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Aarti,
you could try an experiential exercise as well - take in a bunch of
single-use shampoo sachets, offer to sell them for 50c to the students,
and discuss how this "can uplift society, boost economic growth, cater
to the needs of the poor, and in the process contribute to sustainable
development."

(the shampoo example is from the original Base of the Pyramid book)
I know that MNCs can be a positive force in development, bringing
investment, technology, employment, and taxation, but these
marketing-based strategies leave me very skeptical....]

I would also be interested in resources, but only if they have some
balance, and express the (widely shared) critique.

David

--
David Levy
Professor, Department of Management
University of Massachusetts, Boston
100 Morrissey Blvd., Boston, MA 02125, USA
http://www.faculty.umb.edu/david_levy/

Hi David,

Thanks for your thought provoking response! I am with you on this, as I
am also seeking balance in my efforts to educate my students on
globalization and MNC investments in emerging markets. Unfortunately,
there is not much choice available when it comes to getting access to a
"balanced video." From what I have found so far, films either glorify,
or totally condemn globalization and MNCs' strategic intentions in
emerging markets. I guess those are the hot stories that sell.
Currently, I use a video which shows only the "dark" side of
globalization.

Your suggestion on shampoo experiential exercise sounds pretty
interesting! I am sure this experiential exercise will be different if
conducted in India, though. Because for most people living in villages
in India, shampoo is not a basic necessity, a taken-for-granted
commodity, but a luxury item! I say it with experience as I have lived
most of my life there. Majority of the people live in villages, and most
of them do not buy shampoos. They simply can't afford it. They use raw
soap instead (if they can buy soap). And some of the poor people do not
even get opportunity to take bath for days. Why? Just because they don't
have access to water (leave aside clean water). Or they take bath in
muddy and polluted river. They don't use toothpaste. They use ash,
instead, to brush their teeth. Why? Because they cannot afford to buy
toothpaste.

Selling a little pouch of shampoo or a tooth paste for Rs. 5 (10 cents)
is certainly a good marketing strategy for those firms. But I want to
highlight the fact that as companies sell those products to the poor, in
addition to the positive health and hygiene implications, there is also
a well being element attached to providing those products. Buying small
pouches of shampoo / toothpaste which are more affordable can be a
source of immense happiness to those deprived people, who can never
possibly buy those products in big fancy bottles or tubes. Strange it
may sound, but yes, shampoos and toothpastes can be one of the sources
of "happiness" for the poor. And using branded shampoos and toothpastes
also has a social status and prestige attached to it.

You may be aware that when there are no monsoons in India, lots of
Indian farmers commit suicide. It is very tragic and people are dealing
with different set of realities there, which could be beyond some
people's imagination here. Successful firms like Hindustan Lever Limited
(HLL) in India (see London, 2006, for HLL case study) are exemplars of
how firms can alleviate miseries, empower local people, and uplift the
socio-economic conditions of the rural communities, while simultaneously
making huge profits. They bring in jobs, enhance people's skills, give
them new hopes and sense of security. So, I am trying to highlight the
positive socio-economic implications of MNC business operations in
emerging markets, because they need to be duly addressed and positively
promoted as well. That's why I seek a BoP video. It is important that
students develop a more rounded understanding of and perspective on
globalization, including its potentials and challenges. Being better
informed, they can then judge and decide on their own which camp they
want to belong to. :-)

Please do let me know if you have come across a balanced video on
globalization and MNC operations in developing countries - I have been
searching for one for long. And thanks a lot for your stimulating
comments.

Regards,
Aarti

:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-
Aarti Sharma
Department of Management & Organization
College of Business Administration
University of South Florida
4202 E. Fowler Ave., BSN-3524
Tampa, FL-33620-5500
Tel: 813-974-4354
Fax: 813- 974-1734
Email: asharma@coba.usf.edu
Web: http://www.coba.usf.edu/sharma
:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-








-----Original Message-----
From: Organizations and the Natural Environment Discussion
[mailto:ONE-L@AOMLISTS.pace.edu] On Behalf Of David Levy
Sent: Tuesday, June 26, 2007 10:02 AM
To: ONE-L@AOMLISTS.pace.edu
Subject: Re: Base of the pyramid video

Aarti,
you could try an experiential exercise as well - take in a bunch of
single-use shampoo sachets, offer to sell them for 50c to the students,
and discuss how this "can uplift society, boost economic growth, cater
to the needs of the poor, and in the process contribute to sustainable
development."

