Business models to leave no one behind
Last May, we presented the report Inclusive Businesses and Spanish companies: time to leave no one behind, together with the CODESPA Foundation and the Business Observatory Against Poverty (Observatorio Empresarial Contra la Pobreza).
The conceptual framework assumes that an enterprise of the XXI century cannot continue to be as it has been until today. Necessarily, it should be more responsible of the impact it makes in society as well as conscious of its power to influence and the potential to respond to the challenges of society, especially to those affecting the most vulnerable groups.
It is obvious that we cannot fight against poverty without generating wealth. In the same way, we cannot generate an equitable society without promoting inclusion. Despite being able to tell significative successful stories fighting against poverty, we are clearly losing the fight against inequality. As the Report on Global Inequality states, in recent decades inequality has increased in almost every country at different speeds.
Another report of the OECD, “A broken social elevator? How to promote social mobility” warns that given the current levels of inequality and mobility of intergenerational income, it could take at least five generations, or 150 years, to a poor family kid to reach an average income of the OECD countries.
In Spain, the recent economic crisis has put in evidence that poverty is not a reality circumscribed in low-income countries. According to the AROPE report on the state of poverty, 12.9 million people in Spain continue to be at risk of poverty or social exclusion (27.9% of the population) and more of the 46% have little-owned resources to face a new crisis.
Our report posits whether inclusive businesses can contribute to a more inclusive economy. The answer is affirmative. Why? Why should companies care about the impact that goes beyond the strict generation of their benefits? It is in their interest, primarily and precisely, because it is profitable.
Not only they gain competitive advantages reinforcing their leadership position, ameliorating their brand reputation, mitigating risks or attracting and retaining talent, but also increase the innovative capacity they have, promoting the diversification of their products and increasing the value that it generates in front of the investors.
In the same line of argument, the report presents several opportunities linked with the Sustainable Development Goals (SDGs) that can generate a major inclusion for the Spanish society. In fact, the inclusive business can be a useful mechanism of the company to answer social challenges and contribute, from their economic activity to a more inclusive society.
The report presents various practical case studies and management tools, as well as it determines a series of conclusions and strategic recommendations to be able to take advantage of current opportunities that exist to generate value and accelerate business models that generate social impact.
We invite you to read the report and to participate in the next months with us in defining action plans to initiate economic activities that generate social impact.
Main photo credits: Moinikon, visualhunt.com CC BY-NC