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Article

21 Feb 2011

Author:
Stephanie Strom, New York Times

For Pepsi, a Business Decision With Social Benefit

In the past, [Mexican] farmers would make the dangerous trek...to the United States, hoping to earn enough money doing odd jobs to cover debts incurred while cultivating the small plots of land...But more recently...some 300 small farmers...no longer sell their corn to middlemen but directly to PepsiCo, which guarantees the price it will pay for their crops...The social benefits of the corn program are obvious in higher incomes that have improved nutritional and educational standards among the participating farmers, not to mention its impact on illegal immigration...A growing number of major companies have adopted similar business tacks aimed at profitability that also prove to be economically and socially beneficial for needy people...“We are seeing an increased focus by companies looking to see how they can use their core capabilities for public good rather than simply writing a big check,” said Gaurav Gupta, regional director for Asia at Dalberg Global Development Advisors...[Danone, Philips Electronics]