avina csr book 2011

8/6/2019 Avina Csr Book 2011

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In search of sustaInabIlItyt d cp si rpiii i li ami

d aVIna fdi ii


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IN SEARCH OF SUSTAINABILITY. The road of CSR in Latin America and AVINA Foundations contribution

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InDeX

Pi ................................................................................................................................................. 5exiv mm...................................................................................................................................... 7timi: csr i li ami ................................................................................................................... 10

Mdga. Focus ......................................................................................................................................... 13b. Approach ................................................................................................................................... 14c. Content structure ....................................................................................................................... 15

I. the troDDen roaD1. CSRs beginnings in Latin America .............................................................................. .............. 192. CSRs evolution in Latin America .............................................................................................. 202.1 Pillars of CSRs evolution ........................................................................................................ 202.1.1 Organizations and networks ................................................................................................. 212.1.2 Concepts ............................................................................................................................... 272.1.3 Tools ..................................................................................................................................... 312.2 Behavior changes .................................................................................................................... 362.2.1 About the changes in the private sector ..................................................... ......................... 362.2.2 About the changes in other social players .......................................................................... 42

II. aVIna founDatIons contrIbutIon1. The mission of AVINA and CSR ................................................................................................. 472. Strategies of intervention for CSRs development ................................................................... 492.1 Focus on social capital ............................................................................................................ 502.2 Focus on financing .................................................................................................................. 572.3 Contribution on the basis of the pillars of the CSR movement ....................................... ...... 602.3.1 Organizations and Networks .............................................................................................. .. 612.3.2 Concepts .............................................................................................................................. 622.3.3 Tools .................................................................................................................................... 643. AVINAs influence on CSRs evolution ............................................................... ....................... 65

III. In search of sustaInabIlIty1. How far we have reached today .................................................................................................731.1 CSRs present scenario in Latin America .................................................................... .............. 731.2 About the fields where CSR is promoted ................................................................ ................. 751.3. Development agendas: signs from initiatives with AVINAs participation .............................. 77

2. How far we can reach tomorrow ........................................................................... ..................... 812.1 The need for a new model ....................................................................................................... 812.2. A feasible road .............................. ........................................................................ .................. 82

a pi vi ............................................................................................................................................. 85

anneXesA. Interviewees ................................................................ ............................................................... 89B. Interview and poll methodology ........................................................... .................................... 93C. Timeline detail: CSR in Latin America, the 2000s ........................................... .......................... 95D. AVINAs contribution in publications ........................................................................................101

recorD DocuMents .................................................................................................................................. 103

acronyMs anD abbreVIatIons of orGanIZatIons ............................................................................... 111

In search of sustaInabIlItyt d cp si rpiii i li ami d aVIna fdi ii

aVIna fdi

Chairman: Brizio Biondi-MorraCEO: Sean McKaughanDirector of Continental Initiatives: Valdemar de Oliveira NetoCSR Program Director: Marcus FuchsCSR Team (2008-2010): Andrs Abecasis, Edgard Bermdez, Eduardo Rotela, Eulalia Pozo,Heiver Andrade, Mauren Carvajal, Pamela Ros, Paulo Rocha, Valeria Freylejer

cigProject direction: Mercedes KorinAssociate researcher: Yanina KinigsbergResearch assistant: Natalia Gimena MartnezCollaboration: Andrea Vulcano, Graciela Cereijo, Jaquelina Jimena, Mariela Strusberg

Design: Romina RomanoCover photos: Eduardo Mercovich, iStockphoto, stock.xchngTranslation into English: Jorge Reparaz

ISBN: 978-99967-632-0-5

This study is available at www.avina.net

To quote this study:AVINA Foundation and Mercedes Korin. AVINA Foundation, Buenos Aires, March, 2011.

Copyright 2011, AVINA Foundation. All rights reserved.


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PRESENTATION

PresentatIon

CSR in Latin America - The Trodden Road

When I was invited by the United Nations to call and coordinate a group of leaders from multinational

companies in preparation of the so-called the Earth Summit in Rio de Janeiro in 1992, Corporate

Social Responsibility (CSR) was hardly talked about in the world. The concept was just being forged,

although some pioneering companies were beginning to worry about the impact of economic activities

on society and the environment. Our dialogue led to the creation of the World Business Council for

Sustainable Development (WBCSD), an organization that currently has the active participation of some

two hundred companies and a network of over 50 business associations in nations on all continents.

