This has been reflected in the positive developments in real GDP growth, lower inflation, a downward trend in lending interest rates coupled with a stable exchange rate. It must be stressed here that the Bank of Zambia is optimistic that further progress will be made in lowering inflation to a single digit in the near future as appropriate monetary and fiscal policies continue to be implemented. This will be supported by the effects of the movements in the exchange rate of the Kwacha, which is reflected for instance in the adjustment of the prices of petroleum products and the expected improvement in food supplies following the favourable rainy season. Ladies and Gentlemen, beyond delivering on its core functions of attaining price and financial system stability, the Bank of Zambia recognises the importance of being a good corporate citizen. In this regard, the Bank has for many years been involved in providing financial and material support to the two state universities by sponsoring a Chair at each of these institutions as well as providing educational awards and scholarships to deserving students. In assisting the needy, the Bank of Zambia and its employees have on several occasions made donations to charitable institutions.
Your Honour the Mayor, Chairperson, Ladies and Gentlemen, there is a growing awareness world over on the importance of the role that business communities should take in contributing to the improvement in the overall welfare of the communities in which they operate. It is being realised that even though Governments are accountable to their citizens, business houses can also make valuable contributions to society without heavily compromising their corporate objectives. You would agree with me Ladies and Gentlemen that companies that practice good corporate citizenship are usually preferred employers, investment partners and neighbours in the communities they operate. To help achieve their nonfinancial objectives, many have adopted corporate creeds or ethical statements as integral parts of their behaviour. Such firms know that their acceptance into new markets could hinge upon their contribution to the social well-being of their environment. Ladies and Gentlemen, this is a phenomenon that has become generally known as ‘Corporate Social Responsibility’ and refers to the attention by companies to community involvement, environmental protection, socially responsible products and processes, and socially responsible employee relations. Put differently, Corporate Social Responsibility is the extent to which businesses meet the economic, legal, ethical and discretionary responsibilities imposed on them by their stakeholders. The world over, Corporate Social Responsibility has promoted activities in key areas, namely education, health, the environment, culture and the arts. Examples of the activities generated by good corporate citizenship include charitable donations and local community action, e.g. employee volunteering, youth projects, unemployment schemes, etc.