Catalyzing Transformational Partnerships

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Catalyzingtransormational

PartnershiPsbetweenthe United nationsand bUsiness

Global Compact

LEAD


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t g Cpc lead tk c Un-bu Pp

c-c Un g Cpc ofc U

w upp

We would like to acknowledge the ollowing companies

who contributed to the development o this report and the accompanying guide:

accu, acc, bas , dsm, gsK, i, KPmg, nnk, s,

tc, t Cc-C Cp, tnt, U.

We would also like to acknowledge the contribution o Jane Nelson, Director o the

Corporate Responsibility Initiative, Kennedy School o Government, Harvard University.

A number o UN Agencies, Funds and Programmes have

also provided input and eedback but a special thanks to

UndP, Unido, UneP wP.

Catalyzing transormationalPartnershiPs between

the United nations and bUsiness


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1. ecu su 6

2. t u p Un-bu pp 9

2.1. A range o UN-Business partnerships 9

2.2. What makes partnerships transormational 10

2.3. The structure o transormational partnerships 13

3. t pp pcc 14

3.1. Instituting new rules: Rerigerants, Naturally! 14

3.2. Correcting market ailures: Global Alliance or Clean Cookstoves 15

3.3. Shiting behavioral norms: Project Laser Beam 16

4. s Un-bu pp 17

4.1. Building trust 17

4.2. Building capacity to bridge cultural dierences 17

4.3. Delivering as one 18

4.4. Committing to concrete governance 19

5. rc pp 20

6. t 23

7. a 24

t C


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1. ecu su

a u upc u p cuThe world is changing rapidly. Technology is connecting societies in new ways, empowering and

mobilizing new actors to seek change, both positive and negative. Threats to peace, security, the

environment, and social and economic development are complex and these issues are becoming

increasingly linked. At the same time, the scope and impact o Business has become more global

in recent decades, reaching more broadly across the developing world to serve new markets.

With this broader reach has come a more proound understanding that many o the underlying

drivers o long-term protability and success in the private sector such as access to energy, good

governance, sustainable economic developmentoverlap with UN priorities underpinning peace,

security, and poverty reduction. These deepening ties between public and private interests create

new opportunities or collaboration. Additionally, with its reach and unique capabilities, Business

can be a powerul source o innovation and implementation power, working alongside the UN to

develop better and more integrated solutions to important global challenges.

t c c bu Un puUN-Business collaboration is not new, but the models o partnership have been evolving. New pat-

terns o development involve partnerships and alliances shaped by common interests and shared

purpose, and bounded by clear principles that encourage autonomy and synergy. Over the past two

decades, a vanguard o UN entities and business leaders has been leading the way, with important

progress made in areas such as anti-corruption, HIV/AIDS, clean water, ood security, and the

environment. Partnerships originally grounded in dialogue and learning have matured, leading to

concrete action and progress. Much more needs to be done, however. The UN has set ambitious

targets in the Millennium Development Goals, and signicant obstacles remain in terms o achiev-

ing the scale and systemic impact necessary to hit these targets. In particular, new and more

eective partnership models or the UN and Business are needed.

h- k up Un bu In response to this need, a working group was ormed to review the recent history o such part-

nerships, and to make recommendations or enhancing their eectiveness and scale. Under the

leadership o Unilever and the UN Global Compact oce, a Global Compact LEAD Task Force

was mobilized with the support o leading CEOs. The Task Force reviewed dozens o partnerships

representing a variety o geographies and sectors, and interviewed key stakeholders to better

understand the challenges and solutions needed to enhance partnership impact and to acilitate

increased engagement o businesses with the UN. New approaches and partnership models were

discussed and debated with business and UN leaders at global orums in Davos and Paris. The

outcome o these eorts is summarized in this report.

a c pp c cA range o partnership and social mobilization models are addressed in the report, rom philan-

thropic and strategic partnerships to broader issue-based networks and social movements. In par-

ticular, the report highlights the value o partnerships that have the capacity to transorm the ways

in which the UN, civil society, governments, and other stakeholders work with business to secure

sustained and rapid realization o development goals. Problems are addressed holistically, oten

across multiple sectors. Additionally, transormational partnerships leverage core competencies o

participants, and are designed or scale and sustained impact. As a result, these partnerships can


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deliver transormative impact across sectors and geographies, addressing both public and private

objectives through changes in policy, market structure, and/or social norms.

In practice, designing and implementing eective partnerships o any kind is raught with di-

culties. The ollowing our challenges in particular are addressed in more detail, with solutions

provided in Sections 4 and 5 o the report:

1.The UN and Business continue to mistrust each others motives or entering into partnerships2.Dierences in organizational culture and limited capacity on both sides have tended to result in

mismatched and unullled expectations

3. Lack o coherence at both the global and country level within the UN prevents Business rom

partnering eectively with UN entities

4. Insucient commitment to a concrete partnership governance structure, with a clear rame-

work or measuring outcome-based results

While these challenges must be addressed or all partnerships, transormational partnerships can

be more complex to develop and implement, necessitating a more eective platorm to catalyze

such endeavors.

P rcThe Task Force calls on UN and business leaders to take joint action to create an enabling environ-

ment where transormational partnerships can fourish. Specically, the Task Force proposes theollowing three recommendations to be taken together, corresponding to the stages o partnership

development rom exploration, to design, to implementation and evaluation:

1. C-c u cu j p, with Business-led solutions respond-

ing to clearly articulated UN priorities. We envision a model where Business competes and col-

laborates with other private sector players to respond to partnership requests rom the UN. To be

eective, this model requires:

Greater coherence on the part of the UN in liaising with business partners, with centralized points

o contact around specic thematic priorities (e.g., access to energy, ood security). To be eective

at country level, this needs to translate to a centralized approach on the ground as well, which

the centralized points o contact can help acilitate (potentially in collaboration with UN Resident

Coordinators in high priority geographies).

