csr final project about csr practices of different comapnies
TRANSCRIPT
CORPORATE SOCIAL RESPONSIBILITY
MAKING RESPONSIBLE INVESTMENT DECISIONS
TEAM PROJECT REPORT
SUBMITTED TO:
DR. ZAHID RIAZ
SUBMITTED BY:
ANS GHOURIL1F12MSMG0043
HAFIZ MUHAMMAD NAWAZL1F12MSMG0044
MS MANAGEMENT SCIENCES
UCP BUSINESS SCHOOL1
TABLE OF CONTENT
SR. NO CONTENT PAGE NO
02 Objective 03
03 CSR Practices in DG Cement Before Ordinance 04
04 CSR Practices in DG Cement After Ordinance 07
05 CSR Practices in Maple Leaf Cement Before Ordinance 11
06 CSR Practices in Maple Leaf Cement After Ordinance 14
07 Comparison of DG & Maple Leaf CSR practices 18
08 Recommendation 19
09 References 20
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OBJECTIVE OF THE REPORT
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The objective and main purpose of this Team Project is to examine in impact of S.R.O.
983(I)/2009 issued by issued by Securities and Exchange Commission of Pakistan, in
business and its performance by examining the following aspects of corporate social
responsibility in depth.
Corporate social responsibility rationale
The credibility of firm claims
Similarities and differences in the approaches of their program
We have selected two KSE 100-index listed companies of same nature. These are D.G Cement
and Maple Leaf. We will analyze them empirically with each other and over two year’s analysis
that realize Corporate Social Responsibility reports and their initiatives and impact on their
financial performance. This report gives comprehensive investigation on CSR done by
companies, last five year CSR performance. Our findings will show us the exact relationship of
CSR and firm’s performance.
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CSR PRACTICES OF DG CEMENT
COMPANIES CORPORATE SOCIAL RESPONSIBILITY BEFOREGENERAL ORDER, 2009 (S.R.O. 983(I)/2009)
DG CEMENT COMPANY IN 2007
Company is not giving any disclosure of its corporate social responsibility but there are some of the company’s projects which can be considered as its CSR.Corporate philanthropy
Company contributed for the construction of road towards its factory.Energy conservation
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Sr.no OBLIGATIONS
BEFORE ORDINANCE
AFTER ORDINANCE
2007 2008 2010 2012
01 Corporate philanthropy YES YES YES YES
02 Energy conservation -- -- YES YES
03 Environmental protection measures YES YES YES YES
04 Community investment and welfare schemes YES YES YES YES
05 Consumer protection measures -- -- -- --
06 Welfare spending for under privileged classes -- YES YES YES
07 Industrial relations -- YES YES YES
08 Employment of special persons -- -- -- YES
09 Occupational safety and health -- YES YES YES
10 Business ethics and anti-corruption measures -- -- YES YES
11 National cause donations -- -- YES YES
12 Contribution to national exchequer YES YES YES YES
13 Rural development programmes YES YES YES YES
Company has no any energy conservation plant or project.Environmental protection measures
Company comply with the national environmental standards Community investment and welfare schemes
Company has made arrangements to provide drinking water to local residents free of cost at different locations as per the needs of the residents.
Consumer protection measures There is no work done by the organization in this regard.
Welfare spending for under-privileged classes No such activity in annual report
Industrial relations Company has fully complied with the best practices on Transfer Pricing as contained in
the Listing Regulations of Stock Exchanges in Pakistan.Employment of special persons
There is no special person employed in the company in 2007.Occupational safety
Operation of the system responsibilities, awareness & training, documentation operational control, departmental objectives and emergency preparedness/ response has not been implemented at different levels.
National-cause donations There is no significant work in national cause donations.
Contribution to national exchequer Company paid Rs. 135,780,000 as tax to the government in 2007.
Rural development programmes The company has provided building and complete infrastructure to this school. In
addition company gives monthly subsidy to partly cover the running expenses. our company spent Rs. 5.74 million against Rs. 3.11 million last year on account of school related expense.
DG CEMENT COMPANY IN 2008
Company is not giving any disclosure of its corporate social responsibility but there are some of the company’s projects which can be considered as its CSR.
Corporate philanthropy Company contributed for the construction of road towards its factory started in 2007.
Energy conservation Company has no any energy conservation plant or project.
Environmental protection measures Company complies with the national environmental standards since 2005.
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Community investment and welfare schemes Company has made arrangements to provide drinking water to local residents free of cost
at different locations as per the needs of the residents. Consumer protection measures
There is no work done by the organization in this regard.Welfare spending for under-privileged classes
A training centre for the 50 unemployed women in Dera Ghazi Khan. Industrial relations
Company has fully complied with the best practices on Transfer Pricing as contained in the Listing Regulations of Stock Exchanges in Pakistan.
Employment of special persons There are no special persons employed in the company in context of corporate social
responsibility in 2008.Occupational safety
Operation of the system responsibilities, awareness & training, documentation operational control, departmental objectives and emergency preparedness/ response has not been implemented at different levels.
National-cause donations There is no significant work in national cause donations.
Contribution to national exchequer Company paid Rs. 235,684,000 as tax to the government in 2008.
Rural development programmes The company has provided building and complete infrastructure to the school. In addition
company gives monthly subsidy to partly cover the running expenses. Our company spent Rs. 3.11 million against Rs. 2.29 million last year on account of school related expense.
COMPANIES CORPORATE SOCIAL RESPONSIBILITY AFTER GENERAL ORDER, 2009 (S.R.O. 983(I)/2009)
DG CEMENT COMPANY IN 2010Company is a responsible corporate citizen and fully recognizes its responsibility towards community, employees and environment in 2010.
Corporate philanthropy Company contributed for the construction of Choa saiden shah bye-pass road. In addition
we also rebuilt factory road at D.G. khan site for smooth and safe transportation.Energy conservation
The management of company is so keen about the global warming and playing its part to cut down the use of fossil fuels to its minimum. For this purpose they have put a project
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of power generation from waste heat recovery. Earlier these heat and gases were going in the air. The company has spent about Rs. 2.0 billion on this project. This project is expected to save about 20k tons of fossil fuel annually and put its favorable impact on environment by reducing green house gases.
Environmental protection measures A complete environment management system is in place at D.G. khan cement and it
provides a complete systematic approach to comply with natural environmental quality standards. Traditionally, cement plants are considered to be environmentally hazardous but company has installed most modern and state of the art equipment for dust collection. Needed quantity of bag filters and electrostatic precipitators have been installed to collect the dust and waste gases and feed them again in the system?
Community investment and welfare schemes Water is in short supply in surrounding area of our production facilities. Company has
made necessary arrangements to provide drinking water to local residents free of cost at different locations as per the needs of the residents.
Consumer protection measures There are no consumer protection measures for consumers in the annual general report.
Welfare spending for under-privileged classes D.G. khan cement fully realizes the role of local community and always gives maximum
preference to local resident for employment opportunities. in addition, several social community projects by management of D.G. khan cement have been placed to uplift the living standards of local residents
Industrial relations The transactions between the related parties were made at arm's length prices determined
in accordance with the comparable uncontrolled prices method. The company has fully complied with the best practices on transfer pricing as contained in the listing regulations of stock exchanges in Pakistan.
Employment of special persons There is no any special person employed in the company.
Occupational safety Being a safety conscious company your management has placed stiff occupational
standards keeping in view the potential threats and associated risks. For operation of the system responsibilities, awareness & training, documentation operational control, departmental objectives and emergency preparedness/ response have been implemented at different levels. Consistent adherence to the system and continual improvements are ensured by periodic management reviews.
