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Case studies - CSR in Pakistani perspective

A selection of companies based on as a sample on various industries of Pakistan. 1. Citizen-Police Liaison Committee ( CPLC) 2. National Refinery Limited 3. Pakistan Petroleum Limited 4. Shell Pakistan 5. Pakistan State Oil (PSO) 6. Pak-Arab Refinery Company Limited 7. Sui Southern Gas Company ( SSGC) 8. Askari Commercial Bank Limited 9. Khadam Ali Shah Bukahari (KASB) Securities 10. The Bank of Punjab 11. First Woman Bank Limited ( FWBL) 12. Dollar East Exchange Company (PVT) Limited 13. Cresent Steel and Allied product Limited ( CSAPL) 14. ICI Pakistan Limited 15. Engro Chemical Pakistan Limited 16. Soccer Ball industry of Pakistan 17. Unilever Pakistan limited 18. National Foods Pakistan Limited 19. Proctor and Gamble Pakistan 20. Geo TV

Citizen-Police Liaison Committee (CPLC):

CPLC is a joint venture of the private and the public sectors. The few concerned and compassionate citizens, initiated in 1989 to establish the CPLC, which is over the period, become an important component of police system in Karachi. Rooted in the business community and dependent largely on private donations and on the volunteer work of business community. It conduct crime analysis, plays an important role in the investigation of kidnappings, and provides a range of police related services directly to poor and rich alike without any discrimination.1 So in this way CSR motivate citizen to support police in fighting crime, after passing almost 18 years we observed that the crime rate went down due to its effectiveness. This committee has database for stolen vehicles, criminal records, geographic information system for spatial crime analysis and a computerized identity kit for developing sketches of wanted criminals.

National Refinery Limited:

Industrial Relation Journal, country paper on CSR sixth Asia Pacific high level employers conference Dhaka 2-3, December 2003

Pakistan after its emergence as a geopolitical entity has a number of aspirations, which are relevant and vital for its sovereignty, autarky and development. The sustenance and expansion of countrys Energy, Oil and Gas sectors is essential for the availability of energy carriers for their utilization and contribution to countrys industrial development and economic growth. National Refinery Limited has made significant and notable contribution to the countrys processing and supply requirements of countrys mineral oil energy carriers, lube base oil and asphalt requirements of the country since over thirty year period. It has acquired expertise and capability in the important and diverse areas of oil processing. National Refinery Limited (NRL) is countrys largest Petroleum Refining and petrochemical complex having a wide range of Fuels, Lube Base Oils, Asphalts, BTX petrochemicals and specialty products in its product range. This has provided it a unique and competitive edge. NRLs quality products are utilized for both domestic consumption and exports. NRL has a well-defined Environmental Policy which plays a key role in its decision making process to ensure compliance with relevant laws (NEQS). NRL achieved a landmark by acquiring ISO-14001 and OHSAS 18001 certifications. This success exhibits NRL employees commitment towards HSE policy by implementing Environmental Management System and Occupational Health and safety Management System.2 Available information only describes one indicator of the index rest of management practices, social posture and others did not find in the available sources3.

Pakistan Petroleum Limited:

PPL remains a leading oil and gas exploration and production company, and is the operator of major gas field in the country. Above all this company gets the credit for not only having laid the foundations of the natural gas industry in Pakistan, but also provided a substantial energy base in its formative year, landing valuable support to the national economy. Gas production by PPL duly accounts for about 30% of the total gas production in the country. Its portfolio of developed and producing fields consists of four operated (Sui, Kandhkot, Adhi and Mazarani) and four non-operated fields (Qadripur, Miano,Sawan and Block-22). In keeping with the demands of socio-economic changes, PPL has continuously enlarged and improved its role as good corporate citizen since its origination of business in 1950. It has set up a PPL welfare trust which undertakes community development projects in specified areas, in consultation with all its stakeholders particularly the local community. The sustained community development activities are focused on improving the quality of health care services, education facilities and developing infrastructure for the benefits of the population around areas of companys business operations.4

Shell Pakistan:
2 3

National Refinery Limited Economic Review 2-3, 2005 Ibid 4 Pakistan Petroleum Limited Economic Review 2-3 2005

