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Engagement with the private sector – principles for engagement
DRAFT - 8 November 2010
SUMMARY
The Dhaka Board meeting (April 2010) requested that the Secretariat advise the Board on the
principles that should guide PMNCH’s engagement with the private sector. In defining the proposals
for principles to be adopted by PMNCH, this paper reviews the principles used in other organizations
and sets out a proposal for principles to be adopted by PMNCH. The paper does not propose areas
for PMNCH engagement with the private sector.
Review of principles for private sector engagement in other organizations
Other GHPs have varying approaches to principles for engagement. Some have adopted
comprehensive frameworks for engagement. Others have relied primarily on Conflict of Interest
policies applicable to all stakeholders. The most readily available principles are those used by the
WHO – which are also particularly relevant for PMNCH given its hosting arrangement with WHO.
WHO’s principles for engagement as set out in the WHO Policy Framework for Engaging and
Working with the Commercial Private Sector are: (i) interaction demonstrates a clear added value for
public health; (ii) maintain WHO’s independence in keeping with WHO policy on conflicts of interest;
(iii) no endorsement and no exclusivity; (iv) transparency; and (v) avoiding negative impacts on
health. These are supported by additional Guidelines on Working with the Private Sector to Achieve
Health Outcomes in 2000.
Proposed PMNCH principles for private sector engagement
Our judgement is that WHO principles are appropriate and fit for purpose in providing the basis for
PMNCH’s principles for engaging the private sector. We have therefore developed the PMNCH
principles in a way that builds on (and is compliant with) WHO’s approach.
The proposed principles are as: (i) strategic alignment; (ii) value add; (iii) independence and
impartiality; (iv) no endorsement and no exclusivity; and (v) transparency. They are described in more
detail in the paper.
Implementation of principles
Although the scope of this paper is limited to suggesting appropriate principles for possible private
sector engagement by PMNCH, the last section provides some observations on issues that would
need to be considered in applying the principles in practice. These are in addition to the possible next
steps associated with development of a policy in this area.
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1.
INTRODUCTION
1.1. Background
The Secretariat was asked to develop two further papers for the ninth Board Meeting (to be held on 15
November 2010 in New Delhi):
 a ‘Principles Paper’ for guiding PMNCH engagement with the private sector 1 (for the Board to
endorse / adopt the principles); and
 a ‘Background Paper’ on mapping of the private sector engagement in the global health sector (for
information to the Board).
This document is the Principles Paper and has been prepared with the support of CEPA and Barbara
Bulc. The context and background information is available in Section 1.1 of the Background Paper.
1.2.
Purpose and structure
This paper reviews the principles adopted by WHO and used in other Global Health Partnerships
(GHPs), and sets out a proposal for principles to be adopted by PMNCH. It does not propose areas for
PMNCH engagement with the private sector. It is structured as follows:
 Section 2 provides a high-level overview of the principles or approaches used by other GHPs and the
WHO in private sector engagement.
 Section 3 outlines the proposed principles for PMNCH private sector engagement.
 Section 4 proposes actions and next steps, including implementation considerations.
2.
2.1.
PRINCIPLES FOR ENGAGEMENT
Principles for private sector engagement of comparator organizations
Our review of principles of private sector engagement by other organizations is focused on WHO and
other Global Health Partnerships (GHPs).
The most readily available principles are those used by the WHO – which are particularly relevant for
PMNCH given its hosting arrangement with WHO. Although the Board will wish to define its own
approach, the WHO as host organization will need to be comfortable with the proposed approach (given
its reputational and legal responsibility for the administrative aspects of the Partnership).
2.1.1. GHP principles for engagement
Most GHPs which collaborate with the private sector have explicit policies or principles setting out the
basis for their engagement with private sector. For example, GHPs hosted by WHO (UNITAID, Roll Back
Malaria, Stop TB Partnership, Health Metrics Network) need to be compliant with the over-arching
principles detailed in the WHO Policy Framework for Engaging and Working with the Commercial Private
Sector. However, some have defined additional high-level principles, for example, in a COI policy.
1
For purpose of this paper we are referring to private sector as commercial private sector and business/industry alliances which
include commercial private sector. It is noted that similar principles would apply to non-commercial private sector but this is
not the scope of this document..
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Other GHPs appear to have varying approaches to principles for engagement. GAIN has adopted the
USAID framework; GAVI and The Global Fund have referred to private sector engagement in COI
policies applicable to all stakeholders; and IAVI and FIND have not developed specific principles at
present time.
2.1.2. WHO principles for engagement
WHO adopted Guidelines on Working with the Private Sector to Achieve Health Outcomes in 2000.
These guidelines were intended primarily to ‘help WHO staff interact appropriately with commercial
enterprises in order to achieve positive outcomes for health’, and largely consider private sector
engagement at an operational level. These guidelines are currently under review.
