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CHAPTER 3: ESTABLISH NETWORK MODEL

After establishing that a private sector network has opportunities to create value and fill unmet needs in your country, there are two next steps: establishing the network itself and determining what its initial activities should be. This chapter focuses on establishing the network model, including considerations like hosting arrangements, legal requirements, and initial funding.  While there is no one best model for all networks, there is a standard set of questions to address and the experience of other networks can be informative. The questions in this chapter will help set up a private sector network for success, ensuring it has the required structure and support for long-term sustainability and scale. This chapter and its associated resources can also be used to support the ongoing work of your network as it grows and evolves.

 

The resources in this chapter will help you answer the following questions:

  1. What are the mission and objectives of the network?

  2. What kind of initial organizational bodies can help launch my network?

  3. What are the key considerations to determine an appropriate hosting arrangement?

  4. What role can key private sector actors play in championing a network?

  5. What formal organizational structures should my network include?

  6. How do I formalize a governance structure and what are the key success factors and components?

  7. What are the different ways networks generate funding to support their activities?

  8. What partnerships should a private sector network form?

  9. How do I grow my membership base?

  10. How do I organize my membership base?

9. How do I grow my membership base?

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<<MEMBERSHIP PRINCIPLES>>

 

To ensure the credibility and transparency of the network, we recommend that all Member Networks:

  • Clearly articulate the requirements for members

  • Set clear expectations for their members, either applicable to all members or established for different types of members

  • Have a clear due diligence process for member to ensure they meet network and CBi principles and minimum standards

  • Use a consistent and transparent process to admit new members to the network

  • Partner with other key stakeholders in country, such as UN agencies, NGOs, other private sector networks, and relevant government departments

  • Have a broad and representative membership base, with members from different industries, and companies of different sizes and types

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<<EXPANDING YOUR MEMBERSHIP BASE>>

 

CBi Member Networks have different sized membership bases. Some networks, such as Cote d'Ivoire, have access to over 1,000 members through their host organization, while others, such as Haiti, have only 15 but also have links to other Chambers of Commerce and business associations to broaden their reach. Networks have utilized different methods for bringing in members, including approaching individual companies, partnering with major networks and associations in country, and leveraging their private sector champion relationships.

 

There are five key stages to growing your membership base, articulating your value proposition and engaging members

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<<MEMBERSHIP STRUCTURE>>

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While CBi networks take different approaches to structuring their membership, member categories typically include:

  • Members: All members of the network, which may include private sector actors, the government, NGOs, the UN, and civil society

  • Affiliated members or Advisors: Affiliated, formal partners of the network who contribute expertise and advice

  • Leaders: Members and advisors who participate in the governance and leadership bodies of the network

 

Different criteria are used by networks to determine member types, but can include willingness to do the following:

  • Pay membership fees (if applicable)

  • Attend a specific number of member meetings or industry group meetings

  • Provide an inventory of corporate assets to be used during a coordinated disaster response

  • Participate in specific planning, training, or simulations for disaster risk management

  • Provide specific expertise or knowledge to other members

  • Lead activities in a particular industry or topical sub-group

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<<MEMBERSHIP REQUIREMENTS>>

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Each Member Network determines its own requirements for prospective members. However, the Connecting Business initiative recommends that organizations that form part of a CBi Member Network agree not to engage in:

  • Manufacture, sale, or distribution of controversial weapons or their components, including cluster bombs, anti-personnel mines, biological or chemical weapons, or nuclear weapons

  • Violations of UN sanctions and the relevant conventions, treaties, and resolutions, or be included in UN ineligibility lists

  • Manufacture, sale, or distribution of substances subject to international bans or phase-outs, or wildlife or products regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora

  • Violation of human rights or complicity in human rights violations

  • Use or toleration of forced or compulsory labor

  • Use or toleration of child labor

 

A membership requirements policy will be necessary to ensure that potential members understand and adhere to these requirements, and you may also want to have a due diligence process in place to vet prospective members or for members to self-certify their compliance with both the network's and CBi's minimum standards and requirements.  You may also want to have a clearly defined process to remove members who fail to adhere to these standards.  Finally, you may consider checking prospective members against the UN's consolidated organizational sanctions list (https://www.un.org/sc/suborg/en/sanctions/un-sc-consolidated-list).

