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1 Internationale Weiterbildungund Entwicklung gGmbHCapacity BuildingInternational, GermanythThe 10 International Business Forum is being implemented with the kind support of the following organizations: Business and MDGs thReport of the 10 International Business ForumFighting Poverty: A Business OpportunityFighting Poverty: A Business OpportunitythReport of the 10 International Business Forum Business and the Millennium Development Goals:An Active Role for Globally Responsible Companies 11 - 13 September 2005 Helen & Martin Kimmel Center at New York UniversityNew York CityBusiness and MDGsThere are now less than 10 years left to meet Second, we wanted to take advantage of the the far-reaching anti-poverty targets set by timing of the event in the run up to the 2005 the members of United Nations - the Millen-World Summit in order to increase the aware-nium Development Goals (MDGs) - and at the ness of government decision-makers of the present rate, these goals will not be met.

2 There role that the Business sector can - and is is a sense of urgency to find a better plan to already playing - to further the attainment of achieve these goals, and our four organiza-the , InWEnt - Capacity building Internatio-nal, Germany, the World Bank Institute, Insti-tuto Ethos, Brazil, and the United Nations Global Compact, not only share that sense of urgency, but also believe that to achieve the MDGs, it is essential to harness the drive, in-novation and efficiency of the Business spur action, we joined forces to gather 200 thinkers, decision makers and practitioners - most from businesses - in one conference room in New York's Greenwich Village for the th10 meeting of the International Business Forum (IBF).We had two clear motivations for organizing the , we wanted to facilitate an exchange within the Business community itself so that As it turned out, the Forum was able to pro- Business leaders could learn from each other vide a unique opportunity for companies to about the actions, some already underway, talk to companies and, because the audience that can promote the MDGs.

3 The forum, we primarily consisted of Business leaders, the felt, should be held in an open manner where conference was well grounded in realistic, not the participants could frankly address the rhetorical, dialogue that was relevant to the obstacles they face, the risks that deter action Business sector. But it wasn't only the vibrant and all the tasks that still remain to be done, interaction between Business actors that made collectively or as individual firms. the Forum significant, it was also because Ricardo Young, Georg Kell, Djordjija Petkoski, Luiz RamalhothThe 10 International Business Forum, which took place from 11 to 13 September 2005, was jointly organized by InWEnt - Capacity building International, Germany, The World Bank Institute, Instituto Ethos, Brazil, and the United Nations Global 10 International Business Forum was financed by the Federal German Ministry for Economic Cooperation and Development (BMZ).

4 And the Millennium Development the 2005 World Summit: where we are between governments and Business to further the MDGs1 Business sector's self-interest in the Forum - a learning the Forum - results from the working goals - reasons for companies to promote the examples - strong tools - a great variety strategies - towards future partnerships - how to build successful should donor agencies cooperate with private companies? s in it for the Business sector? risks connected to Public Private critical issues about Public Private the IBF: the key to successful of the a new political framework follow up activities IBF 2005 to IBF outlook toward 201561 Annex63 References and links63 The organizers64 The supporters69 The corporations and organizations featured70 The agenda71 The participants 75 The steering committee83 Imprint84 Contents45 Luiz RamalhoDirectorSustainable Business DevelopmentInWEnt - Capacity building International, GermanyRicardo YoungPresidentUniEthos Brazilththere was representation from all sectors of 10 International Business Forum 2005 the Business world, including companies of a happen, it was the active engagement and range of sizes from every continent.

5 It was keen insights of the numerous supporting important to have local firms from developing organizations, plenary speakers and the re-countries represented, not just the world presentatives of Business , NGOs, International famous western-based multinationals. Organizations and scientific institutions who made the Forum a it was the outstanding partnership between the four co-organizers that made the Djordjija PetkoskiProgram LeaderPrivate Sector Development and Corporate GovernanceWorld Bank InstituteGeorg KellExecutive HeadUnited Nations Global Compact4In the five years since the United Nations is to serve particular interest, not the general adopted the ambitious Millennium Develop-interest of society. Corporate Social Responsi-ment Goals (MDGs), it is clear that progress bility (CSR) and ethics, while they may help toward reaching the goals is insufficient and serve Business purposes, are not the primary mere incremental changes in policies will not goals of Business .

