Testing the limits of inclusive capitalism : a case study of the South Africa HP i-community
Date
2007-12
Authors
McFalls, Ricarda
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : University of Stellenbosch
Abstract
In the run-up to the Millennium Development Goals of 2015, the United Nations Global
Compact and others are targeting major corporations to play an active leadership role in
promoting sustainable development. Increasingly, corporations are encouraged to do so
while pursuing profit-making business opportunities yielding social good in developing
countries. Beyond corporate citizenship, the ideal of “inclusive capitalism” is
popularized by C.K. Prahalad, who evangelizes to corporations about the benefits of
marketing to the untapped market opportunity offered by the 4 billion poor consumers
that make up the “Bottom of the Pyramid”. Hewlett Packard, under former CEO
Carley Fiorina embraced this concept; and, supported by President Thabo Mbeki,
launched a high profile project to test this proposition at the 2002 UN World Summit on
Sustainable Development in Johannesburg. Launched as a three year Public Private
Partnership between Hewlett-Packard, the Limpopo Province and the Mogalakwena
Municipality, the project aimed at “creating breakthrough models of sustainable
development, not altruism, at global replication, not local exclusivity”. Influenced by the
author’s status as an IT industry insider in Africa, this narrative case study draws on
privileged access to sources. While a single case study cannot serve to validate or
discredit a development model, it can effectively expose tensions and contradictions
within a model
The case examines what happened in the company’s search for these “breakthrough
models” in South Africa, and reveals how the competing logics between business realities
and development imperatives are not easily reconciled. Early language around the
inclusive capitalism or BOP discourse emphasizing unlimited business opportunities and
poverty eradication through profits may set unrealistic expectations for business
executives.
Description
Thesis (MPhil (Sustainable Development Planning and Management))--University of Stellenbosch, 2007.
Keywords
Capitalism, Computer industry -- Charitable contributions, Social responsibility of business, Computer industry -- Social aspects, Dissertations -- Public management and planning, Theses -- Public management and planning