Measuring the contribution of the private sector to achieving the MDGs 2006
ABN AMRO, TNT, Philips, Heineken, BHP Billiton and Akzo Nobel have had their efforts towards the MDGs measured. This report presents the results and a method for measuring the contribution of Multinationals towards the MDGs.
Report — MDG Scan 2006
Measuring the contribution of the private sector to achieving the Millennium Development Goals
The Business in Development programme of NCDO (Dutch national committee for international cooperation and sustainable development) commissioned Dutch Sustainability Research (DSR) to fine tune the Framework developed by DSR in 2005. This methodology measures the contribution of the private sector to the Millennium Development Goals (MDGs) of the UN.
The central goal of this project is to be able to measure the contribution of companies to the MDGs. This measurability will add value by:
- Its ability to raise awareness and stimulate discussion on the MDGs;
- Participating companies will see where their efforts in development are most effective;
- This understanding will help inform management decisions, hopefully improving company contributions to the MDGs in the future;
- This quantitative approach will make the discussion on the private sector contribution to the development (MDGs) less speculative and anecdotal, as is often the case currently;
- If more companies, with developing country operations, participate we will all have a better understanding how geographical, scale and sectoral differences explain corporate development impact;
- Bringing the MDGs to mainstream financial markets. We aim to achieve this by benchmarking sufficient companies to be able to initially launch an index followed by a “Millennium Development Fund???. This fund will include the stocks of companies with the best MDG performance.
Though the objectives are clear, the current MDG Framework is not an end-product. The development of the Framework is an ongoing process in which this version is a second step in quantifying the contribution of MNCs to the MDGs. The project is innovative because it develops a framework that rates MNCs on their performance in helping achieve the MDGs. Although reports have been published that qualitatively discuss the possible contributions of MNCs to the MDGs, none present a framework and quantitative instrument that both measure and compare the contributions.
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