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Looking ahead to 2022

Emerging trends and new advances in Inclusive Business

The big picture is a resounding acknowledgement that Inclusive Business has entered the boardroom, as multi-national corporations are searching for ways to make their businesses more inclusive and sustainable. The Inclusive Business Playbook is one tool that can be used to help business advance inclusion of low-income and marginalized groups.

Another key element is a cohesive and practical definition of the features of Inclusive Business. The Inclusive Business Features were developed as a concise guide to help policymakers, investors and entrepreneurs scale their impact by clearly defining what it means to be an Inclusive Business.

The ASEAN region has lately taken several steps forward in the development of policy guidelines and strategies to promote IB in the region, as highlighted at the recent ASEAN IB Summit.

Strong interest in IB coaching and new developments in accreditation for inclusive businesses are two growing trends helping to transform policy into action.

One of the key areas to watch moving ahead into 2022 is the nexus between Inclusive Business and environmental sustainability and climate action.

Technology advances and inclusive innovation policies also have the power to increase the reach and scale of Inclusive Business.

two Cambodians on motorbike

Inclusive Business is advancing around the world. 

Growing inequality due to the Covid-19 pandemic has underscored the necessity to develop and expand new business models that are sustainable and inclusive. Inclusive Business is no longer on the sidelines; it has come front and center in the boardroom. 79 per cent of CEOs say Covid-19 has highlighted the need to transition to more sustainable business models, according to a survey by Accenture and the United Nations Global Compact. Governments are also making headway in promoting Inclusive Business and developing IB strategies. Several advances have been made in the ASEAN region, culminating in the recent ASEAN IB Summit in Brunei. In this issue of CLUED-iN, the last of 2021, we take a look at new developments and advances in Inclusive Business, including new tools, innovations and practical approaches turning policy into action. We also examine the definition and features of Inclusive Business and the nexus of inclusive business models and environmental sustainability.

Indian woman, writing

New tools and definitions have emerged. 

Following a new playbook

The big picture is a resounding acknowledgement that Inclusive Business has entered the boardroom, as multi-national corporations are searching for ways to make their businesses more inclusive. This issue of CLUED-iN features a blog by Gillian Hynde and Jessie Coates of EY, which introduces the recently launched Inclusive Business Playbook developed with Acumen and highlights innovative examples of inclusive business models while honing in on seven key questions companies should ask.

Equitable governance and supply chain management are key elements of inclusive businesses. As the authors point out, “The supply chain is where companies are most likely to encounter exploitation of low-income and marginalized workers. Azahar Coffee is a Colombian social enterprise that upends this imbalanced relationship by rewarding smallholder farmers for growing the highest-quality coffee through a fixed pricing structure. Azahar’s approach — defined by radical transparency — makes coffee farming a feasible way to make a living, transforming a historically exploitative industry.”

cocoa farmer

Companies are most likely to encounter marginalized workers in their value chains.

Defining Inclusive Business

The Inclusive Business Playbook is one tool that can be used to help businesses become more inclusive. Another key element is a cohesive and practical definition of the features of Inclusive Business. The Inclusive Business Features were developed as a concise guide to help policymakers, investors and entrepreneurs scale their impact by clearly defining what it means to be an Inclusive Business. Kathy Mignano of the International Finance Corporation (IFC), who helped develop the Features tells us, “Companies and investors are increasingly incorporating inclusive practices to pursue growth opportunities while boosting development impact. Inclusion, however, can have different meanings for different stakeholders. That’s why a consensus about the basic features of inclusive business is key. It creates a common understanding, so all stakeholders can speak the same language.”

collaboration

Many stakeholders collaborated on the Inclusive Business Features.

Turning policy into action

The ASEAN region has lately taken several steps forward in the development of policy guidelines and strategies to support Inclusive Business. In September, the 4th ASEAN IB Summit was held in Brunei, with a focus on how new policy guidelines can be practically implemented. In her interview with CLUED-iN, Marta Pérez Cusó of United Nations ESCAP reflects on the summit and the next steps required: “I really like that we are now starting to look more into the details of how we implement the Guidelines for Promoting Inclusive Business in ASEAN. There were lots of insights into how we coach businesses to develop inclusive business models, and how accreditation systems can encourage businesses that want to go beyond the bottom line.”

Cambodia is the third country in ASEAN to develop a comprehensive strategic framework for promoting inclusive business. The Cambodia Women Entrepreneurs Association is supporting the development of IB in the country and helping women-led businesses achieve recognition and accreditation. In this issue, we feature one of the first Cambodian companies to receive Inclusive Business accreditation, Lyly Food. The company buys fruit and vegetables at a fair price from farmers and sells and processes them locally. Ing Chhiv Ly, Lyly Food’s CEO, told us that accreditation has opened doors for her company: “The main benefit is visibility. We are now much more well known in the government sector. We are being recognized as a company, so we can build a stronger reputation, and people acknowledge that we care about the society and we care about our people and our planet.”

Growing interest in IB coaching and new developments in accreditation for inclusive businesses are two growing trends. In this issue, we delve into IB and base of the pyramid coaching by featuring the perspectives of two businesses that were beneficiaries of coaching: Brimore, an inclusive retail platform in Egypt, and Okra Solar, a distributed power generation business operating in remote areas of Southeast Asia. “Whilst we’re good at building technology, there was a gap in understanding cultural norms – and that’s why we sought advice from BOPINC. They helped us to develop a framework to effectively engage with people from vastly different cultures,” said Callum Yap.

customers of Okra Solar

Okra Solar provides clean energy to off-grid households.

