tag:blogger.com,1999:blog-27951047987406680682024-03-14T09:52:37.633+05:00CorporateWatch PakistanCSR and Corporate Governance News, Views and IssuesUnknownnoreply@blogger.comBlogger44125tag:blogger.com,1999:blog-2795104798740668068.post-45483040388982307182010-11-08T10:10:00.006+05:002010-11-08T17:20:42.687+05:00Open Your Eyes to the New Rhythm of GivingPakistan's efforts to come to terms with the aftermath of the <a href="http://ochaonline.un.org/OCHAHome/WhereWeWork/Pakistan/tabid/6844/language/en-US/Default.aspx">devastating floods</a> that have ravaged millions of lives across the country's length and breadth, have found a new ryhthm: Salman Ahmed, leader of sufi rock band Junoon has written and produced a single, <a href="http://www.youtube.com/watch?v=egZFQ_kucTE">Open Your Eyes</a>, to raise funds for flood affectees. Released on 2 November 2010 and available for <a href="http://itunes.apple.com/us/album/open-your-eyes-feat-peter/id401053935">download from iTunes</a>, the song features legendary artist <a href="http://www.petergabriel.com/">Peter Gabriel</a>--founder of Genesis and a Rock & Roll Hall of Fame inductee--and <a href="http://www.afinefrenzy.com/bio.aspx">Alison Sudol</a> the Grammy-nominated alternative music rising star. Samina Ahmed, Salman's wife and partner in the <a href="http://www.ssgwi.org/">Salman and Samina Global Wellness Initiative</a> provides backing vocals. Proceeds from the sale of the song will be donated for flood relief activities through the SSGWI. As Salman explains in a recent <a href="http://ourdesiworld.com/blogs/spotlight/72-open-your-eyes-junoon-salman-ahmad-peter-gabriel">interview</a>, this song represents his attempt to make the world realise that they have a 'blind spot' for Pakistan and to stress on the need for doing much more than it has to help over 20 million displaced people regain their lives and their dignity. Listening to Peter Gabriel explain his motivation for choosing to collaborate on this project, to Jian Gomeshi of CBC on the <a href="http://podcast.cbc.ca/mp3/qpodcast_20101104_40686.mp3">Q show</a>, one is struck by his empathy for those whose ‘dreams are sinking in the mud’ as the lyrics of the song go and holds up a mirror to both Pakistanis and the world at large, who've chosen to look away from their ongoing responsibility to help reduce suffering. Indeed, Mr. Gabriel calls it a <span style="font-style:italic;">‘subtle form of racism’</span> and blames the <span style="font-style:italic;">‘pathetic’</span> global response in terms of aid and giving, on the lingering media-hyped myth of Pakistan as only a hotbed of terrorism.<br /><br />Clearly, this project has acquired great credibility with the association of Peter Gabriel and Alison Sudol, but in essence, this is Salman's project and kudos to him for taking the initiative. He has already helped raised several hundred thousand dollars through concerts and tours across the US and with this song, one hopes he will top up that contribution significantly. It's not that 'Open Your Eyes' is the first effort by musicians to raise awareness about flood victims--<a href="http://www.youtube.com/watch?v=AjDToBuhttY">Atif Aslam</a>, <a href="http://www.youtube.com/watch?v=rhUHHi3PNCc">Laal</a>,<a href="http://www.youtube.com/watch?v=ZRr_aEfYS2I">Hamid Ali Khan</a>, <a href="http://www.youtube.com/watch?v=pTmYFMR1dt8">Sami Yusuf</a>, and <a href="http://www.youtube.com/watch?v=8zZEVEFz4Kg">Hadiqa Kiyani</a> have all released songs--but none of these have been aimed at raising funds directly, as Salman's effort is. That in itself sets 'Open Your Eyes' apart from other efforts. Fundraising requires a planned, coordinated marketing effort and judging from the spate of interviews, tweets and press coverage Salman has secured, he does have a marketing plan. <br /><br />This initiative again serves to underscore the manner in which the power of celebrity and music can be harnessed in a responsibile, productive manner. We are all privy to the amazing contribution made by <a href="http://en.wikipedia.org/wiki/Live_Aid">Live Aid</a> to raise both awareness and funds for the Ethiopian famine and most readers will be aware of the <a href="http://www.joinred.com/red/">Red</a> campaign aimed at raising funds to fight AIDS in Africa, by partnering with leading brands like Armani, Apple, Amex and Starbucks, who contribute a percentage of sale proceeds of their regular range as well as designing special edition products. In Pakistan, Imran Khan's fundraising efforts, including for flood victims through the <a href="http://www.pukaar.org/">Imran Khan Flood Relief Program</a>, provide a prime example of how <span style="font-style:italic;">celebthropy<span style="font-weight:bold;"></span></span> can work for good. But as a student of CSR, I am saddened by the (pardon the poor pun) watery contributions of the corporate sector at identifying ways in which <span style="font-style:italic;">celebthropy</span> can be tapped. While I will dwell on the broader subject of the role of the business community in disaster management and relief activities in a forthcoming post, in the context of the possible synergies of celebrity, music and media, the response in Pakistan has been woeful. Where are the special editions of a Coke Studio? Or Fire Records special CD compilation featuring top Pakistani artists with all proceeds going for flood relief? And if you hear of any of our Pakola boys or Pantene girls negotiating with their corporate sponsors for special concerts and limited edition products endorsed by them for raising funds for flood affectees, with the same gusto as they do for themselves, please do let me know. <br /><br />This is not the place for me to analyse the merits of 'Open Your Eyes' as a piece of music. But it is very much the place for me to acknowledge Salman's effort as representing CSR, music style; and more power to him for it. Our corporate sector appears to have fallen short of expectations with respect to contributing to flood relief. But you, as an individual can open your eyes to the fact that the new rhythm of giving is just a <a href="http://itunes.apple.com/us/album/open-your-eyes-feat-peter/id401053935">click</a> away.Unknownnoreply@blogger.com3tag:blogger.com,1999:blog-2795104798740668068.post-76464669823505230852010-10-26T12:13:00.005+05:002010-10-26T20:08:49.791+05:00Tackling Karachi's Urban Waste the Gul Bahao WayI have known Nargis Latif, the head of Karachi based NGO <a href="http://gulbahao.org/">Gul Bahao</a> for over a decade now. During this period, my views on her work have oscillated between fascination, frustration and bewilderment; fascination because her approach is always innovative; frustration because her work has not progressed from the level of a start-up despite a dozen or more years in the making; and bewilderment because, well, some of her ideas and products appeared borderline strange. But her tenacity, belief in herself and her commitment to the cause have never failed to impress.<br /><br />So what is Nargis Latif's cause? Providing low-cost urban waste management solutions for Karachi. In a city of over 13m people (expected to reach nearly 20m by 2025) an <a href="http://www.urckarachi.org/KMP-2020%20Solid%20Waste%20Management.pdf">estimated</a> 9000 tonnes of solid waste is generated every day, presenting huge challenges for effective solid waste management. This challenge is compounded by the fact that at most 80% solid waste is collected for disposal and recycling; the severely restricted capacity of the municipal agencies--by their <a href="http://www.urckarachi.org/KMP-2020%20Solid%20Waste%20Management.pdf">own admission</a> they are only able to collect 50% of solid waste generated in their geographic jurisdictions--means that the for-profit and non-profit sectors involved in solid waste management are signficant market players. Enter NGOs such as Gul Bahao.