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Click here for a list of participants.

Click here for a PDF version of the summary.

On December 13, 2005, the Global Public Policy Institute (GPPi) in partnership with the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ), the Hertie School of Governance, the Global Compact, and the German Ministry for Economic Cooperation and Development (BMZ) hosted the conference Business Unusual: Partnerships as Strategic Investments. Leaders from the public and private sector and more than 120 participants from business, civil society, non-governmental organizations (NGOs), government, the United Nations and the media gathered at the GTZ Haus near Potsdamer Platz in Berlin to discuss the benefits and challenges of multi-stakeholder partnerships. Panel discussions, workshops, and presentations facilitated exchange on themes such as how to make partnerships enticing and accessible to businesses, how to build trust between sectors, and how to create projects that are both financially and globally sustainable. This conference was made possible by substantial financial support of DaimlerChrysler AG and Deutsche Post AG.

In his opening comments, Wolfgang Reinicke, Director of GPPi, highlighted the accomplishments of public-private partnerships, emphasizing that the most successful have taken a long-term approach as opposed to a medium-term "social marketing" goal. This sustainability can only be achieved if companies approach partnerships as strategic investments rather than merely short-term means to boost public relations, he proposed. To this end, he suggested that business partners enter partnerships that tap into their core competencies, expect a measurable return from the partnership, measure the impact of the partnership and, above all, take risks. In short, an entrepreneurial mentality instead of a public affairs mentality is the key to sustainable public-private partnerships.

In his presentation of the report Business UNusual: Facilitating United Nations Reform through Partnerships, Jan Martin Witte, Associate Director of GPPi, elaborated on Reinicke's introduction with examples of successful past and current partnerships. This recently published report produced by GPPi and commissioned by the United Nations Global Compact Office outlines the different types of public-private partnerships, presents case studies of successful cooperation, and indicates how they have been and will continue to be catalysts for change within the United Nations. Witte suggested that keys to successful partnerships include a degree of local ownership and collaboration between public and private sector partners that goes deeper than a positive public image in exchange for financial contributions. The UN must also make itself better suited to partnerships, he urged. According to survey results contained in the report Business UNusual, the UN is often perceived to be a difficult or ineffective partner due to complex legal guidelines, lack of coherence in partner selection, lack of coordination within the UN system, and a lack of capacity in country and regional offices. However, Witte pointed out that the UN in more recent years has started to work hard at transforming itself into a more effective partnership player. For example, programs have been designed to build capacity at the country and regional level with the goal of fostering bottom-up partnership growth and management. To increase the effectiveness of partnerships, Witte called on all involved to implement improved interface skills, better impact assessment of partnership projects, and more circulation of best practice examples to facilitate learning.In the discussion that followed, "Philanthropy or Strategic Investments? Business and Civil Society Perspectives on Partnership with the United Nations," the panelists from the fields of business, law, economics, and development, contributed their personal practical experiences to the themes set out by the earlier presentations, discussing how well partnerships were working and how they could be improved. See below for more on the panel discussion.

Panel Discussion

Panelists:

Andrew Bone, Head of Public Affairs, De Beers Group of Companies

Luke Danielson, Independent Consultant (former Project Director, Minerals, Mining and Sustainable Development Project)

Luke Disney, Program Director "Moving the World", TNT

Jörg Hartmann, Executive Director, GTZ Public Private Partnerships and Global Compact Focal Point Germany

Kathryn McPhail, Principal, International Council on Metals and Mining

Valerie Weinzierl, Senior Project Manager Global Institute for Partnership and Governance, World Economic Forum

Moderator:
Julia Steets, Program Officer, Global Public Policy Institute

Key outcomes

• Qualities of effective partnerships
  o long-sighted and sustainable
  o all contributors have a vested interest and a share in the profits/outcome
  o cooperation, communication, and some degree of trust among partners
• The recipients of projects should be engaged in the process ("local ownership")
• Reasons for business to become involved in partnerships with the public sector:
  o Investing in employees, employee motivation, and building loyalty
  o Distinguishing themselves from the competition
  o Risk management

Public-private partnerships, especially linking business and the United Nations, have been heralded as effective instruments for United Nations reform and for harnessing the financial and substantive resources of the private sector to ameliorate social and development problems. Yet, not all partnerships are equally effective. What are the hallmarks of successful partnerships and how are results measured? What hindrances prevent a more effective collaboration? What can make partnerships attractive to businesses?The panel "Philanthropy or Strategic Investments? Business and Civil Society Perspectives on Partnership with the United Nations," addressed these questions, focusing on the optimal role of the United Nations in public-private endeavors and the barriers, both mental and substantive, that arise in cooperation and communication across sectors. Drawing on his experience with De Beers in Angola and on the Kimberley Process, Andrew Bone stated that partnerships can serve to bring different sectors together, encouraging dialogue and cooperation. He suggested that sometimes the UN's best role is to endorse and validate such processes, rather than to be an active driver or leader. Valerie Weinzierl, Luke Danielson, and Luke Disney turned the discussion to the other side of public-private cooperation, addressing how to improve businesses involvement. Danielson, trained as a lawyer, said that in this case, incentive instead of law is the best way to govern business participation. He proposed equal participation in the partnership with a share of the profits/outcome as well as shared management in long-term collaborations as the best way to ensure optimal business participation. From his experience heading TNT's Moving the World program, Disney cited the "value added" to a brand that comes from building a reputation for public service both within the company and with the public as a key motivation for his company's embrace of public-private partnerships. 66% of employees, he said, were prouder to work for TNT because of its Moving the World program and, as the program is treated like any other business unit, his job is to increase that rate. Questions from the conference participants raised issues of trust and cooperation between sectors. Jörg Hartmann suggested that bureaucracy was an impediment to both private and public organizations, despite the common prejudice that it exists only in the public sector. The World Health Organization's immunization campaigns were given as an example of the capacity of public organizations to be efficient. The common mistrust between partners from different sectors can be an impediment to partnerships. Suggestions for building trust included, focusing on individuals as opposed to the organizations, increasing the sustainability and transparency of projects, creating partnerships where all partners contribute equally, and building consensus slowly, while offering concessions to the other side to show good faith.

Workshop: Partnerships for Disaster Relief: Learning from the Tsunami Experience
Click for Summary (by Thorsten Benner)

Resource Persons:
Jörg-Eduard Krumsiek, Director, Corporate Cultural Affairs, Deutsche Bank AG
Christelle Loupforest, External and Donor Relations Officer, United Nations Office for the Coordination of Humanitarian Activities (OCHA)
Susanne Meier, Director, Strategic Partnerships, Deutsche Post AG
Moderator:
Thorsten Benner, Associate Director, Global Public Policy Institute

Key outcomes:

• "Stand-by partnerships" for better coordination of relief efforts are key to improving disaster preparedness.
• Successful partnerships need to leverage core competencies of respective partners.
• Cash contributions are crucial to ensuring swift response to disasters.
• "Rush to help" needs to be combined with a respect for the experience of disaster relief professionals.

Workshop: Promoting Health through Partnerships
Click for Summary (by Cecily Brewer)

Resource persons:
Achim Deja, Corporate Social Responsibility, Karl Storz AG
Sarah England, Medical Officer, Stop TB Partnership, World Health Organization (WHO)
David Kim, Global Health Initiative, World Economic Forum
Andrea Knigge, Global HIV/AIDS Strategy, DaimlerChrysler AG
Moderator:
Paula-Marie Hildebrandt, Project Manager, GTZ and Global Compact Focal Point Germany

Key outcomes:

• Cross-sector partnerships need to find the right mix of government, NGO, and business participation with appropriate and effective roles for each.
• The most successful health partnerships in the private sector were able to evolve into self-supporting projects drawing from the company's core competencies and integrated into its business model.
• Advantages of partnerships involving the private sector:
  o Business often operates in areas where the public sector does not have reach.
  o Companies often have direct contact with local employees and governments.
  o Enterprise can encourage social change from the inside.
• Partnerships need to build on the success of mobilizing large multi-national firms to participate in HIV/AIDS partnerships and expand to other health issues including disease prevention.
• Create a set of guidelines similar to the UN Global Compact for NGOs and governments to encourage consistency of behaviour.
  

