Responsible and Inclusive Business in Myanmar - Report Launch

CSR Asia launched its report “Responsible and Inclusive Business in Myanmar” in Yangon on Monday, 3 June 2013. The event brought together leaders, practitioners and experienced observers of the rapidly changing economic development and investment context of Myanmar.

CSR Asia's latest thought leadership report lays out the role that the private sector can play in contributing to the sustainable development of Myanmar through responsible and inclusive business strategies. It contains useful information for companies operating in or considering investing in Myanmar.

At the launch event, local and international participants contributed to interesting discussions about creating a responsible business environment and their experiences and visions creating business models that create jobs and help with poverty alleviation strategies. Key discussion points included:

• Social dialogue is important and refers not only to communication from large multinational corporations to small, local SMEs but also refers to interactive and considerate dialogue between all stakeholders.
• Employment opportunities and skills and capacity development are urgently needed. Responsible organisations should think of investing and transferring appropriate technology that creates jobs and business cluster opportunities at the local economy level. “Appropriate technology” does not necessarily refer to the most advanced technology (which often displaces jobs) but to technology that may be labour intensive and supports the country’s and people’s development.
• There is a great risk that Myanmar becomes a divided economy, where Western companies follow international norms of behaviour whilst leaving local companies behind. Forced into a corner of competitive disadvantage, these local small and medium sized enterprises (SEMs) potentially act in a parallel economy.
• Many businesses will need land and this stress puts pressure on the already tense situation regarding land disputes, land grabs and forced evictions. When businesses go to acquire land, they should understand the history of the relevant land and engage with stakeholders in a meaningful way, including local communities. Although there is no easy way to solve this problem, land tenure can contribute to instability and responsible investment is required.
• Although development is incredibly fast and the government is accelerating its reform process, international organisations cannot expect all problems to be solved overnight. Responsible political involvement and advocacy are required. Foreign investors also have a role to play by being a role model for responsible behaviour and inclusive business.

CSR Asia’s report includes practical recommendations for businesses that are either already operating in Myanmar or planning to invest. These were recognised and further discussed by participants at the two events:

1. Get the basics right

Operating in uncertain and rapidly changing environments is particularly challenging because businesses face a variety of financial, legal and reputational risks, including bribery and corruption, incomplete legal frameworks and a weak rule of law, ethnic diversity and conflicts, underdeveloped public services, out-of-date skills sets and technological gaps. Organisations need to ensure that certain basics exist and are well implemented including policies and procedures in respect to responsible business activities. Transparency and accountability will be important for responsible organisations. Understanding the unique business environment and social capital of the country is required and needs to be incorporated in all business activities and strategies. 

2. Engage with your stakeholders and create partnerships for development

Ongoing stakeholder engagement with legitimate and representative stakeholders and the establishment of networks and partnerships are vital when operating in Myanmar. Our research highlighted that Myanmar has a very relationship-based society and that well-functioning networks are key to overcoming obstacles. Partnerships and engagement with authorities, institutions, industry associations and business peers will make activities more efficient and effective, and are an important contribution to development. This should be supported by the creation of proactive partnerships for development. 

3. Compensate for incomplete regulation frameworks

Organisations need to remain informed about Myanmar’s ongoing political development and reform process. New laws and regulations are continuously being established and need to be understood in the country’s specific context. Knowledge transfer and advising governmental and other institutions on best practices is important. 

4. Consider both risks and responsibilities

Investments and the establishment of business operations in Myanmar must be planned and executed properly. Organisations are well-advised to plan their market entry thoroughly and avoid a rapid rush into this promising but challenging market. The Myanmar Investment Commission (MIC) requires organisations to develop a comprehensive business plan that incorporates CSR within their business strategy, activities and operations. Due diligence and risk assessments are key to establishing a safe and profitable business. Responsible organisations need to map out contributions to Myanmar’s legal, environmental, political, economical, technological and social capital to foster sustainable development. 

5. Create new inclusive business models

Inclusive business models expand access to goods, services and create livelihood opportunities for those at the base of the pyramid and for marginalised groups, in commercially viable and desirably scalable ways. Businesses can create opportunities along corporate value chains and build clusters of economic activity amongst local communities and entrepreneurs. Inclusivity can be facilitated through employment, the establishment of new and inclusive customer markets or through business linkages. However, inclusive business is a long-term commitment to co-creation and the promotion of local entrepreneurs, where partnerships and the establishment of networks are helpful in achieving sustainability.

The next event presenting the findings of the reports will be on 17 June 2013 in Hong Kong, kindly hosted by State Street. Please find more details about the event and registration process here. 

source: CSR Asia

http://csr-asia.com/weekly_detail.php?id=12265