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CORPORATE LEADERSHIP & SOCIAL RESPONSIBILITIES

ASSIGNMENT

Submitted by:

Ali Hassan (01-222182-003)


Bilal Masoud (01-222182-029)
Noman Haider (01-222182-022)
Mahmood Anwar (01-222182-027)

Submitted To:

Col Khalid Chohan


TABLE OF CONTENT

S No Topic Page No
1. Executive Summary 1
2. Introduction 1
3. Comparison Question 2
4. Personalities 2
5. Comparison of Background 3
6. Comparison of Leadership Characteristics 4
7. Comparison of Leadership Styles 6
8. Comparison of Ethical and Unethical Aspects 7
Executive Summary

Leadership is the art or process of influencing people so that they contribute willingly and
enthusiastically toward group goals. Leadership and motivation are closely interconnected.
By understanding motivation, one can appreciate better what people want and why they act
as they do. Leaders may not only respond to subordinates' motivations but also arouse or
dampen them by means of the organizational climate they develop. Both these factors are
as important to leadership. Purpose of this paper is to draw a comparison between two
prominent Pakistani businessmen for their leadership styles. What leadership traits they
have and its implication on their performance. What all ethical issue their personalities have
and how it affects the business environment. Business tycoons chosen for this study are:

 Malik Riaz Hussain a Pakistani business tycoon who is the founder of Bahria Town,
the largest privately held real estate development company in Asia.
 Mian Muhammad Mansha a Pakistani business magnate and billionaire who is the
founder and CEO of the Lahore-based international conglomerate Nishat Group &
the richest and highest tax-paying individual in Pakistan.

Introduction

Leadership has different meanings like leadership is the ability to get men and women to do
what they don't like to do and like it. Leadership can be defined as the art or process of
influencing people so that they will strive willingly and enthusiastically toward the
achievement of group goals. A good example is an orchestra leader whose function is to
produce coordinated sound and correct tempo through the integrated effort of the
musicians. The performance of the orchestra will depend on the quality of the director's
leadership. Every group of people that performs near its total capacity has some person as
its head who is skilled in the art of leadership. This skill seems to be a compound of at least
four major ingredients:

 The ability to use power effectively.

 The ability to have fundamental understanding of people.

 The ability to inspire the followers.

 The ability to develop conducive environment through leadership style.

Comparison Question

Compare two leaders of Business World/ Pakistani Politics with following aspects and
supported with relevant examples and logic:

 Leadership traits of both and their implications on the performance.


 Leadership Styles of both leaders.

 Ethical and unethical aspects of the personalities of both leaders.

Personalities

 Malik Riaz:

Malik Riaz is nothing short of an ambitious tycoon who is the founder of Bahria City,
Asia's biggest property development firm. Malik Riaz had a humble start as a clerk at
a Rawalpindi based construction firm. In the 1980's he finally became a contractor
himself and in 1995 signed an agreement with the Navy Bahria Foundation to
establish a gated society for the Pakistan Navy. This gave Malik Riaz the kick-start
he needed to start his own Real Estate Business using Bahria Town's name, which
led Pakistan Navy to issue a legal notice for its use. However, the witty Malik Riaz
avoided all these troubles by using their greed to lure all the right people in politics
and the army.

Throughout the 2000s, Bahria Town grew beyond conceivable dimensions as it


extended its roots throughout Islamabad Lahore and Karachi covering more than
45,000 square acres. As of 2016, Bahria city has a presence of 60,000 workers in
human resources making it Pakistan's largest private sector employer. Meanwhile,
thanks to the genius behind the scheme- Malik Riaz, Bahria Town Karachi is the
single largest real estate development project in all of Asia.

On paper Malik Riaz has a total net worth of $800 million between selling property
and purchasing it. Clerics, however, assume that his net worth has comfortably
reached $1 billion, accounting for the selling of property papers.

 Mian Mansha

Mian Mansha is an entrepreneur from Pakistan, and director of Nishat Textile Mills.
Mian Mansha inherited the cotton ginning company of his father in Faisalabad which
would later turn out to be one of Pakistan's largest conglomerates, Nishat Textiles
Ltd. By 2013 its value was more than $2.13 billion. In addition to making major
acquisitions, he simultaneously pushed his Nishat Textiles to grow deeper into the
country resulting in a full grasp of Pakistan's textile industry.

