This research is carried out in Ecuador and aims to determine the Theoretical and Methodological Foundations of the Business Models of Anchor Companies and Inclusive Markets. For the development of the investigation, several methods were used, among which we can mention: bibliographic review, documentary, sampling and interviews. As fundamental results of the research, the following can be cited: the Methodology of inclusive business models is determined, the bibliographic and documentary review facilitates the theoretical foundation of the research and provides information on the foundations and methodology of inclusive businesses and anchor companies. The most representative companies in Ecuador are selected and characterized.
The social problems that are currently faced have become challenges for governments, which have not managed to improve the conditions of their communities and have promoted social policies that do not manage to attack these difficulties structurally, they simply propose short and medium-term strategies that they don't solve the problem.
In this sense, governments in their attempt to generate development dynamics have linked different actors, who, according to their competence, have jointly advanced in interventions, which regardless of their objectives and scope, have contributed to the creation of plausible alternatives and which are largely constituted in response to these challenges.
The proposed model will allow the poorest sectors of society to be articulated to the company's value chain, making this quintile of society a stakeholder, in turn establishing a link for the transfer of production technology and management of administrative tools. which allow the established businesses to be sustainable over time, which will be measured by the impacts in the area of application of the different efforts of inclusive projects to anchor companies, which will be responsible for the transfer of production technology and the different administrative tools that will establish a powerful idea in the application environment.
This model guarantees the insertion of the inhabitants of a country to each productive one, increasing production levels and offering a range of products that guarantee price levels accessible to all social strata.
Introduction
Taking advantage of the interest and experience in Inclusive Business (NI) I have developed a conceptual framework on Inclusive Business to facilitate its operations and improve the quality of its decisions and actions. This document is a conceptual starting point and its distinctions evolve over time, through other documents and publications, the organization of events and workshops, and above all through the construction with others through similar aspects.
Origins of the concept
“During the 20th century, the growth of developed economies generated the greatest amount of wealth in human history. This in turn generated for the first time in history the situation of extreme inequality with which we live today between the countries of the north and the south, and within developing countries, Latin America (LA) is the region of greatest economic inequality in the world in terms of income. Despite the growth of the region, this inequality increased during the last fifty years and, above all, the last twenty years, with foreseeable results: a decrease in real wages, an increase in unemployment and compression of the middle social class. Latin America has 586 million inhabitants of which 46% are poor ”, ((CEPAL), 2007). These communities, in addition to having low incomes,they do not have access to opportunities that allow them to satisfy their basic needs, while less than 1% of the population of Latin America has high incomes. During the period 2003-2008 Latin America has grown at an annual rate of close to 5% and has improved its employment and poverty indicators. However, given the global crisis scenario and the historical and contextual conditions that keep the region from meeting the Millennium Development Goals, growth forecasts for the region in 2009 are less than 2%, with a rate of unemployment that would reach 8%, leaving millions of people vulnerable to the effects of the crisis (During the period 2003-2008 Latin America has grown at an annual rate of close to 5% and has improved its employment and poverty indicators. However, given the global crisis scenario and the historical and contextual conditions that keep the region from meeting the Millennium Development Goals, growth forecasts for the region in 2009 are less than 2%, with a rate of unemployment that would reach 8%, leaving millions of people vulnerable to the effects of the crisis (During the period 2003-2008 Latin America has grown at an annual rate of close to 5% and has improved its employment and poverty indicators. However, given the global crisis scenario and the historical and contextual conditions that keep the region from meeting the Millennium Development Goals, growth forecasts for the region in 2009 are less than 2%, with a rate of unemployment that would reach 8%, leaving millions of people vulnerable to the effects of the crisis (growth forecasts for the region during 2009 are less than 2%, with an unemployment rate that would reach 8%, leaving millions of people vulnerable to the effects of the crisis (growth forecasts for the region during 2009 are less than 2%, with an unemployment rate that would reach 8%, leaving millions of people vulnerable to the effects of the crisis (ECLAC).
