Business Partnerships for Global Goals COVID-19 Vulnerable Supply Chain Facility Business Partnerships as a Force for Good Learning Series
Partnering for progress: How can the FCDO work with business to deliver the SDGs? Lessons from the BP4GG programme
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November 2021
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Case Study
Contents Message from the Project Director, Business Partnerships for Global Goals
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Executive Summary
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Evidence base
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Summary of lessons learned
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Context
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Lessons from BP4GG partnerships
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1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Create more opportunities for open dialogue between business and FCDO. 9 Clearly articulate FCDO’s value proposition & priorities 10 Move from a donor > grantee dynamic to co-creative partnerships 11 Build relationships and make commitments over the long-term 12 Use existing cross-industry networks and multistakeholder initiatives 12 Consider incentives for business by starting with targeted action, whilst seeking systemic impact 13 Deliver using a lean independent management function to ensure accountability of all partners 13 Retain flexibility and agility 13 Manage risk collaboratively to seed innovation 13 Generate learning, share & manage knowledge 14
Conclusion and recommendations
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Executive Summary Message from the Project Director, Business Partnerships for Global Goals The role of the private sector in contributing to achieving the Global Goals is continually becoming critical as the public funds get tighter. COVID-19 was not only a health shock but also a major disruption to global trade and the economy, with millions of vulnerable people falling back into poverty. Against this backdrop and in order to test and scale responsible and inclusive business initiatives in partnership with the private sector with a focus on improving lives, incomes and access to jobs as well as markets for the poorest and most marginalised people, Business Partnerships for Global Goals programme¹, funded by the Foreign, Commonwealth and Development Office (FCDO) UK set up the Vulnerable Supply Chains Facility, with match funding from the business. The programme focused on the garments and agriculture sectors which employ large number of vulnerable women and men. Between 2020 and 2021, through eight partnership projects, implemented in seven countries (Bangladesh, Ethiopia, Ghana, Kenya, Myanmar, Tanzania, Zimbabwe) in partnership with 20 multinational companies (including 16 from UK) and their 296 suppliers as well as five not for profit organisations, the programme reached 1.4 million vulnerable people, 63% of whom live on less than $5.5 a day, and 55% of whom are women, contributing to 8 of the 17 Global Goals. The programme has started yielding systemic change with a wider autonomous adoption of some of these initiatives by the industry. These results were possible due to the partnerships modality adopted by the programme. By working as a partner than a financier, or an arms-length fund provider, the programme was able to catalyse wider, deeper and faster development impact, despite the COVID-19 disruption. There are lessons for future programming about how partnerships can be a useful modality for addressing the systemic challenges in the pathway achieving Global Goals in a post COVID-19 context. Working in partnerships requires trust, clarity and flexibility. It needs developing a shared vision, investing time in building partnerships, creating joint ownership of risk and return, using coordinated, consistent and clear communications. An impactoriented approach which forms the basis of the partnerships can enable finding the common ground as a starting point wherefrom partnerships can grow and become stronger. As part of our Business Partnerships as a Force for Good Learning Series, this Case Study aims to: • Gather lessons from using partnerships to achieve wider development outcomes. • Explore the partnership modality to inform the future business partnerships strategy of FCDO. • Capture insights from the BP4GG and the broader experience of programme partners. I am delighted to share the experiences of this successful programme and the lessons learned from the partnership modality. I would like to thank all our partners for taking the time to be part of this research process that resulted in this Case Study. These include Aisha Aswani (Co-op), David Alder, Pablo Martinez (both Minor Weir and Willis), Danny Miles (Morrisons), Pascale Schuit (Union Hand-Roasted Coffee), Amy Morris (Waitrose), Ian Mitchell (Flamingo), Caroline Downey (MM Flowers/WWW) and Fiona Sadler (M&S).
Our Partners
This study explores how the UK Foreign and Commonwealth Development Office (FCDO) can partner effectively with the private sector to tackle inclusive economic growth, poverty reduction, and climate change in the context of the deepening of these challenges by COVID 19. The on-going COVID-19 pandemic has had profound impacts on the complex web of trade that delivers goods and services around the globe. It has exposed and deepened issues of fragility, inequity, and environmental harms, and compounded the vulnerability of many millions of poor workers and producers. These impacts have been felt most heavily by women and excluded groups. Given the scale of these issues, individual actors alone cannot address them. The FCDO needs to harness collaboration with the private sector more effectively than ever, as enshrined in SDG 17 ‘Partnerships for the goals’. The private sector will be crucial partners, given their profound reach, resources, and incentives to tackle these challenges.
