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Acknowledgement
All praises for ALLAH, the Almighty, who guides us in the darkness and help in difficulties and all respect, and for Holy Prophet Hazrat Muhammad (Peace Be Upon Him) who enables us to recognize our creator, who enlightens our minds to choose the right path of life. The words are meaning less to express our heartful to Madam Sana for her outstanding suggestions and kind help at each and every step. It was very difficult we want to say impossible to complete this report in such a good manner. We feel honor to express our sincere gratitude to Madam Sana for this supervision, guidance and encouragement throughout this Project. We always found her very much alive, full of zeal, vitality and intellectual curiosity. With out her ideas, remarks and endless interest out and completed and thanks to all teachers. Special ovation to our parents they cherished us from our childhood and reminded a source of strength during our studies. We want to thanks our parents for there prays valuable guidance, suggestion and assistance in every moment of life. We are also very thankful to MR. Murad Dastgir (Assistant Manager Accounts, Engro Foods Ltd.) who guide us and provide us data regarding Engro foods Limited. Without that valuable data it was not possible for us to complete this project.
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INTRODUCTION OF FOOD& DAIRY INDUSTRY

Food is an essential part of our lives, which is why the way it is grown, processed and transported is worth understanding and improving. Broadly, the food industry comprises a complex network of activities pertaining to the supply, consumption, and catering of food products and services across the world. Finished food products and partially prepared instant food packets are also a part of the food industry. The food industry employs a massive number of skilled and unskilled workers. In 2006 alone, the food industry accounted for over 1.5 million jobs in the US and 4 million jobs in Europe. However, the food industry excludes subsistence farmers who use their produce for self consumption. The food industry is highly diverse and comprises several important components. Each component adds distinct value to the whole food chain by improving sustainability and producing better products. The food trade has existed for centuries. For instance, Asia witnessed thriving trade in tea and silk in ancient era. Some of the milestones of the food trade industry are; 19th century: sterilization, pasteurization (the first canned food factory was inaugurated in England in 1813). 20th century; 1940s Frozen foods, 1960s Freeze-dried, pressure-cooked foods, 1980s Microwave foods, 1990s Induction foods.A number of factors heighten the demand in the global food industry such as population levels, wealth distribution, health awareness (organic food) and types of varied lifestyles. The food supply drivers include quality of supply chain, level of completion in the industry and composition of the target consumers. Food & Dairy Industry in Pakistan The food and its allied products industry is considered Pakistans largest industry, and is believed to account for 27 percent of its value-added production. Pakistans food industry produces cooking oils, hydrogenated vegetable oils, sugar, flour, dairy products such as milk, butter, yogurt, cheese and ice-cream, biscuits, breads and confectionery, fruit juices and fruit juice drinks, carbonated beverages, snack foods based on rice, potatoes, corn and pulses, processed chicken, jams, jellies, squashes, sauces, pickles, and some cereals and canned fruits. The fish, meat, fruit and vegetable sectors are underdeveloped partly for lack of adequate
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infrastructure, including storage and transportation facilities. Government policies and plans are

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expected to greatly increase the development of seafoods industry. Development and implementation of milk standards is also essential to define milk price based on quality. Dairy science and technology education universities also need to support industry in dairy breeding, nutrition, industrial management and product quality. The industry structure packed milk in the category is oligopolistic where there are a few firms (Haleeb, Nestle, Engro, Good milk) producing essentially the same commodity. Pakistan is the fourth largest milk producer in the world. About a third of the total milk produced by the rural families flows out to urban consumers and processing industries. In urban areas milk is available to common consumers in two ways: loose / unprocessed milk and packed/ processed milk. Dairy companies such as Nestle, HFL and Engro Foods limited are the main part of milk marketing structure. All pre-described companies collect raw Milk from the villages and dairy farms, known as Milk Districts. There are three types of milk district functions; self-collection of farmer milk by the milk plants, Third-party milk collection, Farmer cooperatives. Milk district creates favorable production conditions in the form of modern milk storage facilities, better and dependable transportation networks, regular payment schedules and buyer-side competition. In effect, milk district makes rural production system viable where smallholder dairy producers employ mostly family labor, and rely on roughages, grasses and crop residue as fodder. Pakistan is the fourth largest producer of milk in the world, three-fourth of its total milk is produced in the Punjab province. The features of the dairy industry of Pakistan are the dominance of poor subsistence dairying households who keep buffalos and cows in small herd-sizes. Punjab is also home to one of the largest milk district in Asia, which has the unique feature of having 15 private companies competing to collect farmer milk for processing, including global giant Nestl, Haleeb Foods, and Engro foods.

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INTRODUCTION TO ENGRO
Engro stands for energy for growth. From inception, Engro is a legacy of continuous growth, new challenges and fulfilled promises. From fertilizers to dairy products, business solutions to PVC resin, power generation to commodity trade, at Engro their ambition is to become the premier Pakistani enterprise with a global reach. Engro is one of Pakistans most progressive, growth oriented organizations, yet they never forget where they came from. Their history is a part of who we are today. Their diverse range of companies represents their rich legacy of innovation and growth Engro Corporation is one of the leading Pakistani business conglomerates with stakes in the fertilizer, food, power generation, petrochemicals, automation and terminal storage industries. Having had undergone an employee led buy out in 1992 it has expanded phenomenal in the past two decades. As a holding company its subsidiaries include: Engro Fertilizers Limited Engro Foods Limited Avanceon Limited Engro PowerGen Limited Engro Polymers and Chemicals Limited Engro Vopak Limited Engro EXIMP Private Limited

Diversified Portfolio of Engro Pakistan

Engro Fertilizers Limited Engro Fertilizers Limited, a wholly owned Engro subsidiary, is a premier fertilizer manufacturing and marketing company with products that focus on balanced crop nutrition and increased yield. The company markets primary and secondary fertilizers like Engro Urea, Engro DAP, Engro Zorawar, Engro Zarkhez and Zingro. Engro Fertilizers has successfully developed a loyal customer base all across Pakistan, not only by providing farmers with quality fertilizers, but also through extensive market development
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activities. A premier brand and nationwide presence of the company ensures sellout production.

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Business Ethics Additionally, the company sells phosphate fertilizers for balanced fertility and improved farm yields. Engros share of Pakistans phosphates market mirrors or exceeds its urea market share. In 2010, the company achieved mechanical completion and started trial production of its urea expansion project at Daharki which is the worlds largest single train urea-ammonia plant. It is the largest private sector industrial investment in Pakistan.

Engro Powergen Limited

Engro Powergen was incorporated in 2008, as a fully owned subsidiary, to develop power projects in Pakistan so as to help reduce the power shortage in the country and earn a competitive return for shareholders. The Sindh Engro Coal Mining Company Limited is a joint venture between the Government of Sindh and Engro Powergen, to mine coal from Thar Block II. Although the project is in its early stages of technical and economic feasibility assessments, the Company aims to utilize the ample reserves of coal in Thar Desert for power generation. Engro Powergen seeks to reduce Pakistans power shortage through exploring and implementing cleaner, efficient and economic methods of power generation. In this pursuit wind, hydro and solar power projects are being actively assessed as alternative energy options for Pakistan. Engro Energy Limited, another Engro Corporation subsidiary, has established a 220 MW power plant in Qadirpur. This will be Engros first Independent Power Project (IPP) which will utilize permeate gas, currently being flared from the Qadirpur gas field thus helping reduce carbon emissions. This power plant will be one of the first green power plants in the country.

