marketing to the poor: a justice inspired approach
TRANSCRIPT
Marquette Universitye-Publications@Marquette
Marketing Faculty Research and Publications Marketing, Department of
7-1-2011
Marketing to the Poor: A Justice Inspired ApproachNicholas J. C. SantosMarquette University, [email protected]
Gene R. LaczniakMarquette University, [email protected]
Published version. Journal of Jesuit Business Education, Vol. 2, No. 1 (Summer 2011): 48-63. PublisherLink. © 2011 Saint Joseph's University Press. Used with permission.Nicholas J.C. Santos, S.J. was affiliated with Santa Clara University at the time of publication.
Marketing to the Poor: A JUSTICE-INSPIRED APPROACH
Nicholas J. C. Santos, S.J. Gene R. Laczniak
Business engagement with impoverished consumers as a distinct strategy option
was rarely considered until recently, as the impoverished market segment was
typically evaluated as having Little to contribute to the exchange process. Thought
of in classic "definition of a market" terms, the poor may have the desire to purchase
but they lack sufficient ability to buy. This financial hurdle was overcome by mul tiple
analyses demonstrating that there was now an emerging profit potential in low
income markets. I With saturation experienced in servicing many high and middle
income markets, as well as excess production capacity, seeking out growth opportu
nities in developing markets such as India, Brazil and Indonesia is a logical strategy
from a business perspective.2 Accordingly, a number of multinational corporations
(MNCs) have in recent years shown an increased interest in the low-income
segment.3 Major global corporations that have ventured into the low-income market
include Cemex, Kodak, Nestle, Proctor and Gamble, and Unilever.4 This trend of
the corporate sector into the low-income market is reflected in the curriculum
change in business schools. A report released by the Aspen Institute in 2007 indicates
that the number of business schools that included material focused on low-income
markets, also characterized as the bottom or base of the pyramid (BoP), grew
phenomenally in 2007 compared to 2005.5 According to the repon, the inclusion
of BoP-related material is ral~ing place across a wJde range of disciplines in the MBA
curriculum as well as in business schools across the globe. There have also been a
number of academic conferences in recent years that have focused exclusively on the
BoP market. 6
Nicholas Santos, S.]., Santa Clara University and Gene Laczniak, Marquette University; This article is a modiHed version of a paper first presented at the annual mceting of the Colleagues in Jesuit Business Education,] nly 2008 (Fordham Un iversity) and draws on other working and published papers by Santos & Laczniak, some of which arc listed under note 13.
48 Journal of Jcs:Jit /Ju:lincss Education
The hwolvemelH ofMNC') In [he .HoP market puts a focus on induding, groups
tha r were earli er kept at the pCl' ipnelY or Jnar@,Ins of econom iC": development. As
Prahalacl (2005) p llilll:S out, «when the poor arc converred into (.UllSU1he rs, lltey get
more: than access to products and services. TIley acq ui re the dign iry of attention ;lnd
choices frOUl the private. s(':(:tor th ::lt. were previously reserv'ed fo r the midille-dass and rich."'! \"XIhilc the interest of muh..ination ... l corpOtatiohs in the low~ incomc
market segment is a recent phenomenon, there has been periud ic bu. .. ines.s
involvement with low-income OOnsumers fnr m.anY)'f'...1rs. Along with clllS~ there has
Leen GO l1ce rn raised. about a plethora of unethical ~raccit:~ accompanying market
phce rransactions with low-inoomc COlI:mmers. In wh~t could perhaps be deemed
a::; the fi(s[ comprehenl';\re present:ltJOh of some of lhcsc uw::th.ical pracrk.es, wdologist David Caplovitz (l967) SllUWS how "the- marketing system that has evolv<:u in
low-income areas is in lTL.1.ny respects a deviant one in which exploita'(ion and fraud are the norm r;t ehet than clle exception. "8 example_" ofexploitativc:: practices in the
low-income segmellt include predatory le~1Jjtlg, inflated price" ro wire fimds interhationally, unconsciol J.aDl e 13bor pr::l,ctices, an d exorbitant rcnt-to-own lransaujuns...9
Whil~ such tactics take adwntage uf the yulnerabiliLLcs of the impoverL"hed segment
due Lo lack of financial resources, education Ievd lo and ('ven acccs.s tu land. 11 they
are also dri\'en by the powerful deshc or LlJcse consumers for better quali ty ptoducts
and a.n lmlJruverl quality oFl\fe. 12
While the involvement o[ lIlulrina[lunal corporations in rhe low-income market
alTvrJ.s the opporcuniry nfa more. indusive capitali-sm. the t:\·jdcnce of nnfair bl lsine", ....
practices involving impoverished COllSllmt'fS pre!~enrs the thre~H of a gr-ca.ler
exploiLation of these consumers. In keeping with the "f)refcn::ntial option for the
poor doctrine espou>cd by both the Social Teaching oFthe Catholic Church and the las( few Gene.r:tl Congregations of the Society ofJc.>"U-s, Jt:suit b 1..lSine::;s schools ought
to feel compeHed to encoura~ the development ;1nd dis&cminatlon of manag.erial [j·ameworks th :l.. t enable business corporations 1O engage impuveri.· .. hed consumers in
a m arulel' lhat is "fair" alHl "jmr" to both parties (i.e., the busines.s unit and lhe
t:onslJfner). T his is particularly imponant In aU imperson<\! economic marketphcc
thot too oftcn Oi.~loits the pour rlue to an "jmha.lance" of J"('source5, informarit.)11 or
flll :l.nc::ial leverage on the part of the les.s advantaged memher. typic:llly the buyer. Willi the cask in l!lind of enh:mcing justice when marketing to die: pour, we
have developed a normative framewurk 'Wi1ich we Janel :l,S the Inregl'ative Justicc Model (IJM) for impo\rerished markeTS. The lJM js a work-in-progl'ess resulting
from a series of conference: prcs~pr-<ltiuns, puhlisned p:lpers and working p apers. I )
111crc ,itt: a n umber of reasons that ::I11 gur for the significance of the Ulvr in Jt"sui t,
and more broadly, Carholic business eJucalion. For one., the TJM responds to the
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49
need tor Catholic busines" educ:1tion to capitillize on th e: ca ll rO f "a rich tradition
on the discollrsO; of faith and reasoll " iLl how Wit teach om students. especially (;on(;eming j&SU~S of socbl jU5ticeY; FLJrtheTmoret the 1JM also speaks Jirecr\y to
rhe rlemano that an imegracro business t:ducacion in the Cathol ic u ad icion would
be focused. in part, on the needs of the poor. l~ Lastly, rhe TJM is consistent with
Porth et al. 's (2009) sl1ggesrions abuu[ how the misdon s[afCmcn rs oJ' Camolic Uni.versitics, a t least ideally, shouJd drjye C:lthotic hu~iness sch ool pedagogy to
inform our :'ltt lderHs aOClllt [he fuuua1l1tlltal <.ligniey of till: human person. 16 This dimension, of course, is a central concern of the 1JM perspective. \\,Ie begin \vith briefly presenting the fun da mental dements of the IJM alld show how th ese are
cOfluccred [0 rhe princjpJes ofC1[hoLic Social Teach.ing . We then high light some of
the implications of the [Ji\'1 for husines", en lH;atiun in Jesuii business schools. Finail:I,
we itlendfy a few areas of further research.
The Imegrative Justice Model (~JM) The LJM is collsttuc:ten using .. norm:u.1ve theory uuildillg proctS:,; in. philosopby
pfl)posen by lh e philosupher John Bishopl7 and is comprised of ethical elernemf) [h.t( ought to be present when ma rkedn~ TO the poor. I ~ Tll~ l]M dues not bIt-lId
differen r rhrories or types I,)f justice (t.g. legal justice. procedural j1.lstice) e.tc.) ,
Instcad, it integrates the notion of «f~irness" or «equity" in markeLillg t ransactions
as developed froru differeLJt~[rands of cllought in m oral philosophy and management
[heory. ll) BJ.sed on these pertinent streams Qf though t we ident.ified and devdoped
five ch~mcreristjcs of "just" market siLUaLion.s. These cha racteristics wh ich form th e
.'aluc IllPU(:S ot'thc model (see figure-l) are:
1. An authentic elll;3gclncnt with consumers) particl~h!rly impove.ri,lIheJ oIle,!i,
with non-eJtploita riv(' intent:
2. Co.-.crca tion ofva1uc with custO[f1-.ers, f'_lI pecially those. who are impnvt:tished
or disadva nr;l~d;
3. (I\VcSCffiCn l in future conswnprion wiThout end.1I1gerinc- the envin)nWl"nr
4. lntere:s r representation of all stakeholder'\;, p<ln:icularly impoverished cusromCJS;
5. Focus on Inng-term pruftt nla n;1gemenl rather thall short-term 'profit
maxunizauon.
