Governing Principles

CSAPL conducts business in a responsible manner - with honesty, transparency and integrity and expects the same from all partners and stakeholders. Guided by our Core Values, we insist on doing what is right and this underpins the functioning of our organization. We also insist that all transactions be open, transparent and within the legal framework culminating in responsible financial reporting.

We comply with the Pakistan Code of Corporate Governance and other applicable regulations of the Securities and Exchange Commission of Pakistan, as well as the listing regulations of the Pakistan Stock Exchange.

Everyone at CSAPL and everyone who acts on behalf of the Company is required to act in accordance with the highest standards of personal safety, environmental performance, governance and ethical business conduct.

Anti-Bribery and Facilitation Payments

CSAPL does not use bribery as an instrument for any business or financial gain and prohibits the offer, payment, solicitation or acceptance of bribes, improper benefits and facilitation payments in any form. This includes the use of third parties, including agents and representatives. Crescent Steel also has controls over the provision and receipt of gifts and gratuities, to customers, suppliers, public officials or relatives or associates of public officials. The giving or receiving of gifts or hospitality is prohibited in all circumstances that may be regarded as compromising personal judgement, the judgement of others, or conflicts in any way with Crescent Steel’s purpose, values and behaviours. Employees are also required to avoid engaging in any personal activity or financial interests which would conflict with their responsibility to the Company.

Role of the Board of Directors

The Board has a fiduciary responsibility for the proper direction and control of the Company activities. This responsibility includes such areas of stewardship as the identification and control of the Company’s business risks, the integrity of management information systems and transparent reporting to shareholders. The Board accepts its primary responsibility for the overall control architecture of the Company, however, it recognizes that the internal control system has to be cost effective and that no cost effective system will preclude all errors or irregularities.

The system is based on written procedures, policies, guidelines, an organogram that provides an appropriate division of responsibility, a programme of internal audit, manning of all key functions by qualified personnel and constant training.

Code of Conduct

The Board has adopted a code of conduct for its members, executives and staff, specifying the business standards and ethical considerations in conducting its business. The code includes:

  • Corporate governance
  • Relationship with employees, customers and regulators
  • Confidentiality of information
  • Trading in Company’s shares
  • Environmental responsibilities

Management Structure

The Company operates five distinct business units and two wholly owned subsidiaries:

  • Steel Division – Line Pipe Manufacturing, Line Pipe Coatings and Fabrication Services
  • Cotton Division – Yarn Manufacturing
  • Investment and Infrastructure Development Division (including wholly owned subsidiary CS Capital Private Limited)
  • Hadeed Division – Steel Meltshop and Billet Manufacturing
  • CS Energy Division – Bagasse Fired Thermal Cogeneration Plant (including wholly owned subsidiary Solution de Energy)

Each division is managed independently by a Business Unit Head who is accountable for performance and bottom line of their respective business units.

The accounting for these units is done separately in an arm’s length manner to arrive at the true profit before tax for each unit. Five business unit heads and four corporate functional heads as defined in the management structure with clearly defined responsibility and authority matrices have direct reporting lines to the Chief Executive Officer. Limits of authority at all levels are clearly defined in our control manual. The Internal Audit function has been outsourced to a reputable Audit firm to monitor compliance with management systems and manage operational risks.

Responsibility to Stakeholders

Our primary purpose is to run our business efficiently and profitably to enhance shareholders’ value with responsibility to all stakeholders. Profitability is essential to discharge this responsibility and the corporate resources are primarily deployed in the achievement of this end. However, the Company does not operate in isolation with its environment and accordingly feels responsible to all stakeholders, which are:

  • Our Shareholders: To protect shareholders’ investments and provide an acceptable return to them
  • Our Customers: To win and maintain customers by developing and providing products, which offer value in terms of price, quality, safety and environmental impact supported by requisite technological expertise.
  • Our People: To respect the human and legal rights of our employees by ensuring safe conditions of work and competitive terms of service.
  • Our Business Partners: To seek mutually beneficial relationships with contractors and suppliers of goods and services to the Company.
  • Our Society: To conduct business as a responsible member of society, to observe laws, express support for basic human rights and give proper regard to health, safety and environment not only at our various campuses but also beyond, extending it to society at large.

Service to Society

We are committed to be active as responsible corporate citizens. We believe in “giving something back” by addressing gaps in targeted areas including education, healthcare, public safety, environmental protection and stewardship – with a particular focus on education. A majority of our giving is allocated to primary and secondary schooling for less privileged children.

We believe that individual entities when working together can create powerful synergies and help to improve quality of life in the areas where they operate. These principles are not just put forth on paper but we have over the years actively strived to promote issues of education, health and environment.

Health, Safety and Environment

At CSAPL, compliance with workplace health and safety standards are of critical importance across all our locations. We are committed to actively managing health and safety risks associated with our business and are actively working towards improving our procedures to reduce, remove or control the risk of fire, accidents or injuries to employees and visitors. All our activities at all our campuses are required to conform to international standards for health and safety certified by ISO 14001 and ISO 45001.

We also ensure that our products are shipped in a safe manner complying with the safety standards and legal requirements.

Role of Shareholders

The Board aims to ensure that shareholders are informed of all major developments affecting the Company’s state of affairs. Information is communicated to the shareholders in the annual report, interim quarterly reports and through information portal of Pakistan Stock Exchange as and when required. The Board encourages the shareholders’ participation at the Annual General Meetings to ensure a high level of accountability. The Company’s financial statements are available on the Company’s website and an officer is designated to answer all shareholder enquiries.