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Building the Capacity of Pakistan’s Business Sector to Benefit from Dividends of Peace

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1. Introduction

The business sector in Pakistan, as elsewhere, has an intricate and complex relationship with

peace and conflict. Research undertaken by Alert in Pakistan shows that businesses across the

country are suffering heavily from a loss of physical and social capital resulting from the

conflict. In extreme cases, this is leading to the relocation of businesses away from areas

affected by conflict – and even out of the country altogether. Yet businesses can also be

propagators of conflict because of their failure to consider the impact of their practices on

communities. Research conducted by International Alert in 2012 showed that SMEs and CoCs

are keen to improve their business practices and become more involved in peacebuilding. They

are also very intrigued by what practical benefits (such as reducing business costs and

improving profits) conflict sensitive business practices might have for them. However, SMEs

and CoCs have very limited understanding of what conflict sensitive business practices means,

and there is a large capacity gap in terms of their ability to deliver on even basic aspects of

corporate social responsibility. Most of the chambers or businesses affiliated with the chambers

do not have a framework for Conflict-Sensitive Responsible Business or Conflict Sensitive

CSR activities. In addition, despite their interest, SMEs are uncertain as to what they can

actually do to contribute to peacebuilding in Pakistan.

Plural Business Partnerships for Peace:

With the support of EC, International Alert has been implementing the Plural Business

Partnerships for Peace Project in Pakistan since 2012. The Plural Business Partnerships for

Peace in Pakistan project aims to strengthen the peacebuilding impact of the EC and Member

States (MS) through support to plural business partnerships and by building the capacity of the

private sector to support community cohesion, promote business across conflict divides, and

advocate for conflict-sensitive business practices. The project’s objectives are:

• To support community cohesion and resilience to radicalisation through piloting

conflict sensitive business practice

• To build peace across conflict divides by strengthening and broadening business-to-

business peacebuilding partnerships

• To support strategic implementation of sustainable, plural business partnerships for

peace in Pakistan

• To engage the private sector in dialogue on policy recommendations for responsible

business practices and advocate for these recommendations at a national platform

The project will achieve the overall objectives by building the peacebuilding knowledge and

capacity of the business sector in Pakistan to adopt, implement and advocate for conflict-

sensitive business practices.

In order to achieve the objectives of the project, International Alert and London School of

Business and Finance have worked jointly on the conceptualization, development and delivery

of a capacity building training for the business sector in Pakistan. The aim of this course is to

provide participants with an innovative understanding of how to build mutual trust and manage

conflicts among a broad range of stake-holders, thereby maximising profits.

Key objectives of the course were to enable participants to:

• Understand the main concepts, approaches and business practices that will enable them

to enhance their profits

• Get acquainted with conflict analysis methodologies to help them understand conflict

dynamics

• Think of strategies to bridge existing divides, and mitigate potential risks

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• Design a sustainable business model to implement in their own business

2. Curriculum Development and Delivery:

Training Curriculum:

The training curriculum was developed through a series of discussions between LSBF and

Alert’s team and brings together LSBF’s expertise on management and business skills and

Alert’s expertise on conflict-sensitivity, conflict analysis and promoting responsible business

practices.

The training course was delivered through three modules:

Module 1: The Development of Sustainable Business Models

Module 2: Applying Conflict Sensitivity

Module 3: Leadership Practices for Organizational Change

Learning Outcomes:

The course was designed to enable participants to:

• Be familiar with how the design of work has evolved in the developed world and can

apply that understanding to their own workplaces with a view to making improvements.

• Understand how they can promote cooperation over competition for the benefit of their

businesses and the wider community.

• Be familiar with some of the main business improvement methodologies and have

explored how they can be applied to their business operations.

• Have a shared understanding of the concept of conflict and the (potential) role and

responsibilities of business to support peace through their internal practices as well as external

CSR-and advocacy-led initiatives

• Be familiar with some of the major conflict sensitivity concepts of the development

sector and developed a sense of applying the same for their business operations as well.

