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    MP5 - Option For The Bottom of The Pyramid

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    Poverty is a global issue that affects billions of people worldwide. It deprives individuals of basic human needs like food, shelter, water and healthcare. The document discusses the prevalence and impacts of poverty in different parts of the world. It also explains the concept of "preferential option for the poor", which is a moral principle that businesses should direct their efforts towards empowering those at the bottom of the economic pyramid through initiatives like microfinancing and investing in education. Alleviating poverty requires a collaborative approach between governments, businesses and local communities.

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    MP5 - Option For The Bottom of The Pyramid

    Uploaded by

    22ccg2f7d2
    53 views25 pages
    Poverty is a global issue that affects billions of people worldwide. It deprives individuals of basic human needs like food, shelter, water and healthcare. The document discusses the prevalence and impacts of poverty in different parts of the world. It also explains the concept of "preferential option for the poor", which is a moral principle that businesses should direct their efforts towards empowering those at the bottom of the economic pyramid through initiatives like microfinancing and investing in education. Alleviating poverty requires a collaborative approach between governments, businesses and local communities.

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    MP5_Option for the Bottom of the Pyramid

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    Poverty is a global issue that affects billions of people worldwide. It deprives individuals of basic human needs like food, shelter, water and healthcare. The document discusses the prevalence and impacts of poverty in different parts of the world. It also explains the concept of "preferential option for the poor", which is a moral principle that businesses should direct their efforts towards empowering those at the bottom of the economic pyramid through initiatives like microfinancing and investing in education. Alleviating poverty requires a collaborative approach between governments, businesses and local communities.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    53 views25 pages

    MP5 - Option For The Bottom of The Pyramid

    Uploaded by

    22ccg2f7d2
    Poverty is a global issue that affects billions of people worldwide. It deprives individuals of basic human needs like food, shelter, water and healthcare. The document discusses the prevalence and impacts of poverty in different parts of the world. It also explains the concept of "preferential option for the poor", which is a moral principle that businesses should direct their efforts towards empowering those at the bottom of the economic pyramid through initiatives like microfinancing and investing in education. Alleviating poverty requires a collaborative approach between governments, businesses and local communities.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 25

    Moral Principle 5: Option for the

    Bottom of the Pyramid


    Is Poverty a global issue?

     Poverty is a human condition of having insufficient sources or income.

     In most extreme form, poverty is a lack of basic human needs such as adequate and
    nutritious food, clothing, housing, clean water and health services

     The world’s poorest people struggle daily for food, shelter, and other necessities

     They often suffer from malnutrition, epidemic disease outbreaks, famine, and war

    Source: Maximiano, Jose (2014) Business Ethics and Corporate Social Responsibility
    Is Poverty a global issue? (cont’d)
     In wealthier countries-such as US, Canada, Japan and those in Western Europe-the
    effects of poverty may include poor nutrition, mental illness, drug dependence, crime,
    and high rates of disease.

     They are the countless homeless street children and beggars, the jobless,
    underemployed, the orphans, the elderly who are alone and abandoned, whom the late
    US President Roosevelt identified as “the forgotten man at thebottom of the economic
    pyramid”.

    Source: Maximiano, Jose (2014) Business Ethics and Corporate Social Responsibility
    The Pandemic Pushed 4 Million More Filipinos
    Into Poverty in First Half of 2021
     The first six months of last year saw 3.9 million more Filipinos pushed into
    poverty, with economic officials laying the blame squarely on pandemic-
    related lockdown measures, job losses, cuts in household consumption, and
    forced business closures.
     Poverty in the country grew to 23.7%, against 21.1% in the same six-month
    period in 2018, Channel News Asia reports.
     The number of Filipinos in poverty has now risen to over 26 million, just under
    25% of the population.

    https://www.globalcitizen.org/en/content/philippines-poverty-covid-19/
    Living in extreme poverty
    How poor are these in the bottom of
    the pyramid?
     Nearly 3B human beings live on less than $2/day
     One in two children in the world live in poverty
     More than 600M of these children are presently
    roaming the streets without adequate shelter
     Lack or no access to basic health services has
    brought about the epidemic of HIV/AIDS,
    malaria, and tuberculosis
     Poverty is a major stumbling block to total human
    development
     400 million people with no access to
    safe water.
     270 million people with no access to
    health services.

     10 million number of children


    who die even before reaching
    the age of 5.
    Why is it important to know this principle?

     Option for the bottom of the pyramid does not mean a dole-out approach to poverty
    reduction. It is the promotion of pro-poor economic growth with the private
    business and other sector as active partners.
     “Fishing skills training than fish giving.”
     South Korea, Taiwan and Malaysia have been able in just two decades to bring
    down their poverty levels close to those Western Countries. Thailand and
    Indonesia which had poverty rates above 40% in the early 80's have reduced those
    rates below 10% and 20% respectively while Philippine poverty incidence is 30%
    (Pernia 2006)
     The economic development of those Asian countries mentioned above is
    characterized as “pro-poor growth”

    Source: Maximiano, Jose (2014) Business Ethics and Corporate Social Responsibility
    What is the UN Sustainable
    Development Goals?

