CSR in Pakistan

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Corporate Conscience - CSR in Pakistan

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Corporate ConscienceCSR in Pakistan - A Study


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© 2011, Edition - firstISBN: 978-81-908155-6-7

Published by

Prakruthi43, 2nd Cross, Ramaya LayoutSt. Thomas Town PostKammanahalliBangalore 560 084, Indiawww.prakruthi.org

Design and Layout by Rajesh MVPrinted at National Printing Press, Bangalore

Authors: Afshan Ahmed, Iftikhar Ahmed, SDPI, Pakistan

Editor: Shafqat Munir, SDPI, Pakistan

Research Co-ordinators: Pramod John, Sjoerd Panhuijson, Prakruthi, India

Supported by

The NetherlandsOxfam Novib


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Table of Contents

Foreword 5

Executive Summary 7

I. Introducing Corporate Social Responsibility 11

1.1 Corporate Social Responsibility Defind 12

1.2 The World Business Council for SustainableDevelopment 13

1.3 Components of CSR 13

1.4 Key Drivers of Corporate Social Responsibility 15

II. Corporate Social Responsibility in South Asia 17

III. Corporate Social Responsibility in Pakistan 20

3.1 From Philanthropy to Corporate SocialResponsibility 20

3.2 Law and Regulations 22

3.3 Voluntary Codes of Conduct 30

3.4 Multi-Stakeholders Initiatives and ActiveOrganizations promoting CSR 31


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IV. Supply Chain Analysis 33

4.1 The Value Chain 35

4.2 The Supply Side 37

4.3 The Core Processes 39

4.4 The Demand Side 41

4.5 Theoretic aspect of Value Chain Analysis:The Concept of Shared Value 43

V. Measuring State of CSR in Pakistan 45

5.1 Corporate Governance 46

5.2 Business and Ethical Principles 46

5.3 Environmental Compliance 47

5.4 Social Compliance 49

5.5 Disclosure and Reporting 50

5.6 Product Integrity 51

5.7 Corporate Giving and Community Investment 52

5.8 Stakeholder Dialogue 53

5.9 Financial Performance 54

5.10 Supply Chain Security 54

VI. Good CSR Practices 56

6.1 The Jalal Din Wali Group (JDW) 56

6.2 The Shakarganj Group 59

6.3 The Nestle Group 60

6.4 Barclays Bank 61

VII. Designing a New CSR Program 69

7.1 CSR Opportunities in Pakistan 72

7.2 Findings 73

Annexure I 77

Annexure II 85

Annexure III 132


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Foreword

This study is part of our work to assess the status and trendsof Corporate Social Responsibility in Developing Asiancountries with focus on Pakistan.

Prakruthi, with the active support from Sustainable PolicyDevelopment Institute is extremely delighted to bring thisbook for our readers & stakeholders. We hope this studywould help in devising new interventional strategies in CSRrelated activities in South and South east Asia.

This is an unique tribute to all those in Pakistan and aroundthe world who have contributed towards the growth of CSRas a concept and more-so-over as developing a culture keepingpeople first in the agenda in the economic development. Weall are grateful to Dr. Abid Suleri of SDPI, for his lead inbringing out this rich information on a single platter.

Many elements of CSR have been kindled in this research foradoption and adaptation and taking it forward. There is a


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detailed compilation giving insight to the growth andprogress of CSR in Pakistan. Although the emphasis of thiswork is on CSR concepts and trends, it contains much morethat would be of interest to those outside this field and to thestudents of this subject - indeed to anyone with a commitmentto the agenda of Responsible Business.

We are hopeful that this pioneering work will help us forimproving further and for many others to move in the samedirection. We are certain about this becoming a guidancedocument to further Triple Bottom-line Approach among theNational and multi-national Businesses in Pakistan.

We would like to put on record our sincere gratitude to OxfamNovib, of The Netherlands for the relentless support givento us in bringing out this document.

Pramod JohnExecutive DirectorPrakruthi


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The purpose of the study is to contextualize Corporate SocialResponsibility in Pakistan. Corporate Social Responsibilityis an emerging concept in Pakistan. The potential for CSR ina developing country automatically calls for a greater role oflarge businesses in addressing the issues faced by the societiesthey operate in. The trend for CSR related activities isincreasing, both in terms of more companies developing CSRpolicies and investing in increasing percentages of gross salesto community service and sustainable development.

The leaders in this trend are a few big multinational companiesthat are importing their CSR practices from the developedcountries into the developing countries, thereby promotinga culture of consumer awareness and pride in communityservice, and the main motivation behind this is to keepelevated their socially responsible status in Pakistan. Thisoverall concept however, is still far from maturity in Pakistan.The approach to it is still relatively primitive, while the fogged

Executive Summary


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distinction between Philanthropy and CSR is evident in thechoice of CSR initiatives by businesses in Pakistan.

The concept of creating shared value by inculcating CSR intovalue chain dynamics requires major changes inorganizational cultures and value chain arrangements, andthis is far from being fully understood or fully applied inbusinesses, as most of the companies aware of CSR resort tosimple CSR or philanthropy instead of complex CSR modelingand its implementations. Furthermore, the presence of lawsand effective codes in dictating certain sustainable practicesis lacking, resulting in the main drivers behind CSR beingonly voluntary actions designed to enhance company image.In addition, stakeholder activism is lacking, both on theconsumer and supply ends, hence the only push factor behindCSR is the company itself.

This study took dairy product industry as its sample for studyin explaining the value chain analysis. The sample was selectedbecause dairy industry is an agro based industry and formsmajor part of economy and Pakistan stands among a few bigmilk-producing countries. This industry’s area of work isalso spread across villages and on the hand to the cities whereits consumers live. Furthermore, dairy product supply chaincould be easily traced through all of its steps and proceduresand hence effects of CSR could be elaborated.

From the starting point, the farmer, to the final point, theindividual consumer, the three main parts of supply side,demand side and operational aspect were evaluated on theterms of voluntary and code enforced CSR. The problemsand effects of internalization costs in each of these categories


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and CSR oriented value chain analysis was compared to thecosts of ordinary business operations.

Finally, the study has suggested that in order to achieve ahealthier and integrated state of CSR, stakeholders’ activismwas an essential prerequisite. On the demand side, consumersneed to be educated with regards to product integrity andsustainable practices. Civil society should form pressuregroups that can force businesses to abide by laws andregulations set forth by government. The construction of auniform code nationwide, and its effective implementationcan result in major value creation by the businesses towardstheir supply sides.


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Every corporation tries to expand its business for profitmotive. But companies are also responsible of their impacton people and planet. The word “people” includes company’sstakeholders, employees, and customers, investors, suppliers,business partner, government and community. All them arelinked together through the corporation and form a socialcircle. In order to stay competitive and a productive, thecorporation has to be socially responsible. As every businesshas two types of assets; one type is tangible assets that arephysical in nature and the other is intangible that relates tocorporate social responsibility or social dividends. Thecorporation’s worth is counted on both. But in a competitiveenvironment, corporations benefit from their goodwill, whichcomes through effective corporate social responsibility (CSR)efforts. CSR emphasizes businesses to promote public interestby encouraging development and growth of community,especially when extractive activities are done and localresources are exploited.

Introducing Corporate SocialResponsibility

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1.1 Corporate Social Responsibility DefindConducting business in the interests of widercommunity in an ethical way

Responding positively to priorities andexpectations of society

Balancing shareholder interests against theinterests of wider community

Being a responsible citizen in the society

Businesses are responsible for both creating wealth and well-being of society, while corporate social responsibility onlylooks at well being part on behalf of businesses. When anycorporation sets its objectives and goals and makes long termpolicies, they use CSR as a tool to achieve them. CSR requirescorporation to manage economic, environmental and socialimpacts of its operations/corporate governance to maximizebenefits.

The concept of Corporate Social Responsibility is linked tothe concept of Triple Bottom Line (TBL) Reporting: People,Planet, and Profit1. TBL is used as a framework for measuringperformance of any company against economic,environmental and social parameters. Corporate SocialResponsibility (CSR) is an obligation of business to add tosustainable economic development. CSR is a way to improvequality of life of employees, consumers, local community andsociety at large for a mutual benefit.

1 Sir Geoffery Chandler, “Defining Corporate Social Responsibility” EthicalPerformance Best Practice, fall 2001.


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William C. Fredrick contributed to an early definition ofcorporate social responsibility. He writes:

“Social responsibility means that the business should oversee theoperations of economic systems that fulfill the expectations of thepublic and this means in turn that the economy’s means of productionsand distribution should enhance total socio-economic welfare.

Social responsibility in our final analysis implies a public posturetoward society’s economic and human resources and willingness tosee that those resources are used for broad social ends and not simplyfor narrowly circumscribed interest of private persons and firm”.2.

1.2 The World Business Council for SustainableDevelopmentCSR is a continuing commitment by business3

To behave ethically

To contribute in economic development to improvingthe quality of life of the

Workforce and their families

As well as of the local community

And society at a large

1.3 Components of CSRCarrol Archie identifies the following components of the CSR4;

2 ARCHIE B CARROLL, University of Gorgia, “CORPORATE SOCIALRESPONSIBILITY: Evolution of Definitional Construct” 1999.

3 Adila Buhariwalla, Vice-President Internal Audit, Emirates Group, “THE SOULPURPOSE OF CORPORATE SOCIAL RESPONSIBILITY” 2011.

4 CARROL ARCHIE B, “The Pyramid of Social Responsibility: Toward the MoralManagement of Organizational Stakeholders” business Horizon, July 1991.


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1.3.1 Economic Responsibility (to shareholder/owners)Economic responsibility relates to profit motive andmaintaining high level of efficiency to the extent that theshareholders and owners feel that company is progressing.

1.3.2 Legal Responsibility (to the law)Legal responsibility deals with codified ethics as well as itenforces corporation to provide goods and services that atleast meet minimal legal requirements and standards ofindustry and perform consistently as law of land andgovernment expect from corporations.

1.3.3 Ethical Responsibility (moral aspect)On moral grounds, corporations are expected to meet ethicalnorms of the society where they do business. Ethicalresponsibility is either to adhere to the expectation of thatsociety or follow certain prohibitions the society imposesunder its ethical codes and standards.

1.3.4 Philanthropic Responsibility (charitable aspect)Philanthropic Responsibility relate to corporations’ charitywork they do for uplift of the communities in the areas fromwhere they extract resources or cause any imbalances inecosystem due to their extractive activities, exploitation ofresources natural and human or otherwise even doing anormal business. It is not expected in ethical or moral sensebut voluntary participation for charitable purpose to enhancethe community’s “Quality of life”, also assisting private andpublic educational institutions and basic health facilities. Somecorprations form charities and foundations to sponsorbrilliant students, to provide potable water and healthcareservices. There is no limit to corporations’ philanthropicresponsibilities.


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1.4 Key Drivers of Corporate Social ResponsibilityCorporations’ own interest is a primary driver of CSR thatultimately creates a sustainable global economy catering tothe needs of market, labor and community to enable them tofunction well together. Second important thing is socialinvestment. Physical infrastructure and social capital isrequired for running business. Transparency and trust is themain driver of CSR. Internal audit is necessary to maintaintransparency. Companies sometimes do window-dressing toshow their profits, but, in real, there are no such benefits;they are misleading their customers. Companies are likely tocontribute for welfare of society because of higher expectationof public from business.

Corporate social responsibility is about integrating the issuesof workplace, the community and market place into corebusiness strategies. Opportunities in CSR reflect the diversityof field and incorporate the private public and non-profitsectors.5

Private SectorIn private sector, CSR department can be located in anywherefrom public relations to compliance or legal divisions andcan be known as “human rights programs” or“environmental risk” and other thematic areas.

Public SectorThe public sector opportunities are mainly found in nationalgovernment agencies or international organizations.

5 Career Opportunities in Corporate Social Responsibility” by school of Internationaland Public Affairs , COLOMBIA, 2007


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Non Profit SectorA wide range of NGOs, industrial associations, mostly tradeunions, and academic institutions are engaged in learningCSR. There is requirement of standards, codes and practicesfor the quality of company, which is enforced by expectationof consumer and reputational concerns of shareholders. CSRis basically a tool used to handle reputational risks. Thecustomers are attracted when organizations offer more socialcontribution programs, which enhance their reputation asgood organizations. So, it is necessary for Board of Directors(BoD) and management of companies to set codes andstandards and elaborate them in Annual General Meeting(AGM) for implementation. The company’s employees shouldalso be responsible for implementation and accountability tohigher management. Most of NGOs have also developed codesfor CSR duly supported by ethical principles and adopted bycustomers; for example, Rainforest Alliance and Fair-trade.


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CSR is undergoing an evolutionary process around the world.Businesses in different countries are adopting CSR as anintegral part of business. They are learning to sustain growthof their operations by winning hearts and minds of theircustomers and consumers.

As businesses grow it is necessary for them to look beyondshort term profits and to identify ways and means ofsustaining long term growth. CSR cannot be imposed, butgovernments could encourage and support businesses toparticipate in community development programs.

Many countries in the developed world have benefitedimmensely from positive impact of CSR programs undertakenby their leading businesses. Community care and developmentprograms, supporting and funding education, research,investigative journalism, and environmental protectioninitiatives have brought many benefits to internationalbusinesses.

Corporate Social Responsibility inSouth Asia

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Successful CSR programs in the developed world have alsobrought communities together. They have strengthened thepeople’s commitment to the collective development of theircountries. Leading global businesses have played aninstrumental role through their development andphilanthropy foundations in their own countries and toalleviate rising poverty in developing world.

Development foundations and funds have been set up in theUAE, Qatar, Kuwait, and the Kingdom of Saudi Arabiathrough the participation and donations from leadingbusinesses, whose commitment and financial backing for thedevelopment of communities they operate in is winning themmore loyal customers, and is maximizing returns for theirshareholders.

In recent years, major businesses in the oil-rich countries ofthe Persian Gulf have also taken on CSR. Their partnerships,joint ventures and acquisitions of stakes in global businesshave brought with them the knowledge and desire to beresponsible corporate citizens. A positive corporate image andperception has become a necessity, and CSR is no longer beingviewed as an obligation by top management.

Strategic CSR focused on brand-associated corporatephilanthropy has progressed at a faster pace than ethical CSRin South Asia. The mindset of business owners has proved tobe a formidable obstacle. Due to lack of awareness, knowledgeand appropriate advice, many companies suffer from a myopicvision and tend to focus on short term profits only. Evensome of the larger companies are not well equipped with theconcept of CSR and continue to see it as a burden. Businessesprefer donating rather than researching and planning; they


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find it hard to developing and implementing CSR programsfor social and community development.

Progress in South Asia on adoption of responsible businesspolicies, however, has been slow. The acceptance of CSRprinciples has been unorganized and continues to be morephilanthropic in nature. Few businesses initiate projects topromote education, healthcare, sanitation and develop ruralcommunities. Special education, vocational training, researchand projects aimed at creating awareness and changingmindset and behavior of ill exposed communities rank lowon the regional CSR agenda.

Another challenge is that there is little distinction betweencorporate responsibility and corporate philanthropy.Businesses continue to remain oblivious to the reality thatCSR leads to a better business, new customers and markets,and higher level of sensitivity of the organization and itsemployees towards society.

Missing links in South Asian CSR policies

Understanding CSR as integral part of successfulbusiness

Uniform definition of CSR

Distinction between corporate philanthropy andCSR

Focus on ethical CSR practices

Making standardized CSR principles available inregional languages to put CSR in local context

Comprehensive environment protection policies

Focus on long-term sustenance and success ofbusiness.


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Corporate Social Responsibility inPakistan

3.1 From Philanthropy to Corporate SocialResponsibilityFamily tradition and Religion are the most radical factorsamong many others including tax benefits, better marketing,elevated public image, that compel the organizations here inPakistan to donate.6 Most of the Public listed companies(PLCs) contribute towards social development through thecharity. Most of these donations go to the education andhealth sector.

A study conducted by the Aga Khan Development Network(AKDN) in 1981,7 says that the volume of indigenousphilanthropy by Pakistani individuals stood at US $ 1.5

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6 Case study of Pakistan- published by the Center for Philanthropy in Pakistan.7 AKDN 2000: Philanthropy in Pakistan – A Report of the Initiative on Indigenous

Philanthropy.


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billion.8This included volunteered value of time (42%),monetary charity (42%) and giving in-kind (16%). About 93%of corporate entities were involved in some form of charityi.e, direct giving to individuals or philanthropy through non-profit organizations (NPOs) and trusts/ foundations ownedby the companies. In recent years the trend is shifting towardsdeveloping CSR plans and projects. The process is slowbecause of the unsustainable market conditions prevailingin the country. There are efforts on the intellectual front aswell an example is the yearly report on the State of Corporatesocial responsibility in Pakistan. Philanthropy and CorporatePhilanthropy have many faces. They are often linked withsales promotion, advertising, sponsorships, and eventmarketing. Though they are different from each other butthere is a correlation between these activities, as all tend tobetter position a business in the minds of its stakeholdersand customers.

Multinational companies have the biggest proportion in pieof corporate social responsibility while local corporations arethe following but with a very slow pace. Overall, CSR inPakistan is in a premature state when compared with thesame in the developed world. The lack of awareness amongthe corporate heads is a reason among many. Local industriesfaced the serious dilemma more than once. For instance, thebreakdown of the local carpet industry in 1996 and remarkabledeclines in the supports goods recently.9

8 This compares favourably with the total health and education sectors governmentspending of US $ 1.8 billion and the size of the Social Action Plan (US $ 1.1billion) in the years 1996 – 97.

9 UNDP 2005: Evaluation of the state of the corporate social responsibility inPakistan and a strategy for Implementation.


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A consortium, comprising the Ministry of commerce, textilesector in Pakistan and the international buyers, initiated aforum named as “Pakistan Compliance Initiative” in 2003.The forum succeeded in drafting the compliance standard thatwas approved by the Government of Pakistan. After thatpoint social compliance was inculcated into the trade policyand other relevant official documents.

Only a few companies comply with the 10 guiding principles(UN Global Compact) of conducting business in a responsiblemanner and becoming a socially responsible corporate citizen.So for the corporate heads in Pakistan with exception of theMultinational companies are not aware of the real meaning,necessity, importance, and scope of the CSR. Most of themconsider the corporate giving as CSR. Many consider it alegal binding rather than a shared social responsibility. Inthe following section it is being discussed in detail.