• Have an understanding of the reinforcing relationship between businesses and conflict

and have been familiarized with the technique of conflict mapping to identify the connectors/

dividers in specific conflict situations

• Be confident in identifying new approaches to reduce conflict risks and to increase

peace opportunities through their business operations and CSR initiatives

• Understand the barriers they are likely to meet in trying to bring about change and the

role effective leadership plays in achieving it. They will know how to use affinity diagrams

and interrelationship diagraphs to unravel the key factors within a complex situation

Training methodology:

The trainers used experiential learning and reflection to develop the skills, knowledge and

competencies of participants with regard to conflict sensitivity and responsible business

practices. The course methodology used the breadth and depth of experience among

participants and course facilitators to reach a shared understanding of how SME’s can address

conflict divides within their operations and immediate communities.

Training delivery:

To pilot test the curriculum designed, three trainings on the ‘Building the Capacity of

Pakistan’s Business Sector to Benefit from Dividends of Peace’ were organized in Pakistan in

September, 2014. The trainings were conducted at the following locations:

Rawalpindi, Peal Continental Hotel, 4th to 6th September 2014

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Islamabad, Marriot Hotel, 8th to 10th September 2014

Karachi, Marriot Hotel, 12th to 14th September 2014

Trainers’ profile:

The training was conducted by Andy Murcott and Graham Rabone from LSBF and Dr. Markus

Mayer and Dr. Haris Qayyum from International Alert.

Dr. Markus Mayer has extensive experience of working on issues related to poverty and to the

economic dimensions of conflict, with a focus on youth integration, employment in post-

conflict situations, conflict-sensitive development programming and business interventions. He

has a Ph.D in Development Geography from the University of Heidelberg on youth conflict

and development planning, and co-edited “Building Local Capacities for Peace: Rethinking

Conflict and Development in Sri Lanka” (Macmillan 2003) and “The Challenge of Youth

Unemployment in Sri Lanka” (World Bank-ILO 2010).

Andy Murcott has significant experience in management consulting, which has seen him design

and deliver training to senior management, team leaders and specialists. His educational past

is as impressive as his work background: Andy holds bachelor’s degrees in Business Studies

and Mathematical Sciences, and a master’s in Operational Research and Performance

Management. After passing the latter with distinction, he was awarded membership of Beta

Gamma Sigma, the international society for collegiate schools of business in recognition of

high scholastic achievement. He has also been published numerous times.

Graham Rabone brings with him a wealth of experience in crisis management and negotiation,

working everywhere from the USA and the UK, to Africa and the Middle East. Throughout his

career, Graham has always been very active in the development and implementation of new

procedures, working to improve efficiency and organisation. His extensive and varied

experience has made him highly sought-after for training conferences and has brought him

many commendations, including accreditations from international organisations.

Dr. Haris Qayyum has over 11 years of experience in corporate, agriculture and development

sectors in Pakistan. He previously worked for international NGOs such as CRS, Plan

International, Oxfam and Food and Agriculture Organisation of the United Nations (FAO). He

has also been deputed to government on various senior level roles by the United Nations to

bridge the gap between policy and practice

Participant Selection:

The training was attended by 70 participants,

majority of whom ( 74 %) were business leaders

from local SMEs and corporates representing

various sectors. In addition a few additional

participants from academia, civil society and

government also attended the training. Business

reps were selected through a nomination and an

application process with the support of Pak- Afghan

Chamber of Commerce, UN Global Compact –

Pakistan Chapter and Local chambers of commerce.

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3. Pre and post Evaluation

A pre and post perception was designed and administered during the training.

Pre-evaluation:

The purpose of the pre evaluation was to capture from the participants:

What CSR/philanthropy activities are you engaged in?

What are the top three conflicts in your geographic area and how does it affect your

business?

