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September 2005
EVALUATION OF THE STATE OF
CORPORATE SOCIAL RESPONSIBILITY
IN PAKISTAN AND A STRATEGY FOR IMPLEMENTATION
FOR
SECURITIES & EXCHANGE COMMISSION OF PAKISTAN
PAK/98/011 PARADIGM-UNDP
By
Ambreen Waee!
"""#rb$%#'r(
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EVALUATION OF THE STATE OF CORPORATE SOCIAL RESPONSIBILITY IN PAKISTAN AND A STRATEGY FOR IMPLEMENTATION
September 200)
A MEMBER OF THE ASIA*PACIFIC CSR CENTRE GROUP
AND THE SOUTH ASIA ALLIANCE FOR RESPONSIBLE BUSINESS
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CONTENTS
+#,PREFACE#######################################################################################################-
.#,INTRODUCTION#############################################################################################/2*1*'(y M%p +SR "! P%,"st%!*******************************************************************************************************************************************9
0#,WHAT IS CORPORATE SOCIAL RESPONSIBILITY1###############################+,.*1* +SR %s &e) t(r$( "stry********************************************************************************************************************* *11.*. "t "s +$rre!t#y De3"!e) %!) U!)erst)*****************************************************************************************************************14
2#,HOW IMPORTANT IS CSR IN TODAY3S WORLD1 ##################################+-4*1*G#b%# Pr"!"p#es6 7%# App#"%t"!*****************************************************************************************************************************14*2*I!s$r%!e %%"!st B%) Nes **************************************************************************************************************************************18
4*.*R"s,s 3 N!-+mp#"%!e ****************************************************************************************************************************************** *194*4*F%trs Dr"&"! +SR Grt(****************************************************************************************************************************************204*5*'r#) re!)s "! +SR Dem%!) : S$pp#y*********************************************************************************************************************214**+SR %!) 'O Re;$"reme!ts**************************************************************************************************************************************214*
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+,#.#BUSINESS ETHICS PRINCIPLES############################################################2.
+,#0#ENVIRONMENTAL COMPLIANCE##########################################################20
+,#2#SOCIAL COMPLIANCE############################################################################2)
+,#)#DISCLOSURE AND REPORTING############################################################24
+,#-#PRODUCT INTEGRITY#############################################################################),
+,#/#CORPORATE GIVING OR COMMUNITY INVESTMENT########################)+
+,#5#STAKEHOLDER INVOLVEMENT############################################################).
A#########################################################################################################################)2
FIG 6+,#5#.7########################################################################################################)2
+,#4#SUPPLY CHAIN SECURITY#####################################################################)2
+,#+,#FINANCIAL PERFORMANCE################################################################))
+,#++#LEVELS OF COMPLIANCE OF CSR PRINCIPLES##############################)/F"10*11*2************************************************************************************************************************************************************************58
++#,BRIDGING THE GAP#################################################################################)5
+.#,CONCLUTION############################################################################################-,
+0#,RECOMMENDATION FOR CSR STRATEGY###########################################-+
+2#,REFERENCES############################################################################################-/
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ACKNOWLEDGEMENTS
I $#) #",e t rer) my s"!ere %ppre"%t"! t t(e Se$r"t"es %!) ?(%!e +mm"ss"! 3r
t(e"r mm"tme!t t +SR %!) t(e"r pr%t"&e r#e "! #e%)"! t(e %y t%r)s % $#t$re 3
+rpr%te S"%# Resp!s"b"#"ty "! P%,"st%!* I!"t"%t"! t("s rese%r( "s % rt(y 3"rst step t%r)
t("s bCet"&e* It $#) !t (%&e bee! pss"b#e "t($t Dr* %r"; %ss%!s pers!%# "!terest %!)
mm"tme!t* I $#) %#s #",e t %,!#e)e t(e s$pprt6 3%"#"t%t"! %!) 3ee)b%, pr&")e)
by Ms* E%er"% At(er*
RBIs p%rt!ers 3 t(e As"%-P%"3" +SR +e!tres Gr$p6 t(e G#b%# Resp!s"b#e 7e%)ers
I!"t"%t"&e %t t(e $rpe%! M%!%eme!t De&e#pme!t F$!)%t"! %!) G#b%# +mp%t 7e%r!"!
Fr$m )eser&e my r%t"t$)e 3r t(e"r %)&"e t(r$( e?te!s"&e )"s$ss"!s* (e"r "!p$ts %))e)
% me%!"!3$# perspet"&e t t(e st$)y*
("s t%s, $#) (%&e bee! "mpss"b#e "t($t my te%m %t RBI E%m"# A!%r 3r r)"!%t"!6
M%ry$m %")" 3r )%t% ##%t"!6 S%%) b"! %r";6 M(s"! B%s("r6 A(me) %ss%! %!)
M$(%mm%) $ss%"!6 3r t(e"r )e)"%te) e33rts t(r$($t t(e st$)y* (%!,s t %## 3 t(em6
%!) t Dr* F%"> S(%( 3r re&"e"! t(e )%t% %!%#ys"s %!) 3%"#"t%t"! t(e st%,e(#)er r,s(p
)esp"te ("s b$sy s(e)$#e*
Ambreen Waheed
7%(re6 September 2005
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A !" #$
% &he 'r()a&e $e*&!r+ *()( $!*(e&,+ ab!#r #n(!n$+ NGO$+ #n()er$(&(e$+ "!#nda&(!n$+ and (nd()(d#a$ %
m#$& *!me &!-e&her (n an a(an*e "!r 'r!-re$$.
T!-e&her+
/e *an and m#$& m!)e "r!m )a#e &! )a#e$+ "r!m $hareh!der$ &! $&a0eh!der$+
and "r!m baan*e $hee&$ &! baan*ed de)e!'men&.
T!-e&her+
/e *an and m#$& "a*e &he dan-er$ ahead and br(n- $!#&(!n$ /(&h(n rea*h.
Kofi Annan
UN Secretary-General
+#, PREFACE
+rpr%te S"%# Resp!s"b"#"ty +SR "s ! m&"! t%r)s Resp!s"b#e +mpet"t"&e!ess6 %
preept t(%t "mp#"es t(%t t(ere "s % r#e 3r b$s"!ess "! "!3#$e!"! p#"y 3r b$s"!ess
s$ess* (e #b%# +SR m&eme!t (%s p%sse) t(r$( &%r"e) p(%ses "! t"me %!) "! !ept
"t( re%r) t t(e "mp#eme!t%t"! 3 +SR* I!"t"%##y r$!)e) "! rpr%te p("#%!t(rpy6 "t
m&e) ! t s#")%r"ty m&eme!ts r e!&"r!me!t%# %t"&"sm "t( "t">e! setr m&eme!ts
t%,"! ! b$s"!ess* At t(e s%me t"me &er!me!ts %!) $rts (%&e #%") )! mre str"!e!t
p%r%meters 3 rpr%te be(%&"$r6 mpe##"! b$s"!ess
t%r)s #e%# mp#"%!e6 )%m%e !tr# 3r "&"#
s"ety %!) !s$mer re%t"!s6 %!) t(e! ! te33""e!y %"!s %!) )"33ere!t"%t"! 3r mpet"t"&e
%)&%!t%e*
O&er t(e #%st te! ye%rs t(ere (%s bee! % s("3t 3rm
%!t%!"st" %t"&"sm t ps"t"&e e!%eme!t betee!
mp%!"es %!) t(e"r st%,e(#)ers* I! $rpe b$s"!ess
r%!">%t"!s %!) t(e"r st%,e(#)ers %re t%,"!
##%br%t"&e %t"!s 3r )eb%t"! %!) re%t"! +SR
p#""es %!) str%te"es t %("e&e % mpet"t"&e
%)&%!t%e %t % !%t"!%# st%e %!) t m&e t%r)s t(e!e?t %&e 3 resp!s"b#e mpet"t"&e!ess ("( "s
"!!&%t"!6 s$st%"!%b"#"ty %!) 3$t$re 3$s*
I! t(e As"% P%"3" mst 3 t(e $!tr"es %re r")"! t(e s-%##e) se!) %&e 3 +SR6 ("( "s
e33""e!y-e!tre) %!) m%r,et 3$se)* (ey (%&e re%(e) !ept$%# #%r"ty %!) %re #,"!
%t t(e "mpe)"me!ts t +SR "mp#eme!t%t"!* I! P%,"st%!6 (e&er6 e (%&e C$st st%rte) $r
C$r!ey %!) %re str$#"! "t( t(e 3"rst %&e "*e* 3 p("#%!t(rpy %!) #e%# mp#"%!e ("( "s
s"ety %!) &er!me!t 3$se)*
CSR is the integration by
enterprises on a voluntary basis of
the social and ecological concerns
in their business transactions and
their relations ith the involved
parties!
"CSR is a di#ension that should be
part of the strategic orientation at
the basis of enterprise and should
therefore interact ith all spheres of
co#pany #anage#ent$ ith the
financial aspects% ith production%
ith #ar&eting% ith 'u#an
Resource and #ore generally ith
corporate strategies and policies"
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I! P%,"st%!s "mme)"%te !e"(b$r()6 e see t(%t )$r"! t(e #%st )e%)e r s I!)"% %!) Sr"
7%!,% (%&e %"!e) mpet"t"&e %)&%!t%e )$e t t(e"r pr-%t"&e!ess %!) 3$t$re m%r,et-
e!tre) p#""es* P%,"st%!s e%r#y prm"se "! t(e %,e 3 t(e ")e#y re!">e) S"%#,t
P%rt!ers("p %%"!st +("#) 7%b$r (%s #st mme!t$m* N6 %!t(er pprt$!"ty "s m"! t("s
%y "! t(e emer"! m%!$3%t$r"! ($bs re%te) by t(e &%r"$s $pm"! e!terpr"se >!es
%!) s-%##e) Hte?t"#e "t"es6 ("( %! m%r,et t(emse#&es by %)pt"! % )em!str%b#e +SR
str%tey* P%,"st%! %! e"t(er #et t("s pprt$!"ty p%ss "t by r s"! "!t %t"! "! %se % r"s"s
#",e t(e S"%#,t ("#) #%b$r r"s"s ("t6 r P%,"st%! $#) %t t embe) % !%t"!%# +SR str%tey
"!t )e"s"!-m%,"! %!) b$s"!ess pr%t"e t(r$( e33et"&e p#"y6 "!e!t"&es %!) % system 3
re)e!t"%#"! t(%t %! %ss$re &erse%s b$yers 3 t(e $!try )"st"!t ps"t"! %s % s"%##y
resp!s"b#e s$pp#"er $!try*
%s t(e P%,"st%!" e!terpr"se %rr"&e) %t % st%e (ere "t %! #e%r! 3rm e?per"e!e %r$!) "t %!)
t%,e % C$mp 3r%r) t %t( t(e t("r) %&e 3 )"33ere!t"%t"! %!) mpet"t"&e!ess b$"#t !
resp!s"b#e b$s"!ess pr%t"e Is t(e P%,"st%!" e!terpr"se m%t$re e!$( t %ssess "ts !
presses %%"!st #b%# +SR be!(m%r,s %!) t(e! t$r! s(rtm"!s "!t )"33ere!t"%trs t
%pt$re 3$t$re m%r,ets6 ("( %re s$re#y steere) by resp!s"b#e %!) et("%# b$s"!ess
pr%t"es S%)#y6 b%rr"! % 3e !t%b#e e?ept"!s6 t(e %!ser t t(ese ;$est"!s "s "! t(e
!e%t"&e6 %s "!)"%te) by t(e 3"!)"!s 3 t("s rese%r(*
%,"! P%,"st%! "!t t(e $rre!t %&e 3 +SR me%!s b$"#)"! resp!s"b#e mpet"t"&e!ess6 %!)
t ) s re;$"re % ##%br%t"&e e33rt t(%t s$pprts % $#t$re 3 mp#"%!e %!) %! e!&"r!me!t
t(%t e!%b#es resp!s"b#e t("!,"! %!) pr%t"es* ("s "s !#y pss"b#e by $!)ersr"! +SR %s
% pr"r"ty 3 !%t"!%# p#"y6 3##e) by t(e )e&e#pme!t %!) "mp#eme!t%t"! 3 % !%t"!%# +SR
str%tey s$pprte) by %## "mprt%!t st%,e(#)ers* Frm t("s 3"rst step +SR pr%t"es !ee) t
e&e t(r$( %! "!st"t$t"! 3r +SR )"%#$e t(%t resp!)s t e&er (%!"! m%r,et
)em%!)s* A! e?%mp#e 3 s$( %! "!st"t$t"!%# %rr%!eme!t $#) be t(e 3rm%#">%t"! 3 %
+SR p#"y %!) #e%r!"! r$p mpr"s"! "!)"&")$%#s represe!t"! re#e&%!t st%,e(#)ers*
Be"!!"! %s % sem"-3rm%# r,"! %#"t"!6 pss"b#y $!)er t(e %e"s 3 S+P "tse#3 r %!
%%)em" r +SR rese%r( "!st"t$t"!6 t("s r$p %! e&e "!t %! "!)epe!)e!t r%!">%t"! "3
t(e s"t$%t"! )em%!)s*
.#, INTRODUCTIONDes +SR (%&e % &%#$e t rpr%te %!) !%t"!%# mpet"t"&e!ess %s e## %s t s"ety %t
#%re Is t(ere %t %##6 % r#e 3r b$s"!ess "! r,"! "t( p#"y m%,ers t re%te %! e!%b#"!
e!&"r!me!t 3r resp!s"b#e %!) et("%# b$s"!ess t 3#$r"s( Des b$s"!ess (%&e %
resp!s"b"#"ty 3r r%"s"! %%re!ess6 b$"#)"! %p%"t"es6 %!) %33et"! (%!e "! %ys t(%t
"mp%t !%t"!%# mpet"t"&e!ess "! % #b%#">"! r#) Des P%,"st%!" b$s"!ess (%&e %!yt("!
t !tr"b$te me%!"!3$##y t t(e #b%# +SR )eb%te %!) ( "t "!3#$e!es "t
+SR "s ! #!er % !e p(e!me!! 3r b$s"!ess6 b$t t(ese %re sme 3 t(e ;$est"!s t(%t
!3r!t p#"y m%,ers %s t(ey )eterm"!e t(e !ee) 3r %!) t(e )"ret"! 3 % !%t"!%# +SR
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p#"y* G&er!me!ts %re re&"e"! re$#%try 3r%mer,s t "!ter%te +SR "!t r$t"!e
rpr%te )"s#s$re re"mes* '( $#) (%&e s%") te! ye%rs % t(%t % r%!)m )eb%te "! t(e
"t">e! setr $#) !$)e t(e r#) "!t % !e p%r%)"m 3 rpr%te be(%&"$r
As e ,! "t t)%y6 +SR (%s "ts rts "! !s$mer !s"$s!ess %!) s#")%r"ty m&eme!ts
"! )e&e#pe) !s$mer s"et"es t(%t s% e#eme!ts 3 s"%# %!) e!&"r!me!t%# e?p#"t%t"! "!
t(e be(%&"$r 3 m%Cr #b%# e!terpr"ses6 (et(er t(ey ere m"!"! r !%t$r%# res$re
e?p#r%t"! mp%!"es r ret%"#ers s$r"! !s$mer )s %!) pr)$e 3rm (e%p #%b$r
m%r,ets "! t(e )e&e#p"! r#)* Frm "!"t"%# 3"!er p"!t"! %!) !3r!t%t"!"st str%te"es
spe%r(e%)e) by NGOs %!) "&"# r"(ts %t"&"sts t t(e b#ssm"! 3 % (st 3 s$st%"!%b"#"ty
p%rt!ers("ps betee! t(ese s%me NGOs %!) t(e"r erst("#e rpr%te 3es6 +SR (%s )e3"!"te#y
me % #! %y*
Jet6 e&e! %s t(e s$st%"!%b"#"ty mt"&e )r"&es per%t"!6 #"!er"! !er!s %b$t rpr%te
"!te!t"!s %!) NGO %e!)%s !t"!$e t m$))y t(e )"s$ss"!6 espe"%##y "! t(e %se 3 br%!)
s$pp#y (%"!s "! t(e )e&e#p"! r#) t %&") #%b$r pr%t"e !rms r t(e e!&"r!me!t%#
"mp%t 3 bs#ete p#%!ts re#%t"! t $!tr"es "t( #ess str"!e!t s%3ety r e!&"r!me!t%#
re$#%t"!s* ($s t(e +SR )"s$ss"! ! "mp%ts s$pp#y (%"!s 3 m$#t"!%t"!%#s MN+s
e&e! "! t(e"r remtest re%(es* As % res$#t6 "t( %! eye ! t(e"r st%,e(#)ers t s%3e$%r)
rep$te %!) 3te! %ttr%te) by t(e mpet"t"&e %)&%!t%e "t br"!s6 MN+s %re "! t(e 3re3r!t 3
)em%!)"! Hresp!s"b#e be(%&"$r 3rm t(e"r s$pp#"ers r s$b-!tr%trs* ("s s")e 3 +SR
(%s 3 #%te bee! stre!t(e!e) by "!"t"%t"&es 3rm "!3#$e!t"%# r%!">%t"!s #",e t(e 'r#) r%)e
Or%!">%t"! 'O*
($s6 m$#t"p#e &%r"%b#es #",e st%,e(#)er %%re!ess6 &er!me!t "!"t"%t"&es6 #b%#">%t"! %!)
