Covenant on an Active Role of the Private Sector in the Post-2015 Global Development Agenda

IntroductionIn 2015, the UN Millennium Development Goals (MDGs), the most important international agreements aimed at combatting poverty, will expire. A growing number of businesses, NGOs and governments consider the role for the private sector in realizing the post-2015 development agenda as a key driver. The private sector can play a vital role in transferring knowledge, know-how and technology, providing funding and employment opportunities and supporting in skills training. Currently, no common understanding of the role of business in global development exists across stakeholders.

This document has been created and signed by an alliance of cross-sector stakeholders after a multi-stakeholder consultation. We see a need for a genuinely multi-stakeholder process in all steps of developing the Post-2015 Development Agenda, including target setting, defining responsibilities and drafting documents.

Joint VisionWe envision that the private sector is actively involved in Global Sustainable Development by assisting to realize the existing MDGs by 2015. And, by participating in the process leading up to the new Global Development Agenda in 2015 and by realizing the goals of this new agenda through their own operations and in global partnerships. We believe it is important that businesses take the utmost care to meet their corporate social responsibilities and to find business opportunities that create value to society. In this way, the private sector can contribute to sustainable development, alongside the public and civil sectors.

Common GoalTo jointly define the role and contribution of the private sector in the global development agenda, and stimulate further involvement of businesses in cooperation with other sectors.

Commitment to Building a Broader UnderstandingWe have produced a repository of case studies that highlight the contribution of the private sector to development initiatives as well as the impact these have had toward achieving MDGs.

The signatories recognize: • the importance of the Millennium Development Goals (2000-2015) in generating a

commitment from the international community to poverty eradication by addressing issues like food security, education, gender, health and clean water issues;

• that a new framework for Global Development must include social and environmental sustainability in developing and developed states;

• that the partnerships for Global Development need to be more inclusive: they need to include the private sector, besides governments and civil society without reducing the overarching responsibility of governments and without diminishing the important role of citizens via their civil society organizations;

• the commitment the private sector expressed at the several Rio+20 meetings to take up a leading role in the Post-2015 Development Agenda;

• the necessity of private sector actors in their role as providers of goods and services, in creating jobs and in contributing to the tax-base of states, which could eradicate poverty and create the basis for a life in dignity for each and every world citizen;

• that to address new global challenges like climate change, the sustainable management of natural resources (land, water, minerals) and the preservation of biodiversity requires the active participation of private sector actors in finding and executing solutions;

• the necessity of states, NGOs, labor unions and research institutions in creating an enabling environment in which businesses can create value for society;

• the necessity of local and global multi-stakeholder partnerships to deal with complex challenges;

• the responsibility and opportunity the Netherlands has in promoting active participation of the private sector in cooperation with NGOs, labor unions, government agencies and research institutes in Global Sustainable Development and the United Nations Post-2015 Global Development Agenda;

• A large part of the impact the Netherlands has on developing economies and poverty reduction is realized by its private sector involvements in those economies;

• the need for concerted action of businesses, NGOs, labor unions, government agencies and research institutes towards Global Sustainable Development before the United Nations will have finalized the framework by 2015;

• that the private sector – defined as privately held businesses, from multinationals to small enterprises – have been, such as states and other institutions, a part of the problem in Global Development, but are also part of the solution.

The signatories appreciate:

• the work that has been done by the United Nations High Level Panel of Eminent Persons on the Post-2015 Development Agenda,

• the work that has been done by the United Nations Open Working Group on Sustainable Development Goals,

• the work that has been done by the World Business Council on Sustainable Development in their projects Vision 2050 and Action 2020,

• the work that has been done by Dutch Social and Economic Council including the International Corporate Social Responsibility Declaration and the report on the Role of the Private Sector in International Development,

• the work of the UN Global Compact in promoting the role of the private sector in achieving the MDG’s and its involvement in setting the Post 2015 Development agenda.

The signatories stress: • the need for a genuinely multi-

stakeholder process in the developing the Post-2015 Development Agenda in all steps of the process, including target setting, defining responsibilities and drafting documents,

• the need to involve the different stakeholders at all levels, global, national and local, and all sizes, for instance, to involve small and medium size enterprises next to multinational enterprises.

