KARACHI: When they spend on social sectors, companies are proud to call themselves: A "good corporate citizen". Because of their enormous resources, most multinational corporations (MNCs) fall in that rank for majority of the local firms are either less inclined or do not have much of a cash to spare.
But there are 33,500 registered companies, of which just about 690 are listed on the Karachi Stock Exchange. Since the performance of all of those 33,000 private companies is not exposed to the public eye, it is difficult to conclude if most of them do enough in terms of lending a helping hand in the social sectors. But schools, hospitals and old and poor people homes set up by entrepreneurs of private companies, abound. In well integrated communities, it is the "seths" of private companies who take upon themselves the responsibilities for the social well-being of their community members. But much of their work is centred in the cities.
In the far flung villages and industrial zones, companies do provide housing, healthcare and education mainly to their workers and their family. But such lavishness is suspect for it could have more to do with the well-being of the company then its employees.
Workers can work longer hours and with good health, if social services are provided within the workers colonies close to the factories, then if they were to travel every day for miles from their homes in the cities to the workplace.
Nearly all big firms and MNCs spend varying sums on social sectors, not just for their employees, but as a noble cause. As a sample consider the few cases: Hub Power Company (Hubco)-one of the largest company listed on the KSE, earned net profit of Rs 6 billion during financial year 2003.
Vince Harris, CEO of Hubco says that his company carries on its Social Action Programme (SAP) in association with International Power.
Hubco's SAP concentrates on education, health and community welfare sectors.
"The major activity during 2003 was to conclude a sponsorship agreement with a not-for-profit organization in building up a 500-student capacity primary & secondary school close to the Power Plant", said the CEO.
The company also donates books and stationery to government school in local village. In the field of healthcare, Hubco held its regular free eye camp in which 1,044 OPD cases were handled during 2003 and 118 cataract operations were carried out.
Hubco has also funded the construction of an Olympic size swimming pool in Lahore with the cooperation of Wapda.
Siemens Engineering, another giant on the listed corporate sector, which made Rs350 million after tax profit in 2003, says it views vocational training, continuing education, development, safety and health of its employees as high priorities.
"The company supports educational initiatives, promotes sports and cultural events and provides help to the needy", said Sohail Wajahat Siddiqui, company MD in his 2003 annual report.
Sui Northern said it was pursuing the initiative of establishing an effective Health, Safety and Environment (HSE) management systems.
Sui Northern made Rs2 billion in profit this year.
The shoe-making company Bata Pakistan, which earned nearly Rs90 million in taxed profit, said it endeavoured to impart necessary education and training to improve productivity and quality.
The company was also said to provide theoretical and practical vocational training to young matriculates in the Engineering Department.
Jawaid Tariq Khan, chairman of the local drug company - Highnoon Laboratories- says that in relation to social responsibilities his company believes in holistic approach. "This encompasses fine areas like promoting art & culture, valuing sports and supporting social causes such as vaccination camps and donating medicaments for war victims across the globe", says the chairman of Highnoon that made Rs36 million in profit in 2003.
PSO-the oil marketing giant affirms: "Our social commitments to the community now encompasses education, health care, disaster relief and cooperation with public service institutions". PSO made after tax profit of Rs3 billion in nine months to end March, this year.
The rival Shell Pakistan noted that in an effort to encourage local population to use LPG as an alternative fuel to firewood and thus prevent deforestation in area surrounding the Ayubia National Park, the company subsidized equipment cost of LPG for 300 local households. "The project will now be rolled out to approximately 25,000 households in the surrounding area in which Shell will continue to partner with World Wildlife Fund (WWF). The company had made after tax profit of Rs 813 million during the three-quarters.
The above is just a glimpse of how some of the corporates are helping out people in the social sectors. It is neither a full account of the contributions of those companies, nor what scores of others are doing in their effort to remain in the ranks of "good corporate citizens".































