GSR Conference 2013: Executive Report

CONFERENCE FOLLOW-UP

28 Feb rua ry 2013 | Dhaka | Bang l adesh

CONFERENCE28 February 2013 | Dhaka | Bangladesh

Report on the2nd GlobalSocialResponsibilityConference

An highlight on findings,lessons learnt andrecommendations

Author: Nika Salvetti

About BGCCI: Bangladesh German Chamber of Commerce & Industry (BGCCI) with more than 400 members is the biggest bilateral chamber in Bangladesh. Our goal is to promote trade between Bangladesh, Germany and Europe. BGCCI provides a platform for networking and business services. We highlight trends, opportunities and challenges in key market sectors and share membership news. We facilitate our members in finding business opportunities through extensive network. We promote trade and knowledge sharing through business events with members and influential expert speakers. BGCCI provides a platform for all members to grow their bilateral business activities. BGCCI organizes key bilateral events, including the biennial German Trade Show and the annual German National Day, in cooperation with the German Embassy.

The organizers of the 2nd GSR:The organizers and designers of the Conference:

Daniel Seidl, Executive Director of BGCCI Mr. Seidl is since 2009 the Executive Director of the Bangladesh

German Chamber of Commerce & Industry (BGCCI). Before coming to Bangladesh he worked over 15 years as business consultant and Director in different companies in the field of strategy and marketing. His MBA he achieved at the private University Witten/Herdecke, Germany and received a stipend from Harvard, USA.

Adnan Nafis, Head of Trade promotions at BGCCI He has been serving as Head of Trade of Trade Promotion & Social

Responsibility of Bangladesh German Chamber of Commerce & Industry since 2012. He has been involved in Trade promotion, trade diversification & branding in different organizations both in Bangladesh and Thailand. He has been involved in different research projects for more than 4 years and has several publications about Bangladesh

Ready Made Garments sector, trade promotion and diversification. He served the largest Trade Association in Bangladesh –BGMEA as Deputy Secretary for the research cell. Has extensive experience in some of the top trade bodies, development organizations and private conglomerates in Bangladesh and abroad. He has done his MBA from Assumption University (ABAC), Thailand.

Nika Salvetti, Senior Social Responsibility Advisor at BGCCI Researcher and practitioner with wide-ranging experience in the field

of management, social responsibility, sustainable economic development, and post-war economic reconstruction. She gained wide management experiences while working in Latin America, Africa, Middle East, The Balkans and Asia, with CARE Nederland (from 2002 to 2008), SNV (from 1999 to 2002) and Movimondo/EC (from 1995 to 1998).

In the area of research, she designed and coordinated a Master Programme on ‘Responsible Management and Sustainable Economic Development” at the UN mandated University for Peace (UPEACE) in Costa Rica, where she is currently an Affiliated professor teaching the course on Social Responsibility and Economic Recovery. Before that she carried out research and applied studies with the University of Rome, the University of York (UK) and with the Institute of Nutrition for Central America and Panama (INCAP). In Bangladesh, she is visiting professor of the BRAC Institute of Governance Studies and the Institute of Management Consultants (IMC). She currently works as the senior social responsibility advisor at the Bangladesh-German Chamber of Commerce and Industry (BGCCI). She holds a Master degree with distinction on Post-War Recovery Studies from the University of York (UK) and she got a Bsc in Economics (cum laude) with specialization in Labour Economics at the University of Rome ‘La Sapienza’. She is also a PHD candidate at the private business University of Nyenrode in the Netherlands.


Preamble:I am very glad to share the report of the 2nd Global Conference on Social Responsibility ‘through a green lens’ which was organized by the Bangladesh-German Chamber of Commerce and Industry (BGCCI) on 28th February 2013 in close collaboration with great partners and supporters such as the Dutch Embassy, the German Cooperation and GIZ, UNDP, as well as our main sponsors, La Farge Cement, ISOLUX, Intertek, DBL, BASF.

