Theme 1: The Role of Business in Advancing Peace Through Commerce

[Peace Through Commerce]

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A discussion moderated by Cindy Schipani, Professor of Business Law, Ross School of Business Visit Biographies for more about presenters

How can business contribute to sutainable peace?
In this session leaders from business and NGO institutions provide their understanding of the ways that commerce and peace link together. The presentations focus actual experiences of institutional leaders and empirical testing done of the relation of business and peace. The speakers range from groceries to tourism to technology to international development.

Presentations:
What do leading business and NGO leaders see as the contribution business can make to sustainable peace?
Watch the four videos and join the discussion with presenters below.

	Steve Killelea, Australian Entrepreneur and Philanthropist, Founder of Global Peace Index "The Compelling Case for Business to Embrace Peace"(6:41)			Walter Robb, President & Chief Operating Officer, Whole Foods Market "How We Do Business Matters: the Case for Conscious Capitalism"(5:34) Presentation slides Full Presentation Video

	Roger Dow President & CEO Travel Industry Association of America "Peace From The Perspective of the Tourism Industiry"(9:28)			John Sullivan Executive Director Center for International Private Enterprise "The Center For International Private Enterprse's Public-Private Partnerships and Peace"(8:37)

Resources

• Global Peace Index 2008 and GPI Country Rankings 2008
• CIPE Overseas Report CIPE Executive Director John Sullivan speaks with CNBC Pakistan about the importance of strong corporate citizenship within the modern business model.
  
• Walter Robb's presentation slides from "How We Do Business Matters: the Case for Conscious Capitalism," including Whole Foods stakeholder map (page 4).

Discussion: How can business contribute to sutainable peace?

1. Is asking business to contribute to peace an extension of corporate social responsiblity or is it something different?

2. Each speaker provides a concrete, positive example or set of examples where businesses have made a contribution to social harmony. Do you think the kinds of businesses and NGOs they represent in these industries can replicate what these organizations have done? Are there other busineses that you think could also play a leading role in promoting peace?

3. What impact, if any, do you think the recent global economic downturn will have on these efforts?

[Sean Callaghan]

Susan you have hit the nail on the head - most (if not all) corporations (and consumers) do not consider how their business (and purchases) fuel or dampen conflict. That was the case with poverty and with environmental issues - and things have started to change - with much effort.

How many when choosing an engagement ring consider the conflict implications of "blood diamonds"? How many when eating chocolate easter eggs will think of enforced child labour in west Africa? How many when filling up their car - think not only of their carbon foot print but of the conflict that surrounds their oil purchase - in Iraq, or Nigeria. Or how many when they pick up their cell phone consider that the key minerals in that device where mined in Eastern Congo and have flued a conflict that has cost the lives of millions?

And should they? Perhaps? But could this not be where business and the international community steps up and regulates? In a few days the G20 will meet - they will talk about regulations BUT I am sure that regulating "conflict cocoa" or "conflict coltan" will not make it to the agenda.

[Alexandra Ospina Giraldo]

In my job related Private Sector Role as peacebuilder, I think the most amenable are companies with interest in natural ressources. The reason: Maybe because they are in conflictive regions and many eyes are overthem.
One way to encourage peace activities is strengt relationships with many actors, for example in Colombia there is a net created by business, churches, NGO's, Universities, etc. and it have been a good tool to create peace.

[Stephanie Landers]

The discussion question regarding how business can contribute to sustainable peace is an interesting one, if only because in answering it people often focus on how business can avoid contributing to conflict, which in fact answers a very different question. Business can avoid contributing to conflict by, using an extreme example, not purchasing raw diamonds from illegal diamond mines run by violent warlords. Likewise, business can not harass union leaders and not cooperate with repressive governments who persecute union leaders as threats to government authority. These examples, however, show only the lack of an action.

How business can actively contribute to peace--both in its prevention and in its mitigation--is a far more complex question. It also begs the response, "Should they? Is it even appropriate?” Graham Baxter points out that businesses do not generally hold any democratic mandate, so becoming directly involved in the political process of conflict resolution may be problematic. If there is an appropriate form of involvement, what is it and, to go to Cindy’s most recent question, what types of businesses would be most amenable to it?

All businesses can contribute to peace in some way.They can avoid actions that lead to conflict (i.e. refusing to be drivers of conflict). But they can also actively contribute to peace by helping to prevent conflict and by creating an enabling environment for peace. Business can contribute to stability (and thus conflict prevention and enabling environments for peace efforts) by treating local employees fairly and providing them and their communities with education and healthcare. This benefits businesses regardless of conflict status, since it forms a more productive workforce, but it also leads to social and economic stability, which both prevents and mitigates conflict.

Naturally, some businesses are more easily able to create social, economic, and other development programs and mainstream development ideas into their regular work because these “mesh” better with their already existing missions. But even those companies labeled “evil” like oil conglomerates and pharmaceuticals can do good. In fact, they are often in the best position to do the most amount of good, since their actions affect so many so greatly. Providing education and healthcare to the community from which an oil company draws its local employees (or helping government do so) is not expensive for the company in relative terms, can have a tremendous impact on the community, and is profitable for the company because it creates local stability (which is good for business) and productive, loyal employees. Minimizing environmental impact does the same, though it is more costly. And it’s all wonderful public relations, for those cynics out there.

One theme about which I'm interested in hearing more perspectives is how, or whether, businesses should be involved in conflict resolution. They can and should help create social and economically stable environments, which in turn prevent conflict, promote peace, etc. But is there a role for business in the resolution of conflict that goes beyond this?

[jessica romo]

If something has been clear from assessments in development areas is that development itself, as a concept and practice is a highly contradictory issue. As a concept is a widely used to include anything wished. Some groups - such as the IMF, World Bank - have defined development as economic growth whilist others argue that economic growth is not an end or goal but just a mean to social and physical well-being.

Much "development" has been pushed by governments trying to make use of every valuable resource, companies quickly invest or buy in developing countries and what usually happens is that the most vulnerable groups are found settled around or on the areas with vast natural resources, resulting in numerous displacements, conflict, insecurity, more social and economical exclusion. These groups are generally identified as small local communities, tribes and the poor.

If we define economic growth as being at least one of the factors that contributes to peace, it then essential not only to encourage it but essential to create a participatory framework that would include all stakeholders to maximise its results and ensure a long-term sucess. Here is where CSR fits perfectly.

If peace makes economic growth possible and sustainable over the long term, it is in the interest of both the communities and the private sector to contribute in peace building or at least sustaining. Actively and directly participating in peace building (emergency response, peace negotiations) is something the private sector generally does but maintaining peace by ensuring an environment that would not foster conflict is a core competence. Companies can do so by including communities where possible (suppliers, employees), providing good services or products that protect the environment, ensuring human and labour rights for their employees, offering competitive wages and other social benefits.

In a world where reputation and image is constantly questioned and have a great impact on profits and shares, it is vital for companies to mantain a good relationship with communities, consumers, goverments and other interested groups to ensure the continued operation of the business in a predictable and secure environment that we can call peace.

Economic crises tend to have negative impacts on ongoing projects not seen as core business, these often fall in the category of CSR or social and environmental areas, which only means that we have not fully understood the complexity and interconnectivity existing between peace, development, growth and everything else.

[jessica romo]

If something has been clear from assessments in development areas is that development itself, as a concept and practice is a highly contradictory issue. As a concept is a widely used to include anything wished. Some groups - such as the IMF, World Bank - have defined development as economic growth whilist others argue that economic growth is not an end or goal but just a mean achieve to social and physical well-being.