3.2 Law and RegulationsCorporate Social Responsibility is a concept that has in someguise been present since the 1950s. It can go under the namesof corporate responsibility, corporate citizenship, responsiblebusiness and sustainable responsible business. One of itsearliest articulations, by Howard R Bowen (1953) sets forththat there are “…obligations of businessmen to pursue thosepolicies, to make those decisions, or to follow those lines ofaction which are desirable in terms of the objectives and valuesof our society”10. While the role and scale of corporationsaround the world have obviously increased since the 1950s,

10 Bowen, H. R. (1953). Social responsibilities of the businessman. New York: Harper& Row.


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the concept that corporate entities should have a role to playbeyond pecuniary motives has not. Currently CSR entailsthat in some way corporations should integrate into itsbusiness model, practices that have a positive social impacton the areas that they operate in. Ideally, this would entailcorporations to function with self-regulating, built-inmechanisms to monitor its adherence to law, ethical standardsand international norms. It relies on businesses toindependently pursing social and public interest by using itsresources to aid in developing communities and also byvoluntarily eliminating practices that have negativeconsequences on the public regardless of legality.

By this definition CSR is not something that can be enforcedvia legislation or regulation from any level of government,as this would entail imparting a legal responsibility oncorporations to act in a certain way. A legislative frameworkcompelling corporations to partake in CSR would be akintherefore to strengthening labour laws or introducing leviesfor infrastructure development. Enforcing CSR in this waywould alter it by making it a legal and political relationshipbetween the concerned corporations and the state. In thisway CSR necessarily exists outside any strong legislativeframework, it relies more on promoting ethical practices ratherthan enforcing them. It compels corporate entities to operatein good faith in areas that the law does not or cannot apply.

3.2.1 Legal FrameworkAs far as legal framework ensuring CSR is concerned, thereis no binding legal framework that required corporate entitiesto practice CSR. This essentially means that the lawsurrounding CSR relates to either


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a) Basic Labour laws relating to the wellbeingof employees or

b) Procedural guidelines that promote theinclusion of CSR in decision making, or

c) Codes and regulations that allows for CSR, ifpracticed, to be monitored.

Governments cannot impose CSR as the practice is totallyvoluntary and encourages and supports businesses toparticipate in community development programs for theirgood will and brand. By providing a clear legal frameworkaround CSR, companies can engage with it with a greaterdegree of certainty. There is likewise the need for recipients ofCSR to be protected from bad practice by making sure thatmoney spent in any area is properly monitored, somethingwhich the Pakistani government has taken steps to do.

Overall situation on legal framework is that there are a limitednumber of laws that relate to CSR in Pakistan, the bulk ofwhich are provided by the Securities and the ExchangeCommission of Pakistan (SECP) and the State Bank ofPakistan, also there are some Pakistani Labour laws andconstitutional provisions that can be interpreted as legislativeunderpinnings of CSR. Though there is no specific law thatgoverns the CSR in Pakistan, there is a wide variety of lawsthat in one or the other way lead to CSR. These include;

1. Corporate Laws

2. Environmental Laws

3. Labour Laws

4. Consumer protection Laws.


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3.2.2 Constitutional ProvisionsThe Constitution of Pakistan11 provides in part II:Fundamental Rights and Principles of Policy: that firstly allforms of slavery, forced labour and child labour should beabolished.

Article 11(3) expressly prohibits the employment of childrenbelow the age of fourteen years in any factory, mine or otherhazardous employment. Article 37(e) makes provision forsecuring just and humane conditions of work, ensuring thatchildren and woman are not employed in vocations unsuitedfor their age or sex, and for maternity benefits for woman inemployment.

Finally Article 38 obliges the Pakistani State to secure thewell being of people, irrespective of sex, cast, creed or racewith the aim of achieving equality.

These constitutional articles echo concepts core to CSR inthat they relate to the social welfare of the broader communityby protecting the rights of children and woman who,typically speaking, are more vulnerable to exploitation whilein employment. They are limited in that they prohibitemployers from acting in a certain way, while they do not gofurther to require businesses actively promote welfare byinvesting in the communities they work in.

3.2.3 Labour LawsThe Factories Act, 1934 similarly limits the extent to whichworkers can work. It provides that no adult employee, defined

11 Constitution of the Islamic Republic of Pakistan


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as worker who is of 18 years of age or older, can be requiredor permitted to work in any establishment in excess of ninehours a day and 48 hours a week. Likewise no person underthe age of 18, can be required or permitted to work in excessof seven hours and 42 hours a week. This applies to work inindustrial labour with employment of 10 or more workers.Furthermore it also empowers provincial governments toextend provisions in the act to five workers.

These laws are limited in scope and can only be applied tofactory workers and their working hours. They, like theconstitutional provisions mentioned do not enforce anybroader notion of CSR beyond the immediate Labourconditions of employees. The existing labour laws do notcover CSR, yet in these laws workers’ welfare aspects areensure.

3.2.4 Corporate Code of Governance12

Published on March 28, 2002 by the SECP, the CorporateCode of Governance provides that information on significantissues shall be provided for the consideration of the respectiveboards of directors for decisions to be made. This code seeksto formalize a process whereby the Board of Directors of listedcompanies are, at least procedurally, required to take a rangesocial factors into account in their decision making.

Issues of significance can include: accidents, dangerousoccurrences and instances of pollution and environmentalproblems related to the listed company. It also calls forcompany awareness of any public or product liability claims

12 Securities and Exchange Commission of Pakistan, Corporate Code of Governance


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that could be made against the business, including any adversejudgement or order made against the conduct of the listedcompany or on any other company that may bear negativelyon the listed company.

It also requires Boards to Directors to recognise labourrelations and disputes while also considering a variety ofsolutions to the issues. It asks that any existing Labour Unionor Collective Bargaining Agent (CBA) and any character ofdetriment of the listed company to be considered.

The SECP also sets out a Corporate and financial reportingframework for director’s reports to shareholders. Theserequired directors of listed companies to include statementsunder section 236 of the Companies Ordinance, 1984 whereby:‘Significant plans and decisions, such as corporaterestructuring, business expansion and discontinuation ofoperations, shall be outlined along with the future prospects,risks and uncertainties surrounding the listed companies.’

The intent of the SECP code of conduct is purely proceduralthat requires certain social considerations to at least beconsidered during the corporate decision-making process.While it stops short of requiring action, this code is in linewith the nature of CSR being a voluntary endeavour ofbusinesses.

3.2.5 Prudential RegulationsUnder the State Bank of Pakistan, a number of prudentialregulations have been introduced on the 31st of January 2009.These relate to corporate banking and how CSR is to be takeninto account respectively. They are directed at the boards ofdirectors and managers.


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Under the regulations, the board shall approve and monitorthe objectives, strategies and overall business plans of theinstitution and shall oversee that the affairs of the institutionare carried out prudently within the framework of existinglaws and regulations and high business ethics.

Under Regulation 3, which pertains to the contributions anddonations made for charitable, social, such as educational andpublic welfare purposes; banks/ Development FinanceInstitution (DFIs) shall strictly observe the following needsin the manner of making any donation / contributions forcharitable, social, educational or public welfare purposes:

(i) The total donations/ contributions made bythe banks/ DFIs during the year shall notexceed such amount as approved by theirBoard of Directors. It is expected that bank/DFIs making these donations/contributionswould have already met provisioning andcapital adequacy requirements.

(ii) The bank/DFIs shall develop policy/guidelines duly approved by the Board ofDirectors for making donations/contributions.

(iii) Banks/DFIs are further directed to expresslydisclose in their annual audit financialstatements the total donations /contributions made during the year alongwith names of donors, to whom totaldonations/ contributions during the yearwere made in excess of Rs. 100,000/. In thecase of donations where in any director or


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his family members have any interest, thename of such directors, their interest in thedonation and the names and addresses of alldonators, shall also be given.

This form of regulation is aimed at monitoring acts of CSR,most likely for the sake of preventing corruption on the partof donors. Similar guidelines are presented in the SECP’s‘Companies (Corporate Social Responsibility) General Order2009. This stipulates, under section 2 that ‘Every companyshall provide descriptive as well as monetary disclosures ofthe Corporate Social Responsibility activities undertaken byit during each financial year. It makes it the responsibility ofthe Board of Directors to include in their annual audit reportsthe disclosure of acts of CSR. These include, but are not limited to:

(i) Corporate philanthropy

(ii) Energy conservation

(iii) Environmental protection measures

(iv) Community investment and welfare schemes

(v) Consumer protection measures

(vi) Welfare spending for under-privileged classes

(vii) Industrial relations

(viii) Employment of special persons

(ix) Occupational safety and health

(x) Business ethics and anti-corruption measures

(xi) National-cause donations

(xii) Contribution to national exchequer

(xiii) Rural development programs.


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This order is limited as it only provides a monitoringmechanism but it is useful and gives us a broad legal definitionof what CSR is and by doing so it further promotes clarityon the matter for the corporations involved.

3.3 Voluntary Codes of ConductBusinesses are developed with a profit motive. Many say it isgood for a business itself to achieve sustainability throughmeans of sharing social responsibility. Entrepreneurs andcorporations invest only in ventures potentially profitable.Business in the country are gradually getting aware of thefact that they need to participate not in the awareness raisingmovements but in the hard core developmental issues. It iseasy for the business to deliver a public service messageattached to their advertisement campaigns. Few of thecorporations have developed a voluntary code of conduct.

Some professional associations related to ‘trade and traits’have adopted voluntary codes of conduct, which are advisoryin nature. Pakistan Agriculture and Dairy FarmingAssociation has prescribed aims and objectives which arerelated to development of the sector. The Ministry ofInformation Technology has issued an advisory to theregulator and the industry on environment standards andsafety instructions. A majority of the industries in the countrysuch as sugar industry, manufacturing industry,transportation industry and many others still haven’tconsidered developing such kinds of voluntary Codes ofConduct.


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3.4 Multi-stakeholders Initiatives and ActiveOrganizations promoting CSRSome national and international organizations in Pakistanare working to promote CSR and its benefits for businessesand consumers. The concept of CSR is in its initial stages inPakistan and for the time being it hasn’t reached certainmaturity level where not only the corporation bosses butthe general public get conscious of their duties towards theshared responsibilities. With the passage of time and stabilityin economic indicators, CSR will take roots in the country.At slow pace but with consistency, CSR is spreading as moreand more organizations have started CSR related activitiesand awareness about CSR has also reportedly been increasingduring last decade.

The leading players in the field from the government andnon-government sectors are enlisted below:

Ministry of Commerce

State Bank of Pakistan (SBP)`

Securities and Exchange Commission ofPakistan (SECP)

Chambers of Commerce and Industry,Pakistan (CCIP)

Ministry of Information Technology

Oxfam (NOVIB)

Global initiative reporting (GRI)

Pakistan Compliance Initiative (PCI)

Pakistan Centre for Philanthropy (PCP)

International Labor Organizations (ILO)


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Responsible Business Initiative (RBI)

United Nations Development Programme(UNDP)

United Nations Industrial DevelopmentOrganization (UNIDO)

Institute of Chartered Accountants ofPakistan (ICAP)

Institute of Cost and ManagementAccountants of Pakistan (ICMAP)

National Commission for HumanDevelopment (NCHD)

Global compact Foundation Pakistan(GCFP)

These organizations are working to enhance the scope forCSR in Pakistan in their areas of specialization. SECP, SBPand Ministry of Commerce are working to drew the rules,laws, regulations and code of conducts. Chamber ofCommerce and Industry has its unique role to provide abridge between international demands and standards andexisting realities and shortfalls in terms of implementing CSRin local industries. There are organizations such as OXFAM,RBI, and UNDP that are facilitating research on CSR and itsfurther dissemination. ILO is to monitor labor related issuedand GCFP is to sign compacts. There are others such as NPO,and NCP that are working in the field of environment. Allfour components of the CSR seem pretty covered by one ormore of these organizations.


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Supply Chain Analysis

Globalization has been instrumental in changing trade andbusiness trends and environment and in reshaping the traderelations, techniques of doing successful businesses in a globalenvironment. Now meaning of successful businesses in thecontext of perceptions of various stakeholders ranging fromconsumers to policy makers, nature of production processesand cost structures are dramatically changing. Realization isfast growing among businesses to adopt new businessgrowth concepts including corporate social responsibility andits dynamics on supply chains of businesses.

Value Chain Analysis (VCA) is a vital connection betweenexplaining CSR and the effect of stakeholders’ perceptions anddemands on overall success of business. VCA or moreaccurately ‘global’ VCA is about better positioning of a firmor sector within the context of global markets13. In relation

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13 A corporate Social Responsibility (CSR) Diagnosis Module for Application inValue Chain Analysis (VCA), Foreign Investment Advisory Services 2006


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to CSR, it can relate to attempts by businesses to correctinadequacies of the localities that the companies are operatingin, and utilizing such initiatives in sustaining a globalcompetitive advantage. Stakeholders’ actions, such asenforcing CSR codes and standards are actions that willdirectly affect various dimensions of value chain of anybusiness, thus making VCA an integral part in understandingCSR effects in any industry.

The impact on value chain in Pakistan is less significant thanin a developed country. A major factor that causes CSR tosignificantly affect supply chains is the stakeholders’ insistenceon sustainable practices that resultantly influence the supplychain of the concerned business, and this drive is lessprevalent in Pakistan due to less maturity in theunderstanding of global business impacts and sustainablepractices.

This phenomenon is what the VCA of the specific industrychosen in the context of this study aims to address. Dairyindustry is an important sector of Pakistan’s economy,accounting for a significant proportion of the totalcontribution. Livestock as a whole accounts for 52.2% ofagricultural output and some 10% of the country’s GDP,whereas milk production in Pakistan (4th largest milk producerof the world) is higher than the combined output of wheat,maize, rice and sugarcane14. The size and contribution of thisindustry, especially in the context of Pakistan being a primarilyagricultural economy makes milk production a representativesample for investigating the effects of CSR on Value Chain

14 Dairy Sector Report, Livestock and Dairy Development Board, n.d


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Analysis. Furthermore, the processes of milk production aresuch that they can be comfortably modeled upon the VCA torelate to effects of CSR and the drivers of CSR. Hence milkprocurement qualifies as a suitable sample for investigation,and thus this study has utilized this sample to gain furtheridea of CSR in Pakistan.

The category of milk considered here is the UHT packagedmilk. Following process explains the value chain of milkproduction.

4.1 The Value ChainThe inception point of the process is the farmer, who takeshis share of milk produced to the village collection center,from where the milk goes to the milk chilling centre (can beowned by the farmer also). The collected milk goes to thecentral milk collection center and then to the factory. Here itis tested through multi-stage process for quality and safety.The quality control process starts right from the village milkcenter (VMC), followed by several tests at the main collection


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center for approval of entry into the factory. At the factory itis processed for UHT and then sent for packaging. The finalpackaged milk is sent to the distributors /wholesalers andreaches the retailer. The following figure illustrates the supplychain of the milk production process.

For the purpose of the study, the value chain of milkprocurement broadly can be categorized into three simplifiedparts: the supply side, the internal company operations andthe demand side. The supply side consists of the first stage ofmilk production, from where untreated milk is obtained asprimary input, to be later processed into a saleable commodity.In Pakistan, this stage includes

Rural market oriented smallholdings (smallunits having access to milk markets, fewerthan six animals)

Rural commercial farms (larger specializedfarms with over 40 animals and otherfacilities)

Peri urban/urban commercial dairy farms(large holdings hosting up to 300,000producing animals, comfortable access tomarket and enjoying high demand)

The next stage constitutes the internal processes of the firm.This is where the milk is processed for different products suchas UHT packaged milk, margarine, butter and powdered milk.The final part of the chain is the demand side. This partconsists of all the entities after the manufacturing is done,from the producer to the wholesaler/distributor and finallythe retailer. In making the CSR oriented value chain analysis


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for our sample industry (in describing the dynamics of CSRin each of these three different stages and the effect of thepresence of CSR on the same), we will evaluate each of thethree stages on the basis of three key indicators/drivers, which are:

Law and CSR code of conduct

Voluntary code of conduct developed by theindustry

Voluntary CSR initiatives

The evaluation in this case shall primarily include simplebusiness value chain with one in which CSR is included bymeans of each of the above enforcers.

4.2 The Supply SideLet us consider the primary stakeholder here: the farmer. Thefarmer provides the business with its primary input. The basiccost to the firm therefore is the price per unit paid to thefarmer for the milk he provides. However, the underlinedeffects of the business operations follow a diverse range. Small-scale dairy farmer and his family conducts various functionsranging from fodder cutting to milking the animal, whichusually involves all his family members especially, childrenand women.

The farmer cannot work to build his skill or invest time inother projects that may yield him a higher standard of livingbecause his time is dedicated to earn livelihood for his family.To raise the standard of living of these communities and toinvest in their sustainability is a principle responsibility of abusiness that is extracting profit out of these resources. Ifthat responsibility has to be met, then the costs of all of the


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above (and many other such effects) must be included as partof the value chain of the business, and this will reflect thetrue cost of the business as far as its supply side is concerned.

In Pakistan, supply side of the dairy industry is notinfluential in determining the CSR because they aresegregated, uneducated, little share in the supply chain andare not organized. The dairy industry is showing considerablesigns of awareness about these responsibilities. NestlePakistan, the largest milk manufacturer, has resolved tocontribute to multi-tier rural development of its input areas.Farmers unable to access market for their milk are providedcollection services from their localities. Education and healthfacilities have been developed in many such rural areas.Capacity building initiatives have been undertaken for bothlocal women and farmers as part of an attempt to raise theirincome and abilities to a sustainable level. However, it mustbe kept in mind that not all practices are purely related toCSR. For example, collecting milk from farmers from thelocality may be of benefit to the farmer who is unable to sellhis milk otherwise, but is also part of the core production ofthe firm, as it is in the firm’s interest to collect milk fromevery potential point as a means of greater reach towards itsprimary input. Such steps, more commonly referred to as‘blanket CSR’, are not solely CSR projects, though CSRbenefits may occur as the ‘spillover effects’.

It is also worth noting that all of the above CSR initiativesare part of voluntary CSR, one that is not guided by anyuniform code or government established law, such asagriculture code of ethics, and international guidelines of SA 8000. Any company in dairy business wishing to enterglobal market must conform to such international guidelines,


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and thus CSR and sustainability laws in some cases becomemandatory for entry of local firms in global market, and ameans of competitive advantage for global businesses. To meetthese guidelines is a bid to internalize certain costs that thebusiness is inflicting upon the society, hence making them apart of the value chain.

4.3 The Core ProcessesThe Core processes relate to the positive and negativeexternalities generated by the operations of the firm, or morespecifically of the manufacturing plant. The most significantamong them are the environmental harms associated withdaily production. The emissions of harmful gases are seriousdamages to the ambient air quality, while the waste sludgerenders rivers unfit for domestic or agricultural use.Obviously, such damages incur high costs to the society interms of the depletion of its critical resources. However, thepoint worth noting is that the external harms of daily businessprocesses eventually culminate in creating internal costs tothe firms themselves, hence automatically becoming part oftheir value chains as liabilities to the business. Environmentaldepletion provides a concrete example here. If any pollutionfrom packaging of the milk results in environmentaldegradation or changes that in turn affect that land’svegetation and primary diet of the buffalo is affected, thiswould in turn cause harm to the buffalo hence the primaryinput of that very firm is negatively affected, causingdiscrepancies in supply chain of milk manufacturer.

Environmental CSR programs launched by milkmanufacturers may be worth noting, such as the setting upof a water filtration plant by Nestle Pakistan at a district


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hospital, yet this may certainly be irrelevant to the need foraverting the true costs of environmental damage that boththe business and the society will face in due course of thebusiness’s operations. In short, the CSR program in ourexample failed to correct the value chain for the incurred costs,since the CSR program was directed at an appreciable yet lessrelevant expenditure. A more relevant expenditure in this casemight be to invest in technological research aimed atdecreasing the environmental harms of the coremanufacturing processes, such as innovations aimed attreating waste water and making available to the localcommunity for agricultural use, or developing schemes ofcountrywide recycling of the used milk packing to ensurelesser future natural resource extraction.

Such practices will directly affect the value chain of thebusiness, both in terms of temporary increased costs andextended future benefits with regards to a sustainableenvironment. In the case of CSR directed by law, certainprotocols in manufacturing processes have been set, primarilywith regards to environmental regulations. These includethe regulations set by Pakistan Environmental ProtectionAgency (PEPA), under the environmental protection act of1997. Meeting any emission standards by these businessesmay classify as adhering to an established set of CSR codes.Yet, it is difficult to locate examples of voluntary self-imposingcodes designed by businesses themselves. Such voluntarycodes are different from a defined CSR policy, which almostevery large business in the corporate sector and in the dairyindustry of Pakistan has developed. This specific part of thevalue chain has the most influential effect on the CSR modelsin dairy and sugar industries in Pakistan.


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There are no binding laws introduced by the government toinculcate the CSR in corporation functions. Whateveractivities small or large corporations are performing underthe head of CSR are voluntary in nature. Supply and demandboth of the sides are not aware of the rights under whichthey may force corporations to develop their CSR models inconsultations with them. Multinational companies are thereal drivers of the CSR in Pakistan. These are largelyoriginated in developed world where civil society is strongenough to compel them with certain type of legal and moralcodes of conduct. Global standards are another factorcompelling the organizations to develop comprehensive CSRmodels if they wish to be part of the global value chain.Multinational companies for their own set business goalsdevelop and implement CSR models in the developingcountries. To remain in the competition local companies inthe same industry develop their CSR models. There areorganizations in dairy and sugar industries that havedesigned and implemented impressive CSR model. Forinstances the CSR models of the JDW group and theShakarganj group are worth mentioning.

4.4 The Demand SideThe demand side is perhaps the most significant driver ofCSR in socially aware societies and in the developedeconomies, whereby standards of social acceptability havechanged from delivering the best product quality to beingsocially responsible and environment friendly. Consumers’preferences largely dictate business successes. To be successfulthus, a business has to prove to be socially useful along withdelivering the best quality. This inevitably makes CSR a partof the value chain of any business, that is, being less socially


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productive or carrying a reputation of causing environmentalharm will result in lower sales and hence withdrawals fromthe value chain. In the dairy industry of the developed world,this phenomenon reigns dominant.

The debate over packaged milk causes intense analysis of thecosts and benefits. For example, conventional fresh milk isunder criticism for its uncontrolled levels of greenhouse gasemissions, while packaged milk is preferred for being lesserharmful. Similarly, packaged milk is under scrutiny for energyreleases from its process of emission and the use of plasticand other non recyclable material in the packaging.

The milk industry of Pakistan in this case enjoys the relativeimmunity that characterizes the dilemma of almost all of theindustries of the country: lack of consumer awareness. Themasses are not aware of or they are not educated in the firstplace to question violation of the consumer laws and thedemonstration of socially harmful behavior by firms, and thisgives the firms the leverage to do away with severe violationsof the principles of product integrity. A prime example is ofdairy products that ought to be called back followingexpiration, yet are surfacing on the shelves available for sale,months later on small scale local grocery stores. The valuechain that ought to be affected by consumer awarenessmanifesting itself in decreased demand for a product is thusunaffected, primarily because such violation of sustainablepractices are not noticed by the developing countryconsumers, and do not result in any decreased demand forsuch a product by these consumers. Finally, lack of optionsavailable to consumers in a developing economy mean theywould be less willing to decide upon sustainability than onprice and quality.


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4.5 Theoretic aspect of Value Chain Analysis: TheConcept of Shared ValueThe concept of internalizing social costs and revaluating ValueChains in the context of Corporate Social Responsibility needsis clearly distinct from CSR initiatives aimed at simplybenefiting a community or indulging in Philanthropy. Onemay analogize it to the difference between whole heartedtransformational attempts and ‘random acts of kindnesses,with the former being VC oriented CSR and the latter beingsimply philanthropy. According to Michael E. Porter, this isexactly the difference between Creating Shared Value (CSV)and Corporate Social Responsibility (CSR). In his recent worktitled How to fix capitalism through Shared Value, Porterargues that “Societal needs, not just conventional economicneeds, markets, and social harms can create internal costs forfirms”. In other words, the concept of internalizing the needfor CSR into the Value Chain Analysis means creating sharedvalue.

The connection between competitive advantage and socialissues is a vital link here. The businesses attempting to enterthe global markets must conform to global sustainabilitystandards. If these standards are made comprehensive anduniversally acceptable, then codes and laws will inevitablyresult in the creation of shared value by default. However,such a process requires businesses time to adopt techniquesand technologies that in the near future will enable them toconform to a global comprehensive shared value code. In thisscenario however, local businesses of the developing countrieswill be at a disadvantage, because it will be long before theycan adapt to global standards and become part of the globalmarket.


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Finally, businesses in Pakistan are at a loose end, as theysuffer relaxation at the hands of most of the stakeholders ofthe Value chain, from suppliers to unaware consumers, toabsence of effective regulation. Hence the business operationin Pakistan is enjoys relative immunity due to lack of activismon part of the players of both the demand and supply sides.No wonder that most of CSR programs carried out are infact disconnected with the Value chain, and merit to ‘randomacts of kindnesses’ rather than concrete measures. It logicallyfollows that the resulting proportion of gross revenue allottedto CSR programs in developing countries is significantly lesserthan those in developed countries, with the former accruingto an average of 0.6 to 1 percent, and the latter amounting toas high as 4 percent.


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Measuring State of CSR in Pakistan

Pillars of CSR as introduced by the RBI are used here asparameters to measure the state of CSR in Pakistan focusingon the supply chain perspective. CSR models of the companiesare being analyzed against these pillars. Ten pillars of thecorporate social responsibility are Corporate Governance,Business and Ethical Principles, Environmental Compliance,Social Compliance, Product Integrity, Disclosure andReporting, Giving and Community Investment, Financeperformance, Stake holder Involvement, and the Supply chainsecurity. Corporation bosses and other stake holders werebeing asked the question in direct interviews regarding thefollowing compliances. Karachi Stock Exchange has chosenNestle for its CSR and financial efficiency award. Pakistancenter of philanthropy surveys the organization and awardthem on the best performance basis. Nestle is winning theaward for past 3 years continuously.

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5.1 Corporate GovernanceCorporate governance means the system to control and directthe organization. It is to ensure the working relationshipbetween all the stakeholders of the business. It is ranked highabove all the CSR pillars. Most of the companies are followingthe corporate governance model per rules of the SECP, theyhave the board of directors, management committees, andmanaging directors are complimentary who enforces thecompliance and then auditors internal and external. Theseorganizations follow all the regulations imposed by thegovernment of Pakistan not only in order to ensure thesmooth running of their businesses but also to meet theircorporation social responsibilities.

Multinational organizations have designed and implementedbetter corporate governance structures than their localcounterparts. Local Corporations also have the corporategovernance structures largely comprised upon familymembers who are also the shareholders.

The same commitment to the highest standards of integrityand transparency that has shaped Engro’s governanceframework and processes form the bases of the governingsystem of Engro Foundation. Engro Foundation is governedby a Board of Trustee, which consists of five members. TheBoard meets at least twice a year.

5.2 Business and Ethical PrinciplesWithout the shadow of doubt the primary motive of thebusinesses is profit. Organizations should not produce thingsharmful for the society, in organization a culture oftransparency, abiding by the laws and more than that abinding ethical code should also remain in consideration


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during all stages and process in a business. The governmenthas laid dawn food related laws at the federal and provinciallevel. Business in Pakistan is aware of the demands in theinternational market, a business manager says, “World isshrinking now a days and milk is same in every corner ofthe world what more we can offer to the world is implicationof the international standards of quality to sell our productin the international market and to achieve the worldcompetitiveness and the government can’t make laws on eachand every thing in that case we simply need to follow thegeneral ethical codes.” Most of the interviewees respondedwith similar answers.

There are no codes defined by the industries in this spherebut with awareness raising campaigns and in the trainingprograms they keep on educating their employees about theethical principles and their importance in the industry. Forinstance “EnVISON” (Engro volunteers in service Of theNation) is the company-wide initiative to support employeesvoluntary activities. Through “EnVISION”, EngroFoundation provides a platform for all Engro employees topositively impact the communities around them. Same kindof initiative has been taken by some other organizations tooto enhance morality and sympathy towards humanity.

5.3 Environmental ComplianceEnvironmental impact analysis is conducted by thegovernment each year through an independent agency.Organizations are bound to follow the environmentalcompliance. Business with an aim to enter the global supplychain and those concerned with the reputation keep stricteye on pollutant emissions. Nestle has water treatment plant


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at each and every facility/factory in the country. Nestle claimsto have zero level of environmental pollution through itscarbon control mechanism and energy compliance. Largebusiness in Pakistan like Nestle, JDW, Shakar GanJ, financialsector, and health sector is continually spending in researchto support the environment and to raise awareness internallyand externally.

A business manger says, “Buyers do not ask us to becompliant but they seek that we are meeting the basicstandards, we are clean environmentally concerned, and weconsider the society equally important as our business.” NoorPur Limited which is primarily involved in the dairy andsugar business and few other organizations are in the processof getting the ISO 14000 standards implemented. GDW groupis working to secure ‘environment for all’. They have initiateda program of rural sanitation. They have mobilized thecommunity to create awareness regarding environmentamong them. More than 80 villages in Lodhran are providedwith underground sanitation. The program was reportedlywell received in the region and it was represented as a modelat the South Asia summit of Rural Sanitation that appreciatedthe program. A sum of Rs 15.43 millions was allocated forthis project. Water filtrations plants, playgrounds for thechildren and many other programs for better environmentare on their agenda.

There are rules that bind transport industry not to allowsmoke emitting vehicles to ply on roads. At various industries,there is limited facility for treatment of contaminated waterand other waste material for its onward disposal in a saferway to protect environment from Pollution. Moreover,workers are not very familiar with safe working conditions


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in industry where hazardous jobs are done at the cost oftheir health. In a nutshell we can say that industry is farbehind in compliance of environmental standards andprocedures.

5.4 Social ComplianceMore in developed and lesser number of people in developingworld ask businesses to be socially compliant to theircorporate responsibility. But no matter wherever a businessoperates keeping in view its CSR expressing social compliance,it enjoys an elevated status in the society where in it operates.The status increases broader chances of attracting globalmarket which prefer CSR compliant companies to do businesswith. Food industry especially and many others in general,along with their promotional campaigns create awarenessamong masses for nutrition value of food. Nestle, Halib OilMills, Noor Pur, Lux, and even mobile companies deliverpublic services messages serving their advertisement purposeon one hand and on the other hand, get a sort of license forbeing socially compliant.

Organizations such as Nestle and GDW provided fundingfor schools, hospitals and supported free milk programs forschool children and also stood by the nation in the time ofdisasters. Nestle claims to be among top 25 tax payers ofPakistan although it has zero rating in sales tax but it hadpaid in the form of income tax. Self respect integrity, equalrights, gender empowerment, and all the concepts forbetterment of humanity are being promoted internally andexternally in such organizations. It is a general perceptionamong corporate bosses that their business itself is a blessingfor society as it provides them employment opportunities,


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better income levels and help in eradicating poverty. Businessacknowledges that their biggest responsibility towards societyis to provide services they are specialized in.

For example, the NP identified provision of food to thegrowing population as its prime responsibility towardssociety, but it lacks proper understanding of CSR. There are afew organizations, which come up with a complete model ofCSR. JDW and the SG can be considered leaders in sharingsocial responsibilities. Most of the organizations consider theirphilanthropic contribution as their sole responsibility as theydo not want to design complete CSR models or do not haveproper understanding and expertise for the task. Nestle havea global program, signed a package with Unilever Pakistanto promote sustainable agriculture development and to investin capacity building of general public, as a responsiblesourcing model. Globally, Nestle is practicing responsiblesourcing and trying to do it in Pakistan as well. It meansthat the company will purchase raw material from those whopractice good norms, and will not purchase raw material fromthose involved in child labor, under wages and any othermalpractices. So the social compliance in increasing inPakistan rooted multinational companies that have globalCSR programs and commitment towards communitydevelopment.

5.5 Disclosure and ReportingReports and audits are a way to ensure transparency. Thedocumentation helps create a competitive environment basedon comparisons. As required by the government of Pakistan,SECP and the State Bank of Pakistan publish businesses’ auditreports. Nestle reportedly got published its reports based on


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environmental and social audits. There is hardly any otherorganization that has conducted social audits as apparentlymany of CEOs of corporations are not aware of the conceptof social and environmental audits. With exception ofmultinational companies, there are only few businesses thathave separate departments for CSR designing andimplementation. Unfortunately, disclosure is not a priorityagenda of any of the industry operating in the country despitethe fact that freedom of information law exists at federal levelin Pakistan (though it only covers the federal governmentrelated business and not the private sector, but yes it providesa moral binding for disclosure). Disclosure andenvironmental and social audit reporting are the methodsthrough which, CSR implementations can be reflected for thecommunities and larger audiences.

5.6 Product IntegrityProduct integrity among consumers earns companies hugesales and profits thereof. In Pakistan, most of the localindustry even do not bother to print nutrition value, expirydates and basic ingredients in case of food and similar situationis with other manufacturing sector. While they advertisewithout these basic information, they loose people’s trust asthe consumers prefer to buy only those products about whomthey know maximum and know of the product’s integrity.In this race, multinationals again win as compared to nationalindustry as they observe maximum information leading toknow of the products and its benefits, hence establishingintegrity of the product. Providing health tips relating to theproducts at one hand established the integrity and on theother hand it in a way provides health information to theconsumers as part of their CSR effort.


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Product integrity performs best, offers good value, and in allrespects have ability to satisfy customers’ expectations. It is alegal and moral duty of organizations to ensure productintegrity both for profit and non-profit as CSR. It helpsbusiness win consumers’ trust that sustains businesses inlong run. Dairy Industry in Pakistan, to some extent, meetsproduct integrity criteria though not fully as it lacks on afew other counts regarding product integrity. The sugarindustry even do not mention any ingredients on product’spacks and do not advertise any of its products in the market.Most of industries in Pakistan lack product integrity with afew exceptions of services sector and telecommunications,financial, fuel and tobacco industries.

5.7 Corporate Giving and Community InvestmentAs discussed earlier corporate giving as philanthropy is asignificant spending in Pakistan. It is considered importantto gain good will in the society. NP, for instance, mentionedthat they heavily participate in philanthropic activities intimes of natural calamities. Same is the case with Nestle thatclaims to have contributed at a large scale during recent floodsin cash, in kind and food distributions in the affected areas.Almost all the business in Pakistan are involved in thisactivity. Education and health sectors and the people affectedin natural calamities are major beneficiaries of these giving.A number of organizations report investing in communities.JDW group with multi-sector community investments,Shakar Ganj, Engro and Nestle are a few leading companiesthat are investing in the communities they are doing businesswith.


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5.8 Stakeholder DialogueFor this study and in the CSR perspective, we have identifiedfive stakeholders for the industry and business. They are:board, employees, customers, buyers and community at large.Developed world duly acknowledge importance ofstakeholders and they do conduct dialogue with them fromtime to time, even sometimes before launch of any productsor after launching them. But in case of Pakistan, stakeholdershardly matter to companies as producers, manufacturers andthe consumers have no common forum for dialogues. Thereis a little effort being initiated by JDW group. The group as apurchaser of sugarcane has developed a link with farmers.They collaborate with each other in complete process ofgrowing sugarcane, purchasing and in payment mechanism.They have sort of a dialogue mechanism in place betweenthem.

The JDW group facilitated farmer in many ways includingconducting research on how to get better yield of sugarcaneand increase production. The group stays close to its suppliersbut at the consumer end, there are no such linkages developedbecause the sugar industry in Pakistan has huge demandand limited supply and the consumers know nothing aboutsugar producing company. Almost same is the case withNestle, which is deeply involved with suppliers that includesmall-scale farmers and dairy farmers. On the other end ofthe string, there are no linkages between the corporation andthe consumers. Financial sector is consumer driven. It keepson developing products at a very fast pace to satisfy its clients,still it also do not have a dialogue between all its stake-holders.


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5.9 Financial PerformanceManagers, when asked to provide brief of their companies’financial performance, responded with simple answers ratherthan discussing technical aspects and describing about costsaving measures by applying durable energy efficientproduction process, efficient buying and benefits from wasterecycling. Nestle proved to be competitive and has its volumebase business with normal profits, ranging from 7 to 8percent. It has also been chosen by KESC for the best financialperformance award. Sugar and dairy industries as our focusof the study have emerged as profitable businesses. There areno financial reports being published by the businesses otherthan audit reports. This is legal binding for the public listedcompanies by SECP. But hardly companies share theirfinancial reports for public except for those companies thatdo trading at the stock exchange.

5.10 Supply Chain SecurityTo stay in business for a long run, it is important to secureand strengthen supply chain. Firms in dairy and sugarindustries have taken steps to develop unbreakable supplychains. Nestle provides technical, financial, and medicalsupport to the dairy farmers doing business with thecompany. Nestle and other companies are providing credit,technical aid for farmhouse construction, machinery, expertopinion in purchasing animals, animal husbandry services,fodder growing, silage making, storing milk and preparingfinancial reports. In sugar industry JDW has initiated manyprograms to enhance the production capacity of the farmersthat includes provision of the agriculture credits, expertopinion, machinery, and timely payments. Nestle, Noor Pur,and the companies owning brands such as Olpers and Millac


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and all other companies in the dairy sector provide supportto their basic suppliers. The companies working in the dairysector extend benefits to the first level participants of thesupply chain.


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Good CSR Practices

Despite the fact, that most of the active Corporate SocialResponsibility programs are involuntary in nature, there aresome businesses in Pakistan which are undertaking CSRprograms at their own initiative. Some of the best practices atvarious companies are listed in this chapter.

6.1 The Jalal Din Wali Group (JDW)The JDW Group largely owns sugar mills and agriculturefarms in Southern Punjab. In order to sustain supply chainand to optimize production, the JDW group has involvedlocal communities in its Corporate Social Responsibilityprogram. The initiative is largely economic in nature and alsoa number of other programs including health and education.Establishment of schools and drinking water filtration facilitiesare among a few such initiatives. The Group is also engagedin flood relief activities, where it has provided food, shelterand other daily utilities to the same community. The Group

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also runs women’s development program, throughcommunity organizations (Cos). The programs provide skilldevelopment opportunities to women at vocational trainingcenters in areas, for which seed money has been allocated.Almost similar programs have been replicated by the Groupin other areas where the group has its dairy and farmingbusiness.

The JDW CSR initiative has enabled a socio-economicprogram to playing a positive role in sustaining economicdevelopment of agriculture region. Trying to make it holistic,the company has taken a holistic approach to the socio-economic development, through the program. The JDW’s CSRmodel has four main programs around which differenttailored program have been designed and implemented. Thesefeatures are:

Social mobilization and organization of ruralpoor into community organizations (COs)

Provision of agriculture extension services;agriculture graduates employment by JDWSugar Mills that provide services throughdirect advice in CO meetings and, publishliterature and facilitate farm visits.

Credit facility from JDW Sugar Mills andNRSP for purchase of seed and otheragriculture inputs on guarantee of the COsis provided to the farmers.

Small farmers have access to farm machineryprovided by JDW Sugar Mills on credit atsubsidized rates.


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JDW has also taken a number of environmental initiatives.For example, the JDW Group converted agriculture land intoplay ground one each for boys and girls in the thicklypopulated rural area of (Basti Shah Pur) Union Council JamalDin Wali. It cost Rs. 39.23 million including price of land.The JDW has also established water filtration plants in LakarWali and Awami Colony Tehsil Sadiqabad. Both plants areoperated and maintained by JDW staff. Periodical water testsare also arranged to maintain quality of water. Yearlyexpenditure is Rs. 200,000. Furthermore, a pilot project hasbeen initiated that provides Rs. 15.43 million to the LodhranPilot Project (LPP) for improvement in sewerage system.Lastly, in light of a growing fuel crisis, NRSP with financialsupport from Jamal Din Wali Sugar Mills (JDW-SM), hasintroduced a technology for producing biogas fuel at thehousehold level. The biogas system is likely to replace thecurrently unaffordable kerosene oil and cylinder gas optionas cooking fuel for the poor rural households. It is alsoexpected that the ‘eco-friendly’ biogas system will, in time,replace the traditional firewood fuel systems that are bothdamaging to environment and to people’s health.

Other initiatives that have been taken by the JDW groupinclude free eye camps, free limbs camp, and flood reliefactivities. Along with NRSP, JDW Sugar Mills organizedeleven free eye camps. Financial as well as logistical supportwas provided. These successful eye camps, which focus onproviding integrated eye care, have become an ongoinginitiative for the poor rural community. Cataract surgery wasinitially conducted in Al-Shifa Eye Trust, Sukkur. However,the surgery was facilitated in local premises with the passageof time. The practice is likely to continue in future. In


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November 2009, NRSP collaborated with the “Naya QadamTrust” and organized a free prosthetic (artificial limbs) campfor disabled members of the community. The 14-day camp,which was organized at JDW Sugar Mills, ensured that atotal of 219 disabled people get 225 prosthetic limbs.

The 2010 Floods caused severe damage in district Rahim YarKhan. Pakistan’s worst floods in recorded history haveclaimed more than 1,750 lives and affected 20 million - morethan tenth of the population. JDW Group in collaborationwith NRSP has set up a Flood Relief Fund (NRSP and JKT).The Management of JDW Group collected Rs. 42.96 millionfor the fund, out of which Rs. 23.22 million were contributedpersonally by the top management, Rs. 5 million by JDWSMLand remaining Rs. 14.74 million by the general public on therequest of the management. This donation was immediatelyprovided food and shelter assistance for the flood affectedfamilies and also assisted in reconstruction of 16 schools and23 mosques.

6.2 The Shakarganj GroupThe Shakarganj Sugar Mills is a brand of ShakarganjFoundation, which is undertaking a sizeable ‘Social ActionProgram’ in the Central Punjab. Through the program thegroup is trying to improve life of local communitysurrounding the mills’ premises. This has translated into agood health and education program. Through the SocialAction Program, the Shakarganj group has provided schoolsand Arts and Skill development centers to the local community.Through its education program, the Shakarganj group hasadopted 31 local schools, out of which 6 primary and 25elementary schools are for girls and one elementary school is


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for boys. Under the Shakarganj Nutritional Programme, over5,000 students, teachers and non-teaching staff have beentested for hepatitis B and C. Furthermore, 5,420 have alsoreceived blood-group testing and issued blood-groupidentification cards. There is also a regular program todistribute fruit and milk at school campuses. The Shakarganjgroup also runs programs on adult literacy and health carefor local communities around the premises of ShakarganjMills.

The Shakarganj Mills Limited obtained the SA-8000 certificatein 2005. The certificate covers procedure for child labor, forcedlabor, health and safety, freedom of association, discriminationdisciplinary practices, and compensation. The Shakarganjgroup is also running an important program on adoption ofenvironment standards. This program has a componentprogram for ecological balance and plant protection likely tobe damaged by industrial waste and carbon emissionproduced in the sugar manufacturing process. TheShakarganj group is also producing ethanol and using bio-composite as fertilizer in the areas to optimize recycling ofindustrial waste.

6.3 The Nestle GroupThe multinational corporation Nestle runs a ‘Corporate SocialResponsibility’ Program with farming communities in Punjab.The Programme is social and financial in nature. Thecompany’s CSR model is based on three key working area;Compliance, Sustainability and Community. According tothe company, compliance is respect for law; sustainability issustenance of farming community’s productivity andcommunity is defined as the farming community. Nestle is


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helping local farmers to develop dairy farming whichimproves profitability of farmers as well as well of thecompany. This also helps local community to develop socially.Nestle encourages public-private partnerships for activeimplementation of its CSR program.

Nestle also runs a nutrition program in the areas from whereit collects milk. Under the program, 25,000 children areprovided milk supplement in schools. In an open-endedinterview, conducted during the survey, local dairy farmersof Sargodha enumerated benefits of the help being providedto them by Nestle Corporation. The farmers are given loansand technical facilities for more productive dairy farming. Thecompany has provided loans to the farmers to establish dairyfarms and collection points with chillers. Farmers own thesebusiness units and repay the loan in easy mode. This improvesprofitability of farmers and the Nestle Corporation alike.Farmer gets better production and productivity and thecorporation gets more raw milk, as a result. However, it isdifficult to categorize this program as CSR. By definition, theprogram is closer to a commercial activity, rather than a CSRactivity.

A number of other dairy companies and sugar mills doingbusiness in the adjoining areas (activities analyzed) havesimilar CSR programs as Nestle did.

6.4 Barclays BankBarclays Bank has embarked upon building a comprehensivesustainability program in Pakistan within a few months ofits arrival in the country. After starting commercial operationsin August 2008, the bank has already committed over PKR 25


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million to CSR projects, and PKR 30 million to a globalpartnership with UNICEF to bring about a positive change.According to Barclays, investing in the community is animportant part of the bank’s sustainability strategy. It isbelieved that the bank’s business will benefit from contributingto the development and sustainability of the communities itoperates in. Globally, Barclays has been consistent inimplementing and encouraging CSR projects for the past 13years. It has demonstrated its global support to communitiesit operates in by investing in projects related to critical socio-economic development sectors such as education,entrepreneurship, financial inclusion and health.

Sector-wise Companies undertaking CSR or relatedactivitiesFollowing is a list of companies undertaking CSR or relatedactivities in various sectors of business and economy. Fromamong them, 28 organizations are working in CommunityDevelopment, 18 in Environmental concerns, 28 in promotingeducation, 04 in water provision and purification, 25 in healthcare, 12 in infrastructure development and 21 in disaster reliefactivities. (Mian Yawar, ‘Corporate Social Responsibility inPakistan’)

Community Development:1. 3M Pakistan (Pvt.) Limited

2. Asia Petroleum Limited (APL)

3. Attock Cement Pakistan Limited (ACPL)

4. Attock Refinery Limited (ARL)

5. BMA Capital Management Limited

6. City Bank


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7. BP Pakistan Exploration and Production

8. Dawood Hercules Chemicals

9. DuPont Pakistan Operations (Pvt) Limited

10. Engro Polymer and Chemicals Limied

11. GlaxoSmithKine Pakistan Limited

12. HUBCO

13. Indus Motor Company

14. Merck Private Limited

15. Orix Leasing Pakistan Limited

16. OUP Pakistan

17. Pakistan Cables Limited

18. Pakistan Petroleum Limited

19 Pakistan Tobacco Company (PTC)

20. Shell Pakistan Limited

21. Siemens Pakistan Engineering Company Limited

22. Singer Pakistan Limited

23. Standard Chartered Bank

24. Telenor Pakistan Private Limited

25. Unilever Pakistan Limited

26. Lakson Tobacco Company

27. JDW Group

28. Shakarganj Foundation

Environment1. Attock Refinery Limited

2. Cadbury Pakistan Limited

3. Citibank

4. Dawood Hercules ChemicalsLimited


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5. Engro Polymer and Chemical Pakistan Limited

6. HSBC

7. ICI Pakistan Limited


9. Lakson Tobacco Company (PTC)

11. Pakistan Mobile Communication Limited (Mobilink)

12. Pakistan PTA Limited

13. Pakistan Tobacco Company (PTC)

14. Rafhan Maize Products Company Limited


16. Tetra Pak

17. JDW Group


10. Merck Pvt Limited

Companies conducting Programs relating to Education1. Abbot Laboratories

2. Asia Petroleum Limited (APL)

3. Attock Refinery Limited

4. Barrett Hodgson Pakistan (Pvt.) Limited


6. BP Pakistan Exploration and production

7. Clariant Pakistan Limited

8. Continental Biscuits (Pvt.) Limited

9. Engro Vopak Terminal

10. Engro Chemical Pakistan Limited (ECPL)

11. Fauji Oil Terminal and Distribution Company Limited(FOTCO)

12. GlaxoSmithKline Pakistan Limited


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13. HSBC

14. IBM Pakistan


16. OUP Pakistan




20. Procter and Gamble Pakistan Pvt. Limited

21. Roche Pakistan Limited




25. The HUB power company (HUBCO)

26. United Bank Limited (UBL)

27. JDW Group


Health Care1. Attock Cement Pakistan Limited

2. Attock Refinery Limited


4. Dawood Hercules Chemicals Limited

5. DuPont Pakistan

6. Engro Chemical Pakistan Limited

7. GlaxoSmithKline Pakistan Limited


9. Lakson Tobacco Company (LTC)



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11. Pakistan Cables Limited


13. Pakistan Petroleum Limited (PPL)

14. Pakistan Refinery Limited

15. Procter and Gamble Pakistan Pvt. Limited

16. Rousch Pakistan Power Limited


18. Siemens Pakistan Engineering Company

19. Singer Pakistan Limited



22. The Hub Power Company (HUBCO)




Water provision and Purification1. Attock Refinery Limited


3. Clariant Pakistan Limited



6. Lakson Tobacco Company (PTC)

7. Nestle Pakistan Limited

8. Pakistan Petroleum Limited


10. Proctoe & Gamble Pakistan Limited



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Infrastructure and Development1. Engro Vopak Terminal


3. Orix Leasing Pakistan Limited


5. Pakistan Oil Fields Limited

6. JDW Group

7. Pakistan Refinery Limited

8. Rafhan Maize Products Company Limited

9. Rousch (Pakistan) Power Limited


11. Unilever Pakistan


Disaster Relief1. Abbot Laboratories


3. BP Pakistan Exploration and Production



6. Engro Chemicals Pakistan Limited

7. GlaxoSmithKline Pakistan

8. HSBC

9. IBM Pakistan



12. Merck Pvt. Limited

13. Pakistan Mobiles Communications Limited (Mobilink)


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14. Pakistan Petroleum Limited (PPL)


16. Pakistan Tobacco Company

17. Proctor & Gamble Pakistan (Pvt.) Limited

18. Roche Pakistan Limited

19. Sanofi-Aventis


21. Siemens Pakistan Engineering Company


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*For any new program to be meaningful and good inextension, rural households should be the prime targetrecipients of CSR program benefits. The CSR program shouldbe prepared to target households that lost value and to setsocial development precedence over commercial development.In the absence of a thoroughly conducted census, it is verydifficult to identify affected households. However, with aproper approach, the desired households can be identified.The best approach of targeting households could be thegender based approach. If after a study, the selection criteriafor the implementation of the gender based approach isdeveloped, there are good chances that implementationthrough this approach will rid the CSR program of anyhidden commercial activity in the garb of the CSR, likeproviding loans to the dairy farmers by the milk packingindustry. The CSR activity linked to the women folk of thesame community, towards which any corporation has a social

Designing a New CSR Program

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responsibility, would lessen the chances of the program beingmolded into a commercial activity. This would be in benefitof the corporation, in the end.

Any program evolved for those ruralworkers, who are an integral part of anyrural-agro supply chain should have a well-defined time-frame, adoptable with thedelivery of tangibles linked to an acceptedstandard, like Millennium DevelopmentGoals’ benchmarking, and quantum ofdelivery should be measured against thecommercial benefit of the organization,during the timeframe.

All those good CSR practices, which arealready being adopted by the industry,should further be improved upon after theirreplication, elseware. There should be clearperformance criteria attached to thedeliverables.

Before replicating any CSR program, abroader dialogue should be arranged amongall the stakeholders, to define criteria andform rules for implementation after sharingresponsibility. If CSR is a right, rather thancharity, there should be a legal bindingunder the given constitutional provisions ofthe country for their delivery. Obviously,Public institutional arrangement has to bethere, for its dispensation.


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Training ‘Community Organizations’ canalso play a major part in negotiating andimplementing CSR programs. Training localcommunities can start by ‘training thetrainers,’ who can then further impart skillsand knowledge to the communities. Tools ofNew medium like videos and documentariescan be used to share good practices amongdifferent COs. Internet and Web can be usedto create a portal of knowledge, after theproduction of initial videos. Similarly, healthand education programs can also have theirvideo tools, which can become a regular partof the toolkit. If required, a regularinstitutional training setup can beestablished at a centralized location.

For possible replication CSR program beingrun by the JDW group (owned by JahanghirTareen and family) is a better model. Thisgroup is engaged in corporate farming and isdoing crop replacement in Southern Punjab(cotton with sugarcane). Both theseinitiatives have major socio-economic impacton local communities. Therefore, probinginto new possibilities in their areas can shownew ways. The case of Shakarganj SugarMills is also important because owners arepersonally pushing the ‘Social actionprogram.’


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7.1 CSR Opportunities in PakistanThere are endless opportunities for responsible businessseeking to build CSR programms in Pakistan. The unequaldistribution of wealth and lack of employment opportunitiesin and outside major urban centers are taking their toll andchoking Pakistani cities. Pakistan is the world’s sixth mostpopulous country and more than 70% of its 180 million peoplelive in rural areas. Development of infrastructure andcommunity improvement programs in rural areas couldreduce the population pressure on cities, as well as bridgethe widening gap between the standards of living of the urbanand rural population. For Pakistan to become a productiveand progressive nation able to feed itself, development of ruralareas is essential. The poor infrastructure and lack of basicamenities of life in remote rural areas is one of the biggestchallenges faced by the country.

For the continuity of a self-sustaining and merit based politicaland judicial system in Pakistan, development of rural areasought to be a priority. Rural areas account for more than75% of the registered voters in Pakistan. They could onlyproduce better leadership to represent them at the provincialand federal level if people are able to make informed decisions.Pakistan’s biggest asset is its people and indigenous demandfor goods and services. Many multinationals and localcompanies recognize this, and are investing in expandingtheir production facilities and operations. Pakistan’stremendous potential for economic growth could be realizedif its people have security and protection of law. This canmean access to education, healthcare, water and sanitation,roads and telecommunications facilities, as well as awarenessabout individual and collective human rights and dutiestowards community and country.


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7.2 Findings

Existing SituationMultinational companies are the leaders inCSR implementation, they have specializeddepartments to design, implement andpublish reports on companies’ activitiestowards social wellbeing of the communities.They have also imported CSR models fromdeveloped economies into Pakistan

Medium and small scale businesses arelargely unaware of the idea of sociallyresponsible behavior in the first place.

Most of the Industrial groups haven’tdesigned the code of ethical conducts to bindthe units to follow them.

Major portion of the CSR activitiesperformed by the businesses are voluntary innature.

Corporate, Environment, Labor, andconsumer laws are governing CSR inPakistan.

Few industries have introduced code ofconduct and ethical principles. A uniformCSR code or compelling law governing CSRpractices does not exist at governmentallevel.

The GapsThere is a lack of complete conceptualunderstanding of the CSR, its framework,


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design, and scope in Pakistan’s corporatesector.

Lack of understanding and willingnessamong businesses to distinguish betweenphilanthropic CSR and the Creation ofshared Value i.e. the relevant CSR that affectsthe value chain.

Lack of awareness among general public ofbasic human rights, citizen rights, andconsumer rights hence lack of questioningby the public and mass media overviolations of the above rights.

Only a handful of local organizations haveseparate CSR departments wherecomprehensive CSR models are recognizedand practiced.

The way forward (What needs to be done)Corporate social responsibility has a specialrole to play in overall growth of economy ofPakistan.

CSR has potential to create difference in thefollowing spheres of life; Development of therural areas, community empowerment,health care, education, protection of law,awareness about rights and duties, creatingmore business opportunities, increasing thefinancial performance of the businesses,ensuring the transparency parameters, andthe development of infrastructure.


