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I. DEVELOPMENT CHALLENGE

About BCtA The Business Call to Action (BCtA) Alliance is a global advocacy platform providing public

recognition for the private sector’s contribution to development. BCtA’s mission is to enhance the

visibility, credibility, scale and effectiveness of inclusive businesses (IB) to achieve the SDGs by

benefiting those at the BoP. BCtA's value proposition for companies stems from its ability to provide

recognition and visibility to quality inclusive business models and support them in their IB maturity

journey towards better performance and increased development impact. BCtA’s value add as a

public platform leverages its unique multi-stakeholder/multi-donor structure and UN affiliation that

allows to effectively drive the inclusive business agenda globally and on national levels and ensure

widespread uptake and scale of quality inclusive business models and practices among the private

sector, development communities and governments. Worldwide, over 170 companies have

responded to BCtA by making commitments to improve the lives and livelihoods of millions through

commercially-viable business ventures.

Development context The past decades have been marked by significant gains in human well-being and hundreds of

millions of people have been lifted out of poverty. According to the 2015 Global Human

Development Report, income poverty in developing country regions has fallen by more than two-

thirds since 1990. The number of extreme poor people worldwide fell from 1.9 billion to 836 million,

and the number of people living in low human development fell by nearly 2 billion. Amid this

impressive progress however, the economy is not working for everyone, with many populations

excluded from opportunities to participate in and benefit from this progress. Over 800 million people

still live in extreme poverty and about one in five persons in developing regions lives on less than

$1.25 per day. In 2015, 204 million people were out of work, including 74 million young people;

more than 1.5 billion were in vulnerable employment. In addition, women are still overrepresented

in the population of people living in poverty, and gender barriers continue to deny women the

opportunity to realize the full potential of their lives. WEF’s 2017 Global Risks Report ranks income

inequality and wealth disparity as the most important trend in determining global developments over

the next 10 years. Those most likely to be left behind are those facing ‘intersecting inequalities’, or

economic deficits intersecting with discrimination and exclusion on the grounds of identity and

locational disadvantage1.

Inclusive growth is critical to building prosperous and resilient businesses and societies. By

developing inclusive business models, companies have much to gain from more inclusive economic

prosperity, including access to new markets, more innovation, gaining competitive advantage,

improving operating environments and contributing to greater social stability needed for markets to

function. In turn, the poor can benefit from increased access to needed goods and services,

improved productivity, employment and/or business opportunities, resulting in new or increased

earning, improved living standards and empowerment.

The convergence of key drivers - including the recently adopted Agenda 2030; the opportunity at

the Base of the Pyramid; the demand for the private sector contribution to the development agenda;

and interest from governments in building conducive IB environments - offers an unprecedented

opportunity to increase inclusive business uptake, scale, effectiveness and impact as market-based

solutions to achieve the Sustainable Development Goals.

1 Strengthening social justice to address intersecting inequalities post-2015, http://www.mdgfund.org/sites/default/files/Intersecting%20inequalities%20post2015%20ODI%20SDGF.pdf

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The Sustainable Development Goals (SDGs) redefine the development agenda globally. In

2015, the SDGs were agreed upon by the UN and the broader world community as the overarching

development targets to be reached by 2030. They provide a universal framework for action for all

societal actors. The Sustainable Development Goals (SDGs) explicitly underline the role of the

private sector to drive sustainable economic growth, eliminate poverty and protect the planet; and

the importance of public private collaboration. Rapid growth and improved living standards in

developing countries have created unprecedented demand for goods and services among people

at the Base of the Pyramid (BoP)2, whose collective purchasing power exceeds US$5 trillion3. Rarely

has there been a better time for companies to use inclusive business models to initiate or deepen

their investments in developing economies and contribute to the achievement of the Sustainable

Development Goals (SDGs) through co-financing and transforming business practices towards

sustainability.

Governments, multilateral agencies, private sector actors and a range of intermediaries are now working to operationalize the SDGs. Governments, with support from the UN, are now developing national accounting systems to track progress towards the SDGs. They also work to identify effective measures to achieve the required progress. These include new tools for collaborating with the private sector (e.g., social impact bonds, collaboration platforms). At the same time, the private sector is reviewing ways to create accountability towards the SDGs in its own reporting and planning systems. Although the global measurement architecture for the SDGs is still under development, it is clear already that there won’t be one mechanism only, but a variety of mechanisms that will be interlinked.

Inclusive businesses demonstrate effective solutions to contribute to the SDGs. These businesses include low-income people as consumers, producers, employees or entrepreneurs for mutual benefit.4 Because they are financially sustainable, they can scale and replicate, and thus achieve broad-based impact. On a more systemic level, they introduce innovations that can be adapted and replicated by others. Examples of inclusive business solutions can be identified for each of the 17 SDGs.

Yet, independent of size, sector or region, inclusive business models take time to develop, scale and mature. Among BCtA members alone, there is enormous variation in terms of scale, reach to the BoP and maturity – which are key enablers for inclusive business to deliver sustainable gains in poverty reduction and contribution to the SDGs.

In addition, it has become increasingly clear that scale up of inclusive business impact requires a conducive ecosystem. The inclusive business approach has its origins in business strategy, notably with CK Prahalad’s seminal 2003 book, “The Fortune at the Bottom of the Pyramid”. As a result, much of the initial attention of donors and other support institutions was on supporting companies individually in developing solutions to include low-income people, often with a focus on multi-national companies (MNCs) based in industrialized countries. The UNDP 2008 report, “Creating Value for All”, already showed that the challenge of building inclusive businesses is a systemic one, resulting from the poor market enabling environment in the slums and villages of the developing world. In recent years, donors have therefore sought ways to improve the market environment for inclusive businesses, e.g. by building global and local support infrastructure and

2 G20 Inclusive Business Framework: Base of the Economic Pyramid (or BOP) is used to describe men and women who are low-income or who lack access to basic goods and services. The low-income segment is commonly considered to include people earning up to $8/day in purchasing power parity terms (PPP). Setting the maximum in PPP terms adjusts the real figure to equate the relative purchasing powers amongst different countries. 3 World Bank Global Consumption Database. The estimated 4.5 billion new customers are located in 92 developing countries and emerging markets. Spending power in purchasing power parity (PPP) terms. Both figures per the Global Consumption Database: http://datatopics.worldbank.org/consumption/ 4 UNDP (2008) Creating Value for All

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creating new financing models. At the same time, national companies and social enterprises have taken the lead in creating and scaling up inclusive business solutions. Developing country governments are getting involved by supporting inclusive business solutions.

Establishing the link between inclusive business solutions and the SDGs is an important piece of this emerging marketplace. Creating accountability for inclusive business commitments and impact will not only allow companies to report their contribution to the SDGs, and governments to count that contribution. It will also enable companies and governments to identify effective ways of collaboration and co-creation, informed by hard and detailed evidence. Reaching out to poor populations will continue to be challenging on a financially sustainable basis. If the impact of inclusive businesses on the SDGs is to be scaled up significantly over the next years, support from governments will be essential. Where private schools receive fees from the public sector, private health workers can work in close alignment with the public health system, or off-grid energy solutions are tax-exempt, some market-wide impacts have already been documented. In return for public support, companies must display a high degree of accountability towards the taxpayer. A validation platform for inclusive business is required to enable this accountability.

A review of the existing inclusive business support initiatives confirmed that impact measurement and policy dialogue are the biggest gaps in the landscape (see Figure 2).

Current support landscape for inclusive business and its gaps BCtA is part of an ecosystem of many and diverse players that support inclusive business. They include donors and donor programmes, international organizations and government networks, development finance institutions, intermediaries and networks, impact investors, consultancies and research institutes. Figure 2 provides an overview of the key global players and their main activities.

The main gaps in the support landscape are in supporting impact measurement and policy dialogue. The main types of support provided by key players include awareness raising, knowledge creation and sharing, networking and peer learning, partnership facilitation and linkages, and funding. Critical gaps in the support landscape are impact measurement and policy dialogue. Inclusive business by nature targets both economic and social objectives. Yet, many companies lack the requisite knowhow and guidance to set up proper impact measurement systems. Policy dialogue is identified by many companies as critical for success, e.g. by removing regulatory constraints or aligning own activities with government programmes.5 However, companies often lack the knowhow and legitimate platform to engage in effective policy dialogue. Impact measurement and policy dialogue are closely intertwined, as effective policy dialogue requires solid empirical evidence, and policy makers and the public sphere are a key audience for the data generated through impact measurement.

As can be seen in the figures below, BCtA member surveys revealed that while impact measurement was not a service from BCtA that they have benefited from (given currently it is only provided to a select few), it is a service area that they would be willing to co-invest in.

5 G20 (2013) Policy Note on Inclusive Business

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Figure 1: Member survey findings on impact measurement

Note: + signs indicate the level of focus of organizations in a given area

Figure 2: Inclusive Business actor mapping and gap analysis

Looking at the emerging SDG marketplace, validating and strengthening links between inclusive businesses and public sector will become increasingly important to enable scaled solutions. More and more, the public sector is looking for ways to share implementation of basic service delivery functions with the private sector, to increase effectiveness, efficiency and innovation, while maintaining its responsibility for reach, quality and affordability. Governments are also providing incentives to companies that contribute to public priorities, such as mitigating or adapting to climate change, or creating job opportunities. To enable these types of public-private collaboration for the public good, solid accountability systems are necessary that ensure taxpayers’ money is spent effectively. Validating inclusive businesses, including reviewing the parent company and business model, as well as tracking progress on set targets, creates a space for more and more effective collaboration. The example of the BCorps certification shows that this kind of validation is sought after by both companies and the public sector. While BCorps certifies the management

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practices of a whole company for their sustainability and stakeholder-orientation, no such explicit validation exists for inclusive businesses and their orientation towards low-income people.

II. STRATEGY

Strategic Review Process and Findings

To inform BCtA’s Phase III strategy, the BCtA Secretariat conducted a strategic review together with

Endeva. The strategic review process included:

Figure 3: Strategic Review Process

Key take-aways from the Current Assessment step are detailed below. This steps included an

assessment of BCtA’s evolution and achievements, as well as engagement with key stakeholders

namely donors, member companies, and other IB players, to understand their perceptions of BCtA.

The BCtA was launched in 2008 as a global advocacy platform providing public recognition to the private sector's contribution to development. In July 2007, former UN Secretary General Ban Ki-moon, together with former Prime Minister of the UK, Gordon Brown, and other officials, called for a new global partnership to address a growing development emergency: the shortfall in progress towards delivering the Millennium Development Goals (MDGs). The Business Call to Action Initiative was officially launched on May 6, 2008 in London, when over 60 CEOs and senior executives of large companies signed the Business Call to Action Declaration. Companies committed to transform their core business to include the poor as producers, entrepreneurs and consumers, thus contributing to MDGs while ensuring profitability.

Since then, the BCtA has continued to consolidate its membership-based commitments of

inclusive business initiatives. By the end of September 2016, the initiative had 176 member

companies. BCtA has developed a wide, diverse and overall good quality member base, making

it the most balanced and representative active portfolio of inclusive businesses worldwide (Please

see Annex 11 for details). They include initiatives of multinational companies and large national

companies as well as small and medium sized companies and social enterprises. Signatories are

preselected and pre-screened, ensuring a high level of quality among the membership base (please

see Annex 6 for details). Many of the members are recognized as inclusive business leaders in their

domains.

BCtA has developed and tested its own impact measurement methodology. The BCtA Impact Measurement Services (BIMS) has been tested with 20 companies since 2014. BCtA’s support

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under BIMS has so far resulted in publication of four case studies documenting the learning from impact measurement6. Furthermore, as of November 2016, 13 companies have started collecting data; 15 have completed up to training of their field staff; and 18 are now developing customized measurement frameworks (theory of change; indicators; survey questions). Initial results confirm the value of this in-depth measurement approach for both the company and the public interest. DfID’s Project Completion Review (2016) found that “BCtA Impact Measurement Services (BIMS), which provides technical expertise and tools to design and implement survey-based field data collection, is helping member companies measure the social impact of their inclusive business along with the financial and operational performance. Through BIMS, BCtA companies gain access to critical market information to improve their product or service and assess new business opportunities, while for development actors the data creates a rich evidence base around the contribution of inclusive business to the Global Goals.”7 (Please see Annex 3 for details)

BCtA has created and disseminated a significant amount of robust inclusive business evidence. Member initiatives have been documented in over 60 case studies. Initiatives were analyzed and insights published in BCtA’s recent flagship report, Breaking Through: Inclusive Business and the Business Call to Action Today, and three sector-specific reports. According to the UK Government Independent Commission on AID Impact report on business and development, “BCtA’s real impact is on developing the evidence base. It collates case studies of member initiatives and helps them to understand their impact on the poor. Its contribution towards changing perspectives and policy debates is impossible to measure but useful in understanding the developmental impact of businesses.”

BCtA has raised awareness on inclusive business at the global level. Its annual forum brings

together more than 150 member representatives, support institutions and policy makers. BCtA has

co-organized over 80 events in the past seven years across regions, including the Responsible

Business Forum for Sustainable Development in Singapore (2015); Inclusive Tech Side Event at

Slush Finland (2015); The Swedish-Indian Inclusive Business Frontier (2014) and the Business Call

to Action Symposium in Tokyo (2013). Since its launch in 2014, its successful partnership with the

Guardian Sustainable Business online site has attracted over 750,000 unique visitors to over 250

BCtA and relevant independent articles. According to DFID’s BCtA Project Completion Review

(2016), “BCtA has successfully promoted inclusive business as a concept to corporates,

governments, multilateral organisations, non-governmental organisations, and the wider public

through its influencing and media channels. It has facilitated uptake and replication of inclusive

business activities in developing countries through shared learning, innovations, and opportunities

for wider replication by the private sector.”

At the policy level, BCtA actively engaged in the efforts led by UNDP and the World Bank Group to

develop the G20 Inclusive Business Framework, endorsed at the end of 2015. The framework drew

on the case studies of inclusive businesses from a cross-section of industries, including BCtA

members, and offered recommendations to meet the needs of individual countries from the G20 and

beyond.

BCtA has localized its offering to various regions and countries. In Kenya, the Philippines, Zambia, Vietnam and Bangladesh, BCtA has worked with local partners to raise awareness on inclusive business and encourage wider adoption of IB practices among the private sector and development communities through events, trainings, research and publications. For instance, in the Philippines, where the BCtA has taken a more in-depth approach, it contributed to the development of a national IB Knowledge Hub, thus putting inclusive business on the map for the government and

6 BCtA has so far published BIMS case studies on Mahindra Rural Housing Finance, Echale a tu Casa, Empower Pragati and Access Afya. These case studies can be downloaded from BCtA’s website (Impact Practice): http://www.businesscalltoaction.org/impact-practices 7 DFID’s Project Completion Review (June 2016)

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key stakeholders, and launched the Mindanao Inclusive Agribusiness Programme in partnership with the Philippines Business for Social Progress (PBSP). Further, in partnership with Business for Development (B4D) in Australia, BCtA raised awareness, increased the platform’s presence and visibility and activated 10 new members through events and networking across the Asia Pacific Region.

A unique and valuable asset of BCtA is its governance structure. The initiative is supported by

five strong governments, making it the most significant public-private platform in support of inclusive

business in the world. The governance structure of BCtA, with a secretariat and a Donor Steering

Committee (DSC) is simple, clear and effective. Donors valued the efficiency of decision making

processes and the way they were engaged by the secretariat, seeing high value in acting as a group

to support inclusive business. Its setup underlines that BCtA is not a company network or private

sector initiative, but a public-sector initiative with a strong focus on development impact.

According to DFID’s BCtA Project Completion Review (2016), “the multi-donor governance of the BCtA remains a strength of the programme; benefits include links to the specific donor relationships, business networks and the wider donor community through bilateral and multilateral contacts and the scope to raise the profile of, and streamline, inclusive business policy practices within the respective donor organisations. In addition, sharing of project costs means that BCtA is not reliant on a single donor agency.”8

The UN brand creates recognition and relevance. Being acknowledged by the UN has a strong brand value for companies and creates credibility among other stakeholders. In addition, being hosted by UNDP creates access to a global implementation network and strong relationships with governments in all countries of operation.

Altogether, the BCtA has evolved into a strong player in support of inclusive business at the interface between the public and private sectors. It is ideally positioned to fill critical gaps in the emerging marketplace for inclusive business solutions to the SDGs.

Overall, stakeholders confirm the strengths of BCtA as a unique, UN-based platform at the interface of the public and private sector, creating visibility and credibility for inclusive businesses.

Drawing from its experience to date, recent research and publications, and the analysis of its Breaking Through report, BCtA also took stock of key lessons to inform this next phase. These include:

1. Member selection, support and management

Selection and Due Diligence: Rigorous due diligence on all potential members and

provision of individual guidance during application are time-intensive processes but ensure

the quality of commitments and the credibility of the BCtA platform to members and other

stakeholders. BCtA will maintain thorough due diligence and selection processes and

ensure the quality of responsible IB commitments through close engagement and guidance

to applicants (see Annex 6 for further details on this process).

Responsible Practices: Based on experience gathered during risk assessment processes,

it is important to emphasize to companies that it is not enough to be present at the base of

the pyramid, inclusive business need to uphold the highest Environmental, Social and

Governance (ESG) standards. In BCtA’s experience, the wider advancement of inclusive

business will require greater emphasis on sound business practices, demonstrating that the

8 DFID’s Project Completion Review (June 2016)

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core processes through which a business operates facilitate the creation of an inclusive

economy. BCtA will increasingly play a role going forward in vetting the quality of inclusive

business commitments, starting from its application process, but also developing products

and guidance materials to build knowledge on ESG management and help improve IB

management practices.

Progress in IB space and Inclusive Business Maturity: The BCtA portfolio demonstrates

considerable progress. Success is not guaranteed, and profitability comes slowly. But

several businesses are operating at scale, reaching millions of people. Growth trajectories

are steep, particularly for the smaller emerging and maturing companies. Equity investments

of hundreds of millions have been secured. For the multinationals, inclusive innovation is

clearly linked to long term positioning of the business. Markets are maturing, leaders are

influencing competitors, and competition amongst inclusive businesses is leading to further

refinements to strengthen the value proposition for people at the Base of the Pyramid (BoP).

Since its inception, BCtA has engaged with a vast number of companies, understanding that

irrespective of sector, geography or size, each inclusive business travels through a maturity

journey, ranging from those with no experience engaging the BoP to those that have

succeeded in developing and scaling their inclusive business models. BCtA has come to

understand common internal and external barriers businesses face at different stages. In

addition, BCtA has found that companies value understanding where they fit in this maturity

curve against others, and what steps they can take to advance throughout their journey.

Going forward, BCtA will continue building membership value proposition offering members

at different maturity stages tailored services including trainings, guidance and access to

peer learning. BCtA will also build on the maturity tool and training developed in 2016,

including building the future pipeline of companies with currently limited BoP engagement

but with a commitment and interest to develop IB models.

2. Reporting and Impact Measurement

Impact Measurement: Since 2014, BCtA has begun the implementation of BCtA Impact

Measurement Services (BIMS), a two-year customized monitoring and evaluation support

for measuring operational and social performance of BCtA member companies. The

Secretariat has engaged BCtA members ranging from social enterprises to multinationals in

multiple sectors, from agriculture to low-income housing to health, to help them identify and

collect social impact data that will improve their inclusive business initiatives. The deep-dive

approach of BIMS has not only allowed BCtA to provide critical support to individual

members, but enabled the Secretariat to gain practical insights into factors that contribute

to successes and challenges of measuring impact on the ground, as well as companies’

drivers, needs and motivations for impact measurement. In the next phase, BCtA will take

its impact measurement support to the next level by reaching more inclusive businesses

with best practices and resources using a combination of a technology-based toolkit and

direct support, which will enable BCtA members to grow and achieve their social impact

goals.

Reporting: While BCtA members’ results reporting rate has increased, the quality of

reporting needs to be improved in the next phase. Key to building meaningful results data

is ensuring consistency of reported indicators and measurement units and periods.

Research from “Measuring Impact” report shows there are different motivations for

companies to measure and report on their social and environmental performance. These

include, complying with regulatory requirements, communicating externally to investors,

informing product design and service delivery, and understanding their relevance to the

SDGs. Articulating these better with our members will also help improve the quality of

reporting going forward.

3. Knowledge, Partnership and Advocacy Efforts

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Advocacy and Communications: Continuing on the efforts of the past year, all awareness

raising activities will need to be informed by a clear communications strategy aligned with

SDG messaging and targeted to the different set of BCtA’s stakeholders including inclusive

businesses and policy makers. Seeing that global in-person and online events represent the

main opportunity for BCtA to showcase inclusive businesses' contribution to the SDGs,

advocate for support and promote peer-to-peer learning and linkages, BCtA will actively seek

for additional opportunities to enhance presence at relevant fora. The partnership with The

Guardian (GSB) has been highly valued by member companies, and an important channel

to share thought leadership in this space. Going forward, BCtA will also invest efforts in

building and updating a roster of relevant journalists to cover BCtA-related issues; and

establishing new partnerships with key global media such as TED or BBC.

Knowledge Creation and Dissemination: Having invested in and produced a high number

of short publications and individual case studies, BCtA will continue to build an evidence-

base of quality IB models and share thought leadership on relevant topics in this field. In the

next phase BCtA, building on the work that has been done to conduct detailed business

model analysis at a portfolio level across the company commitments (as seen by the

Breaking Through Report and the Agricultural Financing Report), will focus its knowledge

priorities on capturing the link between types of IB models/sectors and the SDG, as well as

effective IB management practices. In addition, from past experience BCtA has seen that

while relevant and timely publications and reports remain valuable, adopting a consultative

approach (where relevant) to develop these publications is a powerful way to engage

stakeholders and for the basis for effective dialogue.

Partnerships: While establishing longer-term partnerships and identifying the most effective

modalities for engagement is a gradual process, partnerships are key in strengthening BCtA

presence and visibility in new geographies, growing BCtA member base, conducting

advocacy and contributing to the adoption of IB models among the private sector. Building

strategic, longer term, global partnerships will enable BCtA to increase engagement and

grow member base in new regions and sectors during Phase III.

4. Country Level Work

BCtA has tested several strategic approaches in its country level efforts, from light-touch

interventions and partnerships in Zambia, Vietnam and Bangladesh to more in-depth,

concerted activities in Kenya and the Philippines. While we attest to various degrees of value

of BCtA’s presence at the country level in raising awareness and mobilizing commitments,

the key takeaway that informed our strategy going forward is that the value proposition is

maximized only when BCtA brings a full suite of its tools and service offerings. By building

capacity of local institutional partners through a more comprehensive set of BCtA’s unique

tools and activities versus sporadic and stand-alone interventions, BCtA is well positioned

to support country level private sector mobilization towards the most pressing/relevant

SDGs.

In its next phase, BCtA will build on its strong base of over 170 members, multi-donor structure and

UN affiliation, by further enhancing the value of its inclusive business selection and validation

process both for its members and the public sector. BCtA will increase awareness of the inclusive

business approach and deepen the evidence for quality IB solutions across sectors and

geographies; guide companies in aligning their contributions with SDGs thus creating accountability

mechanisms to capture inclusive business contributions to development by benefiting those at the

BoP ; assess and drive good management practices that enhance inclusive business performance;

and work with country governments to acknowledge and foster the contribution of inclusive

businesses to development objectives, thus helping build the infrastructure for more effective public-

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private collaboration towards the SDGs. Ultimately, by increasing the number of companies adopting

IB and improving the evidence, quality and efficiency of inclusive businesses, BCtA seeks to

contribute to the positive impact and responsible engagement of poor populations.

