Social welfare programs are a critical and challenging subject for developing countries such as Pakistan. Constrained by limited funds, reach and effective management, the Government is caught between a rock and a hard place when it comes to deciding where and how to deploy its resources, especially in times of crisis.
In these scenarios, individual and corporate philanthropy takes on particular importance. Pakistan may not be a wealthy country, but its people are rich at heart. In an article in Stanford Social Innovation Review, it was postulated that Pakistani’s contribute more than one percent of the annual GDP to charity, pushing it into the ranks of far wealthier countries like the United Kingdom (1.3 percent GDP to charity) and Canada (1.2 percent of GDP). A study conducted by Pakistan Centre for Philanthropy shows that around 98 percent of Pakistanis give in some form or another, around PKR 240 billion (more than $2 billion) annually to charity.
With the number of active COVID-19 cases in Pakistan that have crossed the 42,000 marks; our editor in Chief sat down with Hasan Saeed Akbar – Head of Communications, JS Bank to get his views on what organizations are doing to ease the humanitarian impact.
1. What are your views on COVID-19 as a whole?
COVID-19 has impacted people across all spectrums of life and geography to some extent. Be it food insecurity, economic turndown, or simple quarantine, we are all affected in some way or another. COVID-19 has disturbed political, social, economic, religious and financial structures across the world, resulted in approximately 244,000 deaths and has led us to revisit many preconceived notions on globalism and its impact on our personal lives.
This disease has fundamentally changed the way we see the world and its repercussions will be seen for many years to come. We should be thankful for the critical role being played by medical professionals serving our communities and be cautiously optimistic that the scientific community will be able to source a vaccine for this disease in the near future.
2. How has CSR adapted or provided for the people globally during the ongoing pandemic? What are the changes you foresee?
Corporate social responsibility or CSR is basically what companies should do to integrate environmental, social, and governance issues into their businesses. Until now it’s been a mixture of philanthropy, employee engagement, renewable energy programs, and waste management. But now CSR is creating a true connection between corporates and people.
Companies that have not succumbed to fear and have instead focused on offering need-based offerings and services while ensuring safety and health measures have risen above the competition. By talking to customers, employees, and communities these entities are creating personal connections and building loyalty. They are also unlocking new business opportunities and channels for new customer acquisition.
We have been fortunate to see top global firms such as UPS, Apple, Pfizer, 3M, and other steps up to the plate to support regional and international relief efforts. Even firms that were traditionally not associated with CSR activities such as Netflix which created a $100 million fund to help with hardship in the creative community have come to the forefront. COVID-19 will continue to disrupt our lives for the weeks and months to come. The corporate sector can move the needle during this crisis by implementing strategies and initiatives that benefit society – as well as their long-term success – by supporting their employees, customers, and the economy at large.
3. You work in a financial institution known for corporate philanthropy, what have you been doing in these critical times?
As an institution, JS Bank took immediate steps to respond to the unprecedented challenges faced by the nation by the Corona Virus (COVID-19), by establishing a 110 Million Rs fund in association with key partners during the month of April.
Based on a pledge matching initiative, rooted in JS Bank’s philanthropic philosophy of collaborative efforts, the fund’s three-tiered strategy revolves around providing immediate relief, pandemic control, and future response capacity building. This fund is the start of our efforts and we feel serves as a model for other institutions in Pakistan to create their own partnerships which will multiply on-ground impact at a grass-root level.
4. Can you share some numbers and facts on these efforts?
To give you a quick overview, we have provided rations and necessities to 19,685 families and sourced domestic manufacturing of high-quality Personal Protective Equipment (PPE) to reduce delivery times. We have delivered over 160,000 masks to front line institutions including law enforcement agencies as well as 15,000 PPE kits with face shields, N95 masks, latex gloves, and body covers to Provincial Disaster Management Authorities and leading hospitals. Some of our partners include Aga Khan Health Services, Sindh Institute of Urology and Transplantation, Indus Hospital, and others.
Understanding the necessity of a long-term solution, a critical part of our efforts is our focus on mitigating the long-term health impact of the virus through medical and technological Research and Development. We are working with the International Center for Chemical and Biological Sciences (ICCBS) whose patron is Dr. Atta-ur-Rehman for a study on virus transfer in Pregnant Women.
As I mentioned earlier though, this is just the start. Large and small corporate entities need to come together and ensure we do more to create a greater impact in the communities where we operate.
5. What element of CSR do you think succeeds, monetary or in-kind?
The effectiveness of CSR can vary depending on the circumstances. Contributions to the society in both cash and kind have their own impacts and it all varies depending on what is needed at that moment. In the crisis that we face today, both monetary and in-kind donations are essential. Healthcare professionals require protective equipment, low-income families require money, as well as supplies and other segments, are in similar need of other aid.
At the end of the day, it is important to realize that any form of help counts towards a greater cause.
6. Would you like to share some last thoughts?
Situations like the one we face at the present test for societies and stakeholders to demonstrate their ability to stand in unison.
Governments, central banks and the WHO will not defeat coronavirus alone; the private sector must play a key role. Companies that put morals at the core of their operations will stand out. For example, if you protect your employees during these tough times, you will build a loyal workforce. If you facilitate your customers, you will build a connection with them for the good times as well.
Corporate culture needs to go beyond shareholder returns and profits. This will not be easy, as companies struggle to manage losses, cash flow, and balance the conflicting demands of investors, customers, and internal colleagues. There is no right answer, and it is impossible to keep everyone happy.
There is an opportunity though. Companies that give greater social value and act morally will exhibit stronger financial performance in the long run.
As Anita Roddick said, ‘Being good is good business.’
