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CSR Impact Assessment: Public-Private Partnerships

CSR Impact Assessment: Public-Private Partnerships. 20 September 2010. Overview. Presentation of our guest (in absentia ..) (Brief) Summary 1st lecture Case Exercise: Impact Assessment of PPPs Kasur Tanneries Pollution Control Project CSR Impact Assessment Public-Private Partnerships.

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CSR Impact Assessment: Public-Private Partnerships

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  1. CSR Impact Assessment: Public-Private Partnerships 20 September 2010

  2. Overview • Presentation of our guest (in absentia ..) • (Brief) Summary 1st lecture • Case Exercise: • Impact Assessment of PPPs • Kasur Tanneries Pollution Control Project • CSR Impact Assessment • Public-Private Partnerships

  3. Presentation of our guest • Janni Thursgaard Pedersen, PhD scholar at CBS’ Center for Corporate Social Responsibility (email: jtp.ikl@cbs.dk) • Participation in projects at cbsCSR: • CSR communication in a Danish context (www.kommunikationskompasset.dk) • CSR reporting in Denmark - statutory requirements (§99a) • NGO-business partnerships in a Danish context: prevalence, drivers and barriers. • PhD with focus on NGO-business partnerships: • Focus on strategic CSR partnerships: how they emerge and evolve • A case study: • FDB: ethical trade projects with NGOs • Grundfos: BOP market development in collaboration with an NGO • Discrepancy between ideals and reality? Can strategic intent be translated into strategic outcomes for the partners involved?

  4. Course Outline • Structure • Overview: CSR in Development 2010 • Cross-Cutting Themes • Impact Assessment • Participation • Current Topics • Codes of Conduct, Ethical Trading, SMEs, GVCs • Clothing & Football Industry Focus • Summary & Integration • Future Research, Policy & Practice Challenges

  5. Summary • What is CSR? • What is Development? • Neo-Liberal Approach • Human Face Approach • Capability Approach • Social Power Approach

  6. What is CSR? • ”CSR is concerned with treating the stakeholders of the firm ethically or in a socially responsible manner. Stakeholders exist both within the firm and outside. The aim of social responsibility is to create higher and higher standards of living, while preserving the profitability of the corporate, for its stakeholders both within and outside the corporation” Hopkins 2006, p. 9

  7. What is CSR? Mainstream Perspective Greenwash Bluewash Cultural Imposition

  8. What is Development?

  9. Case of Kasur Tanneries • Cluster of 237 Tanneries in Punjab Province • Less than 10% Large • Finished leather, exports • More than 200 Small Tanneries • Wetblue leather for Sialkot and Korangi • 10.000 Workers, 50.000 Dependents • Little education, outdated technology, limited knowledge of demand side • 1980s/early 1990s – Dramatic Growth • Severe Environmental Pollution, 400 Acres of Stagnant Pools, Toxic Waste Accumulating, People Dying Like Flies

  10. Case of Kasur Cluster • Pollution Control Project • 1996 – UNDP/UNIDO, Kasur Tanneries Association, Various Tiers of Pakistani Government • PPP - Kasur Tanneries Waste Management Agency • Rupees – 220 million, 2006/7 - Association Manages and Pays Running Costs of the Plant • Objective - Reduce pollution • Pre-treatment waste water plant • Solid Waste Collection plus Disposal • Evacuate Stagnant Pools • OHS Training

  11. OECD-DAC Criteria • Relevance: Is the PPP in line with Donor and Local Priorities and Needs? • Effectiveness: To Which Extent Have the Formal Objectives Been Met? • Efficiency: To Which Degree Have the Outputs Derived From Efficient Use of Resources • Impact: What have been the Positive and Negative Consequences of the PPP, Whether Expected or Not • Sustainability: Are Positive Impacts Likely to Continue After External Assistance Has Ended?

  12. Assessing the Kasur Project • Relevance • Pollution Control – Highly Relevant • However • Impact on Economic Cluster Development (Competitivess)? • Level Playing Field? • Lack of Integration into Core Business Practices • Environment Seen As Cost by Tanners • Effectiveness • Treatment Plant/Solid Waste System Functioning • Stagnant Pools Evacuated

  13. Assessing the Kasur Project • Effectiveness • OHS No Effect • Efficiency • Highly Inefficient • Resources Budget Doubled to 400 plus million rupees • Time – 1983 – First Conceived, Project Finished 2005 • Why Inefficient? • Government and Donor Turf Wars, Redtape • Local Political Resistance • Struggle over Cost Distribution

  14. Assessing the the Kasur Project • Impact • Positive Environment Results, Yet New Environmental Risk Created • Economic Development Neglected • Downturn in Industry • Lack of attention to quality, Sialkot Tanners Source Elsewhere • Most smaller tanneries – 2- 6 months a year • 1996 Challenge – Plant Needed to Save Cluster • 2006 Challenge – Develop Cluster to Save Plant

  15. Evaluating Kasur Project • Sustainability 2010? • Economic Downturn - Eventual Closure of Tanneries • Big White Elephant Plant – 400 million rupees wasted • Loss of Livelihoods for app. 50.000 people • Alternative Employment in Kasur?

  16. Recommendations • Integrate Economic, Social and Environmental Development of Cluster to Secure Livelihoods and Well-being of 50.000 people • Integrated Cluster Development Program • Upgradation of Production Proces, Leather Quality, and Marketing of 30-40 tanneries • Upgradation of Production Process includes OHS Training and Introduction of Cleaner Technologies • Use of 1 cluster development agent, cost 14 million rupees

  17. CSR Impact Assessment • We Know Little About Impacts • Focus on Policies, Not Social Impacts • Legitimacy? Attribution? Scale? (Hamann 2007) • What We Do Know Is That • CSR is Not Widespread! • CSR is Not Challenge: Legal Compliance Is! • CSR initiatives work for some firms, in some places, in tackling some issues, some of the time” (Newell 2006).

  18. PPP Impact Assessment • Why PPPs? (Utting & Zammit 2009) • Institutional Reform • Changing Fortunes • Corporate Globalization • Struggle for Hegemony • Rise of Private Authority (Witte & Reinicke 2005) • Opening UN to nonstate actors • Business and NGOs

  19. PPP Impact Assessment • Sustainability and Impact (W&R 2005) • Strength of Partnership Management • Local Ownership • Impact Assessment • Strategy Development, Resource Allocation • Learning, Accountability Purposes • Not Systematic, Comparative IA

  20. PPP Impact Assessment • Assumptions (L-T 2009) • Interest in Knowing Effects • Truth Out There To Be Discovered • We Can Discover the Truth • Will Generate More Comparative Evidence • Politics of Assessing Impact • Whose interests do PPP IAs serve? • IAs: Story to Written, Negotiation/Resistance

  21. PPP Impact Assessment • Politics of IA • Issues/Voices Included or Excluded? • Context Specificity • IA Criteria (U+Z 2009) • Functional Selectivity • Policy Coherence

  22. Next Session (Week 39) • Participation in CSR • Participatory Approach to IA (Mayoux and Chambers 2006) • Structural Conditions (Omeje 2009) • Stakeholder Participation • Wheeler et al. 2002: Potential, Limitations, Impact • Community-Based Strategies • Newell 2005: Corporate Accountability

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