NextBillion.net - Development Through Enterprise - Columbia Business School's Social Enterprise Conference: CSR, PR and The Need for Triple Bottom Line Metrics - Comments

Yes!

sara standish — Fri, 13 Oct 2006 12:31:56 -0400

As someone who works at an environmental organization, I agree whole heartedly that plastic sachet packaging is not a sustainable solution. And, if the concept of selling conventional products in smaller packages was the crux of the BOP idea, it would make my stomach turn. But, I think it can be much more than that, if addressed from a co-creation (a la BOP Learning Lab) or small business approach.

The project that I work for, New Ventures, has a track within its small and medium-sized enterprise development process that focuses on BOP businesses. One example is a new addition this year, Cuadritos, which uses its existing food bank resources (the largest one in Mexico) to manufacture high protein snacks (granola bar / cookie type things) for underserved populations. You can check out more information on this company and others at http://new-ventures.org/enterpriseportfolio. Supporting small BOP "producers" ensures that the products or services are relevant to the community and these SMEs can often serve as a link to larger national or international companies through supply chains.

While you are right to critique specific flaws in existing BOP business models as a way to learn from their mistakes, I think there are some major challenges facing the entire BOP concept. I would suggest the following barriers: lack of engagement with existing small and medium sized enterprises (and the business development support and financing for these innovative entrepreneurs with BOP ideas), lack of scalability of existing projects and lack of quantitative evaluation tools to understand the environmental and social impacts of these current pilot projects.

A couple of things that you might want to explore:
1) WRI, New Ventures Mexico and Tec de Monterrey are hosting a BOP event next week and information about it will be posted on a Mexican blog: http://www.basedelapiramide.org/
2) One of Brazil's top business schools, Fundacao Getulio Vargas hosted a finance sector discussion on BOP challenges. I don't think they posted the results on their website yet, but you can check here for all their BOP information: ssunto=119&IDidioma=2...
3) WRI is exploring methodologies to assess the social and environmental impacts of BOP projects. The results are still 3-4 months away, but everything will be posted on NextBillion.net.

Answering the BOP Heckler

The Heckler — Thu, 12 Oct 2006 20:07:39 -0400

You are correct that the tone I employed was unduly aggressive. My ire was sparked by what I thought to be less than critical analysis of where BoP measures were failing. I attend conferences to learn what's not working. I already know what is. That point is this: For BoP initiatives to work products produced need to "[require]significantly fewer resources than do traditional products." (Eric Semainis by way of Rhys Thom.)In other words, they have to be comprehensively cost effective, pre- and post use, in order to be developmentally effective with respect to sparking and sustaining a market at the bottom of the pyramid. BoP certainly does not boil my blood rather, quite the opposite, as I am a huge supporter. What does boil my blood is when a BoP practioner says that post consumer waste considerations were overlooked in product development because, in the end, it's a business. No, it's not just a business.

Thanks

Mateo — Wed, 11 Oct 2006 10:22:55 -0400

This is a fantastic summary of the event. Thanks, Rhys. I'm surprised to hear that Alcoa's rep would say something like that. They tend to do better (at least with their reporting and green initiatives). And I have to agree. It seems that we have hit a turning point where businesses recognize the need of a sustainability strategy, a climate strategy, transparent reporting, etc. All a bit reactive. The second turning point will be when true business opportunities are found in solving problems. We'll have to wait a bit more for that one!

Answering the BOP Heckler

sara standish — Tue, 10 Oct 2006 17:17:27 -0400

My hat is off to Rhys for his excellent synopsis of the day. I was also stymied by NYC transportation (I said 116th, the cab driver heard 160th), but I did manage to catch the BOP discussion, which I agree was one of the more interesting on the topic (read: a departure from the same skin-deep analysis).

While, I particularly enjoyed Eric Simanis' detailed description of the BOP Learning Lab process in Kenya and the design of BOP Protocol 2.0, the highlight for me was "the Heckler". This person started off the Q & A session, with a very aggressive, make you squirm in your seat line of questioning about the development benefits of the BOP concept. While the accusatory tone of her remarks were unnecessary, it struck me that the BOP idea really boils the blood of some, while most of the rest of us share a healthy skepticism about its virtues. Not that it is a problem, but few development approaches can claim this level of ire (OK, Sachs really gets my goat, but that is a blog for another time).

Simanis addressed “the Heckler” with grace (hmm, maybe this happens to him a lot) by noting 1) that limiting the concept to “selling to the poor” limits the return both for the corporation and the community, and 2) that he didn’t know if a BOP approach works, but that is exactly why projects like the Learning Lab exist—to figure it out. And both Simanis and Yusef agreed that those results were years away.

It was this exchange and the sentiment behind it that clearly outlines the need for NGOs, businesses and multilaterals to better define what they mean by engaging low-income communities and to continue to push the concept forward, through action and critique. While, I don't believe BOP activities are a silver bullet, it would be a shame for the concept to be relegated to another development fad before its impacts are better understood. This means for now “the Heckler” has some time to practice her skills.

Columbia Business School's Social Enterprise Conference: CSR, PR and The Need for Triple Bottom Line Metrics

Rob Katz — Tue, 10 Oct 2006 14:45:52 -0400

Guest blogger Rhys Thom is an intern with WRI's EarthTrends project. Originally from Albuquerque, New Mexico, Rhys comes to WRI with an extensive background in development, having worked in Honduras, Namibia, and Nigeria. He also owns his own multimedia marketing firm.

As the ideas of corporate social responsibility and the triple bottom line become more pervasive in the private sector, new questions and obstacles are bound to arise. At Columbia Business School's Social Enterprise Conference 2006 last Friday, three themes resonated throughout the conference: the need for metrics to quantify social and environmental profits, the need for NGOs and public sector entities to be professional and accountable for public/private partnerships to work, and bringing Corporate Social Responsibility out of the proverbial ghetto.

The day started off with a panel on Creative Approaches to Global Health Problems. I arrived half way through (who knew that the Upper West Side is an hour-plus subway ride from Park Slope?) but was still in time to catch a few salient remarks from leaders in the public health arena. New approaches to philanthropy, market mechanisms for drug distribution to developing markets, and obstacles to creating and providing vaccines for AIDS and malaria were among the new ideas being kicked around. Patricia Duquette, the Director of Women's Health and Global HIV/AIDS Initiative at Bristol-Meyers Squibb Foundation, discussed new trends in philanthropy including donating expertise and intellectual property to non-profit health organizations, citing Merck and BMS's in-kind donation to the International Partnership for Microbicides of a royalty-free license to develop, manufacture, and distribute their microbicide compounds in developing countries.

Continue reading past the break as Rhys discusses greenwashing, CSR as PR, Costco, private equity in development, and the environmental implications of the BOP Protocol: