1. 0
Building the Capacity of
Pakistan’s Business Sector to
Benefit from Dividends of Peace

2. 1
1. Introduction
The business sector in Pakistan, as elsewhere, has an intricate and complex relationship with
peace and conflict. Research undertaken by Alert in Pakistan shows that businesses across the
country are suffering heavily from a loss of physical and social capital resulting from the
conflict. In extreme cases, this is leading to the relocation of businesses away from areas
affected by conflict – and even out of the country altogether. Yet businesses can also be
propagators of conflict because of their failure to consider the impact of their practices on
communities. Research conducted by International Alert in 2012 showed that SMEs and CoCs
are keen to improve their business practices and become more involved in peacebuilding. They
are also very intrigued by what practical benefits (such as reducing business costs and
improving profits) conflict sensitive business practices might have for them. However, SMEs
and CoCs have very limited understanding of what conflict sensitive business practices means,
and there is a large capacity gap in terms of their ability to deliver on even basic aspects of
corporate social responsibility. Most of the chambers or businesses affiliated with the chambers
do not have a framework for Conflict-Sensitive Responsible Business or Conflict Sensitive
CSR activities. In addition, despite their interest, SMEs are uncertain as to what they can
actually do to contribute to peacebuilding in Pakistan.
Plural Business Partnerships for Peace:
With the support of EC, International Alert has been implementing the Plural Business
Partnerships for Peace Project in Pakistan since 2012. The Plural Business Partnerships for
Peace in Pakistan project aims to strengthen the peacebuilding impact of the EC and Member
States (MS) through support to plural business partnerships and by building the capacity of the
private sector to support community cohesion, promote business across conflict divides, and
advocate for conflict-sensitive business practices. The project’s objectives are:
• To support community cohesion and resilience to radicalisation through piloting
conflict sensitive business practice
• To build peace across conflict divides by strengthening and broadening business-to-
business peacebuilding partnerships
• To support strategic implementation of sustainable, plural business partnerships for
peace in Pakistan
• To engage the private sector in dialogue on policy recommendations for responsible
business practices and advocate for these recommendations at a national platform
The project will achieve the overall objectives by building the peacebuilding knowledge and
capacity of the business sector in Pakistan to adopt, implement and advocate for conflict-
sensitive business practices.
In order to achieve the objectives of the project, International Alert and London School of
Business and Finance have worked jointly on the conceptualization, development and delivery
of a capacity building training for the business sector in Pakistan. The aim of this course is to
provide participants with an innovative understanding of how to build mutual trust and manage
conflicts among a broad range of stake-holders, thereby maximising profits.
Key objectives of the course were to enable participants to:
• Understand the main concepts, approaches and business practices that will enable them
to enhance their profits
• Get acquainted with conflict analysis methodologies to help them understand conflict
dynamics
• Think of strategies to bridge existing divides, and mitigate potential risks

