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environment and conflicts in the localcommunity. These conflicts usually relate tothe community’s frustrated expectations ofemployment, as the oil companies are unableto utilize local labor force due to the low levelsof education. This could be overcome throughdialogue, training and capacity building. Forexample, the VenAmCham’s 106 Social AllianceCommittee launched a corporate responsibilityproject directed at the people living aroundthe Jusepin facilities. This project has the aimof creating sustainable agricultural activitiesin the community and restoring theagricultural tradition to alleviate thetense situation in the area.Vives, Corral and Isusi (2005) illustrate thatthe informal economy is a major problem formicro enterprises, as only 4 percent of microenterprises are registered with an officialinstitution such as the National IntegratedService of Customs and Tax Administration(Servicio Nacional Integrado deAdministración Aduanera y Tributaria) orthe Venezuelan Institute of Social Security(Instituto Venezolano de los Seguros Sociales).Only 20 percent of registered Venezuelanenterprises are SMEs, and they employ 20percent of the labor force. Most of theseregistered SMEs are in the trade and servicesectors and only 2 percent of them areexporting companies. In Venezuela,unemployment counts for 15.1 percentof the total labor force and informalemployment represents 36.6 percent ofthe GNP (Schneider, 2002).Observatorio Pyme 107 estimated that thereare about 480,000 enterprises in Venezuelaof which 98 percent are micro enterprisesand SMEs. It also pointed out that in the lastfew years SMEs have had to cope with areduction of productivity, an increase ofinformality (the informal economy isapproximately 55 percent of the totaleconomy), and limited access to informationand communication technologies – 88.4percent of them are not connected to theinternet (CEATPRO, 2004).The difficult economic situation is perceivedby SMEs as the major obstacle for CSRimplementation. In 2004, Fundes 108 conducteda survey of Venezuelan SMEs and noted thatonly 36 percent of the interviewed SMEscomply with labor legislation, 26 percentcomply with social security and 41 percentcomply with workers’ contract legislation.SMEs are also characterized by temporaryemployment.The following chart shows competitivenessindicators, mostly supplied by the WorldEconomic Forum (WEF). All data is from 2005and the chart is sorted by indicator ranking. Ascan be seen in the chart below, Venezuelaperforms poorly regarding market efficiency.Policy instability is considered the greatestproblem for Venezuela’s competitiveness.106 VenAmCham is the Venezuelan – American Chamber of Commerce and Industry107 Observatorio PYME is a study of small and medium enterprises in Venezuela as wel as the new Information and CommunicationTechnologies developed by a group of professionals from the Central University of Venezuela. The study reaches the complete country.108 FUNDES is a regional NGO with offices in different countries in Latin America that promotes the development of small and mediumenterprises. www.fundes.org138 Recommended actions to foster the adoption of Corporate Social Responsibility (CSR) practices in Small and Medium Enterprises (SMEs)
OrganizationWEFIndexNumber of Countriesin the IndexVenezuela’s RankingPrivate sector employmentof women 117 20WEF Technological readiness 117 37WEFExtent and effectof taxation 117 55WEFUniversity/industry researchcollaboration 117 63WEFNumber of proceduresrequired to start a business 117 84WEFGlobalCompetitiveness index 11784 (13 out of 21in Latin America)WEF Quality local suppliers 117 92WEF Ethical behavior of firms 117 98Time required toWEFstart a business 117 101WEF Capacity for innovation 117 102WEF Quantity of local suppliers 117 104WEF Organized crime 117 104WEF Educational system 117 105WEF Public institutions 117 106WEF Value chain presence 117 106WEF Labor-employer relations 117 110WEF Level of violence and crime 117 111WEF Public trust of politicians 117 112WEF Judicial independence 117 114WEF Inflation 117 115WEFFavoritism in decisionsof government officials 117 116WEFEfficiency of legalframework 117 117Transparency International Corruption Perception Index 159 130UNESCO Education Attainment index 166 66World Bank (2006) Ease of doing business 175 164Venezuela 139
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Recommended actionsto foster the ad
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Recommended actionsto foster the ad
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table of contentsI Acknowledgements
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Chapter 6: Mexico1 Executive Summar
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acronymsCDMCSRECFLAFSCGDPGHGGRIHRWI
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strong internal relationship, in ot
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programs that affect the private se
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Section Four - Recommended Actions
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(Technology Index, Public Instituti
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BibliographyESADE, SDA Bocconi, Nor
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The following chart shows competiti
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CSR area significanceThe following
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structured philanthropic policies,
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the private sector and to develop g
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c. Facilitating, recommended action
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BibliographyAnselmi, P. (2005) ‘L
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APPENDIX 1 - ARGENTINA’S STAKEHOL
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28 Recommended actions to foster th
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2 Economic and SocialFrameworkBrazi
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3 Current State of CSRThe concept o
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micro and small companies based on
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Brazil ratified the Kyoto Protocol
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- Improve monitoring systems andenv
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e. Endorsing, recommended actions f
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Websites consultedwww.accountabilit
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APPENDIX 1 - BRAZIL’S STAKEHOLDER
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APPENDIX 1 - BRAZIL’S STAKEHOLDER
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A stable macroeconomic framework, s
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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
Page 95 and 96: ecome key organizations in the batt
Page 97 and 98: According to Vives, Corral and Isus
Page 99 and 100: subsequent survey, by the World Ban
Page 101 and 102: following strategies, as defined in
Page 103 and 104: 4.4 Civil SocietyIn this study, civ
Page 105 and 106: Tsukamoto, M, Twose, N., (2003) ‘
Page 107 and 108: APPENDIX 1 - EL SALVADOR’S STAKEH
Page 109 and 110: Chapter 6: Mexico1 Executive Summar
Page 111 and 112: OrganizationWEFWEFWEFIndexNumber of
Page 113 and 114: there is a general confusion about
Page 115 and 116: CSR area significancemaxCSR actual
Page 117 and 118: and because of institutional voids
Page 119 and 120: - Improve monitoring systems andenv
Page 121 and 122: - Participate in the publication of
Page 123 and 124: López-Acevedo, G., (2006) ‘Mexic
Page 125 and 126: AppendixThe following stakeholder m
Page 127: APPENDIX 1 - MEXICAN STAKEHOLDER MA
Page 130 and 131: Peruvian civil society has a strong
Page 132 and 133: environment, and they have waste tr
Page 134 and 135: Not even the lack of relations and
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Page 140 and 141: Websites consultedwww.accountabilit
Page 142 and 143: APPENDIX 1 - PERUVIAN STAKEHOLDER M
Page 145: Chapter 8: Venezuela1 Executive Sum
Page 149 and 150: 3 Current State of CSRCSR actual po
Page 151 and 152: cooperatives and farmers 114 Unfort
Page 153 and 154: a. Mandating, recommended actions f
Page 155 and 156: BibliographyArmas, V. (1999) ‘Esp
Page 157: AppendixThe following stakeholder m
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