session 3.5 innovative alliances and maxim is ing impacts - ja

8/14/2019 Session 3.5 Innovative Alliances and Maxim is Ing Impacts - Ja

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BUILDING INNOVATIVE

ALLIANCES TOMAXIMIZE PRO-POOR

IMPACT

Jane Nelson

The Business and Poverty Leadership

Programme

Cambridge, November 15th 2006


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n WHYinvest time, money

and effort in building

alliances?

n

WHATtype of alliancesare emerging and whats

their potential?

n HOW can we build moreeffective alliances to

meet business and

poverty alleviation goals


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POVERTY(Adapted from Shailaja Fennell)

LACK of access to meet basic

needs LACK of opportunity to build

income and assets

LACK of voice to participateand influence decision-making

LACK of security to cope with

crises

MARKET-based solutions

WELFARE-based solutions -


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From the working poor to the

destitute


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The business potential for

pro-poor practices and alliances

1) CORE BUSINESS

ACTIVITES

- Workplace and

operational processes

- Marketplace and

products, services

- Value chain linkages

2) WIDER COMMUNITIES

Strategic

philanthropy, social

investment, employee

volunteering, community

development and

consultation

SYSTEM-LEVEL (industry-

wide, national or

global) Public policy;

advocacy; institution


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WHY

invest time,

money and effortin building

alliances?


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Responding to

governance gapsand failures


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The proper guardians of the public

interest are governments

The Economist, January 2005


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GOVERNANCE GAPS

BAD governance

WEAK

governanceINDIFFERENT

governance

UNCOORDINATED

governance


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Overcoming

market failuresand information

asymmetries


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Building and

sustainingTRUST

and reputation

with NGOs,


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Scandal andSuspicion


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Stakeholder activism fromanarchists to activists to active

partners


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Edelman TRUST BAROMOTER

2,000 opinion leaders in 11countries over 7 years

tracking data

NGOs MOST TRUSTED INSTITUTIONS

Trust ratings over 50% in US

(up from 36% in 2001)

Trust in NGOs increasedsignificantly in last 12

months in Canada, Japan and

China (from 36% to 60%)


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NGOs dominate the big issues in terms

of trustEDELMAN/Strategy One survey: June, 2004


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Number of International

NGOs

1909 1964 2000

50,000

176

1993

28,900


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Strategies for

NGO/Community Engagement

CONFRONTATION

COMMUNICATIONCONSULTATION

COOPERATION


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Identifying andmanaging complex and

fundamentally

new risks, new

expectations and new

opportunities thathave an impact on

both business and the


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1. Fundamental economic anddemographic shifts

2 F d t l t h l i l


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2. Fundamental technological

change


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3. Fundamental ecosystem change


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4. Fundamentally new global

health challenges

Diseases of

POVERTY

Diseases of

AFFLUENCE Diseases of

INTER-

DEPENDENCE


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WHY ENGAGE & PARTNER?

n To increase trust, influence,license to operate and

Legitimacy

n

To share risks/burdens andcreate a Level-playing field

n To drive Learning and

innovation

n To mobilize joint resources

and Leverage impact and

effectiveness

n To shape the agenda and play


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WHAT

types of alliance

are emerging andwhats their

potential ?

Diff t b i


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Different pro-poor business

strategies(Source: Nelson 1998, 2001)

ore purposes or


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ore purposes oralliances

1. DO NO HARM - Minimize negative

impacts on the poorControl AND account for social,

ethical and environmental impacts,

risks, costs and liabilities

2. DO POSITIVE GOOD - Optimize the

positive

Create NEW value through CORE

BUSINESS OPERATIONS or COMPETENCE-LED PHILANTHROPY

3. CONTRIBUTE TO SYSTEMIC CHANGE -Advocacy, chan e the rules, shift


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KEY MODALITIES FOR

BUILDING ALLIANCES

1. Alliances at the

individualcompany-level

2. Collective industry-

wide action

3. Collaborative multi-

sector action


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1. Alliances at the

individualCOMPANY LEVEL

To improve and account forcompanys own performance advice; research; assurance

To innovate and create newmarkets, business linkages,products, services andprocesses that meet socio-economic and environmentalneeds

To leverage competence-led


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2. Collective BUSINESS or

INDUSTRY-WIDE alliances

To create industry-wide, self-regulatory standards, guidelinesand practices Equator Principles; WolfsbergPrinciples; Sustainable Agriculture Initiative;

International Council of Mining & Metals

To increase scale and reach ofprojects at a national level South Africas Business Trust; Thailand Business

Initiative for Rural Development; Chile Mining Cluster

To advocate for progressivechange - Global Business Coalition on HIV/AIDS;Business Action for Africa


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3. Collaborative MULTI-

SECTOR alliances

To co-create and spread morebroadlyaccepted norms andframeworks and standards:Marine Stewardship Council; Partnership for QualityMedical Donations; Ethical Trading Initiative;

Extractive Industries Transparency Initiative; UN GlobalCompact; National industry charters and covenants

To leverage public and private

resources to deliver essentialservices or advocate:Global Alliance for Improved Nutrition

Global Fund for HIV/AIDS Red Campaign

USAIDs GLOBAL DEVELOPMENT ALLIANCE


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HOW

can we build more

effective alliances

to meet both

business and social

goals?


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Partnership challengesOperational obstaclesOvercoming mutual mistrustBridging differentapproaches, languages, andtime horizons

Addressing power dynamics

Managing unrealisticexpectations

Risks to reputationPossible conflicts ofinterest

Lack of appropriate skills

Measurin im act and value-


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Partnership challenges

Operational obstacles

Strategic dilemmas

- Achieving scale

- Issues of accountability and

representation

- Alliances should not

replace government


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Critical Success


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Critical Success

Factors PURPOSE:Know

your goal. Know

your partners

PROCESS: Knowyour role and how

to communicate

PROGRESS:Know how to

evaluate, when to

celebrate, adapt or

exit

Invest time up-front to understand

partners capacities, constraintsand goals

Consult key stakeholders /

beneficiaries

Agree clear and common goals based

on mutual benefit

Clarify ground rules, roles

/responsibilities

Role of intermediary leadership or

broker

Communication - regular,

transparent, accountable, structures

for decision-making and conflict-

resolution


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PEOPLE !


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PARTNERSHIPS as a useful tool

to harness necessary

resources and stakeholder

support to tackle complex

business and sustainability

challenges in a mannerthat either

protectsexisting valuecreatesnew value

facilitatessystemic

a ques on o us ce


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a ques on o us cesecurity?

.a moral case AND an economic

case?


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f h


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Defining Partnership

Partnerships are voluntaryagreements in whichparticipants agree to work

to together to achieve acommon purpose or undertakea specific task and to share

risks, responsibilities,resources, and benefits.

Nelson: Building Partnerships (2001)

session 3.5 innovative alliances and maxim is ing impacts - ja

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