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Applying inclusive business approaches to nature-based tourism in Namibia and South Africa
Abstract
Inclusive business is described as private sector-led business initiatives that aim to profitably engage low-income populations across productive value chains. This paper aims to quantify the impact of businesses implementing inclusive business strategies to determine the value to local communities as well as the tourism business. The research reviews the direct impact of the business on communities, determines the value proposition to the businesses as well as comparing the partnership structures between the operators and communities. Practical examples from Namibia and South Africa are provided of how different strategies may, or may not, generate a tangible impact for both parties. The research contributes to the limited literature about inclusive business models in the tourism sector.
... Involving the local community According to Rylance and Spenceley (2016), companies establish solid reputations with the general public, government, and development partners and tourists by authentically involving and collaborating with locals in tourism businesses. Locals tend to bring positivity and feel-good factors to visitors, who are increasingly drawn to equitable and sustainable tourism initiatives that empower local communities, whether as partners, employees, or owners (Tewes-Gradl et al., 2014;Bello et al., 2018). ...
... Most communities have historically welcomed visitors with open arms, but this begins to change when people are denied the benefits of tourism and develop a negative attitude towards outsiders (Mubanga and Umar, 2016;Sood et al., 2017). Businesses gain support for tourism in their areas by having members of the local community as owners and partners of tourism ventures, which, among other things, reduces crime rates, enables tourists to appreciate local culture, promotes environmental conservation, and fosters community pride (Tewes-Gradl et al., 2014;Rylance and Spenceley, 2016). ...
... Locals who own, partner with, and work for tourism businesses can give visitors the most genuine experiences possible by incorporating their personalities and cultures into their services (Tewes-Gradl et al., 2014;Rylance and Spenceley, 2016). The quality of the tourism product may suffer if locals are not involved in the industry. ...
Tourism is prevalent in rural areas of South Africa, where natural settings provide attractive opportunities. Despite tourism’s potential to improve societies, many surrounding rural populations struggle with poverty. They have low involvement in tourism activity and need more access to empowerment programmes, and there need to be community-based structures that encourage equitable tourism engagement. This conceptual paper presents a framework for action designed for rural communities’ participation in a business or earning capacity in the local area’s tourism potential. The framework draws on published secondary data sources related to community-based tourism, community involvement, and potential rural community ownership of the tourism value chain. The literature is used to inform the development of our tourism value chain ownership framework, which can be applied in rural communities for poverty reduction and community empowerment.
... A case study on whether wildlife management programmes enhance community welfare. 11 Rylance and Spenceley (2016). ...
... In crisis times, such as the current coronavirus pandemic, these businesses are highly vulnerable and suffers the shock most. As noted by some researchers like Rylance and Spenceley (2016), the locals with a bit of income or skills can be subcontracted by conservation organisations to provide services to tourists. To hedge against missing such opportunities, communities often collaborate to provide services to customers. ...
... Furthermore, most rural people tend to lack good education background, and this makes it difficult for them to get employed in formal workplaces. Instead of excluding locals, CBTs in the region have been training their employees and local people in conservation-related areas (Lapeyre, 2010;Rylance & Spenceley, 2016). Most recent research shows that poorly educated people often experience a low level of skills, thus, upskilling is vital as education is an indicator of development (Al-Jundi et al., 2020). ...
The goal of this study is to assess the progress made so far in the eradication of poverty through the growth of tourism in the rural communities of three Southern African tourist destinations. In doing so, the study seeks to
answer the following research questions: (1) to what extent have the countries in Southern Africa improved the livelihoods of the poor through community-based tourism? (2) Are the poor the beneficiaries of the sustainable, inclusive community-based tourism drive in Southern Africa? (3) Is community-based tourism a panacea for the eradication of poverty in rural areas of Southern African? The study uses meta-synthesis to evaluate the extent to which pro-poor tourism approaches are achieving the intended goals using Namibia, South Africa, and Zimbabwe as case studies. Findings shows that empirical studies investigating poverty alleviation and CBT are growing, especially in Botswana and Namibia, and the level of poverty seems to be declined in areas where community-based tourism thrives.
