Assignment on Social Responsiblity

Embed Size (px)

Citation preview

  • 8/8/2019 Assignment on Social Responsiblity

    1/20

    A RESEARCH ORIENTED REPORT ON SOCIAL RESPONSIBILITY

    OF A MANAGER

    OF PAKISTAN TOBACCO COMPANY

    By

    Tanzeel-ur-Rehman Qazi

    Qazi Roll No.AH525452

    A research project submitted to

    Allama Iqbal Open University

    Islamabad,H-8

    A Research Project Submitted in Partial Fulfillment of the 2nd Assignment

    of Management

  • 8/8/2019 Assignment on Social Responsiblity

    2/20

    Acknowledgement

    I wish to thank to Almighty Allah, who gave me this opportunity to acquire all this

    knowledge. It is His blessing for me that I am able to do all this.

    I want to thank all those people whose support and cooperation was essential in this

    project. It is very important to thank to my supervisor, Ms Qlandar whose help and

    advice helped me a lot. Without his guidance and support, it was impossible for me to do

    this project.

    Lastly but most importantly I am indebted to my Parents and entire family who gave me

    confidence, support, love and care. Their emotional support, care and help were helpful

    for me throughout difficult time. All of them are blessings for me.

    I want to dedicate this research project to my Dearest Parents without whom I am

    nothing.

    Tanzeel ur Rehman Qazi

  • 8/8/2019 Assignment on Social Responsiblity

    3/20

    Abstract

    As a student of master in Business administration (MBA-IT) in my course of

    management. Our respected teacher Sir Qalandar has given me a project which is about

    Social responsibilities of a business manager. For this project I have consulted

    different articles in global and Pakistans perspective that how a concept of social

    responsibility emerged in business sector and its importance in it

    Then I have chosen Pakistan Tobacco Company a major player in tobacco industry by

    keeping thousands of people employed; and by contributing to the annual GDP of

    Pakistan through the large amount of taxes paid on cigarette manufacturing and sales. By

    having the mission of being the first choice for everyone PTC is obviously portraying

    itself as a very focused determined and goal-oriented company .its objectives are not only

    related to sales and profit, but are also reflective of the of the excellent corporate culture

    and the high level of ethical responsibility that the company takes on. Then from facts

    and figures and data through internet and PTC, I have analyzed that how PTC is paying

    its primary attention towards social welfare and retaining its image. On the basis of this, I

    have critically analyzed this company regarding its social concern and also given

    recommendations for it.

  • 8/8/2019 Assignment on Social Responsiblity

    4/20

    BACKGROUND

    Who is Manager..??

    A Manager is the person responsible for planning and directing the work

    of a group of individuals, monitoring their work, and taking correctiveaction when necessary.

    OrA manager is not a person who can do the work better than his men; he

    is a person who can get his men to do the work better than he can.

    Frederick W. Smith.

    What is Social responsibility..??

    Social responsibility is an ethical ideology or theory that an entity, be it

    an organization or individual, has an obligation to act to benefit society at large. Thisresponsibility can be passive, by avoiding engaging in socially harmful acts, or active, by

    performing activities that directly advance social goals.

    What is CSR..??

    Corporate social responsibility (CSR) is social responsibility as applied to businesses. It

    involves businesses acting in accordance with social principles. This could come in the

    form of outright philanthropy or modified practices, and involves the appliance

    of business ethics in determining business policy.

    For each business, different measures are taken in consideration to classify a business as

    "socially responsible". Each business attempts to reach different goals. There are four

    areas that should be measured regardless of the outcome needed: Economic function,

    Quality of life, Social investment and Problem solving.[1] that are trying to be achieved

    should be measured to see if it meets with the cost guidelines that the business is willing

    to contribute.

    http://www.brainyquote.com/quotes/quotes/f/frederickw201583.htmlhttp://www.brainyquote.com/quotes/quotes/f/frederickw201583.html
  • 8/8/2019 Assignment on Social Responsiblity

