Tbl Issue 7 Cross Company Csr

january-february 2009 issue 07

a specialized csr journal

12 cover story

the future of corporate social responsibility: cross company csr

14 csr toolkit

our ccc model

18 collaboration in the health sector

the case of bangladesh and tuberculosis

24 collaboration and sustainability

how collaboration can save the planet - and your business

28 report

reporting on community impacts

32 private sector: liberalizing off the hook 40 beyond accounting: assessing the impact of sustainability reporting on tomorrow’s business

A Publication of Asiatic Public Relations Network (Pvt.) Ltd.

CROSS COMPANY CSR

regulars 9 global briefs people - planet - profits

14 csr toolkit

our ccc model

18 social partnership collaboration in the health sector: the case of bangladesh and tuberculosis

22 breather 28 report: community impacts 36 what's happening 38 csr reflections on davos 42 crossword 43 on the lighter side 44 musings any takers?

Editor-in-Chief Zohare Ali Shariff Editorial Director Khadeeja Balkhi Managing Editor Rutaba Ahmed Research, Distribution & Development Mehfooz Aleem Zahra Baray Alizeh Shariq Creatives Kamran Rauf Umair Anwar Shireen Lotia Reprint In line with our mission, we encourage reproduction of material, provided tbl and content partners are given credit Publisher Asiatic Public Relations Network (Private) Limited Printed at Nikmat Printers, Karachi

Subscription, advertising and feedback at: tbl:

triple bottom-line

Address: Tel: Fax: E-mail: Web:

A-7, Street 1, Bath Island, Clifton, Karachi, Pakistan. (92-21)-5837674, 5823334 (92-21)-5867103 [email protected] www.tbl.com.pk

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Disclaimer The views expressed in tbl are the authors’ and not necessarily shared by tbl and/or APR Declaration From the office of District Coordination Officer, City District Government Karachi NO.DCO/DDO/LAW/CDGK/109/200 7, Karachi Dated May 22, 2007

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editorial advisory board Anwar Rammal Chairperson Chairman Asiatic Public Relations

features 4 thoughts for 2009 BS for 2009: building sustainability

Khadeeja Balkhi Executive Member Sustainability Consultant

8 09 prospects hope and 2009

12 cover story the future of corporate social responsibility: cross company csr

24 collaboration and sustainability how collaboration can save the planet - and your business

32 private sector: liberalizing off the hook

Khawar Masood Butt Founder Sponsor Member Chairman and MD English Biscuit Manufacturers

Habiba Hamid Member Founder, Saracen Consulting

public-private partnership: transition to greater economic freedom

34 csr guidelines a way forward - the commonwealth business council guidelines for corporate citizenship

Abrar Hasan Founder Sponsor Member Chief Executive National Foods

40 triple bottom-line reporting beyond accounting: assessing the impact of sustainability reporting on tomorrow's business

Ayesha Tammy Haq Member Corporate Lawyer, Legal and Media Consultant

Vivian Lines Member President and Chief Operating Officer, Hill & Knowlton’s Asia Pacific Region

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editor’s note

csr direction finder

T

he good news for CSR in Pakistan in 2009, is that it is finally closer to transforming from corporate philanthropy into what it should be - a strategy integrated into the business of the company, that seeks to achieve the triple bottom line of benefiting the people and the planet while assuring sustainable growth in profits for the company.

that such cooperation will yield higher benefits for all actors, including the partner companies themselves. Our cover story is on this subject. And we've shared the outline of a working model towards implementing such an enterprise.

One indicator of this is the increasing number of companies that have started publishing CSR, sustainability and environmental reports. This places a certain responsibility on the company. First of all it must have sufficient information to convey, which means it is doing something within the field it is reporting on. Second, the company knows that it cannot really publish a report that is little more than glorified selfpraise. Its reporting must be measurable and open to question. Which effectively means that it needs to get into more structured and sustainable practices to be able to report in a credible way. And so reporting in a way becomes a direction finder for the company.

Also as the first issue of this year, we decided we need to hear from corporate leaders, on their forecast of the future of CSR. We thank all of you who responded and appreciate your understanding of our editorial policies as an independent publication. One of the positive conclusions from the comments we received is that most corporate leaders in this country are bullish about CSR - and we can safely assume that the companies they represent will be expanding their sustainability practices, in this year and beyond.

We at tbl are working to make this publication another direction finder. By disseminating knowledge of CSR, we hope to catalyze thinking, planning and programming within the corporate sector, so that each company is enabled to find its own optimum direction. This process cannot be meaningful if tbl is not exploring new ideas and new directions for CSR to grow in the country, as a business discipline. Hence, in this first issue of year 2009 we are pleased to present a new concept for CSR. A concept which we believe has not been formally presented at any forum in the world so far and hence, a concept that is our own inspiration. We have called it Cross-Company CSR and the basic premise is that the next generation of CSR will involve companies with potentially overlapping value-chains to collaborate resources, towards the 'value-chain' of, for example, a common stakeholder group. The inherent implication of course is

vision and mission

Taking our platform forward, tbl will take on itself the role of a clearing house, so to speak. We are identifying areas for Cross-Company CSR to be initiated, becoming a forum for in-depth exploration of its possibilities and, plan to hopefully play matchmaker for companies wanting to explore our next-gen model.

These are interesting times, made even more so by the current global economic meltdown, which really has come as a reality check and a wake up call for the corporate sector. It's a call for action - to bring about higher efficiencies, dump excess baggage of all sorts and get a higher focus on business objectives. This also means that companies are cutting down on such expenses as frivolous publicity beyond what is really needed to push products or services (advertising budgets have been slashed worldwide) and diverting the resources to more sustainable practices. In conclusion we can look forward with hope to a better world emanating from the current shakeout! Sincerely,

Zohare Ali Shariff Editor-in-Chief

Vision: To steadily facilitate the germination of sustainable visions for organisational growth, sharing specific triple bottom-line knowledge and tools Mission Statement: To disseminate triple bottom-line knowledge to a diversified group including corporate, social development and general business groups primarily through a specialised journal, expanding in accordance with organisational capacity and market readiness

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A little knowledge that acts is worth infinitely more than much knowledge that is idle Khalil Gibran

tbl's mission is to disseminate CSR knowledge to engender and catalyze triple bottom-line practice Practice CSR - the tbl way

09 prospects

by wayne visser

L

ast month I was at the Science Museum in London attending the 20th Anniversary alumni celebrations of the University of Cambridge Programme for Industry (CPI). The evening included an introductory speech by Director, Polly Courtice. Then we showed a film (on a BIG Imax screen). The film included extracts from interviews I conducted with Joseph Stiglitz, George Monbiot, Hunter Lovins, Elizabeth Economy, Mohammad Yunus and Jeffrey Sachs. These interviews are the basis of two books that I am writing, which will be published in 2009. Following the film was a panel discussion comprising John Elkington (Founder, SustainAbility and Volans Ventures), Emma Howard-Boyd (Director, Juipiter Asset Management), Doug Parr (Chief Scientist, Greenpeace UK) and Jonathon Porritt (Founder, Forum for the Future). They were asked to speak about what made them hopeful about the future. John was placing his bets on social entrepreneurs, Emma commented on substantial growth in SRI in the past year (suggesting that it may be up to 20 percent of all investments by 2015 if memory serves), Doug cited victories installing a new UK nuclear plant and airport runway and Jonathon was putting his faith in a grassroots upswell (and his hopes for Barack Obama). I would be lying if I said it was an entirely upbeat discussion. John 8 www.tbl.com.pk

sees the next 7 or 8 years of recession being very bleak and creating serious (and painful) discontinuities, Doug despairs over multilateral policy processes like Poznan and Jonathon thinks the scope for business to make serious progress in the current policy climate is extremely limited. What all seemed to agree, however, is that 2009 will be an (extremely) challenging and exciting year for all of us working

in CSR and sustainability. Their unified plea was for us to focus on the strategic, systemic reforms, rather than fiddling around the edges with incremental change.

About the Writer Wayne Visser is Founder and CEO of CSR International (www.csrinternational.org). In addition, he is Internal Examiner at the University of Cambridge Programme for Industry, where he previously held positions as Research Director and External Examiner.

global briefs

people

A Poll on MNC's CSR Performance Multinationals are leading players in the global economy. In recent years, most multinationals have released annual corporate social responsibility reports. Ipsos, a leading global market research institution, collaborated with the Chinese business magazine Global Entrepreneur for an online poll about multinationals’ CSR performance. This poll was conducted in November 2007, covering 1,000 respondents of ages 20 - 50 from 10 cities, such as Beijing, Shanghai, Guangzhou, Dalian and Wuhan. According to the survey, 60 percent of the netizens said that investment and the fulfillment of CSR is in line with the operating philosophy of these companies and is a benefit to Chinese society. But nearly 40 percent of the surveyed stated that multinationals' fulfillment of CSR is just a mandatory action they take in order to save face. CEO Attitudes towards Sustainability Issues New Ashridge research was launched recently at the UN HQ in New York at a global forum on the future of management education convened and addressed by UN Secretary General Ban Ki Moon. Key findings from the research are: 76 percent of CEOs and senior executives believe that it is important that senior executives have the necessary knowledge and skills to respond to trends like the low carbon economy, resource scarcity and doing business in emerging markets marked by poverty, corruption and human rights

violations. But fewer than 8 percent believe that these knowledge and skills are currently being developed very effectively, either by their own organisations or by business schools.

rations in this area as soon as possible. The handbook is being translated into Chinese, Arabic and Russian.

According to Matthew Gitsham, the Ashridge author of the report: “The research demonstrates a clear demand from CEOs and senior executives for more and better executive education around the business implications of sustainable development - for both current and future leaders.”

World's First Post-Petroleum City The world's first modern ecolo-gical city - Masdar City occu-pying an area of about 6.5 square kilometer is being built in Abu Dhabi. It will be an entirely car-free city, and multi-story parking lots will be built outside its walls. Masdar will be bisected by a light rail line, and a personal rapid transit system (or PRT kind of a cross between an electric car and a mini-light rail) will take passengers to within 100 meters of any destination in the city.

Handbook on Good Governance Practices for Family Businesses Paying tribute to the fact that family businesses constitute the world's most dominant form of business organizations, playing a key role in economic growth and employment generation in many developing countries, the International Finance Organisation (IFC) has released a handbook that recommends ways to help family businesses improve their sustainability by establishing good governance practices. Most family businesses have a short life span and about 95 percent do not survive the third generation of ownership. Authors of the handbook argue that this is often the consequence of a lack of preparation of the subsequent generations to handle the demands of a growing business and a much larger family. According to the authors, family businesses can improve their odds of survival by setting the right governance structures in place and by starting the educational process of the subsequent gene-

Shared by CSR Asia, a social enterprise that promotes sustainable business practices

Construction workers are already hard at work erecting "stage one" of the project, which includes a 10MW solar power farm, the foundations of Masdar's corporate offices, and Masdar Institute - an academic institution, developed in cooperation with MIT, that will focus on sustainable energy research. Sandwiched between an expanding airport, a new neighbourhood of luxury villas, a golf club and various other real estate projects, Masdar City will be a selfcontained island of sustainability a city within a city. Just under a million people live in Abu Dhabi; Masdar will house only some 40,000. Another 50,000 commuters will work inside its walls. Shared by TreeHugger, an online media outlet dedicated to driving sustainability mainstream

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planet

Satellite to Track Greenhouse Gases The world's first satellite dedicated to monitoring greenhouse gas emissions, launched recently in Japan, aims to aid the fight against global warming while boosting its own space industry. The mission will help scientists measure the density of carbon dioxide and methane from almost the entire surface of the Earth, according to the Japan Aerospace Exploration Agency (JAXA).

