18. Memorandum submitted by Crown Agents
Crown Agents is an international development
company delivering capacity-building and institutional development
consultancy services in public sector transformation. Crown Agents
is wholly owned by The Crown Agents Foundation, whose membership
reflects the international development community of governments,
charities, professional bodies, institutions and the private sector.
Crown Agents has a long history of supporting humanitarian assistance
operations for DFID and other bilateral and multilateral donors.
In recent years we have been involved in relief and reconstruction
efforts in Indonesia, Sri Lanka, Sudan and Pakistan. Our response
to the current Parliamentary Inquiry into Humanitarian Response
to Natural Disasters focuses on the role of the private sector
in relief efforts. We believe this trend, while not specifically
cited in the Inquiry, is of growing importance to the humanitarian
sector and is worthy of consideration.
1. The widespread private contributions
to Asian tsunami relief programmes have garnered much media attention.
Private donations for the tsunami outstripped government pledges
in the top ten countries (according to recent analysis undertaken
by Reuters). This unprecedented support continues a trend that
has been growing for some time. Private sector participation in
post-disaster relief and reconstruction settings takes various
forms, whether philanthropic (including monetary contributions
to existing relief efforts or donation of products, services and
expertise) or profit-orientated (such as bidding for reconstruction
contracts or direct sales of products).
2. There is a growing recognition within
the donor community of the existing and potential role of the
private sector, as evidenced by the UN's attempts to reach out
to the business community through the creation of the UN Global
Compact, as well as various outreach efforts to encourage businesses
to contribute to UN relief efforts. In addition, the Disaster
Resource Network, run by the World Economic Forum in Davos, has
attempted to create a network for corporate involvement in disaster
relief and disaster preparedness.
3. Despite this recognition, however, there
are few means of systematically tracking transfers of resources
by private companies toward disasters, as they fall outside the
normal ODA channels and take various forms. This has led to difficulty
in measuring private sector involvement in disaster relief and
reconstruction, at a time when the international community is
emphasising transparency and accountability in the actions of
traditional actors. In addition, while the increasing level of
activities driven by "Corporate Social Responsibility"
is commendable, there is a potential conflict in the involvement
of the private sector, whose actions are primarily motivated by
profits, in a highly value-laden sector, where the work of traditional
actors has been predominantly driven by a sense of moral obligation
and a duty to promote and protect basic human rights.
4. There is therefore a need for both positive
engagement and monitoring of corporate involvement in disaster
relief. Greater formalisation of private sector involvement would
further highlight the positive contribution being made by this
sector and could encourage greater involvement, as well as improving
assessments of total humanitarian aid flows. In addition, improved
transparency of private sector activities could help highlight,
and in turn discourage, any potentially harmful business practices.
There is also a need to instil private companies
engaged in relief efforts with the values that are fundamental
to the humanitarian sector, such as respect for and protection
of human rights. This could be done through training on the SPHERE
Humanitarian Charter and Minimum Standards, or through greater
involvement of the private sector in the Good Humanitarian Donorship
Initiative.
5. We believe that the UK Government should
take a leadership role in this area by considering setting up
systems of incentives to help motivate and encourage constructive
private sector participation in disaster relief efforts. These
incentives could take on various forms, such as tax credits for
donation of goods and services, National Insurance or tax relief
for companies that allow for individuals to be given leave of
absence/support for personal involvement in responses, or an accreditation
scheme to reward companies that participate in human rights training
and subscribe to international humanitarian principles. Such systems
of incentives would have the added benefit of improving the UK
Government's ability to track private sector remittances and monitor
corporate involvement in humanitarian relief.
The UK Government could also help facilitate
greater formalisation of UK private sector involvement in international
humanitarian responses by promoting the creation of a network
of accredited businesses involved in disaster relief and reconstruction,
similar to the British Overseas NGOs for Development network,
the Disaster Response Network sponsored by the World Economic
Forum, or the Partnership for Disaster Relief under the corporate-sponsored
Business Roundtable in the United States.
6. In conclusion, we believe that there
is significant value to be gained from greater engagement and
formalised involvement of the private sector in disaster relief
activities. Such engagement could facilitate more accurate assessments
of overall UK contributions to international humanitarian responses,
as well as enabling greater private sector accountability in this
area. More formalised involvement could also provide an opportunity
to instil humanitarian values and principles in the private sector.
May 2006
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