#%#">%t"! p%tter!s6 %!) t(e ("(#y %t"#e b$s"!ess se!%r"6 %## (%&e (%) % r#e t p#%y "!
)eterm"!"! t(e e!tr%#"ty 3 +SR "! t)%ys b$s"!ess e!&"r!me!t* B$t6 !tr%ry t
e?pet%t"!6 +SR "s !t % )e3"!e) )e r % t#,"t t be emp#ye) "! t(e m%!!er 3 %!
per%t"! m%!$%#* R%t(er6 +SR "s 3te! % &"s"! b%se) ! p%rt"$#%r sets 3 &%#$es t(%t
b$s"!ess #e%)ers 3te! %sp"re t6 %!) %s s$( "s mre 3 %! e&er-(%!"! p("#sp(y6 ;$"te
pe! t "!terpret%t"! %!) re-t("!,"! 3 b$s"!ess str%tey b%se) ! )e"s"!s re#%te) t et("%#
&%#$es6 #e%# mp#"%!e6 respet 3r st%,e(#)ers6 %!) s$pprt"! mm$!"t"es r !$rt$r"!
e!&"r!me!t*
I!re%s"!#y6 +SR "s be"! "!terprete) %s t(e e?pet%t"! s"ety (%s 3 b$s"!ess* +SR "s t(e
#e%)ers("p &"s"! t(%t "s mre t(%! %s"!%# est$res6 m%r,et"! r"e!te) "!"t"%t"&es6
e!(%!"! p$b#" re#%t"!s r b$s"!ess %33"#"%t"!s et* I! !tr%st6 "ts % mpre(e!s"&e set 3
p#""es %!) prr%ms e!r"(e) "t( t(e $re 3r )e&e#p"! % better s"ety*
("s reprt prese!ts t(e pre&%"#"! st%te 3 rpr%te s"%# resp!s"b"#"ty "! P%,"st%!* (e
reprt (%s bee! mp"#e) ! t(e b%s"s 3 "!3rm%t"! s(%re) )"ret#y by mp%!"es %s e## %s
by e?te!s"&e #"ter%t$re re&"e 3rm &%r"ety 3 p$b#" s$res s$( %s !esp%pers6 b,s6 !-
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#"!e ser&"es6 reprts 3rm &%r"$s NGOs6 %%)em" st$)"es %!) "!ter!%t"!%# !3ere!es %!)
)"%#$es betee! &er!me!ts6 "!)$stry6 %%)em"s %!) "&"# s"ety " Starting ith the brief
bac& ground about ho the CSR roots ere planted% the report e(plains the groth and
e(pansion apart fro# the need to conduct this type of research in )a&istan" *he driving factors
have been discussed along ith the influence in the countries li&e )a&istan" *he research
#ethodology e(plains the develop#ent of the +uestionnaire catering the set para#eters and
the data collection strategy" A detailed analysis has been established over the data collected
fro# variegated business sectors in )a&istan including the #ultinationals as ell as the s#all
and #ediu# enterprise" At the end e have proposed the strategy to fill up the gaps in the
CSR i#ple#entation and the steps essential for )a&istani businesses to co#pete their
international co#petitors by increasing their repute and #aintaining their +uality"
1.2. Wh, Ma' CSR (n Pa0($&an3+SR "s ! % m%"!stre%m b$s"!ess m%!%eme!t "ss$e t(e r#) &er* A r"! b)y 3
rese%r( "s e!r"("! t(e b$s"!ess %se 3r % s"%##y %!) e!&"r!me!t%##y resp!s"&e rpr%te
setr* ("s %s !t %#%ys s* (e !"!et"es %re be#"e&e) t be % %ters(e) "! p$s("! +SR
t%r)s t(e tp 3 t(e %e!)% 3##"! % r$!)se## 3 !s$mer !er! %b$t st%!)%r)s 3
rpr%te be(%&"$r %#! pr)$t s$pp#y (%"!s r"ss-rss"! t(e #be* Frm pr)$t
"!ter"ty "ss$es !3r!t"! br%!)s #",e N",e %!) M%rt(% Ste%rt6 t press "!ter"ty "ss$es
("(#"(te) )$r"! t(e S(e## %!) B%r"!s ep"s)es6 t(e et("%# )"me!s"!s 3 %! e!terpr"ses
!)$t be%me % 3$s 3 )eb%te !t !#y "t("! "t">e! setr r%!">%t"!s (ere "t (%)
r""!%te)6 b$t %m! tp )e"s"!-m%,ers "! G&er!me!t*
7bby"sts %!) #e"s#%trs6 espe"%##y "! S%!)"!%&"% %!) 'ester! $rpe ere ;$", t e(
"&"# s"etys )em%!) 3r rpr%te %$!t%b"#"ty %!) )"s#s$re* !r! )re "! t(e USA "!t
t(e +SR )eb%te %s e##6 3##e) by t$(er re$#%t"!s ! rpr%te )"s#s$re* Ot(er t(%!
3r % (%!)3$# 3 rpr%t"!s6 t("s !e?$s 3 !s$mer )em%!) %!) #e"s#%t"! (%s me%!t %
p%r%)"m s("3t* (e !e m"##e!!"$m (%s see! mp%!"es "! &er-)r"&e6 r%##y"! t prese!t t(e"r
($m%!e &%#$es "! s(%rp re#"e3 t t(e"r tr%)"t"!%# mpet"t"&e ;$%#"t"es* (e Hst%,e(#)er (%)
3"!%##y %rr"&e) t s(%re t(e b%r)rm %e!)% "t( t(e Hst,-(#)er*
("s b$re!"! )em%!) 3r s"%##y resp!s"b#e b$s"!ess be(%&"$r (%s bee! m%t(e) step-
3r-step by % !$mber 3 re)"b#e s$pp#y s")e e33rts t(%t (e#p t(e !s$mer r "!&estrbCet"&e#y )"33ere!t"%te betee! H) rpr%te "t">e!s %!) e&ery!e e#se* '"t( be"!!"!s
"! )"&erse !te?ts6 r%"! 3rm "!ter-3%"t( r$ps t #%b$r $!"!s t %t() r%!">%t"!s6 %
set 3 #b%##y %,!#e)e) y%r)st",s %re ! %&%"#%b#e 3r est%b#"s("! re)e!t"%#s 3 %!y
e!terpr"se t(%t "s(es t be C$)e) 3r "ts "mp%t ! s"ety* (ese6 "!#$)"! t(e ISO 14000
st%!)%r) 3r e!&"r!me!t%# m%!%eme!t systems6 t(e SA 8000 s"%# %$!t%b"#"ty st%!)%r)6
%!) mre ree!t#y6 t(e G#b%# Reprt"! I!"t"%t"&e $")e#"!es 3r s$st%"!%b"#"ty reprt"!6 %##
emere) "! resp!se t t(e !ee) 3r % #b%# set 3 "mp#eme!t-%b#e +SR st%!)%r)s* (e UN
G#b%# +mp%t %!) t(e E(%!!esb$r 'r#) S$mm"t ! S$st%"!%b#e De&e#pme!t bt(
&%#")%te t("s tre!) 3r +SR* +#ser t (me Se$r"t"es %!) ?(%!e +mm"ss"! 3 P%,"st%!
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September 200)
S+P (%s m%)e % 3"rst !tr"b$t"! "t( "ts +)e 3 +rpr%te G&er!%!e6 %!) t(e 2002
r%)e P#"y %rt"$#%te) 3r t(e 3"rst t"me t(e &er!me!ts "!te!t t m%"!stre%m "!ter!%t"!%#
"!)$stry be!(m%r,s t(r$( %pprpr"%te "!st"t$t"!%# s$pprt*
P%,"st%! "tse#3 (%s (%) t #e%r! ;$",#y "! %)%pt"! t t(e +SR p%r%)"m* (e $!trys %rpet
"!)$stry s$33ere) %#mst % b"##"! )##%rs 3 )%m%e t(r$( t(e 1990s %s % res$#t 3 t(e I;b%#
M%s"( %se6 ("#e t(e sprt"! )s "!)$stry steppe) %%y 3rm t(e br"!, !#y %3ter t(e
S"%#,t P%rt!ers("p #e) by "!)$stry %ss"%t"!s br$(t tet(er t(e &er!me!t6 I7O %!)
"t">e! setr r%!">%t"!s t mb%t ("#) #%b$r* S"!e t(e! t(e !%t"!s te?t"#e %!) e)"b#e
pr)$ts e?prt "!)$str"es (%&e !t"!$e) t 3%e )em%!)s by "!ter!%t"!%# b$yers 3r +SR
re)e!t"%#s
'"t("! t("s e!&"r!me!t6 "t "s $!%&")%b#e 3r P%,"st%! t %t"&e#y !s")er e&")e!e-b%se)
str%tey )e&e#pme!t %s % 3"rst step t%r)s re%t"! % e##-)"rete) %!) me%!"!3$# +SR
$#t$re "! P%,"st%!* 'e (%&e !$mer$s e?%mp#es 3 rpr%te p("#%!t(rpy6 ("( %re
re$#%r#y prese!te) %s +SR* e?p#re ( )eep#y rpr%te &%#$es %re embe))e) "!
r%!">%t"!s %!) t e?%m"!e t(e r#e &%#$es %re p#%y"! $n Pa$89an38 :'n9e;96 t("s st$)y
emp(%s">es
- ( mp%!"es )e3"!e
+rpr%te Resp!s"b"#"ty %!)
+rpr%te &%#$es
- t(e re#%t"!s("p 3 &%#$es t
b$s"!ess per3rm%!e
- t ")e!t"3y best pr%t"es 3r
m%!%"! rpr%te &%#$es*
0#, WHAT IS CORPORATE SOCIAL RESPONSIBILITY1
A##%! %mm!) 3 t(e 'r#) Res$res I!st"t$te s%ys6 HI )!t ,! 3 %!y )e&e#p"! $!try
&er!me!t t(%t %! )e#"&er ser&"es "! % m"##"! p#%es %t !e e&ery)%y* I3 e %!t t s#&e
sme 3 t(ese s"%# prb#ems6 !e 3 t(e best %ys e $#) ) "t "s t ("re t(e r"(t #b%#
mp%!"es*
AREAS OF FOCUS FOR THE STUDY
2. The Need "!r CSR (n Pa0($&an
1. CSR a''r!a*he$ be(n- 'ra*&($ed (n Pa0($&an
4. Fa*&!r$ dr()(n- CSR+ (0e re'#&a&(!n+ !,a&, e&*.5. Barr(er$ &! (m'emen&a&(!n !" CSR
6. WTO re7#(remen&$
8. A$$e$$men& !" '!&en&(a &hrea&$ 9 !''!rn(&(e$
:. P!(*, !r re-#a&!r, mea$#re$ &! $#''!r& CSR
;. O#&'#&$. S&ra&e-, "!r e""e*&()e (m'emen&a&(!n !" CSR
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September 200)
4.2. H!/ CSR Ha$ E)!)ed &hr!#-h H($&!r,
+rpr%t"!s $se !%t$r%# %!) ($m%! res$res 3rm t(e"r e!&"r!me!t t r$! t(e"r b$s"!ess
%!) e!er%te pr3"ts6 %!) t(ey %re resp!s"b#e 3r t(e )ep#et"! 3 t(ese res$res %!) t(e
!e%t"&e "mp%t %$se) by r$!!"! 3 t(e"r b$s"!ess t e!&"r!me!t %!) t(e mm$!"ty
%r$!) t(e"r b$s"!ess* (e +SR !ept e$t"! st%rte) "t( t(e !er!s re#%te) t t(e
)%m%e re%te) by b$s"!ess ! e!&"r!me!t %!) s"ety %t #%re by %y 3 %t"&"t"es #"!,e) t
t(e"r b$s"!ess per%t"!* B$s"!ess %re e?pete) t #e%! $p t(e mess t(ey (%&e e!er%te) t
t(e e!&"r!me!t6 U!t"# 1980s +SR %s !s")ere) s%me %s rpr%te p("#%!t(rpy* (e
$rre!t +SR !epts st%rte) 3rm$#%t"! "! e%r#y 80s* I! 1980s %!) 1990s e?%mp#es #",e
S(e## sp"#"! t(e e!&"r!me!t %!) &"#%t"! t(e ($m%! r"(ts "! N"er"%6 st%rte) % !e %&e 3
r"t""sm ("( tr"ere) % mp#ete )"33ere!t t("!,"! ! +SR %!) (e!e m%!y +SR
)e3"!"t"!s emere) )$r"! t("s per")*
O! t(e t(er (%!)6 mp%!"es #",e N",e %!) GAP I! ere ("t by t(e b%) rep$te 3 t(e"r
s$pp#"ers &"#%t"! #%b$r #%s %!) e?p#"t"! p&erty %!) prmt"! )"sr"m"!%t"!* '(e! t(e
%t"&"st r$ps %!) &er!me!ts 3e#t t(%t $rre!t #%s &er!"! e!&"r!me!t6 (e%#t(6 %!)
s%3ety %!) !s$mer prtet"! %re e%, t (%!)#e m$#t"!%t"!%#s6 t(e U!"te) N%t"!s t, t(e
"!"t"%# step by pr&")"! % )e 3 !)$t 3r s$( tr%!s-!%t"!%# mp%!"es* ("s step 3%"#e)
)$e t t(e #%, 3 s$pprt 3rm &er!me!ts %!) pps"t"! 3rm )"33ere!t r%!">%t"!s* As %
res$#t % $!t%ry "!"t"%t"&e6 'r#) B$s"!ess +$!"# 3r S$st%"!%b#e De&e#pme!t 'B+SD
%s 3rme) "! 1991* ("s "!"t"%t"&e %s %tt%,e) be%$se r"t"s s%") t(%t +SR %t"!s s($#)
be m%!)%try "!ste%) 3 $!t%ry* +r"t";$es %r$e) t(%t $!t%ry +SR %!!t (#) rpr%te
per%t"!s %$!t%b#e*
As % 3$rt(er )e&e#pme!t s"%# %$)"t"! %s "!tr)$e) by t("r) p%rty &er"3"ers t e&%#$%te t(e
mp#"%!es %!) t(e s"%# st%te 3 b$s"!esses* S"%# reprts emere) %s % res$#t* I! t(e #%te
80s Be! : EerryLs "e-re%m #e) "! $!t%ry s"%# %$)"t"!6 pe!"! $p t(e"r rer)s %!)
presses 3r e&%#$%t"! %!) "!spet"!* B$t be%$se "! t(ese e%r#y )%ys t(e press #%,e)
t(e r"$r r st%!)%r)s %%"!st ("( per3rm%!e $#) be me%s$re)6 "t )") !t re%te % m%Cr
3##"!* S"%# %!) e!&"r!me!t%# st%!)%r)s be%! t be )e&e#pe) t pe "t( t("s
s"t$%t"!* +ert"3"%t"! prr%mmes (%&e bee! emer"! s"!e %## t(r$( t(e 1990s* Se&er%#
ert"3"%t"!-e!tre) r$ps #",e S"%# A$!t%b"#"ty I!ter!%t"!%#6 Frest Ste%r)s("p +$!"#6
F%"rtr%)e 7%be##"! Or%!">%t"!s I!ter!%t"!%#6 %!) % (st 3 t(ers (%&e !t"!$e) t r, !)"33ere!t s"%# %spets 3 +SR* 7%te#y t(ey (%&e C"!e) (%!)s "! t(e 3rm 3 t(e I!ter!%t"!%#
S"%# %!) !&"r!me!t%# Are)"t%t"! %!) 7%be##"! ISA7 r$p "t( % &"e t &ersee
st%!)%r) ")e!t"3"%t"! %!) st%!)%r) "mp#eme!t%t"!*
e!e6 +SR (%s !t"!$e) t e&e r%p")#y &er t(e #%st t("rty ye%rs* &e! t($( "t "s st"##
3%&$re) by rpr%te #e%)ers6 t(e #) m)e# 3 rpr%te p("#%!t(rpy "s #,e) $p! mre %s
% se#3-%t$%#">%t"! est$re t(%! %s s"%##y resp!s"b#e %tt"t$)e* Fr e?%mp#e A!)re
+%r!e"e6 t(e stee# m%!%te ( b$"#t #"br%r"es6 $!"&ers"t"es %!) m$se$ms %s % p("#%!t(rp"st
p##$te) t!s "t( sm,e %!) )ebr"s %!) )e%#t (%rs(#y "t( r,ers %s %! "!)$str"%#"st e&e!
