VALUE² - Social Innovation for Business and Society
Beyond Philanthropy and Social Impact, supported by the BMW Foundation Herbert Quandt, have released a study that gives inspirations for companies to adopt the Base of the Pyramid (BOP) concept in Germany. Developed in 2002 by C. K. Prahalad, the BOP concept is a business model for companies that specifically targets the low-income population. People from the Base of the Pyramid can for example serve as customers, suppliers, or intermediaries and, by doing so, strengthen their material and social standing. The concept was originally implemented in developing countries. However, in Germany there are also more than 16 million people threatened by poverty and social exclusion.
Best practice in France proves that the BOP concept can be successfully implemented in European countries. Companies such as Danone, Renault and Schneider Electric have teamed up and started the “Action Tank Entreprise & Pauvreté” in order to support the low-income population with participatory, social and innovative solutions. This and other popular examples from abroad show that the BOP concept creates value both for the low-income population and participating companies.