(the shampoo example is from the original Base of the Pyramid book)
I know that MNCs can be a positive force in development, bringing
investment, technology, employment, and taxation, but these
marketing-based strategies leave me very skeptical....]

I would also be interested in resources, but only if they have some
balance, and express the (widely shared) critique.

David

--
David Levy
Professor, Department of Management
University of Massachusetts, Boston
100 Morrissey Blvd., Boston, MA 02125, USA
http://www.faculty.umb.edu/david_levy/

to quote the management guru whose prescription to solve global poverty is for the poor to consume their way out of poverty: “When the poor are converted into consumers, they get more than access to products and services. They acquire the dignity of attention and choices from the private sector that were previously reserved for the middle class and rich” (Prahalad, 2004: 22).

anyone hear harps and violins in the background'? of course apart from selling shampoo to the poor so that they can become middle class hindustan level also sells their best selling skin whitening cream 'fair and lovely' in smaller packages to the bottom of the pyramid. now what could be more empowering for the poor people of the world than to have both silky hair and a fair skin. talk about win-win.

perfect segue into a not so subtle, even shameless plug for an all-academy symposium 'Can Doing Well by Doing Good Be Bad for Society? Critical Perspectives on Corporate Social Responsibility' which is scheduled for Tuesday, Aug 7 2007 10:30AM - 11:50AM at Philadelphia Marriott in Liberty Ballroom C. (http://program.aomonline.org/2007/submission.asp?mode=ShowSession&SessionID=909)


-----Original Message-----
From: Organizations and the Natural Environment Discussion on behalf of David Levy
Sent: Tue 6/26/2007 11:31 PM
To: ONE-L@AOMLISTS.pace.edu
Subject: Re: Base of the pyramid video

Aarti,
you could try an experiential exercise as well - take in a bunch of
single-use shampoo sachets, offer to sell them for 50c to the students,
and discuss how this "can uplift society, boost economic growth, cater
to the needs of the poor, and in the process contribute to sustainable
development."

(the shampoo example is from the original Base of the Pyramid book)
I know that MNCs can be a positive force in development, bringing
investment, technology, employment, and taxation, but these
marketing-based strategies leave me very skeptical....]

I would also be interested in resources, but only if they have some
balance, and express the (widely shared) critique.

David

--
David Levy
Professor, Department of Management
University of Massachusetts, Boston
100 Morrissey Blvd., Boston, MA 02125, USA
http://www.faculty.umb.edu/david_levy/

In my view, rural India offers tremendous potential for businesses -
both Indian companies and foreign multinational corporations. It's
important that we recognize both sides of the debate and see the
potential and drawbacks of BOP strategies. There is more to BOP thinking
than just cosmetics, soaps and marketing. There is a huge market in
India when it comes to selling food and health care products - and that
business operations have nutritional, health and hygiene implications as
well. These are basic human welfare issues. Amul is a success story of
empowering dairy farmers through cooperative arrangements. They provide
small pouches of cottage cheese, milk products and vegetables at
affordable costs for poor. Professor Prahalad talks about various other
business success stories from BOP, including the Arvind Eye Care and the
Jaipur Foot Factory involving the visually impaired and physically
disabled individuals.

Let's think of other BOP opportunities. (1) How about if companies sell
Dettol and Band-Aid (I am using those brand names as generic terms here)
to poor people at affordable cost, so that they can heal their wounds
with antiseptic; instead of covering it with a dirty cloth or sand and
taking a chance by letting nature do the healing for them? (2) How about
supplying clean fuels like LPG / Biogas and gas stoves to rural families
at affordable costs so that the housewives do not have to walk for miles
to forests and collect fire words; so that they don't have to make cow
dung cakes; so that they don't have to burn kerosene oil in their stove;
and in the process they (and their children) do not have to suffer from
physical and mental exhaustion and respiratory illnesses because of
indoor air pollution? (3) How about providing Glucose, minerals and
vitamin-based nutritional fluids and supplements to rural families at
affordable costs - children, young and old frequently suffer and die
from diarrhea and cholera in villages? (4) How about providing
electricity to rural India, which is not yet fully electrified, at
affordable costs? (5) How about providing privatized education at
affordable cost to kids and youth in rural India? (6) How about
providing affordable medicines to poor victims of TB, Malaria, HIV/AIDS?
(7) How about dealing with Iodine deficiency disorder by providing cheap
iodized salt? (8) How about providing nutritional food at affordable
costs to the poor? My questions are also fundamentally based on the 8
Millennium Declaration Goals set up by the United Nations to achieve
sustainability in the 21st century.

