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UNDP and the Business Sector

UNDP and the Business Sector

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UNDP and the Business Sector

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  1. UNDP and the Business Sector A Strategic Partnership to Make Business Work for the Poor Bureau for Resources and Strategic Partnerships

  2. Session Outline: • The “How” – process, tools • UNDP partnership approach • UNDP strategic goals and opportunities Bureau for Resources and Strategic Partnerships

  3. The Partnership Process and the Tools General organizational instruments to facilitate & manage cooperation • Policy Statement • Guidelines • Screening support • MOU – Project Document - CSA • Advisory Board / Steering Committees • “Starters’ Toolkit” Bureau for Resources and Strategic Partnerships

  4. Tools / Instruments UNDP Policy Statement • The various types of engagement with • business Principles to navigate cooperation with business: • Based on national priorities • Support UNDP’s overall goals • No commercial or productive activities • Impartiality and no conflict of interest • Transparency and coordination • No special advantage or exclusivity • Inclusion of all stakeholders • Sufficient resources, time and capabilities from UNDP Bureau for Resources and Strategic Partnerships

  5. …and the WHAT NOT • NO Commercial activities • NO UNDP as contractor for a private investment / tax breaks for company imports • NO activities where the primary beneficiary is the company itself • DO ask yourself what is the motivation of the company Bureau for Resources and Strategic Partnerships

  6. Tools / Instruments UNDP Guidelines • Complements SG’s Guidelines • Key elements: • Screening / assessing the partner • How to Define the Partnership Activity • Types of agreements governing contributions • Approval procedures / authorities • Use of UNDP name and emblem • Business ethics, Code of Conduct for UNDP staff • Documenting experiences, learning • Internal support units etc Bureau for Resources and Strategic Partnerships

  7. Tools / Instruments Screening / assessing the partner Inter-agency Corporate Assessment Tool - Calvert • Child labour, forced labour • Health and safety records and practices • Freedom of association • Discrimination and diversity • Corruption • Working hours • Remuneration • Product safety and impact • Community relations • Indigenous people’s rights • Environmental records and practices • Human Rights records and practices • Overall public reputation Bureau for Resources and Strategic Partnerships

  8. Tools / Instruments Formalizing the cooperation Bureau for Resources and Strategic Partnerships

  9. Tools / Instruments … in general also consider: Advisory Board / Steering Committees to provide overall advice and feedback along with insight and a deeper understanding of the business perspective Bureau for Resources and Strategic Partnerships

  10. Tools / Instruments “Starters’ Toolkit” Practical tips to get started • Strategy Development • Managing partnerships in the country office • UNDP as advocate for CSR • Using Global Compact as framework • Formalizing cooperation • Communications and media Bureau for Resources and Strategic Partnerships

  11. Partnerships both an art and a science • Art: • Insight, imagination • Vision, creativity • ‘People skills’ • Active listening • Personal engagement • Science: • Knowledge, analysis, • conceptualization • Understanding the past • Administrative, organized • Precise communication • Professional detachment Bureau for Resources and Strategic Partnerships

  12. Division for Business Partnerships External global relationships – Internal support “Double T” strategy – deepen & widen • Overall advice, guidance and support to COs, units • Global positioning of UNDP with business, donors • Broker, guide and coordinate partnerships (global, national) • Support negotiations and partnership development • ‘Knowledge Packs’ – Sharing good practice • Screening of Companies – Calvert Database • Toolkit, policies, guidelines • Support to strategy development, training • Global Compact • Growing Sustainable Business initiative http://intra.undp.org/brsp/business/index.html Bureau for Resources and Strategic Partnerships

  13. UNDP’s Partnership Approach • A facilitator / broker of partnerships • A partner UNDP as: Types of engagement with business: • Advocacy, policy dialogues • Partnership projects - practice areas / MDGs • Facilitate sustainable investments and private delivery of services & products • Support to private sector development • Global Compact as a platform & framework • Commission on PSD Report as guide Bureau for Resources and Strategic Partnerships

  14. UNDP Strategic Goals & Opportunities 2004 1. ‘Commission on Private Sector and Development’ Strategic partnership projects UNDP as a ‘broker’ of sustainable, pro-poor investments (‘Growing Sustainable Business) 4. “Mainstreaming” business partnership approach 5. Strengthen & expand Global Compact country networks Bureau for Resources and Strategic Partnerships