On the other hand, MSMEs and Social Enterprises are fundamental actors in the economy of the region. According to (FUNDES, 2014), more than 99% of the productive units in Latin America are micro-enterprises or SMEs, which indicates an important role in economic development and great potential in the area of Inclusive Business. On the other hand, the market and civil society have long ceased to be conflicting terms, since according to (SEKN, 2014) 57% of the non-profit organizations on the planet obtain their income through the sale of goods and services, using the market forces. To give some examples of the different market opportunities, according to data from the (WRI) in its publication "The Next 4 Billion", the annual consumption of low-income communities in Latin America is:
Health: U $ 24 billion
ICT: US $ 13.4 billion
Water: $ 4.8 billion
Transportation: $ 45.9 billion
Housing: $ 56.7 billion
Energy: U $ 30.5 billion
Food: $ 19.9 billion
Philanthropy and welfare have traditionally played an important role in alleviating the situation of low-income people, but they can only reach a minimum percentage of these people, due to their limited financial resources and organizational structures. Governments can scale their actions to serve low-income populations, but the inefficiency and instability that characterizes them in many countries does not allow the continuity of actions necessary to achieve a lasting impact. Businesses are currently serving only a third of the world's population and compete fiercely in saturated markets. They realize that positioning in developing countries will be crucial for their sustainability, and competitiveness will be a factor that guarantees their long-term success.It is increasingly clear to them that business cannot succeed in societies that fail, and that companies need to be involved in creating peaceful, stable, and prosperous societies. The UNDP Inclusive Markets report, SEKN publications in this regard and many other reliable sources have demonstrated in the last 3 years that it is possible to use market mechanisms to generate social value and inclusion. It is now clear that low-income populations, communities, or groups can be included in a value chain as a means to improve their quality of life and that market mechanisms can be used to provide essential basic services to populations that lack access to these.In general, it has already been demonstrated and accepted that it is possible to generate economic value and at the same time help citizens with fewer resources to more effectively exercise their rights.
The question that could not be answered is, can these types of initiatives make a significant contribution to alleviating the serious situation of poverty and inequality in Latin America and the world? How can favorable environments be generated for the scaling up of socially inclusive business models? I believe that the markets are very effective in the production of wealth but that they have not yet managed to develop mechanisms for the distribution of this wealth or include the majority of the world population in the production and consumption processes. Following a vision of sustainable economic development for Latin America, I consider that through a strategy of Inclusive Markets built and developed collectively, our continent can be a protagonist in the development of green and inclusive markets,responsible for transforming the reality of the continent and generating a demonstrative effect for other regions on the planet. The potential of the Latin American market and the role that grassroots communities, social enterprises and MSMEs have in the economy suggest sufficient scale to impact tens of millions of people in Latin America and demonstrate that it is possible to generate wealth with equity in an accelerated manner., innovative and sustainable.innovative and sustainable.innovative and sustainable.
Inclusive Business
From the beginning, the role of the company in society has been part of the opportunities we explore to promote social transformation. The question: How to make the company operate to its full potential, minimizing its negative externalities against the environment and society? It is a question that the organization has constantly tried to answer through the implementation of various strategies. An example of this is that together with its Founder and Allies, (AVINA, 2014) was a pioneer in creating the concept of corporate social responsibility, and the triple bottom line, incorporating them in practice and promoting a movement in the region. Since the start of its work in Inclusive Business in 2007, AVINA has elaborated the following definition to guide its work:
Inclusive Businesses are economically profitable, and environmentally / socially responsible initiatives that use market mechanisms to improve the quality of life of low-income people, by allowing:
- Their participation in the value chain as raw material suppliers, agents that add value to goods or services, or sellers / distributors of goods or services, and / or their access to essential basic services of better quality or at a lower price, and / or their access to products or services that allow them to enter a "virtuous circle" of opportunities to do business or improve their socio-economic situation.
Faced with the magnitude of the problem of inequality and poverty, it is proposed to especially promote initiatives that have the capacity to grow and scale to have an impact on a large number of people.
In this way we are not alone, since there are institutions such as Masisa, FUNDES, WRI, Ashoka, SEKN, PNUD, among others - they also have work strategies in Inclusive Businesses that are built and implemented together with the local and national allies of said institutions.