Engro EXIMP Private Limited Engro EXIMP Private Limited, established in 2003, is a wholly owned subsidiary of Engro

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and SOP, and micro-nutrients like Zinc Sulphate. It supplies these fertilizers as raw materials to

Corporation Limited. The Company trades in commodity fertilizers such as DAP, MAP, MOP

Business Ethics Engro Fertilizers Zarkhez plant for manufacturing blended compound fertilizers. In addition, the Company also directly markets them locally. Engro EXIMP has been the largest importer of phosphates and potash fertilizers in Pakistan over the last five years. It has also recently expanded into regional trade of fertilizers. With a vision to expand into new and profitable trading avenues, Engro EXIMP has established a fast growing basmati rice trading business. The Company will procure high quality basmati paddy from farmers and export finished basmati rice to B2B customers across the world. As part of this initiative, Engro is setting up a large and state-of-the-art rice processing mill in the heart of the basmati growing area in Pakistan. The mill is expected to begin commercial operation by late 2010.

Avaceon Limited Avanceon Limited, an Engro subsidiary, is a leading global automation business, providing process and control solutions, with subsidiaries operating in UAE and the United States. The Company also offers power and energy management integrated solutions, as well as high end software that integrate production and business applications. Avanceons driving force is its vision to develop intellectual property to optimize the energy foot print of the manufacturing industry.

Engro Vopak Terminal Limited

A breakthrough in chemical and LPG storage, Engro Vopak Terminal Limited, is a joint venture of Royal Vopak of the Netherlands and Engro. It has been providing world class services to the growing chemical and petrochemical industry of Pakistan. The Company offers storage and handling solutions for liquid and gaseous chemicals, oil products, petrochemicals, bio-fuels, vegetable oils and Liquefied Natural Gas (LNG). Engro Vopak maintains safety and quality as per international standards of OHSAS 18001, ISO 9001, 14001, CDI-T (THA) and ISPS. With successful commissioning of Pakistans first
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cryogenic import facility for Ethylene, Engro Vopak has achieved yet another landmark in the terminal industry of Pakistan.
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Business Ethics Engro Vopaks growth is fueled by its passion for excellence and we are currently pursuing investment opportunities in the energy sector of Pakistan.

Engro Asahi Polymer &Chemicals. Limited

Engro Polymer & Chemicals Limited, an Engro subsidiary, is Pakistans leading manufacturer and marketer of PVC (polyvinyl chloride) resin, with an annual PVC production of 150,000 tons. The Company markets its products under the brand name of SABZ. Following recent expansion, the Company now has an integrated facility with the capability to manufacture EDC, VCM, Chlorine and Caustic soda. The Company is the sole producer of PVC resin, hence plays a pivotal role in ensuring the sustainability of the domestic PVC industry and provides support through the provision of quality products and technical services. It also invests in developing new products and markets; as part of market development it is looking to set up a complete business line for the construction industry by promoting PVC based doors and windows.

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VISION STATEMENT
To become fast growing mega Food Company & also to elevate Consumer Delight Worldwide.

The Company aims to generate a significant portion of its revenue from foreign operations. To be the premier Pakistani enterprise with a global reach, passionately pursuing value creation for all stakeholders

MISSION STATEMENT
Build Branded food business to improve quality of life by offering tasty, affordable and highly nutritional products to our consumers while maximizing stake holders' value."

Our mission is to provide satisfaction at a competitive cost, growth in diversity, and continue to contribute to the growth of industrialization in Pakistan by being the market leader. We believe our success depends on our customers.

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Values of Engro Foods

1. Integrity We have an open disclosure policy and transparent processes. All our business activities / transactions are carried out honestly and with fairness. 2. Our People Have passionate people with intelligent and firm approach towards business. To facilitate these people we give those challenging opportunities, training, fun loving environment, necessary resources and facilities. We publicly recognize our talent. 3. Innovation Innovation is the way of life at EFL. It is valued, encouraged and rewarded in all aspects of our operations. 4. CSR We stand committed to sustainable business growth and ensure 100% compliance of CSR by ensuring the safety of our people, assets and the community in which we operate. Consumer Centric Consumer is the reason for our existence as a business.