As far as HLL's Fair and Lovely fairness cream is concerned, well I
think it is a reflection of the societies I come from and belong to.
Unfortunately, men (probably not all, but a significant population of
men and irrespective of whether they are rich or poor) in those
societies prefer "fair and lovely" women as their life partners, as
compared to the "not-so-fair and not-so-lovely" women! That's what
appears in the most wanted list circulated around in the families and
"arranged marriage" market. It is a demand and supply situation. So,
let's not put the full blame on HLL for producing that cream. We, as
consumers, are equally responsible for products like those.

I look forward to attending the All-academy symposium 'Can Doing Well by
Doing Good Be Bad for Society? Critical Perspectives on Corporate Social
Responsibility.' It looks pretty interesting! And thanks for your
feedback.

Regards,
Aarti


:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-
Aarti Sharma
Department of Management & Organization
College of Business Administration
University of South Florida
4202 E. Fowler Ave., BSN-3524
Tampa, FL-33620-5500
Tel: 813-974-4354
Fax: 813- 974-1734
Email: asharma@coba.usf.edu
Web: http://www.coba.usf.edu/sharma
:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-


-----Original Message-----
From: Organizations and the Natural Environment Discussion
[mailto:ONE-L@AOMLISTS.pace.edu] On Behalf Of Bobby Banerjee
Sent: Wednesday, June 27, 2007 4:35 AM
To: ONE-L@AOMLISTS.pace.edu
Subject: Re: Base of the pyramid video

to quote the management guru whose prescription to solve global poverty
is for the poor to consume their way out of poverty: "When the poor are
converted into consumers, they get more than access to products and
services. They acquire the dignity of attention and choices from the
private sector that were previously reserved for the middle class and
rich" (Prahalad, 2004: 22).

anyone hear harps and violins in the background'? of course apart from
selling shampoo to the poor so that they can become middle class
hindustan level also sells their best selling skin whitening cream 'fair
and lovely' in smaller packages to the bottom of the pyramid. now what
could be more empowering for the poor people of the world than to have
both silky hair and a fair skin. talk about win-win.

perfect segue into a not so subtle, even shameless plug for an
all-academy symposium 'Can Doing Well by Doing Good Be Bad for Society?
Critical Perspectives on Corporate Social Responsibility' which is
scheduled for Tuesday, Aug 7 2007 10:30AM - 11:50AM at Philadelphia
Marriott in Liberty Ballroom C.
(http://program.aomonline.org/2007/submission.asp?mode=ShowSession&Sessi
onID=909)


-----Original Message-----
From: Organizations and the Natural Environment Discussion on behalf of
David Levy
Sent: Tue 6/26/2007 11:31 PM
To: ONE-L@AOMLISTS.pace.edu
Subject: Re: Base of the pyramid video

Aarti,
you could try an experiential exercise as well - take in a bunch of
single-use shampoo sachets, offer to sell them for 50c to the students,
and discuss how this "can uplift society, boost economic growth, cater
to the needs of the poor, and in the process contribute to sustainable
development."

(the shampoo example is from the original Base of the Pyramid book)
I know that MNCs can be a positive force in development, bringing
investment, technology, employment, and taxation, but these
marketing-based strategies leave me very skeptical....]

I would also be interested in resources, but only if they have some
balance, and express the (widely shared) critique.

David

--
David Levy
Professor, Department of Management
University of Massachusetts, Boston
100 Morrissey Blvd., Boston, MA 02125, USA
http://www.faculty.umb.edu/david_levy/

I understand the concern about the BOP hype being
just a trick to help underperforming MNCs find a
way to boost tehir growth. However, there are three
concerns that I have with the BOP critique.