Involvement of the private sector at an earlier stage of ideation and development of solutions, al-

lowing Business to leverage its unique competencies and expertise more ully. Such involvement

can take place, or example, with the UN ormally soliciting proposals rom Business not only or

implementation o projects, but also or the primary design and development o partnerships to

deliver such projects. In addition to ormal solicitations, the centralized thematic leads can work

with other interested business partners to ensure all good ideas are considered.

A renewed emphasis by business partners to embrace UN and universal values as embodied in

the Global Compact. An explicit adherence to a common agenda ensures long term alignment

to shared objectives. Additionally, Business would ideally demonstrate long-term commitment

independent rom economic cycles.

d pp c u?

d pp ccpc p?

d pp ppp k?

d pp -ucpc c c pc?

reqUired CharaCteristiCs o transormational PartnershiPs


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2. cu ccu uc to oster a results-oriented culture, increase

transparency, and disseminate learnings. For example, an Accountability Scorecard with metrics

highlighting partnership outcomes (i.e., going beyond input metrics) should be used or all partner-

ships. Such a scorecard can build on existing best practices or monitoring partnership impact,while tailoring to suit the needs o UN-Business partnerships. In particular, the accountability and

monitoring scorecard will be used to spotlight eective partnership practices and correct or termi-

nate ineective ones.

3. Pp acc c p fc uc to

catalyze partnerships with transormational potential. For maximum impact, such a Facility should

be led by a senior level CEO caliber proessional a Special Envoy to Business, perhaps - with

signicant experience in the private sector, who also has deep understanding o and respect within

the UN system. The Facility will support the development o sound operating guidelines, including

governance, legal clearance, roles and responsibilities o partners, evaluation o impact, and brand

management. Through this process, the Facility would help build the skills and capacity necessary

or eective partnership management, both within UN entities and businesses. No such system-

wide entity exists today. Existing challenge or innovation unds can be used as potential models

to consider in ully developing such a Facility. To avoid additional bureaucracy, the Special Envoywould acilitate the involvement o key UN substantive leads ocused on the priority themes.

While some components o this proposed environment will result in new structures and processes

(and hopeully leverage existing ones), the resulting system is expected to provide simplicity and

improved coordination. Overall, we see these recommendations as having the potential to deliver

signicant impact in a easible and realistic manner.

t c The international community must act. The Secretary General has made clear his aith in the

transormational power o the UN partnering with Business to address shared priorities or sus-

tainable development. At the same time, business leaders have come together to oer recommen-

dations or how the UN and Business can work together more eectively. The potential or impact

is tremendous. The time to act is now. The UN and Business must take seriously their commitment

to orging this path to a shared uture together.


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2. t u p Un-bu pp

Though private companies and United Nations entities are clearly dierent kinds o organizations,in several important ways their goals are very much aligned. Leading businesses recognize that

social goals such as ood security, environmental sustainability, access to health and education, and

good governance are undamentally in their interests mitigating risk, developing new markets, and

cultivating sustainable relationships with customers and investors. In act, the goals set down in the

UN charter preservation o peace, respect or international law, and better living standards with

respect or universal values and principles are the same conditions that most businesses need to

serve their customers and investors. These overlapping areas o interest create opportunities or the

UN and Business to work together.

As leaders o the G20, World Economic Forum, and Global Ministerial Environmental Forum have

stated, solving global problems requires partnerships with holistic approaches involving the public,

private, and non-prot sectors. In orging such partnerships, the UN has unique capacities: no other

organization has the same convening power, credibility as a neutral broker, support rom member

governments, and deep knowledge o social and economic development, not to mention the UNsunique role as the upholder o shared values. By the same token, businesses can oer unmatched

technical expertise, capacity or implementation, infuence in shaping economic behaviors, resourc-

es, and the determination to deploy those resources when their interests are served.

To date, the ull potential o partnerships between Business and the UN has yet to be realized. A vari-

ety o challenges have stood in the way. Overcoming these challenges will require strengthening the

architecture whereby the UN and Business create partnerships, making the partnerships themselves

more eective, and evolving rom traditional structures to ones that are truly transormational.

These newer structures include multi-stakeholder partnerships as well as broader networks or

constellations o actors organized around complex systemic issues. Getting these newer types o

partnerships designed and implemented eectively is more challenging, though the potential or

transormational impact is high. To catalyze these transormational partnerships and networks we

propose a new way orward or UN and Business to work together and realize the ull potential o

collaboration.

2.1. a Un-bu ppPartnerships between UN entities and Business can take on a variety o dierent attributes. A p-

pc partnership is a discrete eort with an emphasis on public relations and nancial contri-

butions. An ppuc partnership is a program or action that brings short-term economic gain

and may leverage core competencies but in an ad hoc manner. A c partnership uses core

competencies to develop markets, products, and services deliberately, but is oten a two party agree-

ment and set within an existing system. A partnership is a multi-stakeholder

engagement that restructures the rules o the game to make markets work, improve the enabling

environment, and set global norms.

Exhibit 1 illustrates how various partnership types can be categorized based on their potential or

social impact and the complexity o the relationship needed to execute.

Partnerships between UN entities and businesses have so ar been mainly philanthropic or oppor-

tunistic in nature. They have oten ailed to leverage the core competencies o the organizations in-

volved, which is the hallmark o a strategic partnership. They have also engaged ewer stakeholders

than needed to address the worlds most pressing problems in a sustainable way, thus alling short

o transormational potential. These shortcomings stem mainly rom the undamental challenges

associated with any collaborative processbuilding trust, bridging cultures, and establishing clear

governance structures and operational guidelines.


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2.2. w k pp

t u , pp u c u. Solving

complex global development issues such as access to clean water or gender equality requires a

systemic change. Such a change could come rom eective enorcement o existing rules or the

institution o new rules, the correction o a market ailure, a shit in behavioral norms, or a combi-

nation thereo.

ec u u u can involve changing government proce-

dures, policies and/or regulations. In the case o new rules, this can also take the orm o changing

accepted industry standards. Changing the rules requires that a critical mass o players coordinate

to exert pressure on policy makers, or a coalition be built so that industry standards are adopted.

Cc k u oten implies altering the incentives o businesses, either by remov-

ing an obstacle to delivering essential goods or services (e.g., monopoly) or creating incentives or

curbing undesirable behavior (e.g., creating a market or carbon credits).

s can occur in two ways. For individuals, system-level change may

occur when large segments o the population independently decide to change their behavior (e.g.,hand-washing). Though it is oten dicult to engage the large disparate sets o individuals, pos-

sible awareness raising tools can be cause-related marketing (e.g., Product (RED)) or social-media

platorms. Note that changing individual behavior is typically only possible i the cost and benets

reside with the same individual. In cases where there the benets to change are spread out while

the costs to an individual rom changing behavior is prohibitively high, change cannot come about

without coordinated action (e.g., anti-corruption, nutrition).

In general, systemic change is impossible without the coordinated eorts o a wide variety o ac-

tors. To be most eective, the partnerships between these actors will have the ollowing attributes:

exhibit 1: transormational PartnershiPs in ContextTransormational partnerships create systemic change to benet societyat large- increasing overall scale and impact

MinimalIndividual

frm

System

Signicant Size o benetCp

scopeofimpact

Philanthropic

Opportunistic

Strategic

Transormational


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Involving all stakeholders who play a necessary role and pertain to the relevant geographies, and

not involving any who ail to meet these criteria. Partnerships seeking to address large scale sys-

temic issues need to incorporate relevant stakeholders across the UN system, private and public

service, academia, and civil society, either as primary partners or as advisors.

Leveraging the core competencies of all partners such as convening power, resources, local pres-

ence, technical expertise, or distribution network, etc., to address the systemic issue across the

value chain.

Built-in capacity to reach scale and leave a lasting impact whether as part o a xed-length proj-

ect or an ongoing, viable business model. Many systemic issues span multiple geographies and

require long term eorts towards instituting new policies and rules, correcting market ailures,

and shiting behavioral norms. As such, scale and sustained impact is critical to achieve these

results.

transormational attribUte in aCtion:

involving all staKeholders who Play a neCessary roleOxford Health Alliance (OxHA)

Dedicated to preventing and reducing the global impact o epidemic chronicdisease by addressing tobacco use, physical inactivity, and poor diet.

Launched by Novo Nordisk, the World Health Organization, and the Universityo Oxord, OxHA serves as a platorm or communication and collaborationamong experts and activists rom a wide range o disciplines. Originating as adiscussion around diabetes, OxHA grew in scope and network, and now acili-tates the Global Alliance or Chronic Disease (GACD).

..

d pp c u?

Systemic issues are dened as fundamentalmarket or governance ailures that can only beaddressed in an integrated manner, e.g., ad-dressing malnutrition requires interventions inprovision o ood, sanitation, education, etc.

d pp ccpc p?

Partnership leverages core competencies andskills o all partners to address the systemicissues across multiple sectors (i.e., across allrelevant value chains)

d pp ppp k?

Involves key partners in the UN system,private and public sectors, and in relevantgeographies

d pp -ucpc c c pc?

Incentives and funding are designed to drivepartnership scale and sustained impact (i.e.,partnership is designed to be scaled up, aslong as it is demonstrating intended results)

reqUired CharaCteristiCs o transormational PartnershiPs


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transormational attribUte in aCtion:

leveraging the Core ComPetenCies o all PartnersJogos Limpos / Clean Games

Promoting greater transparency and integrity o public spending procured to hostthe 2014 World Cup and the 2016 Summer Olympics in Brazil, through a collectiveaction platorm.

With nancial support rom Siemens Integrity Initiative, this project is coordi-nated by Instituto Ethos serving as Secretariat. The UN Global Compact and UNOce on Drugs and Crime bring their convening power and international expertise.Businesses and Brazilian politicians are asked to ght against bribery and cor-ruption through voluntary pacts. The project releases transparency indicators socitizens, civil society, and transparency organizations can monitor ethical conduct

o the games.

.jp..


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2.3. t ucu ppThere is not just one model or structure or a transormational partnership; rather, there is a spec-

trum o structures that can be tailored to the needs o the partnership. Exhibit 2 depicts illustrative

examples o the range o possible partnership structures.

e 2: spcu pp

Spectrum o transormational partnerships composed o various partners

At one end o the spectrum are partnerships with a discrete number o partners ormally committed to

the partnerships through a signed memorandum o understanding or contract with ormalized gover-

nance. These transormational partnerships are oriented around tasks, with clear roles and responsi-

bilities assigned to each partner and measures or accountability. Building these partnerships between

the UN and Business requires aligning incentives with both internal and external stakeholders and

ensuring operational excellence with adequate resourcing, governance, and structure built or scale.

