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This report explores how bilateral and multilateral donors can support business activity that contributes to sustainable development, particularly in developing countries. It argues that, by helping to create an 'enabling environment' for responsible business practices, donors can enhance the effectiveness of their aid and increase the contribution of business to poverty eradication. It is based on discussions at an international conference: ‘Development cooperation and corporate social responsibility: exploring the role of development cooperation agencies’, which took place in Stockholm on 22-23 March 2004.