1) Imagine two job applicants. One with "silky
hair and a fair skin" and one without. The morale
for me is that we should not try to second guess
choices made by poor consumers. They have their
reasons. Even if we do not like them. As much as
we would like to be allowed to make our own choices
we should assume that the poor have enough judgement
to make their choices.

2) Also please note that contrary to public beliefs
many microloans are actually used to pay for (*gasp*)
consumption rather than microbusiness investments.
They help the poor cover a short period of time until
they can realise another income to pay off the loan.
Should microfinance programmes now run a check on how
money is spent? Should they punish those who use the
loan to buy MNC consumer goods?

3) Prahald's core hypothesis is that poor people
pay a "poverty premium" because compared with rich
people the products they can buy are often
- of lower quality
- at a higher price
- with less convenient distribution
Reducing that poverty premium will free time and
money that the poor should then be allowed to
spend as they see fit. Even if they want to do
so by buying Unilever products that we may find
superfulous.

That said I must admit that not all of Prahald's
examples are exactly uplifting. For example, one
can wonder whether Indians are really better off
just because Unilever/HLL's washing powder Wheel
tries to replace the Indian competitor Nirma.

Best regards
Kai

_________________________________________

Kai Hockerts, Associate Professor
Copenhagen Business School
Center for Corporate Values and Responsibility
Porcelanhavn 18a; DK-2000 Frederiksberg (Denmark)
Tel: +45 3815-3175, Switchboard: +45 3815-3815
kai.hockerts@cbs.dk, Web: http://uk.cbs.dk/staff/hockerts
Skype: kai_hockerts; LinkedIn/Open BC: Kai Hockerts

----- Original Message -----
From: Bobby Banerjee <Bobby.Banerjee@UNISA.EDU.AU>
Date: Wednesday, June 27, 2007 3:00 pm
Subject: Re: Base of the pyramid video
To: ONE-L@AOMLISTS.pace.edu

> to quote the management guru whose prescription to solve global
> poverty is for the poor to consume their way out of poverty: ?When
> the poor are converted into consumers, they get more than access to
> products and services. They acquire the dignity of attention and
> choices from the private sector that were previously reserved for
> the middle class and rich? (Prahalad, 2004: 22).
>
> anyone hear harps and violins in the background'? of course apart
> from selling shampoo to the poor so that they can become middle
> class hindustan level also sells their best selling skin whitening
> cream 'fair and lovely' in smaller packages to the bottom of the
> pyramid. now what could be more empowering for the poor people of
> the world than to have both silky hair and a fair skin. talk about
> win-win.
>
> perfect segue into a not so subtle, even shameless plug for an all-
> academy symposium 'Can Doing Well by Doing Good Be Bad for Society?
> Critical Perspectives on Corporate Social Responsibility' which is
> scheduled for Tuesday, Aug 7 2007 10:30AM - 11:50AM at Philadelphia
> Marriott in Liberty Ballroom C.
>
(http://program.aomonline.org/2007/submission.asp?mode=ShowSession&SessionID=909)
>
> -----Original Message-----
> From: Organizations and the Natural Environment Discussion on
> behalf of David Levy
> Sent: Tue 6/26/2007 11:31 PM
> To: ONE-L@AOMLISTS.pace.edu
> Subject: Re: Base of the pyramid video
>
> Aarti,
> you could try an experiential exercise as well - take in a bunch of
> single-use shampoo sachets, offer to sell them for 50c to the
> students,
> and discuss how this "can uplift society, boost economic growth,
> cater
> to the needs of the poor, and in the process contribute to
> sustainable
> development."
>
> (the shampoo example is from the original Base of the Pyramid book)
> I know that MNCs can be a positive force in development, bringing
> investment, technology, employment, and taxation, but these
> marketing-based strategies leave me very skeptical....]
>
> I would also be interested in resources, but only if they have some
> balance, and express the (widely shared) critique.
>
> David
>
> --
> David Levy
> Professor, Department of Management
> University of Massachusetts, Boston
> 100 Morrissey Blvd., Boston, MA 02125, USA
> http://www.faculty.umb.edu/david_levy/
>
>

1. kai, it is probably a good thing i'm not in the job market because sadly i have neither silky hair nor fair skin. perhaps we should pass along this warning to job applicants at this year's AOM? or does your scenario apply only to poor people and not middle class academics? and far from second guessing choices that people make, a critique of BOP or CSR would ask the question whether markets are creating an illusion of choice. and whether selling shampoo or soap or skin whitening cream does indeed reduce the poverty premium and enhance social welfare in poor market segments. this is an untested assumption.