<br /><br />Launched in 1994, Gul Bahao has been experimenting with innovative, if not always scientifically sound, ways of managing solid waste. From humble beginnings of organising neighbourhood collections to launching Safai Kamai Bank (Garbage Bank) to products such as 'Fuel Pack' made from waste material and claimed to generate electricity to 'Chandi Ghar' (Silver Home) made from a combination of aluminium foil, panaflex and bamboo sticks, Gul Bahao has been constantly striving to come up with new solutions--and to keep itself both alive and relevant. <br /><br />This effort--or compulsion--to constantly expand its product range before securing and scaling up its existing products is indicative of both the energy behind Gul Bahao as well as a reflection on the difficulties it faces in achieving financial stability through an established, sustainable product line. A lot of the initial work done by Gul Bahao has been financed through Nargis's own savings or the financial support provided by immediate family and friends. Local philanthropists have also contributed and allowed her to carry out research and do trial runs, while the Safai Kamai Bank (Gul Bahao bought dry waste from citizens, factories and companies and sold it onward to kabaris or small and medium sized waste collectors and recyclers) has allowed her to turn in revenues sufficient to keep the NGO going. But getting sustainable, secure lines of financing has been tough at best, with commercial banks simply not interested and city and town governments and IFIs (including projects financed by them) skeptical, non-committal and in some cases, condescending by turns; her being a woman (doing a man's job?) and clearly not belonging to the elite or bogus set (often one and the same thing) of NGOs--the one's run from drawing rooms by drawing upon connections and government largesse--didn't help matters. Nargis often came to me for help when I was the State Bank of Pakistan and later with the ADB and UNDP and I must admit that despite admiring her passion, believing in her work and providing some leads, I too failed to raise any funds for her. <br /><br />And therein lies the reason why social enterprises like Gul Bahao have failed to scale up their operations and thus to have wider impact. With virtually no Angel financing, few venture capital firms and practically no support from the government, small social entrepreneurs are condemned to a state of unecominical operations, always struggling to juggle the tasks of retaining employees, research their products and market themselves. In fact, far from being helpful, the town governments in Karachi have been impediments, uprooting her waste collection banks and denying her permission to set up stalls in the city. <br /><br />To carry on as Nargis and Gul Bahao have for such a long time in the face of relentless apathy from the public and private sectors, is admirable and a testimony to her commitment. I am very pleased to see though, that Gul Bahao and its driving force have begun to get due recognition, not that they hanker after it for personal reasons. Gul Bahao has been a labor love, but the spate of profiles and interviews, including by <a href="http://www.telenor.com.pk/karomumkin/?p=8755">Telenor for their Karo Mumkin (Make it Happen) campaign</a>, <a href="http://www.newslinemagazine.com/2010/10/wonderful-waste/">Newsline magazine's recent feature</a> and <a href="http://www.socioentrep.edu.pk/women/nargis-latif-for-the-white-dawn/">blogs</a> have helped raised its public profile. <br /><br />But I fear that until social entrepreneurs like Nargis Latif gain access to adequate financing which in turn will enable access to quality personnel and research and development capacities, their work will forever fall short of their potential, while they will continue to be largely unsung heroes.<br /><br />Because make no mistake, people like Nargis Latif truly are heroes.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-84270303296795147432010-06-05T17:17:00.003+05:002010-06-05T19:12:11.639+05:00World Environment Day 2010: Cause for Pause or Celebration in Pakistan?So another World Environment Day has come and gone. Doubtless, our environmental managers at the federal and provincial <a href="http://www.environment.gov.pk">Environmental Protection Agencies</a> would have organised some workshops and/or walks. Commitment to putting a stop to environmental degradation and to achieve all the targets contained in the <a href="http://www.environment.gov.pk/nep/policy.pdf">National Environmental Policy</a> (yes, we have one) would have been routinely expressed, sans conviction and without any explanation of how these commitments would move off the pages of policy documents and transform into tangible results. A profound sense of deja vu hits one at these events. Same promises, different faces, same frustration at lack of outcomes despite considerable inputs.<br /><br />There may be even greater cause for alarm this year. <br /><br />First, a few days before World Earth Day, the provincial government of Punjab <a href="http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/the-newspaper/local/lahore/plan-to-lease-land-to-jobless-youth-punjab-govt-to-axe-forest-area-by-30,000-acres-260">announced</a>, quite shamelessly and with great fanfare, that it had decided to allot more than 30,000 acres of forest land to 'jobless youth' (no doubt a euphimism for political cronies) for agricultural use, along with seed money (pardon the pun) of Rs.900,000 each. Amendments in the Forest Act 1927 were made to enable this plan because the British-enacted legislation prohibited conversion or use of forest land for any other purpose. And all this happens in the background of warnings by experts about the alarming rate of deforestation in the country (<a href="http://www.illegal-logging.info/item_single.php?it_id=1482&it=news">second worst in the world</a> according to one source) and the fact that more than 1.44m of agriculture land is lying unutilised in Punjab. <br /><br />Second, the <a href="http://www.finance.gov.pk/survey_0910.html">Pakistan Economic Survey 2009-2010</a> released yesterday paints a dim picture of, amongst other things, the state of environmental management in the country. Consider this: only 44% of the population has access to sanitation facilities; the level of particulate matters in major cities is nearly 4 times higher than safe limits (see Figure 1);<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://2.bp.blogspot.com/_-g1lZ1odNn0/TApOU94CCKI/AAAAAAAAAEg/M_YChkt9pgw/s1600/ScreenHunter_01+Jun.+05+15.13.gif"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 200px; height: 174px;" src="http://2.bp.blogspot.com/_-g1lZ1odNn0/TApOU94CCKI/AAAAAAAAAEg/M_YChkt9pgw/s200/ScreenHunter_01+Jun.+05+15.13.gif" border="0" alt=""id="BLOGGER_PHOTO_ID_5479278018763557026" /></a> 40% of all deaths and 60% of those of children are related to water borne diseases with only four cities (Karachi, Faisalabad, Peshawar, Islamabad) equipped with water treatment plants, all workin under capacity and only the one in Islamabad meeting the National Environmental Quality Standards (NEQS); 92% of the industrial wastewater is dumped untreated into surface water resources like canals, rivers etc. Depressing is too mild a word to encapsulate the enormity of challenges.<br /><br />And what of the industrial and corporate sector? Industries in Pakistan consume 23% of total water available and discharge around 9000 million gallons of wastewater from industrial activity into water bodies in Punjab and Karachi. Untreated. Daily. Nearly 70% of biological load is generated by textile and beverage industry with other notable (and habitual) partners in crime being the textile, tannery, paper and pulp.