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     REPORT ON THE GLOBAL COMPACT PAKISTAN:

                       AN OUTLINE FOR NEXT STEPS

                                                    BY

                                         FARRUKH MORIANI




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                                     EXECUTIVE SUMMARY

This report is the outcome of a 10-day assignment given to the author, to suggest operational
frameworks for the Global Compact in Pakistan, highlight opportunities for partnership and to
identify resources that can be mobilized for the Global Compact. The objective of the report is
to present a set of strategic recommendations for the Global Compact Steering Board to
consider and decide upon.

In order to organize the work of the Global Compact in Pakistan, a number of issues and
challenges have to be factored in. These include enhancing the level of awareness and depth of
understanding amongst stakeholders of the issues surrounding the Global Compact; creating
ownership of the principles of the Global Compact amongst stakeholders leading to integration
of the Global Compact principles in their business plans; establishing public-private networks
for action, learning and sharing; mobilization of business, governmental and civil society
resources at the district level to achieve enhanced outreach for the Global Compact to local
communities and SMEs; creating a positive image for the Global Compact in Pakistan by
focusing on the opportunities it creates for increased integration within the global economy;
and ensuring that the Global Compact initiative consciously addresses issues related to gender
and other marginalized segments of society in a way that leads to the achievement of the
Millennium Development Goals.


Proposed Strategy
In view of these challenges and based on the interaction with the stakeholders, a four-pronged
strategic framework is proposed:

a) Development of institutional frameworks and embedding the Global Compact within
   existing partnership platforms/networks
   Most initiatives in Pakistan fritter away not because of lack of good intent or ideas but for
   the inability to institutionalize the work undertaken, resulting in either spurts and starts of
   action or a quiet recession into inactivity—there is thus a need to organize the work of the
   Global Compact on sustainable footing; Institutionalization will ensure that the diversity of
   actions falling within the ambit of the Global Compact and the different stakeholder needs
   are handled in an organized, systematic manner; in addition, because funds have to be
   mobilized and used to carry the Global Compact agenda forward, there is a need to ensure
   that a formal, accountable and transparent framework exists which enables such
   mobilization/utilization. In this respect, the following institutional frameworks are
   proposed:

             -    Global Compact Foundation: this will serve as the main institutional platform
                  which will provide a common platform for action, learning and sharing amongst
                  diverse stakeholders and also enable matching of partners, skills, ideas,
                  proposals and resources could be matched, while giving the necessary gains,
                  opportunities and expertise to all participating stakeholders.
             -    Embedding with existing networks/platforms: this would allow the Global
                  Compact to benefit from established systems of interaction and partnership to
                  promote concrete action, quickly, on the Global Compact principles

b) Employing a bottom up approach to root the Global Compact at local levels




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    Too often initiatives tend to be top-down and based at the Federal levels, whereas the need
    is greater at the local levels, as may be the opportunities. In order to build ownership and to
    address specific gaps at the local level, the following initiatives are proposed:

             -    Global Compact City Initiative: This will provide an umbrella brand for a
                  number of public-private partnerships such as Business Improvement Districts,
                  Education Partnership, Healthy City Network, Cleaner City Campaign and will
                  also enable more targeted approaches for SMEs and local chambers of
                  commerce.
             -    TimeBanks: This could be the prime vehicle for mobilizing and putting in place
                  community engagement, especially amongst youth, to increase awareness of the
                  Global Compact principles. Working as a platform for volunteers, including
                  employee volunteering, the TimeBanks would be formed at local levels to
                  address local needs through sourcing of resources (for e.g. Shell employees
                  volunteering to teach for one hour at a local Government college/school on
                  environment, business, economics etc.)

c) Focus on advocacy, outreach, learning and research
   This is a priority area if the Global Compact is to establish itself and lead to meaningful
   results. Given the diversity of the stakeholders and the many knowledge and awareness
   gaps, various frameworks, instruments and platforms would need to be used, including:

             -    Establishment of Global Compact Chairs at leading universities to carry out
                  Global Compact specific research and develop a body of knowledge
             -    Establishment of Learning Centers at Chambers of Commerce, offices of trade
                  and industry associations, business schools and a strong online presence to offer
                  documents, information, toolkits and guidance to stakeholders
             -    Establish an Institute of Corporate Governance: to act as a central resource
                  for improving corporate governance practices in Pakistan through capacity
                  building, research and advisory services
             -    Carry out research: initially proposed that research be undertaken in following
                  areas:
                        i. Case studies in good corporate governance practices in Pakistan
                       ii. Study on CSR in Pakistan with reference to impact on export industry
                      iii. Cross industry study on employment and remuneration practices
                      iv. Scope for Socially Responsible Investment in Pakistan

d) Development of positive incentives and for strengthening self-regulatory frameworks.
   In order to recognize and reward good practices and to provide incentives for continued
   purposeful action, a number of awards are proposed:

             -    Corporate Citizenship Award
             -    Women Leaders in Business Award
             -    Global Compact Partnership Award
             -    Award for Cause Marketing
             -    Award for Best Media Reporting on Sustainable Development
             -    Pakistan Environmental Reporting Awards
             -    Award for Social Entrepreneurship
             -    Award for Youth Initiative

  Furthermore, the Global Compact would work closely with the Associations and Chambers to
engage in capacity building for strengthening of self-regulation systems.



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Resource Mobilization
Resources required for undertaking these activities would be mobilized through the corporate
sector, donor agencies and through a number of outsourced fund-raising instruments. However,
by leveraging existing resources and tapping into existing networks/platforms as a strategy, an
attempt would be made to minimize focus on fund raising and look for opportunities for
partnership that creates win-win situations without necessary requiring enormous amounts of
funds (the TimeBanks framework is one such example).

A number of potential donors have been identified for various areas of the Global Compact
work and during the interaction with stakeholders, various commitments already secured as
detailed in the main report, including sponsorship of a marketing/advertising campaign for the
Global Compact and its initiatives, media partnerships for dissemination to stakeholders and
general public, sponsorship of some of the awards proposed, agreements in principle for
partnership both by local and international organisations and agreement to initiate advocacy
and outreach through seminars, workshops, conferences etc.

Work Plan for 2004
Based on the above-proposed strategies, a draft work plan has been prepared for 2004 (section
5), that centers around the establishment of a Global Compact Foundation and with an
emphasis on advocacy, outreach and creating partnerships.

Summary of Recommendations

    1. Develop institutional frameworks for the Global Compact by:
          a. Establishing a Global Compact Foundation as the main framework for action
          b. Embedding into existing institutional networks and platforms

    2. Employ a bottom-up approach and localizing Global Compact initiatives through:
          a. Global Compact City Initiative
          b. TimeBanks Initiative
          c. Focus on SMEs
          d. Focus on public-private partnerships that involve and benefit communities

    3. Focus on Advocacy, Outreach, Research and Learning by:
          a. Working closely with stakeholders to raise awareness about Global Compact
              and its principles through seminars, workshops and trainings
          b. Establish Chairs and Fellowships at premier universities
          c. Establish learning centers
          d. Carry out research on relevant topics
          e. Participate in international events to raise country profile and learn from
              international practices
          f. Engage in consistent communication with stakeholders through media including
              advertising, websites, newsletters, articles and supplements

    4. Develop incentives for good practice and assist business and industry in self-
       regulation by:
          a. Instituting various Global Compact awards
          b. Capacity building of associations to strengthen self-regulatory frameworks




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    5. Formalize the commitments made by stakeholders by signing Memorandum of
       Understanding with partners, outlining areas and nature of partnership and thus
       develop and sustain momentum on the Global Compact Pakistan agenda.




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                            SECTION 1:              INTRODUCTION
This report is the outcome of a 10-day assignment given to the author, to suggest operational
frameworks for the Global Compact in Pakistan, highlight opportunities for partnership and to
identify resources that can be mobilized for the Global Compact.

The objective of the report is to present a set of strategic recommendations for the Global
Compact Steering Board to consider and decide upon. These recommendations are based on the
feedback received during interaction with stakeholders, review of approaches adopted by other
Global Compact networks around the world as well as the views of the author himself. The
report also documents a number of commitments made by various stakeholders during this
interaction, to demonstrate the kind of collaborations that are possible to not only improve
levels and nature of corporate social responsibility and public-private partnerships, but do so in
a manner that leads to achievement of the Millennium Development Goals (MDGs) and thus
positively impacts the lives of the citizens.

For a list of organisations with which interaction was made during the 10 days of the
assignment, please see Annexure A.




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                      SECTION 2:                    ISSUES & CHALLENGES
As a member of the global economy, Pakistan is faced with a multitude of socio-economic
challenges as it attempts to integrate more fully with the international business and economic
community. With a renewed focus on enhancing its trade profile, as well as continued
commitment to the structural reforms process which has seen a gradual shifting of
responsibilities to the private sector as the principal engine of economic growth, Pakistan is
aware of the need to raise its economic productivity and efficiency in order to not only enable
it to become a significant player in the international economic arena, but in doing so, create
possibilities for reducing poverty and improving the standards of living for its population.