BOARD OF DIRECTORS
Engros Board of Directors includes eight non-executive directors and five executive directors, who share the collective responsibility of ensuring that the affairs of the organization are managed competently and with integrity. The Board has been reconstituted as of April 2009, supplementing the number of non-executive directors.

Hussain Dawood Chairman

Asad Umar
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President & CEO

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Asif Qadir Director

Arshad Nasar Director

Shahzada Dawood Director

Isar Ahmad Director

Shabbir Hashmi Director

Khalid Mansoor Director

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Ruhail Mohammed Director

Khalid Siraj Subhani Director

Muhammad Aliuddin Ansari Director

Abdul Samad Dawood Director

Saad Raja Director

Andalib Alavi Secretary

Executive Committee
The Executive Committee headed by the President & CEO Engro Corp., includes the corporate functional heads of HR and Finance & CEOs of all Engro Corp subsidiaries. The committee meets to discuss performance appraisals and annual business plans. The objective is to work in an advisory capacity to the Engro Corp. President & CEO on the following matters:
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HR Policy setting, management and development of top talent including high potential human resources
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Business Ethics Group business development strategies, scoping new business opportunities and ventures Corporate ethics and compliance policy setting HSE policies and Group level CSR initiatives

Asad Umar President & Chief Executive Officer Engro Corporation Limited

Asif Qadir President & Chief Executive Officer Engro Polymer & Chemicals Limited

Khalid Siraj Subhani President & Chief Executive Officer Engro Fertilizers Limited

Bakhtiar Wain President & Chief Executive Officer Avanceon Limited

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Business Ethics Khalid Mansoor President & Chief Executive Officer Engro Powergen Limited

Sarfaraz A. Rehman President & Chief Executive Officer Engro Foods Limited

Shaikh Imran-ul-Haque President & Chief Executive Officer Engro Vopak Terminal Limited

Ruhail Mohammed CFO Engro Corporation Limited

Tahir Jawaid Vice President Engro Corporation Limited

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Secretary
Arshaduddin Ahmed Vice President Finance Engro Polymer & Chemicals Ltd.

BRANDS OF ENGRO FOODS

Olpers
Olwell Olfrute Tarkka Omore Olper cream Tarang Owsum Dairy Omang

DEPARTMENTS OF ENGRO FOODS LTD

Administration Finance & Accounts Milk procurement Human resource Quality Assurance Supply Chain

Engineering Marketing

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IT

Business Ethics R&D

ENGROS DEPARTMENTAL CHART

Departments Finance & Account Supply Chain

Administration

MIS

Milk Procurement

Human Resource

Quality Assurance

Engineerin g R&D

Marketing

Introduction To Ethics
Some years ago, sociologist Raymond Baumhart asked business people, "What does ethics mean to you?" Among their replies were the following: "Ethics has to do with what my feelings tell me is right or wrong." "Ethics has to do with my religious beliefs." "Being ethical is doing what the law requires." "Ethics consists of the standards of behavior our society accepts." "I don't know what the word means."

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views many people have about ethics are shaky.

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These replies might be typical of our own. The meaning of "ethics" is hard to pin down, and the

Business Ethics Like Baumhart's first respondent, many people tend to equate ethics with their feelings. But being ethical is clearly not a matter of following one's feelings. A person following his or her feelings may recoil from doing what is right. In fact, feelings frequently deviate from what is ethical. Nor should one identify ethics with religion. Most religions, of course, advocate high ethical standards. Yet if ethics were confined to religion, then ethics would apply only to religious people. But ethics applies as much to the behavior of the atheist as to that of the saint. Religion can set high ethical standards and can provide intense motivations for ethical behavior. Ethics, however, cannot be confined to religion nor is it the same as religion. Being ethical is also not the same as following the law. The law often incorporates ethical standards to which most citizens subscribe. But laws, like feelings, can deviate from what is ethical. Our own pre-Civil War slavery laws and the old apartheid laws of present-day South Africa are grotesquely obvious examples of laws that deviate from what is ethical. Finally, being ethical is not the same as doing "whatever society accepts." In any society, most people accept standards that are, in fact, ethical. But standards of behavior in society can deviate from what is ethical. An entire society can become ethically corrupt. Nazi Germany is a good example of a morally corrupt society. Moreover, if being ethical were doing "whatever society accepts," then to find out what is ethical, one would have to find out what society accepts. To decide what I should think about abortion, for example, I would have to take a survey of American society and then conform my beliefs to whatever society accepts. But no one ever tries to decide an ethical issue by doing a survey. Further, the lack of social consensus on many issues makes it impossible to equate ethics with whatever society accepts. Some people accept abortion but many others do not. If being ethical were doing whatever society accepts, one would have to find an agreement on issues which does not, in fact, exist. What, then, is ethics? Ethics is two things. First, ethics refers to well-founded standards of right