2. aarti, regarding your point about not blaming HLL because some societies prefer fair skinned women. yes you cannot blame HLL for societal preferences however discriminatory, racist or sexist they may be but you can certainly blame them for exploiting those preferences, even validating them as their ads for fair and lovely do (after the government banned two of their ads showing that fair skinned people were more successful in careers and relationhsips HLL pulled its ad campaign, but still maintained that their product 'empowered' women). BOP advocates also buy this line - skin whitening creams are about 'choice and economic empowerment for women'. many women's movement groups in india argue that the way to empower women is to alleviate their poverty, make them financially independent, and provide better education. how selling cosmetics is going to achieve this is a bit of a mystery. it is one thing to exploit an existing prejudice, quite another to reinforce it.



3. and you have raised some profound questions in your subsequent email re: the role of corporations in addressing the millennium development goals. yes, apart from cosmetics there are more meaningful products (like clean water, sanitation, health care and education) that could help address those goals. but the role of corporations in delivering these products efficiently is problematic: case study evidence from the privatization of water in south africa and bolivia for example tells us that corporate takeover of water delivery had the effect of making people poorer - water bills rose by 200% in bolivia after bechtel was given the contract. in south africa thousands of 'structurally adjusted' poor people had their water cut off after the government privatizated water and deaths from epidemics like cholera increased after the water supply was privatized because sanitation services worsened.



4. the issue is not whether a corporation is good or bad. yes there are large markets in the BOP but which ones are profitable is the key question. As Bakan argues, from a profitability perspective, it would be difficult for any pharmaceutical corporation for example, to justify manufacturing or developing drugs for treating malaria and tuberculosis which are the leading causes of death in the poorer regions of the world, despite the enormous social benefits of such a strategy especialy when profit margins for drugs to treat baldness and impotence in affluent market segments are significantly higher. corporations will pursue or create profitable markets because that is what they think will deliver shareholder value which remains the only imperative of corporations as they are currently constituted, despite the rhetoric of CSR, stakeholders and BOP. Edward Harness, former CEO of procter & gamble was once asked about his perceptions of CSR. his memorable reply 'I am not aware of any bankrupt corporations which are making important social contributions'.



5. meaningful social change (as opposed to finding evidence of whether CSR leads to better corporate financial performance) requires interventions not just at the level of the corporation but at the political economy. as joseph stiglitz (once the blue eyed boy of the neoliberal establishment and now a traitor to their cause) commenting on IMF and world bank economic development policies during the asian financial crisis of the 1990s said 'we did manage to tighten the belts of the poor as we loosened those on the rich'. Another way to look at the poverty premium perhaps?



cheers



bobby


________________________________

From: Organizations and the Natural Environment Discussion on behalf of Kai Hockerts
Sent: Thu 6/28/2007 6:11 AM
To: ONE-L@AOMLISTS.pace.edu
Subject: Re: Base of the pyramid video



I understand the concern about the BOP hype being
just a trick to help underperforming MNCs find a
way to boost tehir growth. However, there are three
concerns that I have with the BOP critique.

1) Imagine two job applicants. One with "silky
hair and a fair skin" and one without. The morale
for me is that we should not try to second guess
choices made by poor consumers. They have their
reasons. Even if we do not like them. As much as
we would like to be allowed to make our own choices
we should assume that the poor have enough judgement
to make their choices.

2) Also please note that contrary to public beliefs
many microloans are actually used to pay for (*gasp*)
consumption rather than microbusiness investments.
They help the poor cover a short period of time until
they can realise another income to pay off the loan.
Should microfinance programmes now run a check on how
money is spent? Should they punish those who use the
loan to buy MNC consumer goods?

3) Prahald's core hypothesis is that poor people
pay a "poverty premium" because compared with rich
people the products they can buy are often
- of lower quality
- at a higher price
- with less convenient distribution
Reducing that poverty premium will free time and
money that the poor should then be allowed to
spend as they see fit. Even if they want to do
so by buying Unilever products that we may find
superfulous.

That said I must admit that not all of Prahald's
examples are exactly uplifting. For example, one
can wonder whether Indians are really better off
just because Unilever/HLL's washing powder Wheel
tries to replace the Indian competitor Nirma.

Best regards
Kai

_________________________________________

Kai Hockerts, Associate Professor
Copenhagen Business School
Center for Corporate Values and Responsibility
Porcelanhavn 18a; DK-2000 Frederiksberg (Denmark)
Tel: +45 3815-3175, Switchboard: +45 3815-3815
kai.hockerts@cbs.dk, Web: http://uk.cbs.dk/staff/hockerts
Skype: kai_hockerts; LinkedIn/Open BC: Kai Hockerts

----- Original Message -----
From: Bobby Banerjee <Bobby.Banerjee@UNISA.EDU.AU>
Date: Wednesday, June 27, 2007 3:00 pm
Subject: Re: Base of the pyramid video
To: ONE-L@AOMLISTS.pace.edu

> to quote the management guru whose prescription to solve global
> poverty is for the poor to consume their way out of poverty: ?When
> the poor are converted into consumers, they get more than access to
> products and services. They acquire the dignity of attention and
> choices from the private sector that were previously reserved for
> the middle class and rich? (Prahalad, 2004: 22).
>
> anyone hear harps and violins in the background'? of course apart
> from selling shampoo to the poor so that they can become middle
> class hindustan level also sells their best selling skin whitening
> cream 'fair and lovely' in smaller packages to the bottom of the
> pyramid. now what could be more empowering for the poor people of
> the world than to have both silky hair and a fair skin. talk about
> win-win.
>
> perfect segue into a not so subtle, even shameless plug for an all-
> academy symposium 'Can Doing Well by Doing Good Be Bad for Society?
> Critical Perspectives on Corporate Social Responsibility' which is
> scheduled for Tuesday, Aug 7 2007 10:30AM - 11:50AM at Philadelphia
> Marriott in Liberty Ballroom C.
>
(http://program.aomonline.org/2007/submission.asp?mode=ShowSession&SessionID=909)
>
> -----Original Message-----
> From: Organizations and the Natural Environment Discussion on
> behalf of David Levy
> Sent: Tue 6/26/2007 11:31 PM
> To: ONE-L@AOMLISTS.pace.edu
> Subject: Re: Base of the pyramid video
>
> Aarti,
> you could try an experiential exercise as well - take in a bunch of
> single-use shampoo sachets, offer to sell them for 50c to the
> students,
> and discuss how this "can uplift society, boost economic growth,
> cater
> to the needs of the poor, and in the process contribute to
> sustainable
> development."
>
> (the shampoo example is from the original Base of the Pyramid book)
> I know that MNCs can be a positive force in development, bringing
> investment, technology, employment, and taxation, but these
> marketing-based strategies leave me very skeptical....]
>
> I would also be interested in resources, but only if they have some
> balance, and express the (widely shared) critique.
>
> David
>
> --
> David Levy
> Professor, Department of Management
> University of Massachusetts, Boston
> 100 Morrissey Blvd., Boston, MA 02125, USA
> http://www.faculty.umb.edu/david_levy/
>
>

Hi Bobby,

Thank you for sharing your knowledge and critique on this topic. I
appreciate the valuable arguments you have put forth. And it's
enlightening to see the other side of the debate and understand some of
the complexities involved.

I am with you on warning number 1! I think it will be great if the "fair
and silky" warning is not just restricted to rich and poor "arranged
marriage applicants" and the "AOM job applicants", but also to all the
job applicants in the corporate world. It will be great to see that
while planning marriage alliances in India and Nepal (that's where I
come from, so I can say only for those societies), "deeper" criteria of
human values, culture, family upbringing, and education is given greater
priority; and that jobs are offered to individuals, based on their
intellect, knowledge, capabilities and potentials; rather than the
"superficial", cosmetic, fair and silky, appeal! It's very good to know
that the HLL ad was banned.

I look forward to meeting you at the Academy.