... Table 1 shows, on one hand that there are fewer benefits to the community when its members are not meaningfully engaged (non-inclusive businesses) in tourism organisations that operate within their vicinity, while, on the other hand, there are more benefits to the communities when they are meaningfully engaged (inclusive businesses) in the tourism businesses. Rylance and Spenceley (2016) stipulate that by having locals in the various business ownership approaches of the tourism value chain, not only does it create a lasting business competitive edge, but it also creates highly sought-after authentic tourism experiences. Tewes-Gradl et al. (2014) two major categories of benefits the inclusion of local communities in the ownership structures of tourism businesses bring to both the community and business. ...
... By genuinely incorporating and partnering with locals in tourism businesses, companies build strong reputations not just with the general public, authorities, and development partners, but with the tourists as well (Rylance and Spenceley, 2016). When locals are happily and genuinely involved in the tourism businesses, either as partners, employees or as owners, they tend to bring positivity and feel-good factors to the guests who are increasingly getting attracted to equitable and sustainable tourism initiatives that empower local communities (Tewes-Gradl et al., 2014, Bello et al., 2018. ...
... When tourism organisations make it policy to contract locally based service providers, they save on costs associated with transportation of goods from other regions and improve on efficiency (Tewes-Gradl et al., 2014). Also, employing people from the communities in which the businesses operate results in cutting costs associated with relocating and housing outsiders (Rylance and Spenceley, 2016). ...
Much tourism in South Africa, which is wildlife-based, occurs in rural communities where natural environments offer tourism possibilities. These rural communities, however, continue to grapple with poverty, subdued participation in tourism activities, and lack of exposure to empowerment initiatives despite tourism’s potential to uplift societies. This mainly stems from the absence of community-based structures that foster equitable participation in tourism. This paper aims to create a structure for action designed to include participation from the rural communities in the tourism potential of their area in a business/earning capacity, to enable them to operate as partners while bringing unique contributions that enrich the tourist experience. This article takes the form of a conceptual paper. It makes use of secondary data sources from existing literature on the concepts of community-based tourism, community participation, and the possible ownership of the tourism value chain by rural communities. The paper underlines the prevalence of poverty in the communities, their little involvement in tourism activities, and their lack of community-based tourism structures. The paper builds on the literature to generate a framework for tourism value chain ownership that can be used in rural communities for poverty alleviation and community empowerment.
... Once the community owned 100% of the camp they sold 60% back to WS and a formal joint-venture was established. The community receives a percentage of turnover from the camp, which is distributed as cash to the Conservancy board (Rylance & Spenceley, 2016;Snyman, 2012). The agreement also specifies additional benefits for local people, including preferential employment, skills training and development, and opportunity to provide goods and services to the camp (Snyman, 2012). ...
... In 2015 the community received over USD 8000 from this partnership as well as over 90% of the staff at the camp being from the local community (Wilderness Holdings, 2016). Also in South Africa, and Beyond, a private sector tourism operator negotiated a 36-year lease agreement with the Mnqobokazi and Makhasa communities for the use of Phinda Reserve, which was signed in 2006 and Beyond pay annual lease fees to their host communities to operate on the land, and paid on average USD 370,000 1 per annum between 2007 and 2013 (Rylance & Spenceley, 2016). Groom and Harris (2008) reviewed data from two neighbouring Maasai group ranches in the wildlife corridors Amboseli and Tsavo National Parks (Kenya). ...
... Studies have demonstrated the efficacy of CBT as a viable approach for reducing poverty in rural areas endowed with heritage attractions, fostering tourism development in Southern Africa. This assertion is supported by research conducted in Botswana (Black & Cobbinah, 2018), South Africa (Giampiccoli & Saayman, 2018;Stoffelen et al., 2020), Namibia (Rylance & Spenceley, 2016), and Zimbabwe (Shereni & Saarinen, 2021). In rural areas, tourism entrepreneurship can help diversify economic opportunities for families, supplementing agricultural income (Lenao, 2017). ...
