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PRME/GIM Webinar Agenda 5 May 2011 Presenters: Sahba Sobhani, Program Manager GIM, UNDP: Presenting UNDP - GIM and its relevance/implications for the future.

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Presentation on theme: "PRME/GIM Webinar Agenda 5 May 2011 Presenters: Sahba Sobhani, Program Manager GIM, UNDP: Presenting UNDP - GIM and its relevance/implications for the future."— Presentation transcript:

1 PRME/GIM Webinar Agenda 5 May 2011 Presenters: Sahba Sobhani, Program Manager GIM, UNDP: Presenting UNDP - GIM and its relevance/implications for the future work of the WG Al Rosenbloom: presenting results and implications of the 3-round survey on priorities and modalities for the future work of the WG Milenko Gudic: presenting objectives and format of the WG Workshop in Bled in July (also in the context of the deliverables for the Global Forum 2012 in Rio and the 2013 Summit in Bled)

2 The Growing Inclusive Markets (GIM) Initiative

3 A new perspective on private sector contribution to development Inclusive business models / inclusive markets Development benefits Business benefits Philanthropy CSR / Social investment Risk

4 Premise: Opportunities exist to build bridges between business and the poor Inclusive business models create a win-win scenario between business and the poor Benefits for business: generating profits, creating innovation, developing new markets, strengthening supply chains Benefits for the poor: meeting basic needs, increasing productivity and incomes, empowering communities Inclusive business models include the poor on the demand side as clients and customers, and on the supply side as employees, producers and business owners in the value chain Sectors: energy, water & sanitation, agriculture, health, financial services, ICT, handicraft, education, housing, tourism Types of organizations: MNCs, large companies (public/private), MSMEs, cooperatives, NGOs, social business The poor harbour a potential for consumption, production, innovation and entrepreneurial activity that is largely untapped 2.6 billion people live on less than US$ 2 per day; 1 billion lack access to clean water; 2.6 billion lack adequate sanitation; 1.6 billion lack access to electricity; 5.4 billion have no access to internet

5 The poor harbour a potential for consumption, production, innovation and entrepreneurial activity that is largely untapped 2.6 billion people live on less than US$ 2 per day Billions of people lack access to essential goods and services: No clean water: 1 billion No adequate sanitation: 2.6 billion No electricity: 1.6 billion No internet: 5.4 billion Poverty is best understood as a lack of opportunity to lead a life one values.

6 Does the business improve poor people's access to basic goods and services such as education, health, housing, water and sanitation, etc. Does the business reach excluded and disadvantaged populations (e.g., women, youth, disabled, ethnic minorities)? Human Development Impact Commercial Viability Is the business profitable? (In case of a start- up: is there a business plan to achieve profitability over time?) Does the business contribute to environmental sustainability (e.g. by saving resources, reducing carbon emissions, conserving biodiversity, maintaining ecosystem services)? (Should at least have no major negative environmental impacts) Environmental Impact Potential for Scale and Replication Has the business already achieved scale (either by expanding regionally, or reaching deeper into poor populations, or extending its activities)? If not, does the business have the potential to grow? Has the business model been replicated by others in the same region/sector? Inclusive Business Models Inclusive business models include the poor on the demand side as clients and customers, and on the supply side as employees, producers and business owners Does the business employ new solutions? Is it based on an innovative product, process or business model? Is it based on new ideas that can excite and inspire others? Innovation

7 Including the Poor Creates Opportunities for Business Smart Communications was the most profitable of the 5,000 largest corporations in the Philippi-nes in 2003, with a net income of about $288 m. Fingerprint-enabled ATMs developed for illiterate banking customers in India are being introduced in the US. The 4 billion people who live on less than $8 a day have a combined purchasing power of $5 trillion. Through training employees, Denmor Garment Manufacturers could a occupy a niche in high-quality, highly flexible production chains. SABMiller sources sorghum for its Eagle Lager from about 8,000 small-scale farmers in Uganda and 2,500 in Zambia, Generating profits EvidenceBusiness benefits Creating innovation Developing new markets Expanding the labour pool Strengthening supply chains

