Corporate Social
Responsibility at CIP:
Lessons learned from
working with the private
sector
Outline
Introduction
1. Results
2. Lessons learned:
– how to work with the private sector
towards development objectives
3...
Developing an approach
for integrating CSR
in value chains
introduction
Intl public
goods
Research
Divisions
CGIAR/CIP
Papa Andina:
fostering innovation for development
MDGs &
Impact
Rural Poor
...
Assignement: complement Papa
Andina’s approach
a. Participatory market chain approach (PMCA)
– Trigger market innovation a...
2002 2006
Peru : The native potato opportunity
MT
1000
2000
Pilot
products
Creative
imitations
Large
companies?
2004
Quali...
In theory…
• Research assignment:
– develop an approach to integrate CSR into
the potato value chain as a way to increase
...
• Development assignment: achieve impact
for farmers through this approach - with
Innovandes:
– Geographically-based proje...
Research
and development results
Quality
production
Independant
certification
Suppliers
1. Quality product
2. Social marketing
1. Favourable
terms of trade...
Model validated with the market leader
• Pepsico’s CSR investment
– Favorable price to producer,
based on production costs...
Development results: farmers
• Estimated farmers’ profitability: 20-40%
• Operation benefited around 300 families, includi...
• Label sets a standard for
CSR practices by companies
• Contributes to positionning
products that generate
benefits for s...
2002 2006
Beyond the success story: market growth
2008
MT
1000
2000
Creative
imitations
Large
companies
2004 2009
Pilot
pr...
Challenges
• Sustainability of results:
– Business relationship and Andean Potato Initiative
still under consolidation
– S...
Conclusions from this experience
• Reality IS complex!
• Temptation to jump from facilitator’s to actor’s
role is at every...
Lessons learned: why and
how to work with the
private sector
Why should CIP
work with the private sector?
– Valuable and complementary partner for non profit
institutions towards deve...
How to work
with the private sector?
1. Be clear about our development agenda:
• Orient benefits of collaboration towards
...
– Don’t judge – understand and evaluate
company’s own pressures (management,
work culture, market trends)
– Don’t request ...
3. Chose the right way and moment to
formalize rules of the game
–Assess image risks and opportunity cost
–Analyze issues ...
CSR and perspectives
at CIP
CSR in value chains
In Peru:
• Strengthen the Andean Potato Initiative’s
autonomy and leadership + Public awareness
around...
CIP and the private sector
• Promote exchange and reflection on
current experiences
(CSR, public-private partnerships,
sta...
Looking into the mirror:
CIP’s CSR
CSR is
a philosophy and an
ethical form of
business
management
taking into account
stak...
CSR principles
• Linked to core business (R4D)
– Not philantropy
• Implies communication (dialogue with
stakeholders)
– No...
CIP’s stakeholders: Donors
Clients who pay for added value (impact)
Business as usual:
– Give them what(ever) they ask for...
CIP’s stakeholders: local partners
NARIs, NGOs, public authorities, farmers, etc.
Clients who benefit from our R&D product...
CIP’s communication
• Important to have high quality (and good-
looking) publications for donors and medias.
• Internal co...
conclusions
Assessing impact:
• Impact study on the development of the native
potato market – Papa Andina/DIV I
• Effects of market ar...
Conclusions of a “bicho raro” at CIP
• “L’enfer, c’est les autres”
– CIP makes good research
– Papa Andina develops good
a...
Key references
• Native Potato Market Chain and Poverty Reduction: Innovation
around Corporate Social Responsibility, Thom...
¡Muchas gracias!
Alice Thomann
Papa Andina
a.thomann@cgiar.org
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Corporate Social Responsibility at CIP: Lessons learned from working with the private sector

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Seminar - Alice Thomann - June 28, 2010
This presentation in part of a series of seminar carried on at CIP's HQ during 2010.

