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Corporate Social Responsibility
News
9.15.2005 ET
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CSR News from:
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Fair Returns, Job Creation, Not 'Just Charity' Is Path To Success For Business In Developing Economies, Says First-Ever Survey Of Fortune 500s, NGOs & Media
Mixed awareness and understanding of the Millennium Development Goals among many companies and how the MDGs relate to business
Africa least likely to attract investment, most in need of it, report says
(CSRwire) New York -- In an in-depth survey, fielded by Edelman, the Corporate
Social Responsibility Initiative of Harvard's Kennedy School of Government,
and Prince of Wales International Business Leaders Forum, of a sample of
Fortune 500 companies, global NGOs, investors and the media, about the
roles and responsibilities for business in international development,
companies and NGOs agreed that corruption in poor countries is the
greatest obstacle to companies deciding to enter these markets. There was
also general consensus on the need for innovative partnerships when doing
business in developing countries, however there were differing
perspectives on other key questions of priorities, roles and desired
outcomes.
Key findings of the survey, Business and International Development:
Opportunities, Responsibilities and Expectations,
include:- Companies and NGOs agree on lead role for
government: poor countries to reduce corruption; rich countries should
address trade policies and not just focus on aid
- Companies acknowledge the value of partnership in developing
markets; they recognize that NGOs contribute technical and
on-the-ground expertise; less understanding and awareness among companies
about the specific role and contribution that multi-lateral institutions
offer
- Mixed awareness among companies of Millennium Development
Goals; companies using different language from NGOs and multi-laterals
regarding international development
- Companies rank Africa lowest among all regions for opportunity
to: "advance international development and produce returns for companies";
East Asia ranked highest
- Unilever, P & G, BP, Nike, Citigroup cited multiple times by
businesses, NGOs and media as leaders in international development
- All respondent agree that business' greatest contribution to
developing countries is job and enterprise creation, not charity
- Both companies and NGOs agree that media coverage on business and
international development slants negative
- NGOs more inclined to trust companies that point to profit motive - as
opposed to "corporate citizenship"
- as key driver in decision
making in poor countries
- Free local press cited as key factor in establishing stable
markets in which companies want to invest
Edelman CEO, Richard
Edelman, observed, "We are constantly counseling companies to engage NGOs
and other stakeholders, about their own activities and impacts. These
survey results demonstrate that the international development community -
NGOs and multi-laterals - need to re-double their own efforts to engage
business about the Millennium Development Goals and related issues with
both an approach and language that companies are going to understand and
respond to."
Jane Nelson, director of the Corporate Social Responsibility Initiative at
Harvard's Kennedy School of Government, noted, "Over the last ten to
fifteen years, leading companies have learned the value of engaging and
partnering with stakeholders around various aspects of their
sustainability and ethical business strategies. It is encouraging to see
that companies - and NGOs - also recognize the critical role that
partnerships can play around leveraging business' role in developing
countries."
Adrian Hodges, Managing Director of the Prince of Wales International
Business Leaders Forum, added, "The research findings indicate that
thanks to the growing ranks of responsible companies and responsible NGOs,
we are moving away from an era too often dominated by the focus on 'what
business should not do' to a period which recognizes 'what business can
do'. This shift in mood will have the most impact if companies are given
appropriate incentives to invest in different business models and new
markets, and if civil society and public sector partners are willing to
come to forward to form partnerships for common goals."
The full report will be available on-line at 12:00 pm EST: http://www.edelman.com/insights/.
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The Corporate Social Responsibility Initiative at the Kennedy School of
Government (KSG) is a multi-disciplinary and multi-stakeholder program
that seeks to study and enhance the public role of the private enterprise.
It focuses on exploring the intersection between corporate responsibility,
corporate governance and strategy, public policy, and the media. The
initiative aims to bridge the gap between theory and practice, encourage
innovation, build leadership skills and support constructive dialogue and
collaboration between different sectors.
The Prince of Wales International Business Leaders Forum (IBLF) is
a not-for-profit organization established in 1990 to promote responsible
business leadership and partnerships for international development. With a
membership of over 80 member companies from around the world, IBLF works in
over 50 countries mobilizing visionary leadership and engaging the
capabilities of companies in creating innovative and sustainable
development solutions.
Edelman is the only independent global communications and public
relations firm, with 1,900 professionals in 43 offices worldwide.
Advertising Age recently profiled Edelman as one of their "Best
Agencies in 2004" and The Holmes Report named Edelman the 2004
International Agency of the Year.
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