The UN Global Compact presents opportunities for achieving both these objectives. However,
the adoption and implementation of the Global Compact and its elements raises a number of
issues and requires a concerted, organized approach to lead to desired outcomes. These issues
and challenges include:

        Enhancing the level of awareness and depth of understanding amongst stakeholders of
         the issues surrounding the Global Compact
        Creating ownership of the principles of the Global Compact amongst stakeholders,
         leading to development of purposeful action
        Generating enthusiasm within the business community to provide leadership for the
         Global Compact and convincing the public sector to perform effective support functions
        Establishing public-private networks for action, learning and sharing
        Mobilisation of business, governmental and civil society resources at the district level
         to achieve enhanced outreach for the Global Compact
        Integrating Global Compact principles in public policy development and enforcement,
         leading to improved services and reduction in poverty
        Balancing the need to introduce international standards with an appreciation for the
         absorptive capacity of business community and the socio-economic realities (for e.g. in
         the area of child labor)
        Creating a positive image for the Global Compact in Pakistan by focusing on the
         opportunities it creates for increased integration within the global economy
        Involving the unregulated sector (SMEs in particular) who are major contributors to the
         GDP, in the process of complying with the Global Compact principles
        Ensuring that the Global Compact initiative consciously addresses issues related to
         gender and other marginalized segments of society




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                       SECTION 3:                   PROPOSED STRATEGY

A four-pronged strategy is being proposed, which would address the challenges above in an
organized manner, provide a common platform for action and sharing for a diverse set of
stakeholders and enable a strategic fit of ideas, resources and needs.

These four prongs are:

    e) Development of institutional frameworks and embedding the Global Compact within
       existing partnership platforms/networks
    f) Employing a bottom up approach to root the Global Compact at local levels
    g) Focus on advocacy, outreach, learning and research
    h) Development of positive incentives and for strengthening self-regulatory frameworks.




3.1 INSTITUTIONAL FRAMEWORKS FOR THE GLOBAL COMPACT PAKISTAN
There are three very compelling reasons for developing institutional frameworks for the work
of the Global Compact Pakistan: one, the diversity of actions falling within the ambit of the
Global Compact and the different stakeholder needs mentioned above would require
systematic, organized handling; two, most initiatives in Pakistan fritter away not because of
lack of good intent or ideas but for the inability to institutionalize the work undertaken,
resulting in either spurts and starts of action or a quiet recession into inactivity—there is thus a
need to organize the work of the Global Compact on sustainable footing; thirdly, because funds
have to be mobilized and used to carry the Global Compact agenda forward, there is a need to
ensure that a formal, accountable and transparent framework exists which enables such
mobilization/utilization. In view of these reasons, the following institutional mechanisms are
proposed:


3.1.1. GLOBAL COMPACT PAKISTAN FOUNDATION
It is proposed that a Global Compact Pakistan Foundation (Foundation) be established,
which would be a body corporate registered under the Companies Ordinance 1984 as a non-
profit organisation limited by guarantee, with an independent Board overseeing performance
and a Global Compact Office, which would act as the principal agency for undertaking activity
under the Global Compact Pakistan banner. It may be noted that the Global Compact
Foundation is proposed as the main institutional framework for the Global Compact as it would
bring a host of advantages including providing a neutral, legal entity for stakeholder
engagement and stakeholder accountability on the one hand, and resource mobilization and
shareholder accountability through audited accounts and transparent governance systems on
the other. The UNDP and UNIDO Country Offices have already done some groundwork in terms
of the legal framework for this Foundation, but I would like to add the following features:


Structure
It is proposed that the Foundation be organized along functional lines and then within this
horizontal division, we could have vertical divisions based on the three Global Compact
thematic areas of environment, labor and human rights and other areas such as CSR, Corporate
Governance etc. The suggested structure is presented below:


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                                                     Board of
                                                     Directors

                                   Working                          Working
                                subcommittee                     subcommittee


                                         Global Compact Foundation Office




                                  Administration and
                                       finance


                              Advocacy, Learning &          Partnerships & Projects
                                   Outreach
                                  Research &
                                Communication




Composition of the Board
The Board of the Foundation would be a representative forum for stakeholders and would be
the policy-making body for Global Compact Pakistan. Subject to the provisions of the relevant
law, the present members of the Global Compact Steering Board could be the members of the
Board for the Foundation, with the exception of the SECP, which as a regulator of all
organisations registered under the Companies Ordinance 1984, would not be able to sit on the
Board. Furthermore, as prescribed by the Companies Ordinance 1984, the total number of
Board members cannot exceed 10 and additions to this prescribed number can be made by
seeking permission from SECP. It is therefore proposed that an 11-member Board be
constituted, which may consist of:

    a. Four representative associations of the Corporate sector: from Employers Federation of
       Pakistan, FPCCI, APFTU, International Chambers of Commerce Pakistan, Pakistan Banks
       Association
    b. Three UN agencies (UN Resident Coordinator, UNIDO, ILO)
    c. Two relevant Government ministries, dealing with the corporate sector: Ministry of
       Commerce and Ministry of Investment.
    d. Two members of the civil society: Pakistan Centre for Philanthropy and LUMS.

Through this proposed composition and by involving only associations from the corporate
sector, maximum stakeholder representation will be achieved. To promote gender
mainstreaming in decision-making, it is proposed that at least two members out of the total be
female. This proposed composition also enables the private corporate sector to be the main
driver for the Global Compact as they would be in majority. The Chairperson of the Board
would be elected from amongst the members on a rotational basis or the Board could select a
highly respected and influential individual.




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In keeping with good corporate governance practices, the Board would have four Sub-
committees, one for each functional area, which would consist of the members of the Board of
the proposed Foundation and also the members of the present Steering Board who could not be
accommodated within the Foundation Board. The Sub-Committees will be extremely critical
fora as they would in fact be the ones who would prepare and plan most of the work to be
done, before placing it for decision in the Board. The Sub-committees would also be able to co-
opt any members from outside our current membership, to assist in any particular planning and
development initiative.


Management
The Global Compact Foundation Office would be a small and nimble outfit, rather than a large
bureaucratic set-up. Headed by a person of appropriate expertise and experience, the
Office/Secretariat would initially have only two or three persons and an Administrative
Assistant, recruited to manage and monitor the work in the functional areas. This small
management unit is proposed to be assisted by a team of paid Interns in the areas of Human
Resources, Marketing, Finance and Research, hired with the support of the corporate sector, to
be based initially in Karachi, Lahore and Islamabad.

In order to facilitate the establishment of the Global Compact Office/Secretariat, it is
proposed that the UNDP be allowed to undertake responsibility for staffing and establishing the
Office, following established recruitment procedures. The details of the Internship program,
including Terms of Reference and financing, will be worked out by UNDP in consultation with
potential sponsors in the corporate sector.


Finance
The members of the Board are proposed to be the sponsors for the Foundation. As a body
corporate, the Foundation would operate a Global Compact Fund which could receive
contributions as well as make expenditures in line with the provisions of law as well as the
functions that the Foundation would be mandated to perform. Leveraging the provisions of the
Income Tax Ordinance 2001 with specific reference to sections 26, 27 and 61 which treat
expenditures made towards scientific research, training and charitable organisations
respectively as tax exempt, the Foundation can mobilize funds from within the corporate
sector, keeping a certain percentage (3-5%) of all such finances mobilized, as overhead charges
to finance the operations of the Global Compact Office and selected strategic interventions.
The donor community and other international organisations would also be mobilized to
generate funds for the Foundation. With the approval of the Board, the Foundation would
determine areas in which the moneys in the Global Compact Fund can be utilized, identify
eligibility criteria for organisations who would be able to access the Fund and provide for a
mechanism for tracking of the use of funds provided by the Foundation.


Operations
The Foundation would be a neutral, non-profit organisation and operate as the principal agency
for engaging with the stakeholders to initiate, facilitate, guide and support events, projects,
partnerships, networks, dialogues and research. By organizing itself along functional lines and
within that structure, thematically, the Foundation would be able to mobilize the stakeholders
and provide quality assurance for all activities, information to and from partners and networks
as well as provision of necessary tools. In keeping with the intent to make the Global Compact
an open network, the Foundation would not restrict itself to working with members of the
Foundation alone nor would contribution to the Global Compact Fund be a necessary condition



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for stakeholders to engage with the Foundation or to benefit from the services it provides. The
establishment of the Foundation simply provides an institutionalized framework for fund
raising, action, partnership and networks and will not act as an exclusive club of members.


