Recommended actions to foster the adoption of Corporate Social ...

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acronymsCDMCSRECFLAFSCGDPGHGGRIHRWIDBIEAISOMDIsMIFNGOsOH SASSAISMEsTNCsUNESCOUNDPUNFCCCUNGCUNICEFUNIDOUNRISDWBCSDWEFWHOWRIClean Development MechanismCorporate Social ResponsibilityEuropean CommissionFair Labor AssociationForest Stewardship CouncilGross Domestic ProductGreen House GasGlobal Reporting InitiativeHuman Rights WatchInter-American Development BankInternational Energy AgencyInternational Organization for StandardizationMultilateral Development InstitutionsMultilateral Investment FundNongovernmental OrganizationsOccupation Health and Safety Assessment SeriesSocial Accountability InternationalSmall and Medium EnterprisesTransnational CorporationsUnited Nation Educational Scientific and Cultural OrganizationUnited Nations Development ProgramUnited Nations Framework Convention on Climate ChangeUnited Nations Global CompactUnited Nations Children’s FundUnited Nations Industrial Development OrganizationUnited Nations Research Institute for Social DevelopmentWorld Business Council for Sustainable DevelopmentWord Economic ForumWorld Health OrganizationWorld Research Institute2 Recommended actions to foster the adoption of Corporate Social Responsibility (CSR) practices in Small and Medium Enterprises (SMEs)
executive summary“In Latin America, 95 percent of firms are Small and Medium Enterpises (SMEs), and account forbetween 40 and 60 percent of jobs, depending on the country, and contribute 30 to 50 percent of GDP”—(Vives, Corral and Isusi, 2005)In developing countries, private enterprises have ahistory of contributing to social developmentthrough paternalistic social welfare, healthcare,housing and educational programs. Thesecontributions have been mainly fulfilled throughcharitable and religious groups. However, in recentyears the concept of Corporate Social Responsibility(CSR) has transitioned from mere philanthropy to amore systematic corporate response.It is important to recognize that approaches to CSRcreated for or by large companies, cannot be simplytransferred to small and medium sized enterprises(SMEs), as SMEs lack the power to influencegovernments, dictate standards or move acrossnational boundaries in search of lighter regulation.Many SMEs already practice a “silent” type of socialresponsibility, which refers to social andenvironmental practices that SMEs are alreadyimplementing, but they do not categorize them asCSR because they do not have access to muchinformation on the topic. SMEs generally have agreater understanding of local culture and politics,they have more links with local civil society and agreater commitment to operating in a specificgeographic area. This report also aims to help SMEsgive a voice to their “silent” social andenvironmental responsibility.It is easier for large companies to generate commercialgains from CSR activities than it is for SMEs. Forexample, large companies and global brands can:• Develop systems and economies of scale to dealwith the demands for formal monitoring andstandards.• Allocate financial and human resources todevelop relationships and partnerships withnongovernmental organizations (NGOs) andgovernments.• Outsource production and pass the costs ofimprovements down the supply chain, whilegaining a better reputation for theseimprovements.• Use CSR as the ‘human face of globalization’ toease market entry into sectors where SMEs havedominated.However, CSR can produce competitive benefits forSMEs as well. For example, CSR can help SMEs:• Gain trading relationships with TransnationalCorporations (TNCs) or companies in NorthAmerican and European markets. It is importantto point out that export-oriented CSR can onlysucceed when products and services also meetinternational standards.• Establish closer links with entities with whichthey share values, such as business associationsand multilateral organizations.• Communicate directly with consumers throughenvironmental and social labels.• Decrease operational costs throughenvironmental efficiency measures and improveproductivity and quality through bettermanagement encouraged by CSR.• Enhance relationships with their staff, suppliers,customers and government.• Find new ways to develop skills, manage risks,seize opportunities and solve problems.SMEs also have the advantage to implement certainCSR practices more easily than other enterprises,because they are generally closer to the communityin which they operate. Frequently SMEs are familyowned enterprises, so they are characterized by aExecutive Summary 3
Page 1 and 2: Recommended actionsto foster the ad
Page 3 and 4: Recommended actionsto foster the ad
Page 5 and 6: table of contentsI Acknowledgements
Page 7: Chapter 6: Mexico1 Executive Summar
Page 12 and 13: strong internal relationship, in ot
Page 14 and 15: programs that affect the private se
Page 16 and 17: Section Four - Recommended Actions
Page 18 and 19: (Technology Index, Public Instituti
Page 20 and 21: BibliographyESADE, SDA Bocconi, Nor
Page 22 and 23: The following chart shows competiti
Page 24 and 25: CSR area significanceThe following