    5/20

    Emerging Normative Status of Social Responsibility

    Social responsibility as a non-binding, or soft law principle has received some normative

    status in relation to private and public corporations in the United Nations Educational,

    Social and Cultural Organization (UNESCO) Universal Declaration on Bioethics and

    Human Rightsdeveloped by the UNESCO International BioethicsCommittee particularly in relation to child and maternal welfare.(Faunce and Nasu 2009)

    The International Organization for Standardization (ISO) is developing an international

    standard to provide guidelines for adopting and disseminating social responsibility: ISO26000 - Social Responsibility. Due for publication in 2010, this standard will "encourage

    voluntary commitment to social responsibility and will lead to common guidance on

    concepts, definitions and methods of evaluation." (ISO, 2009) The standard describesitself as a guide for dialogue and action, not a constraining or certifiable management

    standard.

    Social Responsibility of business management

    Social responsibility is the awareness that business activities have an impact on society,and the consideration of that impact by firms in decision making. Besides emphasizingprofits, firms concerned with social responsibility voluntarily engage in activities that

    benefit society. A socially responsible firm makes deliberate, regular efforts to increase

    its positive impact on society while reducing its negative impact.

    EmployeesBusinessActivities

    Consumers

    Investors

    Environment

  • 8/8/2019 Assignment on Social Responsiblity

    6/20

    1. RESPONSIBILITY TO CONSUMERS

    Pressure from consumers and special interest groups has prompted many

    business firms to adopt socially responsible policies. Consumerism includes the

    activities of individuals, groups and organizations aimed at protecting consumerrights. Consumer groups perform many activities, including testing and

    reporting on the safety and performance of products and service firms,informing the public and government officials of consumer issues, and

    advocating legislation.

    Evolution Of Consumer Movement :

    The consumer movement gained momentum during the 1920s and 1930s.

    During the Great Depression, many consumers blamed business firms for

    joblessness and difficult economic times. During this time, President John F.Kennedy established the consumer Bill of rights, which includes the right to

    safety, the right to be informed, the right to choose and the right to be heard.

    These four rights underlie many of the goals espoused by people andorganizations active in consumerism today.

    The Right to Safety :The most basic consumer right is the right to products that are safe to possess

    and use. To ensure safety of goods, manufacturers should test them and provide

    buyers with explicit directions for use. In 1972 the federal government createdthe consumer product safety commission (CPSC) to monitor the safety of

    thousands of products sold to consumers. Many state and local agencies also

    regulate product safety.

    The Right to Be Informed :Consumers have the right to receive information available about a product

    before they purchase it. Necessary information for goods includes ingredients

    and detailed instructions for use.The Right to Choose :

    Consumers have the right to choose and make purchases from a variety of

    products at competitive prices. They also have the right to expect quality at a

    fire price.

    The Right to Be Heard :Consumers also have the right to have their opinions considered in theformation of government policies and in business firms decisions that affect

    them. A number of large firms have established consumer affairs departments to

    address consumer concerns.

    2.RESPONSIBILITY TO EMPLOYEES :

    Like consumers, employees hold certain expectations of business firms. Theyexpect safe working conditions, fair compensation, equal opportunities and

    adequate benefits.

    Safety in the Workplace :In 1970 congress passed the occupational safety and Health Act, which created

    the occupational Safety and Health Administration (OSHA), Charged with the

    primary purpose of ensuring safe working conditions.

  • 8/8/2019 Assignment on Social Responsiblity

    7/20

    Equality in the Workplace :Individuals also expect to be treated equally in the workplace. The Civil Rights

    Act of 1964 guarantees equal employment opportunities for all people

    regardless of age, race, sex, religion, or national origin. This act established theEqual Employment Opportunity Commission (EEOC) a federal agency whose

    purpose is to increase job opportunities for women and minorities.The Hard-Core Unemployed :

    Some organizations also have taken active steps to train the hardcord

    unemployed. These are individuals with little training or few skills and a longhistory of unemployment.

    3. RESPONSIBILITY TO THE ENVIRONMENT :

    Business decisions have a profound impact on the environment. One vitalenvironmental concern is pollution, the contamination of water, air and land. As

    with other social concerns, laws and regulations play a critical part in

    environmental issues.