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In the rural areas CSR can play its role incommunity empowerment, reducingunemployment, developing poorinfrastructure, provision of basic amenities,minimizing the gaps in income distributions,managing the population pressure andhelping farmers adopt modern techniques.

In the given sectors there is a need of vibrantrole to be played by the CSR to increase thecanvas of the social responsibility and toenhance public well being. The sectors whereCSR may provide the opportunities forfurther improvement are special health care,water and sanitation, education, informationtechnology, vocational education,development research, bio gas energy, childprotection, and gender empowerment.

There is a need for constructive role of civilsociety to be played in the following threedimensions:

1. A massive campaign needs to be launched to raiseawareness on importance and overall gains of CSR notonly for the business, but also for all the stakeholdersinvolved in any of the business.

2. The government needs to make regulations to inculcateCSR in the business activities as a compulsory part. Theseregulations will not be formulated until the citizensdemand their rights.

3. Citizens of the state should form voluntary bodies that maywork as pressure groups that encourage positive CSR


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initiatives and question the unethical practices by largebusinesses, in addition to raising awareness.

All stakeholders meetings/dialogue should bearranged by the businesses, civil society orby the government to develop futurestrategies and to design the products andbusinesses as being demanded by all thestakeholders. This initiative may includetrade associations, chambers of commerce,labor unions, NGOs, media groups andeducational institutions so as to constructmutual appreciation of other’s point of viewand can work together to achieve thecompetitive advantage.

There is a need to synchronize communityneeds with CSR initiatives. This must bedone at governmental level, i.e. areas andsectors in need of CSR the most should becommunicated to and coordinated with anywilling actors of CSR.

CSR requirements of Pakistan must beevaluated and specific solutions should betailored as required, rather than simplyimporting solutions from the developedcountries.


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Annexure

1. Questionnaire for the Business Managers

1. Please specify the value chain in your industry?

2. How do you define corporate social responsibility?

3. What is your model to meet the CSR?

4. Do you think that philanthropy is the only component of theCSR?

5. Are there some legalities, laws and govt. obligationsimplacable to your industry?

6. Do you think there is need of CSR in Pakistan?

7. Does CSR have a value to corporate and nationalcompetitiveness as well as to society at large?

8. What barriers you find in implementation of CSR?

9. Implementation of CSR helps cope WTO how and to whatextent?

10. Do your CSR Model is only to follow the government regulationsor you have more than that to do?

11. Do you strictly follow the government compliance towards theCSR?

I


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12. How many units within industry are following it?

13. Where do you see your unit stand in terms of compliance?

14. What ethical principals or code of conduct are in your industry?

15. Have your unit or industry carved a self imposing socialresponsibility code of the conduct if yes please provide a copy ofthat?

16. What is your strategy for effective implementation of CSR?

17. In your opinion how much general public know about the CSR?

18. Do your buyers insist you to follow the international practices ofCSR?

19. Do your retailers ask you to take CSR?

20. Do you consider that by following CSR standards you canapproach the Global Value chain?

21. What is your corporate governance model?

22. Do you consider environment compliance?

23. What measures have you taken for capacity building of thestakeholders?

24. What measures have you taken to damage control to the supplychain and to the environment?

25. To what extent you are socially compliance?

26. Can you tell me something of your disclosure and Reportingstrategy

27. What is your product integrity?

28. Please elaborate your giving and Community Investment?

29. What is your financial performance?

30. Do government any department/ unit to ensure the CSR practicein Pakistan?

31. In Europe business organizations and their stakeholders aretaking collaborative actions for debating and creating CSR policiesand strategies to achieve a competitive advantage at a nationalstage and to move towards the next wave of responsiblecompetitiveness which is innovation, sustainability, and futurefocus. Are you following the same patron? Please elaborate.

32. What is the social responsibility sharing of your organization forthe environmental cause?


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33. What are you doing to promote the education?

34. What philanthropy practices you are doing?

35. What are you doing of the pollution created by the manufacturingyou are doing?

36. What impact do you think you have on the society?

These, including the ISO 14000 standard for environmentalmanagement systems,

The SA 8000 social accountability standard

37. The Global Reporting Initiative guidelines for sustainabilityreporting?

38. Have you ever conducted the social auditing, if yes please provideyour social report?

39. Please express your support for universal human rights and,particularly, those of employees, the communities?

40. Do you Promote equal opportunity for employees with respectto issues such as color, race, gender, age, ethnicity or religiousbeliefs?

41. Do you Compensate employees to enable them to meet at leasttheir basic needs and provide the opportunity to improve theirskill and capability?

42. Do you provide a safe and healthy workplace; protect humanhealth and the environment?

43. Do you promote fair competition including respect for intellectualand other property rights?

44. Do you Work with governments and communities, in which youdo business, to improve the quality of life?

45. Do businesses have a responsibility for raising awareness,building capacities, and affecting change in ways that impactnational competitiveness in a globalizing world i.e. in this globalworld only where perfect competition is the norm . Onlycompetitive firms will remain in the business?

46. Do Pakistani businesses have anything to contribute meaningfullyto the global CSR debate and how it influences it?

47. What opinion your organization have of organic farming i.e. youbelieve it a good thing, promote it or you differ with the idea?

48. What you are doing to keep the supply chain running?


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49. What you are doing to promote the conditions/productivity/efficiency of the basic producer in your industry?

50. Is there at all, a role for business in working with policy makers tocreate an enabling environment for responsible and ethicalbusiness to flourish?

51. How serious is government you think in ensuring CSR in Pakistan?

52. Do you promote the application of these principles by those withwhom you do business?

Questionnaire for the the base line participants of the value supplychain:

a) How you feel that your income has improved by getting involvedwith this specific company?

b) Have they provided you any training?

c) What do you know of the environment and what benefit peopledo get from the activity you are involved?

d) Has this business opportunity to do business with the specificcompany have improved your life standards?

e) Why you are engaged with this company?

f) Do you think the company you are doing business is doingsomething for the environment, education, infrastructure, trees,or any other social cause they are serving?

g) Do they participate in the Philanthropy?

h) Have they done in response of the natural disasters to help thecommunity if there was any during your business?

i) What benefit your community has got by getting involved withthem in business other than financial gain?

Question to ask from the End Users:

1. Why do you purchase this specific product?

2. Are they damaging environment?

3. Are they ensuring the sustainability?

4. Are they doing philanthropy?

5. Do you think companies do prioritize customer?

6. What benefit you have of this specific product?


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7. Do you ask them to be CSR compliant?

8. Have you participated in any of the activity to force them toperform CSR?

9. Do you think they have some motive other than profit?

2. Questionnaire for the Business Community

1. What do you understand about CSR?

2. Do you have long term plans encapsulating CSR?

i. Do you have employee benefits schemes?

ii. Do the benefit schemes cover their family’s health andeducation?

3. Are you aware of the environmental impacts as a result of yourindustrial activities on the local community?

i. Are you aware of the environmental concerns of the public?

ii. Do you intend to rectify these costs?

iii. Have you previously engaged in mitigation measures?

iv. Were the measures in any way enacted due to pressure fromenvironmental groups?

v. Have you collaborated with other insitutions on tacklingenvironmental pollution?

4. What is your perception of CSOs?

i. Have you chanelled out money to CSOs and CBOs before?

5. Are you aware of other organisations that partake in CSR?

i. Do you have a special relationship with any other organisationpursuing CSR?

ii. Would you be able to identify welfare or developmentorganisations present in your locality?

iii. Are you aware what kind of sectors these organisations areinvolved with?

iv. Are you aware of the roles and responsibilities of the welfareorganisations?

v. Have you ever been approached by a CSO?

vi. What resources would be mobilized by a CSO in differentsectors?


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vii. Have you consisdered the opportunity of joint venture?

6. If you invest in a community, what would be the overlying goalsupporting that action?

i. What resource would be most preferred by you (cash , books,clothes, food?)

ii. Have you donated second hand items to local communitiesbefore?

7. Have you been approached by local politicians to fund theirwelfare & development programs?

8. Have you, in the past, funded local philanthropists?

9. Do staff members give out individual donations or they’d ratherpool in the resources with others under the organizationalumbrella?

10. How much potential is there to expand coverage to sectors suchas health, education, etc?

11. Are there any sectors in particular that you fund?

i. If you have allocated funds to a sector, how much would thatbe?

ii. Do you intend to increase the allocated amount?

iii. Have you funded a sector in the past?

iv. Are you personally involved in philanthropy?

12. How passionate are you about children’s welfare?

i. Where do you obtain the money from?

ii. Who is the first recepient of fund you get from children?

iii. Through which organisation is this money channeled out?

3. Questionnaire for the Philanthropists




3. Are you aware of any other organisation that partakes in CSR?

i. Do you have a special relationship with any otherorganisation pursuing CSR?


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6. If you invest in a community, what would be the overlying goalsupporting that action?

i. What resource would be most preferred by you (cash , books,clothes, food?)

ii. Have you donated second hand items to local communitiesbefore?

7. Have you been approached by local politicians to fund theirwelfare & development programs?

i. Have you, in the past, collaborated with the businesscommunity in funding welfare & development programs?

8. Are there any sectors in particular that you fund?

i. If you have allocated funds to a sector, how much would thatbe?

ii. Do you intend to increase the allocated amount?

iii. Have you funded a sector in the past?

9. How passionate are you about children’s welfare?

i. Where do you obtain the money from?

ii. Who is the first recepient of fund you get from children?

iii. Through which organisation is this money channeled out?

10. Since how long have you been involved in philanthropy?

11. Do you espouse your cause by getting eminent personalitiesinvolved?

12. What is greatest amount of funding you have ever made?


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4. Questionnaire for Local Government Bodies




3. Are you aware of other organisations that partake in CSR?

i. Do you have a special relationship with any other organisationpursuing CSR?







4. How do you intend to strengthen the collaboration between thebusiness community and the local CSOs?

5. Are you actively following any welfare & development programs?

6. Have you been approached by the local communities to addressthe environmental pollution?

i. Have you been approached by local CSOs to checkenvironmental pollution?

ii. Have you ever pursued certain entities within the businesscommunity to check their environmental pollution?


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CSR Activities of different companies related to Education

S.No Names of Companies Education

01. Abbot Laboratories Provides scholarships and financialassistance to its employees.

Sponsors a school at Quaidabad andworks through the Abbot Fund andthe Clara Abbot Foundation for itsCSRactivities.

02. Asia Petroleum Initiated primary educationLimited (APL) programs in six villages, imparting

education to over 250 children.

Additionally APL also sponsoredtechnical programs at Pak-GermanTechnical institute, Hub, for thebenefit of local youth.

03. Attock Refinery Offers internship, apprenticeship,Limited training programs and studyprojects

to students and fresh graduates andprovide support to educationalinstitutions in the company's vicinity.

Annexure

II


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Merit scholarships are awarded toemployees' children from primary upto post-graduation from top-ratedinstitutions including Ghulam IshaqKhan Institute (GIKI) and LahoreUniversity of Management Sciences(LUMS).

ARL donated land to Punjab WorkersWelfare Board at Morgah where twomodelschools are being constructedfor boys and girls.

04. Barrett Hodgson Established the 'Barrett InternationalPakistan (Pvt.) Ltd. School' as their first project. This was

done in collaboration with the 'SalimHabib Education Foundation' whichhas been established to promotequality international schools andcolleges all over Pakistan. Thecompany acquires 6 acres land inKorangi area of Karachi for settingup this school, which is expected tostart from September, 2009. A 10 acreplot has been purchased in educationcity on super highway in Karachi toestablish 'the college of science andtechnology'.

Future plans include implementingsuch projects in Lahore, Islamabadand other cites.

05. BMA Capital Supports the efforts of The Citizen'sManagement Ltd. Foundation, The Human

Development Fund (HDF), thehelpline trust (a consumer rightsadvocacy group), the Women'sFoundation, LUMS, SZABIST, theMassachusetts Institute ofTechnology (MIT), and other worthycauses.

BMA participated in TCF's Mentorshipprogram, bringing under privileged


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youth the opportunity to intern atBMA, passing on professional andleadership skills as well as networkingopportunities at BMA.

06. BP Pakistan Has sponsored theconstruction andExploration and running of Matli Degree College forProduction Girls, Government Girls Higher

Secondary School, Golarchi and theGovernment Girls Higher SecondarySchool, Talhar.

BP also conducts a Road TrafficSafety program.

07. Clariant Pakistan Has set up the Clariant ScientificLimited Center for in-house product solutions

to the Textiles and Leather industry.

It also provides a complimentary6-weeks vocational training courseto students of engineeringuniversities and textile institute ofPakistan.

08. Continental Biscuits Provides scholarships to deserving(Pvt.) Limited students for higher studies.

09. Engro Vopak Terminal Conducts a scholarship program.

10. Engro Chemical Invest a significant amount of fundsPakistan Limited in its education related projects(ECPL) including Sahara Community School,

Katcha Schools Program,Government Schools, AdoptingProgram, Teaching and ResourcesCentre, Sahara Arts and CraftCentre,among others.22 schools, 45teachers and more than 4000 childrenhave benefited from Engro'sinvestments in these projects.

Good example of Engro'scontributions and their impact is theGovernment Schools' adoptionprograms. Under this program Engro


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identifies and adopt governmentschools in neighboring villages withsupport from the EducationDepartment and the localcommunities.

Currently 10 government schoolshave been adopted by Engro with anenrollment of 2234 students.

Engro's support has led tosignificant improvements in thephysical infrastructure and academicstandards of the adopted schools,leading to increase in enrollment inthese schools.

11. Fauji Oil Terminal Provides two complete scholarships,and Distribution one for pursuing medical educationCompany Limited and one for management studies at(FOTCO) the universities run by Fauji

Foundation.

12. GlaxoSmithKline Largest corporate donor to thePakistan Limited "Primary Healthcare Extension

Programme", an initiative of the 'TheNational Commission for HumanDevelopment' (NCHD). This was astep initiated by the Government ofPakistan to conceive innovativestrategies for social reformation withfocus on sustainable humandevelopment. The program includeseducation, adult literacy, reducingpopulation growth rate, capacitybuilding, improving infant/maternalmortality rates etc.

13. HSBC HSBC is actively contributing towardseducation of 50 unprivileged deafstudents through the FamilyEducation Services Foundation (FESF)for a period of one year. FESF is anonprofit, educational, volunteer


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organization working in Pakistansince 1984, and has established theDeaf Reach School to secure betterfuture for the deaf community. DeafReach School and Deaf ReachTraining Centers, currently operatingin Karachi and Lahore, provide aplace of excellence where hearingimpaired persons can develop theirfull potential and increase theiropportunities for success. Coursesare designed to meet the academicand vocational needs with particularemphasis on English, IT training,communication skills, sign languageand social skills, HSBC donates usedcomputer systems to selected NGOsin Karachi, rather than discardingthem. The donation has enabled theBank to support vocational andtechnological programs for thechildren registered in theseinstitutions.

14. IBM Pakistan Has a strong commitment to improvethe quality of life among individual inmany ways, but the most apparentefforts are in the education field fromearly learning to University scholarsprogram.

IBM has donated Kid Smart EarlyLearning computers to many NGOsin Karachi and Islamabad.

IBM also helped NUST to setup aLinux Competency Centre wherecostumers, students, developers andbusiness partners in Pakistanexperience and test Linux hands-onand explore the benefits to openstandards-based computing.


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15. Indus Motor Supports over 20 schools andCompany educational institutions ranging from

small village and garage schools topostgraduate level universities.

The company provides 50scholarships annually to universitystudents.

Internally, at their plant site, theApprenticeship Training Program iswell institutionalized and it allows thecompany to develop high qualitytechnicians for auto manufacturing.

To share their knowledge andexperience, Indus Motor managersassume the role of visiting facultymembers and teach at severalmanagement and technicalinstitutions.

The Toyota Technical EducationProgram (T-TEP) is a 3 yearAutomobile Diploma Programconducted with the assistance ofToyota Motor Corporation thatprovides students training in thelatest automobile technology,enabling them to pursue successfulcareers after graduation. IndusMotor Company offers this programat the Government College ofTechnology, Lahore and SaintPatrick's Institute of Science andTechnology, Karachi.

It is expected to launch the sameprogram at an institute in Islamabadin 2009.

T-TEP Career Days are held annuallyat which the graduating students areoffered jobs by the auto industry


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including company's dealerships andvendors.

Indus motor company's commitmentto spread technology amongst theyounger generation prompted themto organize an all PakistanEngineering Students DesignCompetition for the EngineeringUniversities. The main objective wasto generate innovative ideas tosupport the development of roboticsand automation in Pakistan, and indoing so, link the creativity of youngpeople with the engineering industry.Six leading engineering universities inthe country were invited toparticipate in the competition andengineering students were asked toapply their designing skills to real lifemanufacturing problem and come upwith a solution.

16. OUP Pakistan OUP Pakistan works in closepartnership with various NGOs tofurther the cause of education forneedy and deserving students inPakistan. To facilitate access toquality textbooks for disadvantagedstudents, OUP Pakistansupplies school books toorganizations like the YouthDevelopment Organization and TheCitizens Foundation at specialsubsidized prices.

17. Pakistan Tobacco Pakistan Tobacco Company (PTC)Company (PTC) works with a learning resource centre

in each of its operational regions,with the one located at Akora Khattakdedicated especially to the women.

18. Pakistan PTA Limited Pakistan PTA Limited, since 2005, hasbeen looking the Government Boys'


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School at Ghaggar Phatak under the'Adopt a School's program with SindhEducation Foundation (SEF).

19. Pakistan Mobile Pakistan Mobile CommunicationCommunication Limited (Mobilink), in partnership withLimited (Mobilink) The Citizen's Foundation (TCF)

committed Rs 20 million for theconstruction of 2 schools in underprivileged areas of Lahore andKarachi in December 2006.

A single unit primary school inNathoki Lahore was operational byAugust 2007 whereas a two-storeysecondary school was completed andfunctional by April 2008 in TaiserTown, Karachi.

In total, approx. 360 students arereceiving quality education in cleanand healthy environment as a resultof Mobilink's contribution.

Mobilink also conducts a scholarshipprogram whereby each year Mobilinksupports 3 scholarship each year at 2leading universities in Pakistan.These include one bachelorscholarship in engineering, one forbachelor for Computer Science andone for MBA.

20. Procter and Gamble Procter and Gamble Pakistan Pvt.Pakistan Pvt. Ltd. Limited runs a campaign in

partnership with Health OrientedPreventive Education (HOPE), fullyfunding a network of 60 informalschools across Sindh, benefittingmore than 2000 children throughprovision of free education in theirneighborhood. "Safe Schooling forBuilding Futures".