Evidence base This paper draws on interviews with individuals representing medium to multinationalsized businesses, all engaged with supplying goods to the UK, and all working to ensure their supply chains are greener, fairer, and more resilient. These businesses have been partnering with the FCDO via the Business Partnerships for Global Goals programme (BP4GG). Since the early weeks of the COVID-19 pandemic in April 2020, BP4GG has created partnerships between the FCDO, businesses, and Non-Governmental Organisations, (NGOs) to target the most acute impacts of COVID-19 on the vulnerable women and men in agriculture and garments supply chains. The resulting projects have sought to address issues of immediate health and safety, build wider systemic resilience and catalyse innovations for more sustainable livelihoods and trade. The projects have ranged from supplying occupational health training for garments workers in Bangladesh to ensure safe workplaces during the pandemic, to piloting the sea freight of flowers as an alternative to air freight from Kenya to establish more resilient and sustainable trade routes from East Africa. The BP4GG facility has worked with 20 UK and international retailers and brands, and five not-for-profit organizations, supporting over 296 suppliers across Bangladesh, Ethiopia, Ghana, Kenya, Myanmar, Tanzania and Zimbabwe. It has reached 1.4 million workers, their families and communities, 63% of whom live under $5.50 a day. As these partnerships come to completion through planned programme closure, we have captured important lessons. The aim of this paper is to outline these learnings and consider their implications for forming partnerships for change/global goals in future.
I also thank Raania Rizvi, Kate Cooper, Radana Crhova, Jakesh Mahey in FCDO UK and the colleagues in the Country Offices in all 7 implementing countries for their support and coordination. Special thanks to Jane Marriott OBE (British High Commissioner to Kenya) and Minister for Africa, Rt Hon. James Duddridge MP, for their interest in the programme. British High Commission Bangladesh Ethiopia Ghana Kenya Myanmar Tanzania Zimbabwe
Many thanks to: Afsana Islam, Derek Griffiths, Khalid Gaffar, Mahesh Mishra, Sergio Dista, Mark George, Matt Mahama, Julian Wright, Nina Hissen, Richard Sandall Dharmini Shah, Rachael Flaherty, Rob Hale Priti Prajapati Alex Mangowi, Tim Green, Tom Ratasakatika David Mollat, Matthew MacDevette
¹ Business Partnerships for Global Goals is a UK-aid funded programme implemented by Mott MacDonald. Accenture Development Partnerships and Institute for International Environment and Development are part of the consortium.
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Arco Awaj Foundation CARE International Co-op Coventry University Ethical Trading Initiative Fairtrade Africa Fairtrade Foundation Flamingo Horticulture Flower Hub Flower Watch FNET Girl Determined GoodWeave International Impactt IPL Marks & Spencer Mi Hub MM Flowers Mondelez International Minor Weir and Willis Monsoon Accessorize Morrisons New Look Partner Africa Practical Solutions International Primark Proctor & Gamble Sainsbury’s Tesco Union Roasted VF Corporation Waitrose Women Working Worldwide Xpol
Context COVID-19 has created immediate challenges and foregrounded systemic fragilities in global supply chains
Summary of lessons learned
The FCDO launched the BP4GG programme in February of 2020 to co-create initiatives with businesses to pilot and scale shared value innovations that can tackle the Sustainable Development Goals.
From donor to partner: How can the FCDO work effectively with the private sector to tackle the complex global challenges of climate change, supply chain resilience, inclusive growth, and the wider SDGs? 1. Create more opportunities for open dialogue between business and the FCDO. Provide clear ‘ways-in’ for businesses to engage with the FCDO and maintain on-going dialogue.
On 11th March, the World Health Organisation declared COVID-19 a pandemic. The shocks to complex supply chains across the world were already being felt. With national lockdowns, restricted travel and an immediate focus on maintaining the flow of essential goods, many industries were thrown into chaos and millions of vulnerable people were falling back into poverty.
2. Clearly articulate the FCDO’s value proposition & priorities Codify the core capabilities of the FCDO to provide a clear offering that complements businesses’ own strengths. Identify priorities amongst SDGs to avoid being spread too thinly over vast and complex problems.
