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CSR in Pakistan

- The researcher conducted interviews and reviewed reports to study corporate social responsibility in Pakistan. They found CSR is still a new concept influenced by cultural and religious values rather than Western models. - Most CSR activity focuses on philanthropy in areas like health, education and welfare rather than responsibility to other stakeholders. Some industries have set ethical standards but practices are inconsistent overall. - The study involved interviews with 16 companies from various industries about their CSR policies, priorities, barriers and objectives to understand CSR in Pakistan's business environment.

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Sharif Jan
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141 views

CSR in Pakistan

- The researcher conducted interviews and reviewed reports to study corporate social responsibility in Pakistan. They found CSR is still a new concept influenced by cultural and religious values rather than Western models. - Most CSR activity focuses on philanthropy in areas like health, education and welfare rather than responsibility to other stakeholders. Some industries have set ethical standards but practices are inconsistent overall. - The study involved interviews with 16 companies from various industries about their CSR policies, priorities, barriers and objectives to understand CSR in Pakistan's business environment.

Uploaded by

Sharif Jan
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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From Principles to Practice

Exploring Corporate Social responsibility in Pakistan Jas Ahmad


Middlesex University Business School
22 May 2006

Findings of the research - 1


Western-style corporate social responsibility is clearly a nascent concept in Pakistan The motivation for CSR, the types of CSR emphasised, and the relative importance of different CSR activities are influenced by cultural values and religious belief There are external pressures driving the adoption of CSR values and practices in the country There is evidence of financially substantial CSR activity in Pakistan both in the corporate sector and by high net worth businessmen

Findings of the research - 2


A considerable proportion of activity is directed towards socio-political causes such as health, education and social welfare Social responsibility appears to be limited to concepts of corporate (and personal) philanthropy Relatively little attention is being paid to responsibility towards other stakeholders, such as customers Some industries are setting standards of ethical and socially responsible behaviour Inconsistencies prevail and there are considerable gaps between best practice and common practice including examples of socially irresponsible behaviour.

Methodology
A mixed method approach
questionnaire-based semi-structured interviews scanning of English language press and institutional reports expert opinion

Questionnaire based on World Bank report on CSR reporting in developing countries (ORourke, 2004) The semi-structured interviews conducted with chief executive officers or senior directors of 16 companies The sample was non-random and network based A cross-section of companies approached based on industry type, ownership, and size.

Profile of Companies Surveyed


Company size by number of employees
Less than 250 251-1000 More than 1000 25.0 43.8 31.3

Ownership structure
100% publicly owned Partly owned by individual/family 100% privately owned Less than 10 million 11 million 50 million 51 million 100 million More than 100 million 50.0 25.0 25.0 25.0 31.3 25.0 18.8

Turnover in last financial year in USD

*All figures percentage of companies surveyed

Factors upon which corporate social obligations depend

Type of industry

31%

Size of company

38%

Financial performance of company

75%

Percentage of sample companies

Importance of a companys social responsibility to different stakeholders


Type of stakeholder
Percentage* rating very important or important

Employees Customers Shareholders Local community Suppliers Business partners Society at large Other investors

100 81 81 63 63 50 38 31
*Rounded to the nearest whole number

Engagement in different types of CSR activities


Type of activity
Percentage* engaged in activity

Making regular financial contributions Making occasional financial contributions Collecting donations from employees Sponsoring events Allowing employees to volunteer expertise Providing free use of company facilities Donating surplus office equipment

69 94 75 88 56 50 75

*Rounded to the nearest whole number

Business objectives CSR helps to achieve/will help to achieve


Business objective
Now Future

Enhance company share price Enhance company reputation Increase sales Attract and retain high calibre employees Promote international business strategies Promote domestic business strategies Retain government support Enhance corporate brand positioning Help to withstand the impact of a corporate crisis

25 94 44 69 56 38

31 94 69

75
63 56 31 81 38

19
75 31

*Rounded to the nearest whole number

Importance of and written policies on different aspects of CSR


Business objective
Percentage rating very important or somewhat important Percentage with written policy

Environmental protection Employee welfare Health and safety Philanthropic and charitable activities Investment in local community development Environmental and social impact of operations Ethical management of supply chain Ethical and socially responsible marketing

87.5 100 93.8 87.5 56.3

37.5 87.5

75
25 12.5 12.5 43.8 25

62.5
75 56.3

Main driver for company engagement in CSR


56.3 Personal interest of CEO/MD

25

Customer demand

12.5

Board of Directors initiative

6.3

Part of company mission/value

20

40 Percentage of sample companies

60

80

Perceived barriers to CSR engagement

43.8 43.8 12.5 Attitude of employees 31.3 31.3 0 10 20 30

Lack of awareness Costs

Lack of knowledge and expertise No link to business objectives 40 50 60 70 80

Percentage of sample companies

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