CSR & MDG

8/3/2019 CSR & MDG

http://slidepdf.com/reader/full/csr-mdg 1/26

CSR as Tools for Private

Sector Contribution inAchieving MDGsEmphasizing Goals 4,5 and 6

Presented in Discussion with the Indonesia RedPresented in Discussion with the Indonesia Red

CrescentCrescent

JalalA+ CSR Indonesia

www.csrindonesia.comJakarta, March 22nd 2008

8/3/2019 CSR & MDG


Millennium Development Goals

189 United Nations member states have

pledged to meet the following eight goalsby 2015:

8/3/2019 CSR & MDG


Voice from “the Top”-1“In an age of interdependence, global citizenship –

based on trust and a sense of shared responsibility – is acrucial pillar of progress. At a time when more than 1billion people are denied the very minimum requirementsof human dignity, business cannot afford to be seen asthe problem. Rather, it must work with governmentsand all other actors in society to mobilize globalscience, technology and knowledge to tackle theinterlocking crises of hunger, disease,environmental degradation and conflict that areholding back the developing world.”

(former) UN Secretary-General, Kofi Annan

8/3/2019 CSR & MDG


Voice from “the Top”-2“Shared goals, from market-building to environmental protection andsocial inclusion, have enabled us to build unprecedented

partnerships among business, Governments, civil society, labourand the United Nations….We are partners in the understandingthat in our globalized world, many challenges are toointerconnected and complex for any one sector to face alone”.

“That interdependence brings with it a fundamental realization: Thatpower cannot be separated from responsibility. That forbusiness to enjoy sustained growth, we need to build trust andlegitimacy. That for markets to expand in a sustainable way, wemust provide those currently excluded with better and moreopportunities to improve their livelihoods”.

UN Secretary-General Ban Ki-moon,Opening Remarks at the United Nations

Global Compact Leaders Summit, 5 July 2007

8/3/2019 CSR & MDG


8/3/2019 CSR & MDG


Corporate Social Responsibility

Commitment of business entity to

minimize its negative impacts andmaximize its positive impacts to allstakeholders within economic, social andenvironmental aspects in order to achievesustainable development.

8/3/2019 CSR & MDG


Components of CSR• Commitment to sustainable development

not greenwash.• Optimum impact management.

• Responsibility to all stakeholders:individuals and groups who may affect orare affected by the organization.

• Triple (not single) bottom line: three—economic, social, environmental—equalobjectives.

8/3/2019 CSR & MDG


Core Issues in Social Responsibility

Source:Draft 3 ISO 26000, 2007, Guidance on Social Responsibility

8/3/2019 CSR & MDG


Moral Case for BusinessInvolvement in MDGs• If business doesn’t get involved, the MDGs simply won’t

be achieved.• Time to challenge the short-termism of shareholders and

give stakeholders and the future more say.• Is it possible to justify the poorest paying 220 times as

much as the richest for water, food, medicines and

energy?• ‘After emasculating the state, it is no longer morally

defensible to consider all broader and longer termresponsibilities the affair of the state’.

SustainAbility: The Millennium Development Goalsand the role for business, March 29th, 2006

8/3/2019 CSR & MDG


Business Case for BusinessInvolvement in MDGs

• Is long term interest better served by higher

margins today or by a more environmentally,socially and economically secure world in 2015?

• Bottom of the Pyramid: bringing billions into

economic life.• Major shifts in societal expectations of business

are already under way and irreversible.

SustainAbility: The Millennium Development Goals

and the role for business, March 29th, 2006

8/3/2019 CSR & MDG


Business and the

MillenniumDevelopmentGoals: A

Framework forAction

Nelson, J. and Prescott, D.2003. UNDP and IBLF

8/3/2019 CSR & MDG


Three Broad Reasons…there are three broad reasons why it makes soundbusiness sense to contribute towards the achievement ofthe Millennium Development Goals. Each of these is acrucial pillar for building successful and competitiveprivate enterprises:

• First, investing in a sound environment in which to dobusiness;

• Second, managing the direct costs and risks of doingbusiness;

• Third, harnessing new business opportunities.

Nelson, J. and Prescott, D., Business and the MillenniumDevelopment Goals: A Framework for Action, 2003.

8/3/2019 CSR & MDG


Reason 1. Investing in a Sound Business

Environment

Most legal enterprises benefit from operating in

stable and secure societies. They benefit fromhaving access to a healthy and competentworkforce and prosperous consumers andinvestors. Productive and competitive

companies benefit from the existence ofopen, rule-based, predictable and non-discriminatory trading and financial systemsand a non-corrupt and well-governed

economy. Failure to achieve the MDGs is likelyto undermine some or all of these pillars ofbusiness success – at both a national andinternational level.

8/3/2019 CSR & MDG


Reason 2. Managing Direct Costs

and Risks

Challenges such as local environmental degradation,global climate change, HIV/AIDS, ethnic conflict, andinadequate health and education systems, can adddirectly to the costs and risks of doing business. Theycan increase operating costs, raw material costs, hiring,training and other personnel costs, security costs,insurance costs and the cost of capital. They can createboth short-term and long-term financial risks, marketrisks, litigation risks and reputation risks. Thecompanies that understand and address these

challenges can improve their risk and reputationmanagement, reduce their costs, improve theirresource efficiency and enhance their productivity.

8/3/2019 CSR & MDG


Reason 3. Harnessing NewBusiness Opportunities

Some of the world’s most successful and innovativecompanies are developing new products, services, andtechnologies, and in some cases even transforming theirbusiness models, to address social and environmentalchallenges. They recognise that many developingcountries, especially those with large populations andnatural resources, offer long-term businessopportunities. To these companies, helping to achievethe MDGs is not only a matter of corporate socialresponsibility, embedded in compliance, risk

management and philanthropy, but also a matter ofcorporate social opportunity, embedded ininnovation, value creation and competitiveness.

