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GI Net 10 - Business Roles in Sustainable Development
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GI Net 10 - Business Roles in Sustainable Development

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Materials presented during the 10th GI Net: "Ensuring Sustainability in Organizational Transformation" on May 07, 2013, by President Indonesia Global Compact Network

Materials presented during the 10th GI Net: "Ensuring Sustainability in Organizational Transformation" on May 07, 2013, by President Indonesia Global Compact Network

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GI Net 10 - Business Roles in Sustainable Development GI Net 10 - Business Roles in Sustainable Development Presentation Transcript

  • 1BUSINESS ROLES IN SUSTAINABLEDEVELOPMENTGi-Net RoundtableATMA Jaya Univ, 7 May 2013______________________________________________Y.W.JunardyPresident, Indonesia Global Compact NetworkPresident Commissioner, PT Rajawali Corpora
  • 2Yes,  Indonesia  is  “Darling  for  Business  Investment” The biggest archipelago in the world - rich in natural resources Strategically located to the most dynamic growth area Population - 240 millions, with 30 millions high income consumers Resource based industries – coal, palm, renewable energy Fishery – marine products, husbandry Agro business – food, fruits, fruit products, vegetables Manufacturing – automotive, motor cycle, appliance, electronics Tourism - Eco/cultural/religious events/Mice Infrastructure Development – road, harbor, railway Logistics/air and sea transportation Handicrafts, artworks, garments, culinary Medical – modern, traditional medicines EducationWe have the opportunity to grow faster!!
  • 3• Industry competitiveness• Infrastructure (Electricity, transportation, port facilities, etc)• Public policy and regulations implementation• Natural resource exploitation• Law enforcement, corruption• Environment protection• Health and Education Investment• Wealth distribution• Human Capital and Leadership to execute!!But  …Business  Must  Address  Key    Challenges…
  • 4BudgetAllocation,Corruption,EaseofDoingBusinessSource: BI and interpretasi Wijayanto Paramadina, World Bank, CPIBudget Composition (1990 – 2011)Country Rank 2010 Rank 2005Singapore 1 2The UK 4 5The US 5 3Australia 10 9South Korea 16 23Japan 18 12Thailand 19 19Malaysia 21 25Germany 22 21Netherlands 30 22Vietnam 78 98China 79 108Pakistan 83 66Indonesia 121 131Russia 123 97Brazil 127 122India 134 138Cambodia 147 142Philippines 148 121Ease of Doing Business IndexRank Country Score Rank Country Score1 N Zealand 9.5 73 Brazil 3.82 Denmark 9.4 75 China 3.62 Finland 9.4 80 Thailand 3.44 Sweden 9.3 95 India 3.15 Singapore 9.2 100 Indonesia 3.08 Australia 8.8 112 Egypt 2.912 Hong Kong 8.4 112 Vietnam 2.914 Japan 8.0 120 Bangladesh 2.724 USA 7.1 129 Philippines 2.632 Taiwan 6.1 134 Pakistan 2.536 Israel 5.8 143 Nigeria 2.443 South Korea 5.4 143 Russia 2.444 Brunei 5.2 143 Timor-Leste 2.460 Malaysia 4.3 154 Laos 2.269 Italy 3.9 164 Cambodia 2.1Corruption Index 2011Short Focus,More Consumption,Less investment (10-12%)
  • 6governancerule of law & public policieseducation food securitynutrition & sustainable agriculturehealthwater & sanitationpoverty eradication energyhumanrightssustainableconsumption & productionfull & productive employment, decent work for all& social protection social integration & inclusivenessbiodiversitysocial conflict and fragilityfinancial systemsustainable tourismoceansclimatechangesustainable transportgender equality& women empowermentminority discriminationsustainable cities & human settlementspopulation dynamicswaste managementresources efficiencytechnology developmentliving qualitysocial economy inclusionTheCloudofScopes–PrivateSectorPerspectives(Jakarta6Jan&21Feb2013)Infrastructure
  • 7BaliPrivateSectorLeadersRoundtable24-25April2013 Conducted in conjunction with the 4th HLPEP meeting 26-27 April 2013with the support of UNGC Attended by 100+ Participants from 15 countries Key Speakers:• Prof. Jeffrey Sachs (Earth Institute Columbia University)• Heru Prasetyo (UKP4)• Erna Witoelar (Former Ambassador on MDG for Asia Pacific)• Paul Polman (HLP/Unilever)• Betty Maina (HLP/Assoc of Manufacturers Kenya)• George Soros (Soros Fund Management) Sharing from 4 LNs (Australia, China, India, Indonesia) Roundtable Discussion - Identify 5 top priority development issues• Most important for your business to be successful• Business can contribute most strongly
