Corporate Philanthropy in

Survey of PUBLIC LISTED COMPANIES 2011

Pakistan Centre for Philanthropy Corporate Philanthropy in Pakistan

Survey of PUBLIC LISTED COMPANIES 2011

Pakistan Centre for Philanthropy

Acknowledgements

Executive Summary

Figure 1 Total Donations year (2000-11)

3,780 4,000 3,269 3,500 ) n

o 3,000 i l l i 2,330 2,352

M 2,239 2,500 R

K 1,865

P 2,000 ( 1,608

s n

o 1,500 i t a n

o 1,000 653 496 D 277 336 500 228

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

E x e c u t i v e s u m m a r y Table 1 Number of PLCs involved in Corporate Philanthropy

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Number of 263 268 282 287 283 299 329 290 277 307 276 285 Companies Giving

Total Satmple 50 0 551 565 568 552 551 5 46 53 5 548 5 42 532 490

Percentage of Sample involved 53% 49% 50% 51% 51% 54% 60% 54% 51% 57% 52% 58% in Corporate Philanthropy

C O R P O R A T E P H I L A N T H R O P Y I N P A K I S T A N : S U R V E Y O F P U B L I C L I S T E D C O M P A N I E S

Acronyms

CEO Chief Executive Officer Co. Company CP Corporate Philanthropy CSOs Civil Society Organizations CSR Corporate Social Responsibility GDP Gross Domestic Product GoP Government of Pakistan HBL KSE Stock Exchange Ltd. Limited MNCs Multinational Companies NGOs Non-Governmental Organizations PBT Profit Before Tax PCA Petroleum Concession Agreement PCP Pakistan Centre for Philanthropy PKR Pakistani Rupees PLCs Public Listed Companies PPL Limited SECP Securities and Exchange Commission of Pakistan PuLCs Public Unlisted Companies

1 The Survey

The objective of the study 'Corporate their giving trends and preferred medium of Philanthropy in Pakistan, a Survey of Public Listed channelizing the donations. It also presents a list of Companies, is to analyze the giving patterns the top 25 philanthropic PLCs in Pakistan, and their within the country's corporate sector, in terms of rankings. This survey is the eighth in the series volume, and its effectiveness, with respect to how pertaining to corporate philanthropy, and and where these philanthropic efforts are documents giving practices of the PLC universe for channelized. The report documents the quantum the year 2011. of giving by the Public Listed Companies (PLCs),

PCP Corporate Philanthropy Awards

T h e s u r v e y 01

C O R P O R A T E P H I L A N T H R O P Y I N P A K I S T A N : S U R V E Y O F P U B L I C L I S T E D C O M P A N I E S

Figure 3 Percentage contribution of Top25 Giving PLC's in 2011

Contribution of Top 25PLCs (As a % of Total Giving) Other (As a % of Total Giving)

26%

74%

Figure 4 Donations of top 25 giving PLCs by volume

Figure 4 gives a pictorial representation of total donations plunged again to PKR 69 million in 2009. However, the top for the past decade and for the year 2011. The chart 25 companies donated at an average of PKR 112 million in shows variations in the average giving between 2007 and 2011 compared to PKR 104 million in the preceding year, 2009 where the average donations increased from PKR showing an increase of 7.7%. 59 million in 2007 to PKR 75 million in 2008, and Individual Rankings

