Theme 1: The Role of Business in Advancing Peace Through Commerce

Peace
62

As someone that lived through 20 years of civil wars in Idi Amin’s Uganda etc, I can say that my experience of both poverty and abscence of peace is hard earned.

Business needs certainly conditions or the right envrionment to thrive. One those conditions as I seem them are effective institutions and these in turn thrive on consensus.

The situation in Uganda for instance roughly from 1975 to 1985 was that there were no effective instituions to speak of and as such the infrastructure failed as well as the economy. Typically regardeless how much money you had it was near impossible to set up and or run a viable or sustainable business, some days there was simply nothing available to buy in the shops nor people to transact business with.

The buildings that housed shops and other institutions in the capial city got burnt out during one of the civil wars and people got rounded up and taken away for no apparent reason other than being in the wrong place at the wrong time.

First forward to the current day Uganda and at this point I would urge you to get hold of a copy of this
http://www.amazon.co.uk/Geldof-Africa-DVD-NTSC-Bob/dp/B000B9PW8K by way of illustrating my point. You would indeed be forgiven for thinking that you were in two different countries if you compared the north and the south.

The South is stable and has been since 1986, and to date there are instituions in place that oversee enterprises and this has enabled investors to etc. therefore from my personal experience I would argue that economic development would be near impossible without peace in any given country. A peaceful environment from a political point of view provides for confidence in would be investors as well as building on local enterprise.

The Uganda that I grew up in was far from this and as such we tended to live in the present moment as we had no confidence that we would still be alive that afternoon let alone the following day. It is this confidence that is a building block for sustainability, in my opnion.

Going back to the central question :How can business contribute to sutainable peace? I would have to draw from my personal experience again and say Yes,

But to a certain extent and this would rely/be based on the perception, specifically perceived inequality. If I can just take you back to Idi Amin’s Uganda. There was a perception that the Ugandan Asians had monopolised Business and enterprise generally that by getting rid of them the Africans could then have a chance at running successful businesses/enterprises.

On my recent visit to Uganda (septmber 2008) this perception was still alive in some quarters, although I am unclear as to how wide spread it is. However this may go some to illustrating my point please http://news.bbc.co.uk/1/hi/world/africa/6548107.stm.

The manner in which businesses/corporations conduct themselves may feed this type of perception leading to unrest, riots etc, and from that point of view Businesses can contribute to peace by ensuring that their practices are equitable, inclusive and transprarent.

I hope that makes sense.

63

Thank you for sharing your experience, Ida. The tension between Ugandan Africans and Ugandan Asians is a concrete example where businesses could step in to build bridges, include marginalized/stigmatized groups, facilitate discussion, etc. Do you know of any examples where companies made some positive contributions to alleviating this tension?

64

Sadly not Stephanie, but I can look into this, I may well uncover something interesting

65

Associated with this are issues of wellbeing. Recovedry from diasaster either man made or natural takes time. Employment can improve many aspects of well being and offer oppourtunuties to build social support, feelings of stability and mood as well as alleviating physical difficulties.

However, employment needs to be equitable, fair and improve quality of life on both physical and psychological planes.

66
  1. Businesses have intrinsic responsabilities that go beyond employment creation and tax paying. Taking care of the environment and contribute to peace at least in their local territories are part of these intrinsic social responsabilities. Avoiding them in their business plans and implementation only show lack of vision and as a consequence the relation between employer and employees are not longer based on trust for instance. Personally, some years ago I was involved in the preparation of economic and financial feasibility studies for a family of entrepreneurs. The business was into the exploitation of nonrenewable natural resources for construction sector. Reforestation plans, improving houses for employees, building a school and health center not only for employees and their families but also for villages around, entertainment activities, good salaries, good equipment for protection and so on were included from the very beginning of their plans. Nine years later the company has grown substantially and its success proves that the successful businesses take good care of their social responsabilities.
67

This ideas are from a small group of professionals working together in the Merida State, VENEZUELA (Bolivarian Republic of).
We are a small foundation working for Community Empowering under our Constitutional Rules. We all have a common proposal raised from deep analysis and discussions. Please feel free to contact us through any of our members registered in this iniciative. Peace a Fare Trading for everyone.

