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Square Pharmaceuticals
Limited
Introduction
SQUARE Group of Companies is one of the most reputed and largest company in our country. After a
54 year long journey, it is a symbol in the business world of Bangladesh. But the journey was not easy.
The company met its downfall in more than one occasion. But because of the great leadership skill of
Mr. Samson H Chowdhury, the company overcame all its hindrance and finally became what it is today.
What started as a small pharmaceutical company expanded its branches and became a huge group of
company. They have several branches all over the country providing and distributing product and
services. Now-a-days they capture most of the market shares of our country. Square today is a
corporate giant active in divergent business and industrial fields. Its present unassailable status is the
outcome of its successful diversification whether related diversification or unrelated.
With a slow but strong progress, SQUARE Group of Companies became a legend in the business
world of Bangladesh. It is one of the most revenue generating company of Bangladesh. Currently they
have over 3500 employees working in the company. Providing best quality product and customer
satisfaction is their primary motto.
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This paper focuses on the voluntary reporting on corporate governance of one of the largest business
group of Bangladesh Square Pharmaceuticals Ltd. Though reporting on corporate governance may
include both the financial and non-financial aspects. In this paper only the non-financial portion is
included. The SPL recently has started reporting on corporate governance under a separate heading
in the annual reports of their listed companies. This is not common practice in Bangladesh and
obviously a go-heading practice performed by any Bangladeshi business concern having a very few
predecessor in that respect.
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Corporate History
Year of Establishment (Initially as a Partnership)
1958
1964
1975
1984
1991
1995
Agreement with M/s. Bovis Lanvec Ltd. of UK for implementation of Dhaka Plant :
1996
1998
Business Lines
Manufacturing
and
Marketing
of
Paid-up Capital
Number of Employees
2,394
US$
16.99
Million
Vision
To see business as a means to the well-being of the investors, employees and the society at large,
leading to accretion of wealth through financial and moral gains as a part of the process of the human
civilization.
Mission
Their Mission is to provide quality & innovative healthcare relief for people, maintain stringently ethical
standard in business operation also ensuring benefit to the shareholders and other stakeholders.
Objective
Their objectives are to conduct transparent business operations within the legal & social frame work
with aims to attain the mission reflected by our vision.
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SPL Management
Types of ownership:
SPL made its debut in 1958 as a Partnership Firm with four partners. Afterward with rapid expansion of
business turnover in 1964, SPL converted into a Private Limited Company. In 1994 SPL converted into
a Public Limited Company and floated public share with highest premium.
Board of Directors:
Mr. Samson H. Chowdhury
Chairman
Managing Director
Director
Director
Director
Director
Director
Management Committee:
Mr. Tapan Chowdhury
Managing Director
Dr. A. R. Q. Baksh
Member
Member
Member
Member
Sales Department.
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Distribution Department.
Human Resource.
Commercial.
Core Competitors
Square Pharmaceuticals Ltd. is the leading company in the pharmaceuticals industry for more than four
decades. It has been in the top position for a long time but it faces competition from many other
Pharmaceuticals industry. A list of SPL competitors are given below.
INCEPTA PHARMA.
BEXIMCO.
OPSONIN PHARMA.
ESKAYEF.
RENATA.
ACME.
Corporate Governance
Corporate governance is concerned with methods, laws and policies that direct, control and administer
important functions of corporation. In other words, corporate governance is a system by which
companies are directed and controlled. Typically it is being managed by principal stakeholders in a
corporation mainly the shareholders, management and the board of directors. It also specifies the
relations and the distribution of right and responsibilities among these stakeholders. This system spells
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Board Of Directors:
The board of directors are essentially the policy makers and they mostly oversight whether the
corporate objectives are being fulfilled in an efficient way or not. The board or the governing body is an
important element of an organization as it gives direction and exercise judgment in setting the
objectives and observing their implementation. But it should be clearly stated here that the board is not
liable for performing the day-to-day activities of an organization but it rely on management to manage
the corporation.
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In order to perform the tasks of the board in a proper way the powers can be delegated to several
board sub-committees. Establishing these sub-committees enhances the effectiveness of the nonexecutive directors. Square Pharmaceuticals Ltd. maintains some sub-committees like Remuneration
committee. They call this committee as Employment relations committee and under this committee
there are three sub-committee namely Remuneration committee, Work environment committee and
Employees welfare and Recreation committee.