The OUtComes fur busincs:-i firms that adhere to the above ch,arac.teristics ,'Ire:
long-term rdar.ionships, customer empoweTnlCllt. sustainable lHls in~ illi ti~tjves)
<1n,n dIe crC'ariull of a rJ.lrcr mad.::cq:rlacc. The aim of the 1JM is to en.h;3, nce fuir.nes.!i
50 Journa,l of Jesuit BI ,ls ine~$ Educ.:l tion
Figure 1: An Integrative Justice Model for Impoverished Markets
r------- --- - - - - --------,
Value Inpvts
.. Authp.nt ic engagemont wi th CQllsurners, parti cUI;Jriy impoverished ones, with non-exp !oitiJtive iJ ltent.
.. Co~creation of va lue with Ctlstomers, C!s ped ::l !ly those who al'e in lpoverisht;;'d o r d isadvantaged.
.. rnvestment in fu ture consumption without endangering the environmp.nt .
.. fnterest representatiun of al l stake-noldArs, p articularly impo'Vc ris'neu customers.
.. r OClIS on long t erm p rofit management rather than short-term p rofit maximization.
EXCHANGE TRANSACTIONS
Outcomes
.. Lo ng t erm relatiunships
.. Customer empowerment
.. Sustainable b ()s in~ss initiatives
.. Creation of a fa irer mar.ketpface
IMPOVERISHED MARKET
SEGMENTS
Ma rketing to the Poor 51
and equity in economic transactions involving impoverished consluners while the
vision is to lay lhe fo undation fo r prototYpl! markets that empower the poor while
creali ng "winwwin" situations fo r buyers and sellers.
The IJM in the light of Catholic Social Teaching""
Ca,holic social " ",ching (CSn is comprised of the rradi ,ion of rapal, Ch urch Council, anclf-<:pi.·.c:npal documents th:lt <leal with (he Cburch's response and
commitment to the social demands of the gospel in the context of rhe world. At the
l1ean uf tht: CST corpus arc four principles that arc referred to as the permanen f
prinCiples of the ChurJ l'::i social clonrine.! ' These are: the dignity of the human
p ersoll; Lin:: (;Oll\m.on good; subsid iarity; and solidarity. A fu ndamcncal economic
assumption made in the class ical theory uf c:xchange i::; dU:H borh panic::; tu the
exchange are On :1,n eq\lal tootin g, which is very UfttIl not the case. 22 I Jl [a(;[, .it is
p recisely hec3w.e of me ineqeltr/itit'i that exist in the ex-change p rocess. that wt: ~ee
an cverwincrcasing 30l0 Wlt of injustice ;n rhe current rn;Hkc1. ,~y.~tem. Therefore, a
major t:halicngc in the construction of".iusr" markets is of cretl ting ec:onomic "win
win " situat ions fur aJl par[icipallts. The principles o f C ST oiler a framework for crea tillg sliGh "win-win" situations , In wnat folll.)w:; we show how the fundamcnml
clCHltJJLS of [he 1JM (chara.:.:tt: ristics of "just" market situations) are closely connected
to m< principb of CST.
UM ideal #1: Authentic engagli!tllent with consumers
If all hum:m per~ons , a.~ CST po ints our, have an iuviulalJle d ignity, then
treating any person tiS merely an object or m~ns to the profit:Jhility of [he company
is a violation of the princ~ple: of human dignity. Consistent with philosopher
Immanuel Kant's sc::culld formulation of his caregorical impf!r;H'ive, La.czniak (1999)
poin t'!; uul ula l «memb.:r.s of the human community, particula rly those most subject
to exploitation, shuuld Ilevcr be ust:u as an acpedicnr means [0 a financial end. OJ:B
Art example of compani es tairing advantage:: of the:: vulncrabil iti~ uf consumers is that of the p repaid phone c.a rd indusrfy,l .j For many irnliligrants , particularly lhose
from L..'ltin America, p repaid pho ne cards are their main connecrlon to their famil ies
back home. Unfortunately, as press repo rt~ in<li cate, many providers of prep:li.d
phone servit.:es t'JtgaSc in deceptive market \ng and even fraud.1) 'l'hese providers
rou tin ely manipulalt: the min utes that consumers can use and also charge :1 wid e
array of st:tv iCe fees which al'e sometimes part of tlJe fine print bu~ cannot be easily
d.eciphered oy a largd y illilerate pOjJulalion. In CO.n tr;1S t [0 examples of cumpanie1i that exploit the vulnerabilities of
c.onsumers, there are several commendable cases of organizations that genuilldy seek
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52 Journal of Je~llit Business education
to address the di8::1dvanrages that collsUll1el"S face. One such instance is that of the
Grameeu Bank in Bangladesh which was awarded the Nobel Pdze for Peace in 200().
Crd.lI1een Dank started as nn initiative in 1976 to provide sm~11 loans l(I en trep re
oeurs who COlllct not q ualify fiH iU<l11-s from t rad itional banks.'-6 Lt 1983 it was set
up as a formal bank .. Since its inception, C rameen Bank has disbursed about $1 0.12
l>.illion in loans. As of December 1 010, it.s total number or horruwers roral B.34 million of wh ich 97% Jre WOIIlt::tl . An innovaLivt! al;)proach of G rameen Bank is that
tht: wrrowers of the bank own 95 percent o f the equity of the bank with the
remaining equity being held by the gove.rnment. Grarne.e.n Bank does not requite any
collare.rnl from its borrowt:rs nor dotS il require irs burrowers to sign any legal
uu(.wllenr as it does not wish to take borrowers ro court for non-rep~y.mf!nt. Despite
this, the repaymenc rate j.e; ahout 98 percent which is milch higher ch.an the rCI-'<lymem rate of most traditio nal banks. Among sevel·al notable aspects of the Grameen Bank
example is the jdca tbat [impoverished] customers of rhe ba.n..k have heen nor on ly lTl<-"lde partners in an e.conomic exr.han~e procf:";s but that the outcome uf (he [rans
ac:rion has allowed them to be a strUllget· fuUlre participam (0 the m:u·ketplace.
The difference between companies that exploit the vL1lner;1h ilitie.~ l)f CUnSllnlCrS
and those: j·bar se~k (0 reduct: die vulnerabilities or disadvnntages th at consumers
[ace is that the latter are able to view their businesses :l!, serving <l. gre.:l.te r sudal
purpose th:lIl simply rhe rdel111ess pursuit ur profir maximization. In viewing
cllsl(llnel·S, particularly Lrnpovel"ished ones, not as obj ects to be taken <lch,·nntage of
but rather as subjects who have legitim:lte ne.eds. the_<:;e. com paJl ies arlh r.:re to CST's principles of tile digniry of the hu man per!)Oll, of rhe commoll good, and of solidarity (i.e. the: brotl,erhood and sisterhood of all humanity).
