Private sector has role to create shared value

It is a long-established tenet that the express purpose of establishing a business is to return a profit. But the thinking has evolved and has driven businesses to aspire to ideals higher than just returning a profit.

Companies now understand that there is greater value in caring for the environment and making a contribution to better societies.

Businesses today are conscious about bigger ideals like job creation, energy and water efficiency, environmental conservation and contributing to solutions to some of the challenges facing the communities in which they operate.

When societies rise, businesses rise, carried aloft by the same buoyancy. Indeed, shared value is about having a measurable impact on a social issue while still achieving positive economic returns for the company and its shareholders.

At East African Breweries Limited (EABL), we recognise that we are in a unique position to respond to global as well as regional challenges our communities face. East Africa is largely dependent on natural resources for growth and development. Our business depends on natural resources, from farming and production of our ingredients to the manufacture and distribution of our products. 

Climate change

However, every other day, another research finding, news story or environmental-related disaster comes with more evidence that our planet is in crisis. Climate change is a persistent threat to the communities that we work in and with. Regular droughts, floods and unpredictable rainfall patterns are wreaking havoc on farmers, making it increasingly difficult to achieve our regional development targets. Water is becoming increasingly scarce.

According to Unicef, a quarter of East Africa’s population must travel more than half an hour to fetch water. In Kenya, often seen as the region’s more developed economy, 17 million people (out of 52 million) still lack access to safe water. Unfortunately, Tanzania and Uganda are similarly struggling with water shortages.
Supply chain

These are all issues that affect our communities and our employees and directly impact our supply chain. In spite of these challenges, EABL is taking the lead in developing solutions. We are integrating social and environmental standards into our supply chain, ensuring that our entire business strategy is sustainable.

We continue to see notable social and economic progress in the communities that we engage with, including the creation of much-needed jobs and increased access to green, innovative farming practices.

Positive influence

Operating in a responsible and sustainable way every day, everywhere means that we can support our communities, protect and preserve natural resources and ensure alcohol plays a positive role in society. Our priorities are guided by the issues that are most material to our business and the value chain we create.

From the farmers who grow our ingredients, to our employees and contractors, to the consumers who buy our brands, we want to make sure we are a positive influence on society and the environment.

In 2020, we reaffirmed our support for UN Global Compact. We are globally recognised for adopting and tracking the most sustainable development goals (SDGs) –13 out of the total 17 – in our business strategy. 

Our goal is to continuously improve operations and create shared value to the entire operating eco-system. Undeniably, the cultivation of thriving communities is not a job for governments and non-governmental organisations alone. It is a herculean task which private business must join.

Jane Karuku is the Managing Director and CEO at East African Breweries Limited.