Chapter, which are: Mandating, Ensuringtransparency, Facilitating, Improving Promotionand Advocacy, Partnering and Endorsing. Theproposed <strong>actions</strong> are by no means exhaustive andonly illustrate <strong>the</strong> types <strong>of</strong> involvement, which canbe easily modified <strong>to</strong> meet local needs.The best <strong>to</strong>ol <strong>to</strong> stimulate CSR in Colombia would bea concerted effort <strong>to</strong> advance educationalopportunities within <strong>the</strong> country, making educationnot <strong>the</strong> privilege <strong>of</strong> a few, but <strong>the</strong> right <strong>of</strong> all. As aresult, SMEs would have access <strong>to</strong> a more skilledworkforce, allowing for enhanced wealth generationand <strong>the</strong> ability <strong>to</strong> become more involved in CSR.Additionally, leveraging education as a means <strong>of</strong>achieving social equity would serve as a fac<strong>to</strong>r forcohesion and for a better alignment <strong>of</strong> commoninterest within <strong>the</strong> community, allowing SMEs <strong>to</strong> leada united effort <strong>to</strong> address targeted social issueswithin <strong>the</strong> communities.Vergara (2005) shows that <strong>to</strong> enhance <strong>the</strong>competitiveness <strong>of</strong> SMEs and assure development in<strong>the</strong> mid- and long-term, it is necessary <strong>to</strong> create <strong>the</strong>framework and adequate conditions through (i) afinancial sec<strong>to</strong>r that is sensitive <strong>to</strong> <strong>the</strong> benefits <strong>of</strong>CSR, (ii) a conscious government that recognizesCSR as an opportunity for <strong>the</strong> improvement <strong>of</strong> anenterprise’s management, and (iii) <strong>the</strong> use <strong>of</strong> largerenterprises’ supply chains and networks. Thecountry’s textile, flower and c<strong>of</strong>fee export industrieshave incentives <strong>to</strong> adopt socially responsible policiesdue <strong>to</strong> <strong>the</strong> demand from <strong>the</strong>ir destination markets.4.1 Multilateral Development InstitutionsMDIs are already playing a crucial role in Colombia.For example, MDIs defined a series <strong>of</strong> threeprogrammatic loans 69 designed <strong>to</strong> support <strong>the</strong>Government <strong>of</strong> Colombia, aimed <strong>to</strong>: (a) streng<strong>the</strong>nsocial protection; (b) raise human capital formation;(c) increase employability; and (d) enhancemoni<strong>to</strong>ring and evaluation systems for bettertransparency, social oversight and resultsmanagement in <strong>the</strong> social sec<strong>to</strong>rs. World Bank loanshave supported a sustained effort by <strong>the</strong> ColombianGovernment <strong>to</strong> implement <strong>the</strong> social and laborstrategies defined in <strong>the</strong> 2002-2006 NationalDevelopment Plan.a. Facilitating, recommended <strong>actions</strong> for MDIsinclude:– Develop a conducive policy environment,which may facilitate private sec<strong>to</strong>r initiativesand support voluntary efforts <strong>to</strong>wardsresponsible behavior.– Pilot a project on <strong>the</strong> implementation <strong>of</strong>quality management systems in <strong>the</strong> supplychain using a chosen terri<strong>to</strong>ry or sec<strong>to</strong>r.Provide assistance <strong>to</strong> participants according <strong>to</strong><strong>the</strong> specific role <strong>the</strong>y play in <strong>the</strong> supply chain.– Promote, finance and disseminate results <strong>of</strong>training activities on health and safetymeasures in <strong>the</strong> workplace <strong>to</strong> SME managersand employees.– Promote, finance and disseminate results <strong>of</strong>training activities on environmentalmanagement system applications. Start apilot project for a chosen sec<strong>to</strong>r onenvironmental management systemsaccording <strong>to</strong> ISO 14001 at <strong>the</strong> district level.– Improve moni<strong>to</strong>ring systems andenvironmental assessments in SMEs through<strong>the</strong> development <strong>of</strong> <strong>the</strong> Life Cycle Assessmentapproach in a specific sec<strong>to</strong>r (through <strong>the</strong>supply chain).b. Improving Promotion and Advocacy,recommended <strong>actions</strong> for MDIs include:– Engage with SMEs, public authorities andcivil society in addressing and disseminatingCSR best practices.– Apply benchmarking techniques in a specificsec<strong>to</strong>r <strong>to</strong> evaluate environmental efforts anddefine best practices.69 The loan in this series were referred <strong>to</strong> as Programmatic Labor Reform and <strong>Social</strong> Structural Adjustment Loans, which is <strong>the</strong> LaborReform and <strong>Social</strong> Development Policy Loan (formerly known as <strong>the</strong> PLaRSSAL III).72 <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)