Corporative Social responsibility in terms of the plans and programs that carry out the companies in their performance and social intervention of their areas of communitarian influence, indeed, it can define and develop lines of work which they contribute to the peace process, starting off from the implantation of initiatives that prohang to foment the disarmament among other ideas, contributing in indirect way to fulfill the propose lines in the objectives of the millenium raised by the United Nations . Example of it, constitutes the alliance between the Camera of Retailers of Santa Fe de Bogota and the Greater Mayorship of that federal entity of the Republic of Colombia to improve the life conditions of of the city with emphasis in the most socioeconomically underprivileged sectors.
This opinion is argued considering that Peace like concept in its essence is an aim that is materialized from the practice of cultural patterns assuming the diffuse and collective interest of the established groups and human populations. Then, we can affirm that any practice that contributes to the improvement of the quality of life and the common well-being, also implies in direct form or from underlying the generation of spaces that materialize peace like interaction tool of the human beings.
We can say, that the practices of corporative social responsibility, still executed in fulfillment of normative obligations and that they obey to plans or corporative policies or not, whenever they promote spirits and effects in the communities to improve the communication and the collective well-being, will have implicit involving the aim or the state of peace
However, continuing with proposed dissertations of peace and commerce and in a way of ending this opinion, taking in consideration the purpose of the information granted in this conferences, it is to say, all the alluded one to the management of companies, tradings, corporations and the areas of influence of these in the human settlements, are the interests, the conveniences and the commitments of commerce that set the standard of the turn out of their mediation to influence in the communities, in the understood one that the norms,well in the States internally or in the international scope, they must be oriented to cooperate in surpassing the poverty, to generate growth opportunities, to improve the conditions of environment, to diminish or to mitigate the violence between the diverse range of possibilities that contribute to improve conditions of life of the different small populations or groups that are taken care of, at least synthetizing what proposes the good sense common and the responsibility of investors in its areas of influence in virtue of the production for what they are destined and the captive markets or in development.
Finally, as far as about the world-wide crisis can affect the indicated initiatives, it will depend on the markets and the necessity to surpass the crisis from agreements between settlers and industrialists or corporations.

Yuri.

68

This ideas are from a small group of professionals working together in the Merida State, VENEZUELA (Bolivarian Republic of).
We are a small foundation working for Community Empowering under our Constitutional Rules. We all have a common proposal raised from deep analysis and discussions. Please feel free to contact us through any of our members registered in this iniciative. Peace a Fare Trading for everyone.

Corporative Social responsibility in terms of the plans and programs that carry out the companies in their performance and social intervention of their areas of communitarian influence, indeed, it can define and develop lines of work which they contribute to the peace process, starting off from the implantation of initiatives that prohang to foment the disarmament among other ideas, contributing in indirect way to fulfill the propose lines in the objectives of the millenium raised by the United Nations . Example of it, constitutes the alliance between the Camera of Retailers of Santa Fe de Bogota and the Greater Mayorship of that federal entity of the Republic of Colombia to improve the life conditions of of the city with emphasis in the most socioeconomically underprivileged sectors.
This opinion is argued considering that Peace like concept in its essence is an aim that is materialized from the practice of cultural patterns assuming the diffuse and collective interest of the established groups and human populations. Then, we can affirm that any practice that contributes to the improvement of the quality of life and the common well-being, also implies in direct form or from underlying the generation of spaces that materialize peace like interaction tool of the human beings.
We can say, that the practices of corporative social responsibility, still executed in fulfillment of normative obligations and that they obey to plans or corporative policies or not, whenever they promote spirits and effects in the communities to improve the communication and the collective well-being, will have implicit involving the aim or the state of peace
However, continuing with proposed dissertations of peace and commerce and in a way of ending this opinion, taking in consideration the purpose of the information granted in this conferences, it is to say, all the alluded one to the management of companies, tradings, corporations and the areas of influence of these in the human settlements, are the interests, the conveniences and the commitments of commerce that set the standard of the turn out of their mediation to influence in the communities, in the understood one that the norms,well in the States internally or in the international scope, they must be oriented to cooperate in surpassing the poverty, to generate growth opportunities, to improve the conditions of environment, to diminish or to mitigate the violence between the diverse range of possibilities that contribute to improve conditions of life of the different small populations or groups that are taken care of, at least synthetizing what proposes the good sense common and the responsibility of investors in its areas of influence in virtue of the production for what they are destined and the captive markets or in development.
Finally, as far as about the world-wide crisis can affect the indicated initiatives, it will depend on the markets and the necessity to surpass the crisis from agreements between settlers and industrialists or corporations.

