Responsible Business Guide: A Toolkit for Winning Companies

RBG
Responsible Business Guide: A Toolkit for Winning Companies
18 Checklist 0: for a CSR strategy to be sustainable and not merely a cost to your precious
company resources, be prepared to make sure EACH of these nine are addressed. The road
to CSR is littered by attempts that ignored these cardinal rules of sustainable CSR. On the
positive side, being sensitive to these will embed CSR in your operations seamlessly.
19 Quoted from the speech of Prime Minister Shaukat Aziz to aggrieved depositors present at
the cheque presentation ceremony, reported in Dawn, 10 November, 2001.
20 In Pakistan, corporate compliance is regulated by the Securities and Exchange Commission
of Pakistan. Its counterparts exist all over the world, such as the U.S. Securities and Exchange
Commission, Britain’s Financial Services Authority, Australia’s Prudential Regulation Authority,
etc. Non profit organizations also play an increasingly important part as watchdogs or
resources for corporate compliance. Examples of these include the Society of Corporate
Compliance and Ethics (SCCE), the Open Compliance and Ethics Group (OCEG), and other
official or semi-official initiatives for elaborating and encouraging regulatory compliance,
ethical business governance, and associated risk management, such as the Responsible
Business Initiative in Pakistan and the SARC-based Forum on Responsible Business (SAFORB).
21 As reported in Dawn, 1 October, 2009, “the CCP had observed that Zong’s advertisement ‘8
Anna per call’ advert was false and misleading and in violation of Section 10 of the Competition
Ordinance, 2007”.
22 As reported in The News, 1 September, 2009. The Competition Commission of Pakistan found
20 cement companies, members of the All Pakistan Cement Manufacturers Association
(APCMA) guilty of forming a cartel and manipulating the cement market to the detriment of
the consumer. A penalty of Rs. 6.352 billion was collectively imposed on the cartel, being
equal to 7.5% of turnover for the 20 companies, namely, Al-Abbas, Askari (Wah), Askari (Nzm),
Attock, Bestway, Cherat, DGKhan, Dadabhoy, Dandot, Dewan, Fauji, Fecto, Gharibwal, Kohat,
Lucky, Maple Leaf, Pioneer, Flying, PakCement, and Mustehkam. APCMA was fined Rs. 50
million.
23 The Code of Corporate Governance issued by the Securities and Exchange Commission of
Pakistan aims to “stimulate the performance of companies, limit insider’s abuse of power
and monitors manager behaviour to ensure corporate accountability and protection of interest
of investors and society.” A comparable initiative is the Combined Code issued by the London
Stock Exchange, itself modelled on the Sarbannes-Oxley Act of the United States, which calls
for greater personal responsibility on the part of company leadership in disclosing compliance
information accurately, within the requirements of law, with punitive penalties in case of
non-compliance or concealment.
24 Money laundering: Preventing of the use of the financial system for the purpose of money
laundering.
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Responsible Business Initiative