Corporate Social Responsibilities of SQUARE Pharmaceuticals ltd.

Group Report

Title: Corporate Social Responsibilities of SQUARE Pharmaceuticals ltd.

Submitted By Submitted To

Sabera Shahrin Aony MD. Minhazul Islam Mehedi Hasan Hridoy Kamruzzaman Ripon Abdullah-Al-Mahmud Rishad Jude Adhikary

Ummul Wara Adrita

Lecturer

BRAC Business School

Date of Submission: 01 July 2015

BRAC University

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Letter of Transmittal01 July 2015

To

Ummul Wara Adrita

BRAC Business School

BRAC University

Mohakhali, Dhaka

Subject: Submission of Final report on “Corporate Social Responsibilities of SQUARE Pharmaceuticals ltd.”

Dear Sir,

It is an immense pleasure for me to submit you internship report titled “Corporate Social Responsibilities of SQUARE Pharmaceuticals ltd.” We were assigned to collect information about CSR of SQUARE Pharmaceuticals ltd. We have tried our level best to fulfill all our requirements of this course and tried to follow my supervisor’s instructions while preparing this report. This gave us the opportunity to theoretical knowledge in practical field, which help us in our future career.

It would be a profound pleasure for us if the report can serve its purpose. We would be available in any time to explain you any queries if feel necessary.

Thanking You

Sincerely Yours

Group: Sparking Stars

Sabera Shahrin Aony 14204057

MD. Minhazul Islam 14204114

Mehedi Hasan Hridoy 14104043

Kamruzzaman Ripon 14204118

Abdullah-Al-Mahmud 14304016

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Rishad Jude Adhikary 1430408

Table of Contents1. Executive Summary:......................................................................................1

2. Introduction:...................................................................................................2

3. Objectives of the study:..................................................................................2

4. Methodology of the report:.............................................................................3

a) Primary sources:........................................................................................................................3

b) Secondary sources:....................................................................................................................3

5. Data Collection method:.................................................................................3

6. Analysis process:............................................................................................4

7. Company profile:............................................................................................4

8. SWOT analysis:..............................................................................................5

a) Strengths:..................................................................................................................................5

b) Weakness:.................................................................................................................................5

c) Opportunities:...........................................................................................................................5

d) Threats:......................................................................................................................................6

Hiking price of raw materials:........................................................................................................6

Inadequate Power supply:.............................................................................................................6

9. Analysis on your selected area:......................................................................6

a) Commitment towards Environment:.........................................................................................8

i. Effluent Treatment Plant (ETP) in manufacturing plants.......................................................8

ii. Ensuring Green Belt at Plant Surrounding.............................................................................8

iii. Uses Incinerator in manufacturing plants..............................................................................8

iv. Maintaining biodiversity........................................................................................................8

b) Commitment towards Employee:..............................................................................................8

i. Regular training.....................................................................................................................8

ii. Ensuring safe, healthy & employee-friendly workplace.........................................................8

iii. Loan facility:...........................................................................................................................8

c) Commitment towards society & support to social grounds:......................................................8

i. Vaccination & Breast feeding awareness to 3.3 million mothers:..........................................8

ii. Operating 24/7 free helpline for mother and Babies:............................................................9

iii. Informing physician community on latest development in medical science:.........................9

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iv. Training Institution of IT:.......................................................................................................9

v. Awareness building program for the rights of physically-challenged people.........................9

vi. Medical campaign program for poor people.........................................................................9

vii. Reconstruction of Annada Gobinda Public Library in Pabna..............................................9

viii. Road safety campaign & road side shade,.........................................................................9

ix. Donation to hospitals, medical colleges, local community & underprivileged people...........9

d) Responsibility towards government:.......................................................................................10

i. Highest TAX payer of the country award:............................................................................10

ii. Special Government medicine supply:.................................................................................10

e) Advancing research and development program:.....................................................................10

i. Support to ICDDR,B for Research on Childhood Diarrhoea..................................................10

ii. Partner in the research study for preventing.......................................................................10

f) Support to education:..............................................................................................................10

i. SQUARE Kindergarten & SQUARE High School....................................................................10

ii. Award for facilitating higher education...............................................................................10

iii. Pick-up and drop services for the school going children of factory employees...................10

iv. Sponsoring " Dhaka Residential Model College 7th National Science Festival 2014"..........10

10. Why they are performing CSR:.................................................................10

11. What approach that Square Pharma Ltd are following and why?.............11

12. Limitation of our study:.............................................................................11

13. Recommendation.......................................................................................12

14. Bibliography..............................................................................................15

15. Appendix:..................................................................................................16

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1. Executive Summary:

SQUARE Pharmaceuticals Company Report provides a complete overview of the company’s affairs. All available data is presented in a comprehensive and easily accessed format. The report contains the company’s profile and information about the company’s vision, mission principal activities, objectives, locations and organization structure. The report also includes Company profile, SWOT analysis latest development analysis, social responsibilities, and current achievements. The SWOT analysis provides information about the company’s strengths, weaknesses, opportunities, and possible threats against it. This report provides relevant news, an analysis of CSR activity. The report also enables direct comparison to be made between SQUARE Pharmaceuticals and its competitors. The report is mainly focusing on corporate social responsibility of the company. The report contains how the company is maintaining their CSR in different area, why they are performing, what approach they are following and how. Sharing views and recommendations regarding new possible areas of CSR.

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2. Introduction:

This report has been prepared to make a study on an overview of the SQUARE Pharmaceuticals Limited of Bangladesh as a part of the fulfillment of assignment required for the completion of the BBA program of the business faculty of Management Studies of BRAC University. The report was prepared under the supervision of Ummul Wara Adrita, Lecturer of BRAC University. We are very much thankful to her for assigning such types of project work. We choose the company because SQUARE Group ltd is one of its kind group of industry And SQUARE Pharmaceuticals ltd is very significantly active in the CSR activity and they follow the non-traditional, unorthodox trend in CSR activity. The head office of SQUARE Pharmaceuticals ltd is also very near to our university which is also an advantage in this kind of study as it requires depth interviews.

3. Objectives of the study:

The main objectives of the study are to explore the corporate culture and activities performed by one of the top organizations of the country. And distinguish it in case of their Corporate Social Responsibilities approach and their areas of activity. Other objectives of this report are:

1. To inform about the progress in CSR.2. To analyze the approach to CSR.3. To communicate the changes made by the company.4. Analyze the recommendations.5. Areas the company focus in terms of CSR.6. Explore new possible areas of CSR.7. To share the lesson learned.

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4. Methodology of the report:

For smooth and accurate study everyone have to follow some rules & regulation. The study impute were collected from two sources. The sources are: 

a) Primary sources:

Primary sources of information are those that provide first-hand accounts of the events, practices, or conditions. In general, these are documents that were created by the witnesses or first recorders of these events at about the time they occurred. These information are collected from: 

1. Practical desk work 2. Face to face conversation with the officer 3. Direct observations4. Face to face conversation with the client

b) Secondary sources:

Second-hand, published accounts are called secondary sources. They are called secondary sources because they are created  primary sources and they often use or talk about primary sources. Secondary sources can give additional opinions on a past event or on a primary source. Secondary sources often have many copies which we collected from:

5. Annual report of company6. Files & Folders7. Daily diary8. Various publications of the company9. Company Website

5. Data Collection method:

We followed the depth interview method for data collection for the report making process. We went to the head office of SQUARE Pharmaceuticals ltd with our group for a formal depth interview with some of the officers of the company. We met Mr. Ahmed Kamrul Alam, Deputy General Manager and Marketing at SQUARE Pharmaceuticals Ltd. And Md Tanzirul Islam, Manager & Head of HR of the company. Interview duration was ranging from half an hour to one and a quarters.

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6. Analysis process:

In the study we did not include mathematical or statistical analysis, we focused on subjective analysis during making the report.

7. Company profile:

SQUARE today symbolizes a name – a state of mind. But its journey to the growth and prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into one of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the flagship company, is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985 and is now on its way to becoming a high performance global player. Square Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it has been continuously in the 1st position among all national and multinational companies since 1985. It was established in 1958 and converted into a public limited company in 1991. The sales turnover of SPL was more than Taka 7.5 Billion (US$107.91 million) with about 16.92% market share (April 2006– March 2007) having a growth rate of about 23.17%.Square Pharmaceuticals Limited has extended her range of services towards the highway of global market. She pioneered exports of medicines from Bangladesh in 1987 and has been exporting antibiotics and other pharmaceutical products. This extension in business and services has manifested the credibility of Square Pharmaceuticals Limited. Square strive, above all, for top quality health care products at the least cost reaching the lowest rungs of the economic class of people in the country. We value our social obligations. They owe to our shareholders and strive for protection of their capital as well as ensure highest return and growth of their assets. They strive for best compensation to all the employees who constitute the back-bone of the management and operational strength of the Company through a pay-package composing salary/wages, allowances, bonus, profit participation, leave salary and superannuation & retirement benefits. They strive for best co-operation of the creditors & debtors the banks & financial institutions who provide financial support when we need them, the suppliers of raw materials &suppliers who offer them at the best prices, the providers of utilities-power, gas & water etc. and the customers who

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buy our products & services by redeeming their claim in time by making prompt payment and by distributing proper product on due dates.

8. SWOT analysis:

The following SWOT analysis captures the main strengths and weaknesses within the Company, and describes the opportunities and threats of the company.

c) Strengths:

1. Highly experienced Senior Executives some of whom 2. Has local and international significant pharmaceutical literature.3. Good reputation with high image. 4. Efficient, skilled, experienced and dedicated staff members5. Large customer Base and product development capabilities and

outstanding professional services6. Resources are available in Bangladesh7. Square pharmaceutical is able to make benchmarking medicines8. Increasing presence in the market9. Regulatory performance is strong and positive10.Employee mobility is lower than that of its rivals

d) Weakness:

1. Non availability of high technology 2. Everything is not organized.3. Time consuming decision making process4. Incorrect method for collecting resources and inventory management5. Minimum profit in comparison with others

e) Opportunities:

1. Government Support 2. Banking and information technology

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3. Credit line with well-known foreign bank can gear up its foreign Exchange business.

4. Entering in new arena product helps to grow customers' confidence.5. Opportunity to take market share away from rivals by Offering new

innovative product or services.6. Opportunity to enter into the global market.

f) Threats:

Hiking price of raw materials: More and more factories, especially small ones, are facing closure due to price hike of raw materials. As the company has just entered in the market it will be a great threat for us.

Inadequate Power supply: The industry sources also blamed lack of adequate power supply for making the industry more vulnerable. We have to face the same problem here and for this many industries are shutting down now days.

1. Mergers and Acquisition 2. Frequent Currency Devaluation 3. Competitors are much in pharmaceutical industries4. Competitors are offering innovative new product and services regularly.

Matching them is really hard.

9. Analysis on your selected area:

Corporate Social Responsibility (CSR) is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

SQUARE recognizes that progressive labor policies are good business practices, especially for a company like us that has global ambition. We follow laws and encourage work environment that welcomes diversity and also follow non-

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discrimination & fair treatment policy both in the recruitment & selection process and performance management system. We have Trade Union & our HR policies have been continuously up-to-dated as per existing labor law of the country. We do not allow any female employees during night shift operations & we strictly prohibit any form of forced labor. We actively pursue the policy of No child labor in SQUARE.

Transparency & business ethics is the core value of SQUARE and it is strictly followed at every step of the business processes. Every business in SQUARE is modeled in a way that enables the management to ensure highest degree of both financial and behavioral accountability. SQUARE pursues Zero Tolerance policy against all kinds of corruption.

SQUARE's activity goes well beyond the sphere of business. As socially conscious and responsible corporate body SQUARE is committed to the improvement of the society as a whole. Meril-Prothom Alo festival sponsored by SQUARE, has become a national calendar event. SQUARE helps many NGO's in their effort to make available healthcare to the disadvantage population of the country. It sponsors programs to build awareness on the healthcare need. SQUARE is also a major sponsor of sporting events in the country.

SQUARE is proud to be a Bangladeshi Company actively involved in various field of Corporate Social Responsibility:

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g) Commitment towards Environment:

SQUARE Pharmaceuticals ltd is Committed to support precautionary approach to environmental challenges & to promote greater environmental responsibility by:

i. Effluent Treatment Plant (ETP) in manufacturing plants.ii. Ensuring Green Belt at Plant Surrounding.iii. Uses Incinerator in manufacturing plants.iv. Maintaining biodiversity by using organic fertilizer for producing

tea at Sabazpur Tea Co. Ltd., Moulovibazar (a sister concern of Square Group)

h) Commitment towards Employee:

SQUARE Pharmaceuticals ltd ensures the ethical and friendly working conditions to its employee, tries to develop their skills and efficiency through various training. They do;

i. Regular training to all level of employees to increase the knowledge & skill level.

ii. Ensuring safe, healthy & employee-friendly workplace

a) Healthy food, prepared and served fully at company's cost at the same time ensuring highest standard of hygiene factor.

b) Transportation facilityiii. Loan facility: "Shohoj Kisti Reen Prokalpa" under which all

unionized employees can take loan to purchase necessary home appliances at small service charge and this fund is operated and managed by a committee of workers' representatives.

i) Commitment towards society & support to social grounds:

i. Vaccination & Breast feeding awareness to 3.3 million mothers:

Through direct outbound phone call, SMS blast, product pack communication, Square Toiletries Ltd. attempted to make mothers aware about the importance of breast feeding and vaccination. Not only that, each and every call we receive at SUPERMOM tele service, we remind every mother about it. This has helped

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to ensure the future of 3.3 million babies and help eliminate polio from Bangladesh as well.

ii. Operating 24/7 free helpline for mother and Babies:

Supermom is a free telephone (0961 2222 333) service and a full-fledged interactive Bengali website (www.supermombd.com) for mothers and their babies. Every mother, we believe is a Supermom. Saluting these Supermoms, to make their life a little easy, we operate this service, to help mothers to be the finest mom. Teamed up with experts and professionals, this praiseworthy initiative by Meril Baby from Square Toiletries Ltd is there to keep a mother and the baby protected, healthy and safe!

iii. Informing physician community on latest development in medical science:

SQUARE takes multiple initiatives through healthcare publications, seminars & clinical meetings like Continual Medical Education (CME) program.

iv. Training Institution of IT:

To train the underprivileged community in Pabna who are not capable to afford costly training programs. The initial aspect of this Training Institution named "Dishari" is to empower them as a prospective user of future technology and build their own future and nation with state of the art technology and contemporary computer knowledge.

And others are:

v. Awareness building program for the rights of physically-challenged people

vi. Medical campaign program for poor peoplevii. Reconstruction of Annada Gobinda Public Library in Pabnaviii. Road safety campaign & road side shade,ix. Donation to hospitals, medical colleges, local community &

underprivileged people.

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j) Responsibility towards government:

i. Highest TAX payer of the country award:

SQUARE is reputed and recognized as highest TAX paying organization on a regular basis. Honorable Chairman of SQUARE group is awarded as highest TAX payer of the country by the government.

ii. Special Government medicine supply:

SQUARE supplies customized government medicine as per the requirement of Bangladesh government. Moreover, in times of epidemics and disasters it is always beside the government with its expanded helping hands.

k) Advancing research and development program:

i. Support to ICDDR,B for Research on Childhood Diarrhoeaii. Partner in the research study for preventing "Post Partum

Hemorrhage (PPH)", primary reason for maternal death in Bangladesh with ICDDR,B and Obstetrical & Gynecological Society of Bangladesh (OGSB)

l) Support to education:

i. SQUARE Kindergarten & SQUARE High Schoolii. Award for facilitating higher educationiii. Pick-up and drop services for the school going children of factory

employeesiv. Sponsoring "SQUARE-Dhaka Residential Model College 7th

National Science Festival 2014"

10. Why they are performing CSR:

Our Business Motivation is Being Good by Doing Well and to conduct transparent business operations based on market mechanism within the legal, ethical & social framework with aims to attain the mission reflected by our vision. We scale-up CSR activities to consider the interests of our external & internal stakeholders like customers, employees, vendors, shareholders, society, government etc. and ecological & ethical considerations in all aspects of operations. SQUARE is one of the pioneer signatories of United Nations Global

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Compact (UNGC) in Bangladesh. UNGC principles are aligned with company's culture from the very outset. That’s why SQUARE Pharmaceuticals ltd is doing various CSR activities very proactively.

11. What approach that Square Pharmaceuticals Ltd are

following and why?

Different organization can take different approaches according to their social responsibility. An organization which is not bothered about the consequence of their decisions will considered as taking obstructionist stance to the social responsibility mean while the one who is willing to help the society in every possible way will be considered as taking proactive stance to the social responsibility. In that case Square Pharmaceutical ltd is following the proactive stance to social responsibility because they are fully aware of their responsibility. They are one of the signatory of global contact in Bangladesh. They consider the interest of the customers, communities and ecological considerations in all aspects of their activities. They go well beyond their business and they are committed to improve the condition of the society at any cost. They are involved in welfare of the acid burn victims and also sponsors program to build awareness on the healthcare need.

12. Limitation of our study:

First of all we could not obtained all the information and explanations due to our inexperience. However we believe that we have covered enough information to make this a decent report. The second limitation of this report is that it does not concern about all employees of Square Group. It considered only some top level managers, executives, non-executive and field staffs of Square group. It did not concern others like suppliers, shareholders and so on. And finally all our information’s wasn’t from the direct source, we had to collect some data from websites and other secondary sources which may not be completely valid. Moreover it the time of Ramadan, and working hours has

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been decreased due to it. It has been pretty difficult to manage an depth interview.

13. Recommendation

The company should revise the recruitment and selection policy for the executive level and also further research is needed to find out the reason of their dissatisfaction which will be easy in solving problems because the manager, non-executive and field forces are satisfied.

Succession Planning can be introduced in the company before the retirement of any employee. This process will stop contract employment policy because through contract employment the employee is not allow getting all the facility and benefits from Square as other employees which lead to job dissatisfaction.

The interior design of the office should to be changed to be able to compete with other national and multinational company in this country and also it will motivate the employees and retain high skilled employees.

Paper work need to be reduced and increase the computer skilled of the existing employees to do the work more smoothly and faster which took  more time before using the modern technical. Make sure the proper utilization of working time by increase the communication in and outside the company.

Findings indicate that there is dissatisfaction among the manager, executive and non-executive level in term of opportunity for advancement and promotion. So, this practice need to redesign and check and should be improved through adopting effective policy to satisfy employees.

To take the necessary steps and action, to increase employees’ satisfaction level and to recover the above problems, further research is needed for the company which will include the whole employees of Square Pharmaceuticals Ltd to identify the effective and efficient policy, strategy and action.

Some other recommended changes for better Performance in related field:

Changes in the procurement process (It should be in a sophisticated software to be more competitive in the current market)

A well ERP structure should be developed to increase accountability and transparency

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Maintain quiet and silent working environment

Interior design need to be change for employee motivation and increase of existing productivity

Special Training on computer

Reduction of workload

Organized proper training

Assigned tasks should to be distributed equally

Transparent performance evaluation and feedback

Reduction of work load and also it should to be equally distributed among all the employees

More technological support (Computer and Internet facility)

Suggestion for further improvement of the company:

Special offer is required to retain high skilled employees

Interior design of the office need to be changed

The decentralized group portfolio should changed

Reduce paperwork

Salary review

Performance incentives for the employees.

CONCLUSION:

Square Group is one of the largest and leading company in our country for more than four decades by manufacturing quality products. It diversified in different area and sector of the local business field. The other square concerns are as pharmaceuticals, toiletries, garments, textiles, information technology, health products, food products, hospitals etc. The company always concerns with the quality of the product for their customer and also increases the profit for its shareholder and stockholder and also the employees.

In order to produce the best quality of any product the employees of the company must be skillful, knowledgeable, and fill of being as they are the members of one and same family for their better improvement. However, Square group is not concerned only on the quality of the product and the

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reputation of the company but they are also concerned about the satisfaction level of their employees for better improvement, higher productivity as well as to produce quality product by providing different types of benefits and facilities.

However, from the research paper it is found that most of the employees are satisfied with the facilities giving to them. Only few factors are not able to satisfy the employees. This is also found through conducting this research that there is both satisfaction and dissatisfaction in term of recruitment and selection policy, annual appraisal and also the non-executive employees are not dissatisfied with the facility that the company provides to.

Through the research paper it is clear that Square group is an established, significant and highly respected in term of the product quality and very much concerned about the satisfaction or motivation of the employees.

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14. Bibliography

Alam, M. S. (Ed.). (2010, August 30). Escape traffic jam, helicopter introduced by SQUARE pharma. Retrieved from Somewhereinblog.com: http://www.somewhereinblog.net/blog/mdsharifulalam/29232185

Mrs. Nasrin Akter. (2015). Annual Report 2014. Dhaka: SQUARE Pharmaceuticals ltd.

Public Relation. (2015, July 01). About us. (SQUARE Pharmaceuticals ltd) Retrieved june 30, 2015, from SQUARE Pharmaceuticals ltd: http://www.squarepharma.com.bd/about-us.php

Reporter, S. (2014, December 7). Square pharma. Retrieved june 30, 2015, from rapidprnews: http://rapidprnews.com/details.php?id=26818&page=1

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15. Appendix:

A. SQUARE Pharmaceutical ltd, is leading the market what is the mantra of your success according to you.

B. What is the biggest strength of you organization?C. What is the sector do you think the organization should work on to tackle

future challenges.D. Do you think Pharmaceuticals market of Bangladesh is challenging or bid

fair?E. We can see how well your company is performing in business and n

Corporate Social Responsibilities as well, what’s according to you is the thought process regarding CSR in your management.

F. In which sectors SQUARE pharma mainly focuses for CSR?G. We can see SQUARE Pharmaceuticals does CSR proactively, would you

please tell us why, we mean to say how you as a company s benefited?H. How the organization ensure ethical and friendly workplace for

employees?I. How SQUARE Pharma is bringing in changes in Environment, Education

and women empowerment?J. What SQUARE is doing for consumers’ interest and for the country?K. If you find a new problem coming in front of you which can be eradicated

but there is no link between pharmaceutical businesses with it, will you go forward to?

Thank You

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