Primary focuses of these standards are:o Prevent injuries and damage to health of employees, contractors, visitors and the
company's infrastructure.o To make workplaces safer that meets or surpasses legislative and other
requirements applicable.o Establish measurable objective and targets that are reviewed periodically to ensure
continual improvements.o To provide awareness and information to all the employees, contractors and
visitors.Health
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A free medical centre and hospital has been established providing medical facilities to the locals of the area at both the manufacturing facilities. A team of male and female doctors with paramedic staff has been appointed to provide round the clock medical services to the local residents. In addition fully equipped ambulance service is also available to transfer the emergency patients to nearby hospitals.
National-cause donations Company is fully aware of the miseries of the flood affected people. In this regard,
company provided food to 300 people daily twice a day in the D.G. khan area. In addition, DGKC also provided shelter in the form of tents to hundreds of families. Going forward, employees of the company have also surrendered their one day salary for the flood affected people
Contribution to national exchequer Company paid Rs. 2, 60,492,000 as tax to the government in 2010.
Rural development programmes D.G. khan cement is fully aware of its responsibility towards imparting education to
future generation. For this purpose company has established a school named Dera model school which is run by a trust. All the expenses are borne by the company. In addition, a branch of renowned Bloomfield school is also running at the company premises. The company has provided building and complete infrastructure to this school. In addition company gives monthly subsidy to partly cover the running expenses. Our company spent Rs. 11.292 million Against Rs. 9.790 million Last year on account of school related expense. About 500 students are currently enrolled in both the schools.
DG CEMENT COMPANY IN 2012In 2012, company is not giving any disclosure of its corporate social responsibility and not maintains its annual reports according to the S.R.O. 983(i)/2009.
Corporate philanthropy Company contributed for the maintenance of Choa saiden shah bye-pass road. In addition
they also rebuilt factory road at D.G. khan site for smooth and safe transportation.Energy conservation
Company has put a project of power generation from waste heat recovery. Earlier these heat and gases were going in the air. The company has spent about Rs. 2.5 billion on this project. This project is expected to save about 20k tons of fossil fuel annually and put its favorable impact on environment by reducing green house gases.
Environmental protection measures Traditionally, cement plants are considered to be environmentally hazardous but your
company has installed most modern and state of the art equipment for dust collection.
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Needed quantity of bag filters and electrostatic precipitators have been installed to collect the dust and waste gases and feed them in the system? The plants of the company not only comply with the national environmental standards but also surpass the standards set by the World Bank.
Community investment and welfare schemes Water is in short supply in surrounding area of our production facilities. Company has
made necessary arrangements to provide drinking water to local residents free of cost at different locations as per the needs of the residents. The company has spent huge amount to lay down the required pipelines.
Consumer protection measures There in no consumer protection measures for consumers in the annual general report.
Welfare spending for under-privileged classes Several social community projects by management of D.G. khan cement have been
placed to uplift the living standards of local residentsIndustrial relations
Company has fully complied with the best practices on transfer pricing as contained in the listing regulations of stock exchanges in Pakistan.
Employment of special persons There are 5 special persons employed in the company in context of corporate social
responsibility in 2012.Occupational safety
Being a safety conscious company your management has placed stiff occupational standards keeping in view the potential threats and associated risks. For operation of the system responsibilities, awareness & training, documentation operational control, departmental objectives and emergency preparedness/ response have been implemented at different levels.
Health Free medical centre and hospital has been established providing medical facilities to the
locals of the area at both the manufacturing facilities. a team of male and female doctors with paramedic staff has been appointed to provide round the clock medical services.
Business ethics and anti-corruption measures Company has also provided financial assistance for the new campus of U.E.T at
Chakwal. Going forward, students of Ph.D. programs from local universities as well from abroad are associated with professionals of your company for their thesis and research work.