ANGEL

69

This ideas are from a small group of professionals working together in the Merida State, VENEZUELA (Bolivarian Republic of).
We are a small foundation working for Community Empowering under our Constitutional Rules. We all have a common proposal raised from deep analysis and discussions. Please feel free to contact us through any of our members registered in this iniciative. Peace a Fare Trading for everyone.

Corporative Social responsibility in terms of the plans and programs that carry out the companies in their performance and social intervention of their areas of communitarian influence, indeed, it can define and develop lines of work which they contribute to the peace process, starting off from the implantation of initiatives that prohang to foment the disarmament among other ideas, contributing in indirect way to fulfill the propose lines in the objectives of the millenium raised by the United Nations . Example of it, constitutes the alliance between the Camera of Retailers of Santa Fe de Bogota and the Greater Mayorship of that federal entity of the Republic of Colombia to improve the life conditions of of the city with emphasis in the most socioeconomically underprivileged sectors.
This opinion is argued considering that Peace like concept in its essence is an aim that is materialized from the practice of cultural patterns assuming the diffuse and collective interest of the established groups and human populations. Then, we can affirm that any practice that contributes to the improvement of the quality of life and the common well-being, also implies in direct form or from underlying the generation of spaces that materialize peace like interaction tool of the human beings.
We can say, that the practices of corporative social responsibility, still executed in fulfillment of normative obligations and that they obey to plans or corporative policies or not, whenever they promote spirits and effects in the communities to improve the communication and the collective well-being, will have implicit involving the aim or the state of peace
However, continuing with proposed dissertations of peace and commerce and in a way of ending this opinion, taking in consideration the purpose of the information granted in this conferences, it is to say, all the alluded one to the management of companies, tradings, corporations and the areas of influence of these in the human settlements, are the interests, the conveniences and the commitments of commerce that set the standard of the turn out of their mediation to influence in the communities, in the understood one that the norms,well in the States internally or in the international scope, they must be oriented to cooperate in surpassing the poverty, to generate growth opportunities, to improve the conditions of environment, to diminish or to mitigate the violence between the diverse range of possibilities that contribute to improve conditions of life of the different small populations or groups that are taken care of, at least synthetizing what proposes the good sense common and the responsibility of investors in its areas of influence in virtue of the production for what they are destined and the captive markets or in development.
Finally, as far as about the world-wide crisis can affect the indicated initiatives, it will depend on the markets and the necessity to surpass the crisis from agreements between settlers and industrialists or corporations.

FEDERICO

70

This ideas are from a small group of professionals working together in the Merida State, VENEZUELA (Bolivarian Republic of).
We are a small foundation working for Community Empowering under our Constitutional Rules. We all have a common proposal raised from deep analysis and discussions. Please feel free to contact us through any of our members registered in this iniciative. Peace a Fare Trading for everyone.