His greatest strength was to identify opportunities and his never-ending appetite for
growth and prosperity amongst all of the qualities listed above. He was never happy
with his business situation, and still wanted to move ahead. With taking advantage of
every geo-political situation in his country, he continuously strived to attain greater
business opportunities and expand his empire ever so little by little. He found
opportunities in situations where many businesses failed. He profited greatly from the
privatization push in the 1990s when he purchased the MCB and transformed into
one of Pakistan's largest banking organizations with a count of about 18,000
employees.

He would not stop there, as his appetite for expansion and gaining further foothold in
the market did not end. Finally, he would enter the country's Power segment by
striking deals with WAPDA by selling the excess power generated by Nishat Power
Stations that finally led to the birth of Nishat Power led by the son of Mian Mansha's
Son.

In 2008, Mian Mansha was named the richest Pakistani by the daily Pakistan. Mian
Mansha eventually made his mark by becoming the first Pakistani to appear on the
Forbes Millionaires List in 2010.

Comparison of Backgrounds

If we compare the histories of these two business leaders there are some interesting
differences and similarities between these two that will later give us an idea of how each of
them could reach these heights of influence and prosperity that no one else will ever touch.
It can be noted that Mian Mansha and Malik Riaz both had the unquenchable appetite for
strength and expansion in the event

of similarities. No amount of power and resources fulfilled their desire to extend their
territories and influence. Both had the dream and the force of will to accomplish
unprecedented attainments.

In case of differences their strategy and approach was to extend their territories and minor
variations in their way of thought. Both these leaders' culture was completely different from
each other. Mian Mansha was already raised in an industrial family and had a good start
from the beginning, while Malik Riaz had to start from the very bottom, that is to say the
clerical level and grow to a powerful tycoon from there. Mian Mansha widened his reach into
several market segments and reached well beyond his Textiles family business. He had his
hands on banking, hotels and electricity to name a few, in short he had the opportunity not
only to support many forms of business, but also to take on a whole new level of business.
Nishat Textile is one of Pakistan's largest textile conglomerates and MCB is among
Pakistan's 4 largest banks. In the meantime, Malik Riaz concentrated all his energies on
Bahria Town Real Estate and took it to a level that no one in Asia could compete with.

Comparison of Leadership Characteristics and their Effects

Leadership qualities are not birth right-given stuff. Over the course of time, they can be
produced, polished and refined as proved by both of these Leaders, albeit in a somewhat
different way as discussed in detail below. This will allow us to have a clear picture of how
these two personalities will become what they are in the present by their example:

 Awareness:
Awareness is one of every great leader's most important aspects because one needs
to have the intuition to know what's going on in his world. Only when a leader has the
courage to be completely aware of his surroundings will he take advantage of it and
use it to his ambitions.

Malik Riaz's vision lies in the very fact that he was conscious of the potential of the
country's real estate industry and how he could manipulate the vulnerabilities of
some of the country's most powerful men, leaning them against his ambitions. He
was very conscious of the fact that everybody has a price and manipulated the fact
during his empire's growth.

On the other hand Mian Mansha had a very different sense of awareness, the fact he
was able to realize the impact of the banking segment to forward his ambitions. His
single greatest achievement in this regard would be the procurement of MCB.

 Credence:

The very meaning of a person's state of mind is confidence in its very basic state.
This is a person's own willingness to trust his intuition and the very thing that helps
him to act upon his decisions and processes of thought. Without that very trait the
entire leadership idea will crumble. To be able to act on its decisions and inspire trust
in its staff, a leader must have the very courage to have courage in his ideas and
abilities. Malik Riaz Confidence in his ideology is almost super natural. His beliefs
and his ability to act on it has what allowed this man to become the very epitome of
success and the super figure head in his field.

On the other hand Mian Mansha was confidence lied in his ability to succeed in
whatever business he was given in charge of. He was confident of his ability to take
his business to new heights of success whether it was textiles, power sector or
Banking – it mattered none to him.

 Courage:

Courage is the building stone for leadership because nothing can be achieved by
safe play. At one point or another leader faces a decision which makes or breaks the
work of his entire life. Getting the confidence to take this sort of leap of faith has to be
present for some kind of success in a leader. Malik Riaz Bravery lied that he did not
yield to the political pressure exerted by the Pakistan Navy and found a way to
overcome it that opened the way for Bahria to become the giant.

