Helene D. Gayle argues that businesses can do well economically by doing good socially In the small village of Beni Sweif, Karima stands in line to sell her two buckets of milk at the local milk collection centre. Karima brings her milk to the local production centre to be tested and weighed. This is new for her, but she is happy to do it because it means she is part of a bigger effort -- one that enables her to increase her income and so better support her family. The programme Karima is benefiting from is one that is jointly carried out by CARE, the international humanitarian organisation, and a global dairy manufacturer. Programmes like this one bridge the gap between local farmers and the formal economy, creating markets for the poor and new sources of local raw materials for dairy companies who no longer have the significant shipping cost of transporting raw materials from far away. It is a great example of how businesses are beginning to understand that they can do well economically by doing good socially. Karima's story is just one of many that help exemplify the innovative ways civil society organisations and businesses can help stimulate economic growth for companies, while improving the wellbeing of the poor. Through this approach of including the poor in the value chain, civil society is able to act as the bridge between farmers and the private sector, helping grassroots farmers link to markets and helping global markets access local producers and build trust within communities that facilitates economic growth. Livestock owners are trained on the milk industry, the production value chain and potential for business growth and profit, and the quality standards required by large business and markets. Because of the increased awareness and growing partnerships, everyone is benefiting. This represents a new trend in corporate social engagement. Traditional corporate social engagement is removed from the core business and often linked to short-term projects that focus on meeting short-term needs. Increasingly, new models of social engagement are emerging that view corporate engagement as a key component of the overall business strategy and the key drivers are opportunities to create shared value for business and society. This change of paradigm requires forward thinking leaders willing to commit to the design, implementation, and the evaluation of strategies that meet a double or triple bottom line of wealth creation, social good and environmental sustainability. The direct engagement of a corporation's business units and the combining of expertise across both entities are crucial to sustainable success. There is tremendous opportunity when a balanced partnership is reached. Since renovations of a milk storage facility in Beni Sweif were completed in autumn 2011, milk has increased 10-fold, increasing profits for both the farmers and the global dairy company which funded the renovation. The milk purchased from local farmers already accounts for five per cent of the total used in production at the global dairy company's Egyptian production centre. They are confident that this number will soon increase to 40 per cent of the total share. Even more exciting is the fact that the project has already proven so successful that the global dairy company is working to replicate the programme at their production facilities in other countries and regions. As the interests and capabilities of corporations, government and NGOs converge, together we are creating innovative models that are helping to grow new markets at the base of the pyramid. Philanthropy alone will not change the lives of the poor. As one woman and her cow in Egypt show us, innovative partnerships between business, development, and others can provide a return that meets everyone's needs. The author is president and CEO of CARE USA, a leading international humanitarian organisation.
