In a global landscape characterized by ever-increasing inequality gaps – widened even further by the pandemic and high inflation – companies are now in a pivotal position to help reduce these differences. This is the situation addressed by the Esade - SERES Foundation Lecture Series in the webinar entitled “How businesses and their practices can help reduce inequalities.”

Ana Sainz, director general of the SERES Foundation, welcomed the speakers and opened the conference: “The world is changing, and great challenges lie ahead. The global backdrop obliges us to address issues such as inequality, geopolitical tensions, gaps in employment, talent, gender and education, and soaring numbers of vulnerable and impoverished families which already account for some 8.6% according to the World Bank. Business is a key agent in reducing social inequalities and gaps, and enhancing society. This is why here at the SERES Foundation we drive corporate change in order to integrate the response to social challenges into business strategy, thus making companies more competitive and society more robust.”

Ignasi Carreras, head of NGO-NPO management training programs at the Esade Institute for Social Innovation, provided data from Oxfam Intermón, e.g. “In 2019, the richest 1% of the world’s population generated the same amount of carbon emissions as the poorest two-thirds of humanity” and “4.8 billion people are now poorer than before the pandemic.”

Closing the inequality gap

During the session, the speakers analyzed the mechanisms companies can use to combat inequalities, ranging from contractual and salary policies to people management. They also examined the impact of business practices on society and discussed issues such as taxation and investment with a view to pinpointing how companies can actively help reduce social inequalities and gaps.

Susana Gato, Head of Corporate Responsibility at Atresmedia and deputy director of the Atresmedia Foundation, emphasized the impact of the media on social change. “Here at Atresmedia, we know we can raise awareness and change society through the content we broadcast on our channels. So we provide a lot of coverage for the major social, economic and gender inequalities that still exist and we collaborate with many NGOs working to reduce them, including Banc dels Alimentos, Mans Unides, Comité de Emergencia, Hogar Sí, etc., by giving them visibility in our media, acting as a loudspeaker for their causes and raising funds for some of them.”

Nerea Basterra, head of Private Sector and Inequality at Oxfam Intermón, highlighted the challenges facing companies and the path they must focus on. “It’s essential for companies to move towards business and corporate governance models that safeguard their own economic, social and environmental sustainability and that of their operating landscape, balancing the distribution of value amongst stakeholders rather than concentrating just on maximizing financial returns for shareholders.”

One point mentioned several times during the conference was the importance of looking after the entire value chain. “One essential contribution that companies can make to reducing inequalities is to prioritize employees and ensure stable, well-paid, quality employment for both their staff and the subcontractors of the business group in Spain and the whole length of the value chain”, said Basterra.

In his speech about business models, salary distribution and the economy in general, Íñigo Albizuri, director of Institutional Relations at Mondragón Corporación, pointed out that “wealth distribution is mentioned in relation to reducing inequalities. However, at Mondragón we believe that if wealth is distributed properly from the outset, less will have to be redistributed later.” In this respect he outlined his salary model. “We have a salary scale of 1 to 6. Hence regions with more cooperative ventures, such as Gipuzkoa, obtain better results on the Gini inequality index.”