IFC’s Knowledge Leadership Changing the Corporate Responsibility Game

July 21, 2010 — IFC recently assembled over 200 representatives from the private sector to discuss ways that companies can maximize the positive impacts of their community investments and contribute to long-term economic growth in developing countries.

Leading companies such as GE, ExxonMobil and Rio Tinto, whose annual community development budgets all exceed $100 million a year, participated in the event.

The 2010 Corporate Responsibility Forum, which drew many IFC oil, gas, and mining clients, focused on aligning corporate responsibility strategy with core business drivers and putting a financial value on CSR work. It was also an opportunity to hear various corporate perspectives on how IFC can shape the future of CSR.

Internal processes are the biggest obstacles to taking a more strategic approach to community investments, said 38 percent of participants. Two-thirds felt that coming up with appropriate indicators is preventing their company from accurately measuring the results of their community investments.

“IFC clients in the infrastructure and natural resources sector are expected to spend over $600 million on local community investments over the next five years,” said Monika Weber-Fahr, IFC Manager, Sustainability Advisory Services. “Going forward, we see great opportunity to help companies overcome their internal obstacles and set up systems to measure the impact they are having.”

Promoting Best Practices for Community Investment

IFC used the Forum to launch the Good Practice Handbook on Strategic Community Investment. The Handbook gives companies a tool for aligning the strategic issues of the business with the development priorities of local stakeholders to create shared value. The goal is to shift away from ad hoc practices and donations to a more strategic model that creates sustainable local benefits while supporting business objectives.

“This is clearly what IFC should be focusing on from a development standpoint, but it also sets us apart in the marketplace,” said Lance Crist, Senior Manager for Oil and Gas. “No other institution can give clients access to this level of networking and thought leadership on sustainability issues.”

IFC also introduced participants to its Financial Valuation Tool, co-developed with Rio Tinto and Deloitte, which allows companies to measure the financial value of community investments at specific projects around the world.