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THE LOCAL GOVERNMENT IN SCOTLAND ACT 2003
COMMUNITY PLANNING: ADVICE NOTE 3
Involving the Private Sector
MARCH 2004
Introduction
The involvement of the private sector will be an important ingredient towards the success of the Community Planning process. Private Sector involvement will enable the Community Planning process to engage with private business in a collaborative way. It will allow perspectives and experiences from this sector of the community to be more widely utilised than they have perhaps previously. Whatever methods used to involve the private sector the objectives for their involvement in community planning partnerships should be mutually supporting - to ensure that businesses fully contribute to the well-being of local communities and, in turn, that the conditions exist for business to thrive and develop in that community thus benefiting the whole community.
Private Sector Diversity
It is important to recognise the diversity of businesses in terms of their size, nature and capacity. The term 'private sector' is generic and ranges from large corporate companies to small local businesses. As a sector it shares with public sector and voluntary bodies many strengths and interests beneficial to the Community Planning process and it is important that these are fully utilised, for example:
- Skills and expertise in particular areas such as finance or project management
- Energy.
- Focus and commitment to outputs.
- A view of the local economy.
- Perspective on the future.
- A particularly important contribution to regeneration activity within areas of disadvantage.
- Active interest in community issues in many areas.
The Federation of Small Businesses is actively involved in Community Planning groups and local rural partnerships across Scotland, reflecting the small business community's diverse range of interests and their involvement in moving communities forward. This can range from urban and rural businesses providing sustainable jobs and also extending advice, training and help within schools and communities. Working with communities is at the heart of the small business sector. Examples of their involvement are wide-ranging and include the knitwear company in Shetland which teaches local people with disabilities new skills to sell their own products, and seasonal tourism businesses which have diversified their activity to create year-round employment. For more information see: www.fsb.org.uk/policy/apu/devolved/scotland |
Engagement in the process
Research has shown that whilst the private sector is actively involved in the Community Planning process in some areas, in others it is less prominent. Although they are represented on several Community Planning partnerships, it is very seldom that they occupy a leading role. There can be no single template for their engagement and Community Planning partnerships should identify the most effective means of engagement. This may take varying forms, for example:
- As a service provider, perhaps running a vital service in a rural area.
- As existing employers, generating wealth in the local economy.
- In relation to their Corporate Social Responsibility role.
- As potential investors or developers.
- As a focus for community engagement and involvement.
- As a focus for health improvement for their employees.
- As a focus for addressing issues of equalities in their workforce and in the community.
Although there is not one template for private sector engagement work has been done by, amongst others, Scottish Business in the Community to look at basic principles for effective private sector engagement in local partnerships. The Scottish Executive has also carried out research in 2001 into the role of the private sector in Social Inclusion Partnerships, which outlined the key issues to be addressed in achieving better private sector involvement.
Shell has donated 20,000 each year for 3 years to Community Planning in Aberdeenshire and Aberdeen. Shell is particularly keen that the money is used in ways which engage local communities in local service planning and provision. In 2001/02 local rural partnerships across Aberdeenshire were invited by the Aberdeenshire Community Planning Partnership to apply for a grant to take forward a project in their area. Proposals were required to meet at least one of three criteria: - To involve rural communities in developing the ways in which local public sector providers consult.
- Engage with, and involve communities and people in Community Planning.
- To ensure that the Aberdeenshire Community Planning Partnership tests everything it proposes to do against active and informed community groups.
- To pilot the partnership's intention to develop Community Planning at a local level.
Four area partnerships were successful. For example, Buchan, Marr and Formatine area partnerships developed a joint proposal for "Planning for Real" events 5 in nine areas. In 2002/03 the funding was used to host local Community Planning events in three of the councils administrative areas. These events helped to raise awareness of Community Planning, amongst a wide range of bodies, and to discuss and agree appropriate structures for community engagement in this. The Community Planning partners supported the events. Alongside this funding, three further council administrative areas in Aberdeenshire received funding from the Scottish Executive to take forward similar work in their local areas in 2002/03. part of its longer term commitment to Community Planning, Shell is working with the Aberdeenshire Community Planning Partnership (and other partnerships in the North East) to ensure the wider social investment programmes it provides can meet the needs and priorities of local communities. For more information see
www.aberdeenshire.gov.ukwww.aberdeencity.gov.uk |
Business people, in common with those working in the public and voluntary sectors, have many demands placed upon them as they commit to running an efficient and successful business. To this end, it is often the case that bodies representative of businesses are best placed to provide a contribution to the Community Planning process. This also allows for a broader and more representative input and should be encouraged.
