Our economic contribution
One of the most powerful contributions we make is through direct and indirect employment, and through the value we generate in our operations, our value chain, and local economies. In the year we generated US$21,640 million of economic value through our business activities, most of which was distributed to employees, shareholders, governments, and local communities.
We are committed to accelerating growth and social development through our value chain to support our business growth, and the communities around us.
Download a breakdown of our economic value generated
Integrating into commercial engagement
There is no ‘one size fits all’ solution to support small businesses. We have learned, for example, that financial inclusion is a priority for many retailers and farmers in Africa and Latin America, while small retailers in Europe need more help to attract customers. We aim to provide our small business partners with a value proposition that helps to address the biggest constraints to their growth. This includes payment terms: we have amended our supplier payment terms policy to exclude certain small businesses from our standard terms when we know these would constrain their ability to operate and grow.
Making programmes more commercially integrated enables us to have a more sustained impact. However, it does not make the challenge of measuring livelihoods impact any easier. This year, we partnered with CARE International to review how we apply social impact KPIs to existing initiatives, and how we can integrate the most useful KPIs into existing measurement systems. We piloted this approach in Colombia, India and Peru. In Africa, we developed a new technology platform to collect data on impact KPIs for our smallholder farming programmes, and to share critical agricultural data with farmers.
Corporate Social Investment
We define corporate social investment (CSI) as ‘a contribution or investment of cash, knowledge, employee time and equipment to people or communities to enable them to flourish and help sustain the environment in which we can be a successful business’.
This definition does not include investment in programmes combating abuse the harmful use of alcohol undertaken by our businesses; the provision of HIV/Aids testing or managed healthcare programmes for our employees; or the procurement of materials or services from smallholder farmers working on our enterprise development programmes. Investment in these three areas is funded and managed separately as they relate so closely to our core operations and the overall responsible running of our business.
We also recognise that micro, small and medium-sized enterprises are critical to economic growth in many of the communities and markets in which we operate. It is in our interest to nurture and support these businesses as we seek to create thriving and prosperous communities. We do this in many ways, including investing in new ideas, promoting entrepreneurship and fostering skills development through our programmes around the world.
In the year ended 31 March 2016, SABMiller invested US$28 million in its CSI programmes. This equates to 0.6% of our pre-tax profit.