Shell Pakistan is one of the famous companies in the oil and gas sector of Pakistan. Shell brand name has a 100 year history in this particular area of world. From 1899 till 2007 it has made several joint ventures and mergers but Shell Pakistan is its final identity. Nowadays Shell is working with a mission of sustainable development and allege that there future is linked with the future of Pakistan. The company is of the point of view that society's expectations here in Pakistan from the big business are changing. These expectations include safe places to live and work, a healthy environment, conservation of the bio-diversity, environmental protection, clean air, clean water, reasonable return on investments and job opportunities, to name a few. Shell Pakistan believes that the way to manage these challenges is through a commitment to the principles of Sustainable Development. These principles include the robust profit generation, value delivery to the customers, environmental protection, and management of resources, providing benefits to the communities, providing safety and respect to the people and working with stakeholders. Shell being a responsible corporate citizen has always contributed in society through various activities and Shells bulk oil installation at Machike is no exception. Inline with Shells policy on "Shell in Society", a free eye testing and medical camp was arranged on 9th April 2005 at Machike in collaboration with Layton Rehmatullah Benevolent Trust (LRBT). In order to follow its principles of sustainable development Shell is involved in number of activities which can provide benefits to the individual and society at large. These activities involve the free eye camps and medical camps in the northern areas of Pakistan, Shell road safety program and Shall Tameer program. Shell Pakistan has showed its full commitment to the benefits of society by its above mentioned activities.5 Being a responsible corporate citizen Sell Pakistan invests from its social investment in the four social sectors which are education, health, environment and heritage. Shell Pakistan provides funds to different hospitals, educational institutes, rich heritage sites and other social development programs notable amongst which are Layton Rahmatullah Benevolent Trust (LRBT), The Kidney Centre (TKC), Behbud Association, Human Rights Education Program and The Book Group.6 Again the CSR index approach is taken as building social posture of the company in others words social image and neglecting the other three important indicators of CSR. The only information made available in order to interpret CSR index by the company is related to social posture. Management practices, environmental issues and key corporate governance issues are not being highlighted by Shell in its practices.

Pakistan State Oil (PSO):

PSO is the oil market leader in Pakistan enjoying over 79% share of Black Oil market and 58% share of White Oil market. It is engaged in import, storage, distribution and marketing of various POL products, including Mogas, HSD, Fuel Oil, Jet Fuel,
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Shell Pakistan www.shell.com http://www.shell.com/home/content2/pken/society_environment/social_investment/communityandsocial_10171014.html

Kerosene, LPG, CNG and petro-chemicals. This blue chip company, the winner of "Karachi Stock Exchange Top Companies Award" and a member of World Economic Forum, has been a popular topic of case studies in Pakistan and abroad based on its radical corporate turnaround over the last few years. Being one of the successful companies PSO give high consideration to the needs of its stakeholder and environment. The company has a firm belief that its good reputation is linked with the good corporate behavior. So the company considers Corporate Social Responsibility as an important factor in its day-to-day dealing with stakeholders. So in the perspective of CSR the company has its distinctive policies which include its efforts to create such an environment in which each and every individual has the equal opportunity in achieving business success. The company wants to improve the economic conditions of Pakistan by job creation, business engagement and philanthropy. Apart from it the company also includes the policies of nurturing the environment, availability of health care and educational facilities to the community. The corporate citizenship activities include the installation of the traffic signals in all the major cities and towns in the country. In providing equal educational opportunities to the citizens PSO has provided scholarships to meritorious and deserving, business management and engineering student at prestigious universities like GIK Institute of Engineering Science & Technology, Topi, NWFP; Institute of Business Administration, Karachi, Sindh; the Quaid-i-Azam University, Islamabad; University of Engineering & Technology, Khuzdar, Baluchistan; and the Punjab University, Lahore. PSO has also provided financial and other assistance to genuine charitable projects like Shaukat Khanam Memorial Trust, The Kidney Center, Al-Umeed Rehabilitation Society, Family Education Services, Darul Khushnud Center for Mentally Handicapped, etc. In order to pay respect to the health, safety and environment of employees, customers, suppliers, partners and community neighbors the company fosters the sustainable use of natures resources with the motto of: Safety First and Integrity Always.7 The role of PSO is again toward building social image and ignoring the true concept of CSR especially keeping in view management practices and environmental concerns there is no information made available on PSO website and its annual reports.

Pak-Arab Refinery Company Limited:

PARCO was incorporated as a public limited company in 1974. It is a Joint Venture between the countries of Pakistan and Abu Dhabi. The share holding in the Company is in the proportion of Government of Pakistan (60%) and Abu Dhabi Petroleum Investment (ADPI) (40%). PARCO has now been in existence for more than 30 years. Its corporate voyage through these years has been full of important milestones. In the past 17 years PARCO has grown in size and strength and is leading its way to a much brighter future.

http://www.psopk.com/cr_activities/ PSO CSR activities review 2004.