3. 2
• Design a sustainable business model to implement in their own business
2. Curriculum Development and Delivery:
Training Curriculum:
The training curriculum was developed through a series of discussions between LSBF and
Alert’s team and brings together LSBF’s expertise on management and business skills and
Alert’s expertise on conflict-sensitivity, conflict analysis and promoting responsible business
practices.
The training course was delivered through three modules:
Module 1: The Development of Sustainable Business Models
Module 2: Applying Conflict Sensitivity
Module 3: Leadership Practices for Organizational Change
Learning Outcomes:
The course was designed to enable participants to:
• Be familiar with how the design of work has evolved in the developed world and can
apply that understanding to their own workplaces with a view to making improvements.
• Understand how they can promote cooperation over competition for the benefit of their
businesses and the wider community.
• Be familiar with some of the main business improvement methodologies and have
explored how they can be applied to their business operations.
• Have a shared understanding of the concept of conflict and the (potential) role and
responsibilities of business to support peace through their internal practices as well as external
CSR-and advocacy-led initiatives
• Be familiar with some of the major conflict sensitivity concepts of the development
sector and developed a sense of applying the same for their business operations as well.
• Have an understanding of the reinforcing relationship between businesses and conflict
and have been familiarized with the technique of conflict mapping to identify the connectors/
dividers in specific conflict situations
• Be confident in identifying new approaches to reduce conflict risks and to increase
peace opportunities through their business operations and CSR initiatives
• Understand the barriers they are likely to meet in trying to bring about change and the
role effective leadership plays in achieving it. They will know how to use affinity diagrams
and interrelationship diagraphs to unravel the key factors within a complex situation
Training methodology:
The trainers used experiential learning and reflection to develop the skills, knowledge and
competencies of participants with regard to conflict sensitivity and responsible business
practices. The course methodology used the breadth and depth of experience among
participants and course facilitators to reach a shared understanding of how SME’s can address
conflict divides within their operations and immediate communities.
Training delivery:
To pilot test the curriculum designed, three trainings on the ‘Building the Capacity of
Pakistan’s Business Sector to Benefit from Dividends of Peace’ were organized in Pakistan in
September, 2014. The trainings were conducted at the following locations:
 Rawalpindi, Peal Continental Hotel, 4th
to 6th
September 2014

4. 3
 Islamabad, Marriot Hotel, 8th
to 10th
September 2014
 Karachi, Marriot Hotel, 12th
to 14th
September 2014
Trainers’ profile:
The training was conducted by Andy Murcott and Graham Rabone from LSBF and Dr. Markus
Mayer and Dr. Haris Qayyum from International Alert.
Dr. Markus Mayer has extensive experience of working on issues related to poverty and to the
economic dimensions of conflict, with a focus on youth integration, employment in post-
conflict situations, conflict-sensitive development programming and business interventions. He
has a Ph.D in Development Geography from the University of Heidelberg on youth conflict
and development planning, and co-edited “Building Local Capacities for Peace: Rethinking
Conflict and Development in Sri Lanka” (Macmillan 2003) and “The Challenge of Youth
Unemployment in Sri Lanka” (World Bank-ILO 2010).
Andy Murcott has significant experience in management consulting, which has seen him design
and deliver training to senior management, team leaders and specialists. His educational past
is as impressive as his work background: Andy holds bachelor’s degrees in Business Studies
and Mathematical Sciences, and a master’s in Operational Research and Performance
Management. After passing the latter with distinction, he was awarded membership of Beta
Gamma Sigma, the international society for collegiate schools of business in recognition of
high scholastic achievement. He has also been published numerous times.
Graham Rabone brings with him a wealth of experience in crisis management and negotiation,
working everywhere from the USA and the UK, to Africa and the Middle East. Throughout his
career, Graham has always been very active in the development and implementation of new
procedures, working to improve efficiency and organisation. His extensive and varied
experience has made him highly sought-after for training conferences and has brought him
many commendations, including accreditations from international organisations.
Dr. Haris Qayyum has over 11 years of experience in corporate, agriculture and development
sectors in Pakistan. He previously worked for international NGOs such as CRS, Plan
International, Oxfam and Food and Agriculture Organisation of the United Nations (FAO). He
has also been deputed to government on various senior level roles by the United Nations to
bridge the gap between policy and practice
Participant Selection:
The training was attended by 70 participants,
majority of whom ( 74 %) were business leaders
from local SMEs and corporates representing
various sectors. In addition a few additional
participants from academia, civil society and
government also attended the training. Business
reps were selected through a nomination and an
application process with the support of Pak- Afghan
Chamber of Commerce, UN Global Compact –
Pakistan Chapter and Local chambers of commerce.

