Business Action for Development -potential Triple Wins for businesses, governments and communities
Having attended the final session for this series, I commend the organisers and sponsors for initiating and providing the forum for various interests to discuss and explore the role of business in development. This series has provided examples showcasing how transnational businesses (TNs) make the case for Corporate Social Responsibility. The inclusive business approach has seen CSR moving from mere philanthropy to one that is closer to the Triple Bottom Line approach of addressing social, economic and environmental facets of business. For example, Diageo’s approach in several countries across Africa has shown that businesses can have a positive impact on development. In the examples shared by David Randall of Diageo’s Supply Director in Africa, the company’s policy of sourcing more of its raw materials locally led to direct positive impacts on crop production and in the process improved lives and livelihoods of rural residents. More than likely indirect impacts in some countries would include delaying, if not reducing the rate, of rural urban migration, especially among young people. In the process, governments have benefitted through FDI having an impact not only on job creation and building capacity among local suppliers, a situation that supports governments in meeting national and regional development goals, including the MDGs.
In my view, this approach can create not just ‘win win’ situations, but can result in ‘Triple Wins’ –these are wins for business (providing a return for their shareholders), wins for governments, businesses and communities. In the case of governments, through providing the policy and legislative frameworks for job creation and capacity building and realising national development and millennium development goals), businesses are able to ensure returns for stakeholders and raise their profile among current and potential customers. Wins for communities, however defined, can be through improved access to successful resource use, employment and enterprise creation, improved livelihoods and/or access to basic services).
What the series has highlighted is the changing face of CSR by multi-national businesses trading in Africa being beyond mere philanthropy. In considering a programme for 2010, I support the Parliamentary Under-Secretary of State’s comment that partnerships for development as a possible theme of the 2010 programme. As more companies embed CSR in their core business, they are well-positioned to enter negotiations with governments with CSR on the agenda for discussion. Governments on the other hand, especially in developing countries, ought to recognise the CSR strategies or actions of potential investors as an opportunity to leverage this in investment negotiations.
A Triple Win approach to investment negotiations will enable developing country governments, especially when considering new investments, to move beyond the business as usual approach of focusing FDI negotiations on number of jobs created, size of the FDI and compliance with national legislation. Instead wider stakeholder benefit will be had by businesses, governments and communities.
Veronica Broomes PhD
Research Associate
Commonwealth Policy Studies Unit
Institute of Commonwealth Studies
University of London
www.cpsu.org.uk
In my view, this approach can create not just ‘win win’ situations, but can result in ‘Triple Wins’ –these are wins for business (providing a return for their shareholders), wins for governments, businesses and communities. In the case of governments, through providing the policy and legislative frameworks for job creation and capacity building and realising national development and millennium development goals), businesses are able to ensure returns for stakeholders and raise their profile among current and potential customers. Wins for communities, however defined, can be through improved access to successful resource use, employment and enterprise creation, improved livelihoods and/or access to basic services).
What the series has highlighted is the changing face of CSR by multi-national businesses trading in Africa being beyond mere philanthropy. In considering a programme for 2010, I support the Parliamentary Under-Secretary of State’s comment that partnerships for development as a possible theme of the 2010 programme. As more companies embed CSR in their core business, they are well-positioned to enter negotiations with governments with CSR on the agenda for discussion. Governments on the other hand, especially in developing countries, ought to recognise the CSR strategies or actions of potential investors as an opportunity to leverage this in investment negotiations.
A Triple Win approach to investment negotiations will enable developing country governments, especially when considering new investments, to move beyond the business as usual approach of focusing FDI negotiations on number of jobs created, size of the FDI and compliance with national legislation. Instead wider stakeholder benefit will be had by businesses, governments and communities.
Veronica Broomes PhD
Research Associate
Commonwealth Policy Studies Unit
Institute of Commonwealth Studies
University of London
www.cpsu.org.uk
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