Renata Limited, a leading pharmaceutical company in Bangladesh, appeared as a unique model for other firms in doing activities under the corporate social responsibility (CSR), its top official said.
"Renata became quite a unique model because of its ownership structure with the Sajida Foundation, a large NGO, which owns 51 per cent shares in it; so, 51 per cent of the profit is actually allocated for the poor in theory," Syed S Kaiser Kabir, CEO and Managing Director of Renata Ltd, told the FE in an interview recently.
"Whether Renata has any other CSR or not, by the fact of the ownership structure, it ensured that whenever Renata grows, it gives something back to the society through the foundation as well; this is quite a noble feature of Renata,",
In recognition of the CSR activities of Renata, it won the 4th Standard Chartered - Financial Express CSR Award in 2012.
When asked about his feelings about the recognition, Mr Kabir said that the company normally doesn't care about any award; because, to keep shareholders and customers happy, doing the activities under CSR is its objective.
"But, this award that we had meant a lot; because, this award was the recognition that Renata is quite a unique model because of its ownership structure with Sajida Foundation; that meant a lot," Mr Kabir continued.
Renata actually inherited CSR characteristics from its previous company Pfizer (Bangladesh) Ltd, which, under the CSR, would treat the employees fairly, look after their heath care, and other financial needs, and played a role in various national crises.
Since the inheritance in 1993, Renata's CSR is going on; so, CSR has been ingrained into Renata for the very long time, he said.
"I am hoping that this award will motivate other companies to be more long term in their business; they will do business ethically, care about their employees, care about environment, care about complying with the laws of the country," the Renata MD said.
About the advantages of the CSR activities in the companies' business, he said, "These days, CSR has become important internationally; the companies that are recognised for CSR has business advantage overseas," he said.
Another thing is that the companies, wishing to stay in business and make profit for long time, naturally appear to be very socially responsible, he said, because, if you wish to stay and grow in your business for very long time, you have to be nice to people, your employees, your customers and the environment.
Mentioning Renata's enduring environmentally friendly atmosphere and business activities, its managing director expressed his hope to win one more award in this connection. "In fact, I just want to win one more award that will show the Renata as environmentally friendly."
Apart from CSR activities through Sajida Foundation, Renata itself under CSR also spent in different sectors. Such CSR in 2012 include healthcare of its employees and their families, blankets for the poor, financial aid during Korail slum eviction, treatment for patients with life-threatening illnesses, laparoscopic surgical instruments for BSMMU,JAAGO Foundation, scholarship for meritorious students, the poverty fighter foundation (PFF) school, a new cancer ward at Dhaka Medical Hospital (DMH), SEID Trust, financial support for Sheeba and financial assistance to ex-employees and their children. Total CSR expenditure in 2012 was Tk 29,381,339, which is 2.36 per cent of the company's net profit, according to Renata's Annual Report-2012.
About the pharmaceutical company's investment plan, he said, "Renata is investing quite aggressively."
"Since 2009 to 2013, Renata has invested nearly Tk 8 billion to upgrade its capacities and capabilities; Renata will continue its aggressive investment," he said.
Of the investment, the company invested Tk 1520 million in 2012, Tk 2460 million in 2011, Tk 950 million in 2010, Tk 550 million in 2009.
Renata is doing quite well; it is growing in both of our pharmaceutical and animal business; the company is doing well in the stock market, he continued.
Mr Kabir also hopes to have much higher growth of Renata in its international business.
In a query, he said, "The business prospects are growing reasonably not extraordinarily; but the Renata is doing well; that's why (we moved for such investment)."
"To become an international player, we have to invest quite big; Bangladesh pharmaceutical market is not that large; Renata wishes to grow in the future outside (Bangladesh) to maintain very high rate of growth; to do so, there is no alternative to export; at this moment, out export is small; we have to develop that," he added.
Renata's tax contribution to the national exchequer in the five years since 2008 was: Tk 1,565 million in 2012, Tk 1,353 million in 2011, Tk 999 million in 2010, Tk 862 million in 2009 and Tk 617 million in 2008.
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