Corporate Social Responsibility - Sustainable Development Policy ...

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Studying the Sugar Production Process in PakistanIntroductionThe purpose of this study is to understand the status of CSR practices in thesugar industry of Pakistan with the use of the value chain analysis. The samplewas selected because sugar industry is an agro based industry and forms majorpart of economy. This industry’s area of work is also spread across villages and tothe cities where its consumers live.Pakistan’s economy is largely an agriculture based economy. Agriculture provideslivelihood to almost 44.7 percent of the total employed labor force in the countryand the present contribution to GDP stands at 21.8 percent. 1 In Pakistan majorcrops such as wheat, rice, cotton and sugarcane account for 82% of the valueadded in the major crops. These major crops on average contribute 33.1% to thevalue added in overall agriculture and 7.1% to GDP 2 in which sugarcane by itselfcontributes 3.4 percent and 0.7 percent, respectively. 3 Being the second largestindustry in Pakistan with 82 mills the sugar industry is an important segment ofthe corporate arena of the country. The sugar industry employs over 75000 people;it approximately holds, directly and indirectly, 1.5 million of the total employmentof the country. Along with other levies to the Government, the industrysupplements around Rs. 4 million under the head of excise duty. 4 Table 1 and 2below represent the area under the important crops of Pakistan and theirproduction figures.1Economic Survey of Pakistan 2008-092Economic Survey of Pakistan 2009-103One-man Commission Report, Competition Commission of Pakistan. 2009 (REPORT OF THE COMMISSION APPOINTEDBY THE HONOURABLE SUPREME COURT OF PAKISTAN, THROUGH ORDER DATED 2.10.2009 IN THE TITLEDPETITIONS, TO DETERMINE THE COST OF PRODUCTION AND PROFIT MARGINS IN THE SUGAR SECTOR)4Sugar Industry in Pakistan (M. Aslam Memon, 2002)y9
Corporate Social ResponsibilityTable 1: Area under Important Crops 5Table 2 Production of important crops 6Table 2: Production of Important Crops 6Agriculture in our country has a deep impact on socio-economic setup. The sugarsector covers all social segments the linkages beginning from the grower of rawmaterials passing from the downstream industry it lands on the table of a layman5Economic Survey of Pakistan 2009-106Economic Survey of Pakistan 2009-10y 10
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