National-cause donations There is no significant work in national clause donations. Company did some work in
flood caused by rains in Dera Ghazi Khan.Contribution to national exchequer
Company paid Rs. 55,652,000 as tax to the government in 2012.Rural development programmes
A branch of renowned Bloomfield school is also running at the company premises. The company has provided building and complete infrastructure to this school. In addition company gives monthly subsidy to partly cover the running expenses. Our company
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spent Rs. 12.574 million against Rs. 11.292 million last year on account of school related expense. About 500 students are currently enrolled in both the schools.
CSR PRACTICES OF MAPLE LEAF
Sr.no OBLIGATIONS
BEFORE ORDINACE
AFTER ORDINACE
2007 2008 2010 2012
01 Corporate philanthropy YES YES YES YES
02 Energy conservation -- YES YES YES
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03 Environmental protection measures -- -- -- YES
04 Community investment and welfare schemes -- -- YES YES
05 Consumer protection measures -- -- -- YES
06 Welfare spending for under privileged classes -- -- -- --
07 Industrial relations YES YES YES YES
08 Employment of special persons -- -- -- YES
09 Occupational safety and health -- -- -- YES
10 Business ethics and anti-corruption measures YES YES YES YES
11 National cause donations -- -- -- YES
12 Contribution to national exchequer YES YES YES YES
13 Rural development programmes -- -- -- --
COMPANIES CORPORATE SOCIAL RESPONSIBILITY BEFOREGENERAL ORDER, 2009 (S.R.O. 983(I)/2009)
MAPLE LEAF 2007
Corporate philanthropy Donated 11.30 million to in construction of Sayeed Saigol Cardiac Complex at the Gulab
Devi Hospital, Lahore.Energy conservation
No such activity in annual reportEnvironmental protection measures
No such activity in annual reportCommunity investment and welfare schemes
No such activity in annual report
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Consumer protection measures No such activity in annual report
Welfare spending for under-privileged classes No such activity in annual report
Industrial relations The Company has allocated Gratuity, Provident fund as shown in financial statements Company has been assigned long term rating of ‘A’ (single A) and short term rating of
‘A1’ (A one) by Pakistan Credit Rating Agency (Pvt) Ltd (PACRA).Employment of special persons
No such activity in annual reportOccupational safety and health
No such activity in annual reportBusiness ethics and anti-corruption measures
The Company follows legal procedures, through its management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations by developing a statement of ethics and business practices and code of corporate governance as shown in annual reports.
National-cause donations No such activity in annual report
Contribution to national exchequer Paid income tax Rs. 20,450000 Paid excise duty Rs. 1,024,041 Paid sales tax Rs. 705,845
Rural development programmes. No such activity in annual report
MAPLE LEAF 2008
Corporate philanthropy Donation to Rs. 14.150 million this year Sayeed Saigol Cardiac Complex at the Gulab
Devi Hospital, Lahore. This project is at finishing stage and is expected to commence operations soon.
Donations for the year have been given to:o Gulab Devi Hospital, Lahore Rs.14150000o District Court Mosque, Mianwali Rs. 29000o National Counsel for Rehabilitation of Disabled Persons Rs.72000
None of the directors or their spouses has any interest in any of the doneesEnergy conservation
Company has established a Waste Heat Recovery Plant which will reduce the process costs when it goes into production in February 2010.
The plant will produce approximately 15 MW of electric power on a sustainable basis.
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Environmental protection measures No such activity in annual report
Community investment and welfare schemes No such activity in annual report
Consumer protection measures No such activity in annual report
Welfare spending for under-privileged classes No such activity in annual report
Industrial relations The Company has allocated Gratuity, Provident fund as shown in financial statement Loan facility for employees as shown in financial statement for building houses.
Employment of special persons No such activity in annual report
Occupational safety and health No such activity in annual report
Business ethics and anti-corruption measures The Company follows legal procedures, through its management standards and
procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations by developing a statement of ethics and business practices and code of corporate governance as shown in annual reports.