5. 4
3. Pre and post Evaluation
A pre and post perception was designed and administered during the training.
Pre-evaluation:
The purpose of the pre evaluation was to capture from the participants:
 What CSR/philanthropy activities are you engaged in?
 What are the top three conflicts in your geographic area and how does it affect your
business?
 What could be potential opportunities to establish peace in your area that would also
benefit your business?
These questions were then further discussed during the training sessions. The pre evaluation
questions helped set the stage for the key questions to be answered during the training. From
the discussions/training, a few key themes/issues emerged:
 As shared by most of the participants from the business sector, their main involvement
had been in charitable activities, supporting education related initiatives. The trend was
consistent for participants during the three trainings.
 Participants identified a range of conflicts in their geographic area. However, a majority
of them did not elaborate on how it affected their business and focused on
national/macro level issues as opposed to very local level conflicts. The lists of conflicts
highlighted by the participants also did not show a clarity in analysing and
differentiating between the causes, actors and consequences (leading to further
conflicts). The participants identified the following as the key conflict issues:
 Law and order situation in the country, which also discourages international
investment
 Unstable policies
 Political and religious conflicts
 Ethnic and tribal conflicts
 Hindrances caused by bureaucratic practices
 Energy crisis
 Discrimination by media
 Non-availability of basic facilities for businesses
 Economic and social disorders
 Similarly, in response to what potential opportunities could establish peace in their
areas that would also benefit their business, the participants focused more on
macro/national level issues and solutions which are more likely to be initiated by the
state or development projects. Some opportunities identified were:
 Improved law and order
 Improved local policing
 Establishment of neighbourhood care committees
 Engagement of political parties, religious leaders and minority groups
 Economic development without discrimination; skills development and
employment generation, particularly in conflict-affected areas such as
Baluchistan.
 Provision of basic services ( education and health)
 Incentives to attract businesses to Baluchistan
 Regional dialogue to promote bilateral relations
 Continuation of democracy.

6. 5
Post Evaluation:
The purpose of the post evaluation was to gauge the learning
that the participants gained and asses how the curriculum
should be improved. Questions asked were:
 What points the participants found most important
and why
 What points needed more clarification
 Which sessions did they like the most and which they
liked the least
 What suggestions did the participants have to
improve the course ?
 What key insights did they gain from the workshop ?
 How will they use this information?
Key Insights and Learning Points
Overall the training received a very positive feedback from
the participants. The participants found the training to be very
insightful and relevant to the context that they operate in and
issues that they face. They were quite keen to implement the
learning in their own organization and looked forward to a
platform on which they can approach the trainers for advice
on these topics.
The participants shared their own experiences how their
businesses had been dealing with conflict issues. The
workshop provided an opportunity to exchange opinions and
learn from each other’s experiences and perspectives. The
importance of team building and leadership was pointed out
as a key component in encouraging change and creating and
achieving win-win situations in organizations.
As shared by the participants, the key learning points from
the workshop for them were:
 Understanding the role that businesses and private
sector can play in peacebuilding through case studies,
local examples, stakeholder analysis, discussions and
group activities
 Identifying the potential conflicts among different
stakeholders in a business and finding out ways to
mitigate the adverse impacts of such conflicts
through better communication and management
 Realising the importance of the structural causes of
conflict and gaining tools understand the ways to
operationalize conflict sensitivity in business
practices.
“Day 1 and Day3 were an eye opener and a great food for
thought. It happens that many times when we are so involved
I) Case Study ONE
The group presented on the case
study of marble extraction in the
outskirts of Baluchistan. One of the
companies (extractor and investor) in
the business came into an agreement
with a main local tribe in which the
tribe would provide them with space
or land for extraction, whereas the
company would do the machine
installation, labour placement,
licencing and more. The main tribe
would receive royalty in return.
However, the main tribe did not bring
to notice of the company the
existence of sub-tribes in that area
who were excluded from the whole
process. Soon the sub-tribes started
creating problems as they were not at
the receiving end of the process,
hindering the smooth running of the
company operations. Consequently,
the company instead of restricting
contact with the main tribe also
turned towards the sub-tribes and
offered them royalty.
II. Case Study TWO:
A local auto company was set up in
interior Sindh. The owner expected
that the company would attract local
feudal lords in the area and create
issues for his business so he took
them as shareholder with 2.5%
sharing in profit. This provided the
local feudal lords dignity and respect
as Board of Director of the company
and profit against no physical efforts
or monetary contributions.
Additionally, the supporters of the
feudal lords were encouraged to
work at the company ultimately
leading not only to greater profits but
also minimized security and union
concerns. This example highlighted
the significance of engaging the most
important indirect stakeholder in the
area for sustaining the company
operations.
DEALING WITH
CONFLICTS