Following the great success of the first Global Social Responsibility seminar held in 2010, BGCCI and its partners decided to widen up the concept of Social Responsibility, putting more attention on the need to promote the concept of sustainable growth, while sharing practical business examples which have endorsed environmental friendly innovation as the strategy for raising competitiveness and profits.

The 2nd Global Social Responsibility Conference did not only focus on German business but expanded towards the European perspective, highlighting the relevance of the European market for Bangladesh.

In fact, according to the latest trade figures, Europe represents the second largest export destination for Bangladesh, especially for the RMG sector but not only. There is a growing demand for other products and services such as leather, ships, pharmaceutics, technical support in the area of water management, waste, alternative sources of energy, R&D. As Germany captures almost 80% of the RMG produced in Bangladesh and exported in Europe, the bilateral trade relationship between Germany and Bangladesh is also a great stimulus to spread trade benefits all over Europe.

In addition it is worthy to mention that European companies are in the front run with respect to quality standards’ requirements and compliances, making sure that their Bangladeshi partners become more competitive in an international arena.

With this in mind we also welcomed the interactions with all actors of our society, such as the Government, civil society organizations, academia, media and international organizations, to bring the added value of looking and testing proved experiences in building a green economy for all.

I sincerely hope that all participants enjoyed the conference and the enriching and fruitful debates, and will join our effort to stimulate business and trade relationship between Europe and Bangladesh in the name of a more socially responsible and green growth path.

Daniel SeidlExecutive Director, BGCCI

1. Introduction:In 2010 the Bangladesh-German Chamber of Commerce and Industry (BGCCI) embarked in a new initiative which aimed at promoting awareness and knowledge on topics related to social responsibility.

The first Global Social Responsibility was in fact focusing on the need to promote responsible investment and to find practical solutions to mainstream CSR in the corporate strategy but also to capitalize on new business models such as the social business promoted by Prof Yunus.

The programme of the I GSR was carried out in 2 days: the first day participants could visit three projects implementing and adopting CSR principles and criteria and the second day an open debate was promoted in the area of Social Business and CSR.

The participation was significant both from abroad and from Bangladesh with approximate 150 private sector representatives from Germany and more than 100 journalists, private sector representatives and experts from Bangladesh.

The seminar was able to raise awareness about the benefits of adopting more corporate social and ethical behaviours but also showing Germany the progress Bangladesh undertook in different business sectors in relation to its social and ethical modus operandi.

After the seminar for the last 16 months, BGICC focused its attention on exploiting the momentum for promoting CSR and other initiatives aiming at challenging the negative perceptions of Bangladesh in Germany and EU and promoting bi-lateral trade and investment between Bangladesh and Germany in key sectors, especially the Garments one.

Along this process of helping ‘Branding Bangladesh’ abroad, McKinsey was commissioned to carry out a research on the RGM sector and look at the main opportunities and challenges for its sustainable growth.

The key findings of such report were the following:

1. Bangladesh RMG exports will progressively grow in the next decade reaching up to $42Bn

2. Growth perspectives are mainly justified by the increasing competitive advantages and the attraction of manufacturers, moving away from China

3. Bangladesh RMG industry is moving towards high-end RMG and value added services

4. Bangladesh still needs to overcome major challenges, especially in Infrastructure, compliance and supplier and workforce capabilities to reach its growth potential

Taking into account these report’s finding, the II Global Social Responsibility Conference was designed to capitalize on the current momentum and wider awareness and interest on CSR to broad up the discussion on all the dimensions of CSR: social, environmental and economic. But also to promote the transition from adopting the ‘business case’ approach of CSR still driven by philanthropy, to a more social value- led or syncretic stewardship model of CSR, based on corporate citizenship and multi stakeholders interaction which aims at contributing to a common goal, namely sustainable development.

2. Rationale of the 2nd Global Conference on Social Responsibility:Following the great success achieved by the first Global Social Responsibility conference, BGCCI and its partners decided to put more emphasis on promoting the wider approach of CSR,


which entails promoting the triple bottom line strategy, thus complementing social economic elements with environmental considerations.

In these terms, economic growth might be sustainable and contribute to sustainable economic development as well as addressing the main challenges the society is facing, for the benefit of all.

Within these premises the second Global Social Responsibility conference aims at stressing the need for balancing economic growth with sustainable growth to reduce ecological footprint, while introducing the concept of the Green Economy and its main components.

Such approach is backed up by the fact that Bangladesh has witnessed a remarkable economic growth in the last decades, becoming the second largest exporter of readymade garments, amounting almost 78% of total export and the most important labour supplier, employing hundreds of thousands of people of the large youth Bangladeshi population. However, such growth has been accompanied by a gradual degradation of ecosystems and livelihoods of a growing population and by questionable business behaviour and practices.

Bangladesh is now facing enormous challenges in relation to water contamination, energy shortage, waste and socio-environmental compliance which, if not timely and properly addressed, will certainly undermine its remarkable growth path.

That is why the focus of the second Global Social Responsibility conference is on environmental sustainability.

‘Social Responsibility through a Green Lens’ is a dynamic multi-actor interaction which aims at deepening the critical review of CSR, while giving attention to the impacts of business activities on the environment.

The focal point of the seminar will be on the Green Economy as a pathway towards realizing sustainable development and overcoming the challenges faced by Bangladesh in addressing environmental problems such as water depletion and contamination, energy shortage, waste mismanagement and socio-environmental (un)-compliance.

The growing international attention on moving towards a green economy, as a more inclusive and promising path to sustainable growth, has gained its momentum during the 2012 UN Conference on Sustainable Development.

It is widely recognized that such a transition can provide innovative tools to address some of the most pressuring systemic problems our world is facing today, such as widespread poverty and inequality compounded by ecosystem degradation, climate change and economic disruption. Moreover, it can generate inclusive and sustainable growth by increasing the economic and social returns from investing in environmental improvement or low-carbon, climate-resilient development.

As expressed by the UN Secretary General, Ban Ki Moon:

“We all aspire to reach better living conditions. Yet, this will not be possible by following the current growth model . . . We need a practical twenty-first century development model that connects the dots between the key issues of our time: poverty reduction; job generation; inequality; climate change; environmental stress; water, energy and food security.”

But, what is the Green Economy exactly and why is it so relevant for an emerging market such as Bangladesh?

A green economy is generally understood as an economic system that is compatible with the natural environment and thus,

Bangladesh is now facing enormous challenges in relation to water contamination, energy shortage, waste and socio-environmental compliance which, if not timely and properly addressed, will certainly undermine its remarkable growth path.

is environmentally friendly. Today, the concept of a green economy has evolved to consider also social issues: a new economy which is based on low carbon emissions, resource efficiency and social inclusiveness. By using clean technology and clean energy, the green economy is expected to provide safer and healthier environments, create alternative ‘green’ jobs and preserve the development of societies.

“Low-carbon growth” and “green growth” are different ways to express the paradigm shift that no longer positions “green” against “development”, but seeks ways to enforce sustainability.

According to the current understanding of the green economy concept, there are five main elements which support the transition to a more sustainable pattern of production and consumption:• Generation and use of renewable

energy• Energy efficiency• Waste minimization and

management• Preservation and sustainable use of

existing natural resources• Green job creation

Within this framework, innovation becomes the key driver to sustainable development and growth.

The business sector has a crucial role to play in the transition towards a green economy. Its ability to innovate, conceptualize and develop strategic solutions in the form of new products and services will help to lead such change and will increase their returns on investments.

Business strategies that reflect the attributes of a resource efficient and green economy can positively impact the financial performance of companies of all sizes.

In fact, building on the business case for the Green Economy, innovation of more sustainable products has shown to drive customer attraction and increases sales growth and market share. The provision of sustainable products and services bolsters brand value and reputation, which in turn increases sales duration. Improving productivity strengthens profit margins. Business will be rewarded for sustainable actions through favorable tax regimes which can reduce cost of capital.

However, to build a ‘green economy for all’, the interaction and collaboration with other societal actors such as Government, civil society, academia, media and international organizations, is necessary to make sure that all efforts are conveyed to promote sustainable development in a more equitable and responsible way.

Furthermore the 2nd Global Social Responsibility Conference will not only present German businesses but also European companies which have been distinguished by introducing innovative environmental solutions and socially responsible best practices into Bangladesh.

European environmental innovations have been guided by Europe’s acclamation of the benefits to move towards the Green Economy as a way to stimulate technological development and to generate jobs and wealth in respect of the environment.

The European Parliament is also considering applying taxes on environmentally harmful practices and cutting VAT on some materials produced from recycled waste, to help promoting innovation. In addition, it is determined to promote a carbon low economy thus promoting investments and technological innovation.

In this sense, European businesses will be leading the change in favour of a green economy.

Drawing recommendations from this introduction, the seminar will put emphasis on two main concepts: Green economy as a transition pathway to achieve sustainable growth (Session I) and innovation as its decisive tool (Session II).

The business sector has a crucial role to play in the transition towards a green economy. Its ability to innovate, conceptualize and develop strategic solutions in the form of new products and services will help to lead such change and will increase their returns on investments.


Bangladesh German Chamber of Commerce & Industry (BGCCI) organized the 2nd Global Social Responsibility Conference on 28th February 2013, amid huge festivity and participation. The conference took place at the Radisson Water Garden Hotel in Dhaka.

More than 250 participants from different organizations, ranging from private sector to public and civil society sectors were sharing their views and exchange ideas for contributing to a more sustainable growth in Bangladesh.

The aim of the conference was to challenge the current economic growth path of Bangladesh and to address the challenges which are undermining the transition towards sustainable development in respect of the principles of the Green economy.

In fact in the recent decades, Bangladesh has witnessed a remarkable economic growth but at the expenses of a progressive depletion of natural resources and widespread degradation of ecosystems. A transition towards sustainable growth thus requires more focus on resource efficiency and green

economy, and represents a viable opportunity for emerging economies to reduce the negative socio-economic and environmental impacts induced by traditional business models focused on quick return on investment at the cost of a higher ecological footprint.

Also, decoupling economic growth from environmental damage is required to prevent large-scale economic as well as environmental disasters.

Sooner or later businesses will have to

face the challenges of resource scarcity, change in consumption patterns as well as stricter environmental regulations, which if not addressed timely and systematically, will provoke financial loss and consequently businesses failures. Within these premises, only those companies which will invest in sustainable innovation to increase resource efficiency and will apply responsible operations ahead of regulation will be the ones to achieve competitive advantage and will position themselves to capture the mainstream markets of the next decade. As market

Reporting on the 2nd Global Social Responsibility Conference ‘through a green lens’.

conditions change, the ‘green’ business case will grow.

Therefore a transition to a green economy, can improve business resilience, deliver enhanced financial performance, and, at the same time, support broader environmental and socio-economic goals.

However to sustain such transition, collaborative efforts from different actors of society need to be promoted. Collaboration with policy makers, regulators, customers and financial institutions is essential to promote such transition.

The 2nd GSR is the first international and multi stakeholder attempt to brain storm on the drivers and tools to achieve the transition from economic growth

to a new economy which is based on low carbon emissions, resource efficiency and social inclusiveness. By using clean technology and clean energy, the green economy is expected to provide safer and healthier environments, create alternative ‘green’ jobs and preserve the development of societies.

The conference was structured in 3 main sessions: The Opening Ceremony was enriched by the contributions of high dignitaries sharing their view and experiences in relation to the Green economy and sustainability. In order, the speakers were: H.E. William Hanna, EU Ambassador, Mr Sakhawat Abu Khair President of BGCCI, H.E. Gerben de Jong, Ambassador of the Kingdom of the Netherlands, Dr. Hasan Mahmud, Minister of Environment and Forestry of Bangladesh.

The speakers stressed the need to promote sustainable growth through responsible investment and inclusive business approaches.

“A Green Economy requires new business strategies and approaches in resource efficiency, investment in clean technologies, the development of alternative products, services and materials, and the ability to obtain value from unavoidable waste. As such, social innovation and appropriate technology are required to address environmental challenges in Bangladesh. Enhanced CSR in this context can help to create that green economy in Bangladesh”.

(Speech of William Hanna, EU Ambassador in Bangladesh)


“Times have changed. Dutch companies claim to be frontrunners when it comes to strategically incorporating CSR and responsible business in their economic activities. The Dutch Sustainable Growth Coalition is a good example. Leading Dutch companies AKZO Nobel, DSM, FrieslandCampina, Heineken, KLM, Philips, Shell and Unilever have committed to actively contribute to the sustainability of the world. They have over the last decade incorporated sustainability in their own business strategy, and have received recognition in international sustainability benchmarks. They share the view that financial and economic growth can accompany the creation of profit for people, the environment and society. They are convinced that the sustainable growth model is the business model for the future.”

(Speech of H.E. Gerben de Jong, Ambassador of the Kingdom of the Netherlands).

The honorable Minister of Environment and Forestry of Bangladesh, Dr. Hasan Mahmud, suggested that to move towards a green economy, the society needs to ensure the sustainable use of available resources to make sure that such resources are also available in the future.

Such strategy can be satisfactorily applied by collaborative efforts from all stakeholders.

The Government of Bangladesh has recently launched the new policy document on ‘National Sustainable Growth and Development’ to provide guidance achieving such double goal.

After the Opening Ceremony, the conference started with the Session I, which introduced the Green Economy looking at the ‘Green Economy as a transitional pathway to achieve sustainable growth’. The session was addressed by two key note speakers, Mrs Uta Bollhoff, Director General for Europe, Middle East and Asia-German Ministry for Economic Cooperation and Development and Prof. Jan Pronk, Dutch politician and diplomat. Former minister of environment and development cooperation of the Netherlands.

Mrs Bollhoff addressed the audience with the belief that ‘the green economy goes hand in hand with efficiency and sustainability and it is not hampering financial performance of the private sector’. The private sector has a crucial role to play in driving more sustainable economic development models but it also needs to respect transparent regulatory frameworks established by the Government in promoting sustainable growth.

Prof Pronk added on the need to adopt fundamental change to achieve sustainability. He believes that since the World Summit on Environment and Development, in Rio de Janeiro, in 1992, and the adoption of Agenda 21, not much progress has been made:

” We must use available resources in a sustainable way and make sure that such resources are available for future generations”

Still one third of world population is poor or very poor. Inequalities have increased, between and within countries;

The international economic system shows signs of bankruptcy: financial crisis, resulting in economic distortions, both globally and nationally.

Erosion of values, resulting in unbalanced priority setting: abundance of luxury goods, but shortages of basic amenities such as primary health care, nutrition and drinking water.

Deterioration of the natural environment: floods and water shortages, pollution, climate change, deforestation, and less fertile land, risking the poor today more than the middle classes, and risking future generations across the board.

These phenomena manifest themselves in all countries. In Bangladesh you have your proper share of all of them.Addressing these tendencies does not only require embracing new concepts and new broad agenda’s, but concrete action: new priorities, new policies, new decision making procedures, and new forms of cooperation, including partnerships between all stakeholders.(Speech of Prof Pronk)

1) On the one hand, how GE can increase both economic activity by creating new industries, production centers. 2) And by this, how it can create jobs, reduce poverty, thereby helping achieve the MDGs and increased social cohesion. And, on the other hand, and at the same time, 3) how it can help to conserve natural resources, especially for local communities that are dependent on them as well as conserve environment for the health and food benefit of the general population. To do more than one. To the economy with the green-environmental and social progress for mutual benefit. Which is what combine some have called a triple-win solution. This is fundamentally at the core of the Rio+20 document. (Speech of Robert Jukham, Deputy Director UNDP)

The Green Economy panel explored the ways the different actors contribute to the green economy. It reflected on best practices and examples of green products and services but also on the resistance to change of business companies as well as the overall society in adopting green practices and mentality in Bangladesh. It encouraged the sharing of innovative ideas and suggestions from policy makers, financial institutions and the private sectors, which could encourage the application of green practices in Bangladesh. It was also a call for the government of Bangladesh to promote more actively the application of the green economy agenda.

As Robert Jukham, deputy director of UNDP summarized, there is a need to have a greater GREEN Focus on how the overall society operates:


In practical terms, the CEO of Villaytex, Mr David Hasnat believes that:

‘to reduce energy costs and at the same pollution, we should make the best use of existing facilities; for instance, in order to reduce water use we use boilers as well as toilet flashing systems in a more efficient way. At the same time we give added value to waste, while producing composite fertilizers; such approach allows us to save costs and obtain tangible returns but at the same time achieve intangible returns thanks to the personal satisfaction of having contributed to a better environment’.Morshed Millat, Deputy General Manager Banking Regulation

and Policy Department, Bangladesh Bank, promoted the recent activities of the Bangladesh Bank which focus on rewarding with credit facilities, those companies which strive for environmental sustainability. The Bank obtained 2 billion US$ to provide loans at 5% to those companies who invest in green technology.However, Stefanos Fotiou, Regional Coordinator for Resource Efficiency, UNEP, requested the private sector to take the lead in promoting the green economy through the increase of supply of green products with longer lifetime and to convince its consumers in choosing those products which are cleaner and safer.

The Session II looked at how ‘Innovation is the decisive tool of the Green Economy and Sustainability’. The session was covered by an eloquent speech of Mr Bas Mohrmann from IFC.He called for a responsible leadership to become the driver of sustainable development in Bangladesh:“It is my believe that if Bangladesh is to achieve environmental credibility, it will not be unlocked by the public sector, nor by civil society, nor by international development organization, how well intended. If it regains environmental sustainability, it is because private sector is taking the matter serious and is willing to assume leadership responsibility”. (Bas Morhmann, Head of Water South Asia Sustainable Business Advisory IFC) [Photo of BAS]After explaining how innovation and green technology are essential elements to boost sustainability, the discussion was narrowed to specific thematic topics in four different panels:

The Water panel specifically addressed the water challenges in Bangladesh. It also reviewed the role each actor in society plays to comply with environmental parameters and how they can promote best practices in

businesses. Finally it addresses the alarming gap between fresh water supply and demand and the need to find smarter mechanisms to improve the use of water at domestic and industrial level.

The Energy efficiency panel put emphasis on the need to move from conventional energy sources to more feasible and environmentally sustainable ones, exploring the best technology which can be used to tackle the energy

crisis both at household and industrial level. The role of the business sector in contributing to solve the energy gap between increased demand and steady supply, was also reviewed.

The Waste Management panel aimed at high lightening the benefits of waste management from a business as well as public perspective. It reviewed different technical solutions, which support the reduction, and best re-use of waste.

Finally, the Compliance panel put a light on the challenges and obstacles the business sector encounters while undertaking compliance processes. At the same time highlighted the business benefits and advantages to become more

compliant. Finally it reviewed the different strategies business companies follow and the pros and cons of enforcing voluntary process versus mandatory compliance requirements, especially in the context of Bangladesh.

The conclusions remarks were drawn by the H.E. Dr Albrecht Conze, German Ambassador.

The conference has been sponsored by the Embassy of the Kingdom of the Netherlands, LaFarge Suma Cement Ltd, ISOLUX Corsan, DBL Group, BASF and Intertek. Its cooperation partners are UNDP, GIZ, the German Cooperation.

On February 27, a press conference was organized at the GIZ Press conference room at the German House.

Below are the lists of media representatives who attended the press conference.

The participants were the President of BGCCI, Mr. Sakhawat Abu Khair and Executive director of BGCCI Daniel Seidl. As representatives of the main sponsor the Deputy Ambassador of the Embassy of the Kingdom of the Netherlands, Dr. Carel Richter and the Program Coordinator-PSES (GIZ) Magnus Schmid shared their points of view and explained why the GSR conference is an effective and relevant tool to promote social responsibility in Bangladesh.

* Snippets of coverage in a few print and electronic media:

Media Coverage


Documents

GSR Conference 2013: Executive Report