1. Social Business in Developing Countries A New Solution for
Eradicating Poverty? Dr. Linda Kleemann 02/12/2013 1
2. 2
3. 3
4. The plan for today in developing countries? introduction
Social Business (homework) examples eradicate poverty? The end
related concepts 4
5. Social Business in developing countries 5
6. The Pioneer I 1976 first time to lend money 1983 Grameen
Bank 2006 Nobel prize 2011 6.2 Mio. people in 2.5 Mio. groups, 97 %
women, 8.7 Mia. US$ in loans Today: Grameen group The bank: owned
95% by customers, 5% government 6
7. What makes the Grameen Bank a Social Business? o Social
Business Type 2 Profit-oriented business Owned by target group
Dividends are ok 7
8. The Pioneer II: Grameen Danone Joint Venture o Social
Business Type 1 Business produces products or services for the poor
Main aim of business is social (or ecological) No dividends,
profits stay in the business 8
9. The German 9
10. A new idea? o 12th century: model Ehrbarer Kaufmann is
born. o 1521 Jakob Fugger creates Fuggerei. o 1799 Robert Owen
founds the cooperative movement o 1853 Florence Nightingale
develops the first modern hospital o 1864 Friedrich Wilhelm von
Raiffeisen founds the first cooperative bank o 1959 the first
alternative trade society starts in the Netherlands, 1967 the first
in Germany 10
11. Summary Social Business o Business with a social mission o
Business case: products or services are sold o Success is defined
by social goal o Financial return stays in the firm (type 1) or
firm is owned by the poor/the target group (type 2) 11
12. Social Business in developing countries 12
13. The starting point I 50 years of development aid without
results? Aid effectiveness debate and evaluation hype 13
14. An example 14
15. 15
16. KAITE Social Vision: improving social and economic welfare
of smallscale farmers and landless in Zimbabwe Starting point for
business: product quality achieved by smallholders is lower than by
commercial producers Focus: product and process quality in organic
farming Social Investment instead of project basis brings long term
engagement for land and people Break Even after 6-7 years After
that: financing of social-only activities through profits 16
17. KAITE Vision: improving the social and economic living
standards of small-scale farmers and landless people in Zimbabwe
Families and Communities of farmers Customers KAITE e.V. Donors
KAITE Trust KAITE Company Banks (loans) Microfinancing Support of
orphans HIV/AIDS and health care Schools Training Cultivation
advice Processing Banking Certification Org., UEBT, FAIR
Marketing
18. Training
19. Investment in production: Dryers Water Pumps
20. Wild collection of indiginous plants
21. Processing of wild aromatic plants in the communities
22. Sustainably wild collected Strafantus
23. Processing of Strafantus by Small scale farmers / wild
collectors
24. Construction of wood saving stoves
25. KAITEs orphanage
26. The KAITE team says: Thank you Visit KAITE in Zimbabwe You
will see the difference!
27. Starting point II Business Opportunities at the Bottom of
the Pyramid: a lot of potential new customers 29
28. A second example 30
29. Welcome to Blue Skies
30. About Blue Skies Founded in 1997. Producers of fresh-cut
fruit and freshly squeezed juice. Employ 2,745 people in factories
in Ghana (2), Egypt, South Africa, Brazil, UK and Senegal.
Committed to value-adding at source Supply 13 major European
retailers. Presented with Queens Award for Sustainable Development
in 2008 and 2011
31. UK: Head Office and factory SENEGAL & GAMBIA Pack
houses BRAZIL: Processing Tropical, deciduous and exotic fruits
EGYPT: Processing deciduous and some sub tropical fruits GHANA:
Processing tropical fruits SOUTH AFRICA: Processing deciduous and
sub tropical fruits www.blueskies.com
32. Customers Certification Awards
33. West African Challenges SOCIAL & ECONOMIC Agriculture,
land and the mind-set. Industry and Exports. ECOWAS. ENVIRONMENT
Climate change and fruits Energy and airfreight Sand winning and
urbanization
34. The Blue Skies Solution for meeting consumer demand and
crushing poverty: North-South Partnership Encouragement for
involvement in agriculture and industry. Role models, rewards and
acknowledgment. The JEE.
35. Joint Effort Enterprise Employing people from different
backgrounds and cultures because we believe that we will generate
better ideas if we have a diverse range of skills, experience and
perspectives. Respecting people equally because we believe that if
we respect each other for who we are, then we will feel happier
about our work and proud to do a good job. This is our culture.
Operating profitably and efficiently because we know that we cannot
continue to produce the best fruit products in the world unless we
generate the funds that will enable us to survive and grow.
36. Proactive Initiatives Our Blue Print for Sustainability
Compost Biogas Taking responsibility Demonstration farms > focus
on quality Education and awareness > mind-set Developing more
value added products Product diversification Varietal
innovation
37. Blue Skies Foundation Partnership between Blue Skies,
Albert Heijn and Waitrose 170,000 per year for community projects.
Intended to improve the lives of farmers and their communities who
supply Blue Skies and our staff. Projects focused on improving
education and health Comprehensive project selection and
prioritisation process
38. A step at a time
39. Summary Our ideals embrace the ideas of differentiation and
quality. Fresh From Harvest guarantees quality. More value-adding
at source will change fortunes faster for Africa. Africa is the
future
40. Thank you
41. The context o No social security systems, often weak
governments >> many opportunities o Poverty >> who pays
for your product? o Political and legal insecurity >>
sustainability? o No support system for start-ups o Donors >>
help or competition? 45
42. The reality o Often started by local or international
elites o A social aim does not mean it is less risky o Time to
break even longer than in normal businesses o Difference to
development aid: impact through continuity 46
43. What are the others doing? 47
44. http://www.youtube.com/watch?v=Rm0Fov0U-Nw 48
45. Social Entrepreneur Discover a concrete social issue to be
solved, Develop a novel solution for this problem benefitting the
target group, Do the next step and implement the solution idea,
And, while implementing, combine social and economic
sustainability. 49
46. Related concepts 50
47. 1) The big guys o Mpesa Kenya: Safaricom/ Vodafone Group o
Other examples of big corporations: Siemens, Nokia, Allianz
(Indien), Barclays Bank (Ghana), Bosch & Siemens home
appliances (Indonesien / Philippinen), Manila Water Company
(Philippines) 51
48. Inclusive Business o Inclusive business integrates people
living in poverty into the value chain as consumers or producers,
thus making a positive contribution to the development of
companies, the local population and the environment. (Gradl,
Knobloch 2012) o Known world wide through the World Business
Council for Sustainable Development (WBCSD), SNV and UNDP 52
49. Other names for inclusive business IFC, IBLF Business
linkages Responsible supply chain management Full Economic
Citizenship (FEC) Pro-poor value chain development BOP MMW4P/ M4P
53
50. 2) Classical examples o BASF: reducing emissions by 10%
(air) and 40% (water) until 2012. o Seitenwechsel: managers work in
a charity for one week. 54
51. Shared Value The concept of shared value includes rules and
practices that increase both the competitiveness of a company and
improve the economic and social conditions of the community the
company works in. (Porter and Kramer) 55
52. 3) Classical examples o OTTO: Code of Conduct on social
standards for their suppliers. o Deutsche Post World Net:
logistical support for emergencies (earthquakes, etc.). o HSH
Nordbank Run: running to support children in need. 56
53. Corporate Social Responsibility Corporate Social
Responsibility (CSR) means that companies or other organisations or
institutions take societal responsibility voluntarily, and above
their legal obligations. (Bundesministerium fr Arbeit und Soziales)
CSR is a system which serves as a basis for companies to
voluntarily integrate social and environmental concerns into their
activities and their relations with their Stakeholders. (EU)
57
54. Overview of related concepts 58
55. homework Imagine that you work at the tax office. You have
to decide how to tax an organisation. If an organisation has a
social purpose it can profit from a reduced tax rate. There are
three categories*: Normal rate of 20% (profit maximising company)
Reduced rate of 7% Charitable rate of 0% Which rate would you
charge the following organisations? *rates are hypothetical and do
not correspond to real rates. 59
56. Fairtrade is an alternative approach to conventional trade
and is based on a partnership between producers and consumers.
