposed a code of ethics - which
turned out to be a result of their own
past 'worst practices'. Everyone
laughed and the larger group
decided this code is not in the spirit
of blogging; but can be turned into
guidelines on how to have a more
interactive or professional blog.
Business opportunities were
swapped and deals were closed; all
at the speed of a launch. Such fast
organization was made possible by
the trust that a blogger is ethically
responsible to other bloggers not just
by a sense of community, but also by
a fear of earning a nasty blog entry in
case of defection!
Case 3: Entrepreneurship Without
Cubicle Borders
'The Hub' is an idea for a collabo-
rative space for change agents. It
started in London and has spread to
other cities. Shared space is rented
by hours, and free agents sit in an
open space designed for communi-
cation and collaboration. Typically
the projects are social or civic in
nature. Multi-disciplinary teams
form and gather in the physical
space, and the culture is self-
evolving. Projects include women's
art businesses to technology camps
and films. Start-ups are born here.
This is the new shape of the
collaborative enterprise.
about the writer
Ramla is a social designer, futurist, and
writer. Her futurist consultancy, "NEXT> by
Ramla," is geared to design fresh solutions
for contemporary opportunities and
challenges. She can be reached at
ramla@nextbyramla.com
july-august 2008 37
indus basin irrigation system report
indus basin irrigation
system of pakistan
Pakistan, a country of
enchanting landscapes offers
a combination of beaches,
mountains, beautiful deserts
and valleys. Its vast farm
lands are sustained by the
Indus Basin Irrigation System
(IBIS), the largest contiguous
irrigation system in the world.
The IBIS irrigates 45 million
acres of farm land which
produces wheat, rice, fruits,
vegetables, sugarcane, maize
and cotton in abundance for
local use as well as for
export.
This report provides the
historical context in which the
IBIS was developed. It
discusses the economic
impact of the IBIS on
Pakistan, and provides
recommendations for some
current problems related to
insufficient drainage and
inefficient farming practices.
38 www.triplebottomline.com.pk
Historical
Background
The Indus Valley has been the
host to one of the most ancient
civilization of human history, the
Indus Valley Civilization. After
the extinction of the Indus
Civilization, new settlements
especially in doabs grew slowly.
New irrigation systems started to
evolve. Inundation canals and
small dams were constructed and
population grew all around this
area. In order to reduce the
occurrence of low irrigation
water supply the British
authorities, towards the middle
of the last century, started
modernizing and expanding the
irrigation system of the Indus
Basin.
Treaty Between
Pakistan and India
In 1947, the Indian sub continent
was partitioned by the British
into two independent states -
Pakistan and India. After the
partition a commission was set
up to resolve any issue that may
emerge as a consequence of the
by fazlur rahman siddiqi
for tbl
partition. The matter of
utilization of water resources of
Indus Basin was raised by
Pakistan. The boundary
commission, chaired by Sir Cyril
Radcliff, awarded control
barrages (situated very close to
the border) to India, while 90
percent of irrigated land lay in
Pakistan.
After a protracted negotiation of
ten years through facilitation of
the World Bank, the Indus Basin
Treaty was signed by India and
Pakistan in 1960 for distribution
of water resources in the Indus
Basin. According to the terms of
the treaty India was given the
exclusive use of the waters of the
eastern rivers namely Ravi, Sutlej
and Beas. Pakistan was not given
its full historic share and was
allocated only 75 percent of its
legitimate share of the waters in
Indus Basin. Consequently,
Pakistan agreed to embark upon
a gigantic project nicknamed as
"Indus Basin Replacement
Works". The extensive
undertaking involved the
construction of two major dams,
five barrages and eight link
canals.
Pakistan's IBIS
Pakistan's economy is largely based
on its agricultural produce. Water
is therefore a critical resource for its
sustained economic development.
In order to fully utilize the river
water resources, the IBIS has
emerged as the largest contiguous
irrigation system in the world. The
IBIS comprises of three large dams,
eighty five small dams, nineteen
barrages, twelve inter-river link
canals, forty-five canal commands
and 0.7 million tube wells In
monetary terms, this network is the
biggest infrastructure enterprise of
Pakistan accounting for
approximately US$ 300 billion of
investment.
