WBCSD-SNV Alliance: Creating inclusive business opportunities by linking local communities with big business

Coca-Cola's business and development impacts in the West Bank and Gaza

A new report (pdf, 48 pages) by the Harvard Kennedy School of Government profiles the experience of the National Beverage Company (NBC), the local Coca-Cola bottler in the West Bank and Gaza, where the private sector underperforms relative to many of its regional neighbors, and is consequently underutilized as a driver of economic growth, job creation and social development.

The challenges to private sector development in the West Bank and Gaza stem from a variety of well-known sources and include political instability, restriction on movement of goods and people, lack of access to capital, and shortages of water and other natural resources, with the situation obviously particularly difficult in Gaza.

The Coca-Cola Company, Technoserve and the Gates Foundation partner to boost incomes of 50,000 small-scale fruit farmers in east Africa

The Coca-Cola Company, nonprofit TechnoServe, and the Bill & Melinda Gates Foundation have launched a four-year, US$ 11.5 million inclusive business partnership (see the press release) to enable over 50,000 small-scale mango and passion fruit farmers in Uganda and Kenya to double their incomes by 2014 and empower them to supply Coca-Cola’s growing local fruit juice business.

With a $7.5 million grant provided by the Gates Foundation to TechnoServe, $3 million provided by The Coca-Cola Company, and $1 million by bottling partner Coca-Cola Sabco, the project aims to create new market opportunities for local farmers whose fruit will be used for Coca-Cola's locally-produced and sold fruit juices. As the implementing partner, Technoserve will train participating farmers in improving quality, increasing production, getting organized into farmer groups, and will facilitate access to credit.

Assessing socio-economic impacts: the case of 2 SABMiller subsidiaries in Uganda and Honduras

SABMiller is one of the world's largest brewers with brewing interests and distribution agreements across six continents. A recently published independent report (pdf, 20 pages), written by Professor Ethan Kapstein of INSEAD, reveals the socio-economic impact, or footprints, of SABMiller's subsidiaries, Nile Breweries (Uganda) and Cervecería Hondureña (Honduras) in their countries of operation.

The analysis shows that, in 2007, Nile Breweries (NB) and its employees were directly or indirectly responsible for generating value added of US$ 92 million (including US$ 76 million generated by NB itself) and, in the process, the company supported approximately 44,000 jobs throughout the Ugandan economy. For every job directly based at NB, therefore, approximately a hundred farmers and workers depended upon the company for some part of their livelihood.

Cervecería Hondureña (CH), in contrast, generated value added of US$ 405 million (including US$ 389.5 million generated by CH itself). The total impact of CH’s presence, in contrast, generates approximately 100,000 jobs, for a job multiplier of about thirty-three times. This reflects the differences in the structures of each economy and also the intensive use of local agriculture in the Uganda case.

Advancing new solutions for economic development: Coca-Cola’s Manual Distribution Centers in Ethiopia and Tanzania

Coca-Cola’s innovative approach to distribution is proving to be both good for the company and good for development as demonstrated in a recent report (pdf, 32 pages) published by the company along with the CSR Initiative at the Harvard Kennedy School and the International Finance Corporation. According to the study, the company has, to date, created over 2,500 Manual Distribution Centers (MDCs) in Africa, generating over 12,000 jobs and more than $500 million in annual revenues. 

Coca-Cola's approach to distributing its products in hard-to-reach urban and peri-urban areas in Africa identifies and engages independent entrepreneurs that distribute and sell its beverages in small, specific geographical areas. MDCs are typically located in areas where a lack of stable roads and infrastructure makes it difficult for delivery trucks to travel, which helps the company secure hard-to-reach markets while creating wealth and job growth in those communities. Those who set up MDCs employ others in the area, who then sell and distribute beverage products to retailers, often by bicycle or pushcart. The MDCs account for over 80% of the company's sales in East Africa. 

Webcast of Nestlé's Creating Shared Value Forum in New York

On 28 April, Nestlé organized the first Annual Forum on Creating Shared Value (CSV) in New York City, in conjunction with the United Nations Office for Partnerships and the Swiss Mission to the United Nations. The forum featured some of the world’s leading experts in business strategy, nutrition, water, and rural development (notable names in the agenda included Michael E. Porter, C.K. Prahalad, and Jeffrey Sachs). The day-long event dealt with needed action and policy changes at the global and national policy level, opportunities for progress, and the role of business, including the food business, in helping advance solutions to the challenges facing society in water, food, and nutrition security. The day-long event was webcast live (see this website for videos and reference documents).

According to Nestlé Chairman Peter Brabeck-Letmathe, "the financial crisis which has resulted in the current deep recession revealed once more a basic business axiom: if you fail to work on behalf of the public interest and take shortcuts that place the public at risk, you will also fail your shareholders. We believe that to have long-term business success you must simultaneously create value for shareholders and for the public. At Nestlé, we call this Creating Shared Value, and it is the fundamental principle behind the way we conduct business at Nestlé."

3 casos de negocios inclusivos en Bolivia – video

En el marco de la Alianza WBCSD-SNV para los Negocios Inclusivos, el Consejo Empresarial para el Desarrollo Sostenible (CEDES) Bolivia, como miembro de la red regional del WBCSD, y la oficina local del SNV, han asumido en Bolivia el desafío de desarrollar y difundir el concepto de negocios inclusivos como una solución sostenible que contribuya a la reducción de la pobreza, con la participación y el liderazgo del sector privado. En este video de 13 minutos se presentan 3 casos bolivianos de negocios inclusivos que contribuyen a la superación de la pobreza a través de la incorporación de ciudadanos de menores recursos en la cadena de valor de las empresas.

Negocios Inclusivos en Bolivia @ Yahoo! Video