business, sustainable development and the mdgs: a changing landscape

UNDP & the Business Sector Bureau for Resources and Strategic Partnerships

Business, sustainable development

and the MDGs:A changing landscape


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


Trust in business?

2003 survey on confidence in institutions

% of 19,000 surveyed that said they had a lot orsome trust in:

NGOs 65%United Nations 59%National governments 53%Large domestic companies 52%Press 50%Trade Unions 48%Global corporations 42%


Views of business & sustainable development

Total 180 respondents; 71% attended WSSDCompanies – 58%; Others – 42%


Views of business & sustainable development


Business motivations?


Cross sector 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


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 doingbusiness

Harnessing new business opportunities


How business can impact MDGs

1. Corporate social responsibility

2. Core business – sustainable business

3. Policy dialogue, advocacy


1. Corporate Social Responsibility

…reflects a changing relationship between businessand society

CSR is:“The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of lifeof the workforce and their families as well as of the local community and society at large.”

World Business Council for Sustainable Development


Corporate Social ResponsibilityMain Issues

How business handle: Human rights Environment Labor rights Working conditions Transparency / corruption Fair competitive behavior Responsible marketing

Etc.


Corporate Social ResponsibilityWhat 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 decision-

makers


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

= Business Case

Corporate responsibility helps build stronger societies, economies and new markets

Corporate Social ResponsibilityThe business case

Sustainable businessvalue

Competitiveness


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 practicesHow 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?


Investment and income flows Employment Goods and services Human resources Infrastructure Technology transfer Standards, business practices Local business development

2. Core business activitiesImpact on development


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 LeverGrameen Phone

New way of doing business – new business models require stakeholder engagement / partnerships

Pilot experiences: WBCSD, UNDP / Global Compact, “base of the pyramid” thinking


Developmentbenefits

Business benefits

Philanthropy

Strategic CSR

SustainableBusiness partnerships

Business & developmentbenefits


Development / CSR

Active Civil Society

Healthy Environment

PoliticalStability

TrainedWork Force

Fair and HonestRegulatoryInstitutions

Rule ofLaw

AccountableGovernment

PeaceSoundEconomy

UNDP and Business:Overlapping interests


What?


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

Types of engagement / partnerships with business

GLOBAL LEVEL COUNTRY LEVEL

Multi-sectorpartnerships

business, sustainable development and the mdgs: a changing landscape

Documents

business networks

world business council

social investments

social marketing4

economic development

responsible investments

economic pyramid

equitable economic growth