However, there are instances where individual businesses play a significant role in an area or have particular skills they can offer, for example, in strategy and visioning. It may be that the private sector will also be involved in a particular development or regeneration project over a fixed period of time. The Community Planning process should be flexible enough to allow for such business expertise to be captured, where the opportunity arises. Business brokers such as Scottish Business in the Community have programmes designed to lever business expertise into local partnerships and links with such organisations should be encouraged.
Stirling Business Panel was set up, and is jointly funded, by Scottish Enterprise Forth Valley and Stirling Council. In September 2001 representatives from local businesses were invited onto the panel. There are around 400 business representatives on the panel. The panel can be used by partner organisations for news and advice on local business concerns. The Panel is now seen as a useful channel of communication with a representative sample of local businesses in Stirling that can feed ideas and respond to issues arising from Community Planning and Local Economic Forum processes. For more information see:
http://www.stirling.gov.uk/index/business/business-advice/business-panel.htm |
The emphasis should be on encouraging private sector involvement in existing partnership frameworks, rather than creating additional or potentially conflicting layers of partnership. The most significant example here is the relationship between Community Planning and Local Economic Forums.
Local Economic Forums have been tasked with considering issues of local strategic importance and develop a local economic development strategy which is coherent with, and contributes to achieving the key national aims and ambitions articulated in " Smart Successful Scotland".
Forums will be an integral part of the Community Planning process in their areas and will provide the economic dimension of the Community Planning process. Although Forums should maintain a tight core membership, this should include significant private sector representation. It is envisaged that the Forums will be the main conduit for private sector involvement in the Community Planning process. However, as noted above the Community Planning process should be flexible enough to allow for other business expertise to be captured, where the opportunity arises.
Corporate Social Responsibility
The commercial role that companies play in our economy has a significant impact on the society in which we live. However, companies do not operate in isolation of society but are very much part of the fabric of society. Companies have roles and responsibilities to society and should seek to ensure that their impact on society is both positive and productive. Companies are increasingly aware of the importance of the health and well-being of the society within which they operate to the success of their business. Corporate Social Responsibility (CSR) is a set of values to which a company, of any size, defines and subscribes to, to help guide the way in which the company conducts its business. It can cover environmental practice, supply chain, employee relations, diversity, customers and markets, human rights, ethical investment and community investment. The principles of CSR apply to companies of any size and can be tailored to suit the size and nature of any business.
Companies can bring practical assistance and expertise to build capacity at a community level and support organisations striving to address local issues. The following are practical examples:
Simmers of Edinburgh works with the local community high school in Craigmillar to run a one-day Simmers Challenge bringing the world of work to bear relevance on the school curriculum. Employees from Simmers work with the first year pupils who create, produce, market and launch a new biscuit. Simmers have developed a strong relationship with the local school giving pupils an insight in to the world of work |
St Rollox Partnership in Springburn in Glasgow is a part of the Tesco Regeneration Programme to build on a commitment to open up new markets in areas of economic decline. Committed to creating a better place to live and work, the Partnership has achieved significant success since launch in November 1999. The Partnership was led by Tesco, working with other employers, the local community, and public agencies including North Glasgow College. The strategy focused on putting employability training at the heart of the initiatives for regeneration. A unique training programme defined clear progression routes into employment and today 65% of the staff at Tesco St Rollox are local people who were previously unemployed. The partnership is seeing the benefits of a strategy focused on generating greater wealth for the long term. |
Maximising Private Sector Participation
Finally, there are simple, practical steps, which all Community Planning partnerships can take to maximise participation from the private sector. Many of these steps will also help the participation of public and voluntary organisations:
- Meetings should be focused and as clear as possible on the role envisaged for business people.
- Meetings should be scheduled for times which are sensitive to business needs to encourage commitment and regular attendance.
- Use language that is accessible, involving and positive.
- Opportunities for private sector engagement should be simple with clear objectives, tasks, timescales and outcomes. Agreement on the time commitment expected from business people should be reached.
- Mechanisms other than formal meetings may be considered as a way of involving the business community, for example, workshops, briefing sessions or focus groups.
- Learn from what has worked and why - share the stories and success in practical information sources.
- Show that Community Planning is achieving more streamlined partnerships and less bureaucracy.
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