A Japanese-made H-2A rocket carrying the Greenhouse Gases Observing Satellite (GOSAT) blasted off from Tanegashima, a small island in southern Japan, after a two-day delay due to bad weather. The satellite, also called Ibuki, or "breath of fresh air", will collect data from 56,000 locations around the world, a dramatic increase from the 282 observation points available as of last October, JAXA said. It is hoped that the launch will boost Japan's space industry's efforts to win satellite launch orders for its H-2A rocket in the face of tough competition from US and European companies. Shared by Grist, an online environmental news magazine

High-End, Completely Sustainable Jewellery Most of us agree that killing sometimes endangered animals strictly to use their parts for fashion accessories or high end garments is deplorable. But what if the animal is already dead? Amy Nugent, a jeweller and artist in Vancouver, uses roadkill as the main ingredient in creating jewellery. 10 www.tbl.com.pk

According to a recent story in the Canadian Press, the roadkill artist feels that her work is entirely sustainable: "This is all about honouring the animals and recycling," she said. She uses a wide range of animals in her lines, and her wares seem marketed towards upscale fashionistas. So is this ethical and sustainable? Aside from the unseemly act of peeling dead creatures off the road, there seems to be no further offense to animal life or the law. Could it actually be best to put the animal parts to reuse, instead of having them rot on the road's shoulder?

Shared by TreeHugger, an online media outlet dedicated to driving sustainability mainstream

Global Warming Could Unleash Ocean 'Dead Zones' Global warming may create "dead zones" in the ocean that would be devoid of fish and seafood and endure for up to two millennia, according to a study published in January 2009.

concentrations would rise to 1,168 parts per million (ppm) by 2100, or about triple today's level. Under the more optimistic model, CO2 would reach 549 ppm by 2100, or roughly 50 percent more than today. Lead scientist Gary Shaffer of the Niels Bohr Institute at the University of Copenhagen said it was unclear, in the grim light of this study, whether future generations could look to the oceans as a major reserve of food. "Reduced fossil-fuel emissions are needed over the next few generations to limit ongoing ocean oxygen depletion and acidification and their long-term adverse effects," he said. Shared by Grist, an online environmental news magazine

In a study published online by the journal Nature Geoscience, scientists in Denmark built a computer model to simulate climate change over the next 100,000 years. At the heart of their model are two wellused scenarios which use atmospheric levels of carbon dioxide (CO2), as an indicator of temperature rise.

First Green Food County in China For the first time, an entire county in China has been certified to produce green food. Ruyuan Yao Autonomous County in Guangdong has become China's first model green food production centre, with eight green food types listed including vegetables, Chinese pea, Brazil nuts, and whitebait. Currently, the county has 18 companies involved in green food processing, with annual green food production totaling 30,000 tons (and 200 million RMB). Green food production in Ruyuan has driven cooperation between corporations, associations and farmers with the result that many of the latter have been lifted out of poverty.

Under the worst scenario, CO2

Shared by CSR Asia, a social enterprise that promotes sustainable business practices

Its authors say deep cuts in the world's carbon emissions are needed to brake a trend capable of wrecking the marine ecosystem and depriving future generations of the harvest of the seas.

profits Energy Innovation: Renewable Energy Research Center A joint renewable energy research center is being set up in Spain and Portugal. The socialist governments of both nations have made it a priority to boost spending on training and technology to make their economies more competitive. Portugal, which is almost entirely dependent on imported energy, aims to collect 45 percent of its total power consumption from renewable sources like solar and wind power by 2010. Spain aims to triple the amount of energy it derives from renewable sources by 2020. Spain is already among the three biggest producers of wind power in the European Union along with Germany and Denmark, according to agence France-Presse. The Real Price of Rubber To feed its booming automobile and tyre industry, China plans to increase its natural-rubber production by 30 percent from 2007 levels by 2010. As a result of tripling rubber prices over the past decade rubber plantations have boomed in Xishuangbanna, Yunnan, leading to drastic loss of forests; between 1976 and 2003 alone the total forest cover decreased to less than 50 percent and that of primary rainforests even to 3.6 percent. Scientists at the Xishuangbanna Tropical Botanical Garden (XTBG), the Chinese Academy of Science's institute for conservation research, have calculated the ecological costs of rubber plantations: a total of 6 million tonnes of biomass carbon stock

were lost in the prefecture between 1976 and 2003. Shared by CSR Asia, a social enterprise that promotes sustainable business practices

Eco-Friendly Car Rentals Mint Cars on demand is a new alternative to car ownership, 24 HR Rental Cars, Taxi's and Public Transportation in New York. Members get on demand access to vehicles 24/7 for as little as an hour or as much as several days. Mint claims a diverse fleet of fuel efficient vehicles such as Smart Cars, as well as some old-school non-ecomobiles which the company calls "fun cars for that special occasion." Mint helps reduce carbon footprint by taking cars off the road which means, less traffic, less pollution and a reduced dependency on fossil fuel. Other advantages are that people don't have to deal with car payments, insurance, maintenance or (and this leaves more room for pedestrians and bikes) parking. Drivers use the Drive Mint website to pay a one-time application fee and if approved they receive a smart card which is swiped on the vehicle's sensor to gain immediate entry. Now, Mint also offers a very special rate of two dollars per hour to rent a car Monday through Thursday. Shared by TreeHugger, an online media outlet dedicated to driving sustainability mainstream

Lack of Media Understanding on Climate Change In today's world, media accuracy is crucial. A Chinese climate

change scientist with the Research Institute of Forest Ecology, Environment and Protection at the Chinese Academy of Forestry, Jiang Youxu, was branded a villain for proposing an environmental tax to finance reforestation in order to reduce greenhouse gas emissions. His actual words at the China Forest and City Forum: "As urban forests have so many obvious beneficial functions, shouldn't we further consider the idea of an environmental tax? … [Since] every city-dweller is putting out carbon, we could give 10 or 20 yuan to a fund [and] this money could be used for reforestation, or businesses could use the money from the taxes to plant urban forests," were soon interpreted and distributed by online media outlets as follows: "Academic calls for 'breathing tax', 20 yuan per person per month to protect the environment." If he had suggested such a thing, then perhaps the abuse he has received was not undeserved. However, the question remains: did the media accurately and objectively report his actual speech? To an extent, the fuss over the "breathing tax" reflects both sloppy reporting and a lack of in-depth knowledge regarding climate change among Chinese media workers. But more importantly, the whole story demonstrates the chasm that separates scientists, the news media and the public, states China Dialogue.

Compiled by Rutaba Ahmed

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cover story

the future of corporate social responsibility

cross company csr Imagine a manufacturing company in the business of producing and marketing farm implements. Business growth for this company, let's call it Quality Tools Limited, depends amongst other factors, on the level of education (and hence comprehension) the potential buyers - the farmers have, in order that they may better understand both the usage and the benefits of the implements the company markets. It therefore makes good business sense for Quality Tools to enact a literacy programme in the target market areas under its CSR (corporate social responsibility) umbrella. This will serve as capacity building of the farming community enhancing their productivity, which will pay back into the company's business. The idea is evaluated thoroughly and Quality Tools decides to undertake the literacy intervention at two levels for the short to medium term an adult literacy programme that seeks to make present day farmers (customers) more efficient. And looking at it long-term, a primary and secondary education programme to prepare tomorrow's generation (future customers) to be more educated and empowered agriculturists.

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by zohare ali shariff for tbl

All very well, but the company then discovers that the optimum level intervention required for this initiative is going to cost well beyond what it can make available from its CSR portfolio. What is to be done?

Mull Over That. Fresh Thought Process: Now imagine another company, Farm Fresh Foods Limited, a food processing company that purchases the produce of the same farming community. Let us say the farmers are growing orchard crops that the food processing company purchases to produce its range of popular jams. Over a period Farm Fresh Foods has been experiencing a loss of consistency in both quality and in quantity of the produce - causing supply shortages not infrequently and a high rejection rate owing to quality at times being below minimum acceptable standards. This is a serious issue for both the farmers and the company. Farm Fresh Foods considers how the situation can be improved and reaches the conclusion that for long-term sustainable growth, the farmers really need to be educated at least to a level where they can read and understand a step by step set of instructions. This, will produce better and more consistent quality of produce and a higher quantity too. So the company consults suitable education service providers who come up with a programme that is at two levels - a primary and secondary education level to prepare tomorrow's generation to be more educated and empowered agriculturists, and an adult literacy level that seeks to make present day farmers (raw material suppliers) more efficient. Again, all very well. But when the details are worked out, the cost of the programme turns out to be prohibitive. Farm Fresh Foods can start off something at a lower level to match its available budget. But then this is not expected to make enough of a difference to justify starting the programme at all. So what is to be done?

Synergizing for Optimal and Wider Benefits Ironically enough, while the 2 companies are individually trying to figure out a solution, not knowing that both of them are facing the same issue, it is their common stakeholder, the farming community that comes up with one. Separately executives of Quality Tools and Farm Fresh Foods have spoken to the community elders of the need to do capacity building of the people and the elders had bought into the idea. This, the elders remember. When both companies eventually show reluctance in matching their prom-

ises with deeds because of financial constraints, the community leaders have a clear message for them. Join hands, they tell Quality Tools and Farm Fresh Foods. Pool in all resources - funds, management's time and project management expertise and go for the establishment of the educational facilities together. The idea is simple, yet exciting. The farming community is part of the value chain of both companies, divergent as their businesses may be. It serves both of them to strengthen it. And perhaps because their businesses are so different, there is no apparent competition or negative fall-out of a joint CSR initiative. Soon enough a primary school is built which educates the community's children in the daytime. This then serves as an adult literacy centre in the evening, when the children's elder siblings and parents end their day's work in the fields and are able to take classes. Even the physical space is thus optimized. A little after the project takes off, the ground-breaking for the secondary school is performed.

Revolutionizing CSR What happened here? Well, we have just advocated a hypothetical, yet very possible in the real world, concept which can be developed as a new dimension for the future of CSR. We will call it simply by what it is - Cross Company CSR. The coming together of two or more companies for executing CSR initiatives which are of benefit to all and which can best be better executed by combining resources. Of late the general trend has been for more and more companies to get on the CSR bandwagon. Some have done it for the photo opportunity and have not progressed much beyond corporate philanthropy. Others have advanced to more elaborate initiatives, while a few have even gone the whole 9 yards and built CSR seamlessly into their business operations. They have strategically pursued the triple bottomline and have demonstrated that their CSR models are indeed sustainable. But even the top CSR champions have done it more or less alone. Examples of joint CSR programmes will be hard to find, at least in terms of these being strategically planned sustainable initiatives. More likely they would have come about, almost accidentally, to suit the expediency of a particular situation. This by itself hints at the initiative being non-sustainable, with one reason possibly being that it benefits one partner over the others much more, after the initial phase. continued on p.16

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csr toolkit

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About the Writer Khadeeja Balkhi is a Sustainability Consultant who finds great joy in her work, whether it's strategizing, hands-on implementation, field-based stakeholder engagement or documentation and monitoring.