impose the reasonable obligations to refrain from rape, stealing, murder, assault, slander, and
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benefits to society, fairness, or specific virtues. Ethics, for example, refers to those standards that

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and wrong that prescribe what humans ought to do, usually in terms of rights, obligations,

Business Ethics fraud. Ethical standards also include those that enjoin virtues of honesty, compassion, and loyalty. And, ethical standards include standards relating to rights, such as the right to life, the right to freedom from injury, and the right to privacy. Such standards are adequate standards of ethics because they are supported by consistent and well-founded reasons. Secondly, ethics refers to the study and development of one's ethical standards. As mentioned above, feelings, laws, and social norms can deviate from what is ethical. So it is necessary to constantly examine one's standards to ensure that they are reasonable and well-founded. Ethics also means, then, the continuous effort of studying our own moral beliefs and our moral conduct, and striving to ensure that we, and the institutions we help to shape, live up to standards that are reasonable and solidly-based.

BUSINESS CODE OF ETHICS

In order to encourage good practices and professionalism in the organization the company has very clear code of ethics which guide the employees to behave in an ethical manner. This code of conduct includes the following important clauses. Overall, work towards creating an environment which promotes the realization of our vision & values, by focusing on behavioral modification and systematic changes. Challenge the status quo by experimenting & taking reasonable & calculates risks. Think Engro, by placing company interest above individual, sectional, departmental interest. The policy of Engro is one of the strict observance of all laws applicable to its business. Our policy does not stop there. Even where the law is permissive, Engro chooses the course of highest integrity. Local customs and traditions differ from place to place, and this must be recognized. But honesty is not subject to criticism in any culture. Shades of dishonesty simply invite demoralizing and reprehensible judgments. Do care how we get results. We expect compliance with our standard of integrity

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cost of violation of laws or unscrupulous dealing. By the same token, we support and we

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throughout the organization. We will not tolerate an employee who achieves result at the

Business Ethics expect all employees to support, an employee who passes up an opportunity or advantage which can only be secured at the sacrifice of principle. Equally important, we expect candour from managers at all levels, and compliance with accounting rules and controls. We dont want employees to misrepresent facts, whether they are misrepresenting in a mistaken effort to protect us or to make themselves look good. One of the kinds of harm which results when a manager conceals information from higher management and the auditors is that subordinates within his organization think they are being given a signal that company policies and rules, including accounting and control rules, can be ignored whenever inconvenient. This can result in corruption and demoralization of an organization. Our system of management will not work without honesty, including honest bookkeeping, honest budget proposals and honest economic evaluation of projects. Falsifications of its books are strictly prohibited. It has been, and continues to be, EPCLs policy that all transactions shall be accurately reflected in its books and records. This, of course, means that falsification of its books and records and any off-the-record bank accounts are strictly prohibited. Engro considers its people as their most valuable asset. The company focuses upon development of its employees through leadership building, continuous improvement training, and development. Anti-Restrictive Trade Practices Ethics has been the foundation of Engro Empire. The company has laid down a firm ethics policy and framework. The policies are shared with one and all. When new hires come to the company, they are made familiar with the ethical policies. Proper training is designed to deal with the ethical aspects of the business. Annual circulation of ethics policies and awareness building slogans also reinforce the ethical

Proper whistle blowing mechanisms are also in place for controlling and monitoring

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environment of the company.

Business Ethics unethical practices. Engro Polymer & Chemicals Limited believes in fair trade and competition. Therefore, it is the policy of the Company that all of its directors and employees shall, in carrying out their duties to the Company, comply with relevant laws. All employees are responsible for familiarizing themselves with the requirements of these laws as any violation may result in penalties and / or criminal offences. No director or employee should assume that the Companys interest ever requires otherwise. Moreover, no one in the Company has authority to give any order or direction that would result in a violation of this policy. It is recognized that on occasion there may be legitimate doubt as to the proper interpretation of the law. In such circumstances, it is required that the employee refers the case through appropriate channels to the Legal Department for an opinion. Collectively develop concise and realistic goals, also agreeing on the process of achieving these before implementing. Balance task, team & individual needs by keeping helicopter view. Work through teams, by valuing all ideas and effectively committing people through consensus building & active involvement. Remind each others on the importance of using participatory processes, just as much as emphasizing attention on safety, quality & continuous improvement. Recognize individual needs and helping fulfill them. Trust each other by delegating authority & decision making to the lowest possible level. Encourage sharing a clear, consistent and obtaining timely feedback for learning& growth. Give everyone a chance by listening patiently and thinking before speaking.

Recognize team and individual efforts to change by celebrating both lesson &success.
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Business Ethics Health, Safety & Environment Conduct its business in a manner that protects the health and safety of employees, contractors, others involved in our operations and the community in which we operate; Continuously improve environmental performance to achieve sustainable development; Strengthen its business by making Health, Safety and Environment (HSE) considerations an integral part of all business activities; Comply with all laws and regulations; Practice, transparent public reporting of the HSE performance; Ensure that HSE is a major responsibility of appropriately trained, empowered and accountable employees and management; Promote a culture of learning and practicing HSE management among employees and contractors; Encourage off-the-job HSE awareness among employees and families.

SHARED GROWTH & EXPANSION FOR WELFARE OF SOCIETY

Engro Corporation is sharing its growth not only with their shareholders but also with other stake holders. It means Engro is not only distributing its earnings and making further investments in business but also performing many activities for the other key stakeholders like customers and society in which they are operating. Therefore it spent Rs. 32 million on social investments in 2008 alone. The major thrust of Engros social investments has been in five areas: education, health, skill development, as detailed below: Education Initiatives In terms of current education initiatives being supported by Engro companies, EEL has adopted 3 government schools, while EPCL is providing support to 3 government schools. Support to these government schools from the affiliates contains various elements including teachers, support staff (e.g. sweepers, gardeners), teachers training, classroom materials, teaching aid materials for teachers, stationery and co-curricular activities for students etc.

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provision of infrastructure (e.g. classroom buildings, toilet facilities, furniture, water coolers),

Business Ethics Health Initiatives

EFL (in collaboration with ECPL) organizes annual eye camps in partnership with nonprofit organizations like Al Shifa Eye Trust. In 2008 alone, over 900 patients benefitted from these eye camps.

Skill Development EFL is partnering with UNDP to financial and implement Community Empowerment through Livestock Development and Credit (CELDAC). Under CELDAC, EFL has trained 1,200 lady livestock workers, 70% of whom are working in their own villages and generating an average monthly income of Rs. 2,000. Improving livestock productivity has increased income generating potential of rural women who are responsible for care of livestock. In addition, the program has contributed to significant social and economic empowerment of women in rural areas.

UNETHICAL ACTIVITIES
Although Engro Corporation is very socially responsible organization but still it has some unethical practices which are given below. Marketing campaigns that could encourage obesity. Packaging that leads to excess purchases with implications for obesity. Packaging material is harmful for environment especially the plastic bags of chemical fertilizers. They dont consider much health and safety standards in procurement of milk because they purchase milk from villagers who usually do not use scientific methods for milking and also are not very much concerned regarding cleanliness in this process. Misleading information or failure to label clearly contents that could be of concern. Misuse of water resources it means they are using excessive amount of water which is pumped out from earth due to which beneath earth water level decreases which means

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there is high depletion of precious natural recourse.

Business Ethics Soil degradation and other environmental damage to the land due to the waste especially by Engro chemical fertilizer. Measures to overcome unethical practices There is need to revise firms marketing policies and should be adapted according to the ethical code of conduct of the company because in their ethical code they mentioned that no unethical activity will be allowed. In the milk procurement procedure besides the fat tests cleanliness tests should also be used All the contents of the products should be clearly mentioned Although firm require high amount of water to perform its operations but the company should make efficient use of water to protect natural resources.

TOP LEVEL SUPPORT FOR ETHICAL INTIATIVES

The top level management in ENGRO is more committed to: Conduct its business in a manner that protects the health and safety of employees, contractors, others involved in our operations and the community in which we Operate; Continuously improve environmental performance to achieve sustainable development; Strengthen its business by making Health, Safety and Environment (HSE) considerations an integral part of all business activities; Comply with all laws and regulations; Practice, transparent public reporting of the HSE performance; Ensure that HSE is a major responsibility of appropriately trained, empowered and accountable employees and management; Promote a culture of learning and practicing HSE management among employees and contractors;

Encourage off-the-job HSE awareness among employees and families.

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ENGROS MAJOR INITIATIVES IN SOCIAL INVESTMENTS

1. Sahara Welfare Society Projects Registered under the Voluntary Social Welfare Agencies Ordinance 1961, Sahara Welfare Society located in an office adjacent to the Daharki plant - is a nonprofit organization managed by Engro employees and financed through employee and company contributions. 2. Sahara Community School: Through Engros support, the Sahara Community School was established in 2002. The school educates 247 children from nursery through class 5, of which 108 are girls and 139 boys, taught by 17 teachers. In addition to regular classes, the school also holds non-formal classes where a five-year primary curriculum is covered in three years for children who cannot be admitted to regular classes. Currently two batches, consisting of 46 and 42 children respectively, are benefiting from this program. 3. Dar ul Shifa Clinic: Since 2002, the Dar-ul Shifa Clinic provides free medical consultation services to patients (mostly women and children). The clinic has treated over 43,000 patients and provided medicines worth over Rs. 1.8 million since its establishment. In 2008, 5,039 patients availed this facility and received free or highly subsidized medicines worth over Rs. 372,000. 4. Sahara Arts & Crafts Center: The Sahara Arts & Crafts Center was established in 2003 to impart vocational training to females in the surrounding communities to enhance their income generation skills. It is fully equipped and operates three shifts of two hours each for different batches of students. Since its inception, the center has trained over 700 students free of cost. USAID has provided financial support for the initiative in 2008 through the International Youth Foundation and Rural Support Programmes Network (RSPN).

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Business Ethics 5. Teaching and Resource Center (TARC): TARC was established in partnership with the Ali Institute of Education, Lahore, in 2000 to provide a dedicated resource for teachers training. From 2000-2008, TARC has trained 2,358 teachers from various government schools. TARC provides two kinds of training to the teachers. Through Subject Based Training sessions, teachers knowledge and skills are built to deliver subject-specific classes in subjects like math, science, social studies and languages (English, Urdu, and Sindhi). While through Strategy Based Professional Development Training sessions, the teachers are trained in lesson planning, teaching methodologies, class room management, child psychology, motivation, time management, stress management, team building, conflict resolution, co-curricular activities etc. 6. Project Hope (Telemedicine): Project Hope was established in April 2005 as a partnership between Jinnah Postgraduate Medical Center (JPMC) and Engro. It provides free and easy access to high quality medical consultation services of JPMC specialists to poor patients in remote rural areas of Sindh. 7. Engro Thalassemia Center: In 2008, the Engro Thalassemia Center in Sukkur, housed at Sukkur Blood & Drug Donating Society, provided free blood transfusion facilities to 4,413 patients. This facility serves as a critical life saving function for the most vulnerable children who are the main users of the facility, many of whom travel with their parents from far away communities to avail this facility. 8. Earthquake Relief in Balochistan: In response to the devastation caused by the earthquake in Balochistan in October 2008, Engro provided 4,000 cartons of milk as part of the primary relief efforts. The milk cartons were distributed among the earthquake affectees of seven union councils of Ziarat and Pishin districts in Balochistan, in partnership with Hisaar Foundation. 9. Eye Camp in Sahiwal: With Engros support, a two-day free eye camp was organized on November 14 and 15, 2008 at Sahiwal by the Al-Shifa Eye Trust Hospital. This event was well publicized for the

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Business Ethics benefit of local communities and there was a large patient turnout. Over 900 patients availed the facilities at the camp, 600 patients received free medicine, while 300 patients received free eye glasses. 10. Polio Immunization Campaign: Engro partnered with the Department of Health, Government of Sindh, and World Health Organization to undertake 10 polio immunization campaigns in Taluka Daharki in 2008. On average, 55,000 children were vaccinated during each campaign. Engros contribution consisted of providing logistical support in the form of hired vehicles for mobilization of polio immunization teams in far-flung areas for the entire length of the campaigns, as well as providing lodging and boarding facilities for WHO teams. 11. Infrastructure Schemes: Through drainage and brick-paving schemes, Engro contributed towards improving basic infrastructure in the poor communities. While drainage schemes are aimed at improving hygiene and health conditions of local residents, the brick paving schemes are geared to reduce possible injuries to pedestrians from walking on unpaved streets, especially after sunset and rainfall. Jung has benefited from the drainage scheme in 2008. 12. Kidney Dialysis Centers: Established with Engros support in 2001 and 2005 respectively, two dialysis centers are operating in government hospitals at Daharki and Mirpur Mathelo. These centers offer free dialysis services to the needy patients with ongoing financial support from Engro for the running costs. In 2008, the two facilities jointly conducted a total of 867 dialyses for patients (525 at Mir Pur Mathelo; 342 at Daharki).

RECOMMENDATIONS
Various sustainability activities of Engro have developed historically and in an evolutionary manner, and there is little evidence of a comprehensive approach or strategy for sustainability. We recommend that Engro undertakes a sustainability strategy

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Business Ethics exercise, to clarify the direction, engage the stakeholders, and provide the right framework for the various sustainability initiatives. We also recommend that Engro examines how to integrate their sustainability initiatives into the core activities of their business. We also suggest Engro Chemical to consider the adoption of a recognized methodology for carbon foot printing, like ISO 14064:2006. Responsiveness could further improve by developing a focused programme of stakeholder engagement that directly addresses sustainability and reporting. This should involve stakeholder groups at both corporate and business unit levels with the ability to inform overall sustainability programmes, reporting and risk management. Engro Corporation should focus on the wholesomeness of the food items especially milk although the quality of their products is currently not poor but they should maintain relationship with suppliers and provide them support to use scientific methods in their processes to ensure cleanliness in the processes.

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Business Ethics

REFERENCES
http://www.engro.com/our-businesses/engro-foods-limited/ http://www.engro.com/fact-sheet-engro-foods-limited/ http://www.engro.com/news-centre/engro-in-the-news/awards-recognition/ http://www.engro.com/careers/why-engro/ http://engro.com/wpcontent/themes/engrov1.0/pdf/corporate_responsibility/engrocsrrepor t2008.pdf http://www.lahorestock.com/PublicMediaRelations/Media%20Releases/Press%20Releas e%20(ENGRO).pdf Mr. Murad Dastgir Assistant Manager Accounts Engro Foods Ltd. 8 km- Pak Pattan Road, Sahiwal.

BZU Sub Campus Sahiwal

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