Geneva, 3 May 2023: The Business Commission to Address Inequality (BCTI), a cross-sector, multi-stakeholder coalition of leaders and their organisations convened by the World Business Council for Sustainable Development (WBCSD), today launched its flagship report. Tackling inequality: A business action planThe report provides new analysis of the critical role of the private sector in addressing inequality and the compelling reasons why business must act urgently.
In its report, the BCTI recognizes that the high and structural nature of inequality in the world today is a systemic risk that poses an existential threat to societies and economies. The BCTI finds that inequality undermines trust in political and economic systems, fosters civil unrest and polarization, stifles economic growth and weakens our collective capacity to tackle complex global challenges.
“Today, we see the consequences of inequality becoming evident all around the world.” Ilham Kadri, CEO of Solvay and Co-Chair of BCTI“But inequality is not a natural course of events. It is a product of our systems and practices, and we can change that.”
Against this backdrop, BCTI commissioners have spent the past 18 months identifying the most powerful tools available to businesses of all sectors to ensure a fairer distribution of value and opportunity, and avoid the risks that growing inequalities pose. Recognizing that there are certain business models and practices that have led to wider social and economic disparities in recent decades, at this critical time, BCTI outlines concrete actions that individual businesses can take to ensure they can fulfill their potential to close these gaps and deliver better outcomes for people. Broadly speaking, these actions are:
- Implementing the UN Guiding Principles on Business and Human Rights
- Making essential goods and services more available and affordable
- Building a diverse, equitable and inclusive workplace and value chain
- Prepare for the future of work
- Provide sufficient, safe and secure work
- Pay and promote living wages and incomes
- Support and respect worker representatives
- Supporting effective public policy
- Adopt responsible tax practices
- Achieving a just transition to a net-zero and nature-positive economy
“This report is a call to action for business leaders.” Peter Bakker president CEO of WBCSD and Co-Chair of BCTI“It provides a clear and compelling rationale for corporate action to tackle inequality, as well as a comprehensive, credible and impactful action plan that business leaders can use to help build a world of opportunity for all.”
The BCTI report highlights how tackling inequality can help companies mitigate a range of complex operational, reputational, regulatory and financial risks. It also highlights that tackling inequality should be seen as a significant investment in sustained business success and has the potential to unlock significant market opportunities.
“The current economic model is leaving hundreds of millions of people behind,” he said. Alan Jope, CEO Unilever Committee Co-Chairs“Tackling this inequality will boost economic growth. For example, simply paying a minimum living wage could add $4.56 trillion to global GDP each year through increased productivity and spending. Ultimately, when societies thrive, businesses thrive.”
The Commission's flagship report also presents a framework for sustainable business transformation to help companies identify, assess and strategically integrate meaningful measures to address inequality-related risks and opportunities.
“Businesses can play a transformative role in tackling inequality by building innovative business models that support sustainable livelihoods,” Sanjiv Puri, Chairman, ITC and Co-Chairman, BCTI“At the ITC, our experience on the ground highlighted how important it is to develop inclusive value chains, strengthen resilience to climate change and build capacity for the future, especially for farmers and rural communities.”
The BCTI report highlights that business efforts to tackle inequality must be built on two pillars: collaboration and stakeholder engagement. Inequality is a systemic issue and therefore requires a systemic, multi-stakeholder response. It is crucial that the private sector works closely with policymakers, investors, NGOs and others to drive change at scale. Moreover, serious private sector efforts to tackle inequality must be rooted in efforts to actively engage with stakeholder groups that are or may be affected by business activities and incorporate their perspectives into business decision-making.
“Businesses have a huge role to play in reducing inequalities and ensuring that all people have the ability to live the lives they desire.” Sunny Varghese, Co.Founder and Group CEO of Olam group Co-Chairs of BCTI“Olam sees this through our work to improve the incomes and living standards of small farming communities. Collaboration across the industry, with governments and other stakeholders is essential to creating more opportunities for more people.”
BCTI also highlights that inequality-related risks are closely linked to the climate emergency and nature loss. The planetary crisis is having a profound impact on people and, if left unchecked, will further undermine people's health, hinder access to essential products and services, destroy livelihoods and hit the most vulnerable in communities hardest. At the same time, the transition to a net-zero carbon and nature-positive economy will only be successful if it is fair and inclusive, and creates opportunities for workers and communities around the world.
“Addressing inequality is not only a moral imperative, but a business imperative to ensure long-term economic growth,” L said.Forrester de Rothschild, Founder of the Council for Inclusive Capitalism and Co-Chair of the BCTI“Crucial to that growth is a just global transition to net zero, and putting people at the heart of the transition will help address growing inequalities.”
BCTI commissioners call on all business leaders to use the action plan in their flagship report to prioritise the most impactful opportunities for their organisations to make a difference in people's lives.
“We are at a moment of great change for businesses, governments and other organisations to come together to create a more fair and equal society for all,” he said. Jonas PraiseChairman 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 work to drive the implementation of this Action Plan, fostering and coordinating efforts to advance tools, standards and collaboration that can support the global business community in this effort.
