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On 1st April 2025, we hosted the third workshop of the MNEDEVELOP research project at FGV Sao Paulo (as shared on LinkedIn). The event brought together stakeholders who had participated in interviews, including representatives from multinational companies (headquartered in Europe with subsidiaries in Brazil and Colombia), NGOs, community leaders, social entrepreneurs, and others. Together we engaged in a rich exchange of experiences and learning.

During the workshop, we discussed the motivations and mechanisms that underpin the interactions between multinationals and communities, and the outcomes of this interaction both for multinationals and vulnerable populations, as well as for MNE’s partners (such as NGOs and community enterprises) and society as a whole. Some of the key points discussed are outlined below:

Motivations: regulation such as compliance with national environmental laws or requirements for companies to employ a certain proportion of specific vulnerable populations, COVID-19 and increased concern for social issues by stakeholders which led MNEs to support vulnerable populations during the pandemic (e.g. in-kind donations such as hygiene products and food baskets), global sustainability strategies (e.g., increasing recycling rates), corporate values reflecting ethical business practices and commitment to social impact, external pressures from NGOs and activists to address societal issues, and commitments made in global forums such as UN Sustainable Development Goals.

Mechanisms: donations (e.g., financial contributions to local schools and NGOs), sponsorship (e.g. sponsoring local sports teams), training and education related to employment (e.g., workshops on digital skills), HR policies that promote fair labour practices, diversity, and inclusion within the company or employee volunteering projects targeting vulnerable populations, use of corporate foundations to fund and develop projects for vulnerable populations, incentive laws (tax breaks for social initiatives), tax benefits (deductions for charitable contributions), marketing strategy and integration of vulnerable populations into the supply chain and partnerships or collaborations with third parties such as NGOs and community enterprises.

• Multinationals: Social License to Operate (SLO) and legitimacy  (e.g., gaining acceptance from local authorities and vulnerable populations), innovate socially responsible products and services, competitive advantage and market share (e.g. broadening their customer base to attract socially conscious consumers), reputation and recognition that the company is socially responsible, thereby enhancing brand and corporate image and attracting and retaining employees (e.g. increasingly employees are interested in working for a company engaged in societal issues). 
• Vulnerable populations: higher wages and fair pay for local workers, increased employability through participating in apprenticeships and job training programs, promoting entrepreneurship through training in micro-entrepreneurship skills (e.g., courses on starting a business and managing business finances) and a range of psychological benefits such as increased autonomy, strengthening social identity, building self-esteem and self-confidence.
• Partners: long-term relationships with companies leading to mutual benefits, tailored initiatives for vulnerable populations’ needs, consistent resource flow, and scaling of successful programmes.
• Society: contributions to SDGs (e.g. SDG 1 Poverty reduction, SDG 10 Reduced Inequalities, SDG 12 Responsible Production and Consumption) and promoting public awareness of social and environmental issues such as recycling.

While, the preliminary results suggest that certain companies remain largely reactive (e.g., compliance to regulations) and focused on short-term initiatives (e.g., philanthropy), to foster long-lasting integration of people and impact-driven ventures from vulnerable populations into their activities, businesses must redesign their HR policies (e.g., to use inclusive hiring practices), product development (e.g., co-creating products with input from vulnerable populations), logistics (e.g., using local suppliers), and procurement of goods and services (e.g., sourcing from suppliers from vulnerable populations) to provide mutual gains for both vulnerable populations and the companies.

The study also reveals that the well-intentioned efforts of companies, including projects that seem well-designed, do not always align with the actual needs and expectations of vulnerable populations (e.g. a company might prioritise education while vulnerable populations urgently need healthcare). Consequently, the importance of collaborating with credible, well-informed partners such as NGOs and community enterprises is emphasized. NGOs not only influence the business practices of MNEs but also possess localised knowledge and social embeddedness and can assist with the implementation of projects (in terms of infrastructure and human capital) enabling MNEs to understand and more effectively address specific vulnerable populations’ needs.