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Responsible and Inclusive Business Hubs

Sector: Manufacturing (Industrial) • Location: Überreg. Welt

Source: German Agency for International Cooperation (GIZ)

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Project description Responsible and Inclusive Business Hubs 2013.1012.7Current situation72% of the poor worldwide are living in middle income countries (MIC). Some of the MICs are emerging nations that are considered as global development partners for the German Development Cooperation. Here, pressing problems (poverty, social change, environmental challenges) are facing both highly dynamic econom

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The project “Responsible and Inclusive Business Hubs” is an infrastructure initiative in the Manufacturing (Industrial) sector, located in Überreg. Welt. Taiyo aggregates data on it from German Agency for International Cooperation (GIZ).

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Description

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Project description Responsible and Inclusive Business Hubs 2013.1012.7Current situation72% of the poor worldwide are living in middle income countries (MIC). Some of the MICs are emerging nations that are considered as global development partners for the German Development Cooperation. Here, pressing problems (poverty, social change, environmental challenges) are facing both highly dynamic economic players and a high potential for innovation. Because of the rapid development of MICs during the ongoing globalization in the past 20 years a lot of people have escaped extreme poverty. Like in industrial countries highly dynamic businesses are central players for this development: They create jobs, capital, know-how and tax income. However, business innovations are not yet designed in a way that includes the poor part of the population into business models – neither as producers and business partners, nor as consumers. The core problem hence is: Poor population groups in the three selected regions of the German Development Cooperation (MENA, SSA, SOA) do not benefit enough from inclusive business models with a focus on environmental, social and economic development, because these are often not designed to be inclusive.ObjectiveIn three regions supported by German DC/IC (MENA, SSA, SEA), poor population groups benefit from inclusive business models with a focus on ecological, social and economic development.Indicators:1. 18 companies that cooperate with the RIBHs have each started to pilot one inclusive business model for the participation of poor population groups; of these, 8 companies have each piloted one that is of special relevance to women.2. 15 programme heads from the 3 target regions prove by means of plausible examples that they have continued RIBH approaches in their projects.3. Based on their activities, the RIBHs document 4 best practice examples each for BMZ, including one that is specifically relevant for women.4. The RIBHs present the positions and priorities of German DC in the field of CSR/inclusive business at 3 local discussion forums per region.Methodological approachIn the context of the project Responsible and Inclusive Business Hubs (RIBH) are implemented in the three regions. The RIBHs constitute a network of CSR centers of excellence to convey result–based methodological skills of the German Development Cooperation (EZ) (multi-stakeholder approaches, UN Global Compact networks etc.) Furthermore they foster the implementation of inclusive business models in high dynamic development areas. In doing so, they link up with EZ structures on-site and are coordinated by a central management unit. The RIBHs are based on the long-term experiences that the Center for Cooperation with the Private Sector (CCPS) in Pretoria, South Africa has made.ImpactsThe target group of the project is the low income population at the bottom of the pyramid (BoP) in the partner countries, whose living conditions shall improve through responsible entrepreneurship. The BoP is defined as those people having a per capita income of less than 3.000 US$/ year (World Resource Institute). Women, active in rural farms and involved in the business models as suppliers or producers, make up a major part of the target group. Through their integration into business models as producers, suppliers, business partners or consumers, the target groups shall have direct benefits from better access to higher quality goods and services. Included in these target groups are for example employers and employees and their family members, as well as stakeholders like residents and consumers that directly or indirectly profit from inclusive business.

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