National-cause donations No such activity in annual report
Contribution to national exchequer Paid income tax Rs. 45,281 Paid excise duty Rs.1,564,801 Paid sales tax custom duty and Rs. 1,061,681
Rural development programmes. No such activity in annual report
COMPANIES CORPORATE SOCIAL RESPONSIBILITY AFTER GENERAL ORDER, 2009 (S.R.O. 983(I)/2009)
MAPLE LEAF 2010
Corporate philanthropy Construction of Sayeed Saigol Cardiac Complex at the Gulab Devi Chest Hospital,
Lahore has now been completed and handed over to the administration of Gulab Devi Chest Hospital, Lahore.
Kohinoor Maple Leaf Group has also received an award on account of its performance of various social obligations during the year 2008-09 at the 4th Corporate Social Responsibility (CSR) Award Ceremony held on 21st January, 2010 at Karachi.
Contributed different amount as donationo Gulab Devi Hospital, Lahore Rs.6000000o Misc. donations in form of cement Rs.280000
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o National Counsel for Rehabilitation of Disabled Persons 100000o General Hospital, Lahore o Internally Dislocated People (IDP)
Energy conservation The Company adopted coal as a more cost efficient and environmentally friendly fuel for
kiln firing and is exploring possibilities of alternative and cheaper fuel such as waste firing to reduce cost.
Environmental protection measures No such activity in annual report
Community investment and welfare schemes Donated Rs.3505000 for social and welfare projects of community.
Consumer protection measures No such activity in annual report
Welfare spending for under-privileged classes No such activity in annual report
Industrial relations The Company has allocated Gratuity, Provident fund in financial statements. Loan for employees Rs.6804000
Employment of special persons No such activity in annual report
Occupational safety and health No such activity in annual report
Business ethics and anti-corruption measures The Company follows legal procedures, through its management standards and
procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations by developing a statement of ethics and business practices and code of corporate governance as shown in annual reports.
National-cause donations No such activity in annual report
Contribution to national exchequer Paid income tax Rs. 296506 Paid excise duty Rs.1618793 Paid sales tax custom duty and Rs. 1349218
Rural development programmes. No such activity in annual report
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MAPLE LEAF 2012
Corporate philanthropy The Company has been recognized by Pakistan Centre for Philanthropy as a leader in
social and charitable contributions. Kohinoor Maple Leaf Group has received “5th Corporate Social Responsibility National
Excellence Award” on account of its performance in various projects. The Company has contributed in medical social sciences project and in this regard, has
donated a state of the art Cardiac facility to the Ghulab Devi Chest Hospital (GDCH) in Lahore by constructing Sayeed Saigol Cardiac Complex (SSCC) at GDCH.
Energy conservation Energy crises is getting severe day by day in Pakistan. We have developed a team energy
that is striving to get the best possible alternative sources like efficient usage of Waste Heat Recovery Boiler and other alternatives including waste, rice husk and carbon black.
Safety health and environmental protection measures In 2011, the Company has successfully started Waste Heat Recovery Boiler Plant.
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The Company encourages awareness in these areas amongst our employees, customers, suppliers and all those who are associated with us in our activities.
The Company’s goal in respect of safety, health and environments to minimize all adverse environmental and health impacts arising out of our operations and to conserve all kinds of resources and adhere to all legal regulations.
Maintenance of health and safety standards at our plants and offices is our top priority. Managing health and safety risks associated with our business and are actively working
towards improving our procedures to reduce, remove or control the risk of fire, accidents or injuries to employees and visitors.
Provide a safe and healthy workplace for its employees and to act responsibly towards the communities and environment, in which it operates.
Management takes all possible measures to prevent unsafe activities by its hiring practices and through the implementation of effective management, human resources and operational policies
Consumer protection measures We ensure that our products are shipped in a safe manner complying with safety
standards and legal requirements. The Company takes care and applies appropriate procedures to manufacture cement
products so as to ensure that no harmful substances are present in its products.Community investment and welfare schemes & welfare spending for under-privileged classes
Providing financial assistance to projects for society development by various charitable institutions on consistent basis.
