Breadcrumb

Pakistan

The role of CSR

Over the course of the past several years, CSR in Pakistan has been the subject of several conferences and the focus of recurring media attention. Coverage of CSR activities plays an important role in nearly all annual reports published by listed companies. However, due to the desolate economic situation, companies focusing on the national economy and small and mid-sized businesses (the latter of which compose approximately 75% of all business life) generally avoid anything that could increase cost pressure. The majority of the population is lacking an awareness of CSR. Since most companies do not assume any social responsibility, there is no general expectation that they should. People’s primary expectation is that companies should provide a salary adequate to cover costs for living expenses, healthcare and other expenses.

UN institutions are among the driving forces for CSR in Pakistan.

UNDP, tel.: 0092-51-825 56 00, fax: 0092-51-265 5014 (www.undp.org.pk) supports a network within the scope of the Global Compact (GC)

UNEP is one of the initiators of an annual environmental award (Annual Environment Excellence Award, AEEA).

German political foundations promote CSR primarily as assumption of responsibility within a company and less in terms of responsibility for society as a whole.

For example, the Friedrich Ebert Foundation, tel. 0092-51-2608 811 to 14, fax: 0092-51-2608 810 (e-mail: info (at) fes.org (dot) pk) worked to promote the introduction of a code of conduct in the textile industry (a key industry in Pakistan) and held employee training classes.

Source: German Embassy, Islamabad

CSR understanding

Note should be taken of the country’s historical background, in particular in the area of employee rights. Union representation of employees, and with it the improvement of working conditions, first gained a foothold in British India through large union associations during the second half of the Colonial era and ended with the Trade Union Act of 1926.

However, the labor policies of subsequent Pakistani governments (especially military governments) were designed to dissolve the unions and bring them into line with government philosophy. Since its founding, the Pakistani state has thus played only a minor role in improving working conditions and ensuring that the population’s basic needs are met, thereby creating an increasingly broad field of action for CSR activities.

Source: German Embassy, Islamabad

Expectations towards companies

As Pakistani policymakers see it, companies’ main responsibility is to operate profitably and contribute to the well-being of society with their products.

The same expectations apply to German companies. Expectations are focused on creating jobs in companies, and ideally along the value-added chain as well. The press expects German companies to do more than Pakistani companies to create jobs with fair wages, remain free of corruption, pay proper taxes, avoid environmental pollution and engage in occasional philanthropic activities.

Consumer expectations revolve around products of excellent quality and generous replacement or repair guarantees if products are defective. Engagement in projects to meet large-scale social needs is a minor expectation at best.

If such expectations exist at all among policymakers and society at large, they are concentrated on income creation, occupational training, energy efficiency and environmental protection.

Source: German Embassy, Islamabad

Basic conditions

Implementation of the ILO labor standards

According to the Human Rights Commission of Pakistan (HRCP), the ILO standards have not been adequately implemented. National laws are often at odds with the labor standards, despite the fact that Pakistan has officially recognized them. Moreover, widespread legal uncertainty and a shortage of personnel at Pakistan’s few labor courts make it very difficult for people to take legal action to assert their rights.

Industry initiatives

WORLD BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT 

Network established in 2006
 
On-site contact
Amjad Parvez Janjua
President, BCSD Pakistan
PSO House, 8 th Floor
Khayaban-e-Iqbal
Clifton, Karachi – 75600
Pakistan
Tel: (+92 21) 920 3723
Fax: (+92 21) 920 3781
Email: Amjad.P.Janjua (at) psopk (dot) com

GLOBAL COMPACT NETWORK

On-site contact

Contacts at the country-level:
Employers Federation of Pakistan (EFP)
Mr. Fasihul Karim Siddiqi
Managing Committee Member and Secretary Global Compact Pakistan Local Network
Tel: # 92-21-2412708, 2411049
Fax# 92-21- 2439347
Email: efpak (at) cyber.net (dot) pk  / info (at) globalcompactpakistan (dot) org

UNDP Pakistan
Mr. Onder Yucer, Resident Representative
Email: onder.yucer (at) undp (dot) org

UNDP Pakistan
Mr. Farrukh Moriani
UN Advisor for Global Compact Pakistan
Tel: (92-51) 2800133-42
Fax: (92-51) 2800031 & 34
Email: gc.advisor (at) undp (dot) org

GC Office Country Coordinator
Melissa Powell
E-mail: powell1 (at) un (dot) org
Tel:  +1 212-963-0566
Email: Powell1 (at) un (dot) org

Areas of activity

Poverty

Basic information

  • Life expectancy: Total population: 64.13 years; male: 63.07 years; female: 65.25 years (2008 est.)
  • Infant mortality: Total: 66.94 deaths/1,000 births; male: 67.04 deaths/1,000
  • Births; females: 66.84 deaths/1,000 births (2008 est.)
  • Malnutrition: 24% (2002/04)
  • Access to clean water: 91% (2004)
  • Access to sanitary facilities: 59% (2004)
  • Human Poverty Index: 77th of 108 (2007/2008)
  • Gini Index: 30.6 (2002)
  • Population below the poverty line: 24% (2005/06)

Participants

Possible participants include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).

