Key Policies

Key Points of the Diversity, Equity, and Inclusion (DE&I) Policy :

Continuous Improvement: There shall be a regular review and update of the policy based on feedback, data analysis, and changes in legislation or best practices 

Mission and Purpose Statement: The top management believes that DE&I ties and is embedded into the Company’s core values and business strategy. It strongly believes that it is a critical ingredient for the success, innovation, and for fulfilling the social responsibility

Definitions: The Diversity, Equity, Inclusion and Sexual Harassment have been explicitly defined in this policy to remove any ambiguity and to ensure a shared understanding across Calcorp

Scope and Applicability: The policy applies to all employees (full-time, part-time, temporary), as well as contractors, suppliers, and external partners

Prohibited Conduct: The Company has a very strong stance against all forms of unlawful discrimination, harassment, bullying, and victimization based on protected characteristics (e.g., race, gender, age, religion, disability, sexual orientation). Any violation of policy shall invite strong disciplinary actions for violations, up to and including termination

Recruitment and Hiring Practices: The Human Resource department shall ensure that it is fully committed to fair, bias-free, and inclusive hiring processes, such as using inclusive language in job descriptions, having diverse interview panels, and using objective criteria for assessment

Equitable Opportunities: There shall be clear and unbiased focus on ensuring fairness in access to opportunities, including pay equity, professional development, training, promotions, and career advancement

Workplace Accommodations: The Company shall provide reasonable working environment and flexible working arrangements for employees with diverse needs, such as disabilities, caring responsibilities, or religious beliefs. A quota shall be allocated for people with physical or other disability

Reporting and Support Mechanisms: The Human Resource Department shall develop guidelines that setout clear procedures for employees to report incidents of discrimination or harassment, with guarantees of protection against retaliation and a defined investigation process

Training and Education: The Human Resource Department shall organize ongoing, mandatory training for all employees (especially managers) on topics such as unconscious bias, cultural competence, and inclusive leadership. All new employees shall be imparted explanation and importance of this policy and consequences of non-compliance

Accountability and Measurement: The Human Resource Department shall develop mechanisms for monitoring and evaluating progress toward DE&I goals using data and metrics (e.g., workforce demographics, retention rates, pay gap analysis, employee surveys). Accountability for achieving these goals shall be extended to all levels, especially senior leadership.

Key Points of Governance of Risk and Internal Control Measures

Corporate Governance System

1. The Board of Directors, comprises of 07 directors, deliberates and makes decisions on matters stipulated by Companies Act, 2017 and the Company Articles of Association, as well as fundamental management policies and other important matters. The Board also oversees directors’ execution of their duties.
2. Adequately carry out neutral and objective management oversight functions.
3. The Board has established the following committees to strengthen and enhance management.
   • The Audit Committee to oversee the appropriateness of business execution and the effectiveness of internal audits
   • The Human Resource and Remuneration Committee to raise the credibility, fairness and transparency of personnel evaluations of managers

Status of Internal Control System

Internal Auditor which reports to the Audit Committee, shall conduct the internal audits of the Company’s internal control functions in accordance with the basic audit plan for each fiscal year, and shall recommend improvements when necessary. The Audit Committee has been established to monitor the appropriateness of business execution and the effectiveness of internal audits, and works to strengthen and improve management. 

Risk Management Measures

Fundamental Risk Management Policies

With the diversification of manufacturing and assembly businesses, the risks to which Manufacturing are exposed are becoming more complex and diverse, heightening the importance of risk management. Company is working to strengthen and enhance risk management. Its fundamental risk management policy is to gain an accurate understanding and awareness of each type of risk, and to establish an appropriate risk management framework to maintain the soundness and adequacy of management and secure stable income.

Comprehensive Risk Management System

Company has a comprehensive system to understand and manage the risks it faces in conducting its operations.

Specifically, risks such as credit risk, market risk and operational risk are categorized, and a unit is designated as having principal responsibility for managing each type of risk in the course of operations. In addition, Company has established the Risk Management Division, which is responsible for overall management of these risks. Moreover, the internal audit team, meets once a month to comprehensively gauge, evaluate and monitor the occurrence and management of each type of risk under the risk management policy.

In addition, Company quantifies risks according to consistent criteria and executes comprehensive risk management that controls the amount of risk within a scope appropriate to the Company’s operating capabilities. Based on this approach, Company sets limits for the amount of credit risk, market risk and operational risk, as well as for their total combined amount, in working to both maintain sound operations and generate stable earnings.

Credit Risk Management

One of the most important management tasks for a Company is maintaining the soundness of assets relating to business.

The first step in effective credit risk management is to gain a complete understanding of a Company’s overall credit risk by viewing risk at the individual, customer and portfolio levels.

The key is to implement an integrated, quantitative credit risk solution. It should also accommodate a path to more sophisticated credit risk management measures as needs evolve. 

