Identify how donor agencies promote private sector engagement in ways which are informed by principles of social development in general and human rights in particular (with reference to key policies, prevailing practices and notable case studies).
This paper identifies donors’ key policies, prevailing practices, and
notable case studies of private sector engagement that incorporate
social development and human rights considerations. Although much policy
literature refers to issues of human rights and social development, the
extent to which these are discussed varies significantly. Relatedly,
much of the literature lacks specific detail on how guidelines and
principles are employed or enforced.
From the literature that was identified, some of the notable approaches
to private sector engagement that incorporate human rights and social
development considerations include:
- Sida’s Innovations Against Poverty: This is a funding instrument that
targets businesses based or operating in developing countries. It aims
to promote the development of goods and services that benefit people
living in poverty through the provision of grants and guarantees.
Businesses that receive funds are required to meet certain human
rights and social development standards, such as international labour
standards (Sida 2011b). Sida also mainstreams issues of Corporate
Social Responsibility through its support for ‘Business for Social
Responsibility’ (BSR). BSR is a membership organisation that advocates
sexual and reproductive health and rights issues in a business
environment (Sida 2011b).
- Danida’s Business Partnerships programme links Danish companies to
local partners to improve competitiveness and corporate social
responsibility (Danida 2013). The agency requires partners to
incorporate human rights, labour rights, anti-corruption and
environmental standards in their daily operations (p. 4). Partners are
obliged to undertake a ‘risk-based Corporate Social Responsibility due
diligence’ assessment of business operations which is facilitated by
the Danish Embassy and guided by the UN CSR Self-assessment tool (p.
- JICA’s Base of Pyramid (BOP) Business Programme provides funds to
‘pro-poor’ companies whose activities have direct development impacts.
JICA’s involvement in this mechanism includes the promotion of
sanitary products for women in India and support to businesses
producing sustainable packaging in Zambia (JICA n.d.).
In addition, there are some international guidelines and mechanisms for
private sector engagement that are relevant for human rights and social
development concerns. These include the UN Global Compact - an
initiative to encourage businesses to adopt socially responsible and
sustainable policies and the OECD Guidelines on Multinational
Hinds, R. Promoting social development and human rights in private sector engagement (GSDRC Helpdesk Research Report 972). Governance and Social Development Resource Centre, University of Birmingham, Birmingham, UK (2013) 12 pp.