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CSR A%%r'a:e8
B$r'nmen9
Fa$r*9ra!e
H%t"! 3 t(e resp!s"b"#"ty by t(e b$s"!esses
4* De&e#pme!t 3 P#""es %!) ")e!t"3"%t"! 3
best pr%t"es
5* Imp#eme!t%t"! 3 t(e p#""es
* De&e#pme!t 3 se&er%# prr%ms t "mp#eme!t
+SR Per3rm%!e %!) +mp#"%!e &%#$%t"!
0#.
0#0 A Cr'n'='(@ '? CSR
CSR Dr$>er8 Year Cr$8$8 F':
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EVALUATION OF THE STATE OF CORPORATE SOCIAL RESPONSIBILITY IN PAKISTAN AND A STRATEGY FOR IMPLEMENTATION
September 200)
s %!)B$s"!ess
Dem%!) 3r p#""es 3
mp#"%!e
e!&"r!me!t%# %!) !%t
res$re #"m"ts
NGOs %!) e!&"r!me!
m"!"str"es 3rme)
Dem%!) 3r +mp#"%!
!&"r!me!t%# NGO
19
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EVALUATION OF THE STATE OF CORPORATE SOCIAL RESPONSIBILITY IN PAKISTAN AND A STRATEGY FOR IMPLEMENTATION
September 200)
4.4 H!/ (& ($ C#rren&, De"(ned and Under$&!!d
O&er t(e per") 3 t(e p%st t("rty ye%rs6 t(e term +SR (%s !t"!$e) t %)%pt t t(e (%!"!
s"t$%t"! "! b$s"!esses r#) &er* (e !ept !t"!$es t t(r$( "ts e$t"!%ry m%r(
%!) s )es "ts )e3"!"t"!* N !e )e3"!"t"! )esr"bes +SR6 b$t e%( 3 t(e 3##"! re3#ets %
&%#$e-)r"&e! e?pet%t"! t(%t % b$s"!ess e!er%tes "t("! "ts $stmers* A s%mp#"! "s "&e!
be#
CSR is the organi,ations social license to operate% and is i#portant to legiti#i,e business
activity% particularly in the global activity here businesses are accused of practicing soulless
capitalis#"!+rpr%t"!s !ee) t (%&e per3$# &"s"! %!) ("(est &%#$es t 3$rt(er t(%!
mp#"%!e "t( $rre!t re$#%t"!s %!) best pr%t"e*9
Corporate Social Responsibility is achieving co##ercial success in ays that honor ethical
values and respect people% co##unities% and the natural environ#ent!./"
CSR #eans addressing the legal% ethical% co##ercial and other e(pectations society has for
business% and #a&ing decisions that fairly balance the clai#s of all &ey sta&eholders!
CSR hen ell practiced is about sound business practices and good #anage#ent that
deliver value to businesses and their shareholders% as ell as to society at large" *his vision of
business hardly suggests that profits should ta&e a bac& seat to other considerations! ..
Globali,ation creates ris& as ell as opportunity and business leaders have considerable
responsibility to help #a&e it a constructive rather than a destructive force" Responsible
behaviour toard e#ployees% shareholders and co##unities is not a lu(ury for good econo#ic
ti#es but a core concern at all ti#es!.0"
*he &ey for corporations is that CSR activity is seen not as )R% not as philanthropy% but as
#ainstrea# to the business 1ustified not 1ust by altruis# but on sound business ground!" .2
Step(e! "mms )e3"!"t"! %b&e &ery #e%r#y sets +SR %p%rt 3rm p("#%!t(rpy ("( "s
"&"! b%, t t(e mm$!"ty "! sme se!se (et(er "t "s t(r$( 3$!)"!6 $!teer"! r %!y,"!) )!%t"! r pers!%# "!&eme!t %!) +SR "!&es mre "!ter!%##y - 3$sse) %t"&"t"es "!
terms 3 R p#"y6 t("%# B$s"!ess Pr%t"es6 e!&"r!me!t%# re$#%try mp#"%!e*
+rpr%te p("#%!t(rpy "s %! %t 3 "&"! %!) t("s b$s"!ess pr%t"e "!#$)es t(e "&"! 3 %s(
"3ts6 t(e est%b#"s(me!t 3 !!-pr3"t 3$!)%t"!s6 pr)$t )!%t"!s6 %!) emp#yee
$!teer"sm r I! %))"t"! t (%r"t%b#e "&"!6 mre rpr%t"!s %re bem"! %t"&e#y
"!&e) "! %rts6 e)$%t"!6 $#t$re6 (e%#t( %!) ($m%! ser&"es6 %!) "&" %!) mm$!"ty
$tre%(*
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EVALUATION OF THE STATE OF CORPORATE SOCIAL RESPONSIBILITY IN PAKISTAN AND A STRATEGY FOR IMPLEMENTATION
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A s"%##y resp!s"b#e mp%!y m%y "!#$)e p("#%!t(rpy %s % p%rt 3 "ts &er%## e33rts t be
st%,e(#)er-3$se)* e&er6 rpr%te s"%# resp!s"b"#"ty "mp#"es % m$( br%)er
b#"%t"! t(%! p("#%!t(rpy %#!e* S"%##y resp!s"b#e mp%!"es "## !s")er t(e mm$!"ty
"mp%t 3 %## %spets 3 t(e"r per%t"!s6 r%t(er t(%! reser&"! mm$!"ty "ss$es $!t"# %3ter
pr3"ts %re m%)e* S("3t"! !e-t"me p("#%!t(rp" )!%t"!s "!t % 3$se) prr%m 3
mm$!"ty p%rt!er"! %! be % ) 3"rst step 3r mp%!"es t(%t %!t t )e&e#p %
mpre(e!s"&e %ppr%( t s"%# resp!s"b"#"ty*
e&er6 "t (%s t be m%)e #e%r t(%t +SR e?te!)s bey!) t(e r%!)m %t 3 e!ers"ty t
"!#$)e s$( mm!p#%e &%#$es %s p%y"! t%?es6 pe! )"s#s$re6 #%b$r st%!)%r)s %!)
$stmer se!s"t"&"ty* It "s t"me P%,"st%! (%s % me(%!"sm 3r ##et"! %!) %!%#y>"! re)"b#e
re%#-t"me )%t% ! %epte) +SR &%r"%b#es "t("! "ts m$#t"-#%yere) rpr%te setr* O!#y t(e!
%! e see +SR bem"! % str%te" %sset 3r "!re%s"! "!)$stry mpet"t"&e!ess %!) %
s"%##y resp!s"&e rpr%te $#t$re*
I!re%s"!#y6 mp%!"es %r$!) t(e r#) (%&e %)pte) 3rm%# st%teme!ts 3 rpr%te &%#$es6
%!) se!"r e?e$t"&es ! st%rte) t ")e!t"3y s"%# !er!s %s tp "ss$es ! t(e"r mp%!"es
%e!)%s* (e me%!"! 3 t("s !e emp(%s"s ! s"%# resp!s"b"#"ty "s #ess b&"$s t(%! t(e
tre!) "tse#3*
E(! "!,"! 3 Ntt"!(%m U!"&ers"ty e?p#%"!s% defining responsible behavior and getting CSR
right is difficult because it is a 1ourney% not a destination" As countries evolve% getting richer and
better educated% so society3s e(pectations of co#pany behavior beco#e #ore de#anding" So
hat as good enough yesterday #ay no longer be good enough today% and certainly ill not
be good enough to#orro*.4
+SR st"## "s %! e&"! !ept %!) (%s t%,e! "ts s(%pe b%se) ! )"33ere!t e&e!ts "! )"33ere!t
er%p("%# !te?ts &er % per") 3 t"me* 'e %! s%y "t (%s !e t(r$( )"33ere!t st%es 3
e$t"! &er t(e #%st .0 t 40 ye%rs6 ("( %! be re3erre) t %s He!er%t"!s* A3ter t(e
m%ss"&e )estr$t"! 3 'r#) '%r II6 t(e press 3 reb$"#)"! %!) restr$t$r"! %s be$!*
I!ter!%t"!%# r%!">%t"!s ere 3rme)* B$s"!esses ere )e&e#pe) t(r$( "!e!t"&es*
D$r"! t(e 190s %!) 19
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CSR D@nam$8m
I! % perpet$%##y (%!"! r#)6 t(ere "s
A !st%!t re-e&%#$%t"! 3 (%t +SR me%!s6
"!)"&")$%##y %!) ##et"&e#y6
'"t("! b$s"!ess6 3r &er!me!t6
Fr s"et"es "! ("( b$s"!ess per%tes
A!) 3r t(e e!&"r!me!t*
Chris )erceval
5irector CSR 6nternational
EVALUATION OF THE STATE OF CORPORATE SOCIAL RESPONSIBILITY IN PAKISTAN AND A STRATEGY FOR IMPLEMENTATION
September 200)
Se&er%# "!ter!%t"!%# p%ts ere s"!e) %!) r%!">%t"!s emere) t %))ress % &%r"ety 3
s"%# %!) e!&"r!me!t%# prb#ems ##et"&e#y* +rpr%te &er!%!e %!) resp!s"b#e
"!&estme!t emere) %s ,ey %re%s 3 re$#%try !er! %s % !se;$e!e 3 ("(#y p$b#""se)
%ses1* +!$rre!t#y6 %!) per(%ps %s % !se;$e!e6 se&er%# %)&%y r e!%b#"!
r%!">%t"!s %!) "!"t"%t"&es (%&e me "!t be"! "! t(e 3%e 3 t(e r"! !ee) 3r rpr%te
)"s#s$re %!) s"%# %$!t%b"#"ty1%t"!s6
%re prmt"! +SR %s t(e p%t( t mpet"t"&e
%)&%!t%e %!) s$st%"!%b#e )e&e#pme!t* (ere "s
1stGeneration
Pressure driven engagement for pain alleviation with
loali!ed "enefits
2ndGeneration
#$stemati engagement forris% management and
inreased under&standing
of sta%eholders
3rd
Generation'ntegrated
#trategi engagement
for sustaina"leompetitiveness
F$( 60#07A::'
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Te San %r$n:$%=e8 a:9 a8 a ben:mar '? CSR
?press $r s$pprt 3r $!"&ers%# ($m%! r"(ts %!)6 p%rt"$#%r#y6
t(se 3 emp#yees6 t(e mm$!"t"es*
Prmte e;$%# pprt$!"ty 3r emp#yees "t( respet t "ss$es
s$( %s #r6 r%e6 e!)er6 %e6 et(!""ty r re#""$s be#"e3s***
+mpe!s%te emp#yees t e!%b#e t(em t meet %t #e%st t(e"r
b%s" !ee)s %!) pr&")e t(e pprt$!"ty t "mpr&e t(e"r s,"##
%!) %p%b"#"ty
Pr&")e % s%3e %!) (e%#t(y r,p#%e prtet ($m%! (e%#t(
%!) t(e e!&"r!me!t*
Prmte 3%"r mpet"t"! "!#$)"! respet 3r "!te##et$%# %!)
t(er prperty r"(ts*
'r, "t( &er!me!ts %!) mm$!"t"es "! ("( e )
b$s"!ess t "mpr&e t(e ;$%#"ty 3 #"3e*
Prmte t(e %pp#"%t"! 3 t(ese Pr"!"p#es by t(se "t( (m
e ) b$s"!ess*
EVALUATION OF THE STATE OF CORPORATE SOCIAL RESPONSIBILITY IN PAKISTAN AND A STRATEGY FOR IMPLEMENTATION
September 200)
emp(%s"s ! )es"!"! prCets t 3%"#"t%te #ess )e&e#pe) $!tr"es "! $!)erst%!)"! %!)
"mp#eme!t"! +SR*
UN+AD "s %ss"st"! )e&e#p"! $!tr"es18 "! )es"!"! %!) "mp#eme!t"! %t"&e p#""es
3r b$"#)"! pr)$t"&e %p%"ty
%!) "!ter!%t"!%# mpet"t"&e!ess
b%se) ! %! "!ter%te) tre%tme!t
3 "!&estme!t6 rpr%te
resp!s"b"#"ty6 te(!#y tr%!s3er
%!) "!!&%t"!6 e!terpr"se
)e&e#pme!t %!) b$s"!ess
3%"#"t%t"! "!#$)"!
tr%!sprt%t"! %!) "!3rm%t"!
%!) mm$!"%t"! te(!#y6
mpet"t"&e!ess6 )"&ers"3"%t"!
