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...opportunities yielding social good in developing countries. This ideal of 'inclusive capitalism' has been popularised by C.K. Prahalad in the 'bottom of the pyramid' (BOP) discourse. Hewlett-Packard, under former CEO Carly Fiorina, embraced this concept and, supported by South African President Thabo Mbeki, launched three year public-private partnership (PPP) at the 2002 UN World Summit on Sustainable Development in Johannesburg aimed at 'creating breakthrough models of sustainable development, not altruism'. Influenced by the author's status as an IT industry insider in Africa, this narrative case study on the Mogalakwena HP i-community in Limpopo Province draws on privileged access to sources. The case examines what happened in the company's search for these 'breakthrough models' and reveals how the competing logics between business realities and development imperatives are not easily reconciled. While a single case study cannot serve to validate or discredit a development model, it can effectively expose tensions and contradictions within a model. The case suggests that the early language around the inclusive capitalism discourse emphasising unlimited business opportunities and poverty eradication through profits may set unrealistic expectations for business executives.
* United Nations Global Compact
* Inclusive capitalism
* Sustainable development
* Bottom of the pyramid
* Public-private partnership
* HP i-community
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Through the power of collective action, the Global Compact seeks to promote responsible corporate citizenship so that business can be part of the solution to the challenges of globalisation. In this way, the private sector--in partnership with other social actors-can help realize the Secretary-General's vision: a more sustainable and inclusive global economy (UN Global Compact 2006).
INCREASINGLY, MAJOR CORPORATIONS ARE BEING TARGETED TO PLAY AN ACTIVE leadership role in promoting sustainable development. Inspired by Kofi Annan's challenge to business leaders at the 1999 World Economic Forum (Annan 1999), the UN Global Compact calls on firms to engage in sustainable best practices while the United Nations Development Programme's (UNDP) Growing Sustainable Business Initiative calls for 'business-led enterprise solutions in advancement of Millennium Development Goals' (UNDP 2006).
These UN programmes promote more than just a business case for philanthropy, but the ideal that corporations can and should find win-win business opportunities in developing markets that address specific development goals as well as satisfy the commercial interests of the firm. Building on this concept, C.K. Prahalad (2004) has popularised the term 'inclusive capitalism' through his book and lecture series, The Fortune at the Bottom of the Pyramid. The world's 4 billion people living in poverty at the 'bottom of the pyramid' (BOP) are not just a vast group, but also a growing consumer group and offer a 'prodigious opportunity for the wealthiest companies--to seek their fortunes and bring prosperity to the aspiring poor' (Prahalad and Hart 2002).
As the initial 2015 deadline for achievement of the Millennium Development Goals approaches, what do we know about the social and economic returns of inclusive capitalism? How does inclusive capitalism address the competing logics of development imperatives and business realities? What happens when you attempt to marry private interests with the public good?
The Mogalakwena HP i-community in rural South Africa has received international recognition (1) as a prominent example of such an initiative. Because of its scope in terms of, inter alia, motive, public profile, investment, diverse beneficiaries, partnerships and duration, it offers a compelling case for testing the limits of the 'inclusive capitalism' ideal.
In search of 'breakthrough models of sustainable development'
The Hewlett-Packard Company (HP), under the leadership of former CEO Carly Fiorina, was one of the first companies to make a public commitment, backed by a significant financial investment, to pursue a business case for sustainable development. Fiorina, who served as CEO from 1999 to 2005, had adopted the phrase 'doing well while doing good' to describe the company's interest in profit-driven community service in her frequent speaking engagements (Fiorina 2003). He selected South Africa as one of two sites worldwide (the other in Kuppam, India) to promote its vision for developing 'breakthrough models of sustainable development'.
The Mogalakwena HP i-community project was launched by Carly Fiorina and South African President Thabo Mbeki on 3 September 2002 at the UN World Summit on Sustainable Development in Johannesburg as a three-year public-private partnership between Hewlett-Packard, the Limpopo Province and the Mogalakwena Municipality (Hewlett-Packard Company 2003). Although the HP project was not explicitly formulated as a BOP model, it participates in the discourse of inclusive capitalism. The company extensively references BOP terminology in its description of the project, suggesting that it sought to test the inclusive capitalism theories promoted by Prahalad (2004) and Hart (2005), and these authors identify HP as a participant in their own work. HP is also a signatory to the UN Global Compact, which is formulated within the framework of inclusive capitalism.
The company announced its intention was 'to work with the community and use ICT [information and communication technology] to create breakthrough models of sustainable, scalable social and economic development' and 'to be a catalyst in turning a region into a thriving, self-sustaining economic community where ... ICT ... improves literacy, job creation, income, and access to government, education and healthcare services' (Hewlett-Packard Company 2003). The company emphasised that a business case was necessary for success, and that it was driven by commercial interests to 'develop ICT solutions and delivery models specifically designed for traditionally-underserved markets' (Hewlett-Packard Company 2003).
The original project consisted of a combination of physical infrastructure and integrated programmes executed in and around Mokopane (formerly Potgietersrus), a mid-sized agricultural and mining town, in Southern Limpopo Province and the seat for Mogalakwena Municipality. The project is based in a former teachers' training college in Mahwelereng, an...
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