In response to this growing crisis, the BP4GG programme created the Vulnerable Supply Chains Facility (VSCF), a fund to rapidly form partnerships with businesses and not for profits to jointly deliver support to vulnerable people in some of the hardest hit supply chains in agriculture and garments manufacturing.
3. Move from a donor/ grantee dynamic to co-creative partnerships Establish co-creative partnerships that work on a peer-to-peer basis and supplant the donor/ grantee dynamics that have formerly governed FCDO-funded programmes.
As the pandemic continues, the situation has evolved from an immediate crisis-footing to questions around the longer-term resilience and sustainability of supply chains, and how to protect workers and their livelihoods during this pandemic, supporting their recovery, and in insulating them against future shocks.
4. Build relationships and make commitments over the long-term Seek long-term engagements that persist beyond the lifecycle of specific initiatives, to allow for trust to build, working relationships to mature, and deeper systemic impact to be reached.
The BP4GG programme will close at the end of 2021. The team is evaluating the experience of bringing together a disparate group of stakeholders to form a rapid response and thinking about the implications and sustainability of the activities that have been initiated.
5. Use existing networks, adopting a diversified approach to specific sectors and different sized companies. Tap into existing industry, cross-industry, and Small and Medium-Sized Enterprise (SME) forums to understand the landscape of existing actors and collaborators and identify the opportunities for greatest value addition by the FCDO.
At the same time, supply chain challenges in the UK have become increasingly acute and there is a surge of interest around how well global links in the chain are able to withstand public health shocks as well as economic and political changes. such as Brexit.
6. Start with targeted action, whilst seeking systemic impact Secure strong engagement from private sector partners by working on issues with demonstrable effects on specific supply chains, while seeking to build wider coalitions of action that can amplify learnings and innovations across sectors. 7. Deliver using a lean independent management function Use a neutral intermediary party to provide essential oversight and accountability, and ensure this function is as lean and facilitative as possible. 8. Retain flexibility and agility Look to match the pace of private sector partners by being flexible around methods of delivery, whilst maintaining a focus on the mutually agreed outcome. 9. Manage risk collaboratively to seed innovation Work collaboratively with private sector partners to manage risks. Seek already trusted partnerships as initial anchors, whilst testing newer partnerships as part of a wider portfolio. 10. Harvest learning & manage knowledge As a neutral non-commercial actor, be the agent that spreads learnings to relevant wider stakeholders, doing so by making sure lessons are tailored for maximum relevance and engagement.
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The UK has hosted COP26 to impel global leaders to commit to a drastic climate response. Both COP26 and COVID-19 are foregrounding the need to overhaul the current economic system, and take radical action on climate, wealth generation and inequity. In the UK this is translating to the need for post-COVID-19 ‘build back better’ green recovery.
FCDO merger In September 2020 the UK Department for International Development (DFID) merged with the Foreign and Commonwealth Office (FCO) to become a joint diplomatic and development assistance department, the Foreign and Commonwealth Development Office (FCDO). Part of this mandate will be to bring trade and development closer, priorities that have been made more acute by the impact of COVID-19 and the UK’s departure from the European Union. In November 2020 departmental budgets for 2021-22 were announced following a year-long spending review. Given the impact of the global pandemic on the economy and public finances the UK reduced its 2021 spend on Overseas Development Assistance (ODA) from 0.7% of gross national income to 0.5%. The most recent budget announcement in October 2021 commits to that reduction in spending until 2024.
The need for FCDO to work with the private sector and other partners to deliver on the SDGs is more pressing than ever. The need to build resilient supply chains and meet SDG targets remains, while at the same time FCDO budget for funding large-scale projects has been reduced. This means the nature of FCDO’s role in tackling these challenges is changing. The overall financing gap to deliver on the SDGs has also continued to widen. To be able to effectively meet the challenges this presents, FCDO will have to work more closely and collaboratively than ever before with businesses in the UK and worldwide.
