With more than 700 million people worldwide living in extreme poverty—defined as surviving on less than $1.90 per day—poverty remains a pressing issue that impacts both individuals and economies on a global scale. Businesses have a unique opportunity to contribute to poverty eradication while simultaneously achieving significant benefits, including brand loyalty, sustainable growth and stronger, more resilient supply chains. Supporting poverty eradication is not only a moral imperative but also a sound business strategy that aligns with long-term corporate sustainability goals.

The Business Case for Supporting Poverty Eradication

Poverty reduction creates economic opportunities that benefit businesses in various ways. As incomes rise, more people can potentially afford goods and services, directly expanding the consumer base for companies. For instance, when businesses invest in fair wages and decent working conditions, they build a more reliable, engaged and productive workforce. Supporting poverty eradication also cultivates a positive brand reputation.

Companies actively working to reduce poverty attract consumers who value corporate responsibility, as studies reveal, consumers increasingly favor businesses aligned with social impact initiatives. Moreover, poverty eradication promotes social stability, which is essential for a thriving global economy. Poverty often correlates with social unrest, political instability and migration issues, all of which can disrupt business operations and supply chains. 

Strategies for Businesses to Support Poverty Eradication

Businesses could support poverty eradication through strategic actions focused on fair labor practices, community development and sustainable supply chains. Here are three effective strategies:

1. Ensure Decent Work Conditions. An effective way for companies to support poverty eradication is to ensure decent work conditions within their organizations and supply chains. Decent work, as defined by the International Labour Organization (ILO), includes fair wages, safe work environments and equal opportunities for all. A business that provides fair wages and adequate social protections enables its employees to achieve a higher standard of living, which lifts entire communities out of poverty.
2. Adopt Sustainable Procurement Practices. Businesses have considerable influence as buyers, particularly in sectors that rely on extensive supply chains. By adopting sustainable procurement practices, companies can prevent poverty-related issues within their supply chains. For instance, businesses can conduct human rights due diligence to identify potential poverty risks, such as child labor or exploitative wages and address them directly. Sustainable procurement also includes sourcing materials from ethical suppliers and prioritizing fair trade partners, which strengthens global supply chains and reduces poverty.
3. Invest in Community Development and Education. Investing in community development programs and education can create lasting social and economic benefits. Companies that contribute to local infrastructure, health or educational initiatives improve the overall well-being of the communities where they operate. Programs that provide skills training and resources for entrepreneurship empower individuals to generate income and establish local businesses, creating a multiplier effect that stimulates the economy and alleviates poverty.

The Global Impact

The global impact of business support for poverty eradication extends far beyond individual companies or communities. When businesses commit to poverty eradication, they contribute to several Sustainable Development Goals (SDGs), including SDG 1: No Poverty. Such commitments promote economic inclusivity, gender equality and environmental sustainability, which are essential for a balanced global economy. As businesses align with the SDGs, they drive sustainable development and support the vision of a world where no one is left behind.

Supporting poverty eradication is also critical in addressing urgent global challenges such as climate change and migration. Poverty often forces people to rely on environmentally harmful practices like deforestation and overfishing, which exacerbate climate change. Additionally, poverty-driven migration can strain resources in neighboring regions, creating humanitarian crises. By helping eradicate poverty, businesses play a role in mitigating these interconnected issues, making a significant contribution to global stability and resilience.

A Sustainable Future Built on Poverty Eradication

Supporting poverty eradication is good for business and it fosters a sustainable future where companies, communities and economies can potentially thrive. Businesses that prioritize fair labor practices, ethical sourcing and community development enhance their reputation and build a loyal consumer base while contributing to global stability. By embracing these strategies, companies play a crucial role in creating an equitable world, ensuring a positive legacy that supports economic and social progress for generations to come.

– Olivia Barker

Olivia is based in Guildford, Surrey, UK and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr