ASSIGNMENT NO.

2
BUSINESS ETHICS
INTERVIEW REPORT RELATED TO UNETHICAL ISSUES IN
FIRM

 NAME: Hamza Imtiaz

 ROLL NO: BBA-13-F-105

 DEPARTMENT: BBA (Hons.)

 SECTION: B

 SUBMITTED TO: Sir Hashim Ali

 Company Name

Pakistan Steel mills

History

After independence in 1947, it did not take long for Pakistan to come to the realization that progressive
industrial and economic development would be impossible without the possession of a self-reliant iron
and steel making plant. The dependence on imports would cause serious setbacks to the country along
with an extortionately high import bill which would be impossible to support.

The initial idea for a domestic iron and steel mill was put forward in the first five year plan of Pakistan
(1955 - 1960). Debates over the manufacturing process, supply sources of the requisite machinery and
raw materials, plant site, domestic ore versus imported ore, ownership pattern, product mix and above all
foreign financing credit kept the project on hold for a considerable time.

In 1968 besides other factors, it was considered by the Government of Pakistan that a basic steel industry
should be established in the public sector, as public sponsorship of the project would enable integrated
development of the steel industry in the country. As a result on the 2nd of July, 1968 Pakistan Steel Mills
Corporation was setup as a private limited company in the public sector in accordance to the Companies
Act of 1913, with the objective to establish and run steel mills at Karachi and other places in Pakistan.

Unethical Issues and Practices

As I conducted an Interview between a Supplier, two Workers Salim Ahmed and Akhtar and my Friends
who know very much about Pakistan Steel Industry in Karachi and its History of Unethical Practices.

So the Answers and Replies that I got from them about Unethical issues and more like Corruption in the
Industry was worse. Combining everything there are 3 Main Unethical Issues, which are mentioned
below;

The first thing he said that PSMC’s recruitment policies are the most common unethical issue in the
company. He said that the bureaucracy involved in the selection process of PSMC’s employees is playing
its parts in the selection of people at high posts of top-management rather than skills or merit of the
people. For example, when PPP comes, it fires people from Punjab side and employ Sindh is and
similarly, when PML (N) or any other party from Punjab comes, the structure of people who make up the
company also changes.

Secondly, the privatization issue resulted in the sacking of Chief Justice of Pakistan. This shows the
hunger and greed of some people in the government of Pakistan. These people were prepared to take any
action in order to sell PSMC, at a price which benefits them. This is unethically because these people are
representative of people and are civil servants and their duty holds that they work for the betterment of the
organization they are assigned to rather than using unfair means which involves harming the organization
to fill their own pockets.

Thirdly, the people who are controlling PSMC are not loyal to their firm and are not running it in the way
which is best for the company but are looking for their own benefits. The employees PSMC are not
observing their duties to the firm and taking bribes and gift.