Inclusive business models

Abstract

Most companies around the world exist with the motive of profit. This does not necessarily seem to work for the benefit of the larger society at all times, as many of these companies adopt exploitative practices. Poverty is one of the greatest challenges that modern human society needs to tackle. There are contentious and widely differing estimates of poverty within India and in the world. According to the World Bank, 21 percent of the people in the developing world live on less than $1.25 per day. This means that 1.22 billion (as of 2010) people live in conditions of extreme poverty.1 Another theme closely linked to poverty is inequality. Not only has poverty been widespread, the gap between the rich and the poor has also been increasing. The poor find it difficult to access quality education, healthcare, electricity, water and other essential services, which are necessary for human development. It is unfair and unacceptable to allow one out of every seven people of our population to live in conditions of extreme distress. This CCS explores the inclusive business models that create shared value for the communities that they operate in and thereby improve their living conditions, while at the same time remaining financially sustainable businesses.