The Enterprise Observatory (EOIC) presents its fourth report on inclusive growth

There is a growing demand for an economic model that generates opportunities and benefits for all of society. What is the specific contribution of business to this change? In this process, is there room to attend to people in a situation of vulnerability or at risk of exclusion? What role will the public sector play in facilitating an economic recovery after the COVID-19 that leaves no one behind?

The Business Observatory for Inclusive Growth (OEPCI) has answered these questions in its 4th report: 'Inclusive Growth. In search of shared prosperity'. The OEPCI and Prodigioso Volcán have collaborated to produce this publication for companies - of any sector and size - interested in improving the social impact of their business, thus contributing to a more inclusive economy.

Poverty and social exclusion in Spain continue to be a reality and the economic recession generated by the COVID-19 health crisis has made this more evident, so the first objective of the report is to raise awareness of these issues. To this end, the research team has analysed the levels of inequality and poverty through the Gini indices and the human development indices, also considering the global forecasts after the pandemic. 

The World Bank predicts that by 2021 extreme poverty in the world will increase by 150 million people. Among other data, the OEPCI puts the focus on the so-called energy poverty, which is that 15% of the Spanish population - 6.8 million people - suffer from inadequate temperatures in their homes. "The pandemic has brought new indicators of poverty," notes Monica Gil-Casares, coordinator of OEPCI projects and director of research at the CODESPA Foundation. In Spain, there are 235,000 households that only have access to the Internet through their mobile phone, which will also influence the educational level of the children and young people in the family".

There is a clear effort in this report to go beyond diagnosis, to inspire and call for action. It includes case studies, guidelines for action and examples of businesses that can inspire and guide the private sector towards a more inclusive economy. The situation in companies has changed, and as Jordi Canals of IESE Business School points out, they are increasingly interested not only in being profitable but also in having a "very strong social component" by offering work "to people with disabilities and high social vulnerability". 

A fundamental idea of the study is that companies can favour inclusion with their own business activity, in their relationship with employees, suppliers or clients: "The capacity to listen to stakeholders and social innovation to adapt products and services to their needs will be the key tools to achieve this". The study also looks in depth at education, training and employment as key pathways to social inclusion. 

With the development of the concept of "inclusive growth", the OEPCI proposes new horizons for those working for sustainability in companies. This proposal broadens the view towards all interest groups, with special attention to those at risk of exclusion, and with a long-term projection aligned with inclusion and sustainability. 

What the report proposes is a change of vision, a leap from corporate social responsibility or philanthropy to a philosophy of inclusive growth, although without neglecting the first two. "It is no longer a question of carrying out social projects, but rather of achieving a social impact in a transversal way, from the different areas of the company". Therein lies its interest and potential, but also its difficulty. 

They add that a company grows in an integrative way when it is concerned with generating goods and services that add value to people and attending to potential clients who are now excluded. It implies ethical agreements with suppliers, having recruitment policies for groups at risk of exclusion, generating opportunities for weaker economic actors, supporting the communities in which it operates through its supply chains. But inclusive growth starts from within. It is a question of reducing wage gaps, ensuring inclusion in the workforce, committing to training and developing employees.

This is a new way of understanding the business purpose: "This is what both CODESPA and a large group of strategic partners of the foundation, such as the IESE Business School, The Boston Consulting Group, Deloitte and Open Value Foundation, and some others, understand when they started the Prosper4ALL project. "This initiative aims to create a framework for analysing and measuring the commitment of companies in the search for social impact and inclusion through their business areas and towards all their stakeholders". 

The publication can also be used by public administration, third sector organisations (NGOs), academic bodies and international organisations; in short, by all those seeking sustainable solutions to the challenges of inequality and poverty, through the generation of alliances, as established in Sustainable Development Objective 17.

The research has been supported by the Spanish Agency for International Development Cooperation (AECID) and the Institute for Foreign Trade (ICEX). A total of 31 private companies, ten business foundations and organisations, six research centres, two public bodies, international organisations and NGOs have taken part. Some of these are BBVA, Divina Pastora Seguros, Fundación "La Caixa", Open Value Foundation, Fundación UNIR, Fundación KPMG and Sener. For their part, IESE Business School and Boston Consulting are involved in OPECI's research, strategy and development lines. They also contribute to the work of the Arquia Observatory and the Ramón Areces Foundation.