It was from the reflection of business associations, WBCSD among others, that the concept of CSR

began to gain increasing visibility and strategic importance, both for business and for the common

good and sustainability.

I believe we can state that in the past two decades, it has become rather obvious the need for a

business view more aware of the limits of natural resources and the demands of societies imposed

on companies. That is why the publication of this book is so timely. Since 1992, the manufacturing

companies have become aware of the fact that their responsibil ities go beyond the returned obtained

by their shareholders, and those at the forefront have found that concepts such as CSR, eco-efficiency,

triple bottom line, and inclusive business are key to their ability to thrive in a world of growing scarcity.

It is perceived that the discourse of companies has changed and so have many of their practices,

although oftentimes not in the same proportion. What progress has been made over the years? What

remains to be done? These are open questions that motivated AVINA to produce this publication.

Since I decided to create the AVINA Foundation in 1994, its purpose has been to contribute to

sustainable development in Latin America, promoting alliances between civil society and business

in pursuit of the common good of their communities, countries and Latin America as a whole. In its

early years, AVINA began to support and promote leaders and organizations of the CSR movement,

first in some specific countries and then throughout the region. To AVINA, it has been fertile ground

for dialogue between sectors, trust-building between stakeholders and business players and joint

collaborative action as not only companies should thing of their social responsibility, but all sectors

of societies should be committed to ethical conduct and the common good. In order to improve

conditions in our societies, it is necessary to build bridges of cooperation between the business

community, civil society and governments.

It was in this spirit that AVINA, since its foundation in 1994, has invested resources and efforts in

promoting CSR across Latin America. AVINA is part of a growing list of organizations and business

associations, actively promoting CSR by means of investments in its strengthening, intellectual

production, collaboration among sectors and links among organizations that work on the issue of

social national and international networks.

Some accomplishments of this coalition of leaders and organizations can be seen in reality. A little

over ten years ago, CSR was often confused with companies philanthropic activities and their work

with the community. Some business people bestowed a more strategic interpretation on it, laying the

foundations for the emergence of the first business organizations focused on transparency, ethics

and management practices in the region. This book makes it clear that great strides have been made,


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EXECUTIVE SUMMARY

eXecutIVe suMMary

The survey In search of sustainability. The road of Corporate Social Responsibility in Latin America and AVINAFoundations contribution explains corporate social responsibility in the last three decades, with the focuson its evolution at a regional level and in the early years of the 21 st century.

The survey begins with a Timeline that shows the various milestones of CSR in Latin America. It includesthe development of organizations and networks, concepts and tools, highlighting those to which AVINAwas related.

The survey is divided into three parts: Part I, The trodden road; Part II, AVINA Foundations contribution;and Part III, In search of sustainability. In each of these parts, record documents and the testimonies of76 CSR experts consulted in 17 countries throughout 2010 were used. This job was done by a consultingteam led by Mercedes Korin, under AVINA Foundations supervision.

Part I, The trodden road, starts with CSRs beginnings in Latin America and the peculiarities of this region,and goes on deeper into the subject through three pillars of evolution taken into consideration for thisstudy (Organizations and Networks, Concepts and Tools), looking into the changes in business and socialbehavior.

The pillar of Organizations and Networks refers to the players from different fields that promote CSR.This includes from institutions aiming at CSR as their very purpose (mostly business association) to thoseincluding this subject matter with other objectives in mind (such as academic institutions). It also includescollaborations among players institutionalized through subject-related networks, territorial ones, those ina particular field or multisector networks. The pillar of Concepts refers to well-established definitions, fromphilanthropy to sustainability, and dissemination mechanisms (events, publications, specialized media),which have been spreading and increasing drawing power. Lastly, the pillar of Tools refers to CSR evaluationand management tools, both integrated and specific models (finance, environment, among others).