For additional inormation on how to build eective partnerships, please reer to the accompanying

guide to this report, " Partnership Fundamentals: A 10-step guide or creating eective UN-Business

partnerships".

On the other end o the spectrum are network constructs, which are more loosely organized and

broadly inclusive. These social movements or issue-based networks (e.g., global action networks)

are ormed when stakeholders join together to develop solutions or a common cause. The part-

ners in these networks can be individual businesses or non-governmental organizations, as well

as other networks. For example, the Forest Stewardship Council, itsel a network dedicated to

sustainable orestry management, is part o ISEAL Alliance, which is a global association or so-

cial and environmental standards. The partners in these networks interact with varying degrees o

intensity and connectedness, and typically accountability to the partnership is on a voluntary basis

only, without ormalized contracts in place. Many o these transormational partnerships evolved

rom what historically have been networks ormed or dialogue and learning, rather than action. To-

day, however, more and more o these networks have expressly made social change a goal or the

partnership. These partnerships achieve transormative change by drawing on the network eect

o various actors, collaborating to reach a tipping point o social change.

mu-k cuc Discrete number of partners Typically more formalized gover-

nance and accountability measures

nk cuc More inclusive and broader

set o partners Typically less formalized gover-

nance and accountability measures

United Nations Academia Business Civil society Government General public/end consumers


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3. t pp pcc

Though some are in their early stages, a ew partnerships involving UN entities and the privatesector have already demonstrated transormative potential and results. These are refective o

movements where the UN has acted as a credible platorm or industry players to converge their

technical expertise or market clout. Below are short case studies o partnerships that are seeking

to address systemic issues through the institution o new rules, the correction o a market ailure,

or a shit in behavioral norms.

3.1. iu u: r, nu!Combating climate change and ozone layer depletion by substituting harmul fuorinated gases

with natural rerigerants.

Systemic issue addressed: Climate change and ozone layer depletion resulting from industry and

regulatory practices within industries requiring rerigeration technology.

Necessary stakeholders involved: Businesses committed to switching to natural refrigerant tech-nologies over a set timeline, and involving other stakeholders such as their wider supply chain,

industry peer groups, and policy makers by sharing technical inormation and results.

Core competencies leveraged: Large Consumer Packaged Goods (CPG) member companies

have market clout and technical expertise to change market standards and encourage other

companies to join the coalition. UNEP and Greenpeace provide advocacy and convening power to

promote the initiative and attract additional partners.

Capacity for scale and lasting impact: Concerned stakeholders agree to new changes in refrigera-

tion technologies. To date, Unilever has placed more than 400,000 hydrocarbon-based ice cream

cabinets throughout Europe, Latin America, and Asia, while Coca-Cola and PepsiCo have installed

about 300,000 bottle vending machines in the same regions, operating with either CO2 or Hydro-

carbon as the rerigerant.

.u.c


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3.2. Cc k u: g ac C CkPoverty reduction and improved health rom increased access to clean energy and reduction o

harmul indoor air pollution.

Systemic issue addressed: Respiratory diseases and high energy costs in households resulting

rom the use o polluting, inecient cooking practices.

Necessary stakeholders involved: The UN Foundation, the World Health Organization, Shell, the

Shell Foundation, Morgan Stanley, Impact Carbon, and other governments, implementing organi-

zations, and donors necessary or the partnership.

Core competencies leveraged: The UN Foundation used its convening and brokering capacity to

convene partners and raise unds or the eort. Shell is using its knowledge o energy markets

to assess the demand or clean cookstoves in several developing countries. Morgan Stanley and

Impact Carbon are exploring ways to subsidize the cost o cookstoves through carbon credits

generated by the reduction in pollution that results rom their use.

Capacity for scale and lasting impact: Through a combination of information sharing, consumer

marketing, and nancing mechanisms or aordability, the Alliance aims to create a sel-sustain-

ing market or 100 million clean cookstoves worldwide.

.cck.


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3.3. s : Pjc l b

Eradicating child malnutrition by addressing interventions in ood, hygiene, and behavioral change.

Systemic issue addressed: Child malnutrition as the cause of all deaths of children under ve

years o age.

Necessary stakeholders involved: Brings together UN entities with Fortune 500 companies,

amongst other stakeholders, to work on integrated solutions to child malnutrition solutions

across ood, hygiene, and behavioral change. Project Laser Beam is currently conducting 5-year

pilot programs in Indonesia and Bangladesh, leveraging local governments and companies to

deliver these locally-ocused solutions.

Core competencies: The UN has convening power, experience, and access into difcult territories,

which oten prove to be the most challenging new markets. Private sector partners have the

nutritional expertise, supply chain, and capacity or in-country presence to eectively implement

interventions.

Capacity for scale and lasting impact: Interventions are designed to change market dynamics

and consumer behavior. The partnership aims to include more private and public sector actors.

Additionally, Project Laser Beams pilot programs in Bangladesh and Indonesia will be replicableacross geographies.

.p./


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4. s Un-bu pp

In the context o the UN Private Sector Forum, the Secretary General has the opportunity to giveall UN agencies, unds and programmes a clear mandate to work with private sector companies

as necessary partners in the next wave o transormational change. Partnerships involving UN

entities and private companies have aced several recurring challenges, and overcoming them will

be the key to success across all the levels o the hierarchy described in Chapter 2. The ollowing

are some o the most pressing issues and proposals or how they might be addressed. For more

specic steps in the creation o strong partnerships, please reer to "Partnership Fundamentals: A

10-step guide or creating eective UN-Business partnerships".