Table 7 Top 25 PLCs by Volume of Donations (2011) PKR Million

RANK COMPANY PBT DONATIONS

1 Pakistan Petroleum Limited 48,364.6 844.0 2 HBL 32,031.6 253.0 3 Oil & Gas Development Co. Limited 90,982.2 220.5 4 Limited 33,166.1 204.0 5 Limited (Formerly Engro Chemical) 11,459.0 117.0 6 4,320.5 89.8 7 Pakistan Services Limited 964.0 88.7 8 MCB Bank Limited 31,321.8 83.5 9 Limited 2,832.7 82.3 10 Limited 1,478.1 75.1 11 National Bank of Pakistan 26,011.2 73.2 12 Nestle Pakistan Limited 6,502.9 62.7 13 15,108.5 61.3 14 Indus Motor Company Limited. 4,011.5 57.4 15 17,974.4 57.3 16 Arif Habib Corporation Limited (Arif Habib Sec Limited) 3,184.1 55.5 17 24,222.8 53.9 18 J.D.W. Sugar Mills Limited 2,179.7 48.9 19 Limited 3,914.5 47.9 20 Pakistan Telecommunication Company Limited 11,413.9 46.6 21 Sapphire Fibres Limited 2,075.1 42.0 22 Sapphire Textile Mills Limited 1,774.0 38.5 23 The Limited 5,424.8 37.6 24 Limited 5,519.7 35.9 25 Limited 5,925.2 34.3 TOTAL 392,162.8 2,811.2

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In order to compare the current year's ranking with that of last year, the top twenty-five giving companies for 2010 are listed with their volume of giving in Table 8.

Table 8 Top 25 PLCs by Volume of Donations (2010) PKR Million

RANK COMPANY PBT DONATIONS

1 Pakistan Petroleum Limited 34,528.2 519.1 2 HBL 25,057.3 395.2 3 Fauji Fertilizer Company Limited 16,309.8 255.0 4 Engro Corporation Limited (Formerly Engro Chemical) 8,277.0 136.0 5 Fauji Fertilizer Bin Qasim Limited 9,685.8 131.0 6 Pakistan Services Limited 605.1 125.8 7 National Bank of Pakistan 24,415.1 121.1 8 Lucky Cement 3,417.5 104.1 9 Nestle Pakistan Limited 5,696.2 87.2 10 Limited 1,273.1 86.0 11 United Bank Limited 17,742.2 82.3 12 Bank AL-Habib 5,656.2 77.4 13 UniLever Pakistan Limited 4,780.3 63.7 14 Limited 1,368.7 63.5 15 Pakistan Company Limited 1,418.0 42.6 16 J.D.W. Sugar Mills Limited 1,951.9 41.0 17 Allied Bank Limited 12,343.1 38.3 18 Habib Metropolitan Bank Limited 4,026.3 35.9 19 LOTTE Pakistan PTA Limited 6,711.5 35.5 20 Siemens (Pakistan) Engineering Company Limited 1,578.3 31.3 21 Shell Pakistan Limited 3,044.1 30.7 22 Sitara Chemical Industries Limited 610.0 27.9 23 Shifa International Hospitals Limited 320.5 27.3 24 GlaxoSmithKline Pakistan Limited 1931.7 25.7 25 International Industries Limited 1,359.3 25.2 TOTAL 194,107 2,608

Pakistan Petroleum Limited maintains its first position in of donations decreased by 35% from PKR 395.15 the rankings 4 years in a row. There is a 62% increase in million to PKR 253 million in 2011. The Oil and Gas the company's volume of donations this year. HBL stood Development Company Limited, rankedthird this year second for two consecutive years, although their volume with PKR 220.5 million in donations. Table 9 Top 25 PLCs by Volume of Donations as % of PBT (2011) PKR Million

