PRME/GIM Webinar Agenda5 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)

The Growing Inclusive Markets (GIM) Initiative

A new perspective on private sector contribution to development

Inclusive business models / inclusive

markets

Developmentbenefits

Business benefits

Philanthropy

CSR / Social investment

Risk

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

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.

• 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

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

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

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 China’s 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 Bank’s 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

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

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-

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East

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Empirical research approach: 120 case studies developed (1/2)

28%

50%

11%11%Entrepreneur

Employee

Producer

Consumer

Type of inclusion

26%

23%40%

7%

Type of company

4%

MSME

MNC

Large domestic (incl. public)

Non-profit

Cooperative

28%

25%17%

19%

12%

Region

MENA

Sub-Saharan Africa

Asia & Pacific

Eastern Europe & CIS

Latin America & Caribbean

Empirical research approach: 120 case studies developed (2/2)

0

5

10

15

20

25

30

35

40

# of cases

GIM Case Study Database

Description

Results

Environmental: non-polluting and renewable source of energy

Partners

Suppliers: Tata BP, Shakti Electronics, Anand Electronics

ClassificationInclusion: 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 children’s education and health.

Constraints:• Negative perception about solar technology• Different clients’ needs and payment capacities

Opportunity: most of India’s 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

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

StrategiesCo

nstr

aint

s

Strategy Matrix – A tool to understand constraints and possible strategies

Market Heat Maps – A tool to improve market information

Percentage of households in Guatemalaliving on less than $2 a day with access

to credit by source

Actor Framework – Who supportsinclusive 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

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

Global, Regional and National Reports

“Creating Value for All: Strategies for Doing Business

with the Poor” (2008)

“The MDGs: Everyone’s 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)

Thank your for your attention

For more information:www.growinginclusivemarkets.org

PRME Working Group

Poverty as a Challenge to Management Education

PRME WG Webinar5 May 2011

Summary of the Working Group Delphi Process

Delphi Process

A practical management tool That helps group members that are in

dispersed locations reach consensus

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”

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

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

Topics of Interest

Topic Points WG Member Interest

1. Collaborating on poverty alleviation projects in developing countries and giving students the opportunities to get involved in those projects.

93 12 members

2. Case writing and case research on poverty

60 11 members

3. Poverty and its relationship to sustainability activities/efforts

44 7 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

40 4 members

Topics of Interest

Topic Points WG Member Interest

5. Poverty and its relationship to business ethics/corporate social responsibility

36 7 members

6. Faculty research 30 4 members

7. Cross discipline issues related to poverty

29 5 members

8. Corporate leadership issues as they relate to poverty

22 4 members

Topics of Interest

Topic Points WG Member Interest

9. Poverty and its relationship to economic development activities

20 3 members

10. Issues related to the curriculum (redesigning/revising/innovating)

17 4 members

Work Products/WG OutcomesTopic Points WG Member Interest

1. An e-education system or program that helps different disciplines teach or studying about poverty

89 10 members

2. Book(s) 71 9 members

3. Conference(s) 41 8 members

4. Partnerships between ‘rich’ and ‘poorer’ universities for mutual learning

34 6 members

5. Instructional material(s) 23 4 members

Work Products/WG OutcomesTopic Points WG Member Interest

6. Executive education guidelines 23 5 members

7. Webinars 21 4 members

8. Case clearinghouse 17 5 members

9. Corporate training guidelines 13 3 members

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

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

BLED 7-8 July, 2011

PRME Working GroupPoverty as a Challenge to Management Education

Current Status and Future Activities

PRME WG Webinar5 May 2011

Content

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

Summit

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

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

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

Workshop in Bled

• WG structure– Geographic– Thematic– Matrix

• Future work– Thematic– Deliverables– Time horizon– Possible funding

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

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

Deliverables for Global Forum in Rio

• Building blocks– CEEMAN Survey– PRME/CEEMAN Survey– GIM Report– WG projects and activities

Deliverables for Global Forum in Rio

• Work methods– Global survey– WG thematic workshop– WG activities and projects

Welcome to Bled!

• PRME WG Workshop– 7-8 July 2011

• Growing together by learning together about and for a better world