the impact of the private sector on children’s rights in mali

7/28/2019 THE IMPACT OF THE PRIVATE SECTOR ON CHILDRENS RIGHTS IN MALI

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September 2011

THE IMPACT OF THE PRIVATESECTOR ON CHILDRENS RIGHTS

IN MALI

Mapping and analysis of the private sector with the aimof increasing the role of Corporate Social Responsibility (CSR)

in the promotion of childrens rights

SUMMARY REPORT


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SUMMURY OF THE STUDY

1. General context and aim of the studyOne of the most remarkable phenomena in the field of development over the last twenty years is the

increasing role assigned to the private sector in achieving development goals. Thus, we can see how,

since the Rio Conference in 1992, or the World Forum on Sustainable Development in Johannesburg

in 2002, international organizations, public institutions and non-governmental organizations have

gone from looking at businesses with scepticism to considering them today as strategic partners in

the pursuit of their objectives.

Following this trend, in June 2009 the Executive Board of UNICEF developed the Strategic

Framework for Partnerships and Collaborative Relationships. This document seeks to promote the

increasing role of business by integrating the latter as a fully-fledged partner who can contribute to

improve the effectiveness and impact of policies promoting childrens rights.

The government of Mali, inspired by the Strategic Framework for Growth and Poverty Reduction

(CSCRP), also now places the private sector at the very heart of its strategy to fight poverty, as

illustrated by the adoption of the Economic and Social Development Project (PDES).

Corporate Social Responsibility can be defined as "a concept in which businesses incorporate social,environmental and economic concerns in their activities and in their interactions with other

stakeholders on a voluntary basis ". It tends to focus on a firms responsibility vis--vis stakeholders,

following the philosophy of act locally, think globally , promoting the integration of the local and

global context within the strategic analysis of the company.

The United Nations Childrens Fund (UNICEF) increasingly perceives the development of Corporate

Social Responsibility (CSR) as a real opportunity to mobilize the private sector in the promotion of

the organizations goals, and it is within this context that, under the leadership of the Ministry of

Industry, Investment, and Commerce (MIIC), the Mali-UNICEF Cooperation Program is developing

initiatives to promote CSR as a tool enabling the improvement of childrens living conditions in Mali,

specifically in terms of health and child survival, education, and protection against violence and

abuse. This study has been developed within the framework of this partnership.

2. Approach and MethodologyThe studys approach was conceived by UNICEF and the MIIC, with the support of a steering

committee and a technical committee, both composed of various institutions and organizations

representative of Malian society.

The completion of the study was supported by a Technical Committee composed of the MIIC, the

Statistical Planning Divisions (CPS) of the Ministries of Health, Social Development and the

Advancement of Women, Children and the Family; the National Institute of Statistics (INSTAT); the

Permanent Assembly of the Chambers of Commerce of Mali (APCMM), and the United Nations

Childrens Fund (UNICEF).

The supervision of the study was carried out by a Steering Committee composed of representativesof the public sector, the private sector, civil society and financial and technical partners, including:

the Finance Commission of the National Assembly, the Ministry of Industry, Investment and

Commerce (MIIC), the Ministry of Crafts and Tourism, the Ministry of Health, the Ministry of

Agriculture, the Ministry of Mines, the Ministries of Social Development and the Advancement of

Women, Children and the Family, the Economic, Social and Cultural Council, the Statistical Planning

Divisions (CPS) of the Health and Social Development sectors, the Mali National Business Council,

the Professional Association of Banks and Financial Institutions of Mali (APBEFA), the Chamber of

Commerce and Industry of Mali (CCIM), the Permanent Assembly of the Chamber of Agriculture of

Mali (APCAM), the APCMM, the French Development Agency (AFD), as well as UNICEF.

In terms of the research methodology, various tools were used both in collecting and in analyzing

the data. The following are some of these tools:

Analysis of secondary sources from major publications on CSR and childhood, both withinMali and at an international level;

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LImpact du Secteur Priv sur Les Droits de LEnfant au Mali

1- Commission Europenne, 2001

2- Doing Business 2011 Mali Banque Mondiale IFC


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Analysis of a questionnaire taken by Malian businesses;

Analysis of a questionnaire taken by private sector stakeholders in Mali;

Personalized interviews with businesses and businesses stakeholders in Mali;

Personalized interviews and phone interviews to the managers of UNICEFs strategicpartnerships;

Intersectoral workshops to submit and discuss the collected information with leading Malianinterest groups.

As the study focused on the most visible and representative firms of the major sectors of the Malian

economy, a majority of the responses to the survey came from large and medium businesses (80%).

Just above a third of these were part of international corporations. Small businesses developing their

activities in the informal sector were not addressed directly for obvious practical reasons; instead,

they were approached through umbrella organizations, and especially through Chambers of

Commerce (Chambers of Agriculture, of Trade, of Commerce and Industry) and federations (Mali

National Federation of Artisans).

In terms of capital and area of activity, almost 65% of businesses in the study are private capital

businesses, and 24% mixed capital. The majority develop their activities at a national level (53%),

over 26% at a regional or international level, and 20% at a local level.

We can confirm that the study is indeed representative of the economy, as it deals with the countrys

main economic sectors in terms of contribution to GDP (agriculture, mining, telecommunications),

as is illustrated below (see Figure 2).

Figure 1. Sectoral representativeness of the study

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3. Socioeconomic situation of children in MaliWhereas the private sector had long played a secondary role in economic life, in the last decade Mali,

has adopted major reforms to improve the business climate. The progress achieved has allowed the

country to move from the 162nd place in the Doing Business ranking of the World Bank in 2009, tothe 153rd place in 2011.

The economy of Mali has thus experienced constant growth in the past 10 years, with an average

GDP growth rate of just above 5%.

Energy and water,

Mining industry

EDM, Avion

Anglogold Ashanti,

Randgold, Tamico

Information

and Telecommunication

Orange

Agro-industrial and textile

CMDT, Groupe Ami,

Bramali SA, Sukala SA,

Comatex, Abattoirs du Mali

Boulangerie Kansaye

Chemical

and Pharmaceutical Industry

Embalmali

Jikke

MPC, Laboratoire Cellal

Banking and Insurance

Allianz

Sabu N'yuman BICIM, BNDA

Caece Jigiseme, PMU

Construction

and Public Works

Somafrec

Manutention Africaine Mali

Office du Niger

Crafts and Tourism

Groupe AZALAI

Bakatra

Cooprative Jama Jigui,

Cooprative des Pcheurs de Mopti

Transport

Transrail SA

Air Mali

Air France

MAERSK

Hydrocarbons,

Services and Commerce

CFAO

CADAU


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However, we can see that this growth is not enough to lead to true development. Almost half of the

population, and up to 73% in rural areas, live below the poverty line of under a dollar a day. Thus,

Mali continues to be one of the poorest countries in the world, as is illustrated by its 160th position

out of a total of 169 countries in the UNDP Human Development Index (HDI).

Children are generally the first victims of poverty; their situation in Mali remains critical. Indeed, eight

out of ten children suffer from deprivation, nine out of ten of these are living in rural areas. Lack of

housing and education are the most common problems.

Notwithstanding considerable improvements, the Millennium Development Goals will probably not

be achieved by 2015 in terms of eradicating extreme poverty and hunger (MDG 1), promoting gender

equality (MDG 3), reducing infant mortality (MDG 4), improving maternal health (MDG 5), or in terms

of combating HIV/AIDS, malaria and other diseases (MDG 6).

Significant progress has been made in terms of primary education, with a gross enrolment rate of

above 80% in 2009, but there continue to be great disparities in access to education depending on

gender, region, or parents revenues.

In addition, Malian children are still widely victims of traditional practices which harm their proper

physical, mental and emotional development such as female genital mutilation/cutting, early

marriage and child labour or forced begging.

All of these factors affect their ability to reach their full potential as adults, thus representing lost

important opportunity for the country. Malis economic growth and future well-being depends on its

capacity to invest in this segment of the population today.

4. UNICEF and strategic partnersPartnerships involve finding common ground between the public and private sectors and combining

the skills and expertise of the private sector with the knowledge of poverty and development issues,

as well as the legitimacy, of the public sector. There are several domains in which private actors and

public institutions can engage to improve the conditions of children in Mali, such as health, education,

community development and the fight against poverty (see Figure 3).

Figure 2. Overlapping interests in multisectoral partnerships

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With this in mind, intersectoral partnerships can help overcome the challenges of development,

which are by nature too great and complex to be tackled by a single organization or sector.

Partnerships can also maximize the impact of development and the fight against child poverty by

sharing human and financial resources, as well as the knowledge and expertise of each stakeholder,

in a strategic manner. Sharing risk and resources as a form of teamwork can help businesses and

public institutions to achieve their own objectives whilst working towards a common goal. In the last

decade, the private sector in Mali has contributed to the development of the health system by

expanding health coverage; however, the latter still hasnt achieved the level it should have withinthe national health system.

Within this context, and guided by the Strategic Framework for Partnerships and Collaborative

Relationships, UNICEF has launched a process seeking to expand its traditional relationship with the

private sector beyond financing and philanthropic activities towards a new type of partnership (see

Figure 4).

Figure 3. Types of collaborations and partnerships with UNICEF

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UNICEF has been working for a long time in close collaboration with multinational corporations,

national companies and medium and small businesses in order to propose, conceive and implement

partnerships that use the assets of the private sector to better serve the interest of children worldwide.

Traditionally, the initiatives stemming from partnerships with the private sector primarily have

involved strategic corporate patronage, humanitarian marketing, employee donation programs,

special events, charity greeting cards, and support in humanitarian emergencies. However, lately

UNICEF has redefined its relationship with businesses by recognizing the private sector as a key actor

able to contribute to childrens well-being in a more strategic manner.

Indeed, UNICEF understands that the potential of businesses contribution to children goes way

beyond traditional philanthropic activities. By incorporating the discourse of childrens rights at the

heart of firms corporate social responsibility policies, the latter commit to respecting and promotingchildrens well-being in the everyday management of their activities.


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5. Impact of business on childrenAll businesses have a more or less direct impact on children that can be either positive or negative.

The impact of businesses on children can be summarized in the following manner :

Physical impact

Moral impact

Intellectual, cultural and social impact

Impact on economic well-being, parents employment and family life.

Knowing that businesses can affect various aspects of childrens lives in a positive or negative

manner, it is important that they measure and understand the impact of their actions on childrens

well-being in order to minimize the negative effects and maximize their potential in contributing to

their happiness and fulfilment. Understanding the dimensions of this impact is the first step towards

understanding the problems that children face. Integrating childrens issues within the companys

framework implies a behavioural change which goes beyond a strategic change.

Nevertheless, childrens issues are rarely approached in a holistic manner by businesses. Most CSR

initiatives related to children focus on the fight against child labour and on philanthropic activities

that do not translate into an active engagement on behalf of the company in the programs it finances.

This is largely due to a lack of knowledge of businesses impact on children, inadequateunderstanding of the latters specific needs, and to a general lack of awareness surrounding childrens

rights. However, more and more firms have begun to understand that it is more effective and

profitable to create partnerships with the public sector and civil society, and that there are several

ways of contributing to childrens development that go beyond traditional philanthropy based on

donations, sponsorship or charitable business initiatives.

6. CSR: Moving beyond philanthropyBusinesses have traditionally contributed to development goals through essentially philanthropic

activities. Their initiatives generally stem from management, and are not developed in a systematic

or coordinated manner, thus minimizing their potential impact.

However, businesses have begun to understand that their contribution does not have to limit itself

to these donations. The rising interest in CSR at an international level represents an important change

in firms operating mode in support of development. Indeed, CSR implies integrating initiatives for

development at the very heart of the companys operating range, thus considerably increasing its

potential impact.

The study of international good practice in the field of CSR related to children reveals great diversity

in the initiatives that have been developed. In particular, we notice a growing interest in innovation

and the development of new products that lead to solutions for children. In addition, businesses tend

to depend more and more on partnerships with NGOs, public institutions or international

organizations to develop their initiatives. However, it appears that the private sectors ability to impact

on children has not yet achieved its full potential. It is a relatively new concept and there are few

tools and methodologies supporting the development of this type of initiative.

7. The five dimensions of CSRA companys main sphere of action in terms of CSR can be broken down into five key dimensions

that affect its potential impact on development and on children: its strategic approach, its products

and services, its operations, communication with its stakeholders and its social investment in the

local community.

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Figure 4: the five dimensions of CSR

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SUPPLY CHAIN

INTERNAL CSR

Socially valuable production

Development of products benefitting

offering access to basic services

Philanthropy and patronage

Intersectoral parterships for development

Creation of social dialogue commitees

Public responsibility in terms of children

Development of awareness-raisingstrategies

Giving children and local communities avoice aux enfants

Companys vision and missionstatement

Codes of ethics

Triple bottom line

OPERATIONS PRODUCTS AND SERVICES

VALUES AND ETHICALPRINCIPLES

IMPACT ON THE LOCAL COMMUNITY AWARENESS-RAISINGAND COMMUNICATION

The values and principles dimension involves elaborating a vision and mission statement, as well as

codes of conduct and ethics that allow the company to integrate the values of social responsibilityand the protection of children in a transversal manner.

Through its internal and external operations, the company can develop activities that have an impact

on its triple bottom line, that is, its economic, social and environmental result. This dimension

involves promoting internal human resources and developing a constructive relationship with

suppliers.

By developing innovative products and services, the company can meet the needs of children and

society through their supply, whilst creating new markets that will in turn generate profit.

The communication and dissemination capability of a company can also have a very important

impact on social awareness. It can play an educational and formative role with great added value for

the region in which it operates whilst at the same time contributing to consolidate the companysreputation.

Finally, the company is an integral part of the local community in which it has settled. This involves

rights as well as obligations. If the company manages to develop a real partnership with the

community, supported by other partners such as local collectives, NGOs or international

organizations, it can have a profound impact on this community, which in turn will contribute to

maximize the potential of the company.

8. The Role of the private sector in promoting childrens rights inMali

In order to analyse the role of the private sector in promoting childrens rights, the interviews andquestionnaires focused on the following aspects:

i. Knowledge of the CSR concept

ii. Level of integration of CSR in the companys policy

iii. Malian businesses perception of problems affecting children and priorities for action

iv. Businesses economic contribution to childrens causes

v. Businesses modes of intervention in favour of children in Mali


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Figure 5: Dimensions of the private sector

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3- IMF, World Economic Outlook, 2010

Intgration of the CSR Perception of childrensproblems and priorities for

action

Integration dof childrensrights in the companysstrategy

Modes of intervention ofthe company in favor ofchildren

Dimensions of the private sector analyzed

Values, Mission and

strategic management

of the company

Operations

Products and services

Awareness-raising and

communication

Social

Investment/commitment

to the community

Knowledge of the

concept

Extent of integration

Vision and mission

Code of ethics

Strategy and policy

Evaluation systems

Social Reports

Perception of

childrens problems

Current priorities for

action

Desired priorities for

action

Mechanisms for

denouncing violations

Strategy for the

promotion of childrens

rights

We describe below the most important conclusions derived from the study.

Knowledge of the CSR concept

66% of firms have never heard of the term.

The bigger the company, the more likely it is to be familiar with the term.

Multinationals are the ones that know the term best.

Level of integration of CSR in the companys policy

63% of businesses interviewed claim to have developed a vision and mission statement.

However, very few firms actually incorporate CSR principles in their vision and missionstatements.

Half of the businesses interviewed claim to have a declaration of values and/or a code of ethics.

38% of businesses interviewed are developing a CSR policy.

13% of businesses interviewed evaluate their social impact. 25% of businesses interviewed claim to publish or to have published a social report.

Malian firms perception of problems affecting children and priorities for action

Health, education, and protecting children against exploitation and mistreatment are perceivedas the most important issues faced by children in Mali.

While two out of three children in Mali work, only 25% of firms perceive this as a veryimportant problem.

Over 50% of businesses interviewed claim to finance activities related to children.

Amongst the businesses that do not currently contribute, there are just as many that claim to

want to contribute in the future, as that claim not to be interested at all. Whilst the fight against HIV/AIDS is by far the area in which firms have been more active,

education appears as the area in which they would like to contribute more.