The WHO Policy Framework for Engaging and Working with the Commercial Private Sector was
developed by the Department of Partnerships and UN Reform and endorsed by the WHO Global Policy
Group in March 2010. The framework tailors the UN Guidelines for Cooperation in accordance with the
WHO mandate and activities, and builds on the previous WHO guidelines.
There are five principles for engagement and collaboration outlined in the framework:
 Interaction demonstrates a clear added value for public health
 Maintain WHO’s independence in keeping with WHO policy on conflicts of interest
 No endorsement and no exclusivity
 Transparency
 Avoiding negative impacts on health
Additional detail on the WHO principles is available in Annex 1.
3.
PMNCH PROPOSED PRINCIPLES
3.1. Principles
Our judgement is that WHO principles are appropriate and fit for purpose in providing the basis for
PMNCH’s own principles. We have therefore developed a series of principles for PMNCH in a way that
builds on (and is compliant with) WHO’s approach.
The proposed PMNCH principles for private sector engagement are: (i) strategic alignment; (ii) value
add; (iii) independence and impartiality; (iv) no endorsement and no exclusivity; and (v) transparency.
Strategic alignment
 Engagement has clear links to PMNCH mission and priority actions, and is well aligned with the
PMNCH strategy, priority actions, and work plan.
 Engagement is consistent and compliant with WHO technical norms and standards.
 Private sector organisation should not produce a product or engage in practices that would be
detrimental to health in any way or harm PMNCH’s / WHO’s reputations.
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Value add
 Engagement demonstrates value for public health in the area of MNCH.
 Engagement is additive, and creates value which is over and above what could be achieved by
PMNCH without engagement of the private sector.
Independence and impartiality
 Engagement must maintain PMNCH objectivity, integrity, independence and impartiality.
 Potential or actual, real or perceived conflicts of interests should be reported and managed in
keeping with relevant WHO policy and PMNCH Board approved COI principles.
 Pursuit of the public health goal takes precedence over the interests of the private sector
organization.
No endorsement and no exclusivity
 Engagement should not bestow any unfair competitive advantage to the private sector organization
and should allow a level playing field for all companies by ensuring that the collaboration is open to
all interested commercial parties on the same basis.
 Engagement should not provide endorsement or preference of a particular private sector entity, its
products and / or services.
Transparency
 While respecting individual privacy and institutional confidentiality, as appropriate, all interested
persons (within PMNCH and public at large) should easily be able to obtain information on:
o benefits to PMNCH and private sector organization;
o the nature and scope of activities;
o rules of engagement and mechanisms of decision for selection process
o delineation of roles, responsibilities, and contributions; and
o outcomes of engagement.
3.2.
Additional requirements
Other aspects of the WHO guidelines and framework, which are relevant and might be incorporated within
PMNCH’s approach are due diligence and monitoring and evaluations activities, which may be
conducted by the Secretariat:
 due diligence – including risk assessment, risk management and guidelines on the selection of
partners (including legal and communication aspects) and the engagement process. For example,
partners should have sound corporate social responsibility track record and leadership, a history of
commitment to development and health goals, responsible environmental and labour practices, and a
positive public image.
 monitoring and evaluation – a framework for qualitatively and quantitatively assessing the impact of
collaboration. For example, aspects of efficiency, effectiveness, and sustainability of shared working
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with the private sector could be assessed.
Such practices may apply equally to all PMNCH stakeholders
4.
IMPLEMENTATION OF PRINCIPLES
Although the scope of this paper is limited to a review and proposal of the appropriate principles for
possible private sector engagement, this section provides some observations on next steps and issues
that would need to be considered in applying the principles in practice.
4.1. Next steps
Assuming that the Board decides to adopt these or other principles, we presume that it will be
appropriate for the Secretariat to develop a further brief policy paper that outlines additional details on
how PMNCH would engage with the private sector. This might include, but is not limited to: (i) a value
proposition identifying how and in what areas the private sector could be beneficially engaged based on
PMNCH’s strategy, Workplan, targets, and priority actions; and (ii) appropriate risk management and
clearance procedures. The proposed areas and mechanisms for engagement need to abide by the
defined principles of engagement, which would be consistent with WHO policies / guidelines for
engaging the private sector.
4.2. Implementation considerations
We provide here some initial views on specific issues that might arise in ensuring compliance with the
principles in different circumstances – please note that the considerations are not exhaustive. The issues
are categorized into general considerations and four hypothetical areas of engagement-specific issues:
knowledge sharing, advocacy, governance, and resource mobilization.
These illustrative areas are purely indicative and do not represent proposed or agreed areas of PMNCH
engagement with the private sector. The actual role of the private sector will depend on PMNCH’s value
proposition and areas of engagement.