In the vision statement of PARCO it has been mentioned that companys biggest challenge is not only to figure out what future will be the right one, but also to choose a future that will give a definite competitive advantage to the company in the longterm. This very statement, the mission statement and the other information disclosed by the company do not portray the image of the company as a socially responsible. By taking the detail of all the information available on the website of the company it is quite clear that though the company is playing a good role for the economic development of the country by creating jobs through its different projects and also satisfying its shareholders but the information fails to mention the steps taken by the company for the betterment of the environment, education and health facilities provided to the community. So, it is right to say that if the company is performing the above mentioned CSR activities then it should properly disclose the information or if it is not performing such activities then it should take steps related to these activities in order to get the public confidence and long term success.8

Sui Southern Gas Company (SSGC):

The SSGC Company was formed on March 30, 1989 by following a series of mergers of three pioneering companies, namely Sui Gas Transmission Company Limited, Karachi Gas Company Limited and Indus Gas Company Limited. Sui Southern Gas Company (SSGC) is Pakistan's leading integrated gas Company. The company is engaged in the business of transmission and distribution of natural gas besides construction of high pressure transmission and low pressure distribution systems. SSGCL transmission system extends from Sui in Balochistan to Karachi in Sindh comprising over 3,200 KM of high pressure pipeline ranging from 12 - 24" in diameter. The distribution activities covering over 1200 towns in the Sindh and Balochistan are organized through its regional offices. An average of about 357,129 million cubic feet (MMCFD) gas was sold in 2006-2007 to over 1.9 million industrial, commercial and domestic consumers in these regions through a distribution network of over 29,832 Km. The company also owns and operates the only gas meter manufacturing plant in the country, having an annual production capacity of over 550,150 meters. The Company has an authorized capital of Rs. 10 billion of which Rs 6.7 billion is issued and fully paid up. The Government owns the majority of the shares which is presently over 70%. The company is working with a mission to provide quality services to its customers by maintaining high level of ethical and professional standards through optimum use of resources. The company is committed to be responsible for the environment, community and stakeholders. In order to prove the company socially responsible these are the steps taken by the company management.


1. On November 30, 2006 SSGC established a Marie Adelaide Leprosy Centre (MALC) at Mirpur Khas. 2. On November 14, 2006 at Sandspit Karachi SSGC provided finances to the NGOs who joined each other to perform beach cleaning activity. The activity was organized by WWF as a part of the Indian Ocean South East Asia (IOSEA). Engr. Naeem-ur-Rehman Akhoond, SGM (MS) was the Chief Guest on the occasion. Speaking on the occasion, he appreciated WWF's efforts for nature conservation and highlighted SSGC's commitment and contribution to this cause. 3. In August 2006 SSGC has loaned two fully equipped buses in addition to providing a Mitsubishi high roof coach to the University of Balochistan (UoB) at the request of Brig (Retd.) Agha Ahmed Gul, the Vice Chancellor, so that transport difficulties faced by the students of the university could be mitigated. 4. SSGC had organized 3rd Independence Day Karachi-Hyderabad Cycle Race held on Sunday, September 10, 2006. 54 cyclists from all four provinces as well as five departmental teams comprising of SSGC, WAPDA, Pakistan Army, Pakistan Ordnance Factory (POF) and Pakistan Railway participated in the race. 5. SSGC also grant scholarships to the students at Lahore University Of Management Sciences. These scholarships are given to the students on merit bases.9 If we considered the above mentioned contributions in the CSR practicing then it only covers the corporate philanthropy. However considering the other three indicators of management practices, environmental concerns and corporate governance are not fully addressed by the given literature for instance website, annual report.

Askari Commercial Bank Limited:

Askari Bank is one of the important players in Pakistans financial service industry. Askari Bank is now leading the way to the most modern and dynamic banking in the country. Askari Bank was incorporated in October 1991 and started its operations in April 1992. Since then it has expanded into a nation wide presence of 74 branches, connected online and supported by a network of ATMs. Askari Bank has also played a role as a corporate citizen. It has made generous contributions in the areas of supports, culture, poverty alleviation, women & child care, health & medical sciences, education, human development and scientific research. It has sponsored international squash tournaments where professionals from all over the world participated. Askari Bank has also sponsored various other support tournaments, including Golf at both amateur and professional levels. The Bank has contributed towards social awareness programs for AIDS, water conservation and blindness, and has promoted the countrys cause on international forum by co-sponsoring the first interactive electronic encyclopedia on Pakistan.10 To some extend areas related to community development are being fulfilled by the bank. However unable to interpret the true spirit of CSR concept. The role of CSR is


http://www.ssgc.com.pk/ssgc/society/ Askari Commercial Bank Limited Economic Review 2-3, 2005

being perceived again as corporate philanthropy and ignoring the other indicators of the index.

