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2 Economic and SocialFrameworkBrazil faced an economic crisis in 1997-98. Oneresult of this crisis has been a heightened focus onthe human aspects of economic policies. While thisshift took place only academically at the beginning,a growing number of NGOs and socially committedcorporations began to recognize the positiveimplications of CSR (Sussdorff, 2003).As companies sought to restructure and becomemore competitive internationally, some managersrecognized the potential for using social andenvironmental initiatives as a way of reducing costs,increasing competitive advantage and managingrisks and reputation (Cappellin and Giuliani, 2004).The international repercussions of Brazil’sunfavorable business image pushed them toprioritize issues such as poverty, violence, childlabor, education and environmental protection. Inparticular, the largest firms assumed leadership,seeking to fill some of the gaps that resulted fromthe perception of a weak public sector.As the CSR agenda broadened in the 1990s and withcorporate restructuring intensifying, companiesdirected more attention inwards, and toward socialinvestments aimed at improving workers’ skills,particularly in the metallurgical, chemical, buildingand textile sectors. Social investments related toemployees had the primary goal of increasingproductivity. At the same time, such actions had thepotential to reduce problems on the shop floor suchas safety, illiteracy, poor health, absenteeism andweak identification with company goals.The level of unemployment in Brazil according to theWorld Economic Forum (2005) is 11.5 percent of thetotal labor force, and the level of informal economy isat 39.8 percent of the GNP (Schneider, 2002). SinceBrazil is a Federation of States, the states have thepotential to be powerful CSR policy makers.The following chart shows competitivenessindicators supplied by the WEF. All data is from2005 and the chart is sorted by indicator ranking.The indices below reveal a fair state for Brazil’scompetitiveness and market development.Organization Index Number of Countries in the Index Brazil’s RankingWEF Local supplier quantity 19 117 27Company spending onWEFresearch and development 117 29WEF Capacity for innovation 117 32WEF Local supplier quality 117 36WEFQuality of scientific researchinstitutions 117 39WEFUniversity/industry researchcollaboration 117 40WEF Ethical behavior of firms 117 51Strength of auditing andWEFaccounting standards 117 62WEF Global Competitiveness Index 117 65 (4 out of 21 in Latin America)19 Indicates that Brazilian suppliers are ready to be an important part of larger firm (multinational and transnational companiesincluded) supply chains.30 Recommended actions to foster the adoption of Corporate Social Responsibility (CSR) practices in Small and Medium Enterprises (SMEs)
However, Brazil does not rank high in all categories.Like many other Latin American countries, Brazilsuffers from various forms of corruption andunethical behaviors in both public and privateinstitutions. Even though the level of corruption isperceived as unsustainable by civil society 20 , it hasbeen evaluated at more favorable levels than manyother Latin American countries by several researchinstitutes. Additional rankings illustrate a lack ofsecurity and market efficiency.In Brazil, the equal opportunities situation isdivided. Educational development and reduction ofchild labor has been successful. However, otherfactors such as employment of women and healthand safety must be improved.OrganizationWEFIndexNumber of Countries in theIndexBrazil’s RankingFavoritism in decisions ofgovernment officials 117 69WEF Judicial independence 117 72Efficiency of legalWEFframework 117 74WEF Hiring and firing practices 117 89Extent and effect ofWEFtaxation 117 90WEF Public trust of politicians 117 93WEF Organized crime 117 99WEFNumber of proceduresrequired to start a business 117 102WEFTime required to start abusiness 117 104WEFBusiness costs of crime andviolence 117 107Transparency International Corruption Perception 158 62OrganizationIndexNumber of Countriesin the IndexBrazil’s RankingInternational LaborOrganization (ILO) 21 Child labor 191 28UNESCO 2005 AND UNDP2005 22 Educational attainmentindex 166 55WEFPrivate sector employmentof women 117 85ILO 23 Health and safety 187 14820 For example, on the 16th of August 2005 some 10,000 to 15,000 Brazilian students and trade union members marched againstcorruption (BBC News).21 "The end of child labor: Within reach", 2005, shows that the actual number of child laborers worldwide fell by 11 percent between2000 and 2004, that is from 246 million to 218 million. www.maplecroft.com22 Idem23 Available on www.maplecroft.comBrazil31
Page 1 and 2: Recommended actionsto foster the ad
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Page 5 and 6: table of contentsI Acknowledgements
Page 7: Chapter 6: Mexico1 Executive Summar
Page 10 and 11: acronymsCDMCSRECFLAFSCGDPGHGGRIHRWI
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 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
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Page 56 and 57: A stable macroeconomic framework, s
Page 58 and 59: An investigation of Chile’s equit
Page 60 and 61: CSR area significanceThe following
Page 62 and 63: powerful, but are mainly involved i
Page 64 and 65: Fomento al Desarrollo Científico y
Page 66 and 67: a. Improving Promotion and Advocacy
Page 68 and 69: Websites consultedwww.accionrse.clw
Page 70 and 71: APPENDIX 1 - CHILEAN STAKEHOLDER MA
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Page 75 and 76: In addition, corruption is a widely
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Page 79 and 80: However, market pressures, primaril
Page 81 and 82: - Sponsor a human rights campaign t
Page 83 and 84: . Improving Promotion and Advocacy,
Page 85 and 86: Websites consultedwww.accountabilit
Page 87 and 88: 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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