A new approach to fight poverty and vulnerability: The redistributive enterprise

AuthorFabio Daneri
PositionUniversity of New York Tirana
IIPCCL Publishing, Tirana-Albania
Academic Journal of Business, Administration, Law and Social Sciences Vol. 1 No. 3
November 2015
ISSN 2410-3918
Acces online at www.iipccl.org
A new approach to fight poverty and vulnerability:
The redistributive enterprise
Fabio Daneri
University of New York Tirana
Corporate social responsibility (CSR) has never focused on the implementation of cash trans-
fers to vulnerable groups. The present paper intends to explore this particular option, which
can be described through an analysis of 3 different phases: the production of income, the distri-
bution of income, the choice of the vulnerable groups to be benefitted. Every phase involves
new and specific features, which are linked to a new approach in the field of corporate social
responsibility. An evaluation of advantages and disadvantages of this particular approach will
be carried out, in each of the 3 single phases, in order to be able to evaluate the consequences of
this new approach. The approach seems to be particularly promising since it can be applied to
very different categories of vulnerable groups. Still, the approach is best suited if the underly-
ing vulnerability is poverty, since the transfer of financial resources allows to fight poverty by
Keywords: Corporate social responsibility, poverty, unconditional cash transfers, vulnerabil-
ity, homeless.
This paper intends to identify and discuss a new model of corporate social
responsibility, which can contribute to the reduction of the growing disparities in
income distribution which can be found in almost any society today. The level of
inequality is in fact rising both inside and across countries, according to data and
information provided by qualified sources1. According to mainstream economic theory,
inequality can represent a hindrance to economic growth, besides being a problem
for social cohesion.
This new type of corporate social responsibility can be considered the feature that
gives birth to a new kind of enterprise, which I named “redistributive enterprise”. Its
peculiar characteristic is that the enterprise transfers part of its profits directly to
vulnerable groups. If the redistributive enterprise sell its goods and services to richer
people, that is to say if the enterprise does not sell its products and services to
vulnerable groups themselves, it will play a redistributive role in the society, by
allocating financial resources from one group of the society to another, from richer
people to vulnerable groups.
In a first instance, three aspects can be analyzed for the redistributive enterprise: the
production of income, the effective way to transfer profits, the selection of vulnerable
1 For a good analysis of the evolution of income inequality in the last centuries, an excellent reference is “Capital
in the 21st Century” by Thomas Piketty.

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