What if Investing in Care Was One of the Best Business Decisions?

The care economy is usually approached through the lens of social development and equal opportunity, but it has direct implications for business integrity, productivity, rights and sustainability. Integrating care into organizational culture and due diligence can reduce absenteeism, increase productivity, strengthen talent retention and create better work environments for workers. 

There is also a powerful economic reason for doing so: according to estimates by the Inter-American Development Bank (IDB), in Latin America and the Caribbean, unpaid care work would be equivalent to 21% of the region's gross domestic product (GDP) if it were valued at the minimum wage. Far from being just a welfare policy, integrating care into business strategy can become a competitive advantage.

This was one of the topics addressed at the 11th Regional Business Integrity Week, organized by the Alliance for Integrity, the Paraguayan Compliance Association (APAC) and the Comptroller General of the Republic of Paraguay. The meeting brought together representatives from different sectors to analyze integrity as a factor of competitiveness and sustainable growth. The IDB provided evidence on the economic, social and business benefits of investing in care.

The event focused on five thematic areas:

1. Care as part of business integrity: In addition to its link to equal opportunity, care can be incorporated into responsible business conduct, risk management, organizational culture, and sustainability strategies. 

Lesson: When a company invests in care, it reflects its commitment to people's well-being.

2. Due diligence with a care approach: European frameworks such as the German Supply Chain Due Diligence Act (LkSG), the Corporate Sustainability Due Diligence Directive (CS3D) and the European Deforestation Regulation (EUDR) have broadened expectations on companies. Risk management in supply chains can be complemented by internal practices that promote the well-being of workers and respond to their care needs.

Lesson: Incorporating care considerations into internal practices allows due diligence to be connected to the daily experience of workers.

3. Latin America as a source of learning: Advances such as the International Labor Organization (ILO) Convention No. 156 and recent developments in the Inter-American framework on care provide relevant references and experiences for the global conversation on care. At the same time, the exchange with multinational companies, such as those that make up the Mexican-German Chamber of Commerce and Industry, offers an opportunity to identify, adapt and scale good organizational practices that facilitate the reconciliation between work and care responsibilities, co-responsibility and the well-being of workers. This two-way learning dynamic can contribute to the strengthening of care strategies in our region and help organizations respond to changes in the work and business environment. 

Lesson: Regional care expertise can provide relevant solutions for companies with international operations.

4. Public-private collaboration: The care agenda requires partnerships between governments, companies, business chambers, and development banks. The CECI en Empresa model, promoted by the Mexican Institute of Social Security (IMSS) and the Ministry of Economy of the Government of Mexico, illustrated how public-private collaboration can expand care services and generate benefits for families and businesses.

Lesson: Partnerships link well-being, productivity, and talent retention with a broader range of care services.

5. Financing and scaling: Business initiatives require sustainable financing, intersectoral articulation, and institutional innovation. Scaling infrastructure and services implies moving from isolated initiatives to replicable models with the capacity to be maintained over time.

Lesson: Good practices must be accompanied by institutional and financial conditions that allow them to be scaled up.

Thanks to the invitation of German Strategic Cooperation (GIZ Mexico), the IDB participated in an innovative dialogue in Paraguay on the intersection between business integrity and the care economy, where we provided regional evidence on the economic and social benefits of investing in care, as well as concrete experiences from Mexico and the CECI en Empresa model. 

The discussion confirmed that incorporating the care agenda into business strategies can generate value for people, companies, and society, while strengthening productivity, sustainability, competitiveness, and talent attraction and retention. We also identified challenges for its scaling, including cultural, financial, and institutional barriers, and highlighted the importance of having strategic alliances and financing mechanisms that allow care to be integrated into organizational culture and value chains.

From the IDB Group, the care agenda can build bridges between economic evidence, public policy, financing, and partnerships with the private sector. With the IDB Cares initiative, we promote investments, technical assistance, and knowledge generation aimed at:

• Strengthen the governance and financing of comprehensive care policies and systems.
• Expand the coverage and quality of services for children, seniors, and people with disabilities who require support.
• Promote social and family co-responsibility for care.

This initiative builds on the experience of more than a decade supporting countries in the region in the design and implementation of care policies, systems, and services. 

It takes advantage of lessons learned from loans, investment operations, and technical cooperations that have strengthened service delivery, promoted territorial care models, and contributed to the construction of institutional care frameworks in countries such as Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Panama, the Dominican Republic, and Uruguay.

These conversations confirmed the interest in positioning care as a key dimension of business integrity. Caring is also a matter of responsibility: with sustainability, productivity, and people's well-being. The challenge before us is to transform this vision into concrete actions and scale solutions that contribute to more responsible, resilient, and competitive organizations in Latin America and the Caribbean.

Learn more about how we advance the care agenda from the IDB in a guide on work-life balance and co-responsibility in care for companies: