Corporate Social Responsibility Report 2008
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CORPORATE SOCIAL RESPONSIBILITY REPORT 2008 Towards new challenges LIVING OUR VISION Sustaining Value Throughout the Company’s presence in Pakistan, initially Pg # as Esso and now as Engro, the organization has strived to Table Of Contents ensure that we cultivate a tradition of clearly stating our successes, and failures, with all those who are an integral Living our Vision: Sustaining Value part of Engro’s family, i.e. our stakeholders. This report is a continuation of that tradition, detailing the numerous ac- Chairman’s Message tivities that the Company undertakes to add and sustain value for those very stakeholders. Letter from the President and CE Growth through Diversification Engro endorses the “triple bottom line” philosophy and believes that “profits, people and planet” all are critical ECPL’s Financial Success in 2008 elements for its success as a company. To demonstrate - Urea Expansion Project - Technical Services its commitment to this philosophy, Engro became the first - Employee Relations and Organization Development Pakistani company to become a signatory of the UN Glob- - Joint Venture & Subsidiary Companies al Compact (UNGC) in 2005. It has remained an active member ever since and has regularly issued the annual Health, Safety, Environment and Quality Communication on Progress (COP) reports, which are duly Environmental Footprint 2008 posted on UNGC’s website. In addition, Engro is among the select few Pakistani companies that employ the Glob- Social Investments al Reporting Initiative (GRI) framework for measuring and Performance Report 2008 / Corporate Objectives 2009 reporting corporate performance on economic, social and environmental parameters. UN Global Compact and GRI 3 Performance Indicators Corporate Governance With the completion of our expansion in 2010, and the am- bitious diversification of Engro’s businesses, we look forward Assurance to even newer challenges. In addition to these challenges, Acknowledgements we will also continue our efforts towards being good Cor- porate Citizens, aiming to prevent the wastage of natural resources, developing the human capital that works with us, and ensuring that the success we earn is shared with all stakeholders, be it our shareholders, investors, employ- ees or the communities that are deeply integrated into our core functions Chairman’s MESSAGE PRESIDENT & CEO’s MESSAGE CORE VALUES At Engro, we live by our core values. Though all Profits cannot be sustained over the long run with- twelve are significant, two of these are particularly out due deference to concern for ‘people’ and the sacred. The first golden value requires us to “care ‘planet’. At Engro, these concerns are taken extreme- INDIVIDUAL GROWTH & DEVELOPMENT how results are achieved, demonstrate ly seriously -- both in the board room as well as when honest and ethical behavior and always manufacturing and marketing our product. ETHICS ANDLEADERSHIP INTEGRITY EXTERNAL & COMMUNITY INVOLVEMENT choose the course of highest integrity”. For our shareholders, we made record profits during We have leaders of high integrity. energy and 2008 – up 34% percent at Rs 4.2 billion from 3.2 billion in The second golden value requires us to “manage INNOVATIONenthusiasm who have the 2007, with our market share of Urea being the second CANDIDnecessary managerial, & OPEN COMMUNICATIONS and utilize resources and operations in such INNOVATION highest in Pakistan. We are the single biggest corpo- professional and people skills to a way that we ensure the safety and health INDIVIDUAL GROWTH & DEVELOPMENT Successcontinually requires usstrive to to TEAMWORK & PARTNERSHIP inspire a group or an organization rate Pakistani investor in the country, with our biggest to set high goals and achieve of all integrally linked with Engro. We are produceDIVERSITY break through & INTERNATIONAL FOCUS investment, to increase our urea production capacity ETHICS AND INTEGRITY solutions and services to them willingly. We believe that ideas that result in improved leadership skills need to be conscious that our safety, health and en- ronments in which to 2.3 million tons, costing over a billion dollars. EXTERNAL & COMMUNITY INVOLVEMENTcustomers. We encourage challengesand seek to the organizational status quonurtured and strengthenedour organization at all levels and within that vironmental responsibilities extend beyond envi developed. ENJOYMENT & FUN ideas are generated, managerial and profes- protection and enhancement of our own sional mpetencenecessary is a For our employees, we strive hard to create an envi- ENTHUSIASTICfoundation. PURSUIT OF PROFIT facilities.” INNOVATION ronment where the work is exciting, the workspace is CANDID & OPEN COMMUNICATIONS safe, diversity