Geneva, May 3, 2023: The Business Council on Combating Inequality (BCTI), a cross-sector, multi-stakeholder coalition of leaders and organizations convened by the World Business Council for Sustainable Development (WBCSD), today announced that its flagship A report was published. Tackling inequality: A challenge for business action. This report provides new analysis of the private sector's critical role in addressing inequality and the powerful reasons why businesses must act urgently.
In its report, BCTI recognizes that the high and structural nature of inequality in today's world represents a systemic risk that poses an existential threat to societies and economies. BCTI examines how inequality undermines trust in our political and economic systems, fuels social unrest and polarization, constrains economic growth, and undermines our collective ability to tackle complex global challenges. We are identifying what is causing the damage.
“Today, we can clearly see the effects of inequality spreading around the world,” he said. Ilham Kadri, Solvay CEO and BCTI Co-Chair. “But inequality is not a fact of nature. It is a product of our systems and practices, and it can be changed.”
Against this backdrop, over the past 18 months, BCTI's commissioners have been working to ensure that businesses across all sectors have the most powerful tools at their disposal to more equitably distribute value and opportunity and avoid the risks posed by rising inequality. I spent a lot of time identifying the right tools. Recognizing that there are certain business models and practices that have contributed to widening social and economic disparities in recent decades, BCTI recognizes the potential of individual companies to close these gaps at this critical juncture. outlines specific actions that can be taken to ensure that Delivering better outcomes to people. Broadly speaking, these actions are:
- Implementing the United Nations Guiding Principles on Business and Human Rights
- Making essential products and services more accessible and affordable
- Building a diverse, fair and inclusive workplace and value chain
- Prepare employees for the future of work
- Providing safe, secure and sufficient work
- Pay and promote living wages and incomes
- Support and respect worker representatives
- Support effective public policy
- Adopt responsible tax practices
- Achieving a just transition to a net-zero, nature-positive economy
“This report is a call to action for business leaders,” he said. peter backer president CEO of WBCSD and co-chair of BCTI. “This provides a clear and convincing case for corporate action to address inequality, and provides comprehensive and credible evidence that business leaders can leverage to build a world of opportunity for all. and provide an impactful course of action.”
BCTI's report highlights how tackling inequality can help companies reduce an increasingly complex set of operational, reputational, regulatory and financial risks. It also highlights that companies' efforts to address inequality should be seen as a key investment in sustainable business success and can create significant market opportunities.
“Our current economic model leaves hundreds of millions of people behind.” Alan Jope CEO unilever and co-chair of the committee.. “Tackling this inequality will accelerate economic growth. For example, just paying a living wage could add US$4.56 trillion to global GDP each year through increased productivity and spending. After all, After all, when society prospers, business also prospers.”
The commission's flagship report provides a framework for sustainable business transformation to help companies identify, assess and strategically integrate meaningful measures to address inequality-related risks and opportunities. is also shown.
“Businesses can play a transformative role in tackling inequality by building innovative business models that support sustainable livelihoods.” Mr. Sanjiv Puri, ITC Chairman and BCTI Co-Chairman. “At ITC, our experience on the ground shows how essential it is, especially for farmers and rural communities, to develop inclusive value chains, strengthen climate resilience, and build capacity for tomorrow. I emphasized that.
The BCTI report highlights that business efforts to address inequality need to be built on two pillars: collaboration and stakeholder engagement. Inequality is a systemic problem and requires an organized, multi-stakeholder response. It will be important for the private sector to work closely with policymakers, investors, NGOs and others to drive large-scale change. Furthermore, serious private sector efforts to address inequality will require active engagement with stakeholder groups affected or potentially affected by corporate activities and efforts to incorporate their perspectives into corporate decision-making. It needs to be rooted.
“Business has a powerful role to play in reducing inequality and ensuring everyone can live the life they want.” Sunny Verghese, coFounder and Group CEO of Olam group and BCTI Co-Chair. “Olam has realized this through our work to improve the incomes and living standards of smallholder farming communities. To provide more opportunities to more people, we need to work together across the industry, government and other stakeholders. collaboration is essential.”
BCTI also highlights that inequality-related risks are closely linked to the climate emergency and nature loss. Global crises are severely impacting people and, if left unchecked, will further compromise human health, disrupt access to essential products and services, and destroy livelihoods. The most vulnerable in our communities are hit hardest. At the same time, the transition to a net-zero carbon and nature-positive economy will only succeed if it is fair, inclusive and provides opportunities for workers and communities around the world.
“Addressing inequality is not only a moral obligation, but also a business imperative to ensure long-term economic growth,” L said.Founder of the Council for Inclusive Capitalism, BCTI Co-Chair, In Forester de Rothschild. “Crucial to that growth is a just global transition to net zero, which helps address growing inequality by putting people at the heart of the transition.”
BCTI members are calling on all business leaders to use the core report's guiding principles to prioritize the most impactful opportunities for their organizations to make a difference in people's lives.
“We are at a moment of great change, when businesses, governments and other organizations work together to build a more just and equitable society for everyone.” Jonas prizeChairman and CEO of ManpowerGroup, Co-Chair of BCTI. “The practical steps outlined in this BCTI report provide a roadmap for creating a better future for the many, not the few.”
Throughout 2023, BCTI will continue its efforts to support the implementation of this Action Agenda, promoting and coordinating efforts to advance the tools, standards, and collaborations that can support the global business community in this effort.