%!) e?prt %p%"ty6 t s$st%"! %
("( #e&e# 3 rt( %!) prmte
s$st%"!%b#e )e&e#pme!t*
Ar)"! t % s$r&ey !)$te) by Pr"e'%ter($se+per t re%( +Os %r$!) t(e r)
t %t(er t(e"r &"e ! +SR M%!y G#b%# +Os seem t &"e t(e"r mp%!"esL s"%#
rep$t%t"!s %s % r, "! prress* '("#e 4< pere!t %re res#$te#y pr$) 3 t(e"r mp%!"es 3r
(%&"! % ps"t"&e s"%# rep$t%t"!6 %!t(er 41 pere!t 33er % ;$%#"3"e) &"e-Lt sme e?te!tL
(e s$r&ey reprte) ("(est !3")e!e "! +SR rep$t%t"! %m!st Nrt( Amer"%! +Os6
"t( 4 pere!t 3ee#"! str!#y t(%t t(e p$b#" pere"&es t(e"r mp%!y %s % ps"t"&e s"%#
per3rmer %!) .0 pere!t 3ee#"! sme(%t $%r)e) !3")e!e*
As"%-P%"3" +Os (%&e t(e #est !3")e!e "! p$b#" perept"! 3 t(e"r mp%!"es %s
ps"t"&e s"%# per3rmers6 "t( !#y 28 pere!t 3ee#"! str!#y !3")e!t %!) 54 pere!t
3ee#"! mre %$t"$s#y !3")e!t* +Os )e3"!"t"!s 3 +SR )"33er %rss re"!s* As % r$p6
+Os pr"r"t">e r,p#%e s%3ety %!) resp!s"&e!ess t %## st%,e(#)ers6 re%r)#ess 3 #e%#
re;$"reme!ts6 %s t(e ,ey )e3"!"! mp!e!ts 3 s"%# rep$t%t"!6 "t( &er 80 pere!ts$pprt* e&er6 Nrt( Amer"%! +OsL pr"r"t">e s$pprt"! mm$!"ty prCets &er
r,p#%e s%3ety "! t(e"r )e3"!"t"! 3 +SR6 ("#e +e!tr%#/S$t( Amer"%! %!) $rpe%! +Os
pr"r"t">e r,p#%e s%3ety ("(est* Ab$t 0 +O be#"e&e t(%t +SR "s &"t%# t pr3"t%b"#"ty
%!) stress t(%t +SR m$st rem%"! % pr"r"ty6 e&e! %m")st t(e $rre!t e!m" )!t$r!*
Ar)"! t N"t"! Des%"6 t(e UN U!)er-Seret%ry-Ge!er%# t(e e$t"! 3 rpr%te s"%# %!)
e!&"r!me!t%# !s"$s!ess &er t(e p%st )e%)e6 "t( rpr%te s$pprters 3 t(ese
"!"t"%t"&es "s r"! 3rm % sm%## m"!r"ty t % #%rer6 mre #e"t"m%te m"!r"ty* M%r,etp#%e
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EVALUATION OF THE STATE OF CORPORATE SOCIAL RESPONSIBILITY IN PAKISTAN AND A STRATEGY FOR IMPLEMENTATION
September 200)
mpet"t"!6 %s e## %s b$re!"! e!&"r!me!t%# %!) s"%# !s"$s!ess "! s"ety %t #%re6
m%y re%te t(e r"t"%# m%ss !eess%ry t p$s( t("s m"!r"ty "!t % m%Cr"ty*
Be! +(e!6 3$!)er 3 Be! %!) Eerrys (mem%)e "e re%m %!) % e##-,!! s"%#
e!trepre!e$r be#"e&es t(%t b$s"!esses te!) t e?p#"t mm$!"t"es %!) t(e"r r,ers %!) (e
t("!,s t(%t t("s "s !t t(e %y t(e %me s($#) be p#%ye)* e e!&"s"!s t(%t Hb$s"!ess (%s %
resp!s"b"#"ty t "&e b%, t t(e mm$!"ty be%$se t(e b$s"!ess "s %##e) t be t(ere "! t(e
3"rst p#%e6 t(e b$s"!ess $(t t s$pprt t(e mm$!"ty6 %!) b$s"!ess et mm$!"ty s$pprt
(e! t(ey s$pprt t(e mm$!"ty*
5.1. In$#ran*e a-a(n$& Bad Ne/$
'("#e rpr%t"!s !ee) t %)pt mm! &%#$es t(%t r, %rss $#t$res %!) !%t"!%#"t"es6
t(ey %#s !ee) t be se!s"t"&e t #%# mm$!"t"es6 $#t$res6 !rms %!) r, pr%t"es* +SR
"s % rpr%te s$r&"&%# "ss$e* I! t(e e-"!3rm%t"! %e %!y !e%t"&e !es %! be % s$!%m" 3r
e&e! t(e mst st%b#e 3 r%!">%t"!s6 G) !es %re s(rt #"&e) b$t !e%t"&e !es (%s % #!
#%st"! !e%t"&e "mp%t ! st%,e(#)ers* It %! re, m%r,et !3")e!e6 e33et $stmer
#y%#ty %!) e!r%e e!er%# p$b#"* (e me)"% ("(#"(ts rpr%t"!s 3r t(e"r 3%"#$res r%t(er
t(%! t(e"r s$esses %!) $!et("%# be(%&"$r e&e! "3 "t "s $!pr&e! me%!s % b#t !
rep$t%t"! t(%t t%,es % #! t"me t #e%!6 e&e! "t( t(e mst str")e!t 3 reme)"%# steps* (e
e!s$"! st t mpet"t"&e!ess "s !t )"33"$#t t s$rm"se*
Be"! pr%t"&e %!) embr%"! +SR %t t(e e%r#"est pss"b#e "s %
) r"s, m%!%"! str%tey 3r % mp%!y* I! t)%ys r#) s"%#
resp!s"b"#"ty6 rpr%te &%#$es %!) mm$!"ty "!"t"%t"&es (%&e %
m%Cr r#e "! "!re%s"! pr3"ts t(r$( #%rer s%#e 3 pr)$t by
resp!s"b#e mp%!"es* Its t(e best m%!%eme!t t# 3r &")"!
%!) m"t"%t"! b$s"!ess %!) m%r,et"! r"s,s*
O&er ree!t ye%rs "t (%s beme mre %!) mre e&")e!t t(%t $stmers reCet pr)$ts
)e&e#pe)6 m%)e r m%r,ete) t(r$( %ys t(%t e!er%te $!et("%# pr3"ts6 e&e! "3 "t e!er%tes
pr3"ts 3r s(%re(#)ers6 ( t %re prress"&e#y bem"! %ry 3 s$( se!s"t"&"ty*
I!re%s"!#y6 t(ere %re r"! #e%# "mp#"%t"!s #"!,e) t $!et("%# b$s"!ess pr%t"es*
+rpr%t"!s %re 3"!)"! "t % (%##e!e t(%t "s )"33"$#t t resp!) t* (e #b%# st%,e(#)erm"!)set re3#ets t(%t mere mp#"%!e t re$#%t"! "s !t e!$( t #%be# % rpr%t"! %s
s"%##y resp!s"b#e* &e!
mp%!"es t(%t %ppe%r 100
mp#"%!t t)%y %! st"## #%!) $p
"! tr$b#e tmrr be%$se
("stry te##s $s t(ey "## be
C$)e) by tmrrLs st%!)%r)s
e&e! (e! t(e"r p%st "s e?%m"!e)* (ere "s % !ee) 3r mp%!"es t be mre H3$t$r"st" %!)
pr%t"&e "! t(e"r t("!,"! s t(ey %! #e%) t(e m%r,et by %!t""p%t"! !e #e"s#%t"!* It "s !
Whe&her ,!#
?be(e)e@ (n (& !r n!&+
CSR ($ a *!r'!ra&e
$#r)()a ($$#e
CSR O%%'r9
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EVALUATION OF THE STATE OF CORPORATE SOCIAL RESPONSIBILITY IN PAKISTAN AND A STRATEGY FOR IMPLEMENTATION
September 200)
pss"b#e 3r mp%!"es t m%,e % )"33ere!e !t !#y "t( t(e"r pr)$ts b$t %#s "t( t(e"r
&%#$es*
5.4. R($0$ !" N!nC!m'(an*e
B$s"!esses (%) t p%y % ($e st 3r 3%"#"! t $!)erst%!) %!) "!ter%te s"%##y resp!s"b#e
&%#$es %!) pr%t"es "! b$s"!ess )e%#"!s "t( st%,e(#)ers* (ere %re se&er%# e?%mp#es t(%t
%#%rme) t(e b$s"!ess setrs &er t(e #%st t )e%)es %!) e!3re) t(em 3r % str%tey
(%!e* A mp%!ys rep$te %!) s$ess "s )epe!)%!t ! t(e re#%t"!s("p "t( %## t(ese
st%,e(#)ers* Re#%t"!s("p b$"#)"! "s % ,ey t s$ess 3 %!y b$s"!ess %!) "ts !#y pss"b#e
(e! t(e b$s"!ess pr%t"es %re t(e !es %ept%b#e t e&ery!e* Se&er%# rpr%te s%!)%#s
(%&e bee! ("(#"(te) by t(e press$re %e!"es #",e NGOs6 me)"%6 "!ter!et et*
I! t(e e) 3r !t"!$"! t %rry $t t(e b$s"!ess "! S$t(
A3r"% %!) bre%,"! %!t"-%p%rt(e") s%!t"!s* S(e##s "!t"m%te "!&eme!t "! N"er"% ("#e % ,ey
pps"t"! #e%)er %s %ss%ss"!%te) %!) "ts r#e "! e!&"r!me!t%# )%m%e "! O!"-#%!) t
br$(t se&ere r"t""sm %%"!st t(e m$#t"!%t"!%#* (e %ters(e) e&e!t %s by m%!y
%$!ts6 t(e Bre!t Sp%r r"s"s "! 1995* Gree!pe%e* Oppse) S(e##s )e"s"! t )"sm%!t#e
%!) )"spse 3 !e 3 "ts "# p#%t3rms "! t(e Nrt( Se%* I!"t"%##y $!m&e) S(e## e!)e) $p p%y"!
% pr"e "! "m%e %!) rep$t%t"!6 st"! t(em mre t(%! )$b#e t (%t "t $#) (%&e st t
)e!t%m"!%te t(e str$t$re %!) re$se r )"spse 3 t(e %ste ! #%!)* I! t(e 3%e 3 !s$mer
bytts e&e! % m"(ty mp%!y #",e S(e## %me t 3ee# t(e m"(t 3 t(e m%ss m%r,et6 %!)
be) t p$b#" p"!"! "! t(e !e me)"% %r*
N",e6 t(e r#) #e%)er "! sprt"! )s6 %s str$, by !tr&ersy &er t(e"r #%b$r pr%t"es
"! As"%* ("s t #e) t m%ss"&e !s$mer bytts6 !e%t"&e p$b#""ty6 st%,e(#)er %!)
press$re r$p r"t""sm6 %!) re%te) %! emere!y s"t$%t"! 3r t(e tp m%!%eme!t "! ("(
t(e mp%!y %s mpe##e) t (%!e t(e"r p#""es %!) )e&"se % !e str%tey t #e%! $p
t(e"r s$pp#y (%"! %!) m%,e t(e"r s$pp#"ers mp#"%!t "t( t(e st%!)%r) pr%t"es* (e N",e
"ss$e %te) %s % %t%#yst t br"! %b$t % (%!e "! m%!%eme!t p#""es %!) p"!te) $t t(%t
!s$mer e?pet%t"!s %re !t restr"te) by er%p(y*
(e !r! s%!)%# %s %!t(er #%!)m%r, "! t(e ("stry 3 +SR %!) b$"#t $p % str! %se 3r
"ts "mp#eme!t%t"!* !r! %me $p 3rm !(ere t beme Amer"%s #%rest mp%!y "! C$st15 ye%rs emp#y"! 216000 st%33 "! mre t(%! 40 $!tr"es* (e mp%!y %s spt#"(te) by "ts
rr$pt"!6 br"bery %!) 3%#se prCet"!* !r!s )e#%r%t"! 3 3%#se pr3"ts6 p#"t"%# #bby"!6
s(re))"! 3 )$me!ts %!) %$)"trs "!%b"#"ty t re&e%# mp%!"es $!rt()? b$s"!ess
pr%t"es %re C$st % 3e 3 t(e m%Cr (%res* (e +mp%!y (%) t 3%e r"m"!%# "!&est"%t"!
%!) #% s$"ts %!) b%) rep$te tr%!sp%re!t reprt"! t(e! emere) %s % s#$t"! t %&") s$(
rr$pt"!s "! 3$t$re ("( emp(%s">es t(e et("%# )"me!s"! 3 +SR* !r!s #%test reprt !
e!&"r!me!t%# %!) s"%# s"t$%t"!s $t#"!es t("s %s % me%s$re t%,e! %!) ( t(e mp%!y "s
e%r"! $p t %))ress ($m%! r"(ts6 e!&"r!me!t%# prb#ems6 %!) (e%#t( : s%3ety "ss$es et*
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September 200)
5.5. Fa*&!r$ Dr()(n- CSR Gr!/&h
(e (%!"! se!%r" 3 b$s"!ess %rss t(e r#) )$e t #b%#">%t"! (%s "!st"%te)
&er!me!ts t re$#%te b$s"!ess %!) )e&e#p p#""es mp#"%!t t t("s emer"! s"t$%t"!*
(ese p#""es t%ret tr%)"t"!%# rpr%te per3rm%!e &%r"%b#es s$( %s e!&"r!me!t%#
per3rm%!e6 r,"! !)"t"!s %!) m%r,et"! et("s et* Ar)"! t "ts prmters
#b%#"s%t"! "s prmt"! )emr%y %s e## %s e!m" rt(* +mp%!"es %! r, "t(
#%# mm$!"t"es 3r s$st%"!%b#e )e&e#pme!t prr%ms by !&ey"! #e%r &%#$es %!)
pr"!"p#es6 %!) %ept"! resp!s"b"#"ty 3r r,p#%es %!) r,p#%e !)$t6 mp%!"es %!
!t !#y b$"#) tr$st %!) m$t$%# $!)erst%!)"! "t( st%,e(#)ers6 t(ey %! %#s s$pprt t(e r#e
3 &er!me!ts* As 3r "ts )etr%trs6 #b%#">%t"! %! be !t%"!e) by e!$r%"! +SR %s %
3"# 3r r$!%%y mmer"%#"sm %!) e?p#"t%t"&e b$s"!ess pr%t"es* ("s "s % r%re !&ere!e
"! s$pprt 3 +SR 3rm mp#ete#y pps"! perspet"&es*
+$stmers %! be bt( 3rm b$s"!esses r !s$mers* St$)"es (%&e s(! t(%t t(e"r "!terests
%!) p$r(%s"! )e"s"!s %re #"!,e) "t(
s"%# r"ter"%6 espe"%##y C$)"! t(e
e!&"r!me!t %!) ($m%! r"(ts* A%re!ess
3 &%r"$s st%,e(#)ers "!#$)"!
s(%re(#)ers %!) t(e e!er%# p$b#" (%s
"!re%se) &er t(e per")* ("s %%re!ess
(%s "!re%se) t(e e?pet%t"!s t(ey (%) 3
b$s"!esses t($s re%t"! % press$re ! t(e
b$s"!esses t %)%pt t t(e s"%# %!)
e!m" e## be"!* I!re%s"!
"!ter)epe!)e!e 3 s(%re(#)er &%#$es %!)
t(e rpr%te &%#$es (%&e br$(t $p %
str! %se 3r tp m%!%eme!t %b$t +SR*
(ere "s "!re%s"! %%re!ess %m! b$s"!ess #e%)ers "! t(e )e&e#pe) e!m"es t(%t
pr%t""! rpr%te resp!s"b"#"ty %33ets t(e"r rpr%te rep$t%t"! %!) br%!) "m%e*
Dem%!) 3r )"s#s$re (%s "!re%se) &er t"me 3rm t(e $stmers6 "!&estrs6 re$#%trs6
mm$!"ty r$ps6 e!&"r!me!t%# %t"&"sts6 tr%)"! p%rt!ers ("( (%&e res$#te) "! % &%r"ety 3s"%# %$)"ts t(%t e?p#%"!s t(e s"%# per3rm%!e 3 %! r%!">%t"!* NGOs (%&e %#s p#%ye) %
m%Cr r#e "! t$r!"! t(e spt#"(t ! t(e rpr%te pr%t"es re%t"! press$re 3r t(e !!-
mp#"%!t r%!">%t"! %!) bst"! t(e %t"&"t"es 3 t(e r%!">%t"! pr%t""! r p#%!!"! t(e
+SR str%tey* A#s t(ere (%s bee! % r%p") rt( "! t(e Q+SR "!)$stry 3 !s$#t%!ts %!)
%$!t"! 3"rms ( %re )r"&"! t(e s"%# reprt"! tre!)6 ("#e represe!t"! t(%t t(e )r"&"!
3re %t$%##y mes 3rm t(e r%!">%t"!s st%,e(#)ers* +mp%!"es t(%t b%se t(e"r b$s"!ess
)e"s"!s ! pr3"t m%r"!s %#!e %!) "!re t(e"r "mp%t ! st%,e(#)ers %! p%y % (e%&y
pr"e "! bt( t(e $rt 3 p$b#" p"!"! %!) t(e st, m%r,ets*
G#b%# +SR re!)s
+SR "s ! % m%"!stre%m b$s"!ess pr"!"p#e
r"p#e Bttm 7"!e "s %! %epte) t#
#$!t%ry )"s#s$re "s %"!"! r$!)
+SR )ep%rtme!ts %re ! mm!p#%e
+SR "s ! see! %s %! "!&estme!t !t % st
SRI I!)e?es %re $tper3rm"! t(ers
B$s"!ess s(#s te%( +SR %t P(D #e&e#
7 Responsible 8usiness 6nitiative-0//2
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September 200)
(e N",e e?per"e!e %s % %t%#yst 3r br"!"! s$pp#y (%"! "ss$es "!t t(e spt#"(t6 t(%t
!s$mer e?pet%t"!s 3rm t(e"r 3%&$r"te br%!)s b$s"!ess %re !t er%p("%##y restr"te) t
t(e"r ho#e country b$t b%se) ! $!"&ers%# pr"!"p#es re"!3re) by t(e 3%st e?p%!)"!
"!3rm%t"! s"ety t(%t #"!,s %## m%!!er 3 st%,e(#)ers* N",es m"s3rt$!e %s t(%t "t be%me
t(e symb# 3 (%t e&ery t(er #b%# br%!) seeme) t be )"! )"sre%r)"! t(e"r
resp!s"b"#"ty t e?p#"te) r,ers r %! e!)%!ere) e!&"r!me!t* B$t N",e (%s %#s e!)e) $p
(%&"! t #e%) t(e p%, "! (%!"! t(e"r pre&"$s b$s"!ess pr%t"es %t (e%);$%rters %s e##
%s %#! t(e"r s$pp#y (%"!s "! )e&e#p"! $!tr"es*
HOW IS CSR CHANGING WITH GLOBALIATION1
5.6. W!rd Trend$ (n CSR Demand 9 S#'',
(e $rpe%! +mm"ss"! (%s est%b#"s(e) % H$rpe%! M$#t"-st%,e(#)er Fr$m t e?(%!e
best pr%t"es %!) e?p#re t(e $rpe%! %ppr%( t +SR* +rpr%te prresses t%r)s
re%ter resp!s"b"#"ty (%s %#%ys bee! t(e res$#t 3 bt( p$s( %!) p$## 3res* B$s"!ess
#e%)ers p$##e) t(e"r r%!"s%t"!s t ("(er st%!)%r)s %!)6 t(e"r $!terp%rts "! s"ety p$s(e)
3r (%!e*19 P%s%# 7%my6 Us +mm"ss"!er 3r r%)e str!#y %)&%tes t(%t "! r)er t
e?te!) t(e #"m"te) s"et%# be!e3"ts 3 +SR pr%t"es "t !ee)s t be "!ter%te) "!t br%)er
str%te"es %!) p$b#" p#""es*
5.8. CSR and WTO Re7#(remen&$
+SR "s !e 3 t(e resp!ses t t(e "mb%#%!es res$#t"! 3rm
t(e %e#er%t"! 3 t(e #b%#">%t"! press* Imb%#%!e
betee! t(e %)&%!e) &er!%!e system "! "!)$str"%#"se)
$!tr"es6 ( )"spse 3 % ("(#y sp("st"%te) set 3
e!m" %!) s"%# re$#%t"!s6 %!) t(e #%, 3 s$(
&er!%!e "! )e&e#p"! $!tr"es %s e## %s %t "!ter!%t"!%#
#e&e#*20
I!ter!%t"!%# rt( 3 b$s"!ess %!) t(e e33rts 3 'O t rem&e #b%# b%rr"ers (%s %#s
press$r"se) t(e sm%##er e!m"es t beme mpet"t"&e* B" b$s"!ess e!t"t"es %re !t !#y
!er!e) %b$t t(e"r +SR str%te"es6 mp%!"es %re %#s ,ee! t e!s$re t(%t t(e"r s$pp#"ers6
)"str"b$trs %!) e&e! !s$mers %re "!3rme) %b$t t(e mp%!ys et("%# %!) s"%#
per3rm%!e*
I!&estme!t r$ps (%&e %#s st%rte) press"! t(e mp%!"es ! t(e"r s"%# "ss$es* (ey
re;$"re )"s#s$re ! ")e r%!e 3 +SR "ss$es "!#$)"! e!&"r!me!t resp!s"b"#"ty6 r,p#%e
p#""es6 mm$!"ty "!&eme!t6 ($m%! r"(ts pr%t"es6 et("%# )e"s"! m%,"! %!)
rpr%te &er!%!e*
5.:. B#$(ne$$ Ca$e
O$r rese%r( %#s 3$ses ! )"33ere!t )e3"!"t"!s %!) be!(m%r,s be"! $se) #b%##y "! m%Cr
re"!s %!) %t ( b$s"!ess "s be"! "mp%te) "! terms 3 t(e"r pr3"t%b"#"ty %!) pr)$t"&"ty by
m%,e +SR "!t %b$s"!ess %se6 mp%!"es(%&e t $!)er-prm"se %!)
&er-per3rm*7Responsible 8usiness
6nitiative-.999
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September 200)
"mp#eme!te) +SR pr%t"es* (e b$s"!ess %se 3r +SR "s ! % re%#"ty pr&e! t(r$( %
!$mber 3 rese%r(es* +%se st$)"es 3 r%!">%t"!s %## &er t(e #be (%&e #e%r#y ")e!t"3"e) %
#"!,%e betee! s"%##y resp!s"b#e pr%t"es %!) re%ter 3"!%!"%# %"!s21* I! P%,"st%!6 ! t(e
(#e6 t(e b$s"!ess %se 3r +SR "s yet t be $!)erst) "! terms 3 mpet"t"&e!ess %!)
b$s"!ess %)&%!t%e* I3 e %ss$me t(%t b$s"!ess s(#s te%( (%t t(ey )eterm"!e %s $se3$#
t t(e"r p$p"#s6 t(e! t("s 3"!)"! "s re"!3re) "! t(e #%, 3 "mprt%!e be"! "&e! by t(em t
+SR* Mre&er6 e 3"!) t(%t mp%!"es 3te! 3ee# t(%t res$res e?pe!)e) ! m%!)%try
s"%# r e!&"r!me!t%# mp#"%!e "s +SR* A!) t(%t t(e"r )!%t"!s t (%r"ty %re +SR
sts*
(e (%##e!e "s t re%te mp%!"es t(%t (%&e t(e &"s"! %!) %p%"t"es t re%te s"%##y %!)
e!&"r!me!t%##y resp!s"b#e b$s"!ess m)e#s t(%t %! $tper3rm mpet"trs ( ) !t
%ept t("s (%##e!e* Sme 3 t(e pr&e! be!e3"ts t b$s"!ess %re )"s$sse) be#
5.:.2. A**e$$ &! Mar0e&$
Ar)"! t socialinvest"orgSRI 3$!)s (%&e "!re%se) 3rm 40 b"##"! US )##%rs "! 1984 t 2
tr"##"! US )##%rs "! 200.* S"%##y Resp!s"b#e I!&estme!ts (%&e r"se! by
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5.:.6. Gr!/(n- Sae$ and C#$&!mer !,a&,
(e mm! !er!s 3 t(e $stmers "!#$)e pr"e6 ;$%#"ty6 %ppe%r%!e6 t%ste6 %&%"#%b"#"ty
s%3ety %!) !&e!"e!e* +SR (%s re%te) pte!t"%# "!e!t"&es 3r e!trepre!e$rs ( %! !
%ter % r"! m%r,et seme!t 3 et("%##y mt"&%te) !s$mers ( %re "!#"!e) t &%#$e
b%se) r"ter"%* A ) e?%mp#e 3rm P%,"st%! "s S%% Sprts6 (se "!&estme!ts "!
mm$!"ty "!3r%str$t$re %!) s"%##y resp!s"b#e m%!$3%t$r"! m%)e "t t(e r#)s #%rest
ser-b%## m%!$3%t$r"! mp%!y )esp"te % b$s"!ess e!&"r!me!t 3r%$(t "t( ("#) #%b$r
%##e%t"!s
5.:.8. Pr!d#*&()(&, and #a(&, Enhan*emen&
+mp%!"es t(%t "!&est "! t(e r,"! !)"t"!s %!) e!&"r!me!t%# 3r"e!)#y %tmsp(ere %!)
%#s "!&e t(e emp#yees "! )e"s"! m%,"! te!) t (%&e %! "!re%se "! pr)$t"&"ty*
mp#yee #y%#ty %!) )e)"%t"! res$#ts "! e33et"&e m%! ($r $t"#">%t"! %!) (e!e "!re%se "!
;$%#"ty*
5.:.:. Em'!,ee Re&en&(!n
+mp%!"es pere"&e) t (%&e str! +SR mm"tme!ts 3te! 3"!) "t e%s"er t rer$"t
emp#yees6 p%rt"$#%r#y )$r"! t"(t #%b$r m%r,ets* Rete!t"! #e&e#s m%y be ("(er6 t6
res$#t"! "! % re)$t"! "! t$r!&er %!) %ss"%te) rer$"tme!t %!) tr%"!"! sts*
5.:.;. Le$$ S*r#&(n, b, Re-#a&!r, B!d(e$
A!t(er "mprt%!t %)&%!t%e bser&e) "! %se 3 r%!">%t"!s pr%t""! rpr%te s"%#
resp!s"b"#"ty "s t(%t t(ey %re #ess sr$t"!">e) by t(e re$#%try %$t(r"t"es %!) %re "&e! prmpt
tre%tme!ts %!) e?tr% be!e3"ts*
)#, HOW DOES CSR FIGURE IN THE PAKISTAN CONTEXT1
I! t(e 'est +SR (%s beme % t$(st!e 3 +rpr%te tr$st %!) % pre)"tr 3 b$s"!ess
#!e&"ty* I! P%,"st%!6 +SR "s st"## % b$>>r) 3r mst 3 t(e r%!">%t"!s %!) "!)"&")$%#s*
B$s"!esses %re "! % press 3 %tt%"!"! t(e "!ter!%t"!%##y %epte) !rms 3 rpr%te s"%#
resp!s"b"#"ty 3te! e"t(er m"s$!)erst%!)"! t(e tr$e p("#sp(y 3 +SR r "!r"! "t* (e
m$#t"!%t"!%#s "! P%,"st%! %re %(e%) 3 t("s %&e6 )$e t t(e"r "!ter!%t"!%# #"!,%es %!) %re
%t$%##y %)pt"! t(e st%!)%r)s 3##e) "! t(e"r
(e%)-33"es "! t(e )e&e#pe) $!tr"es#(e b"rt( 3se&er%# NGOs r,"! 3r +SR re#%te) "ss$es (%&e
e?pe)"te) t(e %%re!ess press* (e press$re
r%"se) by t(e"r &"e (%s %t$%##y "!st"%te) t(e
&er!me!t %!) t(e b$s"!esses t )e&e#p
str%te"es mp#y"! "t( t(e "!ter!%t"!%#
st%!)%r)s* St"## t(ere "s % !ee) t "!&e "&"#
s"ety %!) t(e %%)em"% t m%,e % per3$# +SR
str%tey 3r P%,"st%! t(%t %! be "mp#eme!te) "! %))"t"! t % str! !%t"!%# b)y t(%t %!
e!3re t(e re$#%t"!s*
Nee! ?'r :an(e
System" (%!e "s !ee)e)* D"s!t"!$"t"es
"## #e%) t(e re 3 t(e #b%# e!m"
system "*e* t(e 3"!%!"%# mm$!"ty t
&%#$e t(e m%ter"%# "mprt%!e 3 s$st%"!%b"#"ty
m%!%eme!t*
Ern$& L(-&er(n-en+ GRI
G#b%# Reprt"! I!"t"%t"&e6 Net(er#%!)s
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M$#t"!%t"!%#s %!) ;$"te % 3e #%re !%t"!%#s (%&e p#""es mm"tt"! t e!&"r!me!t%#6 s"%#
%!) et("%# mp#"%!es %!) t(ey (%&e %#s "!&este) "! mm$!"ty prCets ("( "!#$)es
e#3%re6 pr"m%ry e)$%t"!6 %)$#t #"ter%y %!) (e%#t( setr prCets6 me)"% %%re!ess %!)
&%"!%t"! %mp%"!s6 est%b#"s(me!t 3 (sp"t%#s %!) )"%!st" e!tres* Sme 3$s "s %#s
! $#t$r%# prr%mmes s$( %s6 (%r"ty s(s6 sprts e&e!ts ("( %re m%"!#y "!"t"%te) t
e!(%!e br%!) "m%e %!) pr)$t p$b#""ty*22 A## t(ese rpr%te %t"&"t"es %re y#"%# %!)
re3#et % !!-str%te" %!) !!-b$s"!ess %ppr%( t &ery ) s"et%# "!&estme!ts* (ese
%t"&"t"es %re % $se3$# mp!e!t 3 +SR6 re3erre) t %s S"%# I!&estme!t* It "s mst#y % step
t(%t m%,es % )"33ere!e6 b$t mp%!"es %! re%te %! e&e! #%rer "mp%t t%r)s s$st%"!%b#e
)e&e#pme!t "3 t(ey !s")er str%te"%##y s$!) +SR "!&estme!ts*
6.2. CSR Pra*&(*e$ (n Pa0($&an
St%te 3 +SR "! P%,"st%! "s st"## "! "ts "!3%!y* O!#y 3e mp%!"es (%&e %! e?"st"! +SR
str%tey %!) mst#y t(ey %re t(e m$#t"!%t"!%#s ( 3## t(e"r ! +SR p#""es %!) S
st%!)%r)s* U!3rt$!%te#y6 t(e #%# "!)$stry "s e"t(er $!%%re 3 t(e be!e3"ts br$(t by +SR r
t(ey 3ee# t(%t e&e! "3 t(ey ) !t %)pt s$( p#""es6 t(ey %re !t "! %!y st%te 3 )%!er* (e
%p%t(y 3 t(e #%# b$s"!ess setr %s ("(#"(te) "! t(e 199 by t(e bre%,)! 3 t(e #%#
%rpet "!)$stry %!) t(e t(re%t 3 )%m%e t S"%#,ts sprts "!)$stry* 7%b$r e?p#"t%t"!6 ("#)
#%b$r6 "!%)e;$%te emp#yee be!e3"ts %!) $!s$"t%b#e r,"! e!&"r!me!t ere 3e %re%s
p"!p"!te) by t(e "!ter!%t"!%# eye* ($( t%,"! t(e re%t"&e me%s$res6 t(e C"!t e33rt 3 t(e
"!)$str"%#"sts s%&e) t(e re%ter )%m%e 3resee!6 b$t !t m$( (%s bee! )!e t t%,e mre
pr%t"&e me%s$res*
I! 200. % m$#t" st%,e(#)er 3r$m
HP%,"st%! +mp#"%!e "!"t"%t"&e %s
#%$!(e) "t( s$pprt 3rm
"!ter!%t"!%# b$yers6 t(e te?t"#e setr6
%!) t(e M"!"stry 3 +mmere* A )r%3t
!%t"!%# st%!)%r) %s )e&e#pe) 3r
$se %s mp#"%!e st%!)%r) %ppr&e)
by G&er!me!t t rep#%e m%!y
I!ter!%t"!%# s"%# %!) e!&"r!me!tmp#"%!e st%!)%r)s %!) b$yers )e 3 !)$t* (e res$#t 3 t("s e33rt %s "!#$s"! 3
s"%# mp#"%!e "! t(e tr%)e p#"y %!) "!"t"%t"! 3 % prCet prps%# by M"!"stry 3 S"e!e
%!) e(!#y t $rpe%! U!"! 3r e!$r%"! SA800 "mp#eme!t%t"! by s$bs")">"!
!s$#t"! %!) "mp#eme!t%t"! st*
I! P%,"st%! +SR "s 3re;$e!t#y e;$%te) "t( rpr%te p("#%!t(rpy6 t(e terms be"! 3te!
m"st%,e!#y $se) sy!!ym$s#y* Sme !s")er +SR t be % s"mp#e mp#"%!e "t( #%*
("s re%tes % )"33"$#ty be%$se tp m%!%eme!t "s st"## $!ert%"! %b$t t(e tr$e me%!"!s 3
+SR* ("s "!)"%tes t(e !ee) 3r % m%ss %%re!ess %mp%"! s$pprte) by t(e &er!me!t6
W@ "e nee! CSR S9ra9e(@ $n Pa$89an###
& M!ey "s better spe!t 3r pre&e!t"&e "!ter&e!t"!s
& It sts #ess &er t"me t 3"? t(e press
& It sts mre &er t"me t 3"? He!)-3-p"pe
& O!e-33 p("#%!t(rpy "s ) b$t !t s$st%"!%b#e
& B$s"!ess %#s %re better %("e&e) "3 #"!,e) t +SR %"ms
& +SR #e%)ers e!Cy e!trepre!e$r"%# %)&%!t%e t
7Responsible 8usiness 6nitiative -0///
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t%ret"! b$s"!essme!6 e!trepre!e$rs %!) $stmers s t(%t t(ey %re %b#e t %ppre"%te +SR
%!) %#s t(e e!er%# per"#s 3 !!-mp#"%!e "! t)%ys e!&"r!me!t* Fre;$e!t %!) pe!