3.1.2 EMBEDDING GLOBAL COMPACT PAKISTAN IN EXISTING NETWORKS
Integration of activities and partnering with stakeholders serve the dual purpose of not only
closer coordination, but of attaining and implementing a shared vision and plan of action. To
ensure quick stakeholder buy-in and to simplify implementation, the Global Compact Pakistan
would need to make every effort to tap into the vast network of forums, committees, bodies as
well as existing models of action and advocacy and embed the Global Compact agenda within
these frameworks, both at the national and international level. During interaction with the
stakeholders, several such opportunities were evident, some of which are listed below:

    a. The Cleaner Production Program (CPP): This is an initiative funded by the Dutch
       Government and executed by a consortium of National Environmental Consulting and
       Royal Haskoning, that has worked with the industry to develop a model of good
       environmental practices and implementation of cleaner production technologies. The
       CPP has completed 14 demonstration units in a wide array of industries and has buy-in
       from the associations. Furthermore, the CPP has set up a Cleaner Production Institute
       where training of employees of participating companies is carried out. The CPP model
       relies on building capacity within the organisation by setting up Environmental
       Committees and Environmental Cells and also relies on providing support to
       participating companies through a software package. Given the successful completion
       of the Program and the strong focus on capacity building and the adoption of a
       customized software solution to providing consulting support, this presents a model
       that could be easily replicable within the very industries where the 14 demonstration
       units have been set up.
    b. SMEDAs Common Facility Centers: Under the recently concluded agreement with the
       ADB to promote SMEs, nearly 40 Common Facility Centers would be set up across the
       country. These Centers will act as resource centers for SMEs and the Global Compact
       Pakistan can establish its presence their in the form of information on the Global
       Compact Pakistan and its ongoing work and future plans including training and
       awareness events planned for the SME sector, toolkits and guides for SMEs on issues
       such as SA 8000, ISI 14000 and other industry-specific issues such as Worldwide
       Responsible Apparel Program (WRAP) and Good Manufacturing Practices (GMP). Global
       Compact would also provide training to the resource persons at the Center to
       adequately respond to any queries related to the Global Compact and how it can help
       the SMEs in partnership with SMEDA
    c. WEXNET and Women’s Chamber of Commerce & Industry: The Women Exporters
       Network (WEXNET) and the Women’s Chamber are two forums which can be used to
       promote women in business by using their existing platforms such as the WEXNET
       Exhibition and by building on the capacity building initiatives planned by WCCI. By
       working closely with these two agencies and with the large banks, special banking and
       financial products could be launched for businesswomen, with the Global Compact
       Pakistan playing the role of the broker/facilitator
    d. GreenStar Social Marketing Pakistan: This program has been a well documented
       success in the field of family planning. Benefiting from their experience and expertise
       in social marketing as well as their goodwill in the market, Global Compact Pakistan
       could initiate a partnership for improving awareness within the factory workers on
       HIV/AIDS as well as on good family planning and health practices




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    e. Human Resource Managers Forum: This is an informal forum of HR managers in the top
       companies in Pakistan which acts as a learning and sharing platform amongst
       practitioners. By entering into a partnership for advocacy with this forum, the issues
       related to responsible and ethical practices in HR management could be presented
       before a highly relevant audience
    f. Mobilize the Micro-finance industry for social entrepreneurship: The MFI has made
       significant strides in terms of its outreach and impact on the marginalized segments of
       society, especially in the rural areas. In partnership with Khushali Bank and Pakistan
       Poverty Alleviation Fund and its network of NGOs/CBOs it is proposed to use their
       outreach, to promote social entrepreneurship and business models which plow profits
       back into the community where the enterprise is located. The next step would be to
       provide these models to students passing out of the Government’s Vocational Training
       Institutes and technical and financial support provided from the MFIs in setting up the
       business. Assistance would be sought in providing guidance/support on social
       entrepreneurship from the Schwab Foundation (World Economic Forum) and other
       organisations with expertise in this area
    g. Use the vast network of Pakistan Farmers Association and the Agricultural Chambers
       of Commerce, to introduce new, productive and environmentally friendly farming
       technologies
    h. Promoting Public-Private partnerships at local government level: Buy-in to the
       proposed framework of the local governments identifying needs and the private sector
       providing solutions can be ensured through quick demonstration projects. One such
       proposal is to support local governments through the Sindh TMA Nazims Association in
       developing software for use with the new Accounts Code being used by TMA. The Sindh
       IT Board in partnership with the Pakistan Software Houses Association (PASHA) will
       organize a competition to develop the software, with Intel a possible sponsor for the
       prize. In this way, the local governments get free software, students and young
       software developers get exposure and PASHA and Sindh IT Board would have played
       their part in mobilizing this solution.
    i. Leverage the platform provided by the Employers Federation of Pakistan, APFTU and
       other associations to initiate Global Compact activity: The presence of all these
       associations and their commitment to the Global Compact needs to be leveraged by
       initiating a number of activities, such as Workplace Safety reviews, Recruitment
       Diversity programs and Employee Healthcare initiatives. By doing so, members of the
       Board will be demonstrating their commitment and will set the pace for others to
       follow.
    j. Ride on the back of the Government drive to promote IT based solutions: The focus on
       e-Government and provision of various services online, opens up doors for many an
       opportunity in health (telemedicine), education (Smart Schools) and in promoting
       entrepreneurship through online support in documentation, guidance on laws etc. This
       can be especially helpful for SME development, in narrowing the urban-rural digital
       divide and in promoting women entrepreneurs. Global Compact Pakistan can create
       linkages amongst solution providers and the needy constituencies to benefit from the
       facilitating environment on IT provided by the Government




3.2      ROOTING THE GLOBAL COMPACT AT LOCAL LEVELS
Employing a bottom-up approach for the Global Compact will allow communities, industries
and local governments to interact and develop local initiatives that would not only be relevant
to their specific needs but also allow for better monitoring. These initiatives could be




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especially useful for SMEs, local chambers of commerce and allow the corporate sector to work
closely with local communities. As part of this strategy, the following initiatives are proposed:


3.2.1 GLOBAL COMPACT CITY INITIATIVE
In the wake of the devolution program, the District Governments and Town Municipal
Administrations have been saddled with a number of responsibilities, including provision of
basic health, education and municipal services. Keeping in view their limited financial and
technical capacities, there is a need to promote Alternative Service Delivery mechanisms by
encouraging public-private partnerships for co-production, co-delivery or outsourcing of
services. In order to provide a platform for public-private partnerships, it is proposed to launch
a Global Compact City Initiative, which would make the City or District Government the focal
area for the Global Compact agenda. This would enable the Global Compact agenda to be
taken to the grassroots level, as well as allow for engagement with the SMEs and the local
chambers of commerce at the District level and thus provide for a mechanism that is bottom-
up rather than top-down. The Global Compact City model would be replicable in all districts of
Pakistan once it has been tested out and would entail the Global Compact Pakistan entering
into an agreement with four of the main District Governments in Pakistan which are also the
hub of trade and industrial activities (Karachi, Lahore, Faisalabad, Sialkot) as well as Capital
Development Authority Islamabad to work together in areas including, but not limited to, the
following:

             a. Business Improvement Districts: Whereby businesses in an area pool resources
                to improve civic facilities and infrastructure. The model would follow the basic
                New York Times Square model of mobilizing the business sector to contribute
                towards the uplift of a specific area, although the mode of operation could
                take a number of forms, including Sponsor-a-Neighborhood (whereby individual
                or groups of private sector companies sponsor various activities in a specific
                neighborhood), Sponsor-a-Street (whereby individual or groups of private sector
                organisations sponsor the uplift of a particular street)
             b. Healthy City Network: which would aim to launch health awareness and
                promotion programs in conjunction with WHO and the business community, for
                e.g. by working with schools and factories to promote good health practices. In
                addition, under this initiative, the private sector could help operationalise
                closed basic health units to increase coverage of services and in installing
                better management through formation of Health Boards
             c. Cleaner City Campaign: This would seek to involve private sector in reducing
                air emission, traffic management and solid waste management by working with
                the UN agencies, other donors and private sector organisations with relevant
                expertise. One example of this is the Program for Economic Revival of Karachi
                (PERK) which is a public-private partnership that has introduced Green Bus
                fleet as a way of reducing environmental pollution and at the same time, partly
                fill the transport gap
             d. Building Capacity of the Enterprise & Investment Promotion Departments of
                the District Governments: through training on various aspects of the Global
                Compact and in developing a customer services approach so that this
                department can act as a facilitating, rather than a hindering agent for business
                in the District Government
             e. Education Partnership: This would seek to engage the private sector to assist
                the District Governments in reviving closed schools, specially girls schools,
                through mobilizing School Management Committees, sharing of teaching




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                  methods and materials between private and government schools and in using
                  Information Technology in Government schools



3.2.2 TIMEBANKS PAKISTAN
The concept of TimeBanks originated in the US in the early 1980s when civil rights lawyer Edgar
Cohn piloted a TimeDollar scheme. There are now more than 250 TimeBanks in the US and
more than 120 in the UK, with the concept also being very popular in Japan. The concept is
very simple and thus easily replicable: individuals with experience, expertise and specific skills
volunteer (or ‘deposit’) their time to assist other individuals or organisations who are in need
of those skills but lack the financial resources to acquire them. This not only builds social
capital, but also allows for a transfer of knowledge from the private sector to the public sector
or even with those sectors. Although there are many variations to the TimeBank model, it is
proposed that the following model be adopted for Pakistan:

TimeBanks Pakistan would either operate under the Global Compact Foundation which
would provide seed funding, or be established as an independent charitable organisation in
case the Global Compact Foundation proposal is not accepted or is delayed. It would facilitate
the establishment of various TimeBanks across the country, providing guidance, support and
the tools for setting up and continuing TimeBanks in communities. TimeBanks Pakistan would
either employ or identify volunteer TimeBrokers in various cities, who would identify specific
community needs and with the support of TimeBanks Pakistan, develop a model for a TimeBank
in that community. An example of how a TimeBank would operate is that employees in MNCs
with an academic background in Economics volunteer to teach Economics once a month in a
Government school or College as a Guest lecturer; in this way, the Government College or
school benefits by having access to a technical resource they would otherwise not be able to
afford and thus improving the quality of teaching, the employee has the satisfaction of being
involved with the community and the MNC for whom the employee works fulfills its
commitment to working with the community. Moreover, for each hour that the employee who
volunteers or ‘deposits’ his or her time, the MNC would provide some other contribution in
kind, such as providing textbooks to the library of the College. The community is thus able to
‘withdraw’ or benefit from this networking. There is a vast variety of activities that TimeBanks
could engage in, but to kick-start the initiative, employee volunteering would be focused on by
mobilizing the corporate sector through the members of the Global Compact Steering Board to
encourage employees in their member organisations to deposit their time for teaching or
mentoring of students in Government schools and colleges and thus bridging a quality and
social gap. The modes of engagement and the complexities of activities that could be
undertaken by the TimeBanks could be escalated as the model is tested and tried out.
Assistance would be sought from TimeBank UK, to help set up TimeBanks Pakistan by drawing
on their existing models, toolkits, software and monitoring systems.




3.3      FOCUS ON ADVOCACY, OUTREACH, LEARNING AND RESEARCH
The need for advocacy of the Global Compact principles and for creating frameworks for
continued learning and outreach with the stakeholders is self-evident. Awareness of the Global
Compact and its principles as well as of CSR issues is limited at best and often does not
permeate the top echelons of management within the corporate sector. Similarly, there is not
enough body of knowledge on issues elated to the Global Compact and thus the debate is not as
informed as it could be. The priority of the Global Compact Foundation, once established,



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ought therefore to be to focus on advocacy/research and marketing/outreach. In order to raise
the level of understanding and awareness of the concepts, principles and elements of the
Global Compact and to generate debate and dialogue on these issues, it is necessary to
undertake substantial and consistent investments in the areas of advocacy and outreach. This
would take the shape of organizing, leading, supporting and facilitating seminars, workshops,
roadshows and presentations to the target audiences as well as reaching out to them through
various media. It is also important to make your presence felt in international events/fora as
this would ensure that learning and sharing of ideas and actions continues at an international
level, and that the Global Compact Pakistan can benefit from any opportunities that may arise
for international partnerships and collaborations.

In addition, mindful of the need to create a positive, credible image for Global Compact in
Pakistan, a full fledged marketing and advertising campaign, developed and run in conjunction
with the business community in general and with the Pakistan Advertising Association, All
Pakistan Newspapers Society and Marketing Association of Pakistan, would be necessary to
highlight the opportunities presented by the Global Compact.

These advocacy and marketing initiatives would have two important features: one, they would
make a concerted effort to reach out to those segments of the stakeholder universe that have
been least initiated to the concepts and principles of the Global Compact but who are
significant contributors towards the economic activity in general and to exports in particular
(SMEs, women owned businesses and female employees)—in short the focus of the Global
Compact in Pakistan would be to zero-in on segments where the need for ensuring labor,
environmental and governance standards is greatest; secondly, the marketing and advocacy
efforts would take the Global Compact agenda down to the district level, to lay the
foundations for a more sustainable level of commitment to the principles of Global Compact
and create a franchise of Global Compact activities at the grass roots level. In doing so, a
platform for stakeholder engagement would be established which would have both coverage
and depth in representation and would thus enrich the debate on and the practice of Global
Compact principles. A draft outline of a workplan for advocacy has been drafted and placed at
Section 5 based on the commitment and interest expressed by stakeholders.

Specifically, the following institutional frameworks are proposed:


3.3.1 ESTABLISHMENT OF CHAIRS IN LEADING UNIVERSITIES

By establishing a Chair in a top local university, an institutional arrangement would be made
for carrying out research in various aspects of the Global Compact, including Corporate Social
Responsibility and role of business in sustainable development. It is proposed that one Chair be
established in either LUMS or IBA Karachi. The Chair would be funded through an endowment
fund mobilized through the corporate sector and the Chair would be filled through a process of
competitive recruitment. Besides conducting research, the Chair would be expected to work
with the university to develop curriculum relating to Corporate Social Responsibility and
sustainable development.


3.3.3 ESTABLISHMENT OF AN INSTITUTE OF CORPORATE GOVERNANCE
This Institute would serve as a resource for learning, research and advocacy on various aspects
of corporate governance. The SECP in conjunction with the corporate sector has already done a
lot of work in detailing the way this Institute would be structured and how it would function.
However, it is suggested that the Institute be affiliated with international organisations such as



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the Institute of Business Ethics, the Institute of Directors and some of the research centres
pinpointed in (4) above. In fact, the Institute could benefit from the output of the proposed
Chairs and Fellowships and use it to promote good corporate governance within the country.


3.3.4 ESTABLISHING LEARNING CENTRES
The development of learning and sharing networks is essential to the sustained and systematic
outreach of the Global Compact in Pakistan. It is important that repositories of knowledge,
experience and experience be developed in both the physical and virtual forms, to enable the
maximum penetration within the target segments and that these resources assist in the
development of action plans by stakeholders. Therefore, it is proposed to create e-Learning
Platforms as a long-term vehicle for promoting Global Compact principles by way of inclusion
of Corporate Governance, Corporate Social Responsibilities, Ethical Trading etc in the
curriculum and thus groom the future leaders on these important issues. For this, partnerships
would need to materialize with IBA, LUMS and SZABIST and with premier Training institutions
and forums such as ICAP, ICMA, PIM, PAS, NIPAs, NIBAF, PBC etc. The suggestion to include
Training institutions such as NIPA and Pakistan Administrative Staff College (PAS) which serve
primarily the civil servants is being made to ensure that their understanding and perspectives
on Global Compact and allied issues improves, for this could prove decisive in terms of
implementation. The proposed e-Learning Platforms would offer guidelines, advice, distance
Training opportunities, materials for reference, templates for use, links with local and
international agencies, relevant rules, regulations, standards governing different spheres of
economic activity etc in multiple languages and through user-friendly interfaces. Specific gaps
of the SMEs and promotion of women entrepreneurship will remain a focus. Every effort would
be made to integrate such initiatives with existing resource centers rather than create new
ones. An example of this arrangement is the Common Facility Center which SMEDA is
establishing and in which the Global Compact can participate.


3.3.5 RESEARCH
It is imperative that the work of the Global Compact Pakistan is informed and guided by
evidence so that more targeted interventions can be developed and more focused policy
dialogues are organized. Three areas of immediate interest that emerged from stakeholder
consultation for carrying out research and studies are identified below:

    1. Case Studies on Good Practices in Corporate Governance & CSR in Pakistan
       The objective of these case studies would be to document the success stories in
       Pakistan in areas of good corporate governance and CSR practices. These case studies
       would form part of a series of such studies aimed at highlighting the positive aspects of
       Pakistani businesses and would then be used as course material at the leading business
       schools in Pakistan such as LUMS, IBA and SZABIST.

         It is proposed that the first two studies be carried out for the State Bank of Pakistan
         and the Qarshi Foundation. These are choices made after considerable and careful
         deliberation. The State Bank study is proposed because in many ways it epitomizes the
         many benefits that could accrue to any organisation that promotes and uses multi-
         stakeholder forums and involves the private sector in policy making at various levels,
         starting from the Board of Directors itself. The State Bank also presents an excellent
         model for change management and the way in which it has proactively engaged in CSR
         activities (setting up endowments, affirmative action on women’s recruitment etc.)




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         Similarly, the Qarshi Foundation presents a prime example of a committed and
         successful indigenous CSR practice. With clear workplans and frameworks for action in
         key areas related to the core business activities, the Qarshi Foundation is an intriguing
         model for study on best practice in CSR in Pakistan and carries many a lesson for other
         Pakistani as well as multinational companies on the way it has organized itself and the
         manner in which it has replicated its models.

         It is proposed to fund these studies through DfID, which has already shown its
         willingness to fund the research.

    2. Cross Sectional Study on Employment and Remuneration Practices
       Employment practices tend to be a function of the nature of industry as well as the
       location. Although data is available on labor force participation in different sectors of
       the economy, there is little qualitative information on the differences in employment
       and remuneration practices, in terms of recruitment processes and preferences, wage
       differentials across industry across same nature or category of jobs, differentials in
       remuneration qualified by gender, location, age and work experience, training and
       academic background. This study would provide a cross sectional analysis of these
       practices across a select basked of industries, but preferably including two services
       sector industries such as the financial and banking industries and two manufacturing
       sectors, such as the fan industry and the automobile industry, with a sample size of at
       least 50 (25 from each sector) This research could be very useful in shaping the kind of
       interventions that Global Compact Pakistan could develop in the HR sector.

         It is proposed that NORAD be approached for funding this research.

    3. Study on CSR in Pakistan
       The SECP has already done some basic ground work on a proposal to carry out research
       on the existing state of CSR in Pakistan. The duration of the study will be 4 months and
       will require outsourcing the task to an external consultant. The proposed study will focus
       on the following areas:

          Ascertain the need for CSR in Pakistan;
          Identify CSR approaches being presently used;
          Factors driving social responsibility, like reputation enhancement, brand loyalty, etc,
           and how policy or regulatory measures would create a supportive environment for
           CSR;
          Assessment of potential threats and business opportunities;
          Barriers to implementation of CSR practices;
          Strategies for effective implementation of CSR practices; and
          Output targets that companies can set to undertake and report on socially
           responsible practices;
          Ascertain the basis and methodology to formulate the CSR Index.

         Scope of Study
         i. Selection of a well-defined sample of 100 companies (listed, multinationals, and
            public-sector enterprises). The sample would be balanced in terms of number and
            size (in terms of total assets and/or number of employees) of companies from a
            particular sector and sub-sector. The proposed broad sectors are: Textile (spinning,
            weaving, garment and composite), tobacco, fuel and energy, chemical and fertilizer,
            engineering, financial institutions (commercial banks, NBFCs), Insurance companies.



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               The list of the firms would be finalized with mutual consultation. Survey of the
               companies – this would be done on the basis of a questionnaire either through visits
               or correspondence. Major issues to be covered in the questionnaire would be firm’s
               responsibility towards its employees (fair compensation, recognition for good
               performance, healthy working conditions, safety and security considerations, etc),
               responsibility towards shareholders (corporate goals, profit and wealth maximization,
               protection of shareholders’ rights), suppliers and creditors (honoring contracts and
               repaying loans), government (taxes), community (charity schools, health, protection
               of environment) etc. The survey questionnaire will also focus on the barriers to
               adopting CSR approaches by different institutions;
         ii.   Based on the information collected, an assessment would be made on need of CSR in
               the country, the existing CSR approaches, and the barriers to its adoption. The study
               would also determine the basis and the formulation strategy to develop a CSR Index.

         It is proposed to fund this study through UNDP.

      4. Study on Scope for Socially Responsible Investments in Pakistan
         The Socially Responsible Investment assets globally are now in the tune of $2.7 trillion.
         Although less known in Asia, SRI is beginning to take off especially in Japan and Hong
         Kong. In Japan, SRI has grown from zero to eleven SRI fund options, totaling almost
         US£1 billion, in less than three years - clearly demonstrating local market potential.
         The total value of SRI related funds under management in Asia is estimated to exceed
         US$2.5bn. The majority of these funds have been introduced by international players,
         however, and domestic SRI funds in Asia continue to lag behind - for now. Is Pakistan
         ready for SRI? Initial observations suggest that the country might be ready for SRI: the
         retail investment market in India is already significant and corporate and public
         attention to Corporate Social Responsibility (CSR) is growing. The Karachi Stock
         Exchange is one of the most profitable bourses around; add to this the ample liquidity
         in the market which could absorb new products such as Ethical Funds and the interest
         towards Islamic Funds and shariah-compliant financial products and the stage seems set
         for SRI. This study will help assess the scope for SRI and Ethical funds with a view to
         assessing whether, and how, SRI can be used as a means of promoting sustainable and
         equitable development in Pakistan.

         Funding for this study could be mobilized from the World Bank.



3.4      DEVELOPMENT OF POSITIVE INCENTIVES AND FOR STRENGTHENING SELF-
         REGULATORY FRAMEWORKS
To sustain the Global Compact Pakistan activities, it is critical to develop an incentive system
for rewarding good performance in relation to the Global Compact principles as well as to
motivate others to progress in this respect. In addition, the Global Compact would have to
work closely with industry and trade associations to strengthen their self-regulatory
mechanisms. This may take the form of capacity building initiatives, development of codes of
conduct, toolkits etc. which can be used by the industry to demonstrate commitment to the
Global Compact principles.


3.4.1 INSTITUTION OF GLOBAL COMPACT PAKISTAN AWARDS




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It is proposed that a number of awards be instituted to recognize good corporate behavior and
motivate others to engage in the Global Compact agenda. These awards would be instituted in
the areas mentioned below and would be presented from existing, recognized platforms and
forums such as the KSE Top Companies Award, the Marketing Association of Pakistan Annual
Excellence Awards etc.:

        Corporate Citizenship Award
         Based on the model followed by the US Centre for Corporate Citizenship Annual
         Awards, this award showcase businesses and chambers of commerce that have
         demonstrated ethical leadership and corporate stewardship, made a difference in their
         communities and contributed to the advancement of important economic and social
         goals. It is proposed to present the award from the FPCCI platform or KSE Top
         Performers. Please see Annexure B for proposed selection criteria

        Women Leaders in Business Award
         This award aims at promoting women business leadership and will recognize the
         achievements of businesswomen in terms of innovation, impact in their field and
         success achieved. It is proposed to present the award in conjunction with the Women’s
         Chamber of Commerce & Industry and the Gender Equity Project of DfID and British
         Council. The award would carry a fellowship for a visit to the UK and study/exposure
         visits to institutions promoting women in business.

        Global Compact Pakistan Partnership Awards
         This award would follow the framework established for the World Business Summit
         Awards and are proposed to be presented in conjunction with the International
         Chamber of Commerce Pakistan chapter (the ICC is the sponsor for the World Business
         Summit Awards) at the proposed Sustainable Development Pakistan Annual conference.
         The award would seek to demonstrate how multi-stakeholder partnerships could
         contribute effectively to sustainable development in support of the key dimensions:
         economic, social and environmental. The Awards will highlight concrete actions taken
         by business in partnership with other stakeholders, and raise awareness of these
         achievements. Recognized partnerships will demonstrate that cooperation and sound
         management toward sustainable development can strengthen corporate performance,
         improve social and environmental conditions, enhance relations with local
         communities, and create competitive advantages in today’s markets, globally and
         locally. Please see Annexure C for selection criteria

        Award for Best Reporting on Sustainable Development Issues
         In order to promote quality journalism in the area of sustainable development, it is
         proposed to present this award jointly with the All Pakistan Newspapers Society at
         their annual ceremony.

        Award for Cause Marketing
         Cause Marketing is beginning to assume significance in Pakistan and there is likely to be
         increased awareness and focus on this as the Global Compact Pakistan rolls out its
         activities. This award will be presented in partnership with the Marketing Association
         of Pakistan at their Annual Excellence in Marketing event.

        Award for Social Entrepreneurship
         To promote social enterprise, this award is proposed to be instituted and presented in
         partnership with either the Khushali Bank or the Pakistan Poverty Alleviation Fund and




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         will recognize the most innovative effort to develop and implement a model that
         involves and benefits the community, especially women.

        Youth Initiative Awards
         It is proposed to present this award in collaboration with the Duke of Edinburgh Award.
         This award will recognize the work of youth in the area of self-development and in
         working in the communities to create networks of learning and action. The selection
         criteria will be the same as used for the Duke of Edinburgh Award

        Pakistan Environmental Reporting Awards
         These awards have already been launched by the Association of Chartered Certified
         Accountants (ACCA) and WWF in 2002. However, the Global Compact Pakistan can
         become a co-sponsor or promoter of these awards


3.4.2 ROLE OF REGULATION
It might seem odd to talk about the role of regulation within the context of the Global
Compact, given that the Global Compact is a voluntary association of organisations, but the
fact is that the Global Compact does envisage compliance of the business community to various
standards of quality and efficiency, both local and international. These require strong
regulatory frameworks and call upon the regulators (principally the SECP but including the SBP,
the EPAs, Labor Ministries and various Provincial and Local Government agencies) to develop
the capacity to enforce laws, rules and regulations effectively. However, under the Global
Compact strategy for action, the focus would be on promoting self-regulation by the industry so
as to minimize opportunities for misuse of power by the bureaucratic machinery. Through a
process of advocacy, establishment of learning and capacity building networks, integration
within existing policy making and implementation mechanisms and achieving cross sectoral
linkages, an attempt would be made to arrive at a framework that is not solely reliant on
punitive action by government agencies, but one which advocates and facilitates self-
regulation.

That said, there may be room for the principal regulators such as the SECP, the SBP, EPAs and
the Labor Ministry and Departments to put in place some mechanisms for facilitating
compliance, outside of the purview of mandatory, legal regimes: These could be:

    a. Amendments in the Code of Corporate Governance issued by the SECP and SBP to
       include a clause that encourages (as opposed to making it a binding stipulation) the
       corporate sector to engage in corporate social responsibility activities and to highlight
       these in the annual reports. The corporate sector appeared to be wary of the SECP or
       SBP going beyond this ‘neutral’ amendment and in fact the SBP was inclined to think
       that the same signal for improving performance on the CSR front could be given
       through policy statements. However, one feels that inclusion in the Code of Corporate
       Governance would be a stronger signal than a policy statement.
    b. The Global Compact Pakistan establishing a forum for dialogue between the EPAs and
       the industry to achieve consensus on the implementation of the National Environmental
       Quality Standards (NEQS). At the moment, there is precious little interaction between
       the two resulting in a stalemate over the NEQS (please also see section on Advocacy for
       more on this).
    c. Promoting the SA8000 certification process amongst the export sector. The role of
       Small & Medium Enterprise Development Agency (SMEDA) is critical in this respect and
       the Global Compact Pakistan will partner them and other organisations such as the
       Pakistan Institute of Quality Control and Sustainability International (SAI) to increase



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       the number of companies who have undergone SA 8000 certification, by focusing on the
       Associations of the export sector, who will be asked to also support the SMEs in
       certification as the latter would not be able to undertake the process on their own
    d. Adopting the Global Reporting Initiative (GRI) framework for environmental reporting.
       The GRI provides an international benchmark for reporting on environmental issues and
       is thus a useful way of achieving standardization. Given the high cost of adopting the
       GRI framework—the cost is in the range of $600,000—it is proposed that the
       Associations be mobilized to pool in resources to adopt the framework for their
       members, rather than individual companies doing so. Moreover, since the GRI is not a
       mandatory framework and is not a certification process—unlike the SA 8000 which is
       increasingly being used as a screening tool by international buyers—it would make
       sense for the GRI to be adopted first in industries such as the extractive industries,
       whose nature of business has substantial impact on the environment. In this respect,
       the Oil & Gas Regulatory Authority could be involved, along with the Oil Companies
       Advisory Committee (OCAC)




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                     SECTION 4:                RESOURCE MOBILISATION
All of the activities outlined above, obviously would require mobilization of funds. Since this is
a UN initiative, the general perception is that the members of the UN system would be the
starting point for sourcing funds. However, the vast scope of work under the Global Compact
Pakistan banner would require the adoption of a multi-pronged strategy to mobilize funds and
no reliance can be made on a single source. These funds can be mobilized in three ways:

    a. Special fund raising events and activities
       This could include
            periodic fund raising dinners attended by various UN Ambassadors of Goodwill
               and by other dignitaries
            co-branding initiatives with local organisations to donate a percentage of their
               earnings per unit sold to the Global Compact Foundation to undertake specific
               co-branded activities (for example, a packaged milk manufacturing company
               may donate 10% of the price per pack which could be used to finance a co-
               branded schools nutrition program)
            partnering with banks to promote and encourage tax deductible donations to
               the Global Compact Foundation by their credit card holders
            special fund raising events like music concerts that can be organized in
               partnership with event management firms

    b. Sourcing from donor agencies
       Besides the UN system itself, there are a number of donor funded programs, from
       which the Global Compact Pakistan could solicit support. From the interaction that I
       have had with them over these 10 days and also based on some research, the following
       potential sources of funds emerged:

                               Donor                                    AreaS of Interest
         DfID                                                Research on Corporate Governance
                                                             Development of Case Studies from a CSR
                                                              perspective
         NORAD                                               Support for CSR and Global Compact related
                                                              advocacy
                                                             Support     for    establishing    Chair    for
                                                              Sustainable Development and/or linkages
                                                              with Universities in Oslo for joint research
         USAID                                               Support for advocacy and outreach to the
                                                              civil society
                                                             Support for capacity building of civil society
         ADB                                                 Support for advocacy, outreach and
                                                              capacity building of the SMEs
                                                             Support for creating platforms for action
                                                              within the civil society
         British Council                                     Support for facilitating linkages between UK
                                                              institutions such as think tanks, universities
                                                              and research centre
                                                             Support for gender empowerment through
                                                              the Gender Equity Project
         Aga Khan Foundation                                 Support for advocacy, outreach and
                                                              capacity building of civil society
         Asia Foundation                                     Support for creating stakeholder policy
                                                              dialogue forums
         Global Corporate Governance Forum (World Bank)      Disseminating best practice
                                                             Stakeholder capacity building




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    c. Sourcing from the corporate sector
       The private sector could be mobilized to contribute to the Global Compact Pakistan
       initiative in three basic ways: by seeking donations to the Global Compact Fund
       leveraging the provisions of the Income Tax Ordinance 2001; by soliciting contributions
       in kind (for example, donation of computers for a Global Compact initiated project);
       and by mobilizing funds from the various national and international Trusts and
       Foundations and non-profit organisations formed by the corporate sector by partnering
       with them on specific activities. Obviously, the paucity of time for interaction with
       stakeholders, coupled with the non-existence of a mechanism for soliciting,
       maintaining and utilizing funds meant that it was not possible to actually raise funds;
       this was also not part of the TORs for this assignment. However, sufficient interest was
       demonstrated by the corporate sector, both local and international to provide
       resources to the Global Compact. This can be gauged from the commitments—firm or in
       principle—that have been identified in the section on Stakeholder Commitments.

    d. Stakeholder Commitments
       The process of stakeholder consultation over 10 days brought about agreements of
       varying degrees for partnership in various ways. These are identified below:

ORGANISATION                               Activity                             Nature of commitment
                       Advocacy and Outreach: Space donated for a
Ecommerce Gateway        Global Compact Pakistan Pavilion in the                            Firm
                         International Trade & Industrial Fair 2004, Jan 26-
                         28 Karachi, ITCN Asia 2004 in August and Health
                         Asia 2004 in April
                        (total value of up to $ 64,800)
                       Speakers slot available to the Global Compact                       Firm
                         Pakistan at the seminars being arranged at the ITIF
                         2004, ITCN Asia & Health Asia
                       ITIF 2004: To encourage participation in the fair,
                         especially    by     SMEs   and    businesswomen,                  Firm
                         Ecommerce Gateway has allowed Global Compact
                         Pakistan to offer stalls within its Pavilion to its
                         partners at discount of up to 45% of listed rates
                         ($2700)
                       Printing of the Global Compact logo and publishing       Firm, subject to the material
                         of detailed information on the Global Compact in      reaching Ecommerce Gateway by
                         the 2004 Yellow Pages directory                                  January 15
                       Printing of the Global Compact logo and publishing
                         of detailed information on the Global Compact in
                         the 2004 Muslim Business Industrial Guide
                       Agreement to organize on an annual basis and                        Firm
                         promote as a co-brand, a regional Sustainable
                         Development Fair, which would seek to serve as a
                         showcase for sustainable development and CSR
                         activities in Asia. Global Compact Pakistan would
                         not provide funds for the event and would only
                         offer coordination and marketing support
                       Provision of free advertorial content in Yellow
                         Pages and other publications to women                              Firm
                         entrepreneurs under the Global Compact Pakistan
                         banner
                        Sponsorship of a conference on ‘Role of Media in
Jang Group of             Promoting Good Corporate Governance’ or a topic                   Firm
Companies                 along similar lines
                        Special supplement in News and Jang to mark the
                          launch of the Global Compact Pakistan                             Firm
                        Regular coverage of Global Compact Pakistan




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                           activities in all the print media that the Jang                      Firm
                           Group owns, as well as on Geo TV and on FM 101
                           radio channel
                          Developing a Global Compact Update column in
                           the News to provide latest information on the                        Firm
                           Global Compact
                          Special programming on Geo TV by the name of
                           Global Compact Hour                                  In principle, details to be worked out
                          Special programming on FM101 radio channel to
                           reach out to youth and promote youth learning        In principle, details to be worked out
                           activities on environment, human rights etc and
                           for promotion of social entrepreneurship and
                           TimeBanks
                          Development of a TV documentary series on good
                           practice on the corporate governance and CSR         In principle, details to be worked out
                           front in Pakistan
                          Organisation of special fund raising events for
                           Global Compact                                                       Firm
                          Support for advocacy and outreach on Global
State Bank of              Compact from a banking perspectives, starting                        Firm
Pakistan and               with organisation of a conference on ‘Responsible
Pakistan Banks             Banking’
Association               Support for the idea of TimeBanks by encouraging
                           employee volunteerism                                             In principle
                          Agreement to participate in development of a
                           case study on SBP from a corporate governance
                           and CSR perspective                                                 Firm
Pharma Bureau             Support for advocacy and outreach amongst                     Agree in principle
                           members of the Bureau
                          Support for health related initiatives in            Tentative; decision after details are
                           partnership with local governments                               determined
                          Agree to approach SMEs jointly for advocacy and
SMEDA                      capacity building on CSR issues such as social and                   Firm
                           environmental compliance through existing
                           trainings of SMEDA as well as dedicated sessions
                          Agree to promote Global Compact Pakistan by
                           including Global Compact information as part of                      Firm
                           presentation by the CEO SMEDA to industry and
                           trade associations
                          Agree to promote Global Compact through                              Firm
                           Common Facility Centres across Pakistan
                          Agree to work with Global Compact Pakistan on
                           facilitating SA 8000 certification, WRAP and GMP                     Firm
                           processes
                          Agree to provide information on Global Compact
                           on SMEDA website and to place a link to Global                       Firm
                           Compact Pakistan website
                          Support for advocacy and outreach by organizing                      Firm
NGORC (Aga Khan            an inaugural session on Global Compact for civil
Foundation)                society members in Q1 2004
                          Awareness raising on Global Compact principles
                           and Global Compact Pakistan plans by inclusion of     Firm, subject to material reaching
                           information in NGORC publications, starting with          NGORC before January 15
                           the January issue
                          Outreach and communication on Global Compact                         Firm
                           through electronic dissemination to more than
                           5000 members of civil society listed on the
                           database
                          Stewardship of the proposed Sindh Civil Society       Tentative, more discussion needed
                           Forum
                          Inclusion of Global Compact related information
                           in training modules to be developed for the USAID                    Firm
                           funded capacity building program for NGOs
GreenStar Social          Develop a special HIV/AIDS awareness initiative      Agree in principle, more details need




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Marketing Pakistan        with a dedicated team, for factory workers               to be worked out and discussed
Pakistan Institute of    Support for advocacy and outreach through                            Firm
Quality Control           existing training courses as well as dedicated
                          modules and forums
                         Willingness to act as strategic partner to mobilize            Agree in principle
                          industry on SA 8000 issues, including assistance in
                          identifying sources of funds for capacity building
                          of SMEs
DfID                     Support for research on corporate governance and                      Firm
                          CSR in Pakistan
TRDP, SGA                Establishment of Sindh Civil Society Forum                            Firm
NORAD                    Support for advocacy and outreach                                 In principle
                         Possibility of funding Fellowship in some
                          University/research centre in Norway for research       Tentative, needs more discussion
                          on sustainable development issues or for co-
                          funding the establishment of a Chair for Global
                          Compact in a local university
Program Support          Support for establishing the Sindh Civil Society       Tentative, more discussion needed
Offices Sindh and         Forum, to act a platform for policy dialogue and
Punjab for                interaction amongst stakeholders as well as carry
Decentralisation          out advocacy and conduct research
Support Program          Agree to work closely with the Global Compact
(Asian Development        Pakistan to promote and put in place public-                          Firm
Bank)                     private partnerships for service delivery in health,
                          education, water and sanitation as well as in
                          strengthening management systems
City District            Support for the Global Compact City Initiative           Agreement in principle, more
Government Karachi       Support for strengthening the E&IP offices                     discussion needed
Capital Development      Support for the Global Compact City Initiative           Agreement in principle, more
Authority                                                                                discussion needed
Pakistan Tobacco         Advocacy and outreach and support for Global           Agree in principle, more discussion
                          City Initiative                                                      needed
Institute of             Support for Advocacy and outreach of Global            Tentative, more discussion needed
Chartered                 Compact principles by embedding them in current
Accountants               training modules
Pakistan                 Development of specialized modules on CSR and
                          Business Ethics
                         Organisation of a seminar/conference on Business
                          Ethics and Corporate Governance
Institute of Business    Support for Advocacy and outreach of Global
Administration            Compact principles by embedding them in current        Tentative, more discussion needed
                          training modules
                         Development of specialized modules on CSR and
                          Business Ethics
                         Organisation of a seminar/conference on Business
                          Ethics and Corporate Governance
Qarshi Foundation        Technical       and    managerial    support    for       Agreement in principle, more
                          operationalisation of closed BHUs and government               discussion needed
                          primary schools using the Qarshi model
                         Co-financing a fellowship on sustainable               Tentative, more details requested
                          development in an international research centre
British Council          Sponsorship of Women Leaders in Business Award         Tentative, more in-house discussion
                         Support for visits of UK academics                                  required
Cleaner Production       Replication of the CPP model in various industries        Agreement in principle, more
Program (NEC-Royal       Assisting in capacity building of the EPAs and                 discussion required
Haskonings                facilitating the establishment of a dialogue forum
                          for EPAs and industry reps
                         Creating awareness of Global Compact principles
                          through existing courses at the Cleaner
                          Production Institute
International            Advocacy and outreach for Global Compact to             Tentative, needs more discussion
Chamber of                members of the ICC through specially organized
Commerce (Pakistan        seminars, dissemination through website etc.
Chapter)                 Sponsorship of Global Compact Pakistan




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                          Partnership Awards
                         Support for the TimeBanks initiative
American Business        Advocacy and outreach for Global Compact to          Tentative, more discussion required
Council                   members of the ABC through specially organized
                          seminars, dissemination through website etc.
                         Sponsorship of Global Compact Lecture Series
                         Support for the TimeBanks initiative
Duke of Edinburgh        Partnership to promote awareness and skills          Agreement in principle, details to be
Award                     development amongst youth using the DoEA                         worked out
                          model
                         Widening of the net of youth and social
                          entrepreneurs
                         Co-branding for the Youth Initiative Award
Jehangir Siddiqui        Lead agency for mobilizing the corporate and
Capital Markets Pvt       financial sector on the concept of Socially          Firm, but details need to be worked
and ABAMCO                Responsible Investment                                                out
                         Work on developing an Ethical Fund in Pakistan
Sir Geoffrey Owen at     Become part of the proposed International
London School of          Advisory Panel and support various Global                            Firm
Economics                 Compact Pakistan initiatives, including research
TimeBanks UK             Support in setting up TimeBanks Pakistan by          Agree in principle, details need to be
                          providing technical input, guidance and sharing of                worked out
                          best practices, toolkits, monitoring systems
SAIS at the John         Setting up a Global Compact Pakistan Fellowship      Agree in principle, details need to be
Hopkins University        program                                                           worked out
Intel Pakistan           Support for developing online toolkits/HelpDesks
                          for SMEs on issues such as social/environmental      Agree in principle, details need to be
                          compliance                                                         discussed
                         Partner with Global Compact Pakistan on Bridging
                          the Digital Divide program through which teacher
                          training and hardware/software support is
                          provided for schools in the rural areas
                         Sponsorship of an Annual Global Compact Pakistan
                          Software Development competition amongst
                          youth in partnership with Global Compact
                          Pakistan, Pakistan Software Houses Association
                          and the Sindh IT Board
International            Sponsorship of a competition on developing an
Advertising               advertising campaign on sustainable development                      Firm
Association (Pakistan     issues which would be placed free of cost in
Chapter)                  leading print media
Social Enterprise        Capacity building of NGOs and research on Social
Centre at LUMS            Enterprise in Pakistan                                 Agree in principle, details to be
                         Developing frameworks for promotion of Social                    worked out
                          Entrepreneurship in Pakistan
South Asian Women        Fellowship on Global Compact related issues
in International         Seminars/conferences       on    Global    Compact                   Firm
Security Program at       Pakistan and research carried out by Global
SAIS, John Hopkins        Compact Fellows
University               Assisting in networking with major think tanks in
                          US, specially Washington D.C
Marketing                Advocacy and outreach to MAP members through                         Firm
Association of            seminars/workshops, printed material, website
Pakistan                 Sponsorship of Award for Cause Marketing
                         Sponsorship of a full fledged advertising campaign                   Firm
                          in print, electronic and outdoor media on the
                          Global Compact principles and Global Compact                         Firm
                          Pakistan activities/initiatives that would run
                          throughout the year
                         Sponsor conference on ‘Ethics in Advertising’                        Firm
                         Assist in mobilizing funds within corporate sector




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                            SECTION 5:                   2004 WORK PLAN

Activity                                        Potential Sponsor                   Tentative Date & venue