Corporative Social responsibility in terms of the plans and programs that carry out the companies in their performance and social intervention of their areas of communitarian influence, indeed, it can define and develop lines of work which they contribute to the peace process, starting off from the implantation of initiatives that prohang to foment the disarmament among other ideas, contributing in indirect way to fulfill the propose lines in the objectives of the millenium raised by the United Nations . Example of it, constitutes the alliance between the Camera of Retailers of Santa Fe de Bogota and the Greater Mayorship of that federal entity of the Republic of Colombia to improve the life conditions of of the city with emphasis in the most socioeconomically underprivileged sectors.
This opinion is argued considering that Peace like concept in its essence is an aim that is materialized from the practice of cultural patterns assuming the diffuse and collective interest of the established groups and human populations. Then, we can affirm that any practice that contributes to the improvement of the quality of life and the common well-being, also implies in direct form or from underlying the generation of spaces that materialize peace like interaction tool of the human beings.
We can say, that the practices of corporative social responsibility, still executed in fulfillment of normative obligations and that they obey to plans or corporative policies or not, whenever they promote spirits and effects in the communities to improve the communication and the collective well-being, will have implicit involving the aim or the state of peace
However, continuing with proposed dissertations of peace and commerce and in a way of ending this opinion, taking in consideration the purpose of the information granted in this conferences, it is to say, all the alluded one to the management of companies, tradings, corporations and the areas of influence of these in the human settlements, are the interests, the conveniences and the commitments of commerce that set the standard of the turn out of their mediation to influence in the communities, in the understood one that the norms,well in the States internally or in the international scope, they must be oriented to cooperate in surpassing the poverty, to generate growth opportunities, to improve the conditions of environment, to diminish or to mitigate the violence between the diverse range of possibilities that contribute to improve conditions of life of the different small populations or groups that are taken care of, at least synthetizing what proposes the good sense common and the responsibility of investors in its areas of influence in virtue of the production for what they are destined and the captive markets or in development.
Finally, as far as about the world-wide crisis can affect the indicated initiatives, it will depend on the markets and the necessity to surpass the crisis from agreements between settlers and industrialists or corporations.

LEOPOLDO

71

This ideas are from a small group of professionals working together in the Merida State, VENEZUELA (Bolivarian Republic of).
We are a small foundation working for Community Empowering under our Constitutional Rules. We all have a common proposal raised from deep analysis and discussions. Please feel free to contact us through any of our members registered in this iniciative. Peace a Fare Trading for everyone.

Corporative Social responsibility in terms of the plans and programs that carry out the companies in their performance and social intervention of their areas of communitarian influence, indeed, it can define and develop lines of work which they contribute to the peace process, starting off from the implantation of initiatives that prohang to foment the disarmament among other ideas, contributing in indirect way to fulfill the propose lines in the objectives of the millenium raised by the United Nations . Example of it, constitutes the alliance between the Camera of Retailers of Santa Fe de Bogota and the Greater Mayorship of that federal entity of the Republic of Colombia to improve the life conditions of of the city with emphasis in the most socioeconomically underprivileged sectors.
This opinion is argued considering that Peace like concept in its essence is an aim that is materialized from the practice of cultural patterns assuming the diffuse and collective interest of the established groups and human populations. Then, we can affirm that any practice that contributes to the improvement of the quality of life and the common well-being, also implies in direct form or from underlying the generation of spaces that materialize peace like interaction tool of the human beings.
We can say, that the practices of corporative social responsibility, still executed in fulfillment of normative obligations and that they obey to plans or corporative policies or not, whenever they promote spirits and effects in the communities to improve the communication and the collective well-being, will have implicit involving the aim or the state of peace
However, continuing with proposed dissertations of peace and commerce and in a way of ending this opinion, taking in consideration the purpose of the information granted in this conferences, it is to say, all the alluded one to the management of companies, tradings, corporations and the areas of influence of these in the human settlements, are the interests, the conveniences and the commitments of commerce that set the standard of the turn out of their mediation to influence in the communities, in the understood one that the norms,well in the States internally or in the international scope, they must be oriented to cooperate in surpassing the poverty, to generate growth opportunities, to improve the conditions of environment, to diminish or to mitigate the violence between the diverse range of possibilities that contribute to improve conditions of life of the different small populations or groups that are taken care of, at least synthetizing what proposes the good sense common and the responsibility of investors in its areas of influence in virtue of the production for what they are destined and the captive markets or in development.
Finally, as far as about the world-wide crisis can affect the indicated initiatives, it will depend on the markets and the necessity to surpass the crisis from agreements between settlers and industrialists or corporations.

