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Business, sustainable development and the MDGs: A changing landscape

Business, sustainable development and the MDGs: A changing landscape. Understanding what drives business. In a 1999 survey of 4000 Europeans, 86% said they would be more likely to buy a product from a company “engaged in activities to help improve society”.

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Business, sustainable development and the MDGs: A changing landscape

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  1. Business, sustainable development and the MDGs: A changing landscape Bureau for Resources and Strategic Partnerships

  2. Understanding what drives business In a 1999 survey of 4000 Europeans, 86% said they would be more likely to buy a product from a company “engaged in activities to help improve society”. Fleishman Hillard, 1999, Consumers Demand Companies with a Conscience Bureau for Resources and Strategic Partnerships

  3. Trust in business? 2003 survey on confidence in institutions % of 19,000 surveyed that said they had a lot or some trust in: NGOs 65% United Nations 59% National governments 53% Large domestic companies 52% Press 50% Trade Unions 48% Global corporations 42% Bureau for Resources and Strategic Partnerships

  4. Views of business & sustainable development Total 180 respondents; 71% attended WSSD Companies – 58%; Others – 42% Bureau for Resources and Strategic Partnerships

  5. Views of business & sustainable development Bureau for Resources and Strategic Partnerships

  6. Views of business & sustainable development Bureau for Resources and Strategic Partnerships

  7. Views of business & sustainable development Bureau for Resources and Strategic Partnerships

  8. Views of business & sustainable development Bureau for Resources and Strategic Partnerships

  9. Views of business & sustainable development Bureau for Resources and Strategic Partnerships

  10. Views of business & sustainable development Bureau for Resources and Strategic Partnerships

  11. Views of business & sustainable development Bureau for Resources and Strategic Partnerships

  12. Business motivations? Bureau for Resources and Strategic Partnerships

  13. Cross sector partnerships Bureau for Resources and Strategic Partnerships

  14. Cross sector partnerships Bureau for Resources and Strategic Partnerships

  15. Cross sector partnerships Bureau for Resources and Strategic Partnerships

  16. Cross sector partnerships Bureau for Resources and Strategic Partnerships

  17. Business and MDGs • Achieving MDGs will require greater & more equitable economic growth – through responsible investments • and entrepreneurship • Private sector central in addressing specific • development challenges – creative private sector • solutions to telecommunications, energy / electricity, • financial services, water and sanitation etc. • Engaging the 4 billion at the “base of the economic • pyramid”, is enormous untapped business opportunity Bureau for Resources and Strategic Partnerships

  18. Why MDGs are important to business • Three main reasons: • Investing in a sound environment in which to do business • Managing the direct costs and risks of doing • business • Harnessing new business opportunities Bureau for Resources and Strategic Partnerships

  19. How business can impact MDGs • 1. Corporate social responsibility • Core business – sustainable business • Policy dialogue, advocacy Bureau for Resources and Strategic Partnerships

  20. 1. Corporate Social Responsibility …reflects a changing relationship between business and society CSR is: “The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” World Business Council for Sustainable Development Bureau for Resources and Strategic Partnerships

  21. Corporate Social Responsibility Main Issues How business handle: • Human rights • Environment • Labor rights • Working conditions • Transparency / corruption • Fair competitive behavior • Responsible marketing • Etc. Bureau for Resources and Strategic Partnerships

  22. Corporate Social Responsibility What can companies do? Social investments: 1. PEOPLE – advisors, volunteers, secondments 2. MONEY – grants, loans, venture capital, equity 3. PRODUCTS AND SERVICES – donations, “at cost”, social marketing 4. COMPETENCIES – technical, managerial, training courses, work experience 5. FACILITIES – premises, equipment 6. ACCESS TO BUSINESS NETWORKS and decision-makers Bureau for Resources and Strategic Partnerships

  23. Corporate Social Responsibility The business case Behaving responsibly improves business’: • Reputation management • Relationships with society, investors • Resource efficiency – cost savings • Responsiveness • Recruitment of motivated employees • Risk management • Identify new business opportunities = Business Case Corporate responsibility helps build stronger societies, economies and new markets Sustainable business value Competitiveness Bureau for Resources and Strategic Partnerships

  24. 2. Core business • Products and services: How sourcing, manufacturing, distribution, pricing etc. of products and services can either contribute to or impede the MDGs • Policies and practices • How policies and practices in areas such as ethics, • the environment, health and safety, human rights, • labour relations, human resource management either • impede or contribute to MDGs? Bureau for Resources and Strategic Partnerships

  25. 2. Core business activities Impact on development • Investment and income flows • Employment • Goods and services • Human resources • Infrastructure • Technology transfer • Standards, business practices • Local business development Bureau for Resources and Strategic Partnerships

  26. 2. Core business - Sustainable business • Emerging concept – enterprises deliver appropriate, • affordable products & services that meet real needs • (energy, telecom, consumer products, basic services etc.) • Ex: • Hindustan Lever • Grameen Phone • New way of doing business – new business models • require stakeholder engagement / partnerships • Pilot experiences: WBCSD, UNDP / Global Compact, • “base of the pyramid” thinking Bureau for Resources and Strategic Partnerships

  27. Business & development benefits Development benefits Sustainable Business partnerships Strategic CSR Philanthropy Business benefits Bureau for Resources and Strategic Partnerships

  28. Trained Work Force Sound Economy Peace Political Stability Fair and Honest Regulatory Institutions Development / CSR Healthy Environment Rule of Law Active Civil Society Accountable Government UNDP and Business: Overlapping interests Bureau for Resources and Strategic Partnerships

  29. What? Bureau for Resources and Strategic Partnerships

  30. Types of engagement / partnerships with business 1) Outreach & advocacy on CSR 2) Policy dialogues - business role in development 3) Partnership projects around development issues 4) Facilitating sustainable investments and private delivery of basic services What? Multi-sector partnerships GLOBAL LEVEL COUNTRY LEVEL Bureau for Resources and Strategic Partnerships

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