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In the related world of corporate philanthropy however, one finds that two or several companies joining hands to support a cause is a common enough phenomena. Fundraisers are perhaps the best example, where several companies will take high priced tables at a soiree, which cannot take place to start with unless a minimum number of tables are taken up. Then there are numerous other examples from the world of sports, arts and culture, education and still others, where companies have pooled in mainly one resource - cash - to achieve a goal that cannot be achieved singly. It is another matter that such philanthropic bonding may do something for the image of the companies involved, but it will do very little if anything at all for the companies' triple bottomlines.

Benefits of Cross Company CSR It is therefore now time for CSR to dynamically evolve to another level. Cross-Company CSR has obvious benefits. The benefits increase exponentially over time. Synergy, personified. Greater economies of scale can be achieved. Optimization of resources can be targeted. The spread in terms of the number of people benefiting will be far larger. And not least,

the sustainability of the now-collective initiative is stronger.

The Way Forward? We at tbl propose the commencement of an immediate dialogue between companies that are serious to explore Cross-Company CSR as a workable strategy for the future. Such dialogue can be initiated by any company, or by an independent body that takes on the task of research to identify possible areas of Cross-Company CSR cooperation, and then goes on to approach likely corporate partners with a view to setting up partnerships between like-minded companies. We believe that even if two companies make a start and launch a pilot project successfully, others will observe and draw learning. A momentum will be unleashed.

About the Writer Zohare Ali Shariff is CEO of Asiatic Public Relations Network Ltd. & Editor-in-Chief of tbl. A graduate of the London School of Economics, he is a published author and winner of National Book Foundation Awards.

invitation The C3 Roundtable Admit it. The wheels in your mind were spinning manically with all the opportunities running through it while you were gulping the Cross Company CSR concept. Well, we think the idea is full of possibilities too. If you believe you have ways to continue to flesh out the concept, we'd like to invite you to be part of a pioneering group that will take this forward and break new ground. Serious implementers and thinkers, aficionados and visionaries, individuals and companies are invited to express their interest in participating in a Roundtable on Cross Company CSR. tbl is organizing the C3 Roundtable in March, before Spring is over! Cross Company CSR can be a global 'first' and you can be a part of firming the concept's foundations. All you need to do to accept our invitation, is write us at [email protected], confirming your interest to debate towards development. 16 www.tbl.com.pk

social partnership

collaboration in the health sector:

the case of bangladesh and tuberculosis by miriam katz for tbl

Collaboration takes many different forms. In the case of Bangladesh, there has been a long history of government collaborating with nongovernmental organizations (NGOs), particularly on issues related to poverty and health. In 1972, the Bangladesh Rural Advancement Committee (BRAC) was founded and has since developed different programmes including micro-credit. BRAC has also expanded to other countries including Pakistan, Afghanistan and Sri Lanka. One of the main areas for which it has received recognition is its tuberculosis programme. This article will look at how BRAC has collaborated with the Bangladeshi government with regard to tuberculosis. The first section will look at the problem of tuberculosis in Bangladesh, the second will examine BRAC's approach to tuberculosis and the third will analyze how government and BRAC worked successfully together. 18 www.tbl.com.pk

The Problem of Tuberculosis in Bangladesh The World Health Organization compiled a list of 22 countries where tuberculosis affects a high proportion of the population. On this list, Bangladesh ranks sixth, which means that the incidence of tuberculosis is quite high, according to the BRAC Annual Report 'Breaking New Grounds in Public Health'. In 2006, there were 101,988 new cases of tuberculosis (TB), according to the World Health Organization (WHO); however, this does not show the full scope of the problem because many people go to the private sector for medical care and the records from these visits are not included in the national count. Most estimates show that there are 300,000 new cases every year and 70,000 deaths, states the Ministry of Health and Family Welfare, Dhaka, Bangladesh. One of the reasons why TB spreads easily throughout Bangladesh is that the country is very small and crowded. TB is very contagious, thus if someone starts coughing and does not seek treatment right away, there is a high likelihood that others will catch it. In addition, the medication for tuberculosis must be taken over a period of six months; however, many people start to feel better after two months and decide to end the treatment, states Snegupta in NY Times. Lastly, there is a large stigma attached to TB. People do not wish to develop it and often hide it if they do develop it because the community may view them in a bad light. For these reasons, BRAC decided to utilize the power of women in the community in order to halt the spread of TB. It was hoped that women would be able to break the stigma of TB and also persuade people to continue the course of their medication. BRAC's Approach to Tuberculosis The BRAC TB programme began

as a pilot project in the district of Manikgonj in 1984 to complement the government's and the WHO's strategy known as DOTS, which stands for Direct Observed Treatment Short course. In 1992, the programme was extended to ten other areas and in 1994, the government signed a memorandum of understanding (MOU) with many different NGOs including BRAC in order to collaborate on TB, according to the BRAC Annual Report. By 1998, all districts of Bangladesh were covered by the DOTS programme. There are two very important innovative components of the BRAC programme, which are user fees and the use of community health volunteers known as shasthya shebikas (SS). User Fees It is much easier for NGOs such as BRAC to impose user fees because the government is not widely trusted in Bangladesh. This is one of the main reasons why the government collaborated with BRAC; NGOs are seen as closer to the people and are very active in Bangladesh. In Bangladesh, there are over 6000 registered NGOs and they cover at least one quarter of the population. With regards to BRAC and TB, user fees were seen as a way for people to comply with their treatment. Each patient has to pay 200 Taka ($3.50) and signs a bond in front of two witnesses, who ensure that the patient continues with their medication. If the patient is unable to pay, the community attempts to raise money; however, if they are not successful, the patient is exempt from the payment. After the patient finishes six months of treatment, the money is refunded. This has led to a 93 percent treatment success rate, which is very high, according to BRAC. In 1991, WHO set a goal of detecting 70 percent of new cases and curing 85 percent of those, reveals Kumaresan in a Review of National Tuberculosis

Programmes. In 2005, only 68 percent of cases were detected; however, this rose to 80 percent in 2006 after an infusion of money from the Global Fund to Fight AIDS, TB and Malaria, according to BRAC. Shasthya Shebikas (SS) The SS programme began in the 1970s when BRAC was still focused primarily on microfinance issues. BRAC had many different village organizations that were charged with decreasing poverty and one idea that came from this was to nominate women to become community health volunteers. The criteria for becoming an SS is being a woman who is socially acceptable in the community; 25 to 35 years of age and having no children under the age of five, according to Faruque Ahmed speaking at the Regional Conference on "Revitalizing Primary Health Care" held in Indonesia in 2008. Each SS is given training in health problems such as diarrhea, the common cold, stomach problems and many other health issues. A special subset of SS's is also given training in TB. One of the main reasons why the treatment success rate in Bangladesh is so high is because each SS works in her own neighbourhood and people in the neighbourhood come to respect and trust her. Although SS's are volunteers, they are able to earn money through two means: selling medical supplies and successful treatment of TB patients. BRAC gives the SS's supplies such as birth control pills and cough medication and the SS's can sell it at a small markup. In addition, for each TB patient that the SS successfully treats, they are given $2.25. Although this is a small amount of money, it gives the SS a bit of economic power since they are usually housewives. There are now over 70,000 SS's in Bangladesh and the programme has also been replicated in many

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other countries including Afghanistan, Tanzania and Sudan. The SS programme is one of the main reasons why the government decided to collaborate with BRAC, as the SS's give the government a link to the community.

Collaboration between BRAC and the Government of Bangladesh History and Benefits to Government There is a long history with regard to the Bangladeshi government collaborating with NGOs. In 1961, the government passed the voluntary social welfare agencies ordinance, which required all NGOs to register with the government, according to Zafar Ullah in a report published in Oxford Journals. In 1996, the government created an NGO consultative council to have direct communication with NGOs. Lastly, in the 1997-2002 Five Year Plan, the government explicitly stated that "collaboration of private organizations/institutes and NGOs will be fostered," states Zafar Ullah. The government derives many benefits from working with NGOs because many people in Bangladesh do not trust the government due to years of corruption. In addition, because NGOs such as BRAC cover such a wide area of Bangladesh, many people have contact with them in their everyday lives. BRAC can reach at least 110 million people in Asia and Africa, thus the government can benefit a lot from this, states Jahfery in the Pakistan Observer. Benefits to BRAC NGOs such as BRAC benefit a lot from collaborating with the government, despite the fact that they may be viewed badly for working with government. NGOs are able to use government facilities such as laboratories and they can also use the purchasing power of the government for TB 20 www.tbl.com.pk

medication. In addition, BRAC has the ability to cover many local areas while the government can see the larger picture and can draw up policy for the entire country. BRAC also has the ability to influence the government and, because they use government resources for TB, the organization can use the extra funds for other issues that require attention. The Future of Collaboration for TB in Bangladesh As mentioned above, the number of TB cases in Bangladesh is not known for certain due to many people using the private sector. In Bangladesh, 54 percent of people use the private sector for health care, according to WHO. This is quite high considering that approximately 63 million people live in "severe deprivation," according to the World Bank. Thus, in the future, the government must collaborate with the private sector in order to accomplish two things: better monitoring of TB and a higher treatment rate. In conclusion, TB is still a serious problem in Bangladesh and in many other countries around the world; however, Bangladesh has shown that collaboration can increase treatment rates. BRAC's innovative SS programme is a model for the world, but they could not have achieved everything they have without the government and the government benefits a lot from collaborating with NGOs. In the future, the government must work with the private sector in order to increase treatment rates even further. Thus, collaboration is often the key to success. About the Writer Miriam Katz is a freelance writer based in London. She currently writes for the Environmental Peace Review. Her areas of interest include environmental issues, renewable energy, biofules and climate change. She holds a Bachelor of Arts in Political Science and Environmental Studies from the University of Toronto. She can be reached at [email protected]

References BRAC "Breaking New Grounds in Public Health: Annual Report 2006" World Health Organization "National Tuberculosis Control Programme Bangladesh: Report of the Fourth Joint Review" AN Zafar Ullah et al "Government?NGO Collaboration: The Case of Tuberculosis Control in Bangladesh" Faruque Ahmed "Community empowerment through micro?credit scheme to improve community health" SHR Jahfery "PPAF Extends Facility of Rs 220 million to BRAC"

“

Confidence grows as slowly as a coconut tree, and falls as fast as a coconut.

”

- Montek Singh Ahluwalia, Indian Economist World Economic Forum, Davos

Call for Pre-Registration:

The CSR Clinic tbl's vision is to disseminate triple bottom-line understanding to catalyze sustainable practices. In our second year of publishing tbl, we are taking our vision forward and engaging in the 360o nature of our platform. Organized by the tbl team, the CSR Clinic will be an enriching exercise for middle to senior level corporate executives. The goal? To be better equipped with processes and tools to create and implement sustainable practices towards a meaningful difference in the business community. The CSR Clinic will give participants a unique opportunity to interact with professionals and experts in the CSR field and learn cutting-edge models, strategies and practices which they can implement in their organizations. And we promise you'll have a blast too - even if it is a nerdy one!