Water Ability of the IBIS
There are three main sources of
water availability in the Indus
Basin:
A. The average annual flow of
Western Rivers of Indus Basin
is approximately 142 million
acre feet (MAF). About 104
MAF of this water is diverted
for irrigation purposes and
about 35 million acre feet
outflows to the Arabian Sea.
B. Rain Water:
Another source of water is the
rain fall. Irrigated areas of
Indus Basin receive on average
40 million acres feet of water
annually.
C. Ground Water:
The third source of water is the
ground water. It provides
approximately 40 percent of
crop water requirements of the
country.
Challenges in Indus
Basin Irrigation System
For any sustainable irrigation
system that is dependent on river
water supplies, it is necessary to
have a system of affluent disposal.
However, when the British
engineers designed and constructed
the barrages and canals in Punjab
and Sindh, they did not install an
affluent disposal system. This lack
of an affluent disposal system gave
rise to the twin problems of water
logging and salinity. The problem
is currently being addressed
through construction of a network
of disposal drains, many of which
have been completed while more
are under execution.
The Economic Impact
of Indus Basin
Irrigation System
The agricultural produce, in
addition to providing food security
constitutes:
A. 23 percent of GDP
B. 70 percent of total export
earnings
C. 54 percent employment of
labour force
The overwhelming majority of its
produce comes from the areas
irrigated in the Indus Basin. The
IBIS is therefore essential in
sustaining the agriculture and
consequently economic well-being
of Pakistan. The Indus Basin now
serves as the bread basket of
Pakistan. Its land use is furnished
below.
LAND USE IN PAKISTAN
CATEGORY
1. Geographical Area (total area)
2. Area suitable for agriculture
3. Irrigated + Barani
4. Irrigated area by all sources
5. Additional area that can be brought
under irrigated agriculture
Current Problems and
Recommendations
Farmers in Pakistan receive their
share of irrigation waters on a
rotational basis. To protect the right
of share of their water, the farmers
are using more than the optimum
quantity of water required for
healthy crops. Lack of modern
irrigation techniques and
agricultural practices further add to
the wastage of irrigation water.
Some solutions outlined below can
potentially serve to address this
issue:
1. Increase plantation of fruit
trees.
2. Expand forested areas.
3. All existing dams small and
large should be used for fish
breeding and harvesting.
4. Develop agricultural based
industries and timber factories
in the rural areas to provide
employment to small farmers
and increase the percentage of
value added goods for export.
5. Group small farms into larger
units for cooperative farming
using the latest irrigation and
farming techniques and
modern agricultural practices.
6. Increase the production of
beans, lentils and edible oil
seeds to reduce their imports.
7. Develop pastures for cattle
farming and increase milk and
meat production.
8. Big land holdings more than
five thousand acres of area
should be made available for co
operative farming.
9. The level and standard of
research should be enhanced in
the existing agricultural
universities of Pakistan.
AREA
(MH) (MA)
79.3 196.0
31.2 77.1
22.1 54.5
18.0 44.5
9.2 22.6
about the writer
Fazlur Rahman Siddiqi is Member
Federal (Retd.) of Indus River System
Authority, Government of Pakistan,
Islamabad.
july-august 2008 39
opinion: consumer protection

consumer: king or slave?

by hamid maker
for tbl

T
he consumer: the king, the
epitome of the downstream
value chain; the recipient of
massive corporate efforts. Or
corporate scams? Misleading
advertisements? Victim of hoarding
practices?

Consumer Ethics
and CSR
CSR is beyond the letter of the law.
It embodies the spirit of trust,
respect for the rules of trade,
environment and society's,
including consumers' interest. It is
about how corporations meet the
true needs of society and how it
avoids unethical business practices
or misinformation.

CSR is foremostly about how a

company makes its money. We
must ask if the company's core
business itself is adding real value
to its consumers, for instance by
selling a harmful, addictive
substance, or by selling
nutritionally fortified food at
affordable prices. A progressive
and socially responsible
corporation sets its own code of
ethics and respects and
acknowledges its responsibilities,
which are practiced by its
employees at all levels. Thus
protecting employees and
consumers.