Part I ends with the research on behavior changes. Regarding the private sector, the main motivationsfor change are attempted to be determined, and data and statistics reflecting the increase in companiesadopting international sustainability principles, standards and report models, even when not translatedinto improved responsible competitiveness indicators in the region as of yet, are provided. Regarding thechanges in other players of society, the wide spectrum of views on CSR is shown, from joining multi-playerspaces in the subject and civil society approaching this concept (monitoring corporate practices, outside

supervision of sustainability reports, alliances for sustainable development) to the gap between consumersand this subject who, if interested, often show such interest through a purchase decision.

Part II, AVINA Foundations contribution, begins with Stephan Schmidheinys view on the transformationpotential shown by the development and coordination of social and business leaderships and, in line withthis concept, AVINAs creation and, then, the VIVA Trust (trust set up by AVINA and GrupoNueva).

The second section of Part II describes AVINAs intervention strategies for the development of CSR,approached from its central focuses (social capital and financing), plus the main services of the organizationin terms of the promotion of the subject and AVINAs characteristics, with sets it apart. Furhter on, CSR-promoting initiatives are classified on the basis of the contribution to each pillar of evolution. In the pillar ofOrganizations and Networks, initiatives seeking the setting-up, strengthening, coordination and strategiesfor the start-up, launch, structuring, financing, evolution and territorial expansion of organizations. Within thepillar of Concepts, CSR promotion strategies in events, publications, evaluations and dissemination of best

although there is still a great deal of work to be done. In fact today there might be more opportunities

than in the past for companies to help build more equitable and sustainable societies on the basis of

responsible and innovative business practices.

AVINA has carried out the study presented here as a contribution to the reflection of the many players

and organizations that are responsible for the progress of CSR in Latin America. It is a record of the

trodden road, another contribution to the learning of our region and, above all, a call to join forces

to define strategies for the future. This study represents a collection and systematization of data,

analysis of publications and the conduction of 76 interviews with key people i n the subject within the

regional context.

I would like to thank the people and organizations that provided the raw material of this study that

complements and validates AVINA standpoint. They are the main players of this account that, without

a shadow of a doubt, does not finish here but continues its evolution with renewed significance for

the region.

sp smidiFounder of AVINA


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practices are included as well as the fostering of dialogue and participation, the support of research, awardsand competitions, the dissemination in the media, and training. In the pillar of Tools, AVINAs interventionmethodologies, which contributed to the development of self-regulatory tools, certifications, indicators,guidelines and indexes as well as implementation models, including the generation of innovative cases,were analyzed. After going over AVINAs strategies, the impact of the organization on CSR development inLatin America is shown, based on the rating of the people interviewed for this survey, with a quantitativeand qualitative systematization that rates it as High and some suggestions made to AVINA regardinggoals and strategies for CSR and its sustainability.

Part III, In search of sustainability, is divided into two sections: How far we have reached today andHow far we can reach tomorrow. In the first part, CSRs present scenario in Latin America is detailed,taking into consideration the regions own characteristics; the subject is analyzed on the basis of CSR-promotion field, showing then stance of companies, CSR organizations, academic institutions, civil societyorganizations, the media, the government and society. AVINAs present approach towards the role ofcompanies in sustainable development agendas, including some of its initiatives in this regard, is alsodescribed.

The second section of Part III includes a reflection on the need for a new model, considering that there is afavorable platform for a change of paradigm although it is still necessary to stimulate those who have notadopted a responsible management culture. Signs and opportunities of a likely way to achieve this changethrough the consolidation of the region are shown as well as the development of innovative and effectivesolutions, the implementation of objective reward mechanisms for responsible behavior and punishmentfor irresponsible behavior, societys empowerment, the establishment and consolidation of global alliances,and the change from a reactive to a proactive attitude by companies.

The sections completing this survey are: Methodology; A point of view, which wraps the survey andincludes comments on the process of this research; record documents, and a list of acronyms andabbreviations of the organizations herein mentioned. The annexes show a list of the experts interviewedand their significance in their own countries, fields of work and links to AVINA; data on the methodologyof interviews and polls; a detail of the Timeline that goes through the 2000s; and AVINAs contributionshown in some publications.


