ENGAGING WITH THE PRIVATE SECTOR Gillian dell – transparency international Belgrade, 27 September 2018 Email: gdell@transparency.org

Why do it?

STEPS IN THE PLANNING PROCESS Identify overall aim (or goal) Identify key change objectives (or issues/targets) Identify key actors in decision-making processes and other stakeholders (or target audiences) Develop key messages (by audience) Identify key advocacy opportunities Design advocacy activities Risks & assumptions Monitoring & evaluation Budget & resources STEPS IN THE PLANNING PROCESS

STAKEHOLDER ANALYSIS

SPECTRUM OF ALLIES

Working with the private sector Process of tapping into or generating private sector interest in countering corruption and using UNCAC implementation and monitoring to counter corruption They are part of the problem, they are victims and they are part of the solution. How much engagement possible?

How to do it?

POTENTIAL COMPANIES TO ENGAGE WITH Companies that see corruption as bad for business and UNCAC as a viable channel for combating it Companies that prefer ethical business practices and believe they lose business to corrupt competitors Companies that see engagement on UNCAC as beneficial for their public image Companies with existing anti-corruption programmes that would like to see anti-corruption standards become more widespread Companies that have joined voluntary initiatives (e.g. UN Global Compact) that are persuaded of the benefits of joint action. Which others?

PREPARATION In order to systematically develop a private sector engagement plan, CSOs should follow 4 intuitive steps: Step 1: a CSO should identify and prioritize target groups within the local private sector (e.g. multinational enterprises) to utilize its limited resources efficiently. Step 2: a CSO should seek to understand the needs of the selected target groups (e.g. training, advise, tools) and their corruption-related challenges (e.g. extortion, facilitation payments). Step 3: a CSO needs to select activities that match the needs of the target groups. Step 4: a CSO should develop a clear private sector engagement strategy, which documents the major objectives, activities, effort, timeline etc. 1 2 3 4 Identify your target group Understand their needs Select your activities Plan your engagement

Step 1: Identify your target group The outcomes of this process should be visualized in a Prioritization Map. Target groups with a high degree of influence and a high likelihood of interest should be prioritized for engagement. CSOs facing limited resources and multiple target groups (in the “red zone”) can further prioritize according to: Contacts to target groups Knowledge about target groups and sectors Past experiences with target groups (also from other National Chapters), etc. high Other MNEs Some MNEs and some successful local ? Accounting & auditing companies? Other local companies medium DEGREE OF INFLUENCEr ??? ??? ??? low SMEs-Agriculture low medium high LIKELIHOOD OF INTEREST  Exemplarily visualization of a Prioritization Map. MNEs: Multinational enterprises; SMEs: Small and medium enterprises; SOEs: State-owned enterprises

Step 2: Understand their needs Each target group may have different needs relating to anti-corruption challenges that need to be understood by the CSO: The target group may need… …regarding the benefits of UNCAC Information Raising awareness Training Advice Tools Support for ‘leveling the playing field’ Public sector integrity Procurement etc. Whistleblowing Leveling the playing field Technical assistance to government International counterparts with whom to discuss issues

Step 3: Select your activities Private Sector Activity Framework (partial, adapted for UNCAC work) Degree of engagement Low Medium High Engangement partners Businesses Multi-stakeholders Influencers Awareness & Commitment Training & Support Business Coalitions In the following, each activity is described, providing general information as well as engagement advantages and disadvantages/constraints for a National Chapter. Advocacy The activities listed should not be seen as a sequential processes; typically, activities are conducted in parallel.

Step 4: Plan your engagement In order to increase private sector activities, it is recommended that CSOs develop a clear private sector engagement plan. A private sector engagement plan should include the following key elements: Strategic objectives for engaging with the private sector Definition of target group and outcomes of needs assessment Selection and prioritization of activities Work plan (detailed activities, resource allocation, delivery strategy) Timetable (max. 3 years) Other information (e.g. assumptions, output, performance measures, risks, growth potential) Engaging with the private sector should not be seen as a standalone endeavor within a CSO ; consequently, the strategy should also show how these activities interface with the overall activity portfolio of the CSO (e.g. engagement with the Public Sector).

FAQ: Why would the private sector engage with CSOs? ! Demonstrate value for private sector: Businesses may engage with a CSO if it is believed that the CSO can be of value to them, ranging from information provision to one-on-one training sessions or workshops. Credibility of CSO: Businesses may engage with a CSO if it is believed that the group has the knowledge and it understands business challenges and constraints. Reliability of CSO: Businesses may engage with a CSO if they present themselves as a reliable and predictable partner who follow through on commitments and will not cause them unpleasant surprises or embarrassment. Engage constructively and speak their language: Private sector and civil society have different languages and cultures. Companies may also sometimes feel threatened by CSOs. Try to learn their language and engage constructively for a good line of communication. ! !

For the private sector corruption is about costs FAQ: What should CSOs emphasize when engaging with the private sector? For the private sector corruption is about costs Costs to staff (can ruin reputation and result in sanctions) Company level costs (increases costs of doing business, diverts investment elsewhere) Economic and social costs (undermines the rule of law and keeps foreign investors at bay – preventing job creation and limiting sustainable development) etc.

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