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Parliamentary Briefpublic capacity.Regardless of the differences, most companies havethe potential to make a contribution to the MDGsthrough one or more of the following three areas:1. Core business operations and value chains (seeBruce Jenks’ article on page 13 for case studies of companieswith profitable business models that act as drivers ofMDGs)2. Social investment and philanthropy (on page 5Paul Skinner explains how Rio Tinto invests in the communitiesin which they operate)3. Public advocacy, policy dialogue and institutionstrengthening (David Wheeler and Sahba Sobhaniprovide a study of how business can engage in advocacyand dialogue on page 9).Large firms are now acknowledging that combatingpoverty is not only important for contributing toa stable operating environment and managing risk,but can also represent a major opportunity. They areimplementing new business practices, often in partnershipwith public and civil society bodies, in orderto develop these opportunities.Political leaders and governments are, in turn,publicly supporting company activities that contributeto the MDGs. For example, UNDP’s GrowingInclusive Markets initiative is a strategic effort bringingtogether business leadership coalitions, donors,universities and foundations to study and promotemore inclusive corporate value chains and effectivepublic-private partnerships. UNDP’s GrowingSustainable Business programme is now operating inover 12 countries and many other UN agencies andbilateral donors are developing dedicated privatesector units and partnership building programmes.Another example is the MDG Call to Action, aninternational effort begun by the UK government andcurrently supported by 48 Heads of State and over 60CEOs. Within this broader initiative is the BusinessCall to Action, aimed at engaging the core competenciesand value chains of business to accelerate progresstoward growth and the MDGs.The Clinton Global Initiative is another nongovernmentalorganisation launched within the pastfive years which engages business, philanthropic andcommunity leaders to work on practical projects insuch areas as education, energy and climate change,global health and poverty alleviation. In addition, theWorld Business Council for Sustainable Development(WBCSD)-SNV Alliance is helping to create inclusivebusiness opportunities by linking local communitieswith big business.At a local level, social entrepreneurs and small andmedium enterprises (SMEs) continue to make a majorcontribution to the MDGs. Most of the world’s privatesector activity takes place at this level, rather thanwithin and between large firms.Contact between large firms and the SME sectortakes place through company supply chains. As such,enterprise development and business linkage initiativesand other projects to transfer skills, technology andfinance to small companies and social enterprises is oneof the most important contributions that large nationalcompanies and multinational corporations can maketo the MDGs.Photo: Adam Rogers/UNCDFThe business responseArticles in this special report exemplify the growingevidence that many companies are making a seriouseffort to align their core business functions with theneeds of the societies in which they are operating. Eventhough business solutions often require complex collaborationwith non-traditional partners as well as asignificant re-think of conventional business models,there are a growing number of companies that haveprofitably navigated these challenges, and the developmentbenefits appear to have been significant. However,despite these signs of progress, such projects must beurgently replicated and scaled up if the MDGs are tobe met.More work is needed on evaluating what worksand what doesn’t — both in terms of new businessmodels and partnerships, as well as public policyinnovations.There is a need to build greater awareness andcapacity within business and government on theissues at stake, the business case for engagement andthe tools for engagement. Above all, there is a needto engage thousands more companies, ranging fromestablished multinationals to the emerging corporateleaders of Asia, Latin America, the Middle East andAfrica.While the private sector is playing an increasinglyimportant role, much more could be achieved withgreater vision and leadership on the part of businessleaders themselves and with better policy frameworksand incentives from government.The Global Business Coalition on HIV/AIDS,TB and Malaria notes, for example, that companiesare currently doing ‘a fraction’ of what they could bedoing in order to address these diseases. Market incentivesand competition between companies may providefurther impetus. Governments, multilateral groups andlarge NGOs in turn can all show leadership by recognisingand encouraging the business contribution, aswell as collaborating on solutions.Progress charts from the UN Millennium DevelopmentGoals 2007 report prompt a set of questions: whatproportional contributions have private sector effortsmade to the MDGs, versus public and civil societyefforts? Which initiatives have been most successful,and what were the success factors? What can be learnedfrom unsuccessful initiatives?At the moment it is hard to answer these questions.This in turn raises a further point: meeting the MDGsis, to a large degree, a hugely complex information managementchallenge. The best information managementskills in the world lie in the biggest and most successfulcompanies. Harnessing such skills in the context of theMDGs may be a crucial success factor in achieving thegoals.Dave Prescott is a freelance writerspecialising in social issues at the interfacebetween large firms and internationaldevelopment. Jane Nelson is a senior fellowat Harvard’s Kennedy School and directoro ofbusiness leadership and strategy at the IBLF.This article is adapted from the authors’ workBusiness and the MDGs: A framework foraction. 2nd Edition. IBLF and UNDP 2008.OCTOBER 2008