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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