G20 Leaders´ Call and Inclusive Business Framework
In 2015, leaders at the G20 Leaders Summit in Antalya, Turkey issued a call to action to public and private sector representatives, international organizations and civil society to advance the ability of businesses around the world to integrate low-income people into their value chains. The leaders´ call resumes the commitments on inclusive business made by the G20 states and emphasises its importance for sustainable development.
G20 Inclusive Business Framework
This key piece lays down a framework that defines inclusive business, sets out recommendations to enable inclusive business, and proposes a way forward for governments, the private sector, and other stakeholders. The graphic summary above depicts the inclusive business ecosystem, including the main support functions for inclusive business, as well as all involved actors.
Inclusive business has been an integral focus of the G20 since the 2011 Cannes Summit when G20 members adopted a working definition of inclusive business. Inclusive business has been defined by the G20 as follows:
G20 Definition of Inclusive Business
Inclusive businesses provide goods, services, and livelihoods on a commercially viable basis, either at scale or scalable, to people living at the base of the economic pyramid (BOP) making them part of the value chain of companies’ core business as suppliers, distributors, retailers, or customers.
Inclusive Business Approaches fall into three categories:
- inclusive business models
- inclusive business activities
- social enterprise initiatives.
|Inclusive Business Models||Inclusive Business Activities||
Social Enterprise Initiatives
|BOP´s Relationship to Business||Core Value Chain||Ancillary||Ancillary or Core Value Chain|
|Financial Return Expectations||Market Returns||Market Returns or Below Market Returns||Not Profit Maximizing|
|Primary Funding Type||Commercial||Commercial||Mixed|
Government support is crucial for the widespread adoption of inclusive business. The following thematic areas of contribution have been identified in the G20 IB Framework to support the development of an enabling environment:
- Establishing conducive rules, regulations and definitions
- Enhancing access to financial resources and providing financial incentives
- Providing information and raising awareness
- Strengthening the capacity of the BOP and of Inclusive Businesses
The annexes to the G20 Inclusive Business Framework include additional background information such as case studies, policy instruments, etc.