# How can we mainstream “win-win” business models that work for lead firms and workers post Covid-19? **URL:** \ **Category:** Rebuild Better\ **Created:** [July 2, 2020, 9:09pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708 "2020-07-02T21:09:29Z")\ **Posts on this page:** 20\ **Page:** 6
**Author:** ![Rebeca](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/rebeca/32/24505_2.png) [@Rebeca](https://forum.businessfightspoverty.org/u/Rebeca)\ **Post date:** [July 14, 2020, 1:28pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/101 "2020-07-14T13:28:48Z")
@Ashleighowens Thanks! What do you think are good examples of companies transforming? What main barriers do other face to achieve this? ---
**Author:** ![Alison\_Ward](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/alison_ward/32/18143_2.png) [@Alison\_Ward](https://forum.businessfightspoverty.org/u/Alison_Ward)\ **Post date:** [July 14, 2020, 1:29pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/102 "2020-07-14T13:29:34Z")
A2: If businesses do not have complete sight of their supply chain or have a decentralised approach, they may not know if decent work practices are being maintained. Brands working with CottonConnect say they benefit from our on-the-ground position in the market, having direct access to farm and gins. We can identify if there are any breaches of decent work practices and work to address them. ---
**Author:** ![mandelli](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/mandelli/32/24506_2.png) [@mandelli](https://forum.businessfightspoverty.org/u/mandelli)\ **Post date:** [July 14, 2020, 1:31pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/103 "2020-07-14T13:31:03Z")
Some may think: ‘**Having a responsible business model means I need to change my core business (rules, processes, strategy, etc.), so it is not viable’**. It is better to be realistic in what can be achieved in the short term and begin with feasible changes to expand them over time. Modest improvements made consistently over time make a big difference. ---
**Author:** ![Flynn\_Lebus](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/flynn_lebus/32/24503_2.png) [@Flynn\_Lebus](https://forum.businessfightspoverty.org/u/Flynn_Lebus)\ **Post date:** [July 14, 2020, 1:32pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/104 "2020-07-14T13:32:04Z")
Great! Could you share a couple of concrete examples to help bring this to life? ---
**Author:** ![KevinBilling](https://forum.businessfightspoverty.org/letter_avatar_proxy/v4/letter/k/a8b319/32.png) [@KevinBilling](https://forum.businessfightspoverty.org/u/KevinBilling)\ **Post date:** [July 14, 2020, 1:32pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/105 "2020-07-14T13:32:26Z")
Amalia - the waste in VCs is a critical issue and one gets the feeling that having a back-up system that could be activated in time of emergency (CV-19 or even normal period of glut in production) would be a collective GOOD INVESTMENT. Mayb we can pursuade one of the Donors to invest in it. OR build up a local NGO to do it. Collect surplus and distribute it to the needy. ---
**Author:** ![richard](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/richard/32/34_2.png) [@richard](https://forum.businessfightspoverty.org/u/richard)\ **Post date:** [July 14, 2020, 1:32pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/106 "2020-07-14T13:32:30Z")
Another challenge for lead firms is fully identifying and understanding which elements of the business model are causing problems for workers in their value chains. Also, the root causes are complex and the solutions can lie outside a lead firm’s sphere of operations and influence. ---
**Author:** ![Alison\_Ward](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/alison_ward/32/18143_2.png) [@Alison\_Ward](https://forum.businessfightspoverty.org/u/Alison_Ward)\ **Post date:** [July 14, 2020, 1:32pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/107 "2020-07-14T13:32:47Z")
Hi Amalia We are seeing this as well. Our partners are concerned that farmers will not have enough savings to invest in farming inputs for the 2020 season - so this impact will be long term. ---
**Author:** ![msievers](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/msievers/32/24499_2.png) [@msievers](https://forum.businessfightspoverty.org/u/msievers)\ **Post date:** [July 14, 2020, 1:33pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/108 "2020-07-14T13:33:12Z")
A key challenge continues to be for many larger businesses to link certain functions/knowledge (that consider working conditions) to their buying practices (a challenge in many markets due to strong competition, a problematic business environment, lack of legal compliance etc) and not trying to do this in a parallel CSR/Resp Business work-stream. So it is only a “Business Model for Decent Work” if it actually core to the business and buying operations [Business models for decent work](https://www.ilo.org/empent/Projects/the-lab/WCMS_716906/lang--en/index.htm) ---