    Water Pollution :Water pollution is caused by the dumping of toxic chemicals, sewage andgarbage into rivers and streams. Toxins and pollutants from buried industrial

    waste can also find their way into underground water supplies. A recent concern

    is the liberal use of agricultural fertilizers and pesticides, which drain into watersupplies.

    Air Pollution :Air pollution is caused by carbon monoxide and hydrocarbons that come from

    motor vehicles and by smoke and other pollutants from manufacturing plants.The clean Air Act of 1970 and the 1977 clean Air Act Amendment provide

    stringent emission standards for automobiles, airplanes and factories. Land Pollution :

    Land pollution results from strip mining of coal and minerals, forest fires,

    garbage disposal and dumping of industrial wastes, Land pollution often resultsin water pollution because toxic wastes drain into water.

    4. RESPONSIBILITY TO INVESTORS :

    Firms have a responsibility to manage funds properly so as to return a fair profit

    to investors. Mishandling of funds goes beyond penny stock scams. Managers

    have a responsibility to thoroughly investigate their investments and to clearlypresent all facts and risks to investors. When mismanagement causes investors

    to lose large sums of money, the results can be disastrous. Firms have the

    responsibility to make stock information available to all potential investors.

    5.ADVANCING SOCIAL RESPONSIBILITY :

    Many firms recognize the importance of social responsibility and take steps tosee that their policies and activities make a positive impact on society.

    Community Support :Business firms throughout the world provide support for a wide variety of

    activities designed to improve their communities. Both large and small

  • 8/8/2019 Assignment on Social Responsiblity

    8/20

    businesses contribute to the arts, build parks, donate equipment to schools and

    sponsor academic scholarships.

    Self- Regulation :The business community can also advance social responsibility by establishingstandards of conduct and ensuring that individuals follow them.

    The Social Audit :Some firms conduct a systematic review of their performance of social

    responsibility activities through a social audit. A social audit looks at the firms

    short and long-run contributions to society. Activities safety and the impact ofbusiness practices on the environment.

    PAKISTAN TOBACCO COMPANY

    Introduction:Pakistan Tobacco Company Limited (PTC) is a part of British American Tobacco - the

    world's most international tobacco group - with brands sold in 180 markets around theworld. Pakistan Tobacco's operations in Pakistan began in 1947, making it one of

    Pakistan's first foreign investments.

    Principal line of business:The company produces high quality tobacco products to meet the diverse preferences of

    millions of consumers, and it works in all areas of the business - from seed to smoke.The company provides a number of reputed brands of cigarettes to consumers in

    Pakistan, including Benson and Hedges, Embassy, Gold Flake, Capstan and Gold Leaf.

    Location:

    Registered Office:

    Pakistan Tobacco Company Limited

    Dubai Plaza, Plot No. 5

    Street 20, Salman Market, F-11/2

    P.O. Box 2549Islamabad-44000

    Telephone: +92 (51) 2083200, 2083201

    Fax: +92 (51) 2111913Web: www.ptc.com.pk

    Regional Sales Offices:

    North Punjab & N.W.F.P.House # 57-A/6, Satellite Town

    Rawalpindi

    Telephone: +92 (51) 4582390-91Fax: +92(51) 4582392

    http://www.ptc.com.pk/http://www.ptc.com.pk/
  • 8/8/2019 Assignment on Social Responsiblity

    9/20

    Total Number of Employees:

    Total number of employees as at December 31, 2008 was 1,655 (2007: 1,668).

    Reason for decreasing Employees Organizational restructuring

    Telecom sector attracted many employees of the company at high pays, as a result

    high turnover of employee observed. This issue is somewhat now resolved by the

    company as it has started paying more incentives to the employees and also

    giving training and development courses to its employees.Awards Won in the current year:The Company was awarded the following Awards:

    Corporate Excellence Award by the Management association of Pakistan

    BATs Global Environmental Health & Safety Award

    BATs Global Leaf Award.

