The World Bank (2003), in a report titled Public Policy for Corporate Social Responsibility, states that
Corporate Social Responsibility (CSR) is the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve quality of life, in ways that are both good for business and good for development.
If this is what democratic countries want, then we have to question the role of the private sector in public policy. The difficulty arises when one accepts the notion that the public sector is quite complex. The issues and players differ from sector to sector (employment, health, education, justice, etc.).
What seems like an effective policy in one situation may be the opposite of what is needed in another situation. These contradictions and dilemmas face public-sector managers and politicians on a daily basis. Also, public-sector entities which operate on a local, provincial and national level can be structured and operate very differently from each other. There are just as many differences in the private sector.
Private sector companies are very different from each other. Some are locally focused, while others are provincially, nationally or internationally engaged. Companies can have different and competing interest which can increase the complexity of the private-public sector debate.
This does not mean that public-private dialogue is a critical avenue for the development and implementation of public policy. This is especially true when public policy can influence a corporation’s civic responsibility and influence its global competitiveness.
There are inhibitors to this dialogue. One is the beliefs held by both sectors. On the one hand, there are those who believe government should be run like a business. On the other hand, there are individuals who believe that the business community does not understand the complexities associated with public sector governance.
Patrick E Mentore (Thursday, February 9, 2012) states that a
Survey of Good Practice in Public-Private Sector Dialogue postulates that while policymakers and their professional advisers are responsible for policies and their implementation, they “do not have a monopoly on perspective, understanding, knowledge, and wisdom” (UNCTAD 2001:1).
While one might agree with this statement, it is also necessary to recognize that the private sector has as many competing interests as the public sector. Open honest communication is necessary to ensure that all interests and perspectives are heard.
Both sectors have to be empowered to fulfill their governance responsibilities in a sustainable and supportive manner. The public sector may feel more of a responsibility for persons who are marginalized or underrepresented because it is not driven by the bottom line. However, this obligation is not an excuse to avoid private-public dialogue.
Decision making is only as good as the voices which are heard, the comprehensiveness of the data collected, the attention paid to risks, and the desire for future success.
