Very interesting to read on the Ethical Corporation
site SABMiller -- The cost-benefit analysis of beer
by James Geary about INSEAD Professor Ethan Kapstein's...
"...methodology designed to estimate a corporation’s social, environmental and economic impact on the countries in which it operates. [...] to measure what to date has remained largely unmeasured -- the specific costs and benefits resulting from doing business in specific markets. "This is a relatively new thing," Kapstein says, "reflecting the demand from stakeholders for hard data on corporate impact." If Kapstein’s method catches on, this kind of statistical analysis could help companies put hard numbers behind their corporate responsibility efforts, enabling them to determine what delivers the biggest bang for their bucks in national and regional markets."
The SABMiller study
was on their Nile Breweries subsidiary in Uganda and publicly released last June at the Africa WEF in Cape Town
. Among the compelling findings was the degree of employment multiplier
- SABMiller’s business in Uganda supports 44,000 jobs and generates income of £92m for the country.
- The brewer does this despite having only 430 employees in the country, at its Nile Breweries subsidiary.
- For every person Nile Breweries employs, a further 100 jobs are created in the company’s supply chain.
- Of the £92m generated for the Ugandan economy, £55m is taxes paid to the government. Nile Breweries pays £28m of that.
- Locally sourced Eagle Lager generates 50% of Nile Breweries’ revenue, providing 8,000 farmers with 70% of their income.
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