Coca-Cola's CSR strategy: Rs 71.4 million microfinance loans given to over 7,527 female entrepreneurs

A top beverage company has provided grants over Rs 71.4 million during the last 8 years for extension of microfinance loans to over 7,527 female entrepreneurs who have set up their own businesses in the country. In an exclusive chat with Business Recorder, Rizwan Ullah Khan, General Manager of Coca-Cola Export Corporation (Pakistan & Afghanistan), shared his vast experience in corporate social responsibility (CSR) activities and role of the company in this regard.
He said that under their partnership with Kashf Foundation spanning over the last 8 years "we have provided grants over Rs 71.4 millions for extension of microfinance loans to over 7,527 female entrepreneurs, who have set up their own businesses of a wide diversity, providing them with regular and growing monthly incomes. You cannot imagine how life-changing this has been for those women and their families. From literally zero earning, these women are now contributing a major share in their family incomes and earning enough now to send their children to school for the first time, and are generally pulling themselves and their families out of abject poverty."
About the concept of corporate social responsibility, he said that many companies believe that giving donations to causes is CSR. But this is actually corporate philanthropy and not CSR. The philanthropy is temporary relief whereas the CSR interventions are planned and structured programs that are designed to create sustainable livelihoods and bring about long-term change. So instead of mere cheque-writing, companies need to devise strategies that bring about measurable, long-term and sustainable positive change.
He said that the company's CSR strategy primarily focuses on four areas - environmental conservation with an emphasis on fresh water replenishment, women empowerment, education, and youth development. "We have been working actively for several years in all four areas, partnering with highly experienced and reputed organizations and institutions as the implementing partners. All our interventions have yielded or are yielding positive and measurable outcomes in line with the set goals, and they are audited and verified by independent agencies."
He said that first of all it is the moral and ethical responsibility of every reputable company that cares for the society it operates within to give back to that society. Further, the CSR makes good business sense as it can actually save costs, motivate employees and promote adoption and adherence to best practices. A company's CSR programme should also extend to the business associates in its own supply chain. "If you think about it, it is perfectly logical that a reputable and responsible company should support the growth and development of all it does business with, for only through such thinking the company can itself grow its own business."
Rizwan Ullah Khan said, "Coca-Cola has been in business in Pakistan now for over 65 years. It is our global responsibility, and the one that we take very seriously, to support all our business partners in the growth of their businesses, both in quantitative terms and equally importantly in qualitative terms, by adopting best practices, good governance, transparency and accountability. We work continually for adoption of not only technological developments but also ethical business practices by our business partners."
He said that his company supports many other businesses and even whole industries, as glass bottle manufacturing industry largely survives on the business of carbonated soft drinks companies. He added, "Fortunately in our case, misunderstandings with business partners have been a very rare occurrence despite the fact that we have been in the market for over six decades."
"For a company that has been in existence for over 130 years and which has global operations, there can be absolutely no compromise and we operate strictly in accordance with the laid down laws, rules and regulations," Rizwan maintained.