Assessing the Impacts of Multinational Companies on Global Development Goals

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1 Assessing the Impacts of Multinational Companies on Global Development Goals André Martinuzzi and Adele Wiman Institute for Managing Sustainability Vienna University of Economics and Business Global Social Policy Forum "New Directions for Social Policy towards socially sustainable development", November 4th - 5th, Helsinki, Finland Assessing the Impacts of Multinational Companies on Global Development Goals Corporate Impact Assessment and Management goes beyond financial return to the company towards considering the social and environmental impacts the company's activity carries. GLOBAL VALUE project we will develop an innovative framework for assessing impacts of Multinational Corporations (MNCs) on issues related to the Millennium Declaration including sustainable development, human rights, transparency, and anti-corruption. The project will create a modular, user-friendly and customizable toolkit, including a web-based assessment platform, indicator set, user guide, and training materials. The toolkit will be tested in with leading MNCs: BATA (garment, Bangladesh), OLAM (food, Tanzania) and NOKIA (ICT, India). Research organizations and CSOs from these countries are members of the consortium and ensure the involvement of stakeholders and local actors.

2 Corporate Social Responsibility: confusion of the concepts is an empirical reality sustainability stakeholder relations management governance social responsiveness business ethics stewardship social performance citizenship AA 1000 Accountability Dow Jones Sustainability Index environmental management sustainable consumption and production GRI OECD guidelines SA 8000 industrial ecology Global Compact ISO26000 ILO Standards Increasing positive impact on society and the environment Philanthropic CSR (doing good and talking about it) easy to start, communicate and evaluate; very common Quality-oriented CSR (using management systems to avoid doing bad) Systemic; well established standards and frameworks Innovation-oriented CSR (rethink your business and strive for innovation) strong links to competitiveness, and technological leadership Impact-oriented CSR (consider impacts and create shared value) Stimulates cooperations, organizational learning and change; increases societal trust PR and Marketing credibility gap; no real change; not a lot of literature at hand Quality Management difficult to communicate; no strong stimulus for innovation Innovation Management innovation barriers and risks; new business models required Strategic Management Requires new assessment and management methods Increasing positive impact on the company and its competitiveness

3 GLOBAL VALUE will develop an innovative framework for assessing impacts of Multinational Corporations (MNCs) on issues related to the Millennium Declaration including sustainable development, human rights, transparency, and anti-corruption. shed light on institutional arrangements, analyze systems of governance for responsible business practices, explore responsible competitiveness and assess the complementarity of public and private sector activities deliver a modular, user-friendly and customizable toolkit, including a web-based assessment platform, indicator set, user guide, and training materials Jan. - De, 2,5 Mio Euro, funded by the 7th EU framework programme 5. State of Play & Integration of Threads Review of development related assessment frameworks and tools: MDGs, Human Rights, Gender Issues, Anti-Corruption, Transparency, Review on potentials for integrating development issues in management approaches: Supply Chain Management, Life Cycle Assessment, Base of the Pyramid Review of systems of governance for responsible business practices, competitiveness and complementarity with ODA Review of and societal indicator-sets, compound indicators, footprint approaches, sectoral and regional multipliers

4 5. Responsible Business Conduct, Competitiveness & Complementarity Multi-Case-Study on Systems of Governance for Responsible Business Conduct, Competitiveness and Complimentarity (9 cases) Policy paper Processes for coordinating business activities, ODA and civil society operations: the status quo and options for improvement Gap-Analysis Recommendations for decision makers in policy, business and CSOs 5. Development of the Assessment Framework & Toolkit Expanding SCOR and LCA for development impact assessment Developing and refining indicators and regional multipliers Processing of existing but widespread sector and country specific data on MNC impacts Design, programming and maintenance of a web-based tool for MNCs assessment, stakeholder involvement and expert crowd (incl. user handbook)

5 5. Corporate Cases & Reflexive Learning Bangladesh - Bata (garment sector) BRAC Tanzania Olam (food wholesaler) Sokoine University India Nokia (ICT) Tata Institute for Social Sciences & Indian CSR Hub Stakeholder Involvement & Crowd Intelligence Participatory Stock-Taking of assessment methods, tools and approaches (parallel to task 1) Stakeholder Involvement and Crowd Intelligence in Analyzing Systems of Governance (parallel to task 2) Involving an Expert Crowd in Toolkit-Design (parallel to task 3) Stakeholder Involvement and Crowd Intelligence in the three case studies (parallel to task 4)

