Product Description

The interest in bottom-of-the-pyramid (BOP) strategies to reach the world's poor is now beginning to stall. The work of C. K. Prahalad and Stuart Hart caused much controversy in academic circles, but the premise of tapping into under-served markets initially received enthusiastic backing from business. But how to proceed? What is the business case? There are many examples of BOP initiatives in the academic literature, but the lack of practical guidance on how initiatives should be identified, developed and put into action has left many corporate leaders nonplussed. "Make Poverty Business" aims to redesign, redefine and reinvigorate working with the world's poor by focusing on numerous low-risk, low-cost recommendations on how business can interact with and positively influence the lives of the poor. "Make Poverty Business" sees the poor in developing countries as more than mere consumers, as much of the BOP material proposes, and instead takes a strategic stance on all of the ways in which a multinational company can strategically engage with the problem of poverty. Poor people in developing countries evidently are potential consumers, but they are also much more: suppliers, employees and community stakeholders. These roles are often ignored by major businesses. This neglect can lead to greater risk, higher costs and lower sales. At the same time, businesses are being asked by governments and poverty activists to make a greater contribution to economic development. Such exhortations are rarely based on a robust business case. This book aims to bridge this evident gap by constructing a rigorous profit-making argument for multinational corporations to do more business with the poor. It takes economic development out of the ghettoes of philanthropy and corporate social responsibility and places it firmly within the core business interests of the corporation and argues that to see the poor only as potential consumers misses half of the story. Based on sound economic theory and emerging good business practice, the authors suggest there are many opportunities to overcome poverty traps and gain access to a larger and often more reliable pool of employees, suppliers and customers. It also deals with the reduction of risk. The poor can also become a threat - both to reputation and security - if relationships are badly managed. The book integrates concerns over political risk, legal failure and physical security into a business case for reducing poverty. It argues that country risk is something that can be actively reduced through having a positive impact on economic development rather than passively managed with lawyers and security guards. "Make Poverty Business" argues that doing business with the poor can be profitably integrated into the core operations of all multinational companies, not only those of consumer manufacturers who see a marketing opportunity or those major corporations who feel under PR pressure to instigate often poorly conceived and cosmetic corporate social responsibility initiatives. The book examines the successes, failures and missed opportunities of a wide range of global companies including Wal-Mart, BP, Unilever, Shell and HSBC when dealing with the poor and with development advocates in the media, NGOs, governments and international organisations. It includes a discussion on how to use a poverty perspective to provoke profitable innovation - not only to create new products and services but also to find new sources of competitive advantage in the supply chain and to develop more sustainable, lower-cost business models in developing countries. This book will be essential reading for international business managers seeking to increase profits and decrease risks in developing countries, development advocates who seek to harness the profit motive to achieve reductions in poverty, and academics looking for practical strategies on how business can implement BOP initiatives in developing countries.

Product Details

• Amazon Sales Rank: #1788716 in Books
• Published on: 2006-11-30
• Original language: English
• Binding: Hardcover
• 190 pages

Review
"Entertaining, well-written and refreshingly free of management jargon, this is an engaging contribution to the debate on development" William Keegan, Senior Economics Commentator, The Observer "Make Poverty Business will revolutionise how people think about corporate social responsibility. No CEO should be without this book." Alex Singleton, Director-General, The Globalisation Institute "Make Poverty Business will be read by business leaders, but it should be read by everyone who cares about global poverty. Michael Strong, CEO, FLOW, Inc

From the Publisher

This book aims to redesign, redefine and reinvigorate working with the world's poor by focusing on numerous low-risk, low-cost recommendations on how business can interact with and positively influence the lives of people at the bottom of the pyramid.

Poor people in developing countries could make excellent suppliers, employees and customers but are often ignored by major businesses. This omission leads to increased risk, higher costs and lower sales. Meanwhile, businesses are asked by governments and poverty activists to do more for economic development, but their exhortations are rarely based on a proper business case. Make Poverty Business bridges the gap by constructing a rigorous profit-making argument for multinational corporations to do more business with the poor. It takes economic development out of the corporate social responsibility ghetto and places it firmly in the core business interests of the corporation, and argues that to see the poor only as potential consumers at the bottom of the pyramid (BOP) misses half of the story.

Make Poverty Business examines the successes, failures and missed opportunities of a wide range of global companies including Wal-Mart, BP, Unilever, Shell and HSBC when dealing with the poor and with development advocates in the media, NGOs, governments and international organisations. It includes a discussion on how to use a poverty perspective to provoke profitable innovation -- not only to create new products and services but also to find new sources of competitive advantage in the supply chain and to develop more sustainable, lower-cost business models in developing countries.

Make Poverty Business will be essential reading for international business managers seeking to increase profits and decrease risks in developing countries, development advocates who seek to harness the profit motive to achieve reductions in poverty, and academics looking for practical strategies on how business can implement BOP initiatives in developing countries.

"Entertaining, well written and refreshingly free of management jargon, this is an engaging contribution to the debate on development."
- William Keegan, Senior Economics Commentator, The Observer

"Make Poverty Business will revolutionise how people think about corporate social responsibility. No CEO should be without this book."
- Alex Singleton, Director-General, The Globalisation Institute

This is a savvy, eminently useful book that should be in the hands of global business managers and development agency staff alike. Craig Wilson and Peter Wilson go beyond the anecdotal evidence for tapping the consumer and outsourcing potential of the poor. In clear, no-nonsense language, they provide a roadmap of new angles, hidden pitfalls, and profitable shortcuts.

"They blend their first-hand, hard-won experience in developing nations with nuanced research by some of the world's leading development thinkers. Page for page, this book represents a very good deal -- both for the poor harried managers in today's globalizing enterprises, and for the poor themselves, who will benefit from its impact."
- Joseph S. O'Keefe, writer in residence, The Brookings Institution

"Make Poverty Business will be read by business leaders, but it should be read by everyone who cares about global poverty. It contains dozens of specific, practical suggestions for corporate managers interested in increasing the stability and profitability of their operations in poor nations -- and, quite remarkably, the authors make a solid, level-headed case that their suggested business practices will reduce global poverty and improve the reputation of global business. A must-read for corporate managers and NGO leaders who realize that ethical business can serve the best interests of all."
- Michael Strong, CEO of FLOW, Inc., dedicated to 'Liberating the Entrepreneurial Spirit for Good'

About the Author

Craig Wilson and Peter Wilson are well placed to combine the best insights from business strategy, political risk and economic development and to discard the worst. Their combined experience includes the World Bank, the International Finance Corporation, McKinsey and the British Diplomatic Service and they have worked in many of the world's most challenging environments including Bangladesh, East Timor, Indonesia, Kosovo and Sierra Leone. Their academic backgrounds in development economics (Columbia and Oxford Universities) and business strategy (INSEAD) are supplemented by real hands-on experience of what works and what doesn't for businesses and development.

Customer Reviews

The time has come to address poverty as a business opportunity
I recently returned from a conference addressing global poverty where a young entrepeneuer from Tanzania addressed the problem and solution very consisely "We don't want aid, we want jobs". Make Povery Business has been the most compelling book I have read to date in it's argument of why multi-national corporations should enter third world markets. The Wilsons present a balanced look at the huge potential market opportunities selling to half the gloabal population living in poverty and the inherent risks as well. I think the they do a nice job in looking at all the players addressing poverty and suggesting how they can leverage each others work by sticking to their core competencies. They look honestly at incentives and motivation while making the business based argument. The book is very readable and spends more time looking at possible market based solutions and how they might play out, rather than going over the injustice and history of poverty which by now anybody who is paying attention already knows.