Business and the Global Poor

This week's issue of the Harvard Business School Working Knowledge newsletter has an interview with Kash Rangan that merits the attention of all social entrepreneurs. Here's a small taster to get you started:

Even when companies do carefully consider the economic and social impacts of their products on the poor, they may still face reputational threats if their BOP ventures are seen as "excessively profitable." Of course, it can be argued that without this profit, businesses targeting the poor will not attract the level of investment necessary to be sustainable or scaleable across the entire BOP. According to this view, above-average profitability should be seen as a sign of success, one that will no doubt invite competition and thereby bring down prices, ultimately benefiting the poor. To minimize negative public perception, however, companies that find that they are "profiting from the poor" must be willing to publicly address the profit debate, work collaboratively with NGOs and governments, and also measure and report on the social value they are creating for the poor.

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