Mian Mansha possessed a slightly different courage and it was the courage to think
outside of the box. His ability to have the passion and undeterred commitment to
succeed outside of his comfort zone is what allowed him to expand his empire. A
cowardly Mansha would have only been running the Industrial Units set up by his
Family and being content with what he has instead of venturing forward.
 Impulsivity:

Defined as the ability of a person to see things through no matter what obstacles he
may face. Conviction is one of the most fundamental traits of any successful leader
no matter who he is and how big or small his achievements are. Conviction is
required in every field of life, it the very ability of a person that defines his success or
failure.

Malik Riaz Conviction is a true inspiration for many young entrepreneurs who are
looking to make a name for them. Starting from a clerical level, it was his conviction
to succeed and not stay in his current position is what allowed him to become the
tycoon he is. His ability to never give up no matter what obstacles he faced is what
makes Malik Riaz the leader he is.

On the other hand Mian Mansha Conviction lies in his never give up attitude
regardless of going against the norms of business ideals. Mian Mansha simply put,
wanted it all and he did not care what he came up against. His super natural
conviction proved to every businessman that anything is possible as long as a person
has the conviction to follow his ideals.

 Assertive:

Assertiveness simply means to put your point and vision across and insert your
ideals into your people in a way they are influenced by your idealogy. Any leader
must have the ability to assert his ideas and ideals across his employees to make
them understand what he wants to achieve and his expectations from them.

Malik Riaz assertiveness can be realized from the very fact he wanted to expand his
ideas and how he made them a reality no matter how ridiculous they seemed. He
was able to transform from a petty contractor to one of the largest real estate
development agency in whole of Asia.

Mian Mansha assertiveness comes from the very fact that he ensured all his
employees knew he wanted to be the very best. His ability to succeed in the market
in all segments is the very evidence of the fact he ensured that all his employees
performed at very highest level to achieve maximum success no matter how difficult
the situation was.

Comparison of Leadership Styles

The very definition of a creative leader defines the character of Mian Mansha. His keen
sense of observation allows him to gain an advantage over others. He believes in giving a
free-reign to his managers, while managing his organization at a macro level. He allows his
mangers to run the day to day working while being very aware of all the situations going
way below at the bottom level of his organization. He is rumoured to talk to atleast 30
managers every day to get a daily report of his organization and making necessary moves if
needed. His professional way of running the business ensures a competitive environment
which allows success through merit. His way of leadership style does not allow for favors or
laxness when it comes to his business. He does not spare even his family members when it
comes to merit in his organization preferring to hire only qualified people for the positions
that have the drive and the capability to fulfill his vision.

While preferring to keep a backseat on the managing part, he is very quick to make internal
changes if it threatens to damage his reputation. The prime example would be firing of then
CEO of MCB Muhammad Manzoor who had been CEO for 7 years. He was swiftly issued a
24 hour notice to pack up and leave the organization due to the level of performance he was
showing. He was equally ruthless to his family members in case anyone defaulted on his
expectations. His belief on corporate leadership is further cemented on the fact he has
never entered politics regardless of the ample opportunities provided to him and preferring
to lead his organization at the front with his vision and ambition.

On the other hand Malik Riaz was a primary example of a corporate leader. As the founder
of Bahria Town Estate he poured his heart and soul into the project giving his all. He
demonstrated strength, tenacity and most of all business sense in all his endeveaours which
led to what Bahria Town is today. He was known to hire female workers because he
believed they were more diligent and hard working as compared to their male counter parts.
His motivation and desire was unmatched as he rose from rags to riches in what many
believed to be a impossible feat. His keys to success can be found in very little habits of his
which gave him the tools he needed to become the man he is today. He quickly rose to
become a community leader engaging with outside populace to further his ambitions and
promote goodwill. All his actions were eventually directly to one goal, success of Bahria
Town and the results speak for themselves.

He fought hard to promote the idea of self-employment for those who had families to feed
and no employers. He promoted his ideology by giving an opportunity of employment for
more than 21,000 workers and has created business opportunities for over 1000 local
suppliers. His efforts bore fruits in the form of increased remittances from oversees
Pakistanis who were given an opportunity to seek employment abroad.