KASB Securities:
The KASB Group was established by Khadim Ali Shah Bukhari in 1958. This group has long-standing traditions of excellence in financial services in Pakistan. It is known primarily for investment banking, research/trading and asset management. In 1993, KASB became the local partner for the international investment banking firm, Merrill Lynch. Recently, Merrill Lynch acquired an equity stake in KASB Funds. This Group is made up of KASB Securities, KASB Funds, KASB Capital, KASB Direct and KASB Bank. The group has also diversified its interest with investments in real estate, technology, and oil and gas, while solidifying its leadership in financial services. This group is of the point of view that their continued success and growth is a reflection of their innovative approach to business and commitment to customers and community. KASB follows the view that the way in which they interact with society has an impact on their business and on their reputation. So as a firm and as an individual they have always strived to give back to society by contributing their time and resources through four key initiatives which includes: the training of employees in order to make them the leaders in their fields, active sharing of views in shaping policies of the country, showing commitment to the social welfare projects and promoting development sports and culture.11 KASB is looking forward to improve its image through imparting spirit of CSR. However lack of evidence being provided in available information that how they are implementing CSR approach. The interpretation of CSR is perceived by KASB as corporate philanthropy and others indicators are ignored as per the information available from the web site as well as annual reports.

The Bank of Punjab:

The bank of Punjab was established in 1989 under The Bank of Punjab Act 1989. The status of scheduled bank was given to it in 1994. Currently the Bank of Punjab is working as a scheduled commercial bank and has the network of 271 branches in all major business centers of the country. The services provided by the bank are the Deposits in Local Currency, Client Deposits in Foreign Currency and Remittances. The bank also gives advance to Businesses, trade, industry and agriculture. The Bank of Punjab has introduced a new era of science to the nation under experience and professional hands of its management. In order to contribute to the national economy the Bank of Punjab has played role through mobilization of previously untapped local resources, promotion of savings and by providing funds for investments. The bank has provided attractive rates of profit on all types of deposits, opening of Foreign Currency Accounts and handling of Foreign Exchange business such as Imports, Exports and Remittances, Financing, Trade and Industry for working capital

KASB: www.kasb.com/corp_citizenship.htm

requirements and money market operations. The Bank has a cautious and constructive lending policy and it is based on principles of careful lending with maximum emphasis on security. As agriculture is considered the backbone of the economy of Pakistan so in order to strengthen the economy the Bank of Punjab has introduced "Kissan Dost Agriculture Finance Scheme" to small farmers.12 Though the bank has provided the Kissan Dost Agriculture Finance Scheme to the farmers in order to establish the agriculture sector of Pakistan economy but apart from it there is not a single activity mentioned on the website of the bank which can witness that the bank has also played role for the betterment of the community. No doubt the bank has provided several services but all of them are on the cost of the customer. There is no information available on the website record that can present it as a social responsible bank.

First Women Bank Limited (FWBL):

First Women Bank Limited was incorporated as a Scheduled Commercial Bank in Public Sector as Public Company Ltd by shares on 21st November 1989 Under Companies Ordinance 1984 & Commenced its business on 2nd December 1989 with a paid up capital of Rs. 100 million (Now enhanced to Rs. 200 Million). Since its inception the bank has worked for the well being of women with the vision of "To be the lead Bank for Women" and dynamic, adaptive and responsive to their special economic needs, offering the best financial services and the best banking practices. The bank has a mission to become a financially sustainable bank with a specialized focus on promoting economic prosperity and self-reliance in women of urban and rural areas by transforming the status of women from passive beneficiaries of social services to dynamic agents of change. The bank has promoted the women entrepreneurs through Computer Literacy and Business Centers for skill enhancement, product development and business management. The bank is working for the cause of women and provides micro finance, SME loan, business loan for women, education and personal loan for women, home financing and car financing in order to show its commitment to work for the prosperity of women in the country who were continuously ignored before. Due to its efforts bank has received several awards which includes: Leader in Micro-Finance due to its recognition in Micro-Finance Products & Services by Women World Banking in 2001, International Business Award - 2005, New York, USA, Asian banking award in 2005 and Global Micro Entrepreneurship award in 2005.13 All the above mentioned information reveal a soft image of the bank as an organization working for the well being of women, but the information disclosed gives no idea about the activities performed by the bank for the benefits of the society. There is no such information available that can help to gauge its performance for the betterment of environment and health of the community as a whole. The bank is just focusing on the well being of the women but what about the other community in which there are several entities apart from women. So in order to become a socially

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www.bop.com.pk/ http://www.fwbl.com.pk/

responsible bank it has to perform several activities for the well being of the whole community.