    The Sustainable Development Goals (SDGs), also known as the


    Global Goals, were adopted by the United Nations in 2015 as a
    universal call to action to end poverty, protect the planet, and
    ensure that by 2030 all people enjoy peace and prosperity.
    Why should business play its role in poverty
    alleviation?

    Reasons why business should get involve in alleviating poverty.

     Reputational Capital - the company's environmental and community


    management that provides a good indicator of the overall quality of its
    business

    Source: Maximiano, Jose (2014) Business Ethics and Corporate Social Responsibility
    Why should business play its role in poverty
    alleviation?

    Reasons why business should get involve in alleviating poverty.

     Sustainability Premium - the company's share in corporate citizenship,


    particularly in the role of business in reducing poverty, creates a
    sustainability premium on earnings due to higher stakeholder
    satisfaction, reduced cost of transaction, and guaranteed quality human
    capital coupled with reduced social risks

    Source: Maximiano, Jose (2014) Business Ethics and Corporate Social Responsibility
    Why should business play its role in poverty
    alleviation?

    Reasons why business should get involve in alleviating poverty.


     Social Investment - external stakeholder engagement, such as
    community involvement is increasingly becoming critical to the corporate
    world

    Source: Maximiano, Jose (2014) Business Ethics and Corporate Social Responsibility
    Can we help in the empowerment of the poor?

    What is the preferential option for the poor?

     More than dole-outs. goes beyond doling out company donations as an


    act of philantrophy
     Trancends public relations. it is more than the corporate-image
    building that ends up neatly in an increase in sales
     Genuine commitment to grassroots development. to prevent the
    widening gap between the haves and have-nots, to arrest the growing gap
    between the elite and the masses.

    Source: Maximiano, Jose (2014) Business Ethics and Corporate Social Responsibility
    Can we help in the empowerment of the poor?
    What is the preferential option for the poor? (cont'd)

     A Personal Philosophy. A philosophy rooted in business ethics. A


    moral leader, seeing abject poverty cannot but opt for those who have less
    in life . This principle is also by-product of the evolution of CSR, from
    company philosophy to direct social engagement.
     Corporate Decisions. preferential option for the poor is a personal
    choice of an individual. However, it can also be a corporate decision of
    any business community concerning the issue of ownership, use and
    sharing of goods and resources. Not only the boss but the whole company
    may opt for the poor
    Source: Maximiano, Jose (2014) Business Ethics and Corporate Social Responsibility
    Can w e help in the empowerment of the poor?

    What is the preferential option for the poor? (cont'd)

     Also an opportunity. The “option” or “love of preference” is a choice, a


    decision, a special form of primacy and an opportunity as well in the
    exercise of other-centeredness. The company decides in favor of the poor,
    and grabs the opportunity to alleviate poverty
     But not exclusive. the preferential optionis neither exclusive or an
    excluding interest, in such a way there's no more room for those who are
    not poor

    Source: Maximiano, Jose (2014) Business Ethics and Corporate Social Responsibility
    Can we help in the empowerment of the poor?

    What is the preferential option for the poor? (cont'd)

     Witness to human dignity. this principle can finally demonstrate that


    the truth that human dignity cannot be destroyed ni whatever situation
    of poverty, scorn, rejection, or powerlessness to which the poor has been
    reduced

    Source: Maximiano, Jose (2014) Business Ethics and Corporate Social Responsibility
    When is the option for the bottom of the pyramid
    an opportunity for business?
    The business option for the bottom of the pyramid as proposed by C.K Prahalad(2005) is a
    revolutionary strategy model for alleviating world poverty and is win-win relationship
    between business and poor. The bottom of the pyramid is a global opportunity for
    business

    The bottom of the pyramid represents a humongous opportunity for “high-tech”


    businesses such as cellular phones, financial services, and low-end computers. Added to
    these are businesses serving basic needs such as food, housing, and personal care.
    Business should stop thinking of the poor as burdens and starts recognizing them as
    value (conscious consumers)

    Source: Maximiano, Jose (2014) Business Ethics and Corporate Social Responsibility
    What are the concrete ways to strategize in favor
    of the bottom of the pyramid?

    1. Microfinancing - empowering poor people with entrepreneural opportunities and


    challenges can usher the growth and prosperity that poor countries desperately
    endeavor to attain

    1. Social Investment in Education. Many studies have shown that the best CSR
    practices on poverty alleviation and grassroots development has to start with
    education. Investments in health and education are crucial in any attempt to
    reduce human misery.

    Source: Maximiano, Jose (2014) Business Ethics and Corporate Social Responsibility
    Philippines: What does it take to end poverty?

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