Professional Documents
Culture Documents
The views expressed in this paper/presentation are the views of the author(s) and do
not necessarily reflect the views or policies of the Asian Development Bank (ADB), or
its Board of Directors, or the governments they represent. ADB does not guarantee
World Business Council for
the source, originality, accuracy, completeness or reliability of any statement,
Sustainable Development information, data, finding, interpretation, advice, opinion, or view presented, nor does it
make any representation concerning the same.
Business around the world clearly understands that poverty and inequity remain
critical challenges for both sustainable development, and for local and global
stability. Meeting the basic needs of a growing and increasingly urbanized
population in developing countries - as well as the aspirations of their growing
middle classes - will increase the demand for energy and natural resources.
There is no longer a choice between economic growth and the well-being of our
societies and environment: they are interdependent. If we do not make sure we
have both, we risk ending up with neither. Solving the seemingly conflicting
imperatives of improving living standards of the world's population, while
preserving the environment, requires an urgent transition to a more inclusive,
low-carbon and resource efficient economy.
• First, business cannot succeed in societies that fail. Stable and prosperous
societies make for better business opportunities.
• Secondly, by proactively addressing socio-economic and environmental
concerns, companies will be able to better manage their risks and thereby
underpin their license to operate, innovate and grow.
• Thirdly, the transition to a more sustainable world represents a significant
business opportunity due to corresponding investments in infrastructure and
technology by both governments and private entities.
• Finally, developing inclusive business models helps companies build
positions in tomorrow's markets.
Just as “inclusive business is interesting for companies because it can offer new
opportunities for innovation, growth, and competitiveness at the same time as
positive social and development impact; it is interesting for bilateral and
multilateral donors, foundations, governments, and civil society organizations
because it has the potential to drive development impact in self-sustaining, self-
multiplying ways that do not require continuous infusions of grant funding. And it
is interesting for the poor because it brings greater access, choice, and
opportunity in their lives and futures.”1
1
Jenkins, Beth and Eriko Ishikawa (2010). “Scaling Up Inclusive Business: Advancing the Knowledge and
Action Agenda.” Washington, DC: International Finance Corporation and the CSR Initiative at the Harvard
Kennedy School
WBCSD page 6
The WBCSD’s online case study library2 contains detailed information on how
some companies are implementing inclusive business ventures, for example:
The WBCSD identified three factors which help build successful inclusive
business models: focus, partner, and localize.3 In essence, companies need to:
5
World Bank “Doing Business” database, at www.doingbusiness.org
WBCSD page 6
goods and services tailored to local needs and at locally affordable prices.
However, developing country SMEs are often unable to fulfill their potential
because of inadequate skills and capabilities; poor or obsolete infrastructure and
technology; unfavorable regulatory frameworks, and difficulties accessing
finance.
6
See www.wbcsd.org/web/ibchallenge.htm
7
See www.wbcsd.org/web/measuringimpact.htm
8
See www.inclusivebusiness.org
WBCSD page 6
LITERATURE
A Business Guide to Development Actors: Introducing company managers to the
development community World Business Council for Sustainable Development /
International Business Leaders Forum (2004) Geneva, Switzerland
World Business Council for Sustainable Development online case study gallery:
www.wbcsd.org/web/dev/cases.htm