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Lessons from BP4GG partnerships
The impact of COVID-19, a perspective from UK businesses Crisis management Business leaders have described entering into ‘panic mode’ as a result of the ‘sheer chaos’ that COVID-19 created at the outbreak of the pandemic. One retailer described how it ‘felt like someone switched off the lights and everyone was feeling their way through’. Aisha Aswani, Senior Human Rights & Ethical Trading Manager at the Co-op, describes entering ‘a period of sustained crisis management’. Loss of trading, jobs, and livelihoods In March 2020, retail outlets were closed for non-essential goods. Whilst some trade moved online, garments saw a dip in these online sales. The designation of some goods as ‘non-essential’ was devastating for some businesses. Caroline Downey, Sustainable Sourcing Manager at MM flowers, describes how this designation meant that ‘flowers were destroyed, thousands were out of work and flower farms collapsed’. While the sale of these may have been ‘non-essential’ for European consumers, they are essential for producer countries and workers whose livelihoods depend on these exports. There was a dramatic impact on retailers; ‘revenues went down by 90%. Warehouses were full to the brim. There were 70% redundancies at head office level and 95% of staff were put on furlough.’ Shortage of goods & labour Retailers have been under ongoing pressure to figure out the impact of the constrained availability of goods and labour on their operations. These on-going COVID-19 challenges have been compounded by more recent Brexitrelated labour shortages. Shifts in consumer behaviour and values Amy Morris, Ethics and Sustainability Manager at Waitrose and David Alder, Group Technical Director at importer and grower Minor Weir and Willis (MWW) describe rapid shifts in consumer purchasing. When lockdowns were first imposed people stopped buying and retailers stopped stocking flowers ‘overnight’, whilst there was a surge in demand for fresh produce from large retailers, especially those with out-of-town stores. Amidst these shifts, some existing trends in consumer behaviour accelerated, including concern about food miles and provenance, and the conditions for workers in labour forces. Increasing cost of freighting Flights were grounded, limiting air-freighting capacity however the demand for shipping perishable foods soared, causing the cost of air freighting for all produce to grow. This made a case for exploring alternative freighting via the sea. For importers such as David Alder at MWW, this has meant ‘needing to rapidly rethink supply chain routings, sources, and packaging technology.’
We have gathered the thoughts of 11 business leaders who have been partnering with the FCDO via the BP4GG for the last nearly two years. These thoughts have been supplemented by the team delivering the programme on behalf of FCDO, from Mott MacDonald and Accenture Development Partnerships, as well as an analysis of ongoing reflections captured during the lifecycle of the BP4GG facility. These partnerships have been complex, with projects being launched within three months of a call for proposals, then delivered at-pace in seven countries across Sub- Saharan and East Africa and South Asia. They have also been challenging in relation to the highly uncertain context of COVID-19, Brexit, and other political upheavals in some countries during their delivery. Despite these challenges, the success above expectations of all the projects demonstrates the power of this joined-up delivery and is a testament to the commitment in both time and money that partners made to achieving these outcomes. These perspectives are presented in the following lessons.
From donor to partner: How can FCDO work effectively with the private sector to tackle the complex global challenges of climate change, supply chain resilience, inclusive growth, and the wider SDGs? 1. Create more opportunities for open dialogue between business and FCDO. SMEs and Multi-National Companies (MNCs) alike would welcome the chance of a more ‘open door’ to being able to instigate conversations with the FCDO. On BP4GG, several partners remarked that it was only by chance that they came across the VSCF funding opportunity, and that they would not currently know how to find information on similar future opportunities with the FCDO. A few businesses mentioned they had been made aware by NGO associates, suggesting that NGOs are good conduits for spreading the word on opportunities, but that businesses not tapped into the NGO network may be disadvantaged. The call for proposals from BP4GG was especially time-limited given the urgency of launching initiatives, but the principle of trying to reach the widest audience of respondents is clear. Aside from responding to calls for engagement, partners also commented that they were unsure how they would approach the FCDO around issues or potential ideas for collaboration. They asked for clear entry points to be identified, either to individuals or teams, and ways to regularly access information on the latest FCDO thinking and opportunities to engage. Clear ways in for businesses to the FCDO (and UK Government) could be signposted, potentially even via a directory that is shared among industry forums and with businesses.
Pre-existing worker vulnerabilities to shocks foregrounded According to Danny Miles, Corporate Human Rights, Ethical Trading & Modern Slavery Lead at Morrisons, the pandemic ‘placed a spotlight on less well understood areas of our supply chain and reinforced that there are pre-existing systemic issues that were exacerbated by the impacts of COVID-19’. Similarly, Fiona Sadler, Global Head of Ethical Trading at Marks and Spencer, highlights the ‘lack of any social protection for workers in countries outside of the UK to mitigate something so unknown and so fast.’ In sourcing countries without furlough schemes and social protection policies workers were left particularly exposed. In the garments sector this has brought to light ‘what that pressure for speed entails when sourcing from developing economies.’ COVID-19 has also caused a useful shift in some mindsets with retailers, suppliers, governments, and workers all seeing the need for greater safety nets in such times of crisis. Reliance on local partners Many businesses described how, with movement restrictions, they lost the ability to gather information on the ground and became highly reliant on local civil society organisations and NGOs for information on changing circumstances in sourcing countries, especially in rural areas. These NGOs also played a vital role in delivering support.