Dollar East Exchange Company (Pvt.) Limited:

Dollar East Exchange Company (Pvt.) Limited is a leading exchange company in Pakistan. The company is one of the pioneers to start currency exchange business in the country. It was amongst the first companies to receive the license of money changer from State Bank when this business was regularized in 1992. The company currently operates a network of 15 branches which are strategically located in all high potential areas. The company has aggressive plans to expand its branch network to other areas of Pakistan. The company is also in the process of setting up franchised network of currency exchange booths and payment booths network in both rural and urban areas of Pakistan. Dollar East is a customer focused company and has always offered and maintained products, services and policies aimed at best satisfying the customer needs. The infrastructure, systems and procedures are regularly reviewed and improved to ensure the customers are provided with speedy, convenient and secure delivery of service. The Company is a good corporate citizen. It always operates within the provision of the national and international law. It is working closely with the regulatory authorities to promote the awareness and implementation of all regulatory requirements. It is fully aware and responsive to its role & responsibilities in the international antimoney laundering drive.14 In order to prove itself as a true corporate citizen and socially responsible company the Dollar East Company has established the Roshni Home for the orphans with an aim to become a role model for charities involved in child welfare nationally and internationally. The company wants to play vital role in the national development by making orphans and guardian less children productive and responsible members of the society who would have otherwise become terrorists and criminals. The company has taken the above mentioned step in order to provide protection, home, family, and higher education and health facilities to the children who are without parental care. So this step taken by the company depicts its efforts as a socially responsible company with an aim to serve the community.15 But other indicators are ignored as per the information available.

Crescent Steel and Allied Product Limited (CSAPL):

Crescent Steel and Allied Products Limited is a steel pipe manufacturing and coating company. The company is listed on all the Stock Exchanges of Pakistan. The companys manufacturing facilities consist of a Spiral Pipe Production line and a multi-layer Polyolefin, stand-alone Epoxy Coating and Heat Shrink Tape Coating line, both located side by side at the Sindh Industrial Trading Estate, Nooriabad in Jamshoro district of Sindh, Pakistan. The company has the unique distinction of
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www.dollareast.com http://www.roshnihomes.org

having the authorization to use API monogram of the American Petroleum Institute since its inception in 1987, the highest international standard accredited for quality of steel line pipe. In 1997, the Company was awarded ISO 9001 Quality Management Standard Certificate which it continues to maintain as ISO 9001:2000. In addition, the company has become the first Pakistani company to have acquired oil and gas industry specifics ISO 9000-2000 Quality Management System certification from API. CSAPL is one of the staunch supporters of the cause of education and health in Pakistan. The company makes a constant attempt to improve and raise the standards of the society in which it operates. Over the last five years the company has provided funding to build thirteen primary schools and is currently supporting all these schools under the umbrella of The Citizens Foundation (TCF). The Company also provides considerable funding to many other educational institutes and hospitals throughout the country notable amongst which are Lahore University of Management Sciences, COMMECS, and the Agha Khan Hospital. The Citizens Foundation (TCF) is a not for-profit organization striving to provide quality education to Pakistan's neglected low income, urban (katchi abadis) and far-flung rural areas. TCF does this through its network of purpose-built and well-managed schools, trained teachers, developed curriculum and an effective system of monitoring and evaluation. More than 55,000 children study in 450 TCF school units all over Pakistan.16 There is not much data available to project the implementation of CSR vision which is stated in company mission statement. The only contribution made by the company is to project CSR as a corporate philanthropy and other indicators are ignored as per information available.

ICI Pakistan Limited:

ICI Pakistan Limited is a 75.81% owned subsidiary of ICI Plc, UK. It was set up as a public limited company in Pakistan in 1952. It has always tried to develop such business portfolios in order to bringing together outstanding knowledge of customer needs with leading edge technology platforms to provide superior products to its customers. These attributes shows the companies aim to create superior value for ICI customers and shareholders, without compromising on the commitment to safety, health, environment and the communities in which it operates. ICI Pakistans have made a commitment to the development of the Country and the Community. As a responsible corporate citizen, the company has a very distinct CSR policy, in fulfilling its responsibilities, of serving the community by its functions. Over the years, the company has supported and encouraged social development initiatives, which include improving and enhancing infrastructure facilities in the health care and education sectors of the country. The Company provides significant financial support to various institutes of excellence, all over the Country. Pursuing further the initiatives the company also supports the local institutions in and around


http://www.crescent.com.pk/social_responsibility.htm and http://www.thecitizensfoundation.org/

Khewra, Sheikhupura, Lahore and Karachi manufacturing sites of the company are located.17





Company perception toward CSR is to only involve into uplifting its social image. There is not much data found that how CSR projected in their mission statement is being implemented by the company and other indicators are ignored as per information available.

