wbcsd work in inclusive business targeting the base of the pyramid - overview presentation - january...
DESCRIPTION
Many companies are engaging with low-income communities (the so-called base of the pyramid) in the developing world as a way to meet the company’s needs for growth and profitability, while addressing societal needs. The World Business Council for Sustainable Development (WBCSD) coined the concept of 'inclusive business' in 2005 to describe profitable business ventures that are also good for development. More specifically, inclusive business engages low-income communities across a company’s value chain – through direct employment; the development of suppliers, distributors and service providers from low-income communities; or through the innovative development and delivery of affordable goods and services that address unmet needs of low-income communities. This slide show provides an overview on the WBCSD’s work program in the area of inclusive business.TRANSCRIPT
Inclusive business
Overview presentation – January 2014
Overview
• About the WBCSD
• Inclusive business WBCSD model Business case Examples
• WBCSD & inclusive business Current activities and partners Latest focus: overcoming internal barriers to
scale Links to more information
A CEO-led organization of forward-thinking companies that galvanizes the global business community to create a sustainable future for
business, society and the environment
World Business Council for Sustainable Development (WBCSD)
Addressing the lack of reliable access to basic goods, services, and income generation opportunities at the base of the economic pyramid (BOP) is one of the key development challenges of our times…and a significant business opportunity
Inclusive business solutions…
Produce affordable goods and services that meet basic needs
Engage local labor and entrepreneurs in supply chains and distribution channels
Enable access to energy, communications, finance, insurance, etc.
Source raw materials from small-scale producers
Increase the size of the BOP’s wallet
Inclusive business
Business development
& Socio-economic
benefit
DEMAND
Successive upgrading leading to demand for goods and services
Purchasing power
Purchasing power
Local employment job creation , local markets and resilience to economic shocks
SUPPLY
Products and services that meet the needs of poorer communities
New business models
New business models
Fulfillment of basic needse.g. water and sanitation, access to energy, shelter, food, education, connectivity
WBCSD model: going beyond philanthropy and CSR
Competitive advantage: market entry & share in a rapidly growing market segments
Security of supply: stronger and more productive suppliers to secure reliable access to resources
Expanding the labor pool: access to appropriately skilled and more cost effective local labor
Innovation: new ways to provide goods and services with potential for reverse innovation in more developed markets
License to operate: contribute to social cohesion and enhance reputation as a partner of choice
Business case
• Sourcing of raw materials from small-scale suppliers SABMiller, SC Johnson, Natura, Unilever, Coca-Cola, PepsiCo, Mondi, Bayer, ITC, Nestlé, Monsanto
• Innovative distribution models Coca-Cola, Unilever, P&G, Nestlé
• Investment in local enterprise developmentAnglo American, BHP Billiton, BP
• Access to energy and water Siemens, GDF SUEZ, Philips, Grundfos, ABB, Eskom, Schneider Electric, Greif
• Clean cooking fuels Novozymes, Shell
• Financial transactions via mobile phones Vodafone, Nokia
• Affordable housing CEMEX, Lafarge, Holcim
• Food fortification BASF, DSM, Unilever, Nestlé, P&G, AkzoNobel
Manifold examples from WBCSD members
WBCSD & inclusive business: Current activities…
• Illustrate best practices, lessons learned, success factors to overcome internal & external barriers to scale
• Develop toolkits (training programs, webinars, etc.) to support awareness raising and implementation by company managers
• Apply the principle of “Think global, act local” by catalyzing action on the ground in collaboration with the WBCSD’s Regional Network partners Executives showing & telling locally Engaging multilateral development banks & policymakers Building and/or strengthening “hubs” that can kick off and
implement local working groups & initiatives with the support of partners
WBCSD Regional Network partners
Asian Development Bank
Inter-American DevelopmentBank
GIZ
Business Call to Action
BOP Learning Labs
… with the following partners…
Doing business with the poor: A Field Guide
Finding capital for sustainable
livelihoods businesses
A business guide to
development partners
Business for
Development
Promoting SMEs for
Sustainable Development
Inclusive Business
blog
Measuring Impact
Framework
WBCSD-SNV Inclusive
Business blog
Inclusive Business
Alliance with SNV
Inclusive Business Challenge
Inclusive Business in
Latin America
Inclusive Business and
the MDGs
2005 2007 2008 2009 2010 2011
Video library
2004 2012
ICT: An enabler for inclusive business solutions
Business solutions to
enable energy access for all
…building on a long history of activities
Latest focus: how to overcome internal barriers to scale?
Internal organizational barriers: Much less commonly acknowledged or discussed Solutions lie within direct control of companies
Study launched in November 2013: builds on hands-on experience of a dozen WBCSD members: CEMEX, Grundfos, ITC, Lafarge, Masisa, Nestlé,
Novartis, Novozymes, SABMiller, Schneider Electric, The Coca-Cola Company, Vodafone
Contribution to the WBCSD’s Action2020 platform Focused on scaling up business solutions to
sustainability challenges
Key internal barriers & solutions to overcome them
• Inclusive business blogwww.inclusive-business.org
• Action2020 platformhttp://action2020.org/business-solutions/inclusive-business-models
• WBCSD contact pointFilippo Veglio [email protected]. +41 22 839 31 08
More information