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1、WQR1.D2QNOMCFQRUMMARCH2024INSIGHTREPORTInpartnershipwithEchoingGreen,DalbergandGHRFoundationSCHWABFOUNDATIONfi8WlAlFKJTBFP9FKF.InnovatingforEquity:UnlockingValueforCommunitiesandBusinessesContentsForeword3Executivesummary4Keyconceptsandterms6Introduction8Thesharedchallenge9Sialinnovationasasolution1
2、0Drivingthediscussion10Pathways12Pathway1:Expandingmarkets131.1 Spotlight:JehielOliver,HelloTractor131.2 WideningtheInnovation1.ens:DonnelBaird,BIocPower161.3 Thefuture:Accesstotoolsandservicesthatimprovelivelihoods17Pathway2:Unlockingtalent182.1 Spotlight:1.aurin1.eonard,R3Score182.2 WideningtheInn
3、ovation1.ens:OpenHiringatGreystonBakery202.3 Thefuture:Inclusiveopportunitiesforemploymentandprofessionalgrowth21Pathway3:Broadeningnetworks233.1 Spotlight:RebeccaHui,RtsStudio233.2 Wideningtheinnovationlens:AdrianaBarbosa,PretaHub253.3 Thefuture:Makingbusinessnetworksinclusiveandreciprocal26Frompat
4、hwaystopractice28Calltoaction:Creatingtheconditionsforinnovationtoevolveandthrive30Contributors32Endnotes33DisclaimerThisdocumentispublishedbytheSchwabFoundationinpartnershipwiththeWorldEconomicForum.Thefindings,interpretationsandconclusionsexpressedhereinarearesultofacollaborativeprocessfacilitated
5、andendorsedbytheWorldEconomicForumbutwhoseresultsdonotnecessarilyrepresenttheviewsoftheWorldEconomicForum,northeentiretyofitsMembers.Partnersorotherstakeholders.2024SchwabFoundationforSocialEntrepreneurshipandWorldEnomicForum,Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinany
6、formorbyanymeans,includingphotocopyingandrerdig,orbyanyinformationstorageandretrievalsystem.March2024InnovatingforEquityUnlockingValueforCommunitiesandBusinessesForewordCheryl1.DorseyPresident,EchoingGreen,USAFranoisBonniciDirector,SchwabFoundationforSocialEntrepreneurship;HeadofFoundations,WorldEco
7、nomicForumFortoolong,untappedeconomicopportunitieshavebeenhiddeninsystematicallyexcludedcommunities.Butinsteadofgivingintothebarriersfacingthem,moreoftenthannot,socialinnovatorsarisefromthisscarcitytodriveingenuityandinnovation.Inthecurrentdebateaboutdiversity,equityandinclusion,itiseasytofocusonthe
8、backlashandlosesightofthepracticalsolutionsthatcanmakearealdifference.Thisreporttakesafreshlookattheissue.Insteadofdivingintoavalue-drivendiscussion,itfocusesonhowworkingwithsocialinnovatorswhoareadvancingracialandethnicequityisasmartbusinessdecision.Theessenceofthereportissimple:overlookedcommuniti
9、esareburstingwithpotentialforinnovationandgrowth.Systemicracismandeconomicexclusion,whicharebigproblemsnotjustintheUSbutaroundtheworld,holdbackentirecommunitiesand,inturn,theglobaleconomy.Butwithinthesechallengeslieincredibleopportunitiesforbusinesseswillingtothinkdifferently.Wehighlightthreepathway
10、sforbusinessestounlockbusinessvalue:byreachingnewmarkets;bytappingintodiversetalentpools;andbybuildinginclusivenetworkstostrengthentheirinnovationcapabilities.Theseinsightsarebasedontangiblesuccessstoriesthatshowhowinclusivepracticescanbringbenefitsforeveryoneinvolved.Thisreportofferssolutionstomove
11、beyondtickingboxesfordiversitytoseeingtheeconomicvalueinbringingeveryoneintothefold.Businessesthatunderstandthisarefindingnewopportunitiesandpartnershipstodrivegrowthinwaysthatuplifteveryone.Itisclearthatthepathtoafairer,moreprosperousworldinvolvesworkingtogether.Thisreportoutlinesforbusinessesandle
12、aderseverywherethecleareconomicandimpactopportunityofmakingequityacorepartoftheiroperations,andshowsthatsolutionsandpartnershipsalreadyexisttorealizethisuntappedvalue.ExecutivesummarySocialinnovatorsdemonstratehowtounlockeconomicvalueandbuildamoreinclusiveeconomyatthesametime.&Socialinnovatorsareatt