From the consumers' point of view,
a socially responsible corporation
should also be concerned about the
needs of its consumers. It should
ensure that it provides good quality
products at a fair price to them and
does not exploit consumers,
especially children, with
misleading and unethical
advertisements. It should ensure
that their products and production
processes do not cause any damage
to human or environmental
environment.
Some basic consumer rights
include: the right to safety,
the right to be informed, the right
to choose, the right to be heard, and
the right to consumer education.
A socially responsible corporation
offers superior values to its
customers by acknowledging social
responsibilities. It is the moral and
ethical obligation of corporations,
who believe in Good Manufac-
turing Practices (GMP), to observe
a code of conduct in manufac-
turing, marketing and advertising.
Corporations have a moral
responsibility to their 'brand
supporters' who depend on them
and have trust in them to maintain
quality and standards and observe
and respect local and international
laws.
CSR: A Growing Need
CSR is a growing need in today's
complex business environment and
prudent corporations have realized
that their role is not only to make
profits, but also to be recognized as
socially responsible enterprises. As
such, the concept of CSR is assu-
ming new dimensions. Leading
corporations must set a positive
example which others can follow.
At present the general perception of
a corporate organization is that it is
out just to make money. This per-
ception has to be changed and a
relationship between corporate

40 www.triplebottomline.com.pk
citizens and consumers citizens has
to be established.
Why CSR?
A big question is why would
companies accept CSR? The answer
is, because the public expects the
businesses to help the community
in different ways and to invest back
into the customers to whom they
sell their products.
Companies must have a sense of
responsibility towards the society
from which they earn their profits.
Their executives must be men of
ethics, with strong social commit-
ments and who can transform their
ideas and vision of corporate ethics
into corporate responsibility.
This will in turn create greater
customer loyalty towards busines-
ses resulting in increased sales.
Social groups and public opinion
would support plant expansions,
innovation, and introduction of
new brands and products and so
on.
CSR = Corporate
Philanthropy?
CSR in Pakistan, to a large extent,
seems to focus on how much corpo-
rations contribute and donate to
health, environment and education
programmes, and overlooks its
moral obligations and commitment
to consumers. If corporations do
not serve society and their consu-
mers in letter and in spirit, then
there will be a gradual breakdown
of trust and respect for corporations
and we will witness a growing
'anti-corporate' movement.
In order to protect consumers from
unscrupulous manufacturers, good
manufacturing practices and CSR
must be encouraged. Corporations
must step forward and and set an
example and voluntarily observe
principles of business ethics by
providing quality products at a fair
price to consumers.
This involves the efforts business
organizations undertake to meet
their responsibilities both at econo-
mic and social levels. Consumers,
for example, expect manufacturers
to supply reliable, quality and safe
products at a fair price. Stock-
holders demand that corporate
operations be managed efficiently
and that their investments be
rewarded by dividends or
improved market value.
As such, a balance has to be found
and a relationship between top
management's commitment to
ethics and its commitment to
financial concerns has to be
established. CSR is a long-term
investment, but one that is very
lucrative as it pays very high
dividends. It differentiates a
corporation from the others and
creates customer satisfaction and
brand loyalty.
Stakeholder
Relationships and
Sustainability
Good corporate citizenship cannot
be easily imitated because it is
based on sustainable relationships
that the organization creates with
all of its stakeholders. This means
that corporations effectively
manage stakeholder relationships
and engage with their stakeholders
in a proactive manner. They contri-
bute to the wellbeing of all stake-
holders and the community at large
to promote sustainable growth and
development. For instance, consu-
mers enjoy the benefits of this
commitment directly, because a
good corporation treats them fairly
and continuously strives to satisfy
their changing needs.
Such actions help forge tight bonds
with consumers, employees, supp-
liers, and community leaders.
Recently, a leading corporation
introduced strict environmental
standards for the packaging of the
products it stocks. This sent a very
positive message to its customers,
that is, that the corporation 'cares'
and is socially responsible.
