A FRAMEWORK FOR PRACTICAL ACTION

IN INCLUSIVE BUSINESS
2
1) Understand business risks and
opportunities
Are there oonoerns around emp|oyee
produot|v|ty?
Are emp|oyee mot|vat|on, attraot|on
and retent|on a oha||enge?
ls there a suffo|ent ta|ent poo| to h|re
from?
Are there h|gh oommun|ty
expeotat|ons that the oompany w|||
prov|de jobs?
ls there government pressure to
support eduoat|on and/or oreate
jobs?
ls there a need to |ooa||se your
emp|oyee and supp|y base?
ls there potent|a| to grow sa|es by
extend|ng brand reaoh through
d|str|but|on?
ls there a oonoern around seour|ty of
supp|y?
ls there potent|a| to deve|op produots
and serv|oes for sma|| bus|nesses?
2) Understand societal needs
Are your emp|oyees unab|e to fnd
jobs when |a|d off?
Does the |ooa| oommun|ty need jobs
and |noome?
ls there a |aok of eduoat|on and
sk|||s?
Are sma|| bus|nesses fa|||ng due
to |aok of fnanoe, teohno|ogy or
support?
ls there soo|a| tens|on |n the
baokground, wh|oh threatens the
operat|ng / market|ng env|ronment?
3) Match business and societal
needs
ls the |aok of tra|n|ng oontr|but|ng to
a |aok of ta|ent for the oompany?
ls |aok of jobs oreat|ng soo|a| unrest
and |mpaot|ng the oompany`s
operat|ons?
Oan the needs of the entrepreneur
be met through oompany produots?
Oan deve|op|ng |ooa| entrepreneurs
oontr|bute to a more stab|e supp|y or
d|str|but|on oha|n?
1.
Understand
business
needs
2.
Understand
societal
needs
3. Match
business
and societal
needs
4.
Dene
project, seek
partners
5.
Measure,
evaluate,
re-design
Figure 1: Designing and Delivering a Project
Figure 1 illustrates a decision-making process that ensures that any action a company
takes is focused on the issue areas where business and societal needs intersect.
Projects can then be designed and delivered. This includes seeking partners, dening
performance indicators and measuring impact.
In general, companies are good at Steps 1 and 4, i.e. understanding their own risks
and opportunities and delivering projects. Some companies are able to identify societal
needs (Step 2). But most companies need help in matching business and societal
needs to dene key focus areas and in developing approaches to measure and
evaluate performance (Steps 3 and 5).
The collection of tools produced in this framework builds on IBLFs previous report Business of Jobs which focused on how
companies can develop employability and enterprise through partnership. They have proven useful for businesses exploring
inclusive business opportunities.
3
4) Dene project and seek partners
What outoome |s be|ng sought?
What |s the soope of the projeot?
ls |t oore bus|ness, oommun|ty
|nvestment or pub||o po||oy?
Who from the oompany needs to be
|nvo|ved?
Wh|oh organ|sat|ons have the
neoessary oompeteno|es and
resouroes?
What needs to be done and wh|oh
partner w||| do what?
5) Measure, evaluate and re-design
Wh|oh soo|a| and bus|ness
performanoe |nd|oators w||| be
measured? How?
How and when w||| the projeot be
rev|ewed? By whom?
How d|d the |n|t|at|ve perform aga|nst
|nd|oators and expeotat|ons?
Oan |t be extended so as to grow the
resouroe base and / or |norease the
|mpaot?
P
u
blic Policy
C
o
mmunity
S
u
p
ply Cha
in
s
M
a
rket Pla
c
e
W
o
rkpla
c
e
Core operations and supply chain operations
Produo|ng goods and serv|oes
Buy|ng |ngred|ents and serv|oes
Se|||ng produots
Prov|d|ng jobs and deve|op|ng peop|e
Social investment and philanthropy
F|nano|a| oontr|but|ons |no|ud|ng trad|t|ona|
ph||anthropy, |nvest|ng |n soo|a| venture
funds and other fnano|a| meohan|sms
Emp|oyee vo|unteer|ng
Produot donat|ons and other |n-k|nd oontr|but|ons
Public policy intervention
Advooat|ng for ohange on pub||o po||oy
Engag|ng |n d|a|ogue w|th governments
Support|ng |nst|tut|on bu||d|ng
Figure 2: Sphere of Inuence Model
Inclusive business models are concerned with changes in core business. Figure 2 illustrates the distinction between this and other
socially orientated business activities.
