Transcript Business, sustainable development and the MDGs

Business,
sustainable development
and the MDGs:
A changing landscape
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Understanding what
drives business
In a 1999 survey of 4000 Europeans, 86% said
they would be more likely to buy a product
from a company “engaged in activities to
help improve society”.
Fleishman Hillard, 1999, Consumers
Demand Companies with a Conscience
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Trust in business?
2003 survey on confidence in institutions
% of 19,000 surveyed that said they had a lot or
some trust in:
NGOs
United Nations
National governments
Large domestic companies
Press
Trade Unions
Global corporations
UNDP & the Business Sector
65%
59%
53%
52%
50%
48%
42%
Bureau for Resources and Strategic Partnerships
Views of business &
sustainable development
Total 180 respondents; 71% attended WSSD
Companies – 58%; Others – 42%
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Views of business &
sustainable development
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Views of business &
sustainable development
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Views of business &
sustainable development
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Views of business &
sustainable development
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Views of business &
sustainable development
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Views of business &
sustainable development
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Views of business &
sustainable development
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Business motivations?
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Cross sector partnerships
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Cross sector partnerships
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Cross sector partnerships
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Cross sector partnerships
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Business and MDGs
 Achieving MDGs will require greater & more equitable
economic growth – through responsible investments
and entrepreneurship
 Private sector central in addressing specific
development challenges – creative private sector
solutions to telecommunications, energy / electricity,
financial services, water and sanitation etc.
 Engaging the 4 billion at the “base of the economic
pyramid”, is enormous untapped business opportunity
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Why MDGs are important
to business
Three main reasons:
 Investing in a sound environment in which to do
business
 Managing the direct costs and risks of doing
business
 Harnessing new business opportunities
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
How business can impact MDGs
1. Corporate social responsibility
2. Core business – sustainable business
3. Policy dialogue, advocacy
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
1. Corporate Social Responsibility
…reflects a changing relationship between business
and society
CSR is:
“The continuing commitment by business to
behave ethically and contribute to economic
development while improving the quality of life
of the workforce and their families as well as of
the local community and society at large.”
World Business Council for Sustainable Development
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Corporate Social Responsibility
Main Issues
How business handle:
 Human rights
 Environment
 Labor rights
 Working conditions
 Transparency / corruption
 Fair competitive behavior
 Responsible marketing
Etc.
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Corporate Social Responsibility
What can companies do? Social investments:
1. PEOPLE – advisors, volunteers, secondments
2. MONEY – grants, loans, venture capital, equity
3. PRODUCTS AND SERVICES – donations, “at cost”,
social marketing
4. COMPETENCIES – technical, managerial, training
courses, work experience
5. FACILITIES – premises, equipment
6. ACCESS TO BUSINESS NETWORKS and decisionmakers
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Corporate Social Responsibility
The business case
Behaving responsibly improves business’:







Reputation management
Relationships with society, investors
Resource efficiency – cost savings
Responsiveness
Recruitment of motivated employees
Risk management
Identify new business opportunities
Sustainable business
value
Competitiveness
= Business Case
Corporate responsibility helps build stronger societies,
economies and new markets
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
2. Core business
 Products and services:
How sourcing, manufacturing, distribution, pricing etc.
of products and services can either contribute to or
impede the MDGs
 Policies and practices
How policies and practices in areas such as ethics,
the environment, health and safety, human rights,
labour relations, human resource management either
impede or contribute to MDGs?
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
2. Core business activities
Impact on development
 Investment and income flows
 Employment
 Goods and services
 Human resources
 Infrastructure
 Technology transfer
 Standards, business practices
 Local business development
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
2. Core business - Sustainable business
 Emerging concept – enterprises deliver appropriate,
affordable products & services that meet real needs
(energy, telecom, consumer products, basic services etc.)
Ex:
Hindustan Lever
Grameen Phone
 New way of doing business – new business models
require stakeholder engagement / partnerships
 Pilot experiences: WBCSD, UNDP / Global Compact,
“base of the pyramid” thinking
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Business & development
benefits
Development
benefits
Sustainable
Business partnerships
Strategic CSR
Philanthropy
Business benefits
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
UNDP and Business:
Overlapping interests
Sound
Economy
Fair and Honest
Regulatory
Institutions
Trained
Work Force
Peace
Political
Stability
Development / CSR
Healthy
Environment
Rule of
Law
UNDP & the Business Sector
Accountable
Government
Active
Civil Society
Bureau for Resources and Strategic Partnerships
What?
UNDP & the Business Sector
Bureau for Resources and Strategic Partnerships
Types of engagement / partnerships
with business
What?
1) Outreach & advocacy on CSR
2) Policy dialogues - business role in development
3) Partnership projects around development issues
4) Facilitating sustainable investments and
private delivery of basic services
Multi-sector
partnerships
GLOBAL LEVEL
UNDP & the Business Sector
COUNTRY LEVEL
Bureau for Resources and Strategic Partnerships