An article from Sustainability Investment News on the basis of a new WBCSD report, highlights the perceived role of business in poverty alleviation:
Almost half of the world’s population survives on the equivalent of less than $2 a day. And the gap between rich and poor countries continues to widen; the richest 20% of the world’s population control three-quarters of the world’s wealth, while the poorest 20% control just 2%.
The World Business Council for Sustainable Development (WBCSD), a global association of 200 companies dealing exclusively with business and sustainable development, has produced a report that sees in such dire statistics an opportunity to do business in new ways. The report, developed by the WBCSD Development Focus Area and entitled "Doing Business with the World--The New Role of Corporate Leadership in Global Development", finds that "companies can contribute to global sustainable development through their core businesses in a way that is profitable for the companies and good for development."
The key to alleviation of poverty is the creation of wealth, the report concludes, and business is a necessary part of the equation. By engaging with low-income segments of developing countries through direct employment and sourcing from low-income suppliers, companies can tap into a market that despite its poverty represents an estimated collective purchasing power of $5 trillion.
The World Business Council for Sustainable Development (WBCSD), a global association of 200 companies dealing exclusively with business and sustainable development, has produced a report that sees in such dire statistics an opportunity to do business in new ways. The report, developed by the WBCSD Development Focus Area and entitled "Doing Business with the World--The New Role of Corporate Leadership in Global Development", finds that "companies can contribute to global sustainable development through their core businesses in a way that is profitable for the companies and good for development."
The key to alleviation of poverty is the creation of wealth, the report concludes, and business is a necessary part of the equation. By engaging with low-income segments of developing countries through direct employment and sourcing from low-income suppliers, companies can tap into a market that despite its poverty represents an estimated collective purchasing power of $5 trillion.
It is a good thing that big business is coming on board in addressing the world's biggest problems. Social responsibility is not something only for governments, NGOs and philanthropists.
Expect some interesting developments in shaping this suggested partnership between governments, NGOs and business.
Hope that the really poor are not left out in the action.