Engro Chemical Pakistan Limited:

Engro Chemical Pakistan Limited is the second largest producer of Urea fertilizer in Pakistan. The company was incorporated in 1965 and was formerly Exxon Chemical Pakistan Limited until 1991, when Exxon decided to divest their fertilizer business on a global basis and sold off its equity of 75% shares in our company. The Employees of Engro, in partnership with leading international and local financial institutions bought out Exxons equity and the company was renamed as Engro Chemical Pakistan Limited. Engro is a public limited company listed on the Stock Exchanges of Karachi, Lahore and Islamabad. Engro chemical is working with mission to create value for its stakeholders. So Engro Chemicals is involved in various activities which can help to meet its mission that is the value creation and raising the standard of life of its stakeholder. By having a look on the company activities it can be said that the company is following the concept and standards of CSR. In this respect the company is involved in providing funds for education to the people of far flung areas by developing educational institutes there. In order to deal various health issues the company arranges camps in different areas of the country. The company also provides funds to the hospitals in order to establish new departments so that various diseases can be handled easily. The establishment of the Oncology Unit at Aga Khan University Hospital, Karachi and Dialysis Centres at Daharki and Mirpur Mathelo are some examples of its work for society.18 There is not much data available to project the implementation of CSR vision which is stated in company mission statement. The only contribution made by the company is to project CSR as a corporate philanthropy and other indicators are ignored as per information available.

Soccer Ball Industry of Pakistan:

The local industry in Sialkot was a major player in global soccer ball market. About 60% to 80% of the world soccer ball production was done there. Leading international brands such as Nike and Adidas are made almost exclusively here. This manufacture
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www.ici.com.pk http://www.engro.com/

was organized on a cottage based system. Pentagonal pieces were prepared in the factory then were distributed to 1600 villages surrounding of Sialkot. These pieces were stitched together in the homes. In 1995 an international labor organization estimated the workforce round about 100,000. A corporate publication put the figure at 75000. These variations were due to the flexible nature of work. In the world cup year more people stitch the balls to meet the additional demands. About 30% to 50% of the total labor force comprised on women. Estimates of children involved in stitching ranged from 5000 17000. Wages of the stitchers range from Rs. 45 to Rs. 100 for a ful day work. A stitcher could stitch 3-4 balls per day and the ball rate range from Rs. 15 to Rs. 25. The top quality balls have a price of US $100 at the international level. The economic and social condition of the stitching families is very poor and can shock a person. On 1pril 6, 1995 CBS aired a short documentary on the soccer ball industry in Pakistan with a headline CHILDREN AT WORK. Pakistani children produced 36 million soccer balls in a year. Due to the media campaign the Sialkot soccer ball industry started working with two international organizations ILO and UNICEF for the eradication of the child labour. According to ILO by September 2003 about 95% of the Sialkot balls were made without child labour. Nowadays the industry is totally free from the child labour.19 So in one aspect of CSR industry is meeting the demand of it and other indicators are still lacking as per information available.

Unilever Pakistan Limited:

Unilever Pakistan is the largest FMCG Company in Pakistan, as well as one of the largest multinationals operating in the country. Being a company Unilever Pakistan believes that in order to succeed it has to establish and maintain the highest standards of corporate behavior. UPL was established some fifty years ago when the Pakistan was newly created. At that time the town of Rahim Yar Khan was the site which was chosen for setting up a vegetable oil factory in 1958 and that is where the first UPL manufacturing facility was developed. In the mid of 1960s company head office was shifted to Karachi. Today, Unilever Pakistan is one of the major players. Its contribution to Pakistan's economic development cannot be overestimated. Now operating six factories at different locations around the country, the company contributes a significant proportion of the country's taxes. It employs a large number of local managers and workers. It provides a pool of well-trained and highly motivated manpower to other segments and has introduced new and innovative technologies into the country. As a pioneer company in following the concept of CSR in Pakistan, the company has a strong belief that as a member of the local community it has a responsibility to give back to the community in which it operates and it can fulfill this responsibility by playing its role for the well being of the country and society. So Unilever Pakistan has