Comparison of Ethical and Unethical Aspects of Personalities

Mian Mansha is can be somewhat credited as the ambassador for promoting merit based
rewards. He was a staunch believer of diligence and hard work and expected nothing less
from his employees. Only the fittest had a place in his organization and only those who
could carry the ambitions of Mian Mansha deserved a place in his organization. Not even
his Family members were exempted from his hand of justice as he terminated many of his
close friends and relatives from high positions due to lack of performance and results. A
prime example would be the termination of CEO of MCB in 2008 when a then CEO of 7
years was just given a 24 hour notice to pack up his bags and leave. He was man gifted
with emotional intelligence and tried his best to uplift the poverty stricken populace by
providing them working opportunities. In 1992 while visiting his Cement Factory in D.G Khan
he was met with violence in the Quarry when the locals welcomed him with gun fire. Instead
of giving a similar response, he ordered his managers to provide all of them with Jobs, no
matter how menial in nature in order to give them a earning chance. Eventually he built the
area’s first medical facility which gave him high respect with the locals and helped expand
his business.

While there are good sides to his personality, the fields are not always green. Mian Mansha
has been known to occasionally dabble in controversy. Due to Corona Virus Pandemic
troubled times have been witnessed by the public and in such times support and kindness
needs to be demonstrated. A leak emerged within the organization that 850-900 employees
were suddenly fired without any warning or talks from Nishat Apparel. As per the report,
employees logged in for the day and while logging out they found out they were no longer
part of the system. HR simply informed them that their status had been updated to resign
from office and not even labor courts could provide any justice to them. Such merciless act
in such troubled times make a person question this man’s intention whole joint net worth in
2020 is somewhere around $3 billion.

Regardless of all the controversy surrounding Malik Riaz, no one can deny the
philanthropist acts he has performed over the course of time. Malik Riaz initiated a series of
initiatives as part of the company’s new program which he termed as CSR guidelines. The
package eventually provided livelihood to 21,000 people and 100,000 families Livelihoods
for over 1 Million families through associated employment. He runs Hospitals, Schools,
Recreational Facilities, Security, Civic Amenities / Utilities, Emergency Services, Secure
Gated Communities. Committed to providing cheap housing he initiated steps to bridge the
annual deficit of 700,000 houses by providing housing solutions starting from Rs. 3.5 Lakhs,
catering to all socioeconomic classes. Malik Riaz through Dastarkhwan provides two meals
a day for the poor is a small contribution but, even small contributions can make a big
difference. His efforts can be judged from a simple fact that he established a separate
department that oversees all the charity on behalf of Bahria Town and ensures their part in
a good cause on a regular basis.

However Malik Riaz is no stranger to controversy and foul play. He is regularly found under
the watchful eyes of FBR, NAB and supreme courts over the course of time on multiple
charges of fraud, property crimes, tax evasion and land grab charges. An excerpt from
pakistanherald.com states that "National Accountability Bureau (NAB) is currently looking
into another application filed by a former military officer Lt-Col (retd) Tariq Kamal, which
states that the land on which Bahria town is constructed, and is further expanding, was not
acquired through legal means. It is alleged that Hussain has strong ties with Pakistan’s
military which assisted him in building a huge empire. Some claims go as far as saying that
a handful of the important serving army officers, bureaucrats and lawyers are practically on
Hussian’s payroll."

In 2016 his name was mentioned on the very famous and controversial Panama Papers. In
another incident “After being alerted by Pakistani authorities to sources of his income and
cash expenditure, the UK's National Crime Agency (NCA) began an investigation into Malik
Riaz Hussain. In December 2018, £20M was frozen by the UK High Court under the
Proceeds of Crime Act 2002. By August 2019, a total of nine court orders were in place,
enabling UK authorities to hold £140M. All of the court orders were made against the assets
and cash, and not their actual or beneficial owner. In December 2019, Malik Riaz came to a
civil agreement with the NCA, handing over £140M in cash, and the Grade II listed house 1
Hyde Park Place, valued at £50million. The NCA commented that the multimillion-pound
settlement did “not represent a finding of guilt”. Control of the £190M of assets and cash will
be returned under a UK High Court order to the Pakistani Authorities, who have advised that
they will ask the UK Courts to sell any assets and return the sum in cash. The amount was
transferred to the account set up by Supreme Court for the recovery of 460 billion rupees
fine imposed on Bahria Town in a separate case, going towards the reimbursement of the
fine.

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