Sectoral Review The above details refer to how different businesses tackle elements within the Responsible Business Framework, ranging from Governance and Management to Financial Viability, and how they respond to internal and external issues related to each principle. However, in Pakistan, businesses are faced with more explicit conflicts, particularly cases of violent confrontation which may or may not be linked to terrorism. It is crucial to note the drivers, the causes and the subsequent impact of these conflicts on various sectors, as well as the specific businesses response varies across different locations. It is important to note how responsible business practices help mitigate internal and external conflicts within companies. The following summarizes findings from direct inquiries from companies representing the listed sectors. These findings lay out conflicts as well as the various company responses developed to handle and manage conflicts faced at the sectoral level. Sectors Conflict Impact Affected Response Oil &Gas & hurdles unequal resource initiatives to counter owner business distribution regional disparity strikes and protests development Textile conditions of revenue communities for uninterrupted fuel crisis supply export policy unrest exporting & protests policy Automobile & protests cost security options businesses turn-over skill diversity development Telecom linked to in retail militancy trade technology & IT investment risk environmental regulatory regime compliance Hospitality businesses loss perception attrition business support of revenue restrictions client turnout promotion Banking security risk inflow of strict security investment higher policy by enforcing outflow of savings controls investment training and influence for contracts for locals Loans Textile Industry
Sectoral Review The above details refer to how different businesses tackle elements within the Responsible Business Framework, ranging from Governance and Management to Financial Viability, and how they respond to internal and external issues related to each principle. However, in Pakistan, businesses are faced with more explicit conflicts, particularly cases of violent confrontation which may or may not be linked to terrorism. It is crucial to note the drivers, the causes and the subsequent impact of these conflicts on various sectors, as well as the specific businesses response varies across different locations. It is important to note how responsible business practices help mitigate internal and external conflicts within companies. The following summarizes findings from direct inquiries from companies representing the listed sectors. These findings lay out conflicts as well as the various company responses developed to handle and manage conflicts faced at the sectoral level. Sectors Conflict Impact Affected Response Oil &Gas & unequal resource distribution strikes and protests hurdles business owner initiatives to counter regional disparity development Textile conditions crisis export policy & protests of revenue unrest communities for uninterrupted fuel supply exporting policy Automobile & protests diversity cost turn-over businesses security options skill development Telecom & IT linked to militancy environmental regulatory regime in retail trade risk technology investment compliance Hospitality attrition restrictions businesses client turnout loss of revenue perception business support promotion Banking security risk investment influence for Loans inflow of investment higher outflow of savings strict security policy by enforcing controls training and contracts for locals Textile Industry
RBIPBPPBusinessResearchDec2012F.docx