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| Innovation in a crisis - Private sector
strategies for development: access, competition and engagement in a
downturn |
| What is the role of business in the development
landscape? How will this change as the world enters an economic
downturn? While it is clear that the private sector drives the
economic growth that is critical for development, there is less
clarity on how this role is best played. |
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| Core business competencies for development
impact: moving beyond CSR |
| The shift from philanthropic CSR to using core
business for development impact is no longer just an idea. It is
being accepted within both the development and business sectors.
What are the implications for how we approach investment, ethical
trade, new technology and business culture? |
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| How can markets work better for the poor?
What approaches deliver impact at scale? |
| A growing number of projects are trying to help the
poor engage in markets – selling their labour or products, or
securing the inputs, finance and services they need. But too often
the scale of impact is limited, the output unsustainable. New
approaches are exploring how to make markets work for the poor –
commercially, systemically and fairly. |
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| Putting market access into practice:
reaching the bottom billion through corporate supply and
distribution chains |
| Businesses are expanding the market access of the
poor through new approaches in their supply and distribution
chains. What is being learnt from experience so far? |
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Background Note on supply and distribution chains
from the event organizers:
Supply and distribution chains of multinationals: harnessing
their potential for development (ODI
DFID BAA Background Note 2009). This highlights different
approaches to reforming supply and distribution chains for
development impact, along with key challenges. It also contains
hotlinks to a wide variety of corporate initiatives and reports,
beyond those listed here.
Examples from company panelists, and related
material:
SABMiller
Cadbury
- An overview about the
Cadbury Cocoa Partnership outlined on Cadbury’s website, a
study commissioned by Cadbury and carried out by the Institute
of Development Studies and the University of Ghana mapping out the
opportunities for sustainable production in Ghanaian Cocoa and
Cadbury’s 2007/08 online corporate responsibility and
sustainability review ‘Dear
Cadbury’.
Coca-Cola
- A
press release published by the Coca-Cola Company on the
occasion of the "Business Call to Action" launch, an
article published by Business Daily about Coca-Cola’s Manual
Distribution Centers (MDCs), and several
case studies about the MDC’s impact on small business
development in Africa published on their website.
Also on cocoa
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Towards a Sustainable Cocoa Chain, Oxfam (2009). A new report
examining the power and possibilities within the cocoa and
chocolate sector, identifying the stakeholders, purchasing power,
trends in the supply chain and making recommendations for
action.
Material including some practical ‘how to’ guidance
on reforming supply chains:
New reports that compare a wide range of business
models, synthesise lessons and highlight directions for
innovation:
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Emerging Markets, Emerging Models, Monitor Group (March 2009).
A review of 8 different emerging business models for market-based
solutions to poverty, 3 involving the poor as producers and 5
reaching the poor as consumers.
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Unchaining Value: Innovative approaches to sustainable supply
published by SustainAbility, UNEP and UN Global Compact (2008). A
review comparing supply chain initiatives of several companies, and
outlining the challenge to shift from incrementalism, to
transformational approaches that cascade sustainability
opportunities through the supply chain:
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Greening the Supply Chain in Emerging Markets: Some Lessons from
the Field from Greenbiz (November 2008). Analysing recent work
from the World Environment Centre (WEC) to uncover best practices
for making green supply chain initiatives succeed, and identifying
the value such efforts can bring to a company.
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Ethical trade and labour standards in a downturn the annual
report of Impactt addresses the question how corporations should
tackle the challenges of it. The underlying principle is that ‘the
task is getting harder, we need to get smarter’.
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Oxfam report, case studies and event, on business models that
support smallholder farmers within supply chains, reviewing
innovation in producer-driven, intermediary-driven and
retailer-brand driven agricultural supply chains. Available in
May.
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| Assessing impacts of business on
development: what do alternative frameworks offer? |
| For all the talk of enhancing the impact of
business on development, there is little measurement of what that
impact is – and little discussion of how to measure it. How
different is the information needed by auditors for verification,
by managers for enhancing performance, by the Board for public
disclosure or by policy-makers for moulding the investment climate?
