Subject category:
Economics, Politics and Business Environment
Published by:
IE Business School
Length: 17 pages
Data source: Published sources
Abstract
Private enterprise financed by foreign capital is often the most direct and lasting route to economic development and poverty reduction for countries at the bottom of the pyramid. However, those investments and economic development also have potentially large negative effects on society and the natural environment which may or may not outweigh their benefits. If an outside investor is seeking to be socially responsible while setting in motion the dynamics of development that would alleviate poverty, how should it juggle these issues? This case presents the situation of a socially conscious private investment firm that is deciding whether or not to invest in a rose farm in Ethiopia.
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Abstract
Private enterprise financed by foreign capital is often the most direct and lasting route to economic development and poverty reduction for countries at the bottom of the pyramid. However, those investments and economic development also have potentially large negative effects on society and the natural environment which may or may not outweigh their benefits. If an outside investor is seeking to be socially responsible while setting in motion the dynamics of development that would alleviate poverty, how should it juggle these issues? This case presents the situation of a socially conscious private investment firm that is deciding whether or not to invest in a rose farm in Ethiopia.