GROUP 8

ETHICAL ISSUES IN THE DEVELOPING WORLD

WHAT IS BOP?

BOP (bottom of the pyramid) refers to poor people who are virtually ignored by most corporations because they are perceived as high risk and low risk customers.

ETHICAL ISSUES MULTINATIONALS FOCUS ON WHEN DEALING WITH BOP.

The appropriateness of the products

The price points established by the firms

The potential misuse of advertising and promotion

Multinationals not required to maintain the profits from their BOP in the local communities

SEVEN KEY PRINCIPLES FOR BEING PROFITABLE FOR BOP MARKETS

Create market opportunities Craft solutions with the BOP Orchestrate effective experiments Manage failures Establish or comingle competitive advantage Leverage and transfer social embeddedness Enhance mutual value.

WHAT IS SOCIAL ENTREPRENEURSHIP?

Social entrepreneurship is organizations that have created business models that cater to basic human needs that are not currently being served.

Social entrepreneurs can be considered as individuals who use

their drive and motivation as traditional entrepreneurs and focus on a mission that can positively impact society.

ATTRIBUTES A SOCIAL ENTREPRENEUR MUST HAVE TO BE SUCCESSFUL.

A specific vision of the purpose and goals and objectives of the organization.

The ability to use his or her leadership skills to champion the implementation of his or her vision.

The will and motivation to be committed to developing the business so that it will be sustainable in the long term.

TEN CHARACTERISTICS OF SUCCESSFUL ENTREPRENEURS

To try to disregard the constraints of ideology or discipline

Using innovation, resourcefulness and opportunity to determine what practical solutions are viable to solve the social problem

Using innovation to focus on the development of new products or services

To focus on how the organization’s mission will be used to create social value and be able to share its knowledge with other social entrepreneurs.

CONTINUING…

To not wait until all resources are available to capitalize on the opportunity

To recognize everyone has the ability to contribute to the economic and social development of the organization

Every entrepreneur is willing to take risk to succeed

To make sure to balance the passion for the project with the ability to measure and monitor social impact of the project.

CONTINUING…

They are good teachers so others can learn how to achieve their social goals

Entrepreneurs have to be patient when they do not see the type of progress that is needed for a successful competition of the project.

DIFFERENT TYPES OF SOCIAL ENTREPRENEUR BY SHAKER ZAHRA

Social bricoleur- focuses on addressing the social needs of local communities.

Bricoleur- the ability to use existing resources to address the strategic issue. Social Constructionist – focuses on

exploiting the market gaps which do not serve certain customers

Social Engineer – identifies systemic broad problems within the existing social structures and addresses these problems with frame breaking revolutionary change

SEVEN PRINCIPLES FOR SOCIAL BUSINESS

1. The business objective of the organization is to address a social problem and not to maximize profitability

2. The firm will need to obtain both financial and economic sustainability

3. Investors of the organization will only receive back their full investment amount

4. When the investment amount is paid in full to all the investors, the subsequent profits will be invested back into the firm

CONTINUING…

5. The firm is mandated to be environmentally conscious and sustainable

6. The employees of the organization will receive market wages with superior working conditions

7. The running of the organization need to be done with joy!

FAIR TRADE

Fair Trade is all about creating a win-win business proposition for third world farmers and for U.S. industry.

It is trading partnership, based on dialogue, transparency and respect that seeks greater equity in international trade.

FAIR TRADE

Core principles of fair trade: Providing market access for marginalized

producers, Developing sustainable and equitable trading

relationships Developing knowledge and skills of the

producers to increase their empowerment Increasing consumer awareness and advocacy Develop a social contract with the buyers to do

more than the minimum expected of them in the marketplace.

HUMAN RIGHTS

Human Rights can be defined as the “…rights held by all individuals solely by virtue of their status as human beings…human rights belong to everyone, regardless of creed or nationality.”

Human rights such as civil rights, property rights and labor rights can have a direct impact on the strategic focus of the firm

HUMAN RIGHTS

Four positive reasons for promoting human rights1. Respecting human rights enhances

worker productivity and management creativity

2. Promoting rights opens markets3. Promoting respect for human rights goes

hand in hand with development of rule law

4. Promoting respect for human rights is good for a company’s image, both at home and in the host company

POVERTY AND HUNGER

With the world’s population above 7 billion people, poverty will continue to be a dominant discussion point for countries and government leaders to ponder.

Poverty will lead to hunger and without food it is difficult to financially support oneself (and other family members) and, therefore, reinforces the cycle of poverty

POVERTY AND HUNGER

What causes hunger?

The Natural Environment

War

Poverty Gap

Poor Infrastructure

Over-Exploitation of the Environment

THE UNITED NATIONS MILLENNIUM DEVELOPMENT GOALS

1. Eradicate extreme poverty and hunger2. Achieve universal primary education3. Promote gender equality and empower

women4. Reduce child mortality 5. Improve maternal health6. Combat HIV/AIDS, malaria and other

diseases7. Ensure environmental sustainability8. Develop a global partnership for

development

THE END