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3. Move from a donor > grantee dynamic to co-creative partnerships 2. Clearly articulate FCDO’s value proposition & priorities Businesses need to have a clear sense of what priorities the FCDO is seeking to work on, the capabilities the FCDO can bring to bear on these priorities (alongside the wider apparatus of UK Government), and how the FCDO intends to deploy these capabilities. The need for a clear value proposition is made pressing by the recent restructuring of the department, the shifting of the UK’s trading and diplomatic relationships post-Brexit, and the still-unrolling new world order being shaped by COVID-19. FCDO’s offering can be strengthened by leveraging the global network of country offices and wider UK government capabilities. Partners expressed that part of presenting ‘a structured way for businesses to engage’ included presenting a ‘joined-up’ view of UK government, including how FCDO sits alongside the Department for International Trade and the Department for Business, Energy, and Industrial Strategy, and how they leverage joint capabilities. Similarly, partners found engagements from country offices to supply on-the-ground intelligence during BP4GG highly valuable (as happened in Myanmar and Kenya) but reflected that such expertise could have been engaged across all seven countries of BP4GG operation. Alongside a clearly articulated offering, private sector partners have advised that FCDO focus on certain well-delineated issues to avoid being spread too thinly over the numerous vast and complex problems presented by the SDGs.
FCDO’s offer to business Private Sector partners of BP4GG outlined the following potential roles for FCDO in partnering with business: 1. Facilitation around critical issues of shared concern Commercial companies can face challenges working with competitors to address issues in their common interest, including restrictions imposed by competition law. They can also lack a ‘bigger picture’ perspective that might be provided by those elsewhere within or outside of the industry. Their networks may be extensive in relation to their own supply chains, but not extend further than those partners needed for purely commercial purposes. Aisha Aswani at Co-op observed that the ‘BP4GG sessions brought together people who Co-op wouldn’t have normally learned from.’ Supporting this facilitation with a broader, more complex perspective than individual companies will be able to gather is also highly valuable. To do this FCDO can canvas businesses on their thoughts but also establish a wider viewpoint that encompasses a multiplicity of perspectives, and probe into issues that private sector actors cannot. FCDO can also be the neutral actor to conduct due diligence to provide the necessary oversight and accountability.
For future partnerships with business, the FCDO will need to step beyond the donor/ grantee, funder/client dynamic to form peer-to-peer collaborations. Accenture Development Partnerships, co-delivery partner of BP4GG, notes that this will be a necessity as FCDO’s position shifts from being a funder to a facilitator. Partnerships have functioned most effectively on BP4GG where there has been a true sharing of vision, design, risk, and benefit. Multiple partners commented that, in this spirit, asks from the FCDO need to be proportionate to businesses ability to respond, particularly around regularity of check-ins and the granularity of this reporting. For some on BP4GG, these asks were difficult to manage alongside their own wider delivery pressures and strategic priorities. An intermediary fund manager, when part of delivery, can help by creating feedback between partners, iterating, and finding the right balance of oversight that optimises delivery and collaboration. Partners encourage the use of continual two-way feedback loops to create trust and manage any delivery hurdles. Many business partners felt this has been modelled successfully by NGOs and private sector delivery partners within the BP4GG facility. Pascale Schuit, Sustainable Sourcing Manager at Union Roasted, echoed other requests that future initiatives ‘strip away the ‘development’ speak’ in meetings’. She observed that such sector-specific language from the FCDO was also compounded by NGO jargon and ‘added a degree of misunderstanding for private sector partners.’ Using such specific terminology can also deter potential partners from getting involved. Several partners noted that the application process for BP4GG was challenging for those potential partners who had no experience of these types of proposals and couldn’t fully understand what was being asked due to the development-specific terms. David Alder and Pablo Martinez from MWW attested that they were among those who found this hard to navigate. Aisha Aswani at Co-Op suggests the FCDO considers how to help potential partners overcome this, such as by allowing business coalitions to submit high-level ideas which can then be co-developed (as was undertaken during the design stage of projects, once selected by BP4GG). Crucially, Accenture Development Partnerships, observes that FCDO and its delivery intermediaries will need to form strong partnerships by investing in a culture of collaboration and learning. This is critical to making partnerships more than a sum of their parts, especially to draw out the strengths of partnerships.