This research investigates the perceptions of rural communities in the Sekhukhune District Municipality, Limpopo, South Africa, towards sustainable heritage tourism development. It aims to comprehend local attitudes by analysing community views, recognising benefits and challenges, and assessing the potential for sustainable practices. The study, utilising a quantitative approach through a structured survey, reveals diverse opinions among rural residents. While acknowledging tourism’s positive economic and cultural prospects, concerns arise about environmental impact and traditional lifestyle disruptions. The paper’s significance lies in its distinct focus on rural communities, expanding beyond urban-centric research. It enriches the sustainable tourism discourse by presenting local perspectives and suggesting strategies aligning community aspirations with tourism development goals. Overall, the research highlights the necessity of involving and empowering rural communities, advocating for context-specific approaches that harmonise tourism growth with the preservation of rural heritage. This study provides crucial insights for policymakers and stakeholders shaping effective and inclusive strategies for sustainable heritage tourism development in rural areas.
... The GSTC can also recognize or approve sustainable tourism certification standards and processes that meet or surpass the relevant GSTC Criteria (Global Sustainable Tourism Council, 2016). Actually, the GSTC certifies the sustainability of hotels according to its standards, and by offering a list of sustainable accommodations (Rylance and Spenceley, 2016). The GSTC establishes four basic pillars necessary to address sustainability in the sector: (i) Sustainability management; (ii) Socioeconomic Impacts; (iii) Cultural impacts; (iv) Environmental impacts (including resource consumption, pollution reduction, and biodiversity and landscape conservation). ...
There is a worldwide consensus that sustainability is the main basis for the recovery of tourism. In this context, tools and standards play an important role to facilitate the integration of the principles of sustainable tourism in practice. Within the tourism sector, the hotel industry is one of the key industries with a high growth rate. The main objective is to carry out an analysis based on the concept of sustainability in the sustainability certifications of the hotel industry, delving into those certifications adopted by the large hotel companies. For this purpose, a comparative analysis of the certification criteria is carried out using as a basis the World Sustainable Tourism Council (GSTC). This article evidences the primacy of the environmental dimension and establishes recommendations that guide holistic and integrated sustainability strategies from a comprehensive perspective that allow the recovery of tourism in general and the sustainable hotel industry in particular.
... The practical orientation of the relationship between tourism, sustainable development, and inclusive development is reflected in the work of Rylance and Spenceley (2016), which aims to quantify the impact of businesses implementing the inclusive business strategies to determine the value to local communities, as well as the tourism business. Separate aspects of the mentioned problem are represented in the complex study of Okhrimenko (2019), but its importance from the scientific and practical viewpoint provides for the need for further studies, data renewal and update. ...
The sustainable development of tourism, which provides for natural and cultural and historical resource-saving and increase, observing the environmental standards becomes dominant and is a requirement for tourism successful development. The main direction of sustainable tourism development within a certain country – national tourist system (NTS) is inclusiveness. According to the results of human and inclusive development indicators, the volumes of employment in tourism, there were defined the problems of Ukraine concerning the insufficient level of human development, the presence of displaced population from the military actions zone and the population that suffers from grievances and has features of poverty. It is emphasized that NTS can implement the inclusive business models through such key foundations: Particular attention is paid to substantiating the mutual satisfaction of the economic interests of stakeholders when forming the NTS inclusive business models. There was elaborated the vision of possible key strategies of business entities for expanding the economic opportunities in the context of inclusive development. According to the study results, there was presented the architectonics of the interaction of NTS subjects when implementing the inclusive business models, where the groups of stakeholders, directions, forms of activity, and possible effects of their implementation were defined. Attention is paid to the need for further systemic studies of the considered problem in response to challenges and threats to tourism as a global social, environmental, and economic phenomenon.
