The Role of the Private Sector in Expanding Economic Opportunity through Collaborative Action

Expanding economic opportunity is arguably where firms have the greatest potential to create what Michael Porter and Mark Kramer have called "shared value," or value for both business and society.' Business activity can create jobs and entrepreneurial oppo tunities, cultivate inter-firm linkages, enable technology transfer, build human capital and physical infrastructure, generate public revenue for governments, and offer a variety of products and services to consumers and other businesses, including those operating at what has been termed the "base of the economic pyramid. "2 Each of these impacts has multiplier effects on social and economic development.' If supported by responsible bus ness practices, more inclusive business models, and financial, technical, instiMional or policy innovations, they can make major contributions to poverty reduction and serve core business interests at the same time.