 Good to see all of you again, Sayed Usain Haider over here. And in our last sessions, we were talking about the different theories of corporate governance. And today, we are going to talk about a very important theory, which is the sociological theory. Now, when we talk about the sociological theory, then from the very word itself, we realize that it has societal implications and there is an extent of the relationship between the organization and society at large. When we are talking about society again from an organizational context and there is the intra-society, which is the society which exists within the organization and the extra-society, which is beyond the organization. And both are basically encapsulated in all of this and we are going to go to the slide and also see that what are the different implications which are involved with the sociological theory. So ladies and gentlemen, when we are talking about the sociological theory, then it is focused mostly on board composition and the implications for power and wealth distribution in society. So ladies and gentlemen, when we are talking about the board, we are talking about society and we are talking about power and wealth. Now, the correlation between all of this is very complex and complicated. When we look at society as a whole, then we see that there are different segments, different strata, different textures, different elements and different players within society. We see, if we look at it from a very classical model, then we see that there are the proletariates, there are the bourgeois and there are the aristocracy, which basically if we divide society into three different levels, then they are the poor, they are the middle class and then there is the upper class. Now, again within these three classes, there are many other segments and we see that in the 21st century, the implications have further grown because like for example, if I can give an example of the state, then in the state we have different segments, we have different pillars. We have the parliament, we have the judiciary, we have the executive. Now, the fourth one is called media and the fifth one is called civil society. Now, these are the different stakeholders within the power structure of society. Now, taking an analogy and coming on to corporate world and coming about corporate governance, then again we see that there are implications and there are different dimensions and postulates of power and wealth distribution. Just like I was mentioning that in the classical model, we see that there is the proletariat, which are the poor or the working class and then there is the middle class and then there is the upper class. Now, when we talk about these three classes, then again this is the distribution of power within society, the distribution of wealth within society and it is very unfortunate that over the millennia, the society or the nations have been ruled by that less than 1 percent of the aristocracy or of the elite of any particular community or any particular society. This same thing also carries on to the corporate world and it is extremely important that there is more equity and there is more equitable distribution of power and wealth within the different segments of society. Not only society as a whole, but also of an organization. It should not be dominated by the top management. It should not be dominated by the majority stakeholder only and that is what the implication of corporate governance is all about that how can we have a equitable distribution of wealth and power? How is it that the different segments or the different hierarchies within an organization are interdependent and are interresponsible also to each other? It is not like a kingdom that whatever comes from the top has to be executed at all cost by the different tiers within the particular organization and similarly, when the organization is interfacing with society then how are we interfacing with society? Are we catering only to certain elite elements? Are we catering only or subjugating ourselves to only a few organizations? That again becomes very, very important. That is why we see that around the world there is this movement against oligarchies. There is this movement again against cartilization. There is this movement against monopolies and that is why in a country like Pakistan we have the monopoly control authority which basically ensures or endeavors to ensure that there would not be accumulation of wealth in a few individuals or in a few institutions. Now that is extremely important. We do not want concentrator of wealth or concentration of power in a few individuals or a few organizations because then they would tend to manipulate and exploit society at large. They would tend to manipulate and exploit employees at large and that would create a dissension and would create a dissonance within the structure of corporatization and corporate enterprises. So, that is extremely important that we try to understand sociologically the implications of power and wealth and try to move towards a more equitable society, a more compassionate society, a more tolerant society, a more society which looks at the welfare and the benefits of everyone, not a few. And then coming on to the slides again and seeing it from another perspective then that would be that there are certain problems of interlocking directives and concentration of directives as major challenges to equity and social progress. So, what are we seeing ladies and gentlemen? We are seeing that the issue is about the directives of the company because the directives of companies are within families, are within vested interests, are within the elite few and there is no representation of the different segments of society and that has its own downfalls, has its own implications, has its own tragedies also. Why? Because people are exploited and exploitation should not be accepted and that is why in this sociological theory the directives and the concentration of directives within families or within elite groups or within fraternities is basically challenged and looked at that there should be a broader representation which is taking place both intra and extra organizational in the societal context and that is very, very important ladies and gentlemen and that requires much more research because around the world we are seeing this exploitation and manipulation and again in this exploitation and manipulation the sufferers or the people who are the losers are those who do not have power or wealth and therefore we again see that there is this accumulation of wealth and power within a select few which again tends to which tends to create great amount of inequity on a global and also regional and also national level. So that is very important. Now let us look at some other elements which are also very important in this sociological theory. When we are looking at those elements then we see that board composition just like I was talking about the different directors financial reporting, disclosure and auditing are necessary mechanisms to promote equity and fairness in society. So ladies and gentlemen just like I was mentioning that the board composition is a very important component of the sociological theory but then these other elements of financial reporting how is financial reporting done how transparent is it how many people get access to it how is that financial report being developed. There are so many organizations right now who do so much of window dressing there are some very good organizations which unfortunately I cannot name who basically claim to do a lot of social work who basically claim that they are doing a lot of good in society but actually all of their financial reporting is window dressed is manipulated is exploited to the benefit of a few individuals which is the board and that is why they should be a more mixed texture of the board and the board should not create a monopoly within itself where why it even tends to affect adversely the financial reporting which would lead to again many things being covered up many issues being pushed under the carpet and giving a rosy picture which is not so and that we also saw in the Enron debacle which was 75 billion implication negatively for all of the stakeholders and shareholders around the world and there are so many other organizations which are involved into it and the role of the securities exchange commission of Pakistan should be enhanced so that they should be stopped because there are so many chartered account agencies who are participating in this wrong financial reporting which is going to have negative implications in the future so this has to be stopped now we talk about auditing so again what that auditing is also interlinked with the with the financial reports and all of that is eschewed and presented in such a way where by corruption is basically institutionalized and corruption is done in such a way that other people do not find out so the role of secp also becomes questionable and that also has to be improved not only in Pakistan but around the world and therefore there have to be necessary mechanisms whereby there is equity and fairness not only in society but also within the organization and then there has to be different frameworks which ensure that that equity and fairness is not compromised and is not hijacked and is not is not accumulated within the hands of a few but it has to be for the betterment of all and that is the context of the sociological theory thank you so much