Kenya: Firms Back UN Plan to End Poverty

from All Africa

The East African Standard (Nairobi)

John Oyuke
Nairobi

Efforts by United Nations Development Programme (UNDP) to involve business institutions in development and poverty reduction are rapidly gaining favour with local firms.

The initiative, dubbed, Global Compact Network, looks at two key objectives designed to ensure companies engaged observe its ten principles.

These include human rights, labour standards, the environment and anti-corruption part of business strategy and operations.

"Business has traditionally focused on profit and growth. However, in today's globalised world, the overlapping objectives are increasingly clear - building markets, combating corruption, safeguarding the environment and ensuring social inclusion," Ms Elizabeth Lwanga, UNDP Resident Representative in Kenya says.

She identified Safaricom, Magadi Soda and Standard Chartered Bank as some of the local firms that have embraced the initiative.

The initiative to be officially launched in Kenya next year also has Nestle, TetraPak, Mabati Rolling Mills, Eastern Produce, Vestergaard Frandsen, Sun & Sand, Cimbria and Old Mutual Kenya.

Companies participating in the Global Compact are expected to act both responsibly, by implementing universal principles into their business practices, strategies and operations. The firms are also required to take action through partnerships in support of broader United Nations goals.

According to the UNDP, the Global Compact can have important benefits to the companies.

For instance, when a company joins the network, it sends a message to consumers and media that it is equally interested in the welfare of its workers, society and the environment.

Joining the Global Compact also gives companies' greater public recognition and strengthens their ties with Government and non-governmental organisations.

"There is need to raise awareness and build support for the idea that business has a role to play in contributing to poverty reduction and that companies can profit by serving the poor," she said during a meeting with Kenya Global Compact partners in Nairobi.

Also present were officials of a second UNDP international initiative, Growing Sustainable Business for Poverty Reduction (GSB), which was introduced at the World Summit for Sustainable Development in Johannesburg in 2002.

The event also familiarised participants with the Growing Sustainable Business mechanism, which facilitates business-led enterprise solutions to poverty and provides a framework through which the risks associated with specific private sector investments in developing countries can be mitigated.

The discussions focused on how business can help Kenya improve its domestic investment environment, grow the domestic business sector and meet the development targets spelled out in the Economic Recovery Strategy (ERS).

The Global Impact initiative is an offshoot of the World Economic Forum in which the outgoing United Nations Secretary-General Mr Kofi Annan encouraged business leaders to join.

This was to bring companies together with UN agencies, labour and civil society organisations.