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There is definitely the will on the part of firms to contribute more to fighting problems affectingchildren, but they need further counselling in order to achieve it. It therefore appears that

businesses are beginning to understand that investing in children is pivotal to the economic

development of the country in the long run.

Businesses modes of intervention in favour of children in Mali following the five dimensions model

Values and principles While 38% of firms claim to take into consideration aspects affecting children in the definition

of their values and principles, in practice the fight against child labour remains the only issue

included in the codes of conduct.

Whereas a large number of businesses claimed that the promotion and protection of childrensrights are amongst their values and principles, in practice the definition of these ethical values

does not appear in any charter.

Operations

If we analyse the operations dimension, we notice that CSR activities are more frequent at aninternal level than in the supply chain. Indeed, whereas numerous initiatives geared towards

improving the social environment of employees families have been put in place, the study

could not identify any specifications for suppliers addressing issues related to children.

In terms of health, the most common measure is extending medical coverage to familymembers.

In terms of education, covering the partial or full cost of school fees and setting up a loansprogram are the most frequent initiatives.

Products and services

The supply of products and services that meet the needs of children is essential to guaranteethe well-being and development of children and youth in Mali. Whether through the creation

of intersectoral partnerships, or by developing new ranges of products and services,

businesses play an essential role in this challenge.

Businesses can create new markets by offering innovative products and services, while at thesame time becoming more competitive vis--vis companies that develop traditional products.

The private sector has access to human, technical and financial resources to invest in theresearch and development of solutions favouring children.

Awareness-raising and communication

There are a few Malian businesses developing communication activities related to the protection

of childrens rights.

Businesses have great potential in terms of communication and awareness-raising onchildrens issues, both at an internal and external level; they have the necessary resources

and wish to get more involved, but do not consider these issues as priorities for the company

and often do not have the necessary knowledge to engage in awareness-raising campaigns.

Commitment to the community

42% of businesses claimed to be developing initiatives in favour of the community. Thecommitment to the community (which by and large translates into philanthropic activities) is

generally the firms favourite CSR mode of intervention.

Businesses tend to provide in-kind contributions or to make infrastructure and logisticalservices available to the community, but they rarely get involved in the development of health

and educational programs directed to children.

Activities do not follow a properly-defined corporate social responsibility strategy. With a few

exceptions, businesses do not count on an annual budget intended for social activities, and CSR

departments or foundations in charge of managing the companys activities in favour of thecommunity are practically non-existent.

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9. Strategic recommendationsThe recommendations stemming from this study have been broken down into three main groups.

In terms of the private sector, we suggest putting in place a series of measures that would allow for

the integration of CSR in favour of children within the strategies of Malian businesses (R1). These

include a methodology tailored to the size of the business (large firms, SMEs, and informal sector

businesses) to integrate CSR in the company, setting up a training program, and developing

awareness-raising activities on CSR and children. We also recommend creating a coalition topromote childrens development within the private sector (R2) as a way to mobilize the financial,

technical and human resources of the sector in favour of the great cause of protecting childrens

rights.

Next, we approach public institutions and TFPs (Technical and Financial Partners) as entities able to

contribute to the creation of a favourable environment for good practices in CSR and initiatives

favouring children (R3). That is why we suggest: creating funding for companies that wish to adopt

CSR strategies; putting in place a strategy for training in CSR directed to businesses; creating a

favourable legal framework, be it juridical or fiscal; and finally, promoting institutional coherence, at

the level of the Malian government, as well as at the level of TFPs or of the United Nations System

(reform: Delivering as One).

The third group of recommendations is oriented towards the creation of a framework auspicious tothe development of strategic partnerships seeking to find solutions to the issues faced by children

in Mali. Setting up a platform for intersectoral dialogue on childhood (R4) would allow the elaboration

of a national strategy for children, the organization of periodic workshops between the different

actors, and the launching of a process around innovation in products and services for children.

Finally, it is recommended that pilot projects be put in place to seek to improve childrens conditions

in mining and agriculture (R5).

the impact of the private sector on children’s rights in mali

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