Market Update: Responsible Business Models for a Human Economy – Full Analysis

During the forum, we discovered that transitioning from an exploitative and extractive to a fair and regenerative private sector involves more than creating business that minimizes harm while keeping the fundaments of how business works in place. It requires committing to changing the deeper design and purpose of business.  

This means going beyond typical sustainability actions like eliminating deforestation or recycling plastic, and rather extending to the active improvement of ecosystems crucial for all life. It also entails models that prioritize people before profits. Similarly, the journey from a divisive to a distributive private sector must not end at being inclusive. This would mean moving beyond a living wage for employees, towards democratizing the ownership and governance model of business.  

In short, what we need is businesses that are essentially regenerative and fair by design. As Oxfam Novib, we recognize this need for alternatives to the shareholder-first business model and advocate for a transformation of our economic system and the role of business within it. Meanwhile on the short-term, we also believe that adapting the system as it is today without changing the game itself can lead to a more inclusive and sustainable world. We therefore support existing innovative models that optimize responsible business practices within the current economic paradigm while advocating for changing the game at the same time.

Changing the rules of the game

    
Being a social enterprise in an economy geared toward growth at all cost is not an easy job. Brave and bold impact-driven small and medium enterprises (iSMEs) attending the Responsible Business Forum proved that business models designed for the wellbeing of people and planet do “work”, even within the existing economic parameters.  

Olivia Onyemaobi, the Founder and CEO of PadUp Creations in Nigeria, exemplifies a business model dedicated to addressing period poverty and promoting women’s economic justice. As an Oxfam-supported iSME at #OxfamRBF23, PadUp produces reusable sanitary pads, combating a root cause of school absence for women and girls in rural poor areas. Olivia consciously tackles systemic barriers by hiring lower-income women, providing them with training, a living wage, childcare, and a formal uniform, fostering a sense of dignity and self-belief. To counter patriarchal norms hindering women’s access to paid work, PadUp pays community allowances for material goods like TVs, garnering respect for female workers. Community engagement officers address norms at workers’ homes. PadUp’s intentional design results in punctual, trustworthy workers, contributing to the distribution of 8.9 million reusable sanitary pads in rural communities. The business serves as a practical example of an SME actively promoting women’s economic justice, making a positive impact on women’s lives and societies.