Regards,
Aarti


:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-

Aarti Sharma
Department of Management & Organization
College of Business Administration
University of South Florida
4202 E. Fowler Ave., BSN-3524
Tampa, FL-33620-5500
Tel: 813-974-4354
Fax: 813- 974-1734
Email: asharma@coba.usf.edu
Web: http://www.coba.usf.edu/sharma

:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-





-----Original Message-----
From: Organizations and the Natural Environment Discussion
[mailto:ONE-L@AOMLISTS.pace.edu] On Behalf Of Bobby Banerjee
Sent: Wednesday, June 27, 2007 11:11 PM
To: ONE-L@AOMLISTS.pace.edu
Subject: Re: Base of the pyramid video

1. kai, it is probably a good thing i'm not in the job market because
sadly i have neither silky hair nor fair skin. perhaps we should pass
along this warning to job applicants at this year's AOM? or does your
scenario apply only to poor people and not middle class academics? and
far from second guessing choices that people make, a critique of BOP or
CSR would ask the question whether markets are creating an illusion of
choice. and whether selling shampoo or soap or skin whitening cream
does indeed reduce the poverty premium and enhance social welfare in
poor market segments. this is an untested assumption.



2. aarti, regarding your point about not blaming HLL because some
societies prefer fair skinned women. yes you cannot blame HLL for
societal preferences however discriminatory, racist or sexist they may
be but you can certainly blame them for exploiting those preferences,
even validating them as their ads for fair and lovely do (after the
government banned two of their ads showing that fair skinned people were
more successful in careers and relationhsips HLL pulled its ad campaign,
but still maintained that their product 'empowered' women). BOP
advocates also buy this line - skin whitening creams are about 'choice
and economic empowerment for women'. many women's movement groups in
india argue that the way to empower women is to alleviate their poverty,
make them financially independent, and provide better education. how
selling cosmetics is going to achieve this is a bit of a mystery. it
is one thing to exploit an existing prejudice, quite another to
reinforce it.



3. and you have raised some profound questions in your subsequent email
re: the role of corporations in addressing the millennium development
goals. yes, apart from cosmetics there are more meaningful products
(like clean water, sanitation, health care and education) that could
help address those goals. but the role of corporations in delivering
these products efficiently is problematic: case study evidence from the
privatization of water in south africa and bolivia for example tells us
that corporate takeover of water delivery had the effect of making
people poorer - water bills rose by 200% in bolivia after bechtel was
given the contract. in south africa thousands of 'structurally adjusted'
poor people had their water cut off after the government privatizated
water and deaths from epidemics like cholera increased after the water
supply was privatized because sanitation services worsened.



4. the issue is not whether a corporation is good or bad. yes there
are large markets in the BOP but which ones are profitable is the key
question. As Bakan argues, from a profitability perspective, it would
be difficult for any pharmaceutical corporation for example, to justify
manufacturing or developing drugs for treating malaria and tuberculosis
which are the leading causes of death in the poorer regions of the
world, despite the enormous social benefits of such a strategy especialy
when profit margins for drugs to treat baldness and impotence in
affluent market segments are significantly higher. corporations will
pursue or create profitable markets because that is what they think will
deliver shareholder value which remains the only imperative of
corporations as they are currently constituted, despite the rhetoric of
CSR, stakeholders and BOP. Edward Harness, former CEO of procter &
gamble was once asked about his perceptions of CSR. his memorable reply
'I am not aware of any bankrupt corporations which are making important
social contributions'.



5. meaningful social change (as opposed to finding evidence of whether
CSR leads to better corporate financial performance) requires
interventions not just at the level of the corporation but at the
political economy. as joseph stiglitz (once the blue eyed boy of the
neoliberal establishment and now a traitor to their cause) commenting on
IMF and world bank economic development policies during the asian
financial crisis of the 1990s said 'we did manage to tighten the belts
of the poor as we loosened those on the rich'. Another way to look at
the poverty premium perhaps?



cheers



bobby


________________________________

From: Organizations and the Natural Environment Discussion on behalf of
Kai Hockerts
Sent: Thu 6/28/2007 6:11 AM
To: ONE-L@AOMLISTS.pace.edu
Subject: Re: Base of the pyramid video



I understand the concern about the BOP hype being
just a trick to help underperforming MNCs find a
way to boost tehir growth. However, there are three
concerns that I have with the BOP critique.