BCtA vision and mission

BCtA's vision is a world where public and private sector actors collaborate effectively to achieve the SDGs by including those at the BoP. In the next decade, based on the transparency and interactivity enabled through information and communication technology (ICT) as well as increasingly sophisticated governance systems, a new range of collaboration mechanisms is expected to emerge, including innovative financial mechanisms as well as partnership arrangements and multi-stakeholder platforms. Hybrid organizations that pursue a social mission with business means will continue to evolve and develop innovative solutions to social challenges. The redefinition of responsibilities between public and private sector calls for a new infrastructure that holds companies accountable not just for financial, but also for social and environmental objectives. In particular, where companies benefit from direct support from the public sector in return for specified social outcomes, an independent and reliable validation platform is vital.

BCtA's mission is to enhance the visibility, credibility, scale and effectiveness of inclusive businesses (IB) to achieve the SDGs by benefiting those at the BoP. Building on its existing experience and stakeholder constituency, BCtA will further strengthen and develop its processes to identify and assess impactful inclusive businesses through a transparent process based on clear criteria, support impact measurement and link to the SDGs, and advancement along the IB maturity journey, and facilitate dialogue with the public sector.

BCtA's contribution as a validation platform of quality inclusive business commitments to the emerging SDG marketplace is unique in the following aspects:

• Having inclusive business as the unit of analysis. By selecting different types of

companies to become members based on their inclusive business initiatives, BCtA provides

a unique platform for actors including multinational companies, large national companies,

SMEs, international and national social enterprises.

• Aligning public and private demand for information: BCtA provides a platform that

collects, publishes and analyses information that is relevant for both the public and the

private sector. It thus creates a common reference point and contributes to the

standardization of data collection.

• Making the link between good management practice and inclusive business

performance: BCtA looks not only at business progress, but also considers the quality of

the management practices. It thus provides guidance and works towards establishing a

causal link between good management practices and inclusive business performance.

Theory of Change In light of the evolving landscape for inclusive business and the overarching framework of the SDGs, BCtA defines its main purpose as supporting the achievement of the SDGs through inclusive business. Building on and further developing the existing set of services, BCtA sees its main function as a validation platform for inclusive businesses' contribution to the SDGs.

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Figure 4: BCtA's Theory of Change

BCtA Outcomes

This link will be established through the following three outcomes:

A. Increased awareness and recognition by the Private Sector of IB as a concrete and

effective way to contribute to the SDGs. As a result, there is an increased uptake of

inclusive business among private sector, and inclusive business impacts on the BoP are

recognized as part of the achievement of the SDGs. This outcome will be achieved through

a combination of outputs including demonstrating an increased number of high-performing

inclusive businesses through BCtA’s membership and mobilizing country-level adoption of

good management practices towards the SDGs.

B. The credibility of inclusive businesses' results and integrity is improved. This

outcome will be achieved through a combination of outputs including increased uptake on

impact measurement and reporting, and by building a growing evidence base on inclusive

businesses’ impact on areas relevant to the Global Goals. As a result, inclusive business

impacts are counted towards the SDGs.

C. Inclusive businesses increase their effectiveness and scale their initiatives to include

more populations at the BoP into their operations, improving their lives. This outcome will

be achieved through a combination of outputs including increased number of high-

performing commitments, which are further supported by adopting better business and

impact management practices at country and global levels. In addition, sharing knowledge

and evidence with local governments to improve the inclusive business ecosystem. As a

result, the positive impact of inclusive businesses on BoP populations and contributing

towards the SDGs is increased.

BCtA Outputs

In order to achieve the outcomes above, BCtA will conduct activities that lead to the following five outputs:

1. Increased number of high-performing commitments. More high-performing inclusive

business commitments will improve the visibility of inclusive business as the platform gains

relevance. Strengthened credibility of inclusive business commitments through a rigorous

and transparent selection and validation process.

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2. Improved impact measurement and reporting practices. Greater accountability towards

commitments and more robust data that shows the impact of inclusive business models will

enhance their credibility. Enhanced impact measurement and reporting practices will also

support better management of inclusive businesses.

3. Documented evidence and analysis on how inclusive business can be leveraged for

the SDGs. Analysing data from reporting and measurement and publishing insights will

enhance visibility and credibility of inclusive business through relevant research contributions

and will increase effectiveness and scale by providing feedback to companies.

4. Country-level mobilization of commitments and policy inputs towards SDG

contribution. By building capacity of local institutional partners, increasing commitments of

IB and adoption of good IB management practices, and facilitating public-private dialogue

around IBs contribution to SDGs, BCtA will contribute to IB-conducive ecosystems.

The above BCtA outputs have been adopted as the project outputs and are further elaborated in the Results Framework (Section V) of this document.

III. RESULTS AND PARTNERSHIPS

Expected Results

BCtA Value Proposition and Positioning

BCtA's value proposition is to provide a global validation platform for inclusive businesses and their contribution to the SDGs. The initiative establishes an interface between inclusive business companies, donors and country governments. Based on its unique governance structure and service portfolio, the initiative has a clear value proposition for all three types of actors. The following immediate and direct benefits will be further strengthened through BCtA's work on enhancing global incentive systems for inclusive business. BCtA aims to include inclusive business indicators into corporate sustainability reporting systems and indices, to advance innovative policy instruments in support of inclusive businesses, and to link inclusive business reporting to the SDG reporting system.

Value proposition for companies

BCtA acts as a validation platform for inclusive businesses and thus helps them garner recognition and support from other actors, in particular from the public sector. In the future, differentiated membership with a group of ‘high performers’ will enable companies to advance within the BCtA platform, taking even greater benefit from the various services.

Provide greater visibility and recognition: The UN brand is of high value to companies,

and being officially recognized for their quality inclusive business initiatives is already the

main benefit companies perceive from their membership. Strengthening BCtA's brand as a

global leadership platform for quality inclusive business commitments as well as supporting

the member companies in their maturity journey towards leading inclusive businesses will

further strengthen the value of participating in this credible platform which provides global

visibility for the company through various communication channels, events and knowledge

products.

Support better management practices, specifically better planning for social impact

to drive IB performance: Through its tools, publications, workshops and webinars, BCtA is

supporting companies in their journeys towards inclusive business maturity. Through the

BCtA Impact Measurement Services (BIMS) BCtA has provided in-depth technical and

technological support to selected member companies. Drawing on this experience, BCtA

will assist member companies in improving management practices, better planning for social

impact and contributing to the SDGs while driving inclusive business performance.

Facilitate knowledge capture and sharing: BCtA will continue building an evidence base

of quality inclusive business models across sectors and geographies that deliver social

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impact and contribute to the SDGs and uphold thought leadership on important inclusive

business topics.

Mobilize select country-level inclusive business efforts: Going forward, BCtA will

continue contributing to public-private dialogue, policy making and sector development as

they relate to inclusive business and SDGs contribution in select priority countries. BCtA will

drive clusters of commitments that can have meaningful demonstration effects on IB

contribution to SDGs.

Facilitate linkages among members and to relevant supporting services: BCtA’s

member platform is well positioned to facilitate linkages and referrals between members,

knowledge partners, funders and other resources to increase scale and improve

effectiveness of members’ inclusive business initiatives.

Box 1. Identifying high performing inclusive business along the maturity curve

A "high performer" status will be introduced in the next phase to highlight best performing members. The members will be mapped against our maturity curve (as shown in Figure 5 below) and high performers will be identified based on both effectiveness of the business as defined by core indicators, and good management practices, such as proper measurement and reporting. By distinguishing high performers from other members, BCtA will:

Reward good performance and compliance with membership conditions

Provide incentives for members for compliance

Highlight proven models

Identify models for deeper research

The high performer status will make the value proposition towards companies and the public sector even more tangible.

To maximize the value perceived by companies throughout the life cycle, BCtA will provide a set of services, including trainings and bilateral interactions that accompany the business on its path to greater transparency and effectiveness. BCtA’s value add rests in vetting the quality of IB commitments, providing visibility for these commitments, and supporting the maturity journey for a more effective contribution of IB to the SDGs, as seen on the following graph.

Figure 5: Barriers and BCtA Support to IB along Maturity Journey

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Value proposition for donors

In addition to their individual programmes to support inclusive business, donors can use the BCtA platform to drive the inclusive business agenda jointly.

Promote and leverage private sector inclusive business activities towards SDGs

contribution: Through BCtA, donor contributions catalyse additional activities (including

both financial investment and non-monetary contributions) from the private sector in pro-poor

inclusive business towards achieving Global Development Agenda.

Help build a body of evidence to support IB mainstreaming especially around impact:

With the expanding membership of BCtA as well as improved methodologies around

measurement and reporting, the initiative offers a rich source of data on inclusive business.

This includes both insights on the aggregate targeted results of member companies vis-a-

vis the SDGs, as well as insights into the relationship between certain management practices

and business performance, and finally the role of government action in hindering or furthering

performance. In sum, the initiative delivers evidence-based insight on some of the most

critical open questions in the inclusive business domain to date.

Drive the scale-up of inclusive business impact: BCtA increases the impact of inclusive

business to the SDGs through various levers. It provides guidance and incentives to member

companies to establish good management practices, such as developing results chains and

regular measurement. It identifies high-impact models and raises awareness on them to

advance replication. Finally, it enables public sector support to companies through validation,

improving conditions for scale up at the national level.

Benefit from pooled funding for inclusive business: As a multi-donor initiative, each

donor contribution also benefits from the leverage garnered due to effects of pooled donor

funding.

Act as a convenor: BCtA also provides a platform for donors to coordinate and exchange

perspectives on inclusive business most relevant issues.

Help domestic companies achieve global reach: BCtA helps companies from donor

countries optimize both commercial success and development impact in emerging markets

by providing companies with the requisite knowledge, connections and assistance to be

successful development actors in emerging markets.

Value proposition for country governments

As country governments define their SDG strategy, they can build in BCtA's services to integrate inclusive business models' contribution.

Validation methodology for inclusive business models: Countries can build on and

leverage BCtA;s platform, evidence and tools to support and demonstrate one of the

concrete ways in which private sector contribution towards the SDGs can be mobilized; thus

leveraging private sector investment in development issues

Dialogue facilitation: BCtA can also support national dialogue between public and private

sector through facilitation, in collaboration with national partners.

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Figure 6: BCtA Areas of Focus

Links to UNDP Strategic Plan and other programmatic frameworks

The Business Call to Action Alliance contributes to UNDP’s role in supporting the achievement of the Sustainable Development Goals. It is relevant and contributes to UNDP’s 2014-2017 Strategic Plan.

BCtA is recognized as a signature alliance in UNDP’s new Private Sector Strategy (2016-2020).

BCtA’s contributions are expected to advance the UNDP Strategic Plan Outcome 7: Development debates and actions at all levels prioritize poverty, inequality and exclusion, consistent with our engagement principle, primarily through fostering innovation in private sector contributions to development (Output 7.6. Innovations enabled for development solutions, partnerships and other collaborative arrangements) and through creating and disseminating a more robust evidence base for the viability of inclusive business as a driver of development outcomes (Output 7.7. Mechanisms in place to generate and share knowledge about development solutions).

BCtA’s contributions are aligned and contribute to UNDP’s Private Sector Strategy (2016-2020): Output 1: An enabling environment created for sustainable and inclusive business and philanthropy; Output 2: Strategies and actions of the private sector and foundations are more aligned with the SDGs; and Output 3: Productive capacities, inclusive business and value chains are advanced.

UNDP and 2030 Agenda for Sustainable Development

Having a large network in more than 170 countries and territories, a principal coordination role within the UN Development System, the proven ability in supporting efforts to reduce poverty, inequality and exclusion, and an integrated approach to supporting progress across the multiple goals, UNDP is uniquely placed to support countries in realizing 2030 Development Agenda.

UNDP supports countries in three different ways through the Mainstreaming, Acceleration and Policy Support (MAPS) approach:

Landing the SDG agenda at the national and local levels: Providing support to governments to reflect the new global agenda in national development plans and policies. This work is already underway in many countries at national request;

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Supporting countries to accelerate progress on SDG targets that are defined as priority for specific countries. In this, UNDP is leveraging its extensive experience over the past five years with the MDG Acceleration Framework; and

Policy support: Making the UN’s policy expertise on sustainable development and governance available to governments at all stages of implementation.

UNDP is deeply involved in all processes around the Sustainable Development Goal roll out: through the agency’s Rapid Integrated Assessment, it assists countries in mapping SDGs goals and targets against national priorities as well as aligning of national monitoring frameworks with SDGs and strengthening the use of data for analysis and implementation.

To help the private sector across sectors and regions address critical barriers, contribute to development and benefit from it through its core business, UNDP works at many levels, including: i) directly with pioneering firms and philanthropic organizations; ii) at the value chain level with clusters of partners; iii) on common and public goods and infrastructure, iv) on public policy and regulation; and, v) brokering public – private solutions for the SDGs at country-level. Through its Private Sector Strategy (2016-2020) UNDP aims to support development of policies, implement programmes, and broker partnerships that enable the private sector and foundations to play a transformative role in improving the lives of the poor, vulnerable and marginalized people for sustainable development. To this end UNDP creates and shares knowledge, develops capacities and catalyses action and funding that maximizes the role of the private sector and foundations establishing sustainable development pathways, building resilient societies and contributing to democratic governance. Given UNDP’s existing work with private sector at various levels, UNDP constitutes a good partner that can both benefit and help deploy at scale BCtA’s proposed tools and trainings to enhance the effectiveness of inclusive business.

Opportunities for collaboration may also be found with other UNDP initiatives such as the Gender Seal; the African Facility for Inclusive Markets Unit; or the Connecting Business Initiative.

In addition, seeing rising trends in fragility and conflict challenges; UNDP’s work and experience in such contexts, and the potential role of inclusive business in building resilience; BCtA will explore opportunities to raise inclusive business awareness in countries facing these challenges; and will also seek inclusive business models operating in fragile contexts to join as members of the platform.

BCtA Programme Activities

The different outputs include a set of core activities as well as cross-cutting elements including standardization and documentation of processes and tools, as well as strategic engagement and collaboration with relevant stakeholders.

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Figure 7: Activities per output

Activities contributing to Output 1: Increased number of high-performing commitments

This output includes all activities related to the selection, management and monitoring of members.

Activities contributing to Output 2: Improved impact measurement and reporting practices

Output 2 summarizes all activities related to supporting BCtA members’ impact measurement and reporting as well as gathering empirical data from them.

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Activities contributing to Output 3: Documented evidence and analysis on how IB can be leveraged for the SDGs

This output comprises all activities related to aggregating, analysing and disseminating learning from BCtA’s members. These activities can be implemented in partnership with other organizations, research institutes or universities, which will lend additional credibility to the results.

Activities contributing to Output 4: Country-level mobilization of commitments and policy inputs towards SDGs contribution

The fourth output will prove the value of BCtA on a country level, aiming to work in three countries (mutually agreed on with the DSC) during Phase III. The country level work will:

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In focus countries, BCtA seeks to work with UNDP Country Offices, offering an entry point for

engagement with the private sector, creating knowledge on IB contribution to SDGs, and providing

policy input to foster an enabling local inclusive business ecosystem.

It must be stressed that all outcomes and related activities are highly interlinked. The full

potential of BCtA will only be realized if synergies are systematically leveraged. This requires close

alignment between the work streams and responsible sub-teams. For example, the commitment and

how it is documented forms the basis for the impact measurement and reporting, and hence for the

review and aggregation, as well as for communication as part of outreach activities. Getting this

piece wrong will make it impossible to fit the other pieces of the puzzle together. Likewise, insights

from the country level engagement can feed back into the global advocacy work and vice versa.

Internal review processes can insure that these linkages are fully considered.

The figure below, summarizes how BCtA will seek to drive better IB results and positive impact on

poor populations across its activities:

GENDER PERSPECTIVE

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Resources Required to Achieve the Expected Results

To achieve the expected results, BCtA will be supported by a BCtA Secretariat (described in Section IV below), as well as a 3-year budget of US$8,540,524 (including GMS), as detailed in Section VII below.

Partnerships

As detailed on Figure 6 above, each output of BCtA will benefit from ongoing stakeholder engagement, strategic collaboration with key players in the space and partnerships with selected organizations.

Key areas of engagement and collaboration include:

Topic of Engagement Types of Organizations

Advocacy, communication, awareness building, and outreach/pipeline building

Global media partnerships

Local business networks and associations

Complementary IB organizations (i.e. accelerators, networks)

Impact Investors

Governments

Impact measurement and contribution to the SDGs

Business sustainability standards setting organizations

Impact measurement actors

SDG measurement actors

Deployment of relevant tools and trainings on IB management practices

UN agencies

DFIs

Complementary local IB networks

Other relevant donor programmes

Research and knowledge generation Academia

Leading business sustainability organizations

Box 2: Gender Perspective

“We cannot achieve our 2030 Agenda for Sustainable Development without full and equal rights for half of the world’s population in law and in practice”

Ban Ki-Moon, Former UN Secretary General

Amid important advancements in their rights and participation, women in poverty face additional

marginalization and are faced with many barriers to take their rightful place in the economy. Gender

discrimination continues to be one of the most significant roots of impoverishment. In order to

promote gender equality and women’s empowerment BCtA will:

1. Seek to attract more IB initiatives that are advancing the empowerment of poor women as

entrepreneurs, producers, and consumers.

2. Ensure that BCtA’s member due diligence and selection processes integrate and uphold

principles of gender equality and women’s empowerment.

3. Ensure that a gender perspective is integrated in its knowledge creation and advocacy efforts

4. Work with companies to track and disaggregate by gender development results.

5. Collaborate with relevant organizations on advocacy and evidence on Inclusive Business

contribution to women’s empowerment and gender equality.

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Annex 5 provides a list of organizations that are considered high priority for partnership and/or collaboration in this third phase given their strategic added value, thematic expertise, services offered and their potential interest of collaborating with BCtA.

Risks and Assumptions Risk Mitigation:

The following risks have been identified and an indication provided of how they will be managed.

Risk Mitigation Approach

A. Strategic

Risk A1.

Inclusive business field receives negative press and/or suffers damage to reputation

Develop inclusive business evidence base and communicate findings to the private sector, development actors, and the general public

Risk A2.

Donors shift away from using and encouraging inclusive business as a viable approach to achieving development impact

Diversify donor group, including donors from emerging economies

Develop inclusive business evidence base and

communicate findings to donors, indicating how BCtA

contributes to effectiveness of IBs

Risk A3.

Companies do not follow through on their commitments to BCtA

Institute and enforce clear criteria for companies to maintain BCtA membership

Support effectiveness through performance and impact measurement support and linkages with the public sector

Make a grievance mechanism publicly available that allows communities to raise concerns to BCtA on member commitments

Study and learn from failures of members; disseminate findings to help other members if possible

Risk A4.

Companies do not take into account risk from natural hazards and climate change and results are not sustainable.

As part of BCtA’s capacity building efforts on management practices; include information on proactive identification, monitoring and management of climate change risk and planning for business continuity in the case of crisis or natural hazards.

B. Reputational

Risk B1.

BCtA’s interaction with member companies is perceived as uncoordinated

Manage member interaction via salesforce

Establish clear routines and responsibilities for communication with members

Plan and maximize each engagement / touch point

Risk B2.

BCtA is viewed as providing low value addition

Gauge the perceived value of BCtA services by members via annual member surveys and focus groups

Continuously improve member services based on the feedback

Risk B3.

BCtA is seen as a corporate lobby group and loses legitimacy towards key stakeholders including governments, CSO, and general public.

Ensure voices of donors and the UNDP are also clearly articulated in relevant documents or meetings

Establish and enforce clear and ambitious criteria for company selection and membership

Maintain transparency in BCtA activities and communications

Maintain transparency in BCtA’s funding sources

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Risk Mitigation Approach

Risk B4.

Poor environmental, social or governance (ESG) conduct by BCtA member companies and/or consequent negative impacts

Carefully screen companies in the application stage for such risks ensuring companies adhere to BCtA’s Code of Conduct (Annex 8)

Conduct ongoing media scans and monitoring on member companies

Conduct webinar trainings with member companies on responsible ESG inclusive business practices

Institute clear criteria for companies to maintain membership

Risk B5.

Reputational risk to UNDP from associations with a private sector entity if the latter is involved in a controversy.

Regular press monitoring of the company

Close communication with the company

Continuous identification of controversies/risks associated with the company/ sector

Close internal communication within UNDP

Development of a communication plan

C. Operational

Risk C1.

Companies do not measure and/or report on progress

Facilitate reporting through a simple interface

Send regular reminders to members

Provide positive and negative incentives for reporting/non-reporting

Risk C2.

Insufficient engagement by donors (i.e., those on Steering Committee)

Clearly define BCtA’s governance framework and expectations for donors

Create an annual calendar early in the year to send to Steering Committee

Risk C3.

High BCtA staff turnover leads to lost or weakened relationships with member companies

Document relationships with counterparts in member company using salesforce

Institute touch points between two BCtA staff and each company

Risk C4.

BCtA over-expands or over-commits without sufficient resources

Conduct careful budgeting, planning, and prioritizing of BCtA activities

Maintain close communication with donor Steering Committee to adjust activities or identify resources as needed

Risk C5.

Complexity of change at UNDP delays BCtA Secretariat’s delivery on planned activities

Secretariat engagement with UNDP management to raise awareness of BCtA programming internally

Communication channels between bilateral donors and UNDP is maintained at highest level through Donor Steering Committee on a range of issues related to UNDP’s fiduciary role as the host of the Business Call to Action Secretariat.

Visibility of BCtA within UNDP is maintained with partners

Risk C6.

Delays in reaching new member targets due to rigorous acceptance process

Continue building common understanding within the organization and potential membership-base on responsible business practices

Ensure due diligence for potential new members is conducted early on and in a timely manner

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Risk Mitigation Approach

Ensure criteria for acceptance in to BCtA and code of conduct are clear and transparent for potential members to review

Key Assumptions

Some basic assumptions underlie the above analysis (and the results framework for BCtA). They include the following:

• The convergence of the recently adopted Agenda 2030; the demand for the private sector

contribution to the development agenda; and interest from governments in building conducive

IB environments - offers an unprecedented opportunity to increase inclusive business uptake,

scale, effectiveness.

• Inclusive business is an effective means to achieve the SDGs. (While there is strong evidence

from case studies, no comprehensive or comparative analysis exists as of yet.)

• Validating inclusive businesses commitments through the BCtA will help increase their

effectiveness and facilitate public-private engagement.

• Increasing the brand value of BCtA's validation by increasing awareness of it will enhance the

value of the service for members through improved visibility and credibility.

• Good management practices, including measurement and reporting, lead to improved

performance of inclusive businesses, including on social impacts.

• By providing incentives and support for measurement and reporting, BCtA can develop deep

evidence to prove the link between inclusive business and the SDGs, as well as between good

management practices and business performance.

• By engaging with country governments and other national stakeholders, BCtA can establish the

link between inclusive business and the SDGs. This recognition will strengthen inclusive

businesses nationally and facilitate public-private collaboration.