Industrial relations The Company has set procedures, rules and regulations which regulate employment
guidance. The Company has allocated Gratuity, Provident fund and Worker's Profit Participation
Fund for its employees. Appropriate opportunity is provided to employees to participate in Collective Bargaining
Agreement (CBA) activities and to elect representative of their choice. The Company is committed to provide equal opportunity to all existing and prospective
employees without any discrimination on the basis of religion, gender, race or age etc. We encourage our employees through several rewards and recognition programs.
Employment of special persons The Company has employed disabled persons in compliance with the rules set out by the
Government of Pakistan which is 2% quota of the total workforce necessitated to be allocated to disabled persons
Business ethics and anti-corruption measures The Company, through its training, management standards and procedures, aims to
develop a disciplined and constructive control environment in which all employees understand their roles and obligations.
Employees are encouraged to report any deal that may be supported by kickbacks. No employee is allowed to run a parallel business.
Company is maintaining sophisticated Oracle based online software using which any employee can report the non-conformance (NC) to the top management.
National-cause donations Donation for Sindh flood stricken Donation for Shaukat Khanum Hospital
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Donated in form of cement for construction of different social projects.Contribution to national exchequer
The Company has contributed an amount of Rs. 1,776 million towards national exchequer in shape of taxes, duties, cess, levies etc.
The Company has also contributed through earnings of valuable foreign exchange amounting to US$ 34 million.
Rural development programmes. No such activity in annual reports.
COMPARISON OF CSR PRACTICES
Sr.no OBLIGATIONS
BEFORE ORDINANCE AFTER ORDINANCE
2007 2008 2010 2012
ML DG ML DG ML DG ML DG
01 Corporate philanthropy YES YES YES YES YES YES YES YES
02 Energy conservation -- -- YES -- YES YES YES YES
03 Environmental protection measures -- YES -- YES -- YES YES YES
04 Community investment and welfare schemes -- YES -- YES YES YES YES YES
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05 Consumer protection measures -- -- -- -- -- -- YES --
06 Welfare spending for under privileged classes -- -- -- YES -- YES -- YES
07 Industrial relations YES -- YES YES YES YES YES YES
08 Employment of special persons -- -- -- -- -- -- YES YES
09 Occupational safety and health -- -- -- YES -- YES YES YES
10 Business ethics and anti-corruption measures YES -- YES -- YES YES YES YES
11 National cause donations -- -- -- -- -- YES YES YES
12 Contribution to national exchequer YES YES YES YES YES YES YES YES
13 Rural development programmes -- YES -- YES -- YES -- YES
RECOMMENDATIONS
Before the application of S.R.O. 983(1)/2009, the Maple Leaf cement company was more
socially responsible in terms of corporate social responsibility as compare to D.G Cement. The
company was engaged in many social projects in health care and contribution to national
exchequer.
After the analysis of both D.G Cement and Maple Leaf cement with reference to Corporate
social responsibility we find that both the companies are socially responsible citizen after the
S.R.O. 983(1)/2009 issued by Securities and Exchange Commission of Pakistan. Both
Companies are providing descriptive as well as monetary disclosures of the Corporate Social
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Responsibility activities undertaken by it during each financial year. Maple Leaf Cement is more
socially responsible as compare to D.G Cement. Maple Leaf Cement has also received an award
on account of its performance of various social obligations during the year 2008-09 at the 4th
Corporate Social Responsibility (CSR) Award Ceremony held on 21st January, 2010 at Karachi.
Than Maple Leaf Cement has received 5th Corporate Social Responsibility National
Excellence Award on account of its performance in various projects in 2012.
REFERENCES
DG Khan Cement Company Annual reports 2007, 2008, 2010 and 2012
Maple Leaf Cement Factory Limited Annual reports 2007, 2008, 2010 and 2012
Corporate Social Responsibility General Order, 2009, Pakistan
www.secp.gov.pk/corporatelaws/pdf/CSR.pdf
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