IJM ideal #2: Co-<n:afion of valne
In tlu:::i,' path-br.:::aking work 111volving the services··dominant logic (S-D logic)
of marketing, Vargo and Lusc.h (2004) argJJe that Marketing is tl'"dl l:iCorm..ing to a
new evolmiol1uy lugic, "one in which service pruvLSJOn rather than ~oods is funda
Olt:lIlal to economic exchange."u Accordin g to v..'lrgo and Lusch, "'"a service-ceo te.re.ci ~
dominant logi-c implies tha.t value· is defined by and co-creatcJ uJitiJ the c()nsumer
[emphasis ;lrlded] !",uher than embedded in output. "28 In rhe S-D logic, customers
are treated <lS operant resources (producers of eHects) rather than o perand re'io nrces
(something r.o be aaM upon). Sl1(:h;:a shift is in keeping wilh CST's emphasis on
Lht inherent wonh of cadt indi'~ id~l person. Thus, for instance, while th e. impov
erished customcrs might have lurutecl pu;~hasing power, they also h:rve a Wt:alcll uf
knowledr;:e, skills, ;mcl. iht<l$ th·~t catl be porentially bt:neficial to business entcr·
prjses.!? Consider for eX.1mple~ the approach ofProcror an d Gamble (P&G). P&G
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Marketing to the Poor 53
.sent its market resea.n:hefs to spend time in ruc:!.l .rillagcs in deYeloping coumries,
observing the everyday bchavjof of pour co l1swners.:;o Th is <lpproach enabled P&G
(0 dtvdo~ products tb:u the <,,:u.">tomcrs needed r.lther than what P&G rhoup;ht they needed. P&G was able to leverage the kuowledge it gainerl from a ftrst-hand
experience of me situation of its iUl povcri.shed consllmers to crtatc value for irs
impoverished consumers a~ well as for itself Anoth~r example is that of Ogilll)f &
Mather (O&1'f) which uses tradi rion:ti Folk performances to appeal to rural
CUSTomets:~ 1 O&"\1's approach Ilses the skiUs of the f01k !Je:r[onucr to create brand
valut: among cll.stomers for whom rhese rradiriona) art forms have uemendous
meaninr; a nd ~ignjficancc.
qt...( ideal #3: Jnvdtmeot in future consumptiou
' rhe U,S. Catholic Bishops. in theil' paswralletter Er.rmomicfostic~for All, as..'ierr
rhar an. economic system should bc judged "by wb::n: it doc.':i.for and to people and by how it permj~ Ali to participate in it, »32 An authemic engagemenr w.ith COllsumcrs
aJld co-cre;l[ing value with [hem u1l(lotlbccdly enhance\ their panicip:ujon in the economic system. Howf:Vcr. [hi! participation of parllcularly irnpove:rish<:J
consumers is re~tricted ur ihctf lack of ~CI.)~~S.':i 1:0 capital and other resQUiCa;, Making capiral and other re~lJlIrces available to impoverished l:Ullsumers increases tlu~
potentiaJ of tht:Se I,;Ol1.')umers to particip,He in the market economy. Wesce evidence of this in the example of (~r;l:mer!n Ballk, Further, as M{lrW'd.ha. ct al. point out, "allY
attempt to grow the pour's capacity to consume must focus on incrt:asing their income."J3 One result of business ~n15dgcmcnt with the imjJo ... ·cri.':ihcd market
segment is the increase of employmtntoppoftunities. This tall be either directly, by v·ray of employment with the business firm or inJirccdy. as s'lppliers. di~tributors, ami rerailers. In pan, thc emerging popularity ofdrrur uClde" products (e.g., coffee.
cocua, lea) with consumers embodks d-us trend. While tile "fair trade" movc::fl1t1lt
has often heen a C{)1IJumer dl'it.Ktl social phtl\Oltlcl!On, allowing buyers (0 "fed good'" that {hey La,,·t not purchased prouUc.:LS produced under "'e,1CJ>loirilfc" conditions. the
net effect has been to wstilutionalize a living v..'<lge and improved workingcolldilions
for partners in the supply cha~n. These conditions, rypk.111y at .~hOl't-lcrm cost r.o
the most powcrful channd members, h,IVe often :lUowed weaker channel memhers 1.0 continue as partne.r.s in a future cycle of ecolloruic exchange.
11M ideal #4: Jntere.st n:pn:scnta[ion of all stakeholdet·s
In the .I1St fey<,' decades, mulrintltional corvo rations h.:we be~n in voh,t:d ill devcl
opmeDral prujcas in developjnB countries. ~·l1ile many ofrhtse pru~ects were me;lnl to hdp rhe wtim:lCe hc.n('Hciarics, the POOT, it wa~ rtali .. ed that lnstend rhey endt:d
5~ JOlJrnai" of .J~su it Busines£ Education
up wi th die poor being even W Of!'ie. otT than beforc,-'H For example. Caufield (1 ~)96)
cites the e.xample of the Nurmada Dam Project in wesrern India.35 An objective of
building this mega dam was to help irrigation .• particubrly in the droughl-hit artas
ot"sratcs such as G ujarat and Maharashtra. It wa~ argued that by enabling irrigation.
the pl'otlucdvity of me land wouid be improved. and the et.:unomic condirlOJ1!'i
of rhese areas woulci improve. H owever. the dam re~u1ff>d in the di.c;-placemcnr of
hundreds of ,hOUSWld, or LTibalp""pie who re'i<fed on the banles of the Narmada
River. The resettlement" p1an wa.o;; very poor a,nd the affected peo fJlc Were given arid land in exchange fo r the fertile b nd they previously held. T he N~rmad;l Dam
Project, thlls , unwittingly pushed a large IlumOer of people into poverty instead of
providi ng citizens in the: area an opportunity fo r jobs and r-he monetary rewards to
engage bcner in ~he c011sumprion process_
In Rangan and McC::l ffrey's (2004 and 2006) opinion, a wajor reason that
fJrojecrs SllCh as this re$111rcd in the poor being wurse off than nefore was that the
interests of the poor end dient were liot sufficiently represented or t.1kcn into
accoun t;~ Togedler Wilh the interests of the .o;;hareholdcrs, it is important fur the
business organizarion to cOJlsider the interests of O(htr -stakeholders particularly Those
that do not have muc.h voice in the economic I1cg.mi3liun process. For example, [he Hraz.ili:lIl retailer Casas Bahia, which seUs p roducts to low-inc:ome co nsumers ou an
installment basis, has a consumer education proc:ess in whi.ch sales lJeople teadl
consumers to buy according to their budgel_J7 At times, this proce~ might result in
the consltm~r sel~c. ting a cheaper product, whkh couJd be considered a loss for Casas
B:thia. H owever, this loss is compensated by the rel~tion.~h.ip and trust that is built
with the low-income: COil.:mmers. Consi dering the interest of tllt: ofrell voicde.<:s
impoycl'hhcd (onSI1TUer is in acc.o rd.mce with the CST ptlnciples of the common
good and Sub5icJ iari ry.
11M ideal #5: LOllg-term profit management
CST re:cogn i7.f'-S the iegiti m;1re role of profits in [he fUnctioning of the bWiines~
enterprise and for f!(.ono mic dcvdopmt:nt .. ~8 However, a preoccllpat ion with
profitability, ironically, can act agel inst the long~term interests of the business 01"g-dn~
ization.39 Such a prcoculpatioll is I:ugely the ouroome of a short· term mentali ty th<it
is ueiveH by <-planeri}' profit increments or even annual RO I Largets. The pressure
for shurr-term proHt maxim ization can leaJ ro va. rious fo rms of unethjcal husiness behavior a.<; p.videnced. by the corporate scand~s alid finan clalmdtdowns that dlurac
terized the firsr J(..'Cadt': of the Lwent}'~first Centu ryr-. lnstead, the markel developmell t
ofimpoverishe;:dsegJuenrs i.s inherently ~ longer process than one th<l.t is dict::l ted by the: ItJlgth of fi.~cal re.por ting periods and/or ann ualized shatt performance scores .
