[ SUSTAINABILITY ]
For many large companies , inclusive business models can be seen as a practical approach to implementing the “ Shared Value ” concept
profitability while also delivering social and environmental benefits . This dual focus on financial returns and social impact sets inclusive businesses apart from traditional corporate social responsibility ( CSR ) initiatives , which often treat social goals as secondary to financial performance . the bank has helped millions of people escape poverty , demonstrating that financial inclusion can be a profitable and scalable enterprise .
For many large companies , inclusive business models can be seen as a practical approach to implementing the “ Shared Value ” concept . Its authors Michael Porter and Mark Kramer argued ( HBR , 2011 ) that companies can move beyond corporate social responsibility and gain competitive advantage by including social and environmental considerations in their strategies .
The relevance of inclusive business to the SDGs cannot be overstated . With a particular focus on poverty reduction , these models directly contribute to SDG 1 ( No Poverty ) by creating income-generating opportunities for low-income communities . By integrating marginalised groups into their value chains , businesses can uplift these communities economically and improve their quality of life .
The concept of inclusive business has gained traction among policymakers globally . In 2015 , the G20 , recognising its potential to drive sustainable development , established a working group to develop a policy framework for promoting inclusive business practices . The move underscored the notion that inclusive business models are not just a private sector initiative but a significant component of global development policy .
FROM MICROFINANCE TO LARGE COMPANIES
Microfinance institutions offer a prominent example of an inclusive business model . These entities provide financial services to underserved populations , enabling them to start businesses , improve their livelihoods and contribute to economic growth . The Grameen Bank in Bangladesh , founded by Nobel laureate Muhammad Yunus , pioneered this model . By offering microloans to the poor , particularly women ,
ACROSS INDUSTRIES
Inclusive business models are not limited to any single sector . They are being successfully implemented across various industries , including agriculture , healthcare , financial services , energy , and more .
In agriculture , contract farming and fair-trade practices enable smallholder farmers to access global markets , secure fair prices and improve their livelihoods . Araku Coffee
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WEJ | September 2024