BoP Businesses of Multinational Corporations and Sustainability

Abstract

Pessimism about the effects of official development assistance (ODA) on the poorest countries (base of the pyramid; BoP)Base (Bottom) of the Pyramid (BoP) has raised expectations of social business by multinational corporations (MNCs)Multinational Corporation (MNC) since the end of the twentieth century. First, this chapter summarizes the historical developments focused on the role of MNCs in alleviating poverty at the BoP (Sustainable Development Goals [SDGs]Sustainable Development Goals (SDGs) 1, 3, and 6) through delivery of affordable products and services, following activities of non-governmental organizations, growing awareness of corporate social responsibilityCorporate Social Responsibility (CSR), and framing of development goals by United NationsUnited Nations (UN) agencies. Next, it discusses BoP’s shift from its role as a marketplace to a production base or source of innovation, as MNCs have established global production networks. We argue that this has changed the BoP business toward contributing to the achievement of SDGs 5, 8, and 9. Finally, MNCs are required to address not only social challenges at the BoP, but also environmental challenges (SDGs 13) in both emerging and developed countries. To balance these overall SDG-related challenges with MNCs’ own interests, BoP business is further evolving into SDGSustainable Development Goals (SDGs) business management, and MNCs will be increasingly required to redefine their role from a sustainability perspective.