Fairtrade offers producers a better deal and improved terms of
trade. This allows them the opportunity to improve their lives and
plan for their future. Fairtrade offers consumers a powerful way to
reduce poverty through their every day shopping. When a product
carries the Fairtrade Mark it means the producers and traders have
met Fairtrade standards. The standards are designed to address the
imbalance of power in trading relationships, unstable markets and
the injustices of conventional trade. 60
57. Nestl is the world's leading nutrition, health and wellness
company. Our mission of "Good Food, Good Life" is to provide
consumers with the best tasting, most nutritious choices in a wide
range of food and beverage categories and eating occasions, from
morning to night. Nestl Ghana wins award for sports development in
schools 61
58. Proximity Designs We design for impact: In a country where
70% of the population depends on agriculture, improvements in
farming technology and techniques - and the credit to access them -
are vital to improving living conditions and ending poverty.
Proximity Designs works to increase the productivity and incomes of
rural households in Myanmar by designing and selling simple, highly
efficient agricultural products. Proximity has developed an
extensive distribution network in order to reach the most isolated
customers. 62
59. SEKEM was founded with the idea of sustainable development
and giving back to the community. The vision that brought Dr.
Ibrahim Abouleish to dig the first well in the vast desert land
still resounds in SEKEMs approach of conducting business. Like a
compass, our vision, mission and values guide us in the everyday
work in all SEKEM companies. The SEKEM Initiative established
several specialized companies to ensure productions and marketing
of its products. Since May 2007 the German GLS Gemeinschaftsbank
and the Dutch Triodos Bank are shareholders of the SEKEM Holding
and support the finance for future investments. SEKEM Companies:
ISIS: Produce & Foodstuffs, ATOS: Herbal Medicine, NATURETEX:
Textiles, SEKEM Europe, LOTUS: Herbs & Spices, LIBRA: Cattle
& Compost, MIZAN: Seedlings, PREDATORS: Biocontrol, SEKEM for
Land Reclamation, SEKEM Holding 63
60. Creating a better future every day We aim to provide people
the world over with products that are good for them and good for
others. Our vision We will develop new ways of doing business with
the aim of doubling the size of our company while reducing our
environmental impact. No matter who you are, or where in the world
you are, the chances are that our products are a familiar part of
your daily routine. Every day, around the world, people reach for
Unilever products. Our brands are trusted everywhere and, by
listening to the people who buy them, we've grown into one of the
world's most successful consumer goods companies. In fact, 150
million times a day, someone somewhere chooses a Unilever product.
64
61. Grameen Veolia Water has set up a water treatment plant to
provide safe drinking water to people living in villages in rural
Bangladesh. The project aims to provide 100,000 people with
drinking water that meets the highest WHO standards, at a tariff
they can afford. The project means that local people finally have
access to drinking water that doesnt make them ill. Grameen Veolia
Water works in partnership with some of the worlds leading
companies and academic institutions to invent a new economic model
to bring drinking water to rural Bangladesh. 65
62. VisionSpring has developed several innovative models for
bringing high-quality, affordable eyeglasses to customers in
developing countries. Through mobile optical units, optical shops,
and Vision Entrepreneurs, more than 600,000 pairs of eyeglasses
have been sold. 66
63. The Waitrose Way: Waitrose believes in championing British
produce, treading lightly on the environment, supporting
responsible sourcing and treating people fairly. In recognition of
the work that we do, Waitrose has received a Big Tick Award in the
Sustainable Supply Chain category at the Responsible Business
Awards 2013. John Lewis Partnership: Were not owned by shareholders
and the City. Instead, were owned by everyone who works for the
Partnership, which is why were all on the same mission to bring you
the best. 67