MIGUEL

72

I attended the launch of a book at the DC-based Center for Global Development yesterday and would like to share what I learned. The book is titled Africa’s Private Sector: What’s Wrong with the Business Environment and What to Do About It (by Vijaya Ramachandran, et al) and analyzes findings from Enterprise Surveys conducted in sub-Saharan Africa and elsewhere. Managers and entrepreneurs shared with researchers the day-to-day problems they encounter.

Businesses face challenges beyond just the conflict and post-conflict environments in which they must sometimes operate. By understanding their constraints, we can better facilitate their contributions to peace and show them how their contributions would be profitable for them as well as for their communities. And indeed, many of the obstacles that stand in the way of business growth also exacerbate conflict and thwart peacebuilding activities.

The report finds that observed lags in the development of Africa’s private sector are based on the interaction of:

  1. Exogenous factors like the small size of markets and economic sparseness (i.e. businesses are spread out)

  2. The lack of infrastructure, particularly a reliable source of power. Over half of businesses list this as their worst constraint. Some survive with generators, but these are expensive.

  3. Segmented business sectors. Many African countries have private sectors that are ethnically segmented or dominated by ethnic minorities or both. This limits competition, encourages ambivalence toward facilitating good business environment, and constrains the growth of firms outside the dominant network.

Businesses are greatly affected by lack of infrastructure, and this is one area in which business can work with government in public-private partnerships. The lack of good roads, for instance, greatly increases the cost of doing business in Africa, where many companies must airlift their goods instead of using overland transportation. Infrastructure projects can be designed to build bridges between communities in tension, to employ former combatants, and to integrate marginalized communities that may be turning to rebel groups for social services because government is not providing them. These projects will contribute to peace and decrease companies’ cost of doing business.

Addressing (3) would also greatly contribute to peace. One example would be Ida’s, where Ugandan Asians were stigmatized and held under suspicion of “controlling” the business sector. Studies like the one in the book show that segmented business sectors actually hinder growth. If companies and the self-segregated business networks can see the numbers supporting integration, they will have a greater incentive to build those bridges.

73

When analysing correlations with 140 countries there will always be outliers. South Africa, along with a handful of other countries are outliers on the GDP per capita correlations. Having a set of outliers does not mean the analysis is wrong. The interesting question is what causes these descrepancies, ie lots of natural resources, and whether the correlations will merge over time. Other factors that correlate with the GPI are well functioning governement, corruption and respect for human rights. Although I have traveled to South Africa many times I would not call myself an expert on the country but I would look at the direction of these indicators to see whether the country may become more peaceful or per capita income may drop.

74

You are correct in that many companies talk CSR but are only interested in their image. An exercise that I do is to look through activities to asses whether what they are doing is substaintial or a fringe issue. Another way is test whether the company is saving money by taking the initiative, also estimate the cost to the company of the initiative.

I spend a lot of time in hotels, today I am staying in one that adds a dollar to your bill if you sign a special item at the bottom of the bill. The dollar goes towards planting cherry blossom trees to save the environment. The exercise is marketed throughout the hotel. They are hardly serious.

One initiative that I came across in London turned out to be very successful, the organisation Trucost took each of the ethical fund managers and calculated the carbon footprint of each of the investments and found that many funds were investing in heavy carbon footprint businesses. Trucost published their findings and many of the funds rebalanced their portfolios.

75

Having created businesses I can understand their reluctance with peace issues. Corporations are driven by the bottom line and their management success and job prospects is mainly judged by this. Shareholders generally are only interested in the bottom line but most business people are like you and me and when it is reasonable do want to do good things. It is our role to clearly demonstrate why it is in their self interest to behave properly.

There is an economic saying that lies at the heart of governemtn services and it is “There are some goods and services that are in the interests of all citizens but the costs are to heavy for any individual or group of individuals to bear”. Peace is generally one of these issues, however if companies can see why peace is in their self interest then they will work with governments to create the appropriate conditions. Business through campaign funds in the west is the most influential force on government.

76

I want to start by thanking the organizers for the opportunity to discuss these issues in a world wide environment. I am sure at the end we all will have a better understanding of the problems, we will become familiar with new approaches and probably more importantly we will be more determined to do the best we can to create a better world for this generation and the generations to come.
Allow me to make some comments.