6 So why, then, would busi-make enough of a difference to matter. Rather, nesses have a genuine Business interest in the an entirely new concept is needed to address MDGs?the various aspects of poverty alleviation. Our planet is undergoing rapid and, in some cases, alarming changes that will have pro-found effects on Business . In this generation alone, the world's population is expected to grow to nine billion and the problems the world now faces - water scarcity, energy crises, fights for resources, pandemics, pollution, un-controlled migration and collapsing societies - will escalate and have a destructive effect on Business activity. But another reason, and the one drives the th10 International Business Forum 2005, is a more positive scenario: the idea of develop-ment as an opportunity for Business - that the future development of our world can be a vast To make a significant dent in global poverty, opportunity for movers and shakers of globalization - businesses of every size and shape - must be Much of global Business today is geared to-mobilized and to do that, these businesses ward offering products and services to the need to buy-in to the MDGs and use the MDGs wealthy minority of the world population but as a general framework for action.

7 In coming years, four out of five customers will come from places now known as developing Only why should Business be interested in the countries. Major Business opportunities, now MDGs? After all, the Business of Business still and in the future, lie in expanding operations remains Business - the reality of economics to the huge markets made up by the billions of dictates that the purpose of private investment customers at the base of the pyramid (BOP). regard to the United Nations' Millennium Development Goals? This report is an attempt to document the wealth of ideas presented during the three-day conference in New York that was attended by 200 thinkers, decision makers and practitio-ners, representing Business , governments, international organizations, non-governmental organizations and academic institutions from 47 countries. While the spirit, enthusiasm and commitment that was expressed at the Forum may never be adequately captured in print, it is our hope and intention to ensure that the contribution of the Forum's participants can be shared with an ever widening circle of busi-nesses that are interested in opportunities in Many of the businesses represented at our development.

8 Forum, from small and medium-sized enter-prises to transnational corporations, have Erich S dorfalready started to aim their operations toward ChairmanBOP markets. They are providing social and th10 International Business Forum 2005economic infrastructure, they sell food, packaging, pharmaceutical and chemical pro-Jochen Weikertducts, cosmetics and all kinds of consumer Project Managerarticles. They sell services in IT, communica-InWEnt - Capacity building International,tion, finance and insurance. Even more impor-Germanytantly, they also source in BOP markets in order to produce the goods and services. During the Forum, participants discussed several key questions that are relevant to the Business community with regard to the MDGs, particularly, the key question What is the role for globally responsible companies with Business and MDGs67 IntroductionAt the 2000 Millennium Summit the 189 should consider the importance of the role of Member States of the United Nations unani- Business in promoting development and high-mously endorsed the landmark Millennium lighted the benefits for Business and govern-Declaration that set forth a shared vision for ment to work together to promote peace and promoting peace and development throughout development: that neither state nor private the world.

9 The Declaration contained eight actors can succeed without support from the goals for significantly reducing global poverty other side. History, including the outcomes of in the new century that have come to be the Millennium Summit, had already shown known as the Millennium Development Goals just how vital the private sector s contribution (MDGs). In 2005, UN Secretary-General Kofi toward reducing poverty has convened the 2005 World Summit from 14-16 September to determine the next steps While the 2005 Summit did not reach agree-for the world body and to evaluate the pros-ment on all the proposals put forward by UN pects for achieving the Kofi Annan to strengthen the role of the UN in matters of peace and de-velopment, it strongly reaffirmed the MDGs as the overarching framework of international development. And the Summit acknowledged the need for developing countries to promote an environment for development-friendly busi-ness, along with good governance, respect for human rights and improved rule of law.

10 The message from the private sector and the IBF 2005 was not only heard by the leaders at-tending the World Summit, but has been re-flected in the final outcome document. For example:Just days before the 170 Heads of State and 172. We welcome the positive contributions Government met at UN Headquarters in New of the private sector and civil society, in-York, Business leaders came together at the cluding non-governmental organizations, in International Business Forum 2005 (IBF 2005). the promotion and implementation of de-They sent a message to world leaders that they velopment and human rights programmes After the 2005 World Summit: where we are now89and stress the importance of their con-tinued engagement with Governments, the United Nations and other international organizations in these key We encourage responsible Business practices, such as those promoted by the Global We welcome the dialogue between those organizations and Member States, as reflected in the first informal interactive hearings of the General Assembly with re-presentatives of non-governmental orga-nizations, civil society and the private General Assembly agreed to adopt some elements of the MDG implementation plan, Investing in Development, proposed by Jeffrey Sachs, a speaker at the IBF.