Presentation for Inclusive Business Forum, 18th February, 2016 Inclusive business networks and the role of business associations: New touches? Richard Welford Chairman, CSR Asia Presentation for Inclusive Business Forum, 18th February, 2016

Responsible and inclusive business: Solving risks, increasing opportunities Many social needs still need to be addressed: Poverty and poor communities Local economic growth Women’s empowerment Health challenges Human rights Marginalized communities Child rights And we must be sustainable Environmental degradation Water tensions and access Disaster preparedness Employment opportunities And we must never separate poverty from the underlying reasons for that poverty And…. The fact that these problems continue means that past solutions have not worked How can we add value to both businesses and communities in dealing with these social needs in new, innovative ways?

Questions businesses need to answer about inclusive value chains: Are you aware of all the risks and opportunities along your value chain for your business? Can you move beyond first tier supply chain engagement to include the poorest people along your value chain in a way that creates shared value? Do you currently have the capacity and resources to roll out inclusive business programs that encompass risks and develop commercially viable opportunities? If you do find severe human rights problems in your value chain, do you know how to tackle them? For most companies the answer to all questions is the same:

NO! We need new networks of cooperation Acting alone, businesses cannot address these issues We need new networks of cooperation

New touches? Some solutions? Assessment of value chain risks and opportunities through effective stakeholder engagement, by industry New supply chain networks of trust (increasing the benefits to the poor): Inclusive business networks Creating shared value Empowerment of poor people, women and the vulnerable Multi-stakeholder initiatives, standards, certification Product responsibility and traceability initiatives by industry Engaging with human rights challenges as a source of poverty

Conclusions: Inclusive business must be about: Innovation Strategic value creation Creating shared value for businesses and society Engaging poor people in commercial ways Tackling human rights abuses In the context of value chains being more complex with more risks Working towards solutions in partnership with competitors and other stakeholders through networks and business associations We need to move towards networks of trust where a range of stakeholders work together We can solve the problems and it is the “right thing to do” – leading businesses recognise this – but we need to work together!

Thank you Richard Welford rwelford@csr-asia.com www.csr-asia.com