Madagascar is a country full of unique biodiversity and rich in natural resources. This natural capital is the lifeblood of the country – it is vital to many parts of the economy – including the tourism and agribusiness industries.

In the midst of this natural bounty, rapid population growth and a lack of adherence to regulations on extracting natural resources, such as timber or seaweed, are putting immense pressure on the natural environment – creating an urgent need for improved responsible natural resource management and environmental protection.

The US Agency for International Development (USAID) is responding to this urgent need by partnering with the Malagasy government and local and international businesses through the USAID Hay Tao project to develop a Corporate Social Responsibility (CSR) strategy and framework to guide local and international businesses that are interested in investing in activities that have a positive social or environmental impact.This CSR strategy - supported by the Ministry of Environment and Sustainable Development and the Economic Development Board of Madagascar - encourages private firms to identify needs in the communities where they operate and then to implement CSR activities that help address these specific social, environmental, health, or other needs.

“Corporate Social Responsibility is a way that businesses in Madagascar can give back by compensating for their greenhouse gas emissions or funding social or educational programming to benefit local communities,” said Jean Solo Ratsisompatrarivo, Chief of Party of USAID Hay Tao. “Most companies here are eager to contribute to the sustainable development of the country and give back – they just need help figuring out the best way to do this without affecting their bottom line. That’s where our policy work can help.”

In 2021, USAID Hay Tao funded a study on CSR best practices in Madagascar to support local companies with CSR projects that comply with national regulations. The study showed that companies in Madagascar engage in CSR to contribute to the country’s sustainable development and mitigate their company’s negative impacts on the environment. Factors that discourage companies from engaging in CSR include a lack of relevant skills, inadequate resources, and lack of incentives for including CSR in their work.

Environmental Advocacy through CSR: DHL ‘ahead of the game’

USAID Sustainable Environment and Economic Development Office Director, Agathe Sector, is interviewed for a segment promoting conservation on the "Karakory antsika jiaby" program as part of the DHL/USAID Hay Tao CSR partnership.

In Madagascar, DHL, the international logistics and transport company, is ahead of the game and is considered a model company for CSR. To offset its carbon emissions, it implements social and environmental programs, such as the GoTeach GoGreen initiative launched in 2021 in the Analamanga Region.

GoTeach GoGreen provides environmental education to a national audience in collaboration with USAID Hay Tao, the Ministry of Education, the social enterprise Bôndy, and the SOS Village d'Enfants association. GoTeach GoGreen has trained and raised awareness on environmental protection for more than 1,000 students and supervisors in participating schools in the Analamanga,Vakinankaratra, Menabe,Atsinanana and Analanjirofo Regions.

DHL also collaborated with USAID Hay Tao to promote the #SaveMenabe campaign on the national televised morning show called “Karakory antiska jiaby” which features local influencer Lorah Gasy. DHL funds this morning show, and devoted all of its May 2021 programming to the USAID Hay Tao-supported #SaveMenabe or #VonjeoMenabeAntimena environmental advocacy campaign. This campaign highlights environmental issues facing the famed Menabe Antimena Protected Area in western Madagascar that stem from the illegal cultivation of corn in protected areas, deforestation, and a breakdown in environmental governance.

The campaign featured representatives from USAID, the Ministry of Environment, Transparency International Initiative Madagascar, Durell, and local civil society organizations, such as Alliance Voahary Gasy and Sehatra Iombona hoan’ny Fanantany (SIF). Advocacy campaigns such as this are critical to educating people about environmental threats and inspiring change.

Social Conservation Enterprises vs Corporate Social Responsibility

In addition to supporting businesses' CSR activities and government policy, USAID Hay Tao supports the development of social and conservation enterprises (SCE). Unlike CSR, which is more of a compensation mechanism adopted by for-profit businesses who continue to maximize profits for external shareholders, SCEs apply commercial strategies to maximize improvements in human and environmental well-being - so improving biodiversity, human well-being are a part of their bottom line.

Examples of SCEs include agribusiness companies that work with local cooperatives and associations to develop transparent and sustainable green value chains, or ecotourism companies that invest in communities around protected areas while supporting biodiversity conservation and environmental education.

USAID works with the Ministry of Trade to promote a national platform for SCEs, bringing together the public and private sectors with civil society to establish a legal framework for social conservation enterprises, which includes tax incentives. For businesses looking to go beyond CSR and incorporate social and environmental benefits into their bottom lines -- the SCE route is an attractive option.

Boosting Tourism with Sustainability Certification

Travel restrictions due to the Covid-19 pandemic severely hurt Madagascar’s tourism industry, and now that borders have opened up, the tourism sector is in need of a boost. USAID Hay Tao is responding to this need by supporting hotels and tour operators in earning Green Globe Certifications - internationally recognized sustainability certifications that can help attract tourists who prefer environmentally friendly businesses, and even allow these businesses to charge higher prices for their services.

To obtain the internationally-recognized Green Globe certification, tourism businesses must comply with strict standards on environmental sustainability, protection and promotion of cultural heritage, and promotion of diversity and inclusiveness.

In the Menabe Region, Hay Tao helps hotel staff and managers implement these strict measures to obtain the Green Globe certification. To obtain the certification, these hotels are adopting practices, such as more responsible waste sorting, increased use of recyclable materials, partnerships with eco-responsible tour operators, use of green energy, and promotion of sustainability through communications materials at the hotels.

On the “doing good” business spectrum, obtaining Green Globe Certification falls between CSR and being a SCE. It is a badge of honor for the tourism and hospitality sector. But more importantly, more efficient operations, whether in water or energy, saves the companies money in the long run and attracts visitors to their hotels.

Given the importance of tourism to Madagascar’s economy, USAID Hay Tao is committed to supporting the “greening” of the sector to protect the environment, boost the local economy, and allow both domestic and international tourists to enjoy the unique biodiversity of Madagascar in a responsible way.

Author and Photo Credit: USAID Hay Tao