“We have to commit to showcasing our moral capital”
“We have to commit to showcasing our moral capital”:
Gareth Ackerman of Pick n’ Pay on Philanthropy, Customer Sovereignty and Sustainability
Rotterdam, March 2008 --- Gareth Ackerman, Chair of Pick n’ Pay Holdings Ltd. recently presented to the MBA,EMBA and OneMBA classes of Rotterdam School of Management, Erasmus University, concerning the importance and challenges of embedding CSR, sustainability, and philanthropy into today’s business.
Pick n’ Pay is South Africa’s most successful chain of grocery stores, a family-controlled business since 1967, when it began with four small stores. Since that time, the retail chain has grown to include 142 supermarkets and 16 hypermarkets (larger outlets with a mix of food and general merchandise); through Group Enterprises, the company has a majority holding in 172 Score grocery stores and franchises; as well as 76 stores in Australia and five in Namibia. Overall the company employs over 62,000 people.
According to Gareth Ackerman, the secret to Pick n’ Pay’s success has a great deal to do with the progressive business ideas of his father, company founder Raymond Ackerman, who was insistent that such revolutionary (for 1967) concepts as ‘customer sovereignty’ and whose dictum ‘doing good is good business’ are only now being widely seen as critical elements to sustaining success. Well before the 3 Ps – People, Planet, Profit – the elder Ackerman’s ‘Four Legs of the Table’ model (which posits that responsible Administration, responsive Merchandise, Advertising/Social Responsibility and a focus on People are the elements of good and sustainable business) was proven to provide a sturdy support for all stakeholders.
‘The company was built on challenging the status quo, on being anti-establishment,’ said Ackerman to a group of OneMBAs. ‘Today we are the establishment. Our company philosophy is not to multiply profit, but to reinvest in communities,’ he continued. ‘If you look after the community, it will look after you.’
‘Looking after the community’ at Pick n’Pay includes maintaining low prices and presenting healthy and ethical food choices, such as organic and locally-grown items. But to see the full range of the CSR embedded in Pick n’Pay’s company philosophy, Ackerman presented a ‘pyramid of responsibility.’ The top of the pyramid, philanthropy, represents what he describes as the most visibly important aspect of corporate social responsibility in business today, above financial, legal and even ethical responsibility. 'Non financial issues are crucial to business today,’ he said. ‘You’ve got to be seen to be socially responsible.’
Of the various philanthropic foundations that are part of Pick n’ Pay Holdings Ltd., one – the Ackerman Pick n’ Pay Foundation – is fueled by 7.5% post-tax profits from the company ‘I run the foundation with a focus on entrepreneurship and sustainability,’ says Gareth. Projects could include supporting small farmers by not only buying their products, but by showing them how to run their businesses more effectively. Environmental causes, humanitarian relief after natural disasters, community housing projects and adult literacy are amongst Pick n’ Pay’s many philanthropic efforts. Sports events that engage large numbers of people – such as marathons and cycling events – also receive substantial and visible support.
This is good and important work, worth doing for its own value. But it functions in a positive way for Pick n’ Pay as well: ‘This all adds to the brand,’ says Ackerman. ‘We have to commit to showcasing our moral capital.’ The Pick n’ Pay website at www.picknpay.co.za helps to showcase the company’s ‘moral capital’ and offers information of such issues as nutrition, weight control, sport, environment and lifestyle.
How did Ackerman enjoy his fully-packed day at RSM, speaking with some of the sharpest minds in business education? ‘I always find this type of speaking is a huge challenge; I learn a lot more than I impart,” he says. ‘You’re speaking to very bright people, who ask a lot of tough questions. It’s mentally stimulating!’
Rotterdam School of Management, Erasmus University
Rotterdam School of Management, Erasmus University is a top-ranked international business school renowned for its ground-breaking research in sustainable business practice and for the development of leaders in global business. Offering an array of bachelor, master, doctoral, MBA and executive education programmes, RSM is consistently ranked amongst the top 10 business schools in Europe.
www.rsm.nl
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