RANK COMPANY PBT DONATIONS % OF PBT

1 IGI Insurance Limited 56.6 22.2 39.2 2 Leiner Pak Gelatine Limited 1.0 0.4 36.4 3 Fateh Textile Mills Limited 5.0 0.9 18.5 4 Descon Chemicals Limited 1.2 0.2 18.0 5 Pak Datacom Limited 28.9 4.5 15.5 6 Pakistan Hotels Developers Limited 0.7 0.1 13.1 7 Cherat Cement Company Limited 55.2 5.8 10.5 8 Pakistan Services Limited 964.0 88.7 9.2 9 Al-Noor Sugar Mills Limited 59.9 5.5 9.1 10 Khairpur Sugar Mills Limited 46.4 3.3 7.1 11 ZIL Limited 33.1 2.3 6.8 12 Karam Ceramics Limited 12.2 0.8 6.3 13 Shifa International Hospitals Limited 367.5 20.0 5.4 14 Faysal Bank Limited 1,478.1 75.1 5.1 15 Pakistan Synthetics Limited 440.6 22.2 5.0 16 Ghandhara Industries Limited 7.8 0.4 4.5 17 Aruj Garment Accessories Limited 13.8 0.6 4.5 18 Premier Insurance Limited 90.0 4.0 4.5 19 Ados Pakistan 24.6 1.1 4.4 20 Sitara Chemical Industries Limited 609.9 24.9 4.1 21 Sitara Energy Limited 91.5 3.7 4.0 22 Sanghar Sugar Mills Limited 64.3 2.3 3.6 23 Fauji Cement Company Limited. 488.2 17.7 3.6 24 Ittehad Chemicals Limited 121.3 4.4 3.6 25 Service Industries Limited 534.6 18.6 3.5

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Table 10 Top 25 PLCs by Volume of Donations as % of PBT (2010) PKR Million

RANK COMPANY PBT DONATIONS % OF PBT

1 Karam Ceramics Limited 12.7 2.9 23.0 2 Pakistan Services Limited 605.1 125.8 20.8 3 Diamond Industries Limited 5.3 0.6 11.0 4 Askari General Insurance Company Limited 53.3 5.0 9.4 5 Thatta Cement Company Limited 1.8 0.2 8.8 6 Shifa International Hospitals Limited 320.5 27.3 8.5 7 Khairpur Sugar Mills Limited 37.7 3.2 8.4 8 First Paramount Modaraba 16.7 1.2 6.9 9 Askari Bank Limited 1,273.1 86.0 6.8 10 Leiner Pak Gelatine Limited 0.5 0.0 5.7 11 N.P. Spinning Mills Limited 123.0 6.9 5.6 12 Ghani Value Glass Limited 50.6 2.7 5.4 13 Metropolitan Steel Corporation Limited 64.3 3.0 4.7 14 Bank Alfalah Limited 1,368.7 63.5 4.6 15 Sitara Chemical Industries Limited 610.0 27.9 4.6 16 Service Industries Textiles Limited 2.9 0.1 4.4 17 American Life Insurance Company (Pakistan) Limited 133.4 4.9 3.7 18 Sitara Energy Limited 106.9 3.9 3.6 19 Liberty Mills Limited 542.0 18.0 3.3 20 Dadex Eternit 20.0 0.6 3.2 21 The Thal Industries Corporation Limited 234.6 7.6 3.2 22 Crescent Steel & Allied Products Ltd. 597.5 18.3 3.1 23 Ittehad Chemicals Limited 132.1 4.0 3.1 24 Lucky Cement 3,417.5 104.0 3.0 25 Limited 1,418.0 42.6 3.0

Table 10 shows the pattern of giving as a percentage of PBT giving per company within each of these 30 sub-sectors for the year 2010. Karam Ceramics Limited, which led the has also been calculated. The number of firms within each rankings in 2010, is placed at the 12th position for 2011. of these sectors varies greatly; therefore, the sector wise Similarly, Pakistan Services Limited dropped down to the ranking is presented taking the average donation by eighth spot in 2011 from the secondposition in 2010, with companies within each sector. Comparing the total volume donations as percentage of PBT decreasing from 20.8% to of donations of each sector otherwise would result in 9.2%. inaccurate outcomes.

Giving by sub-sectors

Giving by sub-sectors (Table 11) shows the giving by 30 sub-sectors identified by KSE. Furthermore, an average of Table 11 Sub-Sector Giving (2010) Number of Companies by Category PKR Million

AVG. DONATIONS NUMBER RANKING BY SECTOR BY SUB-SECTOR OF COMPANIES (PER FIRM) AVG. DONATIONS

OIL AND GAS 11 112.6 1 BANKS 21 34.9 2 TRAVEL AND LEISURE 4 23.2 3 SOFTWARE AND COMPUTER SERVICES 1 20.4 4 HEALTHCARE EQUIPMENT AND SERVICES 1 20 5 GAS WATER AND MULTI UTILITIES 2 18.1 6 CHEMICALS 31 16.3 7 INDUSTRIAL TRANSPORTATION 2 13 8 FIXED LINE TELECOMMUNICATION 5 11.1 9 INDUSTRIAL METALS AND MINING 6 8.1 10 AUTOMOBILE AND PARTS 15 6.1 11 ELECTRICITY 15 5.7 12 INDUSTRIAL ENGINEERING 10 5.2 13 CONSTRUCTION AND MATERIALS 33 4.3 14 FOOD PRODUCERS 49 4.1 15 GENERAL INDUSTRIALS 10 3.7 16 NON LIFE INSURANCE 16 2.6 17 PHARMA AND BIOTECH 9 2.57 18 PERSONAL GOODS 160 1.91 19 FORESTRY AND PAPER 3 1.5 20 ELECTRONIC AND ELECTRICAL EQUIPMENT 3 0.7 21 BEVERAGES 3 0.6 22 TOBACCO 3 0.6 23 HOUSEHOLD GOODS 9 0.5 24 LIFE INSURANCE 4 0.5 25 LEISURE GOODS 1 0.4 26 FINANCIAL SERVICES 27 0.3 27 EQUITY INVESTMENT INSTRUMENTS 31 0.1 28 MEDIA 3 0 29 REAL ESTATE INVESTMENT AND SERVICES 2 0 30

Table 11 depicts giving by sub-sectors that represent the firm. Twenty-one banks contributed PKR 34.9 million on major companies by the (KSE). average whereas; travel and leisure industry was ranked Figures show that the oil and gas industry, based on the third with the average donations amounting to PKR 23.2 data available for 11 companies, on an average, million. contributed the highest amount of PKR 112.6 million per

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An Overview Qualitative Review – 3 The Chemical Sector in Pakistan

Chemicals are a keystone of world feedstock either derived from primary industries manufacturing, as they are an integral or other alternative sources of raw material like component of all the manufacturing sub-sectors, coal, limestone, gypsum, rock salt, silica, and including pharmaceuticals, automobiles, textiles, sulphur. furniture, electronics, construction and appliances. They play a crucial role in the The chemical sector comprises of companies that country's economy and are an essential produce industrial chemicals, which are component in the production of items catering to important for the economy, as they convert raw basic needs such as, shelter, food, medicine, material into more than 70,000 different paint and other industrial products. The chemical products. This implies that the secondary sector in Pakistan is more varied than any other chemical firms rely on the primary chemical firms industry because the use of its end products is for feedstock and raw material to be used in universal. In Pakistan, as well as globally, this manufacturing, processing, blending, fabricating particular sector has been actively engaged in plants for petrochemical intermediates, polymers, philanthropic activities. plastics, steel, non-ferrous metals, minerals, agricultural and other miscellaneous products. The chemical sector of Pakistan is classified into two categories: Primary and Secondary Chemical The chemical sector of Pakistan comprises 31 Industry. Public Listed Companies (PLCs), which is approximately 6% of the total PLC universe as The Primary chemical firms are refineries, listed on the Karachi Stock Exchange (KSE). The petrochemicals, natural gas, metallurgical and annual reports for all the listed chemical firms mineral based projects. They also provide were obtained and their figures were analyzed to feedstock for the secondary chemical industry. present a clear picture of philanthropy within the The secondary chemical firms are based on sector.