Conceptual framework
In this section of the document, the different components of the definition of Inclusive Business are explained in greater depth, in order to clarify the most frequently asked questions. There is much more information and documents about it in Spanish.
- What are Inclusive Businesses?
The following three conditions must be met in order for an enterprise to be defined as an Inclusive Business.
- Inclusive Businesses are profitable initiatives
In the economic sphere, Inclusive Businesses operate with the same budgetary opportunities and restrictions as any other business. They are not commercial activities subsidized by others since they are sustainable by the force of supply and demand of the market. A business should not sacrifice its capacity and interest in being profitable when it conducts Inclusive Business. This same principle applies when it comes to a multinational company as a start-up company from a low-income community.
- Inclusive Businesses are socially and environmentally responsible Inclusive Businesses use market forces as an engine to generate positive impacts in economic, social and environmental terms. In this sense, it is expected that in generating economic value, businesses will be socially and environmentally responsible, with proper management of their impacts. As part of its social responsibility, the Inclusive Business must be transparent, respectful of the right to information of its interested publics, responsible to its employees and consumers, and capable of building or strengthening social capital.
In the environmental field, their accompaniment will be prioritized in those Inclusive Businesses that have a positive impact on the environment. It is recognized that it will not be possible in all cases to generate a positive impact on the environment. Any impact that is not positive must be responsibly managed, in order to minimize it.
All these principles apply regardless of the way the Inclusive Business is constituted and organized: as a private company, non-profit association, cooperative, or other type of organization. The measurement of results of the Inclusive Business must always contemplate indicators in these three central axes of sustainable development.
- Inclusive Businesses improve the quality of life of low-income people Low-income people have fewer opportunities or conditions to improve their quality of life, and often lack adequate housing, food, education and health services. They are highly vulnerable to disease, economic setbacks, and natural disasters, and often have little power to influence key decisions that affect them, while it is common to find that they lack the necessary political voice to influence their own economic and political environment..
Inclusive Businesses, in addition to giving economic value, are intended to improve the quality of life of low-income people, it is not merely a matter of employing low-income people or that they are seen by companies only as “untapped consumers ” In this sense, it is necessary to link this type of initiative, for example, with the construction of citizenship. A business is not considered as inclusive if it does not help create conditions in which citizens with fewer resources can more effectively exercise their rights.
Inclusive Businesses, to be considered as such, must generate concrete results that demonstrate an improvement in the quality of life of low-income people. The improvement can occur in the physical dimension - by having improvements in health, in the psychological dimension - in improvements in self-esteem, or in the social dimension - in improvements in your income and social capital.
Inclusive Businesses promote the human development of low-income people, understood as the expansion of real freedoms that they live. Inclusive Business must promote the development of some or all of the five types of freedoms that are closely linked to each other:
- Political freedoms - civil rights, opportunities to determine who governs and on what principles, to express themselves openly, to control the authorities, etc. Economic freedoms - opportunities to use economic resources to produce, consume or exchange, opportunities to work, to finance themselves, etc. Social freedoms - opportunities to have access to education and health Transparency guarantees - freedoms to articulate with others in a framework of trust and tranquility Social security - creation of safety nets to attend to those who are in the most vulnerable situations.
- How do Inclusive Businesses improve the quality of life of low-income people?
Inclusive Businesses improve people's quality of life in one or more of the following ways:
- They allow low-income people to participate in the value chain as raw material suppliers, agents that add value to goods or services, or sellers / distributors of goods or services.
Inclusive Businesses seek to take advantage of market strengths and how it works to integrate low-income people into value chains. Some chains have intermediaries that abuse suppliers or distributors, creating and maintaining barriers so that they cannot capture more value, in this case a business will be inclusive when a low-income group or community can participate in the chain directly or achieve intermediation. fair5. Other chains are more democratic and inclusive by allowing open and free participation in the market. Inclusive Businesses can be included in existing chains or originate to create completely new business chains.