... It is interesting to point out that selling or offering local tourism products and services such as handicraft, homestays, festival, traditional games, local food, local dance performance, jungle trekking and mountain climbing contribute to the household income and security (Harris, 2009). The results confirm past studies that the tourism entrepreneurial activity has contributed economically to the local communities in South Australia and South Africa respectively (Hallak, Brown & Lindsay, 2012;Rylance & Spenceley, 2016). Table 4 further shows that tourism employment generation is positively significant in alleviating poverty; the findings is in line with Truong and Hall (2015) that tourism development creates direct effect of tourism employment and increases the well-being of local communities. ...
The study aims to investigate economic impact of tourism development such as local economy development, tourism entrepreneurial activity and tourism employment generation in alleviating poverty. Five hundred and twenty local community from Kuching and Miri, East Sarawak, Malaysia have participated in the research. The result indicates that the tourism development contributes to the local economy development, creates tourism entrepreneurial activity and generates tourism employment among the local communities' in increasing the household income.
Local community members play a critical role in the success of conservation projects, which in turn have the potential to influence the perceptions of local people. Relationships matter when it comes to sustainable long-term conservation and community well-being. The study aims to establish the relationship between local communities and wildlife conservation organizations in the context of Phinda Private Game Reserve and the Mnqobokazi community, located in South Africa. Data was collected using the qualitative methods of interviews and focus group discussions. The findings show that a symbiotic relationship between conservation organizations and local community members is critical in conserving the environment. The research indicates that both participation and benefits result in improved perceptions towards the protected area and a strong positive relationship. The accrual of benefits also appears to result in pro-environmental consciousness amongst community members. Several existing studies examine participation or benefit-sharing in community-based tourism in developing nations. However, less is known about the relationships between local communities and conservation organizations and the effect of participation and beneficiation on these relationships. This research narrows this gap in the body of knowledge by qualitatively examining a single case study. The findings add value to global collaborative efforts aimed at achieving positive relationships between communities and conservation management.
This chapter reviewed literature to assess tourism joint venture partnerships (JVPs), their sustainability and conservation in Southern Africa. Results show that CBOs engaged in the Community Based Natural Resource Management (CBNRM) programme have initiated JVPs to aid community participation in natural resource management. The literature indicates that private companies are better placed as partners in tourism businesses because they bring resources such as capital development, tourism business management skills, knowledge and market access. The partnerships are expected to improve local communities’ tourism business skills. However, indications are that the JVPs have failed to contribute fully to capacity building and skills transfer. Consequently, JVPs are accused of creating power imbalances between communities and private sector companies. As a result, communities remain with limited skills to run tourism businesses as they are not fully involved in decision making and management processes. The minimal contribution of JVPs to the optimal participation of local communities in tourism development has implications on tourism best practice and policy devices that guide sustainable tourism development in Southern Africa.
The present study contributes to the body of knowledge in protected areas conservation by exploring the role of nature based tourism in strengthening the relationship between protected areas and rural community. The paper draws largely from Sustainable Livelihood Framework. The study was carried out by analyzing peer-reviewed literature from published sources such as books, journal articles, conference proceedings and published documents from major international and national organisations. The analysis shows that majority of the scholars agree that benefits arising from protected areas tend to accrue largely to the international community, national governments and the private sector in the form of revenues from nature based tourism, while a large amount of conservation costs are borne by local communities living adjacent to protected areas. Without receiving significant benefits from tourism, local communities will continue to view wildlife as a threat to their livelihoods and develop resentments against conservation of protected areas
Resumo O presente estudo tem por objetivo contribuir com reflexões teóricas e empíricas sobre as mulheres empreendedoras sob o prisma do feminismo pós-estruturalista e os negócios inclusivos com base na literatura acadêmica sobre pobreza e exclusão social. Para tanto, foi realizada uma pesquisa qualitativa exploratória, com início na triangulação entre o referencial teórico, a análise de conteúdo de entrevistas em profundidade e dados secundários obtidos de documentos. Os resultados dessa investigação corroboram estudos anteriores sobre as características dos empreendedores sociais e trazem indícios complementares à literatura acadêmica. Foram encontradas indicações de que as empreendedoras em negócios inclusivos atuam apoiadas na construção de parcerias que prezam pela escuta e o compartilhamento de decisões. Essas mulheres têm formação acadêmica superior e valorizam o aprendizado, priorizam trabalhar com outras mulheres e atuam em redes de mulheres tanto formais como informais. Além disso, dependendo do tipo de negócio, do público-alvo atendido e da forma como as empreendedoras entendem suas organizaçõ es, foi possível identificar quatro tipos de negócio inclusivo: i) inclusão de consumidores da base da pirâmide; ii) inclusão de pessoas por meio da mão de obra, prestação de serviços e fornecedores na cadeia de valor; iii) inclusão por meio da defesa e garantia de direitos; e iv) aqueles que visam à autoinclusão. Os dois últimos são incipientes na literatura acadêmica e, ao mesmo tempo, ilustram desafios e problemas de construção social de gênero e questões de ordem estrutural na sociedade brasileira.