<br /><br />Several positive initatives have emerged and often spearheaded from or facilitated by the public sector: the initiative to <a href="http://corporatewatchpakistan.blogspot.com/2009/05/promoting-environment-protection.html">raise environmental awareness in schools</a>, promotion of the use of CNG (Pakistan is the world's largest consumer of CNG according to the International Association of Natural Gas Vehicles, with 2.4m CNG-fueled vehicles as of the start of 2010) and moves for collaborative efforts to combat industrial pollution, such as the Effluent Treatment Plant in Korangi industrial area at Karachi, established at a cost of Rs500 million by a consortium of the government of Pakistan, the embassy of Netherlands, and Karachi’s district governments in addition to the Pakistan Tanners Association (PTA); even the controversial amendment by the Punjab government in the Forest Act 1927 referred to above has a silver lining in the form of enhancing the lefine for various offences, including theft of forest wood from the previous level of up to Rs500 (yes Rs.500!!) to Rs.1 million. The industry itself has also tried to address the problem, including through the installation of water treatment plants (133 in Punjab, 207 in Sindh and 2 in Khyber-Pakhtunkhwa). But there are miles to go and promises to keep for the private sector. Indeed, <a href="http://www.unrisd.org/unrisd/website/events.nsf/b5d6feaaede3218d80256eb3003862c7/c2513d54d16ddd7ec1257219004a3db6/$FILE/Shahrukh.pdf">studies</a> such as the one by the SDPI suggest that the only way to effectively tackle environmental issues such as deforestation, is for the private sector to come good on its CSR promises and practices. <br /><br />The problem, as always, lies with the utter failure to implement plans. And the pain of that failure is hightened by hollow politico-speak and designer commitments to for e.g enhance forest cover in Pakistan from the existing level of 5.2% to 6% by 2015, uttered in photo-op events and then signing into law decisions that will go the exact opposite way.Unknownnoreply@blogger.com4tag:blogger.com,1999:blog-2795104798740668068.post-20051539477493983532010-06-03T12:29:00.005+05:002010-06-03T18:06:37.132+05:00Philanthropy On the Rise in Pakistan: Whither CSR?Over the years, I have been struck by the inability of a segment of the corporate sector in Pakistan and almost all the bureaucrats, to distinguish between philanthropy and corporate social responsibility (CSR). While one can expect bureaucrats to be lost betwixt the two (as they are with most other things), I find myself flummoxed for an answer as to why otherwise smart corporate managers do the same. Discussions on CSR often immediately veer off into talk of donations to one charity or the other; or this madrassa or another. This tendency to equate donations and charitable giving with CSR is stronger amongst local and smaller companies and can perhaps be linked to the ingrained religious concepts of giving and sharing of wealth, but it is also evident in some managers at MNCs and larger local firms. More importantly, in my view at least, it has clouded both the dialogue and the practice of CSR in Pakistan.<br /><br />To my mind, this represents--and stems from--a failure of education and awareness about CSR. As a result, while philanthropy in general has <a href="http://tribune.com.pk/story/18318/philanthropy-doubles-to-rs140b/">doubled in value</a> from Rs. 70b in 2000 to Rs.140b this year and as corporate philanthropy has seen a <a href="http://www.pcp.org.pk/Research/E%20Financial%20Post%2004.04.09-%202.jpg">similarly impressive growth</a>--touching Rs. 1.67b in 2007 from a low base of Rs. 228m in 2000--the growth of CSR in Pakistan does not compare favorably. One measure of this is that <a href="http://www.unglobalcompact.org/NetworksAroundTheWorld/local_network_sheet/PK.html">membership</a> in the Pakistan Global Compact network comprises only 83 members. The number drops to only 55 if the <a href="http://globalcompactasiapacific.org/pakistan/viewPage.php?ID=GCPLN%20Members">local network's own website</a> is to be trusted. <br /><br />While there is nothing wrong with corporate giving, it is a subset of the broader notion of CSR. And as the global turmoil caused by irresponsible behaviour of managers across the world points to, the need of the hour is for corporate responsibility, not giving alone. Judging from the evidence, it appears Pakistani businesses may be taking the easy way out by doling out large sums of money, rather than adhering to ethical and more responsible modes of corporate action, right from sourcing to fair wages to better working conditions and occupational safety and health practices to using cleaner,environment-friendly production technologies. <br /><br />The fact that this is not done, makes one wonder: is the rise in corporate philanthropy due to mere ignorance? Or is it a sort of corporate qisas and diyat--or blood money?Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-88121818777837300202010-05-26T10:35:00.003+05:002010-05-26T11:37:15.462+05:00Microfinance in Pakistan: Stymied Future?Microfinance in Pakistan has been the subject of much discussion. It was one of the important initiatives of the last decade, seeking as it did, to reach out to the millions of poor people particularly in the rural areas who lack access to formal mechanisms for financing their needs. Financial and technical support from the ADB and World Bank and leadership from the State Bank of Pakistan helped establish several institutions, most notably the <a href="http://www.khushhalibank.com.pk/">Khushali Bank</a>, as well as put in place a regulatory framework for the sector. <br /><br />Did all of this work? <br /><br />If you listen to industry practitioners such as Roshaneh Zafar, founder of <a href="http://www.kashf.org/site_files/default.asp">Kashf Foundation</a>, there is much to rejoice about. In an <a href="http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/business/03-making-the-impossible-possible-ss-05">interview</a> recently published in the daily Dawn, she outlines Kashf's rise from a small organisation to one that now has over 150 branches and has disbursed over $202m in loans to over 300,000 families. Kashf claims to be a sustainable organisation and its efforts have been lauded and supported by various international organisation. In her interview, Ms. Zafar paints a fairly optimistic picture for the organisation itself, if not the sector.<br /><br />But independent analysis of the sector and its future is not as rose-tinted. One <a href="http://www.pu.edu.pk/economics/pesr/currentissues/6%20RAUF%20Growth%20n%20Performance%20of%20Micro%20Finance.pdf">analysis by Rauf and Mehmood</a> published in the Pakistan Economic and Social Review points out that the sector is charactersied by operational and financial sustainability, the overall cost per borrower is high and increasing, while productivity ratios are low. The outreach and size of the sector is also small and growing slowly, with only 1.14m active borrowers in 2007. The cost per borrower at 32.5% suffers in comparison to 18% in South Asia as a whole.<br /><br />The study identifies several problems, including overambitious outreach and expansion programs, particularly of the Microfinance Banks (which the study highlights as being the most inefficient) and points to the need for consolidation before expansion. In her interview, Ms. Zafar also points to the impact of the economic downturn as a constraint for growth.<br /><br />Despite its problems, investment in improving and expanding the microfinance sector in Pakistan is important, given the extremely low coverage of the banking sector of the rural areas. However, there are a few other considerations: one, the firewalling between the social and commercial aspects of microfinance needs to be defined further and understood by all players. Microfinance is a business and should be run like one. Confusing it, as some politicians and bureaucrats tend to do, with alternative pro-poor initiatives such as cash transfer schemes such as the <a href="http://www.bisp.gov.pk/">Benazir Income Support Program</a> (BISP), would only exacerbate some of the difficulties the sector faces in terms of policy and political support under populist governments. Lest this be misconstrued, let me state that I believe the cash transfer initiatives like the BISP to be effective short term means of reducing the impact of poverty. Despite issues of poor targeting and potential for rent seeking which Ms. Zafar points out, the BISP offers a complementary mechanism for poverty alleviation. However, it is NOT a business and hence its operational model has to be necessarily different from that of Microfinance institutions. The pressure on MFIs (I use the term here to cover microfinance banks, rural support programs and micfrofinance institutions) is therefore that much greater to raise their efficiency and to become more sustainable. I often get the feeling the sector is dissipated in its efforts, with too many small players. Mergers and consolidation, as well as partnerships may be the way forward.