deLAB - AIESEC

Inclusive Business Theory & Practice AIESEC - Torino 20 Novembre 2014

Lucia Dal Negro @luciadalnegro

Outline • • • •

Me De-LAB Conceptual Framework Examples

1,5 h

• Mock consultancy • You have the floor

30 m 30 m

• Questions and wrap up

30 m

Lucia Dal Negro Copyright De-LAB 2014

Me • International Relations UNICATT • Master ASA “Ambiente e Sviluppo” • MSc Environemnt&Development @ LSE • PhD in “Istituzioni e Politiche” UNICATT • Lucia Dal Negro Copyright De-LAB 2014

De-LAB

De-Lab is a group of professionals whose different technical skills are required to develop applied research projects, consultancies and initiatives in the field of Inclusive Business and Social Innovation.

De-LAB is the Italian focal-point on Inclusive Business strategies.

My current research focuses on social innovation and sustainable business models, with a particular attention to the scalability and replication of inclusive business strategies and CSR projects favouring social inclusion dynamics through social networks.

Next release Lucia Dal Negro Copyright De-LAB 2014

Online Dec 3rd

CONCEPTUAL FRAMEWORK & LITERATURE

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THE “CURRENT” DEBATE DEVELOPMENT ASSISTANCE AND THE PROFIT SECTOR: FROM SUSPICION TO COLLABORATION

• State-driven

- Private actors involved

VS.

• Large-scale interventions • Strategic sectors

- Small projects - Local approach/Empowerment

Prominent contributions from: Strange (1996), Easterly (2002), Collier (2003), Pollman (2009), Moyo (2009), Bird (2009)

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THE RISE OF A NEW PARADIGM

Ethical Business: coupling a profit-driven approach with ethical values informing business expectations and methods

*ETHICAL VALUES here conceived as environmental and socially-oriented

seizing its meaning:

No univocal definition theoretical applications

catalyst concept with different

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CLASSIFYING THE CONCEPTUAL STRANDS

Corporate Social Responsibility

beyond the core business of a company yet impacting on it (e.g process optimization, brand positioning)

Inclusive Business: entrepreneurs ensuring social, monetary and environmental returns through their own core business “Business activities that expand opportunities for the poor in developing countries” (IFC, 2010).

Early examples: • Microcredit • Fair Trade

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A DEFINITION LOST IN (BY) THE MARKET

Source: Prof. Stuart Hart, 2013

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THE BOTTOM OF THE PYRAMID THEORY (C.K Prahalad and S. Hart, 2004) LIMITS

• Business constraints opportunities

Cost structures No innovation

• Contribution reduction

No durability

to

growth

are and

Need to productively engage people living at the bottom/base of the pyramid GOAL: BUSINESS CO-CREATION TRIGGERING TRANSFORMATIVE DYNAMICS IN LOW-INCOME COMMUNITIES * TERMINOLOGY ISSUE: “BOP”

initially adopted by the BOP Global Network

“INCLUSIVE BUSINESS” used by the UN Lucia Dal Negro Copyright De-LAB 2014

business poverty

….DIGGING INTO THE THEORY

THREE CORNERSTONES

Market potential of the BOP tier from unclear figures ($ 0.3 trillion to $ 13 trillion market potential) to the idea of INFORMAL ECONOMIES (London, 2007)

Partnering with the poor invest in infrastructures and trust.

Beyond looking at them as customers towards considering them copartners. “Asset activators” (Hande, 2013)

Innovation marketable solutions to serve the unmet needs of lowincome communities. Rethinking of technology platforms, distribution models, distributed operations, low-impact materials.

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HENCE • (IFC:2014): “Inclusive business models are commercially viable and replicable business models that include low-income consumers, retailers, suppliers, or distributors in core operations. They are correlating positive business growth with business models that offer goods, services, and job-opportunities to lowincome communitiesâ€?.

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Examples from the literature

Citato e illustrato a TEDx Verona: https://www.youtube.com/watch?v=H1F7WOdAsRY

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De-LAB case study

The Dark Side of Green Technologies: social impacts of PV panels in off-grid rural villages in Senegal Lucia Dal Negro Copyright De-LAB 2014

And now‌the word goes to you!

Lucia Dal Negro Copyright De-LAB 2014

Contacts Lucia Dal Negro Lucia.dalnegro@delab.it Dalnegro.delab @luciadalnegro

Lucia Dal Negro Copyright De-LAB 2014