13、heforefrontofreimaginingtheeconomicstatusquo.Theseleadersaregeneratingvalueforcommunitiesandtheeconomy.Bysimultaneouslyaddressingsocialproblemsandintroducingfinanciallysustainableproductsandservices,theybuildamoreequitableandprosperousworld.Raciallyandethnicallymarginalizedcommunitiesarealargelyunta
14、ppedsourceofinnovation.Addressingtheirneedsisnotonlyamoralimperative,itisagrowthopportunityforbusinesses.Overlookingthispotentialplacesaprosperitycapontheglobaleconomy.Notacknowledgingtheirpotentialplacesaprosperitycapontheglobaleconomy.IntheUSalone,itisestimatedthatthewideningracialwealthgapwillcos
15、tthecountryupto$1.5trillionineconomicgrowthby2028.1ThistranslatestoacaponGDPgrowthof6%.Ittakeslittletoimaginetheeffectontheglobaleconomyofunlockingracialequitythroughsocialinnovationsolutions.2Thisreportofferssocialinnovationsolutionsforintegratingracialequityintobusinesspracticesand,thereby,unlocki
16、ngadditionaleconomicgrowthworldwide.Economicexclusionisbothalocalandglobalchallengedrivenbysocial,historical,politicalandinstitutionalfactors.Manycommunitiesareexcludedandunderrepresented,curtailingtheexponentialvalueopportunitiesforsocietyandtheglobaleconomy.Forexample,intheUSandtheUnitedKingdom,pe
17、rcapitawealthforBlackpeopleislessthanasixthofthatoftheirwhitecounterpartsandthegapisincreasing.34InCanada,thepovertyrateofIndigenouspeopleistwicethat(13.9%)ofnon-lndigenouspeople(7.4%)andracializedgroupshaveahigherpovertyrate(9.5%)thannon-racializedgroups(6.5%).5Indigenouspeoplesin1.atinAmericaare2.
18、7timesmorelikelytoliveinextremepoverty,6whileinAsiaandsub-SaharanAfrica,ethnicaldivisionswithrootsincolonialisttimescontinuetodefineindividualopportunities.7Publicandprivatesectorleadersatalllevelshavearoleandavestedinterestinovercomingthesedeeplyembeddedchallengeswitheconomicnsequences.Economicvalu
19、ecanbeunlockedbypursuingbusinessobjectivesthatalsodriveinclusion.Theseinitiativescangobeyondthemoralimperativetodriveracialandethnicequityandpresentaclearbusinesscase-evenduringchangingpoliticalandeconomicclimates.Betweentalent,resources,groundbreakingbusinessideasanduntappedconsumermarkets,peoplewi
20、thmarginalizedracialandethnicidentitiesholdsignificantlyunderinvestedassets.Theindividualsandorganizationsleveragingnewapproachestosocialandmarketproblemsaresocialinnovators.Organizational,governmentandbusinesspracticesthatbetterengageandinvestinthesecommunitiescanactivelyaddresssystemicinequitiesan
21、daccessnovelcommercialopportunitiestheycouldnotgenerateinternally.Innovativefoundersandcollectivesarebuildingsuccessfulcommercialsolutionstothestructuralchallengespresentedbyracialandethnicinequity.Thesemodelsarecreatingsharedprosperityformmunitiesandbusinesses.Theyarealsobeginningtoshiftunderlyingb
22、usinesspractices-fromhiringtoproductdesign-inwaysthatdrivemeasurableoutmesandbringaboutmoreequitable,justandprosperouseconomicsystems.Thisreportpresentsthreepathwaysforsocialinnovators,companiesandgovernmentstoleverageracialequityopportunitiesacrossdifferentbusinesspractices.Basedoncasestudiesofcurr
23、entinnovationswithprovenimpact,eachpathwayrepresentsasociallyinnovativeapproachtovaluecreationthataddressesinequitiesattheirrts:-Thefirstpathway,Expandingmarkets,centresonsocialinnovatorsprovidingproductsandservicesthatbettermeettheneedsofcommunitiesandgeographiccontexts.Theinnovationsfeatureulast-m
24、iledeliverymodelsthatempowerlocalassetownersandprovideaccesstonewcustomerbases-fromBlackand1.atinxZ1.atinoZHispanicneighbourhoodsinUScitiestoNigeriansmallholderfarmersfromethnicminoritygroups.-Thesecondpathway,Unlockingtalent,spotlightssocialinnovatorscreatingmoreequitablehiringpractices.Sialinnovat