<br /><br />There is another angle to the need for strengthening MFIs: social enterpreneurship. In order to promote the concept in the rural areas, MFIs would need to be able to support entrepreneurs through microloans and other products like microinsurance. At the moment, that is an untapped, virgin market but one which will hopefully come under the radar of the MFIs sooner than later.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-894501344294911442010-04-20T20:45:00.004+05:002010-04-20T21:08:58.256+05:00Nestle Pakistan Talks CSRPakistan is the <a href="http://en.wikipedia.org/wiki/Dairy_farming">world's fourth largest milk producer</a> so its understandable that <a href="http://www.nestle.pk">Nestle</a> has such a large dairy operation in the country. Nestle not only has a community-based milk purchase system which entails collection of milk twice a day from over 150,000 dairy farmers, but has also a <a href="http://www.nestle.com/SharedValueCSR/People/People+Development/Examples+in+Asia.htm">program in collaboration with UNDP to train over 4000 women livestock workers</a> in rural Punjab, Pakistan's largest province, in primary animal healthcare. Nestle also has <a href="http://www.nestle.pk/community/corporate-social-responsibility.aspx">several other CSR programs</a> ongoing.<br /><br />More recently, Nestle has come under immense fire due to its bungling of the <a href="http://www.socialmediatoday.com/SMC/182858">'no logo fiasco'</a> on Facebook, which really does amaze one as to how wrong even the best of corporate entities can go when dealing with the consumers and also how poorly some large corporations understand the new social media. <br /><br />Eversince, Nestle has been trying to do damage control. And although not directly aimed at addressing the logo (or no logo) fiasco, <a href="http://www.ethicalcorp.com/resources/downloads/Ethical%20Corporation%20Podcast-%20Nestle_Pakistan.mp3">this podcast</a> of an interview with some senior Nestle Pakistan executives, makes for interesting hearing. Have a listen.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-11034678713624541712010-04-01T12:34:00.002+05:002010-04-01T14:42:56.799+05:00Calls for Stronger Monitoring of the Extractive IndustryParticipants at a <a href="http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/the-newspaper/national/13+legislation-urged-to-monitor-oil%2C-gas-extraction-130-za-06">recent conference</a> on the oil and gas sectors called for stronger legislation that empowers the government for assuming a stronger role in monitoring of extractive practices in these sectors. The range of recommendations was quite diverse and included providing provincial and local governments with a enhanced role in development of projects in their geographical jurisdictions, better oversight of CSR fund uses and reduction in 'payments' (read bribes) to fedual lords.<br /><br />The oil and gas sector is an important part of the Pakistan economy, attracting substantial Foreign Direct Investment ($612m in 2008-2009). By most accounts, there is huge potential for expanding the size of this contribution and the Government has taken several measures to promote further investments including allowing for 100% foreign equity, easy repatriation of profits etc. (see www.boi.gov.pk for details). For all these efforts, critics including the Oxfam supported <a href="http://www.pdi.org.pk">Participatory Development Initiative</a> have argued that the extractive industry regularly and blatantly violates provisions for CSR as contained in the Petroleum Concession Agreements, which legally bind companies in the sector to undertake CSR activities in the regions where they are extracting oil and/or gas.<br /><br />Civil society discontent against the extractive industry, both in terms of its impact on the environment and its implications for local population, is not limited to Pakistan and the sector has been at the centre of much heated debate and resulting in the <a href="http://www.eiti.org/">Extractive Industries Transparency Initiaive</a>, a global call for action for responsible practices, established in 2003 and which outlines a <a href="http://www.eiti.org/eiti/principles">set of principles for the industry</a> to follow. Pakistan, despite its sizeable sector, is not a part of the EITI and it's about time that it should.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-85725930960284047092009-10-28T12:58:00.003+06:002009-10-28T14:18:11.410+06:00No Child's Play: Tackling Child Labour in PakistanThe serious issue of child labour is as multifaceted as it is serious. It follows then that resolving this issue requires concerted, often collaborative and always non-sequential effort from several stakeholders across the public, private and civil society sectors. These efforts have a new entrant: the Federal and Provincial Ombudsmen in Pakistan. In partnership with a wonderful team at <a href="http://www.unicef.org/pakistan/">UNICEF Pakistan</a>, I was privileged to have led the initiative of establishing a <a href="http://www.mohtasib.gov.pk/site/Projects/REACH.php">Children's Complaint Office</a> as part of the institution of the Federal Ombudsman of Pakistan and later in the offices of the <a href="http://www.mohtasibsindh.gov.pk/">Sindh Ombudsman</a> and <a href="http://www.ombudsmanpunjab.gov.pk/">Punjab Ombudsman</a>. These Child Ombudsmen offices will help protect and promote child rights and fill a massive void in the justice system by providing access to children to have their grievances redressed. Hitherto, the only recourse was to approach the courts, which are largely inaccesible to children, costly and time consuming. The Ombudsmen, by their very nature, resolve disputes and redress rights through mediation and are therefore quicker and their services are free to the public. The Federal Ombudsman has already started offering an <a href="http://www.mohtasib.gov.pk/site/make-complaint/">online complaint service</a> and others will follow this model soon. Moreover, the Child Ombudsmen will address systemic issues and hold public agencies accountable for their acts of omission or commission in relation to child rights.<br /><br />The Punjab Ombudsman <a href="http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/pakistan/12-3m+children+engaged+in+labour+unicef--bi-06">recently held an official launch of its services</a> in Lahore. The occasion served to remind everyone of some grim facts: there are over 3m child labourers in Pakistan; the enforcement of existing laws and compliance with the UN Convention on Child Rights is poor; and agencies dealing with child rights tend to under-resourced and on the fringes of priority of policy makers. Although not discussed at the event, one also has to realise that the Child Ombudsmen's jurisdiction does not extend to private sector organisations. In that respect, its work on child labour will be focused on holding public agencies accountable for their actions to prevent and reduce child labour, including in the private sector. <br /><br />Ofcourse, child labour continues to be tackled by other stakeholders. Ever since Life Magazine broke the story in 1996 about <a href="http://cbae.nmsu.edu/~dboje/nike/pakistan.html">Nike using child labour</a> to produce its footballs in Pakistan, Pakistan has come under scrutiny. Nike <a href="http://www.independent.co.uk/news/world/americas/nike-admits-to-mistakes-over-child-labour-631975.html">owned up to its mistake</a> and has since launched a rehabilitation program and now requires its supply chain vendors to not employ any child labour and if they do, to take him/her out of the factory, provide education and re-hire them only when they were legally employable. The story scarred both Nike and Pakistan. <br /><br />Subsequently, the <a href="http://www.ilo.org.pk">ILO in Pakistan</a> has implemented <a href="http://www.ilo.org.pk/?page=ilo_pakistan&sublink=project_detail&projid=40">several industry specific</a> and <a href="http://www.ilo.org.pk/?page=ilo_pakistan&sublink=project_detail&projid=44">broad based projects</a>, aimed at reducing child labour. These projects have had strong allies in the respective industries and have helped clean up the country's image a tad, if not remove the scourge of child labour.