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What brings us together?. The vision of using market forces and supply chains as vehicles for inclusive growth. But why bother? Arguably, it is said that global revenue distribution inequality is the single greatest failure of our time. Let us stress how badly is wealth distributed….
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The vision of using market forces and supply chains as vehicles for inclusive growth.
But why bother? Arguably, it is said that global revenue distribution inequality is the single greatest failure of our time.
Let us stress how badly is wealth distributed… The richest 20% of the world’s population earn 81.2% of the world income The top 1% owns 43% of the world's wealth. This elite club may well include you – you need an annual income of $34,000 (£21,000) to qualify. Source: UNICEF
Not so clear how bad is it? Source: change.org The 300 most rich individuals have more than the poorest 3.000.000.000
So now what? We become naive do-gooders trying to change the world?
Not that simple. By doing profitable businesses alongside meaning and principles, we capture and create more value (shareholder value and community value) than doing business as usual.
Now let’s hear it from Ercus & Toks
Challenges & opportunities • On-going challenges: • Authenticity, transparency & visibility • Impact measurement and management • Achieving scale • Developing efficient supply chains • Lack of of technology supported processes • Spotted solutions vs. Systemic change • Folkloric vs. Iconic brands • Bridges vs. Leaps: • from poor, to emerging, to…? Profit oriented Traditional business models sustainability constraints Social business is the way forward Fair Trade Shortfalls Governmental agencies inherited limitations CSR not enough Mission oriented • Great opportunities to capitalize on existing models & concepts: • Impact investment and re-investment (Yunus social business) • Shared value creation (vs CSR) • Hybrid Value Chains (synergies between businesses and NGOs) • Social entrepreneurship global awareness and success stories Charities facing feasibility challenges
What we are trying to put in place Capitalizing on existing models and targeting the principal challenges we develop: • Engaging with communities and socially accountable partners whose products deliver high root value. • Placing authenticity and impact as unquestionable pillars of the model • Using a market approach and business best practices. • Designing story-telling brands that communicates the products’ real value to the market. • Developing efficientsupply chains that increases profits. • Using technology to: • Track authenticity and manage impact. • Give transparency to all stakeholders • Re-investing profits into the value chain until value-benefit parityis reached. An end-to-end supply chain for communities and producers to bring new, high value products to the international marketplace in a competitive way. By truly embracing these concepts into our DNA, a complete, prosperous and scalable ecosystem has to be created.
Our ultimate purpose To generate a framework that progressively forges a fair distribution of compensation and wealth bycreating a self-regulating system that drives the balancingofunder-rated vs over-rated values of products and services in the value chain.