CSR Challenges in
Pakistan
Businesses and social bodies across
the globe are regulated by rules and
regulations for their operations.
These rules are legal bindings,
regulating the institutions to
behave in a particular manner.
However, for CSR, there are no
specific legal or binding rules. Due
to the absence of consumer
protection laws and poor and/or
lack of enforcement of existing
laws, sub-standard and counterfeit
products have flooded third-world
markets and consumers are blatan-
tly cheated and misled by glossy
and misleading advertisements.
A sad example is our markets,
where over 50 percent of the
products Pakistani consumers buy,
are either sub-standard, adulterated
or counterfeit. Unscrupulous
manufacturers refill empty bottles
and tins of branded products and
spurious and counterfeit products
are being produced and marketed
under brand names, cheating the
consumers, who think they are
paying for branded products.
In order to combat this menace, an
aggressive campaign must be
launched against these unscrupu-
lous manufacturers, who are
deliberately cheating the consumers
with sub-standard and counterfeit
products and gaining ill-gotten
profits. Just establishing consumer
laws and standards is not sufficient
in developing countries, where
laws are flouted with impunity. As
such, a procedure by which govern-
ments are obligated to enforce
consumer laws and standards,
must be given due and urgent
priority and attention.
about the writer
Hamid Maker is the
mastermind behind Helpline
Trust, which advocates good
governance, accountability
and a code of conduct in
government and society and
encompasses the
enforcement of the rule of
law - to improve the quality
of life of the populace. After acquiring his
education from UK, Hamid Maker joined his
family business and following his retirement, the
Helpline Trust was inaugurated.
july-august 2008 41
5 minutes with the ceo
csr: 5 minutes with the ceo
Evidence is accumulating that
Corporate Social Responsibility
(CSR) is good for business in the
medium to long term. CSR is,
simply, about treating your
stakeholders in an ethically
responsible way. It takes time to
put into practice and is not without
cost. But there are commercial
benefits which justify the time and
effort.
CEOs - with a few exceptions -
don't have much time, a problem
made worse by the fact that they
tend to last in their positions, on
average, about 4 years. At a recent
CSR conference, sponsored by
MHC International Ltd (MHCi), a
former CEO said with some
humour "the first year is getting to
know the job, the fourth year is
spent working out how to save
your job year and so there are only
two years in which a CEO can take
on a cynical Board and fight for
CSR". More seriously, he advised
CSR professionals to be more
commercial - if they are lucky, they
will initially have at most 5 minutes
to convince a CEO of the merits of a
CSR policy. So what should an
advocate of CSR say?
There are Four Main
Points:
First, what is CSR all about? The
definition above, 'treating
stakeholders in an ethically
responsible' way begs, of course,
the questions of who are the
stakeholders and how to treat them
ethically. It is becoming accepted
that there are primary stakeholders
- management, shareholders,
owners, employees, consumers,
42 www.triplebottomline.com.pk
by michael hopkins
for tbl
contractors and secondary
stakeholders - environment,
government, community, etc.
Ethics is a bit like beauty, you know
it when you see it but find it
difficult to define!
Second, what are the key
advantages of being socially
responsible? The main ones are:
Reputation is improved among
staff and customers .
Productivity is improved
through increased innovation
and efficiency.
Shareholder value is increased
as social investment funds target
the company.
The customer base is widened
with no risk of losing existing
ones.
Motivation and commitment of
staff is improved.
Recruitment of young bright
people is enhanced.
Personal satisfaction of
management is increased.
Third, what are the main steps that
need to be taken? These steps will,
of course, build upon many
activities already underway but
probably in different departments,
divisions and countries. Thus what
does business need, at minimum, to
do? This is likely to proceed in
stages but immediate actions would
include:
Win Board support for the
introduction of a CSR policy.
Lead from the front.
Appoint a CSR manager, but
keep responsibility shared.
Understand available CSR
measures.
Decide upon the key
stakeholders.
Take stock of measures already
underway.
Decide on whether to produce a
social report.