  15. UNDP Strategic Goals & Opportunities 2004 UNDP as Broker - Growing Sustainable Business Pilots in: Ethiopia, Madagascar, Tanzania i) Broker ‘sustainable’ business investments - New business models, large–small enterprise linkages ii) Multi-stakeholder alliances to ensure sustainability & link to development (MDGs, PRSPs) Investment examples: • EDF / E7 – peri-urban electrification • ABB – rural energy solutions • Ericsson - rural telephony • Tetra Pak – support dairy production GSB and brokerage scaled up in 2004 – 2005; UNDP niche (?) Bureau for Resources and Strategic Partnerships

  16. UNDP Strategic Goals & Opportunities 2004 Strategic, significant partnership projects (Large scale, replicable, long-term relationships) Examples: i) Governance, sustainable development plans - Statoil Venezuela; BP Indonesia; Shell Nigeria Environment, biodiversity - Nexen Yemen; LPG Challenge; Multifunctional platforms (Aarhus) SME development - ChevronTexaco Angola; Supply Chains Mexico ICT - Microsoft, Cisco – Global Social, environmental impact assessments - Shell, China pipeline; Aracruz/Stora Enso, Brazil Bureau for Resources and Strategic Partnerships

  17. Examples of Partnership Initiatives GlobalNetworking Academies in LDCs — ICT for development Who? CISCO, UNDP, UNV, USAID What? To meet the IT skills shortage in LDC’s by establishing ‘networking academies’ and provide training in computer networking. Academies in 10 countries. How? UNDP’s initial involvement started under the Asia regional programme on ICT for development through negotiations between UNDP - CISCO. Bureau for Resources and Strategic Partnerships

  18. Examples of Partnership Initiatives Ghana ICT to the country — Mobile Telecentre To-Go Who? Government, UNDP, 11 companies, civil society groups What? Introduce information and communication technology to schools, health clinics, farms, local businesses, NGOs etc. through mobile telecentres located in a bus. How? UNDP organized workshop to present various ICT related initiatives and ideas. Several companies became interested and recognized importance of ICT. Bureau for Resources and Strategic Partnerships

  19. Examples of Partnership Initiatives China Social impact and poverty alleviation West–East pipeline Who? UNDP, Shell, PetroChina, Government, Universities and various institutes What? UNDP is undertaking social impact assessment in preparation for the construction of West-East pipeline, to ensure that social and community concerns are taken into consideration and are being addressed, and to examine how local communities along the pipeline can best benefit from the project. How? UNDP, based on an agreement with Shell, has engaged the Government, PetroChina and various universities, development institutes and local governments to participate in the assessment exercise. Bureau for Resources and Strategic Partnerships

  20. Examples of Partnership Initiatives Venezuela Governance — Human rights Who? Government, Amnesty International, Statoil and UNDP What? Build capacity within judiciary system on international human rights law. Training of judges and federal prosecutors as trainers. How? Statoil approached UNDP for cooperation and protection of human rights was defined as area of common interest. This coincided with strengthened emphasis on human rights in national judicial system. Bureau for Resources and Strategic Partnerships

  21. UNDP Strategy Private Sector Development • Distinguish from partnerships, but convergence – partnership for private sector development • PSD, income generation, microfinance - MYFF service lines • Commission report provides direction • Main areas for UNDP private sector development: • - Technical assistance, business services • - Microfinance (UNCDF / SUM) • - Facilitate investments • - Policy advice, policy reform (emerging) Bureau for Resources and Strategic Partnerships

  22. UNDP Strategic Goals & Opportunities 2004 • From business partner: • Financial • Expertise • Training • Management • Technical • Goods, equipment • Employee volunteers • Employee secondment • Office space • Venues for events • Transport HOW? Partnership Projects Types Of Contributions Bureau for Resources and Strategic Partnerships

  23. UNDP Strategic Goals & Opportunities 2004 “Mainstreaming” business partnership approach • Business engagement & partnerships, a way of working • UNDP Task Force on private sector partnerships • Stronger network of focal points - practice areas, COs, regional bureaus • ‘Knowledge Packs’ - partnerships by practice area • Knowledge database – current partnerships, good practice Bureau for Resources and Strategic Partnerships

  24. Tools / Instruments Execution mechanisms • Normal UNDP projects - with business as partners • NEX / DEX preferred, agency execution possible • Use of cost-sharing mechanism recommended • DAS (CO Admin. budget for smaller contributions) • Umbrella programme model – China • Project arrangements should have element of partnership management (e.g. multistakeholder • steering committee) Bureau for Resources and Strategic Partnerships

  25. Partnership phases & skills 1. Partnership exploration Internal assessment, external mapping, consultations, advocacy, positioning, networking, relationship building 2. Partnership building Consensus building, facilitation, negotiations, agreements, project formulation, targets - define success 3. Partnership implementation & maintenance Monitoring, reporting, reviewing, capacity building 4. Completing projects – sustaining relationshipsEvaluation, replication / scale up Bureau for Resources and Strategic Partnerships

  26. Partnership phases & skills Phase 1: Partnership exploration Skills needed Key Tools Internal assessment process: Understand incentives, negotiables, obstacles, assets Internal assessment Consultation Communication Consultation process: Identify stakeholders and partners Bureau for Resources and Strategic Partnerships

  27. Partnership phases & skills Phase 1: Partnership exploration Do an organizational self-assessment: • What are our own interests? • What are our strengths / weaknesses etc (SWOT)? • Are we ready to collaborate? - Attitudes among staff towards business • Why would business want to work with us? • What are the opportunities in our area? • Are there any particular risks? • Cost / benefit analysis Bureau for Resources and Strategic Partnerships

  28. Partnership phases & skills Phase 1: Partnership exploration TOOL: Possible criteria for selection of business partner: • Environmental records & practices • Human Rights records & practices • Overall public reputation • Child labour, forced labour • Health & safety records & practices • Freedom of association • Discrimination and diversity • Corruption • Product safety and impact • Community relations • Indigenous people’s rights Bureau for Resources and Strategic Partnerships

  29. Partnership phases & skills Phase 2: Partnership building Skills needed Key Tools / Tasks -Consensus building methodology (shared visioning workshop, joint action planning etc) - Resources, roles, responsibilities - Consider use of mediator - Consensus building - Facilitation / mediation: overcoming preconceptions - Negotiation: closing deals - Programme formulation - Partnership agreements: MOU, financial agreement, work plan, grievance mechanism etc. - Project document Bureau for Resources and Strategic Partnerships

  30. Partnership phases & skills Phase 3: Partnership maintenance Skills needed Key Tools / Tasks - Communication tools - Indicators, measurement tools, benchmarks - Strengthen partner capacity to meet their commitments - Partnership indicators - Assess achievement of each partner’s objective - Management capacity - Mentoring: coaching Others - Capacity building - Monitoring Bureau for Resources and Strategic Partnerships

  31. Partnership phases & skills Phase 3: Partnership maintenance / completion Agree on tool to track development benefits: Bureau for Resources and Strategic Partnerships

  32. Partnership phases & skills Measuring partnership results and impact Measuring for success – IBLF / Cambridge CD IFC measurement sustainable business Bureau for Resources and Strategic Partnerships

  33. POLITICAL ECONOMIC Governance SOCIAL Development is an Interdependent Process with Increasingly Diffused Decision Making • The State provides governance framework, infrastructure and basic social services • CSOs advocate for groups not well represented • Private business drives economic development Bureau for Resources and Strategic Partnerships

  34. Partnerships bring benefits to all partners • Potential benefits: • Increased access to resources (pooling / leverage) • Increased participation – social capital! • Development of human capital • Better access to information • Enhanced legitimacy & credibility • Improved operational efficiency • More effective / appropriate products & services • Organizational innovation Bureau for Resources and Strategic Partnerships

  35. Key lessons • Capacity building is critical – attitudes • Involve the entire office, get RR fully on-board • Understand why partners are interested • Substantive credibility attracts partners • UNDP visibility attracts partners • Be opportunistic but with principles • Focus on creating small successes – will generate confidence and more success • PATIENCE! Bureau for Resources and Strategic Partnerships

  36. Development – interdependent process complex, multi sectoral Bureau for Resources and Strategic Partnerships