  1. It is going to be very dificult to find a simple answer to the questions. As seen in all the discussion generated until today, we can find a multitude of experiences, stories, successes and concerns that differ depending where we work and live.
  2. I personally think that the issue of social responsiblity, even though is correct and valid and we should encourage, is born out of the lack of humans to live by moral standards that permeate to our business life. In this sense no one should have developed a business to exploit people, resources and destroy our environment. However we did so and now we are trying to bring back our moral and universal values to the business world. That is welcome.
  3. I am not sure if it is social responsibility or something else, however I am sure that business and the society in general need to wake up to the needs of our world and develop new paradigms to make this a better world. Would this imply to change our business practices and call them social responsible practices? Then so be it…but also will imply to change in our personal actions from the simple way in which we use water to the way we relate to people.
  4. The easiest answer to the second question is that yes they can be replicated, but in order to be replicated we need to recognize that the experiences showed by the speakers took place in countries in which there was a certain stage of development attained and in which there is a clear and transparent political, judiciary and legal system. This prompts the quesiton of what is first? business of the existance of an institutional environment to promote first of all justice and accountability. I tend to agree with the speaker that emphasized that we need to create an institutional framework in order to change the way we do business. The intriguing question is how?..How can we change when people in power will not allow change?. How the people at the bottom will obtain rigths if they cannot even be sure they can be represented?. I guess we still have a long way to go
  5. Can the current financial downturn affect these efforts?. I surely think yes. Unfortunately I think that the most dramatical effects will be contrary to what we expect. Companies will put more attention into their bottom lines and will reduce their concern on social responsibility. The good think is that also this crisis, that is taking place in a more communicated global society, will create a new concience.

Thanks for this forum

Miguel

77

The Whole Foods Stakeholder Model is available for viewing on the FLOW website.

78

In response to the question of whether or not the recent global economic downturn will have an impact on sustainable peace, I would argue that the recession will have an impact on these efforts. It is a fact that in times of economic trouble, businesses cut back. We have already seen these cut backs in jobs, advertising, training programs, etc. However, many believe that those organizations that continue to invest in their future are the ones that bounce back the quickest when the economy turns around.

I would argue that although many companies will cut back on, or eliminate, their CSR efforts during this global economic downturn, some companies will see this as an opportunity to make a greater impact. These companies will invest in sustaintable peace efforts.

I am curious - Does anyone in this conference have a sense of which companies are cutting back on their efforts and which are continuing to invest? What has the response been thus-far?

79

If the positive examples provided by the speakers can be replicated…?..If are there other business that can promote peace…?..well, I would say that a more sounded question is how each business sector and each business alone can play this leading role in promoting peace. The general principles and values in a society are the base of how a business will perform in terms of peace creation. In a society where human values and principles have been clashed by political and economic instability, business´s performance would be based in distrust in their employees and government. Here is when a new generation of leaders need to be encouraged. New leadership and new ways of do business would make the difference in peace creation.

Strong economic downturns normally shake all structures at economic and social levels so hard that new structures and institutions emerge and other disappear. The present downturn affecting the world may be an opportunity to place new challenges for business. It has been clear that greed blind business people and the consequences are disastrous specially for all and specially for small and medium enterprises and working people. Since there is nothing that can be done to reverse this situation, the challenge now is how to introduce this vision of peace creation into a new generation of business people, of rules and institutions, of ways to do business where equality prevails. From this starting point, peace would have a chance.

Hope this makes sense!

80

Hi Everybody,
My name is Alexandra Ospina and I’m working for GTZ in Colombia related Prive Sector role in peacebuilding.
In relation to the the first question I would like to share with you our experiences concerning the boundaries of CSR and Peace. I think, the difference between a corporation which implemented CSR in Iceland and another in Colombia is that the second one has to consider armed conflict, victims and war economy (between others).
We have set up a Business Prize to businesses which building peace in Colombia, and in general many companies put inside of CSR some activities related to peace.