Conceptual Model of a Value Chain
Research and development Raw materials Production Distribution Marketing
Consumption End user Waste Management
An example of how businesses can become inclusive by inserting themselves into existing chains is the case of recycling. The recycling cooperatives bring together dozens of people living in conditions of poverty and allow them to have access to the value chain of recycled materials. A large company can directly buy recycled raw materials from recycling cooperatives, allowing them to be part of a value chain that is being more inclusive than if they were disorganized, collecting the garbage and selling it to an intermediary who in turn sells it to a great company.
For example, when large volumes need to be supplied, the involvement of an intermediary is likely to be necessary. The low-income group can be a provider through a fair intermediary, who is willing to offer conditions that allow the business to contribute to improving people's quality of life.
Inclusive Businesses can also be generating their own value chain and reaching the final customer directly. Sometimes they manage to include other excluded groups in another part of the value chain. An example of this case is the Manabí vegetable pickers, who from individually collecting fruits (such as pearl onion and peppers) and selling them to an intermediary, began to generate products giving added value (sowing), which they sell in many cases directly to their clients..
We wish to place special emphasis on investing in opportunities where low-income people can become participants in the value chain as entrepreneurs within the formal sector, allowing them to leave a precarious informality that often does not allow them to be subject to state policies, to have access to financial services, or participate in buy-sell transactions.
2.2 Allow access to essential basic services of better quality or lower price.
A second way that Inclusive Businesses can improve the quality of life of low-income people is by providing access to new basic products or services or in a more competitive way (in quality or price) for low-income people.
A characteristic of poverty in Latin America is that basic services - water, sanitation, energy, housing, connectivity, health, education, food and financial services - are often inaccessible, of low quality or expensive. If the company dedicates its operating muscle to provide essential basic services competitively where they did not exist before, it is improving the quality of life for its customers. This requires the company to innovate substantially in its processes, learn and transform its paradigms - it must strive to provide that service at a lower price and with equal or better quality.
2.3 They allow access to products or services that increase their productivity or well-being, allowing them to enter a “virtuous circle” of opportunities to do business or improve their socio-economic situation.
By reducing access barriers such as price, bureaucratic structure for formalizing procedures (for example, access to credits), geographic or symbolic barriers to the acquisition of products or services, the Inclusive Business allows with this consumption to generate new and better income than They allow them to be part of another production chain and thereby improve their quality of life.
However, in a single Inclusive Business it is possible to see characteristics of the three types of Inclusive Businesses mentioned in points 2.1, 2.2 and 2.3. An example of this is the companies created by low-income communities to provide the same communities with services or goods that improve their quality of life.
- What is innovative about the concept of Inclusive Business?
For the private company, the Inclusive Business concept represents an innovation in the sense that there is an intention to improve the quality of life of low-income people through the company's businesses. This approach helps low-income families achieve more dignified lifestyles, while creating new markets for businesses. It's about doing it right, doing good
For civil society organizations or cooperatives, the concept of the Inclusive Business can be innovative, depending on the characteristics of the organization.
For many organizations, finding solutions using market mechanisms is a new way to face the challenge of sustainable development. For other organizations that already sell goods or services, the approach of incorporating social and environmental responsibility indicators as part of the business can be innovative for their financial sustainability.
- What is not an Inclusive Business ?
Inclusive Businesses improve people's quality of life or generate a virtuous circle of social value, rather than trying to generate new consumers of products that do not improve their quality of life, or do not generate a virtuous circle of social value.
Inclusive Businesses promote the participation of low-income communities in value chains rather than encouraging debt for consumption.
Inclusive Businesses propose economically sustainable solutions to the needs of low-income communities instead of “doing business for the poor” and leaving aside the social and environmental impact of business actions, or the focus on improving the quality of life of low-income people.
Inclusive Businesses take advantage of market mechanisms to establish sustainable and mutually beneficial solutions, far from being based on market fundamentalism.
Inclusive Businesses are economically sustainable and do not depend on philanthropic actions.
- What is the relationship of Inclusive Business with other concepts of the company in society?
Aware of the interconnection that exists between the concept of Inclusive Business and others such as corporate social responsibility, fair trade, solidarity economy and responsible consumption.