  • 8Development issues that business can contribute most strongly:PrivateSectorRoundtable-ConsultationOutcome(Bali)
  • 95KeyPriority forPost-2015DevelopmentAgendaPrivate Sector Leaders Roundtable Bali (24-25 March 2013)Roundtable Discussion on how company could best contribute to eachissue, how business could have the greatest impact, which potentialpartner can support the effortsOther priority:Health, Climate Change, Energy,Biodiversity and Environment, InfrastructureGovernanceand Rule ofLawEducationSocialIntegratedand InclusionSustainableConsumptionandProductionPovertyEradiation
  • 10TheNew ParadigmforBusinessSustainabililityOur vision is a world inwhich poverty is eradicatedin all countries. Theeradication of povertynecessitates addressingthe intertwined economic,social and environmentalissues.EconomicGrowthEnvironmentSustainabilitySocialEquality
  • 11HowcanBusinessPlayRoles? Business can provide technical expertise and training of variety of skill setrelevant to their functions. Opportunity to empower greaterentrepreneurship  and  support  SME’s  – Job Creation Social inclusion is critical to create positive impact within community whichin turn allowing more sustainable growth – Social justice Innovative business solutions are needed to address the issues such assustainable production, energy access, water security, carbon emission etc. Multi-stakeholder partnership is very important in order to scale up theirimpacts on all issues. Need clarify of roles and expectation. Clear accountability to evaluate progress through wider corporatesustainability transparent disclosure. Strong political will to implement some public policy such as anti-corruption,procurement, incentive strategy, transparent disclosure, etc
  • 12•Support and respectHuman Rights•Not complicit in HRAbusesHumanRights• Uphold freedom of associationand rights to collective bargaining• Elimination of forced andcompulsory labor• Abolition of child labor• No discrimination in employmentand occupatiojnLabor•Precautionary approach inenvironmental challenges•Initiative to promote greaterenvironmental responsibility•Development and diffusion ofenvironmentally friendly techEnvironment• Work agaisntscorruption in allforms inclextortion andbriberyAnti-corruptionUN Global Compact 10 PrinciplesBusiness should Supportand Commit in theImplementation
  • 13Business to Act within its Sphere of Influence Embrace, support and enact within their sphere of influence a setof core values in human rights, labor standards, environment andanti-corruption (UN Global Compact 10 Principles) Engage in multi-stakeholder Collaborative Actions
  • 14IGCNMultiStakeholdersCollaborativeProjectsComputer for VillageSchoolsInterfaith Mass WeddingCEO Water Mandate WorkingGroupGrowing Inclusive Market(Indonesia Cases) Business Ethics Safari2009 - 2010On goingPromoting Business“Code  of  Conduct”On goingHuman Rights Labor Environment Anticorruption2009 – On Going2009 - 20102011, 4541 couples65 schools,350 teachers,6500 studentsVol I - 2010Vol 2 - 2012Safe Water Project,Boyolali2012, 1398 People and593 cattleIndonesia Water Action Report2012 - on goingLaunched 10.000 biopori for Jakartaat World Water Day - March“Save  Water”  Campaign2012 – on goingTjahaya Project14
  • 15Inclusive Business as Strategy to Address Poverty Issuesand to Ensure Long-term Business SustainabilityPro-poor businessmodels / inclusivemarketsDevelopmentbenefitsBusiness benefitsPhilanthropyCSR / SocialinvestmentContribution of financialor in-kind resources todevelopment projectsor emergency responseSocial investment thatfacilitates businessobjectives throughcommunitydevelopmentBusiness solutions thataccelerate and sustain accessby the poor to needed goodsand services and to incomegenerating opportunities andthat contribute to economicempowerment.Risk
  • 16InclusiveBusinessCasesStudyAn Integrated Dairy Cattle Husbandry &Community DevelopmentEmpowering Poor Dairy Farmers to Do aBusinessImproving Traditional Market CommunityWelfare Through Waste Management ProgramWorking with Taxi Drivers as Business PartnersNemangkawi Mining Institute Prepares Papuans toBecome Modern Industrial WorkforceBankingDairy ProductsBankingMiningTransportation
  • 17Young Entrepreneur Startup (YES!) ProgramTransforming Traditional Housewives intoDomestic Entrepreneurs by Retailing SEVWomen Empowerment Through SpaTherapist Scholarship ProgramCares on HIV/AIDS Program In IndonesiaGrowing Together in Partnership: The Caseof Unilever and The Black Soybean FarmersNGOTelecomCosmetics &HerbalProductsPaper ProductsConsumerGoodsInclusiveBusinessCasesStudy