6 5. MDG-Progress- & SDG-Monitoring Developing a catalogue of development related goals Policy monitoring and participation at relevant events Regular short reports on MDG-Progress- & SDG-Monitoring 5. Roll-out, dissemination & deliverables Policy Roadmap and PR strategy for diffusion Training toolkit for consultants, ODA agencies, MNCs and other actors Website and newsletters Peer reviewed publication "Systems of Governance in a Development Context, Complementarity and Competitiveness" Peer reviewed publication "Assessing MNCs Impacts on Global Development - a Conceptual Framework" Peer reviewed publication "Stakeholder Involvement and Crowd Intelligence in Global Development Issues"

7 Assessing different pathways of impact Complexity Societal impacts: e.g. for systemic effects, practices and values Qualitative Shared impacts: Appraisal e.g. along supply chains, through products and in regional networks Multi-dimensional impacts: e.g. on the environment, society and the economy at the same time Multiple unit impacts: e.g. raw materials -> resource use Single unit impacts: e.g. CO2-emissions -> climate change Quantitative Indicators Professional Discourse Get involved in GLOBAL VALUE The GLOBAL VALUE project will integrate stakeholders and experts by an innovative expert crowd representing all issue areas of the project. More than 100 experts have submitted letters of intent, representing policy, CSO, business, and research perspectives (e.g. Xerox; OMV; NovoNordisk; Lidl; Elan; Bank Sarasin; GRI; SIDA; GIZ; Independent Evaluation Group Private Sector Evaluation of World Bank; CSR Europe; Global2000; Global Policy Forum Europe; European Parliament). The expert crowd will: support the project team in stock-taking and reviewing existing assessment frameworks and tools; provide a platform for including the views of different stakeholders in the development of the GLOBAL VALUE assessment framework and toolkit; assist in validating the preliminary findings from the case studies in WP2 and WP4; give scientific feedback and thus contribute to ensuring high-quality; 5. provide a discourse element, particularly regarding indirect effects, causality and attribution issues, contingencies, and counterfactuals. For becoming a member of the GLOBAL VALUE Expert Crowd please visit

8 Literature Martinuzzi, A., Krumay, B. (forthcoming Dec 2013): The good, the bad and the successful - how CSR leads to competitive advantage and organizational transformation, in: Journal of Organizational Change Management Schmitzer, H.; Martinuzzi, A. (2013): "Methods and Tools for Impact Measurement of the Millennium Development Goals (MDGs) and Sustainable Development", ESDN Case Study No. 14, European Sustainable Development Network, April 2013, Prammer, E.; Martinuzzi, A. (2013): "The Millennium Development Goals (MDGs) and the Post- Debate", ESDN Case Study No. 13, European Sustainable Development Network, December 2012, NETWORK.eu Pintér, L., P. Hardi, A. Martinuzzi, J. Hall (2011): Bellagio STAMP: Principles for Sustainability Assessment and Measurement, in: Ecological Indicators, Volume 17, June 2012, pp Martinuzzi, A. (2011): Responsible Competitiveness Linking CSR and Competitive Advantage in three European Industrial Sectors, in: Zeitschrift für Umweltpolitik und Umweltrecht/Journal of Environmental Policy and Law, Vol. 3/2011, pp Steurer, R.; Martinuzzi, A., Margula, S. (2011): Public policies on CSR in Europe: Themes, instruments, and regional differences, in: Corporate Social Responsibility and Environmental Management, Vol 19, pp Martinuzzi, A.; Gisch-Boie, S.; Wiman, A. (2010): Does Corporate Responsibility Pay Off? Exploring the links between CSR and competitiveness in Europe s industrial sectors, Final Report of the project No ENTR/2008/031, Responsible Competitiveness on behalf of the European Commission, Directorate-General for Enterprise and Industry, published in the scientific series of the Research Institute for Managing Sustainability, Vienna University of Economics and Business, Vienna, Nov Konrad, A.; Steurer, R., Langer, M. E., Martinuzzi, A. (2006): Empirical Findings on Business-Society Relations in Europe, in: Journal of Business Ethics; Volume 63, Number 1, Jan. 2006, pp Steurer, R., Langer, M. E., Konrad, A., Martinuzzi, A. (2005): Corporations, Stakeholders and Sustainable Development: A Theoretical Exploration of Business-Society Relations, in: Journal of Business Ethics; Volume 61, Number 3, October 2005, pp

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