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TIMELINE

tIMelIne: csr In latIn aMerIca


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METHODOLOGY

MethoDoloGy

a. FocusThe purpose of this survey is to deal with the evolution of the subject of Corporate Social Responsibility(CSR) in Latin America and AVINA Foundations contribution, with the focus on the past ten years. Thus,it expects to give a chronological and continent-wide view not very much shown so far as there are fewstudies with consolidated information among the different countries in the region, and with a historicalperspective.

Due to this fact, we were faced with the following questions: How has CSR been developing in Latin America throughout this decade? Which have been the

milestones; which have been the most emblematic organizations and initiatives? Which hasbeen CSRs contribution to Latin America in this decade? Has the constitution of social capitaland knowledge to improve peoples life standards through better behavior been one such

contribution? What has been AVINAs contribution to CSR in Latin America during this decade? Which were

the strategies adopted? Which were the focuses and outcomes? What do CSR experts think ofthe job done by the organization?

Which is CSRs present scenario in Latin America and where does the trend seem to beheading? What considerations might be taken into account for CSR to be a driving forcetowards sustainability taken into account the regions particularities?

Thus, the first part of the survey deals with CSRs overall evolution, the second part analyzes AVINAscontribution to such evolution and the third part explains possible trends on the basis of the currentscenario.

Here are some facts in order to define the scope of the survey:

CSRs scope. By CSR it is meant the CSR subject matter, that is, the practice of a culture of responsiblemanagement by companies, and those organizations and networks, concepts and tools that contribute tothe promotion of CSR.

Continent-wide view. The goal was to establish a Latin American view through the analysis of facts,initiatives and processes constituted as regional from the very beginning, and of the analysis of facts,

initiatives and processes taking place in each country, but which have a regional nature since they inspiredor were inspired by similar situations in other countries. The focus was on countries where AVINA has beenpresent in the course of these years; that is, Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador,El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, and Uruguay. By Latin America ismeant, interchangeably, Latin America and the Caribbean or just Latin America, based on the informationavailable; this is how the terms regional or continental must be understood, except in cases in whichregional refers to a particular region within Latin America, which is clarified by the context where theterm appears.

Period. As to the period spanned, the last ten years of CSR promotion was considered (the 2000s),however, the previous periods are also taken into consideration (especially in Part I) and forward-lookingtrends (especially in Part IIII). The decision of going deeper into this decade is due to the fact that it showsthe greatest Latin American activity in the CSR field, which can easily be observed in Organizations andNetworks, Concepts and Tools making up the Timeline of CSR in Latin America. This Timeline highlights the


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The interviewees were chosen along with AVINA Foundation aiming at a significant diversity in termsof countries, fields of work in the promotion of CSR (business associations, AVINAs current and formermembers, corporations, civil society organizations, academic institutions, the media, and the public sector/cooperation); and different links with AVINA (AVINAs allies, AVINAs former representatives, AVINAs localrepresentatives, AVINAs top management members, others). Thus, interviews with the following experts(organized by they country home countries)3 were done:

agi: Alberto Willi, Alejandro Langlois, Carlos March, Carmen Olaechea, Claudio Giomi, FernandoBarbera, Gabriel Griffa, Karina Stocovaz, Luis Ulla, Mariana Caminotti, Silvia DAgostino. bivi: lvaroBazn, Andreas Noack, Eduardo Peinado, Gabriel Baracatt, Leslie Claros, Lourdes Chalup, Maggi Talavera.bzi: Francisco Azevedo, Geraldinho Vieira, Helio Mattar, Jair Kievel, Maria de Lourdes Nunes, OdedGrajew, Paulo Itacarambi, Sean McKaugan, Susana Leal. ci: Francisca Tondreau, Gilberto Ortiz, GuillermoScallan, Hugo Vergara, Marcos Delucchi Fonck, Paola Berdichevsky, Rafael Quiroga, Soledad Teixid, YaninaKowszyk, Ximena Abogabir. cmi: Bernardo Toro, Diana Chvez, Emilia Ruiz Morante, Mara Lpez,Roberto Gutirrez Poveda. c ri: Luis Javier Castro, Olga Sauma, Rafael Luna. ed: Camilo Pinzn,Jorge Roca, Juan Cordero, Ramiro Alvear. e svd: Roberto Murray, Rhina Reyes. egd: Simon Zadek.