IBLF has devised a simple model to review the way in which business impacts on and interacts
with society (Figure 2). This has been used successfully in a number of IBLF reports and is
reproduced below.
4
MAKING IT WORK
Key Principles to Practical Action

The key principles to keep in mind when designing a collaborative approach on the
topics of employability and enterprise development are:
1 Base the projeot on a o|ear bus|ness need (proftab|||ty, fex|b|e supp||ers, speo|a||sed
workers eto}.
2 Bu||d |n suffo|ent t|me to a||ow the partnersh|p to be formed, a robust approaoh
deve|oped and |mp|emented, and next steps determ|ned.
3 ln p|ann|ng and de||ver|ng a programme, oons|der the spheres of |nfuenoe |n wh|oh a
oompany operates, so as to be o|ear on wh|oh stakeho|ders to |nvo|ve |n the projeot
4 Seek d|verse stakeho|ders to br|ng |n the needed expert|se and resouroes. Work w|th
|ooa| partners to bu||d on the|r |ooa| know|edge, networks and exper|enoe.
5 Oons|der vu|nerab|e seot|ons of soo|ety suoh as women, m|nor|ty groups and
marg|na||sed oommun|t|es.
6 Defne soo|a| and bus|ness performanoe metr|os and oo||eot data.
7 Share |earn|ng and exper|enoe w|de|y.

Figure 3 highlights the areas for inclusivity shown as core business in gure 2 as a
basic value chain.
Figure 3: Areas for inclusivity
5
Internal Steps
Ana|yse the needs, opportun|t|es and oha||enges w|th|n the bus|ness that oou|d dr|ve
the |no|us|ve |n|t|at|ve
Oons|der a||gn|ng bus|ness and soo|a| |nvestment objeot|ves
Ood|fy the standards and va|ues that wou|d be essent|a| prerequ|s|tes for part|o|pat|on
by externa| aotors suoh as SMMEs, NGOs eto
Determ|ne the degree of know|edge, sk||| and teohno|ogy that w||| need to be
transferred to externa| aotors to enab|e the |n|t|at|ve to work
Seoure support from the oh|ef exeout|ve and board of d|reotors
A||ooate management respons|b|||ty for the |n|t|at|ve and |ts oonst|tuent parts
Oonsu|t w|th a|| appropr|ate oo||eagues to seoure buy-|n and praot|oa| support for any
|n|t|at|ve, |no|ud|ng where the |n|t|at|ve shou|d s|t w|th|n the oompany struoture
Prov|de opportun|ty, enoouragement and |noent|ves for emp|oyees to aot|ve|y
part|o|pate |n as many aspeots of the |n|t|at|ve as poss|b|e
Estab||sh a mon|tor|ng, report|ng and measurement prooess to underp|n susta|nab|||ty
and to aot as a tr|gger for amendment and adaptat|on of the |n|t|at|ve as needed
Assess and oommun|oate the suooesses and |essons |earned throughout the
oompany, thereby enoourag|ng the spread of best praot|se to other bus|ness un|ts and
oountr|es
A PLANNING FRAMEWORK
External Steps
Meet, oonsu|t w|th and part|o|pate |n the aot|v|t|es of the partner organ|sat|ons/target
market
Deve|op and strengthen re|at|onsh|ps w|th key |eaders and organ|sat|ons
ldent|fy potent|a| partners |n the |ooa| oommun|ty, both as |ntermed|ar|es and as
bus|ness partners, and seek oommon agendas and bus|ness pr|or|t|es
Oonsu|t and negot|ate on speo|fo |n|t|at|ve proposa|s w|th |ntermed|ar|es and potent|a|
bus|ness partners, and agree speo|fo ro|es
Agree w|th |ntermed|ar|es and bus|ness partners on the degree of know|edge, sk|||s
and teohno|ogy that w||| need to be transferred to enab|e them to respond to ava||ab|e
bus|ness opportun|t|es
W|th the partners, agree and |mp|ement the methodo|ogy for mon|tor|ng, report|ng and
measur|ng progress and the prooess for oonsu|t|ng on any neoessary amendment or
adaptat|on of the |n|t|at|ve
Ass|st the partners and the oommun|t|es |mpaoted to oommun|oate suooesses and
benefts fow|ng from the |n|t|at|ve
Demonstrate |eadersh|p by enoourag|ng other oompan|es to part|o|pate |n |no|us|ve
|n|t|at|ves by shar|ng suooessfu| examp|es and methodo|og|es

6
Commonobstacles
Whataretheobstacles
toinclusive business
initiatives?
