Making a difference
A very powerful tool
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THE WORLD OF HEINEKEN
The model has proven such a success that other multinationals have
already expressed an interest in using it to assess their own economic
impact. It has also been well received by leading NGOs, though some have
criticised the fact that it does not include social and environmental issues.
"The scope of the project was solely about the economic, or monetary,
impact we have," says Montijn. "We wanted hard facts that that give a
reasonably accurate picture of our economic impact in Sierra Leone. And a
methodology we can use pretty much anywhere we are active without
having to reinvent the wheel each and every time. That's exactly what this
EIA model gives us."
This brings us quite neatly to why Heineken and other multinationals feel a
need to measure their economic impact in developing markets. The EIA is
not only a matter of proving that they do indeed contribute to society and
to the alleviation of poverty, says Van Rijn. The model also has a positive
business benefit, because it can help companies to adjust their operations
to maximise their potential positive impact.
"Using local raw materials has had a huge impact in Sierra Leone, and
other African countries," he says. "Showing this could convince other
operating companies to do the same, if they see what a major difference it
makes in other countries."
The results of EIA studies could also be a powerful negotiating tool with
local governments too, adds Van Rijn. "Many see multinational companies in
a very negative light and impose sometimes quite punishing tax regimes or
other restrictions," he says. In Sierra Leone, for instance, Heineken pays
taxes pretty much all the way along the value chain, including distribution
and sales, which are not even part of SLBL. The EIA model will help to
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correcting that negative impression and create a much more level - and
fairer - playing field, he says.
Thierry Sanders expects to see other companies use the model in the
future. "However, the model has to be kept simple," he says, "and it has to
offer the possibility of making investment judgements, like switching from
imported raw materials to locally produced materials. If it's easy to use and
provides information that could affect both their business results and their
local impact, managers will be more willing to make the effort."
One man who certainly greeted the results of the EIA study with enormous
enthusiasm is John Mbonu, the General Manager of SLBL. Although he's not
yet presented the final results to the Sierra Leone government, he has
shared them with his local workforce.
"The response from our employees was incredibly positive," says
Mbonu. "I believe the study will be very useful in enhancing the perception
and raising the profile of the company with the government and the local
population. If you believe you are making a positive contribution to the
societies in which you operate, this is a very powerful tool to prove it
beyond any reasonable doubt. It's simply too good an opportunity to miss."
For the full presentation on the results of the Economic Impact
Assessment visit: http://www.bidnetwork.org/download.php?id=42201.