<br /><br />Two issues arise from this overview: one, to address child labour issues in private sector organisations, what should be done? Establish private sector Ombudsmen or extend the jurisdiction of the public sector ones? Get the <a href="http://www.secp.gov.pk">SECP</a> involved through its Code of Corporate Governance? And what about using <a href="http://www.smeda.org.pk">SMEDA</a> to tackle this issue as a priority?; and two, what steps can or should companies take to prevent use of child labour not only in their own factories, but also down their supply chains? Export-driven industries have to meet certification requirements from buyers, but what about companies catering to domestic markets? The new National Child Protection Policy is <a href="http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/pakistan/03-child-protection-policy-draft-sent-to-social-welfare-ministry-ss-05">under finalisation</a>, but it too does not offer any answers to either of these issues. The UN Global Compact's Pakistan network also has little to show for its efforts on this front, although it counts the Employers Federation of Pakistan as a member. <br /><br />The search for solutions to this issue, it seems, shall continue.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-78067054742703474572009-10-04T12:28:00.004+06:002009-10-04T13:19:52.948+06:00Bringing Better Corporate Governance on BoardAbsence of adequate professional capacity is a persistent bane for efforts aimed at developing a strong corporate sector anywhere and Pakistan is no exception. Along with cross-representation of family members on Boards which tends to lead to conflicts of interest and to a hazy corporate culture, the fact that members on Boards of Directors are not always up to speed on the cutting edge of knowledge, international best practice and even the country's own laws and regulations, weakens corporate governance. The promulgation and enforcement by the SECP of the <a href="http://www.secp.gov.pk/news/code_corporate(revised).htm">Code of Corporate Governance</a> in 2002 has helped raise standards but has a supply-side bias and does not stress capacity building of Board members enough. Now it seems the regulators may finally be taking steps to correct this. <br /><br />According to <a href="http://www.thenews.com.pk/daily_detail.asp?id=201411">a report in the daily News</a>, the <a href="http://www.kse.com.pk">Karachi Stock Exchange</a> has been directed by the <a href="http://www.secp.gov.pk">Securities and Exchange Commission of Pakistan</a> to amend its listing regulations to include a provision that members of the Board must possess a certification under a Board Development Series, an internationally accredited Director Education Program developed by the <a href="http://www.picg.org.pk">Pakistan Institute of Corporate Governance</a>. This regulation would be implemented in phases, with at least one member of the Board to have this certification before 30 June 2011 and thereafter, every following year minimum one director on the board "shall acquire the said certification under this programme". <br /><br />The Pakistan Institute of Corporate Governance was established a few years back as a not-for-profit company and hopes that this Business Development Series, which is accredited by <a href="http://www.riskmetrics.com">RiskMetrics Group of USA</a>, and allows for due recognition by rating companies when evaluating the participant’s organization, will strengthen corporate governance in Pakistan. <br /><br />Time will be the judge of whether this aim is met.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-53573427571617061542009-09-29T21:24:00.004+06:002009-09-29T21:46:02.649+06:00CSR in the Textile IndustrySaw this very <a href="http://www.chinadaily.com.cn/bw/2009-07/20/content_8447321.htm">interesting article in the China Daily</a>, which highlights steps taken by the top Chinese textile firms to improve their CSR practices and reporting. From this report, it does appear that it's not just window-dressing, as sometimes these things tend to be, because the steps indicated--improvement in working conditions, fairer wages, more efficient use of energy--all are substantive initiatives that clearly show the integration of CSR within operations.<br /><br />Interesting to note that not a single Pakistani textile firm has signed up to the <a href="http://www.unglobalcompact.org">UN Global Compact</a> (UNGC) network. While membership in the UNGC is not the ultimate test of commitment to CSR, it is a telling indicator.<br /><br />Will Pakistan's textile industry take note of what their Chinese counterparts are doing?Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-63958790590931321232009-09-25T17:21:00.006+06:002009-09-25T17:51:58.679+06:00Souring the Deal? CCP Claims Existence of a Sugar CartelFresh from the traumatic ups and down suffered at the hands of the government <a href="http://corporatewatchpakistan.blogspot.com/2009/09/paying-price-of-confronting-pakistans.html">as mentioned in a previous post</a>, and smack in the middle of a perennial sugar crisis, the <a href="http://www.mca.gov.pk">Competition Commission of Pakistan</a> (CCP) appears to be back in full swing, claiming in a report submitted to the Supreme Court of Pakistan, that the preliminary results of its investigations into the sugar crisis pointed to 'collusive behaviour and prima facie cartelisation'. Snippets of the report can be read in this <a href="http://www.thenews.com.pk/daily_detail.asp?id=199854">news story in the daily Dawn</a>.<br /><br />Interestingly, the CCP website also carries a <a href="http://mca.gov.pk/Downloads/Policy%20Note%20(Sugar).pdf">Policy Note on the alleged Price Fixing Agreement</a> between the government and the <a href="http://www.psmaonline.com/psma/home.aspx">Pakistan Sugar Mills Association</a> (PSMA), allowing the fixing of prices at certain rates. In this Note, the CCP advises the government to scrap the Agreement since it amounts to 'legitimization of practices prohibited under law' and urges it to 'not provide any patronage to anticompetitive practices and measures that in effect promote and encourage collusive behaviour'. <br /><br />All this brings three questions to the fore: <br /><br />1. How responsibly are the Boards of the sugar companies, almost all of whom are listed companies on the country's bourses, acting? <br /><br />2. What role has the <a href="http://www.secp.gov.pk">Securities & Exchange Commission of Pakistan</a> (SECP) played so far in reviewing corporate practices that another regulator is tagging so publicly as inappropriate and illegal?<br /><br />3. With all and sundry apparently wanting to sweeten the deal for the sugar barons, will anyone in government pay heed to the CCP's advice?Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-36557810951842108332009-09-06T17:13:00.006+06:002009-09-08T10:12:05.615+06:00Paying the Price of Confronting Pakistan's Cement Cartels?I am thankful to Salman Naveed Khan, CEO of <a href="http://www.onetreehill.com.pk">One Tree Hill</a>, an integrated solutions firm based in Lahore, for pointing out to <a href="http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/business/04-cement-companies-fined-for-forming-cartel-qs-09">the news</a> about the recent judgment of the <a href="http://www.mca.gov.pk">Competition Commission of Pakistan</a> (CCP), which concluded that 20 cement companies had formed a cartel; a heavy $77m financial penalty was also imposed by the Commission on the guilty companies. <br /><br />Almost immediately--and somewhat predictably--after the judgment was announced on 27 August 2009, the Chairman of the CCP, Khalid Mirza, was sacked. The Prime Minister himself has denied that the judgment itself was the reason for the ouster and in a fairly bizarre move, <a href="http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Karachi/05-Sep-2009/PM-restores-Chairman-CCP-Khalid-Mirza-for-onemonth">overturned the order of termination</a> of Mr. Mirza's contract and restored him for one month. This is the second time that Mr. Mirza, an ex-World Bank senior manager, has been shown the door because of what appears to be a principled and professional stand; his stint as Chairman of the <a href="http://www.secp.gov.pk">Securities & Exchange Commission of Pakistan</a> was also cut short, despite improvements he brought about in the institution.