What could be potential opportunities to establish peace in your area that would also

benefit your business?

These questions were then further discussed during the training sessions. The pre evaluation

questions helped set the stage for the key questions to be answered during the training. From

the discussions/training, a few key themes/issues emerged:

As shared by most of the participants from the business sector, their main involvement

had been in charitable activities, supporting education related initiatives. The trend was

consistent for participants during the three trainings.

Participants identified a range of conflicts in their geographic area. However, a majority

of them did not elaborate on how it affected their business and focused on

national/macro level issues as opposed to very local level conflicts. The lists of conflicts

highlighted by the participants also did not show a clarity in analysing and

differentiating between the causes, actors and consequences (leading to further

conflicts). The participants identified the following as the key conflict issues:

Law and order situation in the country, which also discourages international

investment

Unstable policies

Political and religious conflicts

Ethnic and tribal conflicts

Hindrances caused by bureaucratic practices

Energy crisis

Discrimination by media

Non-availability of basic facilities for businesses

Economic and social disorders

Similarly, in response to what potential opportunities could establish peace in their

areas that would also benefit their business, the participants focused more on

macro/national level issues and solutions which are more likely to be initiated by the

state or development projects. Some opportunities identified were:

Improved law and order

Improved local policing

Establishment of neighbourhood care committees

Engagement of political parties, religious leaders and minority groups

Economic development without discrimination; skills development and

employment generation, particularly in conflict-affected areas such as

Baluchistan.

Provision of basic services ( education and health)

Incentives to attract businesses to Baluchistan

Regional dialogue to promote bilateral relations

Continuation of democracy.

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Post Evaluation:

The purpose of the post evaluation was to gauge the learning

that the participants gained and asses how the curriculum

should be improved. Questions asked were:

What points the participants found most important

and why

What points needed more clarification

Which sessions did they like the most and which they

liked the least

What suggestions did the participants have to

improve the course ?

What key insights did they gain from the workshop ?

How will they use this information?

Key Insights and Learning Points

Overall the training received a very positive feedback from

the participants. The participants found the training to be very

insightful and relevant to the context that they operate in and

issues that they face. They were quite keen to implement the

learning in their own organization and looked forward to a

platform on which they can approach the trainers for advice

on these topics.

The participants shared their own experiences how their

businesses had been dealing with conflict issues. The

workshop provided an opportunity to exchange opinions and

learn from each other’s experiences and perspectives. The

importance of team building and leadership was pointed out

as a key component in encouraging change and creating and

achieving win-win situations in organizations.

As shared by the participants, the key learning points from

the workshop for them were:

Understanding the role that businesses and private

sector can play in peacebuilding through case studies,

local examples, stakeholder analysis, discussions and

group activities

Identifying the potential conflicts among different

stakeholders in a business and finding out ways to

mitigate the adverse impacts of such conflicts

through better communication and management

Realising the importance of the structural causes of

conflict and gaining tools understand the ways to

operationalize conflict sensitivity in business

practices.

“Day 1 and Day3 were an eye opener and a great food for

thought. It happens that many times when we are so involved

I) Case Study ONE

The group presented on the case

study of marble extraction in the

outskirts of Baluchistan. One of the

companies (extractor and investor) in

the business came into an agreement

with a main local tribe in which the

tribe would provide them with space

or land for extraction, whereas the

company would do the machine

installation, labour placement,

licencing and more. The main tribe

would receive royalty in return.

However, the main tribe did not bring

to notice of the company the

existence of sub-tribes in that area

who were excluded from the whole

process. Soon the sub-tribes started

creating problems as they were not at

the receiving end of the process,

hindering the smooth running of the

company operations. Consequently,

the company instead of restricting

contact with the main tribe also

turned towards the sub-tribes and

offered them royalty.