Here's a sneak-peak into the day-long CSR Clinic's modules: 1. Visioneering based on Understanding: What is CSR? 2. Mapping Away: Who Really Are Your Stakeholders? 3. Who Done It? Case Study Analyses 4. Strategizing Sustainability: CSR Models

The CSR Clinic will be launched in the beginning of April, 2009. For pre-registering yourself or your organization, please send [email protected] a quad-pack of information, including: your name, designation, organization, and complete contact information (email, phone, address, mobile). Latest by February 28, 2009!

Visit www.tbl.com.pk to keep yourself posted.

tbl jan-feb 09 21

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collaboration and sustainability

how collaboration can save the planet - and your business by ramla akhtar for tbl

What's our Problem? By the time this article is being written, it is clear: those who warned against the unsustainability of greed (getting more than one deserves) and fear (contributing less than one's potential) are vindicated. No matter what the consultants advocate, the truth is that the old way of working is over. Now that we have damaged the planet sufficiently, and as a result hurt the population that rests upon it - is it any surprise that neither the planet nor the people can afford the ways profit is made? The lesson is clear: No Planet, No People. No People, No Profit. This is a mantra that needs no other proof than the current state of affairs. No matter the details of the collapse, there is a single concept that sums the situation and its possible remedy: 'Sustainability'. Sustainability: a Simple Definition Everything on this planet is part of a cycle of birth-death-regeneration. There is a water cycle, a carbon cycle, a consumption cycle. Money, too, revolves. It is spentearned-spent. Each cycle has a starting point and that point is 'contribution'. It starts when Entity A chooses to contribute to the 'Whole'/System (Entity B). Then Entity B pays it forward, until the contribution returns to Entity A in a new form. Entity B can be one person, or it can be many. For example, if I work as a guard in a TV channel, I contribute by letting in the right person (who has the potential to

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become a talented actor) through the door and keeping the gatecrashers out. Overtime the actor clears audition and performs in a play. The play is aired and earns the channel its income. I get my salary. This is a cycle - this is 'Wholeness'. It is true for all systems of the entire world; the only difference is the level of complexity. Given that the start of a cycle is at contribution; the life cycle starts at birth, the water cycle at rain, the money cycle initiates at spending, and the cycle of business starts at enterprising talent. But there can be no continued contribution unless there is graceful reception on the other side. So in totality we can see a cycle as 'an act of cooperation, a continued collaboration'. The giver is also a receiver - always. We receive with realization and give with choice. Simply defined: Sustainability is "the act of elements revolving in an effortless cycle." A cycle is a complete loop. The very definition of unsustainability is an incomplete loop - a cycle broken by excess (accumulation) or by withholding (depletion).

The Giant Collapse of 2008 If material stuff is produced, but not recycled back into the system, we will end up with pollution: blocked drains, toxic landfills, and smoke-filled air. If there is money earned such as through big business, but not spent back such as through fair wage, we will end up with vast populations unable to afford business any longer - and at a tipping point, the whole system will suddenly collapse. That tipping point was reached in 2008 - when all unsustainable cycles from the natural to the economic collapsed together. The Solution: Enable Sustainability Through Collaboration When bad times hit, do what the poor do: help one another. Create sustaining relationships, keeping in mind the definition above: sustainability is a cycle when it is in smooth motion. This also means that when it is time for a certain cycle to end, such as in the case of an end to an entire industry, everyone in the cycle can sense the closure at once and get prepared to move on. It is more difficult to move on to bigger and better things when one is either too empowered or too weakened by a dysfunctional cycle. The first one has a vested interest in keeping things as they are, and the second one has no willpower. It is tragicomic that in spite of the 2008 catastrophic wipeouts, most organizations are still pursuing the aim of meeting their old projected profits and other objectives using the same methods that often directly brought about this breakdown.

It is clear by now that the game and the rules have changed. But how do we move on? The real issue at this time may be a sense of insecurity and high uncertainty - the end of greed and the beginning of fear. In my view, this is exactly the current challenge. We are no longer oblivious of the fact that the planet is in peril, and people are severely endangered from our own actions and the backlash of nature. It is also apparent by now that we have at once the responsibility, and (some say perhaps) the power to do something. Interestingly, at this point in human history, we happen to have a technology for every need. We have also tested almost every social, political, and economic system great human minds could envision. In other words, the "hard" and the "soft" elements are present. What, then, do we need? Answer: Collaboration Wikipedia defines collaboration as: "A recursive process where two or more [entities] work together towards an intersection of common goals. For example, an intellectual endeavour that is creative in nature - by sharing knowledge, learning and building consensus." Precisely because we have all the requisite technology and ideology at our disposal, our next task is to put things together in a way that benefits the wholeness of our systems. The systems are already whole (cyclic) by their nature and definition. Our real task is to develop a method that facilitates the motion of cycles. And that method is a value: working together. Collaboration. Collaboration is a means to an end: the end is sustainability enabling the cycle of life. The Principle of Collaboration There are several processes, behaviours and conversations that

relate to collaboration. They are too many to remember intellectually. Another approach is to understand the fundamental principle, and then apply it to individual situations. The basic principle is: Collaboration is to facilitate the motion of a cycle. The two aspects of the cycling principle are: 1. Increase/facilitate flow. 2. Reduce blocks.

2. Work With Who Is One of the anomalies of the workplace is the poor utilization of people's talent - though humans are the fundamental orchestrator of all creativity! Author Etsko Schuitema suggests in his "Care & Growth Model of Leadership" that we only have the license to help someone grow if we care for him or her.

The first aspect is about being creative. The second aspect is about removing obstacles to creativity. Essentially both achieve the same result, but are needed together. In my view, it is the second aspect that is the real need of the time.

If the utilization of a person's energy under our supervision is to help them grow, what precedes this is taking care to get to know the innate potential of that person.

Easy Guidelines For Situational Collaboration It has been assumed for a while now, especially in the business and political world, that relationships can be 'created'. There exist fundamental principles of relation between the large and small, giver and taker, weak and powerful, etc. The task of collaborative practices, then, is to honour that which exists and to orchestrate that to use - not to attempt to forge something beyond the system. Based on this understanding, situational collaboration can be developed. 1. Work With What Is Resource utilization is a critical contemporary issue. Though often we are concerned with "over-utilization," the sustainability principle suggests that in each instance something is over-utilized, there is another thing that is being under-utilized - because it is ignored or sacrificed. The solution is to 'work with what is' - evaluate one's assets, and contribute. Rather than want more resources than are already given, work with what is already given. It is far better to adjust one's ambitions and ideas than to stretch or waste one's resources.

There is an inborn quality in each person. That quality shapes their contribution. It is the task of the system as a whole and a leader in specific to see that quality and cocreate work around it. Schuitema suggests that work is a means to engage the individuals in a relationship. This brings delight back into relationships, even in the work arena. An implied application is to use experiential experts' help. Receive the knowledge that others have to offer. Often we refuse to work with talent that is available, in order to pursue imaginative goals. In Pakistan's context as well as of other developing nations, this non-acceptance of our unique abilities and offerings is leading to the belief that there is a dearth of talent. If that were the case, none of the developing nations would be able to destroy as much as they do, for destruction suggests the presence of energy not utilized. 3. Increase Collaboration, Reduce Competition - Deliberately? Competition has long been a virtue, and it had its rightful place in the evolution of human endeavour as we strove to push the boundaries of our potential and existence. I think there is less blame to be assigned to competition itself - rather the need is to tbl jan-feb 09 25

realize that the time to compete has simply passed. In this age, we must intentionally lower ‘competitive think’, and replace it with ‘collaborative think’. In my work with a beauty products client, for instance, we have chosen to see household based women entrepreneurs as friends and partners rather than as threats to our business. There is an acceptance that there will increasingly be small entrepreneurs who will test their own mettle. Traditionally the Big Business attempts to drown them out. My client took the approach of changing their business model to a modular one that suits the variable nature of workers in the fragmented marketplace for today. The immediate benefit is that energy is now reserved to cocreate joyful solutions, and to do the real task of carrying the product to consumers to enhance their life - rather than being consumed by the anxiety of overcoming beyond control "competition." 4. Minimize Legislation, Maximize Relation Legislation is oft-invisible but often the most powerful of blocks in the way of human endeavour and relationship. The problem is very simple: we have come to believe that legislation exhausts the list of all possibilities. Therefore, there must be a law for every DON'T and a description of every DO. This is a fallacy. Law is a limitation, and its only function is to mark boundaries and offlimit areas in a relationship. The off limits are those where, by definition, the relationship ends if one or all partners venture there. Legislation is not the fullness of a relationship. It is the boundary of a relationship. The best constitutions of the world, therefore, are short or non-existent. A constitution as exacting as that of Pakistan, for instance, anticipates being violated as relationships

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and their needs evolve and as boundaries - which are not fixed are re-marked. Part of this practice in business is to create projects based on mutually 'engaging' rather than 'acceptable' terms. When we engage another on the basis of their fulfillment and joy they would cocreate happily with us, while we can also create a beneficial ethic amongst ourselves, which helps the whole system. The Technology There are two broad types of technology: one is soft (conceptual), the other hard (quasiphysical/physical). The best kind the first technology is described already: it is relationships amongst people, and then people and every living and non-living thing. The best of the second type of technology is the Internet, identified as "the supreme communication network" and the "enabler of people" [the first and the vastly more important element in collaboration] in this Intent and Attention Era. Outcome: Benefits of Collaboration One would like to round off a solid case for collaboration by listing a set of definite outcomes. This, however, is not a great idea because 'definite' also means 'limited' - and limitation is resisted by human nature. Indeed it is a block in the cycle of growth. The truth is that the outcome of collaboration depends upon the clarity of understanding what it truly means to work together, to contribute, and the sincerity and intelligence with which this way is made a practice. Despite this, the very technology of collaboration - such as shared workspaces - immediately yield certain benefits, such as: 1. Reduced Activity Footprint: Using fewer things means lesser

material is being churned out on the planet and there is less pressure on the already exhausted systems. Carbon is a fundamental measure for "activity." Eliminating the non-essential and sharing resources implies reduced activity and therefore reduced carbon footprint. 2. Reduced Cost: Competition is cost. Primarily because it takes attention away from creative opportunities and the right application of one's talent. Often an entity competes with one that is different from it. I have seen media enterprises in Pakistan who ditched their niche to chase the rival's territory (such as entertainment) - and hence led to the decline of both. Competition is a cultural phenomenon that has led to megalomania-driven growth, and decline. Henceforth, our growth should be based on service to the whole system, not competing with elements. 3. Healthy Interdependence: A state where all elements in a cycle support and rely on each other, and are clearly aware that mutual benefit is the real benefit. This is most practical at a local level where community members work with each other and support others' enterprises. It is my belief that the issue that we face is not of meltdowns and painfully wrenched bailouts. It is the issue of bringing values back to the way we work. The values, in turn, are employed so we can experience the joy of being alive. That joy, I believe, is the real aim and must become a part of the world of business - and the business of the world. Collaboration, when practiced faithfully, is that joy in itself. About the Writer Ramla runs a consultancy, "NEXT>", which is geared to design fresh solutions for contemporary opportunities and challenges. She can be reached at [email protected]

report: community impacts

reporting on community impacts report by the GRI, the University of Hong Kong and CSR Asia

O

ver recent decades there has been a growing awareness by business, government and other agencies regarding the impact that business can have on society. Increasingly, companies are stating their commitments to being an agency for positive change for society and for the environment. At the same time there exists a growing emphasis on understanding the impact of business on the environment and on society. More and more companies are frequently facing the question of 'what are your impacts on communities where you operate?' Yet this is also a question which is difficult for most companies to answer. In response to this, the GRI initiated a research project to better understand current practice in reporting in terms of approach, type of information, patterns (in sectors and geographical locations) as well as how this relates to the GRI guidelines. The

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research was carried out by the University of Hong Kong and CSR Asia, together with GRI staff. Sample of Report Considered Seventy-two sustainability reports were randomly selected for this analysis, 58 of which follow the most recent GRI Reporting Framework, the 'G3' and have declared the G3 Application level. The selected reports reflect a diversity of sectors as well as an inclination towards those seen to have a relatively substantial community impact. The regional distribution of the companies is as follows: 1. Europe - 36 2. North America - 14 3. Asia - 13 4. Latin America - 3 5. Oceania - 3 6. Africa - 3 Companies from eight sectors account for over 60 percent of the reports.