4.1. bu uOne o the most pressing among these issues is that the UN and Business continue to mistrust

each others motives or entering into partnerships. The dominant UN culture is skeptical o using

markets or harnessing commercial interests as solutions to development challenges. UN entities

may question i there are ulterior prot or publicity motives or businesses interested in entering

into a partnership. And despite the clear benets to be gained rom partnering with the privatesector, there is constant concern about going too ar with private sector partnerships. Companies,

on the other hand, perceive the UN as seeking them out only or donations rather than as partners

in the truest sense o the word. Businesses may resent being asked to und ully-ormed ideas,

without having a hand in originating, developing, or implementing the solution.

To overcome this mistrust, both sides must recognize the incentives inherent to each party. The UN

needs to embrace that the private sector requires a viable long-term business case or sustained

partnership. Engagements that are purely philanthropic are oten dependent on the generosity o

internal champions and risk unpredictable unding fows. Conversely, a well-ormulated business

case or entering into partnerships with the UN is likely to improve the odds o sustained unding.

The UN could make clearer to Business the necessity or partnering and recognizing overlapping

interests. Furthermore, Business can improve relations by demonstrating commitment to UN

values in order to position itsel as a partner with shared priorities.

It should be noted that the UN and Business have already taken concrete steps to build trust and

have a history o working together. In particular, the UN Private Sector Forum is one concrete

example o how both sides have come together to address shared priorities, in this year's case a

shared interest in expanding access to sustainable energy or all.

4.2. bu cpc cuu cIn addition to the lack o trust, cultural dierences have tended to result in mismatched expecta-

tions regarding the pace and operationalization o UN-Business partnerships. Companies are

accountable to their shareholders and operate on quarterly and yearly reporting cycles. In tackling

global development issues, the UN typically has a much longer term horizon, and does not eel

bound to business cycles. Crating multi-stakeholder solutions to social issues is challenging, and

while the pay-os may be immense, they may also come at a much longer time horizon than com-

panies are traditionally comortable with.

An attitude change is also required by both UN and Business to bridge the gap in terms o the

amount o eort and time that go into partnerships, and the pay-o that should be expected

rom them. Both sides must commit dedicated sta resources, oten with technical expertise, to

manage and execute the partnership. Additionally, both sides must strive to create opportunities

or cross-sector exposure, such as testing out partnerships with pilot phases to rst understand

respective working styles, creating volunteer and exchange programs, and modiying hiring prac-

tices to emphasize cross-sector experience in liaison roles. Furthermore, both sides must strive to

build capacity through partnership skills training (e.g., in-house seminars that could be sponsored

by universities or corporations) that revolve around the principles o understanding incentives,

governance, and other partnership undamentals described in this report.

Un PrivateseCtor orUm

The UN Private SectorForum itsel is a major in-novation. The Secretary-General convenes thePrivate Sector Forum onan annual basis on theoccasion o the GeneralAssembly debate so thevoice o the privatesector can contributeto inter-governmentalnegotiations on key topicareas. As the primaryUN platorm or businessleaders and public policymakers, the Forum wasdesigned to bring thepublic and private sectorstogether to inspire urtherindividual and collectivecommitments by busi-ness. The 2011 Forumsocus on private sectorinput into the UN Secre-tary Generals strategyon Sustainable Energyor All will lead-up to theRio+20 - United NationsConerence on Sustain-able Development.www.unglobalcompact.org/Issues/Business_Partnerships

United nations

Private seCtor

forUm 2011


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Coordination throUgh global thematiC leadScaling Up Nutrition (SUN) Movement

Governments, civil society groups, businesses, researchers, international organizations, developmentpartners (including banks, oundations, and donor agencies) are joining the SUN Movement to create condi-tions or accelerated and sustained improvements in nutrition - in particular, maternal and child nutritionduring the critical period between pregnancy and age two. The core o the SUN Movement is a ramework- endorsed by over 100 stakeholders - that countries can adopt or improving national nutrition.

With its integrated UN partnership platorm that supports the Movement, SUN exemplies the idea oa central thematic lead urther expanded in Section 5. A stewardship team, chaired by a Special Rep-resentative o the UN Secretary General, coordinates action among governments, UN entities such asFAO, WFP, WHO and UNICEF, and other stakeholders. Working through a country reerence group andseveral task orces, this team creates conditions needed or the Movements multiple actors to work insynergy, back high quality country-led plans, and converge towards agreed results.

.cupu.

attribUte in aCtion: bridging CUltUral dierenCes

Skills for Success

Among other programs run jointly with UNDP Ukraine, Skills or Success helps chil-dren and adults develop skills in Inormation and Communications Technology (ICT),problem solving, and project management.

As rst time partners, Intel and UNDP partnered to enhance the education curriculumin Ukraine with a ocus on ICT, problem solving, and project management. Target-ing both teachers or curriculum training and students or education modules, thepartnership began with a 1.5 year pilot phase that limited engagement to co-undingseminars. This crucial period built trust and allowed or each partner to appreciate andrecognize their complementary skill sets.

.up..u

4.3. d Equally important, the lack o coherence at both global and country levels within the UN prevents

Business rom partnering eectively with UN entities, i at all. Although the issue o system-widecoherence has received much attention in recent years, and great progress has been made on One

UN and Delivering as One, there is still much room or improvement in the way UN entities live

up to the ideals in practice. At the country level, businesses who wish to partner with the UN nd

themselves acting as their own coordinator or UN entities, putting signicant time and eort into

understanding who is in charge o what, and aligning the various UN entities towards the goals o a

potential partnership. Businesses view this as a time consuming task that is not their responsibility,

and it is a signicant deterrent or partnering with the UN. Lack o coherence at the global level is

also detrimental to the UN in that when UN agencies, unds and programmes directly compete with

one another, businesses respond by shopping around dierent UN entities to nd the best deal,

rather than the best partner. It is critical that the UN create a more eective enabling partnership

platorm or interacing with the private sector. As will be elaborated below, such a partnership

platorm should include issue-based or thematic leads who can coordinate across the various UN

entities that address a particular issue or theme. Various models already existing include that o a

Special Representative who leads ood security and nutrition through the Scaling Up Nutrition (SUN)Initiative, or the UN Global Compact, which serves as a conduit through which the private sector can

adopt UN principles.

