An initiative to put inclusive growth at the heart of tomorrow's society

Over the past year, one of my most popular posts was a paper titled: “no future for market economy without social justice”.

Around the world, income inequality has reached its highest peak in the past thirty years. Beyond developing countries, pockets of poverty are appearing within developed countries, in rural and urban areas alike. The very foundation of the business system that we have spread around the world, the middle class, is shrinking and crumbling in most G7 countries. Science and research have proved that beyond a certain threshold, inequalities of any kind are economically damaging. And we also know that every time companies put inclusion at the heart of their business model, new economic opportunities arise.

Communication technologies today are making inequalities more socially visible than ever before. And the consensus around what is socially acceptable or necessary in terms of inequalities is shifting fast under pressure from millennials and, even more radically, members of the gen z: because they are digital native and activist, their digital and social behaviors are able to turn a local reality into a global matter instantly, thereby accelerating the pace of change in social norms, including on inequality.

To that effect, anticipating these impending changes, and addressing (at the very least) the most pressing, socially unacceptable inequalities is a self-evident, sound decision for the resilience of both business and democracies.

Because ultimately, beyond the economic argument, inclusive economies are an urgent demand of the people, who want a “system” that puts humans back at its center. But in reality, there is no system, we are the system, “we”, companies, business and political leaders. “We” must change. Because one thing is for sure: there will be no long-lasting market economy without social justice. And it’s not a matter of ideology or idealism; it is cold, hard realism that calls us to action. A collective and inclusive action led by both governments and companies.

We now have a common agenda, in the framework of the UN SDGs for 2030. Four years after their adoption, we have not progressed much on this roadmap, and are lagging behind particularly on the eradication of poverty, the promotion of decent work, and gender equality.

At the G20 meeting in Osaka last month, the B20 issued its Business Voluntary Action Plan, a framework strengthening businesses’ joint efforts to support the UN SDGs and, ultimately, the society of the future. To that end, it should be saluted. What we need now is for such companies to act on this voluntary agenda, to commit individually and collectively to address inequalities, and to contribute concretely to a more inclusive growth, fighting against rising economic, territorial and gender inequalities through the transformation of their business models.

There is a great opportunity ahead: “Fighting Against Inequality” is the theme chosen by the French presidency of the G7 for the Summit taking place in August in Biarritz.

Many business leaders are ready to seize this opportunity: more than 30 of the largest companies in the world are working together, with OECD and G7 governments, to build a “Business for Inclusive Growth” coalition, set to be unveiled and presented as a deliverable at the upcoming G7 meeting.

Simply put, this initiative is based on three integrated pillars that make it unique:

1. A coalition of multinational companies, relevant through their territorial and social footprints, who will engage with three important areas of inclusive growth: human rights, diversity at work and sharing inclusive value throughout the supply chain. These companies come from all G7 countries. Many of them are leaders in their field, in industry, finance, or services. This synergy is essential. The coalition will be at the cutting-edge of new inclusive growth models, and will establish high-level dialogue with global policy decision-makers to progress on the topics mentioned above.

2. An incubator of innovative business models run by companies, co-financed by public and private funds, that will allow companies to experiment with new inclusive ways of doing business through incremental, local, and concrete projects. This incubator will especially allow companies to learn and replicate their findings for the greater good. The incubator will truly be a laboratory of the inclusive micro-economy of tomorrow, leveraging OECD expertise in research and impact measurement.

3. Lastly, a G7 Pool of financing for Inclusive Growth, to support the projects of the incubator, among other things. This pool of financing is under discussion and could be endowed by the states of the G7, as well as anyone who wishes to contribute - philanthropists, foundations, companies, financiers. It could utilize innovative tools such as outcome-based financing. The pool of financing will act as a true engine for social innovation.

“Business for Inclusive Growth” is moving fast as businesses embrace this opportunity to demonstrate true leadership, and discuss what they could achieve together and with governments. I believe the initiative can be a game-changer if it helps nurture a genuine, constructive dialogue at the highest level, between CEOs, the ILO and the UN, on tough social inclusion topics; if it succeeds in piloting innovative micro-economic business models, replicable at scale and with clear impact measurement; and if it is integrated as a lasting G7 initiative around B7, ILO and OECD, to inform public policies and macro-economics.

Because there are not many alternatives, because there is not much time left, we should give this opportunity our best, working hard together in the next few weeks. And we will.