Engagement Principles
Choosing Business Partners
The private sector can and should produce goods that reach communities in need and help improve the nutrition of the most vulnerable. That means that GAIN does not partner with companies with negative impacts on public health, such as those involved in the manufacture of tobacco or weapons.
While partnering with the private sector has clear benefits, there also are real risks and stakeholder concerns. To evaluate and manage these risks, GAIN uses a review process before it enters into a formal relationship with a company.
The goal of the review process is to enter into partnerships with leading, responsible companies whose values, reputation and actions demonstrate a strong commitment to improving nutrition and conducting business in a socially responsible manner. The final decision on whether or not a company becomes a strategic partner rests with the management of GAIN.
Business Filters
For projects that include business partnerships, the project team uses tools to assess and manage the relationships. These tools assist managers in ensuring that potential partners are aligned strategically with GAIN and have a good track record of socially responsible practice. Additionally, these tools will assist in the design of partnership structures aligned with the recently developed USAID/Accountability PGA framework to which GAIN adheres. The PGA Framework promotes best practice in the management of partnerships for sustainable development.
The Business Partnership tools include:
- Private Sector Strategic Alignment Filter: Tool used to evaluate a private sector candidate’s strategic alignment with GAIN's mission, organizational objectives, targets and ability to partner effectively.
- Private Sector Social Responsibility Filter: Tool used to evaluate a company's social responsibility performance based on GAIN defined criteria.
- International Code for Marketing of Breastmilk Substitutes Filter used to assess compliance with the Code.
- PGA Framework Considerations Tool: This is a guidance document that outlines PGA guiding principles, such as mission and vision, strategic planning, structure and governance, performance accountability, financial and asset integrity, and stakeholder engagement.
- PGA Framework Guidance Details Tool: This provides additional detail for GAIN managers for sections referenced in the PGA Framework Considerations Tool.
Limitations
The review process captures organizational risk factors and enables GAIN to make informed decisions about the suitability of a potential partner. However, GAIN continues to face challenges reviewing companies from developing countries where the corporate responsibility movement is in a nascent stage and not enough information is publicly available to conduct an effective review process. The same applies to some private companies, which do not have the same reporting requirements and demand for transparency as publicly traded firms. In these cases, GAIN relies heavily on management interviews and stakeholder feedback.
Finally, the practice of corporate social responsibility continues to evolve and there is no blueprint approach to deal with social and environmental risks effectively. If there are doubts or inconsistencies raised through the process and more information is needed, additional interviews with company management or relevant stakeholders is conducted.
Independent advice
The screening of companies is done by an external, independent corporate social responsibility expert. Whatever the recommendation, GAIN is able to make an informed choice and weigh the ultimate benefits for the malnourished with the risks of the partnership.