* Intel and the Intel logo are trademarks o Intel Corporation in the U.S. and other countries.

*


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5. rc pp

The Task Force recommends three primary recommendations across the partnership liecycle that

will create the necessary platorm or collaborations to become transormational.

1) C-c u u j pTo serve as a more eective interace with Business, the UN needs to build on the One UN con-

cept and emphasize coherence in strategy, structure, and implementation both at the global and

local level when orging partnerships with Business.

e c Un g tc l

An optimal structure or partnering with Business could take the orm o centralized UN points

o contact representing 3-5 o the Secretary Generals thematic priorities. These leads would

work across the UN system and also coordinate with country level UN Resident Coordinators in

countries relevant to the priorities. In creating these Global Thematic Leads, existing centralized

people/structures should be leveraged to minimize additional bureaucracy.

g tc l c pp bu

pp u

Leads would be responsible or raming addressable systemic global problems in the context o

relevant countries or which issues are a priority, and would invite proposals rom the private sec-

tor to co-create solutions. Leads would be empowered to work with business partners to identiy

partnership solutions through ormal solicitations, but should not be limited to such ormal chan-

nels alone in order to allow all high-impact solutions to be considered. Furthermore, existing struc-

tures and systems, such as the website business.un.org, can be leveraged to simpliy this process.

Companies with the highest potential impact would be selected to jointly discuss possible partner-

ships. Involvement by Business at an earlier stage o ideation and development o solutions will

allow Business to contribute more ully and to leverage its unique competencies and expertise.

The Global Thematic Leads would also enhance UN coherence by serving as matchmakers to

convene suitable companies and UN entities at both global and local levels.

a uf Un pp u p

The merits o a single overarching partnership brand and logo or private sector partnerships

should be explored. A unied brand would replace a system that is oten described as individual

UN entities and brands competing or unding rom the private sector. Advantages o a single part-

nership brand include:

exPloration

Co-creation o solutions

around joint priorities

design and

negotiation

Partnership Accelerator

Facility

imPlementation

Focus on accountability

or outcomes


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Facilitating matchmaking to ensure the most appropriate UN entities are represented a single

partnership brand would reduce competition and incentivize the various UN entities to seek out

the most suitable partnerships or the best interests o the UN as a whole.

Mitigating UN reputation risk reputation risk could be mitigated (or at least be conned to asingle brand) by co-branding and sharing a unied logo or initiatives. The UN process o conduct-

ing due diligence around partner selection can also be harmonized under a single brand.

Embodying UN values a separately managed partnership brand would stand or UN values and

requirements (e.g., by ensuring that potential business partners maintain a demonstrable adher-

ence to UN values, building upon the UNs Guidelines on Cooperation between the UN and the

Business Sector).

Communicating the UNs unity and commitment to partnership the brand makes it clear to

Business and other partners that the UN embraces partnerships and is committed to investing in

them.

Additional consideration must be made to determine the exact brand positioning, and other details/

costs associated with the establishment o a new brand. One approach may be to establish an

over-arching unied partnership brand that can exist in parallel with individual UN entity brands,

many o which have their own distinct branding and brand equity that may be important to main-tain separately.

2) cu ccu ucUN and Business partners should look to create a culture o accountability in the partnership by

institutionalizing a results- and outcome-based monitoring and evaluation ramework. This involves

going beyond the measurement o inputs (e.g., number o children ed) to measuring progress

towards outcomes (e.g., impact on malnutrition). Transparency around the results is also a critical

element o true accountability. One way to accomplish this objective is to implement a Partnership

Scorecard, which would serve as an accountability and transparency tool that measures:

Partnership strength alignment with UN priorities, business case, participation among stake-

holders, etc.

Performance and impact tracking outputs, key perormance indicators (KPIs) measuring part-

nership impact, and the responsiveness and accountability or missed targets Momentum around sustained impact and scale unding, ability to attract new partners, poten-

tial or sustained impact once partnership has ended, etc.

As mentioned earlier, this accountability mechanism would also serve as a transparency and

learning tool or other partnerships by publicizing (e.g., on a visible public portal such as the UNs

business.un.org website or newsletters) both best practices and missteps, and creating a basis or

altering or terminating the partnership i results are not realized. Such scorecards can be adapted

and used more broadly or other partnerships in the UN system.

3) Pp acc cTo support high-potential proposals, a new Partnership Accelerator Facility will oer advisory,

training, legal, and nancing services to UN and Business in order to catalyze the ormalization o

partnerships and ensure the development and implementation o proper operational guidelines.

No such system-wide entity exists today. For maximum impact, such a Facility should be led by a

senior level CEO caliber proessional with signicant experience in the private sector, and with

deep understanding o and respect within the UN system. Ideally, this leader will serve in a capac-

ity similar to a Special Envoy to Business, perhaps reporting directly to the Secretary General.


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Services provided by the Facility will include:

A partnership advisory team comprised o experienced legal, consulting, and accounting proes-

sionals to streamline processes and lower transaction costs. This team would be deployed or alimited time (~3 months) to assist in designing a governance structure, contracts, milestones, and

a monitoring and evaluation system.

