1. Background Information Last September 11-13, 2005, WBI co-organized a conference on Business and the Millennium Development Goals together with InWEnt, the United Nations Global Compact, and Instituto Ethos of Brazil. The conference was an official side event to the Millennium Summit at the United Nations that took place September 14, 2005. This conference brought together a largely private sector audience with strong representation from the South as well as from multinational firms. The conference provided opportunities for business to business exchanges of practices and ideas on private sector contributions to development. Based on the conference, a report has been written by all conference partners, and a series of follow up events are now being planned to mark the report launch and to take forward the discussions from the conference. The Business, NGOs and Development conference hosted by WBI at World Bank headquarters will be the venue for the United States based launch of the report. This is an appropriate time to consider the overlaps in interests between different the private sector, government and civil society. The spread of lethal diseases such as HIV/AIDS, the scourge of terrorism, or environmental damage are challenges that can no longer be ignored by any one segment of society, any one sector, or any one region of the world. Companies cannot escape the impact of core development problems – they too need a safe and stable environment in which to operate. There is growing recognition of these shared problems, prompting innovative approaches to find shared solutions. In line with these trends, businesses are increasingly involved in achievement of local development objectives and the Millennium Development Goals (MDGs). The private sector is a crucial source of capital for development. The fact that private financial flows are now substantially larger than official development aid further confirms the need to engage business more actively in development efforts. There are many examples of great corporate generosity and philanthropy that have vitally important positive development impacts. US firms’ alone donated over $400 million for tsunami relief. Corporate responsibility, however, goes beyond traditional notions of philanthropy. It is a more holistic, sustainable, and economically-driven approach that recognizes that there are also positive drivers for business involvement in development in addition to considerations of risk management, not least due to the creation of new markets. Per capita income is rising in the developing world, opening up vast markets at the “bottom of the pyramid” - for as incomes rise for the four billion people currently living in poverty, market opportunities expand exponentially. The emergence on to the international stage of large firms based in emerging markets, such as India and China, also adds new dimensions to the debate as to whether they take a different approach to relations with civil society and other stakeholders. Partnerships between companies, NGOs and development institutions have significant potential. While there are a growing number of examples of innovative and exciting new business models and partnerships between companies, NGOs and governments that promote “wins” for all. However, it takes time to change mindsets and adapt to the potential of partnership models. There is therefore a role for academia in analyzing the growing number of examples of successful long term business-NGO partnerships and capturing the lessons learned in terms of what works and what doesn’t. Such cutting-edge research and dissemination of best practices can support a broader change in attitude and create a more conducive environment for effective multisectoral partnering. The challenge is to define the incentives for addressing this cross-cutting agenda, foster good will and areas of common ground between the stakeholders, and establish a level of trust that will allow financial and non-financial resources to be mobilized in a truly strategic, collaborative fashion, including through market based mechanisms.
2. Multi-sectoral partnerships and development - Gupta, Rajat K. Public-private partnerships as a development engine, The McKinsey Quarterly, 2005. (Registration required to view this article).
- UNIDO, UN Development Programme, and the UN Global Compact, Partnerships for Small Enterprise Development.
- Susan Stern and Elisabeth Seligman, eds., The Partnership Principle: New Forms of Governance in the 21st Century. London: Archetype, 2004.
- Nelson, Jane. Building Partnerships: Cooperation between the United Nations System and the Private Sector. United Nations Department of Public Information, 2002.
- Partnering for Success: Business Perspectives on Multistakeholder Partnerships. A new report released by the Kennedy School of Government, the International Business Leaders Forum, and the World Economic Forum. January 2005.
- Nelson, Jane. Leadership, Accountability and Partnership: Critical Trends and Issues in Corporate Social Responsibility. Report of the CSR Initiative Launch Event, June 2004.
- Nelson, Jane. UN and business partnerships: The Search for accountability in a complex world. In Accountability Quarterly, AccountAbility, May 2003.
3. Examples of successful NGOs - Business Partnerships 1. Business Alliance for Food Fortification (BAFF) - Health
The Business Alliance for Food Fortification (BAFF) is a strategic partnership network to strengthen private sector initiatives in food fortification for the poor in developing countries. The BAFF, jointly funded by the Global Alliance for Improved Nutrition and the World Bank Institute, is co-chaired by Coca-Cola, Danone and Unilever. The goal of the BAFF is to ensure a long-term, market-viable supply of fortified foods for the two billion people living with vitamin and mineral deficiencies. These deficiencies cause untold human suffering and millions of dollars in productivity losses and curative healthcare costs. The BAFF’s purpose is to identify new financial mechanisms and new business models, expand scientific knowledge and expertise in fortification, and catalyze joint action between companies, development partners and government.
Source: World Bank Institute Business and Nutrition Initiative, available at: www.worldbank.org/wbi/csr/nutrition 2. Partnership between “I.T. Employment for People with Disabilities and corporations a) eBay Foundation, a corporate foundation established by an internet auction power house, eBay made a cash donation of $42,000 to the project called “I.T. Employment for People with Disabilities.” Trust for the Americas/Net Corps, an international NGO, headquartered in the U.S, initiated the project, a winner of the World Bank Global Development Marketplace Prize in the year 2000. The program aimed to improve job prospects for disabled people by providing computer training and enhancing online networks to connect them globally and locally. The program was delivered in Central America--44 local NGOs in Honduras, El Salvador, and Nicaragua received instruction in how to train people with disabilities for employment
b) The company, Premier Programming contributed an in-kind donation to “I.T. Employment for People with Disabilities.” Their contribution ($500,000 in software) is closely related to their business; i.e, they specialize in products and technologies for people with disabilities. This contribution is a true “win-win” situation: Premier Programming gained connections, reputation and potential for its future business by offering an in-kind contribution, and the project gained valuable technical support. Source: The World Bank “Global Development Marketplace.”
3. Partnership between AUSOL and Croce
Autopistas del Sol (AUSOL), a Argentine road-building company won the contract to build highways in the Greater Buenos Aires. When the company faced strong opposition from the communities affected by the new highway layout, AUSOL formed a partnership with Alberto Croce, a leader of the Malaver cooperative, a grassroots organization. The partnership went through three stages. In the initial stage when Core contacted the company in 1994, community service was formally a part of the company mission, but AUSOL was not deeply committed to community engagement. But soon the company began to perceive Croce to be a valid counterpart in negotiation with the communities. Once the relationship proved to be beneficial for both parties, it moved to a higher level of the partnership. In 1996 Croce became an external company consultant on social issues, acting as a liaison between AUSOL and other communities affected by the new highway layout. Finally in 1999, AUSOL substantially increased its commitment to Croce and his work by providing extensive funding in the creation of the SES Foundation (Sustainability, Education and Solidarity.) Source: Austin, Raficco et al. “Social Partnering in Latin America.” Harvard University, David Rockfeller Center for Latin American Studies, Cambridge, Massachusetts, 2004.
4. Partnership among NIKE, Mercy Corps and the China Foundation for Poverty Alleviation (CFPA)
NIKE, Inc., the world most well-known footwear and apparel manufacturer announced its plan to donate $275,000 to a micro-enterprise program in China. NIKE’s donation will be used in Fuan County, situated in Fujian province, to provide credit for the poor in rural farming and fishing communities, who do not have access to credit through formal financial institutions. In addition, through its donation, NIKE and its partners will offer vocational training and education to loan recipients. Programs will include purchasing and negotiation, project management and marketing classes. Thirteen contract factories employing approximately 30,000 workers manufacture apparel, footwear and equipment for NIKE and its licensees in Fujian province. Over the three-year period, the goal is for the initiative to evolve into an independent, self-sustaining micro-finance institution in the Fujian province. According to Mercy Corps and CFPA, it is expected the micro-lending institution will serve a client base of over 8,000 beneficiaries and aim to increase the average annual income of the target population of loan recipients by more than 85 percent by the end of the four years. Mercy Corps and CFPA have been working together in China for several years to build capacity and develop financial resources for the micro finance programs. Source: NIKE Community Report of 2004. Available at http//www.nike.com
5. Partnership among Project HOPE and corporations
An international NGO, “Project HOPE headquartered in the U.S. (Project HOPE Hong Kong Foundation Ltd (PHHK) was established in 1997) launched a partnership for a five-year nationwide diabetes education and awareness program for health professionals and for the general public in China. Project HOPE is implementing this program in partnership with national and local health authorities, and with significant financial and technical support from three multinational corporations—Eli Lilly & Co., Becton Dickinson & Co., and Roche Diagnostics. All three companies have specific technical capabilities and products related to diabetes with excellent track records in corporate humanitarian efforts worldwide. Over the course of the initial five years, the program has had a national impact having trained over 160,000 health professionals in 31 provinces. Other achievements include the development a nationally recognized diabetes curriculum and series of training modules, as well as a software database. Project HOPE became the first non-Ministry of Health organization to obtain national credit status for its training courses. A Senior National Technical Assistance Group (SENTAG) comprised of Chinese physicians and senior nurses, foreign physicians, Ministry of Health representatives and Project HOPE technical staff meets regularly to support and guide the project. Funding for the program has come primarily from the corporate partners through grants managed by Project HOPE. Source: World Economic Forum Financing for Development Initiative, “Building on the Monterrey Consensus: The Glowing Role of Public-Private Partnerships in Mobilizing Resources for Development,” September 2005.
6. Coca Cola, Pact (International NGO headquartered in U.S. and Yayasan Paakta (an Indonesian NGO) - Education
The partnership is a pilot program of transforming library into youth learning centers. The project has resulted in considerable change in the library environments. Staff mentalities have begun to shift from bureaucratic to entrepreneurial and consumer service-oriented. The success of the first four libraries has motivated Coca Cola and Pakta to identify additional libraries to transform.
Source: PACT, avilable at: http://pactworld.org/initiatives/cce/case_studies.htm
7. Empresas Ariztia, one of Chile’s leading poultry producers & a local NGO, Municipal de Melpilla (CMM) - Local company-Local NGO Partnership
The head of this family-owned company played a leadership role on the board of the CMM and brought a managerial mindset to its administration of the NGO. By 2002 CMM was one of the few financially healthy municipal corporations in the region.
Source: Source: Austin, Raficco et al. “Social Partnering in Latin America.” Harvard University, David Rockfeller Center for Latin American Studies, Cambridge, Massachusetts, 2004.
8. AVON Mexico - gender oriented partnerships
The company has raised over 74 million pesos (about $6.3 million) that have been directly channeled to the fight again women’s cancers. The recipients include the Foundacion Cima; Grupo Reto; the Mexican Association for the Fight against Cancer; the Natonal Cancer Institute; and the Health Department
Source: AVON, available at: http://www.avoncompany.com/women/watw/index.html
9. Danone Mexico and the Casa de la Amistad - Cause related marketing
Mexicoan subsidiary of the Groupe Danone, a global actor in the food industry launched a cause-related marketing campaign with a NGO. The chosen partner was the Friendship Home (Casa de la Amistad), an organization engaged in providing free medical treatment to low-income children suffering from cancer. The company donated a fraction of the price of each yoghurt product sold over a period of time.
Source: Austin, Raficco et al. “Social Partnering in Latin America.” Harvard University, David Rockfeller Center for Latin American Studies, Cambridge, Massachusetts, 2004.
10. The Sialkot Chamber of Commerce and Industry, local Manufacturers, Save the Children-US, Pakistani NGOs, UNICEF and International Labor Organization (ILO). - Labor The partnership aims to prevent and eliminate the use of child labor in the production of hand-stitched soccer balls in Pakistan. Two programs are being developed to enable the project participants to achieve this goal. First, the Prevention and Monitoring Program is a voluntary scheme open to all manufacturers of soccer balls. Participating manufacturers are expected to meet a number of formal registration requirements concerning use of contractors, stitching locations and proof-of-age documentation for workers. Second, the Social Protection Program is designed to provide affected children , women and their families with educational and financial support, and to rise local awareness about child labor and the need for alternative.
Source: the Clean Clothes Campaign, avialble at: http://www.cleanclothes.org/publications/child_labour.htm
4. Global Organizations working on these issues
5. Articles and publications on Business and NGOs
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