    25th Corporate Excellence Award in Business and Industry Category

    PTC Annual Report for 2007 was recognized as the best in its category by ICAP

  • 8/8/2019 Assignment on Social Responsiblity

    10/20

  • 8/8/2019 Assignment on Social Responsiblity

    11/20

    CORPORATE STRUCTURE OF PTC

  • 8/8/2019 Assignment on Social Responsiblity

    12/20

    Focus of the OrganizationThe Company focuses on the following operational targets:

    Continued strong volume and profit growth.

    Increased focus on productivity savings.

    Launch of the 3rd cycle of our social reporting dialogues.

    Improved corporate governance.

    Environment, Health & Safety

    PTC and Corporate Social Responsibility

    Maintaining a large scale Corporate Social Responsibility (CSR) program in the

    midst of political change and economic uncertainty was not only a challenge but also apersonal stretch for the people involved. In the past, we have seen and surmounted many

    hurdles, however, the kind of problems we faced in NWFP in 2008 were unprecedented.

    In this context, it is indeed a testament to the steadfast nature of our resolve that we

    remain partners of first choice for our communities, and our CSR initiatives continueundeterred, with the same energy and resolve as before. Our afforestation program

    continues, with an expansion of the total plantation area and increased distribution ofsaplings. In the area of public health, we have completed construction of 8 water filtration

    units, with 5 more planned in 2009. Our Mobile Doctors Units continued to operate

    extensively treating patients in the underprivileged areas; this was in addition to the 19

    medical camps organized in the year. We also held free eye camps and diabeticscreenings in partnership with various organizations such as Merck and Layton

    Rehmatullah Benevolent Trust. In education, the Companys Learning Resource Centers

    saw 588 more students graduate, with an 11% increase in the number of female students.Some 200 students have been provided with the Adult Basic Education Society

    scholarships during the course of the year. We also continued our tradition to engage withour stakeholders, having initiated Stakeholder Dialogue at the end of 2008. Our wellestablished sustainability agenda will see us publishing a Stakeholder Report in 2009.

    PTC is well aware of the unique challenge of operating in the field, and is committed to

    rise to the occasion. I commend their efforts in the year past, and am confident that

    despite some testing times ahead, we will continue to contribute to the communities thatwe work with. People The people in PTC have always been one of our greatest asset and

    we will continue to invest in the same through various initiatives that help us build a

    winning organization. These include programs such as WAADA focusing on shop flooremployee morale, continuous investment in focused functional/leadership training

    programs and coaching programs for first line leader such as TLDW (Team Leader

    Development Program). An Employer Branding campus campaign by the name ofBattle of Minds was also launched in 2008, focusing on attracting the right talent to our

    organization, and this was met with great success. Demand for our highly developed

    local talent also remained high and during 2008, 15 of our managers were sent out forlong and short term assignments to various Operating Companies of BAT around the

    globe. Environment Health & Safety.

  • 8/8/2019 Assignment on Social Responsiblity

    13/20

    PTC has always been a leader in the field of Environment, Health & Safety. EHS

    principles are woven into the fabric of our organization and have now become part of the

    culture in all areas of our business from seed to smoke. Our endeavor to improveenvironmental programs has been recognized repeatedly by the Parent Group (BAT) with

    PTC being awarded the annual EHS Excellence award for the fourth consecutive year in

    2008 and also, being awarded the accident free award for 2008 with No LostWork day Case incident reported across the organization during the year.

    CORPORATE SOCIAL RESPONSIBILITY IN TOBACCO

    COMPANY

    ACCORDING TO THEM.We abide by this philosophy each step of the way:from appropriate marketing and consumer information to supporting sensible tobaccoregulation; from respecting workplace human rights and reducing our environmental

    impact to contributing to local communities. We seek to work continuously to engage

    with our stakeholders, to balance their views and to align our business decision-making

    with the reasonable societal expectations of a modern tobacco company.

    We recognize that Corporate Social Responsibility (CSR) presents particular challenges

    for a tobacco company. Tobacco products pose real risks to health and raise importantquestions about how best to define responsible product stewardship. We, therefore,

    believe that for our business, the only meaningful approach to CSR is one based squarely

    on our products, on the issues around them and on ways of responding to the sometimesstrongly held views of our stakeholders.

    We also hope that more corporations include CSR in their strategic planning processes

    and understand that their businesses provoke a social cost which has to be balanced bykeeping in mind the interests of all the stakeholders and communities involved.

    SOCIAL REPORTINGSocial reporting is a relatively new discipline that, put simply, is the process of

    listening and responding to stakeholders. We are pleased to have evolved this

    process for the third cycle of reporting here in Pakistan, as we have moved to an

    issues based dialogue.

    In reaching consensus on many of the issues that surround our operations, social

    reporting has proven to be an effective mechanism to objectively and robustly addresssociety's needs while embedding the idea of engagement into all areas of business.

    The process provides a structured approach for us to:

    Understand more about the expectations of our stakeholders.

    Enable our stakeholders to listen to each other.

    Ensure that these expectations are given due consideration in the company's

    decision making.

    Demonstrate with actions that we are responsive to reasonable stakeholder

    expectations and concerns.

    We have chosen to follow the most rigorous international standard, AA1000, setby the Institute of Social and Ethical Accountability. In addition, in order to

  • 8/8/2019 Assignment on Social Responsiblity

    14/20

    ensure full compliance with AA1000 and verify the entire reporting process, we

    have selected Bureau Veritas Quality International as our social and ethical

    auditor.

    Youth Smoking Prevention

    We strongly believe children should not smoke, and smoking should only be foradults who understand the risks associated with it.

    British American Tobacco Group companies support and run programmes worldwide

    tackling underage smoking. Due to concerns expressed on youth smoking, PakistanTobacco Company has taken initiatives on several fronts such as voluntary withdrawal

    from electronic media, prohibiting the use of celebrities in marketing material and

    embedding a robust marketing code; the International Marketing Standards (IMS).

    We were the first company to pilot a retailer education programme in 1999 andcontinue to do so. Additionally, our packs and advertising materials have a voluntary

    inscription with the legend under-age sale prohibited. We have supported the

    Government in raising the minimum age limit from 16 to 18 through changes in tobacco

    legislation.

    Education programmes aim: to give young people life skills to deal with the manychallenges they face during adolescence, including peer pressure to smoke. Such

    programmes are amongst the initiatives that British American Tobacco Group companies

    sponsor worldwide and support to help convince young people not to smoke. We arewilling to work with the Ministry of Education and the Ministry of Health to develop

    educational modules for incorporation in the national curricula, but we feel the

    programme content is best left to experts and its delivery to teachers or youth leaders.

    Mobile Doctor

    Our dedicated mobile doctor teams take pride in providing health care in areaswhere there are no medical facilities. Since the early 1980s we have been running a

    mobile doctors program in the areas where health care facilities are lacking and

    basic health care needs are the most acute.

    The program has grown over the years and treats close to 7,000 patients on a monthlybasis. The facilities provide free medical check-ups and diabetic screening as well as eye

    care and general health advice in the areas around our factories and the leaf growing

    regions which have poor or absent medical facilities.Medical camps have also been arranged in collaboration with LRBT and Merck, and we

    continue to partner with NGOs in our attempts to cater to patients' needs more

    effectively. In the aftermath of the earthquake, we established a state of the art

    Rehabilitation Center in Batagram in partnership with CHAL.

    LEARNING RESOURCE CENTRES

    Keeping in mind the need to invest in education and the non-availability of quality

    institutes, the company has established free Learning Resource Centres (LRCs) in

    our Leaf Areas in the Punjab (Gujarat), and the NWFP (Mansehra, Yar

    Hussein, and Buner).

  • 8/8/2019 Assignment on Social Responsiblity

    15/20

    In addition, since we lack separate institutes for women, the LRC at Adam Zai in the

    vicinity of our factory in Akora Khattak was set up to provide opportunities to local

    women. The primary objective was to provide access to IT education free of cost to ourstakeholder's families. It was also agreed to use these centers in the future for imparting

    vocational training and generating health and hygiene awareness.

    Our LRCs are affiliated with the Skill Development Council which falls under the ambitof the Ministry of Labour and Welfare. Currently, we have seven LRCs, at our factories

    and in the leaf growing areas. These centres provide state-of-the-art IT skills to the

    children of our employees and to the members of our community. 4,307 students havegraduated from our centres so far.

    The expected benefits of the programme are summarized below:

    Contribute in the development of skilled resources in the country.

    Help participants obtain employment.

    Generate awareness about technology and its uses.

    Bridge the information gap by providing access to the internet.

    Provide women with training and awareness, as there are no separate centres for

    women in remote areas. Provide a communal forum to discuss and resolve issues.

    Bring people with diverse interests and backgrounds together in a common forum.

    In addition to our involvement in providing learning opportunities within our

    community in the leaf growing areas of Pakistan, we have also partnered with TheCitizens Foundation in sponsoring two schools, one in earthquake ravaged

    Bherkund and the other in Nowshera.

    Health and Safety Measurements..Almost everything we handle tobacco, paper, board is grown in the natural

    environment, so it makes good economic and environmental sense for us to make

    sure our use of raw materials is completely sustainable.

    We believe good environmental practice is good business practice. Businesses can

    enhance efficiency through environmentally sound technology, optimizing products andprocesses and conserving energy and natural resources. We monitor measure and report

    our progress against targets and aim at continuously improving our performance.

    We seek to control and reduce our impact via the 3 Rs principle: Reduce, Recover, andRecycle. Our programmes cover energy conservation, water, air and soil protection,

    afforestation, minimizing waste and minimizing the use of natural resources,

    agrochemicals and raw materials. Important aspects include reducing water and energy

    consumption and CO2 equivalent and managing our impact on biodiversity.We are committed to conducting our business operations in a manner that sustains the

    environment and protects the health and safety of our employees, by adopting a proactive

    approach to using cleaner technologies and safer systems of work while ensuringcompliance with all applicable National laws and regulations and British American

    Tobacco's Environment, Health and Safety (EHS) policy.

    Our EHS programme ensures a safe work place for our employees, contributing to

    improvements in environment with a focus on minimizing natural resource depletion

  • 8/8/2019 Assignment on Social Responsiblity

    16/20

    through various initiatives such as, reduction of energy usage, water use and discharge

    management, waste reduction, waste recycle and controlled air emissions. We are very

    proud to say that all our discharges to the environment are well within the NationalEnvironmental Quality Standards (NEQS) limits set by the Government of Pakistan.

    Our manufacturing sites ensure compliance with the following national legislations:

    Pakistan Environmental Protection Act 1997

    Factories Act 1934 & Provincial Govt. Factories Rules 1978

    Electricity Rules, 1937

    Boiler and Pressure Vessels Ordinance 2002

    Over and above all this, Pakistan Tobacco Company ensures compliance with the

    stringent British American Tobacco EHS policy which is a compilation of

    International Standards and Best Practices.

    As a part of the British American Tobacco Group, we are also involved in

    monitoring and reporting our environmental performance for the Global

    Reporting Initiative (GRI) whereby we publicly communicate our economic,

    environmental, and social performance.

    Furthermore, both our production facilities were re-certified with ISO 14001 earning

    an Evergreen status. We have consistently sustained our accreditation in the last elevensurveillance audits with zero major and minor non-conformances.

    The initiatives taken by Pakistan Tobacco Company in the area of Environment, Health

    and Safety have been recognized at national and international forums. We are therecipients of the annual Environment Excellence Award by the National Forum for

    Environment & Health awarding the Company for a second consecutive time.

    Our endeavor to improve on our environmental program has been recognized globally bythe British American Tobacco Group and we have been awarded the EHS Excellence

    Awards in the following areas in 2006 and 2007.