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Corporate Social Responsibility at CIP: Lessons learned from working with the private sector

  1. 1. Corporate Social Responsibility at CIP: Lessons learned from working with the private sector
  2. 2. Outline Introduction 1. Results 2. Lessons learned: – how to work with the private sector towards development objectives 3. Perspectives: – Promoting CSR in market chain – Applying CSR to CIP business Conclusions
  3. 3. Developing an approach for integrating CSR in value chains introduction
  4. 4. Intl public goods Research Divisions CGIAR/CIP Papa Andina: fostering innovation for development MDGs & Impact Rural Poor Market chain approach Capacity strengthening Innovation system
  5. 5. Assignement: complement Papa Andina’s approach a. Participatory market chain approach (PMCA) – Trigger market innovation and partnerships b. Stakeholders’ platform – Consolidate partnerships and foster access to knowledge, services and training c. Corporate Social Responsibility – Strengthen collaboration with agro-industries to scale-up d. Advocacy – Set potato in the public oprinion and political agenda to scale-up e. Technological innovation: – Increase capacity to respond to market demand f. Knowledge management and capacity strengthening
  6. 6. 2002 2006 Peru : The native potato opportunity MT 1000 2000 Pilot products Creative imitations Large companies? 2004 Quality Volumes Regularity Formality Asimetric bargaining power CSR? time New market for farmers
  7. 7. In theory… • Research assignment: – develop an approach to integrate CSR into the potato value chain as a way to increase commitment of private sector and scale-up – validate it - with INCOPA and local private partners in Peru
  8. 8. • Development assignment: achieve impact for farmers through this approach - with Innovandes: – Geographically-based project – Development vs research objectives – Work through local partners (NGOs) and farmer organizations – Key assets: relationship and trust developped over time with local partners and farmer organizations …and in practice
  9. 9. Research and development results
  10. 10. Quality production Independant certification Suppliers 1. Quality product 2. Social marketing 1. Favourable terms of trade 2. Capacity building Responsible consumption Orientation and control Credibility Responsible company Clients Research results Model for an inclusive and competitive market chain integrating CSR principles
  11. 11. Model validated with the market leader • Pepsico’s CSR investment – Favorable price to producer, based on production costs, and contract – Social marketing: linking native potatoes and development issues • “Business case” (vs philantropy) – Access to a new, high value niche market – Access to a quality, reliable supply (long-term relationship)
  12. 12. Development results: farmers • Estimated farmers’ profitability: 20-40% • Operation benefited around 300 families, including daily workers • Access to a stable market over 3 year • Self-esteem and new capacities (organization, quality management) Price paid to farmers - 2008 (USD) 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 Traditional market T'ikapapa Crisps industry Price paid to farmers – 2008 (USD) Price paid to farmers - 2008 (USD) 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 Traditional market T'ikapapa Crisps industry Price paid to farmers – 2008 (USD)
  13. 13. • Label sets a standard for CSR practices by companies • Contributes to positionning products that generate benefits for small-scale farmers and prevents unfair competition • Owned by a multiskateholder platform (www.papasandinas.org) to promote interaction with agrifood companies about CSR and support learning process Towards sustainability: label for native potato products with CSR
  14. 14. 2002 2006 Beyond the success story: market growth 2008 MT 1000 2000 Creative imitations Large companies 2004 2009 Pilot products Export Fairtrade Restaurants
  15. 15. Challenges • Sustainability of results: – Business relationship and Andean Potato Initiative still under consolidation – Still very important role of CIP and NGOs as facilitators – Consumers need to be more involved – Climate change and vulnerability • Scaling-up: ensuring that further development of the native potato market benefits poverty reduction is still a challenge! • Feeding back demand into the research agenda: reducing sugars, organic sprout inhibitor, ICM, quality seeds, nutritional and functional properties of native potatoes.
  16. 16. Conclusions from this experience • Reality IS complex! • Temptation to jump from facilitator’s to actor’s role is at every corner • Both research and development projects have been necessary and complementary to achieve development outcomes • Development impact: – How far/long reaches CIP-Papa Andina’s responsibility? – Who manages borders between R&D if not R&D institutions? – Isn’t this part of our core business too?
  17. 17. Lessons learned: why and how to work with the private sector
  18. 18. Why should CIP work with the private sector? – Valuable and complementary partner for non profit institutions towards development objectives • Financial and Human Resources • Skills and risk-taking capacity to scale-up • Market/demand knowledge and expertise – CIP has assets for facilitating public-private innovation process • Good reputation and image • Relatively neutral “honnest broker” • Expertise and research capacities (although permeability of research agenda to short/medium term concerns is limited)
  19. 19. How to work with the private sector? 1. Be clear about our development agenda: • Orient benefits of collaboration towards sustainable pro-poor change vs own institutional/program benefits (eg. find alternative funding for research) • As facilitator/broker, have a clear perception of our role and (exit) strategy for the sustainability of results
  20. 20. – Don’t judge – understand and evaluate company’s own pressures (management, work culture, market trends) – Don’t request at once - convince that we are a valuable partner • Beware of details and accuracy • Build on previous successes and assets – Don’t fear – start dialogue, state our objective/needs – Identify allies within the company / internal advocacy to get the management on board – Find common interest, concrete shared successes on short term (build trust) 2. Learn to know our partner
  21. 21. 3. Chose the right way and moment to formalize rules of the game –Assess image risks and opportunity cost –Analyze issues of intellectual property and exclusivity
  22. 22. CSR and perspectives at CIP
  23. 23. CSR in value chains In Peru: • Strengthen the Andean Potato Initiative’s autonomy and leadership + Public awareness around the label values • CIP’s strategy for the development of the native potato opportunity? Scaling-out: CSR is a global trend. Identify private partners, construct rules of the game and define how to embody them.
