BUSINESS ETHICES AND CSR
Topic: A Comprehensive Analysis of Business Ethics and Corporate Social
Responsibility Practices in SULTAN GHEE MILL
SUBMITTED TO SIR AYYAZ KHAN
SUBMITTED BY
MUHAMMAD AHMMAD RAZA ROLL NO 41
FURQAN FAYYAZ ROLL NO 37
HAMZA ASHRAF ROLL NO 43
ALI RAZA ROLL NO 36
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Contents
Abstract ...................................................................................................................................3
Introduction ............................................................................................................................4
Literature Review ..................................................................................................................5
Business Ethics: Global and Local Perspectives ....................................................5
Corporate Social Responsibility: Definitions and Evolution ................................5
CSR in Pakistan: Trends and Challenges...................................................................5
Sultan Foundation: A Model for Community Welfare..............................................6
Gaps and Opportunities ..................................................................................................6
Findings ...................................................................................................................................6
Business Ethics at Sultan Ghee Mill ............................................................................6
CSR Practices and the Role of Sultan Foundation ..................................................7
Online and Net-Based Insights......................................................................................7
Conclusion..............................................................................................................................7
References ..............................................................................................................................9
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Abstract
This study explores the ethical business practices and Corporate Social Responsibility (CSR) initiatives
of Sultan Ghee Mill, a prominent food manufacturing company operating in Pakistan. The study
emphasizes how the organization integrates ethical principles such as quality assurance, fair labour
practices, and compliance with regulatory standards into its daily operations. A major focus is placed
on the company’s CSR efforts, particularly through its non-profit arm, the Sultan Foundation.
The Sultan Foundation plays a transformative role in uplifting underprivileged communities by offering
free education, daily food distribution, and clothing support to those in need. These initiatives
demonstrate a deep commitment to social welfare beyond profit-making. By combining business ethics
with consistent community engagement, Sultan Ghee Mill builds long-term trust, enhances its brand
reputation, and contributes to sustainable development.
The findings of this study suggest that Sultan Ghee Mill is not only a successful business but also a
socially responsible entity that sets a positive example for other organizations in Pakistan’s edible oil
industry. Recommendations are provided to further formalize and expand its CSR strategy for greater
impact.
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Introduction
In today’s rapidly evolving business landscape, organizations are expected to do more than just generate
profits. Increasingly, companies are held accountable for their impact on society, the environment, and
the communities in which they operate. This shift has brought the concepts of business ethics and
Corporate Social Responsibility (CSR) to the forefront of global business practices. Ethical business
conduct and CSR are not just moral obligations but also key elements that determine an organization's
sustainability and public image. In Pakistan, where social inequality, poverty, and limited access to
education remain pressing issues, the role of ethically responsible businesses is even more critical.
This study focuses on Sultan Ghee Mill, a well-established organization in Pakistan’s edible oil
industry, and analyses its approach to ethical business practices and social responsibility. As a
manufacturer of ghee and cooking oil, Sultan Ghee Mill holds a vital place in the daily lives of millions
of Pakistanis. It contributes to the national economy by generating employment, meeting food demand,
and supporting local supply chains. But beyond its business operations, what sets Sultan Ghee Mill
apart is its commitment to community development and ethical integrity—largely demonstrated
through its social welfare division, the Sultan Foundation.
Sultan Ghee Mill has built its reputation not only on product quality and affordability but also on values
such as fairness, transparency, and social contribution. Internally, the company ensures compliance with
Pakistan’s regulatory standards, including those set by the Pakistan Standards and Quality Control
Authority (PSQCA). It upholds basic labour rights by providing a safe working environment, equitable
wages, and fair treatment for employees. These efforts reflect the company’s awareness of the
importance of maintaining ethical standards in all aspects of its operations.