Page 26 and 27: structured philanthropic policies,
Page 28 and 29: the private sector and to develop g
Page 30 and 31: c. Facilitating, recommended action
Page 32 and 33: BibliographyAnselmi, P. (2005) ‘L
Page 34 and 35: APPENDIX 1 - ARGENTINA’S STAKEHOL
Page 36 and 37: 28 Recommended actions to foster th
Page 38 and 39: 2 Economic and SocialFrameworkBrazi
Page 40 and 41: 3 Current State of CSRThe concept o
Page 42 and 43: micro and small companies based on
Page 44 and 45: Brazil ratified the Kyoto Protocol
Page 46 and 47: - Improve monitoring systems andenv
Page 48 and 49: e. Endorsing, recommended actions f
Page 50 and 51: Websites consultedwww.accountabilit
Page 52 and 53: APPENDIX 1 - BRAZIL’S STAKEHOLDER
Page 54 and 55: APPENDIX 1 - BRAZIL’S STAKEHOLDER
Page 56 and 57: A stable macroeconomic framework, s
Page 58 and 59: An investigation of Chile’s equit
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CSR area significanceThe following
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powerful, but are mainly involved i
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Fomento al Desarrollo Científico y
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a. Improving Promotion and Advocacy
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Websites consultedwww.accionrse.clw
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APPENDIX 1 - CHILEAN STAKEHOLDER MA
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Chapter 4: Colombia1 Executive Summ
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In addition, corruption is a widely
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CSR area significancesupply chain m
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However, market pressures, primaril
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- Sponsor a human rights campaign t
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. Improving Promotion and Advocacy,
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Websites consultedwww.accountabilit
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APPENDIX 1 - COLOMBIAN STAKEHOLDER
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APPENDIX 1 - COLOMBIAN STAKEHOLDER
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Chapter 5: El Salvador1 Executive S
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El Salvador’s competitiveness. Co
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ecome key organizations in the batt
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According to Vives, Corral and Isus
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subsequent survey, by the World Ban
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following strategies, as defined in
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4.4 Civil SocietyIn this study, civ
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Tsukamoto, M, Twose, N., (2003) ‘
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APPENDIX 1 - EL SALVADOR’S STAKEH
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Chapter 6: Mexico1 Executive Summar
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OrganizationWEFWEFWEFIndexNumber of
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there is a general confusion about
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CSR area significancemaxCSR actual
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and because of institutional voids
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- Improve monitoring systems andenv
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- Participate in the publication of
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López-Acevedo, G., (2006) ‘Mexic
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AppendixThe following stakeholder m
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APPENDIX 1 - MEXICAN STAKEHOLDER MA
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Peruvian civil society has a strong
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environment, and they have waste tr
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Not even the lack of relations and
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- Create awareness of accountabilit
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These two groups will likely implem
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Websites consultedwww.accountabilit
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APPENDIX 1 - PERUVIAN STAKEHOLDER M
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Chapter 8: Venezuela1 Executive Sum
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OrganizationWEFIndexNumber of Count
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3 Current State of CSRCSR actual po
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cooperatives and farmers 114 Unfort
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a. Mandating, recommended actions f
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BibliographyArmas, V. (1999) ‘Esp
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AppendixThe following stakeholder m
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