ubl csr report

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This is our report regarding CSR activities taken by United Bank Limited (UBL) Pakistan.

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AHSAN RAZA MUHAMMAD SAQIB NASIM MUHAMMAD TALHA EKRAM ZUHAIR AZIZ QIDWAI SUBMITTED TO

MR. SAMIR S. AMIR

CONTENTS

Contents..................................................................................................................2 Acknowledgement...................................................................................................4 Introduction ............................................................................................................6 Definitions of social responsibility........................................................................6 Corporate social responsibility means.................................................................6 Is CSR the same as business ethics?.................................................................6 The debate on social responsibility.........................................................................8 Free market view - a summary ...........................................................................8 The free market case against corporate social responsibility..............................9 The corporate responsibility view........................................................................9 Stakeholder theory ..............................................................................................9 Arguments for socially-responsible behavior.....................................................10 Enlightened self interest.....................................................................................10 From Philanthropy To Stake Holder Participation ............................................11 The New Innovations In Implementing Corporate Social Responsibility...........12 Engaging employees in CSR.............................................................................13 Diversified programs..........................................................................................14 Importance of involvement.................................................................................15

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Participatory forum ............................................................................................15 The larger picture...............................................................................................16 About the company...............................................................................................16 Vision.................................................................................................................18 Mission...............................................................................................................18 Core values........................................................................................................18 UBL Structure.....................................................................................................18 Organizational Culture.......................................................................................19 Major CSR activities...........................................................................................19 Charities and Donations................................................................................22 Porter Analysis...................................................................................................23 Virtue Matrix.......................................................................................................24 Competitors activities............................................................................................26 Faysal Bank CSR activities................................................................................26 Competitive Analysis Grid..................................................................................28 Problems with Corporate Social Responsiblity.....................................................29 Future Prospects...................................................................................................33 Possible Areas for Improvement...........................................................................33 Appendix...............................................................................................................34 UBL CSR Interveiew..........................................................................................34 References.........................................................................................................37

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ACKNOWLEDGEMENT

We would like to acknowledge our beloved instructor for assigning the task to enhance our potential in the corporate social responsibility. He gave us wonderful opportunity to understand and implement the CSR in our day to day processes. This assignment proved to be very informative and innovative. We have tried our best to accomplish this task by taking all the necessary procedures. We would like to thanks Mr. Ejaz Wasey (Head Marketing Services) for giving us some valuable time and support to help us in every possible way. Secondly thanks to Ms. Rubab Abedi for providing us the essentials information regarding CSR activities in UBL.

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Corporations should be and could be a major force for resolving environmental and social concerns in the 21st century. William Ford, Jr., 2004.

Corporate social responsibility is a dangerous distortion of business principles. If you find an executive who wants to take on social responsibilities, fire him. Fast. Peter Drucker, 2004.

There is a happy convergence between what shareholders want and what is best for millions of people the world over Kofi Annan (2001)

In recent years corporations have been asked to play a key role in addressing issues that appear to go beyond their primary economic function, for instance corporations are increasingly being urged to tackle issues like global poverty, human rights, and climate change. Whether corporations are equipped to play such a role is in some doubt: while there is a long history of corporate engagement with the broader society through philanthropy and community development, the primary function of a corporation remains firmly focused on profit generation, which limits the extent of a corporations involvement with broader social issues.

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INTRODUCTION DEFINITIONS OF SOCIAL RESPONSIBILITY

Corporate social responsibility (CSR) is an obligation, beyond that required by the law and economics, for a firm to pursue long term goals that are good for society. The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as that of the local community and society at large. It is about how a company manages its business process to produce an overall positive impact on society.CORPORATE SOCIAL RESPONSIBILITY MEANS

Conducting business in an ethical way and in the interests of the wider community Responding positively to emerging societal priorities and expectations A willingness to act ahead of regulatory confrontation Balancing shareholder interests against the interests of the wider community Being a good citizen in the community

IS CSR THE SAME AS BUSINESS ETHICS?

There is clearly an overlap between CSR and business ethics. Both concepts concern values, objectives and decision based on something than the pursuit of profits and socially responsible firms must act ethically The difference is that ethics concern individual actions which can be assessed as right or wrong by reference to moral principles. CSR is about the organizations obligations to all stakeholders and not just shareholders.

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There are four dimensions of corporate responsibility: Economic - responsibility to earn profit for owners Legal - responsibility to comply with the law (societys codification of right and wrong) Ethical - not acting just for profit but doing what is right, just and fair Voluntary and philanthropic - promoting human welfare and goodwill, being a good corporate citizen contributing to the community and the quality of life

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THE DEBATE ON SOCIAL RESPONSIBILITY

Not all business organizations behave in a socially responsible manner And there are people who would argue that it is not the job of business organizations to be concerned about social issues and problems There are two schools of thought on this issue: 1. In the free market view, the job of business is to create wealth with the interests of the shareholders as the guiding principle. 2. The corporate social responsibility view is that business organization should be concerned with social issues.FREE MARKET VIEW - A SUMMARY

The role of business is to create wealth by providing goods and services There is one and only one social responsibility of business- to use its resources and engage in activities designed to increase its profit so long as it stays will the rules of the game, which is to say, engages in open and free competition, without deception or fraud. [Milton Friedman, American economist] Giving money away is like a self imposed tax Managers who have been put in charge of a business have no right to give away the money of the owners Managers are employed to generate wealth for the shareholders - not give it away Free markets and capitalism have been at the centre of economic and social development Improvements in health and longevity have been made possible by economies driven by the free market. To attract quality workers it is necessary to offer better pay and conditions and this leads to a rise in standards of living and wealth creation. Free markets contribute to the effective management of scarce resources.

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It is true that at times the market fails and therefore some regulation is necessary to redress the balance. But the correcting of market failures is a matter for governm