Report adherence to standards,
be open.
Contribute to CSR dialogue.
Fourth, what are the costs likely to
be? These are:
Increased costs of focus group
sessions with stakeholders.
CSR manager and budget.
Training of staff on CSR.
Production, publication and
distribution of social report.
Website section devoted to CSR.
At the recent ESCP-EAP European
Management Conference in Paris
for business students, the role of
the CEO in driving the CSR process
was highlighted as crucial: as the
captain of his/her ship of
commerce, what is needed is not an
engine to power the ship, nor a
rudder to steer but a compass to
point the way. CSR is that compass.
about the writer
Dr. Michael Hopkins is Managing
Director of MHC International Ltd
(MHCi) and is an economist
specialising in socio-economic issues.
He has broad international experience
and almost two decades of action in
CSR.

mad, sad and bad management
by fariha rashed
for tbl
"I believe skepticism & doubt are the
first steps to knowledge" says Adrian
Furnham, author of the book Mad,
Sad & Bad Management. This rather
amusing and enlightening book
includes an abundance of analyses on
aspects of contemporary business and
management. Its central theme is
focused on incompetence rather than
competence, stupidity rather than
wisdom and insanity rather than
sanity. Instead of painting a rosy
picture about Business Management,
this book takes a keen, rather than a
pessimistic look at management
practices, managers and management
science.
The book commences with a bang! -
An aperitif stating that the essays
within the book all focus on people
problems. The aperitif further
describes the kind of people running
businesses, as well as those working
beneath these more often than not
"difficult, demanding, deranged"
senior managers. The author explains
that people of a certain nature are
attracted to particular sorts of jobs -
"obsessives are attracted to 'check-
jobs' like quality control, health and
safety and so on". The section 'Under
New Management' is quite an
informative read as Adrian analyses
the dramatic effect of a change of
board in any business. The change
usually always takes place at the top
level, when quite suddenly the
company sees an altered management
team. Here the author draws
comparison with what is imperative
to ensure the smooth sailing of an oil
tanker - "If a good manager puts in
place procedures and processes that
work, after a time, one has a smooth
operation; a happy ship, a nicely
tuned engine." Adrian goes on to
suggest that new management usually
overturns all policies, proceedings,
processes and products of the
previous boss in attempt to come
across as unique and 'in charge from
now on'.
The rest of the book is broken down
like a dictionary with each chapter so-
to-speak, beginning with a letter of the
alphabet [A to Z]. Some fifty short
essays of 800-2000 words on some
characteristic of modern business or
management can be found within
these pages. The author explains that
the source of inspiration for these
essays are: [1] 'serious' academic
literature on management [2] popular
how-to-do-it books written by self-
appointed experts [3] newspaper
reports / magazine articles on
managers and management by 'lazy
journalists'.
The book covers aspects of
management such as appraisal
schemes, the ugly reality of business
travel made to "look stylish, romantic,
even exotic", creativity and how to
measure it, culture change and how to
manage it, fitting the right person to
the job [or vice versa?], growth,
development and getting wiser, guru
babble [i.e. management science], how
to manage holiday stress, whether
integrity can be measured or not, job
analysis, managerial courage or as
Adrian describes it "people walking
over hot coals", managing the under-
performer, and managing the
customer-facing employee who often
deals and behaves with clients as his
manager deals and behaves with him
[a trickledown effect].
Adrian goes on to talk about the
natural history of management fads,
stating that stressed managers follow
the age old trend of finding "cheap,
quick and effective solutions to their
intractable problems" never realizing
that they don't exist. The author draws
a parallel with food diets that never
work. Adrian also writes about and
criticizes references as a source of data
book in focus
companies rely on while selecting
who they hire. He lists the seven
secrets of a highly successful
company.
The book similar to the Aperitif in the
beginning, ends with a substantial
digestif where the author describes
four sub-civilizations which according
to him dominate the business world -
the Saxon, Teutonic, Gallic and
Nipponic. He also dwells here upon
corporate and national culture and
how it may or may not affect
competence within an organization.
