Business/NGO Engagement and Partnerships Presentation February 2011


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Lecture given to MSc class at Birkbeck College, University of London Corporate Responsibility module. Focuses on why and how business and NGOs engage, and partner, on corporate responsibility, and sustainability/environment issues and problems

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Business/NGO Engagement and Partnerships Presentation February 2011

  1. 1. Business, NGOs, campaigns and partnerships: The road to engagement<br />Toby Webb, Founder, Ethical Corporation.MSc Corporate Governance and Ethics class, Corporate Responsibility module, Birkbeck College, University of London, January 27 2011<br /> / <br />
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  3. 3. Some background<br /><ul><li>“…an industry cannot survive an ongoing conflict with society. Dialogue, adjustment and collaboration are not a luxury but a necessity” (Aarnout Loudon, former president-director, AKZO Nobel, 1987)
  4. 4. Stakeholder relations seen as a crucial element of CSR. Scholars (e.g. Freeman, Carroll, Epstein, Hartman and Stafford, Waddock et. Al.) assume CSR can only be fully developed in partnership whereby the exploration of new roles is a central element
  5. 5. In 1900, 100 International NGOs. By 1998 more than 50,000 in existence</li></li></ul><li>
  6. 6. Some background<br /><ul><li>Key milestones: Rise of the UN post- WWII and UN conferences:
  7. 7. 1992 UN Conference on Environment and Development (Rio), 2002 World Summit on Sustainable Development (Johannesburg)
  8. 8. Key events in 1990’s and 2000’s showed importance of dialogue and engagement (Brent Spar, Nigeria, sweatshop scandals, HIV/Aids pharmaceutical NGO campaigns in 2001 etc)</li></ul>Partial Source: “Partnerships for Corporate Social Responsibility” (de Bruin, Nijhof, Honders 1997)<br />
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  10. 10. Some background<br /><ul><li>Last thirty years: Increasing economic globalization in the form of both globally extended capital markets and extended outsourcing of production in global supply systems across the world (Midttun 2008)
  11. 11. Global markets remain politically under-governed in a political sense
  12. 12. CSR and business self-regulation have rapidly expanded, and become a “megatrend”</li></ul>Source: Midttun A (2008) “Global governance and the interface with business: new institutions, processes and partnerships. Partnered governance: aligning corporate responsibility and public policy in the global economy”. CORPORATE GOVERNANCE VOL. 8 NO. 4 2008, pp. 406-418<br />
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  14. 14. Some background<br /><ul><li>Developing and emerging nations often fail to impose what they see as acceptable social and environmental standards on business. Laws may be similar to US and EU:enforcement much less used
  15. 15. In a partnering role, “governments may bring in complementary competencies and resources to tackle social and environmental issues outside their unilateral authoritative control” – in partnership with companies</li></ul>Source: Midttun A (2008) “Global governance and the interface with business: new institutions, processes and partnerships. Partnered governance: aligning corporate responsibility and public policy in the global economy”. CORPORATE GOVERNANCE VOL. 8 NO. 4 2008, pp. 406-418<br />
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  17. 17. Some background & examples<br /><ul><li>NGOs set up Forest Stewardship Council (FSC: Certificationof sustainable and ecologically-sound forestry) driven by the failure of an intergovernmental process to agree on a global forest compact.
  18. 18. EU: A billion Euros a year of illegal timber (WWF 2010) 10% of US imports illegal!
  19. 19. Est.1993 FSC developed set of principles and criteria for forest management that address legal issues, indigenous rights, labor rights, and environmental impacts
  20. 20. 2008 US Lacey Act being enforced. EU rules from 2012, 15-20 years on from FSC!(2010: 37 corporate members of WWF’s Global Forest and Trade Network)
  21. 21. Extractive Industries’ Transparency Initiative (EITI), launched in 2002 in Johannesburg at the World Summit on Sustainable Development. (Partial success)
  22. 22. Ethical Trading Initiative, (UK 1998) NGOs, trade unions corporate members collaborating on ‘good practice’in code development and implementation, and then promoting/sharing better practices practice (Only partial success) </li></li></ul><li>
  23. 23. How NGOs drove/drive engagement<br /><ul><li>Greenpeace: Shell / BP / Electronics / McDonald’s / Climate change</li></ul>(E.G. Soy campaign RE McDonald’s. Greener Rankings RE Electronics)<br /><ul><li>Rainforest Action Network: Equator Principles & Community rights
  24. 24. Friends of the Earth: “Boots Pollutes” / Climate change / GM
  25. 25. WWF: Shell / Coca-Cola / SAB Miller
  26. 26. Global Witness: Extractive transparency – Europe & US
  27. 27. Transparency International: Corruption - Globally
  28. 28. Clean Clothes Campaign: Textile workers in Europe
  29. 29. Workers Rights Consortium: Textile workers in the USA
  30. 30. Oxfam: Textiles, electronics</li></li></ul><li>
  31. 31. Examples of Partnerships in Action<br /><ul><li>Rainforest Alliance: Unilever/Kraft/Chiquita/Mars
  32. 32. Fairtrade: Tate & Lyle/Cadbury (sugar & cocoa)
  33. 33. Climate Group: HSBC (Research and policy)
  34. 34. Marine Stewardship Council: Findus & Wal-Mart
  35. 35. Forest Stewardship Council: TetraPak & IKEA
  36. 36. Unilever: 100% certification target for Lipton Tea and PG Tips (RA)</li></li></ul><li>Examples of Partnerships in Action<br /><ul><li>Marks & Spencer targets for wood certification (Rainforest Alliance)
  37. 37. Nestle and the Tropical Forest Trust (Palm Oil)
  38. 38. UNEP & Shell (2010) – Nigeria controversy
  39. 39. UNDP and Statoil (1999-2004) Plus MANY others (Business Action for Africa, UNDP reports)
  40. 40. When it goes wrong: WWF and Asia Pulp & Paper / Greenpeace & Npower</li></li></ul><li>
  41. 41. What makes a partnership work?<br /><ul><li>Aligned objectives
  42. 42. Clear boundaries
  43. 43. An end in sight: How long does it run for?
  44. 44. Grievance mechanisms
  45. 45. Transparent reporting
  46. 46. Agreed outcomes
  47. 47. Collectively agreed progress indicators </li></li></ul><li>Who is next for the NGOs?<br /><ul><li>Asia Pulp & Paper / SinarMas campaign today
  48. 48. Companies with high impact but outside the list of big brands: Fish, Leather, Soy, Commodities, Mining, Finance, Timber, Oil & Gas, Electronics, textiles, etc etc!
  49. 49. Industry groups on commodities
  50. 50. Big global trading firms: (Cargill, Glencore, Trafigura), </li></li></ul><li>Challenges for the NGOs<br /><ul><li>Donor apathy in difficult times
  51. 51. Partnerships can and do come to an end
  52. 52. Transparency: They do not report
  53. 53. Trust: Companies are suspicious
  54. 54. Shifting goals: Going where the money is
  55. 55. Becoming co-oped by business for cash (WWF?)
  56. 56. Annoying governments in dev. Countries (China)
  57. 57. Measurement: Can they prove they have delivered?
  58. 58. SCALE: Can they deliver more in commodities? </li>