Catalina Garcia

The Importance of Value

Catalina Garcia Gomez: Communications and Sustainable Development Director, SABMiller LatAm

To the extent that organizations consider social investment as an element of corporate philanthropy in the humanistic sense, determining the generation of value of this investment is not considered, simply because there is no expected return and it is not defined from an alignment with the business strategy or the company. However, when within the model of Corporate Social Responsibility, social investment is considered as a voluntary and active contribution that somehow is integrated with the business mission, aimed at the improvement of competitiveness, and the benefit of communities located within the area of ​​operation of the company, the generation of value becomes important, both from a social point of view, as well as in terms of its return to the company itself. Therefore, when considering social investment as the generator of “shared” value, it is expected at least that benefits generated (from a social and economic perspective)  will allow the recovery of the invested capital. This is when we speak about SROI.

SABMiller LatAm has made great strides in this regard. Already many of the programs that are part of Social Investment of the Company are being evaluated on their impact, from the perspective of value creation: “Progresando Juntos” in Peru and El Salvador, “Sabor Nacional” in Panamá and “Reciclaje en la Isla de Roatán” in Cervecería Nacional, are just some of the examples now added to the projected work to be done with our regional program 4e, path to progress, addressed to poorer shopkeepers (mom and pop shops from the base of the pyramid) of our six (6) Latin American operations.

This identification of value is carried out by the analysis of two basic concepts associated with implemented social investment;

  • The effectiveness of the investment in establishing the degree of its contribution to the solution of the problem that gave rise to the identification of the benefits generated (planned and unplanned) and the degree of satisfaction that this social investment has generated among beneficiaries.
  • Then there is the efficiency of the investment, which focuses on the quantification of the changes brought about as a result of this investment and on the assessment of the value generated from the investment.

 

This assessment of social value together with the return on investment are concepts viewed from a quantitative and qualitative perspective in order to arrive at a comprehensive understanding, and thus contribute effectively to social investment management with objective elements useful in corporate decision making in this field.

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