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P and G Pakistan builds seismiccompliant school in partnership withREAD Foundation in Azad Kashmir,two schools have already beenconstructed in Muzaffarabad, withover 2000 children receiving qualityeducation.

P and G also conduct a WomenEducation Program; an initiativesupported by Society of Obstetriciansand Gynecologists of Pakistan(SOGP), It creates awareness aboutfemale healthcare and sanitaryprotection in Pakistan. The programreaches out to 210,000 women acrossKarachi, Lahore and Rawalpindi.

21. Roche Pakistan Sponsored the construction of schoolLimited for the earthquake affected children

in collaboration with TCF. It donated asignificant amount of funds for theconstruction of a Primary School inHilkot.

22. Shell Pakistan Shell Pakistan Limited's key socialLimited investment lies in education. Shell

supports the technical school for SOSChildren's villages.

Shell Pakistan has also initiated ascholarship programme together withthe Higher Education Commission, tofund the education of up to 50students annually for degrees inengineering and MBA. The ShellScholarship programme will enabledeserving youth to seek highereducation from the premiuminstitutions in the nation and giveback to society.

23. Standard Chartered Standard Chartered Bank launched aBank "Help Educate Pakistan" program in


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2008 to help raise funds for Education.This initiative generated enoughfunds to get 5000 children off thestreets and into schools.

Standard Chartered also has anelaborate Post-MatriculateScholarship programme fordeserving students. So far more than750 scholarships have beencommitted to deserving studentsstudying in various institutions acrossPakistan. The criteria for awardingthe scholarship are financialconstraints of the students andacademic excellence in Matriculation.SCBP has also extended this programto its entire work force acrossPakistan.

24. Telenor Pakistan Telenor Pakistan Private LimitedPrivate Limited introduced the higher national

diploma in Telecommunication todevelop skilled human resource inthe telecom sector.

25. The HUB power The HUB power company (HUBCO)company (HUBCO) has founded a fully funded school for

500 students in the rural area of Hub/Lasbella district. HUBCO haspartnered with TCF to carry out CSRactivities in the education sector.

In addition HUBCO funds the cost oftransportation for the students toattend this school. The catchmentsarea from where the children arebrought to school is about 45kilometers. Assistance is provided to19 government schools in catchmentsarea by providing school desks/benches, books, bags to the childrenas per requirement, in addition to theupkeep of the school building.


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HUBCO also provides 40 scholarshipsto the female students of SardarBahadur Khan Women UniversityQuetta. Each year 15 students fromBaluchistan are sponsored to attendthe Leaders Conference organizedby the school of Leader ship.

26. United Bank Limited United Bank Limited (UBL) donated a(UBL) significant amount of funds to the

SOS village Pakistan for theconstruction of there school injamshoro, Sindh.

UBL also partnered with TCF to coverthe cost of running two TCF schoolsfor a year. UBL contributed towardsrepair of the SOS village Pakistan'sSchool's Boundary wall affected byrain and partnered with the BookGroup to contribute for SMB FatimaJinnah Government Girl's School,Karachi. UBL has also contributed forthe construction of an Aga KhanUniversity Hospital building.


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CSR Activities of different companies related to CommunityDevelopment

S.No Names of Companies Community Development

01. 3M Pakistan (Pvt.) Conducts a traffic safety schoolLimited program by the name of "How Street

Wise Are You?" Under this programchildren are given basic lessonsabout traffic rules and how to staysafe on the roads.

02. Asia Petroleum Has installed heavy duty handLimited (APL) pumps in 6 different villages along

APL's pipeline. This has been done toprovide drinking water facility for thebenefit of surrounding villages. APLhas also facilitated the communitiesthrough the construction of 8 twincities separately for men and womenin different villages.

03. Attock Cement Contributes to local communitiesPakistan Limited by recruiting a large share of their(ACPL) employees from them, thereby

ensuring their welfare and sense ofownership.


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ACPL is committed to being aresponsible neighbor i.e. operating incompliance with applicableregulations and being an integral partof life of communities. ACPLaccomplishes this through supportfrom local nonprofit organizations,providing access to their propertiesand engaging in constant dialoguewith local residents to inform them oftheir activities, as well as listen andrespond to their concerns.

04. Attock Refinery Strives to conserve biodiversity ofLimited (ARL) the Potohar Region for future

generation via pro-poor publicprivate partnership and by providingjobs to the local community. AttockSahara Foundation (ASF) works in theMorgah, Kotha Kalan, Bareen and thenearby regions. Main objectives ofASF are women development, basichealth and skills developmentincluding embroidery, knitting,computer and beautician courses andvarious other programs for povertyalleviation.

ASF also provides financialassistance in the form ofscholarships, Dowry Fund, ZakatFund and Medical Treatment. ARLinaugurated the Morgah BiodiversityPark as a joint venture with theUnited Nations Economic and SocialCommission for Aisa and the Pacific(UNESCAP) and the government ofPakistan to create awareness thatbiodiversity has commercial valueand can be a source of income byproviding jobs to the local community.

05. BMA Capital Has actively partnered with AIESEC,Management Ltd. a Youth Leadership Development and


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Cultural exchange organization whichruns a global internship exchangeprogram. BMA has regularly placedAIESEC members to add to thediversity at BMA and also given thedelegates hands on experience inworking for a professional world classfinancial service firm in Pakistan.

06. BP Pakistan Emphasizes on hiring from localExploration and communities so as to grant a greaterProduction sense of ownership top indigenous

communities, enhance communityparticipation and help in transfer ofskills.

07. Citibank Provides personal financial educationto young people through in-schooland after school programs thaydevelop students' moneymanagement skills by increasingtheir knowledge about theimportance of budgeting, spendingwisely, saving and investing andmanaging credit and debt responsiblyand increase young people'sknowledge and interest in economics,entrepreneurship and the financialservices industry.

Citibank also provides personalfinancial education for adults throughworkshops, counseling pre & postpurchase homeownership throughworkshops or counseling.

Citibank also provides businessfocused fiancial education to micro-entrepreneurs and small businessowners.

Citibank also supports asset buildingthrough saving initiatives and trainsnon-governmental organizations,financial institutions, intermediaries


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and networks to teach financialeducation to members of thecommunities they serve.

08. Dawood Hercules Is supporting Rohni Association, anChemicals NGO providing day care facilities and

vocational training to above-16 agegroups.

09. DuPont Pakistan Has upgraded Korangi Fire StationOperations (Pvt)Limited It also contributed to provide gears

and fire fighting coveralls for firemen.

10. Engro Polymer and Conducts the Neighborhood CareChemicals Limied Program with Citizens Police Liason

Committee (CPLC)

11. GlaxoSmithKine Approved a sizable grant in 2008 toPakistan Limited support the development of a

"Center of Nursing Excellence" inKarachi. This 3 year project incollaboration with the PakistanNational Forum on Women's Health(PNF) and the Pakistan NursingCouncil (PNC) aims at providing thequality of nursing education in thecountry through an extensive trainingprogram that develops the teachingcapabilities of the nursing facultyfrom across Pakistan. The Pilot batchof nursing instructors was recruited inOctober 2008 and the academic yearis in full swing.

12. HUBCO Has been associated with DarulSukoon and Al-shifa Trust in Karachi(both take care of special children) forthe last 8 years, through donationsand time spent with the children atEid and Christmas parties. All ofHUBCO's employees are encouragedto contribute and participate on theseoccasions.


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13. Indus Motor Has undertaken a number of roadCompany safety initiatives to create awareness

etc. One of the most successfulprojects in IMC's road safetyinitiatives is Road Traffic InjuryResearch Project (RTIRP), which is apartnership between Indus Motor,Jinnah and Aga Khan Hospitals andNED engineering University Karachi.It reflected that a high percentage ofaccident victims are children. Inresponse IMC launched the ToyotaSchool Road Safety Campaign inpartnership with Family EducationalServices Foundation. It also featuresRoad Safety Concerts at schoolswhere the Road Safety message iscommunicated in a fun way throughmusic, songs, and skits. The programhas so far reached over 35000children in more than 160 schoolsacross Karachi.

IMC organized a Road Safety ArtContest where over 15000 childrenfrom 100 TCF schools across Sindhand Balochistan participated. RoadSaftey Campaign by ToyotaDealerships was launched in severalcities throughout the country fromtheir dealerships.

During the UN Global Road SafetyWeek (April 23-29, 2007) the companyorganized a number of activities andevents, including the First NationalRoad Safety Conference in 2007. Incollaboration with the SindhEducation Foundation (SEF) and RoadInjury Research and PreventionCenter (JPMC) to create awarenessat a national level and to coordinate


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the efforts of stakeholders in theprivate, government, academic andother sectors reducing road trafficinjuries.

14. Merck Private Promotes the ethnic art of Pakistan.Limited The company constructed the Merck

Chowk roundabout in QuettaCantonment area. Also, merckcalendars for the last 5 or 6 years,have focused on promotion of artistsin Pakistan.

15. Orix Leasing Conducts the Poverty AlleviationPakistan Limited Program to finance income

generations projects on short termbasis. These also include loans tofully recovered patients of MALC andPakistan Center for the Rehabilitationof the Disabled (PSRD). These areimplemented in financial assistancewith Pakistan Center for theRehabilitation of the Disabled (SDC).

16. OUP Pakistan Conducts free workshops based ondifferent school textbook seriespublished by OUP.

In 2007, OUP Pakistan in conjunctionwith the Society for InternationalEducation (SIE) organized a specialworkshop on Dictionary Skills for theteachers of schools run by theCitizens Foundation.

17. Pakistan Cables Contributes to the SAARC Women'sLimited Association.

18. Pakistan Petroleum Constructed the Mother and ChildLimited Health Care Center at Taluka

Headquarter Hospital, Hala. DistrictMatiari. It also constructed theMother & Child Health Care Centerat Kandhkot, District Kashmore,youth hostels and common facility at


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SOS children Village at Quetta,Balochistan.

PPL donated personal computers toDon Bosco Home for orphans,Karachi, Umeed academy for SpecialChildren and Karachi Arts and Crafts.PPL also constructed the LadiesHandicraft & welfare Center buildingat Sui, Balochistan.

19. Pakistan Tobacco Focuses on providing treatment tothe rural dwellers through mobiledoctor units nad prosthetic help tothose suffering from disability in the2005 earthquake affected areas.

PTC also gives donations to RoshniHomes and is providing scholarshipsfor the 12 top performing students ofRoshni Homes Trust until 2010.

20. Shell Pakistan Has a social investment portfolio thatLimited extends itself to general community

development initiatives as well.Shell's Good Neighbors project wasaimed at beautifying theneighborhood around Shell house.Shell Pakistan's effort have made theneighborhood area greener andcleaner, and evoked greatappreciation from neighbors andstakeholders in the area.

21. Siemens Pakistan Focuses on "More EnjoyableEngineering Pakistan" by providing support to artCompany Limited and literature. It has a special

assistance trust fund established tohelp employees with education oftheir children. It also awards goldmedals to top engineering students ofthe country. It donated a refrigeratorto SOS Village, as well as IBMequipment including a mainframe


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computer to the Citizens PoliceLiaison Committee (CPLC)

22. Singer Pakistan Supports the Anjuman Behbood-e-Limited Samat-e-Atfal (ABSA), a center for

disabled children that conductsclasses on sewing and confectioneryby providing them with Singer sewingmachines and cooking ranges.

23. Standard Chartered It is providing employment, training,Bank hiring opportunities to graduates as

Telesales Officers in the bank. Fourgraduates from the Ida Rieu Institutefor the Blind & Deaf were trained bythe Bank's Telemarketing Departmentand hired in Karachi. Seeing theeffectiveness of this project, thisprogram was launched in more citiesand has hired a total of 14 graduatesso far.

SCB has also a unique EmployeeVolunteering Program whereby allstaff are given two days paidvolunteering leave (In addition to theannual leave) to volunteer theCommunity. This amounts to over12000 man days in a year alone. Staffis greatly encouraged to take thisleave and help make a difference inthe community.

24. Telenor Pakistan Enabled enterprising individuals inPrivate Limited indigenous communities by

introducing the ApnaPCO programfor the rural Punjab and interior Sindhentrepreneurs.

25. Unilever Pakistan UPL and World Food Program (WFP)Limited joined in a 3-year global partnership

to fight child hunger. In 2008 Unileverlaunched the employee payrollprogramme to further support the


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WFP School feeding programme andhelp feed over 600 children a month.

To date Unilever has provided anumber of hand pumps in over 5000households of Tharparker andsupport has been provided for thedrip irrigation pilot project for smallscale cultivation.

It has also provided support to MicroDrip to build resource capacity andcapability of Waste Busters to recyclescrap, writeoffs and production wastematerial.

It has also launched the employeeinvolvement programme, InLuv(Integrated League of UnileverVolunteers).

It involves over 160 Unilevervolunteers for projects with CSRpartners, for instance TCF bookreading activity, TCF RahbarProgramme, Sheat First, MicroDrip etc.

26. Lakson Tobacco Conducts a Youth SmokingCompany Prevention (YSP) campaign aimed to

encourage local authorities and tradepartners to educated retailers to onlysell cigarettes to adults and helpgovernment establish and implementeffective laws to prevent minors frombuying cigarettes.


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CSR Activities of different companies related to DisasterRelief

S.No Names of Companies Disaster Relief

01. Abbot Laboratories Provides medicines to flood affectedfamilies and individuals. It alsoconducts a healthcare center atGarhi Dupatta, and works throughthe Abbot Fund and the Clara AbbotFoundation.

02. BMA Capital Has chartered an airplane at the timeManagement Ltd of the 2005 earthquake, filled it with

relief goods including medicines,tents and other supplies and flew itdirectly to the affected areas.

In addition, BMA organized a fundraising musical concert whoseproceeds were donated to TheCitizen's Foundation, earmarked forEarthquake relief.

BMA also donated directly toemployees who were impacted by


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the quake, rebuilding their destroyedhomes.

03. BP Pakistan Provided aid for earthquake victims,Exploration and as well as flood victims in Badin.Production

04. Cadbury Pakistan With the help of TCF donated twoLimited houses and water supply to the

victims of the tragic earthquake thatstruck the North Western part ofPakistan. Its employees alsocontributed one day's salary.

05. Dawood Hercules Dispatched 200 quilts and 150 cottonChemicals Limited blankets to Quetta on October, 31,

2008 as part pf relief efforts for theBalochistan earthquake.

The company also helps thoseaffected by the situation in SwatValley and dispatched 400 bagscontaining flood items (flour, rice, tea,and sugar), blankets, and toys forchildren. Volunteers from the HeadOffice and Plant assembled to packthese goods and load them on thetrucks.

06. Engro Chemicals Provided 4000 cartons of milk as partPakistan Limited of primary relief efforts in response

to the devastation caused by theearthquake in Balochistan in October2008. These were distributed amongthe earthquake affectees of sevenunion councils of Ziarat and Pishindistricts in Balochistan.

07. GlaxoSmithKline Donated emergency relief medicinesPakistan and vaccines to the Balochistan

earthquake victims. At the time of2005 earthquake, GSK Pakistanresponded to the calamity affectedareas with antibiotics, analgesics andtopical anti bacterial supplies.


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A donation of up to 350000 doses ofHepatitis A vaccine was given tohealth authorities to cope with arisinghealth concerns in the wake of theearthquake, which made it one of thetop donors at that time. The UK headOffice also provided continuedsupport and administrativeassistance to route aid. In alliancewith CFC a crisis team was alsoformed which contributed in thegeneral relief work. They operated inGarhi Duppatta, a town nearMuzaffarabad. Its employees alsodonated one day's salary for therelief efforts.

08. HSBC Partnered with TCF in theconstruction of 14 homes and a watersupply scheme in the entire BandiKarim Haider Shah Village in AzadJammu and Kashmir. With DawnRelief Earthquake WelfareOrganization, 25 prefabricated homesimported from China were installedwithin the mountainous regions of theHattian Bala Village, thus providingshelter to the earthquake affectedfamilies. Working with the PakistanRed Crescent Society, HSBC providednecessary funding for theconstruction of a Girl's PrimarySchool at Toofarabad with a wellestablished earthquake resistanceinfrastructure. A primary school for450 orphan children is beingconstructed in Rawalakot, AzadJammu and Kashmir, together withthe SOS Children's Village ofPakistan.

08. HSBC Partnered with TCF in theconstruction of 14 homes and a water


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supply scheme in the entire BandiKarim Haider Shah Village in AzadJammu and Kashmir. With DawnRelief Earthquake WelfareOrganization, 25 prefabricated homesimported from China were installedwithin the mountainous regions of theHattian Bala Village, thus providingshelter to the earthquake affectedfamilies. Working with the PakistanRed Crescent Society, HSBC providednecessary funding for theconstruction of a Girl's PrimarySchool at Toofarabad with a wellestablished earthquake resistanceinfrastructure. A primary school for450 orphan children is beingconstructed in Rawalakot, AzadJammu and Kashmir, together withthe SOS Children's Village ofPakistan.

09. IBM Pakistan Provided relief to the 2005 earthquakevictims in the form of cash, laptopcomputers, server hardware,KisdSmart computers, rehabilitationcenters, and open source disastermanagement, software.

IBM also sponsored TraumaManagement Workshops wherebythey invited doctors from HarvardMedical School who conductedsessions to train the trainers tomanage trauma of adults andchildren.

10. ICI Pakistan Limited Provides relief and rehabilitation forearthquake victims & also conductsICI Relief Camp for rain affected onregular basis. ICI donated asignificant amount to the President'sEarthquake Relief Fund following theOctober 2005 earthquake in Kashmir.


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11. Indus Motor Helped in Balochistan and Sindh afterCompany cyclone "Yemyin". Working with

HOPE in interior Sindh, IMC set upmedical camps that attended to over1000 patients and provided food andtemporary shelter to 100 families.Similarly, IMC directly participated inan extensive relief operation forvictims of the disastrous earthquakein 2005 by setting up base camps fordistribution of supplies and providingemergency medical assistance. Asimilar effort was undertaken by theCompany when an earthquake hitBalochistan in 2008.

12. Merck Pvt. Limited Built seismic houses in Muzafarabadin the aftermath of the earthquake inOctober, 2005. The project includedtraining of local crafts people intechnical skills to build earthquake-proof seismic houses.

