In this case study Pakistan has been referred to as the emerging market.

One of the very important functions of good corporate governance is to protect the rights of the stakeholders. In Pakistan the stakeholders are given importance in decision making and performance enhancing mechanisms. Pakistan was rated better as compared to its neighboring countries in the protection of the creditors' rights. Specific laws and courts protect the rights of the creditors plus the creditors can appoint a member of the board in some cases. When it comes to the rights given to the employees, the absence of some laws (as in the case of whistle blowing) make Pakistan a comparatively lower rated country in this regard. Taken in ethical terms the employees cannot act as the whistle blowers because no specific law ensures them any protection against it. The workers and the workforce of Pakistan are the positive contributors to the good corporate governance in Pakistan. In addition, their rights are also protected by some laws and regulations. In Pakistan, the stakeholders are contributing positively to the corporate governance and this thing needs to be utilized effectively for the betterment of the CG in Pakistan. Stakeholders play a vital role in the implementation of the CSR activities in Pakistan. What is needed the most currently is the active co-ordination among all the stakeholders in Pakistan. Another issue that needs to be dealt with is the pace with which the focus is to be shifted towards CSR activities. Pakistani people still have that cost-quality sensitivity and a little focus is on the CSR activism on the part of companies. Currently the stakeholders which are facilitating and working towards the shift of this focus are the society/people and media. Some of the hurdles in the effective implementation of the CSR activities in Pakistan are as follows: Lack of coordination among the stakeholders with the corporate sector Wrong perception of CSR as a charity and a compulsory imposition Absence of free market and fair competition in Pakistan Lack of information dissemination, reporting and proper disclosures Lack of awareness (about the rights and their protection) on part of the stakeholders Absence of suitable standards to be adopted for the effective implementation and measurement of CSR activities in Pakistan Absence of a unified plan to deal with the problems faced in the pursuit of CSR activities, lack of awareness on part of the stakeholders and the absence of a forum to make an actionable plan for the implementation of CSR activities in Pakistan

The question that needs to be answered is whether the objective of the corporate sector of Pakistan should be the profit maximization, shareholder's wealth maximization, growth, stability, goodwill or the CSR compliance. The answer to this question is that these all are somehow inter-related as mentioned in the paper as "the general acceptance, reputations and goodwill could not be attained without assuming the social responsibility, therefore in a long run the maximization of shareholder value is directly related with assuming the CSR." The effective implementation of the Good Corporate Governance and the CSR requires the Pakistani corporate sector to overcome the previously mentioned hurdles. SECP can play a pivotal role in helping the corporate sector and the stakeholders in achieving this goal.

Corporate Social Responsibility, the Role of Stakeholders and Sustainable Development "A Case Study of Pakistan"

NAME:

Warda Khawar

ROLL NUMBER:

048

CLASS:

MBO-3

SUBMITTED TO:

Sir Uzair Farooq

SUBMITTED ON:

29th March, 2012

COMSATS Institute of Information and Technology, Lahore