Gm: Guillermo Monroy. hd: Roberto Leiva. nig: Matthias Dietrich. Pm: AndreasEggenberg, Marcela lvarez Caldern de Pardini, Teresa Moll de Alba de Alfaro. Pg: Beltrn Macchi,Diana Escobar, Ricardo Carrizosa, Susana Ortiz, Yan Speranza. P: Baltazar Caravedo, Bartolom Ros,Carlos Armando Casis, Felipe Portocarrero, Henri Le Bienvenu, Jos de la Riva. uid s: Aaron Cramer,Estrella Peinado Vara, Terry Nelidov. ug: Carmen Correa, Eduardo Shaw, Enrique Piedra Cueva, RubnCasavalle.

With each of the experts consulted, a 1 1/2-hour deep and confidential interview was carried out, whichadditionally included a brief poll4. Forty-nine interviews were performed in-person and 27 virtually.

c. Content structure

The analysis of the information and the opinions were approached based on five components. Three arepillars of evolution (the Organizations and Networks, the Concepts and the Tools) and two are resultingones: the outcome of such evolution (Behavior changes) and the outcome of AVINAs contribution (AVINAsimpact). The three pillars of evolution allow organizing the recount in order to analyze the relation betweenCSRs evolution and AVINAs contribution, while the components of the resulting ones seek to determinethe impact of CSR in general and that of AVINA in particular.

The pillar of Organizations and Networks includes the emergence and strengthening of the majororganizations and networks involved in CSR in the region. The pillar of Concepts refers to the initiatives thathelped conceptualize, disseminate, and establish CSR. The pillar of Tools spans the evolution of the CSRapplication, evaluation and communication instruments. The component of Behavior aims to explain thecurrent impact of the issue in terms of both corporate and non-corporate behavior changes. The componentof AVINAs impact aims to reflect AVINAs effect on CSR evolution. The mentioned components constantlyoverlap each other; they are only set apart with the purpose of organizing the analysis.

The content of this survey is structured in three main parts: CSR evolution, AVINAs contribution and currentsituation and trends of sustainability. The first and second parts allow evaluting the relationship betweenAVINA and CSR through the three pillars of evolution defined for this survey (Organizations and Networks,

3 For further details about the interviewees and their profile, see Annex A. Interviewees.

4 For further details about the interviewing methodology, see Annex B. Interview and poll methodology.

METHODOLOGY

milestones in the regional development broadly speaking in the 1980s and 1990s and year over year, inthe 2000s, important facts as they show drawing power and were innovative, with an impact, replicableand/or explain trends.

Initiatives and their products. The CSR promotion initiatives included in the survey are mentioned since theirexistence allows explaining the evolution of the analyzed pillars (Organizations and Networks, Concepts,Tools). They are not evaluated by their quality or outcome on a stand-alone basis.

Institutional Perspective. One of the most important legacies from the leaders boosting CSR in LatinAmerica was the creation of institutionalism reflected in organizations and networks. This allows the surveyto directly deal with institutions without overlooking the job done by leaders and pioneers that enabledthe movement to be put into motion, progress and be consolidated.

Impacts. The impact of CSR promotion is considered mostly in terms of behavior changes. While thereare not enough objective indicators to reliably show a behavior change in companies, since usually thecompanies themselves (and a group in particular) provide their own data in a systematized way, the opinion

of the experts plus some other research allowed performing an analysis and were also meaningful sourcesto approach the changes in both social and business behaviors. AVINAs impact on the CSR movement wasmeasured taking into account AVINAs contribution to the milestones and the emblematic organizations andnetworks, and the interviewees perception of its importance.

b. ApproachThis survey was done throughout 2010 by a team of consultants made up of eleven professionals involvedin different tasks: design of methodology and development of guidelines and information and interviewapproach methodologies; evaluation and analysis of documentation; development and processing ofinterviews and polls; analyses of the opinions obtained; writing and edition; graphic design; translationinto Portuguese and English. The job was supervised by a team from AVINA Foundation, which providedsystematized information on the organization and made a first institutional contact with the interviewees.

The survey was mostly based on two types of sources whose information was organized by classificationcategories adapted from Mapeo de Promotores de RSE en Amrica Latina (www.mapeo-rse.info). On the onehand, existing publications about CSR (integrated or of each of its areas) in the region and Internet siteswith relevant historical information1, as well as AVINAs institutional documents and information furnishedby the organization on investments in CSR made largely between 1999 (when it published its first annual

report) and 20092. Also, 76 significant experts, continent-wide and/or country-wide, were consulted. Thanksto the interviewees excellent willingness to help, it was possible to:

adjust the finding aids during the trial period of such aids; complete and confirm the information on CSRs evolution to be included in Part I; constitute the perception of AVINAs contribution, which is in Part II; establish suggestions so that the CSR movement strategies and AVINAs in particular, could

efficiently contribute to drive companies to be part of the sustainability process.

1 See Record documents.

2 The initiatives supported by AVINA and mentioned in this survey mostly received an economic investment from AVINA, in addition

to other type of support such as collaboration in the planning process, contacts, etc. When initiatives in which AVINA made economic

investments are mentioned in this survey, the companies in which such investments were made are mentioned, as well as the year in

which the investment began and the home country of such organization.


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PART ITHE TRODDEN ROAD

Concepts and Tools), and through the CSR Timeline in Latin America (in its brief version and, in Annex C,in its detailed version).

The first part, The trodden road, is divided into two parts: CSRS beginnings in Latin America, with theorigins of CSR; and CSRs evolution in Latin America from two perspectives: the evolution pillars of the CSRissue and the behavior changes in the private sector and in players from other areas.

The second part, AVINA Foundations contribution, is divided into three pats: AVINAs interest in LatinAmerican CSR as its raison dtre; the organizations strategies, with its focus on social capital and financingand with its outcomes, and taken from the perspective of CSR evolution (complemented with Annex Dabout publications linked to AVINA); and AVINAs effect on CSR development.

The third part, In search for sustainability, analyzes how far we have reached today, showing CSRspresent scenario in the region, the areas from which it is promoted, and initiatives with AVINAs participationthat explain the new development agendas, and moves on to look into how far we can reach tomorrow,presenting trend signs, opportunities and challenges faced in order to achieve sustainability.

The survey ends with the section A point of view, made up of comments on the survey process made bythe consulting firm that led it, the annexes, the record documents and a list of acronyms and abbreviationsof the organizations mentioned.


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PART I. THE TRODDEN ROAD

1. CSRs beginnings in Latin America

In Latin America, the philanthropic link between businesses and society has existed for centuries, derivedfrom the bygone On assistance to the poor and charity from the 16th to the 19th century, when charityworks gained momentum mostly fostered by religious institutions. As from the early 20 th century, suchbusiness-community relation developed within a local context characterized by the presence of small- andmedium-sized companies, usually family-type, which used to make donations. Such deeds used to bebased on the religious, ethical and moral values of the owners of such companies. With the owners money,companies helped charities and public hospitals, supported sports associations or promoted art.

In the second half of the 20 th century, international consensuses such as the Universal Declaration ofHuman Rights, the International Labor Organization (ILO) Declaration regarding the Fundamental Principlesand Rights at Work and the United Nations Guidelines for Consumer Protection, the globalization of theeconomy and the progress of information and communication technologies unleashed the expansion of theconcepts of sustainability and social responsibility, gaining greater force in the last two decades.

As antecedents we can see some pioneering social reporting models: the Asociacin Chilena de Seguridad(ACHS), created in 1975 and based on a French model, was the first internal social balance in Latin Americaand measured different factors such as the companies working life quality. Another pioneering case inthe region was that of Colombia, based on the ILOs Social Balance Model, elaborated by the AsociacinNacional de Empresarios de Colombia (ANDI), along with the Cmara Junior de Colombia (CJC), in 1987. And,during 1997, the Instituto Brasileiro de Anlises Sociais e Econmicas (IBASE) created its own model ofSocial Balance and Perus ILO its Manual of Social Balance, in association with the Confederacin Nacionalde Instituciones Empresariales Privadas (CONFIEP), based on Colombias version.