This study contributes with theoretical and empirical reflections on female entrepreneurs from the perspective of post-structuralist feminism and on inclusive business based on the academic literature on poverty and social exclusion. The study consisted of exploratory qualitative research based on the triangulation of the theoretical framework, content analysis of in-depth interviews, and secondary data obtained from documents. The results of this research corroborate previous studies regarding the characteristics of social entrepreneurs and offer complementary insights to the academic literature. The study shows that female entrepreneurs in inclusive businesses act based on building partnerships, valuing listening, and sharing decisions. They have a higher level of education, value learning opportunities, prioritize working with other women, and work in both formal and informal women’s networks. In addition, based on the type of business, the target public, and the way entrepreneurs understand their organizations, it was possible to identify four types of inclusive businesses: (i) inclusion of consumers from the base of the pyramid; (ii) inclusion of people through labor, service provision and suppliers in the value chain; (iii) inclusion through advocacy and guarantee of rights, and (iv) those aimed at self-inclusion. The last two areincipient in the academic literature and, at the same time, illustrate challenges and problems of social gender construction and structural issues in Brazilian society.
This paper describes the concept of an inclusive business ecosystem, and presents three structures companies can employ to strengthen these ecosystems. It is based on an analysis of 15 case examples that have been identified in a review of 170 documented efforts by companies to start and scale inclusive business models.
Inclusive business models engage people living at the base of the economic pyramid (BOP) in corporate value chains as consumers, producers, and entrepreneurs. Such models offer great promise: to enable business growth in markets that cover two thirds of the world’s population, while creating economic opportunity and better standards of living for the poor in the process. Yet while companies – and also donors, development banks and other players – have put much effort into creating such models, relatively few have gained significant scale so far. What is keeping inclusive business models from reaching their full potential? Among the most obvious factors is that operating environments for inclusive business are challenging, with significant gaps in the institutional, informational and infrastructural conditions required to make markets work.
Broadening the focus from developing inclusive business models to strengthening inclusive business ecosystems, as this paper suggests, helps companies deal more efficiently and effectively with these challenges – by deliberately and strategically engaging the networks of interconnected, interdependent players whose actions determine whether or not their inclusive business models will succeed. The players typically include individuals, companies, governments, intermediaries, NGOs, public and private donors, and others.
Companies use a variety of strategies to strengthen the ecosystems around their inclusive business models. These include BOP awareness-raising and capacity- building, research, information-sharing, public policy dialogue, and creating new organizations. We find these strategies across the cases analyzed for this paper.
Companies execute these strategies using three structures to harness the necessary resources and capabilities and overcome the incentive problems that coordination and cooperation entail:
• Private initiative by an individual company is the default structure for firms seeking to strengthen their inclusive business ecosystems, because it enables them to move quickly with fewer transaction costs. It presumes sufficient resources and the necessary capabilities, and typically works best when incentive problems are limited to the company and its direct customers and suppliers – and can be addressed through payment and certification systems embedded in the business model.
• Project-based alliances with one or more other organizations are employed when companies rely critically on the resources and/or capabilities of other players, and cannot simply purchase them on the market. These might include the expertise, on-the-ground networks, and catalytic financing of NGOs, donors, and development banks. Since the reputation and success of each partner is at stake if the other fails to comply with its commitment, formal alliance models, such as partnerships or joint ventures, are often required.