Much "development" has been pushed by governments trying to make use of every valuable resource, companies quickly invest or buy in developing countries and what usually happens is that the most vulnerable groups are found settled around or on the areas with vast natural resources, resulting in numerous displacements, conflict, insecurity, more social and economical exclusion. These groups are generally identified as small local communities, tribes and the poor.

If we define economic growth as being at least one of the factors that contributes to peace, it then essential to encourage it, creaing a participatory framework that would include all stakeholders to maximise its results and ensure a long-term sucess. Here is where CSR fits perfectly.

If peace makes economic growth possible and sustainable over the long term, it is in the interest of both the communities and the private sector to contribute in peace building or at least sustaining. Actively and directly participating in peace building (emergency response, peace negotiations) is something the private sector generally does but maintaining peace by ensuring an environment that would not foster conflict is a core competence. Companies can do so by including communities where possible (suppliers, employees), providing good services or products that protect the environment, ensuring human and labour rights for their employees, offering competitive wages and other social and economic benefits.

In a world where reputation and image is constantly questioned and have a great impact on profits and shares, it is vital for companies to mantain a good relationship with communities, consumers, goverments and other interested groups to ensure the continued operation of the business in a predictable and secure environment that we can call peace.

Economic crises tend to have negative impacts on ongoing projects not seen as core business, these often fall in the category of CSR or social and environmental areas, which only means that we have not fully understood the complexity and interconnectivity existing between peace, development, growth and everything else.

[Rowan E. Wagner]

Peace though business: some thoughts for clarification.

As I have read through ongoing dialogue in the forum, I am pleased to see a range of voices and contributions. However, there is little on how we are defining both business and peace. So I would like to add my two cents worth and provide the start of this part of what I believe to an important component of the dialogue and to the solutions we are searching for.

Let’s begin with the concept of Peace; a very value laden word (concept) and for me in the context of this forum and set of ideologies has a relatively simple and clear definition form a pragmatic point. Peace - being the absence of destructive conflict.

Then to bring into the discussion Tom Ford’s very salient point on “business behavior and peace”; I would like to suggest that we define business as the activity of being proactively busy. In other words (modifying Freidman’s statement) the business of business is proactive busy-ness.

This to me gives a better starting point for a dialogue that could result in coming to pragmatic conclusions in addressing the challenging issues surrounding global destructive activities often used in the name of supporting business.

[Sean Callaghan]

Hi Rowan - I love it when someone cuts thru the clutter and makes a concise point. Thanks.

Taking your two statements:

1. Peace - being the absence of destructive conflict.
2. The business of business is proactive busy-ness.

... we can start to frame our thoughts on this discussion. If the question at hand is "How can business play a role in advancing peace?" then let me suggest a statement/question that we could unpack:

"Does businesses proactive busy-ness enable or disable destructive conflict?"

This is a question that needs to be asked in the specific - within a given context - and for each specific act of proactive busy-ness. For example does a specific proactive busy-ness exacerbate or mitigate divisions in a given society? Does it further exclusion and disadvantage or actively work against it?

I think that the most important FACT that comes from this discussion is that businesses proactive busy-ness DOES in fact have an influence on peace/conflict. No action is thus neutral. This is a lesson that we have learned in the environmental debate and which we need to now apply to peace.

Let me give a recent example: The violence in Kenya last January highlighted divisions in society - which were more about exclusion than about tribalism. Shortly after those events Safaricom issued an IPO which was designed to empower local Kenyans - however the minimum buy in was beyond the capacity of most Kenyans - as a result in my analysis the IPO had the potential to increase the sense of exclusion and thus fuel future conflict.

[Stephanie Landers]

Sean develops a good question from Rowan’s succinct working definitions of peace and business. Let’s take the question and quest for illustrative cases back to Cindy’s last post about “kinds of businesses.” Discussions often focus on multinationals and shouldn’t. I see two main groups of businesses in countries/regions approaching or experiencing conflict:

(1) Multinational/foreign companies
(2) Domestic private sector companies

Only two percent of the world’s population work for companies with 100 or more employees, so small -and medium-sized enterprises have a big role to play.

International Alert published a report titled, ““Local Business, Local Peace: the Peace-building Potential of the Domestic Private Sector”. It contains over 20 case studies where private sector actors took proactive steps in violet conflicts in Afghanistan, Bosnia, Colombia, and Sri Lanka, among others. I’ve been unable to find the report online to provide a link here, but a summary of its findings is that the domestic business sector can contribute to peace by:

1) Supporting the formal peace process (directly or by mobilizing public opinion to support peace-building efforts)
2) Addressing issues in the economic sector (e.g. providing jobs and economic growth)
3) Building bridges between communities and groups
4) Alleviating security concerns
5) Promoting the role of women entrepreneurs

We’ve already discussed (2). Do you have any examples of (1) and (3) we could learn from? An example from Nepal:

Until April 2006, Nepal had spent ten years in a “People’s war” declared by Maoist rebel groups. In 2003, the Nepalese business sector began the establishment of the National Business Initiative for Peace (NBI), which was made up of 14 national business organizations. NBI was a way for businesspeople to seek collective security from the Maoists, who saw the business sector as a class enemy, but also to take up their role in addressing widening inequality in Nepalese society. NBI engaged with the Maoists and also reflected on issues like the low rate of tax compliance and low spending on social services. It has declared its commitment to “promote sustainable peace in Nepal through just socio-economic growth.”

In April 2008, business people argued that the upcoming Nepalese constitution should focus on ensuring a business enabling environment. They stressed the need for inclusive and participatory growth to incorporate marginalized groups in national development; argued for agricultural productivity to combat increasing unemployment; highlighted the inter-dependence of economic reforms, peace, security, and governance; and emphasized the importance of the relationship between employers and employees, given how social and labor issues are directly related to economic growth and peace. They also took advantage of the future government's desire for economic growth to promote political stability: they framed their argument for well-functioning rule of law by connecting it to sustainable economic development.

[Sean Callaghan]

Thanks Stephanie - it feels like we are really engaging in something quite helpful here. There is a very similar case study from South Africa - from the early 1990. There is a great article on this at http://www.peoplebuildingpeace.org/thestories/article.php?id=205&am...

Below are two extracts that give you a sense of why you should read more:

"During the [late 1980s and early 1990s], a small group of senior business leaders decided to take action and form an organisation to interact with the different political parties in the hope to assist a peaceful and negotiated settlement. They called it the Consultative Business Movement (CBM). It started by consulting with political leaders across the political spectrum, including the banned or restricted organisations. This led to the business leaders betterunderstanding the political dynamics, and built relationships between business leaders, political leaders and activists. This credibility and these relationships enabled CBM to make a successful intervention in the peace process of the early nineties."

For example: "A joint intervention by the South African Council of Churches and CBM, averted conflict. This intervention resulted in business, churches (black and white) and organised labour, as well as all the major political parties, jointly working on a peace process that led to the signing of the National Peace Accord in September 1991."

Sean

[Stephanie Landers]

Thank you for this article, Sean. In reading different examples of what businesses and business organizations have done, I'm always left wondering where the resources (i.e. funds) come from. On page 7, the article you posted has an example of how the The Business Trust for Job Creation and Human Capacity Development was funded and structured. Very useful!

[Natalie Ralph]

Stephanie, a couple of egs of places to look on business building bridges etc is the Institute for Multitrack Diplomacy (IMTD) in the US – they had some work in Kashmir I think. Check out Palestine International Business Forum (PIBF) – there may be something there. And the regional work of the CBM in South Africa. But, as I think you pointed out earlier, International Alert have fabulous work in this area. Good luck!

[chika njoku]

i think this is a very important discussion, and i think that everybody should be part of this discussion, i want us to know that its not just finding solutions, but also implementing it to make sure its working in other to make sure that their is some form of change in our society.
all hands must be on deck!!