Eight major sectors analyzed

How do companies approach reporting on community performance? Overall, companies take a diverse approach to reporting on community performance and show a good degree of individuality in the way they present their community performance and impacts. What information is available within the context of reporting? Companies usually focus on reporting their own performance in relation to community initiatives as opposed to what changes or benefits occur for people and the environment as a result of

“

The underlying question of sustainability reporting is how an organization contributes, or aims to contribute in the future, to the improvement or deterioration of economic, environmental, and social conditions, developments, and trends at the local, regional, or global level.

”

GRI G3 Guidelines in terms of sustainability context.

their activities. Thus, it is often difficult to paint a picture of community impact based on the information in the reports as fewer quantitative indicators are used for reporting on the impact of community initiatives as opposed to performance indicators. The majority of companies emphasize their positive contributions without mentioning any negative impacts. Those who do report their negative impacts mostly focus on environmentrelated problems. Patterns identified in community reporting 69 percent of the companies choose to group community related topics under a dedicated community section in the report. Out of the 50 reports with a dedicated section, almost half of them (24) list these as major headings in the Table of Contents.

Proportion of reports with dedicated section for community impacts (N=72)

Total Community Expenditure Philanthropy and Charitable Giving Re-settlement Infrastructure for Local Community

Information on the topic Community Engagement and Dialogue, is often reported in another section dedicated to stakeholder dialogue. It is noted that there are 32 companies reporting on this topic, but less than half of them (23 percent) used quantitative measures to report their performance and impact in relation to this issue. How do these approaches and information relate to the GRI Guidelines? It appears that a majority of reporters claim they are reporting in accordance with the GRI G3 Guidelines and Indicator Protocols on community. However, on closer inspection it appears that this is not the case. While 37 out of 53 G3 Reports (64 percent) claim that they report on performance related to the society indicator SO1, only 11 percent of the 37 reports reported fully according to the associated indicator protocol. Most reports are relatively weak in fulfilling the requirements as stated in the GRI management approach for community issues. What is clear is that companies find it difficult to report on their impacts and there is a need for

For those dedicated sections which are not major headings, they are usually located under the 'social' section of the reports. In community reporting, the following topics are mostly reported under the community sections: Social Inclusion and Aid to Disadvantaged or Minority Groups Community Services and Employee Volunteering Culture and Leisure Education and Training

Topics reported under a dedicated section (in percentages)

tbl jan-feb 09 29

them to measure, in a more systematic manner, the differences they make as a result of their corporate community investment strategies. There is a need to use tools and techniques that are able to track (monitor) impacts over time.

The top 3 performance indicators for each of the top 5 topics Five most frequently addressed topics

Top 5 Reported Community Impacts The most frequent topics addressed are Education and Training and Philanthropy and Charitable Giving in 63 percent of the reports, followed by Community Services and Employee Volunteering, Total Community Expenditure and Community Engagement and Dialogue. Information on environmental topics such as Community Environmental Impact due to Operation and Community Environmental Campaign/ Problem Solving only appeared in 35 and 32 percent of the reports respectively. Indicators used for reporting performance and impact Companies often report on indicators which are easier to measure (performance indicators) but not necessarily on indicators which are most meaningful in terms of understanding community impact in terms of changes in external conditions. Although indicators for Education and Training fare better by considering the number of people who benefit and are reached, it also weighs heavy with indicators

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such as the amount of money invested in and donated to educational activities.

of a companies impact on the community and employee retention.

At the level of impact, indicators such as changes in performance as well as the possibility of placement post intervention are used by only a few companies. As one would expect, indicators for Philanthropy and Charitable Giving focus on the inputs as opposed to the outputs or outcomes.

Reports usually appear to concentrate on reporting what the company has done in relation to community initiatives (that is, performance), rather than what changes, benefits or damage the community initiatives brought to the community (that is, impact).

Among companies having reported on this topic, only 11 percent have attempted to show the impact of such activities by reporting their activities at the community level and the impact achieved through this initiative. Similarly, for Employee Volunteering, the focus appears to be on counting the number of organizations served, and the participation of employees as opposed to measuring the effect of this involvement for communities. It could be argued that many companies look at their employee volunteering programmes in terms of the benefits they have for their employees given the strong ties between employee perception

Information Reported: Positive and negative impact Among 72 reports, the majority of companies only emphasize their positive contributions without mentioning any negative implications or negative impact. For those who report on negative impact, most of them focus on environment-related problems, which relate to GRI environmental indicators. However, out of the 23 reports that have reported on community environmental impact, only 4 of them relate environmental impacts to the community, while the rest (19) report on site-specific environmental impact but not necessarily relate these to the community. Differences in reporting on various topics among regions North American and Asian com-

panies tend to report on Education and Training, Philanthropy and Charitable Giving and Community Services and Employee Volunteering much more often than European companies. The difference is especially obvious for Community Services and Employee Volunteering. Reporting on Partnerships with Local Organizations is particularly popular among North American companies in comparison to other regions. The occurrence of reporting on Community Engagement and Dialogue and Community Environmental Impact due to Operations is especially low amongst Asian reporters. This is in contrast with their North American counterparts. The percentage of reports which address Direct Economic Impacts on communities is relatively higher for European companies. Key Findings The majority of the companies do not apply the same sort of measurement rigour to the management of work related to their relationships with community as they would to other aspects of their business. While there are exceptions to the rule, community impacts appear to be something not many companies are able to clearly define or report on. It is clear that companies approach their community reporting in different ways. Information contained within the reports focused much more on what companies were doing (performance) rather than what changes, damages or benefits impacted communities. The only reference to companies' potential negative impact was in relation to environmental issues. Within the topics most frequently found in community-

Percentage of reports in different regions reporting on various topics

related sections of reports, there is only a limited attempt to look at impact with the majority of information dressing the companies own performance and inputs. 50 percent of companies reporting on the top five topics do not indicate approaches, policies, aims or reasons behind activities. Is it that companies do not see reporting on changes at the community level as an important part of their sustainability report or is it a matter of building the capacity in order to do this effectively? Is the relationship between business and the community simply just about the ‘feel good factor’? This research appears to suggest this. What is clear is that measuring a company's impact on communities is not an easy task. Companies tend to report on what might be 'easier' to report on but not necessarily what matters. Companies find it very difficult to measure their impacts. It is relatively easy to report on inputs and performance but much more difficult to assess the difference that community investments make. Companies would benefit from a more sys-

tematic approach to assessing the impacts of their community investments through tools aimed at measuring the differences that occur (positive and negative) over time.

Note This report has been tailored for tbl with permission from the Global Reporting Initiative.

In times of recession there are massive opportunities and fortunes to be made, so for new up and coming entrepreneurs, this is the time to go and start a business.

“

”

- Richard Branson, Founder of The Virgin Group World Economic Forum, Davos

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private sector: liberalizing off the hook

public-private partnership: transition to greater economic freedom by ali salman for tbl

A

general premise of economic freedom rests on the minimum role of the government in service provisioning. However there are services, or economic limitations of some recipients of these services, which make it difficult for the government to completely roll back from direct provisioning. This situation also arises where the private sector sees little economic incentives or experiences insurmountable regulatory restrictions. To counter these problems, a combination of public and private sector is used, commonly known as PublicPrivate Partnership (PPP). As such, an increase in the PPP based contracts or investments in PPP based contracts, reflects a greater level of economic freedom as these contracts increase the role of the private sector in traditionally public sector dominated areas.

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The Government of Pakistan issued a comprehensive policy document on PPP titled ‘Private Participation in Providing More and Better Public Services through Improved Infrastructure’ in 2007. It stipulates objectives, implementation structure, viability gap funding, and project life cycle with respect to PPP contracts. This document states that "many economically and socially worth projects lack the ability to raise the requisite revenues to ensure adequate returns for the investor risk." The policy document further mentions the need of long gestation periods to ensure affordable tariff levels thus exposing the private sector to undue risk. According to the policy, "PPPs with appropriate arrangements in the sharing of risks in financing,

operating and maintaining infrastructure services are a solution." The national policy document also mentions following priority areas for PPP contracts: 1. Transport and logistics. 2. Mass urban public transport. 3. Municipal services (water supply and sanitation, lowcost housing and education and health facilities). 4. Small scale energy projects . The federal government has already set up the Infrastructure Project Development Facility (IPDF) under the Ministry of Finance and proposed to make an Infrastructure Project Financing Fund. The IPDF has currently 12 projects, which are worth more than USD 2.8 billion, whereas additionally 23 projects have been identified. An official presentation

As governments turn to the private sector to provide services once delivered by the public sector, they must learn new skills. An increasingly common way is publicprivate partnerships units. Making the right choices on what roles such units play, where they are located, and how conflicts of interest are managed is critical in their success, states the International Finance Corporation. notes: "There is a wide diversity in terms of how these projects spread across the four provinces." A sectoral breakdown of this investment is shown below:

ects titled 'National Corridor' which cut across provincial boundaries and therefore cannot be attributed to provincial domain. Province

Fund Size (USD)

Donor

Timeline

Balochistan

205 million

ADB

2006-09

NWFP

Not Available

ADB

Punjab

200 million

ADB, DFID

2005-08

Sindh

220 million

ADB

2003-06

A province-wise breakdown of Devolved Social Services Programme

Devolved Social Services Programme At provincial level, the most prominent examples of PPP framework are Devolved Social Services Programmes (DSSPs) administered by each provincial government independently with the donors' support. These programmes make up for capacity constraints of the local government to deliver efficient services and they also capitalize upon the user fee component, thus attracting the private firms. The overall goal of the DSSP is to improve people's education and health, thereby helping to reduce poverty and gender imbalances.

