Lakson CSR

8/2/2019 Lakson CSR

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Lakson Tobacco Company

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Dedication

Due to one person we are able to do such a works. He has produce skills in our selves. We have

dedicated all our work to very Intelligent Charming, Educated, And Lime light for student the

One and Best teacher: Mr. Tahir Rizvi.

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Acknowledgment

Up and above everything, we are thankful to ALMIGHTY ALLAH, the most Beneficent and

merciful, and His Holy Prophet (Peace be upon him) Who is forever a true torch of guidance for

whole humanity. We am greatly obliged to “ALLAH” by Whom grace we have been able to

complete this Project Report successfully.

We also offer our thanks to Honorable Sir Mr. Tahir Rizvi for providing us a chance to work in

such area of Industry.

We also offer our thanks to Respect Parents for being supports us in all means financially and

mentally to complete our work.

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Table of Contents

Abstract………………………………………………………………………………………… 04

Brief Introduction of Lakson Group of Companies……………………………………………. 05

Brief History of Lakson Tobacco Company………………………………………………….... 06

What is Corporate Social Responsibility..................................................................................... 07

Social Responsibility of Business……………………………………………………………… 07

Corporate Structure of Lakson Tobacco Company…………………………………………….. 12

Corporate Social Responsibility of Lakson Tobacco Company………………………………... 13

Social reporting…………………………………………………………………………. 13

Youth Smoking Prevention……………………………………………………………... 14

Mobile Doctor…………………………………………………………………………... 15

Learning Resource Centers……………………………………………………………...15

Health and Safety Measurements………………………………………………………. 16

Conclusion……………………………………………………………………………………… 19

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Abstract

As a student of Master in Business Administration (MBA) in course of corporate governance our

respected teacher Sir Tahir Rizvi has assigned a project that we have to learn about the “Social

responsibilities of a business”. To complete this project we have read different newspaper

articles around the world because in Pakistan the concept of corporate governance is not so

matured and it is in developing phase.

For this project we have chosen Lakson Tobacco Company a key competitor in tobacco

industry having a thousands of employees working there; and contributing a major portion in the

GDP of the Pakistan by paying a huge tax on the manufacturing and selling of cigarette. Lakson

tobacco company is working on the mission by providing a quality product and leading a

company through customer satisfaction. Its objectives are not focusing only on making the profit

for the company but they also have a high level of ethical responsibility for its employees, for

society and also for the environment. So, after studying and analyzing the company we find out

that Lakson Tobacco Company is paying a huge attention on the society for social purposes and

also they said that we have a huge responsibility of society and environment.

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Brief Introduction of Lakson Group of Companies

Lakson group of companies is a national base group of companies. It comprises of differentcompanies. There are 29 companies in the Lakson group of companies. Lakson group deals in

garments, leather, cloth, paper, packaging, textile, tobacco industry and many other areas of

business in all over the country.

The board of directors consists on

Mr. Sultan Ali Lakhani

Iqbal Ali Lakhani

Amin Lakhani

Zulfiqar Ali Lakhani.

The chairman of the group is Mr. Sultan Ali Lakhani.

Location:

Registered Office

Lakson square, bldg. # 2, sarwar shaheed road,

karachi - 74200, pakistan

tel: + 9221 569-8000

fax: + 9221 568-3410

Web: www.lakson.com.pk

http://www.lakson.com.pk/




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Brief History of Lakson Tobacco Company

Lakson Tobacco Company is one of the largest tobacco companies in the tobacco industry of

Pakistan. In 1952, Mr., Abdul Samad, formed a cigarette company, named premier tobacco

industries. Miss Fatima Jinnah inaugurated it.

Mr. Abdul Samad was its first chairman.

The premier launched its first product in 1953. In 1957, the famous brand K-2 was launched

which dominated the industry for many years.

In 1958, Mr. Sadar-ud-Din Hashwani purchased the PTI industries but could not handle it due to

lack of experience.

Lakson Tobacco Company was established in 1971 by Mr. Hassan Ali kara Bhai. In September

1971, they launched their first brand Lakson King. In 1983, with collaboration of Ruthman

International, they launched Ruthman NT.

In 1983, Lakhani brothers purchased the main controlling shares of PTI. It was a big merger

indeed. In this way Lakson Premier group was established. In January 1997, by the decision of

Sindh High court, they changed the name as Lakson Tobacco Company.

Now Muhammad Iqbal Ali Lakhani is the chairman of the Lakson tobacco company.

Islamabad Office:

61-A, 9th Floor, Saudi Pak Tower, Blue Area Islamabad

Phone: 051-2800028

Phone: 051-2800031

Fax: 051-2800024

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What is Corporate Social Responsibility?

Corporate social responsibility is the responsibility which is applicable to business and its whole

entity. Corporate social responsibility describes the business to act in social manner. Its depends

on the nature of business to classifying itself that it is on the path of social responsibility or not.

Organizations which providing the Quality of life and problem solving solution are on the path

of social responsibility.

Social Responsibility of Business:

Social responsibility of business is the awareness of business that it have a great impact on

society life. Besides thinking about the profit maximization goals and maximizing shareholder

wealth, every business should have to focus on business.

Every business should have to provide products in market which are environmental friendly. So

for the well being of society, every organization should have a positive effect on society rather

than negative effect.

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1. Responsibility to Consumers:

Consumerism is a set of activities perform by the individual, group and organization to

protect consumer rights

End users and consumers have a great effect on business. Pressure from these groups

promoted many businesses to perform its activities in a social manner.

Responsibility of consumers is that it provides complete information of product and

services to end user as well as firms, government after complete testing of that product.

Evolution of Consumer Movement :

Consumerism movements get its peak during 1920s and 1930s. During depression or

decline stage many consumers blamed that the business communities are jobless and

don‟t stable for a big time.

The Right to Safety :

Consumers have a right to use products easily because the consumers are the end user

of products. To ensure the safety of products, business should have to test them and

provide clear description on product to describe how to use this product.

The Right to Be Informed :

Every consumer and end user have right to get information about product before using

it. Consumer can get information about product from its friend who already uses this

product, from newspaper and from the detailed prescription of the product.

The Right to Choose :

Consumer also have right to select product on its demand and requirement among

different products. Consumer have right to choose one product among others on the

basis of its quality, price, long term usage and warranty of the product.

The Right to Be Response :

Consumers also have a right to give their opinion about product, government policies,

business policies, social community and political environment that affect consumer

buying decision.

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2. Responsibility to Employees:

Employees hold certain expectation from the business. Like consumers , employees

also wants some benefits, rewards, job safety, equal opportunity, proper working

conditions, fair compensation and equal fringe benefits .

Safety in the Workplace :

Every employee demand safety in workplace. Business provides safety in workplace to

employees by giving health insurance, working hours (8 hours) and extra payment for

extra work time.

Equality in the Workplace :

Employees also demand the equality in workplace. Business fulls its demand by giving

the equal income to the employees according to their work hours without any

diversification.

3. Responsibility to the Environment:

Business decisions have a great impact on environment. Business affects the

environment like air pollution, water pollution, land pollution and noise pollution.

Noise pollution:

Noise pollution is caused the heavy machinery and equipment of the business. Noise

pollution affects the community very poorly. So that business which wants to do

business near population should have noise pollution free machinery and equipment.

Water Pollution:

Water pollution is caused by the chemical which was dumping into rivers and sea.Large business waste it‟s chemical into seawater and land which creates a huge number

of diseases. Business should have built an underground wastage of it chemicals to

protect environment.

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Air Pollution:

Air pollution is caused by the carbon monoxide (co) and hydrocarbons which is exhaust

by the business, cars and vehicle in the air. By the control of exhaustion of these gases

business can save the environment.

Land Pollution:

Land pollution is caused by the disposal and dumping of industrial material, strip

mining of minerals and coals and forest fires.

4. Responsibility to Investors :

The main duty of the firm is to manage the funds in such a way that gives good return

to the investors. It is the duty of the manager to look all the factors that directly affect

the investment and also to monitor the project where the investment is spending. Due to

the mismanagement of the funds the investor‟s looses the large sum of money plus the

profit on that investment, result a big disaster for the firm. It is the duty of the firm to

make inform about the all information regarding investment so that the performance

measurement is happened and investor feel happy.

5. Advancing social responsibility:

Most of the firms now are taking their active participation in social responsibilities

because they know the importance of social responsibility and taking bold steps to

ensure that their policies should make a positive impact on society.

Community Support:

Through the world all the business firm provides their full support to ensure that they

design such activities which help and improve their communities. All type of

businesses should actively participate in the community support features such as

building parks for children and families, build schools and donate equipments for

school, and support the students for scholarship programs.

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Self- Regulation:

The businesses should establish such code of conducts for society which will helpful

for them, in this way the business community can fulfill their social responsibility.

The Social Audit:

Some firms carry out in proper way to check their performance of social responsibility

by conducting a social audit. In social audit the firm checks out the short and long-run

help and charity to society. They check out their activities that has a great or valuable

impact on the environment.

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Corporate Structure of Lakson Tobacco Company

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Corporate Social Responsibility of Lakson Tobacco Company

According to them….We stick with this initiative in every step if it is from appropriate

marketing or consumer information to supporting sensible tobacco regulation or it is from

respecting workplace human rights and dipping our environmental impact to contributing to local

communities. We look to work constantly to connect with our stakeholders by balancing their

views and to line up our business decision-making with the sensible collective expectations of a

up to date tobacco company.

We know that Corporate Social Responsibility (CSR) causes picky challenges for a tobacco

company. Tobacco products create real risks to health and bump up key questions about how

best to describe responsible product stewardship. That‟s why we believe the only significant

approach to CSR for our business, is based directly on our products, on the concerns about them

and responding to the sometimes strongly apprehended views of our stakeholders.

We also expect that CSR is included in strategic planning processes of more corporations and

appreciate their businesses incite a social cost which has to be balanced by observing the

interests of all the stakeholders and communities concerned.

Social reporting:

Social reporting is comparatively a new discipline, we can say that it is the procedure of

paying attention and react to stakeholders. We are delighted to develop this process for the

third cycle of reporting here in Pakistan, as we have moved to an issues based dialogue.

Accomplishment of compromise on many issues that encircle our operations, it is proved that

social reporting is an useful method to impartially and forcefully tackle society's requirements

while inserting the idea of appointment into every area of business.

The process provides a structured approach for us to:

Be aware of expectations of our stakeholders.

Permit stakeholders to pay attention to each other.

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Make sure to facilitate these outcomes are set suitable consideration in the company's

decision making.

Show with dealings that we are quick to respond to reasonable stakeholder expectations

and concerns.

We are following the most accurate international standard, AA1000; lay down by the

Institute of Social and Ethical Accountability. Also, we have chosen Bureau Veritas

Quality International as our social and moral examiner to make sure full compliance with

AA1000 and verify the entire reporting process,

Youth Smoking Prevention:

We strongly think that children should not smoke, and smoking is just for adults who know

the risks linked with it. British American Tobacco Group companies run programs and support worldwide to deal with

underage smoking. Lakson Tobacco Company has taken steps on several occasions such as

voluntary pulling out from electronic media, leaving out the use of superstars in marketing

material and entrench a healthy marketing code; the International Marketing Standards (IMS)

because of concern expressed on youth smoking.

We were the primary company in 1999 to initiate a education program and continue to do so.

Our packs and advertising materials have a voluntary message with the legend under-age sale

barred. We have supported the Government to change minimum age limit from 16 to 18 through

changes in tobacco legislation. Education programs offer young people „life skills‟ to face many challenges during teenage, as

well as peer pressure to smoke. These programs are along with the plan that British American

Tobacco Group companies‟ supports to convince youth not to smoke and sponsor it globally. We

are enthusiastic to to build up educational modules for incorporation in the national curriculum

by working with the Ministry of Education and the Ministry of Health, other than we think the

program content is best gone to professionals and its deliverance to instructor or youth leaders.

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Mobile Doctor:

Our committed mobile doctor teams feels proud in providing health facilities in regions

having no medical facilities. We have been operating a mobile doctors program in the areas

where health care facilities are deficient and essential health care needs are the most severe

since the early 1980s. The program has developed over the years and treats almost 7,000 patients monthly. The services

are free medical check-ups and diabetic screening including eye care and general health

instructions in the areas near our plant and the leaf mounting areas having deprived medical

facilities.

In association with LRBT and Merck medical camps have also been arranged, and we carry onpartnering with NGOs in our effort to fulfill patients‟ needs more effectively. We built a state of

the art Rehabilitation Center in Batagram in collaboration with CHAL in the consequences of the

earthquake.

Learning Resource Centres:

The company has set up free Learning Resource Centres (LRCs) in our Leaf Areas in the

Punjab (Gujarat), and the NWFP (Mansehra, Yar Hussein, and Buner) while observing in

mind the need to spend in education and the non-availability of quality institutes,

Besides we are short of separate institutes for women, the LRC was set up to give opportunities

to local women at Adam Zai in the surrounding area of our factory in Akora Khattak. The main

purpose was to provide free of cost IT education to our stakeholder's families. It was also

decided to utilize these centers in the upcoming years for giving vocational training and create

health and hygiene awareness.

Our LRCs are associated with the Skill Development Council which comes under the domain of

Ministry of Labour and Welfare. At present, we contain seven LRCs, at our factories and in the

leaf growing areas. These centers offer up to date IT expertise to the kids of our workforce and to

the members of our society. Until now 4,307 students have graduated from our centers so far.

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The likely benefits of the program are sum up below:

Contribute in the growth of skilled resources in the country.

Assist members to obtain employment.

Provide knowledge regarding technology and its uses.

Access to the internet bridges the information gap.

Giving training and knowledge to women, as there are no separate centers for women in

distant areas.

Provide a common forum to discuss and decide issues.

People with various interests and background enjoys common forum.

We have also joined with The Citizen‟s Foundation in sponsoring two schools, one in

earthquake destroy Bherkund and the other in Nowshera. Additionally to our

participation in providing learning opportunities within our society in the leaf growing

areas of Pakistan.

Health and Safety Measurements:

Almost the whole lot we hold – tobacco, paper, board – is grown-up in the ordinary

atmosphere, so it makes fine economic and environmental sense for us to formulate our

utilization of raw materials is entirely sustainable.

We consider excellent green practice is excellent business practice. Businesses can improve

competence by using the good use of environment and technology, fair products and complete

efficient processes and the finest use of natural resources. We check our complete report against

our target that we set and check the continuous performance against our target.

We try to find out the control and cut our crash via the „3 R‟ rule: Reduce, Recover, and

Recycle. Our programs wrap power management, water, air and top soil protection, reducing thewaste and minimizing the utilization of natural resources. The most important thing that to

ensure the use of water and energy should be reduced in consumption and the impact of CO2 in

the environment should reduced.

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We are very loyal in managing our major business operations in such a manner that has no

impact on the environment and safeguard the health and security of our employees, by using a

practical approach of using cleaner technologies and safe systems of work to ensuring that we

follow all applicable National laws and also to follow the British American Tobacco's

Environment, Health and Safety (EHS) policy.

Our EHS policy make sure that there should be a safe working place for our workers, and also

take such steps to improvements in environment with a key attention on reducing the natural by

taking different steps such as, reducing in the use of capacity of energy, water use, reduction in

the waste material, and prohibited emissions of CO2 in the air. We feel very proud when we say

this that all the waste material which has some effect on environment are waste in such a way

that create no impact on the environment by following the National Environmental Quality

Standards (NEQS) which comes under the Government of Pakistan.

Our industrialized sites where all the process takes place make sure that the standards we follow

come under the following national legislations:

“Pakistan Environmental Protection Act 1997”

“Factories Act 1934 & Provincial Govt. Factories Rules 1978”

“Electricity Rules, 1937”

“Boiler and Pressure Vessels Ordinance 2002”

Lakson Tobacco Company follows the international standard of British American

Tobacco EHS policy.

Additionally, our production criteria certified with ISO 14001 and due to the follow of proper

rules we got an „Evergreen‟ status.

All the standards followed by Lakson Tobacco Company in the field of Environment, Health and

Safety have well established and been familiar at national and international forums. This is the

second time that our company is achieving the annual Environment Excellence Award in the

platform of National Forum for Environment & Health.

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Not only we achieved the national award but also due to our environmental programs the British

American Tobacco Group “EHS Excellence Awards” have been awarded the in the following

sections in 2008 and 2010.

Use of Cleaner Technologies

Water waste management

Efficient use of Energy

Our main objective is to minimize the ratio of accident due to this employees take holidays

which directly affect our manufacturing process, so that to avoid this loss manage our training

session on Environmental Health & Safety programs, and safety communications.

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Conclusion

In conclusion it can be said that now a day‟s social responsibility of any company becomes one

of the most significant factors in corporate business environment. Most companies are investing

their major part of profit for social marketing. The essential part of a company is to present itself

a very socially responsible company among their different competitors to take edge on them.

Lakson Tobacco Company also involves itself in social causes. The company is paying huge

attention in anti-smoking policy for under ages, construction of schools in remote areas where it

is need to build a school and different vocational training programs for women. The basic aim is

to reduce the concept that the company is not only earning a profit but also to ensure that it helps

the citizen through various different programs for the benefit of society.

LTC acts reliably and deferentially towards the people and different societies with major aims to

give up for social and economic development. So that the employees of the company have a

reasons to be proud of the way LTC fulfilled their Corporate Responsibility.

Lakson CSR

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