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

have been formed to address the supply of rawmaterials. To reach this level of organization,SMEs have to overcome the lack of confidenceand the strong individualism that characterizesthem (ITC, 2003).Regarding economic sectors, a valuable driver forfostering CSR in SMEs in Venezuela could betourism. Tourism in rural areas, the promotion ofmicro and small tourist facilities, agritourism, andresponsible tourism in certain low visibility areascould be a way to develop those poor territories,reduce conflicts (i.e. Land Reform conflicts), andenhance employment for local inhabitants. Theseprivate activities may also attract privateinvestment and donors from other governments,MDIs and international NGOs.4.1 Multilateral Development InstitutionsMDIs are currently playing a marginal role inVenezuela. However, MDIs could still participate inhelping define several strategies to encourageVenezuelan SMEs to engage in CSR activities andhelp drive social and environmental improvements.a. Facilitating, recommended actions for MDIsinclude:– Help develop a conducive policyenvironment, which may facilitate privatesector initiatives and support voluntaryefforts towards responsible behavior.– Pilot a project on the implementation ofquality management systems in the supplychain using a chosen territory or sector.Provide assistance to participants according tothe specific role they play in the supply chain.– Enhance compliance by showcasing thebeneficial results of training activities onhealth and safety programs to SME managersand employees.– Conduct an environmental regulationawareness campaign, to promote knowledgeabout environmental norms and laws. Fundmonitoring systems and environmentalassessment campaigns.b. Improving Promotion and Advocacy,recommended actions for MDIs include:– Collaborate with SMEs, public authorities andcivil society.– Sponsor a human rights campaign that raisesawareness about child labor in SMEs by usingthe media to present international andnational figures addressing the negativeconsequences of the worst forms of child labor.c. Partnering, recommended actions for MDIsinclude:– Build partnerships among large and smallenterprises that belong to similar sectors orto the same region with the goal ofincorporating more SMEs in supply chainsand increasing SMEs managerial skills.– Facilitate tourism policies that can enhancethe capability of Venezuelan micro and smallenterprises to start new businesses inagritourism in rural areas.4.2 Government and Local AuthoritiesThe Venezuelan government and local authoritiesmay have a role in some of the actions proposed,even though most of the interviewees and thepanelists claim that the government and localauthorities have a reduced role in the public sectorand need improvement in their social policies.Given the high rate of unemployment and informalemployment, mandating policies are not suggestedas the most effective policies. The public sectorusually plays a catalytic, secondary or supportingrole (Fox, Ward and Howard, 2002) and theVenezuelan public sector should work as promotersof the application of laws, drivers of CSR awarenessand definers of rules.144 Recommended actions to foster the adoption of Corporate Social Responsibility (CSR) practices in Small and Medium Enterprises (SMEs)