Paper short abstract:

Using 'Creating shared values' principle and promoting traditional organic crop varieties in remote rural areas, can provide win-win situation for both large companies and communities. Various cases underlines the long-term benefits of inclusive businesses promoted by large companies.

Paper long abstract:

Idea of 'creating shared values' (CSV) provides framework where-in large companies strategize for long term social good along with the economic returns. However, management principles such as resource dependency and transaction cost theory obstruct companies to enter in remote rural areas, where people lack access to income generating activities. Infrastructure gaps and lack of availability of human capital in remote areas are seen as the hindering factors for profit making opportunities. Yet, these areas are often found to be producing ecologically resilient endemic commodities which can yield good economic returns while allowing participation of community members in value-chains. If companies prepare long-term CSV strategy to facilitate organisation of small producers within the framework of inclusive business, it is possible to ensure streamlining of productions, and to achieve poverty reduction. Present paper focuses on case studies from rural India and Africa where-in large companies did reach to remote areas, analysed the strengths of 'organic' commodities produced in the regions, invested either directly or through intermediaries to organise community members and eventually managed to reduce uncertainties of production. The cases reveal how companies achieved development of new remunerative value chains by altering methods of aggregation, processing and distribution of organic produce to create win-win situation for both, community members and for companies. Overall, the author concludes with the analysis of risks and potential associated with promotion of inclusive businesses in remote areas, where-in families are involved in the production of ecologically sustainable commodities.