• Platforms are formal networks of potentially large numbers of players, established for a common purpose. Platforms can overcome free rider problems in the creation of public goods such as basic research or shared infrastructure. They can also organize collective action to overcome weakest links in tight-knit regional systems, such as agricultural value chains.
These structures are complementary, and companies often use them in combination, either sequentially or simultaneously. The cases studied reflect a range of possible combinations.
This paper provides a simple framework for companies to think about the strategic management of inclusive business ecosystems. Yet, much more remains to be done. This paper marks the next stage of an ongoing research workstream by the CSR Initiative at Harvard Kennedy School on the role of the corporate sector in international development. It will be followed by in-depth case studies to provide more concrete and practical insight on how to employ the strategies and structures described here.
Success factors for IB in tourism include: Strong and secure land tenure; Clear vision and adaptable models; Determination, dedication and patience; Listening and using feedback; Willing and honest partnerships; The ‘right’ investors, who understand IB; Empathy for the local environment; Good infrastructure, particularly relating to road and land access; Social stability of the local area; Understanding and awareness of stakeholders of IB issues, benefits and processes – particularly for government, private sector and communities; Additional sustainable tourism aspects, that include local employment and CSR programs; and Supportive and responsive government departments, facilitating rather than blocking IB programs. To promote IB awareness of the concept, its commercial advantages, and the processes involved would need to be undertaken. Potential national-level campaigns combined with capacity building and training programs for private sector (and their associations), government representatives and networks of small businesses.
Spier Leisure, part of the Spier Group, is one of the oldest vineyard and farm estates in South Africa, with agricultural activities on the estate dating back to 1692. It operates the mid-priced 155-bed Spier Hotel and conference centre in the winelands of South Africa’s West- ern Cape. The operation includes accommodations, restaurants, con- ference facilities, a picnic area and a delicatessen. Spier continuously assesses its supply chains with the aim of sourcing as many of its products locally as possible.
This case study demonstrates how a medium-sized company can re- structure its procurement activities to be more inclusive and locally sourced, in the process helping to ensure long-term financial sustain- ability.
As a luxury tour operator active in 19 countries worldwide, andBeyond provides extraordinary experiential tours and operates 33 lodges in six countries across Africa and South Asia. One such destination, the Phin- da Private Game Reserve, encompasses six lodges on rehabilitated land in rural South Africa.
Phinda represents a transitional partnership model in which the private-sector partner continues to operate, manage and market the reserve and its lodges, although a portion of the land and asset own- ership has been transferred to the community. This case study dem- onstrates how this kind of partnership, together with philanthropic activities carried out by Phinda’s Africa Foundation, can strengthen an inclusive business approach.
Wilderness Safaris has a joint-venture partnership with the Torra Conservancy, a community in Namibia, to operate Damaraland Camp, a luxury ecotourism enterprise. Wilderness Safaris pays lease fees to the Torra Conservancy, provides jobs for community members, uses local skills and materials in construction, and purchases local prod- ucts and services.
As implemented, the model demonstrates that a joint-venture part- nership can be profitable for both the private-sector operator and the community. Moreover, it illustrates that encouraging communities in remote locations to diversify their income streams can be important in order to reduce dependence on a single tourism operator for em- ployment and business opportunities.
Increasing populations, together with the impact of climate change, are resulting in greater competition for land and a necessity for sustainable land use. Tourism can provide a flow of benefits from conservation to rural communities to reduce poverty and promote biodiversity conservation. Three key mechanisms of sustainable tourism to reduce poverty are discussed: employment, value chains and equity. These are based on primary data and a thorough literature review. Case study examples from Malawi, Zambia and Zimbabwe are included to demonstrate the impact of tourism employment on household welfare. Common problem areas associated with community engagement are identified and ways to upscale benefits are put forward. Tourism is not a panacea, but it can certainly play an important role in poverty alleviation.