Training provided by the advisory team to develop tangible partnership skills (e.g., negotiation,

communication, governance design), primarily supporting UN participants.

Seed funding for the partnership pilot phases. To demonstrate support or more eective and

transormational partnerships, companies, member states and (where possible) the UN initiat-

ing units should contribute to this und. As an example o how corporations can contribute, one

model that could be replicated is the membership structure o Global Compact LEAD participant

businesses. Existing challenge or innovation unds can be used as potential models to con-

sider in ully developing such a Facility, with co-unding rom the UN initiating unit.

Once ormalized, operational guidelines can be made available to be used more broadly across the

UN where appropriate.

The exact structure and unding details or this Facility remain to be nalized, pending agreement

and approval to move ahead.


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6. t

We are at a unique infection point where we can look back at the recent history o UN-Businesspartnerships. We can refect with some pride on past successes, but must also recognize that not

all eorts have delivered results. The Secretary General has made clear his aith in the transor-

mational power o the UN working with Business as a true partner to address shared priorities or

sustainable development. At the same time, leading CEOs in the business community have come

together to oer recommendations or how the UN and business can work together more eec-

tively. The potential or impact is tremendous, and we call on the UN and business communities to

renew their commitments to orging this path together. The time is now to act and make transor-

mational partnerships o all orms a more requent reality.

Both the UN and Business must continue to play an active role. The world looks to the UN to iden-

tiy the global development priorities, and the UN with its global reach is well suited to determine

the root causes o complex multi-aceted issues. The UN can use its brand to convene the neces-

sary stakeholders to co-create bottom-up solutions that tackle multiple aspects o development

priorities. Beyond convening business, civil society, and government to co-create solutions, the UNcan also play a lead role in encouraging partnerships and collaboration amongst these stakehold-

ers. Businesses should expect to contribute their expertise and resources to those transormation-

al partnerships that will serve to contribute to their long-term protability. Businesses oten have

a deeper geographic presence in terms o people and acilities than many other stakeholders. UN

entities as well as other stakeholders should leverage this knowledge o the local context so that

the solutions developed are grounded and have bigger impact. Furthermore, when the payo is

attractive, businesses have the resources and the determination to deploy those resources quickly,

to bring about change. System-wide changes oten have large payos attached, however Business

should also recognize that these payos come over a longer period o time, and must be willing

to sacrice short term gain or longer term benet. This may require a change in the way value is

calculated or Business.

Transormational partnerships are an exciting and relatively new space or collaboration.

Throughout this report we have highlighted some examples o UN-Business partnerships striv-ing to make a dierence, and have suggested a path orward to making such partnerships more

eective and transormational. Models o partnership are continually evolving rom more static

orums or dialogue to more dynamic action networks. At the same time, these networks are

themselves becoming more inclusive and sophisticated in their approach and methods employed

to drive massive change. There is much productive innovation in these areas, coming rom both

the public and private sectors. We hope that the recent attention on making UN-Business part-

nerships more eective will continue to drive innovation and experimentation with new partner-

ship models in the uture.


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24

a) Pcp : d 2011 m g Cpc

lead tk c Un-bu PpWe appreciate the time and insights oered by the ollowing individuals who attended

a meeting in Davos in January 2011 to share their thoughts on the initial set o challenges

identied, as well as potential recommendations to address those challenges.

7. a

bu

Accenture Mr. Mark Foster Group Chie ExecutiveGlobal Markets andManagement Consulting

Acciona Mr. J. Joaquin Mollinedo Chocano Chie Innovation & Sustainability Ocer

Intel Corp. Mr. Arvind Sodhani President, Intel Capital & EVP, Intel Corp.

KPMG International Lord Michael Hastings Global Head o Citizenship and Diversity

Novo Nordisk Ms. Lise Kingo Executive Vice-President & Chie o Sta

Teleonica (TBC) Mr. Luis Abril Perez General Technical Secretary or the Chairmans Oce

The Coca Cola Company Ms. Dominique Reiniche President, Europe Group

TNT Express Ms. Rose Verdurmen Director, Moving the World

Unilever Mr. Paul Polman Chie Executive Ocer

U n

United Nations Dr. David Nabarro Special Representative to the Secretary-Generalon Food Security

United Nations DevelopmentProgramme (UNDP)

Ms. Helen Clark Administrator

United Nations Educational, Sci-entic and Cultural Organization(UNESCO)

Ms. Irina Bokova Director-General

United Nations Foundation (UNF) Mr. Timothy Wirth President

United Nations Global CompactOce (UNGC)

Mr. Georg Kell Executive Director

UN HABITAT Mr. George Deikun Senior Policy & Programming Adviser

United Nations High Commissioneror Reugees (UNHCR)

Mr. Alexander Aleiniko Deputy High Commissioner

UN Women Ms. Michelle Bachelet Executive Director

World Food Programme (WFP) Ms. Josette Sheeran Executive Director

World Health Organization (WHO) Dr. Margaret Chan Director-General


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25

ep

Dalberg Global Development Advisors Ms. Sonila Cook Partner

Dalberg Global Development Advisors Ms. Christin Hokenstad Project Leader

Harvard University Ms. Jane Nelson Senior Fellow and Director o Corporate SocialResponsibility Initiative