Provincial Distribution of PPP Investments A tentative geographical distribution (based on a telephonic interview with concerned official) of PPP based investments shows that out of 12 pipeline projects, 3 are based in Islamabad, 4 in Sindh, 2 in Punjab, 1 in Frontier while none are based in Balochistan. There are two proj-

linkages, and public accountability, (iv) rationalize services and set minimum standards, and (v) encourage public-private partnership.

The broad purpose is to increase school enrolment, and coverage with health and clean water and sanitation services. These objectives are to be primarily achieved by improving governance and financing of social services; that should result in increased access to basic social services, in particular for women; and improved quality, efficiency, affordability and sustainability of services. The programme has 5 principal policy outcomes, namely, to (i) further administrative devolution of social services, (ii) improve social sector financing and flow of funds, (iii) promote participation,

A Demonstration of PublicPrivate Partnership Primarily due to its objectives, the DSSP in all provinces has attracted social sector players, that is, NGOs, though the terms of reference to contract a deal with DSSP does not bar for-profit firms. The NGOs have played a positive role in improving service quality at numerous schools across the country but obviously they lack the scale, which a commercial enterprise brings with it. Public-Private Partnership represents a transition from an omnipresent government to a completely free private sector. It appears that if roles are properly defined, this may well lead to an efficient service provisioning based on the principle of financial viability, rational price structure and user-friendliness. The private sector must jump on these opportunities and enter this largely untapped, though admittedly rough, terrain.

About the Writer Ali Salman currently works as a senior partner at Development Pool and teaches Economics. Ali specializes in economic analysis, entrepreneurship, policy formulation and business models. Ali did his Masters in Economics from Boston University as a Fulbright Scholar; MA in Development Studies as Royal Netherlands Fellow; and an MBA from Quaid-i-Azam University, Islamabad.

tbl jan-feb 09 33

csr guidelines

a way forward

the commonwealth business council guidelines for corporate citizenship by arif zaman for tbl

B

usiness in the Commonwealth has become increasingly aware of its role in helping to make globalisation work in a way that combines economic advance with social development. Indeed, many Commonwealth companies are leading the way by demonstrating good corporate citizenship in action, "living out" the business principles that they have established and articulated in different ways. The Commonwealth Business Council (CBC) Business Principles - developed out of CBC member companies collaborating to pool their experience and perspectives - consist of core values, responsibilities to stakeholders and a set of principles for how a company conducts its affairs. All companies and entities - no matter their size are expected to adhere to these business principles. The principles apply not just to private sector entities but are relevant also to public bodies and in the voluntary sector. The CBC Business Principles are established under three headings: core values; responsibilities to stakeholders; and principles.

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The CBC Guidelines for Corporate Citizenship provide guidelines of good corporate citizenship derived from CBC corporate members in Asia and beyond. They are a useful template for an international approach to CSR which has relevance and rigour in an Asian context and have emerged out of the characteristic Commonwealth consensus approach. 1. Values The company will be guided by values and work towards reflecting them in its business operations: Core Values - having clear values and a Code of Ethics such as honesty, integrity, fairness and openness, clearly stated and followed in practice; Transparency - being actively open in structure, process and disclosure; establishing and maintaining communication with key stakeholders; Tackling Corruption - adopting agreed codes, being persistent in enforcing them internally and in external dealings; and Human Rights - recognising

the implications for the business of a respect for human rights; having a policy and acting on it. 2. Corporate Governance The company will manage its business with strong and effective corporate governance implemented by the board according to the following principles: Compliance - ensuring that the corporation complies with all relevant laws, regulations, and corporate commitments; Profitability - ensuring that the company is profitable and provides a reasonable return on the assets it employs; Leadership - exercising leadership, enterprise, integrity and judgement in directing the corporation so as to achieve continuing prosperity for the corporation and acting in a manner based on transparency, accountability and responsibility; Accountability and Responsibility - recognising and differentiating accountability linkages (to shareholders and statutes) and responsibility linkages (to other stakeholders); establishing

reporting mechanisms to support these linkages; Board Qualifications - ensuring that through a managed and effective process, board appointments are made that provide a mix of directors, each of whom is able to add value; Checks and Balances ensuring that no one person or block of persons has unfettered power and that there is an appropriate balance of power and authority on the board which is, inter alia, usually reflected by separating the roles of chief executive officer and chairman, or by having a balance between executive and non-executive directors; Management - appointing the chief executive officer and at least participating in the appointment of senior management, ensuring the motivation and protection of intellectual capital intrinsic to the corporation, ensuring that there is adequate training in the corporation for management and employees, and a succession plan for senior management; Strategy - determining the corporation's purpose, values and strategy, and implementing its values in order to ensure that it survives and thrives, and ensuring that procedures and practices are in place that protect the corporation's assets and reputation; Monitoring - monitoring and evaluating the implementation of strategies, policies, management performance criteria, and business plans; Evaluation - regularly reviewing processes and procedures to ensure the effectiveness of its internal systems of control, so that its decision-making capability and the accuracy of its reporting and financial results are maintained at a high level at

all times; regularly assessing its performance and effectiveness as a whole, and that of the individual directors, including the chief executive officer; Risk Management - identifying key business risk areas including technology and performance indicators of the business enterprise and monitoring these factors; and Disclosure - proving shareholders and markets with necessary and timely information material to the company's performance and risks. 3. Relationships The company will seek to develop and maintain strong relationships with its stakeholders and communicate effectively with them: Customers - recognising the primacy of customers to business success; ensuring that product safety, effectiveness and value are maximised; Shareholders - recognising shareholders as the primary stakeholder with a need for a good return on investment and growth in the medium term; understanding particularly the position of those with smaller shareholdings; Employees - respecting employees; treating them fairly and with cultural sensitivity; enabling them to develop their potential through skill and technology transfer; recognising employees' contribution to company success; recognising international agreements on the right to freedom of association and collective bargaining; eliminating all forms of forced labour; dealing with the problem of child labour; Suppliers - conducting relationships fairly; disseminating information on corporate citizenship to them; assisting them to achieve continued improvement against agreed codes of practice in areas such as health and safety,

human rights in the workplace; sharing knowledge, technology and ideas; Local Communities - engaging in dialogue with relevant community representative organisations and seeking to contribute to long-term development; Government - engaging in open and constructive dialogue to improve the policy and practice environment for business and to assist government to foster corporate citizenship in the business community; and Civil Society - engaging with civil society organisations on a basis of respect, and within a framework in which both sides are committed to be open, transparent and accountable with respect to their financial and public support base. 4. Impact The company will assess and seek to minimise any potential adverse impacts on the environment and local communities: Environment - practicing and encouraging environmental responsibility and minimising environmental footprint; Consumer Awareness and Product Impact - raising awareness of consumers regarding contents, safe use, and disposal of products; Building Capacity - working to build capacity in dealings with host, local, and national communities; and Impact on Other Species recognising and limiting negative impacts on other species.

About the Writer Arif Zaman is Adviser, Commonwealth Business Council (CBC), and also serves as Principal Consultant at the Reputation Institute and Visiting Tutor at the Henley Business School.

tbl jan-feb 09 35

what's happening

Prevention & Elimination of bonded labour: Seminar

T

here are 20 million bonded labourers in Pakistan out of which 7.5 million are children. The main reasons why bonded labour exists in Pakistan include: social exclusion, poverty, lack of education, existence of feudal or other hierarchically structured agricultural systems, lack of political will for effective social change, ineffective enforcement of policies, and perhaps most disturbingly, the desire for and liberal use of cheap labour, states Mr. Rana Asif Habib, President, Initiator Human Development Foundation. The 5th National Seminar on Prevention and Elimination of bonded labour in Pakistan highlighted key issues about bonded labour in Pakistan: Stakeholders need to be aware of the seriousness of this issue, the relevant laws and legislations and its impact on them. The Vigilance Committees are not performing well and need significant improvement. They must actively perform their roles and should be required to make proper checks and balances on those practicing potentially bonded labour. A representative from the Directorate of Labour,

Government of Sindh said that the Government is taking this matter seriously, on a priority basis and has formed a special ministry in the province of Sindh on this issue. There is a need to address the matter of rehabilitation of bonded labourers and engagement of bonded labourers in other jobs to prevent them from being considered unskilled labour and returning to work similar to that which they were released from. The media must also play an active role in creating awareness of bonded labour-related issue including how civil society can play an active part in its elimination. The focus must include street children as well who are also a part of the bonded labour and are in the worst conditions of life. Held under the EFP/ILO sponsored PEBLIP project in December, 2008, Karachi, the active audience shared recommendations regarding challenges and strategies for fair labour practices. Including the pressing need to understand and implement the complete guidance manual that can be found in Pakistan's Islamic heritage. In order to have a direct impact on the general public, it is important to sensitize political leadership, including Ulemas on the issue of bonded labour to create awareness, said Mr. Saifullah Chaudhry, from the International Labour Organization (ILO).

Now there is a pressing need for employers and employees to make joint efforts to address this issue. This was not possible a few decades ago. It is mostly due to the efforts of Pakistan Workers' Federation that currently there is very little bonded labour in the Industrial Sector, claimed Mr. Mohammad Ahmed, Chairman of Pakistan Workers' Federation. Mr. Fasihul Karim Siddiqui, Convener of the Bonded Labour Project, emphasized that in their HR manuals, HR Managers must include specific corporate policies against the use of bonded and child labour. Mr. S. Sohail Sajjad, Project Assistant for Prevention & Elimination of bonded labour in Pakistan added that we are living in this age of so-called 'Enlightened Moderate Civilization'. If we do not eliminate the regressive phenomenon of bonded labour, we can consider ourselves living in the 'Dark Ages'.

National Industrial Relations Conference

L

ocal entrepreneurs and industrialists can increase their productivity by 50 percent if they employ the right person for the right job, Dr. Ishrat Hussain, Former Governor State Bank of Pakistan & Director IBA said at the National Industrial Relations Conference. Pakistan has great potential and its businessmen and industrialists have the ability to do the best by running their businesses in a truly professional manner. Human Resource Management (HRM) must be strongly developed in all

36 www.tbl.com.pk

sectors. And proper employee-job fit evaluations must be conducted, as is often the case with multinational companies. The Prime Minister in his first address to the National Assembly stated that all labour laws of the country will be made in conformity with the International Labour Conventions, stated Mr. Malik Asif Hayat, Federal Secretary Labour and Manpower. Furthermore, the Government has developed a strategy for the revival of the economy, with the objective to generate economic activity in the country to help uplift economic conditions of workers. A harmonious professional relationship between the workers and employers is essential for promoting productivity, competition and growth in industry as well as for working towards fair wages and job security. The International Labour Organization (ILO) reinforced the importance of dialogue between the government, employers and workers' organizations. This is instrumental to fostering social and economic progress in the country and to promoting social justice and welfare. Employers' and workers' representatives can also play a crucial role in guiding labour related policies and programmes, said Mr. Donglin Li, Country Director, ILO. In Pakistan, ILO has been implementing its Decent Work Country Programme in close collaboration with its tripartite constituents. Currently, there are 100 staff members working with ILO offices. There are 15 ongoing projects with a combined budget of $ 33 million. Organized by Employers' Federation of Pakistan (EFP) and ILO on January 14, 2009, Karachi, the Conference also distributed Industrial Relations Awards.

