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Abstract:
The popular 'bottom of the pyramid' (BOP) proposition argues that large companies can make a fortune by selling to poor people and simultaneously help eradicate poverty. While a few market opportunities do exist, the market at the BOP is generally too small monetarily to be very profitable for most multinationals. At the same time, the private sector can play a key role in poverty alleviation by viewing the poor as producers, and emphasize buying from them, rather than selling to them.

Poverty, Bottom of the pyramid, Selling to the poor, social responsibility

Abstract:
According to the 'doing well by doing good' proposition, firms have a corporate social responsibility to achieve some larger social goals, and can do so without a financial sacrifice. This paper empirically examines this proposition by studying in depth the case of 'Fair & Lovely,' a skin whitening cream, marketed by Unilever in many countries in Asia and Africa, and, in particular, India. Fair & Lovely is indeed doing well; it is a profitable and fast growing brand. It is, however, not doing good, and I demonstrate its negative implications for public welfare. I conclude with thoughts on how to reconcile this divergence between private profits and public welfare.

Corporate social responsibility, bottom of the pyramid

Abstract:
The essence of strategy is to make controversial choices; this is the only way to gain a competitive advantage. Both strategy development and execution require making difficult choices and trade-offs often in the context of much uncertainty. Smart managers are bound to have opposing views given the nature of strategic decisions. This paper presents a process for strategy development that can help managers surface this conflict, and then manage and resolve the conflict, thus resulting in more effective strategic choices.

Strategy, competitive advantage, strategic planning process, choices, trade-offs, managing conflict, strategic analysis

Abstract:
Most studies suggest that microcredit is beneficial but only to a limited extent. The problem lies not with microcredit but rather with microenterprises. With low skills, little capital and no scale economies, these businesses have low productivity and lead to meager earnings that cannot lift their owners out of poverty. Creating opportunities for steady employment at reasonable wages is the best way to take people out of poverty. The government is responsible for providing public services that are critical for increasing the productivity and the employability of the poor.

Microfinance, bottom of pyramid, poverty reduction

Abstract:
Poor people - at the bottom of the pyramid (BOP) - represent a very attractive market opportunity. The "BOP proposition" argues that selling to the poor can simultaneously be profitable and help eradicate poverty. This is at best a harmless illusion and potentially a dangerous delusion. This paper shows that the BOP argument is riddled with fallacies, and proposes an alternative perspective on how the private sector can help alleviate poverty. Rather than focusing on the poor as consumers, we need to view the poor as producers. The only way to alleviate poverty is to raise the real income of the poor.

Poverty, Bottom of the pyramid, Selling to the poor, social responsibility

Abstract:
A libertarian movement that emphasizes free markets to reduce poverty has grown strong in recent years. It views the poor as 'resilient and creative entrepreneurs and value-conscious consumers'. This romanticized view of the poor is far from the truth and harms the poor in two ways. First, it results in too little emphasis on legal, regulatory, and social mechanisms to protect the poor who are vulnerable consumers. Second, it results in overemphasis on microcredit and under-emphasis on fostering modern enterprises that would provide employment opportunities for the poor. More importantly, the libertarian proposition grossly under-emphasizes the critical role and responsibility of the state for poverty reduction.

Poverty reduction, bottom of the pyramid

Abstract:
Widespread poverty is an urgent challenge for the world. Creating opportunities for steady employment at reasonable wages is the best way to take people out of poverty. Reducing poverty through employment requires two major thrusts: 1) generate employment, and 2) increase employability. To increase employment, I argue for focusing on small and medium sized enterprises, which are the main engine of job creation. To increase employability, a good starting place to focus on is the youth. This paper describes in detail two organizations, TechnoServe and Employment Generation & Marketing Mission, which are implementing these ideas and effectively helping to reduce poverty.

Poverty reduction, youth employment, job creation, facilitate employment, public-private partnership

Abstract:
Private for-profit companies are playing an ever-larger role in the microcredit industry. The volatile combination of profit seeking companies, minimal competition, and vulnerable, ill-informed, ill-educated borrowers has opened up dangerous potential for exploiting the poor. Expecting microcredit organizations to exercise self-restraint and self-regulation is naively optimistic and will not work. Regulation is needed to protect the microcredit clients in three areas: transparency, interest rate ceiling, and loan recovery practices.

Microcredit, regulation, transparency, interest rate ceiling

Abstract:
Market based solutions to alleviate poverty have become increasingly popular in recent years. Unfortunately, there are very few examples of profitable businesses that market socially useful goods in low-income markets and operate at a large scale. This article examines in-depth three case studies of multinational firms that tried to market unquestionably useful products -- clean water, eyeglasses, and nutritious yoghurt -- to the poor, and did not succeed commercially. The overarching lesson we draw from the case studies is that developing strategies for marketing socially useful goods to the poor, far from triggering a revolution in business thinking, requires firms to get back to the basic principles and rules of economics and business.

Poverty reduction, bottom of the pyramid, economic development, social goods

Abstract:
The essence of strategy is to make controversial choices in order to gain a competitive advantage, but difficult choices often engender opposing views. Aneel Karnani presents a process for strategy development that can help managers surface, manage and resolve conflict, thus resulting in more effective strategic choices.

Abstract:
Aneel Karnani suggests that current thinking about reducing poverty is based on an unrealistic view of the poor and inadequate expectations about how governments can best address the problem.