**Author:** ![mandelli](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/mandelli/32/24506_2.png) [@mandelli](https://forum.businessfightspoverty.org/u/mandelli)\ **Post date:** [July 14, 2020, 1:34pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/109 "2020-07-14T13:34:12Z")
**Then you have lead companies that refuse to work with local suppliers who do not comply with laws, especially in lowest income countries. Should / is there a way for these lead companies to adopt a longer-term approach, so they work together with local businesses to help them adopt more sustainable practises?** ---
**Author:** ![MarkHauser](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/markhauser/32/24479_2.png) [@MarkHauser](https://forum.businessfightspoverty.org/u/MarkHauser)\ **Post date:** [July 14, 2020, 1:34pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/110 "2020-07-14T13:34:14Z")
Very true. I wonder if there is a role for pan-industry collaboration to achieve unilateral adherence to certain conditions? How could this be achieved? We’re starting to see increasing collaboration across environmental issues. Is it plausible for us to achieve similar across social / worker outcomes? ---
**Author:** ![Rebeca](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/rebeca/32/24505_2.png) [@Rebeca](https://forum.businessfightspoverty.org/u/Rebeca)\ **Post date:** [July 14, 2020, 1:34pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/111 "2020-07-14T13:34:31Z")
As of today, do you think most lead businesses still consider social aspects as part of their CSR or are they moving towards truly responsible business models (at the core)? What are the implications of this for working conditions of employees? ---
**Author:** ![Alison\_Ward](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/alison_ward/32/18143_2.png) [@Alison\_Ward](https://forum.businessfightspoverty.org/u/Alison_Ward)\ **Post date:** [July 14, 2020, 1:35pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/112 "2020-07-14T13:35:14Z")
Hi Sabine This is a great summary of the actions needed to move towards more sustainable supply chains ---
**Author:** ![Dr\_Sam\_Lacey](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/dr_sam_lacey/32/21552_2.png) [@Dr\_Sam\_Lacey](https://forum.businessfightspoverty.org/u/Dr_Sam_Lacey)\ **Post date:** [July 14, 2020, 1:35pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/113 "2020-07-14T13:35:18Z")
A1: Due to variations in local labour laws and frequently poor enforcement of those laws, **CDC requires all its investees to work towards compliance with the IFC Performance Standards, and the ILO Core Conventions,** and we support them through that process. We believe that protection for labour rights is good for business, whether that be an improved ability to attract capital or access markets. Beyond labour rights though, **CDC promotes respect for workers as the key to unlocking the real productivity gains associated with improved employee satisfaction**. Adopting an attitude of respect creates a shift in mindset of senior management. Once management stop accepting high turnover of staff as an inevitability, then you can start to explore how to invest in the workforce as part of building business value. This needs to start by opening up a two-way dialogue. Understanding why workers leave, what their concerns and aspirations are, and then acting on that. ---
**Author:** ![EleanorPaton](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/eleanorpaton/32/24497_2.png) [@EleanorPaton](https://forum.businessfightspoverty.org/u/EleanorPaton)\ **Post date:** [July 14, 2020, 1:36pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/114 "2020-07-14T13:36:07Z")
Hi, there is some interesting research identifying other factors. With particular reference to businesses engaged in supporting refugees: **Brand:** A demonstration of social purpose strengthens brand image with consumers and governments. One survey of more than 7000 diverse US consumers that analysed consumer perception of business leadership on refugees showed that business support for refugees almost always had a net positive effect on purchase intentions: [https://www.tent.org/resources/helping-refugees-helps-brands/](https://www.tent.org/resources/helping-refugees-helps-brands/) **Retention rates:** Research by the Fiscal Policy Institute and the Tent Partnership for Refugees showed that of 29 employers interviewed, **73 percent reported a higher retention rate** for refugees than for employees overall. ([https://www.tent.org/resources/good-retention-strong-recruitment/](https://www.tent.org/resources/good-retention-strong-recruitment/)) ---