It can be said that most NIs could be considered as strategic CSR, when one of the actors is a company and the NI is a key part of its core business. According to "Michael Porter and Kramer", strategic CSR considers the various constitutive interactions of a company - and its value chain - with the competitive environment or context. This means that the impact of the company's actions becomes a constituent part of its strategy by "integrating social considerations more effectively into the strategy and operations of the company's core business."These authors combine the need to evaluate the impacts on the environment of the entire value chain of companies (inside-out vision) with an evaluation of those environmental factors that affect their competitiveness (outside-in vision).. Based on the fact that society and business are interdependent, "Porter and Kramer" propose to articulate the aforementioned perspectives, recalling that both "successful corporations need a healthy society" and "a healthy society needs successful companies". This articulation would maximize the "shared value", with benefits both for society and for the company's own competitiveness. But more importantly, along with increasing that competitiveness, strategic CSR would push and generate innovations that satisfy a social need.However, the central point to keep in mind is that strategic CSR seeks to balance the triple bottom line - social, environmental and economic - while in NI the priority is to improve the quality of life of people and the environment.. NIs aim for an ethical north and as a means for the use of market forces, which are ubiquitous today. That is why it should be noted that in Inclusive Business, Core business is inclusion, while in Strategic CSR it can be a side effect or an additional benefit.NIs aim for an ethical north and as a means for the use of market forces, which are ubiquitous today. That is why it should be noted that in Inclusive Business, Core business is inclusion, while in Strategic CSR it can be a side effect or an additional benefit.NIs aim for an ethical north and as a means for the use of market forces, which are ubiquitous today. That is why it should be noted that in Inclusive Business, Core business is inclusion, while in Strategic CSR it can be a side effect or an additional benefit.
NIs start from a socially responsible business operation. Although in some cases the NI are operated by companies that do not necessarily develop CSR strategies, companies with experience and results in social and environmental responsibility are generally in better capacities to implement NI. Responsible companies understand and know how to capture the value of listening and working with communities and other stakeholders and with a long-term vision that allows them to build alliances where all parties benefit. Both CSR and NI share the following approaches: alignment of actions with business strategy, involvement of multiple actors, results in terms of innovation and from there to development, and a win-win perspective. Even so,It is a matter of additional work to continue clarifying the relationships between the two concepts. Are NIs the transition from CSR to a more sustainable and strategic model for companies in society? How strategic would it be for CSR agendas to prioritize and focus on generating results by implementing socially inclusive business models?
On the other hand, it is of concern to explore the interconnections, deepening and differentiation of concepts, among the NI, not only with CSR, but also with fair trade, the solidarity economy and responsible consumption, among others. Although the initiatives that work under these concepts seek an economic performance that considers and is oriented to the reduction of the observed social and environmental vulnerabilities, it would be interesting to understand the relationship and conceptual difference between them. What can be said of each of these approaches in terms of their competitiveness in the current context of society and markets?
- What is the relationship between Inclusive Businesses and Inclusive Markets?
Why does AVINA call its continental strategy Inclusive Markets (MI) as of 2009?
Since the appearance at Cornell University, in 2008, of the second Base of the Pyramid Protocol (BoP), this new document includes part of the criticism of the utilitarian risk of the previous model and the BoP in general, advancing in the operationalization of the tasks that need to be implemented to address this experience from within the company8. It is important to highlight the change in emphasis towards the BoP as a business partner rather than a consumer, the advance to deep dialogue, the shared capacities and commitments with direct relationships between the actors and, in particular, a greater and growing approximation and interaction of this paragraph. it was built with the contributions of Verónica Silva, researcher of the Business and Economic Ethics Program of the Alberto Hurtado University of
Chile in the document Inclusive Business or Base of the Pyramid. An Opportunity for Development in the Framework of Social Responsibility
Companies with communities. In other words, a re-conceptualization of the company for the construction of tomorrow's business models and a comprehensive and systemic vision of its interaction with the environment.