Conception
Execution
Lackof interest
Lackof opportunity
Lackofawareness
Perceivedrisk
Focuselsewhere
Start-up
Ongoing
External
Internal
Lackofinformation
Lackofexperience/skills
Lackoftime/focus
Longpaybacktime
Insufficientscale
Prohibitivestart-upcosts
Partnercoordination
Corruption
Product/service
popularity
Price
Supply
Demand
Operational
Development
Humanresources/skills
Distribution
Communication
Attrition
Neutral/negative
developmentalimpact
Production/inputfactors
Costs
Regulation/bureaucracy
Recruitment/human
resources
ObstacleFramework
Internalstakeholdersnot
connected
Highcostofcapital
Lackofconsumerfinance
Awareness/brand
recognition
Lackofsynergywithcore
business
Monitoring&evaluation
OBSTACLES TO INCLUSIVITY
7
Commonobstacles
Partnering with
SMMEs/trade networks
Trade networks mayhave
knowledge of
Partnering with NGOs/CBOs
Accesstomicro finance
Established community
relationships
Market information
Understanding of
development impacts
Partnering with Govand
International Orgs
Dialogue on
infrastructure/regulation
issues
Possiblesource ofjoint
funding
Partnering with Academic
Inst
Specialist monitoring and
evaluation tools
Specialist training
Typeofpartnership
Lackofawareness
Perceivedrisk
Focuselsewhere
Longpaybacktime
Insufficientscale
Lackofinformation
Lackofexperience/
skills
Lackoftime/focus
Monitoring&
evaluation
unreliable
infrastructure
Humanresources/
skills
Distribution
Product/service
popularity
Price
Prohibitivestart-up
costs
Partnercoordination
Corruption
Production/input
factors
Costs
Lackofsynergywith
corebusiness
Communication
Attrition
Neutral/negative
developmental
impact
Dependency
Internalstakeholders
notconnected
Highcostofcapital
Lackofconsumer
finance
Awareness/brand
recognition
trust
Regulation/
bureaucracy
Recruitment/
humanresources
information
Commonobstacles
Notall obstacles can beovercome through external
partnerships.Manyobstacles areinternal andtherefore
requireinternal solutions. Frequently,theyarise
becauseof failures attheplanning stage.
OVERCOMING OBSTACLES THROUGH PARTNERSHIP
8
MAKING IT WORK: UNDERSTANDING PARTNERSHIP
Transaction
One party deo|des the programme, wh|oh |s ||m|ted by
the|r own know|edge / exper|enoe
One party purohases (or donates} a speo|fo resouroe
lnfex|b|e expeotat|ons and oontraot w|th o|ear
de||verab|es deo|ded at beg|nn|ng
Partners may be opaque |n the|r |nterests
||tt|e |nterest or buy-|n from partners beyond the
oontraotua| agreement
||tt|e/no |ong term effeot on organ|sat|ons/soo|ety
Genuine Partnership
Oo-generat|on of programme based on oomp|ementary
know|edge thereby |ead|ng to more appropr|ate /
|mp|ementab|e so|ut|ons
Partners br|ng together a range of oomp|ementary resouroes and
oompeteno|es |ead|ng to |nnovat|ve so|ut|ons
Ongo|ng d|souss|ons w|th organ|o de||verab|es muoh more adaptab|e to
|ooa|, ohang|ng rea||t|es or unexpeoted events
Partners more transparent, a||ow|ng for the w|dest |nformat|on
(|no|ud|ng on partner ||m|tat|ons} to |nform better deo|s|on-mak|ng
Good re|at|onsh|p and buy-|n among the partners |eads to
partners w||||ng to go the extra d|stanoe beyond oontraotua|
agreement
Potent|a| for transformat|on of organ|sat|ons/soo|ety