The World Bank-IFC on-line discussion on responsible business and competitiveness in developing countries will be closing next Monday (February, 27). We invite you to sound in with any comments, questions or concerns.

Will Responsible Business Increase the Competitiveness of Developing Countries? (by Alex MacGillivray, Annemarie Meisling and Sasha Radovich)

Socially and environmentally responsible business practices can increase the competitiveness of companies. But can such practices positively impact the competitiveness of entire industry clusters, sectors, or even the whole economy? Or will corporate responsibility simply become excess baggage jettisoned in a race to the bottom of global competitiveness?

Recent research by Accountability and Fundacao Dom Cabral shows that the responsibility of a country’s business practices is statistically correlated with leading measures of country competitiveness. And a responsibly competitive business environment can drive the investment, market access, and innovation essential to sustainable growth and development.

But how can responsible practices be promoted and rewarded where current standards and enforcement are lacking? One good example is the multi-stakeholder partnership Multi-Fiber Agreement (MFA) Forum in Bangladesh and Lesotho. This Forum helps bring together companies, trade unions, civil society and international institutions to promote social responsibility and increase the competitiveness of the garment industry. Such multi-stakeholder initiatives not only reduce risks and share benefits all along the supply chain; they can also help mobilize support for needed government reform of national laws and standards.

Discussion Questions

Can multi-sector partnerships really be more effective than current corporate and government initiatives? What lessons can we learn from the Multi-Fiber Agreement Forum and can they be applied elsewhere? Will responsible competitiveness benefit small domestic firms, not just global brands? Can responsible competitiveness and its impact really be measured? Why are competitiveness gurus reluctant to embrace responsible business practices? What should donors do: improve public policy, enforce regulatory standards or back multi-sector initiatives?

Join the discussion here