**Author:** ![Dr\_Sam\_Lacey](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/dr_sam_lacey/32/21552_2.png) [@Dr\_Sam\_Lacey](https://forum.businessfightspoverty.org/u/Dr_Sam_Lacey)\ **Post date:** [July 14, 2020, 1:36pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/115 "2020-07-14T13:36:18Z")
A2: The first challenge is the shift in mindset I mentioned earlier, **to respect workers**. Even if one or two key stakeholders in a business are convinced that respect for workers is important, cascading that throughout the operations **can be a massive culture shift** , and requires people to learn to manage in ways they themselves may never have been treated. A forestry company in CDC’s portfolio ran leadership development training for supervisors to address the root cause of its high staff turnover. One of the supervisors commented after the course: _“Before Soar! I became angry quickly, but now I listen before I answer. When someone comes into my office, I stop what I am doing and give them my full attention.”_ Another said: _“The best part is planning with my workers. I include them in the process. If we don’t make our goals, it is not just them. It is all of us who haven’t met [the goals]. We learn from it. We are a team.”_ ---
**Author:** ![Dr\_Sam\_Lacey](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/dr_sam_lacey/32/21552_2.png) [@Dr\_Sam\_Lacey](https://forum.businessfightspoverty.org/u/Dr_Sam_Lacey)\ **Post date:** [July 14, 2020, 1:36pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/116 "2020-07-14T13:36:41Z")
A2: Another challenge is **understanding the workers’ perspective**. In a company that has not engaged with workers in two-way dialogue previously, workers are unlikely to speak up regarding their concerns and perspectives due to fear of retribution. You see this in companies that implement a grievance mechanism, due to a compliance requirement imposed by an external party. In a majority of cases, grievance mechanisms implemented in isolation, without a broader culture of two-way communication that builds trust between workers and management, will not work. Frequently, no grievances are reported. This suits a management team that weren’t particularly interested in listening in the first place. They can tick the box of having a grievance mechanism and happily report that they have no grievances. No grievances is a sign of a failed grievance mechanism, not of happy workers. ---
**Author:** ![AmaliaJohnsson](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/amaliajohnsson/32/24482_2.png) [@AmaliaJohnsson](https://forum.businessfightspoverty.org/u/AmaliaJohnsson)\ **Post date:** [July 14, 2020, 1:37pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/117 "2020-07-14T13:37:10Z")
I agree, that’s a good start. Although a related issue is that the surplus is often in goods that have no local market. French beans for example, which are predomonantly grown for export in for example Europe. So when the supply chain is disrupted, local farmers struggle fo offload their surplus in local markets. ---
**Author:** ![Davide\_Fiedler1](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/davide_fiedler1/32/24495_2.png) [@Davide\_Fiedler1](https://forum.businessfightspoverty.org/u/Davide_Fiedler1)\ **Post date:** [July 14, 2020, 1:37pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/118 "2020-07-14T13:37:34Z")
Agree. Nestlé once did research on the livelihoods of farmers supplying to Nestlé. They were then able to address some of these issues, but many of the challenges farmers face were/are beyond what Nestlé would be able to solve on its own (e.g. improving access to healthcare for farmers in remote rural areas). Their solution was to partner with other companies whose core business was related to the specific issues, while Nestlé would focus on the issues closest to its business. ---
**Author:** ![Dr\_Sam\_Lacey](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/dr_sam_lacey/32/21552_2.png) [@Dr\_Sam\_Lacey](https://forum.businessfightspoverty.org/u/Dr_Sam_Lacey)\ **Post date:** [July 14, 2020, 1:37pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/119 "2020-07-14T13:37:38Z")
A2: One of the most **intractable issues** is that of **out-sourcing or sub-contracting**. In some cases, there are genuine efficiency gains associated with outsourcing to a specialist provider, whilst in other cases, the “efficiency gains” come from the fact that the contractor does not follow the same labour standards, or that some of the delivery risk is being passed on. In many markets, there are minimal labour rights protections for self-employed or informal workers, so outsourcing to workers employed in this way is cheaper because there are no social security payments, no paid sick leave and wages are usually much lower, even for the same work. For investors, or brands seeking to oversee the rights of such workers, it can be extremely difficult because the company doing the outsourcing may themselves have minimal oversight over the working conditions of the contractors and sub-contractors. ---
**Author:** ![AmaliaJohnsson](https://forum.businessfightspoverty.org/user_avatar/forum.businessfightspoverty.org/amaliajohnsson/32/24482_2.png) [@AmaliaJohnsson](https://forum.businessfightspoverty.org/u/AmaliaJohnsson)\ **Post date:** [July 14, 2020, 1:37pm UTC](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708/120 "2020-07-14T13:37:53Z")
Agreed, and disproportionately the workers struggling to speak up are women. [Previous page](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708.md?page=5) [Next page](https://forum.businessfightspoverty.org/t/how-can-we-mainstream-win-win-business-models-that-work-for-lead-firms-and-workers-post-covid-19/2708.md?page=7)