Submitted To:

Miss Mahwish Irum

Submitted By:
Muhammad Muavia Khan Rehmat Ullah Azam Shah Danish Asad Ullah Azam Numan Khadim Sajjad Nawaz Khan Abdul Manan Abida Parveen [SP09-MBA-081] [SP09-MBA-114] [SP09-MBA-135] [SP09-MBA-027] [SP09-MBA-021] [SP09-MBA-084] [SP09-MBA-120] [SP09-MBA-003] [SP09-MBA-006]

Submission Date:


Department of Management Sciences


ACKNOWLEDGEMENT We are heartily thankful to our supervisor, Miss Mahwish Irum, whose encouragement, guidance and support from the initial to the final level enabled us to develop an understanding of the subject. Lastly, we offer our regards to all of those who supported us in any respect during the completion of the project.


Introduction: Corporate governance is the set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed. The principal stakeholders are the shareholders, management, and the board of directors. Other stakeholders include employees, customers, creditors, suppliers, regulators, and the community at large. Corporate governance is a multi-faceted subject. An important theme of corporate governance is to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problem. A related but separate thread of discussions focuses on the impact of a corporate governance system in economic efficiency, with a strong emphasis on shareholders' welfare. There are yet other aspects to the corporate governance subject, such as the stakeholder view and the corporate governance models around the world. Corporate governance principles and codes have been developed in different countries and issued from stock exchanges, corporations, institutional investors, or associations (institutes) of directors and managers with the support of governments and international organizations. As a rule, compliance with these governance recommendations is not mandated by law, although the codes linked to stock exchange listing requirements may have a coercive effect.

For example, companies quoted on the London and Toronto Stock Exchanges formally need not follow the recommendations of their respective national codes. However, they must disclose whether they follow the recommendations in those documents and, where not, they should provide explanations concerning divergent practices. Such disclosure requirements exert a significant pressure on listed companies for compliance.

There are various laws and regulations from the Government for which an organization is bound to follow so that the level of sound governance can be achieved. The following are the different types of Laws
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Environment protection laws Employee safety and health protection



Consumer protection

1. Environmental Protection Laws: Environmental law is a complex and interlocking body of treaties, conventions, statutes, regulations, and common law that, very broadly, operate to regulate the interaction of humanity and the rest of the biophysical or natural environment, toward the purpose of reducing the impacts of human activity, both on the natural environment and on humanity itself. The topic may be divided into two major areas: (1) pollution control and remediation, and (2) resource conservation and management. Laws dealing with pollution are often media-limited - i.e., pertain only to a single environmental medium, such as air, water (whether surface water, groundwater or oceans), soil, etc. - and control both emissions of pollutants into the medium. These laws are further divided into following sub categories.

a) T e Air (prevention and control of pollution) Act,1981 : Industrialization and urbanization have a resulted in a profound deterioration of Pakistan¶s air quality. The act provides for the prevention, control and abatement of air pollution. It also provides for the establishment of boards with a view to carrying out the above purpose. Effect of air pollution on human beings: The heart may be damaged by the air pollution, secondary to lung diseases, nitrogen dioxide results in pulmonary edema and aggravation of coronary disease. Toxic effects of led pollution include impaired IQ and development defects in children. These are few of many effects of air pollution on human beings. b) The Environment Protection Act, 1986: The environmental protection act provides for protection and improvement of environment and for matters connected therewith. A man is both creator and moulders of his environment, which gives him physical sustenance and the opportunity for intellectual, moral, social and spiritual growth. In the long end tortuous evolution of the human race on this planet, a stage has reached when through the rapid acceleration of science and technology, man has acquired the power to transform his environment in countless bases and on unprecedented scale. Both aspects of man¶s environment, the natural and manmade, are essential to his well being and to the enjoyment of basic human rights, even the right to life itself´.


2. Workplace Safety And Health: Workplace safety is a category of management responsibility in places of employment. To ensure the safety and health of workers, managers establish a focus on safety that can include elements such as:
y y y y y y y y y y y y y y

management leadership and commitment employee engagement accountability ensuring all task are carried out safely and efficiently and effectively safety programs, policies, and plans safety processes, procedures, and practices safety goals and objectives safety inspections for workplace hazards safety program audits safety tracking & metrics hazard identification and control safety committees to promote employee involvement safety education and training safety communications to maintain a high level of awareness on safety

Further divided into sub categories which are elaborated blow a) Trade union Act: The trade union act provides for registration of trade unions with a view rendering lawful organization of labor to enable collective bargaining. It also confers on a registered trade union certain protection and privileges. Registration of a trade union is not compulsory but is desirable since a registered trade union enjoys certain rights and privileges under the act. Minimum 7 workers of an establishment (or seven employees) can form a trade union and apply to the registrar of its registration.


b) Payment of Bonus Act: The payment of bonus act provides for payment of bonus to persons employed in certain establishment on the basis of profits or on the basis of production or productivity and for matters connected therewith.  Eligibility for Bonus: Every employee receiving salary or wages up to Rs. 3500 per month and engaged in any kind of work whether skilled, unskilled, managerial, supervisory etc. is entitled to bonus for every accounting year if he has worked for at least 30 working days in that year. However, employees of universities and educational institutions, hospitals, chamber of commerce and social welfare institutions are not entitled to bonus under this act.  Disqualification for bonus: Notwithstanding anything contained in the act, an employee shall be disqualified from receiving bonus, if he is dismissed from service for fraud or riotous or violent behavior while in the premises of the establishment or theft, misappropriation or sabotage of any property of the establishment. c) The Employee¶s Provident Funds Act: The employee¶s provident funds and miscellaneous provisions act provides for compulsory contributory fund for the future of an employee after its retirement or for his dependents in case of his early death.

d) The Workmen¶s Compensation Act: This act aims to provide workmen and /or their dependents some relief in case of accidents arising out of, and in the course of employment and causing either death or disablement of workmen. It provides for payments by certain classes of employers to their workmen compensation for injury by accident. 3. Consumer Protection Act: The act caters to the needs of consumers, and a variety of services such as banking, financing, insurance, transport, housing constructions, entertainment have been made available to the consumers. Any person who has bought goods for the consideration and finds any defect in the


quality, quantity, potency, purity or standard of the goods has hired or availed any service for consideration and finds any fault, imperfection, shortcoming or inadequacy in the quality, nature and manner of performance in relation to the service can approach the courts.

a) Food Adulteration Act: The prevention food adulteration act aims at making provisions for the prevention of adulteration of food. Any article of food shall be deemed to be adulterated if the article sold by a vendor is not of the nature, substance or quality demanded by the purchaser or which it purports to be.


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Electrical Equipment Manufacturing Co. Ltd.
Address: 2nd Floor, Saudi Pak House, 14 - Egerton Road, Lahore. Landmark: Egerton Road, Saudi Pak House, Lahore Phone: +92-42-36371116, 36371117, 36371118, 36371119 Fax: +92-42-36368119

The Imperi l Electric Company (Pvt Lt

(The parent company) was established in 1931

and has been involved in trading of electrical goods. Soon after the creation of Pakistan, the needs for import substitution was felt and the sponsors of the parent company made the decision to establish a small manufacturing unit for electrical goods. In 1951, a very modest beginning was made by setting up a small facility located in the basement of the offices of The Imperial Electric Company (Pvt.) Ltd., for the production of electrical accessories. With single minded initiative and efforts of late Mr. Ataur Rehman (the former Managing Director), the facilities were continuously upgraded and a full fledged facility was established in Lahore, Pakistan by 1954 under the same name of Electrical Equipment Manufacturing Co. Ltd. (EMCO). The first comprehensive Insulator Manufacturing Plant was in operation with the active participation, know-how and machinery coming from Japan and France. Environmental protection Law: There is only indoor pollution occurs in EMCO Industry in stone crashing process, which can be harmful for their employee¶s health and can also affect their work performance. To root out this alarming problem company purchased a De -Dust Plant in 1985. De-Dust plant inhale dust and mi it into water and dispose that water in to safe place. This plant is controlled by 5-to-6 persons committee. This committee also provides special mask, gloves and safety shoes at the dusted area for safety purpose.


Workplace safety & health: In EMCO for employee protection and bargaining with employee, an employee union was established in 1970. Registered with the name of EMCO Employee Union in ³CBA´. This union works for the permanent workers and provide safety by providing safe environment according to the workers demand. This union also talks with management on behalf of workers in case of strike or other workers related issues. This union is consist upon fallowing hierarchy President Vise President Secretary Vise Secretary Treasury Members of worker union are elected by voting within the company. Winning party submit prescribed fee to ³CBA´. All members of winning party provide their complete information in the prescribed form and submit it with prescribed fee. Their right and liabilities are mentioned in this form. There is no separate head office of EMCO Worker Union. Compensation and Bonus Provision: There are different criteria for different department for compensation and bonus payment. The quarterly bonus paid to the worker on the performance basis. In the start of energy crises the potential worker can not work in full capacity to meet bonus criteria. To eliminate this problem the company provides generators as well as gas cylinder in 2004. 0.5 % bonus is provided on each unit after meeting set target. And 1 % bonus for extra unit after meeting target. Provident Fund: The EMCO also provide the provident facility to their employee by deducting 10% of the basic salary, 10% of the employee basic salary as well as same amount form the employer is deposited with in employee provident fund. The lum-sum amount of provident fund is given to the employee after retirement.


Medical Facility & Allowances: Medical facility and allowances is also provided to their permanent employee in case of emergency. For the provision of Medical facility and allowances to their workers, the two plans are practiced.


1st they provide 45 % medical allowance of basic salary to permanent employee and workers.


2nd plan is for those workers who injured during work, Company suffer All medical expenditure of that employees.

Recommendation: The company is already providing all needed facility to protect their workers. All the workers are quite happy from their employer and management. The working environment is friendly; company can improve their performance by providing safe and sound environment.


Ali Akbar Group Address: 1-KM Bhoptian Chowk Defence Road, Off Raiwind Road, Lahore, Ph: 5321461-5.

Pakistan, being an agricultural country, has great potential to strengthen Agro based industry. To produce high yield, inputs such as seeds, fertili ers and chemicals playan important role. The market for agricultural inputs is very large i.e. over Rs. 100 billion per annum. This market is unstructured and fragmented. Companies operating in agricultural inputs have their fragmented dealers for selling their products such as Seeds, Fertili ers, pesticides, spray-machines, fuel etc. These companies do not have any arrangement to provide quality services to the customerstherefore; farmers have to face great difficulty in purchasing their required agricultural input, which als lead to o great losses as they have to visit many outlets to fulfill their farming needs. To cater to the growing requirements and increasing problems of farmers, Ali Akbar Group Launched its new business venture called ³Target Zarai Markaz´ To obtain better yield, every farmer needs certain consultancy services regarding the crop he wants to grow, keeping in view the condition of land and climate. Technical guidance helps farmers in deciding what crops to grow and how to grow and inputs to use at what itme. TARGET Zarai Markaz is a one stop solution to all the farmers needs. Corporate Information: y Angro Chemicals: Ali AkbarEnterprises Pak China Chemicals Pak China Manufacturing Dada Jee Corporation y Seeds: 10

Ali Akbar Seeds

Polymers: Pak China Polymer


LPG: LinksInternational AAMarketing

Environment Protection Act: As the main business of the organization is the manufacturing of the different pesticides so the internal as well as external environment is very much polluted. The manufacturing plant first was installed in the main city but because of the intervention of the government it was shifted to the rewind road Lahore. The abundance usage of nitrates in the manufacturing of the pesticides and other chemicals damaged the environment of the surroundings. The organization is providing proper masks to the workers and the employees of the organization but not doing anything for broad stakeholders. Workplace safety and Health: Under this law there are four types of acts
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Trade Union Act Payment of Bonus Act The Employee¶s Provident Funds Act The Workmen¶s Compensation Act

As far the question of workers who worked in the plant and the laws relevant to the workers, the whole work team is outsourced so the above laws are not relevant to them except the Employee provident fund. They are providing employee provident funds facility for there permanent workers. The 10 5% of basic salary is the contribution from the side of the employee and same is contributed from the


side of the employer and the amount is invested in the government securities. This whole working is done by the finance department of the Ali Akbar group. Consumer Protection Act: The end consumers of this organization are farmers. They have structured special teams which guide and give special training to their consumers regarding the usage of pesticides and chemicals in the fields. These chemicals are so dangerous that their misuse can kill their consumers so that is why the organization has to remain very conscious about the safety of their consumers. Recommendation: In keeping the current scenario of the area where the production plant of the organization is working, it¶s now become the residential area and also some universities¶ campuses are there so for the interest of broad stakeholders they should move their plant to some other industrial area. The purely implementation of bonuses act should be established in the organization.


Address: 2.5 Km off Manga, Raiwind Road, Pakist an Phone: +92 (0)42 111-786-645 Fax: +92 (0)42 538 3591 Website: w w

Legler Nafees Denim Mills Is a constellation of two giants from east and west, the joint venture is between Legler spa of Italy, which is the largest cotton textile producer in Italy, and the largest denim producer in Europe with a total production of 35 million meters and a market share in excess of 20%. Legler spa is also one of the largest producers of corduroy and flat cotton goods with an annual production of 20million meters. Legler is headquartered in Bergamo, Italy. The Nafees group is one of the oldest business groups on the Asian sub -continent tracing its roots back to 1886. Legler Nafees Denim Mills In 1994 was established as a fully vertical denim unit for fabrics and garments. In 1996 expanded the American operations in to Mexico where set up a yarn division as another joint venture between the Nafees group and the Alpha group, which is the largest industrial group in Mexico. Headquartered in Lahore, Pakistan now its name has been changed due to new Joint Venture, its new name is Azgard 9 limited. y y A place at the center of the universe inhabited by the gods. Vision Statement To become a Major Global Fashion Apparel Company y Mission Statement To become a $300 Million International Branded Jeans Business by 2007


Customer of Azgard9 Ltd:
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Diesel GAP. Guess Jeans. H&M Bershka. Zero. Tom Tailor. Matalan. Stadium. Rok. Tacoma. Cherokee. Jeans. Frankie Garage Upim Feggi Calzidonia Geoax

There are too many other customer which are being dealt by the azgard9 Ltd Now they are struggling to get order from Levis. Environment Protection Act: Their main business is jeans manufacturing and during this process pollution is created. The wastage of cotton is thrown out of the factory and during washing process water pollution is created and wastage is sent out of the factory and water is also polluted. Boiler has internal as well as external affects on people because its steam affects the environment as well as people. Workplace safety and Health:


Under this law there are four types of acts 1) Trade Union Act 2) Payment of Bonus Act 3) The Employee¶s Provident Funds Act 4) The Workmen¶s Compensation Act There is no registered trade union although there is a trade union but it is not according to that defined in the act. This trade union is not too much strong and much less hold over the organization. Now we come towards bonus from evaluation it is known that which worker deserves bonus and it tells about his performance and it is the way to inspire the worker to work hard to get bonus. Provident Fund is given to employees after retirement or in case of death of employees. The compensation of disable during work is given to workers and their proper medical checkup is taken so they over all act in a good manner. Consumer Protection Act: They take care of their consumers in all manners. All the defects of the product are taken care off to avoid any reason of failure of the product. Stitching, washing and final checking is made with great care.

Recommendations: 1) They should make proper sewerage system to avoid any type of disturbance in the environment to make it clean and clear. 2) Trade union should be registered because it has too many privileges and the workers remain satisfied and they work with more effort.


Pakistan Electric Limited (PEL).
Pak Elektron Limited Address: 14-Km, Ferozepur Road Lahore 54760, Pakistan Tel: (042) 5811952-57 URL:

Group Profile: In 1948, the Saigols migrated from Calcutta and initiated their business in Lyallpur (later named to as Faisalabad), the textile city of Pakistan, under the banner of Kohinoor Industries Limited

Kohinoor Textile Mills: The Saigols set up the first major textile unit - The Kohinoor Textile Mills under the umbrella of Kohinoor Industries Limited. The Kohinoor Textile Mill has state -of-the-art quality control from raw material to finished product manufacturing. Its laborato is top rated amongst the best ry laboratories in Pakistan for testing of textile raw materials, other inputs and yarn. Initial Capacity:25,000 spindles Current Capacity: 71,648 spindles

Pak Elektron Limited (PEL): In 1978, the Saigol Group of Companies purchased major shares of Pak Elektron Limited. At that juncture, the company was only manufacturing transformers and switchgears. With the Saigols in management, PEL started expanding its product range by entering into Air Conditioner manufacturing.

The PEL Group comprises two divisions 1. Appliances Division 2. Power Division


Pak Elektron Limited alone has a turnover of over 180 million US Dollars. Saritow Spinning Mills & Azam Textile Mills growing export orders, numerous successful power projects and greater than ever base of satisfied customers are evidence to these aspirations. Works of PEL are spread at two facilities in Lahore, the historical city and cultural hub of Pakistan. The two facilities cover an area of 1,033,200 Sq ft and 614,252 Sq ft respectively. Both are equipped with latest technology, state of the art testing facilities and environment friendly production process. At the heart of PEL¶s operations is its human resource. PEL invests heavily on professional development, skill improvement and well being of its human resource. PEL¶s employees are its most valuable asset and PEL keeps them very dear.

Environmental protection Law: The organization is registered under Environmental Protection Agency (EPA), so the issues relevant to environment are reviewed by the EPA. Organization used some dangerous gaseous compounds of carbons like chlorofluorocarbon gas in refrigerants and air conditioners which can cause a breakdown in earth¶s atmosphere. To minimize the harmfulness of carbon compounds they have introduced a new gas named R34, which is less harmful as compared to chlorofluorocarbon gas.

Workplace safety and Health: Under this law there are four types of acts
y y y y

Trade Union Act Payment of Bonus Act The Employee¶s Provident Funds Act The Workmen¶s Compensation Act

In PEL there is a trade union which is supported by the employer of the organization. And there is a very positive and good relation between the management and the president of the trade union. The management is very conscious about the health and safety of the workers inside the organization. They have dispensary for the workers and in case of any emergency they have their own ambulance. They provide their workers special masks while doing working in production plant. There is no concept of performance based bonuses. They just give bonus on profit based. There is a continuous annual increment in the salary of every employee and worker. There is a 5% deduction from the salary of the employees for provident fund.


Consumer Protection Act: As we have explained above that, this is basically deals in home appliances electronics. According to the Mr. Ali Kamran (learning and development manager of HR department) that PEL is trying to produce such products which should be durable and easy to use. PEL is very conscious about the satisfaction level of their customers on the basis of quality as well as durability and price of their products as compared to their competitors.

Recommendations: As the manufacturing unit of PEL is in the main city so for keeping in view the interest of other stakeholders they should move their plant to some other place so the environment of that place to their original position. They should introduce new type of Gas which should be environmental friendly. The purely implementation of bonuses act should be established in the organization.


Warid Telecom Address: Write to us at P.O. Box 3321, Lahore.
Phone: 0092 322 425 7777 Email:

Warid Telecom is a joint venture between Abu Dhabi Group & SingTel Group. Abu Dhabi Group entered into a strategic alliance with Singapore Telecom. Subsequent to this transaction in July 2007, telecom giant SingTel acquired 30% percent equity stake in Warid Telecom, Pakistan, for US$758 million. This partnership is part of a strategy to support Warid Telecom¶s continued growth and to enhance its market position. Abu Dhabi Group, one of the largest business groups in the Middle East and the single largest foreign investor in Pakistan. It has diversified business interests, offering strong financial resources and extensive management expertise that result in commercial success for several institutions. SingTel¶s investment in mobile operations include, Advanced Info Service (AIS)±Thailand, (21.4%), Bharti Telecom Group ± India (30.5%), Optus Telecom ± Australia (100%), Globe Telecom ± Philippines (44.5%), Pacific Bangladesh Telecom (PBTL) - Bangladesh (45%), Telkomsel ± Indonesia (35%) and Warid Telecom ± Pakistan (30%).

The Warid New Look: An evolution that strengthens the Warid identity while keeping the customers in focus Use of a more contemporary font & style to give a more approachable image This new logo encompasses the expanding reach of Warid not just in Pakistan but in an international footprint With our strengthened GPRS/EDGE network we would empower our customers to create their own life style networks


Premier Dairies (PVT) Ltd.
Premier Dairies was incorporated in 1999s an organization. The Head Office & Plant is situated at 2 km Defence road, Off Raiwind Road Lahore. Commercial production of dry milk powder was started in 2000. The powder was introduced in the market in bulk formand in consumer packing. In year 2004, company lunched UHT packed milk and Desi Ghee in Tins. In order to improve its processes and make the system more visible and to identify the shortcomings, Premier Dairies decided to implement the concept of TQM. As an initial step, the management opted to acquire ISO 9000 certification.

In 2000, it also started production of butter and ghee for its SHEREN MEHAL Outlets with brand name ANMOL . At start two types of powder were produced, SKIM Milk Powder & FULL CREAM Milk Powder.Later in 2001, Premier Dairies launched VEGETABLE FAT FILLED Milk Powder first time in Pakistan, which attracted many multinational companies.

In 2004, Premier Dairies installed UHT & Tetra Pak and launched its product with brand name VANIA Milk pack size of 250ml. Premier Dairies has its distribution network in all major cities of Punjab, NWFP and Baluchistan.

Major customers of Premier Dairies Powder Products are LU Biscuits, EBM, Unilever, Walls Ice Cream, Hico Ice Cream, Silver Lake Foods, Asian Foods (Mayfair), Pakistan Army and many Pharmaceutical companies.


Since 2000 Premier Dairies is working on the aspect of life to provide pesteurised milk in a healthy way. We collect best milk from its reliable resources. After its careful and different checkings procecces 'PURE & FRESH' milk is extracted and produced in the form of "VANIA" milk. Premier Dairies has other many valuable products too, mentioned below. For details follow the appropriate link.

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er Dairies has been working since 1998

Its major products are a) Milk (Vania) 

Full Cream Milk  Skimmed Milk  Vegi-Fat Milk  Tetra-pack Milk (Vania)  Tea Whitener (Taza Daam)
b) Juice (MOJO) 

Apple  Mango  Mixed Fruits
c) Butter d) Desi Ghee

Interview with Mr Farooq (Manager) 

Three major self collection centers 1) Abdul- Hakeem 2) Chichawatni



3) Arifwala  Tetra-Pack is used for packa i .  We et these papers from Packa es .  A Germa compa y COMI BLOCK tried to break the mo opoly of Packa es by the cheap but ood quality paper a d providi machi es cheaper  Packa es has mo opoly i the market 

Environment Protection Act: The dairy i dustry ha dles lar e volumes of milk, a d the major waste material from processi is the water. The water removed from the milk ca co tai co siderable amou ts of or a ic milk products a d mi erals. I additio clea i of pla t, results i caustic wastewater. Effects on ater The or a ic compo e ts of the wastewater from dairy processi operatio s ca be classified as protei s, lactose a d fat. These will affect the e viro me t i differe t ways depe di o their biode radability a d their solubility 


Workplace safety and Health: Under this law there are four types of acts 1) 2) 3) 4) Trade Union Act Payment of Bonus Act The Employee s Provident Funds Act The Workmen s Compensation Act

There is no trade union in this organization as for the question of Payment of bonus Act implementation; the bonuses are paid on performance bases If the target of a particular employee or the worker is not achieved then he is not eligible for any bonus payment. The provident fund is also not worked out in the organization. The workers are trained for the production process and if there is any injury occurred then the treatment expense is paid by the organization. The first aid training is also provided to the employees and the workers. Consu er Protection Act: To provide the best quality of products to the consumers there are different parameters established. These are the testing the milk when it come at the processing unit and if there is any mismatch between the standard and the milk quality then that milk is not used. The quality of the final products also checked so that there should be no claims from the customer sides. The manufacturing date and expiry date is also mentioned on the product which is produced by the organization which is calculated by the engineers.
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1) The manufacturing dairy industry uses two main methods of treating wastewater: biological treatment in extended aeration systems and by spray irrigation to pasture. 2) There is no concept of trade union in the organization so for the protection of rights of the workers there should be trade union established according to the prescribed law. 3) The bonuses are not given to the employee according to the law so they should implement the proper law in the organization.


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