<br /><br />Without going into details of this flip-flop decision making, the incident does send a poor signal to the regulators and also reflects on the immense political influence that the business community wields. As indicated in the judgment (<a href="http://www.mca.gov.pk/Downloads/Cement%20(final%20order)%2027-08-2009.pdf">click here</a> to download it or go to <a href="http://www.mca.gov.pk">www.mca.gov.pk</a>--makes very interesting reading on how the business operates to the detriment of consumers) the cement industry has been notorious for its tendency towards cartelisation and has been found guilt twice before: in 1992 when the CCP's predecessor, the Monopoly Control Authority (MCA) found that cement companies had formed a cartel in the wake of the post-floods reconstruction; and in 1998, when the MCA determined that a cartel was formed to hike the price of cement by nearly 100%. This history aside, the fact that the regulator was willing to confront the business community for engaging in uncompetitive practices was an act that needed to be backed by the government. I am willing to believe that by appointing a professional like Mr. Mirza, the intentions of the government were nobler than they might appear to be in the wake of the recent charade, but commitment requires appropriate action to give it credibility; when put to the test, the government seems to have balked. The government would also be bucking the global trend, which has witnessed regulators eschew liberal, unregulated-economy models for a more balanced, stronger regulatory regime.<br /><br />If the government does indeed back down and the judgment is not enforced or a compromise arrived at with the cement industry, aside from Mr. Mirza, it is the consumer who will be paying the price of confrontation. Wonder if the government ever considers that when taking such politically motivated decisions?Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-33809928522030199972009-09-01T13:50:00.003+06:002009-09-01T15:08:16.927+06:00Participant's Death in Unilever's Reality TV Show: Who's Responsible?The sad and tragic death of Saad Khan, a 32 year old contestant in a branded Reality TV Show that was intended as a promotional tie in for <a href="http://www.unilever.pk/aboutus/introductiontounilever/UnileverPakistanLtd/default.aspx">Unilever's</a> Clear Shampoo, raises questions of where corporate responsibility begins and ends. The TV show, managed by media agency <a href="http://www.mindshareworld.com/">Mindshare</a> and apparently produced by Mumbai-based production house Working Hands Production, was being filmed in Bangkok, when Saad drowned in a pond while performing a diving stunt, on August 19th. <br /><br />The news of the death was first broken by <a href="http://www.aarpix.com/mag/">Aarpix</a>, an online ezine. In the aftermath of the anger, sadness and outrage that poured across the internet against Unilever Pakistan, the company's response was slow and predictable. Claiming that they had no role in the production of the show (which is true) and thus distancing themselves from any liability as regards the participant's death, Unilever did state that they were is in discussions to provide for Khan’s wife and four children ‘out of rightness.’ My old friend Fareshteh Aslam is the External Communication Manager at Unilevers and I'm confident that she will see this expressed commitment through. However, I do wish that her official response had been couched in more sensitivity than it appeared to be. I'm also disappointed that there was nothing on their website about this event. Ditto with the <a href="http://www.paa.com.pk">Pakistan Advertising Association</a> and Mindshare. <br /><br />Since all facts relating to the incident (for e.g. what legal documentation and safety precautions were in place) are not yet known, it would be unwise to speculate over what happened. What is clear though, is that the unfortunate event brings to the fore issues of responsible advertising, with the argument of sponsors--in this case Unilevers--being equally responsible for what their agencies and production partners do. To draw an analogy with the manufacturing industry, if Nike can be held responsible for ensuring good and decent work practices down their supply chain, why shouldn't sponsors of ads or branded TV shows be held similarly accountable?<br /><br />Will follow this story as it unfolds and report here, but there is a need to build up public pressure for ensuring disclosure on the event. I've created this <a href="http://www.ipetitions.com/petition/corporatewatchpakistan/">online petition</a> which you can sign. Spread the word.<br /><br />Meanwhile, spare a thought for the family of the departed and if you want to, visit this <a href="http://aarpix.com/forum/index.php?topic=2.msg3#new">online condolence book</a> set up by Aarpix.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-33785338763824159642009-08-29T12:41:00.004+06:002009-08-29T12:59:06.696+06:00Central Bank Moves to Scale Up MicrofinancingThe <a href="http://www.sbp.org.pk">State Bank of Pakistan</a> amended the Prudential Regulations for Microfinance Banks (MFBs) to facilitate lending to the lower income groups. As announced by the central bank, the <a href="http://www.sbp.org.pk/mfd/2009/C2.htm">new Regulations</a> allow MFBs to lend up to Rs150,000 for general purpose and Rs500,000 for housing purpose. It is widely believed that these changes have been made to scale up microfinance initiatives in the country by enabling greater lending to lower income segments, particularly for meeting low-cost housing needs. Pakistan faces a <a href="http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/in-paper-magazine/economic-and-business/housing-backlog,-business-opportunity-789">huge backlog of residential units</a>, with independent estimates placing the number at over 6 million and the National Housing Policy at 4.3 million; microloans for low-cost housing are seen as instruments for bridging this gap and social entreprenurial ventures such as the <a href="http://www.acumenfund.org">Acumen Fund</a> and Saaiban have been doing exactly this, with considerable success in Karachi and Lahore.<br /><br />In another welcome move, the State Bank <a href="http://www.sbp.org.pk/smefd/circulars/2009/C13.htm">issued a circular</a> calling on commercial banks to make SME loan application forms and other documentation available in Urdu, in addition to English. Given the low levels of literacy, this is a sensible step to facilitate SMEs and entrepreneurs and one wonders why this wasn't done earlier.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-12505661024011100562009-08-13T16:30:00.003+06:002009-08-13T16:37:42.485+06:00GRI Claims Sustainability Reporting UpThe <a href="http://www.globalreporting.org">Global Reporting Initiative</a> (GRI) has published its latest database on companies reporting on sustainability issues. In terms of the numbers of reports, the top ten countries are:<br /><br />1. Spain 128<br />2. USA 100<br />3. Brazil 64<br />4. Australia 56<br />4. UK 56<br />6. Japan 49<br />7. Germany 41<br />7. South Africa 41<br />9. Italy 38<br />10. Canada 36<br /><br />Sadly, Pakistani companies do not feature in the top reporter's list, although several companies do report using the GRI tools. Read the news items about the latest database <a href="http://www.globalreporting.org/NewsEventsPress/PressResources/PressRelease_14_July_2006_1000GRIReports.htm">here</a>.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-20521768305124010512009-08-13T14:43:00.004+06:002009-08-13T15:04:08.069+06:00ARL Wins UN GC AwardThe <a href="http://www.arl.com.pk">Attock Refinery Limited</a> (ARL) won the "Living the United Nations Global Compact Responsible Business Award 2009" in the Large National Category. The award recognises Pakistani enterprises that best integrates the 10 principles of the United Nations Global Compact into their business philosophy and acknowledges organisations demonstrating adherence to these principles in action. <br /><br />I have long been an advocate of the need to incentivise CSR in Pakistan and awards like this one and the <a href="http://www.accaglobal.com/pakistan/publicinterest/sustainability/">ACCA-WWF Sustainability Awards</a> of which I have been a part for long, help to promote the concepts related to corporate responsibility and the adoption and integration of the 10 <a href="http://www.unglobalcompact.org">UN Global Compact </a>principles into the mainstream business planning and activities. So kudos to the organisers for providing another incentive to the corporate sector in Pakistan for CSR promotion and to ARL for winning the award.<br /><br />Click <a href="http://www.brecorder.com/index.php?id=948295&currPageNo=1&query=&search=&term=&supDate=">here</a> to read the related press release by ARL.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-52721842112611129082009-08-11T12:04:00.002+06:002009-08-11T12:13:42.055+06:00Government's Role In CSR?Speakers at a <a href="http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/business/13+businesses+seek+govt+help+on+csr-za-14">recent event</a> in Lahore debated the virtues and need for State support for CSR initiatives. Speakers from FritoLay, P&G, EBM and the Pakistan Centre for Philanthropy spoke about the different ways in which government support could help promote CSR in Pakistan. <br /><br />This continues the debate on exactly what role the government has in promoting CSR. As I had mentioned in <a href="http://corporatewatchpakistan.blogspot.com/2007/07/should-csr-be-mandatory.html">an earlier post</a>, there is clearly an oversight function that governments can play, but it can also help incentivise CSR through fiscal instruments. In countries like Indonesia, CSR is legislated but that may be going too far and prove counterproductive in the end. What is important however, is for government to work <span style="font-style:italic;">with<span style="font-weight:bold;"></span></span> the corporate sector to facilitate CSR activities.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-87623366294562189552009-08-06T15:40:00.006+06:002009-08-06T16:32:06.191+06:00Getting to the Root Cause: Pakistan Sets Tree Plantation RecordPakistan chalked up another entry in the Guinness Book of World Records, when 300 volunteers planted 541,176 mangrove saplings on 15 July in the wetlands of the Indus River Delta in Thatta District. This brilliant effort comfortably beat the previous record of 447,874 in a single day held by India. Pakistan has committed to plant 120m trees as part of the <a href="http://www.unep.org/billiontreecampaign/">UNEP's Billion Tree Campaign</a> and to increase its forest coverage by 1m hectares by 2015. Read the UNEP press release <a href="http://www.unep.org/Documents.Multilingual/Default.asp?DocumentID=593&ArticleID=6257&l=en">here</a>.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-28864361235360228312009-07-13T15:34:00.003+06:002009-07-13T16:04:52.123+06:00The Continuing Struggle of Pollution Control in TanneriesDespite earnest efforts by the Pakistan Tanners Association (PTA), the battle against pollution caused by discharge of untreated effluents continues. With over 1200 tanneries employing nearly 200,000 people and contributing 7% of total exports, the leather industry is an important sector of the economy. However, outdated equipment and production techniques, lack of access to solid waste disposal sites, low investments in affluent treatment plants and poor coordination between the private sector and the city, provincial and federal governments have resulted in continued pollution. <br /><br />The PTA has made <a href="http://www.flare.com.pk/news.php?n=453">several suggestions</a>, including waiver of Export Development Surcharge on treatment plants, provision of landfill sites and support in access to technical and financial resources, but progress has been slow. However, there is a silver lining to the cloud, with functional treatment plants in Karachi's Industrial Trading Estate (KITE), Kasur and Sialkot and the adoption of cleaner production technologies with help from UNIDO and the Netherlands government, helping reduce environmental pollution. Furthermore, as <a href="http://jang.com.pk/thenews/jul2009-weekly/busrev-13-07-2009/p4.htm">reported today</a>, the development of a special zone in Sialkot on a public private partnership basis, will bring all tanneries into a spatially contiguous area and allow for common services for treatment and disposal of effluents.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-13494093307394526682009-06-24T13:09:00.005+06:002009-06-24T14:21:04.297+06:00eWaste, anyone?Technological innovations and planned obsolescence in the electronic industry in general and the computing industry in particular have an unwanted outcome: accumulation of old, discarded and outdated equipment, otherwise known as <a href="http://en.wikipedia.org/wiki/Electronic_waste">e-Waste</a>. Developing countries are often used as dumping grounds for this e-waste and Pakistan is no different. <a href="http://ewasteguide.info/pakistan-hazards-e-w">According to the IUCN</a>, import of second hand computers adds to the 50,000 tonnes of solid waste generated in the country every day. These concerns echoed again at a <a href="http://epaper.dawn.com/artMailDisp.aspx?article=24_06_2009_002_011&typ=0">recent discussion </a>organised in Islamabad on 'Cost effective or technology defective’ where speakers from both public and private sectors emphasised the need to dig deeper in to the dumping carried on in the garb of bridging the digital divide.<br /><br />Some 500,000 old computers are imported into the country, mainly from the US, EU and Singapore. Although Pakistan is a signatory to the <a href="http://www.ban.org/country_status/country_status_chart.html">Basel Convention on eWaste</a>--initiated in response to numerous international scandals regarding hazardous waste trafficking that began to occur in the late 1980s--the import of these old computers as well as phones, TVs etc. continues, adding to the environmental hazards faced by the country.<br /><br /><a href="http://www.greenpeace.org/">Greenpeace</a> did an interesting photo-essay on eWaste in Pakistan, where they tracked what happens to eWaste in Lyari in Karachi. You can view the photo-essay <a href="http://www.greenpeace.org/international/photosvideos/greenpeace-photo-essays/scrap-life-pakistan-with-rob">here</a>. There are several other sites such as Lyari across Pakistan, particularly in Lahore, where such hazardous activities are going unabated and unchecked. The Federal and Provincial Environmental Agencies appear to be woefully incapable of addressing this issue. On the flipside, the livelihoods of thousands of people are linked to this work and one is not sure of the impact any regulatory move would have on these jobs.<br /><br />My own view on this is that while eWaste is definitely an issue and the Pakistani government as well as the companies in the developed countries themselves need to assume greater responsibility, an argument could be made to avoid a complete crackdown on this flourishing informal sector activity. The Pakistani government could develop and enforce minimum safety standards, and help sustain jobs in this recycling industry, while the governments in the developed world should ensure that companies in their respective countries follow the Basel Convention!<br /><br />And lastly, here's an <a href="http://www.greenpeace.org/international/campaigns/toxics/electronics/how-the-companies-line-up">updated status</a> on which companies are acting responsibly as regards eWaste.<br /><br /><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0" id="Green v.11MX" width="430" align="middle" height="237"> </object>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-86117686954796660292009-06-16T09:43:00.003+06:002009-06-16T09:57:45.874+06:00Banking on Better Corporate GovernanceAmidst all the hoopla generated by the global financial and economic crisis, the need for a stronger and more robust regulatory regime has emerged as a common theme echoed by pundits of all ilk. However, in this drive for assigning a greater role for the state, the role of self-regulation should not be consigned to the bin of history. It was therefore good to read about Saleem Raza, the Governor of the Pakistan central bank, calling upon the banking sector to improve their corporate governance practices and enhance transparency through greater disclosure.