Case Study Report Engl Bisc 3

Enhancing Competitiveness & Employability in Korangi Industrial Area

SECONDCASE STUDY REPORT

Introduction

English Biscuit Manufacturers (Private) Limited - Pakistan’s leading biscuit company with heart and soul was established as a joint venture company in 1965 with the name of

_____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

Industry Name: English Biscuit Manufacturers (Private) Limited.

Manufacturing: Branded Biscuits and Cookies Brand banner: Peek Freans & English Biscuit Managing Director: General Manager:

Mr. Khawar M. ButtMr. Naveed Khawaja

Marketing Manager: HR Manager:

Mr. Shakeel Ahmad AkramMr. Sultan Mughal

Research Project:

Organizer: Supervision: Research Officer:

Enhancing Competitiveness and Employability of Enterprises inKorangi Industrial AreaDr. Javed A. Ansari (Director)Mr. Javed Ahmed (Ho D)Dr. Linah Askari (Assist. Prof)

Institution: Institute of Business management Collaboration: College of Business Management Website: Email contact:

http://[email protected]

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mailto:[email protected]

http://www.ebm.com.pk/

http://www.ebm.com.pk/default.aspx%00%E5%A1%B9%EF%92%81%E1%B4%BB%E4%A1%BF%E2%B2%AF%E5%B6%82%E8%97%84%E6%8C%A7%00%00%EA%AE%A5

Enhancing Competitiveness & Employability in Korangi Industrial Area Peek Freans Pakistan Limited. In 1966, the UK sponsor company was renamed Associated Biscuits International Limited (ABIL), while the venture was renamed English Biscuit Manufacturers (Private) Limited (EBM), which stands to date.

EBM started manufacturing and marketing the world famous Peek Freans range in 1967 in order to provide Pakistani consumers with nutritious and hygienically packed biscuits of the highest quality. True to its corporate claim, 'The Legend Leads', EBM has led the biscuit industry in Pakistan for 39 years by playing a pioneering role in providing innovative and high quality biscuits for every taste bud.

EBM’s trademark, Pied Piper, made its mark three and a half decades ago, but continues to remain in the hearts, minds, and souls of the people through the variety and excellent quality of biscuits manufactured under its umbrella. EBM enjoys the distinction of being the first food company in Pakistan to promote biscuits as 'food between meals'.

EBM has been in the business of manufacturing and marketing branded biscuits in Pakistan for 39 years. The brand name 'Peek Freans' is a household name, and people trust and believe in the quality of the products produced under this brand. EBM is also the first biscuit company in Pakistan to have achieved ISO - 9001 Certification in correspondence with its institutional slogan 'The Legend Leads'. The achievement also endorses the company's firm commitment to high standards of quality.

Under the brand range, Peek Freans, the company today carries the largest variety of biscuit products including Marie, Gluco, Click, Sooper, Smile, RIO Double Treat, Marvell, Party, Peanut Pik, Peanut Pista, Lemon Sandwich and Chocolate Sandwich.

English Biscuit Manufacturers (Pvt) Ltd., or (EBM), is the country's leading manufacturer of biscuits and cookies since 1967, with an annual sales volume and production capacity of more than 65,000 tons and a turnover of more than Rs. 7.0 billion.

EBM is the only Company in the industry to have achieved recognized international certifications pertaining to quality control, environmental management system and human resources management, including ISO 9001:2000, ISO 14001:2004, HACCP certifications and IIP (Investors in People) Recognition. EBM is also the only food company to have been awarded Environmental Excellence Award for four successive years 2004, 2005, 2006 & 2007.

EBM contributes Rs. 850 million annually to the National Exchequer in taxes and duties and provides direct employment to over 2,600 employees. As a socially conscious company, EBM consistently supports various humanitarian causes in the areas of education, sports, healthcare and help for the less privileged.

EBM Vision To provide high quality value-added food to contemporary and future generations To constantly endeavor for the acquisition of knowledge and excellence in

developing human skills, product innovations and state-of-the-art technologies


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http://www.ebm.com.pk/product.aspx




To be a good corporate citizen by giving back to the community and improving the lives of the underprivileged

To dispense equitably, fairly, and with compassion, the fruits of success among our “partners in business”

To become a partner with the Government in sharing the responsibility of economic and social uplift and development of Pakistan

Values We believe that no individual is bigger than the institution We believe in integrity, transparency and commitment as our cultural ethos We continually adhere to the highest standards of hygiene and ecology We believe in governance in human face We protect and promote the cause of the environment We emphasize on employee welfare We believe in leading and innovating in all aspects of business

ProductsMarching ahead of the competition, Peek Freans biscuits are best known for their excellent quality and taste. The Pied Piper symbol is the most popular icon in the country, leading biscuit lovers to experience one superb product after another.

Offering the largest variety in taste and textures, Peak Freans produces thousands of tons of premium quality biscuits annually, employing the most innovative ideas, state-of-the-art technology and sophisticated Food Safety Systems.

EBM biscuits promise wholesomeness, a unique taste and a crispy, crunchy texture.

Plain Sweet Biscuits includes:(i) Gluco is a rectangular, light golden brown appearance biscuit. It has sweet taste with superb dominated butter taste that comes from fresh natural butter. Gluco is enriched with Vitamins A, B and E.

(ii) Marie! Queen of Biscuit! is a premium quality offering from the house of peak freans. It is a very mild sweet crusty biscuit.

(iii) Sooper is a Danish style cookie with home made appeal. Its natural and special kind of recipe makes sooper in its real sense. Sooper is soft cookies with crispy bite and has a delicious natural milk and egg taste in mouth with melt in the mouth texture.

(iv) Whole wheat slice is a rectangular biscuit in which pure wheat bran make it special with the rest of the biscuits offered by Peek Freans. It has mild sweetness with crunchy bite.Nuts include:(i) Peanut Pik is a unique biscuit that offers a distinct blend of natural fresh peanut. It has sweet taste, crunchy bite with shinning gloss on peanut sprinkle top.


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Enhancing Competitiveness & Employability in Korangi Industrial Area (ii) Peanut Pista is a unique biscuit that offers a distinct blend of both natural fresh peanut and pistachio nut. It has sweet taste, crunchy bite with shinning gloss on pistachio nut sprinkle top.

Cream Biscuits include:(i) Choco Vanilla Sandwich is a cream variety having chocolate based crunchy shell with sweet taste blended with original vanilla. Its unique combination creates magnetism to its ultimate consumers.

(ii) Chocolate sandwich is a cream variety having chocolate based crunchy shell with sweet taste blended with original chocolate. Its unique combination creates magnetism to its ultimate consumers.

(iii) Lemon sandwich is a cream variety having pale crunchy shell with sweet taste of original lemon. Its unique combination creates magnetism to its ultimate consumers.

(iv) Rio double treat Chocolate/Vanilla is a unique biscuit, having two different tastes of creams in one sandwich, introduced first time in Pakistan from the house of Peak Freans. It has blended fluffy cream with a very crisp and crunchy bite.

(v) Rio double treat Strawberry/Vanilla is a unique biscuit, having two different tastes of creams in one sandwich, introduced first time in Pakistan from the house of Peak Freans. It has blended fluffy cream with a very crisp and crunchy bite.(vi) Peek Freans offers the perfect nutritious cream biscuit in the form of Rio Vanilla. It has very blended fluffy Vanilla cream with a very crisp and crunchy bite of shell.

Crackers include:(i) Butter puff is a light cracker with gloss on top. It has very superb buttery taste with natural ingredient giving high melting mouth feel, with very crunchy bite.

(ii) Peak freans Marvell is a unique cracker because of its triple eight designs. Beside of its exclusive design it also has marvelous taste. Marvell has light and crispy bite with melt in mouth texture.

(iii) Saltish is one of the oldest and most recognized brands offered by peak Freans. It is a round, salty, crispy cracker with sprinkling of salt.

ExportsEBM is a producer of high quality biscuits in Pakistan. It caters not only to the wide requirements of the domestic market but also exports its products to USA, Canada, UK, Middle East and African countries. English Biscuit Manufacturers is an ISO 9001:2000 & ISO 14001:2004, IIP (Investor in People) and HACCP (Hazard Analysis Critical Control Point) Certified Company. English Biscuit Manufacturers exports its products in special sea worthy packing to keep its products intact during and after transit.

Policies

The EBM Quality Commitment_____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

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Enhancing Competitiveness & Employability in Korangi Industrial Area The Management of English Biscuits Manufacturer's (Pvt) Limited affirms that every product carrying the icon of the Pied Piper has all the Quality attributes that will fully satisfy consumer / customer's expectations. We believe that our people and our products embody our corporate slogan "The legend Leads" in terms of quality standards, in terms of innovative capabilities, in terms of human skills.

EBM Quality Management System binds the management and employees of the company to follow core policies:

We will critically examine and continuously review all aspects of operations, from procurement to be distribution of finished products, to identify any shortcomings or space for cost - effective improvement and will undertake appropriate quality – enhancement measure.

We will identify and, where possible, anticipate changes in consumer tastes and preferences through Market Research, on the one hand, while Technical Research and Development on the other, in other to retain leading edge in product and process development.

We will endeavor to recognize and establish Beat Practice criteria for all aspects of the company's activities, including the maintenance of environmental protections and safety standards.

We will undertake continuous appraisal, feedback and training of our personnel at every level to ensure optimum levels of productivity, creativity and job satisfaction.

The Management believes that every member of the organization at every level shares and fully affirms the Company's Quality Commitment.

Food Safety Policy"For more than three decades, EBM philosophy has been to produce biscuits which meet International standards of Quality and Hygiene in terms of safety and wholesomeness.Every member of EBM team is committed to owing this philosophy and has mind-set to produce the best of products under the Trade Mark of "Peek Freans" and has inculcated this qualitative culture which gives EBM a competitive edge in keeping its customers satisfaction".

Environmental Policy"The EBM Management takes environment as a part of its cultural ethos and deeply committed to consistently deliver high quality products. It is EBM‘s mission to strive continuously for environmentally friendly technologies based on a highly responsible management and regulatory requirements. Aiming to protect and preserve the environment for our employees, our valued customers, our business associates and the community at large." CertificationsEBM is the only Company in the industry to have achieved recognized international certifications pertaining to quality control, environmental management system and human _____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

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Enhancing Competitiveness & Employability in Korangi Industrial Area resources management, including ISO 9001:2000, ISO 14001:2004, HACCP certifications and IIP (Investors in People) Recognition. Details of the certifications and recognition are given below:

ISO (International Organization for Standardization)ISO is a global network that identifies what International Standards are required by business, government and society, develops them in partnership with the sectors that will put them to use, adopts them by transparent procedures based on national input and delivers them to be implemented worldwide. ISO – a non governmental organization – is a federation of the national standards bodies of 157 countries, one per country, from all regions of the world including developed, developing and transitional economies with a central Secretariat in Geneva, Switzerland, that coordinates the system. PSQCA (Pakistan Standard of Quality Control Authority) represents Pakistan as the national standard body.The ISO 9000 and ISO 14000 families are among ISO's most widely known standards ever. ISO 9000 and ISO 14000 standards are implemented by some 887770 organizations in 161 countries.

ISO 9001 - 2000ISO 9001 - 2000 is a Quality Management System that focuses on controlling and monitoring quality factors. This international standard promotes the adoption of a process approach when developing, implementing and improving the effectiveness of a quality management system, to enhance customer satisfaction by meeting customer requirements.

The ISO 9000 is primarily concerned with "quality management". This means what the organization does to fulfill:- The customer's quality requirements, and- applicable regulatory requirements, while aiming to- enhance customer satisfaction, and- achieve continual improvement of its performance in pursuit of these objectivesISO 9001 applies to all types of organizations. It doesn’t matter what size they are or what they do. It can help both product and service oriented organization achieve standards of quality that are recognized & respected throughout the world.

ISO 14001:2004The ISO 14000 is primarily concerned with "environmental management". This means what the organization does to:- Minimize harmful effects on the environment caused by its activities, and to- achieve continual improvement of its environmental performance.To achieve this certificate, following projects have been implementedat the EBM premises:

1. Waste Water Treatment Plant 2. Solid Waste Management Area 3. Development Plan

HACCPHazard Analysis and Critical Control Point (HACCP) is a systematic approach to identifying and controlling hazards (i.e. microbiological, chemical or physical) that could


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Enhancing Competitiveness & Employability in Korangi Industrial Area pose a danger to the preparation of safe food. It is a method to be applied by companies to guarantee the safety of their food products. This method is based on two important aspects: analysis of hazards (HA = hazard analysis) and determination of the points in the production process where these hazards are effectively controlled (CCP = Critical Control Points).

HACCP have following seven basic steps:

1. Analyze / Identify Hazard 2. Identify Critical Control points 3. Establish Critical Limits 4. Establish Monitoring Procedures 5. Establish Corrective Actions 6. Establish a verification system 7. Establish Record keeping

There are three types of Hazards:

1. Physical = Hairs, Glass, Threads, Plastics etc 2. Chemical = Mixing of flavors etc 3. Biological = Bacteria, Viruses, Fungi etc

International Investor in People Standard (IIP)English Biscuit Manufacturers (Pvt.) Ltd. is amongst the first organizations in Asia recognized to the International Investor in People Standard in December 2005. 'Investors in People' (IIP) UK was formed in 1993 to take national ownership of the Standard, protect its integrity and ensure its successful promotion and development. IIP UK has license agreements in over twenty countries worldwide including Africa, Europe, North America, and the Middle East & Australasia.

Investor in People (IIP) UK is an organization that currently operates in 26 countries globally and has developed the Investors in People Standards.

The Investors in People Standard is a business improvement tool designed to advance an organization’s performance through its people. Developed in 1990 by the National Training Task Force, the Standard helps organizations to improve performance and realize objectives through the management and development of their people. Since it was developed, the Standard has been reviewed every three years to ensure that it remains relevant, accessible and attractive to all. ‘Investors in People’ recognizes that organizations use different means to achieve success through their people. Therefore, it provides a framework to help find the most suitable means for achieving success through your people.

The standard is based on the following three key principles:PlanDeveloping strategies to improve the performance of the organizationDoTaking action to improve the performance of the organization


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Enhancing Competitiveness & Employability in Korangi Industrial Area ReviewEvaluating the impact on the performance of the organization

However, the standard is expressed in 12 indicators representing an organization’s commitment, planning, action and evaluation.

The standard ensures the people’s contribution to the organizationare recognized and valued. Further, it encourages people to take ownership and responsibility by being involved in decision making. EBM is amongst the six Pakistani Local and Multinational Companies but the only one in the Food Industry to have achieved this recognition. B) Marketing Strategy

Concerning the Marketing Strategy of English Biscuit Manufacturers (Pvt) Limited Marketing Manager Mr. Shakeel Ahmad Akram

a) Market

b) Target Audience

c) Competition

d) Offering

e) Messages

f) Sales and Buying Process

g) Pricing

C) Human Resource Management HRM Current and Future needs & Priorities in a Competitive Environment

e) Corporate Social Responsibility

Since gaining independence, Pakistan has been very fortunate to have socially conscious entrepreneurs in its midst. A large, diverse number of individuals and groups have placed the interest of the nation and its people above their own, and in doing so; have earned the respect and reputation that their companies carry today.


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EBM is one of the leading firms of the country, not only in terms of profitability and growth, but also in the area of social services. EBM’s corporate social responsibility umbrella has benefited several sectors including environment, education, health and sports.

Environment

Environmental protection, safety and security have always been the top priority at EBM. While the company is committed to delivering high quality products, it also recognizes the importance of being a responsible corporate citizen. EBM performs its business activities with utmost respect and care for the environment through proactive environmental management.

Waste Water Treatment PlantEBM has set up a waste water treatment plant and the company is using treated water for gardening purposes and to irrigate the newly landscaped recreation area and park for children.

Solid Waste Management AreaThe company has built a separate area for solid waste so that it does not harm the environment. Mostly waste is disposed off in a manner that is not harmful to anyone.

Development PlanThe company has constructed a lush green area for families, including children's play area, three waterfalls and gazebos, at an expenditure of Rs. 6 Million.

EducationEBM strongly believes in education, especially for females and adults and has sponsored

several programs such as the Garage School, Clifton Karachi, the CHAEF (Children Health and Education Foundation) School and the Shaheen KG school in Kala Shah Kaku, Lahore. The company has also initiated an in-house literacy program for its employees by the name of Ujala. Regular donations and fundraising activities have also become part of day to day business at EBM, as part of the company’s social responsibility initiatives.

HealthIn the field of healthcare, EBM’s support over the years has been extended to Shaukat Khanum Trust, Sahara for Life Trust, Edhi Foundation, Fatimid, Marie Adelaide Leprosy Centre, Alamgeer Welfare Trust, The Helpline Trust /


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http://www.ebm.com.pk/csr.aspx#sports%23sports

http://www.ebm.com.pk/csr.aspx#health%23health

http://www.ebm.com.pk/csr.aspx#education%23education

http://www.ebm.com.pk/csr.aspx#enviornment%23enviornment

Enhancing Competitiveness & Employability in Korangi Industrial Area Consumer Protection Council and the Children’s Health and Education Foundation, to name just some of the beneficiaries. Other initiatives have included the operation of the Children’s Nutritional Program.Sports

EBM firmly believes that a healthy mind works in tandem with a healthy body and has backed the sports initiatives of individuals and national teams, since the company’s inception. EBM was also the first corporate entity to have sponsored cricket, hockey, tennis and golf in the early years of PTV, when sponsorships were considered a taboo in the marketing circles of Pakistan. Through its sponsorship support, EBM made it possible for millions to watch major international sporting events through the first-ever live telecast, via satellite, of Mohammad Ali’s boxing bouts (1974), the telecast of the Football World Cup (1973) and the finals of the All England Lawn Tennis Championships, direct from Wimbledon.

Extending support in sports to the less privileged, the company has also sponsored the Blind Cricket Tournament 2004 and the Asian Olympics for Special People in Lahore.

As the legend leads, EBM’s endeavors serve the crucial purpose of creating an awakening and getting others to start thinking about socially responsible behavior. This is only possible if more and more companies, and not just the large ones, come forward to do their bit. The corporate sector must take a long-term view on this matter as a prosperous community can only benefit the corporate sector in return.

* This sustainability report is for the EBM Fiscal Year July 2006 to June 2007 and is part of EBM’s annual sustainability reporting process (the previous report was published in November 2006 for the previous fiscal year). The report covers all aspects of EBM’s sustainability activities, defining sustainability activities as where the Company (or its employees with the Company’s explicit support) is engaged in environmental or social sustainability activities, prioritizing those that EBM believes have had the most significant impact. Data management techniques have been described (where appropriate) in the body of this report. Environmental data has been analyzed (where possible) by independent laboratories and EBM intends to have a full independent audit of its sustainability report for the year 07/08. This report has been produced for employees, customers, local community, regulators and any other stakeholders who have an interest in how EBM understands and implements sustainability. The report covers all of EBM’s divisions and units, with the exception of the manufacturing plant at Hattar which is currently undergoing an extensive development program which severely hindered efforts


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Enhancing Competitiveness & Employability in Korangi Industrial Area to gather meaningful data and will be fully included in next year’s sustainability reporting.IntroductionBeing a “Company with a Heart and Soul” has been the ethos of English Biscuits Manufacturers Private Limited (EBM) for over 40 years, and our desire to be sustainable in our social and environmental impact has been demonstrated through our environmental record, our social and community programs within the Healthy Bodies, Healthy Minds theme, our care for our employees and our passion for delivering high quality products to our customers. This sustainability report for the financial year 2006-07* outlines many of these programs and initiatives and demonstrates why we believe that EBM is a Company with a Heart and Soul.

Welcome to EBM’s Social Responsibility Report for 2007 – this is where we tell the story of how we impact on all those we touch our stakeholders and how we’re working to make sure that this interaction is as positive as possible. EBM has enjoyed a record year in terms of Sales and Revenue growth; we experienced a 31% volume growth rate with revenue increasing from Rs.5.6 billion to Rs.7.5 billion. Our investment in plant and equipment touched Rs. 750 million as a result of which our capacity and efficiency have increased significantly. Our emphasis on innovation through research continues via the Center of Excellence, both the Karachi University and the University of Faisalabad collaborated with EBM on a number of projects, including the development of new wheat varieties. A commitment to Corporate Social Responsibility remains fundamental to our organization’s mission. This isn’t just because we want to be nice people doing the right thing. For us,


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Enhancing Competitiveness & Employability in Korangi Industrial Area Corporate Social Responsibility is about being sustainable and creating partnerships with stakeholders that are good for the society at large. This year’s report also reflects a change process which is ongoing. We aim to move towards a larger ‘picture’ with respect to our CSR strategy and have started developing internal structures to help ensure that our CSR efforts are constantly focused and sustainable over the long term. We’re aiming the report, quite simply, at anyone interested in knowing more about our organisation’s soul: staff who want to see where we are heading, clients and suppliers who areinterested in how we impact the world, peoplewho are interested in how we approach socialresponsibility and anyone else who just wantsto get to know us.EBM was delighted to win the Helpline Trust“Corporate Social Responsibility Award 2006”for our initiatives for the betterment of societyand for adherence to strict ethical businesspriorities and principles. EBM was also honouredby receiving the National Forum of Environmentand Health (NFEH) “Environmental ExcellenceAward 2007” for the 4th time in a row asrecognition of our efforts in environmentalprotection and safety for its employees,customers and local community.In 2006-07 EBM invested more than 37 millionrupees in its various social sustainabilityprogrammes, representing over 8% of totalprofits. EBM believes that this underlines itscommitment to social sustainability and provesthat EBM is indeed a Company with a Heart andSoul.I don’t know of any other Pakistani companylike ours that produces a report like this.Good for us. Long live EBM!

Sustainability VisionThe philosophy of EBM is that we are a livingCompany, a persona with a body, mind, heartand soul like any human being. And like anyliving organisation, EBM has dreams. We dreamof a company that cares about its customers, itsemployees, its community and the environmentwe all live in. We dream of a company thatinvests its resources in those around it that needit most, those whose own dreams cannot befulfilled.EBM’s heart and soul is focused on making ourdream a reality and in that fulfilling the dreamsof many many others. And this dream runs likea thread through everything EBM is and aspiresto be.That is why two out of EBM’s five core vision_____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

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Enhancing Competitiveness & Employability in Korangi Industrial Area statements focus on giving to the community,improving the lives of the underprivileged andsharing the responsibility for the social upliftand development of Pakistan.That is why one of EBM’s four core principlesis that of Humanity- EBM will do whatever ittakes to uplift the lives of the most deservingpeople around us.That is why EBM’s values include a focus onecology, the environment and on humanity,focusing our people on their responsibility tothe people and the environment all around us.And just as EBM’s philosophy for itself is that itshould have a healthy body and healthy mind,so it believes that its wider interventions in thecommunity should lead to healthy bodies,healthy minds.In light of this, EBM has chosen to focus onthese key areas of healthy bodies (throughhealthy eating, sports & leisure activities andhealthcare provision) and healthy minds(education and developing human capital) forits key interventions in sustainability

Company context and backgroundAs the pioneers of packaged biscuitmanufacturing in Pakistan, English BiscuitManufacturers Private Ltd. (EBM) startedmanufacturing and marketing of world famousPeek Freans range in 1967 in order to providePakistani consumers with good quality, nutritiousand hygienically packed biscuits. For over 40years now, EBM has led the biscuit industry inPakistan through its pioneership in providinginnovative and high quality biscuit tastes forevery taste bud.In the year 2007, the company’s sales turnoverwas in excess of Rs. 7.5 billion that is backed byan annual production capacity of 80,000 tons.We employ over 2,500 employees at our twomanufacturing facilities in Karachi and Hattar.EBM contributes over Rs. 850 million annuallyto the national exchequer through governmenttaxes and duties. Although the bulk of the salescome from the local Pakistani market, our brandsare universally recognised and sold across theglobe in five continents.BrandsThe trade mark Pied Piper made its mark about40 years ago, but it still remains in the hearts,minds and souls of the people through thevariety and excellent quality of biscuits_____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

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Enhancing Competitiveness & Employability in Korangi Industrial Area manufactured under its umbrella. The flagshipbrand 'Peek Freans' is a household name andpeople blindly believe in the quality of theproducts made under this brand.EBM manufactures the country’s largest rangeof hygienic and healthy biscuits under its famousPeek Freans Pied Piper logo. These include wellknown brands like Sooper, Rio, Party, PeanutPik, Peanut Pista, Gluco, Marie, Marvell, PremiumClick, Zeera Gold, Smile, Ringo, Chocolate &Lemon Sandwiches, Butter Puff, Saltish andWhole Wheat Slices.GovernanceEBM is registered as a Private Limited Companywith a functioning Board. The Board isresponsible for our overall management andperformance and the approval of our long-termobjectives and commercial strategy. The ChiefExecutive reports to the Board and is responsiblefor the day-to-day management of the company’soperations and the implementation of strategies.GrowthThe sales volume achievement for Year 06-07proved to be yet another milestone in the historyof EBM when the business recorded volumetric growth of 31% over the same period LY. As aresult, EBM further strengthened its marketleadership position by growing its volume sharefrom 43% to 46% of the total branded biscuitmarket.Investing to meet consumer needsOur economic success and our ability to benefitour shareowners and other stakeholders dependson meeting consumer needs. EBM is investingin growth and capability related initiatives thatinclude innovation, information technology,science and technology, commercial and salesforce capabilities and the understanding of ourcustomers. These enable us to meet consumerneeds better. Between the year 2000 and 2007,we have invested Rs. 1.6 billion in acquiring newstate-of-the-art technology and equipment.


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Approach and Governance of SustainabilityEBM is a privately held and family-run organisation that follows the highest standardsof national and international standards withrespect to governance and accountability,including that of social and environmentalsustainability. The Annual Directors’ Reportcontains sustainability reporting which isdiscussed at EBM’s Annual General Meeting.EBM believes that it is important to engage awide variety of stakeholders as partners, both indelivery of business actions and also in thedelivery of social and environmentalresponsibility actions.In light of this, EBM seeks to engage with itsstakeholders through:l An annual Supplier round-table to discusssocial and environmental sustainabilityconcernsl The provision of postal, website and (free-of cost)telephone channels for Customers toraise any concerns or questionsl Employee suggestion boxl Regular interactions with Civil Society andCommunity Partners through conferences(e.g. Safe food conference, Environmentconference) and project dialogues.To date, because of EBM’s proactive approach,no significant environmental or socialresponsibility issues or concerns have been raisedthrough its stakeholder engagement, beyondthose actions that are already being addressed.EBM selects Civil Society and Communitypartners that are well-established, have a goodreputation for effective and efficient serviceprovision and are actively and positively involvedin the local community. EBM works with thesepartners to ensure that its interventions create


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Enhancing Competitiveness & Employability in Korangi Industrial Area sustainability within the partner, rather thancreating or encouraging a dependency culture.EBM also looks to work to external standards ofenvironmental and social sustainability, being asignatory of the United Nations Global Compactand it encourages other Companies to do thesame through its active role in local businessorganisations such as the Korangi Association ofPakistan, the Korangi Industrial and Trade Estateand the Employers’ Federation of Pakistan. EBMalso looks for opportunities to work with localand national government to encourage thisagenda. Although EBM does not undertake orget involved in lobbying or other political activity(and makes no financial or in-kind contributionsto any politicians or political parties), it haspartnered with the local Government for theSchool Adoption programme (see page 19) andhas as been a contributor to the governmentsponsoredForum on best-practice governancearrangements for family-owned corporations.EBM receives no financial assistance from theGovernment for these or any other programmes,but feels it has a responsibility to be a partnerin the development of Pakistan and its people.EBM also believes that sustainability is not simplyabout initiatives or programmes that areundertaken, but also about the culture andbehaviour of its people. As a result, EBM takesa firm stand against corruption and corruptpractices and as such ensures that all employeesread and sign the EBM code of ethics. Further,EBM requires all contracts that may include anyfamily connection or other conflict of interestto be approved by the Board of Directors. As aresult, EBM has never knowingly been involvedin an act of corruption.EBM also ensures that it complies with allnational laws and regulations and relevantinternational frameworks and standards and hasnever been sanctioned or fined for noncomplianceof any legislation or regulation.

Healthy EatingWe operate in an ever changing and increasinglycomplex food environment. In its Global Strategyon Diet, Physical Activity and Health, the WorldHealth Organisation ( WHO) calls forgovernments, business and other stakeholdersto work together to promote healthier diets,nutrition and exercise. This Global Strategy hasthese recommendations for food industries:_____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

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Enhancing Competitiveness & Employability in Korangi Industrial Area l Promote healthy diets and physical activityl Limit the levels of saturated fats, trans-fattyacids, free sugars and salt in existing productsl Continue to develop and provide affordable,healthy and nutritious choicesl Consider introducing new products withbetter nutritional valuel Provide consumers with adequate andunderstandable product and nutritioninformationl Practice responsible marketingl Issue simple, clear and consistent food labels,evidence-based health claimsl Provide information on food compositionl Support physical activity programmesl Provide workplace intervention on healthand well-being.We endorse this strategy and are working withstakeholders like the Ministry of Food, Agriculture& Livestock (Pakistan) along with URS UK todevelop solutions against theserecommendations.Safe Food ConferenceEBM endorses and promotes Food Safety inPakistan through the Safe Food Pakistan initiativeundertaken in partnership with United Registrarof Systems Limited UK. Over the past few years,Safe Food has hosted six conferences on thesubject of healthy and safe eating with broadparticipation from scientists, regulators,nutritionists and other local and internationalexperts.In the year 2007 the Safe Food Conferencefocused on “Public Private” partnerships to helpregulate Food Safety in developing countries.The 2007 conference was held in the city ofIslamabad, Pakistan. Local experts along withspeakers from Ireland and Spain presentedpapers on effective frameworks for the regulationof Food Safety. The Ministry of Food Agricultureand Livestock Pakistan partnered EBM and URSat this event.Our commitment to Food Safety is highlightedby our continuing financial support amountingto over 8 million rupees towards the Safe FoodPakistan initiative.Establishing a model canteen for better eatinghabitsEBM further extended the Safe Food concept byrevamping and upgrading a School Canteen atthe Mama Parsi School in Karachi. A totaldonation of Rs.1.2 million was made to the_____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

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Enhancing Competitiveness & Employability in Korangi Industrial Area school, to assist them in upgrading their cooking,heating and storage equipment at their canteen.This infrastructure improvement was backedby extensive training of canteen staff on foodhandling, storage and personal hygiene. Basedon recommendations by EBM and URS nutritionexperts, the Mama Parsi school managementdiscontinued the sale of high-sugar contentcarbonated drinks at their canteen.

Health Care SupportEBM has always believed that healthy bodies area fundamental right and a key enabler of a healthymind and of fulfilling one’s dreams. Therefore,EBM partners with some of the largest and mostsignificant charitable healthcare providers inPakistan and has contributed over 7 millionrupees in 2006/07 to organisations such asShaukat Khanum Memorial Trust, Sahara for Life,the Sindh Institute of Urology andTransplantation, the National Institute forCardiovascular Diseases and the Child Healthand Education Foundation.Combining support for Children’s Healthand EducationEBM has supported the Child Health andEducation Foundation (CHAEF) since itsfoundation in 2004, which has lead to thetreatment of over 500,000 patients and theeducation of 500 children over that period. In2006/07 alone, EBM invested nearly 1.9 millionrupees to support CHAEF to deliver health andeducation services to the poorest communitiesof Karachi through their combined centres ofeducation during the day and medical treatmentin the afternoon. EBM has not only providedfunds to support the establishment and ongoingsupport of these centres, but has also investedin the fundraising capability of CHAEF, allowingit to draw on further sponsors and supportersto build towards a sustainable platform.Mr. Syed Naeem-ul-Hassan, Chairman and CEOof CHAEF, declared that “you will not find acompany like EBM in the whole of Pakistan”.Responding to the need for healthy heartsEBM has been working with the National Instituteof Cardiovascular Diseases (NICVD) for manyyears and in 2006/07 was delighted to contributealmost 1.4 million rupees of donations, purchaseof equipment and Zakat contributions. Part ofthis support led to the refurbishment of theEmergency Room in their Karachi Hospital,_____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

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Enhancing Competitiveness & Employability in Korangi Industrial Area ensuring that over 100,000 patients every yearget the excellent care that they need to keeptheir hearts healthy and their dreams alive.“EBM always responded when we needed help”Ms. Zareena Asghar, Honorary Secretary of NICVD

Sports & LeisureA healthy body needs to be exercised and as part ofEBM’s core belief of “Healthy Bodies, Healthy Minds”,we have been a pioneer in supporting and sponsoringSports & Leisure activities in Pakistan. Our firstsupport of Sports activities in Pakistan dates back tothe televising of the World Cup Final in Munich in1973 and the famous “Rumble in the Jungle” boxingmatch between Mohammad Ali and George Foremanin 1974. EBM was the first company in Pakistan tosponsor Cricket, Hockey, Tennis and Golf in the earlyyears of PTV and has also added Swimming, Snooker,Bridge, Blind Cricket and the Special Olympics to itsportfolio of support for sporting activities in Pakistan.EBM has continued this year in its tradition ofpromoting and encouraging healthy sporting activitiesamongst the youth of our country and also especiallyfor women and disadvantaged groups. EBM believesthat Sports & Leisure activities should be supportednot only to develop the health of the nation, but alsoto instill a life of discipline, dedication, commitment,pride and achievement in its participants andsupporters.Sports encourage us to achieve our goals andobjectives and fuels our innate desire to rise abovemediocrity and achieve things for ourselves, ourcommunities and our nation. This is a way of lifethat goes beyond sports in anything and everythingwe do…it thus goes beyond the individual level andhas long-term positive ramifications at a national andinternational level.EBM has shown this belief in action, contributingover 8.5m Rupees in sponsorships and donations toSports & Leisure activities.5th National Blind Cricket CompetitionEBM has been supporting the Pakistan Associationof the Blind (PAB) since 2004 and this year EBMsponsored the National Blind Cricket Tournamentfor the 4th consecutive year. Six teams from fourprovinces participated in thecompetition and although Sindh Greenwon the final match against PunjabRed by nine wickets, all of the playersparticipated with good spirits and wereall considered winners in their ownright.EBM is proud to support PAB increating awareness, training andrehabilitation of the blind communityin Pakistan.


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Enhancing Competitiveness & Employability in Korangi Industrial Area National Swimming ChampionshipsEBM has been sponsoring variousswimming events for several years,including men’s, women’s and children’s swimmingchampionships. EBM sponsors different events indifferent years to broaden the impact and increasethe awareness of swimming across the nation. In2006/07 EBM sponsored both the 46th Sindh Openand Junior Swimming Championships and the 14thNational Mens Junior Swimming Championshipsthrough the Sindh Swimming Association, whichseeks to organise and promote swimming throughoutSindh without any major government assistance.EBM is an avid supporter of swimming for its abilityto involve people of all ages, genders, backgroundsand abilities.

EducationEducation is a basic human right, butunfortunately many people in our country aredeprived of this blessing because of poverty.They forego education in search of livelihoodand means of survival at an age when they shouldhave a book in their hands. EBM is respondingto this desperate situation through working withlocal schools to improve educational standardsand in companies and prisons with those thatmissed out on an earlier opportunity to learnhow to read and write. But EBM also believesthat education should not be limited to basicschooling but should continue to help peoplerealise their potential throughout their lives andso has also invested in a leadership developmentschool and various management developmentinitiatives. EBM has invested over 10 millionrupees in educational initiatives in 2006-07.Adopting local schoolsMany of the schools located in the Korangi areaaround the EBM site were in a woeful state, withinadequate buildings and facilities to deliver thequality education that their children deservedand limiting the schools’ abilities to see thedreams of these children fulfilled. EBM workedwith the Pakistan Centre for Philanthropy andthe Karachi City Government to invest over3 million rupees to upgrade the facilities of5 schools, such as the installation of drinkingwater and proper sanitation, purchase booksand learning materials and to employ supportstaff to keep the schools safe, clean and in goodworking order. Thanks to EBM’s involvement,1000 more children have a chance of seeingtheir dreams fulfilled.


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Enhancing Competitiveness & Employability in Korangi Industrial Area Bringing the light of education to those thathave never had itBecause of the poverty of educational provisionin many parts of our country, many talentedindividuals are lost in the darkness of illiteracyand education for them remains only as aprivilege that they hope to give to their children.In response to this, EBM has been working withLiterate Pakistan to reach over 150 people inside10 jails in Karachi and Hyderabad to spreadliteracy, encourage positive social and mentalbehaviour of the inmates and to give them hopefor their future.Education through entertainmentTheatre has always been regarded as one of themost powerful mediums of education forchildren, providing a multi-sensory experienceto stimulate the brain which leaves a strong andlong-lasting impression on all those that interactwith it. As a strong supporter for children’sdevelopment and education, EBM has enteredinto a collaboration with Talat Hussain, one ofthe country’s biggest and most respected namesin the entertainment industry, to launch apermanent children’s theatre in Karachi. ThePeek Freans Children’s Theatre works in schoolsand with schools to promote and encouragetheatre and to put on displays of various theatricalperformances to entertain, promote positivemoral and cultural values, to educate youngpeople.Bringing Leadership to Life for Young PeopleEBM has been sponsoring the Young Leaders’Conference for the past 4 years because webelieve that conferences like these give a hugeboost to the psychological development of youngminds.Development of Human CapitalAs a high growth consumer goods business, wetrade in a competitive and dynamic environment.The expectations of our consumers, shareowners,customers, external bodies and society aregrowing and evolving all the time, as are theneeds and expectations of our employees. OurHuman Capital Strategy helps us to ensure thatwe can meet these current and future businessneeds.Our goal on sustainability is to nurture ourCompany as ‘Place to be’, where people areproud to work and are committed and engaged.EBM’s Human Capital Strategy is built aroundfive core values:_____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

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Labour rights and dignity at work Health and Safety in the workplace Fair remuneration Diversity Opportunity for development

Core Labor Rights and Dignity at WorkWe fully support the rights and opportunities ofall people to seek, obtain and hold employmentwith dignity and without any form ofdiscrimination. To this end, it is the policy ofEBM to make every effort to provide a workingenvironment free from all forms of employeeintimidation and offensive behaviour.In this respect the Company will not condoneany form of harassment. It is therefore againstthe policy of EBM for any employee to harassanother employee in any way. Such conduct willnot be tolerated and appropriate disciplinaryaction, including dismissal for serious offences,will be taken against any employee who violatesthe policy.Health and Safety in the WorkplaceImproving our safety performance is the topmanagement’s utmost priority. We havedeveloped various programmes to help improveour safety performance and are reviewing andmonitoring this performance more closely thanever before. Our ultimate goal is to embed azero accident culture.In 2007, we conducted a detailed HSE RiskAssessment study which identified key areas ofconcern. The Risk Assessment study was followedby an update of our Environment Health andSafety Policy, Management Processes andProcedures.To help sustain HSE performance, our HSEsystem is certified to the IS0 14001 standard forEnvironmental Management and is in the processof attaining certification to the BS 18001Occupational Health & Safety Standard.Fair RemunerationEBM is not just a top company but a top employertoo because EBM believes in providing faircompensation and benefits to the employees.EBM attracts and hires the best talent byproviding market based salary and benefits tothe new hires, develop them by training, evaluatethem by performance appraisals and rewardthem in both intrinsic and extrinsic manner.In this manner, EBM for the first timeimplemented the best pay for performanceprogramme called Performance Development_____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

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Enhancing Competitiveness & Employability in Korangi Industrial Area Review (PDR) process in the year 2007, in whichemployees are rewarded and promoted on thebasis of their performance.EBM also believes in the true spirit of internalequity and market based compensation andbenefits. In this regard, a comprehensive salarysurvey has been done by EBM with the help ofconsultancy firms including Ferguson AssociatesManagement Consultants and Abacus HRConsultants. In terms of internal equity, EBMtreats all the employees equally i.e. the employeeswith the similar profile and position have similarcompensation and benefits and all newinductions are done by evaluating this internalequity.EBM does not restrict the fair compensation forthe permanent employees but the companyrewards and recognises the contractual staff also.DiversityOur greatest strength lies in the diversity amongemployees. This diversity is an edge amongcompetitors, an asset for productivity and inleading and innovating in all the aspects of thebusiness.We consider diversity to be as one of ourorganisation’s core values. The company believesthat the people with different backgrounds,cultures, experiences and work can make adifference and break the status equilibrium ofthe market. Our aim is to utilise the best humanresources by understanding the true concept ofdiversity.Nobody dealing with EBM, whether employeeor applicant, will receive less favourable treatmenton the grounds of race, colour, religion,nationality, ethnic origin, gender, age, maritalstatus, sexuality or disability.Opportunity for Development – Investors inPeopleAt EBM, learning and developmentis about providing opportunities forour people to enhance theircapabilities and to realise their fullpotential.We view learning and developmentas a shared responsibility betweenthe company and employees, withthe company providing the resourcesand individuals providing theessential motivation andcommitment. Our human resourcefunction designs learning and_____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

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Enhancing Competitiveness & Employability in Korangi Industrial Area development activities to help inthis, with a focus on increasing theknowledge, experience, skills andbehaviour of individuals and teams.Part of our line managers’ responsibility is toidentify the training needs of his or her directreports, match those needs to training anddevelopment opportunities and ensure thatlearning is transferred back into the workplace.Our commitment to learning and developmenthas been independently verified by ourrecognition to the international Investors inPeople standard. The Investors in People standardis a business improvement tool designed toadvance an organisation’s performance throughits employees. Investors in People sets a level ofgood practice for improving a company'sproductivity by maximising the potential of itspeople. EBM was recognised to this standard inNovember 2005 and continues to maintain thiscertification.

Environmental PerformanceThroughout all of our business activities, westrive to reduce greenhouse gas emissions anddevelop and spread the use of technology andmaterials that produce a minimal burden on theenvironment.We try to reduce our environmental burden bygetting an accurate picture of the impact thatour business activities and product life cycleshave on the environment: starting with designand development, through raw materialsprocurement, production, sale, transport anddistribution and finally to product disposal andrecycling. In this manner, EBM follows thePrecautionary Approach (Article 15 of the RioPrinciples) and seeks to be proactive in itsapproach to risk management in operationalplanning and implements the highestenvironmental standards at all stages ofprocessing and operations.We are also placing a special focus on eliminationof fluorocarbons used in cooling systems andthe use of electricity (resulting in CO2 emissions),two factors we believe are most responsible forozone depletion and global warming.Meeting World Class StandardsIn the year 2006-07, all of our final emissionsmet the requirements of the Pakistan NationalEnvironmental Quality Standards (NEQS). Inaddition to NEQS compliance, all of EBM’s_____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

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Enhancing Competitiveness & Employability in Korangi Industrial Area policies and principles have been translated intopractice through management systems that helpus recognise and control the most significantaspects of our operations. These systems areused to set targets and to follow-up onperformance related to environmental issues,food safety, occupational health/safety,information security and hygiene. As a result,EBM is certified to ISO 14001, HACCP, ISO 9001and ISO 27001 by United Registrar of SystemsLimited UK.We employ the use of the latest wastemanagement technology at all emission points.As a result, 100% of our liquid waste passedthrough our in-house effluent treatment plantbefore being released at NEQS compliant levelsto the municipal stream.Efficiency in Power SuppliesEnergy is an essential part of the biscuitmanufacturing process. EBM’s energy supplystrategy focuses on the long term. Our approachto energy use, production and fuel mix supportsactions to help mitigate climate change. Basedon the premise that gas fired generation has alower impact on climate change thanconventional power production, 100% of EBM’senergy requirements in the year 2007 was derivedfrom energy efficient and low emission gaspowered generators. Apart from drasticallyreducing our carbon footprint, our captive energyprogramme reduced the burden on the nationalgrid, which is currently facing a power deficit.How we performed - Environmental DataOur environmental performance is measuredagainst well defined goals and targets. Monitoringis conducted by our in-house teams as well asthrough a third party test laboratory. Givenbelow are our key environmental performancefigures. This data is based on third party testsperformed by an external agency GELLaboratories, Karachi.


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Environmental Activity

In addition to maintaining compliance withapplicable laws and regulations, we areconstantly exploring ways to reduce ourenvironmental impact, keep our workplace safeand ensure that our products can be enjoyedwith confidence.Some highlightsOur environmental action programme isdesigned to drive performance beyond regulatorycompliance and toward reduced costs,competitive advantage and sustainablemanufacturing. The programme provides afocused and disciplined way to prioritiseenvironmental and energy issues anddemonstrate progress in key areas of globalenvironmental concern.Our environmental programme and objectivesset aggressive performance targets from 2006through 2007. Our business strove forperformance improvement to achieve thefollowing:l Environmental Management System (EMS)Objective: maintain an EMS consistent withthe International Organisation forStandardisation’s (ISO) 14001 EMS standard.l Energy-Efficiency Objective: Achieve worldclassprocess energy-efficiency benchmarksfor our manufacturing process.l Water-Use Objective: Reduce the amount ofprocess water we use and improve the qualityof waste water.l Packaging and Waste Reduction Objective:


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Enhancing Competitiveness & Employability in Korangi Industrial Area Achieve a reduction in total transport andfinal product packaging for our business whileworking towards recycling 100% of nonhazardoussolid waste from operations.Environmental Excellence AwardWe feel privileged to have received Pakistan’senvironmental excellence award for the fourthstraight year. This award has been presented toEBM by the National Forum for Environmentaland Health, in recognition of our best practicesin waste reduction and environmentalmanagement. Our annual successes in wastemanagement are the culmination of numeroussmall projects undertaken by a number of teamsand individuals across the organisation andsupply chain.Waste – reduce, reuse, recycle... rethinkAs a Company, we continue to think about howwe can design waste out at the source andreinvent the way we do things.Initiatives include the separation of waste atsource, recycling initiatives, reusable packagingmaterials used by suppliers and commercial salesof non hazardous waste as input to otherbusinesses. One of the most successfulprogrammes is our ability to sell corrugatedingredient boxes and packaging materials intoa secondary market for resale, sales frompackaging material sales generated over Rs. 20million in revenue over the year 2006-07.We are working collaboratively with our suppliersto help make their own systems more effectiveand to bring about improvements. This includesholding meetings with individual suppliers andwith supplier groups and working with them todevelop our ethical sourcing standards andsustainability. Working with suppliers in this wayalso helps them create value for themselves andtheir organisations. We held a number of suppliertraining workshops in 2007 to share best practicesin environmental management and resourceconservation.

Involvement in the Wider CommunityEBM is passionate about its focus on healthybodies, healthy minds, but does not want torestrict its social responsibility activities only tothese areas. As such, EBM contributed over3 million rupees to other causes throughout2006-07 including the Noor-e-Ali Trust, CitizensPolice Liaison Committee and Roshni Homes.Supporting One Woman’s efforts to transform_____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

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Enhancing Competitiveness & Employability in Korangi Industrial Area her village for the betterThe village of Rane Ji Wandh in rural Sindh hasbeen transformed by the efforts of one woman,Aami. Having taught herself and the otherwomen folk of the village to read, she capturedthe struggles of life for the rural poor ondocumentaries (broadcast on Aaj TV in August2006) and campaigned for better facilities forthe 1200 people living in the area. EBM wasproud to partner with this remarkable womanand a donation of Rs. 450,000 provided a solarwater pump to the village and solar panelsproviding electricity to several homes in thevillage. These contributions have saved thewomen of the village from hours of hard labour,freeing them up to devote to income generationand agricultural projects to provide for theirfamilies. Well done Aami and well done Rane JiWandh!Commitment to Human RightsEBM is an enthusiastic supporter of the effortsof the Government of Pakistan to support therights and opportunities of disadvantaged groupsas enshrined in external regulations and ourown internal Code of Ethics and is proud tocount a significant proportion of disabled peoplein our workforce. EBM ensures that all of itssites are compliant with legislation such thatwomen and disabled workers can access workand associated facilities and has never beensubject to any accusations of discrimination.EBM is a vocal opponent of Child and Forcedlabour and checks that none of its employeesare within these categories through its applicationand selection process.Looking Forward

EBM is proud to be a responsible corporatecitizen, but we do not want to rest on our historyand our current involvement. EBM wants toimprove the way it acts as a responsible corporatecitizen and to increase the impact of itscontribution.To improve the way it acts, in 2007-08 EBM willfurther focus and refine its environmental andsocial interventions to ensure that they arealigned with EBM’s strategic objectives and thatthey make full use of EBM’s resources andpeople. To ensure that EBM is doing this in arobust and transparent way, the Companyintends to have a full independent audit of itssustainability report for 2007-08._____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

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Enhancing Competitiveness & Employability in Korangi Industrial Area EBM will further engage with its variousstakeholders to ensure that we are meeting theirexpectations and to encourage other companiesin our value chain to share in this vision ofcorporate responsibility. For example, EBM willbe further exploring how to emphasise thesematters (e.g. ethical practice, environmentalsustainability, human rights) in our suppliercontracts and relationships.EBM also plans to increase the value of ourcontributions to over 40 million rupees in2007-08 and will be seeking partnerships thatwill deliver strategic and sustainable impacts forthe neediest and most disadvantaged in oursociety.EBM is also looking at ways we can leveragemore than just our financial strength as part ofour sustainability approach. As such, EBMinaugurated its own Centre of Excellence in2006, not just as a Research and Developmentcapability for EBM, but as a facility to enhancethe knowledge capital of Pakistan in foodtechnology and safety. As such, EBM has alreadywelcomed academics and researchers to use thefacilities with no direct benefit to EBM and willbe exploring further opportunities to utilise thisresource (and others) for the benefit of Pakistanand its people. EBM invested over 20 millionrupees in this facility in 2006-07 (not includedin its Social Responsibility figures) and hopesthat this facility will become a cornerstone ofhelping the food industry in Pakistan and throughthat the health and welfare of its people.But most of all, EBM looks forward to anotheryear of seeing lives changed, of enabling healthybodies, healthy minds and of more dreams beingfulfilled.

GRI Sustainability Reporting Guideline ReferencesThe Global Reporting Initiative (GRI) Sustainability Reporting Framework is an internationally recognised framework for the good governance andappropriate reporting of an organisation’s approach and interventions in environmental and social sustainability. In common with all its activities,EBM seeks to adhere to the highest available standards and benchmarks and as such has compiled this report in line with the GRI Guidelines, Version3.0. For more information about the guidelines, please visit www.globalreporting.org. The table below outlines which GRI references have beenfollowed within each section of the report and also identifies any GRI references that fall outside of the scope of EBM or its reporting.


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Executive SummaryWelcome to the English Biscuit Manufacturers(Private) Limited 2007-08 SustainabilityReport. This year’s report, “a vision for aBrighter Future”, builds on our continuingfocus for healthy bodies, healthy minds, anda healthy environment. This focus hascharacterised our investments andinvolvement in sustainability and socialresponsibility for many years. Ourprogrammes and this report look toinvestments in these areas that are buildinga platform for a brighter future for us and forour children.


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Enhancing Competitiveness & Employability in Korangi Industrial Area Despite increased pressure on our profitmargins due to significantly increased rawmaterial costs, EBM increased its overallinvestment in sustainability and socialresponsibility by 12% to over Rs. 42 million,exceeding our previously stated commitmentto spend Rs. 40 million.In this year’s report we highlight significantprojects in the theme of healthy bodies,including Rs. 8.6 million on healthy eatingprojects as diverse as the national Safe Foodconference and our various productstewardship activities. We describe how ourinvestment of over Rs.11 million in healthcaresupport is providing health facilities to thosewho cannot afford it and encouraging childrento engage with and support healthcareprovision for the poor. And, we pick up onsome of the Rs. 8 million we spent on sportsand fitness sponsorships, aiming to broadeninvolvement in exercise and sports activities,including Swimming Championships andBlind Cricket.We also describe our investments in the themeof healthy minds, in particular highlightingthe Rs. 9 million we’ve invested in education,providing school places for over 1,100 pupils,and spurring young leaders on with the YoungLeaders’ leadership development conference.We also highlight our commitment to BestPractice, not just within our company, butencouraging other companies and individualson to being the very best that they can be.Presenting our commitment to a healthyenvironment through our own initiatives, tomanage the impact of our activities and byencouraging that commitment in others.EBM has a vision for a brighter future andwe believe that this report demonstrates ourcommitment to realising that future, throughour investments, through our actions, throughour own plans for the future, and througheverything that we are.


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Dear stakeholder,There can be little doubt that in the globalsocio – economic environment today, it is thefirm responsibility of ethical companies toplay a key role in enhancing and shaping theeconomic and social progress of the countriesthey are operating in. It must be understoodthat all this makes good business sense, asthe sustainable development of a company’sbusiness is today inextricably linked to thesustainable growth of society itself. And thiscan only be done by inculcating and practicingcore values and best practices that contributeto the prosperity of companies and hencepositively impact the growth of a country.Just as globalisation is a reality today whetherone is a proponent or an opponent of it, so isthe need to incorporate sustainable businesspractice.In time to come only the best will survive:whether it is in the manufacturing or theservices sector. The best will be those whostrategically pursue the triple bottom lineapproach to business – that is a businessgrowth model based on the welfare andgrowth of society at large (people), thepreservation of the environment and preciousnatural resources (planet) and the pursuit ofprofitability (profits) in an ethical way.Three years ago, we published our firstCorporate Social Responsibility (CSR) Reportin which we enunciated our vision as acorporate citizen. Our CSR performance andits impact has improved dramatically since.This year’s CSR Report provides anassessment of EBM’s business, social andenvironmental performance in 2007 – 08wherein the Company’s central theme wasset-around:n Healthy Minds


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Enhancing Competitiveness & Employability in Korangi Industrial Area n Healthy Bodies andn Healthy EnvironmentIt is a fair statement to make that our faith inCSR has become much stronger today thanever before and hence the title: “A Vision fora Brighter Future”.On behalf of everyone at EBM, we are happyto update you on our progress.Khawar M. ButtManaging Director

Message from theManaging Director

Investing for a Brighter FutureBuilding a Healthier FutureLearning for a Better FutureCaring for a Greener FutureContributing towards a Fairer FutureLooking Forward to a Brighter FutureGRI References

IntroductionEnglish Biscuit Manufacturers (Private)Limited has been passionate aboutsustainability and social responsibility for 40years. Our desire to be sustainable in oursocial and environmental impact has beendemonstrated through our environmentalrecord, our social and community programmeswithin the Healthy Bodies, Healthy Mindstheme, our care for our employees, and ourpassion for delivering high quality productsto our customers.This sustainability report for the financialyear 2007-08* is a core part of our annualsustainability reporting process providingemployees, suppliers, customers and the localcommunity an understanding of oursustainability vision, and how we invest for_____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

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Enhancing Competitiveness & Employability in Korangi Industrial Area a brighter future for them and their children.EBM has presented those projects andinitiatives that are of most significance to ourstakeholders, in terms of scale, relevance andimpact. If you would like to find out moreabout any of the programmes in this report,or about how EBM’s sustainabilitycommitments, please contact:Ms Saadia NaveedDeputy Managing DirectorP. O Box 5536Plot 1-4, Sector 23Korangi Industrial AreaKarachi 74900Pakistan* This report is for the EBM Fiscal Year July 2007 to June 2008 and covers all of EBM’s divisions and units(although not suppliers or subsidiaries). The Report for 2006-07 was published in December 2007.The report covers all aspects of EBM’s sustainability activities and defines where the company (or its employees with thecompany’s explicit support) is engaged in environmental or social sustainability activities, prioritising those that EBM believeshave had the most significant impact. Data management techniques have been described (where appropriate) in the body of thisreport. Environmental data has been analysed (where possible) by independent laboratories, and EBM intends to have a fullindependent audit of its sustainability report for the year 2008-09.

Sustainability VisionInvesting for a Brighter FutureEBM is Pakistan’s leading biscuit companywith heart and soul. This description reflectshow sustainability and social responsibilitylie at the heart of our identity and our purposeas a company. This description shows thatwe are a company with a vision for investingfor a brighter future, not just for ourselvesand our business model, but for ouremployees, our customers, our suppliers, ourlocal communities, and for the nation.Understanding that this vision has to startwith ourselves, we ensure that our productscomply with international standards and meetthe highest possible standards for hygieneand quality. We have also taken steps to ensureour distributors take their responsibility forquality seriously and that our consumer areas informed as possible regarding the benefitsand risks of food consumption.For this reason, appreciating EBM as a


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Enhancing Competitiveness & Employability in Korangi Industrial Area manufacturer of biscuits, we recognise thenational challenges of poor hygiene, of lowfood standards and the poor health or ourpeople. And so we are responding to thatchallenge by investing for a brighter futurein healthy bodies, by which we mean foodsafety, health and fitness.Building on our core vision statements,principles and values, we recognise the needto share the responsibility for the socialupliftment and development of Pakistan,improving the lives of the underprivileged.Looking at the needs of our nation, we believethat the most critical for a bright future forthe people of Pakistan is education, and sowe are investing for a brighter future in“healthy minds”, education for children, forour employees, and more widely in bestpractice and leadership within Pakistan.We also understand our responsibility in ourprocesses, thus investing in a brighter futurefor a healthy environment, ensures ourprocesses are as clean and environmentallyfriendly as possible, and investing in the localand wider environment as opportunities arise.This year, we have also focused on ensuringour investments have been applied efficientlyand effectively; concentrating on fewer morestrategic initiatives and projects, rather thanreactive donations.EBM believes in a brighter future for thepeople of Pakistan. Investing in healthybodies, healthy minds and a healthyenvironment we are doing our part to makethat brighter future a reality.Investing for a Brighter Future

EBM BackgroundEBM is in the business of producing andmarketing trusted quality food products thatfit today’s changing lifestyles. As a PrivateLimited Company, operating in Pakistan since1967, we are Pakistan’s largest BiscuitManufacturer, maintaining over 40% marketshare in branded biscuit market. In the year2007-08, EBM produced over 63,000 tonnesof biscuits which corresponds to a turnover


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Enhancing Competitiveness & Employability in Korangi Industrial Area in excess of Rs. 7.8 billion. In the same period,EBM contributed over Rs. 700 million intaxes to the national exchequer and overRs. 42 million towards its Corporate SocialResponsibility Programme.With our main manufacturing facility basedin Korangi, Karachi, with a totalmanufacturing capacity of 80,000 tonnes perannum, EBM provides direct and indirectemployment to over 2,500 people at itsproduction site in Karachi, and its subsidiaryin Hattar.EBM manufactures the country’s largest rangeof hygienic and healthy biscuits under itsfamous Peek Freans Pied Piper logo. Theseinclude well known brands like Sooper, Gluco,RIO, Original Lemon & Chocolate Sandwich,Peanut Pik, Peanut Pista, Party, Whole WheatSlices, Marie, Butter Puff, Saltish, PremiumClick, Zeera Gold, Marvell and Smile to nameonly a few.Through our Vision, Core Values, Code ofConduct and Sustainability Strategy, EBMstrives to operate with integrity, trust and iscommitted to creating value for ourshareholders, customers, and team members.With all of our locations fully integrateenvironmental management into theiroperational systems and procedures, the EBMmanagement reviews environmentalperformance and its policy annually.


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Sustainability Management ApproachBeing a valued and respected member ofsociety isn’t inherited, it’s earned. This meansthat, year in and year out, we must understandthe impact we have on the world, theenvironment, the economy and individuals.We believe it’s important to make sustainablebusiness practice part of everyday life atEBM. To achieve this, EBM has a designatedfunction with the assigned responsibility formanaging Corporate Responsibility at everylevel of the business - from our Board rightdown to our management teams in our factory.EBM’s Corporate Responsibility approach isdirectly linked to our Business Principles.These spell out the high standards of conductwe work to and are aligned to commonlyaccepted global standards, like the UniversalDeclaration of Human Rights,International Labour Organisationconventions and Millennium DevelopmentGoals, and EBM is a signatory of the UNGlobal Compact.Everyone at EBM is expected to uphold theseprinciples. It’s the responsibility of all seniorexecutives and managers to make sure thatthey themselves, and their teams, workaccording to these principles and confirmtheir teams have been informed about thestandards of ethical conduct expected of them.We have adopted a range of CSR policies,_____________________________________________________________________CASE STUDY – English Biscuit Manufacturers (Pvt) Limited May 2009

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Enhancing Competitiveness & Employability in Korangi Industrial Area processes, systems, guidelines, and standardswhich has been developed with the input fromexternal stakeholders. EBM believes that itis important to engage a wide variety ofstakeholders as partners, both in delivery ofbusiness actions and also in the delivery ofsocial and environmental responsibilityactions.In light of this, EBM seeks to engage withits stakeholders through:n An annual supplier round-table to discusssocial and environmental sustainabilityconcernsn The provision of postal, website and (freeof-cost) telephone channels for customersto raise any concerns or questionsn Employee suggestion boxn Regular interactions with Civil Society andCommunity Partners through conferences(e.g. Safe Food Conference, EnvironmentConference) and project dialoguesTo date, because of EBM’s proactiveapproach, no significant environmental orsocial responsibility issues or concerns havebeen raised through its stakeholderengagement, beyond those actions that arealready being addressed.EBM selects Civil Society and CommunityPartners that are well-established, have a goodreputation for effective and efficient serviceprovision, and are actively and positivelyinvolved in the local community. EBM workswith these partners to ensure that itsinterventions create sustainability within thepartner, rather than creating or encouraginga dependency culture.In sustainability, as in all areas of ourbusinesses, we look to learn from and betterunderstand the world around us. We sharewhat we learn across our businesses and useit to inform our decision making. We look toour external environment as well,benchmarking ourselves against our peersand competitors and listening to the concernsof our stakeholders. We continue to embedthis learning in our plans, activities, businesssystems and processes.


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Investing in Food SafetyFor 40 years, as an industry leader, EBM hasbeen committed to providing safe, qualityfood that people can trust. Our history ofdeveloping innovative and effective foodsafety systems has been recognised as goldstandards in the local industry and as stateof-the-art by academia and governmentregulators. These innovations are essential inmaintaining the confidence, customers andconsumers have in the EBM brand.Our commitment to innovation helps ensurethat each product leaving the EBM plantseither meets or exceeds customers’ andconsumers’ expectations.EBM participates in a number of nationalfood safety and quality programmes, as wellas its own Safe Food Conference. Safe Foodhas been running since 2002 and is aimed athelping educate food processors, customersand consumers on leading trends and practicesin food safety.To build on our excellent record in food safety,we are progressively raising the quality ofour manufacturing to a standard more akinto the pharmaceutical industry. In the lastthree years, we invested Rs. 1.6 billion ofcapital investments as part of our facilityupgrade.Our success in food safety is measured bythe reductions in product rejections whichhas gone down from 0.08% of total volumein 2006-07 to 0.06% in 2007-08.Ensuring Safe and Quality Food at ourFacilitiesFrom our factories and laboratories to ourproduct and process monitoring programmesto our Hazard Analysis and Critical ControlPoint (HACCP) verification processes, ourdedication to safe, quality food is evident inthe programmes and controls we have toprotect our products.The safety of our products is closelymonitored by a Food Safety Team located ateach facility. These multi-departmental teamssystematically evaluate the key aspects of theproduction processes to prevent potential food


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Enhancing Competitiveness & Employability in Korangi Industrial Area safety issues. The Food Safety Team thenworks with the facility to develop, implementand monitor controls and procedures to drivecontinuous improvement.Food Safety ResearchOur commitment to food safety is not a pointof competition between manufacturers. Weopenly share our food safety research andtechnologies with peers and colleagues.To support Food Safety Research, EBMestablished the Center of Excellence in 2006to partner with the government, academia,trade associations and other industry membersto sponsor cutting edge food safety research.Internal and External Food Safety Auditsand InspectionsOur facilities receive routine internal qualityassurance and food safety assessments. Theseassessments are conducted by an audit team,independent of the location being inspected.Audits focus on:n Critical food safety elementsn Sanitation performancen Company policy adherencen Regulatory complianceEach facility is audited in accordance withthe company’s Comprehensive Food SafetyManagement Programme based on theHACCP Principals and ISO 22000.Our facilities also receive periodicindependent third-party audits of their foodsafety systems.These reviews are performed by aninternationally recognised independentauditing firm, United Registrar of SystemsLimited. Government Food Safety Inspectorsalso provide independent inspection reviewsof our production facilities.Safe FoodOne of EBM’s highest priority CSRprogrammes is the annual Safe FoodConference. Safe Food 2008 - A Consumers’Perspective was held in Karachi, Pakistan,with over 500 delegates from the food industrywere present at the occasion. Speakers fromthe Irish Food Safety Authority, ConsumerProtection Council, Pakistan MedicalAssociation and Karachi University spoke at


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Enhancing Competitiveness & Employability in Korangi Industrial Area the conference.Since its inception in 2002, EBM’s Safe Foodinitiative has been attended by over 4,000people. It has also contributed to thepublication of over 30 papers regarding FoodSafety. This annual conference has motivatedover 20 companies to adopt and be certifiedby the ISO 22000/HACCP standards.

Investing in the Health of the NationWithin the theme of “healthy bodies”, thehealth of people (and in particular those lessfortunate) is a main concern for our nation.As a result, EBM has consistently investedover Rs. 11 million in 2007-08 to thoseinstitutes providing healthcare, particularlyto the disadvantaged.Providing healthcare to those who cannotafford itEBM has proudly supported the Child Healthand Education Foundation (CHAEF) since2004, and has over that time has paid for theconstruction and running costs of a primaryhealthcare facility in one of the moreimpoverished areas of Karachi. EBM hasalso supported CHAEF with fund-raisingefforts to engage other sponsors and ensuretheir long-term sustainability. The clinic sawalmost 40,000 patients in 2007-08, andprovided treatment to cure patients sufferinga wide variety of conditions, includingTuberculosis, Hepatitis, various infections,and family planning. The effect of the clinichas been both on the health of local residents(incidents of common and seasonal diseaseshas been reduced) and on the health awarenessof patients through increased communitycontact and education.Civil Hospital School campaignThe majority of Pakistan’s population dependson the government for its healthcare needs,but unfortunately the magnitude and extentof these programmes are not enough tosupport the large and growing needs of ournation, especially the impoverished areas. Inlight of this, EBM partnered with the CivilHospital Poor Patients’ Aid Society (PPAS)


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Enhancing Competitiveness & Employability in Korangi Industrial Area in 2007-08 to raise awareness and funds from52 schools and 40,000 children to supportthe largest hospital in Sindh to provide freecare for the poor and needy. EBM’sinvestment paid for the much neededequipment and for the schools’ programme,which in turn generated Rs. 400,000 of furtherinvestment for the Hospital.We also continue to support long-term partnerswho believe in providing quality healthcareto those less fortunate. In 2007-08, EBMsupported the Marie Adelaide Leprosy Centre,the Aga Khan Hospital, the Sindh Instituteof Urology and Transplantation, Sahara forLife Hospital, Shaukat Khanum Hospital andmany others.

Investing in the Fitness of the NationA further theme of “healthy bodies” is thatof fitness. An area often overlooked withinPakistan, and an area that is significant forus as a food manufacturer looking to help ourconsumers maintain good health and fitness.EBM has long had an association withinvestment in sports and fitness, from initialsponsorship of sports activities since the 1970sacross a range of sports including football,boxing, cricket, blind cricket, hockey, tennis,golf, swimming, snooker and the paralympics.In 2007-08, EBM has invested over Rs. 8million across these, not just because ofsports’ ability to develop fitness and physicalhealth in those involved, but also becausesports help to instill a life of discipline,dedication, commitment, pride andachievement in its participants and supporters.“Sports encourage us to achieve our goalsand objectives, and fuels our innate desire torise above mediocrity and achieve things forourselves, our communities, and our nation.This is a way of life that goes beyond sportsin anything and everything we do it thus goesbeyond the individual level and has longtermpositive ramifications at a national andinternational level.”Saadia Naveed, Deputy Managing Director,EBM.“Inspire and be inspired” – The 6th


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Enhancing Competitiveness & Employability in Korangi Industrial Area National Blind Cricket TournamentRecognising that the physically disadvantagedhave even more barriers to overcome thanmost in realising good physical fitness, EBMhas proudly supported the PakistanAssociation of the Blind (PAB)’s NationalBlind Cricket Tournament since 2004, bothto stimulate sports and fitness within the blindcommunity, but also as a motivation andinspiration for the sighted community toengage more in sports and fitness activities.In 2007 over 100 participants from an everincreasing number of teams from across allprovinces of Pakistan participated, and Okaradefeated Islamabad by 37 runs in a thrillingcompetition finale. EBM was proud of allparticipants and we recognise the power ofthese athletes to inspire us all to get moreinvolved in sports and fitness activities.Special Olympics World GamesWe proudly hosted a fund-raising gala for thePakistan Special Olympics team, an eventthat raised Rs.10 million to support ourexceptional special Olympians in enteringthe Special Olympics World Summer Gamesin Shangai, China.National Swimming ChampionshipsEBM is an enthusiastic supporter ofswimming for its ability to involve people ofall ages, genders, backgrounds and abilities.Swimming does not require expensiveequipment, just time and water, and can be avital way to develop fitness and good health.By sponsoring many swimming eventsthrough the years, we hope to broaden theimpact and increase the awareness andbenefits of swimming throughout the nation.In 2007-08, EBM sponsored the 47th SindhOpen and Junior Swimming Championship,the largest open swimming event in Pakistan,drawing in over 200 participants from 24schools and clubs.EBM knows that fitness is a key aspect of ahealthy body, and we are proud and passionateabout our involvement in and sponsorship ofsports and fitness activities.

Investing in Our Children’s Education


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Enhancing Competitiveness & Employability in Korangi Industrial Area One of the most pressing needs of our nationis quality education for our children. Illiteracyand poor standards of education are a plagueon our children, and it is impossible to imaginea brighter future for our nation withoutsignificant improvements in education,without “healthy minds”. EBM has alwayshad a passion for education, arising from ourconcern to share in the responsibility for theuplift and development of the people ofPakistan. With our contributions exceedingRs. 9 million in educational activities in2007-08, we continue to invest heavily in thisarea.Adopting Local SchoolsOne of the cornerstones of this investmenthas been (since 2006) our adoption of 5 localschools near our Karachi site, whichpreviously had inadequate and decayingbuildings and infrastructure, and insufficientmaterials to deliver the quality educationthose children needed to realise a brighterfuture. EBM has worked with the PakistanCentre for Philanthropy and the CityDistrict Government of Karachi to investRs.1 million this year, taking the totalinvestment to over Rs. 4 million over the last2 years. EBM has been involved in thecomplete renovation and repairing of theseschools as well as the provision of books andstationary and other equipment to enable theeducation of over 900 pupils. We have alsotaken an active role in School ManagementCommittees to ensure the ongoingdevelopment not just of the facilities, but alsoof the quality of education through teachertraining and other initiatives.Providing education where there was noneEBM is always looking for innovative projectsthat provide services to those that need themmost, but that are also cost-effective andembody quality. The CHAEF combinedhealth-clinic and primary school fits thiscriteria, and EBM has been supporting thisfacility since 2004, providing education tomore than 200 children. The school providesuniforms, books, and access to computersand other services usually reserved for the


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Enhancing Competitiveness & Employability in Korangi Industrial Area schools of the wealthier and more advantagedsectors of society. Now, not only are thesechildren receiving a quality education, butthe cleanliness, hygiene and social behaviourof these children are improving as a result ofthe efforts of the school and its staff.Bringing Leadership to LifeEBM has sponsored the Young Leaders’Conference for 5 years - a 6-day conferencefor around 240 young people in leadershipdevelopment and motivation - and isdetermined to help young people realise theirown potential, so that they in turn can helpPakistan reach for a brighter future.“YLC helped me to develop a lot of confidencein myself, which will help me in my career inmy practical life” - Muneeba Hamdani“YLC has been a life-changing experiencebuilding my leadership ability as the youthof Pakistan. It is a great contribution towardsupholding the brighter future of our nation”– Nida MushtaqEBM is passionate about education, aboutgiving children a chance, about investing inour young people for their future and for abrighter future for our nation. That is whyEBM sponsors schools, leadershipdevelopment, and a whole host of othereducation programmes from schools to jails.

Investing in our peopleEBM believes that an aligned and motivatedworkforce is a prerequisite to achievingambitious business objectives. We exercisecare over the health and safety of ourpeople, and give special focus to personaland career development.Employee AlignmentWhat is good for the company should begood for our people, and it is our aim to alignthe aspirations of our employees with thegoals of the business. EBM strives to shareits success with employees, not only in termsof reward, but also of personal goals andcareer development.In 2006, EBM performed a managementsurvey to engage and align our managers andemployees. The survey was conducted by an


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Enhancing Competitiveness & Employability in Korangi Industrial Area independent organisation from the UnitedKingdom - Investors in People. Thosesurveyed covered a substantial cross-sectionof all our employees, more than one in threeof our workforce.The Investors in People (IIP) recognitionsurvey confirmed high levels of alignmentwhen compared to the Investors in Peoplebenchmark. EBM demonstrated good practiceagainst several key capabilities, includingthe quality of its brand, the culture and theimage of the company, the quality of itsmanagement, and personal empowerment.Our employees appreciate the strength of ourreputation as an employer, and as a dynamicindustry player, and employees liked our wayof working, which is result and output-driven.Hiring the BestHiring the right people is a part of EBM’ssuccess. A robust hiring process helps ensurethat the skills and experiences of our TeamMembers are properly aligned with ourbusiness needs and that we have a talentpipeline for future leadership opportunities.Improving Our Recruiting ProcessOur HR department redesigned therecruitment process in 2007-08. By partneringwith our internal customers such as managers,we were able to develop proactive talentmanagement plans for each of our businessfunctions.Paying a Competitive WageEBM offers its employees one of the bestbenefits packages in the industry. Our benefitsfocus on all aspects of lifestyle changes, goodhealth, disease prevention, and education.These programmes not only ensure ouremployees are properly compensated for theirworkplace contributions, but that they alsosupport the broad-ranged health and wellbeingneeds of our employees.Team Member Training & DevelopmentThe goal of EBM’s Leadership andProfessional Growth initiatives is to createan integrated talent-management process thatidentifies, develops, deploys and retainsleaders within the organisation. Our HRdepartment provides a variety of services and


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Enhancing Competitiveness & Employability in Korangi Industrial Area programmes to help prepare our employeesfor future leadership challenges.

Investing in Best PracticeEBM has always contributed to thedevelopment of the management of bestpractices in Pakistan, both by adopting thelatest management technique and practiceswithin EBM and via encouragingmanagement excellence amongst its peers.Internally, EBM has adopted managementsystems and practices for Total Quality-ISO9001, Food Safety-HACCP & ISO 22000,Environmental Management-ISO 14001,Information Security & Business Continuity-ISO 27001 and People Development-Investorsin People. EBM also runs a company-wideEnterprise Resource Planning software basedon Oracle.Externally, EBM has regularly sponsored andcontributed to the Best Practices Day eventsheld across the country. Here, leadingcorporations have shared their practices andmanagement learnings with the businesscommunity, with an aim to raise the level ofmanagement excellence in the country. Todate, EBM has committed over Rs. 6 millionto the promotion of Management BestPractices in Pakistan.

Investing in the EnvironmentEBM believes that companies must take stepsto manage their impact on the naturalenvironment. As a consequence, we arecommitted to conducting our business in amanner that is sensitive to the environmentalneeds of the communities within which weoperate. We aim to achieve this by upholdingdefined key environmental standards in allof our operations and we actively encourageour business partners to demonstrate similarlevels of commitment.All our locations fully integrate environmentalmanagement into their operational systemsand procedures. The Board reviewsenvironmental performance and our policyannually.OverviewManaging our impacts to produce a more


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Enhancing Competitiveness & Employability in Korangi Industrial Area positive result is good for the environmentand also brings economic benefits to EBM.When reviewing our environmental footprint,it has always been EBM’s policy to focusparticularly on those impacts that have themost effect on the environment and overwhich we have direct control.Our three most significant environmentalimpacts are, in order of magnitude, energyuse, water use and non-hazardous solid wasteproduction. Energy use is by far our mostsignificant impact and we therefore give itthe highest priority.In 2007-08, EBM had undertaken thefollowing initiatives: timely tuning of gasgenerators, reduction in unnecessary lighting,utilisation of energy saving bulbs, installationof inverters at mixers creating high torques,and the insulation of hot water lines.Management SystemsEBM has a comprehensive environmentalmanagement system based on ISO 14001.Environmental impacts have been assessedand an improvement plan based on identifiedareas of priority has been implemented.In addition, EBM has incident, emergencyand contingency plans that are regularlyupdated to meet new conditions andrequirements. We also maintain crisismanagement procedures to provide aneffective response in case of incident oremergency.Customers and SuppliersEBM works closely with our suppliers toensure that our systems meet theirrequirements. EBM briefs and audits allcontractors on key environmental issues tomake sure that we, and they, are managingour environmental impact effectively.Waste and RecyclingEBM is working hard to reduce waste andaspires to achieve zero waste throughinnovation and creative design. There are anumber of points where waste is generateddue to our operations – in each case, we striveto find ways to reduce, reuse and/orrecycle what is created.In our factory, materials, new equipment


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Enhancing Competitiveness & Employability in Korangi Industrial Area and ingredients are delivered to our sites insome form of packaging which is collectedseparately on site and sent away to be recycled.In cases where packaging materials cannotbe recycled they are sent for disposal.As a principle we align our work with thewaste hierarchy: reducing waste creationfirst, then looking for ways to reuse or recyclethe waste material. If this is not possible, wetry to dispose of waste so that we can recoverand use the energy. Landfill is only used asa last resort.

Caring for a Greener FutureEnvironmental DataEnvironmental data has been produced for the EBM production factory in Korangi (Karachi only). Wefocus our measurement and improvement efforts on the areas that have the most environmental andfinancial impact. Given below is our performance in areas of environmental significance:

Consumption of EnergyEBM has switched from consuming power from the grid to utilising its own gas - fired generator. Thisdecision was taken to help the energy shortage being faced by the country and to switch to a moreenvironmentally friendly gas based power source.


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Investing in the Wider CommunityAlthough EBM is determined to focus itsactivities on its core themes to ensureefficiency and effectiveness of its socialinvestments, EBM does not want to restrictits social responsibility activities to just theseareas. We recognise its responsibility as aCaring Corporate Citizen to give back to thecommunity, and as such, have contributedover Rs. 5 million to other causes throughout2007-08 to such worthy organisations as theKarachi Anti-Tuberculosis Society, theCitizen’s Police Liaison Committee and theHelpline Trust.Providing hope to the most destituteSOS Children’s Villages provide orphanedand abandoned children an environment thatis as close as possible to a natural home. Theyprovide a community for the children to findshelter and support in a family atmosphere,so that they can receive quality education andvalues that enable them to becomecontributing members of the society. EBM


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Enhancing Competitiveness & Employability in Korangi Industrial Area was proud to help the Friends of SOSChildren’s Villages in sponsoring a majorfund-raising gala evening in December 2007,which raised Rs. 7.5 million (net of expenses)towards the construction of a new village inJamshoro, Sindh.SOS Children’s Villages and EBM, together,believe that these children have the right tobe loved, cared for and feel safe. We all havea responsibility to give them hope and dignityand EBM was proud to play its part.Investing in Community InfrastructureRealising that the local transport infrastructurewas insufficient for local residents, commerceand industry, EBM has invested Rs. 2.8million over the last three years to constructand improve a new road causeway inconjunction with the Korangi Association ofTrade and Industry. This causeway reduces3 kilometres of travel and saves driversRs. 40 million annually in fuel and wear andtear of vehicles, not including the countlesshours saved from traffic jams, and the businessand society benefit that result from that. In2007-08 EBM invested over Rs. 800,000 inmuch needed repairs and maintenance toensure that this essential facility can continueto be used for the benefit of the people ofKarachi.Commitment to Human RightsEBM is an enthusiastic supporter of the effortsof the Government of Pakistan to support therights and opportunities of disadvantagedgroups as enshrined in external regulationsand our own internal Code of Ethics, and isproud to count a significant proportion ofdisabled people in our workforce. EBMensures that all of its sites are compliant withsuch legislation so that women and disabledworkers can access work and associatedfacilities, and has never been subject to anyaccusations of discrimination. EBM is a vocalopponent of child and forced labour, andchecks that none of its employees are withinthese categories through its application andselection process.EBM passionately believes that we all havea responsibility to the people around us, and


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Enhancing Competitiveness & Employability in Korangi Industrial Area is proud to be involved in a diverse set ofprojects that are all investing in a brighterfuture for those that need it most.

Looking Forward to a Brighter FutureEBM is excited about its role of investing ina brighter future for all of us and our children,and is excited about new ways it can growand improve these investments. EBM iscommitted to year-on-year increases in itssocial and environmental investments.Promising to spend over Rs. 47 million in2008-09, a further increase of over 12% onthis year’s amount, and we are equallydedicated in continuing to increase the impactof this investment.Continuing to refine and focus itsenvironmental and social interventions toincrease their alignment with our strategicobjectives and the particular challenges facedby us as we pursue sustainable development.EBM will keep on working with its variousstakeholders (employees, suppliers, consumergroups, local communities and civil society)to ensure that we are meeting theirexpectations. Also we will seek to act as acatalyst in our industry and more widely inthe nation to further grow our passion andcommitment for social and environmentalsustainability.In particular, EBM is excited about plans tofurther grow its projects and programmes inthe area of food safety, sponsoring the SafeFood Conference for the 7th year, expandingschools work around teaching, encouragingthe production and consumption of safe food.EBM plans to significantly increase itsinvestments in this space from overRs.8 million in 2007-08 to Rs.15 million in2008-09.EBM is also proud to continue with many ofthe strategic partnerships highlighted withinthis report, including CHAEF, Young Leaders’Conference, Best Practices Conference, andBlind Cricket Tournament. EBM believes thatonly with long-term partnerships can we makea strategic and sustainable difference to those


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Enhancing Competitiveness & Employability in Korangi Industrial Area that need it most.EBM is also looking at other ways it canleverage its assets to support the poor anddisadvantaged of our nation. We will continueto explore ways that we can use our Centreof Excellence as more than a research anddevelopment capability for EBM, but also asa facility to enhance the knowledge capitalof Pakistan in food technology and safety.We have already welcomed academics,students and researchers from outside of EBMto use our facilities, and will be exploringfurther opportunities to utilise this resource(and others) for the benefit of Pakistan andits people.EBM has a vision for a brighter future - abrighter future for our children, for those thatare suffering, and for all the people ofPakistan. We believe that it can and shouldplay a part in shaping that brighter future,that’s why we’re investing heavily in all ofthe good causes and projects that are listedin this report.

GRI ReferencesThe Global Reporting Initiative (GRI) Sustainability Reporting Framework is an internationally recognised frameworkfor the good governance and appropriate reporting of an organisations’s approach and interventions in environmentaland social sustainability. In common with all of its business activities, EBM seeks to adhere to the highest availablestandards and benchmarks, and as such as compiled this report in line with the GRI guidelines, version 3.0, at criterialevel A (the most stringent). For more information about the guidelines, please visit www.globalreporting.org. Thetable below outlines EBM’s disclosures against the relevant GRI references, or indicates within which section of thereport the disclosure has been made.


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Case Study Report Engl Bisc 3

Documents

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peek freans biscuits

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