25、ionschallengehistoricalmodelsofassessingcandidateriskandpotential-reshapingemploymentopportunitiesatalllevelsandremovingbarrierstoonboardinghigh-performingemployees,unlockingpreviouslyuntappedtalentpoolsforbusinesses.-Thethirdpathway,Broadeningnetworks,focusesonsocialinnovatorsbuildingmoreinclusivea
26、nddiversesupplierecosystems.Theinnovationsfeaturesuccessful,grassroots-ledeffortstoequitablyengagewiththeskillsandassetsofvendorsthathavebeenhistoricallyexcludedandeconomicallymarginalized.FromdigitallibrariesforIndigenousarttofairsforAfro-Brazilianproducts,innovatorsareredefiningwhobenefitsfromandi
27、srepresentedinglobalbusinessnetworks.Bypartneringwithsocialinnovators,corporateleaderscanbothgrowtheirbusinessesandplayanessentialroleinacceleratingprogressonracialandethnicequity.Corporatecommitmentstoadvanceracialandethnicequityhaveoftentakentheformofinternaldiversity,equityandinclusion(DEI)initia
28、tivesorphilanthropiccorporatesocialresponsibility(CSR)1bothofwhichcanbeimpactedbydynamicpoliticalenvironments.However,somecorporateleadersarefindingthatpartnershipswithsocialinnovatorscancreatemorelastingbenefitsformmunitiesandnovelcommercialopportunities.Socialinnovationissparkedbytheidentification
29、ofsocialandcommercialchallengesnotfullyornotsystemicallyaddressedbyexistingsocialormmercialactivity.Therefore,socialinnovatorsfrequentlycreatebusiness-facingsolutionsthatofferbotheconomicandsocialvalue,includingtheadvancementofracialandethnicequity.Acrossthestagesofscalinginnovationsforracialandethn
30、icequity,corporateandpublicsectorleadershaveopportunitiestopartnerwithinnovators.Thesestagesinclude:- Seed-Socialinnovationsatthisstageareexploringrootcauses,solutionsandmarketopportunities.Solutionsmaystillbenascentideasormodelssubjecttofurtherproof.- Refine-Progressingfrominitialideas,innovationsb
31、ecomedefinedbusinessmodels.Thisstagefocusesontestingsocialinnovationsandbuildingthecapabilitiesneededforfuturescale-up.- Scale-Astheyincreaseinmaturity,innovationsexpandtoreachbroaderpopulationsorsectors.Privateandpublicsectorpartnersarealsoincreasinglyadoptingandmoredeeplyembeddingthem.Mainstream-S
32、ocialinnovationsultimatelymovebeyonddiscreteinitiativesandfundamentallychangebusinessmodels,productsandservices,andapproachestoinnovation.Theyinfluencehowcompaniesaddresstheneedsofeconomicallymarginalizedcommunities.FIGURE1:StagesofsocialinnovationandcorrespondingpartnershipsOVerVieWUnderstandingbar
33、riersandDevelopingmodelsandIncreasingmodelmaturityTransformingmarketstoidentifyingsolutionsgrowingcapabilitiesandadoptionnewstatusquoSocialandcommercialvaluecreationPartnershipstoaccelerategrowthshould.ExpandthereachandembeddingofinnovationsConvenediversestakeholdersforsharedproblemsolvingHonesoluti
34、onsandgrowsharedcapabilitiesShiftbusinesspracticesandresourceflowsbeyondsinglepartnershipsThereisanimportantcallforsocialinnovators,businessesandgovernmentstopartnerinaddressingsystemiceconomicexclusion.Platformsforglobalcollaborationplayanimportantroleinseedingcollaborationbuttheonusisonleaderstoco
35、metogetherandact.Throughcollectiveeffortstoadvancesocialinnovation,atransformativeshiftcanbemade-towardsaneconomyofsharedsocialandcommercialvaluebyemphasizingbusinesspracticesthataddresseconomicdisfunctionsattheirroot,particularlythoseexacerbatedbyracialandethnicinequality.KeyconceptsandtermsTheseco
36、nceptsandtermsareshapingtheglobalconversationonracialandethnicequity.Racialandethnicinequitiesvaryinnameandisdefinedbyasingleidentityorbythenatureacrossgeographies.Thisincludesrace-marginalizationtheyexperience.Wherepossible,baseddynamics,suchasanti-Blackdiscriminationitreferstospecificcommunitiesin
