Professional Documents
Culture Documents
ALLIANCES TO
MAXIMIZE PRO-POOR
IMPACT
Jane Nelson
MARKET-based solutions
WELFARE-based solutions
From the working poor to the
destitute…
The business potential for
pro-poor practices and alliances
1) CORE BUSINESS
ACTIVITES
- Workplace and
operational processes
- Marketplace and
products, services
- Value chain linkages
2) WIDER COMMUNITIES
Strategic
philanthropy, social
investment, employee
volunteering, community
development and
consultation
• SYSTEM-LEVEL (industry-
wide, national or
global) Public policy;
advocacy; institution
WHY
invest time,
money and effort
in building
alliances?
Responding to
governance gaps
and failures
“The proper guardians of the public
interest are governments …”
The Economist, January 2005
GOVERNANCE GAPS
BAD governance
WEAK
governance
INDIFFERENT
governance
UNCOORDINATED
governance
Overcoming
market failures
and information
asymmetries
Building and
sustaining
TRUST
and reputation
with NGOs,
Scandal … and…Suspicion
Stakeholder activism … from
anarchists to activists to active
partners
Edelman TRUST BAROMOTER
2,000 opinion leaders in 11
countries over 7 years
tracking data
NGOs MOST TRUSTED INSTITUTIONS
28,900
176
CONFRONTATION
COMMUNICATION
CONSULTATION
COOPERATION
Identifying and
managing complex and
fundamentally
new risks, new
expectations …and new
opportunities that
have an impact on
both business and the
1. Fundamental economic and
demographic shifts
2. Fundamental technological
change –
3. Fundamental ecosystem change
4. Fundamentally new global
health challenges
Diseases of
POVERTY
Diseases of
AFFLUENCE
Diseases of
INTER-
DEPENDENCE
WHY ENGAGE & PARTNER?
n To increase trust, influence,
‘license to operate’ and
Legitimacy
n To share risks/burdens and
create a Level-playing field
n To drive Learning and
innovation
n To mobilize joint resources
and Leverage impact and
effectiveness
n To shape the agenda and play
WHAT
types of alliance
are emerging and
what’s their
potential ?
Different pro-poor business
strategies
(Source: Nelson 1998, 2001)
Core purposes for
alliances
1. DO NO HARM - Minimize negative
impacts on the poor
Control AND account for social,
ethical and environmental impacts,
risks, costs and liabilities
1. Alliances at the
individual
company-level
2. Collective industry-
wide action
3. Collaborative multi-
sector action
1. Alliances at the
individual COMPANY LEVEL
Toimprove and account for
company’s own performance –
advice; research; assurance
To leverage competence-led
2. Collective BUSINESS or
INDUSTRY-WIDE alliances
Tocreate industry-wide, self-
regulatory standards, guidelines
and practices –Equator Principles; Wolfsberg
Principles; Sustainable Agriculture Initiative;
International Council of Mining & Metals