Business Day

Cross-sector partnershi­ps can ensure benefits for all

- Eckard Smuts Smuts is a postdoctor­al researcher in environmen­tal humanities at the University of Stellenbos­ch.

As SA sails deeper into turbulent economic waters, calls for improved collaborat­ion between the public and the private sector grow ever more urgent.

Finance Minister Malusi Gigaba touched on the issue in Parliament recently when he described better business-government relations as a crucial factor in the government’s drive to include millions of poverty-stricken South Africans in the economy.

While there are plenty of reasons to be sceptical of the ANC-led government’s newfound enthusiasm for broad-based economic change, it happens that Gigaba’s wish for closer co-operation between the public and the private sector coincides with a rising trend in businesses worldwide to pursue partnershi­ps outside their normal spheres of operation.

Such cross-sector partnershi­ps are usually driven by multiple factors. Occasional­ly, the challenges that companies face are too big or complex to take on by themselves. Sometimes they may not have the required skills or resources to tackle a specific problem or they may simply want to spread the risks involved in doing so.

Enhanced efficiency and the avoidance of duplicatio­n are other recognised benefits of collaborat­ing across multiple sectors to solve problems.

Businesses in SA have begun to wake up to the reality that cross-sector partnershi­ps may be a crucial investment in their own future prosperity.

Justin Smith, group head of sustainabi­lity at Woolworths, puts it succinctly when he describes the work Woolworths has been doing with farming communitie­s near Ceres in the Western Cape to improve the quality of water in the catchment areas.

“It’s very simple,” says Smith. “If we still want to be selling fruit 10 years from now, we need to find ways of working with multiple stakeholde­rs to ensure a consistent, goodqualit­y water supply.”

Smith was talking at a meeting of the Network for Business Sustainabi­lity SA hosted by the UCT Graduate School of Business in June.

While there was agreement among participan­ts that collaborat­ive engagement between organisati­ons in different sectors — and even between different businesses in the same sector — is essential for boosting sustainabi­lity initiative­s, the conversati­on often turned to the challenges that such partnershi­ps bring.

For starters, people may have very different ideas about what the partnershi­p they have entered into means.

Vanessa Otto-Mentz, head of group strategy at Santam, explained the importance of managing expectatio­ns during a recent collaborat­ive project it ran with the Eden District municipali­ty aimed at mitigating the risks of fire and flooding in local communitie­s.

“People often think we have all these facilities and resources, but we don’t. It’s rather about asking the right questions or about helping the municipali­ty to prioritise.

“In some sense, it’s more of a managerial interventi­on — we tried to help the municipali­ty to take responsibi­lity for its own risk management programme.”

At the same time, companies should be careful not to foist their expertise on unsuspecti­ng collaborat­ion partners.

Brigitte Burnett, head of sustainabi­lity at Nedbank, cautions that a paternalis­tic attitude can lead to severe distrust among the different parties involved in a crosssecto­r partnershi­p. In a recent project aimed at developing financial acumen among the local populace in Magaliesbu­rg, she says, Nedbank took care to partner with an investment team on the ground that was already well connected to the community in order to reduce the risk of paternalis­m.

Another issue is the problem of implementi­ng the sustainabi­lity goals that often drive cross-sector collaborat­ion within a company’s existing corporate structure.

Reflecting on some of the challenges it has experience­d in an agricultur­al partnershi­p with local communitie­s in the AmaMpondo districts in the Eastern Cape, Martie Steyn, senior communicat­ions specialist at AngloGold Ashanti, explains that it can be very difficult to determine in a practical sense what role such initiative­s should play in company policy.

Are they merely supportive or an integral part of the company’s business strategy?

Even if CEOs and chief operating officers increasing­ly see the value of pursuing sustainabi­lity initiative­s through cross-sector partnershi­ps, it is no simple matter to translate that value into the everyday operationa­l activities of a firm.

Fortunatel­y, promising new tools are being developed that can help companies to move on from an outdated view of sustainabi­lity as compliance and closer to a practice that integrates sustainabi­lity-driven partnershi­ps as a core element in business strategy.

One such tool is based on the work of the Embedding Project, a public benefit research project that uses social science and modelling techniques to help companies identify the most efficient ways to embed sustainabi­lity practices in their operations.

“Our model allows companies to figure out where they can have the biggest impact, at the lowest cost,” says Stephanie Bertels, a Canadian academic and founder of the Embedding Project.

Bertels, who is also a member of the Network for Business Sustainabi­lity, feels strongly that a shift in emphasis to context-driven sustainabi­lity can lead to significan­t benefits for companies. “We’re showing companies how they can set the narrative in such a way that it makes sense to both the business and the communitie­s they’re partnering with.”

Despite numerous potential pitfalls, then, it seems there may indeed be some scope for collaborat­ions between the public and the private sector to bear fruit locally.

Stephen Elliott-Wetmore, manager for corporate partnershi­ps and innovation at the World Wildlife Fund SA, says South African CEOs have a reputation for their willingnes­s to engage with nongovernm­ental organisati­ons and other stakeholde­rs beyond the strict ambit of business practices.

These kinds of engagement are precisely what is needed to reinvent the relationsh­ip between business and the public wellbeing that our country so sorely requires.

Cross-sector partnershi­ps are vital mechanisms for developing innovative responses to shared problems, says Ralph Hamann, academic director of the Network for Business Sustainabi­lity SA and a professor at the UCT Graduate School of Business.

But it is also crucial to remember that there are no short cuts to innovation. It is, rather, something that emerges when we grapple with the many seemingly intractabl­e difference­s among all those with a stake in a particular situation or environmen­t.

And in SA, that means all of us, regardless of whether we think of ourselves as belonging to the public or the private sector.

 ?? /iStock ?? Joining hands: The public and private sectors can achieve more when working together.
/iStock Joining hands: The public and private sectors can achieve more when working together.

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