Workshop: Harnessing markets for development through partnerships
Click for Summary (by David Beffert)

Resource persons:
Kai Bethke, Industrial Development Officer, United Nations Industrial Development Organization (UNIDO)
Sanjay Gandhi, Global Project Manager, Growing Sustainable Business Initiative,United Nations Development Programme (UNDP)
Hans-Peter Schipulle, Deputy Director General, Ministry for Economic Cooperation and Development, Federal Republic of Germany
Reiner Lemke, Sustainability Manager, Deutsche Telekom AG
Moderator:
Melissa Powell, Project Manager, United Nations Global Compact Office

Key outcomes:

• Partnerships require a lot of effort. It takes time for business, the United Nations, and development agencies to be able to speak to and understand one another.
• Private investment is crucial for real growth. Public-private partnerships can serve as a tool in some cases to facilitate that investment; business can reduce its risk if it learns from and uses the networks and experience of organizations such as the United Nations and bilateral development agencies.
• The business case for partnerships is becoming more important for all around, regardless if the case is measured by profit, or recognition of the company's efforts by its placement on a sustainability index such as the Dow Jones Sustainability Index (DJSI), or less tangible benefits such as employee satisfaction.
• Building trust in partnerships is difficult, so transparency and clear plans of action coupled with consequent follow-through are vital.
  

Workshop: Building a Business Case for Sustainability Reporting
Click for Summary (by Julia Hartmann)

Resource Persons:
Alan Knight, Head of Standards, Accountability
Cornis van der Lugt, Program Officer, UNEP
Hans-Peter Meurer, Group Environmental Affairs, RWE AG
Ralph Thurm, Chief Operating Officer, Global Reporting Initiative
Moderator:
Nicolaus von der Goltz, Desk Officer PPP and CSR, Federal Ministry for Economic Cooperation and Development

Key Outcomes:

• Both pressure from financial markets and the public will further help to promote corporate sustainability reporting.
• Not only companies but also public agencies should publish Sustainability Reports.
• Companies put a big premium on the voluntary nature of sustainability reporting schemes and reject governmental regulation.
• The publication of a report should be the result of an internal process and dialogue and not just an exercise in collecting data.
  
  

Concluding Session

In the concluding session, Kurt Hoffman, President of the Shell Foundation, reiterated and expanded on many of the themes addressed throughout the conference. Painting a picture of a scene he had witnessed in Ethiopia-women and girls walking along the road burdened by loads of fire wood strapped to their backs for sale in the capital-he stressed the negative environmental, social, and economic repercussions of poverty. Using the Shell Foundation's partnerships as examples, he suggested that partnerships involving the private sector are an effective way to reduce poverty by creating jobs, freeing children to attend school instead of being forced to work at a young age. He showcased projects to help entrepreneurs in poor areas to gain access to the capital needed to develop their enterprises, emphasizing that the financing should be provided in partnership with the local financial sector, which would most likely see a positive return on their loans. In conclusion, he argued that the official aid machinery has failed to deliver on its promises. The United Nations and the many other institutions charged with lifting poor people out of poverty have not been able to accomplish their goals. It is time, Hoffman claimed, that private initiative and business entrepreneurship are put at the centre of international development efforts. In her comments, Charlotte Streck, Director of ClimateFocus, seconded Hoffman's readiness to support entrepreneurs in developing countries, stressing the role of partnerships in doing so. In addition, however, she also emphasized that without the support of the public sector, private initiative frequently does not live up to its full potential. The United Nations, she argued, often helps to foster the necessary framework conditions for private entrepreneurship in developing countries. While speaking in support of the United Nations, she concluded that the organization is often at its best when it establishes programs and then takes a step back to allow partners from the private and local sectors to take charge.