It can also be a challenge to bring businesses together to share risks to pilot an innovation. BP4GG demonstrated how the FCDO can create a pre-competitive space where commercial actors can benefit from jointly piloting an innovation they would not have been able to do alone. Ian Michell, Group Technical Director of Flamingo Group who led the BP4GG sea freight flowers pilot agreed that the partners would not have come together to craft a joint pilot had it not been for FCDO tendering for proposals and then supporting the multiple commercial stakeholders to work together (growers, shipping companies, wholesalers, etc.). 2. Government-to-Government Brokering Government is ‘often a missing voice’ in key countries trying to improve labour law and infrastructure and to address systemic root causes, according to Aisha Aswani at Co-op. The UK Government can be a big influencer via leveraging national trade relationships and other diplomatic channels. The BP4GG sea-freighting flowers pilot has been supported by the FCDO Kenya team, notably through a Senior Trade Adviser who is engaging with relevant Kenyan ministries alongside the Dutch embassy to bring domestic government support to bear. This resulted in a joint event hosted by Kenyan Flower Council to disseminate lessons from both the UK aid funded BP4GG project and Dutch funded research on sea freight from East Africa. Participants included UK’s Deputy High Commissioner to Kenya, Ambassador of the Kingdom of the Netherlands in Kenya, and Cabinet Secretary to the Ministry of Trade, Government of Kenya. Similarly, Fiona Sadler at Marks and Spencer observed that FCDO is in a unique position to advocate directly with other governments for principles of human rights and equitable trade, especially given ‘there are issues that business cannot get involved in but are significantly impacted by.’ 3. Learning and knowledge management Businesses often lack incentive to harness learnings beyond their commercial needs. FCDO can bring this learning function to partnerships, and further act as a host and repository of knowledge independent of the lifecycle of projects, and to ensure there is a centralised place for learning not sitting dispersed with individual partners. 10
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6. Consider incentives for business by starting with targeted action, whilst seeking systemic impact
4. Build relationships and make commitments over the long-term Relationships between the FCDO and partners in the private sector will need to be fostered over time and managed methodically and attentively. These relationships will also need continuity, difficult during the period of flux and restructuring that FCDO has been in, but important for building strong future foundations. In terms of forging longer-term commitments, Memorandums of Understanding (MOUs) could be useful vehicles to signal an intent to collaborate over certain issues and allowing discrete projects to be co-created that build towards a bigger and more long-term purpose. These have been tried with mixed success in the past so the conditions under which they are best used needs to be understood further. BP4GG partners have reflected that allowing this longer timeframe would allow deeper engagement, and for partnerships to exert more influence on sectors and making systemic changes. Refreshing those commitments and action-plans on an on-going basis can also reinforce this engagement. Partners have also suggested that allowing more time during a call for proposals can grant actors the chance to approach each other, set out ideas for collaboration and develop those ideas, which leads to a stronger portfolio even when rapid delivery is needed. Certainly, the role of lead partners in bringing together other actors and setting the conditions for effective delivery have been crucial on BP4GG. Unforeseen circumstances will inevitably arise that need stock-taking and problem solving and rely upon the strength of partnerships. The partners that were able to respond to the pandemic via BP4GG were those that already worked together and could build a crisis response on to an existing programme, as was the case with Mondelez and Fairtrade and their Cocoalife programme, and CARE International and Marks and Spencer’s HALO programme. It is also self-evident that taking the long-term view is important when seeking systemic change and tackling complex issues.