is respected, and initiatives recognized TEAMWORK & PARTNERSHIP LEADERSHIP and awarded. All operations - manufacturing or otherwise - consider safety to be paramount, with safety These two values provide the foundations for our behavior as a responsible corporate citizen. We obey all SAFETY, HEALTH & QUALITY & CONTINUOUS IMPROVEMENT milestones set as per international best practices, particularly since our alignment with Dupont standardsDIVERSITY in & INTERNATIONAL FOCUS INDIVIDUAL local laws – tax, corporate governance, environment, consumer and labor, and always strive for interna- ENVIRONMENT GROWTH & 2003. These have resulted in record achievements in areas such as Lost Work Injury (LWI) and Total Record- SAFETY, HEALTH & ENVIRONMENT tional best practices, with comprehensive policies guiding employees on ethics and business practices. DEVELOPMENT able Injury Rate (TRIR). We are now targeting OSHA compliance in occupational health and Industrial hy- ENJOYMENTWe will manage and utilize resources & FUN and operations in such a way that the safety and giene by the next year. In 2009, we also aim to implement policies to facilitate employees to better balance ENTHUSIASTIC PURSUIT OF PROFIT We strongly believe in the dignity and value of More important than adopting policies is implementation. Strict internal audits are in place health of our people, our neighbours. our custom- people. We must consistently treat each other and we ensure zero-tolerance for any violation of our ethics guidelines. In 2008, the extremely their work and personal lives, and to establish a harassment free work place. ers and our visitors is ensured. We believe our safety, with respect and strive to create an organiza- health and environmental responsibilitiesINDIVIDUAL extend GROWTH & DEVELOPMENTtional environment in which individuals are exhaustive Quadrennial Business Practices Review (QBPR) was completed and the results LEADERSHIPbeyond protection and enhancement of our encouraged and empowered to For our urea customers, the farmers, we provide products that increase farm productivity. In 2008, our field own facilities, and we are concerned about were shared with every employee and corrective actions were taken. QUALITY & CONTINUOUS IMPROVEMENT ETHICS ANDcontribute, growINTEGRITY and develop teams met some 50,000 farmers to speak about better nutrition and related farm technologies. We also the distribution, use and after use disposal themselves and help to develop of our products. EXTERNAL & COMMUNITY INVOLVEMENT SAFETY, HEALTH & ENVIRONMENT each other. Similarly, Health, Safety and Environment concerns are central to our day to day activities, in passed on around Rs 21 billion of subsidy to farmers. which executives are required to conduct periodic safety audits. Several other institutional mechanisms are in place to ensure that safety is paramount in every decision and every For our neighbors and the wider public, we ensure that all our products are harmless; our operationsCANDID are & OPEN COMMUNICATIONS INNOINTERNATIONALVDIVERSITYATION & CANDID & OPEN COMMUNICATIONS safe, harmful effluents are not released into the environment.Efforts in this direction include plans for an CANDID & OPEN COMMUNICATIONS process. We value differences in QUALITY & gender, race, nationality,FOCUS environmental audit by the British Safety Council in 2009 to assess internal benchmarks as we work towards culture, personalityTEAMWORK and style & PARTNERSHIPCONTINUOUS TEAMWORK & PARTNERSHIP TEAMWORKIMPROVEMENT & PARTNERSHIP operational excellence. In addition to providing direct and indirect jobs, we contribute to society by offer- approachesbecause and diverse structures solutions, are This 2008 CSR report provides many details of our performance on these and other related issues. The an- DIVERSITYmore likely to meet the& needs INTERN of ATIONAL FOCUS relentlessWe believe commitment that quality to continu and a - ing health, education and other related facilities. In 2008, 1% of profit before tax was dedicated for such ous improvement are essential to our nual CSR report allows us to evaluate our performance, compare ourselves with international best practice, customers and achieve our DIVERSITY & INTERNATIONAL FOCUS ongoing success. To this end, we social contributions. define quality as understanding the and renew our commitment to improve our standards, and reaffirm our resolve to abide by the principles Corporate Responsibility ENJOYMENT & FUN business goals. customer's expectations, agreeing of the United Nations Global Compact. ENTHUSIASTICon performance and value,PURSUIT and OF PROFIT We will utilize our expertise and outreach to build alliances with stakeholders – government, providing products and services ENJOYMENT & FUN Report ENJOYMENT & FUN other industries, civil society organizations –