)"s$ss"! )e3"!"! %!) $!)erst%!)"! +SR6 )et%"#"! "ts !%t$re %!) prmt"! %!) )e&e#p"!
met()#"es ! ( #%# b$s"!esses %)pt %!) m%!%e t(e"r +SR b#"%t"!s $#) be %
$se3$# 3"rst step*
6.1. In(&(a&()e$ b, S#''!r& Or-an(a&(!n$ (n Pa0($&an
S"!e t(e "!ept"! 3 t(e !ept 3 +SR %!) t(e %%re!ess6 se&er%# r%!">%t"!s (%&e
e&e) &er t(e per") 3 t"me t(%t (%&e p#%ye) % m%Cr r#e "! re%t"! t(e %%re!ess6
p"!t"! $t t(e "ss$es %!) 3"(t"! t(e "!C$st"e* I! P%,"st%! t("s %t"&"ty (%s !t bee!
e!$r%"! s 3%r* S"!e t(e ")e% "s (%r)#y % )e%)e #)6 3e r%!">%t"!s (%&e bee! 3rme)
t r, ! )"33ere!t "ss$es "!rpr%te) "! +SR* (e t%b#e-5*2 e#%br%tes t(e "!"t"%t"&es t%,e!
by )"33ere!t r%!">%t"!s %!) t(e ,ey %re%s t(ey %re r,"! !*
(ere "s % s# rt( 3 t(e Q+SR "!)$stry 3 !s$#t%!t 3"rms ( %re (%r"! ("(#y t
rpr%t"!s ( %!t t r")e t(e +SR b%!)%!* (ey pse % r"s, 3 m"s$")"!
rpr%t"!s t et "!&e) "! Hree! %s("! by )"! t,e! e33rts r rep#"%t"! p#""es
%!) prCets )!e by t(er G#b%# +rpr%t"!s r t(e"r mpet"trs "t($t re%#">"! t(e re%#
"mp%t 3 t(e"r "!"t"%t"&es* (ese rpr%t"!s smet"mes #%"m t(%t t(e )r"&"! 3re %t$%##y
mes 3rm t(e"r st%,e(#)ers*
* A:a!em$a
A%)em"% (%s % &ery "mprt%!t r#e "! s(%p"! t(e 3$t$re B$s"!ess 7e%)ers "! P%,"st%!* As %!
e?te!s"! 3 t("s st$)y6 RBI %s,e) 3%$#t"es6 )ep%rtme!ts %!) "!st"t$t"!s re!">e) by t(e
"(er )$%t"! +mm"ss"! (et(er t(ey t%$(t +SR %s % $rse r (et(er "t %s %
s$bCet 3r 3%$#ty r st$)e!t rese%r(* (e st$)y 3$!) ! +SR )ep%rtme!t r $!"t "! %!y
"!st"t$t"! "t("! t(e s%mp#e %!) ! 3%$#ty member %rry"! $t pr"m%ry rese%r( ! +SR
"ss$es* A#s6 "t( t(e e?ept"! 3 t(e I!st"t$te 3 A)m"!"str%t"&e S"e!e %t t(e P$!C%b
U!"&ers"ty (ere % spe"%# e#et"&e "s 33ere)6 t("s st$)y 3$!) ! +SR $rses be"! t%$(t*
(ere %re e?%mp#es 3 !3ere!es (ere +SR "s m%)e % tp" 3r p%!e# sess"!6 b$t "t "s 3te!
bser&e) t(%t t(e 3$s 3 t(ese prese!t%t"!s #%be##e) %s +SR te!)s t e?%mp#es 3 rpr%tep("#%!t(rpy %!) t(e e?%mp#es "te) %s +SR best pr%t"e 3te! )esr"be (%r"t%b#e %ts by
mp%!"es* I! % s"t$%t"! (ere t(ere "s % #%, 3 bt( t(eret"%# %!) pr%t"%# +SR
,!#e)e %!) e?per"e!e6 t("s %tt"t$)e "!&%r"%b#y es $!(%##e!e)*
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* Me!$a
(e Me)"% p#%ys % #%re r#e "! !s$mer %%re!ess %!) "! re%t"! )em%!) 3r resp!s"b#e
be(%&"$r 3rm b$s"!ess ! #b%##y %epte) p%r%meters* I! P%,"st%! t(e e#e Me)"% %s e##
%s !esp%pers %re 3te! s"#e!t ! t(ese "ss$es* 'e see % 3e prr%mmes r "!ter&"es !
sme te#e&"s"! (%!!e#s6 b$t t(e 3$s "s 3te! #"m"te) t e#eme!ts #",e #%b$r r"(ts r
e!&"r!me!t%# mp#"%!e* A 3e s$pp#eme!ts ! re#%te) tp"s #",e e!&"r!me!t%# reprt"!
%!) +SR best pr%t"es m%"!#y r"te %b$t t(e )) rpr%te mm$!"ty prCet r
e!&"r!me!t%# reprts* M%"! +SR p%r%meters %re st"## m"ss"! 3rm me)"%*
Or(an$a9$'n In$9$a9$>e F':%t"! M!"tr"! 3r ("#) #%b$r
mp#"%!e
I7O )e6 ("#) #%b$r6 #%b$r
r"(ts6 Dee!t 'r, !)"t"!s
7AD-P, 7e%)ers("p 3r !&"r!me!t
: De&e#pme!t P%,"st%!
+mp!e!t "! &er%## tr%"!"!
prr%mme
!&"r!me!t
+rpr%te P("#%!t(rpy
+rpr%te "!&estme!t
N+P +#e%!er e(!#"es !&"r!me!t
NPO Pr)$t"&"ty !&"r!me!t6 r%)e
P+I P%,"st%! +mp#"%!e I!"t"%t"&e +r"ter"% )e&e#pme!t S"%# +mp#"%!e
P%,"st%! +e!tre 3r P("#%!t(rpy NGO +ert"3"%t"!
+mm$!"ty r,
P("#%!t(rpy
+rpr%te "&"!
Or(an$a9$'n In$9$a9$>e F':%t"!
r"p#e Bttm 7"!e prCet
+#e%!er pr)$t"! e!tres
33""e!y6 s$st%"!%b#e b$s"!ess
pr"!"p#es
G+F G#b%# +mp%t F$!)%t"!
P%,"st%!
+mp%t s"!"! G+ pr"!"p#es
Tab=e 6)#.7
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6.4. CSR (n &he L(-h& !" I$am
Is#%m 3%&rs 3%"r %!) et("%# b$s"!ess %s t(e best s$re 3 "!me* It %"ms t prmte m$t$%#
be!e3"t "! b$s"!ess "!ter%t"!s* Is#%m re"!3res tr%!sp%re!t %!) rr$pt"! 3ree r"tte!
!tr%ts6 %ept%b#e r,"! !)"t"!s6 3%"r e?(%!es 3r bt( !%t$r%# res$res %!) ($m%!
e33rt* It %)&%tes H*a,&iyah2.6 t(r$( %t"&e p%rt""p%t"! "! t("s #"3e %!) by be(%&"!
et("%##y "! t(e m")st 3 t(e tests 3 t("s dunia r#)* M$s#"ms pr&e t(e"r rt( t A##%( by
$p(#)"! 'u+u+-ul-6badI!)"&")$%# R"(ts %!) %re 3r s"ety6 %!) s(%r"! e%#t( "t( pr
%!) $!)erpr"&"#ee)* At"!s %!) )e"s"!s %re C$)e) t be et("%# )epe!)"! ! t(e "!te!t"!
3 t(e "!)"&")$%#* G) "s m!"s"e!t6 %!) ,!s $r "!te!t"! mp#ete#y %!) per3et#y* G)
"!te!t"!s 3##e) by ) %t"!s %re !s")ere) %s %ts 3 rs("p* 'alal) "!te!t"!s
%!!t m%,e hara#b%) %t"!s halal24* Is#%m %##s %! "!)"&")$%# t(e 3ree)m t be#"e&e %!)
%t (e&er (e/s(e )es"res6 b$t !t %t t(e e?pe!se 3 %$!t%b"#"ty %!) C$st"e*
(e ShariahIs#%m" #% )e3"!es )es 3 s"%# be(%&"$r6 %!) b$s"!ess et("s %r)"! t
("( t)%ys b$s"!ess "!&estrs %! "!&est "! s"%##y resp!s"b#e mp%!"es* O!e e?%mp#e
3 %pp#y"! t(e Shariah"! s"%##y resp!s"b#e "!&estme!t "s t(e D E!es Is#%m" F$!)
IMAN ("( "!&ests "! Shariah-mp#"%!t mp%!"es t e!$r%e m$s#"ms see, % b#e!)
betee! 3"!%!"%##y re%r)"! %!) 3%"t(-mp%t"b#e "!&estme!t pprt$!"t"es* ($s "t m%,es %
str! b$s"!ess %se 3r mp%!"es "! P%,"st%! t %)pt Is#%m" b$s"!ess pr"!"p#es %s p%rt 3
% !%t"!%# mp#"%!e )e %!) s$pprt % )"s#s$re %!) &er"3"%t"! system t &%#")%te
per3rm%!e %%"!st "t*
-#, IS THERE A CSR ROLE FOR GOVERNMENT1
8.2. Eam'e$ "r!m &he W!rd
G&er!me!ts %! p#%y % $!";$e %!) per3$# r#e (e! "t mes t rpr%te resp!s"b"#"ty* Its
")e#y %epte) t(%t $!tr"es %!) &er!me!ts t(%t respet ($m%! r"(ts (%&e mre pe!
%!) tr%!sp%re!t #%s %!) 3"!%!"%# systems6 #ess rr$pt"!6 % better-e)$%te) r,3re6 mre
st%b"#"ty %!) mre se$r"ty* I! r)er t est%b#"s( t(e #b%# r$#es %!) re$#%t"!s "mpse) by t(e
"!ter!%t"!%# r%!"s%t"!s6 %!) m%,"! t(e"r b$s"!esses mp#"%!t t t(e "!ter!%t"!%# #% %!)
pr%t"es;
- G&er!me!ts s($#) p$rs$e t(e"r tr%)"t"!%# 3$!t"! 3 prmt"! tr%)e %!) b$s"!ess
t(r$( % prper p#"y* S$pprt"! e!m" rt( est%b#"s(es % s$pprt 3r)emr%y* (e str!est 3$!)%t"!s 3r t(e st%b"#"ty6 pre)"t%b"#"ty6 %!) se$r"ty
!eess%ry 3r % s$st%"!%b#e b$s"!ess e!&"r!me!t %re )emr%t" &er!me!ts t(%t
prtet ($m%! r"(ts %!) #%b$r r"(ts*
- G&er!me!t m$st r, "t( mp%!"es t prmte str! rpr%te &%#$es ("(
prmte #e%# %!) et("%# be(%&"$r %s e## %s respet ($m%! r"(ts %!) #%b$r r"(ts*
- G&er!me!ts s($#) s$pprt %!) 3%"#"t%te p$b#"-pr"&%te e33rts t prmte rpr%te
resp!s"b"#"ty br"!"! seem"!#y )"sp%r%te r$ps tet(er 3r ser"$s e33rts t %))ress
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September 200)
m$t$%##y re!">e) prb#ems* (e #$!t%ry Pr"!"p#es %!) S"%# A$!t%b"#"ty
I!ter!%t"!%# %re t ) e?%mp#es 3 s$( e33rts*
- G&er!me!ts s($#) s$pprt e?"st"! "!ter!%t"!%# st%!)%r)s %!) %)pt t(em "! t(e"r
p#""es t )e#e%te t(em t t(e"r #%# b$s"!esses m%,"! t(em re%)"#y mpet"t"&e 3r
t(e "!ter!%t"!%# m%r,et*
- G&er!me!ts s($#) (e#p "&"# s"ety6 b$s"!ess6 %%)em"s6 NGOs %!) $!"!s t C"!
(%!)s tet(er %!) r%3t re)"b#e s#$t"!s 3r t(e"r )%y t )%y prb#ems %!) (e#p t(em
"mp#eme!t t(%t t(r$($t t(e b$s"!ess (%"!*
- G&er!me!ts %! prmte t(e +SR %e!)% t(r$( #e"s#%t"!6 me)"% %!) re%te
%%r)s t e!$r%e t(e r%!">%t"!s t %)pt t(e (%!es*
(e "mprt%!e 3 +SR 3r U!"te) K"!)m "s )ep"te) by t(e
3%t t(%t t(ey (%&e % M"!"ster 3r +SR* Step(e! "mms6 M"!"ster
3r +rpr%te S"%# Resp!s"b"#"ty6 e#me) % s"%#
resp!s"b"#"ty "!&estme!t "!)e? s%y"!6 H+rpr%te S"%#
Resp!s"b"#"ty (%s % &"t%# r#e t p#%y "! $r s"ety* ItLs #"&"!
pr3 t(%t e!m" %!) s"%# %#s ) !t (%&e t be "!
!3#"t* A!) "t %! %))ress sme 3 t(e t$(est (%##e!es $r
s"ety 3%es*
8.1. Mean/h(e+ In Pa0($&an
(e !)$t 3 3r-pr3"t b$s"!esses "! P%,"st%! "s re$#%te) t(r$( mpre(e!s"&e pr"!"p%#
#e"s#%t"! "! t(e 3rm 3 t(e +mp%!"es Or)"!%!e6 19946 &ersee! by % st%t$try b)y #",e t(e
S+P6 %!) b$s"!ess "!terests %re represe!te) by )$#y re!">e) represe!t%t"&e b)"es s$(
%s tr%)e %ss"%t"!s r (%mbers 3 mmere* ("s str$t$re) %!) s$per&"se) me(%!"sm
"mp%rts stre!t( t t(e !ept 3 press "!ter"ty by "!st"t$t"! tr%!sp%re!y %!)
%$!t%b"#"ty* *
- S+P "s re&"e"! rpr%te &er!%!e #e"s#%t"! %!) re$#%t"!s t(%t "## br"! "!t
3$s e#eme!ts 3 rpr%te )"s#s$re6 s(%re(#)er #"%b"#"ty %!) tr%!sp%re!t
%$!t%b"#"ty*- NAB (%s $!&e"#e) % !%t"!%# %!t"-rr$pt"! str%tey t(%t #%ys )! p%r%meters 3r
rpr%te mp#"%!e*
- (e St%te B%!, (%s $t#"!e) !e re$#%try 3r%mer,s ! 3"!%!"%# resp!s"b"#"ty %!)
prb"ty*
- I!ter!%t"!%##y re!">e) $")e#"!es s$( %s SA8000 "s ett"! s$pprt 3rm
G&er!me!t
- I! 200. HP%,"st%! +mp#"%!e "!"t"%t"&e %s #%$!(e) "t( % )r%3t !%t"!%# st%!)%r) %s
% mp#"%!e st%!)%r) %ppr&e) by G&er!me!t*
?R!e !" B#$(ne$$ (n S!*(e&,
($ &he 12$& *enr,$
m!$& (m'!r&an& and
*!n&en&(!#$
'#b(* '!(*, ($$#e@.
Si#on :ade&
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September 200)
- +mp#"%!e %s )e#%re) % pr"r"ty "! t(e !%t"!%# tr%)e p#"y6 (e&er6 #"tt#e prress
%s see! %t t(e pr%t"%# #e&e#*
- PNA+ "!"t"%te) %%re!ess sem"!%rs ! SA80006 s"%# mp#"%!e st%!)%r)s "! 200.
%t %## m%Cr (%mbers 3 mmere "! t(e P$!C%b*
- A prps%# %s m%)e by M"!"stry 3 S"e!e %!) e(!#y t t(e U 3r s$bs")">"!