  • 18MDGs Implementation = Beyond CSRThe Issues: Low awareness about MDGs Initiatives Different perception about CSR (charity, promotion,reputation, partnership, regulation) Level of commitment Functional  business units  corporation Expense/Profit  investment Individual company action Short-term oriented, not linked with business strategy No consolidated information country wide Lack of transparent reportingNote:  Reconfirm  at  the  Third  UN  Private  Sector  Forum  “Private  Sector’s  Contribution  to  the  MDGs”  22  September  2010,  NY
  • 19The8MillenniumDevelopmentGoalsEradication Extreme Poverty and HungerAchieve Universal Primary EducationPromote Gender Equity and Empower WomenReduce Child MortalityImprove Maternal HealthCombat HIV/AIDS, Malaria and Other DiseasesEnsure Environmental SustainabilityDevelop a Global Partnership for Development
  • 20Halve, between 1990 and 2015, the proportion of people whoseincome is less than one dollar a dayEnsure that, by 2015, children everywhere, boys and girls alike, willbe able to complete a full course of primary schoolingMDGs Key Indicators (1)Eliminate gender disparity in all levels of education by 2015Reduce by two-thirds, between 1990 and 2015, the under-five mortality rateReduce by three quarters, the maternal mortality ratio anduniversal access to reproductive health by 2015,
  • 21Have halted by 2015 and begun to reverse the spread of HIV/AIDSand the incidence of malaria and other major diseaseIntegrate the principles of sustainable development into countrypolicies and programs and reverse the loss of environmentalresources. Significant reduction of biodiversity loss by 2010Halve, by 2015, the proportion of people without sustainable access tosafe drinking water and basic sanitationDevelop further an open, rule-based, predictable, non-discriminatorytrading and financial systemAddress the special needs of the least developed countriesDeal comprehensively with the debt problems of developingcountriesIn cooperation with the private sector, make available the benefits ofnew technologies, especially information and communicationsMDGs Key IndicatorsMDGs Key Indicators (2)
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  • 28There are an estimated 100 million people in Indonesia thatlack access to clean water. (ACT – Aksi Cepat Tanggap)Water, the Future Crisis!In 2012, access to clean drinking water is 47 percent, whichis still some way off the 2015 MDGs target of 68 percent.(AMPL Working Group)Rivers in Indonesia are heavily polluted by organic matter thatmostly sourced from municipal waste as well as industrialwaste. (Public Works)Study case: Citarum River, the main water sources in WestJava, listed as one of 10 most polluted water in the world.(International River Basin Monitoring research in 2009)Access to Clean Water and Healthy Sanitation isHuman Rights Issues
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  • 32UNGC Sustainability Forum – Rio+20 Business contributes significantly to the economic development andsocial advancement What is good for environment and society is also good for business Business stands ready to do their part to realize sustainabledevelopment for all Moving ahead thru innovation, smart investment, and collaboration Transformative PPP – engage government and society at all level Moving towards a more fair, just and equitable global strategies• Energy & Climate• Water & Ecosystems (CEO Water Mandate)• Agriculture & Food• Economics & Finance of Sustainable Development (PRI)• Social Development (BCtA)• Urbanization & Cities• Education for Sustainable Development & Responsible ManagementEducation (PRME)
  • 33 LeadershipCommitment Assessment Define Goals,Strategies Implement Measure CommunicateCommitment to Imbed the Principles into strategies andOperationsAsses Risk, Opportunities and ImpactsDefine Goal. Strategies and Policies for philantropy,social investment and inclusive businessImplement through the company and across the companyvalue chain, partnership and collaborative actions.Measure and monitor impacts and progress toward goals.Transparency reporting (COP, GRI, etc)Communicate progress to stakeholders for furtherimprovementThe Management Model for ImplementationSource: The UN Global Compact Management Model
  • 34Business needs to transformto be engaged in addressing global issuesto develop collaborative actionsto improve social and environment in orderto ensure long term sustainabilityA  Call  for  Action…