As 2015 approaches, debates about the contribution to the United Nations Millennium Development Goals (UN MDGs) are growing in momentum. The aim of this review is to interrogate the potential contributions of tourism to the UN MDGs, specifically of poverty alleviation, and of how the relationship between tourism development and the UN MDGs has been framed in existing scholarship. It is argued that whilst the global tourism industry potentially can contribute to economic development goals in destination regions, its impacts are ambivalent so that there is a growing concern surrounding the local benefits of global tourism including support for realisation of the UN MDGs. To avert the risks in the Global South of tourism-led development, the industry needs to be clearly positioned as a potential tool for, not at the end of local, regional, national and global development agendas. Several promising research avenues for interrogating tourism impacts for UN MDGs are identified. Issues relating to greening of tourism, inclusive business models and backward linkages offer a powerful policy-relevant agenda for tourism scholarship to move forward our understanding of the UN MDG objectives, which were originally set down in 2000, beyond 2015.
‘Inclusive Business’ has enormous potential to contribute positively to development outcomes. Working through core business models, the ‘Inclusive Business’ approach requires minimal outside support and can often reach a scale unattainable by most direct development interventions. Take for example, Vodafone's M-PESA service, which has reached more than 18.5 million individuals since 2007 and continues to be a profitable business model (BCtA 2011).
But when is business ‘inclusive’ and when is it simply business? How does Coca-Cola's business model in El Salvador contribute more to women's empowerment than its typical approach to selling fizzy drinks? Accurate information about business impacts – direct and indirect, positive and negative – can help practitioners to better identify (and support) the approaches that can most positively contribute to development.
This paper analyses some of the current approaches and frameworks for evaluating ‘Inclusive Business’ impacts. It finds that while they shed light on the complex network of effects that businesses have and the ways in which some firms are attempting to contribute to development, they are unable to provide information about the actual impacts of business activities. More, higher quality, and less partial ‘Inclusive Business’ evaluations are needed to better enable us to harness the potential for business to contribute positively to development.
Preface This case study was written as a contribution to a project on 'pro-poor tourism strategies.' The pro-poor tourism project is collaborative research involving the Overseas Development Institute (ODI), the International Institute for the Environment and Development (IIED), the Centre for Responsible Tourism at the University of Greenwich (CRT), together with in-country case study collaborators. It is funded by the Economic and Social Research Unit (ESCOR) of the UK Department for International Development (DFID). The project reviewed the experience of pro-poor tourism strategies based on six commissioned case studies. The case studies used a common methodology developed within this project. The case study work was undertaken mainly between September and December 2000. Findings have been synthesised into a research report and a policy briefing, while the 6 case studies are all available as Working Papers. The outputs of the project are: Pro-poor tourism strategies: Making tourism work for the poor. Pro-poor Tourism Report No 1. (60pp) by Caroline Ashley, Dilys Roe and Harold Goodwin, April 2001.
Following the challenges we face today, the inclusive business models are future business models through which the Millennium Development Goals can be fostered and strengthen. These are the models which, through their strategic orientation on inclusivity, include low income communities in their value chain. This can be done through combining variety of strategies which all have two common points – recognition of stakeholders and adjustment of the product to the target market. The paper presents the analysis of inclusive markets. Hence, the research results show the dispersion of inclusive businesses worldwide, type of the organization, sector coverage, and contribution to MDGs as well as the particular way of inclusion of low income communities in their value chain. The aim is to present how inclusive business benefits not only the low income societies, but the companies that operate in this way as well.
Community-based natural resource management is frequently proposed as a solution to poverty in rural Africa. The extent of Namibia's CBNRM programme's success in terms of joint ventures between the private sector and communities has not been comprehensively analysed. Tangible benefits from joint venture partnerships play an important role in development and poverty reduction, with intangible benefits improving social welfare and local economic development. Questionnaire surveys of staff employed at Damaraland Camp in Torra Conservancy and of households in Torra Conservancy provided insight into the potential benefits of joint ventures. The direct benefit of income from jobs in ecotourism and associated household income diversification opportunities highlight the importance of permanent employment in these remote, rural areas. An analysis of spending patterns, attitudes to tourism, non-governmental organisations and the conservancy illustrated the level of success achieved by joint venture partnerships in terms of poverty reduction, local socio-economic development and changes in attitudes.
