A culture of transparency critical to better business landscape

Managing Director of BAT Bangladesh Shehzad tells the FE

FE Team | Published: October 24, 2023 23:50:11

For any Bangladeshi occupying the top job in any major multinational corporation (MNC) it has always been a dream come true. Only the best usually gets such an opportunity. Mr Shezad Munim is one of those who could touch the milestone and is now heading British American Tobacco (BAT) Bangladesh. He has been with BAT for more than two and a half decades, for 10 years as its Managing Director. In an exclusive interview with the Financial Express (FE) recently, Mr Shehzad, who was president of the Foreign Investors Chamber of Commerce and Industry (FICCI) for the 2017-2019 period, on completion of 10 years at the helm of BAT emphasised 'ecosystem development' as the focus of modern-day top officials. Excerpts of the interview follow
Financial Express (FE): What are the unique responsibilities and duties of a modern-day Managing Director in the context of Bangladesh?
Shehzad Munim (SM): In today's dynamic business landscape, a Managing Director's role transcends mere company responsibilities. Our focus extends to empowering the company to operate autonomously, allowing top officials to concentrate on ecosystem development. One such strategy involves fostering business associations and bolstering organisations to support the national business ecosystem. During my tenure as President of FICCI, I had the opportunity to instigate positive changes. Positive transformations in the ecosystem invariably yield progressive outcomes.
MDs in developing countries like ours must navigate a myriad of external factors that might not be as pertinent for their counterparts elsewhere. Developed nations typically operate within standardised ecosystems, providing leaders with a stable framework for conducting business. In contrast, Bangladesh's ecosystem is still evolving. Top officials must engage in extensive networking and collaborative initiatives to effect meaningful transformations.
FE: How do you as a son of the soil look at your motherland, and interests while serving a multinational company?
SM: Being deeply rooted in my homeland, I view Bangladesh as a reservoir of immense potential and talent. Serving in a multinational company (MNC) provides a unique opportunity to contribute to national growth given their critical role in enhancing the work environment and efficiency of the workforce.
At BAT Bangladesh, we've undertaken substantial investments in our factories, upskilling our workers, and modernising our facilities. This has empowered our workforce to leverage innovative technologies, thereby enhancing productivity. These advancements have created export opportunities for finished goods and raw materials to multiple destinations.
People development is a cornerstone of our mission. Our commitment has been evident in the transfer of over 50 managers to multiple foreign BAT Group offices, where they proudly represent our nation. Some of our factory workers are serving in BAT factories abroad as trainers. These efforts foster a positive image of Bangladesh on the global scene.
FE: What are some notable success stories and challenges you've encountered during your ten-year tenure as the head of BAT Bangladesh?
SM: Over the past decade, BAT Bangladesh has witnessed transformative successes and navigated significant challenges. The way we upskilled our factory workers was once beyond imagination, considering the obsolete machinery at our factories when I assumed the role of BAT Bangladesh's MD. The company's commitment to innovation has paved the way for this remarkable transformation.
Our contribution of approximately 10 per cent of the tax revenue indicates BAT Bangladesh's impact on the economy. It's a distinction unparalleled in many other nations. However, the period of high-stakes litigation demanded astute navigation and strategic decision-making. This experience taught me invaluable lessons. We faced serious challenges during the COVID-19 pandemic, but I take immense pride in the way our employees pivoted the business to new heights ensuring zero job losses.
FE: What approach does BAT Bangladesh adopt to achieve excellence as a corporate entity and employer?
SM: Our commitment to excellence extends beyond conventional corporate social responsibility (CSR) practices. We have transitioned from CSR to ESG (Environmental, Social, and Governance) initiatives, aligning our efforts with the UN Sustainable Development Goals (SDGs).
Our company has been at the forefront of sustainability initiatives. We share our best practices with wider communities. Notably, BAT Bangladesh has set a precedent by publishing ESG reports, promoting transparency and accountability. We encourage other organisations to follow suit, fostering a culture of transparency and responsibility.
To build trust, we have established robust governance structures and arrangements. The accolades we've received, such as the Highest Taxpayer Award for nine consecutive years, and the ICAB National Award for seven consecutive years serve as a testament to our unwavering dedication to upholding the highest standards as a responsible corporate citizen.
FE: As the highest taxpayer, what is your perspective on fostering a taxpaying culture and enhancing Bangladesh's tax-GDP ratio to support welfare initiatives?
SM: The analogy of our current taxation system to holding sand, where the more you grip, the more it slips through your fingers, perfectly captures our predicament. Our taxation approach has been short-sighted, imposing burdens on taxpayers. For instance, the imposition of turnover tax significantly escalates the cost of doing business. New ventures often operate at a loss during their initial 3-5 years, making the burden of turnover tax particularly harsh.
To truly cultivate a taxpaying culture, we need a long-term policy framework, ideally spanning five years. Such an approach would not only alleviate the burden on entities and individual taxpayers but also diminish the fear associated with abrupt policy changes.
These policies should be designed to alleviate burdens on businesses and stimulate investment. By fostering an environment where businesses can thrive without fear of abrupt tax changes, we can boost our tax revenue.
FE: What are your future objectives to help the company operate even better ways?
SM: We focus on making impactful changes by advancing our sustainability initiatives for a better tomorrow. We believe the growth of any organisation should help others working with us succeed. Our logistic ally, for example, has expanded to become the largest fleet network. Our distribution houses have also flourished into substantial entities. We actively engage with farmers and help them learn world-class farming practices that enhance crop yields and uplift their livelihoods.
Simultaneously, BAT Bangladesh is committed to minimising its environmental footprint. We have set an ambitious target to achieve carbon neutrality by 2050 to join global efforts to address climate change.
Our future objectives revolve around inclusive growth, environmental stewardship, and sustainable practices. We aim to set a benchmark for business organisations, demonstrating that profitability and responsibility can harmoniously coexist, leading the way for a more sustainable business landscape.
FE: In your opinion, where should Bangladesh focus its efforts to enhance the quality of its workforce and foster a better corporate culture within businesses?
SM: A fundamental shift in our educational approach is imperative. Our inclination towards pursuing a Master's degree doesn't align with the practical job market demands. So, Bangladesh needs to prioritise vocational education, investing in practical skills of the workforce. Thus, we can tap into sectors that have remained largely unexplored.
BAT Bangladesh has initiated the 'Apprentice Academy,' a platform that offers a transformative two-year apprenticeship programme designed to groom diploma engineers. This initiative has not only transformed them into valuable assets at BAT Bangladesh but also enabled them to explore diverse career opportunities across various industries. I strongly feel that other companies can draw inspiration from such initiatives.
Since true leadership is cultivated in the field, not within air-conditioned rooms, we at BAT Bangladesh ensure that our managers gain exposure to diverse roles nationally and internationally, grooming them to be future-fit business leaders.
By providing comprehensive training and promoting skill development, we empower our workforce to meet the demands of the corporate world. This strategy not only elevates the quality of our human resources but also contributes to nurturing a more robust and self-reliant corporate culture, fostering an environment that thrives on innovation, adaptability, and excellence.