This meeting will explore how and why different approaches measure
different things at different levels. At a corporate level, do we
measure the big numbers, the poverty footprint or report on
international indicators, such as those within the Global Reporting
Initiative? At the sector level, can we measure multiplier affects
on economic output, or track the value chain down to the poor? At
the enterprise level, how do we assess the local benefits of good
business initiatives, or of the whole business? What is useful,
when, and for whom? |
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Framework for Measuring the Development Impact of
Business
Presentation by Caroline Ashley, ODI
Background Note on Approaches to assessing business impacts on
development: This
paper has been prepared for the fifth meeting in the series on
‘Harnessing the Power of Business for Development Impact.’ The
fifth meeting explores how we can better understand the impact of
business on development, and particularly what companies themselves
do in this area. So far, in discussions of business models and
corporate innovation, a recurrent theme has been that we need to
know which approaches really do contribute effectively to
development, or create ‘social value’. But approaches to
understanding this are diverse. The purpose of this paper, and of
the meeting, is to explore contrasting approaches and to develop
key questions for further discussion. A revised version, drawing on
the meeting and on comments received, will be published as an ODI
Working Paper. Please send comments to
k.ellis@odi.org.uk.
Corporate Examples
Anglo American
Vodafone
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Presentation by Joaquim Croca, Vodafone
- Vodafone's assessment of the impact of mobile phones in India
collating data from many users on how they use their new technology
is covered in their public policy series report: ‘India: The Impact
of Mobile Phones’, available
here.
Unilever
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Presentation by Miguel Veiga-Pestana, Unilever
- The assessment of the impact of Unilever Indonesia, done
jointly with Oxfam is summarised in: ‘Exploring the Links Between
International Business and Poverty Reduction: A Case Study of
Unilever in Indonesia’, available
here. The assessment of Unilever’s economic footprint in South
Africa: ‘Measuring Unilever’s Economic Footprint: The Case of South
Africa’, available
here.
Other
- SABMiller: Their recent Enterprise Development Report: ‘Making
a difference through beer’, available
here, summarises and contrasts results of supply chain
initiatives in a number of countries. SABMiller’s contribution to
South Africa’s economy is summarised in a report available on their
website.
- Diageo: The assessment of Diageo’s Water of Life projects in
over 30 countries, looking both at the number of beneficiaries
reached, and longer lasting impact issues relating to
sustainability and community ownership is summarised in
theirreport: ‘Evaluation of the 2007 Water of Life Projects
in Africa’, available
here.
Donor Insights and Experiences
Review of key issues and
approaches
- An overview of different approaches to assessing business
impact on development: ‘Approaches to assessing business impacts on
development’, a framework paper produced for the fifth meeting in
the series, available here.
- A summary of key issues for assessing private sector
development: ‘The 2008 Reader on Private Sector Development:
Measuring and Reporting Results’ published by the Donor Committee
on Enterprise Development, available here.
New Tools
- World Business Council for Sustainable Development (WBCSD):
Measuring Impact Framework Methodology
- ARUP and Engineers Against Poverty:
ASPIRE framework, A sustainability Poverty and Infrastructure
Routine for Evaluation
- Social Enterprise London: Social IMPact measurement for Local
Economies (SIMPLE)
- New Economics Foundation: Social Return on Investment (SROI)
approach to measurement and value that can be used across public,
private and third sectors.
- ODI proposal for a "Good
for Development" company badge
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| Getting results from engagement: how should
government and business work together to enhance the investment
climate and business-driven development? |
| Partnerships between businesses, governments and
development actors are tackling constraints in the investment
climate and helping business to invest responsibly. How can
government best support business? And how can business help
governments to build capacity and appropriate policy? |
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Speaker Presentations
‘Getting the Investment climate
right’
- The Investment
Climate Facility for Africa (ICF) consists of private
companies, development partners and governments working together to
improve the investment climate in Africa. Find out more about their
work in an introductory brochure here.
- The Commonwealth
Business Council (CBC) through its Business Environment Survey
intends to strengthen the investment climate by providing an
information resource and proposed agenda for dialogue along with
specific action points for consideration. Find the latest survey
from 2007
here.
