In a recent article in the European Business Review, Bjorn Stigson, President of the World Business Council for Sustainable Development (WBCSD), argued that “business knows that what gets measured gets done. As more and more companies embed sustainable development into their core business strategy, it is becoming increasingly important that we are able to measure progress towards building a more sustainable and inclusive world.”
Speaking about the WBCSD’s Measuring Impact Framework, Stigson underlined that as the major driver of economic growth, business can play a critical role in ensuring that the benefits of globalization are shared by more of society. Companies can take the lead in developing inclusive business opportunities, that is, initiatives that seek to integrate low-income populations into their value chain as consumers, distributors and / or suppliers.
For example, developing and sourcing from low-income suppliers can build capacity, generate employment and bring small businesses into the formal economy. Also, companies can develop innovative and affordable products and services that improve the overall quality of life. They can take a lead role in the provision of basic services such as water, sanitation, energy, housing, health care and communication services. Finally, in order to spread economic opportunity and facilitate future inclusive business initiatives, they can work with others to improve the investment climate, root out corruption and improve overall health and education levels in the developing world.
With regard to the importance of measuring and assessing the impact of business actions, Stigson argues that these efforts will help companies “understand what works and what does not and begin to change the way we do business to enhance our positive impact. Strategies that are good for business and good for society need tangible, concrete results to demonstrate that changes in the way business operates are really making a difference to sustainable development locally and globally.”
The Alliance for Inclusive Business between the WBCSD and SNV Netherlands Development Organization is currently trying out the Framework on the ongoing inclusive business ventures in Latin America. Pending results and lessons learned, the Framework will be further customized to the Alliance's needs.
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