Stakeholder Engagement

BCtA has a number of stakeholders that will be engaged throughout the implementation of BCtA Phase III. The broad categories of stakeholders are outlined on the table below:

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Based on BCtA’s scope of work and objectives, BCtA has developed a number of approaches and tactics that will be used to effectively engage with key stakeholders. The table below outlines such approaches, tactics as well as the specific category of stakeholders that would be targeted:

Box 3: Increasing the direct engagement with BoP Communities

While engagement with BoP individuals and communities (as beneficiaries of the IB initiatives) is done primarily by the companies through their Inclusive Business Initiatives, in its next phase BCtA will seek to:

1. Ensure that, as part of their application to BCtA, companies clearly outline their BoP engagement approach

2. Conduct consultations with BoP communities engaged in selected BCtA member IB initiatives, to further understand how they are benefitting from this engagement.

3. Include BoP representatives in relevant dialogues being held/ supported at country level

4. Setting up, raising awareness and making available on BCtA’s website a feedback mechanism, which allows individuals to raise issues, questions or concerns specific to BCtA’s inclusive business commitments

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Knowledge BCtA will produce a number of knowledge products described in detail in the sections above. These include case studies, toolkits, and flagship reports. As a “public good” platform, BCtA places great importance in making its knowledge base available to the public, members and non-members of BCtA. Through media outreach, consultations and influence strategies, partnerships, virtual and in-person events, online presence and through its UN affiliation and networks, BCtA will disseminate and create visibility for knowledge and lessons learned by BCtA, and seek to deploy its tools at scale.

Aiming to be more catalytic it its knowledge work and building on sector-level and portfolio-level analysis done in the past, BCtA will seek to shift from documenting individual case studies to focus more on evidence and tools of good IB management practices, and typologies of effective IB models and their contribution to SDGs.

Sustainability and Potential Long-term Pathways for BCtA Towards the conclusion of Phase III, the Donor Steering Committee and the BCtA Secretariat will need to discuss potential pathways that the programme could follow. These potential options would need to be examined against: 1) needs from inclusive business and the broader field in the context of the SDG implementation agenda; 2) BCtA’s capacity to address these; and 3) partners’ willingness to provide ongoing support. The following are potential pathways that the programme could follow, including:

o Follow-up phase: This would entail continuing to evolve BCtA’s offering to respond to the needs of member companies and the IB field, with a model similar to its existing one in light of the demand for impact measurement for businesses for the Sustainable Development Goals

o Merger: BCtA merges with another existing network that has complementary capabilities and membership in order to consolidate the resources and membership of the two networks.

IV. PROJECT MANAGEMENT

Cost Efficiency and Effectiveness

As a multi-stakeholder alliance, BCtA offers global reach and partnership value. Its logical framework is set to deliver on clear targets, leveraging a multi donor steering committee, UNDP’s presence and network, and working with strong implementation partners. The BCtA platform enables members of the Steering Committee to leverage funding, engage in and coordinate inclusive business thinking with donor counterparts, UNDP, other multilaterals, and a range of corporates and Business Networks. BCtA is also well positioned to make policy inputs and contributions to global forums such as the G20, promoting inclusive business as a concept to corporates, governments, multilateral organisations, non-governmental organisations, and the wider public. BCtA provides a solid platform to facilitate the uptake and replication of inclusive business activities in developing countries through evidence-based knowledge, shared learning, recognition and visibility.

Project Management

The BCtA Secretariat is responsible for management and coordination of activities of the Business Call to Action Alliance. The Secretariat is led by the Programme Manager, and is accountable to the Donor Steering Committee for its performance. The BCtA Secretariat is located in Istanbul, hosted by UNDP, within its Istanbul International Centre for Private Sector in Development.

Business Call to Action - Human Resources for Phase III

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This is the current organogram of BCtA (regarding full time UNDP staff) as of August 2015. All other functions are carried out by consultants (a Communications consultant, an Inclusive Business Knowledge and Coordination consultant, two Outreach consultants, and a Measuring Inclusive Business Results consultant).

The following is the organogram that BCtA will be moving to, based on further approval. Descriptions for each role are included below.

Programme Manager (P4)

The BCtA Programme Manager will be responsible for ensuring the effective and efficient execution of programme activities of the BCtA Initiative as a multilateral-based public-private advocacy platform. The Programme Manager will be responsible for the establishment and operation of the BCtA Initiative presented in the approved business plan/project document for the third phase of the initiative including human resources management and procurement, drafting the annual work plan and reports and overseeing the management of funds and budget. S/he will be responsible for managing the governance of the initiative including stakeholder management of existing alliance founders and partners and forging of new partnerships both at the global and country level.

UNDP Global Private Sector Advisor (P5) will continue to provide advisory support to BCtA

New: Programme Specialist (P3 assuming responsibilities from Impact Lead JPO position)

The Programme Specialist (Lead, Impact and Reporting), will support the Programme Manager in implementing the second phase of BCtA Impact Measurement Services (BIMS). S/he will actively engage in the process of developing, implementing and deploying online training modules and guidance to a broad IB audience. S/he will also engage with BCtA members providing foundational support to companies on improving their theory of change, and results chain analysis, conducting virtual or face-to-face impact measurement clinics and relevant webinar. S/he will also continue the monitoring and support to the 21 companies working with BCtA under the first phase of BIMS. The Programme Specialist will also proactively and continually engage with member companies in spurring them to measure, analyse and report results on their inclusive business commitment. The

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Programme Specialist will conduct research on public and private sources of data on member companies to ensure that all quantitative and qualitative metrics are gathered and analysed about the inclusive business commitment by the member company. The Programme Specialist will also categorize results by sector, theme and geography and conduct verification where possible, of self-reported results. The Programme Specialist will then also benchmark the results reported by BCtA member companies against public indices such as the Impact Reporting and Investment Standards (IRIS) methodology and index, the World Business Council for Sustainable Development’s Measuring Impact framework and other leading methodologies. The Programme Specialist will engage and form partnerships with key actors in the field of impact measurement and reporting to produce insights that will contribute to the evidence base of IB impact and their contribution to the SDGs. S/he will provide support to the Programme Manager on feeding evidence into advocacy strategies for inclusive business, reporting to the Strategy Committee, and assisting in widely disseminating the results for BCtA.

Outreach Co-ordination Analyst (P2)

As part of BCtA’s mission and under the supervision of the Programme Manager, the Outreach Coordination Analyst will support the coordination of the activities of the outreach and country work and liaise with partner network organizations in order to ensure an effective pipeline of companies with initiatives to undergo the selection process for BCtA membership and work closely with the Programme Manager in assisting in targeted outreach to high profile companies from HQ through market research and outreach activities. In addition, the Outreach Coordination Analyst will oversee the due diligence process to continuously identify, assess, and address risks associated with companies. In addition, the Outreach Coordination Analyst will support and build BCtA’s membership value proposition, including through support for development of services and trainings, and oversee BCtA’s work in the focus countries.

New: Partnerships, Advocacy and Knowledge Management Analyst (P2)

The Partnerships, Advocacy and Knowledge Management Analyst will report to the Programme Manager. The Analyst will assist the Programme Manager in directly overseeing communication efforts (including reporting processes for BCtA, website management, press releases, production of quarterly newsletters, webinar series, etc.). The analyst will also be responsible for developing and executing a comprehensive stakeholder engagement strategy that would assist in strongly positioning BCtA and its members in the inclusive business field, and effectively deploying BCtA’s evidence, tools and guidance. S/he will also assist in knowledge creation, and event management for BCtA. S/he will assist in areas of membership engagement (managing and updating the customer relationship database and mailing lists, etc.) and provide other general support to programme activities of the Secretariat as required.

New: Programme Support Analyst (JPO)

The Programme Support Analyst will report to the Programme Manager. The analyst will support both the outreach and the impact teams, ensuring appropriate coordination and the delivery of a strong member value proposition for BCtA companies and partners. The Analyst will also assist the Programme Manager in UNDP procurement of services, contracts and organizations, in HR, compliance, budgeting, and work planning processes for BCtA. S/he will assist the Programme Manager in preparing submissions for the Donor Steering Committee and in ensuring excellent ongoing execution of the activities of BCtA.

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V. RESULTS FRAMEWORK

Intended Outcome as stated in UNDP’s Global Programme V:

Outcome 7: Development debates and actions at all levels prioritise poverty, inequality and exclusion, consistent with our engagement principles

Outcome indicators as stated in UNDP’s Global Programme V:

7.6.1: Number of new public-private partnership mechanisms that provide innovative solutions for development

7.6.2: Number of pilot and demonstration projects initiated or scaled up by national partners (e.g. expanded, replicated, adapted or sustained)

Applicable Output(s) from the UNDP Strategic Plan:

Outcome 7: Development debates and actions at all levels prioritise poverty, inequality and exclusion, consistent with our engagement principles

Output 7.6. Innovations enabled for development solutions, partnerships and other collaborative arrangements

Output 7.7 Mechanisms in place to generate and share knowledge about development solutions

Project title and Atlas Project Number: Business Call to Action Alliance

EXPECTED OUTPUTS

OUTPUT INDICATORS

DATA SOURCE

BASELINE TARGETS (by frequency of data collection)

DATA COLLECTION METHODS & RISKS

Value

Year

Year 1

Year 2

Year 3

Output 1: Increased number of high-performing commitments

1.1

Number of potential member companies in BCtA’s pipeline .

BCtA Secretariat

200 (per year, average)

2016 400 450 550 BCtA Secretariat keeps track of the number on an ongoing basis and reviews the progress quarterly.

1.2 Number of new BCtA companies

(Cumulative indicator)

BCtA Secretariat

Total 182 companies

By end of 2016

215 265 320 BCtA Secretariat keeps track of member commitments on an ongoing basis, and reports semi-annually

1.3 Number of BCtA Commitments

BCtA Secretariat

Total 186 commitments

By end of 2016

Over 320

BCtA Secretariat keeps track of member commitments on an ongoing basis, and reports semi-annually

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1.4 Number of companies using BCtA’s SDG and IB maturity journey and IB management practices tooklit

BCtA Secretariat

To be tracked going forward

80 companies

100 companies

150 companies

BCtA Secretariat documents the module development progress at least annually. For the number of the company reach, BCtA keeps track of online access and offline communications on an ongoing basis.

Output 2: Improved impact measurement and reporting practices

2.1 Existence and deployment of interactive Impact measurement toolkit

BCtA Secretariat

BIMS works with 21 companies

2015-2016

First module developed and publicly available

First 2 modules developed and deployed

Third module developed

All 4 modules developed, publicly available and deployed

BCtA Secretariat documents the module development progress at least annually.

2.2 Number of companies using BCtA’s impact measurement BCtA’s toolkit

BCtA Secretariat

To be tracked going forward

40 80 130 BCtA Secretariat documents the module development progress at least annually. For the number of the company reach, BCtA keeps track of online access and offline communications on an ongoing basis.

2.3 % of required member companies submitting their annual progress report

BCtA Secretariat

68% 2015 Over 60% Over 60%

Over 60%

BCtA Secretariat collects the progress report annually

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Output 3: Documented evidence and analysis on how IB can be leveraged for the SDGs

3.1 No and types of thought leadership contributions on IB published at global/regional/sectoral levels

BCtA Secretariat

Variety of publications including sector and country reports, over 60 case studies, one flagship report

Cumulative

Develop and publish thought leadership contribution including one in-depth publication

Develop and publish thought leadership contribution(s) including one flagship report and

5 Selected cases documented

Develop and publish thought leadership contribution(s) including 5 selected cases documented

BCtA Secretariat keeps track of the publications and case studies published and reviews the progress quarterly.

3.2 Number of BCtA media on Inclusive Business (own and from others)

Media and news scan

90 Content Pieces Generated (articles, blogs, videos)

2016 90 120 150 BCtA Secretariat keeps track of media contributions and reports progress semi-annually.

Output 4: Country level mobilization of commitments towards SDG contributions

4.1 Number of country level engagements

BCtA Secretariat

3 – Philippines, Kenya, Colombia

2014-2016

3 countries

3 countries

3 countries

BCtA Secretariat reports the updates at least annually

4.2 Number of new commitments as a result of BCtA country level engagement

BCtA Secretariat

5 (average yearly target)

2014-2016

12 12 12 BCtA Secretariat keeps track of member commitments on an ongoing basis, and reports semi-annually

4.3 Country-level publication on IB contribution to SDG to inform public-private dialogue

BCtA Secretariat

To be tracked going forward

2 country-level publications completed

1 country-level publication completed

BCtA Secretariat reports the updates at least annually

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VI. MONITORING AND EVALUATION

In accordance with UNDP’s programming policies and procedures, the project will be monitored through the following monitoring and evaluation plans:

Monitoring Plan

Monitoring Activity Purpose Frequency Expected Action Partners (if joint)

Cost (if any)

Track results progress9

Progress data against the results indicators (mix of qualitative and quantitative) in the RRF will be collected and analysed to assess the progress of the project in achieving the agreed outputs. Specific indicators – such as a survey of the membership and affiliates on the adoption of inclusive practice – will be piloted to test whether such tracking is feasible and informative; if the indicator is found to be useful, it will be integrated into the formal performance M&E framework going forward.

Semi-annually Slower than expected progress will be addressed by project management.

Monitor and Manage Risk

Identify specific risks that may threaten achievement of intended results. Identify and monitor risk management actions using a risk log. Complaints received through the grievance mechanism will be tracked in the risk log. Audits will be conducted in accordance with UNDP’s audit policy to manage financial risk.

Quarterly

Risks are identified by project management and actions are taken to manage risk. The risk log is actively maintained by the outreach team to keep track of identified risks and actions taken.

Learn

Knowledge, good practices and lessons will be captured regularly, as well as actively sourced from other projects and partners and integrated back into the project.

Ongoing; at least quarterly

Relevant lessons are captured by the project team and used to inform management decisions.

Annual Project Quality Assurance

The quality of the project will be assessed against UNDP’s quality standards to identify

Annually Areas of strength and weakness will be reviewed by project

9 BCtA will track and report to the DSC on indicators outlined on the RRF as well as on the Logframe included in Annex 1

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project strengths and weaknesses and to inform management decision making to improve the project.

management and used to inform decisions to improve project performance.

Review and Make Course Corrections

Internal review of data and evidence from all monitoring actions to inform decision making. Given that some indicators and targets, and their relative priorities, will change depending on strategy refinements (for instance, in alignment with inclusive business trends), the BCtA Secretariat will keep the log frame as a living document and hold regular reviews in consultation with the Steering Committee.

Semi-annually

Performance data, risks, lessons and quality will be discussed by the project board and used to make course corrections.

Project Report

A progress report will be presented to the Project Board and key stakeholders, consisting of progress data showing the results achieved against pre-defined annual targets at the output, outcome and impact levels, the annual project quality rating summary, an updated risk long with mitigation measures, and any evaluation or review reports prepared over the period.

Semi-annually, and at the end of the project (final

report)

Project Review (Project Board)

The project’s governance mechanism (i.e., project board) will hold regular project reviews to assess the performance of the project and review the Multi-Year Work Plan to ensure realistic budgeting over the life of the project. In the project’s final year, the Project Board shall hold an end-of project review to capture lessons learned and discuss opportunities for scaling up and to socialize project results and lessons learned with relevant audiences.

Semi-annually, and at the end of the project (final

review)

Any quality concerns or slower than expected progress should be discussed by the project board and management actions agreed to address the issues identified.

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Evaluation Plan

BCtA will commission independent evaluations that provide both the Donor Steering Board and the BCtA team with an opportunity for joint reflection with an external consultant about the programme’s strengths and weaknesses, as well as lessons that can be incorporated into future planning and implementation. The evaluations will also provide essential learning for the BCtA Secretariat, Donor Steering Board, the interested private sector actors, and the international development community.

For BCtA, we recommend two evaluations: a midterm evaluation (in 2018) and a final programme evaluation in 2019/20. In both cases the evaluation should be conducted by external evaluators jointly commissioned by the Donor Steering Board and the BCtA Secretariat.

Evaluation Title Partners (if

joint)

Related Strategic Plan

Output

UNDAF/CPD Outcome

Planned Completion

Date

Key Evaluation Stakeholders

Cost and Source of Funding

Mid-Term Evaluation 2018

Should be conducted by external evaluators jointly commissioned by the Donor Steering Board and the BCtA Secretariat.

70,000

Final Programme Evaluation

2019/20

Should be conducted by external evaluators jointly commissioned by the Donor Steering Board and the BCtA Secretariat.

100,000

The evaluations will chiefly assess BCtA’s performance against key indicators in the logical framework, with emphasis on the development impact of the programme to date and the extent to which the programme approach and strategy design ensures impact. The evaluations will test the assumptions that underpin BCtA’s theory of change, and make recommendations for improvements to delivery, performance, monitoring, and impact, if any, during the remainder of the programme or for any subsequent work. Both evaluations will distil lessons learned for the inclusive business sector and similar development networks.

Key questions to be answered by the midterm evaluation include:

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How has BCtA performed thus far in accordance to efficiency and effectiveness of its key metrics of monetary investment into inclusive business initiative, increased income generating activities, employment opportunities, and improved access to goods and services for poor populations while creating sustainable value for business?

How do businesses perceive BCtA and its services? What are member companies’ key demands (segmented by type of company) and how can BCtA best assist them?

If and how should BCtA’s value proposition evolve to meet company demands and inclusive business trends?

What are the key lessons learned about implementing and/or encouraging the adoption of inclusive business?

Should the BCtA Secretariat make any adjustments to its ongoing monitoring approaches in order to better support evaluation needs?

Is there evidence that inclusive business is delivering development impact?

How can BCtA best optimize its resources and prioritize for the next phase in terms of value and cost-effectiveness for donors and members?

The final evaluation should attempt to answer the following questions:

BCtA’s value and performance, contextualized within development and inclusive business trends

How has BCtA contributed to the development impacts outlined in the log frame (e.g., job creation, enhanced capacity)? o Has BCtA substantively contributed to new companies adopting IB practices? o Has BCtA contributed to scaling up and increasing the effectiveness of IB programmes? o Has BCtA increased awareness and the adoption of IB within local governments and development actors?

Which are the key BCtA activities that have contributed to BCtA’s mission? (E.g., test BCtA’s performance and relevance in provision of linkage, impact measurement, and convening services to companies)

Is BCtA’s approach to promoting inclusive business an effective one relative to other approaches to mainstreaming inclusive business?

Is BCtA’s strategy resource-efficient (e.g., provides good value for money for donors)? What is the best course of action / pathway for BCtA as a programme after 2016?

Impacts of inclusive business as an approach

Is the inclusive business approach an effective development tool? Is the inclusive business project delivering net positive development impacts for low income people?

Is the inclusive business model commercially successful / sustainable? Are companies able to realize substantive gains from implementing such models?

Do investments in inclusive business initiatives provide better value for money, relative to other development initiatives, by leveraging private sector investments and know-how? Are there any knock-off benefits to local economies in which businesses operate?

What are the key lessons learned about implementing and/or encouraging the adoption of inclusive business?

Guidelines for Evaluations

The specific evaluation approaches and methods will be linked to the evaluation questions asked and will be defined in collaboration with selected independent evaluators and reviewed by the Donor Steering Board. The evaluations should be designed in terms of DAC criteria and quality standards. The

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approach may include comprehensive and semi-structured surveys of the BCtA membership, as well as interviews with select companies and partners, to gauge the value of BCtA services. Evaluators should cull all data that has been continuously tracked to gain a holistic picture of the BCtA programme. In addition, evaluators will be expected to create and apply original quantitative analyses, for instance by using several proxies to triangulate an answer, to answer more complex evaluative questions, particularly those pertaining to attribution.

Between BCtA’s midterm and final evaluations, should there be a question to which BCtA requires the answer in order to effectively execute programming, BCtA may commission targeted case studies or research on a specific area to gain insight on best practices, test assumptions, and measure the relative value of key BCtA service offerings. Such studies, which are expected to utilize mainly qualitative interview and survey methods, serve to fill crucial, time-sensitive knowledge gaps and refine the relevant questions for the full evaluations (e.g., by assigning different priorities or weights to outcome indicators).

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VII. MULTI-YEAR WORK PLAN

EXPECTED OUTPUTS

PLANNED ACTIVITIES Planned Budget by Year RESPONSIBLE

PARTY

PLANNED BUDGET

Y1 Y2 Y3 Funding Source

Budget Description

Amount

Output 1: Increased number of high-performing commitments

Gender marker: 2

1.1 Development of complementary training modules to the SDG/IB maturity tool on key IB management practices

50,000

50,000

50,000

UNDP

Workshop Research Contractual services (IT) Communications Publication M&E

150,000

1.2 Partnerships with key players/ networks to support deployment of DG/IB maturity and IB management practice trainings

60,000 60,000 60,000 UNDP

Grant Workshop Communications Travel M&E

180,000

1.3 BCtA September General Assembly Annual Forum

85,000 86,700 88,434 UNDP

Travel Conferences Publications Communications M&E

260,134

1.4 Co-host global/regional events (Co-host 6 in total excluding annual forum/ 2 per year)

50,000 50,000 50,000 UNDP

Travel Conferences Publications Communications M&E

150,000

1.5 Media and Monitoring Data Partnerships (Guardian Sustainable Business, 3BL Media, MailChimp, MuckRack, Sustainalytics, etc.)

225,000 225,000 225,000 UNDP

Contractual Services – media/comms

Communications

M&E

675,000

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1.6 Website Additions and Maintenance

30,000 20,000 20,000 UNDP

Contractual Services

M&E

70,000

Sub-Total for Output 1 1,485,134

Output 2: Improved impact measurement and reporting practices

Gender marker: 2

2.1 Development of an interactive technology-enabled platform that provides self-guided modules and feedback loops to BCtA members to guide their impact measurement practice

200,000 170,000 140,000 UNDP

Workshop Research Contractual services (IT) Communications Publication M&E

510,000

2.2 Impact Measurement online trainings (12 in total, 4 per year)

10,000 10,000 10,000 UNDP

Communications

Contractual services (IT)

M&E

30,000

2.3 Impact Measurement in-person workshops/clinics (6 in total, est. 2 per year) 45,000 45,000 45,000 UNDP

Grant Workshop Communications Travel M&E

135,000

2.4 Partnerships with key players in the reporting and impact field

40,000 40,000 40,000 UNDP

Grant

Workshop

M&E

120,000

Sub-Total for Output 2 795,000

Output 3: Documented evidence and analysis on how inclusive business can be leveraged for the SDGs

Gender marker: 1

3.1 Development of an IB benchmarking methodology (considering progress/maturity and management practices

75,000 30,000 30,000 UNDP

Research Grant Contractual services (IT) Communications Publication M&E

135,000

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3.2 Development of SDG focused communication materials (incl. institutional video, video with voices from BoP populations, infographics, brochures, etc.)

80,000 10,000 10,000 UNDP

Communications

Consultant

M&E

100,000

3.3 Webinars (4 per year)

10,000 10,000 10,000 UNDP

Contractual Services

Communications

M&E

30,000

3.4 Development of thought leadership (incl. one flagship report, in depth case studies of BCtA 'high-performers', sectoral or thematic in depth reports)

50,000 110,000 70,000 UNDP

Research

Communications

Publications

M&E

230,000

3.5 Printing, translations, publications

20,000 20,000 20,000 UNDP Communications

Publications 60,000

3.6 Copyeditor and Graphic Designer

60,000 60,000 60,000 UNDP Consultant 180,000

3.7 Knowledge Dissemination Events (4 in total, avg 1 per year, includes consultations, round-tables, launching events, etc.)