8 It also Creates Opportunites for the Poor RiteMed reached more than 20 million low-income clients in 2006 with 35 generic drugs, selling them at prices 20%–75% lower than those of name brands. Amanco sells small-scale lemon farmers drip irrigation systems that can raise annual yields from 9 tons per hectareto 25. Huatai provides alternative sources of income for local tree farmers and significantly increases the incomes of about 6,000 rural households. Access to loans, such as those provided by K-REP Bank, are not only sources of investment but also of self-confidence and independence. Meeting basic needs EvidenceBenefits for the Poor Increasing productivity Increasing incomes Empowering communities

9 Core Business Contributions to the MDGs In Colombia, Juan Valdez is offering higher, more stable incomes to over 500,000 small-scale coffee growers. Tsinghua Tongfang (THTF) markets computers to Chinas rural population that include distance education software, both for primary and middle school education and for minority language education. In Russia over 80% of Forus Banks clients are women, most of them in retail businesses; in 2006 the bank helped create 4,250 direct and 19,950 indirect jobs. In Mali, where in 2000 more than 22% of infants died before their first birthday, Pésinet provides an early warning method for monitoring the health conditions of children under age five, greatly reducing the infant mortality rate. In Cabo Delgado, Mozambique, the liquefied petroleum gas provided by VidaGas improves the sterility of medical instruments used to deliver babies, thereby improving maternal health. In Tanzania, A to Z Textile Mills provides affordable, long-lasting insecticide-treated bed nets that prevent mosquitoes from spreading malaria, reducing deaths by 50%. In 57 small towns across Uganda, the Association of Private Water Operators provides over 490,000 people with water and sewage services. In the Philippines, Smart is reducing the digital divide by providing low-cost, prepaid mobile phone airtime cards and is easing financial transactions to serve 24.2 million people. 9

10 Principles | Products | Objectives - Conceived in 2006 as platform for collaboration focused on research & advocacy - Advisory Board gathering over 25 key stakeholders including business associations, academic institutions and development agencies Principles Core business emphasis Developing world focus Human development framework, guided by the MDGs Local agenda Partnership and multistakeholder approach Products Reports (global, regional and national) Case studies (120 published + 1,000 examples) Knowledge network: 45 Southern academic institutions, Centers of Excellence, KM platform Tools: Strategy Matrix, Heat Maps, Actor Framework, Training for companies and intermediaries Objectives Deepen the understanding of how inclusive business models and inclusive markets can contribute to sustainable human development Enable the creation of more inclusive business models by informing individual, collective and policy action to improve market environments

11 Network of 45 academic institutions in >30 countries - Lagos Business School, Pan-African University (Nigeria) - Obafemi Awolowo University (Nigeria) - Institut Africain de Management (Senegal) - Institute of Statistical Social and Economic Research (Ghana) - Jomo Kenyatta University of Agriculture & Technology (Kenya) - Makerere University, Faculty of Economics and Management (Uganda) - University of Pretoria, Gordon Institute of Business Science (South Africa) - Witwaterstrand University, Graduate School of Business Administration (South Africa) - Reciprocity (South Africa) - Bangalore Institute of Management (India) - Harvard Business School's Indian Research Center (India) - Shanghai University (China) - Alternative Energy Institute, WTAMU (China) - Peterson Institute of International Economics / Center for World Trade Organization Studies (China) - New Ventures (Indonesia) - Hasanuddin University (Indonesia) - Jagannath University (Bangladesh) - Open University, Ho Chi Minh City (Vietnam) - European Chamber of Commerce in Vietnam - Institute of Technology (Fiji) - School of Business Administration, Al Akhawayn University, Ifrane (Morocco) - American University in Cairo (Egypt) - Synovate (Egypt) - International University of Kyrgyzstan, Bishkek (Kyrgyz Republic) - Marmara University, Department of Economics (Turkey) - Economy and Values Research Center (Armenia) - Zdes i Seichas (Belarus) - International Investment Center (Russia) - Department of Organization & Management, Faculty of Economics & Business (Croatia) - Kozminski Academy of Entrepreneurship and Management (Poland) - Fundação Dom Cabral (Brazil) - Universidad del Pacifico (Peru) - Universidad de los Andes (Colombia) - Escuela de Graduados en Administración y Dirección de Empresas, Tecnológico de Monterrey (Mexico) - Tecnológico de Monterrey, Social Enterprise Knowledge Network (Mexico) - Arthur Lock Graduate School of Business (Trinidad & Tobago) - Richard Ivey School of Business (Canada) - HEC Montréal (Canada) - Nottingham University Business School (UK) - Yale University (US) - Ecole Supérieure des Sciences Economiques et Commerciales, Institute for Research and Negotiation in Europe (France) - Université Québec à Chicoutimi (Canada) - University of Tokyo (Japan) - Hosei University (Japan) Sub-Saharan Africa Asia & the Pacific MENA Eastern Europe & the CIS Latin America & the Caribbean OECD

12 Empirical research approach: 120 case studies developed (1/2) Entrepreneur Employee Producer Consumer Type of inclusionType of company 4% MSME MNC Large domestic (incl. public) Non- profit Cooperative Region MENA Sub-Saharan Africa Asia & Pacific Eastern Europe & CIS Latin America & Caribbean

13 Empirical research approach: 120 case studies developed (2/2) # of cases

14 GIM Case Study Database

15 Description Results Environmental: non-polluting and renewable source of energy Partners Suppliers: Tata BP, Shakti Electronics, Anand Electronics Classification Inclusion: Consumer, Entrepreneur Sector: Energy Type: MSME Case study example: SELCO (India) Investors: IFC, USAID, E+Co, Lemelson, Good Energies Foundation Economic: 25 service centers, average sale price of USD 450, broke even after 7 years, now worth USD 3.4 million, won national and international awards Social: provision of solar lighting to >110,000 rural homes and 4,000 institutions (orphanages, clinics, schools), creation of jobs (170) and income opportunities for the rural poor (entrepreneurs renting SELCO lamps to street vendors daily), savings in energy costs, improved childrens education and health. Constraints: Negative perception about solar technology Different clients needs and payment capacities Opportunity: most of Indias rural population does not have access to electricity; 400 million depend on highly polluting and inefficient sources of energy, thus hindering productivity Business model: make solar lighting technology accessible to the rural poor (Karnataka) through credit Loans: rural banks, credit cooperatives, MFIs Implementation: SEWA Solutions: Demonstration effects: maintained solar street lights to demonstrate viability of the technology Customized products (e.g. head lamps for midwives and flower pickers) and payback options We set up SELCO to bust 3 myths: the poor cannot afford technology, the poor cannot maintain technology and it is not possible to run a commercial venture that fulfills a social objective. - Dr. Harish Hande, Founder

16 Market information Regulatory environment Physical infrastructure Knowledge & skills Access to financial products and services Adapt products and processes Invest in removing constraints Leverage the strengths of the poor Combine resources and capabilities with others Engage in policy dialogue with government Strategies Constraints Strategy Matrix – A tool to understand constraints and possible strategies

17 Market Heat Maps – A tool to improve market information Percentage of households in Guatemala living on less than $2 a day with access to credit by source

18 Actor Framework – Who supports inclusive business models and how? Inclusive Business Models Policymaking institutions Research & Advocacy institutions Finance institutions Institutions with complementary capabilities Policies, infrastructure Awareness raising, best practices Incentives, PPP Tools, knowledge hubs Patient capital, grants Equity, debt financing Expertise Networks

19 Actor networks in inclusive business models MNC Large domestic company SME NPO Policymaking institutions Research and advocacy institutions Finance institutions Institutions with complementary capabilities 19

20 Global, Regional and National Reports Creating Value for All: Strategies for Doing Business with the Poor (2008) The MDGs: Everyones Business (2010) Business Solutions to Poverty – How inclusive business models create opportunities for all in Emerging Europe and Central Asia (2011) Estrategias Empresariales para la Superación de la Pobreza y la Exclusión en Colombia (2010)

21 Thank your for your attention For more information:

22 PRME Working Group Poverty as a Challenge to Management Education PRME WG Webinar 5 May 2011 Summary of the Working Group Delphi Process

23 Delphi Process A practical management tool That helps group members that are in dispersed locations reach consensus

24 Delphi Process Recap Round 1 To develop a list of activities and ideas from WG members that is as complete as possible. Began with 14 topic areas 32 topics Began with 20 work products 32 work products

25 Delphi Process Recap Round 2 To vote for topics and work products of most interest to WG members Resulted in both lists being divided into topics of high interest (largest number of votes) and topics of interest (fewer number of votes) WG commitment: To retain all WG member interests collaboration + partnerships

26 Delphi Process Recap Round 3 To determine strength of interest in the top 10 WG topics and top 9 work products WG members were asked to allocate 20 points across each of the two groups Responses: 21

27 Topics of Interest TopicPointsWG Member Interest 1. Collaborating on poverty alleviation projects in developing countries and giving students the opportunities to get involved in those projects members 2. Case writing and case research on poverty6011 members 3. Poverty and its relationship to sustainability activities/efforts 447 members 4. Concrete (consulting) projects done by the students for individuals, small companies, municipalities, NGOs, or any institution in developing and emerging countries related to poverty reduction 404 members

28 Topics of Interest TopicPointsWG Member Interest 5. Poverty and its relationship to business ethics/corporate social responsibility 36 7 members 6. Faculty research304 members 7. Cross discipline issues related to poverty295 members 8. Corporate leadership issues as they relate to poverty 224 members

29 Topics of Interest TopicPointsWG Member Interest 9. Poverty and its relationship to economic development activities 203 members 10. Issues related to the curriculum (redesigning/revising/innovating) 174 members

30 Work Products/WG Outcomes TopicPointsWG Member Interest 1. An e-education system or program that helps different disciplines teach or studying about poverty members 2. Book(s)719 members 3. Conference(s)418 members 4. Partnerships between rich and poorer universities for mutual learning 346 members 5. Instructional material(s)234 members

31 Work Products/WG Outcomes TopicPointsWG Member Interest 6. Executive education guidelines235 members 7. Webinars214 members 8. Case clearinghouse175 members 9. Corporate training guidelines133 members

32 Brief Recap: Where We Are Now Worked through a three-stage process that first involved enlarging the domains of interest and then consolidating them Identified common areas of interest Know who is interested in specific topics Sense of the various tangible products WG members are interested in

33 What We Might Want to Discuss Next The possibility of topic champions/topic coordinators Organizational structure Deliverables in terms of immediate, mid-range and long term time frames How to integrate the long list of remaining topics of interest into existing areas of interest How the Growing Inclusive Markets (GIM) framework influences topics and work products

34 BLED 7-8 July, 2011

35 PRME Working Group Poverty as a Challenge to Management Education Current Status and Future Activities PRME WG Webinar 5 May 2011

36 Content General frame of work Current status Workshop in Bled Time horizon Deliverables for Global Forum and Summit

37 Original Plan of Activities Inviting faculty to join the group – Winter 2010/Spring 2011 Creating database (profiles, interests) – Spring 2011 Communication platform /Spring 2011 WG meeting in Bled – Spring 2011 Thematic workshop – winter 2011 International conference 2012

38 Current Status Working Group established –70 members –30 countries Database: CVs collected (partially) 3-round Delphi survey –Identification of interests –First prioritization –Concentration of interest areas and tangible products

39 Communication Platform LinkedIn Group established –35 members –First information being shared Electronic communication PRME supported Webinar, 5 May Future development –To be discussed in the Workshop in Bled

40 Workshop in Bled WG structure –Geographic –Thematic –Matrix Future work –Thematic –Deliverables –Time horizon –Possible funding

41 Time Horizon PRME Global Forum 2012 –Rio de Janeiro, May 2012 –Fighting poverty through management education in the context of dealing with social aspects of sustainable development Thematic Workshop 2012 –Associated to Global Forum Rio de janeiro, or Buenos Aires PRME Summit 2013 –Bled, May 2013

42 Deliverables for Global Forum in Rio Social aspects of sustainable development - Fighting poverty through management education: challenges, opportunities, solutions –Management education and constraints/strategy matrix –Management education solutions PRME Working Group –Aspirations –Activities –Needs

43 Deliverables for Global Forum in Rio Building blocks –CEEMAN Survey –PRME/CEEMAN Survey –GIM Report –WG projects and activities

44 Deliverables for Global Forum in Rio Work methods –Global survey –WG thematic workshop –WG activities and projects

45 Welcome to Bled! PRME WG Workshop –7-8 July 2011 Growing together by learning together about and for a better world

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