Corporate Summit on Climate Change

L

EAD Pakistan is organizing - for the first time in Pakistan - a Corporate Summit on Climate Change on February 19, 2009 in Karachi, Pakistan. The Corporate Summit will be an exclusive event aimed at increasing the involvement of corporations in Pakistan on the crucial issue of climate change and will provide a unique opportunity to discuss climate change concerns by providing a common platform to share knowledge, experiences, and best practices. The Summit will bring together corporate leaders who are concerned about climate change and its impacts. This includes CEO's of corporations, managing directors and general managers, corporate social responsibility specialists, climate change specialists etc. The speakers at the summit include Dr. Adil Najam (professor, Boston University, USA) and Dr. Harish Jeswani (Manchester University, UK) to name a few. The summit programming will consist of presentations on climate change and corporations in Pakistan, case study presentations by selected corporations to share their work on climate change, sessions on Energy, Water, Disasters, Health, Forestry, Agriculture and Natural Resource management, Gala dinner and lots more. Attendees will gain valuable insight on strategies and practices adopted by corporations around the world and ways by which both business and climate change objectives can be achieved. There will be significant networking opportunity enabling one-to-one interactions for informal partnerships and knowledge sharing.

Every session will have an extended Q&A session that will allow participants to effectively engage with climate change experts. For more information about Corporate Summit on Climate Change, visit: http://www.lead.org.pk/cscc/

Compiled by Rutaba Ahmed

“

Not long ago the concerns of ecologists were as irrelevant to business planners as those of ethicists are today. "Green" has gone from being a disparagement to becoming a badge that no smart company would risk being without. Ethics are similarly en route to becoming a strategic imperative. - John Dalla Costa, Ethical Imperative

”

“

The best chapters in our economic history are those that embrace the many, not the few.

”

- David Cameron, British Conservative Party Leader World Economic Forum, Davos

tbl jan-feb 09 37

CSR Reflections on Davos Davos Day 1 (January 28, 2009) It's fair to say that if you're prone to depression, Davos is not a good place to be this year. Not only is the economic outlook gloomier than ever, but it is also snowing heavily "thus forcing everybody to dress in silly boots and bear-like coats that automatically strip even 'masters of the universe' of a bit of their dignity", as BBC Radio 4 Today programme presenter Evan Davis noted. So what have we learned so far? Here are 5 points to note: 1. Growth The IMF is expecting the global growth rate for 2009 to fall to 0.5 percent, meaning growth per capita will be negative. The issue of resilience is key. For example, Rahul Bajaj, chairman of Indian car manufacturer Bajaj Auto, says India's domestic demand has made it more resilient than many countries. Should this be part of nations' responsible competitiveness strategies in future? 2. Jobs The ILO says as many as 51 million jobs worldwide could be lost this year, pushing the world's unemployment rate to 7.1 percent by the end of 2009, compared with 6.0 percent in 2008. Could it be that the biggest CSR issue in 2009 will be around job retention and responsible approaches to redundancy? 3. Speculation Stephen Schwarzman, chairman of the leading private equity company, the Blackstone Group, says that 40 percent of the world's wealth was destroyed in last five quarters. "It is an almost incomprehensible number," he says. "Business will be very different." 38 www.tbl.com.pk

Overview of the session 'Lessons from the Financial Crisis - Time for a New Rule Book?' at the Annual Meeting 2009 of the World Economic Forum in Davos, Switzerland.

4. Trust Companies are viewed as less trustworthy than a year ago and consumers want governments to play a greater role in business, according to a poll by Edelman. "Business really has to work its way back. It has to re-earn the trust of its broad sets of constituents," says CEO Richard Edelman. "I think we have moved from a shareholder society to a stakeholder society, and that has massive implications." 5. Charity South African Finance Minister Trevor Manuel notes that overseas development aid to Africa is suffering: "Already, we are some $240bn (£167bn) short of the commitments made at [the 2005 G8 summit in] Gleneagles." Surely, we can expect corporate philanthropy to suffer in equal measure? I think WEF founder, Klaus Schwab, best sums up the challenge we face: "We have now a mass crash and we have to figure out first how we help those injured by it. Secondly, we have to find out what rules we need for the future in order to avoid this happening again." Finally, former UN SecretaryGeneral, Kofi Annan, continues to be the conscience of the world, when he says: "We need to ensure the poorest in the planet - who will be hardest hit by the financial crisis - are not forgotten."

Davos Day 2 (January 30, 2009) A year after Bill Gates famously called for a new model of "creative capitalism" at Davos, it seems that business (especially the banks) took him a bit too literally. Of course, Gates didn't mean creative loans and hedge fund activities, but his speech stands in stark contrast to this year's "crisis capitalism" mood. Despite Tony Blair's reassurances that "the free enterprise system has not failed, the financial system has failed", the most consistent refrain echoing through the chilly corridors of the World Economic Forum on Day 2 was that capitalism needs bringing back into line. The adolescent years of free market rebels without a cause are over. On Day 1, all eyes seemed to be on the bankers. On Day 2, the stakes were raised and the US was in the spotlight. A number of delegates were talking about the failure of US-led capitalism and even Bill Clinton was nodding. When asked about Wen Jiabao's thinly veiled criticism of America over the crisis, he said: "The Chinese premier was right: It all started in the United States." Somewhat incongruously, Valerie Jarrett, speaking as President Obama's representative in Davos, told delegates that his message can be conveyed in one word: "responsibility". That's encouraging but not terribly helpful. What

does it mean? Maybe the test will literally be "the ability to respond" by policians and CEOs. Too little too late some say, but watch this space. One place to start, according to a WEF report is clean energy investment, which they claim needs to more than triple to $515bn (£360bn) a year to stop greenhouse gas emissions reaching levels deemed unsustainable by scientists. At a corporate level, at least one good news story of response-ability emerged. US firm Tupperware Brands Corp said it is unlikely to lay off staff or cut costs. Chief executive Rick Goings admonished that "the last thing to cut is your talent." Let's hope other CEOs are listening, although I seriously doubt it. The annual Philanthropic Lunch, with its predictable crowd of Billspotters (including the Gates and Clinton varieties), seems to me a bit like a doing a band-aid dance at a chainsaw massacre party. At least it produced a pearl from Gates - philanthropy is fun and fulfilling! Well, if anyone would know, its the world's biggest philanthropist ever, right? Then again, wouldn't it be better to improve capitalism as a system, so that we don't need to rely so much on uber-philanthropists' need for a warm-fuzzy endorphine fix? Why don't we give responsible capitalism a try first, and then we can talk about something a bit more creative after that? How about it - do we have a deal, Bill?

Davos Day 3 The Conservative party leader, David Cameron, revived yesterday's "quest for a new capitalism" theme, calling for "capitalism with a conscience". Cameron urged businesses not to ignore the interests of society in the pursuit of profits, saying it's time for wealth

“

We need to ensure the poorest in the planet who will be hardest hit by the financial crisis are not forgotten.

”

- Kofi Annan Former UN Secretary-General

to be distributed "more equally". Most of the talk and twitter on Day 3 was about protectionism dire warnings that this is precisely what led to the Great Depression in the 1930s and tut-tutting by German Chancellor Merkel about America's auto-industry bale-out, which is Protectionism with a big P protectionism of the $25 billion variety. They may be right, but this is a bit of a tough sell on a world still fighting the runaway fires of neoliberal capitalism. What's more, it is precisely managed protectionism that has helped sustain China's rise to prosperity, while neither America nor Europe has been prepared to forfeit their perverse agricultural or fossil fuel subsidies. But before I head off on a tangent...the day was not totally devoid of CSR-related themes. Al Gore was seen looking much cheerier than usual, assuring us that Obama's commitment to a post-Kyoto deal on climate change is real. Let's hope Obama gets further with his good intentions than Gore did during his term as Vice President. Denmark's Prime Minister, Anders Fogh Rasmussen, politely asked rich and poor countries alike to commit to big cuts in greenhouse gas emissions, ahead

of year-end talks on a new climate treaty that he will host in Copenhagen. Ironically, the worldwide economic collapse may be good news for the climate, at least in the short term. Remember how Russia's emissions went into freefall along with their economy in the early 1990s? The messages out of Africa were sadly familiar, but no less true: Kenyan Prime Minister Raila Odinga criticised Zimabwe's Robert Mugabe for allowing 3,000 people to die of cholera and African leaders for not taking a unified stand against him. He admitted that corruption on the continent must be reigned in, but so too must Western companies exploiting Africa's resources. Amazingly, there were still a few brave, intrepid banking honchos pleading the financial industry's case. HSBC chairman Stephen Green said that banks must not be "demonized" over the financial crisis. "Banks have clearly done things wrong. Some of the practices did not contribute, by any reasonable standards, to human welfare." Thanks for the apology, Steve, but you won't get off the naughtystep that easily! Besides, if I'm not wrong, most of your mates are now working for the politicians. So we'll let you know how we feel about the banks - demonic or otherwise - when next we place our democratic votes. Which makes me wonder ... could we be witnessing a shift from CSR to CNR - from corporate social responsibility to corporate national responsibility? About the Writer Wayne Visser is Founder and CEO of CSR International (www.csrinternational.org). In addition, he is Internal Examiner at the University of Cambridge Programme for Industry, where he previously held positions as Research Director and External Examiner.

tbl jan-feb 09 39

triple bottom-line reporting

beyond accounting assessing the impact of sustainability reporting on tomorrow's business by tony manwaring & richard spencer

“

Business has an extraordinary capacity to deliver

practical solutions. Tomorrow's Global Company: Challenges and Choices argues that future commercial success must go hand in hand with tackling our shared challenges, such as environmental degradation, poverty and abuse of human rights.

”

Tony Manwaring Chief Executive, Tomorrow's Company

W

e manage what we measure (and report) - it's a truism, but no less valid for that. We believe that the time is now right to ask whether we have been measuring the right things in the right way and communicating them appropriately to the right people. As we face profound challenges for people, profit and planet alike, our need for an effective and 'fit for purpose' compass to plot a sustainable and successful course for the future has never been more urgent or important. By far the most currently developed approaches to reflecting the triple bottom line (economic, social, and environmental) are the many frameworks and guidelines that companies use to report on their sustainability activities. For example, the Global Reporting Initiative, the UN Global Compact, and AccountAbility. Such frameworks enable benchmarking and can build understanding. Often this process is initially undertaken internally and later applied to external reporting. However, it is intended to create a platform for dialogue with stakeholders, and then seeks to influence behaviours and decisions for mutual benefit.

