The Business and Development Discussion Papers encourage debate regarding the different forms of private sector action for development and the sharing of best practices. The series is one initiative of the Business, Competitiveness and Development Program of the World Bank Institute. The Program aims to foster sustainable and equitable development and effective multi-sectoral partnerships.
As new ways of bringing people together web and mobile technology, from System Management Server (SMS) to social networking, continue to change development initiatives, this paper examines how technology is transforming access to new markets, money and skills, and how it offers the prospect of driving more inclusive business models.
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The trend to corporate social responsibility (CSR) reflects globalization as well as the retreat of the state. As growing number of firms source and produce globally, many of their stakeholders have insisted that global firms be held accountable for conduct that could undermine economic, social or environmental progress.
... See More + Moreover, in recent years, the traditional dividing lines between business and government have become fluid. Industrialized and developing countries alike have deregulated or privatized traditional public functions such as the provision of water, education, and postal services. But in many developing countries, governments are unable or unwilling to ensure that all of their citizens have access to such services. Government officials may lack the funds or the 'know how' to provide these services in an effective and equitable manner. And citizens often lack the education or ability to influence government and obtain consistent and affordable access to the resources they need to thrive. In such countries, governance is inadequate. Firms often respond to conditions of inadequate governance with CSR strategies. But there are several reasons why these initiatives may not be sustainable. First, CSR strategies are expensive. Firms may abandon their voluntary initiatives when times are tough or when competitors do not have similar strategies in place. Secondly, firms that provide quasi public goods through philanthropy or partnerships with non-government organizations or foundations may lack the expertise or consistent interest in providing these services. Firms may be distracted from their core mission. Third, corporations can be easily manipulated by activist stakeholder groups that may or may not represent the public. And finally, because CSR strategies are voluntary and relatively new, we know very little about which approaches are most effective in particular circumstances.
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Many governments have placed a high priority on reforming the business environment because of its significant influence on levels of private sector development and therefore on long-term economic growth and poverty reduction.
... See More + The private sector can contribute significantly to business environment reforms by helping policy makers to identify and catalog concrete problems, develop potential policy responses, and build a sustainable constituency for reform. This process that enables companies, often acting through business associations, to come together and present their concerns and solutions to governments, is an important aspect of business advocacy. Business advocacy is especially important, but also especially challenging, when governments lack the technical expertise or organizational capacities to manage reform programs. This is foremost the case in areas, industries, or regions that are of particular concern to the business community due to the prevalence of uncompetitive regulations and/or excessive red tape that hampers growth and investment. Take the Information and Communication Technology (ICT) industry for example. On the premises that strong ICT capabilities can be powerful drivers of firm performance and economic and social development, many governments in emerging and developing countries consider building a competitive ICT industry as a strategic objective. Yet, many government officials, struggle with the complexity and fast-changing pace of this frontier industry and find it challenging to create effective, consistent and transparent regulations that create incentives for technology adoption and the creation of a competitive ICT industry.
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Recent years have witnessed a dramatic increase in the philanthropic resources made available for global development, particularly from private sector sources who encourage the increased application of business thinking and models to philanthropic objectives.
... See More + This blurring of boundaries is leading to the creation of promising hybrid models that combine aspects of business investment approaches and more traditional forms of giving.
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The impacts of globalization have produced strategic shifts in the landscapes facing both business and civil society. Both have come to play an increasing role in development and continue to adjust to changing roles and responsibilities.
... See More + Yet corporate social responsibility initiatives are often limited in impact and many NGOs continue to be suspicious of business intentions. There is now a need and opportunity to bring strategic partnerships between the two sectors to a more substantive level for mutual benefit and improved results.
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Building partnerships takes time and requires dedicated people and resources. But ultimately there is no better way to tackle development problems.
... See More + The development community now has a superb opportunity to use its expertise and wide reach to explore with the potential for scaling up the alliance approach within a strategic framework for development. The World Bank, with its convening power, is well placed to take the lead.
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The nature and scale of development issues require effective partnerships and solutions that involve different sectors of society. These interconnected and systemic issues are best looked at in a multisectoral setting requiring collaborative solutions, with a deliberate experimental feature-learning from tinkering-which represents a challenge to the traditional motivational, organizational, and accountability mechanism long established for different sectors of society, particularly the private sector.
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The private sector is now a vital partner in creating economic and social development. Business cannot operate in a cocoon from the problems that impact society as a whole.
... See More + While sharing the burden of those problems, the private sector can be a large part of delivering solutions. Progress towards development targets, exemplified in the United Nations Millennium Development Goals, will be limited without the active support of business. As recognized in recent research and dialogues, today's companies are key to ensuring sustainable development, both through innovative corporate responsibility initiatives and wealth creation.
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Micronutrient deficiency undermines the potential of billions of people worldwide, limiting both their physical and mental growth during the vital years of childhood.
... See More + It has rarely featured as a priority on the development agenda and the problem remains pervasive among poor population, but solutions do exist, notably through food fortification. Innovative multisectoral approaches, engaging the private sector along with government and civil society, are delivering encouraging results and demonstrating the potential to end this debilitating deficiency in a cost-effective way.
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Although still in the early stages, telecenters in Sri Lanka, offering internet based services to remote rural areas, are proving to be popular hubs for training for school-aged children and places for adults to access information on health, education and agriculture.
... See More + In future, the centers will provide access to on-line government and business services. Structured along commercial lines and with initial public support, the centers harness entrepreneurial talent and create new development opportunities.
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Businesses are hit hard by HIV/AIDS, but they are also in a unique position to help fight back. The private sector interacts with most HIV infected people in a country-directly in employment relations or more indirectly through employee families, customers, or as community members.
... See More + By joining forces to fight the disease, the private sector, together with government and civil society, has an opportunity to exercise corporate social responsibility, in a way that makes both business and moral sense.
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Newsletter 36469 MAR 01, 2006
Gehna, Kebour; Atacik, Mehmet Can; Jarvis, MichaelDisclosed
The state of corporate governance can have an important effect on the availability and cost of capital for all firms, and good corporate governance of financial firms is essential in fostering financial stability and healthy economic growth.
... See More + Good corporate governance frameworks help firms and countries improve accountability, more efficiently use capital, and attract quality and long term investors at lower costs. These, in turn, contribute to a country's competitiveness and thereby its development.
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