There is growing interest in C.K. Prahalad's concept of attacking world poverty by encouraging multinational firms to do business with the "bottom of the pyramid," the billions of people in the world who must survive on $2 a day or less. This paper enumerates and describes the ethical problems associated with this concept and reviews two classic case studies which shed light on our analysis. Prahalad specifically disassociates his concept from corporate social responsibility. However, this paper argues that properly understood, the core elements of corporate social responsibility must be incorporated into bottom-of-the-pyramid strategies if they are to have any chance of success
This paper explores issues in the development of linkages between tourism and agriculture in developing world situations, a key challenge for pro-poor tourism. It contributes to the limited literature on food sourcing by tourism accommodation establishments by analysing tourism–agriculture linkages in the food supply chains of 80 luxury African safari lodges (ASLs) in rural South Africa. The results disclose important constraints on the establishment and strengthening of local linkages relating to lack of local production quality, consistency and volume required by ASLs. The role of transport, wholesale intermediaries and the rapid turnover of ASL procurement managers is also shown. Price was not a major factor, and contrary to some claims, most ASLs are not foreign owned or staffed by foreign chefs unused to local produce. Positive trends include rising South African food quality and variety, increasing niche market production and increasing tourist interest in fair trade and local foods. For policy intervention, the greatest significance is the failure of many local community initiatives, and the need for training, capacity building and support for local producers to enter the food supply chains. The key need, however, is to overcome poor communication and deep mistrust between food supply decision-makers and local producers.
This paper analyses the evolution of the theory and practice of tourism development aimed at poverty reduction in less economically developed countries (LEDCs). It critically reviews two central early themes in this area: community-based tourism projects, and the focus on structural conditions and power relations between global players and local communities. The paper considers the potential strengths of tourism development for LEDCs and summarises the many new subject area developments. A review of papers within the Journal of Sustainable Tourism's special issue on tourism and poverty reduction follows and four main themes are explored: development agency strategies and approaches, governance and biodiversity conservation, the assessment of tourism impacts and value chain analysis and inter-sectoral linkages. Key potential topics for future research and action are outlined, including: (1) the use of new techniques measuring tourism impacts, (2) the roles of development agency governance and operational practices, (3) how inequitable power relations and weak governance can undermine efforts, (4) the importance of private-sector business practices that contribute to poverty reduction, (5) the value of multidisciplinary quantitative and qualitative research tools and (6) the need for linkages between academic research and practitioner interventions.
Governments, activists, and the media have become adept at holding companies to account for the social consequences of their actions. In response, corporate social responsibility has emerged as an inescapable priority for business leaders in every country. Frequently, though, CSR efforts are counterproductive, for two reasons. First, they pit business against society, when in reality the two are interdependent. Second, they pressure companies to think of corporate social responsibility in generic ways instead of in the way most appropriate to their individual strategies. The fact is, the prevailing approaches to CSR are so disconnected from strategy as to obscure many great opportunities for companies to benefit society. What a terrible waste. If corporations were to analyze their opportunities for social responsibility using the same frameworks that guide their core business choices, they would discover, as Whole Foods Market, Toyota, and Volvo have done, that CSR can be much more than a cost, a constraint, or a charitable deed--it can be a potent source of innovation and competitive advantage. In this article, Michael Porter and Mark Kramer propose a fundamentally new way to look at the relationship between business and society that does not treat corporate growth and social welfare as a zero-sum game. They introduce a framework that individual companies can use to identify the social consequences of their actions; to discover opportunities to benefit society and themselves by strengthening the competitive context in which they operate; to determine which CSR initiatives they should address; and to find the most effective ways of doing so. Perceiving social responsibility as an opportunity rather than as damage control or a PR campaign requires dramatically different thinking--a mind-set, the authors warn, that will become increasingly important to competitive success.
Harnessing core business for development impact: Evolving ideas and issues for action
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