40 www.tbl.com.pk

The Institute of Chartered Accountants in England and Wales (ICAEW) and Tomorrow's Company have launched a project on the review of sustainability reporting frameworks and guidelines. These 'frameworks' provide what is currently the most developed approach for companies to reflect what are commonly described as the non-financial impacts of business. However, these impacts often have significant costs as well as benefits. Taking them into account in mainstream business and investment decision-making is, therefore, central to our shared interest in exploring how best to 'redefine success'. This review of sustainability reporting frameworks and guidance is set in the context of the major programme of collaboration that ICAEW and Tomorrow's Company have jointly undertaken working with many others, including Pavan Sukhdev and his colleagues from the Green Indian States Trust (GIST), TEEB (The Economics of Ecosystems and Biodiversity), and the UNEP Green Economy Initiative - to explore how businesses can most effectively measure and communicate their impact on society and the environment. Society is increasingly demanding that businesses take account of their impacts but also recognises that they have a strong positive role to play as well. Business, society and the environment are inextricably linked and inter-dependent for their survival and must be held in balance. Equally, as we see the first shoots of the new Green Economy bursting through - given renewed impetus by the election of a US President committed to the sustainability agenda - we see challenges as well as extraordinary opportunities opening up to create value through sustainability. Yet, at this time of financial instability it would be very disappointing to see companies draw back from confronting the challenges of sustainability and from what has already been achieved. The combined pressures of recession and growing population means that businesses have not only to think of making their operations more efficient (that is, cost cutting and carrying out their core business more effectively) but also to consider what sustainability means for their business strategy. In this regard, Graham Hubbard, Professor of Strategic Management, University of Adelaide, Australia has written a paper 'Beyond Accounting assessing the impact of sustainability reporting on tomorrow's business'. While many frameworks have been developed for sustainability reporting, few have received much general traction. Limited light has actually been cast on organizational

performance by sustainability reporting to date and so far it is unclear what impact it has actually had on organization strategies, practices and outcomes. Many questions exist. What should a 'responsible' organization be expected to do (and not do)? What is 'sustainable' organization practice? Which measures should organizations really be worried about? Is the GRI framework a desirable global standard? Which organizations are performing well in nonfinancial areas? Can we trust what organizations say about their performance?" states Graham in his paper. Graham's Paper provides a background to the current state of sustainability reporting. It briefly covers the development of sustainability reporting. It considers approaches to sustainability reporting and the models of reporting that have emerged. Graham’s paper also considers general issues which arise from the measurement problems in the field. Finally, it proposes plans for research which is proposed to address these issues.

Note This note has been tailored for tbl with permission from the authors Mr. Tony Manwaring, Chief Executive, Tomorrow's Company and Mr. Richard Spencer, Manager Corporate Responsibility, ICAEW. To read the complete paper by Mr. Graham Hubbard, visit: For further information on this joint project, visit www.forceforgood.com and www.tomorrowscompany.com

“

Corporate social responsibility is not just about managing, reducing and avoiding risk, it is about creating opportunities, generating improved performance, making money and leaving the risks far behind.

”

Sunil Misser, Head of Global Sustainability Practice, PwC

tbl jan-feb 09 41

crossword

CROSSWORD Across 1. Partnering with others for vested interests 5. Theme of 2008's last issue 6. tbl is not a magazine, but a ________ 7. The friendliest bottom-line has to do with ________ 9. As opposed to cacophonic collaboration 11. 'The next green' (model from tbl issue 2's toolkit) 13. The kind of CSR that is not like likely to survive crises 16. The fourth 'p' in public private partnerships (from tbl's first-ever interview) 19. _______ in crime 20. A merging of efforts or interests by persons Down 2. Without a view grounded in this, there ain't no CSR, baby 3. Of coffee, of chocolate, of CSR 4. The number of provinces Pakistan has, multiplied by the number of bottom-lines tbl has 8. The bottom-line that is best for the air we breathe 10. The capital of Pakistan 12. tbl's last survey report explored this HR issue 14. We save some, we spend some - the bottom, bottom-line 15. The kind of energy cross-company CSR builds 17. _______ republic of Pakistan 18. Something that shatters the status quo, with critical negative change

tbl Issue 6 Crossword Hints Across 1. What it's all about! At least in the world of tbl 2. If I was as strong as your ability to account, your organization would exist at a higher plane altogether 4. This tbl issue's current thematic focus! 6. Not the indecent kind. Just so public knows what you've been up to in areas that do happen to concern them 8. Do we really need all that talking? 11. An official raid on your company's existence 13. The skewed concept that ever-expanding consumption of material goods is advantageous to - anything at all under the sun? 15. A system of values we all like to think we live by 16. Not the kind from a fresh green apple, but the one the world's in right now 17. Without these, how would we know we had quantifiable success?

Think you got it? Tell us at [email protected] and see what surprises we have in store for you!

42 www.tbl.com.pk

Down 1. Think of them as one among a group of many stakeholders, but those that happen to hold the strings to some of your purses 3. The spirit of which is what keeps all economies fuelled 5. More with less (this was part of tbl's third issue's title) 7. This sometimes translates into unbridled profiteering, if there isn't a robust governance mechanism in place 9. If you take me literally, your attire might be rather objectionable but without me, governance doesn't mean anything to the public 10. If you're on the cutting edge, you're bound to have some up your sleeve 12. By the bureaucracy, for the common people 14. One who muses in tbl

on the lighter side

The Eco-friendly Family

A

n eco-friendly family have reduced their household waste so much they have only filled one bin - in six months. The Strauss throw away an average of just 100g of litter every week - enough to fit in the palm of a hand. They do not buy anything with packaging, recycle everything they can, compost all their leftover food, and buy vegetables direct from local farmers. The family even take their own containers to their butcher to collect meat so they do not use any packaging or plastic. Even over Christmas - when the average family threw out an extra five bags of rubbish - the Strauss family threw away just 78g of litter. They saved their wrapping paper from previous years, took their Christmas cards to recycling plants and made 'zero-waste' crackers out of loo roll tubes, according to news story published on Mail Online in January 2009. Rachelle and husband Richard, who have a seven-year-old daughter Verona, started recycling last March by cutting back on their use of plastic. Rachelle has now set herself the target of throwing out just ONE binful of rubbish in the whole of 2009. Richard added: "When we started this I pledged not to take another plastic bag from a supermarket and I haven't. We just try to buy food packaged with recyclable or reusable materials. We're planning to go a full year creating the minimum amount of waste and hopefully this will amount to no more than one bin."

Hybrid Buses Only Please

G

oing green was a cause she could really sink her teeth into. The New York

Daily News, in its Crime section, reports the story of a woman, Shelia Bolar, 49, who apparently bit the driver of the bus she was riding on because she was upset. Why was she so mad? Because the bus wasn't a hybrid! "She came on the bus, and she said she waited more than an hour for a hybrid," said MTA driver Peter Williams, 42. "I said, 'I'm not in control of what bus is assigned to me.'" From this we can conclude that she only rides in hybrid buses, and when none showed up she got frustrated. Once inside the bus, she started hollering at the driver and when she was done ranting she bit him through "a jacket, a sweater and a thick shirt, causing a bruise and swelling but not breaking skin." Bolar now faces assault charges and will undergo a psychiatric evaluation. The moral of this story? Crazy in the name of any cause, even green, is still crazy. If you want to ride only in hybrid buses, that's fine (though kind of pointless since all the buses keep driving around whether you are inside them or not), but please don't bite anyone!

First Cloned Dog Raises Issues of Ethics, Science

A

n American couple were so distraught at the prospect of losing their pet Labrador that they decided to pay £100,000 to clone him. Edgar and Nina Otto decided to have DNA samples of their pooch Sir Lancelot frozen six years ago, after he was diagnosed with cancer. The £100,000 pooch, Lancelot Encore was created from cryogenically frozen DNA of the Otto's dog Sir Lancelot. After he

died last January in 2008, the wealthy pair then paid a biotech firm £108,000 to create Lancelot Encore. BioArts CEO Lou Hawthorne teamed with Dr Hwang Woo-suk, a scientist with South Korea's Sooam Biotech Research Foundation, to produce the dog. To create Lancelot Encore, Woosuk took an egg from what Hawthorne called 'an indigenous Korean dog' resembling a bloodhound, replaced the egg's innards with the late Lancelot's DNA, then implanted the egg in a second Korean dog. Two months later, Lancelot Encore was born in South Korea, weighing 1lb 3oz. The Ottos say he's the first single-birth, commercially cloned puppy in the United States. A researcher holds two cloned beagle puppies named as 'Magic' and 'Stem' at the South Korean biotech firm, RNL Bio. They said a new method could slash the cost of cloning pets. RNL Bio said it has developed a new method to clone dogs using stem cells derived from fat tissue that greatly increases the likelihood of success. According to chief executive Ra Jeongchan, two cloned beagle puppies were born in the past week using this method, which could reduce the cost of cloning a pet dog to about £35,000 within three years. While some see canine cloning as assisting efforts to understand human stem cells, others denounce it. "Dogs are man's best friend and have a special place in most cultures," says Executive Director of the Genetics Policy Institute, Bernard Siege.

Compiled by Rutaba Ahmed

tbl jan-feb 09 43

musings

any takers? by praetor for tbl

M

y view on CSR is rather self-centric. What is in it for me? Are all the millions the corporate sector is pouring into CSR programming making my life better? Do companies understand how my life can get better? I don't think so. Because if they did, I wouldn't be stressed and hyper-ventilating all the time because of what companies do to me. Perhaps unknowingly at times, I grant you that. But nevertheless its time they understood what the first tenet of corporate social responsibility should be. And that is simply, do not stress your consumer. Or for that matter anyone falling within the rather amorphous definition of a stakeholder. So what am I talking about here? I get stressed when I dial a corporate number and a machine comes on, mechanically instructing me what to do to solve any one of half a dozen possible problems, by pressing a magic digit. I get stressed because I am a human being and when I have a problem I want to talk to a human being. Whoever came up with automated answering should be held responsible for a crime against humanity. I mean really, how much does it cost to have a few educated young people with great peoples skills as they are called, to answer calls? I get stressed when I see the mind-boggling profit figures in annual reports and wonder why some of these cannot be passed onto me and to other consumers in terms of lower prices when it has become impossible to make ends meet in these costly times? Hey, isn't this corporate social responsibility? I don't know about you, but I get my salary on the first of the month and it's all gone by the fifth. Used to be the tenth in what seem now to be the good old days. So dear corporate, do me a favour if you want to be socially responsible. If

44 www.tbl.com.pk

profits are coming out of your ears, reduce your prices for a change. It's the best public relations you can do! Then I also get stressed when I buy a product and some of the critical text on the packaging or accompanying leaflet is in a font size that can only be read by using a magnifying glass. Which you will admit is not something you keep within arm's reach all the time as you go through life. Or perhaps you are expected to have the vision of an eagle that can see a field rat on the ground as large as a football from several hundred feet up in the air. So what is the miniscule lettering if not a deliberate attempt to stress me out? Just make me give up in sheer hopelessness. I am not sure what is worse; trying to read instructions or warnings in font size 2 or being blatantly insulted in this way. See we did tell you what can go wrong but you didn't read the instructions carefully! Not funny. And what about all the companies whose CSR strategies do not have any cross reference to their advertising? Shouldn't it again be a fundamental CSR principle not to take me for a fool and thrust misleading advertising down my throat? Deliberate, pre-meditated hustling, no less, if you ask me. Why not just tell me the truth and let me still buy their products because I appreciate their honesty? Stress. Stress. Stress. So do I have any takers for my version of corporate social responsibility? One thing I can tell you for sure. Re-think your CSR on these lines and you will do yourself a big favour. Because in essence what you will be doing will be creating 'sustainable' consumers. Praetor has given you a new insight. Act on it.