<br /><br /><a href="http://www.thenews.com.pk/daily_detail.asp?id=183151">Click here</a> to read what the Governor said.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-84081321557824272102009-06-02T10:20:00.002+06:002009-06-02T11:30:56.584+06:00Corporate Sector Rallies in a Time of NeedThe ongoing army operations against militants holed up in the North West Frontier of Pakistan has led to what the UN terms as one of the largest mass migrations in recent history, with more than 3m people having to flee to safer zones. As can be imagined, massive relief efforts were required to cater for the immediate needs of the Internally Displaced Persons (IDPs), including shelter, food and medicines. The corporate sector in Pakistan has played an active role in contributing to these efforts, with the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) <a href="http://www.brecorder.com/index.php?id=41342&currPageNo=3&query=&search=&term=&supDate=">donating Rs. 150m</a> in the form of relief goods, the Jang Group (Pakistan's largest media house) raising millions of rupees thru telethons and offline campaigns, local airline <a href="http://www.airblue.com">AirBlue teaming up with an NGO HelpCounts</a> for airlifting of relief goods, the Pakistan Telecommunication Corporation <a href="http://www.ptcl.com.pk/pressrelease.php?id=155">setting up free Public Call Offices</a> at the IDP camps and the telecom companies donating Rs.100m to the Prime Minister's fund for IDPs. Employees of a very large number of other firms have donated a day's salary to the fund and even Emirates airlines has pitched in, shipping 120 tonnes of supplies for the IDPs. <br /><br />Despite all these efforts, the scale of the challenge is enormous and the government is seeking more donations in cash or kind. If you want to help, visit <a href="http://helpidp.org/">http://helpidp.org/</a>, <a href="http://www.geo.tv/swat/">http://www.geo.tv/swat/</a> or <a href="http://202.83.164.26/wps/portal/Cabinet">see details of the Prime Minister's Fund</a> to which you can send your donations. If you're in Pakistan, you can donate Rs.10 per SMS by typing FUND and sending it to 1199 for donating to the Prime Minister's Fund. And remember, every bit helps.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-43543779482718487892009-05-29T08:28:00.005+06:002009-05-29T08:38:46.488+06:00Green Accounting for Staying Out of the RedWith the UNDP estimating that environmental degradation costing Pakistan over Rs. 350b every year, the need for following green agendas is self-evident. At a <a href="http://epaper.dawn.com/artMailDisp.aspx?article=29_05_2009_002_003&typ=0">recent workshop</a>, experts suggested the introduction of 'green accounting' frameworks to calculate the costs of environmental depletion. The WWF agrees with earlier assessments that the costs of environmental degradation are as high as 6% of the GDP and needs a concerted mix of fiscal, monetary and managerial steps to reduce these costs. Businesses often tend to ignore or underestimate such costs but as was clearly indicated by speakers at the event, it's time their books stay in the green in the more ways than one.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-44755278154392556002009-05-12T19:11:00.002+06:002009-05-12T19:36:59.694+06:00Promoting Environment ProtectionTwo good pieces of news have emerged from the government side. First, there is a commitment to introduce environment as part of curriculum in public schools. The Ministry of Environment <a href="http://www.pakpositive.com/2004/09/12/environment-conscious-curriculum-for-schools-soon/">announced</a> recently that it would collaborate with the Ministry of Education to include environment as a subject, helping raise awareness in youth. This is indeed a welcome initiative. The government agencies would be well advised however, to include civil society organisations, most notably the <a href="http://www.bookgroup.org.pk">Book Group</a>, which have established expertise in alternative textbooks and teaching resources, mainly with funding from corporate entities as part of their CSR initiatives.<br /><br />The second encouraging news relates to plans to introduce Euro-II emission standards for petrol driven vehicles from July this year and for diesel driven automobiles from July 2012. As <a href="http://epaper.dawn.com/artMailDisp.aspx?article=14_04_2009_153_009&typ=0">reported</a> in the press, the Ministry of Petroleum and Natural Resources will have to ensure availability of Euro-II compliant diesel with low sulphur, by January 2012. This move also ties in with the government's plans to reduce air pollution and promoting the use of CNG-run vehicles, including the introduction of 8,000 CNG buses in major cities of the country.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-2795104798740668068.post-81000832151386589812009-04-12T09:19:00.002+05:002009-04-12T10:25:50.291+05:00Deaths in a Karachi Effluent Treatment Plant: Occupational Hazard?Four workers in an effluent treatment plant in Karachi's Korangi Industrial Trading Estate, have allegedly died due to a methane gas leak in one of the plant's desludging pipes. This incident, <a href="http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/pakistan/sindh/workplace-safety-hs">reported widely</a> in the daily newspapers, is the latest in a long list of events that amount to gross negligence on part of the employers and to a failure of the regulatory system. <br /><br />Provisions related to Occupational Safety & Heath are spread across a number of legislation, including the Factories Act, 1934; Provincial Factories Rules; Hazardous Occupations Rules, 1963; Mines Act, 1923; West Pakistan Shops and Establishments Ordinance, 1969; Provincial Employees Social Security Ordinance, 1965; Workmen’s Compensation Act, 1923 and Dock Laborers Act, 1934. While there may be a case--oft pleaded by experts--for consolidating and updating these provisions, there appears to be neither a work safety culture nor any momentum for change. In 2001, the Government of Pakistan promised to set up a National Occupational Safety and Health Council but that initiative has yet to see the light of the day. Similarly, a National Labour Protection Policy was published in 2006 which called for improving work safety and working environment for labour. No report on whether this policy is being implemented or not, has been published by the Government. <br /><br />The existing laws are overlapping in scope and tend to be soft on reporting requirements, making data collection on the actual number of casualties, injuries and health concerns due to poor work environment a very difficult task. The existence of a large number of informal businesses compounds this problem because they are unregulated and hence no official data can be compiled on them. Curiously enough, the <a href="http://www.statpak.gov.pk/depts/fbs/publications/lfs2006_07/results.pdf">Labour Force Survey 2005-06</a> claims that at 41%, the majority of OSH related casualties/injuries took place in the agriculture sector, with manufacturing (15%), construction (14.5%) and mining (.3%) lagging far behind. Conventional wisdom would suggest the exact opposite in terms of results and this clearly points to under-reporting in the non-agriculture sectors.<br /><br />Moreover, there is little confidence in the regulator's willingness and ability to ensure compliance with these standards. But as I have often argued on this blog, the employers must deliver on their responsibilities as well and develop work safety standards that meet international benchmarks, not just the outdated ones found in the current Pakistani legislation. While this is already happening in export-oriented sectors who have to meet exacting international standards set by the buyers, there is a need for the rest of the sectors to catch up.Unknownnoreply@blogger.com0