Sunday, July 29, 2007

Pakistan bans advertising of spurious drugs: Are the advertising and media industries ready to swallow the bitter pill?

The Government of Pakistan has finally woken up to its responsibility to enforce a ban on advertising of spurious drugs. The Ministries of Health and Information have teamed up to take action in this respect and have announced their plans to tackle this public menace by involving the representative bodies of the media, including the All Pakistan Newspapers Society (APNS), Council of Pakistan Newspapers Editors (CPNE), Pakistan Broadcasters Association (PBA), Pakistan Advertising Association and Pakistan Electronic Media Regulatory Authority (PEMRA). In early 2006, the Supreme Court of Pakistan had taken suo moto notice of spurious drugs as a public interest issue, but as ever, the government's tardy response to an obvious problem epitomises its apathy towards public health hazards. But while we can all chuckle and indulge (yet again) in Government-bashing, what about the role the media has played--or not played in relation to this public menace? Clearly rubbishing the APNS Code of Ethics, the PTV Code of Advertising Standards and Practice, the PEMRA Ordinance and virtually any related legislation or self-regulatory mechanism that exists, the print and electronic media as well as the advertising agencies have shown scant respect for their responsibility to society. Whether its in the form of advertorials in the electronic media or print ads, advertising of spurious drugs is ubiquitous. As a former advertising man, I am at pain to see that the slide towards irresponsible corporate behaviour has been as swift and steep as it has. However, I do hope that the media and advertising industries in Pakistan can atone for its sins by working with stakeholders, including the government, to raise awareness about spurious drugs and the risks they pose. In a country where majority of the public turns to an unregulated health service market and where functional health literacy is very poor, spurious drugs pose a serious threat. I will soon be working with Marketing Association of Pakistan, Pakistan Advertising Association and the International Advertising Association (Pakistan Chapter) to run an advocacy campaign on Responsible Advertising, but I suspect that the best way to stop the spurious drug makers in their tracks--not publishing/running their ads--may prove too bitter a pill to swallow for a number of my colleagues.

Saturday, July 21, 2007

Should CSR be mandatory?

Indonesia has passed a law that makes CSR a legal obligation for almost all companies outside the financial industry. This news follows on from an earlier news item that appeared on the CSR Asia website, reporting the opposition of Indonesian businessmen, including the Chambers of Commerce, on the Government move. These two items represent the classic dilemmas confronting CSR: is it or is it not, the business of government to deal in CSR? Can CSR be enforced or is it?

Indeed, one of the criticisms that the Global Compact has faced relates to its voluntary nature. The argument goes that such voluntary platforms lack teeth and hence are not sustainable. The counter argument is that businesses cannot be forced into doing things that it does not want to. Merit on both sides of the argument, but on balance, the voluntary Global Compact initiative has not done too badly in its brief existence.

While I believe that legislation is not the solution, because enforcement capacity especially in the developing countries is weak and also because the usually adversarial business-government relationship results in even well-intentioned government-led initiatives being condemned to death ab-initio, I do believe governments can play a role in ensuring that CSR is ingrained in business activity. This is best achieved by offering the right incentives--fiscal included--and designing policies that encourage businesses to mainstream CSR policies and practices into their core work; tying-in CSR-related capacity building support to businesses can expedite the process. Passing another set of legislation will likely add to the mountain of legal and quasi-legal commitments and conventions that already exist and which remain unimplemented. Rather than go for the typical, paternalistic option of slipping on the legal glove, governments can get in touch with their feminine side and approach the issue from a gentler, kinder perspective: in tandem with civil society organisations, advocate for more responsible business practices. Easier said than done, but the preferred solution. As I mentioned in an earlier post, the Pakistan Ministry of Commerce has started a project to support export-focused businesses in obtaining SA 8000 certification. This follows from one of my recommendations for promotion of CSR in Pakistan (see GC Strategic Framework) and provides an example of how a Government can aid the business community in moving forward on CSR.

Bottomline: CSR should be mandatory not because the government says so, but because businesses realise the value in pursuing it.

Sunday, July 8, 2007

Social Enterpreneurship, Anyone?

One of the more interesting recent debates within the CSR context, is whether CSR has any relevance for the poor. In comparison with the 'Bottom of the Pyramid' approach championed by C.K Pralahad, which focuses on the plight of the poor and proposes that entrepreneurship can be used to extricate large groups from poverty, the whole CSR agenda and the Global Compact, have been criticised as being the rich man's club. Although the Global Compact strives to shed this tag, by encouraging SMEs to join it, the negative perception lingers.

I have for some time been advocating that the CSR and Bottom of Pyramid agenda can and should, converge. That was the central theme of the paper I presented at the launch of the Unleashing Entrepreneurship report in Pakistan in late 2005. At that time, there was a great enthusiasm for the report and its recommendations, which is a highly recommended read by the way, for it is an excellent amalgam of what I term as pragmology--the happy marriage of ideology, practicality and practice. The Pakistan launch of the report was a high-profile affair, with Dr. Ishrat Husain, the-then Governor of Pakistan's central bank presiding and Dr. Hafeez Pasha, Assistant Secretary General of the UN flying in. Dr. Husain's speech was--as always--perceptive and highlighted the potential in promoting entrepreneurship as a poverty reduction instrument. I roped in the Federation of Pakistan Chambers of Commerce and Industry (FPCCI)and the Small & Medium Entreprises Authority (SMEDA), to enter into a tripartite partnership with UNDP to encourage social entrepreneurship, targeting the rural areas. Although we managed to take the first step--publish an Urdu version of the report--other plans, including launching a pilot project for creating an e-marketplace for women, have not yet materialised.

By any standard, social entrepreneurship has not yet taken root in Pakistan. While organisations, notably Kashf Foundation and Acumen Fund, have promoted it, social entrepreneurship continues to hover near the periphery of policy and practice. Often confused with SMEs or not-for-profit endeavours, the very notion of being able to meet social needs through for-profit business models, seems alien to many. Oddly enough, there is a role for the Government in creating enabling environments for social entrepreneurship, but there is little evidence of the Government facilitating entrepreneurship. This is a theme that I intend to explore --and report on through this blog--when I speak at the Asian Forum for CSR conference in September 2007.

However, I am glad to report that young Pakistani entrepreneurs continue to explore opportunities for social entrepreneurship. The latest to join the party is Pani Ghar , which is a for-profit private sector initiative to resolve a public problem-access to clean drinking water in low income urban areas. Led by Ali Salman, whom I've known for nearly a decade now and who has never been short of ideas or initiative, Pani Ghar presents the perfect example of how for-profit business models can help meet the MDGs. Needless to say, the path to set up such ventures is strewn with all manner of obstacles, as Ali has found out.

Watch this space as we explore the trials and travails of existing and would-be social entrepreneurs in Pakistan.