Marketing k.' !.'-te Pc« 55
An example of::l company that has a long~terrIl lJerspective is the Aga Kha.n FLlnd
for Economic De"dopment..:t fo r~ profit c.omp~ny based in Geneva.. The Aga Kh<lll.
who is the spiri tuallcadcr of the Ismaili Muslim sea and the (:h;Jirmall of the
l:UJI)pallY. mainta ins [ha[ he is more fOl:use .. -t on iong-rerm outcomes l'3ther than be-in£; preoccupi eo with short-term profits:il} One of the: inveSUllCl1tS uf lhe Aga
Khan hind is a fLSh net t;'c:tnry in Uganda. A project initj~tffi 0)" Karen Veverica.
a.n aqu.."1culture expert with Auburn University, :1nrl financed by rhe Unired Srates
Age-lley for IntemaLional Devclopmclll is jump ·starting 3. flsh .·farming industry in
Ug:mda. However, rh is projet:t requires special lypes of n~n>. Presently> (here is no
dem~lDa for these nets bur, without them , the fish-farming industry ca.nnot take on~
Mahmood _Ahmed. thcAga Khan FWld's represenutive in Ugaruia, points our rhat
investments such as these reguirc thin.king long-·term. "While the fund v.:ilI no t enter
a bllsiness w ithout the prom..ise of profit. there are more w IIsideracions than simply
profit."-l ! According to CS": the individu:l 1 p rofi t of a business tlllerprisc :;hould
never become the sale objective of::J. company. I·b th er, it shoulrl be considered
together with another equally fimdament:tl objcccive~ namely, social ll.o;efulness. A
c.ompany is more likely t o cOllside L' its soci:011 ust:fulness when i~ has a long-term
ra ther than .... .short- term perspeC:f.ive.
Implications of the IJM for Jesuit BlL'liness Education At the Internalional Associatiu1L of Jesuit Business Schools' 7th International
\X/odd Forum in 'Mexico in 2000. the then president of the \Xlorld UnioJJ of Jcsuit Alumni/ae, Fabio 'lohon l ondono, in his video presentacion s:l. id : "Bu:iiness
decisions in LUday's marJ.cctpiace should not be merely what the numbers adci up to
or what best .sen't:i a company's i.xJ LlOlll line. Vile have a moral obligation cowards
the needy of Ollr nations.".u More recently, Fr. NicoMs, (he Superio r Gt:l1l:l'ai of the
Society of Jesus, reminde<t delecates at rhe Netulorkillg jNuit Higher EduuJ.tiol1 o:.;o nfercn<.:c in 111!X.ico Ci ty of a poim made during the j5th Gener:ll Congregation,
namely. lhac we "beat a common rC::;fJOJ1sibiliry for the welfare of the entire world
and its de .... elopment in ::t sustainable and li fe-giving way. '''':1 111 lhe context of Jesuit Business Education, this "moral obligation towards the. fie f-a}," or "rcsponsibility fo r
the wel£uc of die t~ntil'cworld " does not have to be lim ired to oorpora.te phiiallthroPi'
or even tu enhancing lht economic efficiency of organizations clurged with dealing
o r helping rhe poor. ltlSlead, }!sui t blUiitLl:~SS schoob uughc [0 also consider
motivating their smdenrs to exami.ne th e F.1ct.ors that conrrihme to "unfair" mark~r
place transactions, particu.larlywhen en~ging impove rished. ~arket ,~ements , "::J.nd
the organizatiollal mechanisms lilal exist fo r making them more ethical. Pope John
Pa1111 r in Ex Corde £:cleJ'Ule lists "the prollluLioll of justice fur all" and "a more just
\ . .':6 Journal of J esuit BUl;iness EdlJr.at iQn
sharing in the world's resources" amollg the serious co nrempo rary p ro blems of our
time.44 ' rhus, a most o bvious utili"L.a tioll of the TJM in Jesuit business schools would
he: lO inject discl1ssion of the value inpu ts or "'justice" dimensions of the IJM imo
lhe wide variel)' uf das~es, already taught in business school curricula, wn ich touc.h
on impoverished ruarket~ in sume fashion . Courses that. come to m in.d arc: hllsim:ss
ethics, corporate 50cial responsiuili ty (CI)R), social ent repreneurship. inlernanona1
managemenr policy, and assorted. s)Jt:cia.iunits rhat offe r ..... MBA. c.onsultancy tt:ams"
m sodal service o rg:mizations.
In addit ion La irs applicahility at the micro-levd of lluslness disd plines or even
courses wirhin those ilisciplines, the. 1JM provides 3 framework lhat is Jikdy to be
usefuJ fo r business edut.:ariol1 .a L Je~;uir business schools at a macro-level. BusineS';
.c;ch olars have recently caJled on at:aJcm ics TO renew their engagem ent wi rh the
u mnection of business activity to broader social issuc::s and sysre.mic etTects . .:(~ 'fhc
IJM sllt"":d m.:tly encapsubtes the core principles of Carhu/ic Social Te.aching <IS weB
as macromatkt:ting umc.e, prs sue,", as d istributive jusLicc. snkeholdt!r Theory,
corpora te social rcsponsibility. s llstain~bility, and the triple bottom linc Y'i \Ve IlJl<l
ir. significant mat the VatiC<l.u Office ofPenitenti ~ ry recen.rJy suggested that Glubal.i1.<l tinn gives rise to emerging and lroubling social sins such as .... polluti ng the
envi ronmcn[" and "causing social jnequitjes" ,47 in postulating these l10rmative
ideal~, the IJM implici tly informs the issue of the discinctiveness of Jesuit business
edll ca tion. Entirely consisten t wiLlI the I]M. w hat ought d istinguish business
education at Jesuit business schools· -among oliler t.hiHg. .. - is. mar it s~ri ves towards:
(l ) J~veloplng a mOr.1l and spiritu al charaCl<:f i.n Jesuil S<..: hooi gr:lduates;
(2) n urturing ski lls thac will help mar .. agers utilize the ir ecollomic knowJeJge with an oricntJ.tion to s(!rYc o!her,~ ; 0) fi) S r~Ting in Jesuit business sch ool graduate!; il
special concern for the welran: of CIIlployecs th ey man<1ge; (4) highlighting the
!lodetal rarn ifi cnions ofbllsincss decisioui> that are marie, anc! {'5) ex-hi biting a special
c::mpathy fO r tl1t~ poor and marginalized who arc fi.-eq uc.::ntly al a distil1(;t c! isadv:l ntage
in the economic pwcess:·j 8 The rJM elemeJ\ts of authentic engagemen t with impcwerished consumCI":S , t:o~cre::lliu n of ,faille wi th custom ers, investment in f lLLure
consumption without endangering the euvim nment, interest representatio n of all .stake.holders, and a focus on long- term pro fi t managem('llt ra.ther than sho rt-term
profit mrnmi7.acion, are eaeh di rectly contributory to th~ vrimary goals of Jesuit
busin~ education., • The ttut}"'1ltic t!ngagement with non~expf()ittt!iJ!e intent element calls for a change
in approach from the "busim.'"Ss as usua'j" IUen t:! li ey of pil re economic utjjjeal"lalljsm
wht'.ft: greed, c.o rruption, and e1:plo itaJ on arc: LoO nrU;·11 the pr~"":1j li Jlg norm, 1 'hc
co-creation of lIaiu.f elemenr emphasizcs that c\'en though impo\·erished cusrom e.rs
Ma,k€ting to the poor 57
m ight have a lack of income, wealth, and access to capital, they do have skills,
knowledge, and a desire for economic: improvement thai Cln cUlIu'iburc LO [he
mutual value. :lCided in [he e,xc.h:mge pn.x:t"$s. Tn shun, [he J igllily of impoverished
consumers II1~ri l'~ not only respect bUt lhe opportunity of partnership. The
;'Wf.Itment itl future wI'ISumpliou dement calls for an enbrged rn inciset. from viewing
market segments merely in rerms of presen( nbil ity [0 purcf,::J.se tu ulle that t:Ollsiders
business engagemenr in imrxwerished m:lfke~:.: ~s ;a long~lerm invesunent that is
aimed :It cteating St1.~ttl; ,inablt: lllarke.t.~ thitt all can actively participl:me in and benefit
from m't! lh ~ Innr; tuB. The i7Jtfn'!i~ repn'Senlation of aU stakeholders element
su\J::;cribes to a ::;lakeholdcr orienta tion but upholds that impoverished clIst(lmers
should be treated as primary stakeholders. T he for.m (J/l long-term pmfit management d ement, while recognizing the legitimacy of financiaJ relurns, calls [or a pcrspectiyc
that considers not merely fin ::mcial rewards in the short run but aJso overall benefits
to rhe organ i7.atiou .uH1 the hroaJer communjlY. The IJM's ultimate payo~rin being
blC:lldt'd into business schoul ledclling ir:volves helping students ~,~tablish (l set of
principles that can be drJ.wn on w hen dealing wi~h vulner:.Jhle mar.ke:r segmcnr.s,
especially the poor:j~ In order tn help Jesuir hll.,>iw::.ss school sLUdenrs and faculty
hetter incorporate the UM ideals ill lheir omr::;cv.'ork, we offa some rentati,·c but
derailed principles flowing fro m cnch ofthe 1JM elemenrs (see Table 1 for oetaib) .so
A Comment Concerning Further Resear.:h All of the disti,ngllishing ch .Hacteri::;lks of the IJM arc subject to further
commentary, 1'E"~(:a.rdl and hypothesjs testing. Here's one example. W'hile itltcrest
represttUtJJion ()fa.ll !ulkehotders is a normative ideal, fl. !: the practical level , it involves
developing metrics to evalua te vv.hether interest [eprest'm;uion of stakeholders has
indeed tlken phce via some sort of aclvuc,ac)' prmoc.:ol-Lc, has lite voice of each
st:1keholder groll[l beetl rtpl~senteJ to lhe orgJ.uizalion when it needed co be? Such
research might ucni LO draw imight:> h'om varied fields such as cultural anthropology.