Represantational Approaches Matters: Farzad Rafi Khan Journal of business Ethics (2007) 73:77-89 DOI 10.1007/s 10551-006-9199-x Spring 2006

focused its involvement to the three areas that are most significant to Pakistan and its people: education, health & water. In the education sector of Pakistan UPL is providing funds to the universities like Lahore University of Management Sciences (LUMS). In order to improve the primary education in Pakistan it has also provided financial assistance to the NGOs which are working for the improvement of education like The Citizen Foundation (TCF). UPL is also working on the Unilever International Art Project for Schools. In order to provide health facilities to the people of Pakistan the Unilever Pakistan has maintained long-term partnerships with certain health organizations and supports a wide range of projects. These organizations and projects include the Marie Adelaide Leprosy Centre (MALC), Layton Rehmatullah Benevolent Trust (LRBT) and the Loralai TB Control Program. Unilever also provide support to the water sustainability initiatives. The scarcity of water in Pakistan gives the company an opportunity to provide effective solutions for water sustainability and conservation. In order to show commitment to water sustainability UPL has made partnership with, the Thardeep Rural Development Programme (TRDP).20 For the above mentioned CSR activities and other related initiatives the Karachi based Unilever Pakistan has received the Asian CSR Award which was held in Ho Chi Minh City, Vietnam on 28 September 2007. It was organized by the PVR Centre for Corporate Responsibility at the Asian Institute of Management (AIM) and sponsored by the Chemoil Group.21 From above available information the company is still projecting its contributions as a corporate philanthropist but neglecting the true concept of CSR which is not just building social image but also to improve management practices, environmental concerns and corporate governance.

National Foods Pakistan Limited:

National Foods was founded in 1970 and started out as a Spice company. 3 decades later it has diversified into a versatile Food Company with over 110 products and 165 and above SKUs (Stock Keeping Unit) for the domestic market and over 100 different products for the international markets.

In this innovative age of ever changing lifestyles, fuelled by the extensive development of technology; consumers have been compelled to change their eating habits. National Foods responds to this challenge of developing innovative food products based on convenience and fast preparation in line with modern lifestyles and yet retains traditional values through its impressive collection of food products.


http://www.unileverpakistan.com.pk/ourvalues/environmentandsociety/corporate_social_responsibility/ default.asp 21 NGO World October 2007 www.thengoworld.com

The brand delivers its ultimate promise by consistently delivering value to its consumers. National Foods enriches family relationships by bringing people together for family traditions, feasts, seasonal holidays and of course - everyday life. National Foods is one such company which has dedicated itself to improve the lives of the peoples through providing healthy, innovative foods items that excel in quality and provide value for money. With a range of over 110 products in 12 major categories, it is one of the largest food companies in the business. In order to increase the awareness about the hygienic food and health National Foods host organizes a diverse range of events regularly which includes cooking competitions and food festivals. The company takes all these steps in order to provide free of cost advises to the community for the improvement of their health by getting an understanding about the food stuff. So after getting these insights about the company responses towards its stakeholders it can be said that the company has a positive approach towards the community and is showing its responsible behavior by providing healthy foods and advises related to the health to the community of Pakistan.22 National Foods though performing notable activities related to the health of the community but is ignoring the environmental safety, social posture and financial transparency. All the information disclosed by the company fails to cover the above mentioned areas of being socially responsible company. So the company needs to do sufficient work in the above mentioned concerns in order to enlist itself in the socially responsible companies. They did not address CSR challenges such as reducing the environmental impacts of their products, embedding responsible business practices across their supply chains, promoting employee health and wellbeing.

Proctor and Gamble Pakistan:

Procter & Gamble started its operations in Pakistan in 1991. The goal of P&G was to become the finest global local consumer goods company in Pakistan. Due to the commitment of the company with the goal it started growth, and in 1994 the company acquired a soap-manufacturing facility and purchased an expansive 7-acre land at Hub, Balochistan. During the past nine years, the plant achieved state-of-art manufacturing technologies and quality assurance processes. P&G believes in working with and within local communities to respond to their social needs and help them to develop their strengths. P&G Pakistan has initiated and runs several programs focused at improving the lives of Pakistanis, especially children, teens and young mothers. The areas of concern include health and hygiene awareness, education and female empowerment. All in all, these programs intend to transform the lives of more than 3 million Pakistanis. These programs give clear clues about the company policies and commitment of working for the improvement and betterment of the people of Pakistan.