General
In addition to the principles, fairness and reciprocity are important considerations in terms of building
strategic, long-term relationships in an atmosphere of mutual trust. Fairness and reciprocity can be
considered in terms of commitment, contribution and accountability.
 Commitment: Principles should be reciprocal, to the extent appropriate / possible.
 Contribution: All parties should commit to building the partnership and dedicating time and resources.
 Accountability: All parties must be accountable for both positive and negative results and outputs,
respecting the need to protect the reputation and integrity of all partners.
Knowledge Sharing
‘Transparency’ would be an issue in knowledge sharing. Given knowledge sharing activities can be wide
ranging, we consider here an example of operating a knowledge portal. Particular issues for consideration
include the need for:
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 A clear document outlining both:
o scope of work and roles and responsibilities, e.g. consideration on which party will develop the
portal, which party will maintain the portal and so on; and
o ownership of knowledge sharing products developed.
 Recognition of contributions of private sector entity.
Advocacy
The key issues around collaboration in joint advocacy related activities are likely to arise around ‘no
endorsement and no exclusivity’:
 Use of PMNCH brand and any co-branding in any joint promotions / campaigns to be carefully
considered and cleared on a case by case basis as per WHO guidelines to ensure no implicit or
explicit endorsement.
 Collaboration with industry body or alliance is one way to ensure ‘no exclusivity’.
Governance
WHO and private sector ‘independence and impartiality’ would be of utmost importance when engaging
in governance activities:
 Compliance of private sector entity / individual with any Board procedures and conflict of interest
policy.
‘No exclusivity’ could be managed by:
 having membership open to a number of private sector organizations (which meet principles) in a
dedicated constituency; and
 limiting Board members to elected / nominated constituency representatives.
‘Transparency’ could be ensured by:
 Clear communication of new members/constituents (e.g. on website, by emails).
 Contributions from private sector representatives documented in Board/ committee meeting minutes
and made public.
Resource mobilization
‘Transparency’ requirements of PMNCH and the private sector party where donations are received by
the Partnership could be in line with requirements for existing donations.2 For example:
 Any ring-fencing or restrictions on donations would need to be mutually agreed by both parties;
 PMNCH and private sector entity to declare any cash or in-kind donation; and
 PMNCH would monitor use of any private sector donations.
2
As opposed to donations for the wider cause (e.g. funding for specific countries), which is part of advocacy activities.
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ANNEX 1: WHO PRINCIPLES FOR ENGAGING WITH THE PRIVATE SECTOR
There are five principles for engagement and collaboration outlined in the WHO Policy Framework for
Engaging and Working with the Commercial Private Sector:
 Interaction demonstrates a clear added value for public health – this can be seen in terms of
mobilizing contributors, knowledge and resources, and creating synergy, in order to achieve a publichealth goal that would otherwise not be met to the same extent. Any collaborative activities with the
commercial private sector must have a direct relevance to and be in support of achieving WHO’s
mandate as laid out in the constitution, World Health Assembly resolutions, General Programme of
Work, and Medium Term Strategic Plan objectives, advance WHO goals and be consistent with
WHO technical norms and standards. In cases where a collaboration is active at country level, WHO
engagement must be based on national priorities and have endorsement of the host government.
 Maintain WHO’s independence in keeping with WHO policy on conflicts of interest – WHO to
maintain its freedom of action and independent decision making ability by ensuring independence
from commercial interests. Pursuit of the public health goal takes precedence over the special
interests of the commercial private sector. Collaborations must maintain WHO’s objectivity, integrity,
independence and impartiality. This involves identification of interests collaborating parties and
assessment of potential real or perceived conflicts of interests in keeping with WHO’s policy on such
conflicts, and subsequent management of these conflicts or exclusion from participation. The
collaboration should avoid the commercial private sector having or being perceived as having a
vested commercial interest in the outcome of collaboration.
 No endorsement and no exclusivity – cooperation should not provide exclusivity for a commercial
private sector entity or imply endorsement or preference of a particular commercial private sector
entity or its products or services. WHO’s collaboration with any one private sector organization
should not bestow any unfair competitive advantages and ensure a level playing field for all
companies. Collaboration should be open to all interested commercial parties on the same basis.
 Transparency – as a public multilateral organization, cooperation with the commercial private sector
must be transparent. While respecting individual privacy and institutional confidentiality, as
appropriate, the aim must be for all interested persons to easily obtain information on the nature and
scope of activities, including transparent acknowledgements and general information, as appropriate,
on WHO websites. Increasing broad participation of as many stakeholders as possible is desirable.
 Avoiding Negative Impacts on Health – WHO should not collaborate with companies who produce a
product or engage in practices that would be detrimental to health or harm WHO’s reputation.
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