    Use of Cleaner Technologies Water Re-use

    Energy Conservation

    Our focus on accident prevention and lost work day case reduction has come a long

    way by managing our Environmental Health & Safety programmes which involve

    extensive health & safety training, safety audits, incident investigation, and safety

    communications. Utilising all these components has helped us maintain a zero lost workday case during 2007 and to date. Both of our manufacturing facilities are the recipients

    of British American Tobacco's EHS Golden Award for successfully completing and

    exceeding 5 million working hours without a lost work day case incident.

    Data Collection Method

    The method for data collection is the central theme of the study no study will be

    completed without using the scientific and systematic ways to get the latest knowledge

    about the study

  • 8/8/2019 Assignment on Social Responsiblity

    17/20

    Primary Data Collection

    Secondary Data Collection

    Primary Data Collection

    In primary data collection I used the technique of: Personal observation

    I also used unstructured interview techniques when I faced any problem during

    work

    Secondary Data Collection

    In secondary data collection method I got information from:

    Annual report of different years.

    Brochures from the company

    PTC website

    Different articles and journal about the company from internet and newspaper.

    SWOT ANALYSIS OF PAKISTAN TOBACCO COMPANY

    Strengths

    Strong market position.

    Geographically diversified.

    Decentralization at each level of management.

    PTC provides opportunities for professional and career growth.

    Large brand portfolio and strong market share. Social responsibilities activities by implementing international market standards.

    Continuous market research by AC Nelson to develop future plans and strategies.

    Multinational company connected with BAT worldwide.

    Weaknesses Resource allocation for rural communication is not according to number of outlets

    in a village which is improper utilization of resources.

    Slow in new brand development.

    Salesman commission is low.

    Offices should be maintained according to PTC standards. (Regional Office)

    Lack of advertisement due to controversial industry.

    Opportunities

    As most of the population is in low social economic class, there is an opportunity

    for PTC to increase market share in this segment through focus strategy.

    Light cigarettes.

  • 8/8/2019 Assignment on Social Responsiblity

    18/20

    Market potential in rural areas.

    Rising popularity of smokeless tobacco.

    Promoting IMS implementation can enhance the relationship with governmentand other regulatory authorities.

    Participation in social activities can enhance the corporate image.

    Intense competition provides opportunity for continuous improvement in thequality of brand.

    Threats

    Strict laws and regulations by Government.

    Increase in Taxes.

    Increasing health concerns. Competitor strategies

    Contraband and counterfeit cigarettes

    Philip Morris International acquired Lakson Tobacco Company.

  • 8/8/2019 Assignment on Social Responsiblity

    19/20

    RECOMMENDATIONSOn the basis of facts and figures and keen observations following are the

    recommendations that can be put forward for the companys improvement:

    PTC should increase best practice sharing within its system to enhance thetransfer and sealing of the most efficient and innovative initiatives.

    It should integrate companys values into key people programs form hiring to

    training to career development.

    It should continue to enhance its employment value propositions to drive

    employee engagement in the companys value added social programs.

    It should continue to enhance childrens well being through programs and

    initiatives that provide fun with a purpose.

    CONCLUSION

    In conclusion it can be said that social responsibility is one of the most importantfactors for any company in todays corporate business environment. Companies are

    investing their billions fro social marketing. The basic aim beside this activity is to

    present itself a socially responsible company among masses and to differentiate itselffrom those of competitors.

    Pakistan Tobacco Company also indulged itself in social causes. The company is

    involved in anti-smoking policy for under ages, building schools in far areas, plantation

    and women training programs. The basic aim behind is to minimize its negative image ofbeing a non-cooperative and dangerous company for the citizens.

    PTC acts responsibly and respectfully towards the people and authorities

    in different societies and aims to contribute to social and economic development. It givesits employees reasons to be proud of the way PTC demonstrates Corporate

    Responsibility. This is the essences of its commitment to Corporate Responsibility.

  • 8/8/2019 Assignment on Social Responsiblity

    20/20

    REFERENCES

    Retrieved from www.ptc.com.pk

    The News

    Annual Reports 21007 and 2008 of PTC

    http://www.ptc.com.pk/http://www.ptc.com.pk/