1) Imagine two job applicants. One with "silky
hair and a fair skin" and one without. The morale
for me is that we should not try to second guess
choices made by poor consumers. They have their
reasons. Even if we do not like them. As much as
we would like to be allowed to make our own choices
we should assume that the poor have enough judgement
to make their choices.

2) Also please note that contrary to public beliefs
many microloans are actually used to pay for (*gasp*)
consumption rather than microbusiness investments.
They help the poor cover a short period of time until
they can realise another income to pay off the loan.
Should microfinance programmes now run a check on how
money is spent? Should they punish those who use the
loan to buy MNC consumer goods?

3) Prahald's core hypothesis is that poor people
pay a "poverty premium" because compared with rich
people the products they can buy are often
- of lower quality
- at a higher price
- with less convenient distribution
Reducing that poverty premium will free time and
money that the poor should then be allowed to
spend as they see fit. Even if they want to do
so by buying Unilever products that we may find
superfulous.

That said I must admit that not all of Prahald's
examples are exactly uplifting. For example, one
can wonder whether Indians are really better off
just because Unilever/HLL's washing powder Wheel
tries to replace the Indian competitor Nirma.

Best regards
Kai

_________________________________________

Kai Hockerts, Associate Professor
Copenhagen Business School
Center for Corporate Values and Responsibility
Porcelanhavn 18a; DK-2000 Frederiksberg (Denmark)
Tel: +45 3815-3175, Switchboard: +45 3815-3815
kai.hockerts@cbs.dk, Web: http://uk.cbs.dk/staff/hockerts
Skype: kai_hockerts; LinkedIn/Open BC: Kai Hockerts

----- Original Message -----
From: Bobby Banerjee <Bobby.Banerjee@UNISA.EDU.AU>
Date: Wednesday, June 27, 2007 3:00 pm
Subject: Re: Base of the pyramid video
To: ONE-L@AOMLISTS.pace.edu

> to quote the management guru whose prescription to solve global
> poverty is for the poor to consume their way out of poverty: ?When
> the poor are converted into consumers, they get more than access to
> products and services. They acquire the dignity of attention and
> choices from the private sector that were previously reserved for
> the middle class and rich? (Prahalad, 2004: 22).
>
> anyone hear harps and violins in the background'? of course apart
> from selling shampoo to the poor so that they can become middle
> class hindustan level also sells their best selling skin whitening
> cream 'fair and lovely' in smaller packages to the bottom of the
> pyramid. now what could be more empowering for the poor people of
> the world than to have both silky hair and a fair skin. talk about
> win-win.
>
> perfect segue into a not so subtle, even shameless plug for an all-
> academy symposium 'Can Doing Well by Doing Good Be Bad for Society?
> Critical Perspectives on Corporate Social Responsibility' which is
> scheduled for Tuesday, Aug 7 2007 10:30AM - 11:50AM at Philadelphia
> Marriott in Liberty Ballroom C.
>
(http://program.aomonline.org/2007/submission.asp?mode=ShowSession&Sessi
onID=909)
>
> -----Original Message-----
> From: Organizations and the Natural Environment Discussion on
> behalf of David Levy
> Sent: Tue 6/26/2007 11:31 PM
> To: ONE-L@AOMLISTS.pace.edu
> Subject: Re: Base of the pyramid video
>
> Aarti,
> you could try an experiential exercise as well - take in a bunch of
> single-use shampoo sachets, offer to sell them for 50c to the
> students,
> and discuss how this "can uplift society, boost economic growth,
> cater
> to the needs of the poor, and in the process contribute to
> sustainable
> development."
>
> (the shampoo example is from the original Base of the Pyramid book)
> I know that MNCs can be a positive force in development, bringing
> investment, technology, employment, and taxation, but these
> marketing-based strategies leave me very skeptical....]
>
> I would also be interested in resources, but only if they have some
> balance, and express the (widely shared) critique.
>
> David
>
> --
> David Levy
> Professor, Department of Management
> University of Massachusetts, Boston
> 100 Morrissey Blvd., Boston, MA 02125, USA
> http://www.faculty.umb.edu/david_levy/
>
>