Why Chemical Sector

Corporate Social Responsibility and corporate improvement of the local community through giving play an important role in this sector with waste management (materials recycling) and particular reference to carbon footprint, control of different forms of pollution. PCP's emissions, waste management, effluents etc., research found a promising commitment to which this sector is more susceptible to. The CSR Corporate Social Responsibility within the of the chemical industries is usually inbuilt in the chemical sector and a willingness to improve industries themselves. The very operation of some upon existing systems, as and when needed. of these major industries facilitates the Analysis

A qualitative sample survey was conducted to gather A list of public listed chemical companies in Pakistan is information on philanthropic giving of the chemical sector. given in the Table below.

Table 12 Donations by 31 Chemical Firms (2011) PKR Million

RANK COMPANY PBT DONATIONS

1 Fauji Fertilizer Company Limited 33,166.1 204.0 2 Engro Corporation Limited (Formerly Engro Chemical) 11,459.0 117.0 3 Arif Habib Corporation Limited (Formerly Arif Habib Securities Limited) 3,184.1 55.5 4 Sitara Chemical Industries Limited 609.9 24.9 5 I.C.I Pakistan Limited 3,147.0 24.3 6 Fatima Fertilizer Company 6,087.6 24.2 7 Fauji Fertilizer Bin Qasim Limited 16,169.9 13.0 8 LOTTE Pakistan PTA Limited 6,208.5 11.5 9 Gatron (Industries) Limited 774.3 10.3 10 & Chemicals -1,116.9 7.1 11 Ittehad Chemicals Limited 121.3 4.4 12 Sitara Peroxide Limited 179.4 2.6 13 Dawood Hercules Chemicals Limited 638.8 1.2 14 Clariant Pakistan 402.7 1.0 15 United Distributors Pakistan Limited 99.4 1.0 16 Ghani Gases Limited 85.0 0.9 17 Dynea Pakistan Limited 77.7 0.8 18 Biafo Industries Limited 236.6 0.5 19 Leiner Pak Gelatine Limited 1.0 0.4 20 Descon Chemicals Limited 1.2 0.2 21 Agritech Limited -1,180.3 0.2 22 Bawany Air Product 22.2 0.0 23 Descon Oxychem 436.4 0.0 24 Nimir Industrial Chemicals Limited 813.0 0.0 25 Shaffi Chemical Industries Limited -170.4 0.0 26 Pakistan PVC Limited 21.8 0.0 27 Mandviwalla Mauser Plastic Industries Limited -43.1 0.0 28 Sardar Chemical Industries Limited 4.0 0.0 29 Wah Nobel Chemicals Limited 97.8 0.0 30 Linde Pakistan Limited 402.7 0.0 31 Dewan Salman Fibre Limited -1,395.0 0.0 Total Donations (PKR million) 505.3 Average Donations per firm (PKR million) 16.3

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Of the total universe, comprising 31 chemical feedback by the specified deadline provided. PLCs, a 45% sample was drawn for in-depth One-on-one interviews were carried out with the interviews. This constituted 14 out of 31 chemical focal personnel in the companies. The firms. Response was received from 9 firms geographical distribution of the sample is as whereas 5 of them were unable to provide any follows:

S.No Company City

1 EngRroA NCKorporation Limited Karachi

2 Clariant PakistanLimited Karachi

3 LOTTE PPTA Limited Karachi

4 Arif Habib Corporation Limited Karachi

5 ICI Pakistan Limited Karachi

6 Ittehad Chemicals Limited Lahore

7 Ghani Gas Limited Lahore

8 Fauji Fertilizer Bin Qasim Limited

9 Gatron Industries Limited Quetta

Karachi: 5, Lahore: 2, Islamabad: 1,Quetta: 1 Findings

The overall findings show that the Chemical Total donations made by the Chemical sector in Sector has been active philanthropically over the Pakistan in 2011 amounted to PKR 505.3 million, last few years. Total giving by the Chemical Sector averaging to PKR 16.3 million per firm. This figure in 2009 and 2010 was PKR 81.6 million and PKR shows a decreasein the amount of philanthropy 644.8 million, respectively, owing to the relief generated compared to the preceding year. The efforts needed in areas devastated by the floods. upward mobility of philanthropic giving, in 2010, On an average, 24 chemical firms donated PKR can possibly be related to the floods in the country 3.4 million in 2009, whereas 31 chemical causing widespread devastation, and triggering companies donated, on an average, PKR 20.8 active emergency disaster relief and aid million in 2010. These figures reflect a substantial operations by the corporate sector. increase in the average amount of giving per firm. Role of the Corporate Sector

All the companies interviewed agreed that it is trust, which served as the hub for the majority of important for the corporate sector to identify its their donations. Of these, 88% of the trusts appropriate role in solving the social problems of implemented philanthropic programmes in the country, and that philanthropy is directly partnership with a CSO. This figure suggests a connected to social development. huge potential for synergistic partnerships between all the stakeholders (Corporate sector Of the total chemical companies interviewed in and CSOs) in order to facilitate social the survey, 38% reported having setup their own development in the country. Budgeting

The budget allocated for philanthropic activities philanthropic activities, depending on the profits by the chemical firms is usually not pre- made at the end of the fiscal year. Of these, 12% determined. The large majority of the firms of the firms said that they have a fixed budget, consider it to be completely needs based. irrespective of the sales & profits made, and is However, a certain percentage is allocated for adjusted to inflation every year. Preferred Thematic Areas

The findings reflect that the most preferred second most preferred area for philanthropic thematic areas for philanthropic activities (in donations was disaster relief management and chronological order) by the chemical industry are aid, owing to the occurrence of natural disasters education, disaster relief/rehabilitation, and every year. The chemical sector's primary concern health. The firms believe that an educated society is to provide disaster relief (food, shelter, clothing leads to better development of the Nation. The etc.) and rehabilitate the misplaced population.

The Process/Channelling Funds

Of the total chemical firms interviewed, 66% of the respondents believed that channelling funds & them ran philanthropic programmes by donations through the Government was the most partnering with Civil Society Organizations. On appropriate method since it has a greater the other hand, 22% of companies preferred to influence and outreach in the country, with a large donate directly to beneficiaries, whereas 12% of pool of resources. Employee Payroll Giving All of the companies surveyed stated that they did disaster. Employees who are willing to make a not have any system of employee payroll giving, contribution are provided the option of having the although, employees were encouraged to desired amount deducted at source. donate, especially during an event of a natural

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Types of Giving

It is worth mentioning that all the donations made donations in-cash. A lot of companies do not by the companies comprise in-cash giving. Other place a monetary value on their philanthropic forms of giving, such as in-kind and time activities such as time volunteered, in-kind gifts volunteered, were not included in the financial etc. headers. All the companies preferred to make Corporate Social Responsibility (CSR)

All the corporate entities agreed with the concept clearly defined CSR goals, which included of Corporate Social Responsibility. As many as recycling waste, reducing carbon footprint, health 33% of the companies had their CSR framework issues, and relief efforts and partnering with other designed by the Board. Of the total, 88% CSOs. All of the companies also agreed with the described CSR as measures adopted by the concept of CSR disclosure but only 22% published companies in managing the business processes to a standalone report on CSR annually. The pie produce an overall positive impact on the society, chart below illustrates the departments/personnel whereas 12% stated it as giving back to the responsible for setting the budget for society. All of the companies interviewed had philanthropic activities.

