MDG
Net Consolidated Reply
QUERY:
Private Sector Involvement in MDGs/Poverty Reduction
13 April 2004, Prepared by Elham Seyedsayamdost and Laurel Gascho
Original Query, Akiko Ida, World Health
Organization Geneva, 24 March 2004
We often talk
about the necessity for the further involvement of the private sector in the
MDG processes. We also hear and read a lot about global public-private
partnerships (e.g. Global Fund). At country level the private sector has been
playing an important role particularly in the social sectors e.g. through the
provision of health services, however a different role from that of the public
sector.
Have the
actors in the private sector at country level been actively participating in
the national policy process of MDGs (e.g. formulating the national goals and
indicators, being part of the work plan...)? I would very much appreciate any
concerete examples (both positive and negative) and/or publications on the
private sector involvement in social sector Goals (e.g. Health, education...).
I wish to identify areas and ways the MDGs processes (social sector) at country
level can best benefit from the private sector, and possible issues and
solutions. This is a broad topic, but I would benefit any of your comments.
Thank you very
much in advance.
Best regards,
Akiko IDA
Technical Officer
Millennium Development Goals, Health and Development Department
World Health Organization (WHO)
Tel: 41 22 791 18 46 (direct)
Fax: 41 22 791 47 26
E-mail: idaa@who.int
Responses were received,
with many thanks, from:
1. Constance
Hybsier, UNDP Bulgaria
2. Casper
Sonesson and Amina Tirana, UNDP New York
3. Richard
Leete, UNFPA Malaysia
4. Laura
Rio, UNDP Uzbekistan
5. Akiko
Ida, WHO Geneva
6. Tim
Scott, UNDP Albania
Summary of Responses:
by Laurel Gascho and Sarah Renner
Although
outreach and engagement with the private sector is still in the initial stages
in some countries, it is an expanding area and members shared some concrete
examples that highlight initial attempts at co-operation. In particular, the Global
Compact (a UN voluntary initiative calling on companies to
adhere to human rights, labour, and environmental principles) was emphasized as
a platform for engaging the private sector around the MDGs and the nine Global
Compact principles at a country level.
30 UNDP country offices have helped launch Global Compact country
networks.
Experiences
UNDP Bulgaria - engaged the private sector
through their network of over 90 companies under the Global Compact program,
including:
§
Pain d’Or, a leading industrial baker and member of the Global
Compact network, supports the HIV/AIDS campaign by printing the AIDS logo and
message onto all packaging of it food products.
§
Danone and Metro run traineeship programs for underprivileged
youths to improve employment and income opportunities, a program now being
rolled out with all Global Compact companies in the country.
§
The UNDP Bulgaria website provides a great deal of information on
the Global Compact in Bulgaria, including more concrete examples of company
activities in support of the nine principals and the MDGs (Under ‘CSR
practices’). Visit http://www.undp.bg/globalcompact/en/gc_in_bg/gc_in_bg.php
UNDP Uzbekistan and the American Chamber of Commerce agreed that they have the
same interest for promoting economic and democratic reform. UNDP made a
presentation to the American Chamber of Commerce on the Global Compact and the
MDGs and then
jointly undertook a series of consultations and meetings to identify common
interests and areas of concern, eventually deciding on local development,
microcredit, and SME development as possible areas.
UNDP Albania recently fielded a mission to
initiate a series of MDG-Business Outreach activities in support of the Global
Compact, Corporate Social Responsibility, and the recent report “Unleashing
Entrepreneurship: Making Business Work for the Poor”. The TORs may be of benefit to other Country Offices at the
initial stages of supporting MDG Private Sector Partnerships. Visit the MDG Net Resource Corner on
the UNDG website at
http://www.undg.org/index.cfm?P=121
·
Business can contribute to the MDGs in three principal areas: By
ensuring that its core business products and activities are sustainable and contribute
to development goals; By engaging in
community outreach programs including social investment and philanthropy;
and/or By participating in public dialogue and policy advocacy.
·
UNDP
can play a facilitating role in promoting and advancing dialogue between the
private sector and the government on issues of common priority and concern
(such as creation of an enabling environment for attraction of FDIs).
UNDP Bulgaria
suggested the following guidelines for working with the private sector:
·
Involve the business community and private sector in partnership
with business associations, and through the Global Compact network.
·
Identify programme areas where the private sector can contribute
and 'show to the company what is in it for them'
·
Define clearly for the companies a 'give give relationship'.
What's in it for the UN? What's in it for the country? but especially, What is
in it for the Private Companies?
·
Launch projects which are in line with MDG goals
·
Recognize in any way, through PR, joint-marketing and branding,
senior acknowledgement all the private company's contributions to the
achievement of the MDGs so that you get their long-term commitment, funding and
support
The UN Global Compact Initiative:
This UN
voluntary initiative promotes social corporate responsibility and ethical
business. When companies sign up to the Global Compact programme they commit to
nine principles within the area of human rights labour and the environment,
which are very close to the 8 MDGs.
