Motivating Business to Act in Social Responsible Ways
Businesses, both large multinational companies (MNCs) and Small and Medium sized enterprises (SMEs), have paid considerable attention to the surge in inclusive innovation and socially responsible business practice. At the new frontiers of doing socially responsible business, companies pursue social and environmental aims, insofar as there are financial gains. However, the way that businesses relate to these social and environmental elements is shifting. There are increasingly more examples of businesses pursuing intrinsic value creation by integrating simultaneously social/environmental and growth objectives in their business model. These new frontiers, most vividly captured in the innovation literature, attract businesses to see new possibilities at Bottom of the Pyramid (BOP) markets. The successful ventures in this kind of innovation targeted to lower income markets – also referred to as ‘frugal innovation’ – are characterized by well-thought through multi-stakeholder partnerships and business models that have been entirely re-conceived. This report draws out the key incentives to social responsible business practices, reviewing how such practices can be encouraged and scaled.