60. Chapter 5: Heineken in society
There are already some good examples of ways
in which we can contribute to the realisation of the
MDGs. One example, is our involvement with small
sorghum growers in Nigeria and Sierra Leone,
a partnership between Heineken and the Winrock
Foundation; others include our involvement in
HIV/AIDS prevention in parts of Nigeria and the
maternal health services we provide for our
employees and their direct dependants.
There are, however, limitations to what we can do,
and there must also be a credible business case for
us to become involved. Only then, can we sustain
our efforts in line with the mandate we have from
our shareholders.
Economic and social impact
Our business philosophy is clear: when volume and
market circumstances are favourable, we produce
our beers locally. Implicit in this approach is
a recognition of the fact that in all our major
markets, we are part of an extensive value chain,
from producers of raw materials right through
to retailers. Studies carried out in technologically
advanced markets in Western Europe indicate that
for every employee in a brewery there are between
ten and fifteen other people employed by suppliers
and customers in the value chain.
Recent investigations, supported by organisations
such as Oxfam in cooperation with other
companies, have demonstrated that indirect
employment generated by the activities of multi
national enterprises in developing countries is even
higher than in mature markets. Apart from indirect
employment, our operations provide other direct
and indirect benefits for local communities. These
include tax revenues (amongst others through beer
excise duties), value creation through the supply
and demand chain and operating company
investments. Of course, our operations can also
have negative economic impacts - for example,
depletion of natural resources and waste emissions.
In addition to the economic benefits outlined
above, our operations also generate social benefits
and costs. Social impacts are often assumed to be
synonymous with economic impacts; however,
while economic analysis can be considered as one
part of social analysis, economic impact analysis
addresses how efficiently investments of capital
and other resources are returned in present and
future benefits to society (i.e. whether the
economic benefits of an action or policy outweigh
the costs). Economic impact analysis focuses on
resource supply and demand, prices, and jobs.
Though social and economic impact assessments
overlap and are related, they differ considerably
in their focus and in the underlying questions,
methods, and approaches they entail.
Heineken N.V. - 2004/2005 Sustainability Report