13. Pakistan Mobiles Partnered with TC F in rehabilitationCommunications and reconstruction activities inLimited (Mobilink) Chamman Kotli Nawab Khan Village

following the 2005 earthquake. Theproject included construction of 172houses, as well as providinginfrastructure and a water supplysystem for the residents of thevillage. Mobilink was also able toeffectively and efficiently provide aidand support to the victims of floods inPakistan. Victims received aid thatincluded food items, medicines, tents,clothes and most importantly cleanwater.

It also collected funds for floodvictims through SMS donations whichwere then used to install hand pumpsin the area of Badin in collaboration


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with NRSP, the National Rural SupportProgram.

14. Pakistan Petroleum Conducts an emergency relief andLimited (PPL) rehabilitation program that has been

operating the PPL Rehab Center atBagh, Azad Jammu & Kashmir forrehabilitation of earthquake victimsand general public throughout theyear. PPL has also contributed to thePresident's Flood Relief Fund as wellas provided emergency relief forflood victims of District Kech andDistrict KAmbar-Shahdadkot andearthquake victims of District Ziarat,Balochistan.

15. Pakistan PTA Limited Contributed to the Earthquake ReliefFund

16. Pakistan Tobacco Partnered with the Pakistan InstituteCompany of Prosthetic and Orthotic Sciences

(PIPOS) and CHAL- a Pakistan basednetwork aimed at rehabilitating thedisabled in the earthquake affectedareas-to set up rehabilitation facilitiesat a Batagram.

17. Proctor & Gamble Helped the Balochistan flood victimsPakistan (Pvt.) in 2007 by donating 550 cases of PuRLimited. water purifier-a cornerstone of P & G

Global Sustainability- equivalent to132000 scahets. PuR water purifier is aproduct of O & G manufacturedexclusively in Paksitan solely forpurposes of donation and distributionto disaster affected areas all over theworld. P & G in collaboration withREAD Foundation also launched the"Safe Schooling for Building Future".In the 2005 earthquake affected areasof Pakistan to provide high-qualityeducation to the children there.


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18. Roche Pakistan Sponsored the construction of aLimited school for the earthquake affected

children in collaboration with TCF. Itdonated a large sum of money for theconstruction of a Primary School inHilkot. Employees of Roche PakistanLimited also contributed significantlyto the President's Earthquake ReliefFund. It also contributed to medicinesand tents.

19. Sanofi-Aventis Donated medicines to the peopleaffected by the Kashmir earthquake.Donations of cash and dry food stuffwere also provided to the peopleaffected by the floods in Sindh andBalochistan.

20. Shell Pakistan Limited Has partnered with TCF buildingprimary schools in the earthquake-struck northern areas to reach out tounder privileged children.

21. Siemens Pakistan Has set up camp and collected goodsEngineering for earthquake victims of Balochistan.Company First Aid boxes were provided in

cooperation with Sindh Hilal-e-Ahmerat all traffic check posts in Karachiand traffic police was given trainingto provide first aid. Siemens alsocompleted the second phase of the"Light for Life" project, providingSolar Energy to village Butnara inAzad Kashmir consisting of 150houses. Siemens also sponsored the"Munawar-uz-Zama Memorial"hockey tournament.


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CSR Activities of different companies related to EnvironmentPlantation and Forestation

S.No Names of Companies Environment Plantation andForestation

01. Attock Refinery Conducts National CleanerLimited Production Center (NCPC) Pakistan.

Through its Cleaner ProductionProgram, NCPC is bridging the gapbetween competitive industrialproductions, environmental concernsand offering sustainable and costeffective solutions, through wasteminimization at source.

ARL also stopped the use ofpolythene bags and introduced paperbags at ARL's Fair Price Shop.

02. Cadbury Pakistan Celeberated the World EnvironmentLimited Day by planting 12 trees in the

Factory at Hub in December 2007.The "Purple Goes Green" paper andenergy saving project was started atthe Head Office & Factory and all the


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employees continuously workingtowards this initiative. As part ofHealth & Safety Parameters Training,basic hygiene, cleaning andsanitation training was given topermanent and contractual workersby the Quality Assurance & SafetyManager. The HVAC System hasbeen set up to improve operationalenvironment in order to meet globalenvironmental standards.

03. Citibank Provides entrepreneur trainingincluding Business Plan Development,Business Development Skills,Management Skills, accessing capital,mentoring, value chains, andnetworking in such areas as forestry,sustainable agriculture, orecotourism.

Citibank is also engaged in researchor data collection to initiate localneeds assessments or marketassessments that support thedevelopment of sustainablebusinesses and assess theirenvironmental benefits.

It also aims to develop financialinstruments and tools that supportsustainable enterprises, and buildawareness of sustainable enterprisesthrough awards or other forms ofrecognition.

04. Dawood Hercules Conducts the maintenance ofChemicals Limited 37,000 trees planted in the land

surrounding the DH plant throughoutthe year. Now many of the plantedtrees have reached the selfsustaining stage. A boundary wall isbeing constructed around theplantation area.


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05. Engro Polymer and Participates in the Indus DolphinChemical Pakistan Conservation Program.Limited

06. HSBC Has joined hands with World WideFund (WWF) in a Mangrove Watchand Saplings Plantation project at theSandspit Beach in Karachi, as part ofits celeberations of WorldEnvironment Day on 5th June 2008. 50HSBC Karachi employeesparticipated to show commitmenttowards environment conservation.

07. ICI Pakistan Limited Reclaimed approximately 55 acres ofland at Khewra by planting 300000trees over the last several years,hence turning the land into a foresthabitat for local and migratorywildlife. The project is beingmonitored and sustained so as toensure its long term viability as anecological benefactor to the area. ICIalso partners with WWF Pakistan tosupport projects such as the NaturalCarnival and WWF Save the MarineTurtle Project.

08. Indus Motor Contributes to the environmentCompany friendly co generation power plant to

save energy and reduce carbonemissions which have gone down by11% last year. Also wastewatertreatment plant, a thinner recyclingmachine to reduce waste thinner inthe trees at the plant site. IMC wasthe first automobile company tocommence use of environmentfriendly gas R-134a in car airconditioners (instead of CFC-12). Thecompany also undertook thepreservation of Lake Saiful Muluk. Itis an ISO 14001 and 9001 certifiedcompany.


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09. Lakson Tobacco Is actively engaged in itsCompany (LTC) reforestation project and has

distributed in excess of 7 millionsaplings to tobacco farmers to date.LTC has also launched its ownsaplings' nursery on 8 acres of land inMardan. The nursery hassuccessfully raised indigenous andexotic species of forest saplings suchas Poplar, Acacia, Mulberry, Shisham,Bakain and serene. The nursery isexpected to be ready with some 1.1million saplings by spring 2009 fordistribution to tobacco growers. LTCplans to extend its reforestationproject on waste lands, saline soilsand riverside belts in collaborationwith the Forest Department andPakistan Tobacco Board.

10. Merck Pvt. Limited Conducted a tree plantation projectclose to Hanna Lake, Quetta.

11. Pakistan Mobile Has implemented a recyclingCommunication program which uses outdatedLimited (Mobilink) billboard skins to manufacture school

bags for under privileged children.The program is aimed at reducing theburden of non-biodegradablematerials on the environment. So far5,000 schools bags have beendonated to CARE Foundation Schools.Mobilink is the first and onlycorporate organization in Pakistan toimplement such a program.

12. Pakistan PTA Limited Has launched a tree plantationproject as a response to abiodiversity survey that wasconducted by WWF of the PTA site.

13. Pakistan Tobacco Regularly sponsors forestation, wasteCompany (PTC) management, and energy and water

conservation projects.


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14. Rafhan Maize Conducts plantation drives acrossProducts Company Pakistan.Limited

15. Shell Pakistan Conducts the NeighborhoodLimited Beautification Project as well as

contributes to the Mangrove ForestReservation program and AyubiaNatural Park Conservation.

16. Tetra Pak Tetra Pak's environmentalsustainability aim is to offercustomers the best packaging for theenvironment. Official studiesindicate that paperboard packagingcompanies well with other kinds offood packaging, especially withregard to climate impact. Tetra Pak'senvironmental strategy is currentlyprimarily aimed at recycling, renew-ability and carbon footprint. Underrecycling, in 2007, the global recyclingrate for Tetra Pak was 16%. InPakistan, Tetra Pak expanded theirrecycling network to 44 cities,employing more than 1100 persons,thus generating employment andhelping infrastructure building. Underrenew-ability, around 75% of the rawmaterials Tetra Pak uses tomanufacture packaging come fromcellulose fiber, a renewable resource.Under carbon footprint, Tetra Pakaims to reduce its carbon footprint inmany ways, including working toincrease recycling, reduce thequantity of materials in its packagingand reduce energy use in its ownproduction.


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CSR Activities of different companies related to Healthcare

S.No Names of Companies Healthcare

01. Attock Cement Operates a 6-bed hospital near itsPakistan Limited factory premises. The treatment is

free for local communities.

02. Attock Refinery Significant improvements wererecorded in their lost-time & injuryfrequency rate, & they continued tooutperform the industry in thisimportant matrix. During the year, byvirtue of strict compliance to internalpolicy, they have a lost time &incidence rate of 0.3 only, ascompared to industry average of2.77.

The company is focused on providingthe best in health care in anequitable, affordable, accessible andcost effective manner to thecompany's corporate clients and thefinancially compromised community.


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03. Cadbury Pakistan Has set up blood donation camps withLimited the help of Fatimid Foundation at

their factory & Regional office. A totalof 69 people donated blood and this isplanned to be an ongoing activitywhich could be organized at regularintervals during the year.

Sales officers of Karachi alsoparticipated in the Karachi CityMarahthon Health Walk. Moreover,all permanent workers' families arevaccinated for hepatitis.

04. Dawood Hercules Has been organizing weekly free eyeChemicals Limited camps since November 2006. A

qualified ophthalmologist examinesthese patients. People with minorproblems are given suitable medicaladvice along with free medicines.Those requiring cataract surgery arereferred to a private hospital inLahore. All expenses related tosurgery including transport,medicines, examinations &procedures are borne by theCompany.

To date, 103 camps have been held,recording over 22,500 outpatient visitsand 1056 cataract operations. In viewof the huge beneficial impact of thisactivity the CSR Committee hasdecided to continue it in 2009.

Also a third Blood Donation Drive wassuccessfully conducted in May 2008,in collaboration with the RedCrescent Society of Pakistan. A totalof 36 employees donated blood.

05. DuPont Pakistan Conducted the First Aid CommunityProgram, which provided safetytraining experience, essential


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elements of what is considered safe,helpful and effective in occupationalsettings. The program aimed toempower TCF teachers to help theirschool children and their families athome to prevent injuries andwhat to do in emergency.

The training was conducted by theDepartment of Nursing EducationServices of the Aga Khan UniversityHospital.

06. Engro Chemical Invested in Projects like Dar ul ShifaPakistan Limited Clinic, Snakebite clinic, Thalassemia

Center, Kidney Dialysis Centers, andTelemedicine "Project Hope", amongothers.

More than 23000 patients benefitedfrom these projects in 2008. Engro'sSnakebite treatment facility, housedin Engro Clinic, at Daharki, is the onlyfacility available for snakebite victimsin the Ghotki and surroundingdistricts.

In 2008, a large sum of money wasspent on treatment of 4962 snake bitepatients at the facility.

07. GlaxoSmithKline Supports the Concern for ChildrenPakistan Limited (CFC) Trust, established in 1997. With

GSK's support CFC has set up threecomputer literacy projects with lowincome schools across Karachi.Approximately 8000 children havebenefited from these facilities.

Currently CFC is engaged indeveloping a project in Mohammadi(Machhar) Colony-a shantysettlement along the city port.

A "mother and child" healthcarecenter is also being set up there to


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provide primary, pre-natal and anti-natal services and health information.

Approximately eight to ten thousandmothers and children annually areexpected to be reached through thisprogram. A sizable sum is donated byGSK Pakistan for this purpose.

GSK also provides medication in thefree healthcare camps organized byCFC in different parts of the country.

08. ICI Pakistan Limited Contributes to healthcare sectorthrough its partnership with theLayton Rehmatullah Benevolent Trust(LRBT) Eye Clinics at ICI'sWinnington Hospital at Khewra. Todate this clinic has conducted over10000 major and minor eye surgeriesand over 100000 eye patients havebeen treated on an OPD basis. Thehospital on its own is visited by over100 OPD patients per day.

09. Lakson Tobacco Started its initiatives in 1992 in theCompany (LTC) healthcare field by offering local

residents free eye checkups and eyeoperations at mobile medical units.

Later in 1999, LTC under the umbrellaof the Lakson Medical Trust, LTCfinanced two eye hospitals in Swabiand Sahiwal in 2001 and 2004,respectively. Over the last 6 yearssome 200,000 patients have beentreated over there & 10,000operations conducted at thesehospitals.

A diagnostic center in Mardan wasalso established by the trust in 2007.Earlier this year, LTC and PhilipMorris International Inc. (PMI)contributed USD 100,000 in the Lakson


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Medical Trust fund to be utilized forthe purchase of 2 state of the artArgon Laser Treatment Machines fordiabetic patients suffering fromblindness.

10. Pakistan Tobacco It runs Mobile Doctor Units inCompany (PTC) Mansehra, Buner, Yar Hussain,

Shergarh, and in the outskirts ofAkora Khattak factory. The doctorsthere treat about 3000 people in amonth.

PTC also provides eye care throughpartner Layton RahmatullahBenevolent Trust (LRBT) benefitingover 1000 people per year.

PTC has also partnered with NationalInstitute of Health/Ministry of Healthand the Prime Minister's Program forHepatitis to launch a drive for theprevention and control of hepatitis indistrict Swabi.

11. Pakistan Cables Contributes to Kidney center, LRBT,Limited and the Al-Shifa Trust Eye Hospital.

12. Pakistan Mobile Has been collaborating with PakistanCommunication Myasthenic Welfare OrganizationLimited (Mobilink) (PMWO) at the Pakistan Institute of

Medical Sciences (PIMS) hospital,Islamabad for the treatment ofpatients suffering from MyasthenicGravis and GBS.

It also conducts the Lady HealthWorkers Pilot Project. In 1994,Mobilink launched program forFamily Planning and Primary HealthCare through the Ministry of Healthwith the aim of providing primaryhealthcare at community level.Today, 100000 Lady Health Workers(LHWs) provides basic healthcare totheir community.


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PMCL in collaboration with theMinistry of Health, United NationsPopulation Fund (UNFPA) and theGSMA Development Fund to test twopossible communication solutions forthe timely referral of patients. Theseare low cost mobile phones and PCOwhich will also provide a secondaryincome generation opportunity forthe lady health worker. The pilot isbeing run in Chakwal andMuzaffargarh districts in rural Punjab.

13. Pakistan Petroleum Free medical dispensaries at Sui andLimited (PPL) Mazzarani throughout the year

Free surgical eye camps at DeraBugti, Kamber, Kandhkot and Adhi(Rawalpindi)

Contributes to Marie AdelaideLeprosy Centers (MALC) atKandhkot, Kech & Panjgur for controlof Leprosy, tuberculosis andblindness.

Also supports Fatimid Foundation,Karachi to establish theHematological center & Blood Bank atHyderabad. It also monthlycontributes to Psychiatric Club &Rehab Center of Karwan-e-Hayat,Karachi for purchase of psychotropicMedicines.

It has also constructed Patient Wardsat DHQ hospital Khuzdar and RuralHealth Center, Jhall Magsi town.

It also supports Patients WelfareSociety for treatment of poor patientsat Agha Khan University, HospitalKarachi.

PPL contributes to Sindh Institute ofUrology and Transplantation (SIUT),


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Karachi as well as the Bait-ul-SukoonCancer Hospital, Karachi.

14. Pakistan Refinery Has provided over 1000 healthLimited treatment kits to communities.

15. Procter and Gamble Conducts the Pampers HospitalPakistan Pvt. Limited Education Program and Mobile

Clinics, educating about 5.6 millionyoung mothers about healthy babycare practices.

It also conducts Safeguard Sehat-o-Safai Program. This campaign, led bySafeguard in collaboration with theInfectious Diseases Society ofPakistan (IDSP) and Pakistan MedicalAssociation (PMA) has educatedmore than 5 million children from allsocioeconomic classes, in 8000schools, about better hygienepractices, especially the importanceof regular hand washing with soap.Safeguard led the first ever GlobalHand-washing Day on 15th October2008 in Pakistan. In partnership withUNICEF & the Ministry ofEnvironment. About 700,000 childrenwashed their hands with Safeguardand received vital hygiene educationto commemorate the day.

16. Rousch Pakistan Conducts Free eye camps.Power Limited

17. Shell Pakistan Has contributed to support the LRBT,Limited a chain of 14 hospitals throughout the

country, which provide free eye-caretreatment including corneareplacement surgery to over onemillion patients annually, completelyfree of cost.

Its one of the first companies to fightthe spread of HIV/AIDS. Breaking


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taboos to educate, it offers VCTservices through its partners todisseminate education about HIV/AIDS and its prevention.

18. Siemens Pakistan Focuses on working towards aEngineering "Healthier Pakistan" by providingCompany support to sports activities.

19. Singer Pakistan Sponsors a program for freeLimited restoration of eyesight through the

Al-Shifa Trust Eye Hospital forprevention and treatment ofblindness.

20. Standard Chartered Has a global campaign "seeing isBank believing" which aims to eradicate

blindness and was launched inPakistan towards the end of 2004. Twoleading eye care hospitals in Karachi& Lahore have been supported underthis program. These hospitals arebeing run by Layton RehmatullaBenevolent Trust (LRBT).

SCB also provides advanced trainingto practicing ophthalmologists inCataract Surgery under the sameprogram. This program wasconducted at LRBT Hospital inKorangi, Karachi, Prevention andControl of Blindness Cell in CivilHospital, Karachi and Punjab Instituteof Preventive Ophthalmology inMayo Hospital, Lahore. So far over90 Ophthalmologists have beentrained. Also under "Seeing isBelieving " is "Eye Care for Millions" ahealthcare services. Through thisintervention, a sustainable trainingprogram has been built to deliverpreventive eye care at thecommunity level by training 20000Lady Health Workers. The project


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was formally launched on December27, 2007, at the national level. Anestimated 1 million people (including400,000 children) are expected toreceive primary eye care servicesannually at the end of the project andat least 20 million will benefitindirectly.

21. Telenor Pakistan Conducts the "Donate Blood, Save aPrivate Limited Life" whereby blood donors'

registration takes place through sms/web in a database.

22. The Hub Power Provides medicines on a quarterlyCompany (HUBCO) basis to 6 government dispensaries

located in the villages in Hub &Gadani Areas of Baluchistan as perrequirement.

Two free eye clinics are organized incollaboration with Al Ebrahim EyeHospital.

