Choosing effective business partners
Working with leading and responsible companies to fight malnutrition
GAIN mobilizes public-private partnerships to fight malnutrition. We believe the private sector can and should produce goods and services that reach those communities in need and help improve the nutrition of the most vulnerable.
That automatically 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 others in the private sector has clear benefits, there also are real risks and stakeholder concerns. To evaluate and manage these risks, we use a review process before we enter into a formal relationship with a company.
The goal of the review process is to enter into partnerships that are practical, ethical and flexible, and 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 becoming a strategic partner rests with the management of GAIN.
Reviewing potential partners
1. General reputation and performance indicators
Companies demonstrate commitment to social and environmental responsibility in different ways. Some already report extensively on their work to improve the lives of poor consumers or contribute to the Millennium Development Goals. Others may be members of the United Nation’s Global Compact, multi-stakeholder initiatives related to Corporate Social Responsibility or have been externally reviewed by credible organizations for good company behavior. GAIN looks at many available sources of information before it looks in-depth at partnership opportunities.
2. Strategic alignment
A key question is if the objectives of the company align with those of GAIN, or in other words if the partnership will benefit those vulnerable to malnutrition, in particular women and children in low income families in developing countries. We look at the extent to which a company already works together with different stakeholders in target countries and what the experience of that collaboration has been, as well as the commitment of senior management to partnerships and improving nutrition, and the willingness of key staff and their capacity to work with us.
3. Corporate responsibility
We carefully review a company for its social and environmental performance, including its adherence to international conventions and standards. We also look at their relations with a broad range of stakeholders, procurement and fair trade policies, approach to addressing material issues like obesity, and external measures of their performance such as meeting FTSE4Good criteria.
Limitations
The review process captures organizational risk factors and enables GAIN to make informed decisions about the suitability of a potential partner. However, we continue 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, who do not have the same reporting requirements and demand for transparency as publicly traded firms. In these cases, we rely heavily on management interviews and stakeholder feedback to gather information or base our assessment more on value convergence.
Finally, the practice of CSR 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. In some cases, the advice is positive and there is little doubt the partnership will work to deliver public health benefits. More often, his or her advice will be more balanced outlining the company’s achievements and areas for improvement, as the perfect organization hardly exists. 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.