~()ciology> psychology and theology and could be of:l crossp cl1!rllral or long,iruJilla.l nature. As is often the case, the challenge lies in the details ofapplicarion-lha[ is,
the setting forth of action>lhle v.tideljn e.~ for spedflc si[ualions as Jesuit business
school €tcul!), experiment wlth and explore the IJM model. We welcome our
coUeagu.es iu Jt.mir busilless education to help us m continue to refine the. fullness
of the IJM, while recognizing that the enhancement of ecnnomic efficiency, because
II is a no rmative model. is not the 1J M ' ... prirn.'Uy te~t. Lmcad. r.he ridllle.5S of the
UM approach will he found in it.~ consl.!.lt')lCY with Jesuit cducHlional ideals white
31so :lllowing hu:.:int'.ss firms to temajn sensitive m profitability as rhey discharge [ht:ir economic mission::;.
sa Journal of Jesuit Business Etluc3tion
Table 1 IJM Guidelines
GUiding principles ~IJM Elemont . -_ .. ... __ ..• ._------------Authentic cngiigeme,'1t .... fimout f!xploitatiVf~ intent
Co-up..:F.ion of vakJe
InvF.-:)tment in future comumption
• Develop trU5t with aU stah'!holde{s, p(!rticu larly impoverisfled (uSlorners Build compctitivt advallta~e throuqh ~ proco!=!ss of cOi'laboration rather thtlll by eliminatillg competition
• AdhF!re to i) long-term perspective lhat aims (:I t
improving t~ quality o t society and the F.,,'/irc-nment
.. Reirai,'l frnm taking undue aava.'ltagc at the ft:! lC:ltive W8;;lkrl-8:i s@.') of disadv~ntaged stakeholders Ouild a tru:-;tworthy reputiltioo fer fair dealing, dependa bility, J IKi continuuu:; care
• 511ppcrt form<llization of con:;umer ri'::1hts tha l gu<l r;;1ntee ~i)fety, redress, sufficicnl in formation and o~hp.r basic requirements at exchange f,)irnes~
• Foster sod,,1 sustainablrty while ensuring orofilauilify in the long P.1n
Involve conSUlnel'S in tlr~ .... alup-IJeation process • Use rC50urces to offer what is or !.>est p.conomic:
value (lspecially to in1poI/erislreJ custOl'rrBrs • Foster sustained partnerships and develop mutuJ!
tru~ t '."Iith impoverLo;hed ruston-·ers that extends beyond the L."OnslJmption of the product or ccrvice
• leverage lucal lnn',) .... atrJenp.Ss. • Seck input from irllpcveris.1eu c1Jslomers eiihl?r
directly or throUgJl observatio'l and irlcorporate this fp.F!flba("k into t~e dccision-makinq process
• Consider Vl1IYS in which impoverished customers ~an he giver"! iln oW'lership stake in the company
• Collaborflt€! with loc.<'I1 rommllnitj,as so as to t3P into Lire socia l neLwork they conSTitute
In .... o5t in researd) and development <limed at ~
developing innOI,'Cllions for impoverished mnrkets thilt <:Ire both socially bcne!idal and environmefltally fr.if!lt:ily Increase cap;ibilitie5 at impoverished segments so rl!'; to E'\1sure \ha~ thesp. (an better partidp<lte in the markel emnomy
• ]a~1 er11pleyee~ d 1i\~n9 wage so as to ensure that they cCln conuibute to the oVF!r<'l1l economy
• 'Minimize ecological foulprint in lhe conception, production, and ddivery of good:;; ond servic:es
• Alford acc.p.ss, to products and ser;ticcs (e.g. leasing nr sharing) ratber ~h::ln focusing on ownership
Mr.:;;koun9 to the Poor 59
r----------- -- .- .- --------, IJM Element
Interest represeot'aLion of all stakehulders
Long-term profit matlJ9p.ment r<ltner than s~:)rt-term profit r.1aximi77,tion
Guiding principles
• Consider wnat matters to the stakeholders. Clnd what I:: to t~eir ad'lC1nt<,.ge
• Demot1~trate through busine::;s policie::. and ethica i rmdits that all stakeholders ~ f1ler~.ts are being mnsidered Treat \rllpover~hed customers Cl'3 primar/ stak~ holder~
• Encourage cmploy0e~ to ha~;e a tirst-hand expcr:enc8 oi the mal world of low-income consumers
• Ens11re th.,t decisicf)s, acLicns, procedur~s, that .:ire promulgated do flo t fUlti ler &;;adll.mt3ge ifJlpOVeris.hed cuslomcrs Erlyaqe in Jialogue wit!' impovcri~hp.d customers to beller ensure that their interests are he'lng t(lken into account
• Expa:'ld czpabilities of imfXlverisneti cust Ot:ners t o cnab',e n richer ~rm-<on!'ilJmer relationship Include CGnSIJmp.r education and counsel ing as part of the mnrk-at irl~ strateffii so 0:) to cnabl€ custorm::rs to mc.rke b ette~ informed choices Make products and sp.rvices ~Hordab!e( accessible and availabl p.
Ensure that informa tion auout p~ct!. Jcts and ,crviC]' is easily understood by impoverished custom<!($ .. - - . __ . Ai IT] Gi l creatinq SUSTainable value in the iong nm ConsiJer :;ocialgoals as ends in themselves r<3ther than as mca.1S to a finandai end Increase busires.c; sll("ceSS with a long-le!"m perspective bas~:i on socii'll, erlvironmental and fim:"lcial (eturns Vip-w impoverishE:d markets a~ :;ources of opportu(liW, innovation end ·:ompctitive <lcNantnge
• Support local comrnunities in their holistic deve lopment in terms of supporting _edu('~tjon. health, sports, the art~ etc, <It a sca\e and focu::; befi tting the !e cal c.ommlJnity and cuhure
'----- .. - . _ . - ------------
JOlJl rlii l of Je!->lJit BllsineS!> Fdllcation
Endnotes
1. See Allen Hrlmmonri, William j, 1( t::I.trwr, Rob Ka':Z, Julia TT'3n and Cc llrtlaLld W~llke[, "The Next 4 'Ai11inn: I\,f~~ket Si:re and Business :::irrategy at the Ba:ie ()frhe P),rnrnid,» Retric:-ved May29, 2007 from http://www.wri.oI[~ihu~in~~/pl1hs ... ne.~crirtion .dm?rkl::4142;A.iJen Ha mmond ~ncl C. K. Prall.Jad, "Selling to me Poor," Fort~en Pouq, 142 (Mayl)une, 2004) , 3()-37; Stll~rt L. Hare and Clayton M. Chrj~(:I\s(:(I> "Thl.! Gl~"1 kill': Drir .• ng Innuvation frol\l lhc fi;tM; ur the Pyramid ," flflT SJM.n Mamtgcmcl : Nfvjew, 4..f (Fall, 2002;, 5 I-56; C. K. Pl".J ... laJ, FortUJle<Tf tbe &''')In of ti,e p)'r.:mid (New Jersey: Wharton Sellool Pu blishing, 200S); C. K. Prall;dad and Allen H:a.mmnnd. "Serving rh t" World'!: Poor, Prolit;l.bty." tiarll<1rd BtI.~inI'SI &iliel.lI. 80 (Seprembel, 20()1), 41-:-S7; C. K. PranaJf\d an<lStuarr L Hart, ·'lhe l'ortllne ~ r Iht" Rottom of the Pyramid," Slrdfegy+Buj'irttsJ, 26 Uanuary, 2{)02) , 54-6/<
2, See Clayton M, Chrisr~ns.e:n Jlld Michael E, RqnoJ, n,~ ImwlJtirod· SOI'iltiOil (Boston: Harvud Bu~iness SdlOol PICSS, 200); Sl llCl/'l L. H;l.l"l, Capiwti:,m at the CnJSSJ"oildJ (KcIV J(: r~"I:.r: \\?Luton School Puhlishing, 2005): Kay Johus{1ll a.nd Xa Nhon, "Selling to The Poor," Time, 2005, Rt':(riC'ied March 10, 2007 trom http://www. [ime.cnm/riml' lJn~g'''1:i nel::;J: ridelO,91 7 1 ,}050276,00, hun!: c.. K Prahabrl, F$JTtum~ li t tIM &ttont nftk Pyramid, 2005; Clifford J. Sdmh 11, (lon K. Rahrr and Mad< Speeo::, "Globaliu rion, ·lianrn,m13dolJ, and Qllaliry ot" l .ifi-: Reflections on IC MD-8 and P.Mtid~li\'l,: Mark-eliu); "lid Dt:vdupment," .IlJllrIl.1t ~r Mdo"()tr.rlrket1ffg. 24 (D;:O:;I . tLII:'1", 2004), t68· ]72.
3. C, K, Prahabd, Fortllnt ill rhl Bottom oJfbe Pyramid, 2005; V, Kasturi Ran r,;ln, John A. QlJdd l, c..;u.~tavo Hr.nero ;1na Rrookc Ti;1l'Tl)n (hh), BII.!iJ-le5J sotll.tiomfor th~ GI"f"d Poor (San Francisco: JI)S~ey-p,~,,,'1, J.I)07); Gary SilV(,l'Ol;l.Il, "How may 1 help yO\l~," FhUl1!t:i(f[ nm~s, (february 4 1),
20(6), Wl-W2; Haig Simuul;ul, "Ne!ioe dlarts low-income rerritOry," Finan£1dl l'imes, (ful}' 14, 2006), 15.
4. .v,t' C. K. Prahahd, Fortmu.-;t the BoUom a/the Pymmirl. ]005; Ran~n e[ aJ., BI"illm Soilltions for the Glob-li Poor. 200·/.
S. As~n Insnnue, "/\ dooer look at business education: Bottom o r ,ht' Pyr:1mid," JU!le 2007, Uerrir:voo Ju1~' 1,), 2007 (!'um hul>:II .... ,ww.Lt:yoIl(1~"!C)-,pinstripes.or~lpdflD01~VJJ
6, The$(; illdllcle dle EraJicaJillt F01M"T'y rhrof1:(hPmfie cOnfCfCJ It;C "'l'g:Uli~d by the: World R~~Olln.:cs .Institute (\VRI) at San Fnnci§cQ, Ca.lifornia in December 2004; ,he Globtd P{)Wrly: BIIJimt.lJ·
Soh,tiOIU ,mdApprf!rrdw .. 1 conn-renet' ofl¥nized by tbe Harvard Business Scbool'~ Social EJ1[erpri~c Tn it1~riv(' at Cambridge, ,\lI.3.~,~ChI 15ett.~ in D<!c.emhr.r 100,): rhe twlillf!'i Uppo."t1mitydlld lmll'IIJllt;,m
rl~ :br: BtCit:: ofthf Pymmid conference (Jte~lli7i'd hy tht' VlRJ in partnership with the": M1l1dl;\t(,rai LI1\'~~'tn'I(.:nt Fund and Ashokcl at ~'fc}lil:U ,1I1U Brazil in Aut:us[ and Seprember 20U';; me BmillJ!JS wit" rour BiUifJn: Crr:ating Mmunl Vttlu<." at rb!: &Jc 4 tbe Pyt'rttxid 1,:OII(c:rem:e urganil.cd by the
Willi:un Dilvidson Instiru[~ of the Un ive!sity ofMidligau ;uld LI.e C~ulc:r fm Sustainable Global P.merprise ofCmne.lI lJnive.r.'1ir}, u Alln Arhor, Michigan in September 100?; the S',r/ainnbk bmoMtioli1 at the R4.re ({ tllff 'jrdJnid (".(lnfercnce o[~l111ed by rhe A:1lm { rnivt'f<;iry School (I f Economic~ at Helsinki, !'inland in Septemh~r 2ftflB; the (7rt11.tin[1t Sl;wi'd ROdrimap: rof!trbf)mti,.or.~' AdlJtmdng tilt:: Base ()fth~ Pymmid Community conference organized lw the Willi ~ln O~vidson InSliL uLe awl me Ross School CtfBusinc;s of [he UJllvC:Jsily ufMichigan at Ann Aroot, Midljg<lll in October 2009; and tJl~ TmpacrofBllScofdN PymmidV;"JNtm conferencc Ol't;alliuu by the Ddfi: Uoiver:-;ity nfTemnology at Delft, Netherhnd~ lO November, 2009.
7. C K. PF.l h .... l<ld, .Foml1~ lIttlJlB(lttomoftht Pymmid, lOU), p. :W. 8, David Caplo\>} I1., The Poor Pay Mnr~ (New York : Tht" Frel" T'rC$S, J96n. p, xvii. 9, &-c Bri:m Gmw and [~ilh [psrein, "'!b.e: Pov<':l'Ly B1L5iJ.CS!; ["side U.S. companies' :wdacions drive
co extract morc Pl1JG t:I (rom L1~ 1I ... liun 's WOrlJ.llg poor"', Busi"mWi;d! (Mil)' 21, 2007), 56-67 : R(ln:dd P. Hill, David L Ibmp 'ind LinJ~ Silver, "The Rem-lll-OwO Industry and Pridll~ l)i~clrmlrl' T~(1ks," jOlfr11(JI of PuP/ic Poliry & Mdrkeril1g, 17 (~pring. 1998), 3-10; Rhoda H, K~,.p~tkin , ~'loward:l .biI :lIld JUst Markctp];Jce ~or All C(Jn~u mers ; 'file Re5ponsihilili e5 of .vjat"lu::wIJ!; Prufessionals," journal a/Public Policy & Mffl'ketillg, 18 (Spring, 1999), ] I ~-l 22j l'ardcit
1 i
j
Mar l:.~ tjng to the Poor 61
£. MUl'ph)" Gene It LXl,ni[lk ~O[lTl[ln E. ~owie, anclThOIllas A. Klei n, EI!Jiml M,1r/(efillg(New ]t:ISC)': PICilUo:::-HaU, ?JJ05}: G~ry RiVlill, Broke, USA: From FJlw/1S;'0p; '" J~hI~tty inf. - HtJl/J tk Worldrlg p,,(W Hr.rame }jig Burin.w)· (New York: Hart't:LCoUins}; Yobnd1 YOWlg, '''!-ring!:: ClCollomy' pr<.'ys on the poor", USA 1bdiIY (ja.tlU;1.ry 26, 2006), AB.
10. $fe An<,>d Karm,ni, "The Mlrag~ uJ'Marlctting fQ rhe Hnr.torn of {"he PYI'amiJ: I low the PriV:HC ~("c.r(]f l.:<l.n Help Alleviate Poveny, Q C 11i/(!r," ;;z Mtlf1t1grnlffl! RI:IJiew, 49 (Summer 2007), 90-1 11.
11. Sec:: Ilcruando Dc Soto, TlJe Mytl!ry 0/(.;1P;/(11.: W~I' CdpitaJiJltJ Triumphs j" til(! We,t and Ft1il~ I!vcrj w/JI'Ir Else (:-.l~w Yodc B~ic Rooks, 2000) .
12. SCI;; David Caprovit?:, Tiu Potn Par Morl:, 1%7. 13. Ge ne K. T.~ctn i:'l k and N k .liolas j. C. S:mlos, "The irmO:rJarive Justice Moud: An r:rreu~' ion of
S-D logic rn Dimibulivc Jll~l icr: and Mack('"ring t("o the T'onr," Pap:J" prokIHCJ at the Fo:um nn Markers 3Jlli Marketing: Enending & lV;c.c-Uominall t Logk, Sydney, i\u~tralia, Dcccmb~r, 2(108 a!ld fVI'L\CI)U Lill l; in mcjolinIalofM:uywMyketillg. NicholotS J. c. Santos and ( ;ent: R. b C:ZIliak., "CadlUlic Soci.a! 'fe1ching ann the COl\5rruc,iUII of 'JUSt' Markers", Pape.r prt:~nterl at th~ ti lb In ternational SymposIum on C adlolic Sociol T hough t :and M..1.n~cemellt F.duca Ljon ar lh~ Ponritictl l1ni.'t'l"siry ofSc. ThU\l"l,,"'L'i , Rome, [taJy, Octobtr, 2006: Nid w las J. c. Sa.nto~ and Gene R. u o .niak, "Marketinl!; LO the Poor: AS\\,70 T A..rn'y~is of the lvlackcr Consrrud.ion Model ror .t:Ilf;1giLII?, llUl-JDverwhcd Market Se.r;mcnt~," Paper prescnleJ at tbe 3rt1 Int~rruJ.lion,, 1 COfllereo(.t' UI) uHpOrarc: RC5ponsibility Ilt the: l.ollc:1 nn Bu~jnt::)s School, U.K., July. 20l~1; Nk holas 1- C. SruJlOS a nd Gene: R. 1.;lc1.ni<lk "The 1 111\.;~rati \'c Jml~cc Model :lOci its Relevance to BU<jjncs~
Edllcation ~r Cathnllc l'1miness Scho(.>l~:' rolpC~ pl\."";5cnreG at th .. / m lnccCUOlTiona/ Coufcrtlll':c on C":atholic. .s oc.i~ 1 ' /'boughl a nd Management Ed~ICR( jon at the I)n iver.sity of KOlle Dame, June 'W1l8: Nicholas], C. Samus and Gene R. Lxz.n i ~ k. '"'JII.~t ' Markt:W frOIi. [he pt:fspective ofC.:nholic
.sodal Tt:achi ll l!,." jour'MI ()fBUJ;"'~~ Ed'iff, 89 (?009J. 19-38, Nicbola::; J. C. Silmos Rnd Cenl! R Lal.:t.nia1., " .'vhrketing m th~~ Poor: An InregnHivt: ]usdct: Modd fo r EngaglI1g Impoverished t ... 1nrketing Segments, '" !OWI'I;A! ~r Publk P"liry 6- Mllrkrting. 2B:l (2UU9), j~ IS; Nidl~)las J. C. ~allto.~ and ('7t:lle R. Lacwiak. "M otrketi nc to rht' Pnor: "[be h llegralive Jllstia }Jodri ns a Pedagogil. .. u l b ul fo r Ellhancing lowgrit), in M:m:lf;CulCLlrEJu..:atioll," Wur.kil~g Paper,
14. ~e Mkhad Naughton with 'j"h-nillas Rausch , JulLJl [ouLLcana , ,L1U Ernest Pit'cu rx-: i, ~ Rn.~iness EduClnion at Catholic. Uni ver:;i t if'~ : AIL Expl or~l.t ion of the Rol~ nf M i.<;"lon-Driven BllSinc-Ss Schc-ols ," R:lckground paper for lbe 7th InteL"LLationu Con~rcn("1"': nn C~ tho(ic SOd.1! Thought and Mail<lgl"':mem: Educariol1 oi l [he Unlyers:cr of Notre Dame: June 2008, p, 4
J .1. Thid . p. /.1 ] tl. See .5t t:l-'hcn]. PortlL , Juhn J. Mcr nlt, and Josl'! ph A. DiA..t*e!(l, <a l3uliillc.!.S Education .:I. t Cuholic
UujYCTl;ilk:5: Cunem SmtLIs nlld flume Dlrtt:lioru," jtrllrmd 4 Cntlrolic Hig/JeT 1:"dIlC4tioll . 28: 1 (2009), 3 ·22. p ro 14· l/
17. JOhL1 D. I:Hsho")p. "A ~ro.~orlc for Di~cm;:; inl; ~onn3[i"e Th~ries of Busincss EchiQ,M BUJ·in,u PthiCi QUffrMr/y. IO: j (2000), 563-92.
})l. SC~ ~amn~ al1d Lac(.niak, "'1hrkcting to") the T-'ool": An Imegnuj"e JU!iI.ke MOXIe! fo r En~jnE Impcwerish(."u M ·.l.ruti.llg S<gmelw,,: ."
19. ILid. 20. Adap·u::d from NichoJa.s 1- c. S;mtru and G~oc R. L\I:xniak. "'Just' M"rkets From [he:: perspt:(;cTVt:
of C:uh{)Jj(, Social Te:Khing," .!olll"r.£JI "fB!lJir.~·u Ethics. 39 (2009), ?9-38; NidlUla~ J. c. SantI..'" fi nn (;\~ne.it 1.:u.:z.u iak, "Tbe 11liJ...-g(:l.t;y.:: Justi~ Morlel and its Kele'l:UJcl": to Ousiut'Ss EduCl"Ition [It
C :u holic J3l1;j ino;~ Schouis, " Paper pr("~~nte(\ ~ t rh"'"lth fmcrua[iollal Coulcrencc OIl C :ltho\ic Suciall1}ouguo; and M3.n~gemen r Ed.uo~~ rion ar [\1 (: UnivCl'~jcy uf Noue Dame, June :lOOi:t
21. Call1t'Jl;c Church, Comprndil~m I)fthr Sodul Doc;rjJiC of tIl(: Ch!m:h , (~/R~hillb"'on DC: Unictil Stares Conieren('.e (If C~tholic BisllOPS, 2004).
22. Q.iw[lld A, M.asGuenbas, Ram Kcsavan o.m.1 MichaeJ Bem:u:chi, " BlJyt'"r-Sd lcr Iuformation Asymmerl')!: ChJ1\!I~cs to Disrribuun: :mrl ( :o
62 .IOI)rn;,,1 of JC::;Urt 8lJ!;!n~!I~ Fducation
:l4. Hrian Grow, "Talk Isn't So OU':ap On :l PhQn~ Ca[d~ , BUJilll.'n U:}t'k (Iul y" 2.3, 2(07), 64-65. 21. Ib;J. 26. Srt': hnp:fJwww.gl""J.Il1ccn-info.mgl 27. SL~phen L. Vargo and Rvb~rt E LllSCh , "Evolving to il N~w D-om inaLlL Logic fur Markct:iug" ,
Joumlzl OjMdl'kdirtg, 68 UanuaLY, :mu4), 1-17, p. I. 28. lb;d., p. 6. 29. C. K. l'rahaJad and Venkauam Ramasw.a.my."C.o-cTt"ation ("lCpeciences: The next pt;1cr;cr. in vaJue
creation, ~ .Iormlt11 r'lfh,ur;ufir.,t' }II/ttrkrting, 1 A~3 POO-l) , 5··14. 30. Jeremy C,1">1 nt, "Switdl (0 tile low-inmrnc consLUner," Plum/cilll Timel. (NoVCJllb~I· 15, 2005), 8;
Ga_ry SilVl?rJUlIlL, "How m:"l.y I hdp yOll?" Fintincial Tinw, (Fcbru<u)' 4/5, 2006), W I-W2.