20,000 40,000 40,000 UNDP

Conferences

Workshop

Communications

Publications

Travel

Consultant

100,000

Sub-Total for Output 3 835,000

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Output 4: Country level mobilization of commitments towards SDG contributions

Gender marker: 1

4.1 Country Level Activities (outreach support, in-country research on IB contribution to SDGs, PP dialogues) *

‘* countries determined by DSC

80,000 360,000 360,000 UNDP

Conferences

Workshop

Communications

Publications

Travel

Consultant

Research

Grant

M&E

800,000

Sub-Total for Output 4 800,000

Human Resources, Administration and Management

Staff Salaries - Programme Manager (P4)

224,654 233,640 242,986 UNDP Staff 701,280

Staff Salaries - Programme Specialist (Impact and Reporting) (P3)

189,283 196,854 204,729 UNDP

Staff 590,866

Staff Salaries - Outreach Analyst Coordinator (P2)

164,501 171,081 177,924 UNDP Staff 513,506

Staff Salaries -Advocacy and Knowledge Management Analyst (P2)

164,501 171,081 177,924 UNDP

Staff 513,506

Staff Salaries- Programme Support Analyst (JPO)

82,251 UNDP Staff 82,251

Global PS Advisor Support (30% P5)

77,289 80,381 83,596 UNDP Staff 241,265

Consultants (Strategic Communications)

85,000 88,400 91,936 UNDP Consultant 265,336

Consultants - Outreach and membership support

70,000 72,800 75,712 UNDP Consultant 218,512

Consultants - Impact measurement and reporting support

65,000 67,600 70,304 UNDP

Consultant 202,904

Administrative (procurement/finance) Support (G5)

50,000 52,000 54,080 UNDP

Consultant 156,080

Office Supplies 9,000 9,000 9,000 UNDP Supplies 27,000

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Office Space Rental 17,700 18,408 19,144 UNDP Rental 55,252

Staff Travel 85,000 85,000 85,000 UNDP Travel 255,000

Sub-Total 3,822,759

Mid-Term Evaluation and Final Evaluation 70,000 100,000

M&E 170,000

General Management Support 197,934 217,036 217,662 M&E 632,631

TOTAL 2,672,113 2,929,98

1 2,938,43

1 8,540,524

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VIII. GOVERNANCE AND MANAGEMENT ARRANGEMENTS

The Business Call to Action Alliance follows the UN’s Direct Implementation Modality with UNDP as the implementing agency. UNDP serves as executing agent for the Alliance and hosts the BCtA’s Secretariat with a fiduciary responsibility to provide oversight and accountability. The governance and programme implementation structure of the BCtA Alliance serves as the project board and is depicted in the diagram below:

PROJECT BOARD / BUSINESS CALL TO ACTION GOVERNANCE AND PROJECT IMPLEMENTATION STRUCTURE

INTERMEDIARY BENEFICIARY

Programme Partner Committee (Advisory

Committee) including UNGC, GRI, WBCSD

EXECUTIVE

Chair: Director of Istanbul International Center for Private Sector in Development, BPPS,

UNDP

SUPPLIER

Donor Steering Committee partners (includes current members): DFID, USAID, Sida, Minbuza, Ministry of Foreign Affairs in Finland

The governance and programme implementation structure of the Business Call to Action Alliance comprises the following bodies and formations:

The Donor Steering Committee (consisting of donor governments and UNDP) is the primary governing body providing strategic oversight for the Alliance and its Secretariat, including approving the project document, the annual work-plans and donor coordination on guidance on use of funds, financial reporting, funding mobilization and evaluation, and approval of new commitments.

The Programme Partner Committee (consisting of leading organizations engaged in inclusive business as well as 2 representatives from UNDP – 1 from BERA from a partnership development perspective and 1 from BPPS/Development Impact Group to support due diligence aspects) is tasked with the promotion of the BCtA Alliance to the international business community (member and non-member companies), and its members will provide strategic guidance and assist in joint activities with the Secretariat of the Alliance.

The Secretariat, which is responsible for management and coordination of activities of the Alliance, is led by the Programme Manager. It is accountable to the Donor Steering Committee for its performance.

Project Assurance

TBC

BCtA Secretariat

Programme Manager

BCtA Secretariat

Programme Support Team

Internal Advisors

BERA and BPPS/DIG, as members of the Programme Partner Committee

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This governance structure has been successfully in place since BCtA Phase II (2014-2016) and was approved by the existing partners of BCtA based on a benchmark review of governance structures of voluntary alliances that was conducted by an external consulting firm.

1. Donor Steering Committee

Purpose The Donor Steering Committee of the Business Call to Action is the primary governing body of the Alliance. It provides guidance and approval to the Secretariat in terms of budget setting and expenditure, and helps mobilize adequate resources as needed. In addition, it is a forum for communication among its members, including between the donor governments and UNDP on a range of issues related to UNDP’s fiduciary role as the host of the Business Call to Action Secretariat. Roles and Responsibilities The primary roles and responsibilities of the Donor Steering Committee are:

Approval of the project document and any subsequent changes made to it;

Approval of annual work plans;

Guidance to the Secretariat in the use of funds;

Review of annual budget and reporting on expenditures;

Conduct outreach, in conjunction with the Secretariat, to key potential funders and promote the Alliance and its activities as feasible and appropriate;

Approval of new donors and programme partners joining the Alliance;

Approval of any amendment to governance of the Alliance;

Setting evaluation guidelines for the Alliance;

Review of the progress of the Alliance based on annual work plans and external evaluations;

Review of the performance of the Secretariat on an annual basis in consultation with UNDP;

Discuss any issues related with UNDP as the host of the secretariat

Review commitment applications submitted by companies to the Business Call to Action for approval;

Review and approve change in media policy;

Review and approve substantial change in strategy

Identify participating countries; review and approve change in countries/scope Composition and Term and Representation

Maximum size: The Donor Steering Group shall comprise a maximum of 8 voting members including UNDP (seven donors and UNDP) and one non-voting programme manager of the Business Call to Action Secretariat

Term: Top seven funders will have a seat, should they wish to exercise it, for up to six months after the end of their financial commitment.

Representation: Each organization can nominate a lead representative and an alternate to be present in case the lead is unable to make it.

Principles The members of the Donor Steering Committee members commit to act in accordance with the following general principles:

Commitment: The Donor Steering Committee members agree to commit adequate time, resources, energy and efforts to fulfil their duties on the Donor Steering Committee. This includes, but is not limited to, reviewing all materials provided ahead of Donor Steering Committee meetings and attending all meetings in person or by phone to the extent possible.

Integrity: Donor Steering Committee members agree to always act with integrity and honesty in carrying out their duties on the Donor Steering Committee. This includes, but is not limited to, proactively bringing any ethical issues to the attention of the Donor Steering Committee and acting in accordance with the Conflicts of Interest Policy at all times.

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Respect: Donor Steering Committee members agree to always treat all Donor Steering Committee members with equal respect and listen to their views.

Collective accountability: Donor Steering Committee members agree to hold each other collectively accountable for carrying out their duties on the Steering Committee. This includes, but is not limited to, each Donor Steering Committee member being aware of their duties and reminding others of those duties in the event that it is required.

Decision making

Consensus: To the extent possible, the Donor Steering Committee shall make best endeavours to operate by consensus.

Voting: In case a consensus cannot be reached within the Donor Steering Committee, decisions of the Steering Committee shall be arrived through a majority vote which will guide implementation by the Secretariat.

Meetings Donor Steering Committee Regular Meetings

Frequency. The Donor Steering Committee shall meet twice a year, once in-person and once virtually. Should it be required, an additional meeting will be convened with DSC agreement. Urgent requests will be presented to the DSC via email.

Quorum. A quorum is reached if two thirds of the members are present. Any donor unable to attend will designate an alternate.

Notice. The Chair, with administrative support from the Secretariat, shall ensure that at least two weeks’ notice is given to Steering members ahead of meetings.

Agenda. The Secretariat shall ensure that the agenda and all pertinent information concerning the business to be conducted at each meeting shall be delivered to all Steering Committee members sufficiently in advance of each meeting to permit meaningful review.

Minutes. The Secretariat shall be responsible for taking minutes of all Steering Committee meetings.

Conflicts of Interest. Each and every member of the Steering Committee agrees to adhere to the Conflicts of Interest Policy.

Other Meetings

Any donor member of the Donor Steering Committee can call for a meeting with all other donors without the presence of the BCtA Secretariat and/or UNDP. In such a case, the donors can appoint a chair for the meeting.

Chairperson

Appointment of Chair. UNDP as the host of the Secretariat will chair the Donor Steering Committee at the Assistant Secretary General Level or a designated alternate

The Chair shall have the following key roles and responsibilities: • Review and approve an agenda ahead of Donor Steering Committee meetings, prepared

by the Secretariat and subject to DSC amendments; • Direct and facilitate inclusive and purposeful discussion at Donor Steering Committee

meetings; • Ensure that all agenda items are addressed and decisions are made in a timely fashion; • Ensure that all Donor Steering Committee members are aware of their duties as

members and obligations under the Conflicts of Interest Policy. 2. Programme Partner Committee Purpose The Programme Partner Committee (PPS) is the main advisory body of the Business Call to Action. Guidance from the PPC shall be presented to the DSC to act as inputs into DSC decisions where appropriate. (All members to be admitted into the PPC will be approved by the DSC) Roles and Responsibilities

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The primary roles and responsibilities of the Programme Partner Committee are:

Raise awareness of the initiative world-wide, mobilize stakeholders (both business and nonbusiness) and their commitments, and conduct advocacy and outreach at events and meetings on behalf of the initiative;

Promotion of the BCtA Alliance to the international business community (member and nonmember companies) and generation of new BCtA commitments;

Review and provide input in the annual work plan and annual progress report of the Secretariat;

Engage in joint activities with the Secretariat, in alignment with DSC-approved workplans and within the framework of the overall BCtA strategy.

Composition, Term and Representation

Maximum size. The Programme Partner Committee shall comprise a maximum of 6 members.

Membership: o Secretariat Host (UNDP); o Up to six members, including external institutions such as the United Nations Global

Compact, Global Reporting Initiative, the World Business Council on Sustainable Development and the International Chamber of Commerce; and UNDP representatives from BERA and BPPS/DIG.

o Members of the Donor Steering Committee can participate as observers

Term: o Minimum one year commitment and maximum until the term of proposed joint

activities between BCtA and the partner expires.

Representation: o Each organization can nominate a lead representative and an alternate

representative on governance.

Eligibility Criteria

Global Institutions that commit to support and contribute to BCtA’s workplan of activities in the framework of the Project Document based on an agreed upon partnership agreement including business membership associations, multilateral agencies working in the area of inclusive business etc. From UNDP, 1 representative from BERA who can offer advice and support on partnership development; as well as 1 representative from BPPS/Development Impact Group to advice and support on due diligence issues.

Principles

The members of the Programme Partner Committee members commit to act in accordance with the following general principles:

o Commitment. Programme Partner Committee members agree to commit adequate time, resources, energy and efforts to fulfill their duties on the Steering Committee. This includes, but is not limited to, reviewing all materials provided ahead of Programme Partner Committee meetings and attending all meetings in person or by phone to the extent possible.

o Integrity. Programme Partner Committee members agree to always act with integrity and honesty in carrying out their duties on the Programme Partner Committee. This includes, but is not limited to, proactively bringing any ethical issues to the attention of the Programme Partner Committee and acting in accordance with the Conflicts of Interest Policy at all times.

o Respect. Programme Partner Committee members agree to always treat all Programme Partner Committee members with equal respect and listen to their views.

o Collective accountability. Programme Partner Committee members agree to hold each other collectively accountable for carrying out their duties on the Programme Partner Committee. This includes, but is not limited to, each Programme Partner

47

Committee member being aware of their duties and reminding others of those duties in the event that it is required.

Decision making

Consensus. To the extent possible, the PPC shall make best endeavours to operate by consensus. Meetings

Frequency. The Programme Partner Committee shall meet through a minimum of two meetings per year, either in-person or virtually and at least one meeting shall be held in-person each year, coinciding with the timing of the Donor Steering Committee meeting. Thus offering an opportunity for a joint meeting between the PPC and the DSC.

Quorum. A quorum is reached if two thirds of the members are present.

Notice. The Chair, with administrative support from the Secretariat, shall ensure that at least two weeks’ notice is given to Programme Partner Committee members ahead of meetings.

Agenda. The Secretariat shall ensure that the agenda and all pertinent information concerning the business to be conducted at each meeting shall be delivered to all Programme Partner Committee members sufficiently in advance of each meeting to permit meaningful review.

Minutes. The Secretariat shall be responsible for taking minutes of all Programme Partner Committee meetings.

Conflicts of Interest Each and every member of the Programme Partner Committee agrees to adhere to the Conflicts of Interest Policy. Chairperson Appointment of the Chair. UNDP has the host of the Secretariat will chair the Programme Partner Committee Committee. The Chair shall have the following key roles and responsibilities:

Review and approve an agenda ahead of Programme Partner Committee meetings, prepared by the Secretariat; subject to PPC amendments

Direct and facilitate inclusive yet purposeful discussion at Programme Partner Committee meetings;

Ensure that all agenda items are addressed and decisions are made in a timely fashion;

Ensure that all Programme Partner Committee members are aware of their duties as members and obligations under the Conflicts of Interest Policy.

Programme Implementation Structure: 3. The Secretariat Purpose The Secretariat is hosted at UNDP and its staff are hired by UNDP, but some of its roles and responsibilities are independent of UNDP. The distinctions are described below. The Secretariat is responsible for the day-to-day management and operations of the Alliance, subject to the direction and guidance of Donor Steering Committee.

Roles and Responsibilities The primary roles and responsibilities of the Secretariat are noted below, recognizing that this list may expand and so should not be considered comprehensive:

Executive • Prepare and present an annual work plan and budget for the Alliance;

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• Identify funding gaps and mobilize adequate resources for the various activities of the Alliance;

• Carry out routine monitoring and data collection of the Alliance’s programs • Prepare and present an annual performance report on the Alliance’s activities

reviewing progress of all programmes.

Programme activities • Oversee performance of the work plan and expenditure of the budget; • Coordinate and manage the identification, development, approval, delivery,

implementation, evaluation, and closeout of all programs of the Alliance; • Commission and supervise project work contracted to consultants; • Ensure appropriate use of the Alliance’s resources and accountability of grant

recipients;

Administrative and marketing • Arrange and provide administrative assistance at Governing committee

meetings, send notices, prepare agendas and draft minutes; and • Maintain the Alliance’s marketing brochures, publications and its website.

Accountability of the Secretariat The Secretariat shall be accountable to the Donor Steering Committee for its performance and carrying out its roles and responsibilities. Such performance will be undertaken in consultation with UNDP on an annual basis. Role of United Nations Development Programme UNDP shall have several roles in the Alliance. To the extent possible, UNDP shall keep these various roles separate and distinct: Role on the Donor Steering Committee: UNDP has a permanent seat on the DSC by virtue of its ongoing contribution to the Alliance. The UNDP Representative and his/her alternate shall serve as voting members of both Committees and represent the institutional position of UNDP, while acting in the best interests of the Alliance. As a member of the DSC, UNDP also provides some in-kind contributions to the BCtA.

Host of the Secretariat

UNDP has been entrusted by the Donor Steering Committee to host the Alliance and in that

sense it oversees and support the operation of the secretariat. For administrative purposes,

BCtA is organized as a programme of UNDP and adheres to the latter rules and regulations.

Administrative Support. As part of its hosting arrangement with UNDP, the Secretariat shall be entitled to draw on UNDP’s human resource, finance and administration units for its delivery needs and operations.

Relationship with the Programme Manager and the Secretariat

Staff evaluations. As UNDP staff, the Programme Manager and staff of the Secretariat are subject to UNDP rules and procedures for annual performance reviews.

Recruitment and Procurement. The Programme manager has primary responsibility for initiating any recruitment and/or procurement process and making recommendations. UNDP has authority to make final decisions.

Project Assurance The project assurance role assures that the project adheres to the business case on behalf of the Executive; that project implementation is consistent with Steering Committee guidance; ensures the technical quality of the outputs through a review of products and deliverables; undertakes the annual project quality assurance analysis.

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IX. LEGAL CONTEXT AND RISK MANAGEMENT

LEGAL CONTEXT STANDARD CLAUSES

This project forms part of an overall programmatic framework under which several separate associated country level activities will be implemented. When assistance and support services are provided from this Project to the associated country level activities, this document shall be the “Project Document” instrument referred to in: (i) the respective signed SBAAs for the specific countries; or (ii) in the Supplemental Provisions attached to the Project Document in cases where the recipient country has not signed an SBAA with UNDP, attached hereto and forming an integral part hereof. All references in the SBAA to “Executing Agency” shall be deemed to refer to “Implementing Partner.”

This project will be implemented by the agency (name of agency) (“Implementing Partner”) in accordance with its financial regulations, rules, practices and procedures only to the extent that they do not contravene the principles of the Financial Regulations and Rules of UNDP. Where the financial governance of an Implementing Partner does not provide the required guidance to ensure best value for money, fairness, integrity, transparency, and effective international competition, the financial governance of UNDP shall apply.

RISK MANAGEMENT STANDARD CLAUSES

1. UNDP as the Implementing Partner will comply with the policies, procedures and practices of the United Nations Security Management System (UNSMS.)

2. UNDP as the Implementing Partner will undertake all reasonable efforts to ensure that none of the [project funds]10 [UNDP funds received pursuant to the Project Document]11 are used to provide support to individuals or entities associated with terrorism and that the recipients of any amounts provided by UNDP hereunder do not appear on the list maintained by the Security Council Committee established pursuant to resolution 1267 (1999). The list can be accessed via http://www.un.org/sc/committees/1267/aq_sanctions_list.shtml. This provision must be included in all sub-contracts or sub-agreements entered into under this Project Document.

3. Social and environmental sustainability will be enhanced through application of the UNDP Social and Environmental Standards (http://www.undp.org/ses) and related Accountability Mechanism (http://www.undp.org/secu-srm).

4. UNDP as the Implementing Partner will: (a) conduct project and programme-related activities in a manner consistent with the UNDP Social and Environmental Standards, (b) implement any management or mitigation plan prepared for the project or programme to comply with such standards, and (c) engage in a constructive and timely manner to address any concerns and complaints raised through the Accountability Mechanism. UNDP will seek to ensure that communities and other project stakeholders are informed of and have access to the Accountability Mechanism.

5. All signatories to the Project Document shall cooperate in good faith with any exercise to evaluate any programme or project-related commitments or compliance with the UNDP Social and Environmental Standards. This includes providing access to project sites, relevant personnel, information, and documentation.

10 To be used where UNDP is the Implementing Partner 11 To be used where the UN, a UN fund/programme or a specialized agency is the Implementing Partner

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6. UNDP as the Implementing Partner will ensure that the following obligations are binding on each responsible party, subcontractor and sub-recipient:

a. Consistent with the Article III of the SBAA [or the Supplemental Provisions to the Project Document], the responsibility for the safety and security of each responsible party, subcontractor and sub-recipient and its personnel and property, and of UNDP’s property in such responsible party’s, subcontractor’s and sub-recipient’s custody, rests with such responsible party, subcontractor and sub-recipient. To this end, each responsible party, subcontractor and sub-recipient shall:

i. put in place an appropriate security plan and maintain the security plan, taking into account the security situation in the country where the project is being carried;

ii. assume all risks and liabilities related to such responsible party’s, subcontractor’s and sub-recipient’s security, and the full implementation of the security plan.

b. UNDP reserves the right to verify whether such a plan is in place, and to suggest

modifications to the plan when necessary. Failure to maintain and implement an appropriate security plan as required hereunder shall be deemed a breach of the responsible party’s, subcontractor’s and sub-recipient’s obligations under this Project Document.

c. Each responsible party, subcontractor and sub-recipient will take appropriate steps to prevent misuse of funds, fraud or corruption, by its officials, consultants, subcontractors and sub-recipients in implementing the project or programme or using the UNDP funds. It will ensure that its financial management, anti-corruption and anti-fraud policies are in place and enforced for all funding received from or through UNDP.

d. The requirements of the following documents, then in force at the time of signature of the

Project Document, apply to each responsible party, subcontractor and sub-recipient: (a) UNDP Policy on Fraud and other Corrupt Practices and (b) UNDP Office of Audit and Investigations Investigation Guidelines. Each responsible party, subcontractor and sub-recipient agrees to the requirements of the above documents, which are an integral part of this Project Document and are available online at www.undp.org.

e. In the event that an investigation is required, UNDP will conduct investigations relating to

any aspect of UNDP programmes and projects. Each responsible party, subcontractor and sub-recipient will provide its full cooperation, including making available personnel, relevant documentation, and granting access to its (and its consultants’, subcontractors’ and sub-recipients’) premises, for such purposes at reasonable times and on reasonable conditions as may be required for the purpose of an investigation. Should there be a limitation in meeting this obligation, UNDP shall consult with it to find a solution.

f. Each responsible party, subcontractor and sub-recipient will promptly inform UNDP as the

Implementing Partner in case of any incidence of inappropriate use of funds, or credible allegation of fraud or corruption with due confidentiality.

Where it becomes aware that a UNDP project or activity, in whole or in part, is the focus of investigation for alleged fraud/corruption, each responsible party, subcontractor and sub-recipient will inform the UNDP Resident Representative/Head of Office, who will promptly inform UNDP’s Office of Audit and Investigations (OAI). It will provide regular updates to the head of UNDP in the country and OAI of the status of, and actions relating to, such investigation.

g. UNDP will be entitled to a refund from the responsible party, subcontractor or sub-recipient

of any funds provided that have been used inappropriately, including through fraud or corruption, or otherwise paid other than in accordance with the terms and conditions of this

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Project Document. Such amount may be deducted by UNDP from any payment due to the responsible party, subcontractor or sub-recipient under this or any other agreement. Recovery of such amount by UNDP shall not diminish or curtail any responsible party’s, subcontractor’s or sub-recipient’s obligations under this Project Document. Where such funds have not been refunded to UNDP, the responsible party, subcontractor or sub-recipient agrees that donors to UNDP (including the Government) whose funding is the source, in whole or in part, of the funds for the activities under this Project Document, may seek recourse to such responsible party, subcontractor or sub-recipient for the recovery of any funds determined by UNDP to have been used inappropriately, including through fraud or corruption, or otherwise paid other than in accordance with the terms and conditions of the Project Document. Note: The term “Project Document” as used in this clause shall be deemed to include any relevant subsidiary agreement further to the Project Document, including those with responsible parties, subcontractors and sub-recipients.

h. Each contract issued by the responsible party, subcontractor or sub-recipient in connection

with this Project Document shall include a provision representing that no fees, gratuities, rebates, gifts, commissions or other payments, other than those shown in the proposal, have been given, received, or promised in connection with the selection process or in contract execution, and that the recipient of funds from it shall cooperate with any and all investigations and post-payment audits.

i. Should UNDP refer to the relevant national authorities for appropriate legal action any

alleged wrongdoing relating to the project or programme, the Government will ensure that the relevant national authorities shall actively investigate the same and take appropriate legal action against all individuals found to have participated in the wrongdoing, recover and return any recovered funds to UNDP.

j. Each responsible party, subcontractor and sub-recipient shall ensure that all of its

obligations set forth under this section entitled “Risk Management” are passed on to its subcontractors and sub-recipients and that all the clauses under this section entitled “Risk Management Standard Clauses” are adequately reflected, mutatis mutandis, in all its sub-contracts or sub-agreements entered into further to this Project Document.

X. ANNEXES

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ANNEX 1: BCtA Impact, Outcomes and Output Level Indicators

The following table presents a summary of indicators at impact, outcome and output level, followed by a more detailed table for each level.