 

Friedrich Ebert Foundation Pakistan
http://www.fespk.org

GTZ Pakistan
http://www.gtz.de/en/weltweit/europa-kaukasus-zentralasien/1176.htm

CIM Pakistan
http://www.cimonline.de/en/weltweit/325.asp

Company examples

adidas AG

CSR WeltWeit case study (German): Bildungs- und Infrastrukturprogramm in Pakistan

Randstad Deutschland GmbH & Co.KG

CSR WeltWeit case study (German): VSO – Voluntary Service Overseas

Education

Despite substantial contributions by donors, Pakistan’s educational system suffers from neglect and a lack of funding. Efforts to reform curricula and revamp textbooks are only in the early stages, teachers tend to lack qualifications and motivation, and public school buildings and furnishings are in poor condition. As for vocational training, there is a lack of the necessary concepts, appropriate equipment and qualified teachers.

Basic information

  • Public spending on education (share of GDP): 2.6% (2006)
  • Compulsory school attendance: 5 – 9 years
  • Rate of school enrollment:  66% of children who are required to attend school (2004)
  • Literacy (definition: those over the age of 15 who can read and write): Total population: 49.9%; males: 63%; females: 36% (2005 est.)
  • HDI Education Index: Rank 136 out of 177 (1 = max., 0 = no education)
  • Average years of education: Total population: 7 years; male: 7 years; female: 6 years (2006)

Participants

  • Dr. Ulrike Reviere, GTZ education coordinator
  • F 8/3, Street 5, House # 63-A, Islamabad, e-mail: ulrike.reviere (at) gtz (dot) de, tel.: 0092-51-2608 861, 2608 862
  • The ministries of education of the provinces
  • National Vocational and Technical Education Commission - NAVTEC (www.navtec.gov.pk)

Opportunities and risks related to educational initiatives

Involvement in educational initiatives can enhance a company’s reputation. Such activities can be structured so as to improve the work climate and/or increase productivity; for example, a company might provide support for a public school attended by the children of its employees, or set up an internship program.

The only risk would be in giving preferential treatment to girls, for example by supporting a girls’ school. Particularly in conservative regions, this could be seen as an affront to tradition and provoke opposition.

Company examples

BASF Pakistan

Establishment and operation of a chemical laboratory for schoolchildren (“BASF Kid’s Lab”); (www.corporate.basf.com).

Reconstruction aid following the earthquake in 2005, construction of a new elementary school for boys and girls in Muzaffarabad (www.corporate.basf.com).

MERCK (Pvt) Ltd. Pakistan

Renovation and equipping of the historical lecture hall at the Medical University Lahore (www.merck.com.pk).

Purchase of a piece of property in the province of Baluchistan to build a SOS Children’s Village (www.merck.com.pk)

SIEMENS Pakistan

Scholarships for training positions and internships; “Making Pakistan Clever”; (http://www.siemens.com.pk/CSR_Mpak_main.html).

adidas AG

CSR WeltWeit case study (German): Bildungs- und Infrastrukturprogramm in Pakistan

Randstad Deutschland GmbH & Co.KG

CSR WeltWeit case study (German): VSO – Voluntary Service Overseas

Source: German Embassy, Islamabad

Health

Basic information

  • Public spending on health (share of GDP): 0.4% (2004)
  • Medical care: 74 physicians per 100,000 residents (2000 – 2004)
  • Infant mortality: Total: 66.94 deaths/1,000 births; male: 67.04 deaths/1,000 births; female: 66.84 deaths/1,000 births (2008 est.)
  • Maternal mortality: 530 deaths/100,000 births (1990 –2004)
  • Child malnutrition: 38% of children under the age of 5 (1996 – 2005)
  • HIV/AIDS prevalence rate (>15 years of age): 0.1 % (2001 est.)
  • HIV/AIDS sufferers: 74,000 (2001 est.)
  • HIV/AIDS deaths: 4,900 (2003 est.)
  • Life expectancy: Total population: 64.13 years; male: 63.07 years; female: 65.25 years (2008 est.)

