Linked to willingness for change, a primary driver for change in business practices is the legal framework. Whether this is in place or not will help you to determine whether to prioritise direct engagement with a company, or indirect engagement, for example, through influencing the government, finance providers and/or consumers and communities. See the table below.
Scenario 1 |
Scenario 2 |
Scenario 3 |
Weak public policies & weak governance (no implementation) |
Existing public policies & weak governance (no implementation) |
Existing public policies & good governance
|
Priority on working with the government to enact regulation
|
Priority on strengthening implementation with government and/or business |
Priority on scaling up innovative practices with business
|
*Daum, I. (2016). Supporting public policies for business to value and conserve biodiversity. Unpublished.
Influencing through government or financial policies
Legal drivers are the most influential on corporate practices. For example, as illustrated in a paper published by One Earth, a lack of robust environmental impact assessment regulation frequently constrains company's ability to operate in accordance with best practice management of biodiversity.
If the appropriate laws and policies are not in place, your approach could be to engage government agencies and regulators to try to introduce a legal framework, such as through providing evidence and advice and participating in the design of legal frameworks
This does not rule out opportunities to encourage companies to improve their environmental and social practices on a voluntary basis. Some international companies are not in full control of their supply chains and can be open to taking action if they are alerted to infringements, especially if they already have a global commitment in place. See the example of Mighty Earth’s Rapid Response monitoring system for palm oil and other commodities.
If a company and/or government do not respond, you could mobilise public support to create reputational triggers for action through the use of democratic tools in order to instigate social change. Actions can include: information gathering and awareness raising (for communities, media, governments); networking, joining social movements for change and linking international networks to local action and/or lobbying; and, influencing people, policies and systems.
Even when there are laws and policies in place, the political or ‘civic space’ may be closed or dangerous for organisations trying to bring about change. In some countries, NGOs face retribution for ‘threatening’ corporate interests and the status quo; others can be shut down overnight when regimes change.
In these cases, the best option might be to work indirectly with stakeholders outside of the country, for example through financial institutions who are funding activities in your context.
More than 100 financial institutions have adopted the Equator Principles, which provides a framework of environmental and social safeguards as part of the risk management procedures. Through their grievance mechanisms or directly contacting the institutions, you can support implementation of their policies that embed social and environmental values into business decision-making. The Principles can offer a benchmark for financial institutions in your own country.
Influencing through direct engagement with business
In cases where the law is adequate and well implemented and/or where the action desired is relatively innovative and goes beyond best practice direct engagement with a company may be most effective.
There are a range of ways to engage with companies (as the Network for Business Sustainability illustrates in Figure 2). You may start with information sharing or creating connections with communities, as a way to build up trust and mutual understanding, ultimately aiming to support change in corporate policies and actions on the ground.
While your primary motivations are different, there is potential to find a shared concern and willingness to find a solution together, especially with companies that see their corporate responsibility beyond profit maximising for shareholders.
There a number of guidance documents available on how to build successful business partnerships including:
- Multi-stakeholder partnerships guide (Wageningen University) (available in English and French)
- Sustainability through Partnerships (Network for Business Sustainability)
Designing your strategy
In any situation, no single approach is likely to succeed. You may need a combined strategy of direct and indirect action, and to work with other partners. Consider what you and your organisation have the means to do, and what others are in a better position to do, in terms of expertise, influence and resources. International NGOs tend to take a sectoral approach, such as working with agriculture or mining, to generate change across the industry, while national or local CSOs understand the challenges of power dynamics at a site level.
Useful Resources
- Webinar - Using policy levers to transform business practices (read a summary and listen to the recording)
- Webinar - Introduction on how to engage business (listen to the recording)
- Introductory course on environmental law (in English, French and Spanish)