Impact Level Indicators

Impact Indicators

(these will be disaggregated by gender and when possible youth)

Related SDG Baseline (EOY2015)12

Based on commitments made in 2015

Impact: IBs make a significant contribution to achieving the SDGs

Total monetary investment by BCtA members into BCtA IB initiatives

1.a. Ensure significant mobilization of resources from a variety of sources

Investment of 763 million (13 companies)*

Net number of full-time jobs created

8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value

Creation of 106 thousand full time jobs (23 companies)*

12 Note that BCtA used the year of 2015 as the baseline for the impact indicator tracking. EOY 2016 is to be updated in the first quarter of 2017.

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Net number of people with improved access to goods and services (by SDG impact area)

People with improved

nutrition as a result of

the initiative

People with improved

health outcomes as a

result of the initiative

People receiving

training/education

People with improved

access to water

People with improved

access to sanitation

People with improved

access to energy

People with increased

access to financial

services

People with increased

access to housing

3: Ensure healthy lives

4: Ensure inclusive and equitable quality education

6.1 By 2030, achieve universal and equitable access to safe and affordable drinking water for all

6.2 By 2030, achieve access to adequate and equitable sanitation and hygiene for all and end open defecation, paying special attention to the needs of women and girls and those in vulnerable situations

7.1 By 2030, ensure universal access to affordable, reliable and modern energy services

8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all

11.1 By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums

Improvement of nutrition

for 167 thousand people (4

companies)*

Improvement of health for

101 million people (11

companies, excluding GE

Healthcare’s commitment

to reach 5.8 billion people)*

Provision of training/

education for 321 thousand

people (21 companies)*

Improvement of access to

water to 682 thousand

people (4 companies)*

Improvement of access to

sanitation of 376 thousand

people (2 companies)*

Improvement of access to

energy to 138 thousand

people (3 companies)*

Access to financial

services to 959 thousand

people (8 companies)*

Improvement of living

conditions to 1.2 million (12

companies)*

Net number of people with increased productivity/revenue generating activities as a result of the initiative

2.3 By 2030, double the agricultural productivity and incomes of small-scale food producers

7 million (14 companies)*

Indicator justifications for Impact

BCtA tracks the results member companies achieve in terms of the above indicators. In

addition, it tracks the commitments companies make on the above indicators, to provide a

projection of expected impact and to fill in any gaps in reporting.

BCtA supports member companies in achieving the above outputs through enhancing the

visibility, credibility and effectiveness of their inclusive business activities. In addition, it

allows these results to be counted by providing a validation system, including the

documentation of commitments, measurement support, and reporting system.

As the SDG tracking system evolves, BCtA may adjust the above indicators to align more

directly with the SDG targets.

* Note: even though BCtA had 37 new members in 2015, the baseline information only reflected the number of companies that have selected the specific indicators at the time of making the commitment.

Outcome level

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Outcome Indicators Baseline (EOY 2016)

2017 2018 2019

Outcome A: IB is recognized as an effective approach to achieving the SDGs

Recognition of IB as PS contribution to SDG global agenda (Yes/No)

To be tracked going forward

Indicators to track IB models contribution to the SDGs defined

No indicators defined

Develop indicators

Test indicators Revise indicators

IB included by leading corporate sustainability standards as a measure of responsible business practices

To be tracked forward

Indicator justifications for Outcome A

Overall objective is to increase the visibility of IB as an effective approach to contribute to

the SDGs.

Outcome B: The credibility of IBs' results and integrity is improved

Evidence of IB contribution to SDGs improved

to be tracked going forward

Type of evidence defined

Evidence delivered

Questions for further research defined

Number of participating companies that adopt better impact measurement practices through BCtA tools and guidance

21 participating companies in BIMS

40 80 130

Members and other stakeholders perceive improved credibility of IB commitments and BCtA’s membership and impact measurement support.

to be tracked going forward through annual surveys

Indicator justifications for Outcome B

The credibility of inclusive business contribution to the SDGs can be assessed through a

number of interrelated, measurable outcomes. To what extent BCtA's service offering

strengthens this credibility is evidenced by its recognition through key actors and the

perception of its members.

Which type of evidence is most useful to prove the link between inclusive business and the

SDGs will be defined as part of the programme. It can include, among others, in-depth case

studies including impact measurement, identification of effective models based on review of

several cases, as well as sample checks of company reports and cross-portfolio analysis.

BCtA's approach to validating inclusive businesses, if credible, will be referenced by others.

For example, the criteria for selection, or the good management practices would be

recognized and referred to as a kind of industry-standard by others. Again, the relevance of

the reference is more important than the number of references.

The perception of members to what extent BCtA membership has enhanced their credibility

with others can be assessed in the annual member survey. Questions can include, among

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others, whether members find that BCtA membership improves their credibility with

stakeholders, and whether BCtA has helped them improve their own measurement practice

and evidence of impact.

Outcome C: IBs increase their effectiveness and scale

Members adopting good IB management practices

No indicators available

Define good management practices benchmarking/ tracking tool

Track good management practices and assess link with progress made

Track good management practices and assess link with progress made

Number of follow-on commitments

3

Number of commitments that report growth

To be tracked going forward

Number of member companies that perceive BCtA tools have helped them improve their effectiveness and scale

To be tracked going forward through member survey

Indicator justifications for Outcome B

BCtA will also work towards establishing the link between good management practices and

greater effectiveness. To this end, a benchmarking tool will be developed that tracks and

compares both progress made by IB initiatives and adoption of a set of good IB practices.

Results from this benchmarking analysis will be aggregated to provide a portfolio view of

progress and adoption of good practices. The tool will be developed in year one and then

implemented from year two.

Measuring follow-on commitments helps test the extent to which companies are scaling,

growing, or replicating IBs

Companies that report growth of their initiative is a proxy for determining whether the company is experiencing benefits to the business from the initiative

To what extent BCtA contributes to the effectiveness of members can best be assessed

through the member survey.

Output level

Output Indicators Baseline (EOY 2016)

2017 2018 2019

Output 1: Increased number of high-performing commitments.

Number of potential member companies that BCtA has encouraged to consider IB annually

Yearly indicators

200 (per year, average)

400 450 550

Number of new BCtA companies

Cumulative indicators

Total 176 companies

215 265 320

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Number of BCtA Commitments

Cumulative indicators

Total 180 commitments

Over 320

Online and offline capacity building on SDG/IB Maturity Tool

To be tracked going forward

Implemented reaching 80 companies

Remaining modules developed. Two implemented reaching 100companies

All modules implemented reaching 150 companies and reviewed

Relevant role at critical global/regional events

Yearly indicators

At least one yearly global event (Annual Forum)

Co-host at least 3 events, incl. annual forum

Co-host at least 3 events, incl. annual forum

Co-host at least 3 events, incl. annual forum

Selection process and criteria published

Revised Selection process and criteria in draft

Completed and applied

Applied Reviewed

High Performer Category Defined and Implemented

Not defined Defined Applied Applied and Reviewed

Global media and event partnerships

3 (Guardian, 3BL Media, TPI)

Key partners mapped, criteria for engagement defined, partnership established

Strategic partnerships established and implemented

Partnerships reviewed and strengthens

Indicator justifications for Output 1

Number of pipeline companies indicates progress in outreach to new companies

Number of new commitments will serve as a proxy for renewed commitments indicating scalability, replicability

Output 2: Increased impact measurement and reporting

Interactive Impact measurement toolkit

BIMS works with 21 companies

First module developed and publicly available

First 2 modules developed and deployed

Third module developed

All modules developed, publicly available and deployed

Online and offline capacity building on impact measurement using BCtA’s toolkit

Cumulative indicators

To be tracked going forward

40 80 130

% of required member companies who share their annual progress report

68% Over 60% Over 60% Over 60%

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Collaboration with key players in the SDG measurement space

Collaboration with GRI, and BIMS implementing providers

Key stakeholders mapped and criteria for engagement defined

Strategic partnership/ collaboration established

Collaboration reviewed and strengthens

Indicator justifications for Output 2

Second indicator measures the reach and growth of BCtA’s impact measurement service offering

Second indicator will allow BCtA to track improvements in yearly reporting

Output 3: Documented evidence and analysis on how IB can be leveraged for the SDGs

Thought leadership contributions published

Variety of publications including over 60 case studies, one flagship report and various sector and country level publications

Develop and publish thought leadership contribution(s) including one in depth report

Develop and publish thought leadership contribution(s) including one flagship report and

5 Selected cases documented

Develop and publish thought leadership contribution(s) including 5 Selected cases documented

Number of BCtA media contributions on Inclusive Business (own and from others)

Yearly indicators

90 Content Pieces Generated (articles, blogs, videos)

90 120 150

Benchmarking of progress and management practices; and aggregation methodologies developed

Aggregation of commitment targets and methodology to map against SDGs in place

No benchmarking methodology available

Methodologies fully developed and applied

Methodology applied

Methodologies reviewed and applied

BCtA Communications/ Dissemination Strategy and implementation plan aligned with the Phase III and materials developed. (moving towards a more SDG focused and targeted around effectiveness and scale)

Global communication strategy in place

Applied Applied Reviewed

Indicator justifications for Output 3

Information published gauges BCtA’s efforts to gather and disseminate IB knowledge and its advocacy reach

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One measurement of success of dissemination of knowledge is number of mentions in the media, including newspaper, print, TV/radio

Output 4: Country level mobilization of commitments towards SDG contributions

Number of country level engagements

3 – Philippines, Kenya, Colombia

3 countries 3 countries 3 countries

Number of new commitments as a result of BCtA country level engagement

Yearly indicators

5 (average yearly target)

12 12 12

Companies reached through online and offline capacity building on SDG/IB Maturity Tool and impact measurement tools delivered in those countries

Yearly indicators

To be tracked going forward

40 45 50

Country-level publication on IB contribution to SDG

Yearly indicators

To be tracked going forward

2 country-level publications completed

1 country-level publication completed

Number of SDG and IB public-private dialogues facilitated

Yearly indicators

To be tracked going forward

2 country level dialogues facilitated

1 country level dialogue facilitated

Indicator justifications for Output 4

Number of new commitments resulting from BCtA’s country-level activities will help measure how valuable these activities are to companies

Companies reached through training will help measure effective deployment of tools and trainings by BCtA

Dialogues facilitated will help measure how BCtA has used its country-level commitments, and knowledge products to engage national governments and raise awareness on the link between IB and contribution to the SDGs

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Annex 2: BCtA Donor Steering Committee Terms of Reference

Introduction

These Terms of Reference set out the responsibilities and roles of the Donor Steering Committee (DSC), the strategic decision-making body for the Business Call to Action.

Key stakeholders of the Donor Steering Committee

The donor group is comprised of at least one and up to two senior representatives from the following institutions:

The Department for International Development (DFID),

the Swedish International Development Cooperation Agency (Sida),

the United States Agency for International Development (USAID),

the Ministry for Foreign Affairs, Netherlands (Minbuza),

the Government of Finland

the United Nations Development Programme,

the Business Call to Action Secretariat (as a non-voting member).

BCtA will coordinate DSC meetings and commission materials for circulation no less than ten days in advance of DSC meetings. BCtA is responsible for taking and distributing minutes and action points.

Roles & Responsibilities

i. Strategic oversight The DSC determines and guides overall strategy, policy, and substantive partnerships for BCtA. It also provides feedback and advice on how to make BCtA more effective. It is the strategic decision-making body for the programme, with approval on substantial changes of strategy and strategic partnerships.

Matters of strategic importance will be presented at bi-annual DSC meetings where DSC members will take decisions on specific, strategic questions put forward in the agenda. Agendas for meetings will be set by BCtA, having consulted the DSC members and BCtA will supply for circulation commissioned presentations and briefings as needed for such meetings. Where an issue emerges that requires prompt attention in between DSC meetings, BCtA will disseminate materials and requests to the DSC members for urgent review.

Responsibility for final approval of financial and narrative reports, financial forecasts, budgets, and work plans lies with the DSC.

Where possible, decisions of the SC will be taken by consensus with the full participation of all members.

ii. Donor outreach

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BCtA has sole responsibility for formal communications with potential donors as well as for the incorporation of additional donors into the DSC (following the rule that donor contributions towards BCtA cannot be earmarked for specific activities or purposes). BCtA may request DSC members to jointly consult with potential donors. All potential donor requests and discussions will be presented to the DSC for discussion and for final approval.

iii. Overview of Roles, Responsibilities, and Decision-Making While UNDP is responsible for day-to-day oversight and hosting of the Business Call to Action Secretariat, the DSC is the approval body for BCtA’s work plans, budgets, annual and semi-annual reports and estimated expenditure estimates. Below is a table outlining the responsibilities of each stakeholder.

The table below gives an overview of the roles and responsibilities of the different governance bodies. The table uses the RACI model, dividing roles into 4 categories:

R = Responsible, unit that is assigned to do the work

A = Approver, unit that makes final decision and has ultimate ownership

C = Consulted, unit must be consulted before decision is made

I = Informed, unit must be informed that a decision has been taken

The cells in gray are the decisions/activities where consultation is required and the cells in yellow indicate the approver.

Activity BCtA UNDP13 Donor Steering Committee

1 Annual Reports R I A

2 Annual Expenditure Estimate R I I

3 Certified Financial Statements by UNDP to each donor as per UNDP bilateral agreements14

C R I

5 Total Budget variance in excess above 10% R C A

6 Single Item Expenditures above

$200,000 per annum

R A I

7 Significant Changes in timelines R C A

8 Changes to core deliverables15 R I A

9 Identification of countries. Change of countries/scope

R C A

13 As per UNDP’s role of oversight of the Secretariat on behalf of the Donor Steering Committee 14 Where applicable 15 Core deliverables and targets are outlined in the 3 year logframe in the approved Project Document

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10

Substantial change of strategy R C A

11

Change of media policy R n/a A

12

Strategic partnership16 R C A

Meetings: Frequency & Location

The DSC will meet twice a year, once in-person and once virtually. Should it be required, an additional meeting will be convened with DSC agreement. Urgent requests will be presented to the DSC via email.

It is proposed that the DSC convenes in March and in October of every year.

The October meeting is to be conducted in-person, as the main opportunity to inform work planning for the year to come (the BCtA programme year is Jan – Dec and planning materials are drafted in October for the year to come).

o Prior to the October Meeting, Annual Work Plans, Annual Budgets and Mid-Year Narratives will be sent as per timeline below to be discussed at the October Meeting along with other strategic issues

The March meeting will be conducted via teleconference unless otherwise requested. o Prior to the March meeting, the Annual Report for the year prior will be circulated

to be discussed along with other strategic issues

Quorum for the DSC is two thirds of all institutions on the DSC present. Any donor unable to attend will designate an alternate.

Reporting requirements and timelines

Report Due Reviewed by Cover Period

Draft Annual Work plan End Sep Mid Oct Jan – Dec of following year

Draft Annual Budget with forecast for the year to come

End Sep Mid Oct Jan - Dec of following year

Final Annual Work Plan End Nov Mid Dec Jan - Dec of following year

Final Annual Budget for the year to come

End Nov Mid Dec Jan - Dec of following year

Annual Narrative report,

(including output indicators)

Mid-Feb End Feb The previous Jan - Dec

16 This will apply to all future partnerships including those under the Programme Partnership Committee

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Certified Financial Statements

End September Mid Oct The previous Jan - Dec

Semi-Annual Narrative Report

End Sep Mid-Oct The previous Jan - June

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ANNEX 3: BIMS CASE STUDIES AND SAMPLE INDICATORS

The following table shows sample indicators/survey questions by five sectors. These are based on information from 15 BIMS participating companies.

In addition, in September 2016, BCtA published the first four BIMS case studies on Access Afya, Echale A Tu Casa, Empower Pragati and Mahindra Rural Housing Finance that capture the lessons learned from BIMS implementation. Highlights of these cases are included below. The case studies can be downloaded from BCtA’s website here.

Access Afya

Access Afya is a social enterprise operating micro-clinics and field-based community health programs in the slums of Nairobi, Kenya. The company envisions an alternative system that is more accessible, affordable, and reliable than the current public and informal options; one that empowers patients through community education and advocacy for health-seeking behaviours. Having successfully established its flagship clinics in Mukuru, Access Afya is identifying sites for

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three new clinics and has engaged BIMS to measure the accessibility, costs and quality of the existing healthcare services in those areas in order to assess the baseline potential for impact.

After the training with Access Afya’s management and field staff, BIMS helped them design mobile-enabled surveys to measure indicators, including ‘Breakdown of health issues across programmes and patients’, ‘Number of new patients’, ‘Number of return patients’, ‘Difference in pharmaceutical prices of local competitors’, ‘Reported satisfaction with services’, ‘Reported resolution of health issues’, ‘Average monthly spending on health in clinic areas’ and ‘School attendance and performance’. Access Afya will use the indicators and survey questions as a baseline to keep track of their progress and gain insightful feedback from stakeholders.

With hundreds of data collected so far, Access Afya was able to glean insights on the intended social impact that they are trying to achieve. For instance, the data shows that the company can explore influencing SDG 5, Gender equality, as part of its social mission as over 60 percent of the company’s patients are women. They can also validate assumptions about the Healthy Schools Programme and track progress towards SDG 2, Food security and improved nutrition, by establishing baseline nutritional assessments for students and tracking progress over time. Some of Access Afya’s social impact, such as its impact on SDG 3, Good health and well-being, needs to be assessed at a later stage once the company has the chance to conduct a follow-up survey to see the change in the beneficiaries’ health status over time.

¡Échale! A Tu Casa

¡Échale! A Tu Casa is a social enterprise that provides affordable eco-friendly housing solutions to underserved communities in Mexico. The company has spent the last 15 years building homes and stronger communities in 23 Mexican states. Échale’s integrated approach to strengthening communities goes beyond constructing homes to include workshops that actively involve community members and encourage them to be more engaged citizens. Workshop topics include ‘designing your dream house’, ‘learning to read blue prints’ and ‘training on financials’. The Échale team also works closely with communities to build eco-friendly adobe blocks that are used for the majority of its house construction.

With the support of BIMS, Échale developed a Social Value Chain to delineate the business goals, strategies and operations that contribute to achieving its targets for social impact. The indicators include ‘Number of persons per room in beneficiary homes’, ‘Number of persons in each village; number interested in building homes/eligibility for government subsidies’, ‘Source and treatment of drinking water’, ‘Number of homes built using the principles of sustainable construction (e.g. adobe blocks, open spaces, ventilation, toilets)’, ‘Number of home improvements made’, and ‘Number of new home construction projects completed in each community’.

BIMS surveys helped Échale set parameters for the organization to better understand its impact on clients’ lives and how these parameters align with the SDGs. For instance, the workshops Échale provided to the community transferred valuable knowledge about how to improve health (SDG 3) and household sanitation (SDG 6). The follow-up survey also included questions about access to loans (SDG 1) in order to understand if working with Échale gives clients greater access to financing. So far, the follow-up survey data do not indicate a change in access to financial services, but this may change as more communities are surveyed and communities are assessed at 12 and 24 months. The survey also assessed clients’ level of commitment to their communities and assessed whether Échale’s training has led to further job prospects (SDG 8). In the first community where the first follow-up survey was conducted, the percentage of people willing to participate in the construction of a community center increased from 13 percent at baseline to 25 percent after six months. This increased willingness to contribute to common assets shows a greater commitment to community strengthening after working with Échale.

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Furthermore, after the engagement with BIMS, Échale has come up with a strategy for helping to address all 17 SDGs. As for the next steps in increasing impact, the Échale team is thinking about how it can establish more global partnerships (SDG 17) to move beyond Mexico and reduce inequalities globally (in line with SDG 10).

Empower Pragati

Empower Pragati is a vocational training company in India working towards implementing the National Vocational Education Qualification Framework (NVEQF) programme in six states. It has successfully entered into an Agreement with the State Government of Himachal Pradesh to implement this program. The NVEQF programme provides vocational-education content to Secondary and Senior Secondary Schools (9-12 grades). Empower specifically works with the Himachal Pradesh government on implementing the ITeS, Retail and Agriculture content. To incorporate the insights from customers and other stakeholders into their service development to better reflect the market needs, BIMS helped Empower Pragati develop an analytical framework with indicators to visualize the linkage between their business and social impact.

After the training with Empower Pragati’s management and field staff, BIMS further helped them design seven mobile-enabled surveys to measure indicators including ‘Hours of instructional / computer time per student (planned vs actual)’, ‘Percentage of trainers and students by demographic parameters’, ‘Stakeholders feedback on class-time duration, guest lectures, industry visits, implementation hurdles, etc.’, ‘Student attendance & satisfaction rates’, ‘Course certification rates’, ‘Perceptions of school and education dept. staff’, ‘Willingness by industries to host visits and hire high school graduates with vocational training’, ‘Reasons students and parents prefer vocational education’, and ‘% students and parents who expect employment after secondary schooling’. Empower will use the indicators and survey questions as a baseline to keep track of their progress and gain insightful feedback from stakeholders.

The first round of data collection was conducted in Himachal Pradesh. Within three months of implementation, Empower Pragati have collected 2,033 complete surveys and has already used this survey data to provide some early insights to the government’s education department. For instance, the data shows the strong correlation between gender and aspirations once secondary education is completed. The BIMS student survey data shows that nearly 50% of the students in the course are girls. But, compared to boys, more girls – 10% more, are interested in pursuing a Bachelor’s degree, instead of seeking employment after completing their secondary school. This contradicts one of the objectives of the ITeS course – namely improving employability rates after the completion of secondary schooling. The government and education services provider need this kind of data to better understand gender-specific requirements and develop tailored programs and policies that promote greater women’s participation. In addition, Empower identifies Reducing Inequalities (SDG 10) as a part of its social mission. Through BIMS surveys, Empower could ascertain that the students in the secondary schools are indeed from lower-income groups. Empower also surveyed potential employers to understand their willingness to hire and the salary-levels they can offer to secondary school graduates. This data can help understand labor demand and influence labor standards.

Mahindra

Mahindra is a financial services company that provides home loans to low-income families primarily in rural India. The company currently operates in 10 states in India and caters to hundreds of thousands of home-loan borrowers. Their main objective of measuring the entire results chain is to understand how their home loans to low-income communities in rural India influence their living standards. BIMS helped Mahindra articulate clearly on its social objectives and identify inputs, operational activities and outputs that contribute to their goals.

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Mahindra did a mapping of its key activities against the SDGs and identified SDG 1 (No Poverty), SDG 11 (Sustainable Cities and Communities) and SDG 5 (Gender Equality) as material to their business and are engaged in data collection on these areas. For instance, they are using BIMS to collect key data on ‘Income level of customers’, ‘Banking experience of customers’, ‘Percentage of customers that require credit/asset authentication’, ‘Active customers year-on-year’, ‘Operational profits’, ‘% of customers with women as co-signatories on the loans’, ‘% of customers with indoor toilets and sanitation’, and ‘Debt levels of customers pre and post home loan’.

Mahindra operates in 10 Indian states with regional offices. The company has already completed surveying one region, covering 805 new and old customers. The survey will be replicated in two other states this year. Some of preliminary insights related to SDGs resulting from BIMS are: (1) Overtime, Mahindra can explore influencing Gender Equality (SDG 5) as part of their social mission. Mahindra’s customer survey shows that majority their customers believe women should be co-owners and co-borrowers, but actual ownership titles are still in the name of the male members of the households; (2) Clean Water and Sanitation (SDG 6) can also be included as part of Mahindra’s social mission. Currently, customers do not seem to invest their home loans to upgrade the water and sanitation facilities within their habitation. As home-improvement financiers, Mahindra can educate and influence their customers regarding the benefits of installing clean water supply and sanitation facilities; (3) Mahindra is already impacting No Poverty (SDG 1) by increasing access to financial services to people who are considered ‘non-bankable’.