Pampers Hospital Education Program educates young mothers about baby care practices, immunization and vaccination. The program involves 1200 nurses, operates in 500 hospitals and reaches close to 300, 000 mothers. Pampers Baby Care Clinic Program educates young mothers about baby care practices, immunization and vaccination by going to their doorstep. The program has a reach of 700, 000 mothers in 30 cities. Always School Education Program educates female students about good health & hygiene practices. The program reaches 250,000 girls, 1400 schools/ colleges, in 3 cities of Pakistan. Safeguard School Education Program educates 5-9 years old children about basic hygiene habits and importance of washing hands in 5000 schools, 20 cities of Pakistan, reaching close to 2 million children. Ariel Help the Needy Program provides medical equipment to about 30 institutions for disabled children. P&G-HOPE School Program runs 23 schools in Karachi and rural Sindh, providing class-1-5 education to close to 1000 children.23

Company is again practicing corporate philanthropy and ignoring the other indicators as per information available. They did not address CSR challenges such as reducing the environmental impacts of their products, embedding responsible business practices across their supply chains, promoting employee health and wellbeing.

GEO TV was established in May 2002. Its test transmission started on 14th August 2002 on the PAS 10 digital satellite. Its regular transmission started on 1st October 2002. Geo TV is the first South Asian Urdu language channel to provide content comparable with world-class television broadcasters. Geo is the fastest growing TV Channel in Pakistan with ratings exceeding all satellite delivered TV channels in the market Geo has the widest distribution on cable systems in Pakistan with 100% carriage within 90 days of launch. GEO came in the market with a vision to become the voice of freedom from the Asian subcontinent. It planned to highlight the issues of concern and the cultural richness of its people through information, discussion and entertainment. GEO has tried to disseminate transparency of responsibility in order to ensure its position as the most credible and meaningful source of information, through quality programming based on issues. In order to create viewer loyalty and response GEO is committed to provide such an entertainment to the audience that they can relate to. In order to maximize viewer ownership GEO has an aim to forge an alliance amongst its three stakeholders - viewers, advertisers and shareholders. GEO is aware about the importance of the human resources and invest in the human resources because it recognizes it to be the foundation upon which the GEO future will be built. It is this very foundation that will allow GEO to attain and sustain a leadership position, thus fulfilling 24 the promise associated with its creation. Apart from this vision it is the fact that government of Pakistan banned its transmission because of the violation of code of conduct. GEO was banned because it was not fulfilling the prerequisite of code of conduct the Pakistan Electronic Media Regulatory Authority (PEMRA). GEO was banned in the country for almost seventy five days because the competent authority was of the point of view that GEO do not provide true entertainment to its viewers. GEO was declared as the promoter of the harassment, fear and depression in the society by disclosing and presenting such information that are legally wrong. So due to the lack of social responsibility displayed by the GEO the competent authority banned its transmission.

In order to regulate electronic media in Pakistan in 2007 the government of Pakistan made certain amendments in the PEMRA ordinance 2002. In order to ensure the following points the government of Pakistan took an action and president passed the ordinance.
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http://www.pg.com.pk/ http://www.geo.tv/

1. improve the standards of information, education and entertainment; 2. enlarge the choice available to the people of Pakistan in the media for news, current affairs, religious knowledge, art, culture, science, technology, economic development, social sector concerns, music, sports, drama and other subjects of public and national interest; 3. facilitate the devolution of responsibility and power to the grass-roots by improving the access of the people to mass media at the local and community level; and

ensure accountability, transparency and good governance by optimizing the free flow of information; 25

Pakistani government and the general public have criticized the GEO because in their views the channel promotes sensationalism in order to increase revenue and popularity. Furthermore, the channel has been seen as reporting primarily negative news regarding Pakistan, resulting in a generally depressing and pessimistic viewer ship experience.26Pakistani government has criticism for the channel's coverage of the 2005 earthquake in Kashmir, as GEO's coverage of the tragedy included disturbing scenes of victims and disaster zones. The channel's insistence that it is merely exercising freedom of speech is often criticized for being ignorant of ethical limitations and normal codes of conduct and behavior.27 The government of Pakistan had banned transmission of GEO NEWS because in the view of government GEO was not acting upon the above mentioned points and was becoming a reason of frustration, depression, and anxiety among the public by disclosing unnecessary information in quietly disheartening ways which shows its irresponsible behavior and violation of CSR practices. In the scope of CSR index management practice and environmental concern there is no data available for evaluate its CSR practices, on the other hand social posture is badly suffered due to its violation of code of conduct.

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