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


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

65%

59%

National governments 53%

Large domestic companies 52%

Press

Trade Unions

Global corporations

50%

48%

42%


Views of business & sustainable development

Total 180 respondents; 71% attended WSSD

Companies – 58%; Others – 42%
















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 doing business

 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 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


Corporate Social Responsibility

Main Issues

How business handle:

 Human rights

 Environment

 Labor rights

 Working conditions

 Transparency / corruption

 Fair competitive behavior

 Responsible marketing

Etc.



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



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


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?


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


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


Business & development benefits

Development benefits

Sustainable

Business partnerships

Strategic CSR

Philanthropy

Business benefits


UNDP and Business:

Overlapping interests

Sound

Economy

Trained

Work Force

Peace

Development / CSR

Political

Stability

Fair and Honest

Regulatory

Institutions

Rule of

Law

Accountable

Government

Active

Civil Society

Healthy

Environment


What?


What?

Types of engagement / partnerships with business

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

GLOBAL LEVEL

UNDP & the Business Sector

Multi-sector partnerships

COUNTRY LEVEL

Bureau for Resources and Strategic Partnerships

Business, sustainable development and the MDGs

Business, sustainable development and the MDGs:

A changing landscape

Business and MDGs

Related documents

Products

Support

Business, sustainable development and the MDGs