The regions parTiculariTies

In the past few decades, Latin America, with its peculiarities and the increasing importance of globalissues, has constituted the framework within which Corporate Social Responsibility gains momentum in thisregion. A very brief overview of this scenario:

Democracy is the widespread type of government, crucial in most countries, to advanced socialparticipation, the generation of social capital for sustainability and steady legal security. Butprogress is slow, affecting fundamental questions such as labor conditions, the access to basicservices and the development of environmental sustainability.

Latin America enters the global economy adopting various international trade-opening policies. The States keeps showing scarce effective mechanism controls of business behavior and barely

any legislation and incentives related to CSR issues. Business, influential both in its own environment and at a national level, lives along with large

foreign multinationals with great weight in production and labor, a growing number of trans-Latin companies and a huge number of small- and medium-sized companies, which account fora significant part of the private sector and job creation and which are, many of them, family-owned.

Civil society becomes increasingly organized under different forms and with the support of thenew information and communication technologies.

Social inequality, poverty and unemployment account for the regions main problems.

Sources: www.eclac.org | www.worldbank.org | www.oas.org


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higher level of supply than demand for tools, and a systematic and complete application of CSR by the LatinAmerican business sector as a whole still seems unlikely, which it is logical due to the lack of a regionalcoordinations in other aspects; a feature that differentiates Latin America from other regions.

In comparison with previous decades, the CSR movement has shown faster progress since the turn of thiscentury, highly influenced by international standards and incipient local developments that attempt torespond to the specific needs of each country in the region.

Latin American CSR already has numerous organizations promoting the subject. Each country has at least aCSR specific organization that might have been set up for such purpose or might have existed previously,but was rechanneled into this subject. There are also civil society organizations and, to a lesser extent publicagencies working on CSR from one of its areas in particular such as environment and labor practices. Aprofessional field around CSR has emerged: among others, organizations staff devoted to this, consultants,academicians.

The CSR concept advances in terms of expansion, depth, and segmentation for various business sectors

through different dissemination and debate means: each country has national congresses, meetings,workshops and/or conferences, awards, recognitions, and CSR indexes. There are also important nationaland regional indexes, first-steps manuals and other implementation tools.

However, the concept is established above all at a theory level and the supply of tools is higher than itsdemand as the experts consulted for this survey agree. No massive implementation has been achievednor has an overall transformation in business management taken place except in isolated cases at thosecompanies leading the subject.

This is a process with progress, stagnation and backward steps, built heterogeneously. In turn, as at a social,cultural, economic and political level, in Latin America there are significant CSR differences among countriesand, even within each country. Thus, as countries face different degrees of evolution, methodologies andcomplexity in social and environment terms, there are differences in their approach since in many casesCSR is still, in p ractice, associated with philanthropy. There are also organizations and initiatives with theirown CSR objectives coexisting with others that use the concept for other ends.

Each countrys regional context, particular history and situation are regarded by most of the peopleinterviewed as a driving force of CSR in Latin America. Economic crises and social conflicts are mentionedin Argentina, Bolivia or Chile, while Paraguay and Peru highlight social needs and demand solutions frombusinesses. In turn, particular questions in some countries, such as agricultural reforms and crises in the

agricultural sector, influenced the way in which CSR evolves in each place although there is consensuson the fact that there are no measures which, isolated, might have brought about a fundamental andsignificant change in the CSR movement.

In some Latin American countries like Argentina, Bolivia and Chile, as experts in CSR interviewed for thissurvey state CSR was a movement that was born or is stronger in the provinces due to a need and anopportunity channeled from the interior of the countries to the capitals, or, which in any case, there weretrends responding to the needs of the interior of the countries and others to the needs of the capitals.

2.1.1 Organizations and networks

The pillar of evolution of the Organizations and Networks looks into the emergence of major organizationsdevoted to CSR in the region that, with different origins, make up the CSR movements institutional basein Latin America. During the first decade of the 21st century, this base expanded and diversified, generating

Throughout the 1990s with an increasingly competitive global market demanding to meet new laborand environment standards, and with growingly fast information dissemination worldwide, which madeirresponsible practices more visible and put the spotlight on multinationals operating or outsourcing itsoperations in less-developed regions, corporations started to notice that the focus on pricing, innovationand publicity was not sufficient.

