Business and Sustainable Development

IIED’s work on Business and Sustainable Development uses research projects, partnerships and capacity-building initiatives to build an understanding of where and how business can best contribute to sustainable development in middle and low income countries.

The business and sustainable development theme was established in 2005 as a successor to IIED’s Programme on Corporate Responsibility for Environment and Development (CRED).

We currently work on four topics:

• Business and sustainable local development

  Businesses have substantial potential to contribute to sustainable development at the local level. But how should businesses engage with local communities and policy-makers for sustainable development goals? How can corporate social investment strategies meet community development needs? And how can multi-stakeholder partnerships and dialogue be most effective at local level? These key questions guide our project work under this topic.

  We want to catalyse learning and partnerships that can get businesses working as real ‘local development actors', or that can see NGOs learning how to apply business skills in market settings - with our goal sustainable development at the local level.
   

• Standards and tools for sustainable development

  Getting the right standards and tools in place to support and promote responsible business practices is important. Codes of conduct, ethical management systems, and various kinds of ‘social and environmental responsibility' standards for businesses are burgeoning. But who wins and who loses as these tools and standards hit real-world markets and impact on producers in poorer countries?

  IIED works to understand the implications of existing standards and tools for stakeholders based in middle and low-income countries - particularly smaller producers. We want to shape standards and tools that can maximise positive business practices. We aim to do so in ways that are better attuned to sustainable development outcomes and to the concerns of stakeholders based in middle and low income countries.
   

• Direct investment and sustainable development

  Direct investment has the potential to make a major positive contribution to sustainable development. But benefits that are promised at national level are too often not matched by positive contributions to environmental protection, poverty reduction or sustainable livelihoods at the local level. IIED works to find ways to strengthen positive environmental, social and economic outcomes from direct investment.
   

• New Business Models for sustainable development

  This new initiative builds on IIED's work from across a range of industries, sectors, products and supply chains. It looks at how businesses and enterprises contributions to sustainable development are affected by the business model they adopt - including how they interact with each other in procurement, sub-contracting and other direct business arrangements. It explores how private sector, civil society and government can work together to shape business models that deliver positive economic, environmental and social outcomes as well as business viability.

All of our work reflects IIED’s longstanding concern to make sure that the interests of stakeholders based in middle and low-income countries have a real impact in shaping responsible business practices for sustainable development. We also place particular emphasis on the public policy underpinnings of responsible business practice and corporate accountability.

IIED’s work on business and sustainable development has focused on natural resource-based sectors. We have particular expertise within the team on food and agriculture, energy and extractive industries. We also often draw in wider sectoral expertise through collaboration with IIED colleagues working on tourism and on forestry and land use.

IIED staff are also active advocates in the broader agenda for change related to business and sustainable development.

See also: History of IIED's work on business and sustainable development