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<<ADMISSION PROCESSES>>

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Each network's membership structure and requirements will inform its admissions process for new members. Some key considerations in developing this process include:

  • Ensure members agree to the network's prescribed commitments and expectations

  • Gather all the information you have deemed necessary in one standard form

  • Ensure all members meet CBi's minimum standards, potentially through a due diligence process

  • If you are using membership fees (as discussed in Step 3), ensure networks understand the network benefits associated with the fee and commit to paying

  • Ensure members commit to upholding your network's principles and standards

  • Make sure you use a consistent admissions process for all members of the same type

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<<ENGAGING KEY ACTORS>>

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In Step 2 of this guide, you identified key private sector actors and networks/associations operating in your country. You also identified and engaged other key actors from the government, United Nations, NGOs, and civil society. These actors are a good place to start building the network's membership base.

 

Some potential ways to use this information to strengthen your membership base include:

  • Leverage the members of your Initial Working Group and other Private Sector Champions for advocacy, as well as to engage their private sector partners

  • Engage one-on-one with the large private sector companies you identified in Step 2, particularly those with large employee bases and strong reputations in your country

  • Identify and engage the major companies and actors in each industry group/sector relevant to your context. Ask yourself questions such as:

    • Who are the major telecommunication providers in my country?

    • Who are the major providers of food and water in my country?

  • Partner with other networks and associations you identified in your country in Step 2

    • For example: In Turkey, Saglam Kobi's partnership with the CSR association of Turkey has been credited with contributing to the growth of their membership base

    • In the Philippines, PDRF's partnership with the Philippine Long Distance Telephone Company following the 2013 super-typhoon Haiyan helped revive the partnership as a national platform for disaster management and has since helped grow the network to 66 member companies

  • Engage with government, UN, NGO, and civil society actors you identified in Step 2

    • Be sure to partner with the government's major bodies for disaster risk management

    • Also be sure to engage with major humanitarian bodies such as UN OCHA, other UN Agencies, and National Red Cross or Red Crescent Society

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<<ARTICULATING THE VALUE PROPOSITION AND ENGAGING>>

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After determining your membership structure, requirements, and admissions process; and identifying actors to engage and leverage, the next stage is engaging these actors and negotiating their involvement. The value proposition that you defined in Chapter 1 provides a good set of talking points to use with prospective members. In general, the more substantial the requirements to become a member of the network, the more compelling your value proposition will need to be.

 

When articulating the value of the network, be sure to include a description of:

  • The role of the private sector in disaster risk management

  • The purpose and value of a private sector network for disaster risk management

  • CBi and your involvement with the initiative

  • Stories of impact from other CBi networks

  • And most importantly: the benefits of participation in the network

    • If membership of your network involves a fee, be sure to emphasize what the rewards are for incurring this cost, and what this membership fee goes toward

 

Example member benefits from the Fiji Business Disaster Resilience Council:

  • Access to a network of private sector, government, international agencies, civil society, and NGOs to strengthen private sector’s disaster risk reduction, emergency preparedness, response, and recovery.

  • Opportunity to provide input and access to disaster risk reduction, business continuity planning, and disaster relief and recovery resources and tools.

  • Opportunity to provide input and access to a Council portal linking the private sector and other actors locally, regionally, and globally on disaster risk management.

  • Opportunity to take part in the Fiji government-led disaster management clusters

  • Opportunity to contribute to the review of the Fiji disaster management legislation act and plan, undertaken in 2016, and ongoing policy discussions

 

Other member benefits to articulate may include:

  • Access to a member portal that includes resources and best practices on DRM activities

  • Help to become more resilient as a company, which can lead to less downtime, less damage to company equipment, and less risk to employees

  • Information during emergencies to ensure contributions are targeted at priority needs

  • Alerts before and during emergencies to protect business operations and support to activate business continuity plans

  • Recognition locally and globally as a leading business on disaster risk management

  • Support to build resilience in your value chain

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<<EXAMPLES FROM OTHER NETWORKS>>

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CASE EXAMPLE: Fiji Business Disaster Resilience Council

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