The solution should include:

• Better model management that spans the entire modelling life cycle.
• Real-time scoring and limits monitoring.
• Robust stress-testing capabilities.
• Data visualization capabilities and business intelligence tools that get important information into the hands of those who need it, when they need it.

Market Risk and Liquidity Risk Management

The influence of changes in interest rates, foreign exchange rates, stock prices and other market movements on Company’s earnings has increased steadily. Consequently, Company has strengthened its asset and liability management capabilities with the objective of securing stable earnings. Specifically, the internal audit meets monthly to analyse the composition and changes in the composition of assets and liabilities. The internal audit also provides consultation on optimal portfolio management based on future interest rate scenarios.

Operational Risk Management

The environment in the manufacturing industry is undergoing constant change, including diversification of businesses, products and services, and the systemization of business processing. Therefore, Company sets operational risk management rules to comprehensively manage the risks accompanying its business operations. The internal audit department meets every month to comprehensively evaluate and analyse these risks, and conducts Companywide consultation on and implementation of risk reduction measures.

The Company considers operational risk to encompass a wide range of risks consisting of administrative risk, systems risk, information asset risk, ethical and legal risk, personnel risk, fixed asset risk, reputation risk, and other operational risks. The Company is working to upgrade the level of both qualitative and quantitative risk management. 

Key Points of Corporate Social Responsibility, Philanthropy and Donations

Key Focus Areas

The Company’s CSR shall be developed after careful consideration of the most pressing problems faced by Pakistan today. Accordingly, the Company has defined following focus areas to launch its CSR based on an assessment of the current challenges facing Pakistan.

i. Education:

Illiteracy is one of Pakistan’s gravest problems. This situation presents a tremendous opportunity for the public-private sector to invest in education.

The Company plans to develop a multi-faceted program targeting the youth and aims to help reduce barriers to education through assistance to deserving students and in particular, women who seek to pursue higher studies. Furthermore, to promote positive extracurricular activities, sports and physical education, the Company aims to sponsor sporting events, support coaching academies and the development of sporting grounds.

ii. Preservation of Heritage and Culture

The celebration of history and culture has a strong, unifying impact on the people of a nation. As many impressive buildings from the past have fallen to ruin due to neglect, the Company will engage in the restoration of heritage sites in order to uplift areas in which they stand and improve the aesthetics of the surroundings.

iii. Potable Drinking Water

Contaminated water is a major source of diseases that not only constrains the budget of the individuals, government and others but also results in large number of childhood deaths. The Company shall develop schemes to supply clean, potable drinking water to the poor in areas especially around its business locations.

iv. Afforestation

Global warming is now widely acknowledged and grave threat to the planet earth. Although Pakistan does not contribute significantly to greenhouse gases, it is one of the country’s most adversely affected by global warming. Extreme weather conditions such as floods, drought and severe temperatures have resulted in the environmental degradation, destruction of ecology, loss of flora and fauna and extinction of some of the species, displacement of millions, have destroyed farmland and killed livestock. As Pakistan is largely an agrarian economy, the negative social and economic impact of global warming on the country is tremendous. Additionally, exposure to pollution and lack of access to clean water have led to an increase in air-borne illnesses and other life-threatening diseases.

The primary way to reverse some of the adverse effects of global warming is through the plantation of trees. The rapid and unregulated cutting down of trees to fulfill the domestic and commercial demands has led to the permanent destruction of forests known as deforestation. The Indus Delta mangrove forests are worse affected by urbanization, an alarming situation as mangroves like any other forest serve as the lungs of the area, helping to purify the air and reduce pollution besides providing a natural hatchery for aquatic life.

The Company will invest in solar power generation and sponsor reforestation and tree plantation efforts.

v. Local Community Support

The Company will endeavor to support underprivileged of the areas where it operates to help and bring up the standard of living of deserving people. This way, the Company will not only support its employees and their families but will help the whole community. Programs will be suggested by the factory / facility managers that will be then be reviewed and approved by the management.

vi. Miscellaneous

While majority of the budget will be spent on the above focus areas to drive sustained impact, a small portion of the CSR budget will be allocated towards miscellaneous CSR contributions that come up during the year. This portion of the budget will be decided by the Board or the CEO and the approval process may be delegated to senior management to distribute as and when required.

