There can be no recovery that does not address the race to the lowest wage, tax cuts and precarious working conditions. Businesses and investors’ active contribution to inclusive growth is indispensable for our global society to emerge from the top, given the long list of inequalities accelerated and amplified by Covid-19.
An Explosive Social Context, Locally and Globally
The World Bank recently estimated that 2020 could see an increase of 50 million people living on less than $2 a day. What Americans facing racially-motivated police violence share with migrant communities in England and the suburbs of France is that they have paid an inordinately higher price to Covid-19.
The current pandemic highlights entrenched social inequalities, it does not create them. Decades of globalization and technological innovation have generated unprecedented economic growth, which has not been equitably distributed among individuals and countries. Ksapa indeed described these trends in its Towards 2030 Report.
At a time when many countries are temporarily sacrificing Labor Rights to recovery, activating inclusive growth policies in the wake Covid-19 may prove a challenge. We are actively working on these issues with companies and investors willing to strategize pertinent response. We will be discussing these issues and possible solutions with Sarah Tesei (Vinci) and Alexandre Brailowsky (Engie). Make sure you tune in for this webinar (in French) on June 30th, at 11AM: register now!
Covid-19 Lays Bare Corporate Abuse and Restores Value to Precarious, Yet Essential Workers
As societies ponder the conditions for recovery, they face major societal volatility, fueled by decades of frustration, stagnant wages and inequality… This is unfolding against a backdrop of growing demands from markets, governments and corporations for climate and environmental progress.
In the face of the Covid-19 pandemic, some companies have taken steps to preserve jobs and support their broader ecosystem. Others opted for massive layoffs – leaving their employees without social security in the midst of an unprecedented health crisis, or sinking strategic partners by cancelling their orders.
From now on and to ensure their survival, companies will have to soberly assess their capacity to distribute wealth more evenly across territories, among its employees and throughout their value chain. The inclusive growth framework allows them to proceed as part of a renewed collective social contract.
5 Levers for Business to Back an Inclusive Recovery
Based on concepts developed by the international community, including the United Nations Business Call to Action, the G20 Inclusive Business Forum and the Business for Inclusive Growth Pledge, Ksapa identified 5 priority levers for companies to quickly grasp the logic behind inclusive growth. The following are described in greater detail in our downloadable briefing paper:
- Ensure decent working conditions and a better standard of living for all employees
- Preserve equitable access to opportunity for local businesses in territories of operation
- Enforce respect of Human Rights throughout the value chain
- Develop opportunities for growth and redistribution across territories of operation
- Promote a more inclusive vision of capitalism and society
Companies are called upon to define a portfolio of targeted activities, prioritizing actions with a proven long-term impact. Indeed, the development of an inclusive growth policy allows companies to advantageously structure a broader effort to align strategies, operations and value chains with market trends.
Managing the current accumulation of socio-economic, environmental and governance crises should not cloud the fact the 2020’s must imperatively spell out a Delivery Decade on all fronts. Working with external experts can therefore prove useful in navigating the complexity of overlapping issues and standards.
Think you could benefit from constructive feedback on your corporate goals, shore up internal alignment or ensure that your strategies are grounded in sound methodologies? Feel free to reach out to Ksapa: our team stands at the ready to help you design tailored solutions for your specific challenges.
Author of several books and resources on business, sustainability and responsibility. Working with top decision makers pursuing transformational changes for their organizations, leaders and industries. Working with executives improving resilience and competitiveness of their company and products given their climate and human right business agendas. Connect with Farid Baddache on Twitter at @Fbaddache.