- The Doing Business
Project of the World Bank looks at domestic small and medium-size
companies and measures the regulations applying to them through
their life cycle. It provides a quantitative measure of regulations
for starting a business, dealing with construction permits,
employing workers, registering property, getting credit, protecting
investors, paying taxes, trading across borders, enforcing
contracts and closing a business. Find an overview about the
project here.
‘Risk Sharing: Stimulating the right investment
through Challenge Funds’
Examples of ongoing and closed Challenge Funds supported by
DfID:
- The Africa Enterprise
Challenge Fund (AECF) based in and run from Africa primarily
supports business ideas in the field of agriculture, agri-business,
rural financial services and the value chain.
- The Food Retail Industry
Challenge Fund (FRICH) aims to support the development of new
business models that will increase the flow of African food
products into the UK. In contrast to other funds it supports
projects and not individual companies or organisations. Find a
presentation of how the fund works
here.
- The Business Linkage
Challenge Fund (BLCF) supported commercially sustainable
private sector partnerships in order to increase access to markets,
transfer technology, improve competitiveness, or address the policy
and regulatory environment for business (closed in 2005). Find an
overview about the lessons learnt here.
‘Getting the relationship
right’
- The IBLF’s The Partnering
Initiative works to promote cross-sector partnerships for
sustainable development. It runs the professional Partnership Brokers
Accreditation Scheme a course designed to increase individual’s
skills to manage partnerships successfully.
- The
Partnering with Governments (PwG) programme, a partnership
between IBLF, GTZ and businesses, aims to build the capacity of
governments, business and civil society to partner more effectively
and to mainstream cross-sector partnerships as an essential
mechanism to achieve sustainable development. Find an overview
about the partnership
here.
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| Doing business in conflict affected
environments: from building the peace to building the private
sector |
| Peace and economic growth and closely related. How
can policy makers maximize the impact of private sector for both
peace and development? |
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Speaker Presentations
- International Alert has worked closely with business in
conflict affected countries over the last decade. This has included
the ‘Red Flags’ initiative which highlights the legal risks to
businesses – see www.redflags.info/
Special advice and guidelines are also available for the extractive
industries at
www.international-alert.org/peace_and_economy/peace_and_economy_projects.php
. The IA website has numerous papers and publications regarding the
role of the private sector in the peace process. Further
publications regarding market and conflict analysis will be
available during the event.
- Background and documents relating to the Kimberly Process can
be found at www.kimberleyprocess.com/
- There is a range of other relevant material from a recent World
Bank Institute / George Washington University eConference on “Peace
Through Commerce”: www.peace.businessfightspoverty.org
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| Business Power and Politics: creating
competitive markets for business and development |
| How do competition, regulation, power and politics
affect private sector development in developing countries? |
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Speaker Presentations
Organisations, Initiatives and Research
Programmes
- The CUTS Centre
for Competition, Investment & Economic Regulation (C-CIER)
aims to promote fair markets to enhance consumer welfare and
economic development through research, networking, capacity
building and affiliations.
- The International
Competition Network (ICN) provides antitrust agencies from
developed and developing countries with a focused network for
addressing practical antitrust enforcement and policy issues of
common concern.
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UNCTAD's programme on competition law and policy provides
competition authorities from developing countries and economies in
transition with a development-focused intergovernmental forum for
addressing practical competition law and policy issues.
- The International
Development Centre (IDC) has a programme area focusing on
competition and development.
- 39 of the world’s largest oil, gas and mining companies have
signed up to the Extractive
Industries Transparency Initiative (EITI), a global standard
for companies to publish what they pay and for governments to
disclose what they receive.
- The Medicines
Transparency Alliance (MeTA) works to improve access and
affordability of medicines in developing countries. The seven
participating pilot countries signed the alliance core principles
to increase accountability and transparency and to work with
private and civil society partners.
- The Construction Sector
Transparency (COST) initiative supported by the World Bank aims
to increase transparency and accountability in publicly financed
construction projects.
Recent publications
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