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Social Business : Why should firms tackle poverty issues? by Prof. Frédéric Dalsace

10 April 2013

Frédéric Dalsace is associate professor of marketing at HEC Paris where he holds the Social Business / Business and Poverty Chair sponsored by Danone, Schneider Electric and Renault. In this video, he explains that since firms have gained ever greater weight and power in societies throughout the years, it is now their duty to change and take the poverty issue into account.

 

He gives three reasons for that:

  • Firms should not accept to create poverty penalties (what Frédéric Dalsace called a "Double Jeopardy" in a recent research paper) meaning that poor people are paying more than rich people
  • The Business case: by developing inclusive business for the poor, firms can have access to resources in different countries, it gives them extra sales, increase employees' motivation, create social capital for the company and ways to innovate. "Reverse innovation, that is to say innovation that comes from the Bottom of the Pyramid (BOP) (see Research workshop on BOP), will probably become the most important innovation concept for the next 20 years", according to Prof. Frédéric Dalsace.
  • "Firms need to change" and working with poor people is "a way for firms to make the world more sustainable .

Prof. Frédéric Dalsace finally describes the three caracteristics of social business as developed by Muhammad Yunus, winner of the 2006 Nobel peace prize, founder of Grameen bank and co-president  of the HEC “Social Business/ Business and Poverty Chair".


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