5. What are the challenges for USAID in working with the private sector on CSR health partnership?
There will, of course, be many challenges along the road to building health partnerships with the private sector. USAID and the private sector have differing cultures, professional goals, ways of communicating and governance structures. This can make it difficult and complex to build the mutual trust and commitment needed for working together. Also, from the business perspective, the public sector and NGO’s often fail on business benchmarks–on-time and on-budget performance. It will be necessary to overcome these cultural and operational differences, in order to lay the groundwork for a strong and lasting partnership.
Another challenge will be for USAID and the private sector to find a common ground on which to work. This will require resourceful thinking, as there are no “cookie cutter approaches” to partnership–each partnership will need to be especially tailored to fit each private sector company or organization. Historically speaking, it has often been difficult for the private sector and USAID to find a standard contracting mechanism that can facilitate a medium -to long- term partnership: each partnership will have its own financial, legal and contractual frameworks.
These new challenges will require innovative solutions and creative, flexible approaches.6. How can USAID and private sector mutually benefit from CSR health partnership?
6. How can USAID and the private sector mutually benefit from CSR health partnership?
Both USAID and the private sector have global reach and resources. Through CSR partnerships, these resources can be harnessed to promote a synergistic approach to improving the health status of local communities. When USAID and the private sector work hand-in-hand in addressing common health issues, the stream of benefits for consumers can multiply. With leveraged resources, USAID will be able to extend its family planning and reproductive health program efforts through work-based, market-based and community-based initiatives in places where the private sector has a presence. In turn, improved worker health can positively affect private sector bottomline productivity factors such as absenteeism and employee morale. With CSR investments in community health, the corporate brand and image are enhanced among key stakeholders. To the extent that the health initiative relates to the company’s core business objectives, the sustainability prospects of the health initiative are improved, since some companies invest in a community for the long term. Successful CSR partnerships can help raise awareness of public health issues among influential corporate leaders. They can also help build American public support for international health programs.
7. What role could host governments play in CSR partnerships?
In developing countries where USAID has a presence, USAID primarily works with host governments through a bilateral development framework. Therefore, if USAID is to become involved in CSR partnerships, host governments must be supportive.
The specific role of the government in any CSR health partnership will depend on the nature of the envisioned initiative. A partnership between the corporate and NGO sectors would not necessarily need the government’s active involvement. Nevertheless, the active cooperation of the health ministry or the local government would be essential in enabling linkages with community infrastructures or public health facilities. Whether or not the government is a full partner in the CSR initiative, or whether its role in the initiative is formal or informal, keeping the government well informed about the initiative enhances the environment for the initiative’s future success. Governments have resources that can be leveraged, such as funds, staff, expertise, and infrastructures. In countries where there are ongoing health policy reforms, CSR partnerships would be a strategic way of implementing the action agenda.
8. How can CSR partnerships help enhance the prospects of USAID’s Global Development Alliance (GDA)?
On May 10, 2001, Colin Powell announced the Global Development Alliance as USAID’s new business model and as the first pillar of its reorganization and reform strategy.3 The GDA is based on the agency’s recognition that the dynamics of international development are changing. No longer are governments, international organizations and multilateral development banks the major sources of development funding and expertise. Rather, in the last decade, the private sector, including the corporate sector and private foundations, has had an increasing role in catalyzing human and social development. Through GDA strategic alliances, USAID aims to mobilize resources for addressing international development issues. Both GDA and corporate social responsibility partnerships aim to stimulate new technologies and investments by bringing in new actors and ideas to the development arena. Both also recognize the corporate sector as a powerful force for promoting greater productivity and social change. Corporate social responsibility partnerships can be an effective vehicle for USAID missions to draw in new resources, new ways of reaching target populations, and innovative program initiatives.
