Executive Summary
An estimated 4.5 billion people in developing countries
live at the base of the pyramid (BOP), surviving on lowincomes and lacking access to goods, services, and economicopportunities. Workers at the base of the pyramid are often
engaged in informal work or in low-skill jobs with limited earningpotential, social protection, or opportunities for career andeconomic advancement.
Workers at the base of the pyramid face multiple barriers that
impede access to quality employment. These barriers include
limited education or skills, lack of a formal employment record,discrimination, and stigma, as well as legal or administrative
barriers to employment. These barriers are more prevalent for
informal workers, who have uncertain and volatile incomes, do
not enjoy basic labor entitlements and protections, and often lackaccess to social benefits and safety nets offered by the state.
The COVID-19 pandemic created significant economic
challenges for low-income households globally. As a result of
the pandemic, 90 million more people fell below the threshold ofextreme poverty in 2022. Labor markets faced disruptions thatsignificantly affected the livelihoods of workers at the base of
the pyramid, especially in the informal sector, where 58 percent
of employed women work.
Employers and investors can help expand access to better
employment and self-employment opportunities at the baseof the pyramid through the strategic adoption or promotionof inclusive employment practices. Inclusive employment
is defined as practices that advance the quality of jobs andbetter livelihood opportunities for employees and informalworkers at the base of the pyramid in emerging markets. These
practices enhance the participation, advancement, resilience,and empowerment of workers, with the goal of improving their
quality of work and well-being.
This report seeks to build and demonstrate the evidence forthe business case for inclusive employment and emerging
good practices that companies and investors can implement
to support workers at the base of the pyramid. Research isbased on a review of existing literature as well as interviews
conducted with thought leaders and investors. It also features
13 case studies of companies in manufacturing, agribusiness andagri-processing, services & the gig economy, waste management,
and retail & distribution, operating in markets across Latin
America, South Asia, East Asia, the Pacific, and Africa.

The Business Case for Inclusive
Employment
Access to labor: Reducing barriers to work at
the base of the pyramid enables companies toincrease their access to labor and thereby address
labor shortages and skills gaps, boost recruitment
outcomes, and reduce hiring costs.

Human capital performance: Investments in thewellbeing of workers and in upskilling workers at thebase of the pyramid are linked to lower absenteeism,
better staff retention, and higher productivity.

Supply chain resilience: Companies can build more
resilient and scalable supply chains by integrating
workers at the base of the pyramid, empowering
them, and boosting their incomes and resilience.

Access to markets: Inclusive employment helps
companies to distinguish their brand, to motivate,
and to equip workers to provide higher quality
services, and enables companies to access new
customer markets.

Access to investment capital: Companies candemonstrate their commitment to environmental,social, and governance (ESG) impact through labor
practices and standards, enabling them to accessnew sources of investment capital.

Demonstrating corporate values: Inclusive
employment can help companies fulfill corporatesocial commitments in ways that add business value.

Reputation & risk management: Companies cangenerate goodwill and a ‘social license to operate’,
while mitigating risks from business activities
involving base of the pyramid communities.

Inclusive Employment Practices
This report identifies good inclusive employment practices that companies can implement to increase the participation of workers atthe base of the pyramid, promote their professional advancement, build their resilience, and enable their empowerment.

PARTICIPATIONTo reduce barriers that prevent workers at the base of thepyramid from obtaining quality employment, companies canadopt practices that:•Target recruitment through outreach to base of the pyramid
workers and leverage partnerships with organizations thatrepresent these workers.

•RESILIENCE
As workers at the base of the pyramid often have volatileincomes and limited access to social protections, companies
can help them to build financial and personal resilience throughpractices that:•and health services, among others.

Ensure worker safety through investments in the physicalenvironment and provide protective equipment and safety•training programs.
••

Facilitate access to finance and financial literacy byoffering credit and savings schemes directly or throughpartnerships with financial intermediaries.

Address discrimination, stigma, and harassment throughrobust implementation of policies and training programs.

Improve access to benefits, including pensions, insurance,•Enhance job and income security through minimum

Reduce entry and retention barriers by supporting workers’

working hours, and formal or permanent employment foraccess to transportation, childcare, or housing, for example, andinterested workers.

by lowering up-front capital costs for informal entrepreneurs.

EMPOWERMENTADVANCEMENT
As workers at the base of the pyramid have limited opportunities
to develop skills and to advance to higher-paying employment,
companies can support them with practices that:•

Offer fair pay through regular wage reviews and updates,
especially for the lowest earners.