Participation in the ITIF Asia 2004           Ecommerce Gateway                      January 26-28, Karachi
Launch of Global Compact Pakistan               UNDP, EFP, FPCCI                    End February, Islamabad
Establishment of the Global Compact       Global Compact Steering Board
Foundation                                                                              End March 2004
Launch of Global Compact City            CDGK, UNDP, FPCCI, KCCI, PERK,
Initiative in Karachi and seminar on            ABC, Jang Group                       March 2004, Karachi
Global Compact principles
Launch of Global Compact City
Initiative in Lahore & seminar on GC            CDGL, UNDP, LCCI                      March 2004, Lahore
Launch of partnership with Duke of
Edinburgh Award for Youth in the        British Council, Lever Brothers, ICI             April, Karachi
Communities initiative
Launch of Global Compact City
Initiative in Faisalabad, Sialkot and    DG Faisalabad/Sialkot, FCCI, SCCI       April 2004, Faisalabad, Sialkot
seminar on Global Compact principles                  APCEA
Introductory seminar with civil
society on GC Pakistan                      NGORC, USAID, SEC in LUMS               March-June 2004 Karachi
Conference on Responsible
Advertising                             Marketing Association of Pakistan          September 2004, Karachi
Launch of TimeBanks Initiative          Marketing Association of Pakistan,       March –April-May 2004, Lahore,
                                           British Council, Jang Group           Karachi, Peshawar, Islamabad
Launch of Global Compact City                       CDA, ICCI                           April, Islamabad
initiative in Islamabad and seminar
on Global Compact principles
Introductory Seminar on Global
Compact with members of the ABC                      ICC, ABC                              April 2004
and ICC
Seminars with SMEs on Global
Compact, SA 8000 and related issues          SMEDA, ADB, Habib Bank             April-June 2004, Karachi, Lahore,
                                                                                        Sialkot, Faisalabad
Seminar on Responsible Banking            State Bank and Pakistan Banks
                                                   Association                         June 2004, Karachi
Launch of Global Compact Pakistan
advertising campaign                     Marketing Association of Pakistan                 April 2004
Participate in Health Asia 2004               Ecommerce Gateway                        April 2004 Karachi
Launch of competition for developing
advertising campaign on sustainable     International Advertising Association              May 2004
development issues
Introductory Seminar on Global
Compact with members of the                       Pharma Bureau                        May 2004, Karachi
Pharma Bureau
Conference on SRI in Pakistan           Jehangir Siddiqui Capital Markets,
                                           ABAMCO, SECP, World Bank                        July 2004
Seminar with SMEs on Global
Compact, SA8000 and related issues        SMEDA, Habib Bank, ADB, local         June-July-Aug 2004, Gujranwala,
                                                   chambers                       Gujrat, Peshawar, Hyderabad
Conference on Business Ethics and
Corporate Governance                              IBA and LUMS                       Aug-Sep 2004, Karachi
ITCN Asia                                      Ecommerce Gateway                       Aug 2004 Karachi
Conference on Role of Media in                     Jang Group                          Sep 2004 Karachi
promoting good corporate
Governance
GC Sustainable Development Fair                Ecommerce Gateway                        November 2004
Formalisation of partnerships and           Global Compact Foundation                      ongoing
signing of MOUs etc




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             SECTION 6:                 RECOMMENDATIONS AT A GLANCE

1. Develop institutional frameworks for the Global Compact by:
           a. Establishing a Global Compact Foundation as the main framework for action
           b. Embedding into existing institutional networks and platforms

2. Employ a bottom-up approach and localizing Global Compact initiatives through:
           c. Global Compact City Initiative
           d. TimeBanks Initiative
           e. Focus on SMEs
           f. Focus on public-private partnerships that involve and benefit communities

3. Focus on Advocacy, Outreach, Research and Learning by:
           f. Working closely with stakeholders to raise awareness about Global Compact
               and its principles through seminars, workshops and trainings
           g. Establish Chairs and Fellowships at premier universities
           h. Establish learning centers
           i. Carry out research on relevant topics
           j. Participate in international events to raise country profile and learn from
               international practices
           k. Engage in consistent communication with stakeholders through media including
               advertising, websites, newsletters, articles and supplements

4. Develop incentives for good practice and assist business and industry in self-regulation
by:
           a. Instituting various Global Compact awards
           b. Capacity building of associations to strengthen self-regulatory frameworks

5. Formalize the commitments made by stakeholders by signing Memorandum of
Understanding with partners, outlining areas and nature of partnership and thus develop and
sustain momentum on the Global Compact Pakistan agenda.




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                                                                                              29




ANNEXURE A


              LIST OF ORGANISATIONS CONTACTED DURING TERM OF ASSIGNMENT

  1.     Pakistan Tobacco Limited                   39.     CPP and National Environmental
  2.     UNICEF                                             Consultants
  3.     UNIDO                                      40.     RBI
  4.     WHO                                          41.   Pakistan Institute of Quality Control
  5.     UNDP                                         42.   ICAP
  6.     DfID                                         43.   Gul Bahao Trust
  7.     British Council                              44.   Thardeep
  8.     NORAD                                        45.   Greenstar Social Marketing Pakistan
  9.     ADB                                          46.   London School of Economics
  10.    Capital Development Authority                47.   Schwab Foundation (World
  11.    City District Government Karachi                   Economic Forum)
  12.    City District Government Lahore             48.    Human Resource Practitioners
  13.    IBA                                                Forum Pakistan
  14.    LUMS                                        49.    Sindh IT Board
  15.    American Business Council                   50.    Farmers Association of Pakistan
  16.    International Chamber of                    51.    Pakistan Administrative Staff
         Commerce (Pakistan Chapter)                        College
  17.    Pharma Bureau                               52.    Sindh TMA Nazims Alliance
  18.    Jehangir Siddiqui Capital Markets
         Pvt Ltd
  19.    State Bank of Pakistan
  20.    SECP
  21.    Ecommerce Gateway
  22.    Intel Pakistan
  23.    Karachi Chamber of Commerce &
         Industry
  24.    Lahore Chamber of Commerce &
         Industry
  25.    Export Promotion Bureau
  26.    SMEDA
  27.    Citibank
  28.    Habib Bank
  29.    PSO
  30.    Jang Group of Companies
  31.    Indus TV
  32.    NGORC
  33.    Duke of Edinburgh Award
  34.    TimeBank UK
  35.    SAIS John Hopkins University
  36.    South Asia Program, Princeton
         University
  37.    Marketing Association of Pakistan
  38.    International Advertising
         Association (Pakistan Chapter)



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                                                                                         30




ANNEXURE B


         PROPOSED SELECTION CRITERIA FOR CORPORATE CITIZENSHIP AWARD

This award will showcase businesses and chambers of commerce that have demonstrated
ethical leadership and corporate stewardship, made a difference in their communities and
contributed to the advancement of important economic and social goals.

ELIGIBILITY
Award candidates must be an accredited chamber of commerce or a registered company
and/or a member of an international Chamber of Commerce

SELECTION PROCESS
A Selection Committee formed with representation from relevant stakeholders including
leaders of business, academic and non-profit organizations and corporate citizenship experts
will select the award winners. If a nominee for an award is on the Selection Committee, that
Committee member is ineligible for voting on the award. The decision for the award will be
made on the basis of majority votes.

SELECTION CRITERIA
Company has exemplified the ideals of corporate citizenship via a specific community service
program to promote better corporate-community relations and contributed to the social and
economic development of Pakistan its host country. Additional criteria include:
��Number of people directly affected
��Number of companies involved in the program
��Funds raised or goods or services donated/leveraged




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                                                                                            31




ANNEXURE C


      SELECTION CRITERIA FOR THE GLOBAL COMPACT PAKISTAN PARTNERSHIP AWARD

Selection criteria
Partnerships nominated for the Awards will be recognized on the degree and extent to which
achievement of the indicators of sustainable development listed below have been
demonstrated. Furthermore, as sustainability is largely driven by a comprehensive, crosscutting
approach to conducting business, the Awards will be based on how achievements demonstrated
in any of the categories have been integrated to further advance the critical economic, social
and environmental dimensions of sustainable development. (For example, a description of
achievement in improved waste management would address the economic, social and
environmental benefits derived from such actions.)

Management and Policies
    Promotion and achievement of industry standard
    Implementation of agreed policies
    Internal and external transparency
    Management / employee interaction and corporate ‘buy-in’

Life Cycle Approach
     Relations with suppliers, product and service procurement policies
     Resource management
     Waste management and product stewardship
     Technology innovation and research
     Relations with employees, customers and public authorities

Stakeholders, citizenship and social responsibility
     Industry sector initiatives
     Public / private partnerships
     Contribution to communications, education, training and awareness-raising
     Sponsorship, mentoring and other campaigns
     Responsible local community interaction and conduct

Vision
     Where and how further efforts should be concentrated
     Business / industry’s future agenda
     Helping to address global issues




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