World Economic Forum Mr. Robert Greenhill Managing Director

accp a - bu

Accenture Mr. Peter Lacy Managing Director, Sustainability Services

Acciona Mr. Juan Ramon SilvaFerrada

Area General Manager Sustainability

The Coca Cola Company Mr. Kelly Brooks Director, Stakeholder Relations

DSM Mr. Fokko Wientjes Sustainability Director

Unilever Ms. Patricia OHayer Vice President Communications

Unilever Mr. Miguel Pestana Vice President Global External Aairs

accp a - U n


Mr. Ole Lund Hansen Senior Adviser


Mr. Gavin Power Deputy Director

United Nations High Commissioner orReugees (UNHCR)

Mr. Olivier Delarue Senior Corporate Relations Ocer

United Nations High Commissioner orReugees (UNHCR)

Ms. Amanda Sellet Head o Private Sector Fundraising

World Food Programme (WFP) Ms. Monica Marshall Private Donor Relations

World Food Programme (WFP) Ms. Nancy Roman Director o Communications, Public Policy & PrivatePartnerships

World Health Organization (WHO) Dr. Ian Smith Adviser to the Director-General


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26

b) iWe would also like to thank the ollowing individuals or providing valuable input along the way:

bUsiness

accuGib BullochPeter LacyIan LoboMorgana Ryan

accJuan Ramon SilvaFerrada

basKatharina Felgenhauer

t Cc-CCpAzaal MalikKelly BrooksSalvatore Gabola

dsmFokko WientjesGlaxoSmithKlineJon Ponder

g Puc Pc iuWade HoxtellKristina Thomsen

iRichard Hall

Tatiana Nanaieva

KPmgRichard Hamilton

KPerry Yeatman

nnkSusanne StormerBo Wesley

sAndrew VickersKaren Westley

tcBelen Izquierdosans

tntRose Verdurmen

UMiguel PestanaPatricia OHayerMarti-Van Liere

Un / ngos

g ac ip nu (gain)Susan Simmons LagreauBirgit Poniatowski

Un spc rp scu nuDavid Nabarro

Un uLeslie Cordes

Un-habitatChristine Auclair

UndPCasper SonessonElena Panova

UniCeNichole Brown

UnidoBarbara Kreissler

UnidoRana Fakhoury

wPMonica MarshallIsabel BurchardPeter FrenchSharon RiggleTanuja Rastogi

whoDerek Yach(currently at PepsiCo)

exPerts

h UJane Nelson


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ack

We wish to acknowledge the tremendous support, input, and assistance o

many individuals and organizations whose contributions have made it possible

to create "Catalyzing Transormational Partnerships between the United Nations

and Business."

Through the course o developing this report, a number o individuals rom the

UN, Business, and academia have provided valuable input regarding the chal-

lenges aecting partnerships today as well as recommendations to address

those challenges. First and oremost, we are indebted to Patricia OHayer and

Miguel Pestana o Unilever, Jane Nelson rom Harvard University, as well as the

other members o the Global Compact LEAD Task Force on UN-Business Part-

nerships: Gib Bulloch rom Accenture; Juan Ramon Silva Ferrada rom Acciona;

Katharina Felgenhauer rom BASF; Kelly Brooks rom Coca Cola; Fokko Wientjesrom DSM; Chris Strutt rom GlaxoSmithKline; Richard Hall rom Intel; Richard

Hamilton rom KPMG; Susanne Stormer rom NovoNordisk; Andrew Vickers rom

Shell; Belen Izquierdosans rom Teleonica; and Rose Verdurmen rom TNT. We

appreciate their commitment and availability, and more importantly their sincere

interest and guidance to advance partnerships between the UN and Business.

We are also grateul to the interviewees, Davos meeting participants, and UN

private sector ocal points who lent valuable time and insight along the way.

The development o this report was much dependent on the hard work o Melissa

Powell rom the UN Global Compact Oce, as well as Dalbergs Sonila Cook,

Oren Ahoobim, Lisa Lee, Albert Chi, Daniel Altman, Christin Hokenstad, Lorenzo

Bernasconi, John Stephenson, Wouter Deelder, and Mark Wang. Special thanks go

to Ole Hansen, Sean Cruse and Charlotte Biering o UN Global Compact, as well

as Tannaz Fassihi or her work on the design o this report.

The results o this endeavor are our responsibility but the work could not be com-

pleted without the help o so many. Any imbalances, insuciencies, or unintended

mistakes in the presentations, ndings and comments expressed herein above

should be ascribed to us.

PHOTO CREDITS:

Cover: istockphoto

Page 4 iStockphoto/Yuri_Arcurs

Page 12 UN Photo/Sharee Sarhan

Page 14 iStockphoto/sjlocke

Page 15 UN Photo/Sophia Paris

Page 16 UN Photo/Martine Perret

Page 19 World Bank/Gennadiy Ratushenko


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HUMAN RIGHTS

Businesses should support and respect the protection o

internationally proclaimed human rights; andmake sure that they are not complicit in human rights abuses.

LABOUR

Businesses should uphold the reedom o association and the

eective recognition o the right to collective bargaining;the elimination o all orms o orced and compulsory labour;

the eective abolition o child labour; andthe elimination o discrimination in respect o employment

and occupation.

ENVIRONMENT

Businesses should support a precautionary approach toenvironmental challenges;

undertake initiatives to promote greater environmentalresponsibility; andencourage the development and diusion o

environmentally riendly technologies.

ANTI-CORRUPTION

Businesses should work against corruption in all its orms,

including extortion and bribery.

Principle 1

Principle 2

Principle 3

Principle 4

Principle 5Principle 6

Principle 7

Principle 8

Principle 9

Principle 10

The Ten Principles o theUnited Nations Global Compact

Published by the UN Global Compact Oce

Documents

Catalyzing Transformational Partnerships