62. Chapter 5: Heineken in society
Nonetheless, operating companies can learn from
each other's activities and for this reason, in 2006
we are launching a project to provide easy internal
access to information about the major corporate
citizenship activities of our operating companies.
When this system is operational, employees
working in one of our operating companies in Asia
will be able to find out what their colleagues in
South America have done in similar circumstances,
and possibly adopt the same tactics to suit their
local needs. We believe that the introduction of
this system will improve the effectiveness of our
operating companies' corporate citizenship
initiatives worldwide.
In 2005, a total of €4.8 million (this equates to
€91 per employee) was spent on community
involvement programmes by our operating
companies. This figure is down 9.5 per cent as
compared to 2004. This can largely be explained by
stricter interpretation of the definitions that we use.
Thirty three per cent of our operating companies,
reflecting 65 per cent of our workforce, have
formalised procedures for the community to
express complaints and grievances; 53 per cent
have policies to manage environmental impact
and 24 per cent to manage social impact. Of our
operating companies, 14 per cent indicate that
they have initiatives that benefit the community
and contribute to the realisation of the Millennium
Development Goals; 12 per cent of our operating
companies have 'access to water' initiatives for the
local community.
Base of the pyramid
In April 2005, the Dutch consultancy firm Triple
Value Strategy Consultants organised a number of
sessions with one of the founders of the so-called
'Base of the pyramid thinking', professor Stuart
Hart. Heineken was a proud sponsor of these
sessions, together with ABN AMRO Bank and
chemical company DSM.
The Base of the pyramid strategy is aimed at doing
business in such a way that it yields profit for the
company, while providing products and stimulating
economic activity in consumer groups with very
low spending power. We chaired a breakfast session
with Dutch executives and the Dutch Minister for
Development Cooperation. A group of around
fifteen young professionals participated in
workshops. The enthusiasm within this group was
such that a number of follow-up sessions took
place. In these sessions, we assessed what activities
Heineken can deploy in the design of its own Base
of the pyramid strategy. We are currently in the
process of drawing our final conclusions, which
will be submitted to the Presidents of the regions
concerned and consequently to the Executive
Committee and the Executive Board.
Four billion people at the 'base of the pyramid' represent
a source of significant business growth
Purchasing power parity
in dollars
Population (mln)
Growth
Source: C.K. Prahalad and Stuart Hart
"The fortune at the Bottom of the pyramid" Strategy+Business, January 2002
BOP: Serving the world's poor profitably
Base of the pyramid: the great leap downward
Source: Stuart Hart and Clay Christensen, 2002
"The great leap: Driving innovation from the base of the pyramid"
Heineken N.V. - 2004/2005 Sustainability Report