Exploring the Links Between International Business And Poverty Reduction

by Clay, Jason W.

• ISBN13: 9780855985660
• ISBN10: 0855985666
• Format: Paperback
• Copyright: 2005-09-30
• Publisher: Oxfam Pubns

Summary

Foreign direct investment is recognized to be important for economic development, in terms of wealth creation, employment, skills development, and technology transfer. But there is an ongoing debate about the extent to which these contributions translate into real benefits for people living in poverty. In an attempt to evaluate the impacts of international business on people living in poverty, two organizations with very different aims and perspectives'Unilever (a major company operating in some of the poorest countries in the world) and Oxfam (an international development and humanitarian organization)'collaborated on an ambitious research project. The research considered the impacts of Unilever Indonesia across the entire business value chain, from producers and suppliers, through the company's core business operations, to its distributors, retailers, and consumers. This report presents the findings of the research. It is a contribution to the debates among the wider business community, governments, civil-society organizations, and academics who seek to understand how the wealth, employment, and products that a large company creates could bring increased benefits to people living in poverty.

Table of Contents

Foreword: Oxfam

Foreword: Unilever

Executive summary

Introduction: Why Oxfam and Unilever began this project

What is this research about?

Methodology

The context of the research project

Assessing the impact of Unilever Indonesia

The impacts of Unilever Indonesia at the macro-economic level: Setting the context: the 1997-98 financial crisis

Unilever's organisation and recent performance in Indonesia

UI's response to the financial crisis

Key insights

The employment impacts of Unilever Indonesia: Employment in Indonesia

UI's employment impacts

Key insights

The value chain from supply to distribution: Supplier companies

Producers of raw materials

Kecap Bango Sweet Soy Sauce: from farm to fork

The distribution chain

Supporting employment and value generation in UI's value chain

Key insights

Low-income consumers in the marketplace: The fast-moving consumer-goods (FMCG) market in Indonesia

What exactly does UI sell?

Who buys UI products?

Access to UI products

Why do people buy UI products? The concept of brands

The role of promotion and advertising

Meeting or creating needs?

Key insights

UI's wider impact in the community: Corporate community involvement

UI's influence on the business sector and government

Key insights

Conclusions: Content: lessons learned from the research project

Process and partnership: lessons learned from working together

Feedback from external reference group

The way forward

Notes

References and sources

Appendices

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