  24. 24. CIP and the private sector • Promote exchange and reflection on current experiences (CSR, public-private partnerships, stakeholder platforms) • Community of practice within CIP / CG?
  25. 25. Looking into the mirror: CIP’s CSR CSR is a philosophy and an ethical form of business management taking into account stakeholders’ interests to achieve mutual sustainable development (win-win situation) CG CIP Board Beneficiaries (Clients) Government Environment Donors (Clients) Society Employees R4D Value Chain
  26. 26. CSR principles • Linked to core business (R4D) – Not philantropy • Implies communication (dialogue with stakeholders) – Not just marketing • Requires innovation – Not just complying with established rules/ “business as usual” • Requires commitment and investment at the highest management level and coherence through the organization (credibility) • Accountability to stakeholders
  27. 27. CIP’s stakeholders: Donors Clients who pay for added value (impact) Business as usual: – Give them what(ever) they ask for – Position and sell our work on the competitive R&D market CSR : – Strive for transparent communication and debate on effective and efficient impact pathways – Analyze critically our work The chips analogy
  28. 28. CIP’s stakeholders: local partners NARIs, NGOs, public authorities, farmers, etc. Clients who benefit from our R&D products Business as usual: – Individually: (only) providers of data – Collectively: benefit from research products (public goods) CSR – Take demand into account (even if they don’t pay) – Be accountable. Strive to make sure they benefit individually from research process (capacities, reflexion) if not from the final product – Develop access to knowledge - as important as research products themselves (Cf. distribution network)
  29. 29. CIP’s communication • Important to have high quality (and good- looking) publications for donors and medias. • Internal communication and debate at CIP, institutional learning, knowledge management and sharing, capacity building and communication with stakeholders are as important as research itself
  30. 30. conclusions
  31. 31. Assessing impact: • Impact study on the development of the native potato market – Papa Andina/DIV I • Effects of market articulation on livelihood and biodiversity – Papa Andina / DIV I and III Learning from the experience: • Relevance and potential of the “Innovandes” model for better linking research and development – Papa Andina / DIV IV • Lessons learned on stakeholder platforms, with a focus on facilitation role – Papa Andina/DIV I Pending research issues
  32. 32. Conclusions of a “bicho raro” at CIP • “L’enfer, c’est les autres” – CIP makes good research – Papa Andina develops good approaches for innovation Bottlenecks (long-term processes) • Establishing real partnerships with local partners struggling in a complex reality • Feeding back the research agenda • Most difficult personal challenge: find balance between – scientific rigor and pragmatism – intellectual honesty and need to “sell” ideas – facilitating and publishing – development and research objectives
  33. 33. Key references • Native Potato Market Chain and Poverty Reduction: Innovation around Corporate Social Responsibility, Thomann A. et al., article presented at ISTRC, Lima, 2009 • Brokering Innovation for Sustainable Development: The Papa Andina Case, Devaux et al. Working Paper accepted by ILAC for publication, 2010 • Multistakeholder platforms for innovation and coordination in market chains, Thiele G. et al, article presented at ISTRC, Lima 2009. • CSR: A Challenge for the Donor Community. Frame, B., Development in Practice, Volume 15, Numbers 3 and 4, June 2005. • Maximising the Contribution of Agricultural Research to Rurual Development, Ashley S et al., EIARD discussion paper, November 2009 • Perspectives on partnerships: A litterature review, Horton D. et al, CIP working paper, 2009 • Huis Clos, Jean-Paul Sartre, 1944, Ed. Gallimard, France. • Del Titanic al Arca de Noé – Cuentoferencia de François Valley, Biblioteca del Olivar, San Isidro, junio 2010
  34. 34. ¡Muchas gracias! Alice Thomann Papa Andina a.thomann@cgiar.org

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