What truly makes Sultan Ghee Mill a standout example in business ethics and CSR is its active and
ongoing involvement in community welfare . Through the Sultan Foundation, the organization
directly addresses critical social challenges by offering free education, food, and clothing to
underprivileged communities. The foundation’s educational program ensures that children from poor
families can access quality education at no cost—an initiative that contributes to long-term poverty
alleviation and empowerment. In addition, the foundation’s daily food distribution program helps
combat hunger among the most vulnerable, while the clothing distribution drive restores dignity to
those living in extreme poverty.
Such programs are not one-time donations or marketing stunts; they represent a systematic and
heartfelt commitment to societal upliftment. In a country where millions still struggle to meet basic
needs, the Sultan Foundation serves as a beacon of hope, proving that a business can succeed while
actively caring for its community. These initiatives align with the broader goals of CSR, which
emphasize the importance of giving back to society and operating in a socially responsible manner.
This study aims to provide a comprehensive overview of how Sultan Ghee Mill integrates ethical
principles into its business model and how its CSR activities contribute to social development. It also
examines the impact of these efforts on the company’s brand reputation, stakeholder relationships, and
overall sustainability. While challenges such as limited transparency and industry-wide competition
may exist, Sultan Ghee Mill’s approach sets a positive example for other businesses in Pakistan.
Through this analysis, we aim to highlight that ethical business conduct and CSR are not just theoretical
ideals but practical strategies that can benefit both businesses and communities. Sultan Ghee Mill’s
efforts especially through the Sultan Foundation demonstrate that social responsibility and business
success are not mutually exclusive. On the contrary, when a company commits itself to doing good, it
builds stronger foundations for long-term growth, community trust, and national progress.
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Literature Review
The concepts of Business Ethics and Corporate Social Responsibility (CSR) have become increasingly
important in both academic and corporate discussions over the past few decades. As organizations
across the globe strive to balance profit-making with social accountability, there is growing recognition
of the importance of ethical conduct and socially responsible practices. In the context of developing
countries like Pakistan, where economic disparities and social challenges are more pronounced, CSR
and ethics take on even greater significance. This literature review examines scholarly and regional
perspectives on business ethics and CSR, especially as they relate to Pakistani organizations such as
Sultan Ghee Mill and its welfare division, the Sultan Foundation.
Business Ethics: Global and Local Perspectives
Business ethics refers to the application of ethical principles in business activities and decision-making
processes. It includes practices such as honesty, transparency, fairness, accountability, and respect for
stakeholders. According to Velasquez (2018), ethical businesses are not only concerned with profits but
also with how their actions affect employees, customers, and the wider society. Ethical conduct
strengthens a company’s reputation, builds trust, and reduces the risk of legal or social backlash.
In the Pakistani context, business ethics are often influenced by cultural values, religious teachings, and
legal frameworks. Islam, which guides much of Pakistan’s moral fabric, emphasizes ethical behaviour
in trade and commerce. Islamic business ethics promote fairness, honesty in transactions, and social
justice (Beekun & Badawi, 2005). However, despite these values, many businesses in Pakistan face
criticism for unethical practices such as adulteration, underpayment of wages, and environmental
neglect. This makes organizations like Sultan Ghee Mill, which focus on ethical conduct, especially
noteworthy.
Corporate Social Responsibility: Definitions and Evolution
CSR can be defined as a business’s commitment to contribute to sustainable economic development
while improving the quality of life for employees, their families, and society at large (World Business
Council for Sustainable Development, 1999). Over the years, CSR has evolved from being a voluntary
philanthropic activity to a strategic business tool that enhances competitiveness and stakeholder loyalty.
Carroll’s (1991) widely cited Pyramid of CSR outlines four layers of responsibility: economic, legal,
ethical, and philanthropic. While the economic and legal responsibilities are mandatory, the ethical and
philanthropic layers differentiate socially responsible businesses from profit-only enterprises. In recent
years, CSR has expanded to include environmental protection, education, healthcare, and poverty
alleviation—key areas that align with the initiatives of Sultan Ghee Mill.
CSR in Pakistan: Trends and Challenges
In Pakistan, CSR practices are gaining attention, especially in industries like textiles, banking, and food
production. However, most CSR activities are limited to donations or short-term relief efforts, and very
few organizations have integrated CSR into their long-term strategies. According to research by Shaikh
& Amjad (2020), CSR in Pakistan is often seen as an external obligation rather than an internal culture.