SA800 ert"3"%t"! %m! P%,"st%!" s$pp#"ers %!) mp%!"es
+rpr%t"!s6 pep#e %!) "!!&%t"&e +SR "!"t"%t"&es !ee) G&er!me!ts s$pprt6 "! terms 3
p#""es %!) %ept%!e 3 t(e "!"t"%t"&e6 mre t(%! 3"!%!"%# "!&estme!t*
GAP8
- (ere "s ! e&")e!e 3 t(e &%r"$s te!)ers6 re;$ests 3r prps%# RFPs r terms
3 re3ere!e ORs 3r &er!me!t !tr%ts %)&ert"se) r "!"t"%te) by "ts )ep%rtme!ts r%e!"es spe"3y"! %!y +SR-re#%te) p%r%meters25%s r"ter"% 3r se#et"!* ("s $#) (e#p
"! prmt"! t(e m%!%eme!t %spet 3 +SR*
- (ere "s ! !3"rme) "!3rm%t"! ! %!y #e%r#y %rt"$#%te) t%? "!e!t"&es r
re!"t"! 3rm G&er!me!t 3r ) b$s"!ess pr%t"es %!) "!!&%t"&e "!"t"%t"&es #",e
rese%r( : )e&e#pme!t 3r s$st%"!%b#e te(!#"es*
- (e rese%r( $#) ")e!t"3y ! r, "! prress ! t(e )e&e#pme!t 3 +SR-
re#%te) p#""es b%se) ! emer"! #b%# re;$"reme!ts t 3%"#"t%te P%,"st%!" mp%!"es "!
"mpr&"! %!) e?p%!)"! e?prt %!) tr%)e "! "!ter!%t"!%# m%r,et*
/#, WHY THIS STUDY AND HOW
:.2. Me&h!d!!-,
B%se) ! %&%"#%b#e )%t%6 % $!"&erse 3 mp%!"es %s ")e!t"3"e)6 str%t"3"e) %!) r%!)m"se) "!t
% represe!t%t"&e (rt 3 %b$t 100 mp%!"es* A )et%"#e) s$r&ey "!str$me!t %s )es"!e) "!
,eep"! "t( t(e )%t% re;$"reme!ts %rt"$#%te) "! t(e ORs6 "t( )$e re3ere!e t $rre!t
"!ter!%t"!%# +SR tre!)s %!) "ss$es %!) be!(m%r,s* ("s "!str$me!t %s b%se) ! t(e RBI
HP"##%rs 3 +SR m)e# "t("! t(e !te?t 3 t(e H4-Ps2 3 +SR embe))e)!ess "! %
K!#e)e6 Att"t$)e %!) Pr%t"e KAP 3rm%t* It %s %)m"!"stere) t ")e!t"3y st%,e(#)er
resp!)e!ts*
A te!-#e&e# m$#t" p(%se) +SR per3rm%!e r") %s $se) t "!3rm t(e s$r&ey "!str$me!t %!) %
tr"%!$#%t"! met()#y %s %)pte) 3r %)m"!"ster"! t(e s$r&ey "!&"! % t(ree-step
press* F"rst6 resp!)e!ts ere ")e!t"3"e) "t("! t(e s$bCet r%!">%t"! t(r$( % s"!e)
#etter 3 "!te!t %!) b%se#"!e "!3rm%t"! %;$"re)* Se!)6 %! "!3rm%t"! p%, %s se!t $t
"t( t(e s$r&ey "!str$me!t )"ret#y t "!)"&")$%#s ")e!t"3"e) %s resp!)e!ts* ("r)6 % tr%"!e)
)%t% ##etr pers!%##y &%#")%te) t(e resp!se "! )"s$ss"! "t( t(e resp!)e!t* (e
met()#y %s ,ept %)%pt%b#e %!) 3#e?"b#e
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("s rese%r( "s spe"3" t t(e $rre!t st%te 3 rpr%te s"%# resp!s"b"#"ty t(%t "s be"!
pr%t"e) "! P%,"st%!* =$est"!!%"res ere )"sp%t(e) t &er 100 r%!">%t"!s 3rm 10
setrs6 % m"? 3 m$#t"!%t"!%#s %!) !%t"!%# mp%!"es6 "!#$)"! sm%## %!) me)"$m
e!terpr"se* (e setrs "!#$)e
1* e?t"#e
2* b%
.* P(%rm%e$t"%#s
4* F$e# : !ery
5* +(em"%# : Fert"#">er
* +eme!t : B$"#)"!
%t"!* Gett"! t(e "!"t"%# )et%"#s %b$t t(e mp%!y6 "ts stre!t(s6 #%t"!s %!)
pr%t"es6 t(e se!) ;$est"!!%"re %te) %s % )et%"#e) e&%#$%t"! ! t(e st%te 3 rpr%te
s"%# resp!s"b"#"ty* It C$)e) t(e r%!">%t"!s ! t(e b%s"s 3 se&er%# esse!t"%# p%r%meters 3
rpr%te s"%# resp!s"b"#"ty* (ese p%r%meters
"!#$)e
1* +rpr%te G&er!%!e
2* B$s"!ess %!) t("%# Pr"!"p#es
.* !&"r!me!t%# +mp#"%!e
4* S"%# +mp#"%!e
5* D"s#s$re !&"r!me!t%# %!) S"%#* Pr)$t I!ter"ty
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September 200)
$!)erst%!)"! 3 t(e resp!)e!ts +SR %sp"r%t"!s6 "ss$es6 "mpe)"me!ts %!) e?pet%t"!s %!)
t (%&e e&")e!e-b%se) ;$%#"t%t"&e )%t% 3r % )es"!"! 3$t$re str%tey* Se!)#y6 "t %s t
3%"#"t%te p%rt""p%t"! r%!">%t"!s "! $!)erst%!)"! +SR %!) %ss"st "! % %p %!%#ys"s 3 t(e"r
respet"&e +SR pr%t"es %s % res$#t 3 t(e ;$est"!-%!ser press* (e ;$est"!!%"re
ser&e) t %#s st%!)%r)">e t(e "!3rm%t"! e?(%!e "! #"!e "t( % 3r%mer, b%se) ! % #b%#
be!(m%r,* S%mp#e ;$est"!!%"res %re %tt%(e) %s %ppe!)"es APPNDI A* Resp!ses
t %## t(ree ;$est"!!%"res ere rss #"!,e) %!) "!ter%te) 3r %! I!-)ept( ;$%#"t%t"&e %!%#ys"s*
Remme!)%t"!s ere prep%re) 3r t%,"! %t"! t%r) % N%t"!%# +SR Str%tey* (e
rese%r( 3"!)"!s %!) remme!)%t"!s ere prese!te) 3r &%#")%t"! t t(e #e%)ers 3 t(e
p%rt""p%t"! mp%!"es %!) t(er m%Cr st%,e(#)ers t(r$( %! Ape? +!s$#t%t"! press*
(e !s$#t%t"&e press re%te) #%rer %%re!ess %!) e!er%te) "!terest 3r %t"!s* see
m"!$tes %tt%(e)- APNDI B
:.1. Ben*hmar0$
(e RBI P"##%rs %!) t(e Perept"! m)e# "s )er"&e) 3rm t(e !s$#t%!ts #%# %!) &erse%s
e?per"e!e6 3 )e&e#p"! b$s"!ess %!) s"%# st%!)%r)s6 3%"r tr%)e r"ter"%6 +SR %!) reprt"!
"!)"%trs "!)epe!)e!t#y %!) %s % te%m member "t( I!ter!%t"!%# r%!">%t"!s s$( %s
UN+AD6 SAI6 GRI6 A$!t%b"#"ty6 F7O6 et* A))"t"!%# be!(m%r,s be"! $se) "! )"33ere!t
re"!s ere %#s re&"ee) t "!#$)e %## t(e &%r"$s perspet"&es re#%t"! t t(e 3%st-e&"!
t("!,"! ! +SR* A !$mber 3 +SR e?perts 3rm RBIs "!ter!%t"!%# ##%br%t"! p%rt!ers
ere %#s !s$#te) t et % b%#%!e) %ppr%( ("#e )es"!"! t(e t(ree ;$est"!!%"res*
(e %b#e e) r%!">%t"!s 3rm )"33ere!t re"!s
( (%&e p"!eere) %!) )e&e#pe) r %re "! t(e press 3 )e&e#p"! +SR t#s %!)
Be!(m%r,s* (ese "!#$)e $")e#"!es6 r"ter"%6 "!)"%trs6 be!(m%r,s6 3r%mer,s 3r
3%"#"t%t"! %!) "mp#eme!t"! +SR
*
Tab=e 6/#.7
5#, RESEARCH FINDINGS
;.2. Da&a Ana,$($
O!"! )eb%te ! ( $!tr"es %re %"!"! mpet"t"&e %)&%!t%e $s"! +SR %s %
m%!%eme!t t# re3#ets t(e "mprt%!e t("s %ppr%( (%s 3r mp%!"es !t"!$$s#y
see,"! t(e !e?t 3rm$#% 3r s$ess* (ere "s e&")e!e t(%t !%t"!%# str%te"es %re be"!
RGION BN+MARKS by
U UN+AD6GRI6 F7O6 I7O6 r%!sp%re!y
UK A$!t%b"#"ty6 BI+ 6FS4G)
US BSR6 G+6 SAI6 O+D
As"% P%"3" BI+6 +SM6 ++SR6 IB76PBSP6RBI
S$t( A3r"% AI+SR
S$t( Amer"% t(s
Mea8
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)e&e#pe) t 3%"#"t%te rpr%t"!s &erme "mpe)"me!ts t(%t pre&e!t t(em 3$#3"##"! t(e"r
rpr%te s"%# resp!s"b"#"t"es*
I3 +SR "s t be re%r)e) %s %! "!ter%# p%rt 3 b$s"!ess )e"s"!m%,"!6 "t mer"ts % p#%e "! %
mp%!ys re m"ss"!6 &"s"! %!) &%#$e st%teme!ts6 s$"!t#y re#%te) t "ts b$s"!ess %#s*
("s rese%r( 3$!) H;$%#"ty %!) H$stmer s%t"s3%t"! %s %sp"r%t"! &%#$es $rr"!
3re;$e!t#y "! rpr%te st%teme!ts6 e) ! )$bt t t(e !s$mer )em%!) 3r s$( %tt"t$)es
3rm b$s"!ess %!) t(e re%#">%t"! t(%t t(ey %33et t(e bttm-#"!e* 7",e"se6 per(%ps %s %!
"!)"%t"! 3 t(e (%!"! p%r%)"m6 m"ss"! r &"s"! st%teme!ts 3 mp%!"es %sp"r"! 3r %
Hs"%##y resp!s"b#e "m%e 3re;$e!t#y re3er t "! Hbey!) mere pr3"t r Hre%t"! s"%#
&%#$e 3r st%,e(#)ers*
Res$#ts 3 t("s st$)y6 )"s$sse) be# "! )et%"# s( t(%t P%,"st%!" rpr%t"!s6 b%rr"! %
(%!)3$# 3 e!terpr"ses6 rem%"! $ts")e 3 t(e +SR m%"!stre%m* +SR t("!,"! "s st"## !3"!e) t
% se#et 3e ( 3te! be#"e&e p("#%!t(rpy t be resp!s"b"#"ty* +SR #e%)ers resp!)"! t
;$er"es "! !!et"! "t( t("s rese%r( stress t(%t P%,"st%!" b$s"!esses m$st #e%r! 3%st t r")e
t(e +SR b%!)%!* Ot(er"se t(ers "! t(e re"! $#) be!e3"t 3rm t(e %"!s "!
mpet"t"&e %)&%!t%e*
Frm t(e 3"!)"!s 3 t("s rese%r( (%t %ppe%rs t be % pr"r"ty "s % #e%r %!) re%#"st"
%ppre"%t"! 3 t(e b$s"!ess %se 3r +SR %!) t(e system" %)&%!t%es "t bests ! t(e )%y
t )%y r$!!"! 3 % mp%!y* S+Ps ree!t e33rts "!)"%te t(%t "t m%y be best p#%e) t
pr&")e t(e #e%)ers("p 3r %("e&"! !se!s$s ! % N%t"!%# +SR Str%tey )e&e#pe) t(r$(
% !s$#t%t"&e press %!) t(e %t"&e "!&eme!t 3 t(e rpr%te %!) "t">e!s setrs6 %!) t(e
p%tr!%e 3 &er!me!t m"!"str"es )"ret#y r,"! 3r tr%)e prmt"!*
;.1. Re$'!n$e Ana,$($
O&er 100 mp%!"es ere "!&"te) t p%rt""p%te "! t("s s$r&ey* (ey represe!te) t(e 3##"!
setrs
1* e?t"#e
2* b%
.* P(%rm%e$t"%#s
4* F$e# : !ery5* +(em"%# : Fert"#">er
* +eme!t : B$"#)"!
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F$( 65#.7
O3 t(e mp%!"es "!&"te) t p%rt""p%te6 %b$t .5 resp!)e) t t(e s$r&ey ;$est"!!%"re*
M$#t"!%t"!%#6 3$e# %!) e!ery6 %!) 3"!%!"%# "!st"t$t"!s s(e) %t"!s +SR "s % !e %!)
%#"e! !ept %!) "t %ppe%rs t(ere "s s"!"3"%!t res"st%!e t%r)s %)pt"! +SR best
pr%t"es p%rt"$#%r#y %m! 3%m"#y !e) b$s"!esses* Resp!)e!ts !3"rm t(%t t(ere "s
% pere"&e) %ppre(e!s"! 3 Hett"! e?pse) "t( re%r) t t(e"r re#%t"&e#y #
mp#"%!e "t( e&e! e?"st"! m%!)%try re;$"reme!ts6 %!) %sp"r"! t m%Cr +SR
be!(m%r,s "!re%ses t("s 3ee#"! 3 &$#!er%b"#"ty*
.* La: '? Learn$n( Mst 3 t(e mp%!"es ( %ree) t p%rt""p%te "! t(e s$r&ey
e?presse) )"33"$#ty "! resp!)"! t t(e ;$est"!!%"re be%$se e"t(er t(e ;$est"!s !
+SR ere !t $!)erst) "t("! t(e !te?t 3 b$s"!ess r spe"3" )%t% ere !t %&%"#%b#e
0 10
20
.0
40
50
0
>y perept"! 3 +SR me%!s t(ey typ"%##y ) !t (%&e e## 3rme)
"!"t"%t"&es t )e&e#p +SR str%te"es "! t(e"r r%!">%t"!s* D%t% pr&")e) by resp!)e!t
mp%!"es "! t(ese setrs s( t(%t mp%!"es %re $!%b#e t re#%te t(e"r b$s"!ess pr%t"es
%!) mm$!"ty "!ter3%e "t( +SR6 !r "s t(ere ")espre%) e&")e!e 3 %!y s$bst%!t"%#
!str$t"&e %t"&"ty t )e&e#p % +SR "!3r%str$t$re "! t(ese r%!">%t"!s* Resp!ses re&e%#
t(%t ert%"! mp%!"es 3ee# t(e"r p("#%!t(rp" e!)e%&$rs %re +SR "!"t"%t"&es*
P%,"st%!" mp%!"es (%&e %! $!3$sse) perept"! 3 b$s"!ess et("%# pr"!"p#es* Fe (%&e
ert%"! br"bery !tr# p#""es ("( t(ey t("!, e!mp%ss t(e mp#ete b$s"!ess et("%#
pr"!"p#es re) b,* e?t"#e6 3te%r6 %!) eme!t "!)$stry typ"%##y #%, t%"#re) p#""es t $rb
rr$pt"!6 ("( %! be % pss"b#e setb%, 3r ;$%#"ty "! b$s"!ess* (e 3$e# : e!ery setr
%,!#e)e) rpr%te &er!%!e6 b$s"!ess et("%# pr"!"p#es %!) pr)$t "!ter"ty %s t(e
p%r%meters 3 pr"m%ry "mprt%!e "! +SR*
O! %&er%e mp%!"es %re s(y 3 %)m"tt"! t(e"r p$rs$"t t%r)s b$s"!ess %!) 3"!%!"%#
be!e3"ts 3r t(e 3e%r 3 be"! pere"&e) %s !t be"! Hs"%##y resp!s"b#e* S"m"#%r#y
e!&"r!me!t%# %!) s"%# mm"tme!t t%r)s "!ter!%# 3%trs #",e emp#yees6 m%!%eme!t6
r,p#%e e!&"r!me!t "s !t re3#ete) "! m%!y mp%!"es )e3"!"t"! 3 +SR* A!) ;$"te
$!)erst%!)%b#y6 mp%!y resp!ses s( % e!er%# #%, 3 %%re!ess %b$t t(e emer"!