Key Points of the Communication and Disclosure Policy

• Compliance with Legal and Regulatory Requirements: The Company shall adhere to the rules and regulations to avoid legal consequences and ensure that it fulfills its duty to timely and properly disseminate the information 
• Promoting Transparency and Investor Confidence: The Company shall ensure that all market participants have equal access to the information to promote trust and enable informed decision making
• Maintaining Market Integrity: Help prevent insider trading by prohibiting individuals with knowledge of material non-public information from trading securities until the information is publicly disclosed
• Managing Reputation and Risk: Providing clear, consistent messaging to manage the company’s public image and having pre-defined procedures for crisis communication and addressing market rumors. In this regard, the management shall monitor any news on any media about the Company that is material and may require clarity. The Company shall send to PSX the necessary disclosure to prevent any speculation and clarify the situation. While any clarification may also be issued on any media, it shall be ensured that any information, statement, clarification is first sent to PSX
• Ensuring Internal Clarity: There shall be approved communication channels, roles, and responsibilities for employees to ensure efficient internal information flow and avoid inadvertent external disclosures. In this regard the information shall be shared only on need-to-know basis and each recipient must be aware of the sensitivity and confidentiality of the information 
• Designated Spokespersons: Only the Board of directors and other authorized individuals (e.g., CEO, CFO, Company Secretary or such other persons as specifically authorized by the Board or the CEO) shall communicate with the media, investors, and the public. All such communication shall be restricted to internally approved content by any member of the Board. The cornerstone of the policy i.e., communicating any material, price-sensitive information to PSX first shall be followed in all cases

Definition of Material Information: The PSX Rule Book and Securities Act, 2015 clearly defines what constitute a material, price-sensitive information. In addition to this, judgment shall be exercised to gauge materiality of any information and its possible impact on the price or traded volume of shares of the company listed on the stock exchange.

Key Points of Whistle Blower Policy

1. The Whistleblower should promptly report the suspected or actual event to their supervisor.
2. If the Whistleblower is uncomfortable or otherwise unwilling to report to their supervisor, they may report the event to the next higher or another level of management or to the HR & R Committee.
3. The Whistleblower shall receive no retaliation for a report that was submitted in good faith, without bad intent, or intent to damage the reputation or standing of another employee or the Company.
4. A Whistleblower who makes a report not done in good faith will be subject to disciplinary action, including termination or other legal measures to protect the reputation of the Company and its employees.
5. Anyone who retaliates against a Whistleblower (who reported an event in good faith) will be subject to disciplinary action, including but not limited to termination of employment and/or other permissible legal action.
6. Supervisors who receive reports must promptly act to investigate and resolve the issue in collaboration with the HR & R Committee.
7. If the investigation of a report made in good faith and investigated by internal personnel is not to the Whistleblower’s satisfaction, they have the right to report the event to higher management.
8. The identity of the Whistleblower, if known, shall remain confidential to those persons directly implicated in the report.

Gender Diversity Policy

1. Policy Statement

CALCORP recognizes the value of having a talented and diverse workforce and is committed to valuing and promoting gender diversity in the Company, aiming to be truly representative of all segments of society, where each employee can contribute to the best of his or her ability.
We believe that valuing diversity in general, and gender diversity in particular, is a competitive differentiator. Therefore, we foster an environment based on inclusiveness and meritocracy.

2. Guiding Principles

Calcorp’s Gender Diversity Policy is driven and aligned with its core values: Compassion and Fairness.

Compassion – in our relationships with employees and the communities affected by our business. This policy ensures compassion toward the needs of all employees, especially female employees.

Fairness – toward employees, stakeholders, business partners, customers, and suppliers, through adherence to all applicable laws, regulations, and policies, and by maintaining a high standard of moral behavior. This policy ensures fairness and eliminates discrimination in areas such as recruitment and selection, employment terms and conditions, remuneration, training and development opportunities, and promotions.

3. Policy Guidelines

Calcorp shall ensure complete compliance with gender diversity practices in all phases of employment administration.

3.1 Recruitment

• Calcorp shall encourage female candidates to choose Calcorp as an employer. A female employee shall always be part of the recruitment drive to attract more talented females.
• Calcorp shall not single out or discriminate against any applicant based on gender during the recruitment process.

3.2 Work Environment

• The Company shall promote a work environment where all employees are treated with respect and dignity irrespective of their gender.
• The Company shall challenge discriminatory behaviors or attitudes wherever they occur, based on gender or otherwise.

3.3 Career Growth

• Calcorp shall build leadership capabilities of female employees by providing equal opportunities for training and development to harness their full potential.
• All decisions related to promotion and career growth shall be based purely on merit and organizational requirements.

3.4 Anti-Harassment

• The HR Committees shall be responsible for the prompt and fair disposal of complaints of harassment.

3.5 Maternity Leave & Childcare

• In addition to 90 days of maternity leave, there shall be a provision of six months of unpaid leave for childcare.
• Fully functional daycare centers for all female employees shall be established.

3.6 Amenities

• Pick and drop service shall be offered to female employees to ensure secure means of commute.
• Female employees shall be offered flexible hours in case of unusual circumstances or requirements.
• “Pink Day” shall be observed annually to create awareness regarding breast cancer, the most common cancer among females in Pakistan.

4. Responsibility

All Departmental Heads shall promote and safeguard the principles of gender diversity as outlined in this policy.
Each employee shall be responsible for reporting any incident or inconsistency according to organizational procedures.

5. Policy Review

The Policy is subject to revision based on any directive issued by the Securities and Exchange Commission of Pakistan (SECP), any other institution having competent authority, or whenever the Company deems it necessary.