3 1. K Sinha. J. Goodman, A. S. Muukt:rjct: and J. A. Quelch. "Mark~tillg l'rtlgrams to Reach lndi-a 's Ullde~rved". in Rangan et aL (eds.), BJi$i~" e1$ Jolurio"j for ~heglobal poor, 1I)U7, pp. 40-49.
32. U .~. Catholic tiishops, t:conomic.1.lSticc for AlJ, 1986, in D . .T. O'Rrip.n :md 1'. A. Slul1non (e(k) . G1t/w/ic Social Thought.' The f)flr:tmlCJ1.tl"~Y Herifage (M~ 'yknoll, N~w York; Orbi:<l Dnob, 199?) 572-680. p. 574.
33. K. M3nvaha.A. B_ Kalk...rui,J. Ie. Mokho p3dhyJ.y .Jlul S. Si ... akumllJ, ~Crcating SII"OIll; BusiUQSCS
by Dcv\!ltopillg ;!lId Lc·/craging the Prod ll ctivt: Capacity of thc Poor", 11\ Rall g-.u t c: t aL (cds.) , BUJin('1J J·,JimioTIJ for rh~ global pM" 2007, 167-1 ?2, p. 16tl.
34. See Cathe-l ine Caufield, M,1Stm of11llJSiotl: The U70rtd Bank and the POlJert)! r!fNt1timr.r (Nr;w York: Henry Hoir :md Compwr, 19%); ,)unlr.y Hoffim • .nl1, "Cl-ash of (; lnMl i7J\ tion.~". Pcrtign.Affo;'·s. 81 :4 (1.001), 104-115; V. Ka.<;turi Rllngan and. Arthur Mc:C:alTrc:y. "'G lobalil.;ujon :md [he POOl," in John Quelch and Rohic Dcsl:-'il.IJlI~ , ~ ... , nJe GMbIJt Md-rkrt: Dtf}(:fqpillg d Strlltcg)' fo '~fmrfg~ Aao:.l· Bordas (Sftil frnmc.is(.'u: Ju~::;~r-Ba~s, 2004), 335-360; V. KtiSturi Rangan ;lnd AnitLLr McCafn:~. "A 'l:lI.'ilo!llC!c-centric· view of global economic development", in S. C. Jain and S. Vacluni (cds.). MlJ.ltilliUiollal COT/}()rr1/iom and Global POi1l!Tty Redllction (Northampton. M.A: Edward Elgar. 2006). 177-7.03; J~seph E. Srir,liT7 .. GIPb,JJzn#ollI1Nd Its Dircollfmt:; (New York; W. W. Nnm;m &: Company, 2002)
35. Cau6dd. M&tm a/Illusion, 1996. %. Ra.Llg<1II <'nu McCafIrcy, "Glo\.:.ali"L.ll.li (J ll and rhe Poor," 2004; It;mg'-dll and McCalJ:re}" "A
\.'t I.s loIDu·c;cnrric.' view or ~lo"a1 economic devdopmcnr." 2006, 3"/. Prahalad, Fortune of fh~ Bottom (lj'the Pymmid', 20U5. ~8. Benedict XV}, Ang~bH (VOriQIl riry: 1.ibr-eria Editri ce VariC:~Il~. \I·~ti (".aT) City, 2007). C;)tholic
ChllTc.h. Compt11d'u.m, 2004. 39. A. V. Abela, "Prollr ;)}"I(-\ MolX": Cathoric Social Teaching ~1Il] lhc Purpose of the Fin\1", lVI/mal {)f
BYJin.-sl Erbi~. 31:2 (200n. 107-116; J. C. Collius alld J. I. Porras, Buill fo Ltl$t (New York: H;trperCoUim, 19')4).
40. G. P. Zachary, "Do Business and Islam MiJ::~ Ask Him," New lQTk tim~s (July 8( 2007) , BU-1. 4L Ibid. 42. See Fabio Ton/Ill T.o ndono, "Ignati-ao Spiri!II:l.lity in Jesu.it Bu.~in5~ Schools," Rcvwltl ofIgn4ltitlll
Spiritu,:ii t},, 95 (2000) , 41.45. p. 43. -;. .. . i 3. Adolfo NilXIU.S, SJ. "Depth, ULli\'Cl1/tlily, :Uld Learned M1nislL')": Chall~lLg~s t-o Jesuit II:gh<:1"
Edul;;lLioll Today," Spoocb ddiv~red at the Nen:",ol"killg )C!mit Higher Educadon conference in MQit:u City, April. :lU l 0: 35th (;enCI'-a1 Congregation of the .society of Jesus, De<:ree 2. n. 20.
44. Pope John Paull!. fix Cork Erc/t5iM. Aug.ust ]990. n. 32. 45. See W iUiam W ilkie and Eliz:lherh Moote, "M3c::mlmrk~ti ng;C$;l Pillar o.f~·l:ll"kt: tin& nlo(lght,"
J(}~rn({l ofMacrmnt1rlr~tifig. 26 (D~cemhcr, 2006), n1--232; David G. l--.t1ick, "TI le EuJ(.~) I.)f M:lfkcrine. ~r,d Lilt· N~gl~ct of MOlal RO::SJ.&Ul~ibi.li:)' hy [he Americill\ Matk~Lillg AS50oation," }OUl"lldt of PIlUic P{)liq d ' Mdr.{·t!~tllg, 26 (bill, 1007), 28~-L~L
46. St.-c Gen~ R. Lac..-m:iak ;wd PatrickE. Murphy. otDimibutl\'e Justice: I>rCSiing Qua liotls. Eme[ging Directions, and the Promist! (If H.awlsian Analrsis. '· .!oumo{ of Macromarketil1t, :l.R: 1 (/.008), 5 ~
11. 47. See F.dL l~rrl() Porter, 'The Vatic1n :mn Gl(lbaii-zacion: Tillk("l"illg wirh Sin, " The N (/Il York Iiml!S,
(April? 7.008), Retricvr.n .I\ lwiI 7. ?.o08 [IUn! hnp:IJw,,,,w.II)·liaUc.s.w l1I.I21l08/04/07/opil1iuul
J i !
t.,·Ii:uketing 10 th~ Poor 63
U'lmon4.hun1?_c,,- 1 &ort:C-s!ob-ill. This article H·fer,; to st:w:men{S made by Msgr. GirulJ'rancu Gironl. Regent of the VatJ'l.-ol ll I't:lli tc~l.ri li rr to d:t: L'OSSI : r\o"acor~ Rorru no.
4R. KIrk O . Hartson, " Husine~ .Ethics: Jt:!<UIr J:l.usincs. ... Smoul SCI'!lh:tics for Fng<lging Rmin(':~ Excc.udyes," Pa~r preSl!mcd at r11t jQior annual conreccm .. c of th..:: l UI(1'l1atio:131 AS~('Iciatiol1 of Jt:suit Dusillc!i..~ Scbool.., itn<l the Cnlleagut':" of }l:Suit !)lISines~ Etlllcatillu a[ f.ol'dham University. No:: ..... Y'">ck, ]uJy 200g; Ct'~ I(~ R. Ll.:r.nia1: and Pl'orri .. k E. Murphy, "Distinctive:: lmp;:raLiv.::'s 10J' Mi~~on Ur.h'Cn Catholic Uu...iucss Eclut:.:ltiml," ~per P1"(;:!>el1tr.rl at the C3.tholk Business School }<:Jucation 'Jask Force Proceeding.; al Portland Ullivcr~iLy, O~goll, A"<IEI1St ).fll 0,
49. S"JJl[OS and Lac'l.niak, "Marketiu£, to the PeG[; The inugrmiIN:jJ,Htiu M",dli :1& :I Ped<lgogica1 1ooi fur Enb:l lld n.g. Tntegrity in Management .Educal ion . ~
50. Ibi!t 51. l~rum S3.lll0S <lIlJ I.'lC'<:.niak, "'1"fl'l l'keti ng rn rhe Poor: An IflIcgrarlvt: Jusoc(;: Mood fo r EnglgiliE
I mpu'tL':Ji ~lled Mllrl...::cing Segments," p. ~.