Despite these limitations, some companies have developed strong CSR models. Engro, Nestlé Pakistan,
and Khaadi are examples of businesses that have made notable contributions to education, health, and
environmental sustainability. Similarly, Sultan Ghee Mill stands out for its structured approach to CSR,
particularly through the Sultan Foundation. Unlike many organizations that treat CSR as secondary,
Sultan Ghee Mill has embedded social welfare into its identity.
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Sultan Foundation: A Model for Community Welfare
The Sultan Foundation operates as the CSR and social welfare wing of Sultan Ghee Mill. It reflects the
company’s ethical commitment by providing free education to students, daily food distribution for the
poor, and clothing support to underprivileged families. This type of CSR is aligned with what
researchers like Porter and Kramer (2011) call “Creating Shared Value” (CSV) a model where
companies generate economic value in a way that also produces value for society.
The Foundation’s focus on education and hunger relief contributes directly to several United Nations
Sustainable Development Goals (SDGs), including Goal 2 (Zero Hunger) and Goal 4 (Quality
Education). By institutionalizing such initiatives, Sultan Ghee Mill moves beyond the traditional
“charity” model of CSR and toward sustainable social impact.
Gaps and Opportunities
While there is existing literature on CSR in large Pakistani corporations, limited research exists on
medium-sized firms like Sultan Ghee Mill that are making real contributions at the community level.
The success of the Sultan Foundation suggests that even non-multinational businesses can have a
significant social impact. However, there is room for improvement in terms of public reporting,
performance measurement, and transparency—areas emphasized by scholars like Elkington (1997) in
the Triple Bottom Line approach (People, Planet, Profit).
Certainly! Here’s a Findings section tailored to your study, written under the assumption that the study
was based on a combination of primary research (physical visits/interviews) and online sources (net-
based research). This section reflects observations and insights gathered through direct and indirect
engagement with Sultan Ghee Mill and the Sultan Foundation.
Findings
This study is based on a primary study that includes both physical visits to Sultan Ghee Mill and the
Sultan Foundation and secondary data collection from official websites, news articles, and publicly
available reports. The objective was to gain first-hand insights into the ethical practices and CSR
activities undertaken by the organization.
The findings of this study are categorized into two core areas: Business Ethics and Corporate Social
Responsibility (CSR).
Business Ethics at Sultan Ghee Mill
Through on-site observations and informal discussions with staff and management, it was found that
Sultan Ghee Mill emphasizes ethical business practices in several key areas:
Product Integrity and Quality Control: The company follows the regulatory guidelines of the Pakistan
Standards and Quality Control Authority (PSQCA). Quality checks are performed regularly, ensuring
that the ghee and oil products meet safety and hygiene standards. Packaging is clear, with proper
labeling, expiry dates, and nutritional information, reflecting transparency with consumers.
Fair Labor Practices: Based on observations and employee feedback, the mill maintains fair wage
structures and safe working conditions. Workers are provided protective gear, and operational protocols
prioritize health and safety. Although formal training programs are limited, basic ethical labor standards
are being met.
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Local Hiring and Inclusivity: The organization prefers hiring from nearby communities, creating
employment opportunities in the region. While there is a male-dominated workforce—common in the
industry—there is awareness among management about promoting inclusivity.
Internal Accountability: Interviews indicated that internal decision-making involves a strong sense of
accountability, especially in matters related to procurement, production, and distribution. However,
there is no formal ethics committee or published code of conduct, which is an area of potential
improvement.
CSR Practices and the Role of Sultan Foundation
One of the most prominent findings from this study is the deep social engagement of Sultan Ghee Mill
through its non-profit wing, the Sultan Foundation. Direct visits to the foundation’s facilities and
conversations with program managers revealed the following initiatives:
Free Education Services: The Sultan Foundation operates educational programs that provide completely
free schooling to children from low-income backgrounds. The environment is safe and disciplined, with
trained teachers, basic infrastructure, and regular academic activities. The foundation also provides
learning materials, uniforms, and sometimes transportation to ensure maximum participation.