8/3/2019 CSR & MDG


The CorporateContribution toDevelopment

Nelson, J. Building Partnerships , 2002;

Nelson, J. Business as Partners in Development ,

1996

8/3/2019 CSR & MDG


Contribution 1. Core BusinessActivities

Obey the law, manage risks, minimise negative social and

environmental impacts and create positive value for host countriesand communities by:

1. Producing safe and affordable products and services2. Generating income and investment –through paying local

wages, taxes, dividends, and royalties, making timelypayment to local suppliers, and earning foreign exchange etc.

3. Creating jobs – recruiting locally, both within the companyand along the supply chain, and facilitating positive organisedlabour relations.

4. Developing human resources – investing in training, skillsdevelopment, health and safety in the workplace and alongthe supply chain.

8/3/2019 CSR & MDG


Contribution 1. (continued)5. Building local businesses – through supplier and

distribution networks, especially with medium, small

and micro-enterprises.6. Spreading responsible international business

standards and practices – in areas such asenvironment, health and safety management, human

rights, ethics, quality etc.7. Supporting technology development and transfer –

investing in local research and development andintroducing technologies and processes for cleanerand safer production systems.

8. Establishing physical and institutionalinfrastructure – for example investing in plant andmachinery, telecommunications and transportsystems, and legal and financial frameworks and

institutions.

8/3/2019 CSR & MDG


Contribution 2. Social Investment and

Philanthropic Activities

Mobilise core competencies and resources such as money,products, skills, premises and people to help support or strengthen

local communities by:

1. Supporting education, training, youth development, environmental,and health and nutrition projects in local communities

2. Building capacity of community leaders and social entrepreneurs

3. Training local technical specialists in environmental management4. Building the governance capacity and voice of local civil society

groups and media organisations5. Supporting multi-cultural education programmes6. Assisting with voter education initiatives

7. Establishing and supporting micro-credit programmes and smallbusiness support

8/3/2019 CSR & MDG


Contribution 3. Policy Dialogue

and Advocacy Activities

Take individual and collective action to influence the

enabling environment and support systemic change at alocal, national and international level by:

1.Working with governments to improve socialinfrastructure by supporting healthcare andeducation reform and quality improvement

2.Addressing environmental regulatory and fiscalpolicies with governments and civil society

3.Engaging in global dialogue on issues such as

climate change and biodiversity

8/3/2019 CSR & MDG


Contribution 3. (continued)4. Supporting local and national governments to

achieve: the elimination of bribery andcorruption, efficient public administration andservice delivery; fair and transparentregulations; and respect for human rights

5. Helping to increase ability to attract and retainforeign and domestic investment6. Advocating for improved access for developing

country exports to OECD markets

7. Advocating for increased levels of governmentaid to developing countries

8/3/2019 CSR & MDG


Goal 4. Reduce Child MortalityTwo sectors that can have a significant impact on reducingchild mortality are the pharmaceutical and food sectors,

which between them manufacture the basic medical andnutritional products that are essential to reducing childmortality. Water companies can also contribute by increasingaccess to clean water supplies for children

• Core Business: provide affordable products andservices

• Social Investment: supports children’s NGOs and

awareness projects; support programs for AISD orphans.• Policy Dialogue: advocate governments to support the

Rights of the Child and to support children’s issues

8/3/2019 CSR & MDG


Goal 5. Improve Maternal HealthWomen comprise a majority of the workforce in labour-intensivemanufacturing industries such as apparel, footwear, toys,

electronics, food processing and house-wares. Also, womenworkers tend to be of a child-bearing age, with less education thantheir male counterparts, and with lower social status. Thereforebusinesses in these sectors, whose supply chains extend intodeveloping countries, can have a major impact on improving thehealth of these women through health education, access and

nutrition.

• Core Business: provide affordable products andservices; improve working conditions and occupational

health for women.• Social investment: support women’s NGOs andcommunity health services; combat stigmatisation.

• Policy Dialogue: encourage good public policy andpublic awareness on women’s health issues.

8/3/2019 CSR & MDG


Goal 6. Combat HIV/AIDS,

Malaria and Other DiseasesThere is growing evidence that targeted and well-managedcorporate investments in protecting the health of employees,

customers and local communities is worthwhile relative to thepotential risks and costs, both reputational and operational, of notmaking such investments. Specific health issues vary depending onthe industry sector and its products and services.

• Core Business: provide affordable products andservices; implement workplace HIV/AIDS; malaria andother diseases programs focused on education,prevention, treatment and care.

• Social investment: provide product donations; supportHIV/AIDS and other medical funds, NGOs or researchinstitute and AIDS orphan projects.

• Policy Dialogue: establish national business coalitionsto advocate health issues.

8/3/2019 CSR & MDG


Example of Contributions by Sector

• Food and beverages: ensuring food safety

standards, improving nutritional standards,addressing health related aspects of foodproduction, encouraging responsible use ofalcohol.

• Chemical: minimizing the health risk related totheir products, exploring how pesticides cancontrol major vector-borne diseases.

• Travel and tourism: addressing health relatedissues associated with travel (infectiousdiseases, sexually related, etc).

Source: Nelson, J. Business as a Partner in Strengthening Public Health Systems in Developing Countries , 2006

8/3/2019 CSR & MDG


Example…(continued)• Energy: developing alternative energy that do

not contribute to air pollution.• Media and information technology: keeping

citizens informed, supporting public health

campaign, improving accuracy and efficiency ofhealth data collection and use.

• Transportation: improving road and vehicle

safety, tackling air pollution, supportingdistribution of essential health products.

CSR & MDG

Documents

Transcript of CSR & MDG