It is not enough to develop many NIs, it is necessary to create a favorable environment for their scaling and growth in the same or greater way than traditional businesses. It is possible to speak of the development of Inclusive Markets, when a set of NIs are developed that share an economic activity, geography or customer segment within a strategic framework shared by many actors and under clear rules of action. Inclusive Markets overcome the barriers and failures of a market or a government with innovation that allows offering products and services that are important for development with business models that are inclusive for low-income communities.
As mentioned, a component related to the development of Inclusive Markets are public policies, which although they have not been developed in detail for this type of market, there are some general aspects such as:
- government as an investor or guarantor that motivates the private sector to develop NI; investment in basic infrastructure, connectivity, public services, basic needs, etc.; support to small and medium-sized companies through training, technical assistance and supplier development; definition of standards of reference to measure the behavior of companies in relation to the poorest; incentives to motivate this work in companies, as well as replicate or scale these models; supported by international cooperation: disseminate successful cases and facilitate interaction between agents to identify new opportunities for inclusion, to de-bureaucratize the process of entering the formal economy, to apply an "unequal treatment to the unequal",that is, vulnerable people who are not benefiting from the market should have a different tax treatment with lower fees, easier procedures to comply with or fair prices for the provision of public services and basic needs; facilitating access to credit - beyond of micro-credit and traditional credit that only reaches the very small or very large; facilitate access to the market with incentives to encourage supply and demand - such as requesting public bodies to make at least 20% of their small purchases companies and social enterprises; and encourage collective entrepreneurship, or also called social or solidarity economy - beyond the laws to create cooperatives and to govern associated work,Business support platforms are required that are not limited to people working in the same field (eg merchants from an area of the city, producers who share supply and / or distribution channels, etc.)
In general, some regulations and incentives are necessary for the development of NI such as: regulating and controlling; facilitate with frames of reference; dialogue between interlocutors; associate and leverage capabilities; recognize and support certain practices; and use instruments such as public purchases. But it is not enough to influence public policy or legislation to develop Inclusive Markets.
To develop an Inclusive Market, it is necessary to develop competitiveness agendas, intersectoral alliances, public-private alliances or, in general, collectively constructed strategies. It is very important that the beneficiary populations of an NI participate in its design and governance. Therefore, and under the concept of Ecosystems developed by SEKN and other academic sources, Inclusive Business must be developed in alliance with a group of diverse actors that allow it to develop more than one NI and generally with a focus on a particular sector or market.
NI Ecosystems start from horizontal coordination where all parties share responsibility for the impacts they seek, but do not have vertical authority that controls the entire network. In other words, everyone has a voice and a vote to regulate themselves, but none can command the others. The actions are coordinated with negotiated agreements and alignment of incentives between the parties. These networks are characterized by having heterogeneous actors, by contributing to the core of each actor's strategy and by mutually beneficial transactions. Depending on the technology, the actors, the value chain and the environment of the initiative, the role of the actors can change over time and even have multiple roles at the same time. When strategic networks are socially inclusive they reduce uncertainty;they are legitimate for all actors; capitalize on the existing social structure; have detailed knowledge of the needs and strengths of the low-income community; they have partners who "simplify" the effort by allowing them to reach a considerable scale of individuals; and incorporate non-traditional partners to reduce costs. Ecosystems can contribute to expanding the contours of society, facilitating not only the flow of goods, services and money, but also of knowledge, information and ideas. Together with its allies, we have identified some recurring roles within successful Inclusive Business Ecosystems such as: pivotal organization, regulator, legitimizer, financier, adviser, promoter, observer and others.It is important to highlight that we are not talking about specific sectors or actors. The community, the private company, the state, civil society and other actors can exercise any of these roles depending on the case.
It is possible that one of the main flaws in today's markets is that they do not include what have been called externalities and public goods, suddenly due to the difficulty of monetizing their value. Markets require defined rights and titles that allow commercial exchange. For a market to exist it must have externalities and that generates an incentive to transfer the costs of a business to them. Therefore, it is necessary to rethink the border of externalities in order to carry out transactions of goods and services that include indirect impacts or caused by third parties and other environmental considerations, among other aspects. This type of Inclusive Markets are emerging in Latin America so that the definition of wealth is a little broader and involves the "triple bottom line".
