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A stable macroeconomic framework, strong publicinstitutions, high investment in human capital andcontinuity in development policies explain Chile’sstrong economic and social performance over thepast years. 35 The Central Bank has conductedmonetary policy with prudence and persistent tradeliberalization has helped achieve an efficientresource allocation. According to ratingorganizations and think tanks, Chile ranks high withrespect to law and order, quality of its civil service,management of public institutions, and transparency(low levels of corruption). Public expenditures ineducation, health, housing, social security and othersocial services have increased over recent years,reaching 71 percent of total government spending in1999. Reforms introduced in the 1980s to promoteefficient delivery of social services have beenimproved and are monitored for effectiveness.Concerning the access to credit and loans, a WorldBank study (Sirtaine, 2006) stated that only largefirms have access to the entire range of financialinstruments available in Chile and abroad (capitalmarket or off-shore banks). Small size firms, on theother hand, face financing constraints and SMEshave no access to capital market financing. While inthe mid 80s and early 90s some smaller firms didmanage to issue equity, this channel has dried outdue to their depressed performance. In addition, theunder-development of private equity in Chile onlyallows a fraction of these firms to access privateequity. As for access to bank loans, banks arerapidly expanding their leasing and factoring linesof business, nearly exclusively devoted to mediumand small firms. However, both industries are still intheir infancy in terms of volumes lent.There are various obstacles to downsizing access tocapital markets and increasing the penetration ofbanks in smaller segments. The key obstacles forenabling more small and micro enterprises toaccess bank financing are: (i) the legal difficulties inusing and executing movable pledges, (ii) the lowquality and trustworthiness of the financialstatements of smaller firms, (iii) the imposition ofthe stamp tax on the renewal of small value loans,and (iv) the cap on interest rates on small loans(tasa maxima convencional) (Sirtaine, 2006). Onthe other hand, some institutions (i.e. UnitedNations Research Institute for Social Development-UNRISD) claim that economic policies in Chilehave been “fiscally permissive” in some sectors,such as the mining industry 36 (Riesco, 2005).The following chart shows competitiveness indicatorssupplied by the World Economic Forum (WEF). Alldata is from 2005 and the chart is sorted by indicatorranking. As for the general level of competitiveness,Chile is in a very good condition. The three mainobstacles for the country’s competitivenessdevelopment are: the restrictive labor regulations, thegovernment bureaucracy and the inadequatelyeducated workforce. On the other hand, other WEFsub-index rankings show a good situation in Chile forthe development of its competitiveness.35 Although since 1817, Chile's war of independence from Spain brought into place a system of representative democracy, the country'spolitical history has not always been smooth. In 1970, a Marxist government under Salvador Allende came to power in response to theperceived failure of the established liberal party. Allende's attempts to radically change the structure and direction of the countrybrought about a second political crisis, and in 1973 a right-wing government under General Augusto Pinochet Ugarte seized power withassistance from the United States Central Intelligence Agency. Allende was killed in the coup, and Pinochet's government maintainedpower for the next decade and a half, frequently resorting to terror in order to stifle discontent. In 1990, having failed in his bid to gainpopular ratification for his rule, Pinochet handed over the presidency to the rightfully- elected Patricio Aylwin Azocar. Chile's politicalclimate has since remained stable, although there is still considerable tension between the military and the government concerning thehuman rights violations of the Pinochet era (wikipedia 2006). The last presidential and congressional elections were held in December2005 and January 2006. Michelle Bachelet won that presidential election and took office on March 11, 2006.36 As a result overproduction has been encouraged (almost 40 percent of the world copper production is from Chile) and world copperprices remained low, damaging employment in the mining sector locally and internationally and harming government revenues. Somemining companies in Chile claim to act responsibly48 Recommended actions to foster the adoption of Corporate Social Responsibility (CSR) practices in Small and Medium Enterprises (SMEs)
OrganizationWEFIndexNumber of Countriesin the IndexChile’s RankingIntensity of localcompetition 117 7WEF Technological readiness 117 26WEF Global Competitiveness 11727 (1 out of 21 inLatin America)WEFTime required to start abusiness 117 31WEF Local equity market access 117 33WEFEfficiency of legalframework 117 35WEFNumber of proceduresrequired to start a business 117 37WEF Capacity for innovation 117 40WEFUniversity/industry researchcollaboration 117 45WEFCompany spending onresearch and development 117 47Also, the institutional framework in Chile appears to be stable and trustworthy.OrganizationWEFIndexNumber of Countriesin the IndexChile’s RankingFavoritism in decisions ofgovernment officials 117 20WEF Public trust of politicians 117 23WEF Reliability of police services 117 27WEF Judicial independence 117 47Transparency International Corruption Perception 159 21Chile49
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Recommended actionsto foster the ad
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Recommended actionsto foster the ad
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 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 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
Page 73 and 74: Chapter 4: Colombia1 Executive Summ
Page 75 and 76: In addition, corruption is a widely
Page 77 and 78: CSR area significancesupply chain m
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
Page 89 and 90: APPENDIX 1 - COLOMBIAN STAKEHOLDER
Page 91 and 92: Chapter 5: El Salvador1 Executive S
Page 93 and 94: 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) ‘
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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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