The initiative aims to encourage member companies to translate the
principles into concrete actions, to share these examples through presentations
or case studies, and to get them involved in the achievement of the MDGs at
country level. Visit www.unglobalcompact.org/
Presentation by Richard Leete at UNFPA Malaysia
“Can Business Help Achieve the MDGs?”
This
presentation provides an overview of the MDGs and emphasises the importance of
private sector involvement through corporate social responsibility. It introduces the Global Compact and
provides examples of numerous development initiatives inspired by it, ranging
from AIDS awareness to anti-corruption, e-learning to eco-efficiency. Visit the MDG Net Resource Corner on
the UNDG website at
http://www.undg.org/index.cfm?P=121
IBLF/UNDP Publication “Business and the MDGs”
This report
provides a very good overview of how companies can contribute to the MDGs by
outlining a framework and providing a range of concrete examples for how
business can contribute to the MDGs.
These examples are categorised in three principal areas: 1) ensuring
that its core business products and activities are sustainable and contribute
to development goals; 2) engaging in community outreach programs including
social investment and philanthropy; 3) participating in public dialogue and
policy advocacy. Visit http://www.undp.bg/globalcompact/en/csr_in_action.php
Report from the Commission on the Private Sector
and Development “Unleashing Entrepreneurship: Making Business Work for the
Poor”
This report focuses on how business can create domestic employment and wealth, free local entrepreneurial energies, and help achieve the Millennium Development Goals. It makes a strong argument for the point that without local private sector development and without greater involvement of the private sector in addressing development issues, it is unlikely the MDGs will be achieved. It provides a set of recommendations to various actors for how to further stimulate both local private sector development and to enhance private sector involvement in development targets. Visit http://www.undp.org/cpsd
Responses in Full:
Constance Hybsier, UNDP Bulgaria:
Dear Akiko,
thank you very much for your question in regards to private sector involvement on the MDGs.
May be we can share some experiences we have made here in Bulgaria within our network of over 90 companies under the Global Compact program.
The Global Compact programme is a UN initiative, which you must be aware of, which promotes social corporate responsibility and ethical business. When companies sign up to the Global Compact programme they sign up to nine principles within the area of human rights labour and the environment (http://www.undp.bg/globalcompact/en/the_9_principles.php). These 9 principles are very close to the 8 MDGs.
The objective of companies involvement in the Global Compact is to translate principles into concrete actions. and to get companies involved in the achievement of the MDGs at country level, and for us here - in Bulgaria:
To give you a few concrete examples of how companies do this:
* Pain d'Or, leading industrial baker supports
HIV AIDS campaign by printing the AIDS logo and message onto all packaging of
its food products. - MDG 6
* Danone and Metro employ and have traineeship
programs for underprivileged youths to give them the same chance to access
employment and to earn an income despite their lack of education and training
skills (this programme is now being rolled out with all the Global Compact
companies in Bulgaria) - MDG 1
* More examples of Corporate Social
Responsibility in action at: (http://www.undp.bg/globalcompact/en/csr_in_action.php)
Based on our Global Compact experience from Bulgaria, I would like to further answer your question by outlining ideas for working with the private sector to achieve the MDGs:
* involve the business community and private
sector in partnership with business associations, and through the Global
Compact network.
* identify programme areas where the private
sector can contribute and 'show to the company what is in it for them'
* define clearly for the companies a 'give give
relationship'. What's in it for the UN? What's in it for the country? but
especially, What is in it for the Private Companies?
* Launch projects which are in line with MDG
goals
* Recognizing in any way, through PR,
joint-marketing and branding, senior acknowledgement all the private company's
contributions to the achievement of the MDGs so that you get their long-term
commitment, funding and support
For Bulgaria, we also strongly believe that the involvement of the Private Sector in the country's development will be crucial in changing the perception of foreign investor to our country.
In terms of a very good publication on Private Companies leading in the achievement of the MDGs, I would like to highly recommend to you the IBLF publication on Business and the MDGs which you can find on our website at the following URL: http://www.undp.bg/globalcompact/en/business_mdgs/business_mdgs.php
Please do not hesitate to contact me or anyone of the GC team in Bulgaria at anytime in the future if you should you have more questions on private companies and the achievement of the MDGs.
I wish you a very nice weekend,
Constance Hybsier
UNDP - GLOBAL COMPACT BULGARIA
25 Khan Krum St. (P.O.Box 700)
Sofia 1040, Bulgaria
Tel: +359 - 2- 9696 129
Fax:+ 359- 2- 9813 184
email: constance.hybsier@undp.org
http://www.unglobalcompact.org/
Casper Sonesson and Amina Tirana, UNDP New York:
Dear Akiko
Thanks for your question on this important topic. Over the last couple of years, we in UNDP have been expanding our outreach to and engagement with the private sector in a quite significant way and many parts of UNDP are now actively cooperating with the private sector in various ways (including country offices, our various policy / technical units etc).
Most generally, the inclusion of broad and diverse segments of society, including the private sector, in the MDG processes—from advocacy for action to debates over policy choices and budgetary priorities to monitoring of government commitments and progress—can be an important component of successful, sustained national action toward the MDGs.
Constance from UNDP Bulgaria has already provided you with a great example of how the UN Global Compact can serve as a platform for engaging the private sector, including both around the nine Global Compact principles as well as around the MDGs. Our office in Bulgaria is only one of more that 30 UNDP country offices that have helped to launch Global Compact country networks so there is an emerging wealth of experiences and lessons in this area.
Constance also pointed you to the joint IBLF / UNDP publication on “Business and the MDGs”. This document gives a very good overview for how companies can contribute to the MDGs. It outlines a framework and also provides a range of concrete examples for how business can contribute to the MDGs in three principal areas:
Another important and useful document in this regard is the report of the Commission on the Private Sector and Development, which was presented to the SG on March 1. This report makes a strong argument for the point that without local private sector development and without greater involvement of the private sector in addressing development issues, it is unlikely that the MDGs will be achieved. It also provides a set of recommendations to various actors for how to further stimulate both local private sector development and to enhance private sector involvement in development targets.
The full Commission report can be found at: http://www.undp.org/cpsd/
We’d be happy to answer any further questions.
With regards,
Casper
Sonesson
& Amina Tirana
Policy Advisor, Business Partnership
Division
Senior Policy Specialist, MDGs Unit
BRSP,
UNDP
BRSP, UNDP
Richard Leete, UNFPA Malaysia:
Dear Colleagues
I am pleased to share a presentation I gave recently on this topic: "Can Business Help Achieve The MDGs?" which may be of interest to those following this e-discussion.
Good wishes, Richard
Laura Rio, UNDP Uzbekistan:
Dear Akiko,
Like our colleagues in Bulgaria, we too in Uzbekistan use the Global Compact programme as a vehicle for dialogue and partnership with the private sector.
Early this year UNDP became a member of the American Chamber of Commerce which represents more than 60 companies (foreign and local) working in the country, 20 embassies and organizations such as ADB, EBRD, IFC and WB . Those most interested to working with UNDP within the global development compact seem to be: Daimlerchrysler, Chevron Texaco, British American Tobacco, ABM AMRO Bank, Newmont, Ernst & Young and UzAIG Uzbek and American Insurance Company.
After a series of consultations and meetings early this year, the American Chamber of Commerce and UNDP identified a number of common areas of focus and concerns in doing business in Uzbekistan. UNDP and the American Chamber of Commerce agreed that they have the same interest for promoting economic and democratic reform in Uzbekistan (i.e. need for stronger national statistics, convertibility, macroeconomic balance, administrative reforms, tax rules transparency).
UNDP’s business in Uzbekistan, the MDGs, was recognized by the American Chamber of Commerce as something worth investing time and thought when working in the specific Uzbek context. Also, UNDP comparative advantage, as a trusted partner of the government, was recognized by the private sector community as an important asset for possible future cooperation.
In order to explore further possibilities to cooperate with the private sector, UNDP made a presentation to the American Chamber of Commerce on the Global Compact and the MDGs, and undertook a series of consultations with the members of the American Chamber of Commerce. Possible areas for cooperation which lend themselves well in the specific country context and could be undertaken jointly for mutual benefit are: local development, micro credit and SME development. Furthermore, UNDP can play a facilitating role in promoting and advancing dialogue between the private sector and the government on issues of common priority and concern (such as creation of an enabling environment for attraction of FDIs).
At the regional Central Asian level the reopening of the borders with Afghanistan and resumption of trade as well as the necessity for reconstruction and long term development in Afghanistan represent concrete opportunities that are presently on the agenda of UNDP the government and the private sector in Uzbekistan.
We are now at a very early stage, and we are continuing our consultations with the private sector in Uzbekistan, including the American Chamber of Commerce. However, we hope that this information maybe useful to you. Should you need more details, please let us know.
Laura Rio
Adviser to UN Resident Coordinator System and
Christelle de Beys
Intern on Global Compact in Uzbekistan
Akiko Ida, WHO Geneva:
Dear colleagues,
I thank you very much for your responses for the past weeks, which I have been finding very interesting and useful. Here I am sharing the message on the subject from Martyn of Global Operation in Sweden, with his permission. It is his reply to my question on how the private sector can play its role in MDG framework, from his point of view.
As members of this network we come from different affiliations and background...perhaps we can frankly discuss his contribution as well.
Wish you a very nice weekend, and for those who are departing to holidays, wish you a peaceful Easter holiday.
Best regards,
Akiko
Tim Scott, UNDP Albania:
Dear Colleagues,
UNDP Albania has recently fielded a Mission to initiate a series of MDG-Business Outreach activities in support of the Global Compact, Corporate Social Responsibility, and the recent report on "Unleashing Entrepreneurship: Making Business Work for the Poor". These Mission Terms of Reference are attached and may be useful for other Country Offices at the initial stages of supporting MDG Private Sector Partnerships.
With best regards,
Tim Scott
UNDP Albania
VISIT THE MDG NET RESOURCE CORNER ON DEVLINK:
http://www.undg.org / password: mdgnet2003