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April 2008: Rabi-II 1429: Issue 25 
 

 

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Earthquake Jolts Corporate Responsibility

By Rafi-uddin Shikoh
Oct 25, 2005

The heart wrenching images of the earthquake disaster in Northern Pakistan, where more than 50,000 people have died and 2,500,000 are without any shelter, have certainly shaken us all and it seems the corporate community is no exception.

Amongst the outpouring of individual philanthropy and relief efforts, what is most encouraging is how some key businesses -- domestic, regional, and multinationals -- such as Pakistan International Airlines, Aramex (Middle East based regional transport services provider), Coca-Cola, and Pepsico are stepping up and playing a critical role in saving and rehabilitating lives.


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: See Corporate Donor/ Matching Program List (Domestic and International)

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Pakistan International Airlines along with many regional airlines including Saudi Airlines, Emirates and Gulf Air have been air-lifting relief goods from accross the world. (Image: PIA)

In much the same way as the corporate sector played a crucial role during Hurricane Katrina, where businesses such as Walmart and Fedex were some of the first responders; some key businesses are now making a major impact in the earthquake relief effort in Pakistan, setting good corporate examples and raising the bar high for corporate social responsibility.

Corporation's role during Hurricane Katrina

The corporate world's role is crucial in natural disasters. After all, they are the true engine of wealth creation with resources and expertise that wield significant capabilities, perhaps in many cases more than governments. Nothing drove this point home stronger than Hurricane Katrina which hit the U.S. reminding us how even the most advanced nation in the world is not always best prepared in the face of such disaster. It was in the midst of this crisis that the corporate sector played a crucial role.

Fortune magazine, in a recent cover story, chronicled the key role corporate America played in responding to Katrina's destruction. Home Depot (one of the largest home building supplies retailers), FedEx (a global next day courier service provider,) and Walmart (the world's largest retailer and the largest company in the world) were cited as the key first responders to the hurrican'es destruction who played a crucial role in relief efforts leveraging their established networks, resources and expertise.



In addition to donation $1 million in cash for Hurricane Katrina relief, FedEx moved approx. 918 tons of relief shipments to strategic locations before the storm hit.

(Image: FedEx)

They were able to do so, because, as well-run corporations, they had planned and prepared for such crisis through disaster recovery and crisis planning. According to the story, Home Depot even structures its divisions against main disasters they have to deal with like--earthquakes and wildfires in the western United States, blizzards in the north, and hurricanes in the south.

All in all, nearly 290 large companies have contributed $250 million in cash and about $500 million in products at fair market value, according to the Association of Corporate Contributions Professionals (ACCP, a trade organization for corporate contributions and community relation executives.)

Equally significant to these contributions has been corporations' role in providing expertise and professional assistance for a swift response to the disaster. A survey by a US communications company found that 62% of 1044 adults surveyed say companies are better able to respond to disasters than government agencies, and 88% said they have a more favorable impression of companies that came to the aid of Katrina victims.

Corporate response to the Earthquake in South Asia

With the above in mind, it is obvious how crucial the corporate sector's role is in responding to natural disasters. Even with more than 50,000 dead, we are still in the midst of the earthquake calamity in Pakistan, where more than 65,000 injured and 2,500,000 are without any shelter and bracing for the ensuing grueling winter. In the midst of this relief effort, stories of contributions by key domestic, regional and even global companies are surfacing that are worth acknowledging.

Logistics: Domestically, the national carrier Pakistan International Airlines is leading the charge in airlifting for free, relief goods from any of its international offices. Other local airlines Air Blue, Aero Asia and Bhoja Air are also providing similar service. Meanwhile, TCS, the local express courier service provider has jumped into the foray by offering to deliver relief goods free of cost to the most trusted local relief agency, the Abdul Sattar Edhi Foundation.

From across the Arab world, ARAMEX, the Dubai based regional transportation services provider, is delivering relief goods free of cost directly to the Pakistan Army and the Red Crescent. They are also coordinating the aggregation and airlift of relief goods from across the United Arab Emirates. Regional airlines Saudi Arabian Airlines, Gulf Air, and Emirates have been facilitating many free relief frieght transportation.

Pepsi & Coke have each donated $2 million in cash along with providing water and drinks. TCS, local courier service is delivering relief items to local relief Agency, Edhi.

Meanwhile, a Dubai based Airport Emergency Team along with Aramex have flown into Islamabad to coordinate the logistics of arranging the humanitarian aid flying from all over the globe to Islamabad Airport.

Communications: Mobilink, the leading cellular services provider and newcomer Telenor are doing their parts in facilitating voice communication during this crisis. Mobilink is reported to have setup a base camp of relief operations in Manshera and has setup multiple call centers from where people can call their families. Telenor, a newcomer to cellular service in Pakistan is providing free SIMS and services to the Ministry of Interior's National Crisis Management Cell (NCMC) in order to ensure connectivity for emergency communications. It has also made its services available in Mansehra and Abbottabad on an urgent basis and is working to set up network access to Balakot, one of the towns hardest hit by the calamity.

Monetary Help: Pakistan's Cabinet Committee on Fund Raising from Business Community for Earthquake Relief, announced that two weeks into the earthquake the business community both domestic and international has contributed $76 million to Pakistan's President Relief Fund. (See the running list here of domestic and international companies.)

Multi-nationals such as Coca Cola and Pepsico, have both made $2 million in donations each, and are helping address the vital need for clean water by donating bottled water and other beverages to the local agencies coordinating relief efforts. Meanwhile, Honda along with more than $500k in donations is considering donation of Honda products such as generators, water pumps and off-road bikes to assist relief and recovery efforts in the affected areas. Intel and Citigroup have announced a $1 million donation each for the relief efforts. They are also matching dollar for dollar any of their employee's contributions.

Employees Pitch in

Interestingly, many professionals working at multi-nationals are doing their parts in encouraging their employers to contribute. In the US, OPEN (The Organization of Pakistani Entrepreneurs in North America) even has suggestions and sample letters for its members to appeal to their employers that include such technology giants as SunMicrosystems, eBay, Oracle, Siebel Systems etc.

Many of their efforts are bearing fruit. According to OPEN's Silicon Valley Chapter, more than 20 US global companies have setup employee matching programs. These include IBM, SUN Microsystems, SAP, Yahoo!, AMD, CISCO and many more.

In addition, many Pakistani businesses have announced employees donating a day or two of their salaries. Pakistan Steel Mills, Muslim Commercial Bank, and Fatima Group are amongst such names.

Many lives still to be saved

There's much that can be discussed about how businesses could contribute more or play a more systematic role in response to such a calamity; but for now, it is heartening to acknowledge the corporations who are doing their parts as responsible members of their communities.

This calamity is certainly not over and surely much needs to be done immediately. But for every one of the survivors who now have been attended to with proper medicine for their injuries, or have a warm tent or blanket to live in the ensuing winter, there are surely many prayers of thanks.

A key Islamic teaching based on the Qur'an is that -- "saving a life, is like saving all of humanity.'

The business community's role in this is surely priceless.

Table: See Corporate Donor/ Matching Program List (Domestic and International)

How to Donate


Your Feedback

You write about PIA offices that they take relief goods. I don't know if it goes for all the offices, but at least the one in Norway doesn't, and neither does the embassy. Just thought you'd like to know...

Lise Rudvin

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When Government Broke Down, Business Stepped Up
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OPEN Silicon Valley Chapter