“ESGP”, where “P” represents “Peace”, recognizes the ways in which conflicts threaten both lives and causes the fall of economies in the affected areas. Prices rise. Distribution runs in congestion. Continuing in world peace, businesses can create a virtuous cycle that is as good for them and for the societies in which they work. In other words, saving lives can help lead to a sustainable business environment – and a sustainable business environment can help rescue life.
The idea of ESGP was introduced to 2025 Hiroshima Business Forum for World Peacewhere a group of executives and academics were released statement To raise awareness of the impact of business activities on peace and the role of peace on creating stable economies.
The definition of the forum for peace extends beyond the simple business activity in conflict zones to cover the economic growth facing environmental issues and other major causes of international conflicts. This includes the role of businesses in tourism, culture, sports and educational sectors, as well as the role of media in promoting international dialogue between citizens and nations.
Cynthia WangClinical Professor of Management and Organizations at the Kellogg School and its Executive Director Dispute Resolution CenterHe led a team to the forum where executives discussed the importance of ESGP in business development.
Based on examples and ideas from everyone, Wang explains how companies around the world have to look at peace when looking for business activities in destabilized areas.
Understand the dangers
First, business leaders need to take a step back and be sure that they fully understand the various risks of operating in instability, says Wang. A strong risk is when companies go on based on their own affairs, without taking into account the potentially conflicting interests of different groups.
Clearly, it is not enough for companies to guess the motives of the various groups of interest in a prone to a conflict. Businesses must also check their affairs with the parties involved and take action to make sure they and those interested are on the same page.
In the Hiroshima Forum, Wang Tomoyuki Kimura’s colleague gave an example. During his time for the Asian Development Bank, he participated in an investment in Afghanistan in the early 2000s. Previous projects approaching the completion were naturally destroyed by members of the very local communities intended to serve the efforts.
To avoid this result, ADB ensured that it had a signed, three -dimensional agreement between the government, the contractor, and Local community leaders before further projects in post -war Afghanistan.
“It gets active listening and spiritual humility,” says Wang. “This situation made them understand was that if it didn’t take the buy-in from the local community, there is a huge risk that whole initiatives can collapse.”
Are involved in perspective
To understand the shares for all interested parties, Wang recommends that business leaders start with the outlook.
“Put yourself in the shoes of other parties to understand their motives – and what possible actions you can take,” says Wang. Because what a local leader wants and what the government wants, for example, can be dramatically different.
And, as Kimura’s Afghanistan example shows, the prospects that are important and the groups affected can transcend the parties on the negotiating table.
“What organizations should do more these days,” says Wang, “he understands, almost as a flow chart,” What are the downfall of my deal with you? ”
If business leaders believe that there is still a possibility of affecting specific individuals or institutions, then it’s time to start opening lines with these various groups, he advises.
If your business takes on a global expansion, cross -border communication is decisive, it advises the panel Ryujiro Nemoto, a senior vice -president of Business Administration at NTT DOCOMO’s global subsidiary. You will want to hear constantly on developments that may affect your future business interactions with second, third, fourth and even fifth parties.
“The problem often with these types of partnerships they fail is people don’t look at the biggest picture,” says Wang. “Nemoto always listens to new things that he didn’t know would affect future business interactions.”
Practice to ESGP without trying to sell it
Should companies that are committed to playing their interest in promoting peace as they are starting to get involved? Not always, according to Wang.
“You don’t have to drive with ESGP,” he says.
It depends on the public.
ESGP resonates with some institutions, Wang explains, but it is based on how important environmental, social, governance and peacekeeping agents are for their means of living.
“I always think of the Maldives,” he says, noting that the tiny island nation is threatened by the increase in sea levels. “They are very interested in the environmental element. Why is this happening? Because it is combined with their interests.”
Of course, other groups may have different priorities. For them, business leaders should frame ESGP more in terms of financial stability and sensitivity of conflict.
“ESGP can ultimately lead to greater stability that allows for greater economic growth,” says Wang.
Panelist Haruna Usui, head of ESG strategy in Japan for Alliabernstein, noted that trying to navigate the paradox of energy transition could come at a cost. The acquisition of all products required for sustainable energy can also threaten biodiversity in sensitive areas. How do you weigh these competitive environmental concerns? And what about the economic impacts or capabilities of differences from threats to food sources for the local population?
There is no answer of a size, says Wang. “You have to balance both the long -term and the short -term perspective, both in terms of both ESGP and economic aspects.”
Get one foot on the door
An effective way in which organizations can begin to develop confidence with stakeholders in developing areas is to take on most of the initial economic risk, says Wang. Once the project is proven and a commitment has been proven, business leaders can then continue planning with government entities and local groups on the next stages of the project plan.
“What you can see is almost like a foot on the door,” Wang explains. “You get a little confidence in the front by risking your own resources and this can help you lead to more stability that can lead to more confidence in the future.”
This does not mean that business leaders will have to wait to have skin in the game to give them the loudest voice. Instead, consider what is mutually beneficial.
“A better way to get buy-in is to make sure you understand if your wishes and interests are in line with the wishes of other groups,” says Wang. “After all, they often do it. We all want stability in the area. We all want to make sure there is food on the table.”
Take a big view
Businesses can overcome investors’ reluctance to deal with ESGP, underlining the long -term perspective, supported by narrative, data and confidence.
The vibrant narrative of what would happen in the next five or ten years – both with and in the absence of investment – can help interested parties understand the project shares. Business leaders can support these narratives with data from previous projects in combination with emerging artificial-name tools. In the group, Kimura noted that new real -time media monitoring technologies, for example, can provide early signs of project support or unrest.
Still, for businesses that want to put “P” in “ESGP”, relationships can be primary. When companies are located on -site in conflict areas, they need the institutional structures to be so flexible, responding to failures and firmly in their commitment to see the project by hand with local stakeholders.
“These are not the interactions of a shot,” says Wang. “There must be constant interactions. You do not have to meet only when there is something bad to happen. You have to meet in front of time to build this confidence so that you can prevent this conflict and get to know each other.”