ANNEX 4: The Business Call to Action’s Focus on Gender Inclusion and Human Rights

In line with UNDP’s commitment to apply SES across all programming, which includes human

rights, gender equality and women’s empowerment as the three core principles, the purpose of

this annex is to identify the areas in which the Business Call to Action includes a human rights

perspective, and a gender perspective, in its work. The BCtA encourages member companies

to adhere to the UN Guiding Principles on Business and Human Rights, the Global Compact’s

ten principles “to embrace, support and enact, within their sphere of influence, a set of core values

in the areas of human rights, labour standards, the environment and anti-corruption”, as well as

to ILO conventions and OECD Guidelines for Multinational Organizations, all of which emphasize

respect for human rights and consideration for gender equity.

BCtA acts on these principles through using the appropriate criteria in screening applicant

companies; through tracking any relevant controversies through the lifetime of companies’

affiliation with BCtA; through asking companies to report on results related to gender and diversity;

and through developing content related to gender and diversity to raise awareness of the potential

for inclusive businesses in this area.

Due Diligence Prior to Acceptance of Potential Partners into BCtA

The Business Call to Action Secretariat performs a due diligence review of all companies prior to

submitting their BCtA applications for membership consideration. This due diligence review

examines any major environmental, social, and governance controversies associated with the

applicant, which includes any human rights violations, and/or controversies involving vulnerable

or diverse groups such as women, youth, and indigenous peoples. This review results in a

decision to either engage or disengage with the company, with the intention of limiting any risks

of association with the BCtA and its supporting Partners.

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Human Rights: Based on the UN Guiding Principles on Business and Human Rights,

responsibility for respecting human rights requires that companies seek to prevent or

mitigate adverse human rights impacts that are directly linked to their operations,

products or services by their business relationships (business partners, entities in its

value chain, other non-State or State entity), even if the company itself has not

contributed to those impacts. These include violation of human rights or complicity in

human rights violations, use or toleration of forced or compulsory labor, and use or

toleration of child labor, among others. Should any evidence be found of ongoing

violations during the due diligence review, BCtA will follow UNDP’s policy to discontinue

engagement with the company. In addition to ensuring the company is not complicit in

human rights violations, the proposed commitment will be reviewed to ensure it

promotes and enhances human rights, ensuring effective and informed participation of

stakeholders. All applicants will be asked to provide a summary of how stakeholders

have been and will be engaged and how the targeted populations have been identified.

Gender: The due diligence review also includes an assessment of any controversies

related to discrimination at work or social discrimination. This includes an explicit

assessment of the company’s commitment to gender equity and the review includes any

significant criticisms from local and global NGOs and media, local and global partners of

the UNDP, governmental agencies/political parties, as well as an assessment of any

legal cases or public demonstrations. If any major controversies are discovered and the

company does not appear to be addressing the issue, BCtA will follow UNDP’s policy to

discontinue engagement with the company. In addition, the proposed commitment will

be reviewed to ensure it is gender-responsive. Activities that discriminate against women

or girls or reinforce gender-based discrimination and/or inequalities will not be approved.

All applicants will be asked to provide a summary of how gender equality and women’s

empowerment are integrated in the proposed commitment

The BCtA also continues to systematically review news related to its member companies

throughout their membership term, and will evaluate any major controversies that arise

regarding human rights violations, gender-related controversies, or other relevant issues on a

case by case basis.

Reporting

BCtA also seeks to assess and highlight any positive and negative human rights gender equality

effects of inclusive business initiatives. This is assessed primarily through annual member results

reporting, which include sex disaggregated results. Companies are asked to voluntarily report to

the best of their ability the number of people due to their initiative that have achieved improved

incomes, and the number of people reporting improved capacity (split by demographic groups,

e.g., women, youth at their discretion). This information is in turn used to demonstrate the impact

that inclusive businesses may have on improving the lives and livelihoods of women and youth in

the developing world. Many BCtA companies report an improved impact on women through their

activities.

BCtA Advocacy and Programme Activities Advocate for Gender

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Business Call to Action (BCtA) continues to support the private sector and efforts to lead the way

for women’s economic empowerment. Working to help businesses become more inclusive and

maximize positive social impact through their business operations- the BCtA is working to promote

efforts that support businesses that continue to advance their empowerment of women as

entrepreneurs, producers, and consumers.

For instance, in 2013 and 2014, BCtA partnered with the U.S. Chamber of Commerce, Foundation

Business Civic Leadership Center, and the United Nations Office for Partnerships to sponsor the

International Women’s Day Forum at the UN headquarters in New York. Speakers for the 2014

from BCtA member companies included:

• Pierre Borjesson, Senior Sustainability Specialist at H &M

• Ashley Arbuckle, Marketing Director, L’OCCITANE

• Jessica Alderman, Director of Communications, Envirofit

• Ting Shih, CEO of Clickmedix

BCtA has included in its log-frame that it will sponsor this conference during the Commission on

the Status of Women for the next two years.

In addition, the BCtA collaborated with ChangeCorp – a mobile learning content company focused

on women to provide them with innovative tools to advance self-learning and empowerment.

Change Corps’ SmartWoman Project is its signature programme designed to enable women

around the world to connect, share and empower each other. BCtA co-sponsored the Change

Corps “Changing Lives through Mobile" conference at the UN on June 19th, a day-long event

designed to showcase innovations in mobile technology and companies working to pioneer mobile

products in new markets. The event featured BCtA member company Dimagi, as well as

numerous public and private sector organizations supporting and empowering women in the

mobile space.

BCtA companies regularly share their experiences in how their inclusive business initiatives seek

to impact the lives of women in poverty in international fora. BCtA also develops gender related

knowledge and other related content in its case studies, webinars (such as the 2013 webinar

“Investing in Women’s Economic Empowerment in Turkey and Globally”) and reports.

Further, BCtA has profiled the vital role of women in its website and as part of the Guardian

Sustainable Business hubsite. Recent posts are linked below:

UN Women's Phumzile Mlambo-Ngcuka on women's empowerment

Investing in Women’s Economic Empowerment in Turkey and Globally

Women’s Economic Empowerment: Inclusive Business is Leading The Way

Turning Inspiration into Action: Next Steps for the Private Sector to Empower Women

Globally

Women: The Forgotten Link between Business, Farmers, Food and Health

Women, Inclusive Business, and the Bumpy Road to Equality

Natura Cosmeticos Empowers Women in Mexico

Japan’s Unicharm Corporation to bring affordable hygiene products to 36 million low-

income women in Mideast, Asia

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Annex 5: Potential Partners and Collaborators for BCtA Phase III

Name of Organization

Short Description Collaboration Potential with BCtA and Dimensions of

Service Offering

Complementary IB Organizations

Global Compact

and

Global Compact Local Networks in Kenya, Bangladesh, Philippines, Colombia (and other potential countries)

Advocacy and Awareness Raising/Peer-to-Peer Learning and Knowledge Management: UN Global Compact aims to drive implementation and collaboration by businesses that advance sustainability on a massive scale, while continuing to promote corporate respect for universal principles. The Global Compact raises awareness on the 10 Global Compact Principles and works on consensus building on policies and practices. Through over 100 Global Compact Local Networks, companies are convening and acting on sustainability issues at the ground level. Networks serve an essential role in rooting global norms, issue platforms and campaigns within a national context, and provide an important base to jump-start action and awareness on the ground. The Global Compact supports and builds the capacity of such networks, and facilitates knowledge sharing among them.

Global Compact as part of the Partners of BCtA. Strong interest for collaboration both in terms of global advocacy around SDGs and inclusive business. Use of the Global Compact Local networks to raise awareness on BCtA and vice versa. Possibilities for Peer to Peer Learning and knowledge exchange on inclusive business through the Global Compact Local Networks.

GC’s local networks are uniquely positioned for BCtA partnership given their private sector reach and engagement.

The Aspen Network of Development Entrepreneurs (ANDE)

The Aspen Network of Development Entrepreneurs (ANDE) is a global network of organizations that propel entrepreneurship in emerging markets, supported by the Aspen Institute. ANDE develops initiatives to address systemic challenges and opportunities that can only be approached through collective action in the space of Inclusive Business. It offers impact analysis services and programs to support the organizations, such as the BCtA, operating in the space of sustainable business.

BCtA will aim to continue its knowledge-based partnership with ANDE across areas of metrics consultations, member capacity building for impact reporting, and other cross-sectoral areas of collaboration with its network of over 180 organizations in over 150 countries. BCtA has partnered with ANDE on sectoral event and report, Housing for the Base of the Pyramid (BoP) in Brazil, as well as on impact measurement webinar with participation from BCtA members.

Business Fights Poverty

Business Fights Poverty is the international network for professionals passionate about fighting world poverty through good business. The network connects the practitioners and experts around the world to form a global community of pioneers pushing the boundaries of how business can fight poverty. BFP members are corporate executives, social entrepreneurs, investors, donor agency staff, policy officials, non-government

BCtA will build on its engagement with the BFP considering specific partnership around BFP’s Challenge initiative where BCtA can significantly contribute with its case studies and member experience.

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organization staff, academics, students and many others who are just interested.

Global Commission on Business and Sustainable Development

Created by the former United Nations Deputy Secretary General Mark Malloch-Brown and Unilever CEO Paul Polman, The Global Commission on Business and Sustainable Development will work over the next year to articulate and quantify the compelling economic case for businesses to engage in achieving the Sustainable Development Goals (SDGs)

Could represent a valuable partner for co-hosting of events to increase uptake of IB, disseminate knowledge and share BCtA’s tools.

IBAN As a network, it creates synergies by linking its partners’ collective expertise, commitment and resources. Connects the dots between the different stakeholders from the global Inclusive Business community. Aim is to increase access of businesses to support mechanisms as well as local implementation structures of partners, investors and other initiatives and networks.

Could be a valuable partner for policy dialogue, knowledge and research as well as events and trainings.

The Practitioner Hub (Business Innovation Facility & Innovations Against Poverty)

Technical Assistance: Directly supports businesses with technical assistance, share materials and lessons from projects on the ground to provide practical knowledge of how to make inclusive business models work, focus on tracking the results of support to inclusive business, promotion of partnerships.

Peer-To-Peer Learning/ Knowledge Management: Co- Management of the Practitioners Hub, knowledge exchange platform for inclusive business practitioners and companies.

Build on the successful collaboration with the Practitioner Hub for raising awareness and visibility of IB.

Business For Development (B4D)

Business for Development (B4D) is an independent Australian based not-for-profit organisation that encourages and facilitates inclusive business activities that contribute to the Sustainable Development Goals. B4D is very active in Southeast Asia and the Pacific and works with leading MNCs in the region including Pepsi, Visa, Mondelez, Kellog in scaling up their inclusive business initiatives in countries like Myanmar and others. It also organizes capacity training programmes and mission tours for corporates interested in inclusive business.

BCtA will build on the success of previous partnership with B4D, one of the few non-profit in Asia focused exclusively on inclusive business, to raise awareness and mobilize IB commitments in Asia Pacific.

Better than Cash Alliance (BTCA)

The Better Than Cash Alliance is a partnership of governments, companies, and international organizations that accelerates the transition from cash to digital payments in order to reduce poverty and drive inclusive growth. Based at the UN, the Alliance has over 50 members, works closely with other global organizations, and is an implementing partner for the G20 Global Partnership for Financial Inclusion. The Alliance is

BTCA is a possible partner for knowledge production, including in research on how digital payment systems can facilitate the scale of IB.

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funded by the Bill & Melinda Gates Foundation, Citi Foundation, Ford Foundation, MasterCard, Omidyar Network, United States Agency for International Development, and Visa Inc. The United Nations Capital Development Fund serves as the secretariat.

SCALA/Inter-American Development Bank (IDB)

The Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, approved a US$5 million technical cooperation facility with the Citi Foundation to promote the economic empowerment of low income individuals through distribution networks based on micro franchising, SCALA Facility. The facility will support projects for innovative, scalable micro franchising models developed jointly by anchor companies with interest in commercializing their products and services in poor and low-income communities, microfinance institutions willing to provide financial alternatives that enable customers to rise out of poverty, and NGOs with extensive experience working in poverty alleviation.

Building on the successful partnership with IDB’s Opportunities for Majority initiative, BCtA will continue collaboration with SCALA on BoP’s economic empowerment.

SNV Netherlands

Inclusive Business Accelerator

BoPInc

SNV Netherlands Development Organization is a non-profit international development organization established in the Netherlands in 1965 which aims to alleviate poverty by enabling increased income and employment opportunities and increasing access to basic services. The organization currently works in 38 countries in Africa, Asia, and Latin America.

IB Accelerator a partnership between BoPInc, SNV and VC4Africa. Together these three organizations have a long track-record of supporting enterprises in developing countries. IBA facilitates the acceleration of impactful entrepreneurship in Base of the Pyramid (BoP) markets. It does so by building a structure that supports the delivery of substantial numbers of investment-ready inclusive business plans that improve the well-being of people at the BoP.

BCtA has successfully collaborated with SNV Netherlands, BoP Innovation Center and IBA in 2016 on country-level events in Zambia, Vietnam and Bangladesh.

BCtA has seen successful synergies between the organizations with SNV/IBA helping companies develop and mature their IB models which then can benefit from BCtA membership.

Going forward, BCtA will seek opportunities to partner with these organizations further on global as well as country-level further.

International Chamber of Commerce (ICC)

The International Chamber of Commerce (ICC; French: Chambre de commerce internationale (CCI)) is the largest, most representative business organization in the world. Its hundreds of thousands of member companies in over 180 countries have interests spanning every sector of private enterprise.

ICC can become a valuable BCtA partner given its position as the largest representative business organization critical for private sector advocacy especially for companies who do not have inclusive business initiatives (especially from developing countries). ICC has collaborated with BCtA on a number of global advocacy

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events and further advocacy can be undertaken at country level.

Corporate Standards and SDG/ impact measurement actors

Global Reporting Initiative (GRI)

GRI is an international independent standards organization that helps businesses, governments and other organizations understand and communicate their impacts on issues such as climate change, human rights and corruption. As of 2015, 7,500 organizations used GRI Guidelines for the sustainability reports. GRI Guidelines apply to multinational organizations, public agencies, smaller and medium enterprises, NGOs, industry groups and others.

As part of BCtA’s Impact work in 2016, we have successfully partnered with GRI, leading non-governmental organization on standards of sustainable reporting, on the report around emerging best practices of social impact. The report is a unique contribution to governments in their efforts to record private sector contribution towards SDGs.

Going forward, BCtA will consider opportunities to further the GRI partnership for global and country-level work on impact.

B Corporation B Corporation provides a framework and certification for companies wishing to benefit society as well as their shareholders. B Corp status--granted by B Lab, a Wayne, Pa., nonprofit--has become a badge of honor for more than 750 socially and environmentally conscious businesses since 2007. Some of the bigger names to nab the certification include Ben & Jerry's, Patagonia, Etsy, Warby Parker and New Belgium Brewing.

Given BCtA’s forward-looking focus on quality commitments, partnership with B Corp could be considered for synergies and expertise leverage in the area of commitment validation.

Global Impact Investing Network (GIIN)

Result and Impact Measurement: The Global Impact Investing Network (GIIN) is a non-profit organization dedicated to increasing the effectiveness of impact investing. The GIIN addresses systemic barriers to effective impact investing by building critical infrastructure and developing activities, education, and research that attract more investment capital to poverty alleviation and environmental solutions. IRIS is one of their key initiatives and comprises a set of metrics that can be used to measure & describe an organization's social, environmental, & financial performance.

Potential for collaboration on high level impact investment and inclusive business event of BCtA in September.

GIIN/IRIS would like to include inclusive business in a more specific way into their metric and are looking for feedback.

Leading business sustainability organizations

World Business Council on Sustainable Development (WBCSD)

World Business Council for Sustainable Development is a CEO-led, global association of some 200 international companies dealing exclusively with business and sustainable development. The membership has annual revenues of USD 7 trillion, spans more than 35

WBCSD should become a core partner of BCtA given its membership and its credibility as a leading sustainability business network and pioneer in the area of inclusive business

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countries and represents 20 major industrial sectors. The Council also benefits from a network of 60 national and regional business councils and partner organizations, a majority of which are based in developing countries. WBCSD coined the concept of inclusive business.

and collaborate with BCtA to secure commitments from leading MNCs, engage in peer-to-peer learning and results and impact measurement activities and policy advocacy at global and national level.

Specialized sustainability organizations

Leading organizations such as BSR, SustainAbility, FSG, whose mission is to work with corporations on sustainability issues and shared-value approaches

These organizations can be valuable partners for BCtA for the development/deployment of IB tools and trainings, research given their business networks and credibility on sustainability issues aligned with core business in the corporate world

Consulting Firms

Leading consulting firms such as Deloitte, Accenture, McKenzie, PWC have built Business Sustainability/ Social Impact Practices which are helping corporations drive behaviour and responsible business practices

These organizations can be valuable partners for BCtA for the development/deployment of IB tools and trainings, research given their business networks and credibility on sustainability issues aligned with core business in the corporate world

DFIs

DFIs The Asian Development Bank (ADB) is a regional development bank established in 1966 and headquartered in Manila, Philippines, to promote poverty reduction, social and economic development in Asia.

CDC: Founded in 1948, it is the UK’s Development Finance Institution (DFI) wholly owned by the UK Government. It is the world’s oldest DFI with a history of making successful investments in businesses which have become industry leaders thereby having enormous impact on the private sector in their country and region as well as improving the lives of many, many individuals.

IFC clients are currently using inclusive business models to provide direct benefits to the underserved population at the base of the pyramid, creating high development impact in financially sustainable and scalable ways.

FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 46 years. Its mission is to empower entrepreneurs to build a better world. FMO invests in sectors where contribution can have the highest long-term impact: financial institutions, energy and agribusiness.

Development Finance Institutions (DFIs) would be importantly BCtA partners going forward as the platform launches its Phase III with focus on quality commitments, and deployment of tools to improve IB performance.

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Finnfund is a Finnish development finance company that provides long-term risk capital for profitable investments in developing countries creating jobs and prosperity by financing private sector projects.

Swedfund is the Development Finance Institution of the Swedish state. Swedfund’s goal is to eliminate poverty by creating sustainable business in some of the world’s toughest and most promising growth markets.

Global Media

The Guardian Sustainable Business

The Guardian Sustainable Business is the global voice for cutting edge sustainability comment, debate and expert insight housed within The Guardian family, with 130 million unique browsers a month. Guardian Sustainable Business Hubs aggregate and digest the very latest thinking on key corporate sustainability themes. They draw on the collective thinking of the corporate sustainability community and feature in-depth comment, best practice and facilitated interaction. The Business Call to Action-supported Sustainable Business Hub on inclusive business and the SDGs features independently produced and curated content by the Guardian team, while the Partner Zone features BCtA content exclusively.

The partnership between Business Call to Action and the Guardian has allowed us to dig into the opportunities inclusive business provides and how these contribute to the achievement of the SDGs, bringing together diverse voices and actors across the globe to share stories, case studies and innovations. The Guardian's significant reach and ability to tell stories in interesting, thought-provoking way has helped spread this debate to an engaged audience. The BCtA-GSB Hub and Partner Zone have attracted since launch in 2014, over 750,000 unique visitors to over 250 BCtA and relevant independent articles.

BCtA should continue the partnership with the Guardian to serve as a platform for raising awareness and fostering an international community of practice around the topic of inclusive business and the SDGs; create access to a wide and relevant audience, beyond the practitioner community; drive new audiences to BCtA website; provide profile, opportunities for networking and learning exchanges for high-performing BCtA member companies and BCtA resource contributors.

3BL Media 3BL Media is the leading Corporate Social Responsibility (CSR) and sustainability news distribution and content marketing company. Viewership on 3BL Media is 13.4 million impressions monthly with 2.4 million unique visitors in over 200 countries, with distribution to over 270,000 subscribers, consisting of senior executives and C-Suites, CSR Professionals, Institutional Investors, Social Entrepreneurs, Journalists, and others. Through its partnership with 3BL, BCtA is able to promote its new member announcements, publications and other

BCtA should continue its partnership with 3BL to ensure our visibility through access to a global media distribution network.

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press releases at the global level with links to relevant local news outlets with 3BL’s extensive global network.

Local Networks/ Business Association

ANDI Colombia and ANDI Foundation

The Asociación Nacional de Empresarios de Colombia is a non-profit entity with the objective of disseminating and promoting those economic and social policies that ensure a proper functioning of free commerce -- based on human dignity, democracy, social justice, private property and liberty.

BCtA is considering ANDI and ANDI Foundation as possible partners for country level work in Colombia. ANDI has the most diversified membership of leading IB companies as well as excellent rapport and presence with key stakeholders in the country.

Business Initiative Leading Development (BUILD)

Business Initiative Leading Development (BUILD) was launched jointly by the Dhaka Chamber of Commerce and Industry (DCCI) in partnership with the Metropolitan Chamber of Commerce and Industry (MCCI) and Chittagong Chamber of Commerce and Industry (CCCI) in October 2011 as a Public Private Dialogue (PPD) platform to facilitate structured dialogues between the public and the private sectors under an institutional framework. BUILD is envisaged as the bridge that connects the public and private sector for better communication, coordination and collaboration in bringing reforms in business policies and procedures to improve the country's investment climate in Bangladesh. BUILD has been recognized as the primary source of recommendations for meetings of the PSDPCC, established at the Prime Minister’s Office (PMO).

BUILD's biggest impact and value add stems from the organization’s capacity to unite the government and private sector to work together to achieve the nation's development goals. It is the first successful platform in Bangladesh anchored in the private sector with reach to the government thus demonstrating continuity and stability.

BCtA shall consider partnership with BUID for any potential country-level work in Bangladesh

MVO MVO Nederland (CSR Netherlands) was founded in 2004 by the Dutch Ministry of Economic Affairs. The Stichting MVO Nederland is legally registered as a foundation based in Utrecht. MVO Nederland has evolved from a knowledge centre (primarily for small and medium-sized businesses) into a network organization and transition accelerator for the entire business community. In 2015, MVO started an initiative called SIB (Sustainable and Inclusive Business Center) in Kenya. The Kenyan initiative aims to advance sustainable and inclusive business practices in the country leveraging the experience and tools of MVO. The initiative has received seed funding from the Dutch Embassy in Nairobi, and is hosted currently at the Kenya Private Sector Alliance (KEPSA) Foundation. MVO has a memorandum of understanding with the Kenya Private Sector Alliance Foundation on the SIB initiative

Going forward, BCtA shall consider partnering with MVO for its country-level work in Kenya.

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Kenya Chamber of Commerce (KNCCI)

The Kenya National Chamber of Commerce and Industry (KNCCI) is a membership based trade support institution (TSI) working to protect commercial and industrial interests of Kenyan business community. KNCCI advocates for the creation of a favourable commercial, trade and investment environment that supports enterprise expansion. The membership of KNCCI constitutes small, micro enterprises (MSEs), medium and large enterprises.

Going forward, BCtA would consider partnering with KNCCI for its country-level work.

