Sustainable Management Metropolia, Business Ethics IP week 5 Poverty & Development

Hans Rosling For interesting data on poverty and development Hans Rosling TED presentations

Assignment 4 Visit Hans Rosling Gapminder site and load the gapminderworld software. Compare Finland, USA, China and Kenya on CO2 emissions; which country emits most CO2 in total, and per capita? Tax Revenues (% of GDP) Battle deaths per people Internet users per 100 people Water withdrawal (cu meters per person) Improved sanitation, overall access (%) Explain the differences you find.

Poverty & Development Initiatives Oxfam Founded 1945 International Bank for Reconstruction and Development Founded 1960 International Development Organization created 1965 United Nations Development Program Founded 1985 Live Aids concert performed 1990 UN Human Development Index launched 1997 UN Human Poverty Index launched 2000 UN Millenium Development Goals launched 2002 Bottom of the Pyramid concept introduced 2008 Make Poverty History and Live World Commission on Environment and Development publishes Our Common Future (Gro Harlem Bruntlant Report)

Brundtland Report (1987) Major Proposals 1. Reviving growth 2. Changing the quality of growth 3. Meeting essential needs for jobs, food, energy, water and sanitation 4. Ensuring a sustainable level of population 5. Conserving and enhancing the resource base 6. Reorienting technology and managing risks 7. Merging environment and economics in decision making

Agenda 21 (Rio 1992) Outcomes of Rio 1. Convention on Biological Diversity 2. Framework Convention on Climate Change 3. Principles of Forest Management 4. Agenda The Rio Declaration on Environment and Development

Millennium Goals (NY 2000) 1.Eradicate extreme poverty and hunger 2.Achieve universal primary education 3.Promote gender equality and empower woman 4.Reduce child mortality 5.Improve maternal health 6.Combat HIV/AIDS, malaria and other diseases 7.Ensure environmental sustainability 8.Develop a global partnership for development

UN and Business Business at the heart of development State failure: human rights, environment, corruption, disease, poverty, etc., etc. Globalization: companies confronting these issues Enlightened self-interest to care: societal expectations risk management business opportunities Sustainable societies and markets for all

Convergence United Nations Business Values Prosperity Peace Development

Bottom of the Pyramid

Concept of C.K. Prahalad 4 billion people at bottom of economic pyramid, with income less then $ PPP Can be seen as a latent market of goods and services Aggregated there is a huge potential

Bottom of the Pyramid Removal of poverty penalty (=high prices due to, local monopolies, inadequate access, poor distribution, strong traditional intermediaries) Find access to BOP market (urban easier than rural areas) Create capacity to consume (e.g. single serve packaging)

Bottom of the Pyramid Three A’s AFFORDABILITY (single serve package) ACCESS (high intensity of distribution) AVAILABILITY (consumption when capacity is there)

BOP market requirements Innovative High price performance Conserving resources Focus on functionality Deskilled work / operation Education of customers High performance / endurance

Critique on BoP By co-author Stuart Hart Too many same products at lower prices, no new approach environmental unsustainable products and services “dumped” on BoP market Poor are not just consumers, should be considered as partners in mutual learning

From Bottom to Base