7. 6
in doing what we are doing, we forget to keep an eye on the big picture. That’s where the
problem starts. So a quick flashback on the history was a nice way of refreshing how other
have done it.“
“It would be really helpful to keep the conflict-sensitivity into consideration. SMEs need
more to focus on shared problems and to solve them rather than compete with each other,
particularly which ends up in harming others.“
Suggestions
 Adding more CSR case studies from Pakistan would further help the trainees to
understand the concept and develop ideas.
 More examples on how the business sector can integrate peacebuilding in their
policies and strategies with regards to CSR.
 Further clarification and focus is needed on the Do No Harm Framework, the role of
arbitrator in conflict resolution and effective ways of investing towards a successful
business.
 It would be useful to get the participants to design their own CSR strategy based on
their experiences.
 Sessions on negotiation skills, effective utilization of human resources, investment in a
start-up business would be helpful for the participants.
 Training should be spread to more number of days while reducing the number of hours
each day. This way more audience could be attracted as it is rather difficult to sacrifice
a full-day for the training.
 The training should also be publicized to attract participants from diverse backgrounds.
Basic agenda of the training should be shared with the nominated participants prior to
the training as many did not have a clear idea about the objectives and learning
outcomes of the training. Communication gap was also a challenge in some cases and
should be dealt with in the future.
Content Relevance to the Training
2.33
9.3
58.14
30.23
Content relevance to the training
Poor Satisfactory Good Excellent

8. 7
Relevant Experience of the Trainers
Follow-Up Actions
Forming a Community of Practitioners:
The participants from the three trainings expressed great interest in follow up activities and
opportunities to continue to engage with the trainers and further work on the theme. A
Facebook group has been created titled ‘CSBP trainings’ to connect the trainers and
participants of all three trainings on one platform. Updates and relevant information will be
posted on the group page to encourage the participants to have discussions and stay updated to
issues related to conflict sensitive business practice.
The link to the Facebook group is as follows:
https://www.facebook.com/groups/Cspbtrainings/
Alert and LSBF are also exploring the formation of an online Forum where the participants
can engage in relevant discussions and share their experiences and best practices.
Revision of the curriculum and exploring further opportunities:
A de-brief session was organized for the trainers to review the feedback from the training.
Based on the discussion, the trainers are now in the processes of revising the curriculum.
Based on the positive feedback and the success of the trainings, both Alert and LSBF are quite
keen to further explore the possibilities of rolling out this training in other parts of Pakistan.
4. Media Coverage
The trainings in Rawalpindi, Islamabad and Karachi were covered both in electronic and print
media. Waqt News, a national news television channel, aired a video clipping of the CSBP
training organized in Islamabad. The video highlighted the objectives and purpose of the
training and the presence of participants from diverse business and economic backgrounds.
In print media, press releases of the trainings were published in both English and Urdu
newspaper. Press release and photos appeared in the following newspapers:
0.00 4.65
27.91
67.44
Relevant experience of the trainers
Poor Satisfactory Good Excellent

9. 8
• The News
• Daily Times
• Daily Dunya Newspaper
• Roznama Intekhab
News clippings are attached in Annex 2.

10. 9
Annex 1: Conflict Maps

11. 10

12. 11

13. 12

14. 13
Annex 2:
Media Coverage
Figure 1: The News (Page 14) Thursday September 11th 2014

15. 14
Figure 2: Daily Times (B2) Thursday September 11th 2014

16. 15
Figure 3: Daily Dunya News Thursday September 11th 2014

17. 16
Figure 4:Roznama Intekhab Monday 15th September 2014