The practice of responsible investment principles in larger scale agricultural investments: Implications for corporate performance and impact on local communities

William Speller, Hafiz Mirza & Grahame Dixie

This paper presents the findings from a field-based survey on the conduct of agricultural investment at 39 large-scale, mature agribusinesses in sub-Saharan Africa and South East Asia, focusing in particular on their approaches to social, economic and environmental responsibility. The objective is to generate first-hand, practical knowledge of the actions, behaviour and experience of these investments and the resultant positive or negative outcomes for surrounding communities, host countries, other stakeholders and the investors themselves. The lessons learned and better practices identified are intended to inform the work of government bodies, investors, NGOs, development agencies and other institutions that promote responsible investment in agriculture. On balance, the investments studied have generated positive socio-economic benefits for surrounding communities and host countries. But the results were mixed. There was a wide range of outcomes of these investments in terms of their socio-economic and environmental impacts, their broader impact on the host country, and the operational and financial success of the investment itself. The diversity of the experiences and impacts of investments studied suggests that a wide range of factors influence the outcomes of an agricultural investment. Those factors are often context specific. The challenge is to understand how agricultural investment can be conducted in a responsible and sustainable manner which maximizes the associated benefits and minimizes the potential risks.

Document type:The practice of responsible investment principles in larger scale agricultural investments: Implications for corporate performance and impact on local communities (716 kB - pdf)