UNIT 4

Theories of Sustainability
 Social Capital Theory:
 Social capital theory (SCT) was first defined by Bourdieu (1985) as “the aggregate of
the actual or potential resources which are linked to possession of a durable network
of more or less institutionalized relationships of mutual acquaintance or recognition”.
Its basic premise is that a network provides value to its members by allowing them
access to the social resources that are embedded within the network.
 Social Capital Theory’, which suggests that positive changes occur when social
relationships within communities are benevolent.
 In general, social capital can be broken down into two elements: (a) the social
relationship itself, which allows individuals to claim access to resources possessed by
their associates, and (b) the amount and quality of those resources
 https://www.sciencedirect.com/topics/social-sciences/social-capital-
theory#:~:text=Social%20capital%20thus%20comprises%20both,people%20have%2
0at%20their%20disposal.%E2%80%9D
Bottom of the Pyramid
Bottom of the Pyramid:
https://people.eecs.berkeley.edu/~brewer/ict4b/Fortune-BoP.pdf
 The bottom of the pyramid, the bottom of the wealth pyramid or the bottom of the
income pyramid is the largest but poorest socio-economic group.
 They are referred as the Base of the pyramid or first BOP bottom of the people living
 CK Prahalad popularised the idea of this demographic as a profitable consumer base
in his 2004 book The Fortune at the Bottom of the Pyramid, written alongside Stuart
Hart.
 Consumers are ready to accept the product, and now marketers go to meet their
needs profitably.
 The challenge here is not providing cheap products but also providing value-for-
money products.
 Solution to 4’s- Introduction, Infrastructure, Innovation, Improvement.
 Businesses, govt and donor agencies stop thinking of the poor as victims.
 BOP mass are resilient and creative entrepreneurs as well as value demanding
consumers.
 The poor of today are the middle class of tomorrow.
 This was first used by US President Franklin Roosevelt in 1932.
 People develop new models of doing business that deliberately target the
poorest region.
 Innovative sustainable and scalable business models could later to the needs of
the world’s poor.
1. Targeted Marketing Opportunity:
BOP they are under utilizing products
Cell phones and mobile device
Sell the products and how they improve their life.
2. Product design:
3.Expanding distribution: that lack cold storage, frozen diary
Using refrigerated bicycles
Products development and innovation
Godrej-portable refrigerator
4. Market Expansion: local community members to actbasb community liaisans and
to manage the programs created a self sustainabiltiysystem lending and borrowing
without collateral (Bangladesh rural advance committee)
1970- Grameen bank -Muhammad yunus 2006 Noble peace prize.
BRAC transforming rural bangladesh
Founded by Magsaysay winner Fazel Hasan Abed
whatever sort of aid did not reach into the remote village
Healthcare and reduced child mortality
Create employment income for the rural poor
 Humanistic sustainability theory:
 https://old.amu.ac.in/emp/studym/100000336.pdf
 Maslow’s theory of motivation postulates that
people are continuously in a motivational state.
 Human beings have five classes of basic needs
which organize themselves in a hierarchy according
to their prepotency. As one need is relatively
satisfied, the next higher need in the hierarchy
becomes a motivator and so on.
 Physiological need
 Safety need
 belongingness and love need
 Esteem need
 Self-actualization need
Social economic theory:
 Social economic theories focus on how the economy affects societal patterns in
terms of progression or regression of the society. Social economics consider the
interconnectedness of economics and social behaviors, it examines how social norms
and beliefs affect consumer behaviour and in extension, their buying trends.
 A socioeconomic class comprises of individuals or families that possess similar
economic characteristics.
 There are three socioeconomic classes that individuals or families can fall into, these
are;
 high socioeconomic class, middle socioeconomic class, low socioeconomic class
 Also, there are three variables used in evaluating which socioeconomic class an
individual belongs to, these are the level of education, type of profession/occupation
and income of the individual. Ethnic background and family heritage are also
variables assessed in certain cases.
 The socioeconomic status of individuals in a society have great impacts on their
perceptions of opportunities, their attitudes and economic behaviors. For instance,
individuals in high socioeconomic class are believed to have higher education,
qualifications and greater opportunity than those in the middle social class.
 Individuals in the middle social class also have an advantage over others in the low
socioeconomic class. Therefore, the socioeconomic status of individuals pay a
major role in the opportunities they seek, their career or educational pursuits as
well as their potential spending power.
 Eg: In reality, children or individuals that come from low-income families have
restricted access to education, career growth and other economic opportunities
unlike those from middle or high-income families. For example, children from
middle or high-income families are exposed to more benefits than their
counterparts from the low-income families.
 https://thebusinessprofessor.com/en_US/economic-analysis-monetary-
policy/social-economics-definition
CSR and Sustainability:
 CSR- Corporate Social Responsibility is a management concept whereby companies
integrate social and environmental concerns in their business operations and
interactions with their stakeholders.
 According to UN, sustainability as “meeting the needs of the present without
compromising the ability of future generations to meet their own needs.”
 Sustainability reminds us there’s another way of doing things. We can progress as a
society while caring for the environment, seeking social justice and creating
economic value.
 CSR often targets opinion formers such as the media, politicians, and pressure groups,
and focuses on balancing current stakeholder interests. Corporate sustainability takes
a more holistic approach, considering the social impacts from business alongside the
environment and economy.
 https://www.srccgbo.edu.in/pdf/57e8944904874ed0e23f6252ac4edc0d.pdf
 https://daneshyari.com/article/preview/5482346.pdf
 https://www.linkedin.com/pulse/relation-between-csr-sustainability-ahmed-mewafi-
mba/