CONTEMPORARY ISSUES IN BUSINESS Class Assignment Corporate Social Responsibility
Number of Words: 998
By: Atif Ullah Sher (006) Presented to: Sir Nabeel Javeed Date: 19th December 2012
Corporate Social Responsibility An Introduction
Research broadly denes CSR as a companys status and activities with respect to its perceived societal or, at least, stakeholder obligations (Brown and Dacin, 1997). Corporate Social Responsibility is concerned with treating the stakeholders of a company or institution ethically or in a responsible manner (Michael Hopkins, 1998, 2011). Ethically or responsible' means treating key stakeholders in a manner deemed acceptable according to international norms. Due to the positive effects of CSR participation and the negative effects of CSR violation, most companies today not only pay attention to CSR issues, but also actively participate in CSR activities. Brickley et al. (2002) also acknowledged that a companys reputation for socially responsible behavior constitutes an important part of its brand capital. In fact, cause-related marketing aims to enhance company revenues and sales through product differentiation by creating socially responsible attributes associated with brands (Varadarajan and Menon, 1988). As indicated by Smith and Higgins (2000): the brand manager uses consumer concern for business responsibility as a means for securing competitive advantage. In todays highly competitive market environment, many companies have used CSR as a strategic tool to respond to expectations of various stakeholders such as media, public opinion, nongovernment organizations and even consumers, to thus create a favorable corporate image (Jones, 2005). In reality, companies have regarded CSR activities as a necessity, thus urging managers to contemplate how to implement CSR activities consistently with their business strategy (Porter and Kramer, 2006). Social and ethical behavior and responsibility on the part of the corporate companies demand that these companies be involved in CSR and try utilizing their resources, which are enormous, for the betterment of the society at large. The same demands are also placed on the companies by the Societal Marketing concept companies should work for the attainment of their profit goals along with working for the well being of the society.
CSR at Kohinoor Textile Mills
About KTML The Company commenced operation in 1953 as a private limited company and became a public limited company in 1968. It is one of the oldest companies of Pakistan with over 50 years experience in textile manufacturing. The company has a diverse customer base with sales in both the local and export markets. The main international markets include Asia, Europe, USA and Australia. CSR Initiatives Contrary to many other organization of Pakistan who are using CSR activities just as a marketing tool for the promotion of their brands and products. KTML strongly
believes in socially responsible behavior and its maintenance in the long run. The company has the plants for the following processes: Spinning, Weaving, Processing, Bleaching and Printing and stitching. KTML produces 100% export products and has worlds top conglomerates like Walmart, M&S UK, Target and Myers Australia etc as customers. Because these customer companies themselves are involved in CSR, they make sure that their suppliers are also socially responsible. In order to ensure this, they continuously send teams to check the CSR initiatives at KTML. Environmental Safety KTML has also initiated a Waste Water treatment plant so that it can treat its waste water for the prevention and preservation of the natural environment. KTML has one of the most extensively developed system of plants operating at their full capacity for the production of its various arrays of products. A team has been allocated with the responsibility for identification of Health, Safety and Environmental Hazards at work place. Furthermore, this team reports the same to the concerned departments for taking the corrective and preventive actions. The overall working environment is quite safe and healthy and the workers carry on performing their duties and responsibilities without having any tension of safety measures. Social Compliance The Company continues to meet and exceed the health and safety standards required for SA 8000 certification. Frequent audits are conducted by customers, regulatory agencies, and the Company's own audit teams in order to ensure compliance with these standards and those set by the Company's customers. KTML follows and meet all the requirements of SA-8000 standards and believe in socially responsible trading. Policies of social compliance that are adhered to are as follows: Health and Safety Child Labor Forced Labor Discrimination Freedom of association and right of Collective Bargaining
CSR Awards The Company has been recognized by the Pakistan Centre for Philanthropy as a leader in social and charitable contributions and strives to be a constructive member of the communities in which it has a presence. Kohinoor Maple Leaf Group has
consecutively received 5th Corporate Social Responsibility National Excellence Award 2010 on account of its performance of various social obligations during the year. The company has contributed in medical social services project and in this regard, it has donated a state of the art Cardiac facility to the Gulab Devi Chest Hospital (GDCH) in Lahore by building Sayeed Saigol Cardiac Complex at GDCH. Community Services Following community services are initiated by KTML: Textile Institute of Pakistan: Offers Bachelor Degree in Textile Management and Textile Science. KMLG is Founding Trustee. Lahore Art Gallery: Housed at our corporate Head Office is a non-profit organization promoting painting and sculpture. Aitchison College: Saigol House donated by KMLG in 1965. Ghulab Devi Hospital: Saigol Ward and Hall donation. Institute of Charted Accountants of Pakistan: Donation of Auditorium Chand Bagh School: Fully residential public School. Chairman, Board of Governors Mr. Tariq Sayeed Saigol (KMLG, Chairman). Lahore University of Management Sciences (LUMS): Mr. Tariq Sayeed Saigol is a member of Board of trustees and Mr. Sayeed Tariq Saigol MD, (KDML/MLECL) is a Member, Board of Governors. Kohinoor Government High School (Boys), No of students = 850 Kohinoor Government High School (Girls), No of students = 1200 Kohinoor Government High School (Boys/Girls), No of students = 800 These schools are owned by KTML to provide free and quality education to employees children. Later on nationalized in 1972, KTML is continuously providing administrative support to these schools.
References
Brown, T. J. and P. A. Dacin: 1997, The Company and the Product: Corporate Association and Consumer Product Response, Journal of Marketing 61(1), 6884. Michael Hopkins (1998, 2011): A Planetary Bargain: Corporate Social Responsibility Comes of Age (Macmillan, UK, 1998) Updated July 2011 Brickley, J., C. Smith and J. Zimmerman: 2002, Business Ethics and Organizational Architecture, Social Science Network Electronic Paper Collection, 250947. Varadarajan, P. R. and A. Menon: 1988, Cause-Related Marketing: A Coalignment of Marketing Strategy and Corporate Philanthropy, Journal of Marketing 52(3), 5874. Smith, W. and M. Higgins: 2000, Cause Related Marketing: Ethics and the Ecstatic, Business and Society 39(3), 304322. Jones, R.: 2005, Finding Sources of Brand Value: Developing a Stakeholder Model of Brand Equity, Brand Management 13(1), 1032. Porter, M. and M. Kramer: 2006, Strategy and Society: The Link Between competitive Advantage and Corporate Social Responsibility, Harvard Business Review 84, 7892. Kohinoor Textile Mills, Quality Assurance Department, Social Policy, Islamabad, Quality Assurance Department. Mr. Saqib Javed Farooqi (Quality Assurance Manager, KTML), 2012, CSR Initiatives of KTML, Interviewed by Atif Ullah Sher, face to face. Mr. Qamar (Quality Auditor, KTML), 2012, CSR Initiatives of KTML, Interviewed by Atif Ullah Sher, face to face.