#b%# prspet"&e 3 +SR*
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.# CSR P'=$:@
O3 t(e mp%!"es pr&")"! )%t%6 mst %re e!%e) "! +SR %s % m"!"m%# mp#"%!e
re;$"reme!t r "! resp!se t spe"3" #"e!t )em%!)* O3te! "t "s pss"b#e t )r% t(e
!#$s"! t(%t +SR %t"&"ty "! % mp%!y "s "!$!t%ry %!) %s s$( )r"&e! !t by rpr%te
&%#$es b$t by !eess"ty* e&er6 mp%!"es ) )e#%re p("#%!t(rp" prCets6 sme 3 ("(
%re "! p#%e 3r )e%)es6 %s e&")e!e 3 t(e"r mm"tme!t t +SR* I!terprete) "t("! t(e
$rre!t p%r%)"m6 t(ese t(er"se %)m"r%b#e %ts ) !t m%,e % mp%!y 3%## "! t t(e +SR
mp#"%!t %tery*
I! %))"t"!6 t(ere %re mp%!"es ( (%&e C$st be$! %)&ert"! t +SR6 %!) %! be terme) %s
be"! "! t(e HA%re!ess st%e* (ese m%y 3te! be mp%!"es ( (%&e tr%)"t"!%##y
s$pprte) mm$!"ty prCets b$t (%&e !#y ree!t#y bee! "!tr)$e) t +SR %s %! $mbre##%
term t(%t "mp#"es mm$!"ty "&"!* O3te! t(ese mp%!"es 3"!) t(emse#&es "! t(e press
#e%r!"! (%t +SR %t$%##y me%!s6 %!) (y "t "s "mprt%!t 3r t(e"r m%!%eme!t pr%t"e %!)
rpr%te "m%e*
0# CSR Pra:9$:e8
7ess t(%! 50 3 resp!)e!ts 3%## "!t t(e H+mp#"%!e %tery6 % st%e (ere % mp%!y
e?("b"ts % e!er%# %%re!ess 3 +SR pr"!"p#es6 bCet"&es %!) be!e3"ts* (ese mp%!"es
typ"%##y t%,e "!terest "! tr%"!"! t(e"r m%!%eme!t %b$t +SR %!) %re 3$!) 3$s"! !
)e&e#p"! +SR p#""es* (ey %re see! re&"e"! t(e"r p("#%!t(rp" %t"&"t"es %!) e&%#$%t"!
t(e"r mm$!"ty "mp%t "t("! t(e"r re!ee) +SR r"e!t%t"!* +mp%!"es %t t("s st%e s(
t(%t t(ey %re bem"! mre !s"$s 3 e!&"r!me!t%# %!) s"%# "mp%t "ss$es %r"s"! %s %
res$#t 3 t(e"r "!)$str"%# %t"&"ty* Mst %re !temp#%t"! r %t$%##y "mp#eme!t"! me%s$res t
"mpr&e t(e"r +SR "mp%t* (e te?t"#e6 3"!%!"%#6 #e%t(er : 3te%r6 eme!t : b$"#)"!6 %!)
te#emm$!"%t"! setrs6 %## %ppe%r %t t("s st%e 3 +SR )e&e#pme!t*
I! terms 3 %)pt"! mp%!y-")e +SR p#""es r str%te"%##y "mp#eme!t"! +SR6 t("s st$)y
3"!)s !#y m$#t"!%t"!%#s r #%re !%t"!%#s "t( "!ter!%t"!%# %33"#"%t"!s %t"&e#y e!%e) %t t(e
pr%t"%# #e&e#* ("s "s pr"m%r"#y be%$se 3 #b%# p#"y $!"3rm"ty %m! "!ter!%t"!%#
b$s"!esses6 )es"!e) t br"! &er%## !3rm"ty "t( (e%) 33"es &erse%s* (ese mp%!"es
e?("b"t % 3$s ! "!ter!%# st%,e(#)ers* Sme %re "! t(e press 3 $stm">"! t(e"r (e%)
33"e p#""es t P%,"st%!s #%# e!&"r!me!t* Am!st !%t"!%# mp%!"es6 t(se be#!"!t t(e (em"%#s6 "# : %s %!) t(se per%t"! "! t(e ser&"e setr %re "! t(e e%r#y st%e 3
+SR )e&e#pme!t* (ese mp%!"es re&e%# % )es"re 3r )e&e#p"! t(e"r +SR str%te"es %!)
%re "! t(e press 3 )"! s* (ey s( e##-3rm$#%te) b$s"!ess et("s p#""es6 re%r) 3r
st%,e(#)ers6 %!) e!er%##y ) reprt"! str$t$res* (ey 3te! (%&e prCets ("(
!tr"b$te t t(e mm$!"ty %!) e!&"r!me!t6 e** %ste m"!"m">%t"!6 rey#"! %!) p##$t"!
pre&e!t"!* (ey %#s s( e&")e!e 3 e!$r%"! mp#"%!e t +SR st%!)%r)s %m!
t(e"r s$b!tr%trs %!) s$pp#"ers*
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September 200)
M$#t"!%t"!%# mp%!"es "! t(e 3$e# : e!ery6 %!) !s$mer setrs %ppe%r t be "mp#eme!t"!
+SR p#""es t % re#%t"&e#y re%ter e?te!t %s mp%re) t t(e"r peers* (ey pr&")e "!)"%t"!s
3 %))ress"! e!&"r!me!t-re#%te) "ss$es6 "mp#eme!t"! emp#yee-re#%te) best pr%t"es %!)
mm$!"ty s$pprt prr%ms*
2# CSR Per?'rman:e
("s st$)y %! st%te "t( re%s!%b#e !3")e!e t(%t !#y % (%!)3$# 3 resp!)e!t mp%!"es
seem t be !er!e) %b$t t(e #! term "mp%t 3 t(e"r +SR p#""es6 s$( %s rpr%te
&er!%!e6 %!t"-rr$pt"! me%s$res6 )"s#s$re6 %!) press- %!) pr)$t "!ter"ty* ("s
rese%r( $#) !t 3"!) ")espre%) e&")e!e 3 re#"%b#e %!) &er"3"%b#e me%s$reme!t presses
t %$e t(ese "mp%ts6 r st%,e(#)er 3ee)b%, me(%!"sms t(%t %! (e#p "mpr&e ! r
(%!e t(e !%t$re 3 t(ese %t"&"t"es*
Te 2 P38
(e %)pt"! 3 +SR st%rts "t( #e%r $!)erst%!)"! %!) r"(t perept"! 3 G#b%# +SR
)eb%te6 ,!"! (%t %t$%##y +rpr%te S"%# resp!s"b"#"ty re%##y me%!s %!) (y "t "s
"mprt%!t t %)pt +SR pr%t"es* O!e % mp%!y (%s % #e%r !ept t(e 3"rst step "s t t(e
s( mm"tme!t %!) (%&e +SR re3#ete) "! t(e"r m"ss"! %!) &"s"! s "t prress t t(e
st%e 3 )e&e#p"! +SR p#""es t $")e m%!%eme!t "! "mp#eme!t"! t(em %!) t re%te
%%re!ess %m! emp#yees t %)pt t(ese p#""es* %&"! #e%r %!) re#%te) p#""es "s !t
e!$( 3r % s$ess3$# +SR prr%m* (e t("r) %!) mst "mprt%!t st%e "s t(e Hpr%t"eH 3
"mp#eme!t"! e## est%b#"s(e) systems t 3## t(e p#""es 3r "!ter"ty6 &er!%!e6
m%r,et"! pr%t"es6 s"%# %!) e!&"r!me!t%# mp#"%!es6 )"s#s$re %!) t(er +SR
p%r%meters* (e s$ess 3 % +SR prr%m %!) "!"t"%t"&es !ee)s t be me%s$re) t "mpr&e
t(e !"! +SR pr%t"es %!) prCets6 t($s t(e per3rm%!e !ee)s t be b&"$s %!)
tr%!sp%re!t* ery 3e mp%!"es %t prese!t %re see! t be %t t(e 3$rt( st%e (ere t(ey %re
%b#e t re%p b$s"!ess be!e3"ts 3 t(e"r e33rts*
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F$( 64#.7
(e F" 9*2 "##$str%tes t(e st%es "! ("( )"33ere!t r%!">%t"!s p%rt""p%t"! "! t("s st$)y
%re see! "!* (e F"$re m%ps t(e setrs-"se e!er%# st%te 3 +SR ! perept"!6 p#"y6
pr%t"e %!) per3rm%!e* P%rt""p%t"! setrs (%&e bee! #$r-)e) %!) p#%e) "!
&er#%pp"! b$bb#es ("( represe!t )"33ere!t st%tes 3 +SR t(e H4-Ps283 +SR embe))e)-
!ess* +mp%!"es "! te?t"#e6 te#em %!) 3"!%!"%# setrs %re "! t(e &er#%pp"! %re%s betee!
Perept"! %!) P#"y ("( "!)"%tes t(%t t(ey %re "! % tr%!s"t"! betee! t(e t st%es*
(ey (%&e )e&e#pe) % perept"! %b$t +SR %!) %re $rre!t#y !temp#%t"! t )e&e#p %
+SR P#"y* +mp%!"es "! te(!#y %!) ser&"es setr 3%## "! t(e &er#%pp"! re"!
betee! P#"y %!) Pr%t"e* It "s "!)"%t"&e 3 t(e 3%t t(%t t(ese mp%!"es (%&e )e&e#pe)
p#""es t br"! +SR "! t(e"r r%!">%t"!%# "!3r%str$t$re %!) %re $rre!t#y str$#"! t )ep#y
t(em* +!s$mer )s m%!$3%t$r"! m$#t"!%t"!%#s %re "! t(e m"))#e set"! 3 t(e 3"$re
("( "!)"%tes better perept"!6 p#""es %!) sme pr%t"es "! p#%e %!) try"! t %$e t(e"r
per3rm%!e* b% "s e%, "! perept"! b$t (%s % p#%e "! t(e per3rm%!e "r#e %s "t (%s
tr"e) t e&%#$%te "!ter&e!t"!s t(r$( s"%# reprt"! %!) %ttempts t me%s$re t(e "mp%t 3
t(e"r "!ter&e!t"!s t(r$( st%,e(#)er I!&eme!t %!) %ssessme!t*
M!$& C!m'an(e$ are $&( (n &he (n(&(a P!(*, De)e!'men& $&a-eM!$& C!m'an(e$ are $&( (n &he (n(&(a P!(*, De)e!'men& $&a-e
Per:e%9$'nK!#e)e %!)$!)erst%!)"!
3 +SR
P'=$:@De&e#p"! %+SR p#"y
Pra:9$:e+SR p#""es
"mp#eme!te) t"mpr&e
r%!">%t"!%#e33"%y
Per?'rman:eMe%s$r"! Imp%t
mp%!y mpet"t"&ee)e
F$nan:$a=
F''9"ear
Te=e:'m
Te;9$=e
S
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+,#, STATE OF CSR
RBIs H+SR P"##%rs ere $se) t be!(m%r, t(e st%te 3 +SR "! P%,"st%!* %( p%r%meter
%s 3$rt(er %ssesse) %%"!st #b%##y %,!#e)e) st%!)%r)s6 e&%#$%t"! t#s6 e&"! +SR
)e3"!"t"!s %!) "!)"%trs6 %s e## %s #e%r!"! t(r$( "!ter%t"! "t( I!ter!%t"!%# b$s"!ess
%!) +SR r%!">%t"!s* =$est"!s %$e) mp%!y ,!#e)e %tt"t$)e %!) perept"!s
KAP re#%te) t e%( Hp%r%meter6 &%#")%te) t(r$( e?"st"! )es6 r$#es6 p#"y6 st%!)%r)
per%t"! pre)$res SOPs %!) "mp#eme!t%t"!*
RBI38 CSR P$==ar8
+G +rpr%te G&er!%!eB B$s"!ess t("%# Pr"!"p#es+ !&"r!me!t%# +mp#"%!e
S+ S"%# +mp#"%!eDR D"s#s$re : Reprt"!P Pr)$t I!ter"ty++ G"&"! : +mm$!"ty I!&estme!tS St%,e(#)er "!&eme!tFP F"!%!"%# Per3rm%!eSS S$pp#y +(%"! Se$r"ty
+,#+# C'r%'ra9e G'>ernmen9
+rpr%te G&er!%!e "s t(e mst "mprt%!t p"##%r 3 +SR* It %ts %s t(e $mbre##% 3r %## +SR
%t"&"t"es %!) e!s$res t(%t t(e rpr%t"! "s )"rete)6 %)m"!"stere) r !tr##e) 3%"r#y by "ts
s(%re(#)ers6 m%!%eme!t %!) t(e b%r) 3 )"retrs* +rpr%te G&er!%!e "s !er!e)
"t( (#)"! t(e b%#%!e betee! e!m" %!) s"%# %#s %!) betee! "!)"&")$%# %!)
mm$!%# %#s* (e rpr%te &er!%!e 3r%mer, "s t(ere t e!$r%e t(e e33""e!t $se
3 res$res %!) e;$%##y t re;$"re %$!t%b"#"ty 3r t(e ste%r)s("p 3 t(se res$res* S+P
%#re%)y (%s "! p#%e % +)e 3 +rpr%te G&er!%!e t(%t %## #"ste) mp%!"es m$st mp#y
"t( %!) reprt "! t(e m%!)%try %!!$%# reprt*
+rpr%te &er!%!e "s mm!#y re3erre) t %s % system by ("( r%!">%t"!s %re )"rete)
%!) !tr##e)* It "s t(e press by ("( mp%!y bCet"&es %re est%b#"s(e)6 %("e&e) %!)
m!"tre)* +rpr%te &er!%!e "s !er!e) "t( t(e re#%t"!s("ps %!) resp!s"b"#"t"es
betee! t(e b%r)6 m%!%eme!t6 s(%re(#)ers %!) t(er re#e&%!t st%,e(#)ers "t("! % #e%#
%!) re$#%try 3r%mer,* I! t)%ys 3%st p%e) rpr%te %!) "!)$str"%# rt(6 t(ere "s %
#b%# %ppre"%t"! 3 t(e rpr%te &er!%!e pr"!"p#es 3 resp!s"b"#"ty6 %$!t%b"#"ty6
tr%!sp%re!y %!) 3%"r!ess*
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F$( 6+,#+7
("s rese%r( s(s t(%t mp%!"es (%&e % 3%"r $!)erst%!)"! 3 t(e !ee) t !3rm t t(e
rpr%te &er!%!e p%r%meter "! r)er t beme resp!s"b#e* Mre t(%! 50 3 t(e
resp!)e!ts %&e rpr%te &er!%!e t(e ("(est pr"r"ty %s % +SR me%s$re* +!s$mer
pr)$ts %!) (em"%# m%!$3%t$r"! mp%!"es s(e) % str!er !ept$%# $!)erst%!)"!3 rpr%te &er!%!e %#! "t( t(e !eess%ry "!3r%str$t$re6 )$me!t%t"!6 p#""es %!)
pre)$res "! p#%e* (ey s(e) !3")e!e t(%t str! rpr%te &er!%!e p#"y (e#ps "!
be%t"! rr$pt"! %!) %s % res$#t "mpr&es b$s"!ess %s e## %s "m%e*
(e 3"!%!"%# setr %ss"!e) tpmst pr"r"ty t rpr%te &er!%!e %!) b$s"!ess et("s
pr"!"p#es* +rpr%te &er!%!e %!) b$s"!ess et("s pr"!"p#es (%!) "! (%!)