2002-2006 points out that Colombian ethnic groupshave been marginalized socially, politically,economically and culturally. It also stresses that, even<strong>to</strong>day, <strong>the</strong>se communities are not able <strong>to</strong> reap <strong>the</strong>benefits <strong>of</strong> development and that <strong>the</strong>y are in a far lessfavorable situation than <strong>the</strong> rest <strong>of</strong> <strong>the</strong> Colombianpopulation. They have far higher rates <strong>of</strong> poverty,illiteracy, mortality, displacement and violence than<strong>the</strong> rest <strong>of</strong> <strong>the</strong> population. In addition, <strong>the</strong>ir socialfabric is suffering fragmentation and <strong>the</strong> developmen<strong>to</strong>f human capital amongst <strong>the</strong>se groups is weak.Colombia is divided in<strong>to</strong> two vastly differentregions: (i) one is represented by <strong>the</strong> rural areaswhere armed conflicts, drug traffic, displacedpeople, and consequent self regulation preventforms <strong>of</strong> responsible behavior beyond thosedirected <strong>to</strong>wards survival; (ii) <strong>the</strong> o<strong>the</strong>r region isgeographically connected <strong>to</strong> cities and industrialdistricts, where CSR is best known and many pilotprojects have been run. The latter is confirming <strong>the</strong>strong efforts <strong>of</strong> educated civil society, large andmedium enterprises, SMEs in exporting sec<strong>to</strong>rs,business associations and governmental institutions.3 Current State <strong>of</strong> CSRColombia is a very open country economically,focused on free trade and promotion <strong>of</strong> <strong>the</strong> privatesec<strong>to</strong>r. The current administration has improvedmacroeconomic indica<strong>to</strong>rs, increased privateinvestment and, at <strong>the</strong> same time, challengedterrorism and enhanced public security.In <strong>the</strong> short-term Colombian SMEs are not likely <strong>to</strong>become more actively involved in CSR or <strong>to</strong> lead<strong>the</strong> country on its path <strong>to</strong>ward social responsibilitybecause SME productivity is quite low and as aresult, SMEs cannot reach <strong>the</strong>ir potential. Most <strong>of</strong><strong>the</strong> Colombian SMEs are merely surviving and areunable <strong>to</strong> grow <strong>to</strong> <strong>the</strong> point <strong>of</strong> wealth generation.However, some local experts say that a primaryground for CSR among small businesses alreadyexists. For example, <strong>the</strong> <strong>Corporate</strong> <strong>Social</strong>Responsibility School for SMEs 58 was created by anSME <strong>to</strong> promote a CSR culture among o<strong>the</strong>r SMEs,improve <strong>the</strong>ir competitiveness and <strong>the</strong> quality <strong>of</strong>life through private sec<strong>to</strong>r initiatives.Colombian public authorities are working <strong>to</strong> improve<strong>the</strong> business environment, which helps improve <strong>the</strong>legal framework. In 2002, a law was passed <strong>to</strong> promotemicro and SME development. This law may contribute<strong>to</strong> CSR promotion among SMEs, since <strong>the</strong> fiveaspects <strong>of</strong> SME development in this law may beconsidered preconditions <strong>of</strong> responsible behaviors.Gutierrez, Avella, and Villar (2005) point out that <strong>the</strong>private sec<strong>to</strong>r 59 has an important role in Colombiabecause it could finance private programs <strong>to</strong> <strong>foster</strong>social responsibility and channel investments <strong>to</strong>wardCSR through <strong>the</strong> activities <strong>of</strong> non-pr<strong>of</strong>it organizations.The authors claim that in recent years many privatesec<strong>to</strong>r voluntary programs have become regulationsand thus (i) corporate activity has been praised and(ii) <strong>the</strong>ir voluntary <strong>actions</strong> and <strong>to</strong>ols becamerequired by <strong>the</strong> law. Moreover, private financing <strong>of</strong>non-governmental organizations was increased.The following figure illustrates an estimatedpositioning <strong>of</strong> each one <strong>of</strong> <strong>the</strong> CSR areas –marketplace, workplace, community andenvironment. The graph shows <strong>the</strong> significance <strong>of</strong>CSR for SMEs (vertical axis) and <strong>the</strong> CSR <strong>actions</strong>implemented by SMEs (horizontal axis) inColombia. This positioning is an approximation,developed by <strong>the</strong> authors, and it is based solely on<strong>the</strong> information utilized for <strong>the</strong> writing <strong>of</strong> this report(interviews, panel discussions and literature review).3.1 MarketplaceIn Colombia, <strong>the</strong> marketplace area <strong>of</strong> CSR isperceived by SMEs as valuable for <strong>the</strong>ir business.Their perception is that marketplace issues, such as58 The school received academic support from Universidad de los Andes, Universidad Externado de Colombia, Pontificia UniversidadJaveriana, La Universidad del Rosario and Centro Colombiano para la Responsabilidad Empresarial-CCRE (Colombian Center for<strong>Corporate</strong> Responsibility) and is part <strong>of</strong> a strategy called “benefit redistribution based upon minimal ethics.”59 According <strong>to</strong> <strong>the</strong> Confederation <strong>of</strong> Colombian Chambers <strong>of</strong> Comerce (CONFERCAMARA) <strong>the</strong>re are 431,000 micro-enterprises and 47,000small and medium-sized companies in Colombia; <strong>the</strong>y contribute 38 percent <strong>of</strong> industrial production and between 56 percent and 70percent <strong>of</strong> sales in <strong>the</strong> service and retail sec<strong>to</strong>rs, employing 70 percent and 75 percent <strong>of</strong> <strong>the</strong> labor force in <strong>the</strong>se sec<strong>to</strong>rs respectively.68 <strong>Recommended</strong> <strong>actions</strong> <strong>to</strong> <strong>foster</strong> <strong>the</strong> <strong>adoption</strong> <strong>of</strong> <strong>Corporate</strong> <strong>Social</strong> Responsibility (CSR) practices in Small and Medium Enterprises (SMEs)
CSR area significancesupply chain management, compliance, qualityassurance, good corporate governance, andmanagement capacities may affect <strong>the</strong>ircompetitiveness in <strong>the</strong> mid- <strong>to</strong> long-term. However,many SMEs still believe that ethical behaviors are notlinked <strong>to</strong> pr<strong>of</strong>itability. In general, most <strong>of</strong> <strong>the</strong> SMEsthat embrace CSR are in exporting sec<strong>to</strong>rs. Inparticular <strong>the</strong>y think that CSR issues affect SMEs’competitiveness when SMEs are part <strong>of</strong> a supplychain, which <strong>foster</strong>s better management capacitiesand may lead <strong>to</strong> increased exports if <strong>the</strong> supplychain is international.maxminCSR actual positioning in ColombiaminWPCMPECSR <strong>actions</strong> implementationmaxAccording <strong>to</strong> Vives, Corral and Isusi, (2005)Colombian SMEs, in contrast with large firms, lackeconomic resources, governance capacity,management culture, expertise and awareness aboutmanagerial <strong>to</strong>ols (i.e. social balances, CSR indica<strong>to</strong>rs,voluntary management systems and ISO standards).On <strong>the</strong> o<strong>the</strong>r hand, foreign enterprises and inves<strong>to</strong>rsoperating in Colombia demand CSR activities andassurances as prerequisites for <strong>the</strong> formation <strong>of</strong>alliances. The 2005 ISO Survey shows that <strong>the</strong>re are4,926 ISO 9001 certified enterprises in <strong>the</strong> country.Several entities have created programs for fightingcorruption in <strong>the</strong> marketplace. Among <strong>the</strong>se are: (i) <strong>the</strong>Presidential program for <strong>the</strong> fight against corruption,which is made up <strong>of</strong> four sec<strong>to</strong>rs – Inter-institutionalCoordination, Legality Culture, <strong>Social</strong> and Citizencontrol, and Regional strategy, (ii) <strong>the</strong> Chambers <strong>of</strong>Commerce, which promote items <strong>of</strong> business ethicsand anti-corruption, and provide training services <strong>to</strong>associated enterprises, (iii) Universities, which havecreated departments <strong>of</strong> <strong>Corporate</strong> <strong>Social</strong> Responsibilityand business ethics - in particular Javeriana Universitycreated ethics indica<strong>to</strong>rs for <strong>the</strong> implementation <strong>of</strong>CSR in SMEs, (iv) <strong>the</strong> Transparency Internationalchapter in Colombia (Transparencia por Colombia),which implemented a program for Business Ethics inSMEs, titled Towards Integral and Transparent SMEs 60(Rumbo Pymes Integras y Trasparentes) has beenimplemented through participative <strong>actions</strong> and hasabout 140 SMEs involved.MPWPCESMEs country positionin <strong>the</strong> Marketplace areaSMEs country positionin <strong>the</strong> Workplace areaSMEs country positionin <strong>the</strong> Community areaSMEs country positionin <strong>the</strong> Environment areaColombia has an important number <strong>of</strong> CSR bestpractices. For example, in <strong>the</strong> c<strong>of</strong>fee industry, c<strong>of</strong>feegrowers have united for purposes <strong>of</strong> exporting goods,consequently, <strong>the</strong> state created <strong>the</strong> National C<strong>of</strong>feeFund, by which all members contribute <strong>to</strong> <strong>the</strong>development <strong>of</strong> infrastructure in <strong>the</strong> c<strong>of</strong>fee region. Inaddition, <strong>the</strong> ice cream company Meals de Colombiapromotes an extensive scholastic program thatincludes public institutions in rural areas with highrates <strong>of</strong> indigenous and Afro-Colombian population.Its aim is <strong>to</strong> match businesses with schools.60 The program presents 10 modules: Guide <strong>to</strong> <strong>the</strong> program implementation, Measurement <strong>of</strong> internal ethic environment (through <strong>the</strong>use <strong>of</strong> a specific s<strong>of</strong>tware), ethic compromise, principles for <strong>the</strong> prevention <strong>of</strong> bribe, ethic leadership, training in business ethic,Streng<strong>the</strong>ning <strong>of</strong> communication channel, administration <strong>of</strong> family companies, ethic solution <strong>of</strong> conflict, and Decision taking throughan ethic sense.Colombia69
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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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