Would you like to do business internationally in a sustainable way? You are not alone. RVO advisors can help you get off to a flying start with ICSR. So is advisor Shanti Pahladsingh, she helps entrepreneurs from all kinds of companies to realize their international sustainable ambitions. Entrepreneur Monique Ansink of Jumbo Cargo Products, in turn, has made a conscious decision to optimally weave ICSR into the company’s DNA.
“Make sure your foreign chain is transparent. After all, consumers are critical and want to know where a product comes from. The more transparent your chain, the better your image and the greater your market opportunities.”
Shanti Pahladsingha
Advisor International Sustainable Entrepreneurship
People and Planet as key stakeholders
Jumbo Cargo Products sells certified cargo securing products, such as lashing straps and tow ropes. Monique said: “We once started doing business internationally because we operate in a niche market. We are now active in no fewer than 24 countries.”
In order to produce close to the source of the raw materials, including natural rubber, the company opened its own production location in Vietnam in 2010.
“At that moment, the Vietnamese employees suddenly became our colleagues. We wanted to create the same working environment for them as for our colleagues in the Netherlands and then integrated the P for People into our policy,” said Monique, “We then included the P for Planet as an important stakeholder in our company. This helps to define the right frameworks within which, for example, innovation takes place. For example, with every product introduction, it is first tested whether this benefits the planet.”
Ambitious mission
Jumbo Cargo Products is doing well in the field of ICSR. Monique: “Because we are affiliated with Amfori BSCI, an organization that focuses on sustainable and fair trade, we are periodically checked on our ICSR performance. For example, when it comes to safe working conditions, health insurance, the right of participation, a living wage, and the elimination of corruption, discrimination, and child and forced labor. We achieved the second-highest score last time, we are proud of that!”
Jumbo Cargo Products has now derived the most important business objectives from the 17 Sustainable Development Goals (SDGs) of the UN: “We focus on 3 SDGs ourselves: gender equality, fair work, and economic growth and responsible production & consumption. Our mission is to create 300 future-proof jobs, which are filled by at least 70% of women. In addition, our main stakeholder, the earth, is leading in innovations. Not all countries and consumers are ready for this, but more and more will follow step by step.”
Transparent chain yields profit
Established ICSR policy does not only apply to your own factory but to the entire chain, Monique emphasized: “First we put our own factory in order, step 2 were our suppliers. We are now also trying to reach their suppliers.” Shanti agreed with the importance of chain transparency. “The consumer is becoming increasingly critical. They want to know where a certain product comes from. The more transparent your chain, the better your image and the greater your market opportunities.”
“The customer judges you on your ecological footprint … and so ICSR ultimately yields a profit,” said Shanti. Monique agreed: “IMVO delivers benefits for employees, stakeholders, and the planet. In addition, employees are more driven by inspiring CSR goals than by a flat sales target. Satisfied employees are essential for a successful company.”
Tailor-made advice to enable international growth
Not every company has come this far with international corporate social responsibility, or ICSR. “But whether they are experienced or not: RVO is there to support entrepreneurs and to think along,” said RVO advisor Shanti, “I make companies that are not yet involved in ICSR aware of the importance and impact of this on their market opportunities. For example in the field of energy use, recycling, or local personnel policy”. In doing so, Shanti looks at what suits the specific entrepreneur: “Advising on ICSR is custom-made”.
Shanti gave a successful example: “Tony’s Chocolonely approached us about entering the American market in a sustainable way. At such moments, I match customer demand with our RVO tools. I look at what is appropriate, draw their attention to this and put them in touch with the right authorities and government officials – in this case, the DGGF, the Child Labor Foundation, the Orange Trade Mission Fund and organizers of a US trade mission”.
With Shanti’s advice, Tony’s went on a trade mission and made use of available funds. This allowed the company to grow in the US.
Sparring with ministers at the National Export Event (NEX)
Shanti also spoke to a company that wanted to import resin and gum from Somalia. “I advised them to go through the CSR Risk Checker, a free risk analysis tool. This revealed 16 risk factors. I, therefore, recommended the ICSR voucher, which they could use to obtain external advice at a reduced rate. For example, to set up a more transparent chain. I also put them in touch with the Dutch embassy to spar.”
The latter is also possible at the annual National Export Event, NEX, as Shanti emphasized: “There you will find many ambassadors and consulates with whom you can speed dating under one roof. Very valuable for an entrepreneur.” Monique agrees: “During previous NEX editions, we had very good conversations with embassies, which led to important organizational insights.”
NEX will take place this year on October 12 in Nieuwegein. Monique will be a speaker and Shanti will present to spar with entrepreneurs about international sustainable business.
Flying start with tools, subsidy, or a loan
Shanti: “RVO offers various ICSR tools to make a flying start. There are, for example, the e-learning International Corporate Social Responsibility in China” and the podcast series No Harm – Do Good. In it, you hear ICSR stories from fellow entrepreneurs … very inspiring.” Monique: “We used the WBSO subsidy to optimize our innovation process and to make our Vietnamese factory CSR proof.”
Another supporting ICSR tool is the DGGF quick scan with which a loan can be applied for. Shanti: “SweepSmart is a company that took advantage of this. CEO Silvia de Vaan developed a treadmill system in India for the efficient sorting of waste on waste heaps. With the loan obtained, she was able to determine whether the system would be cost-effective and practical.” With positive results: it now has several well-functioning sorting stations in India and Indonesia.
“You meet relevant business partners and government officials on sustainable trade missions. This is especially useful for women who want to do business in countries where this is less common.”
Shanti Pahladsingha
Advisor International Sustainable Entrepreneurship.
With the Royal House in Vietnam
Trade missions are also very valuable, as Shanti emphasized: “Matchmaking with relevant business partners and government officials is especially useful for women who want to do business in countries where this is less common”. Monique has been on two trade missions herself and it has been of great benefit to her: “In Vietnam we signed the cooperation agreement with our Vietnamese (female) shareholder, in the presence of our king and queen. That has certainly reinforced our collaboration.”
Monique has a tip for Dutch entrepreneurs with sustainable international ambitions: “Just do it! Dare, go on a journey and start. Because it is precisely through international business that we can make a positive contribution to planet and people. That gives us a lot of satisfaction!”
Published on: 14 July 2022, Source: RVO
https://www.rvo.nl/praktijkverhalen/optimaal-internationaal-duurzaam-ondernemen-uiteindelijk-levert-het-winst-op