•Upskill workers and provide support to adapt toWorkers at the base of the pyramid often face stigma,discrimination, and exploitation from more powerful economic
actors. Companies can introduce practices that empower themto exert greater influence over their work and to defend anddetermine their interests, for example:•Support worker representation and worker-management
dialogue by engaging proactively with workers and worker
associations, including trade unions.

•Provide effective
channels.

•Support self-organization of informal workers throughdevelopment and capacity building of cooperatives.

•Provide fair and clear terms of work and paymenttransparency.

•Recognize the value of work done by individuals at thetechnological or operational changes.
•Support leadership and career development throughmentoring and leadership training programs.

•Build capacity for self-employment, such as providing
inputs and training to improve earnings.

communications

andbase of the pyramid and raise public awareness.

grievance

There are several key steps companies can take to inform orcomplement the inclusive employment practices outlined above.
The following actions will help to ensure inclusive employment
practices are well targeted and that they deliver lasting benefits
for workers and businesses too.
Diagnose the needs of workers and the business
Map out or identify how the business engages with the base of
the pyramid in work, including the direct workforce, informal
workers, and supply chain workers, and then work with themand relevant organizations to understand how furthering theirskills and capabilities can support business needs.
Measure results for businesses and workers
Improve data collection and measurement frameworks andtrack the progress and impact of practices on workers and on
the business. Leverage technology and digital tools to supportand measure inclusive employment practices.
Amplify impact through partners
Encourage, incentivize, and support suppliers and service providers
that employ workers at the base of the pyramid in corporate
value chains to help them adopt inclusive employment practices.
Create partnerships that advance work opportunities for thebase of the pyramid, including with governments, trade unions,worker organizations or cooperatives, industry associations, andtechnical assistance partners. Consider opportunities to raisefinancing via instruments such as sustainability-linked bonds andother innovative financing structures with a designated use ofproceeds aiming to benefit workers at the base of the pyramid.

Investors & Inclusive Employment
Investors can also play an important role in improving thequality of work and livelihoods at the base of the pyramid. The
following actions enable investors to deepen the focus of theirinvestments on these workers and encourage their investees toadopt inclusive employment practices:
Define an inclusive-employment investment strategy. Define
the target workers at the base of the pyramid reached throughinvestees as direct employees, contractors, supply chain workers
and informal workers. Develop a theory of change linking theinvestment to improvements in access to, and the quality of,work for the base of the pyramid. An inclusive-employment
investment strategy can be incorporated alongside an investor’s
thematic or industry focus.

Integrate inclusive employment into investment processes.
Assess investment opportunities against negative and positive
labor screens and evaluate compliance with national laws andlabor standards during deal origination. Consider labor gapsand opportunities related to the base of the pyramid during
due diligence and set relevant monitoring and evaluation (M&E)
targets based on the investment’s theory of change. Measureprogress against these targets as part of portfolio management.
Leverage financial instruments that incentivize investees
to achieve greater impact for workers at the base of thepyramid. Investors can explore opportunities to adopt financing
instruments, such as sustainability-linked bonds, that tie financial
incentives to the achievement of inclusive employment targets.
By linking targets to relevant Sustainable Development Goals,
investors can demonstrate their impact publicly.
Identify opportunities to support investees seeking toenhance the inclusiveness of their workforce. This can bedone through technical assistance and knowledge sharing, forexample by mapping workers at the base of the pyramid ininvestees’ operations, identifying opportunities for engagement,
strengthening investees’ workforce management and M&E
systems, and facilitating opportunities for investee knowledge
sharing across the portfolio.

Call to Action
Jobs and employment are transformational for both individuals
and societies, and creating opportunities to ‘work out of poverty’is critical for sustainable economic and social development.
Quality employment for workers at the base of the pyramid not
only provides individuals with a sense of dignity and self-worth,it also strengthens community cohesion and civic participation,
while reducing public spending on welfare and social assistance.
The private sector, and investors in the private sector, play animportant role in creating inclusive employment opportunities
that both deliver benefits for businesses and strengthen incomesat the base of the pyramid and beyond.
Corporates can help expand access to better employment andself-employment opportunities at the base of the pyramidthrough the strategic adoption or promotion of practices
that enhance the participation, advancement, resilience, andempowerment of workers at the base of the pyramid, with thegoal of improving their quality of work and well-being. Investors
have an important role to play by integrating employment for thebase of the pyramid into their strategy and investment processes,incentivizing impact by companies, and by providing support suchas technical assistance and knowledge sharing among investees.