However, they need clearer definitions of the rights and duties of their actors and require the formation of a continental Ecosystem to develop them. Private, for-profit and non-profit actors, often in alliance with the State, have mitigated some of the failures of markets and governments through innovations that make markets more inclusive that not only allow them access to goods and services but to economic empowerment and human development.
|
Hypothesis 2006-2009 Inclusive Businesses |
Hypothesis 2010-2013 Inclusive markets |
|
Demonstrate that Inclusive Businesses are effective tools for social transformation in different geographies, cultures, markets and contexts and that these can be developed by any type of business organization (non-profit entities, MSMEs, Large Companies, Multinationals, etc. |
Demonstrate that if there are successful Inclusive Businesses in a market that scale socially and economically significantly and quickly, it is possible to affect the behavior of key actors in the value chain and therefore the development of Inclusive Markets. |
What is done to develop markets?
- Prioritize market.
- Profitable Social Investment (access to financing for MSMEs and social enterprises) and Improvement and / or construction of social housing
Empresa Social is a “private organization that develops an economic activity directed to the market, but its objective is oriented to the satisfaction of social needs… its objective of improving the quality of life of its members, its internal government based on the deliberation of its members, and self-define as non-profit that makes them non-capitalist but not for that reason anti-capitalist. " it goes beyond a business or group of them.
It seeks to develop New Markets that are going to be fundamental for the sustainable and competitive development of Latin America. Our region has great potential to develop solutions to climate change problems such as sustainable energy, drinking water or inclusive food security, but we still have a long way to go to be relevant global competitors, so AVINA also invests in the development of these markets in some decades They could be one of the main sources of income, employment and inclusion for Latin America and at the same time to adapt to the effects of climate change.
What is done to make these markets inclusive?
- Prioritizes human dignity and respect for all forms of life in making all their decisions (above profit, which is more a means than an end); Prioritizes markets and businesses with high social and / or environmental impact that are necessary to meet the challenges of inequity and environmental degradation of the 21st century (see last point of the previous section); It develops high-impact and large-scale potential businesses to meet the challenges of inequity and environmental degradation in Latin America, Under the concept of Inclusive Businesses and Markets, it seeks to demonstrate with real cases that it is possible to generate wealth with equity in an accelerated, innovative and sustainable way so that Latin American society prioritizes this type of business models;yDevelops these businesses under the concept of Corporate Social Responsibility and Inclusive Businesses seeking to maximize triple results (social, environmental and economic).
Conclusions.
The MI Strategy has three strategic fronts as a result of a 3-year process of internal and external collective construction and is in a continuous learning process, as seen in the following table.
| Front | goals | Tactic | Horizon 2017 | |
| Business Development | of | Demonstrate and
ensure that inclusive businesses thrive on a large scale |
Build and develop a portfolio of NIs that receive a package of services classified by relationship type, business needs, and potential. | Dozens of companies building and implementing
business models that change the status quo of your sector and benefit hundreds of thousands of people, through the NI Portfolio. |
| Development
Markets |
of | Form a regional network of
Actor is able to coordinate Actions and efforts to enhance the scale of impact of Markets Inclusive in Latin America |
Identify key sectors where your allies can
promote a transformation, influencing processes, chains and actors. |
• Hundreds of companies
Building and implementing business models that change the status quo of your sector and benefit millions of people, through the support provided by you and your allies to strengthen actions with macro, meta and micro actions. • A critical mass of e entrepreneurs and companies prioritize NI as part of their strategy, |
| including
efforts of key development actors. |
||||
| Communication and
Mobilization for the “Change of Paradigm" |
Mobilize a critical mass of
Actors for Promote the emergence of a new paradigm on the relationship between companies, markets and society |
Spread examples and learning through strategic communication; encourage the creation of centers
Reference university and insertion of the subject in business schools; and create collaboration and promotion networks |
|
NIs have positioned themselves on the media's agenda.
Traditional businesses are increasingly viewed as Inclusive Business (NI as 'mainstream'). |
| | Networks and learning and collaboration spaces in NI have the capacity to mobilize / raise awareness
ra tens of thousands of people and millions of dollars of investment. |
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