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Analysis of the CSR activities of ACI Ltd.

CSR activities for SIDR affected areas

Company Profile
In 1973, the UK based multinational pharmaceutical company, ICI plc, established a subsidiary in Dhaka, known as ICI Bangladesh Manufacturers Limited. In 1992, ICI plc divested its share to local management, and the company was renamed Advanced Chemical Industries (ACI) Limited. ACI introduced the concept of quality management system by being the first company in Bangladesh to achieve ISO 9001 certification in 1995 and follows the policy of continuous improvement in all its operations. ACI maintains a congenial and supportive relationship with the healthcare community of Bangladesh, with the belief that business excellence can only be achieved through pursuit of quality by understanding, accepting, meeting and exceeding customer expectations. The management of ACI, a competent team of professionals, thus operates with a progressive attitude to provide effective solutions to satisfy the customers needs, through its products and services of uncompromising quality.

Impact of SIDR on local community:

On November 15, 2007, the SIDR cyclone hits the coast of south-west Bangladesh with winds of up to 240 km per hour. Since then, more than 8.9 million people had been directly affected by the cyclone which caused extensive damages to houses, water and sanitation infrastructures, harvests, food stocks and livelihoods, also killing livestock and destroying fishing material and other income generating assets. Cyclone SIDR and two preceding floods resulted in at least 4,400 deaths disrupting the lives of millions of people in some of the poorest and most vulnerable areas of the country.

Damages include mainly loss of fishing boat and gears, factory equipment, tools of self employed workers, damage to fish ponds, loss of livestock, destruction of common assets such as roads and electric network, destruction of shops and other business premises and the loss of income earning human capital in many of the households hit by loss of human life. SIDR damaged more than 1.6 million acres of cropland, wash away food storages and personal stockpiles and destroyed fruit trees.

Impact on regional business

When the Hurricane SIDR struck communications and electricity supplies were snapped across the country. Most parts of the coastal region were virtually blacked out during the night. The casualties included a huge loss in pharmaceutical business too, as there were some companied near the coast. Loss estimation after this huge blaster is pretty tough. This directly hampers the regional sale. Our company directly runs by raw materials along with other supplies. By nature, indirect losses are harder to measure than losses stemming directly from physical damage. Far less obvious are losses such as those of industries that are forced to close down because they lack critical power supplies, firms with power that lose business because suppliers or buyers lacked power and firms that lose business because employees of firms affected by the power outage have reduced incomes and consequently spent less. Compared to a natural disaster's direct effects, indirect losses are more difficult to identify and measure, and are generally spread over a much wider area.

Impact on regional business (may happen more if no action is taken)

Demand of the market cannot be meet due to the lack of raw material processing, manpower and other established and running supply. More over as manpower will be engaged definitely their personal recovery too. That will be included as a manpower loss. And the other important thing considering Bangladeshi background is in this country most of the pharmaceutical company does not have any emergency recovery plan. Regular contact with patient and other delegates and customers will be disrupted and hence will be the reputation. Therefore, it is important to take steps to protect business before a natural disaster strikes. By integrating protection from natural disasters into company's risk-reduction measures, one can safeguard both customers and the community at large. Or there will be permanent loss of both regional and global business.

Companys CSR objective and How to achieve this objective

In recent years, the concept of Corporate Social Responsibility (CSR) has become increasingly important to the general business community and to those who seek to influence the activities of companies and industries. This concept is multi-dimensional, encompassing a wide range of business practices (e.g. health and safety policies, community involvement, stakeholder dialogue, adherence to regular codes of conduct) but also covering activities that go beyond companies' operations.

Customer Loyalty Customer retention and loyalty have long been primary objectives of companies building for long-term success. Thus, companies that want to develop strong customer relationships must proves themselves to questioning and cautious consumers. This means consistent and ethical actions and transparent communication that avoids misleading and misinterpretation.

Improved Employee Productivity Leveraging the capabilities of your most important assets -- your employees -- is another primary objective of CSR, which is highlighted by the As You Sow Foundation. Incorporating employees into business decisions is one of the main ways managers can show trust in employees.

Better Community Relations Moment emphasizes the importance of community involvement to fulfill the social requirements of CSR. This means participating in community activities and giving back through employee volunteer programs and charitable contributions. This demonstrates consideration for your role in the community, beyond just profiting from it to give stronger returns to shareholders. Additionally, companies are closely monitored by the government and environmental groups for green-friendly operations. This includes recycling programs, efficient use of natural resources and reduction of waste.

Recommendation for Community Involvement that includes: Housing

The total loss to the housing sector as BDT 57.9billion which includes both partial and total damage to housing. The preliminary needs assessment for the housing sector identified an estimated cost of BDT 14 billion. The calculations for losses to the housing sector took into account both the level of vulnerability of the household (which, in turn, require greater assistance in the rebuilding process), as well as the variability in quality of housing. This data was then further divided by district to give a comprehensive assessment of the total damage to the housing sector, as well as the estimated needs.

Estimation of Costs
It is estimated that 70 % of housing is kutcha and 30 % semi-pucca in the affected areas On average, a kutcha house costs BDT 10,000 and the semi-pucca house roofing with CI sheet BDT 50,000. It is estimated that a fully damaged semi-pucca house needs repairing costs about BDT 25,000 and for a partially damaged semi pucca house needs about BDT 10,000. It is also assumed that an amount of BDT 10,000 needs to repair a fully damaged kutcha house and BDT 5,000 for partially damaged kutcha house. For kutcha houses, it is BDT 50 million (5000 houses) and For semi-pucca houses, it is BDT 50 million (1000 houses) The estimated amount of repair of partially-damaged houses is BDT 15 million (1000 houses) for kutcha houses and semi pucca houses,

WATER & SANITATION SYSTEM: Impacts: Water is one of the highest priorities after food assistance. People in these districts traditionally use pond water for drinking and other household uses. Some ponds are damaged by saline inundation, dead animals and garbage and these will remain so until rains start in June 2008. Contamination of safe water sources created scarcity of safe water for drinking, washing and bathing. No of damaged tube wells and ponds at worst affected and badly affected 12 districts. Sanitation needs are significant for an estimated 1.3 million people. For some of the worst affected areas, physical damage to household latrines was fairly common with one estimate putting the percentage of slab latrines damaged or destroyed as high as 70 percent.

Cost Analysis: It is estimated that about 12,984 of 221,039 total numbers of mechanized water sources (tubewells, rain water harvesters, pond sand filter etc.) were affected of which 10,951 (84%) have been rehabilitated. In addition, we can set up 25 mobile water treatment plants which will provide an average 2,000 liters per hour potable water each. Total 354 new tube-wells can be installe. A total of 145,831plastic jerry cans we can distribute in worst and badly affected areas. Total 1 million of Water Purification Tablets (WPT) will be distribute among the affected people. About 5 thousand kg of bleaching powder and 1000 kg of lime will distribute for sanitization of water sources. About 20 thousand liters of bottled water will distribute among the affected people to meet their immediate need of drinking water.

Team/unit/dept to be involved: We will involve our Medical Representative Officers (MRO) and also some representatives from different departments. Because MRO officers are very much familiar with different areas for their job. So that they can easily & very quickly move to any part of the affected areas to provide the necessary medicines and other important stuffs. And financial department will be involved for analysis the cost of making the houses and the sanitation system which we will provide to the victims of the SIDR affected areas.

Deadline to the activities

Our goal is to rebuild housing and water & sanitation system of the affected area within one year.

References: 1. Google
2. Newspaper articles