– Sponsor a human rights campaign that raisesawareness about child labor in SMEs by usingmultimedia sources <strong>to</strong> present internationaland national figures addressing child laborissues.– Facilitate employee participation in decisionmakingprocesses and promote awareness onaccountability and reporting standards suchas <strong>the</strong> Global Reporting Initiative, as well asinternational guidelines and principles suchas those <strong>of</strong> <strong>the</strong> UN Global Compact and <strong>the</strong>International Labor Organization.c. Partnering, recommended <strong>actions</strong> for MDIsinclude:– Facilitate <strong>the</strong> development <strong>of</strong> partnershipsbetween large and small sustainableenterprises and at <strong>the</strong> same time increasecapacity building for SMEs.– Form networks among SMEs <strong>to</strong> develop CSRmarketing strategies, including brands andlabels, <strong>to</strong> widen markets and increase exports.– Fund programs addressed <strong>to</strong> different ethnicgroups, which can enhance <strong>the</strong>ir inter<strong>actions</strong>,and grouping capacity, developing a commoncorporate ethical behavior.4.2 Government and Local AuthoritiesColombian Government and local authorities have afundamental role in most <strong>of</strong> <strong>the</strong> <strong>actions</strong> proposed,since <strong>the</strong> majority perceives <strong>the</strong>m as <strong>the</strong> mostreliable stakeholder.a. Mandating, recommended <strong>actions</strong> forgovernment and local authorities include:– Define standards, establish targets, enforcecompliance and moni<strong>to</strong>r activities forbusiness performance embedded within <strong>the</strong>legal framework.– Promote business registration throughsimplification <strong>of</strong> administrative andbureaucratic procedures.– Provide gender rights counseling by supportingwomen at work through direct experiencesharing. Arrange guest speakers such as leadingfemale managers, politicians and entrepreneurs.– Promote information campaigns and trainingactivities on CSR and supervise pilot projectsin <strong>the</strong> field and endorse compliance programs.– Facilitate, moni<strong>to</strong>r and legitimize corporateaccounting, governance and transparencystandards.b. Ensuring transparency, recommended <strong>actions</strong>for government and local authorities include:– Promote awareness <strong>of</strong> accountability andreporting standards such as <strong>the</strong> GlobalReporting Initiative and internationalguidelines and principles such as those <strong>of</strong> <strong>the</strong>UN Global Compact and <strong>the</strong> InternationalLabor Organization, through campaigns,conferences, workshops and publications.c. Facilitating, recommended <strong>actions</strong> forgovernment and local authorities include:– Improve energy efficiency in SMEs by workingwith district municipalities <strong>to</strong> design anawareness campaign on waste and energymanagement.– Develop team-building initiatives acrossethnic groups through municipalities orprovinces that aim <strong>to</strong> develop a commoncultural ground among different ethnic groupsworking for SMEs in certain terri<strong>to</strong>ries.d. Endorsing, recommended <strong>actions</strong> forgovernment and local authorities include:– Recognize <strong>the</strong> efforts <strong>of</strong> enterprises and rewardcompanies’ participation in CSR activities.– Promote voluntary agreements on health andsafety procedures in industrial sec<strong>to</strong>rs.– Promote environmental moni<strong>to</strong>ring,management and communication amongSMEs through voluntary agreements betweenSMEs and local public authorities.Colombia 73
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table of contentsI Acknowledgements
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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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(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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