Inclusive
business
Overview presentation –
January 2014
Overview
• About the WBCSD
• Inclusive business
 WBCSD model
 Business case
 Examples
• WBCSD & inclusive business
 Cu...
World Business Council for Sustainable
Development (WBCSD)
A CEO-led organization of forward-thinking companies that galva...
Inclusive business
Addressing the lack of reliable access to basic
goods, services, and income generation
opportunities at...
WBCSD model: going beyond philanthropy and CSR
New business
models

SUPPLY

Products and services
that meet the needs of p...
Business case
 Competitive advantage: market entry &
share in a rapidly growing market segments
 Security of supply: str...
Manifold examples from WBCSD members
•

•
•
•

•

•
•
•

Sourcing of raw materials from small-scale suppliers
SABMiller, S...
WBCSD & inclusive business: Current activities…
•

Illustrate best practices, lessons learned, success
factors to overcome...
… with the following partners…
 WBCSD Regional Network
partners
 Asian Development Bank

 Inter-American Development
Ba...
…building on a long history of activities
Doing business
with the poor:
A Field Guide

A business
guide to
development
par...
Latest focus: how to overcome internal barriers to scale?
Internal organizational barriers:
 Much less commonly acknowled...
Key internal barriers & solutions to overcome them
More information
• Inclusive business blog
www.inclusive-business.org
• Action2020 platform
http://action2020.org/business...
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WBCSD work in inclusive business targeting the base of the pyramid - Overview presentation - January 2014

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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.

Published in: Business, Technology

WBCSD work in inclusive business targeting the base of the pyramid - Overview presentation - January 2014

  1. 1. Inclusive business Overview presentation – January 2014
  2. 2. 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
  3. 3. World Business Council for Sustainable Development (WBCSD) 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
  4. 4. Inclusive business 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
  5. 5. WBCSD model: going beyond philanthropy and CSR New business models SUPPLY Products and services that meet the needs of poorer communities Successive upgrading leading to demand for goods and services Business development & Socio-economic benefit DEMAND Purchasing power Fulfillment of basic needs e.g. water and sanitation, access to energy, shelter, food, education, connectivity Local employment job creation , local markets and resilience to economic shocks
  6. 6. Business case  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
  7. 7. Manifold examples from WBCSD members • • • • • • • • 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 development Anglo 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
  8. 8. 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
  9. 9. … with the following partners…  WBCSD Regional Network partners  Asian Development Bank  Inter-American Development Bank  GIZ  Business Call to Action  BOP Learning Labs
  10. 10. …building on a long history of activities Doing business with the poor: A Field Guide A business guide to development partners Business for Development Promoting SMEs for Sustainable Development Inclusive Business Alliance with SNV Measuring Impact Framework Inclusive Business and the MDGs Inclusive Business in Latin America Business solutions to enable energy access for all Inclusive Business Challenge 2004 WBCSD-SNV Inclusive Business blog Video library Finding capital for sustainable livelihoods businesses 2005 2007 2008 Inclusive Business blog 2009 2010 2011 ICT: An enabler for inclusive business solutions 2012
  11. 11. 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
  12. 12. Key internal barriers & solutions to overcome them
  13. 13. More information • Inclusive business blog www.inclusive-business.org • Action2020 platform http://action2020.org/businesssolutions/inclusive-business-models • WBCSD contact point Filippo Veglio veglio@wbcsd.org Tel. +41 22 839 31 08

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