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Companies may choose to adopt an inclusive business model or approach that provides goods, services, and livelihoods on a commercially viable basis to people living at the base of the pyramid (BoP). Depending on the nature and size of the organisation, companies can do this by directly incorporating the BoP in their core value chain, or by piloting inclusive business initiatives through their corporate impact efforts.
Adapted from: Inclusive Business Action Network (IBAN)
Corporate foundations (or company-sponsored foundations) are philanthropic organisations that are created and financially supported by a corporation. The foundation is created as a separate legal entity from the corporation, but with close ties to the corporation. Corporate foundations tend to make grants in fields related to their corporate activities or in communities where the corporation operates, or where their employees reside.
Source: Council of Foundations
Companies may establish Social Impact Accelerators to help enterprises looking to address a social problem over an extended period of time with a mix of financial and non-financial support, including seed funding, mentorship, training, networking and working space.
Employee engagement is any formally organised support or encouragement from companies to leverage employee time, knowledge, skills or other resources to support impact organisations. Employee engagement can vary from corporate volunteering (hands-on or skill-based, virtual or on-site volunteering) and/or corporate giving (payroll giving, employee matching) to co-investment programmes.
Source: EVPA, 2018
Corporate social responsibility (CSR) refers to strategies that companies put into action as part of corporate governance that are designed to ensure the company’s operations are ethical and beneficial for society. These may include initiatives to support the environment, fair labour practices, philanthropy and/or sustainable business practices.
Adapted from: Corporate Finance Institute (CFI)
Corporate impact funds enable companies to make investments that are aligned with and amplified by their strategic priorities, market position and resources in order to generation measurable and mutually reinforcing social, environmental and financial returns and outcomes.
Adapted from: Stanford Social Innovation Review (SSIR), 2021