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Executive Management:
The Managing Director heads the Executive Management. The Executive Management operates
through further delegations of authority at every echelon of the line management. The Executive
Management is responsible for preparation of segment plans for every profit centers with budgetary
targets for every items of goods & services and are held accountable for deficiencies with appreciation
for exceptional performance. These operations are carried out by the Executive Management through
series of committees, sub-committees, ad-hock committees, standing committees assisting the line
management.
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Participation:
decision making meetings but SPL make sure that most of the representatives of the
stakeholders group are present in the half-yearly and annually AGM meetings.
Accountability:
stakeholders and the investors in the organization. Every business in SPL is modeled in a way
that enables the management to ensure highest degree of both financial and behavioral
accountability. Like other companies SPL is accountable to its stakeholders as well as to the
government. If any stakeholder need information the company provide it to them. Sometimes
SPL provide free tours of their factory for the stakeholders. SPL also pay high tax to the
government. National Board Of Revenue awarded VIP status to SPL for becoming the highest
taxpaying Public Limited Pharmaceutical Company of Bangladesh.
Responsiveness:
difficult situation or how fast you response. SPL provide salaries, compensation package &
other benefits to their workers. Details about it are given below.
WORK FORCE:
Square Concern
CHQ
Exe
Pharmaceuticals
151
Factory
Field
Non-Exe
Exe
Non-Exe
Exe
Non-Exe
179
120
1250
726
723
BENEFITS TO EMPLOYEES:
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Total
3358
SL
Financial Benefits
Non-Financial Benefits
5 Bonuses
Job Enrichment
Profit Share
Leave Encashment
Lunch Facility
LFA
Job Rotation
Medical Facilities
Learning facility
Gratuity
Loan facility
Group Insurance
Technical Support
10
Study Leave
Transparency:
strictly followed at every step of the business processes. It follows the ethical standard which is
"Business should work against corruption in all its forms, including extortion and bribery".
It
provide information about company's profit-loss, major decisions, share price, dividend payment,
major performances of the board and the management in the annual financial report. The board is
trying to make the company as much transparent as possible.
Efficiency:
SPL with its progressive business outlook believes and practices corporate
work culture with a classic blend of efficiency and equity. SPL believes in company growth by
increasing efficiency level of employees and for that offering excellent environment and support
for skill and knowledge up gradation.
Square Pharmaceuticals Ltd. owe to its shareholders and strive for protection of their capital as
well as ensure highest return and growth of their assets.
SPL strive for best compensation to all the employees who constitute the back-bone of the
management and operational strength of the company through a pay-package composing
salary, allowances, bonus, profit participation, leave salary and superannuation & retirement
benefits.
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SPL strive for best co-operation of the creditors & debtors, the banks & financial institutions
who provide financial support when it needs them, the suppliers of raw materials & suppliers
who offer it at the best prices, the providers of utilities-power, gas & water etc. and the
customers who buy its products & services by redeeming their claim in time by making prompt
payment and by distributing proper product on due dates.
Investors.
Customers.
Employees.
Suppliers.
Government.
Community.
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Nation.
All of those above types of parties get some service from SPL. They are:
investment. Most of the investments are well known to all. Therefore, it is safe to invest with them in
their investment. It will be more profitable for all. In addition, the capital will remain safe. People who
invest in share of SPL in the stock exchange can make a proper use of their untapped wealth and
expand their range of business. The responsibilities of SPL to the investors are:
Fair return.
satisfy the customers. They keep this matter in the top of their head. They are always providing high
quality products in the markets for the customers. They also keep the range of the price of the
products in a reasonable rate so every level of people can have it. Besides this they are always
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force. They provide sufficient wages to the employees. Fulfill their social, economical and physiological
needs and demands. Maintain a very effective labor management relation system. SPL has a very
good and favorable working environment. There isnt any political harassment or groping problems.
The employees can work freely. SPL provide some very useful training facilities to their employees.
Their Training & Development enables their people to enhance their skills and keep them updated with
recent changes. They offer both on-the-job and off-the- job at both theoretical and practical training
opportunities through a range of Local, Regional and International Training programs. The
responsibilities of SPL to the employees are:
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Fair dealings.
Behave cordially.
Payment of taxes.
employment opportunity every year. Today a large number of the civilizations are working under this
organization. Therefore, it is reducing the unemployment. They also are looking after the environment.
They are following such ways so that the environment will not be polluted. They are making people
awareness to keep the environment safe. Besides all this responsibilities, they also operate many
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Increase productivity.
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Conclusion
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Reference
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The End
The
The End
End
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