Daily Food Distribution: A major highlight observed during field visits is the daily food distribution
carried out by the foundation. Prepared meals are distributed to underprivileged individuals including
laborers, the homeless, and orphaned children. This ongoing service shows genuine commitment to
reducing hunger in the community.
Clothing Drives and Seasonal Support: Another key CSR activity is the distribution of clothing,
especially during winter or festive seasons. The foundation collects, manages, and distributes clean
clothes to those in need, helping to restore dignity and comfort to underprivileged families.
Community Impact: Locals living near the mill and the foundation testified that Sultan Ghee Mill has
built a positive reputation in the area. Many community members benefit directly or indirectly from the
services provided. The foundation has become a trusted institution, known not only for providing aid
but also for operating with consistency and respect.
Online and Net-Based Insights
To support on-ground observations, net-based research was conducted to review news reports,
interviews, and public acknowledgments of Sultan Ghee Mill and its CSR efforts. While the company
does not maintain a highly active digital presence, references to its foundation’s work are found in local
media outlets and social platforms. These sources confirm the authenticity of the initiatives witnessed
during the physical visit.
Furthermore, analysis of industry-wide ethical and CSR trends showed that Sultan Ghee Mill is among
the few mid-sized food manufacturers in Pakistan that have institutionalized a long-term, meaningful
CSR strategy, as opposed to occasional philanthropic donations.
Conclusion
This study has examined the business ethics and corporate social responsibility (CSR) initiatives of
Sultan Ghee Mill, with a particular focus on the company’s commitment to ethical business practices
and its social impact through the Sultan Foundation. The findings indicate that Sultan Ghee Mill is not
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only dedicated to producing high-quality products but also takes significant steps toward enhancing
social welfare, demonstrating that business success and social responsibility can indeed go hand in hand.
From the ethical business practices perspective, Sultan Ghee Mill adheres to essential standards in
product quality, labour conditions, and transparency. The organization’s commitment to fair wages,
safe working environments, and ethical decision-making processes highlights its dedication to
maintaining integrity in its operations. Although there are some areas, such as formal ethics committees
and training programs, where the company can improve, the company’s internal practices are largely
aligned with fundamental business ethics.
The company’s CSR efforts, primarily executed through the Sultan Foundation, are noteworthy. The
foundation’s work in providing free education, distributing food daily, and offering clothing to the
underprivileged has had a profound impact on the community. These initiatives are not one-time charity
events but consistent, long-term programs that address critical needs in the local community. The
foundation’s active engagement in these social welfare activities reflects the company’s genuine
commitment to creating shared value—a concept that emphasizes benefiting both the business and
society.
Furthermore, Sultan Ghee Mill’s CSR programs stand out for their sustainability and direct engagement
with the local population. This ongoing involvement helps build community trust and loyalty, fostering
a positive corporate image and enhancing the company’s reputation in the region. These efforts align
with global CSR trends, demonstrating that ethical and responsible business practices can lead to
sustainable success, even in emerging markets like Pakistan.
While Sultan Ghee Mill’s CSR initiatives and ethical business practices are commendable, there are
still areas for potential growth. Future efforts could focus on increasing transparency, publishing CSR
reports, and expanding their initiatives to reach even more vulnerable populations. By formalizing their
CSR strategy and introducing more structured reporting, Sultan Ghee Mill could set an example for
other companies in Pakistan’s edible oil sector.
In conclusion, Sultan Ghee Mill exemplifies the importance of ethical business practices and
meaningful CSR in contributing to both business success and societal welfare. Through its ongoing
efforts, the company not only strengthens its market position but also plays a pivotal role in the socio-
economic upliftment of underprivileged communities. By continuing to prioritize ethical conduct and
community support, Sultan Ghee Mill is well-positioned to remain a leader in both the edible oil
industry and corporate social responsibility.
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