KEPSA – Kenya Private Sector Alliance and KEPSA Foundation – and the Sustainable and Inclusive Business Center Kenya (SIB), currently under the foundation

KEPSA is the private sector apex and umbrella body set up in 2003, to bring together business community in a single voice to engage and influence public policy for an enabling business environment. The Kenya Private Sector Alliance (KEPSA) is a limited liability membership organization. With current membership of over 100,000 direct and indirect members organised through Business Membership Organizations and Corporate members, KEPSA is a key player in championing the interests of the Kenyan business community in trade, investment and industrial relations. KEPSA’s Vision is to be a world class private sector apex body. The primary Mission is to ensure year- on- year improvement in the overall business environment for Kenya by working together with the Government and other stakeholders.

KEPSA has been UNDP Kenya’s longstanding partner on private sector engagement given its standing in the country.

Going forward, BCtA would consider partnering with KEPSA for its country-level work.

SME Foundation, Bangladesh

The SME Foundation, is a limited company licensed by the Ministry of Commerce as a not for profit organization established by the Government of Bangladesh under Ministry of Industries as an apex institution for SME development in the country. The major activities of SME Foundation are implementation of SME Policy Strategies, policy advocacy and intervention for the growth of SMEs, facilitating financial supports for SMEs, providing skill development and capacity building training, facilitating adaptation with appropriate technologies and access to ICT, providing business support services, etc. It is mentionable here that the Foundation is working for the development of enterprises and entrepreneurs who belong to micro, small and medium categories as per Industrial Policy 2010.

Going forward, BCtA shall consider partnering with SMEF for its potential country-level engagement in Bangladesh.

Philippines Business for Social Progress (PBSP)

Country Level Activities: Institute for Social Progress (business organization), supporting inclusive business in the Philippines. Closely working with the government that promotes an inclusive growth strategy.

PBSP is BCtA’s existing partner on the Philippines country-level work, will continue collaboration going forward.

Philippine Business for

PBE is an environmental non-profit organization established in 1992 with the mission to help Philippine industry address its environmental

PBE is collaborating with government and private sector on the national platform for PS

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Environment (PBE)

concerns and responsibilities. PBE represents Philippine industry in the World Business Council for Sustainable Development and is the partner of choice of the government and of several international organizations for the implementation of environmental programs in the Philippines.

contribution to SDGs. BCtA and UNDP CO should consider leveraging our impact work in partnership with PBE.

Dhaka Chamber of Commerce & Industry (DCCI)

Dhaka Chamber of Commerce & Industry (DCCI), established in 1958 under companies Act 1913 is the largest and most vibrant business chamber in Bangladesh. Its membership consists of industrial conglomerates, manufacturers, importers, exporters and traders mostly of small and medium enterprises (SMEs). The main objectives of DCCI are to promote private sector enterprises and businesses with advocacy, awareness and policy inputs to government.

BCtA shall consider partnership with DCCI for any potential country-level work in Bangladesh

Annex 6: Overview of BCtA Selection and Due Diligence Process

BCtA Risk Assessment process fully adheres to the UNDP Policy on Due Diligence and Partnerships with the Private Sector (2013, and subsequent updates)

Applicable Policies include:

• POPP guide on assessing partnerships provides guidance on scoping businesses to engage with.

• UNDP Policy on Due Diligence and Partnerships with the Private Sector (2013, and subsequent updates) is a mandatory risk assessment policy, fully utilized by BCtA in its due diligence process.

• Partner policies on private sector engagement.

Applicable Tools include:

• UNDP Private Sector Risk Assessment Tool (RAT) (2016, and subsequent updates): is completed for each individual BCtA member company and those pipeline companies that meet the BCtA membership criteria and are interested in applying.

• UNDP Private Sector Risk Assessment Tool Guidelines (2016, and subsequent updates): provide step-by-step guidance to complete RAT profiles.

BCtA Risk Assessment and selection process is a two-tier approach:

- Phase I includes company due diligence

- Phase II focuses on commitment assessment – that leads to a consultative decision on the private sector engagement based on risk benefit analysis

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Prior to any conversations with companies about BCtA membership, the BCtA Secretariat

outreach team conducts a due diligence/risk screening review of all potential pipeline companies

and/or applicants. The first screening is carried out against UNDP exclusionary criteria as early

as possible in the outreach process. Provided none of the exclusionary criteria apply to the private

sector entity and the initial outreach indicates mutual interest to engage further, full due diligence

is undertaken. The full due diligence and risk assessment process for the BCtA consists of the

following steps:

Gathering and documenting general information about the company (sector(s) and

geography of operations, ownership structure, etc.);

Screening of the company, its holding entity and/or subsidiaries against UNDP

exclusionary criteria;

Research and documentation of all potential controversies and reputational risks;

Assessing the company’s commitment to environmental, social, governance and

management standards and practices;

Analyzing risks and benefits of the company’s potential membership in the Business Call

to Action, suggesting a decision on engagement, and identifying conditions for

membership (if the decision for engagement is positive);

Developing risk monitoring and management plan

BCtA’s due diligence and risk assessment process fully complies with the UNDP Policy for Due

Diligence and Partnerships with the Private Sector and Partner/Donor policies for private sector

engagement and utilizes UNDP’s Private Sector Risk Assessment Tool, UNDP Private Sector

Risk Assessment Tool Guideline, and other relevant and current UNDP tools. BCtA’s due

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diligence and risk assessment process ensures that it identifies, manage and mitigates any

potential reputational risks and relationships by engaging companies that adhere to ESG

principles.

PHASE II: IB Commitment Assessment to determine recommendation or not for membership

Business Call to Action (BCtA) Eligibility Criteria

BCtA seeks to provide recognition and visibility to quality inclusive business initiatives from companies that

meet the minimum requirements for membership and demonstrate commitment to sustainable business

practices.

BCtA Secretariat assesses both the company’s overall environmental, social, governance (ESG) and

industry performance as well as the quality of its inclusive business commitment as it relates to the potential

for commercial success, impact on the Sustainable Development Goals (SDGs) and benefits for the base

of the economic pyramid (BOP) populations.

BCtA’s Eligibility Criteria is described below and publicly available on the BCtA website:

1. The company demonstrates strong commitment to sustainable business practices, especially related to gender equity, human rights, labor, community well-being, environment, and good governance & management.

o Companies are expected to provide reference and/or supporting evidence of their adherence to environmental, social and governance (ESG) principles in their overall operations, and of the systems and processes they have in place to ensure and monitor this adherence, including for instance:

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Adhere to international standards and principles such as the UN Guiding Principles on Business and Human Rights, the ILO conventions or OECD guidelines for MNCs.

Reporting or impact measurement frameworks used; Internal policies, monitoring systems and Codes of Conduct; External sustainability certifications, awards and recognitions, participation in

national/regional/sector initiatives, listing in Environmental Social and Governance (ESG) indices.

o Specifically, companies will need to detail in their application how these ESG practices are used to ensure the well-being, fair treatment, participation, and positive impact of the BoP communities and individuals it works with.

2. The inclusive business initiative the company applies with demonstrates the potential to create both financial returns for the company and economic and social returns for low-income communities in developing countries.

o To meet the requirement for financial returns, an initiative should: Engage the core competencies of a company and be a sustainable part of its

business, as opposed to being driven by philanthropic or social investment goals; Have potential to be further scalable and replicable within a given market or

across new markets; and Contribute to achieving a company’s commercial targets such as increased

revenue, access to new markets, improved quality of supply chains or an increased customer base.

o To meet the requirement for economic and social returns, an initiative should: Responsibly integrate underserved populations into the company’s value chain

as suppliers, producers, retailers, distributors, employees, stakeholders or a combination thereof, or provide appropriate and affordable products or services to low-income consumers;

Contribute to the Sustainable Development Goals (SDGs); and Be located in one or more developing countries.

3. The Inclusive business commitment the company applies with represents a new approach to doing business for the company, enabling it to access and serve markets in ways that were not previously possible.

o The initiative should not constitute a long-standing, mainstream business activity for the company without any added value or innovation.

o It may be a scale-up or an expansion of existing business model; break-through to new markets and geographies; innovative component to the model that increases benefits to BOP communities; or new partnerships among companies and institutions.

4. The inclusive business commitment is able to generate measurable results. o Application clearly identifies where an initiative will be implemented, provides quantitative

and qualitative targets for the expected business and development outcomes, and defines a timeline for reaching these targets.

o Once a company is accepted as BCtA member, it will be required to submit annual updates on the initiative’s progress against business and development indicators, identified in the original application.

5. Financing for the initiative is in place. o BCtA does not provide funding for member companies to implement their initiatives. o A company must demonstrate that financing is secured for at least the initial part of a

proposed initiative and there is a financing strategy for the entire duration of the initiative. o While initial funding for pilots can come from donor organizations or foundations,

companies must be able to present a plan for creating a sustainable business model that does not rely on long-term grant funding.

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Annex 7: Confidentiality of Applications and Member Results

BCtA’s application and results reporting framework requests a deep level of detail about corporate strategic plans and business development prospects. Due to the level of sensitive and competitive information contained in applications, BCtA commits to keep the content of applications confidential, accessible only to the BCtA Secretariat, BCtA partners and the company (the title and headline objectives of the initiative may be shared publicly). The same confidentiality applies to the annual results reports submitted by member companies.

Many country governments (including several BCtA donor governments) have instituted public Freedom of Information Acts, by which a member of the public can formally request any document that is emailed to a public official. In order to protect the confidentiality of BCtA applicants, the UNDP's legal department advised BCtA to require all reviewers to sign a non-disclosure agreement to access these documents. The following non-disclosure agreement was developed for those reviewers who wish to view entire applications as submitted by prospective member companies:

********************** Non-disclosure agreement for Business Call to Action Application Reviewers

As a condition to viewing the applications of applicant companies to the Business Call to Action (each as “applicant company”), I agree that I will not disclose any information contained in or supporting such applications to any individual person, natural or juridical, or any government authority. I recognize that applicant companies are asked to divulge information in their application that may be considered proprietary, confidential or sensitive, and as such should be kept confidential, including information related to their business plans, marketing strategies, financial information, sales estimates, operations, and projected performance results. I therefore agree to use Business Call to Action applications viewed further to this agreement solely in connection with the review and analysis of the applicant companies’ initiative proposals, and not for any other purpose without the prior written consent of an authorized representative of the applicant company.

This Agreement shall automatically terminate if the proposals or the information contained therein becomes generally available to the public other than as a result of an unauthorized disclosure by myself, or if the applicant company consents to release the information.

_____________By providing your signature on this line you agree to the above.

_____________Date

**********************

For those Partners who do not wish to sign the NDA to review full applications, the BCtA Secretariat disseminates an application summary for review, which includes a summary of the company's work and publicly available information on the proposed initiative, along with statements that indicate that the application passes the eligibility criteria for BCtA membership. The application summary also flags any issues arising from the Secretariat’s due diligence review. Partners have the opportunity to raise any concerns with these applicants; otherwise they are accepted into the membership.

The Application Summary template is as follows:

BCtA Applicant Summary: Name of applicant company Date: Date of submission

Submitted by: Member of BCtA Secretariat presenting the application

Summary of applicant’s eligibility and value for BCtA membership

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COMPANY BACKGROUND

Company name: TBD

Company Sector:

Country of Headquarters:

Size of company: # of employees

Company background:

Brief description of the company

PROPOSED BUSINESS CALL TO ACTION INITIATIVE

Name of Initiative: Name of initiative selected by applicant

Type of Initiative: Goods & Services / Supply Chain

Market/Region: Listed

Phase of Initiative: Pilot/Roll out/Scale up

Sustainable Development Goals:

Headline Objectives:

o List of the application’s headline objectives

Description of the BCtA initiative:

The application summary shares any information that is already public about the initiative in this space.

Some initiatives are so new that there is little public information available, while others will have more

content to share.

What experience, learning, and value will the applicant bring to BCtA membership? (ex. How will

the applicant supplement the existing membership in the given sector/geography)

This section includes a brief description of how the applicant will supplement BCtA’s membership

portfolio in its sector/geography, including the addition of innovative business models, partnership

opportunities, and resources for development. A brief description, if known, of how members plan

to be involved with BCTA, and how they might champion the programme going forward.

Risk Assessment (ex. Any known reputational risks associated with accepting the applicant into

BCtA membership?)

This section includes a brief summary of the risk assessment performed for the company (full details of

which can accessed by application reviewers upon request) and a review of the proposed commitments.

The following information is shared:

Do any of the UN/UNDP exclusionary criteria apply to [applicant company]? YES/NO: Description

UN Global Compact membership: YES/NO

Certifications: List any known ESG related certifications that the company holds

Sustainalytics Report Summary: Sustainalytics ranks the company [rank listed] against its peer

companies, and lists no significant controversies

Public Controversy: list of any controversies found/no significant controversies identified

Social and environmental impacts: does the proposed initiative integrate principles of human

rights, gender equality and environmental sustainability? Have potential social and environmental

impacts and management measures related to the proposed initiative been identified?

BCtA company engagement

This section documents any services that BCtA was able to provide to the applicant, e.g. providing

guidance and assisting the company to develop its commitment, or helping the company to establish

new linkages to expand the scope of its commitment.

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Annex 8: BUSINESS CALL TO ACTION - Members Code of Conduct

DRAFT VS. 1

1. Introduction

This Members Code of Conduct (CoC) outlines the minimum standards that Business Call to Action

expects its member companies to comply with (in their overall operations, and particularly in their

inclusive business initiatives), when joining the BCtA platform in addition to observing all laws and

regulations governing their activities.

2. Management System

Member companies shall have appropriate management systems in place to enable adherence to this

CoC or its own equivalent code of conduct, whichever is stricter, as well as all other relevant and

applicable laws and regulations. The functioning and quality of the management system shall be in

proportion to the size, complexity and risk environment of the company’s business. Companies shall

have in place a systematic approach to the assessment, mitigation and management of risks related to

human and labour rights, occupational health and safety, social, environmental and governance issues

(hereafter referred to as ESG issues) across its operations and supply chain.

3. Human and labour rights

Member companies shall:

- Respect human rights and not be complicit in human rights violations within their sphere of

influence.

- Have in place adequate remedial mechanisms in case of any human rights violations.

- Not employ any workers below 15 years or the minimum age according to national legislation,

whichever is higher (in line with the ILO Convention 138 on child labour)

- Ensure that employing young people above minimum age but under 18 years does not jeopardize

their education, health, safety or morals

- Fully recognize employees’ right to organize, belong to a union and bargain collectively

- Not use any forms of involuntary labour

- Not discriminate against any worker

- Treat all employees fairly and respectfully

- Pay employees at least the minimum wage and applicable overtime wages defined by national

laws or any applicable collective agreements

- Apply normal working hours that comply with applicable law and collective agreements

- Provide all employees with at least one rest day in seven consecutive working days unless

regulated otherwise by applicable laws

- Fulfil all applicable legal occupational health and safety (OHS) requirements

4. Environmental impact

Member companies shall:

- Respect and protect the environment

- Fulfil all environmental requirements defined in relevant laws, regulations and environmental

permits

- Have in place mitigation and management systems to address environmental issues within the

company, identifying and adopting suitable preventive and corrective measures to protect the

environment

5. Governance

Member companies shall:

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- Conduct business in full compliance with all applicable antitrust and fair competition laws

- Act in compliance with all applicable anti-corruption laws, by, among other things, refusing to

receive or offer bribes, facilitation payments or anything of value for the purpose of obtaining or

retaining business or any improper benefit or advantage

- Act in compliance with all rules and regulations related to the safety and quality requirements of

products and services

- Transparently and accurately record and disclose details of its business activities, corporate

structure,

- Financial situation and performance in accordance with applicable laws and regulations.

6. Enforcement

If BCtA finds that member companies do not meet the requirements and expectations set out in this CoC, BCtA will offer guidance specifying which issues need to be corrected or improved, and/or terminate the company’s membership in BCtA’s platform.

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Annex 9: Key Definitions for BCtA This section outlines the definitions agreed upon by all of BCtA’s existing Partners, which forms the basis for a joint understanding of inclusive business concepts between BCtA partners. Definitions include: 1) Definition for the “poor”, and “base of the pyramid market” 2) Definition of “Inclusive Business”:

a. How inclusive business ‘includes’ the poor b. Range in size and legal form of inclusive businesses c. Profitability profile of inclusive business d. Cross-subsidization and “whole pyramid” business models

3) The role of government in inclusive business ********************

1) Definition for the “poor”, “low-income,” and “base of the pyramid”

BCtA seeks to support companies that are developing inclusive business models in a variety of socio-economic environments. BCtA recognizes that official calculations of poverty vary widely between countries and development organizations, and that poverty is a multi-dimensional problem, where income is only one indicator of the overall wellbeing of the poor. However, in order to establish a basic guideline for the population that BCtA seeks to target through member initiatives, the programme recognizes the World Bank/G20 definition of “the base of the pyramid (BOP) are those that live on less than $8 per day in purchasing power parity (PPP) or lack access to basic goods, services, and income generation opportunities. Using a threshold of $8 per day (PPP), there are an estimated 4 billion people living at the base of the pyramid .”17 and “encompassing 3 billion people spending less than $3 a day.”18 The BCtA takes into account also regional and country level definitions of the base of the economic pyramid including the Asian Development Bank for Asia as those living below the $3-$4 poverty line.19

2) Definition of “Inclusive Business”

a. How inclusive business ‘includes’ the poor

Inclusive business has been defined in slightly different ways by different relevant actors working in the field, and definitions have evolved over time. While definitions differ in terminology, they are congruent in content. They all agree that, in order to be considered inclusive, a business must:

• Be commercially viable (without stating whether profits have to be made or how they should be used)

• Include low-income people in different capacities along the value chain, as producers, entrepreneurs and consumers. Not all definitions mention employment as a form of inclusion.

• Result in tangible benefits to low-income people

For BCtA, UNDP’s definition for inclusive business is the most relevant and comprehensive for membership:

“Inclusive business models include the poor on the demand side as clients and customers, and on the supply side as employees, producers and business owners at various points in the value chain. They build bridges between business and the poor for mutual benefit. The benefits from inclusive business models go beyond immediate profits and higher incomes. For business they include driving innovations, building markets and strengthening supply chains. And for the poor they include higher productivity, sustainable earnings and greater empowerment.

17 http://www.g20challenge.com/faqs/ 18 http://www.ifc.org/wps/wcm/connect/a92b7f0043e733e1a906b9869243d457/IFC_IncluBus_Brochure_May_6.pdf?MOD=AJPERES 19http://www.adb.org/themes/poverty/inclusive-business-base-pyramid

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The businesses that create and use these innovative models range from multinational corporations to large domestic companies, co-operatives, small and medium-sized enterprises, or even not-for-profit organizations that use business principles—or social business approaches—to achieve their mission.” 20

b. Range in size and legal form of inclusive businesses

Inclusive business case studies ranging from organizations such as the World Business Council for Sustainable Development, the G20 Challenge for Inclusive Business or the Asian Development Bank show a tremendous variety of forms of inclusive business models. A Monitor study that analyzed a total of 439 initiatives across Africa found that 33% of all inclusive business are MSMEs, 33% are NGOs, 15% are National Corporations and only 6% Multinational companies. The analysis undertaken in the Africa’s Hidden Wealth support comes to a similar conclusion, 49% of the 400 initiatives analyzed are MSMEs, 14% CSOs and 16% National Corporations.

Given BCtA’s focus on the support of innovative business models that generate profit while creating development impact, all forms of institutions, whether state-owned, nonprofit, small and medium enterprise or multinationals will be considered for membership.

For non-traditional inclusive business models such as nonprofits with earned income strategies, it is recommended that only IB models that base their operations on business principles, run activities in a commercially viable way, have a high level of scale and a proven track record be considered for membership, on a case by case basis.

c. Profitability profile for inclusive businesses

While there is a general consensus among researchers and support organizations that Inclusive Business models need to be commercially viable, definitions for commercial viability differ greatly depending on different organizations. Generally, it is accepted that a blend of patient funding, innovative financing such as use of carbon credits, as well as government and donor support are realities in supporting a wide range of inclusive businesses.

BCtA accepts financial viability criteria for IB as defined by Monitor Group in its seminal reports on inclusive markets in India and Africa: Revenues from inclusive business ventures should cover operating costs, or should be on a clear path to do so, and ideally should also cover fixed costs. Furthermore, non-viable models (those that rely on long-term grant funding or subsidies, for instance) should be considered if they are the best available option for supplying a certain service, in comparison to other options. 21

d. Cross-subsidization and “whole pyramid” business models

Inclusive business models need not be solely focused on low-income populations. In its recent report on “Accelerating Business Opportunity” the IFC states that business opportunities that are inclusive and exclusively target the BoP are the exception rather than the norm. The IFC recognizes that the majority of inclusive business models are “whole pyramid” models that enable companies to leverage infrastructure, to achieve economies of scale, and to cross- subsidize the cost of products and services across a wide income range of clients- all with the objective to offer low- income consumers affordable prices. IFC proposes that the whole pyramid approach can help firms to diversify and to manage the risks of servicing a low-income market. 22 The Asian Development Bank accepts those companies as inclusive business when at least 50% of their activities address a population that is living with less than 3$ per day.23

20 UNDP; The MDGs: Everyone’s Business; 2010 21 Monitor Group; Promise and Progress- Market Based Solutions to Poverty in Africa, 2011; Jenkins, B; Ishikawa, E; Geaneotes, A; Baptista, P; and Masuoka, T. Accelerating Inclusive Business Opportunities: Business Models that Make a Difference. 2011 22 Jenkins, B; Ishikawa, E; Geaneotes, A; Baptista, P; and Masuoka, T. Accelerating Inclusive Business Opportunities: Business Models that Make a Difference. 2011 23 Asian Development Bank; Impact Investing for Inclusive Business in Asia, Conceptual Framework for the Manila Forum 2012

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Given this background, BCtA accepts initiatives that include cross-subsidization and whole-pyramid business models on a case by case basis.

******************** 3) The role of government in inclusive business Due to the challenges in market segments addressing the poor, even commercial successful initiatives often have some soft funding or support, either from governments or donors, along the way. This can include grants, low interest loans or technical assistance, to for example cover the high cost of access for last mile infrastructure. However, Business to Government models are especially relevant in highly regulated sectors, such as the health sector or education. In the absence of basic public goods and services like ambulance services and the need to scale and provide services to the poorest, government tenders can help scale up such models and ensure access for the poor. Governments can offer assistance to inclusive businesses through offering supporting instruments such as grants, low-interest loans, and technical assistance. They can create market enabling instruments such as subsidies and tax incentives. Or they can utilize their procurement capacity to act as an anchor buyer from companies that are inclusive. As Acumen Fund reflects, “Governments rarely invent solutions, but they can scale what works.”24

24 Acumen Fund, retrieved on April 30th, 2013

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Annex 11: BCtA Member Companies – Overview

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Annex 12: Business Call to Action - Member Policy The Business Call to Action (BCtA) seeks to provide recognition and visibility to quality inclusive business initiatives from companies that meet the requirements for membership and demonstrate commitment to sustainable business practices. Companies become members of the BCtA through their inclusive business commitments. This policy defines the terms, benefits and tenure of BCtA membership. 1. Membership Eligibility To determine membership eligibility, the BCtA Secretariat assesses both the company’s overall environmental, social, governance (ESG) and industry performance as well as the quality of its inclusive business commitment as it relates to the potential for commercial success, impact on the Sustainable Development Goals (SDGs) and benefits for the base of the economic pyramid (BOP) populations. BCtA eligibility criteria is available on BCtA’s website and establishes the minimum requirements applicants are expected to comply with to become members of the platform (Annex 6: BCtA Eligibility Criteria). 2. Membership Application and Approval Process Companies apply for the BCtA membership with an inclusive business commitment. The applications can be submitted through BCtA’s webpage. After receiving an application, the BCtA Secretariat reviews it and, if need be, provides comments and guidance to the applicant to add further information and specify their commitment (Annex 14). The process to determine eligibility and approve BCtA membership, entails three key steps, described below. i. Due Diligence and Risk Assessment of the Applicant Company The BCtA Secretariat assesses applicants’ commitment to responsible business practices against UNDP's Social and Environmental Standards through a risk assessment process that fully adheres to the UNDP Policy on Due Diligence and Partnerships with the Private Sector (2013). The assessment first establishes if UNDP’s exclusionary criteria apply to the applicant. Next, the assessment is made of the company’s commitment to and performance against social, environmental, governance and management standards and practices, (Annex 6: Overview of BCtA Selection and Due Diligence Process). Additionally, the applicant company needs to demonstrate it is committed to and meets the minimum requirements for responsible business practices, as described in the BCtA Code of Conduct (Annex 8), in both their overall operations and in regards to their inclusive business initiatives.

