Business in Development Symposium Considering stakeholder perspectives in scoping and assessing impacts Andrew Jenkins 30th June 2014 The GLOBAL VALUE project is funded by FP7 under the SSH theme (Grant Agreement No. 613295)
Stakeholder Collaboration o Business Impact o The Millennium Development Goals o A Virtuous Circle? The GLOBAL VALUE project is funded by FP7 under the SSH theme (Grant Agreement No. 613295)
Importance of MDGs for Stakeholders: the case of Bangladesh o Consistent GDP and industrial growth of > 6% . o Garment production = 78% of exports, 6% of GDP . o Sustained economic growth is a major factor in good progress on Millenium Development Goals. o Garment industry employs 4m (mainly) women The GLOBAL VALUE project is funded by FP7 under the SSH theme (Grant Agreement No. 613295)
But characterised by: o Low wages and long working hours. o Factory fires and collapses which have killed at least 1,800 workers since 2005 (WTO) . o “Rana Plaza was not about an accident in one building. It was about an issue that had severe implications for Europe and the US, and was about global governance, rules and regulations.“ ILO The GLOBAL VALUE project is funded by FP7 under the SSH theme (Grant Agreement No. 613295)
Also : o Health and safety crisis among tannery workers, including skin and respiratory disease (BCAS). o Residents are also seriously affected. The GLOBAL VALUE project is funded by FP7 under the SSH theme (Grant Agreement No. 613295)
Problem of ‘Soft States‘: Compliance throughout the value chain? Domestic 1 Import 2 Raws 3 Dhamrai Facility 4 Tongi Facility 5 30 Retail Areas 300 Retail Outlets Final Channels of Satellite 6 CDC 11 Product 10 20 Wholesales Sales 12 Depots Export Import 7 Outsourcing 8 Export 9 The GLOBAL VALUE project is funded by FP7 under the SSH theme (Grant Agreement No. 613295)
Can stakeholder collaboration bring value to business and stakeholders? o I nternal Com pany values: institutional culture o Political/ Legal m easures: national and international health and safety and environmental regulations (including ILO and UNEP). o Civil Society: trade unions and non-government organisations in Bangladesh and consuming countries. o Trade/ m arket access issues: WTO preference, EU and Canada GSP schemes, US Tariff Relief Assistance APTA etc. The GLOBAL VALUE project is funded by FP7 under the SSH theme (Grant Agreement No. 613295)
Problems to be overcome; business impacts on development are often elusive : Political/ Legal: o International regulation has to be locally enforced. o ‘Lack of governance turns Dhaka unliveable’, IGS. o Bangladesh 144/ 174 in corruption perception (TI). o Triumph of image over reality: all the laws can be managed (except the law of gravity). Civil Society: o Local trade unions weak and subject to ‘mastaans’. o Local NGOs subject to GoB pressure. o International NGO and media attention fickle. The GLOBAL VALUE project is funded by FP7 under the SSH theme (Grant Agreement No. 613295)
The Challenge for Business and Society : o Can high standards be set and adhered to, and w ill they lead to an industry-w ide im provem ent? o Or will Gresham‘s Law (bad money drives out good) lead to a race to the bottom, driven by price? o Will the ‘soft state‘ (Myrdal) fail to deliver? o Poor governance may have risks but, in the short run, no regulation has lower costs for producers and therefore lower prices to purchasers... The GLOBAL VALUE project is funded by FP7 under the SSH theme (Grant Agreement No. 613295)
Success factors for meaningful stakeholder engagement o Trust and Integrity o Long-term Relationships o Involvement of all key stake-holders, including communities and government o Clear agreed feasible goals – like the MDGs! The GLOBAL VALUE project is funded by FP7 under the SSH theme (Grant Agreement No. 613295)
We need a coherent joint effort to add value throughout the system Otherwise, it may cost.... ...the Earth. The GLOBAL VALUE project is funded by FP7 under the SSH theme (Grant Agreement No. 613295)
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