Inadequate medical care is especially prevalent among Pakistanis with low incomes. They are unable to afford private medical care and the services provided by the state healthcare system are often of poor quality or completely lacking in most remote areas. The medical emergency care system is extremely underdeveloped, even in the commercial segment. Hygienic standards are not upheld. Due to the lack of standards and monitoring, patients must often pay far too much for unnecessary diagnostic and treatment services.

Participants

  • Dr. Paul Rückert, GTZ health coordinator
    F 8/3, Street 5, House # 63-A, Islamabad, e-mail: paul.rueckert (at) gtz (dot) de, tel.: 0092-51-925 5595, fax: 0092-51-9255596
  • Ministries of health of the individual provinces
  • World Health Organization, NIH Building Premises, Chak Shehzad, National Park Road, Islamabad, tel.: 0092-51-9255 184 - 5, dir. 925 52 52, e-mail: wr (at) whopak (dot) org

Opportunities and risks related to health initiatives

Engagement in the area of healthcare is generally well regarded and can lead to greater acceptance of a company. Activities in the field of reproductive health may create problems, especially in conservative environments (e.g. no examination of women by male doctors).

Company examples

Fa. MERCK (Pvt) Ltd. Pakistan

Renovation of the emergency room facilities at the Pakistan Institute of Medical Sciences (PIMS); (www.merck.com.pk)

Randstad Deutschland GmbH & Co.KG

CSR WeltWeit case study (German): VSO – Voluntary Service Overseas 

Source: German Embassy, Islamabad

Environment

Basic information

  • CO2 emissions: 0.4% of total world output (2004)
  • CO2 per capita: 0.8 t (2004)
  • Energy consumption: 67.06 million kWh (2005)
  • Water consumption (households/industry/agriculture): Total: 169.39 km3/year (2%/2%/96%); per capita: 1,072 m3/year (2000)
  • Hydropower, solar, wind, geothermal energy: 3.5 % of primary energy consumption (2005)

Due to the current energy crisis, there is fundamentally great interest in sustainable use of resources, and in particular in development of alternative sources of energy. However, the funds needed to switch over to more energy efficient system are often lacking, e.g. for purchasing energy-saving light bulbs or solar-operated street lights. Donations of material and supplies could be used to support pilot projects in this area. The same applies to water as a resource. There is immense potential for the introduction of ecologically sustainable production processes in particular in the textile branch, which is one of Pakistan's key industries, since energy and water consumption are still inefficient. In addition, significant savings could be achieved, part of which could be reinvested in improvement of social benefits for employees.

Participants

Awareness of sustainable of air, soil and biodiversity management could be increased dramatically. This is a suitable field for educational measures such as model projects (e.g. reforestation).

Opportunities and risks related to environmental activities

The image benefit from activities in the environmental sector is clearly less pronounced than that generated by activities in the area of healthcare or education. However, the companies involved are improving the long-term underlying conditions for their own work and can increase their productivity.
Land disputes may arise over projects to protect woodlands or other eco-habitats.

Company examples

BASF Pakistan

BASF Pakistan received the Environment National Excellence Award for 2007 from Help International Welfare Trust / CSR Association of Pakistan.

BFZ

The Further Vocational Training Centers of the Bavarian Economy (Die Beruflichen Fortbildungszentren der Bayerischen Wirtschaft – BZF) are advising on a PPP project implemented by the Sequa company in Bonn to train Pakistani textile associations in ecologically sustainable textile production.

MERCK (Pvt) Ltd. Pakistan

Reforestation project in a recreational area near Quetta, Baluchistan; (www.merck.com.pk)

Randstad Deutschland GmbH & Co.KG

CSR WeltWeit case study (German): VSO – Voluntary Service Overseas

Source: German Embassy, Islamabad

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Data & facts

Country: Islamic Republic of Pakistan
Capital: Islamabad
Area: Approx. 800,000 km²
Population: 162 million
Economic system: Market economy with a high level of state ownership
Polity: Parliamentary democracy with special rights accorded to the president (essentially a presidential government)
Unemployment rate: 7.5% as well as a high level of underemployment (2007 est.)
Inflation rate (CPIX): 7.8 % (2007 est.)
GDP: 143.8 billion USD (2007 est.)
GDP/Head: 2,600 USD (PPP, 2007 est.)
Religions: Islam is the state religion (96% of the population, the majority of which are Sunni, between 10 and 20% Shiite), just under 2% Christian, 2% Hindu
HDI: 136th of 177 (2007/2008)
CPI: 138th of 179 (2007)
BTI: Status Index: 94th of 125, Management Index: 90th of 125 (2008)

Further links