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Writer's pictureLev Mikulitski

Breaking the Chains of Poverty: How Companies Can Lead the Way to SDG 1.

This is the first and one of the most ambitious goals outlined in the United Nations Sustainable Development Goals (SDGs). It's a call to action for everyone—governments, individuals, and businesses—to take responsibility in addressing the deep, structural inequalities that contribute to poverty. And the role of businesses, in this case, is pivotal—not just in avoiding harm, but in creating transformative, positive change.



We’re at a crossroads, where the conversation is shifting. It's no longer enough for companies to just be present in a community or provide jobs. True contribution to SDG 1—ending poverty—requires a deeper commitment: making a positive impact while also ensuring no harm is done.


Let’s start with the basics. The first contribution of companies is to avoid negative impacts on human rights. This may sound simple, but in practice, it’s often overlooked. We’ve all seen businesses unintentionally—or sometimes, intentionally—contributing to the poverty cycle. Whether it’s polluting local resources, exploiting workers, or undervaluing labor, these practices lock people into poverty, even as companies thrive.

SDG 1 - sdgs.un.org

For example, it’s no longer acceptable for businesses to allow their supply chains to pay workers poverty wages, especially when these wages don’t even cover basic needs like food, housing, and healthcare. And yet, this is the reality for millions of workers worldwide. Even in wealthy nations like the US and across Europe, the issue of low wages and the gig economy keeps people in the poverty trap.


But here’s the shift we need to make. Companies can and should act. By aligning their operations with SDG 1, businesses can play an active, positive role in breaking this cycle. This isn’t just about compliance with minimum wage laws—this is about paying a living wage to workers, both within a company’s direct employment and across their supply chain.


A living wage means more than just the bare minimum. It’s a wage that provides for the basic needs of a worker and their family—healthcare, education, shelter. It ensures that workers can live with dignity. In fact, this right is outlined in the Universal Declaration of Human Rights of 1948. Yet, around the globe, from developing countries to the heart of the West, many workers—even with two or three jobs—are still unable to make ends meet.


But here’s where we, as business leaders, have an opportunity to make a massive difference. The fashion industry, electronics companies, supermarkets, and countless others hold immense power to influence their supply chains. By committing to paying living wages, companies can create an enormous ripple effect, improving the lives of workers everywhere.


Imagine this: If large corporations made it a point to require their suppliers to pay living wages, that would not only improve the lives of workers but boost the entire local economy. It would build a more sustainable and equitable world.


Now, I know what you might be thinking: How do we assess a living wage? How do we implement it across the board? Who should shoulder the cost? The truth is, while it’s not a simple task, it is one that’s entirely within our grasp. Through collaboration, innovative partnerships, and a deep commitment to doing what’s right, businesses can drive this change.


As we strive to achieve SDG 1, I challenge you to look at your own operations. How can you raise the bar for wages across your supply chains? How can you start a new conversation with your suppliers to ensure their workers are paid fairly?


Remember, ending poverty isn’t just about charity. It’s about creating systems that ensure sustainable, long-term progress for everyone. It’s about acting with purpose and leading with vision. By embracing this mindset, we can help break the chains of poverty and create a future where prosperity is shared by all.


We are the change-makers. Let’s make that change, together.

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