Department responsible for setting the philanthropic budget

Issues and Challenges The majority of the respondents were of the transparent, as most of the donations made to the opinion that the Government plays a vital role in Government were, in their view, not utilized creating an enabling environment for their effectively. ICI Pakistan believes that a business philanthropic endeavours. Respondents stated can only grow if the community around it grows; that the Government needs to take further which is only possible with the help of all the initiatives and support the companies to facilitate stakeholders involved. Their Community the philanthropic activities for social Investment Programme (CIP) is built around the development: their efforts should be appreciated business for increased synergy and to improve or through increased tax incentives, awards and strengthen the initiatives geared towards social recognition. Moreover, the process should be development. Innovative Stories

“If we have expectations from the Government, we should also support them.” – Mr. M. Asif Saad, CEO Lotte Pakistan Limited.

LOTTE Pakistan

LOTTE Pakistan has been actively engaged in During the 2010 floods, the parent company philanthropic efforts for social development since encouraged employees in Korea to donate funds the company started its operations in Pakistan – in Pakistan. An example of philanthropy by LOTTE initially under ICI / AkzoNobel and now LOTTE was the delivery of chocolate cupcakes to the PPTA since 1995.4 LOTTE Pakistan donated PKR flood and earthquake victims in the northern 11.5 million as donations, as per their annual areas of Pakistan. According to the CEO, this form report 2011. The majority of these funds go to the of in-kind giving was unique because the victims Prime Minister's disaster relief fund. The company needed something nourishing, apart from the believes that the Government plays a vital role in shelter they already received through different the social development and welfare of the Nation. sources.

Engro Corporation Limited

Engro has a very well established Corporate funds for the project while the management Social Responsibility set up. Their biggest ensured its sustainability as a continuing process. achievement to date, in this particular field, has One of the most appreciable aspects of the been the establishment of a 'Solar Village' in project was active participation of the company's Muzaffargarh district, Punjab, where the entire employees in the development of the village. The village is solar powered. Residences, parks, model is planned to be replicated and deployed hospitals, and everything else in the community in other rural areas of the Punjab as well. are entirely solar powered. Engro Trust provided

4 http://www.lotte- ppta.com/history.htm

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Clariant Pakistan Clariant Pakistan has a manufacturing plant set In order to reduce the toxic chemical waste up in Jamshoro. The water supply to the plant is emitted by the plant, a reverse osmosis ensured through an 8 km pipeline, which draws mechanism is installed which recycles the water directly from the Indus River. As part of their outgoing waste water and directs it back to the philanthropic efforts, Clariant has installed a plant. water purification plant at the manufacturing facility. The purified water is supplied to the community surrounding the facility, as well as, the third biggest pharmaceutical company in Pakistan, Novartis. ICI Pakistan ICI Pakistan has a standalone Corporate Social Some of their major philanthropic programmes Responsibility Programme that is run through the include: Flood Relief Campaign 2010, LRBT Eye company's Foundation, ICI Pakistan Foundation. Clinic Programme in Khewra and Project Green. It was set up in 1991 to provide financial support The ICI Pakistan has actively participated in the to health care, education and social welfare Flood Relief Campaign 2010, to provide relief to organizations of our country. Through this flood victims. The Foundation pledged USD foundation, the ICI also provides for projects that 200,000 for relief with an objective to provide 1 serve underprivileged members of the society. A million meals in the form of essential rations and particular percentage of ICI's annual profit is food supplies. Moreover, medical camps were set allocated to the Foundation each year. This up to deliver medical support to 10,000 people in percentage varies depending upon the total the flood-affected areas. turnover and pre-tax profits made at the end of the fiscal year. Recommendations Firms in the chemical industry feel that the use it as a directive to cooperate with the firms in Government should acknowledge and the chemical industry, in order to integrate the appreciate their existing efforts towards social principles of sustainable development into development. Additionally, the existing system country policies and programmes, and reverse should focus on strengthening and increasing the loss of environmental resources. stringent transparency measures. The Government should also consider ways to A regular award programme should be encourage Public Private Partnerships (PPPs) introduced to acknowledge CSR and primarily in the areas of health, education, and philanthropic efforts of the chemical sector, to disaster relief. Incentivized participation of the motivate them to continue to act in a socially chemical firms, in the form of tax incentives or responsible manner. recognition awards, will bear positive results, and further promote contribution to development. Keeping in view Pakistan's Millennium Development Goal 7, the Government should

2 Millennium Development Goal 7 – Ensure Environment Sustainability. http://undp.org.pk/mdgs-in- pakistan.html 4 Leader Board

In view of the fact that quantitative data alone Insurance Limited and Leiner Pak Gelatine does not paint a clear enough picture of the CSR Limited, that were among the Top 5 in the activities carried out by a company, the category of volume of donations as percentage 'leaderboard' offers an in-depth into the CSR of Profit Before Tax (the remaining three did not initiatives of the top givers in a selected category. participate in the interviews). The primary sources Insights gained by exploring the background, of information for these profiles were interviews challenges and perspectives of the organizations, with the relevant higher management personnel their views concerning CSR are always within the companies. The interviews were based informative, enlightening and inspiring. To on semi-structured questionnaire list, which understand the importance of CSR within the served as a guide to orient the discussion, corporate sector, it is essential to zoom into the steering the focus on specific topics related to the experiences of organizations working actively for study objectives. thesocio-economic development of the Country. This year the Centre has documented and presented the profiles of two companies, IGI

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Company Name: IGI Insurance Limited Established: 1953 CEO: Mr. Jalees Ahmed Siddiqi Donations: PKR 22.2 million Ranked first in the category of Donations as percentage of PBT

ABOUT IGI INSURANCE

Mr. Jalees Ahmed Siddiqi - CEO IGI Insurance Limited

IGI Insurance Limited is one of the leading The Company is also an integral part of the Property & Casualty insurance companies in corporate umbrella that is IGI Financial Services. Pakistan. Created in 1953 by the Packages The rest of the Group is made up by IGI Group – considered to be amongst the premier Investment Bank, of which IGI Insurance is a business houses of the country – IGI Insurance has major stockholder, and its wholly-owned since established itself as the flagship subsidiaries: IGI Finex Securities Limited and IGI organization of the Group. This status has been Funds Limited. Consequently, the Company is achieved on the basis of its well-organized well placed to leverage the synergies of a financial operations as well as its high ethical and moral conglomerate when offering services to its clients. practices. The services IGI Insurance provides cover underwriting of a varying portfolio of classes, namely:

·Fire ·Marine ·Motor ·Miscellaneous ·Health ·Home ·Travel

These business lines are just some of the many partnership, making IGI Insurance as their global comprehensive risk management facilities that network partner. the Company offers to its customers; a number of distinguished multinational and local companies Since the acquisition, IGI Insurance has within the Country. This wide product portfolio is established itself as being amongst the most the result of IGI's innovative and customer- dynamic companies in the local general focused approach to business. insurance sector. Accordingly, the Company has further hedged risks by establishing partnerships In 2004, IGI Insurance Limited augmented its with leading global reinsurers. By doing so IGI growth strategy by acquiring the Pakistani makes certain that its stakeholders can rest operations of the UK-based RSA Insurance Group assured in the knowledge that their company, and Public Limited Company – formerly known as thus they themselves, will remain secure in the Royal and Sun Alliance PLC. This move saw the foreseeable future. Consequently, it is no surprise Company leapfrog to become one of the top 5 that the Company has consistently maintained its non-life insurance companies in Pakistan at that IFS (Insurer Financial Strength) rating of “AA” for time. In addition, on the basis of their excellent 12 consecutive years. experience with IGI, RSA has now forged their HOW CSR WORKS IN IGI INSURANCE LIMITED – An Overview

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Pakistan Centre for Philanthropy 1A, St.14, F-8/3, Islamabad Tel: (9251) 2855903-4, 2855078-9 Fax. (9251) 2855069 E-mail:[email protected], www.pcp.org.pk