Once a year the children of 20schools (1 TCF/HUBCO and 19government primary schools) areexamined by eye sepcialists and areprovided medicines at HUBCO'sexpense.

HUBCO has been associated withLRBT Eye Hospital for a long time andevery year it donates a significantamount for the medicines provided topatients in their Quetta hospital.Computers have been donated toLRBT Quetta & Karachi to assist withtheir plan to computerize all medicalrecords. Equipment provided to LRBTQuetta includes Photo Coagulator-Laser & YAG Laser. HUBCO incollaboration with InternationalPower also donated 6 ambulances to


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EDHI to be used in HUB and Quettaregion.

23. Unilever Pakistan Annually supports Marie AdelaideLimited Leprosy Center (MALC) hospitals,

dialysis support to the Kidney Centeras well as eye treatment support tothe Layton Rahmatullah BenevolentTrust (LRBT) Fund for freeconsultation and surgery.

There is also Lifebuoy's partnershipwith USAID and PPAF to educatecommunities and children on hygieneand the importance of hand-washing.Lifebuoy cosponsored GlobalHand-washing Day on 15th October andhereby educated 500000 childrenacross Pakistan.

Fair & Lovely supports breast cancerawareness programs; 2 patients werealso treated at the Shaukat KhanumCancer hospital.

Surf helps educate mothers andteachers on the importance ofplaying for child development. It haspartnered with NGO ITA to includeexperimental learning in earlychildhood Government curriculums inLahore, which will be beneficial toover 35,000 children and teachers.Surf also partnered with local parkauthorities to set up play equipmentin community parks to encouragefamilies and children in outdooractivities.

24. United Bank Limited It has adopted the Marie Adelaide(UBL) Leprosy Center (MALC) in Garhi

Dupatta. UBL also sponsored sixdialysis machines given to SIUT.


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CSR Activities of different companies related toWaterProvision and Purification

S.No Names of Companies Water Provision and Purification

01. Attock Refinery Provides portable water toLimited (ARL) surrounding villages of Morgah, Nai

Abadi, Kothakalan, Jhamra & welfareorganizations such as SOS village,school for special children and FauijiFoundation Hospital.

02. Cadbury Pakistan Provided water filters for schools.Limited Seven complete cartridge water

purifying filters were donated tounder privileged schools in Hub.Cadbury also looks after themaintenance and cleaning of thesefilters on a regular basis.

03. Clariant Pakistan Has set up a water purification plantLimited at Clariant Manufacturing site in

Jamshoro for provision of highquality drinking water to surroundingvillages. There is also a waste watertreatment plant at Clariant site in


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Jamshoro for safe disposal of wastewater.

04. Dawood Hercules Has installed water purification plantChemicals Limited to provide clean drinking water to

TCF School-DH campus as well as thepeople living in its proximity. Anothersuch plant installed at Noor PurVirkan and other in the heavilypopulated area of village Bawe DeeKuttiya, opposite Dawood HerculesPlant. The third plant was installed atthe Mayo Hospital, Lahore for benefitof patients and hospitals staff.

05. ICI Pakistan Limited Provides 23,000 gallons per day ofdrinking water for the residents ofKhewra, a town where the companyoperates its soda ash plant. ICI hasrecently approved a project wherebya pipeline will be installed forproviding water directly to residents'homes.

06. Lakson Tobacco Has installed a water filtration plantCompany (LTC) at its factory in Mardan. This initial

project is to be enlarged in thecoming months to also benefit otherresidents of Mardan and a few moreof those water filtration units areplanned to be built in the surroundingcommunities where LTC growstobacco.

07. Nestle Pakistan Has set up the Nestle Water FiltrationLimited plant at District Headquarter Hospital

Sheikhupura in Punjab for thepatients.

08. Pakistan Petroleum Established a free water supply forLimited (PPL) communities living around Sui gas

field. PPL also established a watersupply scheme for Ghabi Dero.


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09. Pakistan Tobacco Installed 4 water filtration plant thatCompany (PTC) are currently operational in Buner,

Akora Khattak, Isori Payan and YarHussain & four more units wereinstalled in 2007 in partnership withdistrict governments & theCommunity Citizen Boards of NWFP.

10. Proctor and Gamble In collaboration with US Centers forPakistan (Pvt.) Disease Control and Prevention hasLimited developed a low cost technology

called PuR, Purifier of water, to purifyeven heavily contaminated drinkingwater so that it meets World HealthOrganization standards for safedrinking water. Studies show that thePuR sachets can reduce diarrhealillness in children by more than 50%.PuR not only exports over 2.8 millionliters of clean water around the globebut also creates goodwill for Pakistanin the international community. Forthe 2005 earthquake disaster animmediate PuR response wasundertaken in partnership withGreenstar and UNICEF. PuRcontributed over 15 million sachets -enough to treat over 150 million litersof water in Tsunami affected areas inDecember 2004.

11. Unilever Pakistan Has installed hand pumps in overLimited 5000 households of Tharparker and

provided support for the dripirrigation pilot project for small scalecultivation.


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CSR Activities of different companies related to InfrastructureDevelopment

S.No Names of Companies Infrastructure Development

01. Engro Vopak Supported the development of healthTerminal facilities at PQ, including emergency

services.

02. ICI Pakistan Limited Supported the Government'srehabilitation efforts by building anearthquake-proof school building atGarhi Habibullah for the victims ofthe 2005 earthquake.

03. Orix Leasing Has a Microfinance ProgramPakistan Limited whereby Orix constantly strives to

work with various MicrofinanceInstitutions to provide help to smallscale entrepreneurs, particularlywomen, to improve their lifestyle.

04. Pakistan Mobile Is committed to the rebuilding ofCommunication Chamman Kotli Village. Mobilink isLimited (Mobilink) also engaged in renovation of cricket

grounds.


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05. Pakistan Oil Fields Has undertaken road developmentLimited projects.

06. Pakistan Refinery Contributed to the Korangi RoadLimited Repair Program.

07. Rafhan Maize Contributed to the construction ofProducts Company Jaranwala Bypass Road.Limited

08. Rousch (Pakistan) Undertakes improvement/development projects at surroundingareas of their Power Plant at AbdulHakim District Khanewal.

09. Shell Pakistan Conducts the Shell Tameer Program, Limited introduced in 2003, today it exists as

one of the foremost efforts tofacilitate youth entrepreneurship inthe country. Now in its fifth year ofproviding entrepreneurship guidance,the Shell Tameer Program hasengaged more than 38,000 youngpeople through Workshops,Seminars, Meetings and our Website.43 Workshops have been conductedfor 2500 young people and 61seminars have provided awarenessto over 12,000 students.

10. Unilever Pakistan Has undertaken a project named"Vitality Village" which will houseapproximately 700 people in 100homes. The project is in partnershipwith TCF for a seismic housing.

11. United Bank Limited Contributed to repair the SOS Village(UBL) Pakisan's School's boundary wall

affected by rain. UBL also contributedto the construction of an Aga KhanUniversity Hospital building.


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Annexure

Existing State of CSR in Pakistan from perspective of differentLegislatures

1. Corporate Code of Governance under SECP:

SECP provides guidelines about CSR in its Corporate Code ofGovernance published in March 28, 2002, under following heads:

Significant issues to be placed for decision by the board of directors

In order to strengthen and formalize corporate decision-making process, significant issues shall be placed for theinformation, consideration and decision of the Boards ofDirectors of listed companies.

Significant issues for this purpose may include:

Any significant accidents, dangerous occurrences andinstances of pollution and environmental problems involvingthe listed company;

significant public or product liability claims likely to be madeagainst the listed company, including any adverse judgment ororder made on the conduct of the listed company or ofanother company that may bear negatively on the listedcompany;

III


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disputes with labour and their proposed solutions, anyagreement with the labour union or Collective BargainingAgent and any charter of demands on the listed company.

Corporate and financial reporting framework the directors’ report toshareholders

The directors of listed companies shall include statements tothe following effect in the Directors’ Report, prepared undersection 236 of the Companies Ordinance, 1984:

The Directors’ Reports of listed companies shall also include thefollowing, where necessary:

Significant plans and decisions, such as corporaterestructuring, business expansion and discontinuance ofoperations, shall be outlined along with future prospects, risksand uncertainties surrounding the listed company.

2. Prudential Regulations under SBP

SBP provides guidelines about CSR in its Prudential Regulations forCorporate banking updated on 31st January 2009, under following heads:

REGULATION G-1

Corporate governance / board of directors and management

Responsibilities of the board of directors:

The Board shall approve and monitor the objectives, strategiesand overall business plans of the institution and shall overseethat the affairs of the institution are carried out prudentlywithin the framework of existing laws & regulations and highbusiness ethics.

REGULATION G-3

Contributions and donations for charitable, social, educational andpublic welfare purposes

Banks / DFIs shall strictly observe the following rules in the matter ofmaking any donation / contribution for charitable, social, educationalor public welfare purposes:

The total donations/contributions made by the bank / DFIduring the year shall not exceed such amount as approved bytheir Board of Directors. It is expected that banks / DFIs


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making these donations / contributions would have alreadymet provisioning and capital adequacy requirements.

The banks / DFIs shall develop policy / guidelines dulyapproved by the Board of Directors for making donations/contributions.

All donations or contributions to be made during the year mustbe specifically approved by the Board of Directors on pre orpost facto basis as convenient.

Banks / DFIs are further directed to expressly disclose in theirannual audited financialstatements the total donation /contribution made during the year along with names ofdonees, to whom total donations/ contributions during the yearwere made in excess of Rs. 100,000/. In the case of donationswhere any director or his family members have interest in thedonee, the names of such directors, their interest in the doneeand the names and addresses of all donees, shall also begiven.

3. Handbook of Corporate Governance under SBP

Chapter 2: International Developments

The Responsibilities of the BoardThe corporate governance frame work should ensure the strategicguidance of the company, the effective monitoring of the managementby board, & the board’s accountability to the shareholders and thecompany,

the board should ensure compliance with applicable law andtake into account the interests of stakeholders.

2.6 Code of Business Ethics

Observance of highest level of business and professional ethics(Kings Committee on Corporate Governance, 1994)

2.8 Stakeholders

The corporate governance framework should recognize the rightsof stakeholders as established by law and encourage activecooperation between corporations and stakeholders in creatingwealth, jobs and the sustainability of financially sound enterprises.

The corporate governance framework should assure that therights of stakeholders that are protected by law are respected.


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Where stakeholder interests are protected by law,stakeholders should have the opportunity to obtain effectiveredress for violation of their rights.

The corporate governance framework should permitperformance enhancing mechanism for stakeholderparticipation

Where stakeholders participate in the corporate governanceprocess, they should have access to relevant information.

(OECD Principles of Corporate Governance -1999)

4. Labor Laws in Pakistan under Constitution and Factories Act 1934

The Constitution of Pakistan contains a range of provisions withregards to labour rights found in Part II: Fundamental Rights andPrinciples of Policy.

Article 11 of the Constitution prohibits all forms of slavery, forcedlabour and child labour;

Article 37(e) makes provision for securing just and humane conditionsof work, ensuring that children and women are not employed invocations unsuited to their age or sex, and for maternity benefits forwomen in employment.

Working Time and Rest Time

Working Hours

Under the Factories Act, 1934 no adult employee, defined as a workerwho has completed his or her 18th year of age, can be required orpermitted to work in any establishment in excess of nine hours a dayand 48 hours a week. Similarly, no young person, under the age of 18,can be required or permitted to work in excess of seven hours a dayand 42 hours a week. The Factories Act, which governs the conditionsof work of industrial labour, applies to factories, employing ten ormore workers. The Provincial Governments are further empoweredto extend the provisions of the Act, to even five workers.

Where the factory is a seasonal one, an adult worker shall work nomore than fifty hours in any week and no more than ten hours in anyday. A seasonal factory, per section 4 of the Factories Act is that whichis exclusively engaged in one or more of the following manufacturingprocesses, namely, cotton ginning, cotton or cotton jute pressing, themanufacture of coffee, indigo, rubber, sugar or tea. However, if such


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adult worker in a factory is engaged in work, which for technicalreasons must be continuous throughout the day, the adult workermay work no more than fifty-six hours in any week.

Section 8 of the West Pakistan Shops and Establishments Ordinance,1969 likewise, restricts weekly work hours at 48 hours. The Shops andEstablishments Ordinance regulates persons employed in shops andcommercial establishments, who are neither covered by the FactoriesAct nor by the Mines Act. The Ordinance is exclusive in the whole ofPakistan except for the Federally Administered Tribal Areas. Section22-B of the Mines Act, 1923 also fixes weekly hours of work for workersat 48 hours or 8 hours each day, with the limitation of spread-over 12hours and interval for rest for one hour every six hours. Section 22-Cfurther limits the spread-over to 8 hours for work done below groundlevel.

In factories, the periods and hours of work for all classes of workers ineach shift must be notified and posted in a prominent place in theprincipal language in the industrial or commercial establishment. Thelaw further provides that no worker shall be required to workcontinuously for more than six hours, unless he or she has had aninterval for rest or meals of at least one hour.

During Ramadan (fasting month), special reduced working hours areobserved in manufacturing, commercial and service organizations.

Minimum Age and Protection of Young Workers

Article 11(3) of Pakistan’s Constitution expressly prohibits theemployment of children below the age of fourteen years in any factory,mine or other hazardous employment. In addition, the Constitutionmakes it a Principle of Policy of the State of Pakistan to protect thechild, to remove illiteracy and provide free and compulsory educationwithin the minimum possible period and to make provision for securingjust and human conditions of work, ensuring that children and womenare not employed in vocations unsuited to their age or sex. The Actfurther restricts the employment of a child in a factory to five hours ina day. The hours of work of a child should thus be arranged in such away that they are not spread over more than seven-and-a-half hoursin any day. In addition, no child or adolescent is allowed to work in afactory between 7 p.m. and 6 a.m. The Provincial Government may,by notification in the Official Gazette in respect of any class or classesof factories and for the whole year or any part of it, vary these limitsto any span of thirteen hours between 5 a.m. and 7.30 p.m. Moreover,


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no child is permitted to work in any factory on any day on in which heor she has already been working in another factory.

Factories are further required to display and correctly maintain inevery factory a Notice of Periods for Work for Children, indicatingclearly the periods within which children may be required to work.The manager of every factory in which children are employed iscompelled to maintain a Register of Child Workers identifying thename and age of each child worker in the factory, the nature of his orher work, the group, if any, in which he or she is included, where his orher group works on shifts, the relay to which he or she is allotted, thenumber of his or her certificate of fitness granted under section 52,and any such other particulars as may be prescribed.

The provisions of the Factories Act, 1934 are cited in addition to, andnot in derogation of the provisions of the Employment of ChildrenRules, 1995. The Employment of Children Rules extends to the wholeof Pakistan with the exception of the State of Azad Jammu and Kashmirand delimits finite labour conditions afforded for the protection ofminors. Rule 6 insists on cleanliness in the place of work. No rubbish,filth or debris shall be allowed to accumulate or to remain in any partof the establishment and proper arrangements shall be made formaintaining in a reasonable clean and drained condition for theworkers of the establishment. Rule 7 further calls for proper ventilationin work places where injurious, poisonous or asphyxiating gases, dustor other impurities are evolved from any process carried on, in suchestablishment. As long as workers are present in an establishment,the latrines, passages, stairs, hoists, ground and all other parts of theestablishment in so far as the entrance of the said places is not closed,must be lighted in such manner that safety is fully secured. In addition,in every establishment an arrangement of drinking water for childand adolescent workers is to be provided free of charge. All shafts,couplings, collars, clutches, tooth end wheels, pulleys, driving straps,chains projecting set screws, keys, nuts and belts on revolving parts,employed in the establishment, shall be securely fenced if in motionand within reach of a child worker and further may not be operated bya child worker.

Equality

Article 38 of the Constitution imparts the State's obligations aimed atachieving equality in the form of securing the well-being of the people,irrespective of sex, caste, creed or race, by raising their standard ofliving, by preventing the concentration of wealth and means of


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production and distribution in the hands of a few to the detriment ofgeneral interest and by ensuring equitable adjustment of rightsbetween employers and employees, and landlords and tenants. Allcitizens are bestowed, within the available resources of the country,facilities for work and adequate livelihood with reasonable rest and leisureand the basic necessities of life, such as food, clothing, housing, educationand medical relief, for all such citizens, irrespective again of their sex,caste, creed or race, as are permanently or temporarily unable toearn their livelihood on account of infirmity, sickness or unemployment.

5. Pakistan Agricultural and dairy farming Association

Aims and objectives:

The aim of the association, which is non-political, is to unite membersin their common approach and for this purpose the objects of theassociation are:

To urge, support or suppose legislative or other measures andprocure change of law or practice affecting the interest ofagricultural and dairy farmers or adversely affecting thecommon interest of the community.

To aid in subscribing money to any charitable or benevolentpurposes or for the promotion generally of any matters ofcharity or other useful objects with a view to establishharmony and business relationship amongst variouscommunities in general and Pakistan community in particular.

To provide for help and encourage study and training intechnical and commercial matters by granting scholarships,awarding prize-stipends or giving other monetary aids toinstitutions through such other ways and, means as may bedetermined from time to time.


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The purpose of the study is to contextualize Corporate Social Responsibility in Pakistan. Corporate Social Responsibility is an emerging concept in Pakistan. The potential for CSR in a developing country automatically calls for a greater role of large businesses in addressing the issues faced by the societies they operate in. The trend for CSR related activities is increasing, both in terms of more companies developing CSR policies and investing in increasing percentages of gross sales to community service and sustainable development.

Sustainable Development Policy Institute, founded in August 1992 on the recommendation of the Pakistan National Conservation Strategy (NCS), also called Pakistan’s Agenda 21 placed Pakistan’s socio-economic development within the context of a national environmental plan. This highly acclaimed document, approved by the Federal Cabinet in March 1992, outlined the need for an independent non-profit organization to serve as a source of expertise for policy analysis and development, policy intervention, and policy and program advisory services. SDPI is registered under the Societies Registration Act, XXI of 1860.

Prakruthi, Bangalore-based non-profit organisation established in 1991, envisages a society where the economic and social divide created by a non-egalitarian system is minimised. Prakruthi works with the poor and the marginalised in various sectors of Indian economy- the plantation workers, small and marginal farmers, women, youth and children addressing issues in garments, tea, coffee and sugarcane sectors with special focus in social and environmental sustainability.

ISBN: 978-81-908155-6-7

Corporate ConscienceCSR in Pakistan - A Study

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CSR in Pakistan