II. Case Study TWO:

A local auto company was set up in

interior Sindh. The owner expected

that the company would attract local

feudal lords in the area and create

issues for his business so he took

them as shareholder with 2.5%

sharing in profit. This provided the

local feudal lords dignity and respect

as Board of Director of the company

and profit against no physical efforts

or monetary contributions.

Additionally, the supporters of the

feudal lords were encouraged to

work at the company ultimately

leading not only to greater profits but

also minimized security and union

concerns. This example highlighted

the significance of engaging the most

important indirect stakeholder in the

area for sustaining the company

operations.

DEALING WITH CONFLICTS

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in doing what we are doing, we forget to keep an eye on the big picture. That’s where the

problem starts. So a quick flashback on the history was a nice way of refreshing how other

have done it.“

“It would be really helpful to keep the conflict-sensitivity into consideration. SMEs need

more to focus on shared problems and to solve them rather than compete with each other,

particularly which ends up in harming others.“

Suggestions

Adding more CSR case studies from Pakistan would further help the trainees to

understand the concept and develop ideas.

More examples on how the business sector can integrate peacebuilding in their

policies and strategies with regards to CSR.

Further clarification and focus is needed on the Do No Harm Framework, the role of

arbitrator in conflict resolution and effective ways of investing towards a successful

business.

It would be useful to get the participants to design their own CSR strategy based on

their experiences.

Sessions on negotiation skills, effective utilization of human resources, investment in a

start-up business would be helpful for the participants.

Training should be spread to more number of days while reducing the number of hours

each day. This way more audience could be attracted as it is rather difficult to sacrifice

a full-day for the training.

The training should also be publicized to attract participants from diverse backgrounds.

Basic agenda of the training should be shared with the nominated participants prior to

the training as many did not have a clear idea about the objectives and learning

outcomes of the training. Communication gap was also a challenge in some cases and

should be dealt with in the future.

Content Relevance to the Training

2.33

9.3

58.14

30.23

Content relevance to the training

Poor Satisfactory Good Excellent

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Relevant Experience of the Trainers

Follow-Up Actions

Forming a Community of Practitioners:

The participants from the three trainings expressed great interest in follow up activities and

opportunities to continue to engage with the trainers and further work on the theme. A

Facebook group has been created titled ‘CSBP trainings’ to connect the trainers and

participants of all three trainings on one platform. Updates and relevant information will be

posted on the group page to encourage the participants to have discussions and stay updated to

issues related to conflict sensitive business practice.

The link to the Facebook group is as follows:

https://www.facebook.com/groups/Cspbtrainings/

Alert and LSBF are also exploring the formation of an online Forum where the participants

can engage in relevant discussions and share their experiences and best practices.

Revision of the curriculum and exploring further opportunities:

A de-brief session was organized for the trainers to review the feedback from the training.

Based on the discussion, the trainers are now in the processes of revising the curriculum.

Based on the positive feedback and the success of the trainings, both Alert and LSBF are quite

keen to further explore the possibilities of rolling out this training in other parts of Pakistan.

4. Media Coverage

The trainings in Rawalpindi, Islamabad and Karachi were covered both in electronic and print

media. Waqt News, a national news television channel, aired a video clipping of the CSBP

training organized in Islamabad. The video highlighted the objectives and purpose of the

training and the presence of participants from diverse business and economic backgrounds.

In print media, press releases of the trainings were published in both English and Urdu

newspaper. Press release and photos appeared in the following newspapers:

0.00 4.65

27.91

67.44

Relevant experience of the trainers

Poor Satisfactory Good Excellent

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• The News

• Daily Times

• Daily Dunya Newspaper

• Roznama Intekhab

News clippings are attached in Annex 2.

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Annex 1: Conflict Maps

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Annex 2:

Media Coverage

Figure 1: The News (Page 14) Thursday September 11th 2014

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Figure 2: Daily Times (B2) Thursday September 11th 2014

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Figure 3: Daily Dunya News Thursday September 11th 2014

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Figure 4:Roznama Intekhab Monday 15th September 2014