The Return on Investment of Social Inclusion: An Evidence Gap Analysis from Developing Countries
- Partner: USAID
- Publication Type: Brief
- Date: August 16, 2021
- Team: Erin Markel and Friederike Strub
- Recommended Citation: Markel, Erin and Friederike Strub (MarketShare Associates). The Return on Investment of Social Inclusion: An Evidence Gap Analysis from Developing Countries Washington: United States Agency for International Development (USAID) Feed the Future Market Systems and Partnerships (MSP), 2021. https://marketshareassociates.com/return-on-investment-social-inclusion-evidence-gap-analysis.
This brief analyzes the existing literature from developing countries on how firms invest in SI and measure its return on investment (ROI). It then analyzes existing evidence gaps and makes recommendations on how firms and USAID partners working in private sector engagement (PSE) and market systems development (MSD) can improve their investments and fill evidence gaps.
This brief was produced as part of MSA’s work with USAID’s Feed the Future Market Systems and Partnerships (MSP) Activity to analyze the evidence base and evidence gaps on the ROI of social inclusion (SI) strategies implemented by the private sector in developing countries. This work will be the foundation for building a business case and providing practical guidance on social inclusion strategies relevant to the private sector in developing countries to maximize the ROI while furthering the development objective of social inclusion.
Key takeaways:
- Evidence on many commonly cited SI investments (e.g., diversity in leadership) is largely limited to developed geographies.
- Three pathways to SI have an existing evidence base informing the ROI in developing country contexts: safety and gender-based violence prevention, workplace culture and benefits, and talent.
- Significant evidence gaps remain regarding the ROI of inclusion of women and other marginalized communities as suppliers and consumers.
- Following five clear recommendations at the end of the brief will enable firms and USAID PSE and MSD partners to help fill the ROI evidence gap and better inform future investments in SI.
