CIB Assignment - Atif Ullah Sher

7/30/2019 CIB Assignment - Atif Ullah Sher

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CONTEMPORARY ISSUES IN BUSINESS

Class Assignment

Corporate Social Responsibility

Number of Words: 998

By: Atif Ullah Sher (006)

Presented to: Sir Nabeel Javeed

Date: 19th

December 2012


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Corporate Social Responsibility An Introduction

Research broadly defines CSR as a companys status and activities with respect toits perceived societal or, at least, stakeholder obligations (Brown and Dacin, 1997).Corporate Social Responsibility is concerned with treating the stakeholders of acompany or institution ethically or in a responsible manner (Michael Hopkins, 1998,2011). Ethically or responsible' means treating key stakeholders in a manner deemedacceptable according to international norms.

Due to the positive effects of CSR participation and the negative effects of CSRviolation, most companies today not only pay attention to CSR issues, but alsoactively participate in CSR activities. Brickley et al. (2002) also acknowledged that acompanys reputation for socially responsible behavior constitutes an important partof its brand capital. In fact, cause-related marketing aims to enhance companyrevenues and sales through product differentiation by creating socially responsible

attributes associated with brands (Varadarajan and Menon, 1988). As indicated bySmith and Higgins (2000): the brand manager uses consumer concern for businessresponsibility as a means for securing competitive advantage.

In todays highly competitive market environment, many companies have used CSRas a strategic tool to respond to expectations of various stakeholders such as media,public opinion, nongovernment organizations and even consumers, to thus create afavorable corporate image (Jones, 2005). In reality, companies have regarded CSRactivities as a necessity, thus urging managers to contemplate how to implementCSR activities consistently with their business strategy (Porter and Kramer, 2006).

Social and ethical behavior and responsibility on the part of the corporate companiesdemand that these companies be involved in CSR and try utilizing their resources,which are enormous, for the betterment of the society at large. The same demandsare also placed on the companies by the Societal Marketing concept companiesshould work for the attainment of their profit goals along with working for the wellbeing of the society.

CSR at Kohinoor Textile Mills

About KTML

The Company commenced operation in 1953 as a private limited company andbecame a public limited company in 1968. It is one of the oldest companies ofPakistan with over 50 years experience in textile manufacturing. The company has adiverse customer base with sales in both the local and export markets. The maininternational markets include Asia, Europe, USA and Australia.

CSR Initiatives

Contrary to many other organization of Pakistan who are using CSR activities just asa marketing tool for the promotion of their brands and products. KTML strongly


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believes in socially responsible behavior and its maintenance in the long run. Thecompany has the plants for the following processes: Spinning, Weaving, Processing,Bleaching and Printing and stitching.

KTML produces 100% export products and has worlds top conglomerates likeWalmart, M&S UK, Target and Myers Australia etc as customers. Because thesecustomer companies themselves are involved in CSR, they make sure that theirsuppliers are also socially responsible. In order to ensure this, they continuouslysend teams to check the CSR initiatives at KTML.

Environmental Safety

KTML has also initiated aWaste Water treatment plant so that it can treat its wastewater for the prevention and preservation of the natural environment. KTML hasone of the most extensively developed system of plants operating at their fullcapacity for the production of its various arrays of products.

A team has been allocated with the responsibility for identification of Health, Safetyand Environmental Hazards at work place. Furthermore, this team reports the sameto the concerned departments for taking the corrective and preventive actions. Theoverall working environment is quite safe and healthy and the workers carry onperforming their duties and responsibilities without having any tension of safetymeasures.

Social Compliance

The Company continues to meet and exceed the health and safety standardsrequired for SA 8000 certification. Frequent audits are conducted by customers,regulatory agencies, and the Company's own audit teams in order to ensurecompliance with these standards and those set by the Company's customers.

KTML follows and meet all the requirements of SA-8000 standards and believe insocially responsible trading. Policies of social compliance that are adhered to are asfollows:

Health and Safety Child Labor Forced Labor Discrimination Freedom of association and right of Collective Bargaining

CSR Awards

The Company has been recognized by the Pakistan Centre for Philanthropy as a

leader in social and charitable contributions and strives to be a constructive memberof the communities in which it has a presence. Kohinoor Maple Leaf Group has


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consecutively received 5th Corporate Social Responsibility National ExcellenceAward 2010 on account of its performance of various social obligations during theyear. The company has contributed in medical social services project and in thisregard, it has donated a state of the art Cardiac facility to the Gulab Devi ChestHospital (GDCH) in Lahore by building Sayeed Saigol Cardiac Complex at GDCH.

Community Services

Following community services are initiated by KTML:

Textile Institute of Pakistan: Offers Bachelor Degree in Textile Managementand Textile Science. KMLG is Founding Trustee.

Lahore Art Gallery: Housed at our corporate Head Office is a non-profitorganization promoting painting and sculpture.

Aitchison College: Saigol House donated by KMLG in 1965. Ghulab Devi Hospital: Saigol Ward and Hall donation. Institute of Charted Accountants of Pakistan: Donation of Auditorium Chand Bagh School: Fully residential public School. Chairman, Board of

Governors Mr. Tariq Sayeed Saigol (KMLG, Chairman).

Lahore University of Management Sciences (LUMS): Mr. Tariq SayeedSaigol is a member of Board of trustees and Mr. Sayeed Tariq Saigol MD,(KDML/MLECL) is a Member, Board of Governors.

Kohinoor Government High School (Boys), No of students = 850 Kohinoor Government High School (Girls), No of students = 1200 Kohinoor Government High School (Boys/Girls), No of students = 800

These schools are owned by KTML to provide free and quality education toemployees children. Later on nationalized in 1972, KTML is continuously providingadministrative support to these schools.


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References

Brown, T. J. and P. A. Dacin: 1997, The Company and the Product: CorporateAssociation and Consumer Product Response, Journal of Marketing 61(1), 6884.

Michael Hopkins (1998, 2011): A Planetary Bargain: Corporate Social ResponsibilityComes of Age (Macmillan, UK, 1998) Updated July 2011

Brickley, J., C. Smith and J. Zimmerman: 2002, Business Ethics and OrganizationalArchitecture, Social Science Network Electronic Paper Collection, 250947.

Varadarajan, P. R. and A. Menon: 1988, Cause-Related Marketing: A Coalignment ofMarketing Strategy and Corporate Philanthropy, Journal of Marketing 52(3), 5874.

Smith, W. and M. Higgins: 2000, Cause RelatedMarketing: Ethics and the Ecstatic,Business and Society 39(3), 304322.

Jones, R.: 2005, Finding Sources of Brand Value: Developing a Stakeholder Model ofBrand Equity, Brand Management 13(1), 1032.

Porter, M. and M. Kramer: 2006, Strategy and Society: The Link Betweencompetitive Advantage and Corporate Social Responsibility, Harvard BusinessReview 84, 7892.

Kohinoor Textile Mills, Quality Assurance Department, Social Policy, Islamabad,Quality Assurance Department.

Mr. Saqib Javed Farooqi (Quality Assurance Manager, KTML), 2012, CSR Initiativesof KTML, Interviewed by Atif Ullah Sher, face to face.

Mr. Qamar (Quality Auditor, KTML), 2012, CSR Initiatives of KTML, Interviewedby Atif Ullah Sher, face to face.

Documents

CIB Assignment - Atif Ullah Sher