Adrian goes on to talk about the
approaches used to describe culture
and its impact - these he labels as the
Categorical and Dimensional
Approaches. In his section on
Corruption and Incompetence Adrian
ponders over and discusses whether it
is possible to be competent in a
corrupt organization or country. Of
particular importance in this section is
The 2001 Corruption Perceptions
Table which is a corruption index
published every year by various
organizations. It reflects the degree to
which corruption is perceived to exist
among public officials and politicians
- Pakistan is ranked as one of the most
corrupt in this table, with a score of
2.3. Finland is listed as the least
corrupt of all.
This is a book to be immersed into as a
reader. The author, being a professor
in psychology at the University of
London, has delved more on the
psychological effects of business
management aspects. The reader must
be warned that Adrian has challenged
set business / management practices
and forced one to think logically about
what makes companies and the
individuals working in them,
competent.
The language used is witty, and at
times sarcastic [maybe a tad too much
in places!]. The book is an easy read,
owing to the way it has been broken
down. Overall the book is informative
and may end up changing ones
opinion on quite a few important
aspects of business management. It
may infuriate the reader at times, but
it is guaranteed to educate also!
july-august 2008 43
musings
do more
by praetor
for tbl
"Government of the people, for the
people, by the people," so spoke
Abraham Lincoln, the sixteenth
President of the United States in
1863. All very well and it works for
many. But the reference to Lincoln
here is not to launch into a political
discourse on the merits and
shortcomings of popular democracy.
It is just to highlight that the
proverbial 'people' came into the
spotlight of good governance a long
time ago, even if at a governmental
level if not at a corporate or the
commercial world level. For until
very recent years - past 3 decades at
best - the 'people' did not really
figure in the governance style of the
corporate sector. At least not beyond
in a handful of countries. Even at the
political level, not all were equal.
Remember that discrimination
against Afro-Americans in the USA
did not taper off until the late 1950's.
When Lincoln espoused people
power in 1863, the world population
was about 1.3 billion. Today it is over
6.8 billion. An over 420 percent
increase in less than 150 years. The
planet is bursting at its seams with
humanity and dying from the
pressures this humanity is imposing
on it. Today it is clear that
addressing people issues, be it the
global food crisis or high energy
44 www.triplebottomline.com.pk
costs or any other, cannot remain
solely the responsibility of
governments. Everyone has to play a
part, and for stakeholder mapping
we can look at civil society in terms
of layers. So we start at the
individual and go on to the family,
neighbourhood, city, state and
country. Then we add in layers on
functionality basis in between, where
each fits in - local government,
associations, professionals,
academia, media and of course the
corporate sector. All are important
stakeholders.
Perhaps the corporate sector needs to
'do more', relative to the other
stakeholders. Why? For the simple
reason that if society does not
progress and prosper there will
increasingly be fewer takers for the
goods and services that the corporate
sector is churning out. So
strengthening civil society becomes a
self-serving goal if nothing else.
Logically speaking, the contribution
to a cause from any source must be a
balance of how important that cause
is to the source and the capability of
the source to address the issue. In the
case of an individual (lowest layer of
civil society) an issue like the world
food crisis may be directly relevant
or quite important because for the
individual it means rapidly rising
prices and even non-availability of
foodstuffs. But the capability of an
individual to do something about the
crisis is quite limited. By comparison
the global food crisis may not be that
important directly for the corporate
sector as a whole, but certainly its
ability to help alleviate the crisis will
be substantially larger than that of
the individual's. Larger not only in
terms of financial outlay that can be
spent, but larger also in terms of
structural direction and logistics
support that the corporate sector can
extend with its huge and multi-
disciplinary human resource
expertise, its trans-national and
multinational presence and its
invaluable inroads into the opinion-
forming and decision-making
process at all levels, from the
legislature and the executive at the
individual governmental level to the
policy formulators at the level of
international developmental and
financial institutions.
And so the “CSR of the company, by
the company and for the people”
must assume an increasingly larger
role as world population continues
to grow unchecked and available
resources of all kinds continue to be
used up at an alarming rate, some if
not most, being irreplaceable.