Can companies fight poverty while selling their goods and services to poor people? Can the steps initiated in the South (development aid) be transposed to the North?
In parallel with the work they do under the promotion of diversity and inclusion of vulnerable groups, some large companies develop innovative programs to fight against poverty. The aim is to reconcile the objectives of economic efficiency with a goal of social inclusion, addressing the poor. The "bottom of the pyramid" (or "BoP") is thus seen as a market to conquer, solvent and profitable as long as firms adjust their production to the characteristics and specific demands of poor clients. Unlike low cost approaches , BoP approaches propose to offer the same goods and the same level of services as in the conventional circuit.
Originally implemented in the context of development assistance, these programs can be a source of opportunities, strategically (new markets) and technically (invention of new models of action on the market), while being a part of firms social responsibility. BoP programs may also have positive effects on the internal dynamics of firms (employees engaging in projects with high ethical and societal values) and generally, on social cohesion (reduction of poverty). But there are many market constraints which limit the scope of these projects in the North. This note provides an overview of the steps already taken and raises a number of questions about the complementarity of the BoP approaches with social policies.
Summary
- Challenges and opportunities of BoP programs
- What are the prospects in the North?
- Author: Guillaume Malochet, Social Issues Department.
Keywords: Base of the Pyramid (BoP), businesses (Corporate Social Responsibility), social inclusion, poverty, social entrepreneurship.