Livelihoods Connect lessons, experience and views on sustainable livelihoods

The Business - Poverty Interface: Initial Thoughts on Responsible Business and Sustainable Livelihoods
(Mick Blowfield: Natural Resources Institute UK) 26 June 2000

	The agendas of the international development and business
	communities are converging and, though for often for very different reasons, they are discovering common ground. Development needs business because of the impact of globalisation, the decline in aid spending, and the growth in Foreign Direct Investment. Business needs the development community because the reputation of certain companies (especially those with a high profile on the international stage) can put in jeopardy by poor performance in developing countries. Maybe more important still is that poverty affects business by its impact on sustainable production and market growth. Stability, a strong legal framework and good governance are requirements for sustainable livelihoods and sustainable business. Adequate human capital and sustainable natural resource capital are likewise important for sustainable livelihoods and sustainable business. A responsible business is one that considers its social and environmental impacts in addition to the financial bottom-line. The development of timber certification, fisheries certification, organic agriculture, and good agricultural practice standards are just part of the attempt by business to manage and be accountable for its performance. There is also the development of social standards for workers, and the growth in fair-trade and conservation-driven trade from small producers. All of this is covered by responsible business. But responsible business is still problematic. There is a strong legacy of anti-business feeling in the development community, and also resistance to any notion of companies having responsibility other than to shareholders and customers. There are questions of language (e.g. is sustainable in the context of 'sustainable livelihoods' in any way similar to sustainable in the context of 'sustainable business'?), and also definitions of responsibility (where does business responsibility end and State responsibility begin?). And of course there are a million questions about approach and best practice - emic versus etic approaches, process versus performance, the right approach to doing and showing good performance, etc. It would be good to explore some of these questions further, which stem from collaborations between NRI/NRET, CDS Swansea and Oxfam who were co-founders of the Social Dimensions of Business Practice Resource Centre. Thoughts and contributions to a Responsible Business theme within the Post-it Board would be very welcome. Mick Blowfield (NRI)