5. Use existing cross-industry networks and multistakeholder initiatives. FCDO can use existing industry forums to gather insights on industries and understand dynamics. There is also value in seeking cross-industry forums that bring together less-common collaborators around issues, alongside separate forums for SMEs where their different perspective can be heard. Aisha Aswani at Co-op suggests that FCDO can tap into a similar network to those Co-op already use to collaborate ‘with peers, suppliers, NGOs, trade unions, and others.’ Similarly, David Alder and Pablo Martinez at MWW suggest ‘a good link to a wider network of stakeholders would be via industry bodies to disseminate knowledge and calls for partnership.’ Other existing forums mentioned include the Ethical Trading Initiative (ETI), the Food Network for Ethical Trade, the British Retail Consortium. The BP4GG Responsible and Inclusive Business List further includes the Business Call to Action (BCTA), Business in the Community (BITC), World Business Council for Sustainable Development (WBCSD) and Business for Social Responsibility (BSR). These forums can also be an important insight on the political and commercial dynamics between firms. As Caroline Downey at MM flowers observes, ‘Commercial competition in most supply chains is fierce. Support for initiatives that could be seen as giving a distinct commercial advantage to one UK company over another could be seen as unfair. It’s important to proceed with a good understanding of the specific sectors.’ Whilst retailers themselves can be helpful gateways to broader networks given their reach and influence, it is worth being cautious about suppliers entering into partnerships due to a perception of tacit retailer pressure, rather than through voluntary willingness. FCDO can also adopt a diversified approach to engaging with specific sectors and different sized companies. Fiona Sadler at Marks and Spencer advises that cross-industry groups are also where some of the best solutions and initiatives are to be found. She gives the example of successful partnerships between brands and telecoms companies. They are working together to address land rights issues where these companies are looking to locate masts where farmers are already using the land. Indeed, many of the large, complex problems inherent in the SDGs go wider than specific industries. Pascale Schuit at Union Roasted advises the FCDO to seek separate forums for SMEs to be sure to hear their voice; ‘Bringing SMEs together is important. It is also important to limit the participation in certain forums of larger companies who can influence the conversation towards issues more prevalent to them’.
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Some private sector partners on BP4GG reflected that to get maximum business engagement whereby they can internally justify the input of significant resource, they need to co-create initiatives that will have a demonstrable effect on their supply chains. As Danny Miles at Morrisons states, business involvement in projects ‘needs to be commercially viable, especially in food supply where margins at retailer level are extremely thin. The more material and important the products and geographies involved are, the more supportive and engaged that business will be.’ Partners also discussed that whilst FCDO can start with more targeted initiatives that get high engagement from private sector collaborators, the FCDO will play a crucial role in finding ways to broaden these initiatives and use them to shape more systemic solutions.
7. Deliver using a lean independent management function to ensure accountability of all partners All business partners have reflected that an independent management function has been essential to BP4GG delivery. The fund manager has provided oversight, conducted essential due diligence, kept partners accountable, and coordinated knowledge & learning. They have also clearly communicated the objectives and expectations of all parties and implemented strong governance and measurement. Danny Miles at Morrisons affirms that ‘Businesses need clarity over what they are committing to (resource and funding) and over what time period, but then need to be held to account to deliver their part. There also needs to be stronger engagement of suppliers involved in the process as they are typically heavily involved in delivery.’ Aisha Aswani at Co-op also notes that the position of neutrality is important, as having an individual retailer at the forefront, for instance, could be a barrier to other retailers getting involved. She also noted that INGOs and trade bodies, such as ETI and Fairtrade have a function here as facilitators. Such an independent actor can help to craft a shared narrative between partners, the ‘bit that’s missing is often how to tell those stories when it’s a collaborative project.’ In conducting this management function, resource needs to be proportionate to the size of the project and factored into the assessment of value for money in delivery. The roles of NGO partners managing delivery consortiums and a fund manager need to be distinct. Along these lean principles, tactics of smart communication need to be employed, including having the right people, in the right meetings, at strategic times. Pascale Schuit at Union Roasted also emphasises the need for information to be tailored so each stakeholder is clear on present status and any actions needed. Caroline Downey at MM flowers also favours the use of small, targeted working groups.
8. Retain flexibility and agility The private sector needs to be highly responsive to the changing context. To do this it is optimal to work with an end-goal in sight but remain highly flexible about the means of achieving it. Whilst an independent management function works well in many instances, it is also possible to have private sector partners out the front, driving initiatives. Whilst this won’t be appropriate for all partnerships, and not all private sector partners will be wanting to put in this much resource, for those who are it can aid in speedier and leaner delivery, with a lower administrative cost.
