Corporate sector and social responsibility
By Murad Ali Khan
The increasing global trend of corporatisation amid high economic stakes has also given rise to a voice of opposition and dissent against the process. The anti-corporate voices have become more and more vociferous even in developing countries.

The heaviest criticism on the corporatisation phenomenon comes from the civil society activists who without any discrimination, see all the corporations as parasites, sucking consumer finances and even in some cases playing with the health of their consumers at the cost of their lives to pocket huge profits globally.

The speedy growth of corporate sector world over especially in developed countries and now in developing countries no doubt created some unforeseen problems and grievances that are now being catered to. The phenomenon of public-corporate partnership and corporate social responsibility has emerged as a result of the engagement of government and consumers with the corporate sector to resolve these grievances to the satisfaction of all the stakeholders.

In the case of Pakistan as well, where the corporatisation has also taken its roots in the past few years, an anti corporate sentiment has gradually developed. Without touching the two extremes of anti-corporate and pro-corporate approaches, this article is an attempt to draw the two extremes closer to a logical path of dialogue so that from the beginning a culture of mutual trust and confidence comes into play.

Though very small in number, the corporations here have partnered with the government and the civil society in their efforts for the betterment of people. Either it is health sector, education, social welfare, sports or environment one can find the they have been cooperating in establishment of hospitals, schools, free medical camps and some of them even running the tree plantation campaigns.

In this context it wont be wrong to mention here that one of the leading tobacco company recently demonstrated spirit of corporate citisenship by voluntarily withdrawing its advertisements from electronic media.

The step gains significance in a situation where other competitors are still present on the air and tobacco adds continue to flood our screens as part of marketing battles to capture maximum market shares. Despite the fact that stakes were high, leaving a battlefield open to the opponents was a step courageous enough to show corporate responsibility towards the society.

As many of us curse the tobacco ads on television for promoting youth smoking trends, the step was appreciated and welcomed by many. But even then some quarters still looked at it dubiously. Statistics at hand show that number of smokers has been on rise for last many years in Pakistan. Though there have been many contributing factors to this constant rise, tobacco advertisements on television and radio are thought to be one significant factor. Concerned social groups as parents and health activists have long been urging government to impose ban on tobacco advertisement.

Banning tobacco advertisements on electronic media is infect aimed to curtail juvenile smoking. The Punjab government deserves a word of praise in this regard. Punjab chief minister Ch. Pervias Elahi recently sanctioned a law to ban sale of cigarettes to juveniles those under 18 and prohibited smoking in public places. This is step in the right direction and has been welcomed by social quarters. This step taken by the Punjab government must be set as a precedent to follow by other provinces. One hopes that both the provincial and the central government also address the issue of tobacco advertisements on electronic media and impose a complete ban on it.

To our understanding efforts such as the voluntarily withdrawal by a leading tobacco company fall in the purview of social responsibility. With our public sector having meager resources to live up to the expectations of the masses, efforts like these should be appreciated to act as a morale booster for those responsible for initiating them.

Some critics of the corporate sector find it hard even to talk to a corporation but the UN Secretary General Kofi Annan is on record calling for partnerships between business and civil society, including "all relevant social actors who can make a difference."

If a business is managing products, which pose risks, it is all the more important it does so responsibly. Governments, societies and companies must together address the best ways of ensuring responsible management of such products, which millions, balancing pleasure and risk, are likely to go on consuming and expect to buy at quality and fair prices.

As society's expectations of corporate responsibility change, the corporations must change some of the ways they address issues of concern. They must work for wider accountability to society, and engage in constructive dialogue with their stakeholders on the issues surrounding their products.

The hesitation on the part of civil society to talk to them should not alter their commitment to building constructive partnerships for change, to deepen their understanding of what is expected of them, and to define and live responsible behavior. If all parties can listen and engage, there are real opportunities for finding workable solutions.

Today perhaps more than ever before, society expects companies to use their economic strength for broader social goals, and to demonstrate environmental responsibility, support for communities, high standards of ethical behavior, and greater transparency and accountability.

By running their business well, companies help to drive the engine of economic development, which in turn helps to achieve social and environmental development. Accepting corporate social and environmental responsibilities, and contributing in the ways that a business can, makes good business sense. This spirit can be promoted in country with few efforts since the will is there.

HOME