Sustainable business models

One of the key areas to watch moving ahead into 2022 is the nexus between Inclusive Business and environmental sustainability. In this issue of CLUED-iN, George Schoneveld makes the case for reframing inclusive business models (IBMs) as sustainable business models (SBMs). “Through the relationship IBs build with the base of the pyramid, they are supremely positioned to disseminate climate smart technologies, encourage uptake of agroecological production practices and incentivize compliance with sustainability standards. This potentially vital role remains under-explored, requiring more concerted efforts from both the IB and environment-centric communities to align their strategies and interventions,” he explains. He also adds that accreditation can help mitigate “greenwashing”: “The IB accreditation systems that are beginning to emerge in some ASEAN countries, for example, could certainly help independently verify and validate a business’ sustainability.”

Mongolian family with solar panel

Inclusive Business can disseminate climate-smart technologies.

Inclusive technology and innovation

Technology and innovation also have the power to increase the reach and scale of Inclusive Business. For example, advances in distributed solar technology have created new opportunities for energy access in remote areas, bringing increasing opportunities and access to markets. The new ESCAP publication Frontiers of Inclusive Innovation: Formulating technology and innovation policies that leave no one behind also examines how governments can support inclusive innovation, grassroots innovation and the development of inclusive development policies.

Inclusive Business is experiencing wider international recognition as governments, investors and CEOs alike realize the need to build forward better and embrace more inclusive, sustainable business practices. Advances in IB are furthering policy support to businesses working with low income groups, while other new tools are providing a starting point for established companies to become more inclusive. At the same time, coalitions are developing a unified vision and definition of Inclusive Business, and new technologies and government support can further scale the impact of IB on those living at the base of the pyramid. These trends and advances provide a glimpse into the future of Inclusive Business, with the anticipation that its transformative impact will be further accelerated in the year to come.

man on the phone, rural India

Technology and innovation also have the power to increase the reach and scale of Inclusive Business.

Alexandra Harris

Alexandra Harris is a writer, editor and communications specialist with a focus on sustainable private sector development. She previously worked for the International Finance Corporation and the Asia Foundation.

Blog post

Seven questions to make your business more inclusive of low-income and marginalized communities

Multi-national corporations are increasingly searching for ways to make their businesses more inclusive and sustainable. In their blog, Gillian Hinde and Jessie Coates of EY introduce the new Inclusive Business Playbook, which highlights innovative…
Gillian Hinde and Jessie Coates
Table of contents

graphic summary

GRAPHIC SUMMARY

Learn more about trends and advances in Inclusive Business by reading this nineteenth edition of the online magazine on Inclusive Business! The illustration was developed by Christopher Malapitan, a visual practitioner and trainer based in…

Christopher Malapitan

editorial

Powering the just transition – The biggest opportunity for Inclusive Business

In his editorial, Markus Dietrich argues that there is a unique window of opportunity in 2022 to position Inclusive Business as a business model for a just transition to an inclusive economy that leaves no one behind.

Markus Dietrich

feature story

Looking ahead to 2022: Emerging trends and new advances in Inclusive Business

Inclusive Business is no longer on the sidelines; it has come front and center in the boardroom. Governments are also making headway in promoting Inclusive Business and developing inclusive business strategies. Several advances have been made in the ASEAN region, culminating in the recent ASEAN Inclusive Business Summit in Brunei. In this issue of CLUED-iN, the last of 2021, we take a look at new developments and advances in Inclusive Business, including new tools, innovations and practical approaches turning policy into action.

Alexandra Harris

Seven questions to make your business more inclusive of low-income and marginalized communities

Multi-national corporations are increasingly searching for ways to make their businesses more inclusive and sustainable. In their blog, Gillian Hinde and Jessie Coates of EY introduce the new Inclusive Business Playbook, which highlights innovative examples of inclusive business models and delves into key areas for companies to examine.

Promoting Inclusive Business and innovation in ASEAN

In her interview, Marta Pérez Cusó covers the latest IB policy development in the ASEAN region and the practical next steps for inclusive business promotion. She also discusses the new publication Frontiers of Inclusive Innovation: Formulating technology and innovation policies that leave no one behind, which provides examples of how governments can support grassroots innovation and inclusive policies.

Harnessing innovative solar technology to provide opportunity in remote areas

Advances in distributed solar technology have created new opportunities for energy access in remote areas. Callum Yap of Okra Solar explains the latest developments and also tells us how inclusive business coaching helped his company develop a framework for working with communities at the base of the pyramid in Southeast Asia.

How strategic coaching helped build a sustainable inclusive retail business in Egypt

Ahmed Sheikha shares how his company drew on advisory coaching services to develop an impactful inclusive business model in Egypt and to scale its impact on stakeholders.

Cambodia Women Entrepreneurs Association: Supporting women-led inclusive businesses in Cambodia

The Cambodia Women Entrepreneurs Association is supporting the development of Inclusive Business in Cambodia. Lina Sophat discusses the role of CWEA in supporting women entrepreneurs as a permanent member of the IB accreditation committee.

Lyly Food: Increasing visibility through IB accreditation in Cambodia

Lyly Food is a female-led company that buys fruits and vegetables from farmers, it is also one of the first Cambodian businesses to receive IB accreditation. Ing Chhiv Ly, the CEO, explains how developing an inclusive business model has benefited her company, and what the government can do to support businesses like hers.

Harnessing the Full Potential of Inclusive Business

How might Inclusive Business evolve in future? George Schoneveld of the Center for International Forestry Research outlines how it could contribute to the global climate change agenda and why partnerships are essential.