9. Manage risk collaboratively to seed innovation BP4GG has been able to use a portfolio spread of partnerships to balance risks. The delivery team has spoken in favour of using anchor partnerships with long-standing delivery partners, alongside more un-tested but potentially innovative ‘unusual suspects’. These anchor partners can themselves be the access point for creating multi-stakeholder initiatives which stimulate a wider industry-wide response. Fiona Sadler at Marks and Spencer concurs, encouraging the FCDO to ‘work with retailers to access their extensive network of smaller brands, retailers, and NGOs. They will have networks across countries of excellent potential partners who have never interacted with the FCDO but can have especially deep impact in the areas they operate in. Tap into these corporate networks via regular catch-ups.’ Fiona also observes that the reputational risks being managed by the FCDO are often the same as those being managed by brands, retailers, and others. The FCDO and business can learn from each other and have a shared approach here. The answer isn’t necessarily an aversion to action so much as a clearly messaged rationale for intervention. BP4GG has been a
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reminder that catalytic funding for innovation will come with inherent risk – if the risk appetite in the FCDO or the business is too limited to be able to facilitate these then this will inhibit the degree of deep-rooted systemic change that can be affected. Also, we have seen through BP4GG that identifying, accepting, and reducing risk upfront by sharing it helps in successful partnerships which also lay foundation stones for longer term trust.
10. Generate learning, share & manage knowledge A focus on learning is a significant value add that the FDCO can bring, and has brought, to BP4GG, which focused on learning and communicating with a purpose, using ways of engaging that are based on the principles of ‘attention economy’. Both private sector partners and the BP4GG delivery consortium have reflected that there has been a significant impetus to capture learnings and to bring people together in learning forums than might not have been the case if businesses had funded the facility independently. To gather and disseminate this learning effectively, it is fundamental that materials are produced that people will engage with– both in content, format, and means of distribution. Understanding how audiences are consuming content can be done using digital metrics, but also by asking for feedback on what people are finding useful, in order to seek the sweet spots for traction in the marketplace. Any push for learning should be as searching and strategic as possible and have broadest possible resonance beyond just a project’s immediate stakeholders. Setting the right cultural conditions amongst partnerships for this open enquiry is, again, a crucial enabler. David Alder and Pablo Martinez at MWW advise that partners are used as fully as possible for co-creating and disseminating learning given their own extensive networks of important stakeholders.
Conclusion and recommendations Whilst the range of global challenges and opportunities presented by the SDGs are reaching a crescendo of urgency, accordingly, has there been a concerted response from the private sector in seeking to work with governments and other actors to meet these challenges. The success of the BP4GG programme has demonstrated that the FCDO can harness the skills, reach, and momentum of these companies, and do so rapidly with excellent results. Certainly, partners of the BP4GG programme have described a groundswell of determination to tackle the systemic issues thrown into such sharp relief by COVID-19, presenting an opportunitiy that is ready to be seized by the FCDO. To do so, businesses have advised on some clear and concrete ways the FCDO can build on this success and promote coalitions of action. These steps include: • • • • • •
Articulate the FCDO’s key capabilities and priorities for action, whilst identifying clear access points for businesses to link in with the FCDO (and wider UK Government). Join SME, industry & cross-industry forums to get a broader picture of issues, perspectives, and different priorities for action. Bring together smaller coalitions around a refined set of issue areas, test the willingness and ability of corporate partners to co-create initiatives around these. Seek to bring in capabilities from wider UK government and the FCDO country office network to bolster the offering from the FCDO to business in co-delivering solutions. Pilot initiatives with tested partners, seeking to bring in a broader coalition of partners as initiatives gain traction. Document and share learnings and seed innovations and behaviour changes to catalyse wider systems change.
Partnerships will be crucial to delivering on the commitments enshrined in the SDGs and made at forums like G7 and COP26, as recognised in SDG17 (Partnerships for the Goals). The FCDO can play a leading role in bringing the strengths of government and the private sector together to tackle these challenges.
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VSCF Vision “To enable vulnerable people and supply chains to recover from and remain resilient to the economic and social impacts of COVID-19, by leveraging the reach and influence of responsible businesses through partnerships.”
VSCF Mission “To enable recovery and resilience from the COVID-19 pandemic by forming strategic partnerships with global businesses. Working within supply chains in Africa and Asia, we will test and scale approaches to provide additional health and safety support, increase incomes, safeguard jobs, and ensure continuing access to markets. We will support vulnerable people within supply chains to recover from COVID-19, and support responsible businesses to build on these experiences to become more sustainable.”
Business Partnerships for Global Goals is a UKAid funded programme implemented by Mott MacDonald, with support from Accenture Development Partnerships and IIED. We partner with UK and international retail brands, not-for-profit organisations, farms, and factories to provide economic, social, and health benefits to around 1 million vulnerable women and men impacted by COVID-19 in Africa and Asia. Mott MacDonald Limited. Registered in England and Wales no. 1243967.
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