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ii. The Eligibility of the Company’s Inclusive Business Commitment BCtA membership is granted based on a company’s inclusive business commitment, which is measurable, public and describes how the company will contribute to the Sustainable Development Goals (SDGs) through an inclusive business approach. The inclusive business commitment and model the company applies with needs to meet minimum criteria established by the BCtA, including requirements for potential for financial returns, innovativeness, scalability and ability to demonstrate measurable impacts. iii. Donor Steering Committee Review and Approval of the Application The Donor Steering Committee (consisting of donor governments and UNDP) is the primary governing body of BCtA, providing strategic oversight for the Alliance and its Secretariat, including approving the project document, the annual work-plans and donor coordination on guidance on use of funds, financial reporting, funding mobilization and evaluation, and approval of new commitments. If a company and its commitment are found to be eligible for BCtA membership, the application is sent by the Secretariat for approval to the BCtA Steering Committee. The following steps are followed to seek approval of new commitments from the Donor Steering Committee:

i. The BCtA Secretariat sends an Application Summary for review, which includes a summary of the company's work and publicly available information on the proposed initiative, along with statements that indicate that the application passes the eligibility criteria for BCtA membership. The application summary also flags any issues arising from the Secretariat’s due diligence review. The full application and UNDP’s due diligence information are provided if DSC members request them and sign a non-disclosure agreement.

ii. Partners are given 7 working days to review and raise any concerns with these applicants and their commitment applications, or to request additional information from the Secretariat.

iii. If no objections are raised within the 7 working days, or additional time if requested by any donor, the BCtA Secretariat proceeds with approval of the application; and BCtA membership is granted to the applicant companies.

Generally, companies apply for the membership with one commitment, but in specific cases, such as in the case of separate subsidiaries with different models and operating regions, BCtA can consider approving two commitments from one corporate. BCtA’s members and information on their commitments is publicly available on the BCtA website. 3. Membership Benefits BCtA members benefit from:

Recognition and Visibility: as BCtA members, companies gain access to a leading global platform of companies - all working on quality inclusive business. BCtA members gain global visibility and recognition for member inclusive business commitments through events, publications and through being featured in relevant media. Capacity Building: BCtA supports companies in the measurement of operational and social performance of inclusive business initiatives, as well as identification and collection of social impact data that will improve the inclusive business initiatives and contribution to the SDGs. In addition, BCtA offers tools, guidance and trainings to companies on how to advance along the inclusive business maturity journey.

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Knowledge and Advocacy: Companies participate and benefit from knowledge development and peer sharing opportunities through in-depth assessments of inclusive business models; workshops, webinars and partnerships. BCtA collects, aggregates and uses knowledge to inform and facilitate public policy dialogue

4. Membership Tenure Once a company becomes a member of BCtA through its inclusive business commitment; each new member receives an official welcome letter from BCtA Secretariat confirming the commitment and outlining engagement opportunities. The membership is then publicly announced through a press release and information on the member and their commitment is added to the BCtA website. BCtA categorises its members as follows:

i. Members with Active Commitments Members whose commitments are actively being implemented and timelines have not yet been reached. These members are expected to provide yearly reporting on their commitment and enjoy full membership benefits. Their commitment status will be shown in BCtA’s website as “Active Commitment”.

ii. Members with Inactive Commitments

Members whose commitment timelines have not yet been reached, but who are unresponsive and fail to report or demonstrate that their commitment is being actively implemented for two consecutive years. Their membership status will be changed to “Inactive Commitment”. These can become Active Members again, if the company provides progress on its commitment before it expires.

iii. Members with Concluded Commitments/ Alumnae Members

Alumnae members include companies whose commitments have reached their set timelines as well as a very small number of companies that discontinued their commitments before completion. Reasons for this may include mergers & acquisitions of companies; or failed initiatives.

Alumnae members who have completed their commitments may continue to enjoy full membership benefits. Their experiences are valuable to share within the membership and publicly, and their commitment will be shown at the BCtA website labelled as “Concluded Commitment” or upon agreement with the company “Discontinued Commitment”. For discontinued initiatives, BCtA and the company can also agree to remove information about the company and its initiative from the website.

BCtA conducts ongoing media monitoring of relevant sector developments and members’ performance as it relates to their inclusive business commitment as well as labour, community, environmental, governance, product and management issues and periodically updates risk assessment profiles of the members with active commitments as per the UNDP policies. Alumnae members are encouraged to make new commitments showing how their models have evolved and/or scaled. If and when companies make new eligible commitments and pass the risk assessment process they will again be shown as active members with active and completed commitments. Both the company’s previous and new commitments will be shown at the BCtA webpage unless otherwise agreed. 5. Revision of Company Commitments

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BCtA acknowledges that along the years of implementing their commitments, companies might need to revise their objectives, timelines or indicators, or in some cases may need to make significant changes to their business models. Changes to the commitments can be discussed with the Secretariat considering the original eligibility criteria, and if the revised commitment and model meet the eligibility criteria, the changes to the original commitment can be reflected on the company’s member page, and the membership continued. In some cases, the business models might change to the extent that the company might agree with BCtA Secretariat to discontinue the original commitment, and submit a new application that will go through steps ii. and iii. of the selection process described in Section 2 of this document. 6. Termination of Membership BCtA membership can be terminated in the following cases:

i. The company seizes to exist If a company with an active commitment seizes to exist, e.g. due to closure of business or a merger, BCtA membership will be terminated. BCtA will discuss with the company whether the commitment will be discontinued (e.g. in the case of closure of business) or not (e.g. merger) under the new entity.

o If the commitment is discontinued, upon agreement with the company information on the commitment can be stored on the BCtA web site, indicating the commitment status. o If the commitment is continued under the new entity and if the entity is otherwise eligible to become a member, it can apply for membership with the same initiative.

ii. The company’s commitment is discontinued less than two years after it was made

If a company’s commitment is discontinued less than two years after it was made, the company’s membership will be cancelled. Upon agreement with the company it will be shown as “Discontinued” on the BCtA website or removed.

iii. The company has an Inactive status for three consecutive years If a company remains unresponsive for one more year after its membership status becomes “Inactive Commitment” the membership will be terminated, and the company will be de-listed from BCtA’s website.

iv. The company is de-listed based on the evidence of misconduct If the ongoing monitoring process implicates the company in controversies or allegations of violation related to human rights, labour, environmental, governance, regulatory, community or management issues, BCtA Secretariat will examine the nature of the controversies, evidence of misconduct (if any), and company’s response to address the controversies through the new risk assessment process. The company will be given opportunity to respond to the controversies. All findings will be recorded in the new risk assessment profile. If BCtA finds both the evidence and the company’s actions to address the issues short of BCtA membership standards, the membership will be terminated and the company will be de-listed. In other instances, remediation/action plan may be agreed upon with the company to address the controversial issues and improve respective ESG practices. The Secretariat will inform BCtA’s Donor Steering Committee (DSC) on its suggested course of action, offering the opportunity to comment or object within 7 working days. If no objections or comments are raised, BCtA will inform the member company. If objections are raised, the DSC will discuss and agree by consensus on next steps.

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v. The company does not wish to stay as a member If a company formally informs BCtA that it does not wish to stay as a member, membership will be terminated and the company will be removed from the website.

7. Resolution of Complaints or Concerns on Misconduct

To maintain the integrity and value of BCtA’s initiative, BCtA: - Regularly conducts media monitoring of its member companies to identify any relevant controversies - Updates its due diligence and risk assessment of companies with active commitments - Has in place a Complaints Mechanism, which allows stakeholders to raise concerns and complaints

regarding potential misconduct or misrepresentation of the commitments made by companies (Please see Annex 13: Complaints Procedure).

If through any of the above three mechanisms, BCtA discovers credible evidence that places the member under UNDP’s exclusionary criteria and/or evidence on systematic practices that showcase lack of commitment to responsible business practices from part of the company and breach of the BCtA Code of Conduct, the following process will be initiated to determine the company’s membership status:

a) The BCtA Secretariat undertakes a new risk assessment process on the company, contacting the

company to gather information related to the case in question and seek the company’s response; b) The BCtA Secretariat may, on a case by case basis and as a precautionary measure, recommend to

suspend the membership until the new assessment takes place c) Based on the results of the updated risk assessment, BCtA may recommend any of the following three

courses of action: o Membership is revoked o Membership is maintained with specific remedies required to retain membership o Membership is upheld

The Secretariat will inform BCtA’s Donor Steering Committee (DSC) on its suggested course of action, offering the opportunity to comment or object within 7 working days. If no objections or comments are raised, BCtA will inform the member company. If objections are raised, the DSC will discuss and agree by consensus on next steps to finalize case.

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Annex 13: Business Call to Action - Complaints Mechanism Name: Complaints Mechanism Accessibility: available on website; welcoming inquiries, concerns, complaints send to a

specific email address Objective: to provide a timely, consistent, structured, and trusted procedure for receiving

and addressing stakeholders’ concerns and complaints regarding potential misconduct potential misconduct or misrepresentation of the commitments made by companies to BCtA.

Scope: the scope of the mechanism will focus on concerns involving the member inclusive business commitments.

Case Registry: Would not be made available online. BCtA’s annual report will disclose the number of cases, the outcome of those cases, and key learnings (if applicable).

Complaints Processing Process 1. Receive question, concern or complaint via online form 2. Acknowledge receipt of the complaint within 3 days 3. Assess if complaint is within scope* 4. Examine the complaint to understand what happened, and what can be done.

Provide the company an opportunity to respond to the complaint Understand what measures have been taken by complainant and company to

directly resolve issue Update the company’s risk assessment

5. Develop resolution and present it to the complainant, possible solutions could include: Encourage direct resolution with company if applicable BCtA decides on the company’s membership. Possible options include:

o Membership is revoked o Membership is maintained with specific remedies required to retain

membership o Membership is upheld

6. Monitor and close the complaint for a reasonable period to make sure the complainant does not express additional concerns and then closed

7. The BCtA Secretariat will maintain the DSC updated on complaints received through this mechanism

*If a complaint made to BCtA, is out of scope, but raises controversies around misconduct by the company, the BCtA Secretariat will proceed to update the company’s risk assessment and present to DSC for reconsideration membership status, as per the membership policy.

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Annex 14: BCtA - Company Application Template Application Form The BCtA application aims to capture the goals, measures of success, and key features of your company’s inclusive business, as well as the potential roadblocks or challenges the company might face in the course of doing business. It provides both the basis on which the company is approved to join the BCtA, as well as a record of the original objectives set for the inclusive business model. It is these objectives against which your company will report an annual basis during the term of membership. The application provides questions to help guide the description of the company’s commitment and inclusive business model. We encourage you to be as descriptive and informative as possible to provide the BCtA Secretariat a comprehensive understanding of your company’s commitment and the inclusive business model to achieve it. All sections of the application are required. Instructions Once approved, section 2 of the application, containing the overview of your inclusive business model and the key objectives set, along with the name of the company is made available to the public on the BCtA website, while other sections remain confidential, accessible only to the BCtA Secretariat, Review Committee and the company. BCtA limits the range of possible responses available for some fields of the application form (e.g. type of Inclusive Business Model, sector, market, etc.) in order to enable the effective sorting and aggregation of data. The indicator part of the application form (section 4) requires applicants to select at least 4 obligatory business indicators and at least 2 development indicators against which the company will report each year. The company is free to select additional indicators from the list based on the company’s business model. BCtA provides a Guidance Note to help navigate companies through the SDGs, business and development themes and relevant indicators. Moreover, BCtA team is available to respond to any questions and provide additional guidance. XI. BUSINESS CALL TO ACTION APPLICATION FORM Section 1: Registration

Company Information Company Name: Company Description: HQ Location Countries / regions of operation: Annual turnover in USD: Number of employees: Year of Establishment: Company CEO Note: CEO will be contacted by email only once the application is formally approved

Name: E-Mail: Telephone: Address:

Company BCtA Point of Contact Name:

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(for BCtA team to contact with regards to the application)

Title: E-Mail: Telephone: Address:

Create Password: Re-enter Password: Company’s commitment to sustainable business practices BCtA membership is offered to companies with innovative and impactful inclusive business models in developing countries, and which are committed to sustainable business practices, including gender equity, universal principles on human rights, labor, environment and anti-corruption. Kindly add below any relevant information on sustainability and business ethics related efforts and recognitions. Internal policies, monitoring systems and Codes of Conduct Insert Text External certifications, awards and recognitions, participation in national/regional/sector initiatives, ESG indices and commitments to voluntary sustainability and ethical principles

Insert Text

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Section 2: Inclusive Business Commitment Commitment Headline Please insert a tagline describing the commitment (1-2 sentences) (Insert Text) Type of Inclusive Business model - Kindly select the appropriate one (or select both if your company’s model relates to both the value chain and goods/services provision) Inclusive business models are commercially viable solutions that expand access to goods, services and livelihood opportunities for low-income people. Such business models tap into the potential of the base of the economic pyramid (people living on less than $8 per day) and include them into their value chain – as suppliers, distributors, retailers or customers.

VALUE CHAIN The business aims to integrate underserved populations into the company’s value chain as suppliers, producers, distributors and/or employees. For example the company aims to increase local sourcing or production/manufacturing in the target country(s), with a focus on underserved groups (e.g. poor people, women, indigenous, youth, previously unemployed or marginalized). Or the company plans to invest in skills development for employees, customers or suppliers in order to optimize productivity and performance. Another example might be the company plans to generate economic opportunities within supply and distribution channels through enterprise development activities for local small and micro enterprises.

GOODS AND SERVICES The business aims to provide/sell products or services to low-income consumers. These products or services are adapted to the target market with respect to affordability, packaging, infrastructure, technology, and culture. In most cases, these initiatives will lead to cost and/or time savings for households, meet basic needs, and catalyze local entrepreneurship. Examples vary greatly by sector but may include the provision of financial services through mobile technology, access to appropriate and affordable household or nutrition products, or the provision of low-cost health services or appropriate energy sources.

Sector – Select as appropriate

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Financial Services Insurance Food & Beverage (processor/producer) Food & Beverage (retail) Agriculture & Fishing Personal Care & Household Products Textiles & Furnishings Construction & Building Materials Steel & Other Metals Engineering & Machinery Transportation & Logistics Automotive & transportation Extractive (Oil & Gas) Extractive (Mining) Chemicals

Forestry Utilities Healthcare Pharmaceutical & Biotechnology Professional / Support Services Manufacturing Information Technology Hardware Software & Computer Services Media Telecommunications Electronics Hospitality & Leisure Real Estate & Housing Water & Sanitation Education

Markets/Regions – Highlight as appropriate Latin America and the Caribbean Sub-Saharan Africa North Africa and the Middle East

Asia Europe and Eurasia Australia and Oceania Phase of the Inclusive Business Model – Select as appropriate

Pilot - the business model is brand new; it is still being designed and tested, possibly on a small scale or in a particular market Roll out - the business model has been piloted and is being rolled out across the intended markets Scale up - the business model has been successfully implemented in one or more markets and is being extended, adapted or replicated

Company’s Commitment Objectives as related to Sustainable Development Goals Detail 2 - 3 objectives that capture the goals or targets of the inclusive business. These should be measurable, achievable and time-bound and describe your contribution towards the Sustainable Development Goals. For example: By 2020, Company A will improve the nutrition of 10,000 individuals in Kenya through its products. By 2030, Company B will integrate 30,000 smallholder farmers in Bangladesh into the value chain.

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Section 3: Description of the Company’s Inclusive Business Model Provide a descriptive overview of the business. The following questions are designed to serve as a guide to creating the overview (Expected length: approximately 2 - 4 pages)

1. Market and company context

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Please provide a short description on the market and company context, including the company’s current operations, customer/supplier base in the target market (if any), market gaps or needs the company is addressing, market challenges, the journey developing and experience of piloting the model, and if relevant rationale for scaling (e.g. growing demand). (Insert Text) 2. Key characteristics of product/service or value chain inclusion & impact at BoP Describe how your inclusive business model is expected to have a positive development impact and provide growth and/or economic opportunities for low-income people. Kindly select according to your model:

For IB models that offer Goods & Services at the Base of the Pyramid: Describe the unique characteristics of your product & service and how it answers the needs of target clients and contributes to development? How will the product/service be delivered to target clients (describe the distribution model)? Kindly include information on the pricing of the product and how it is made affordable for the target market, and estimates of the income level and characteristics (e.g. urban/rural, geographic regions) of your target clients.

For model building livelihoods within the company’s value chain or business operations: Describe how the target producers, employees and/or distributors will be included in the value chain and obtain access to markets, how you will support fair livelihoods, establish contracts and if relevant build capacity among target populations? Kindly include information of the income level and characteristics (e.g. urban/rural) of the target population. (Insert text) 3. Commercial Viability / Revenue Model Kindly describe your revenue model (goods and services) or the business benefits of building livelihoods in the value chain:

How does the model generate revenues, increase market share, reduce costs, etc.?

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Has the model reached break-even (i.e. revenue is equal to or greater than costs)? If not, what is the projected timeframe to reach that point? If your inclusive business is a component or division of the company’s overall business, please provide a brief description of how it fits with the core business. (Insert text) 4. Financing, Partners and Key Resources needed to reach the targets Describe the key resources/investments and partners needed to achieve the targets, and whether you have secured financing for ensuring the necessary resources & the key sources of finance (i.e. principal partners, banks, venture capital, foundations, corporate parent). (Insert text) 5. Innovation and Scalability Here you can describe the unique features of your company’s model and the potential to scale/replicate the model further in future:

Which innovative approach distinguishes company’s inclusive business model? (E.g. innovative technologies, new partnerships, new product/service offerings, new markets, etc.)? Can the model be scaled and replicated in new markets/regions?

(Insert text) 6. Potential Risks, Challenges and strategies to address these

Describe the potential risks and challenges the company might face in reaching the targets, and strategies in place to mitigate/address these. Indicate how communities and other relevant stakeholders were engaged and/or consulted during the design or pilot of your inclusive business initiative; how the initiative’s benefits and risks for communities were jointly considered. Indicate whether the company has a plan for ongoing stakeholder engagement, including BoP individuals, communities.

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Section 4: Development Impact and Indicators Please select the ‘Business Themes’ and then ‘Business Indicators’ from the drop-down boxes on the application platform. The BCtA business indicator list includes both obligatory and optional indicators. For the obligatory ones, please select at least 4 from the following list. For the detailed descriptions of indicators, please refer to the Guidance Note. Business Indicators

BUSINESS INDICATORS Themes BCtA Indicators Expected Results Company Investment Total estimated investment (USD) Sales Indicators (for Goods and Services) Kindly select at least one of the indicators

Total # of new individual customers Optional: # of which are women # of which are youth

Total # of new institutional customers Total amount of the product/service sold

Supply Chain Indicator (for Value Chain models) Total # of suppliers/producers/distributors engaged Optional: # of which are women # of which are youth

Full Time Employees Number of direct full-time employees Optional: # of which are low-income population # of which are women # of which are youth

Total Revenues Expected revenues (USD) The BCtA development indicators are mapped to the Sustainable Development Goals (SDGs) and SDG targets to visualize the linkage of inclusive businesses’ impacts with the global development agenda. Please select at least 2 SDGs with corresponding indicators aligned with your initiative from the drop-down boxes. Companies are also encouraged to propose any new indicators if there is no corresponding indicator shown in the list. DEVELOPMENT INDICATORS SDG Themes BCtA Indicators SDG 1: NO POVERTY Increased earnings, wages and benefits

# of people with increased productivity/revenue generating activities Optional: # of which are women # of which are youth

Average annual income earned by target beneficiaries Optional: - Direct (Employees) - earned by women - earned by youth - Indirect (Suppliers/Distributors/Customer) - earned by women - earned by youth

Access to Financial Services # of individuals with increased access to financial services Optional:

# of which are women

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# of which are youth

# of loans disbursed Value of loans disbursed (USD)

Availability of Products and Services # of individuals reached by product/service Optional:

# of which are women # of which are children or youth

# of households reached by product/service Average cost savings (USD) Average time savings (hours)

SDG 2: ZERO HUNGER Access to healthy and affordable food

# of individuals with improved nutrition Optional:

# of which are women # of which are children or youth

Improved agricultural productivity # of individuals experiencing better agricultural yields Optional:

# of which are women # of which are youth

SDG 3: GOOD HEALTH AND WELL-BEING Access to quality essential health care services

# of individuals with increased access to health care services Optional:

# of which are women # of which are children or youth

Access to medicines # of individuals with increased access to medicines Optional:

# of which are women # of which are children or youth

SDG 4: QUALITY EDUCATION Training and Education # of individuals receiving training/education Optional:

# of which are women # of which are children or youth

Training cost (USD) SDG 5: GENDER EQUALITY Gender Equality # of women with increased productivity/ revenue generating activities SDG 6: CLEAN WATER AND SANITATION

Access to Water # of individuals with improved access to water Optional:

# of which are women # of which are children or youth

Access to Sanitation # of individuals with improved access to sanitation Optional:

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# of which are women # of which are children or youth

SDG 7: AFFORDABLE AND CLEAN ENERGY

Access to Energy # of individuals with improved access to clean energy Optional:

# of which are women # of which are children or youth

SDG 8: DECENT WORK AND ECONOMIC GROWTH

Employment # of full time jobs created (direct, indirect) Optional:

# of which are women # of which are youth

SME Development # of new businesses (MSMEs) strengthened

# of new businesses (MSMEs) established SDG 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE

SDG 10 REDUCED INEQUALITIES

SDG 11: SUSTAINABLE CITIES AND COMMUNITIES

Access to Affordable Housing # of individuals with improved access to housing Optional:

# of which are women # of which are children or youth

# of affordable housing units constructed # of affordable housing units improved or refurbished

Sustainable Buildings # of housing units built with sustainable materials and practices Disaster, Emergency, Planning and Response

SDG 12: RESPONSIBLE CONSUMPTION AND PRODUCTION

Sustainable Sourcing % of goods purchased through sustainable sourcing

Sustainable Production % of goods produced through sustainable production

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Resource efficiency (water, energy, materials etc.)

Amount of energy saved

Amount of reduced water usage achieved Waste Management Amount of waste reductions achieved

SDG 13: CLIMATE ACTION Greenhouse Gas Reduction Amount of reductions in GHG emissions (CO2 equivalent)

SDG 14 LIFE BELOW WATER SDG 15 LIFE ON LAND SDG 16 PEACE, JUSTICE AND STRONG INSTITUTIONS

SDG 17: PARTNERSHIPS FOR THE GOALS Multi-stakeholder partnerships