An initiative of:

2015

Sustainable development

1. Aim to contribute to sustained prosperity and dignity for all individuals, present and future;

2. Believe in the importance of the following dimensions for sustainable development:

a) Leave no one behindb) Put sustainable development at

the core c) Transform economies for jobs

and inclusive growth d) Build peace and effective, open

and accountable institutions for all

e) Forge new partnerships; 3. Commit to contributing to the

realization of the Millennium Development Goals (2000-2015) by 2015;

4. Committing to contributing actively to the new Global Development Agenda from 2015 onwards;

5. Commit to setting targets with respect to Global Development and link these targets to the MDGs until 2015 and the new Framework for Global Development of the United Nations after 2015;

6. Commit to reporting on the self-chosen targets in (5) and on the progress that has been achieved on these targets in a manner that fits each organization;

7. Acknowledge that active participation and contributions of states, NGOs, labor unions, businesses and research institutes are all necessary towards realizing the aims in articles (1)-(4), where the different stakeholders have common but differentiated responsibilities

The role of the private sector

6. Agree that the purpose of the private sector is to create value for society: value to shareholders, value to the planet and value to society at large, which results in three autonomous and complementary aims:

a) To make profit and provide a reasonable financial return for their owners and investorsb) To minimize negative impact on society and nature and take full responsibility for fair and just business

practices in their value and supply chainsc) To maximize their positive impact on society and nature and take full responsibility for creating value for

current and future generations7. Agree that the particular role of the private sector in the light of Global Sustainable Development is to:

a) Respect the basic rights of people and workers and conserve natural resources in all their operations, and perform due diligence on these issues;

b) Find business opportunities that are both profitable and work towards the aims and goals mentioned in (1)-(4);

c) Ensure the promotion of a good business culture by eradicating all forms of corruption in business practices;

d) Promote good governance and law and order;e) Be open in their communications and reporting about the impact of their business activities on

societies;8. Endorse the normative frameworks for International Corporate Social Responsibility and stakeholder

engagement as specified in the following documents:a) The ILO Declaration on Fundamental Principles and Rights at Work;b) The ILO Declaration of Principles Concerning Multinational Enterprises and Social Policy;c) The United Nations Guiding Principles on Business and Human Rights;d) The OECD Guidelines for Multinational Enterprises;e) The ICC Guide to Responsible Sourcing;f) The Ten Principles from the United Nations Global Compact

9. Recognize that businesses have a great potential to find value creating business opportunities including:a) The creation of inclusive, decent and fair jobs;b) Making supply chains inclusive and sustainable, such as in the work of the Sustainable Trade Initiative;c) Creating circular business processes;d) Creating inclusive products that are also accessible to the poor, such as initiatives in the framework of

the Bottom of the Pyramid;e) Making products in a socially inclusive way that provides employment for people with diverse mental,

intellectual and physical capacities and competences;f) Developing product, process, supply chain and business model innovations that create value to society

and nature;10. Recognize the potential contribution of innovative ways of doing business such as:

a) Social Entrepreneurship: conducting entrepreneurial activities with the primary aim of realizing a positive impact on society and in such a manner that it is financially self-sufficient; [insert definition];

b) Impact Investing: investing in business activities which provide an expected positive financial return and where the primary aim of the investment is realizing a positive impact on society];

11. Recognize the importance of defining, measuring, improving and reporting on the impacts businesses have on Natural and Social Capital.

Public private partnerships

12. Affirm the importance of governments for enabling a business environment that creates value and contributes to Global Sustainable Development by:

a) Setting clear and predictable regulations and efficient, stable and fair institutions and policies;

b) Providing an equal playing field for businesses that are responsible;

c) Providing the right incentives to stimulate value creating business practices;

d) Being responsible market players in their own purchasing, procurement and investment activities;

13. Affirm the importance of NGOs and labor unions for securing a business environment that creates value and contributes to Global Sustainable Development by:

a) Providing a structured and disciplined frameworks for transparency and harmonize different frameworks for transparency;

b) Monitoring the progress businesses make to provide adequate transparency;

c) Providing neutral platforms for precompetitive business agreements and innovations;

d) Giving a voice and influence to underrepresented stakeholder groups;

e) Providing expertise on complex social, environmental and governance issues;

14. Affirm the importance of research institutes for stimulating a business environment that creates value and contributes to Global Sustainable Development by:

a) Enabling innovation through applied research;

b) Providing expertise on complex social and environmental issues;

c) Providing impartial reflection on complex issues.

The three pillars of the covenant