37、thetermsusedinWesternEurope,aswellasinequitiesalongbysocialinnovatorsthemselves,whichmaydifferethniclines,suchastheeconomicexclusionofbasedonthelocalcontext.ThisapproachleadstocertaingroupsandtribesinEastAfrica.8Asaacleararticulationofthechallengeaffectingpeopleresult,organizationsusedifferentandsom
38、etimesinlocalcontextswhileacknowledgingthattherearecontestingterminology,asinthecaseof1.atinxcommondynamicsacrossglobalexpressionsofand*41.atinoaintheUS.9racism.Thisreportaimstobepreciseandrace/ethnicityTable1outlinesdefinitionsoftheconceptsusedinexplicitwhilerecognizingthatnoindividualthisreport.TA
39、B1.E1ConceptdefinitionsTermDefinitionrporationsCorporationsareeconomicinstitutionsthat,throughtheirbusinessoperations,playasignificantroleinshapingeconomicandsocialsystemsonnationalandglobalscales.10ethnicityAclassificationofpeoplebasedonasharedunderstandingofhistory,territorialorigins,ancestryandcu
40、lturalcharacteristicssuchaslanguageandreligion,oftenvaryingbycontextandself-identification.,lastmileIndividualsandpopulationswhoaretypicallythefurthestfrom,mostdifficulttoreach,orlasttobenefitfromaproductorservice.2powerTheabilityofindividualsandcommunitiestoshapetheirdestiniesthroughagencyoveroutco
41、mes-includingthroughresources,norms,narratives,practices,lawsandpolicies.13proximityThelivedexperienceof,andmeaningfulrelationshipswith,communitiesorsocialissuesbeingserved,helpingtocreateexpertiseandtrust.14raceThesocialconstructthatcategorizespeopleintogroupsbasedonphenotypiccharacteristicssuchash
42、airtexture,facialfeaturesandskintone,andgeographicancestry.15racialandethnicThestateinwhichoutcomesarenotpredictedbyraceorethnicityduetotheintentionalpracticeofshiftingpolicies,practices,systemsandstructurestoensurepeoplewithmarginalizedidentitieshaveequitableopportunitiesandequity(REE)outcomes.16sc
43、aleTheexpansion,replication,adaptationandsustainabilityofsuessfulpolicies,programmesorprojectstoreachmorepeopleorplaces,therebyincreasingsocialimpact.57sharedvalueThecreationofeconomicvalueforacompanybyaddressingsocietalandenvironmentalchallengesasbusinessopportunities.0TermDefinitionsocialenterpris
44、es/innovationsOrganizationsthatputsocialorenvironmentalpurposesfirstandoftenemployanentrepreneurial,for-profitandinnovativewaytoprovidegoodsandservices.9socialinnovationTheprocessofinventing,securingsupportfor,andimplementingnovelsolutionstosocialneedsandproblems.20stakeholdercapitalismAformofcapita
45、lismwerecompaniesconsidertheneedsofallstakeholdersandsocietywhileseekinglong-termvaluecreation.21Obstaclesthatllectivelyanddisproportionatelyaffectaspecificgroupandcontinueorpreservedifferencesinstructuralbarriersoutcomes.Thesecanbepolicies,practicesandothernormsthatfavouranadvantagedgroupwhilesyste
46、maticallydisadvantaginganother.22Atermusedthroughoutthereportreferringtothenormalizationandlegitimizationofdynamics,suchashistorical,systemicracism23cultural,institutionalandinterpersonal,thatdisadvantagespecificracialandethnicgroupswhileperpetuatingpositionsofpowerforspecificgroups(e.g.white,higher
47、-caste).24systemschange/transformationConfrontinginterconnectedrootcausesratherthansymptomsofsocialorenvironmentalchallengesbytransformingstructures,customs,mindsets,powerdynamicsandpolicies.25IntroductionGlobaleconomicopportunitiesarecreatedwhencommercialactivityaddresseseconomicexclusionandunlocks
48、assetsineconomicallymarginalizedcommunities.ThesharedchallengeEconomicexclusionisbothalocalandglobalchallengedrivenbysocial,historical,politicalandinstitutionalfactors.Manycommunitiesareexcludedandunderrepresented,curtailingtheexponentialvalueopportunitiesforsocietyandtheglobaleconomy.Forexample,intheUSandtheUnitedKingdom,percapitawealthforBlackpeopleislessthanasixthofthatoftheirwhitecounterpartsandthegapisincreasing.”InCanada,thepovertyrateofIndigeno