Philanthropy became social investment, with resources from companies destined to the nearby environment,as a medium-term planned strategy. The objective was to improve the relationship with their workers, thecommunity and their overall reputation, seeking to generate confidence since business started to see thebenefits of having the community as a potential ally and the risks of the opposite. But under the currentconditions, it was not enough either.

This resulted in an analysis that took us from the question What can business provide to society? in termsof philanthropy or social investment to the question How should a corporation behave?.

From this new approach, there were businessmen who started to work on the concepts of sustainability and

corporate citizenship. These pioneers that put forward responsible practices, took part in the constructionof organizations and networks, fostered sector agreements and alliances with the purpose of being peerscalling on peers, according to many of the people interviewed for this survey.

A milestone in this sense was the United Nations Conference on Environment and Development in 1992,known as the Rio Summit or the Earth Summit, which managed to establish in the world agenda the concernabout global warming, the concept of eco-efficiency and the need to have public and private policies to dowith environmental management. This Summit, which drew representatives from 172 nations and 2,400 civilsociety organizations, was the stage for a meeting among business leaders willing to work to necessaryconditions for a CSR culture in business practices, called by businessman Stephan Schmidheiny who thinksThere is no successful enterprise in a failed society. As part of this process, the World Business Councilfor Sustainable Development (WBCSD) was consolidated later in time, an organization acting in differentcountries in Latin America, which, at first, primarily focused on environmental issues and then becameinvolved in Corporate Social Responsibility as a whole.

By the end of the decade, while proposals for the implementation of CSR were being put forward, such asthe Global Reporting Initiative (GRI) and the standard SA 8000 (both in 1997), in Latin America, nationalorganizations promoting CSR, wholly or in some of its areas, began taking shape. Out of them, the InstitutoEthos de Empresas e Responsabilidade Social, set up in Brazil in 1998 by a group of businessman thathad been working at the think tank Pensamento Nacional das Bases Empresariais (PNBE) was one of the

earliest organizations to approach CSR and it is the most emblematic of Latin American institution withinthe movement as agreed by the people interviewed for this survey.

2. CSRs evolution in Latin America

2.1 Pillars of CSRs evolution

When looking at the three pillars of evolution, we can see that the formation of organizations showsimportant antecedents, which were strengthened throughout the decade under analysis and that hasmoved towards the coordination and formation of networks. Meanwhile, at the level of Concepts and Tools,theory and international standards are adopted combined with incipient local developments. Whereas froma conceptual point of view, progress is being made towards consensuses on the need for an overall CSRand the search of sustainability, when it comes to implementing responsible practices, criteria differ, a


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evoluTion of csr organizaTions: fundemas case

Most of the track record of CSR organizations in the region is clear by taking the first institutions thatemerged as there are common denominators in terms of the way they drew companies, the diversificationof the supply and the alliances to increase the scope. In this sense, here it is described the evolution ofFundacin Empresarial para la Accin Social (Fundemas) from El Salvador.

Created in 2000 by a group of Salvadorian business people with the purpose of contributing to theircountrys sustainable development, Fundemas, by 2009, was made up of individuals, companies, 11 unions,12 foundations and 7 universities. By this time, it was incorporated into Forum Empresa, boosted theRed Centroamericana para la Promocin de la RSE (currently, IntegraRSE), and established alliances withorganizations like Accountability (the United Kingdom) to carry out surveys on responsible competitivenessin the region.

As many other Latin American organizations, it started to operate with the contribution fromthe W.K.Kellogg Foundation and private partners. And, as it also happens with major CSR promoters, ithas strategic allies such as the Inter-American Development Bank (IDB), the German cooperation agency

Internationale Weiterbildung und Entwicklung gGmbH (InWEnt), the United Nations Development Programme(UNDP) and the US Embassy.Having developed a CSR management model, according to their own figures, it has made over

10,000 people aware in ten years through the publication of 165 articles in specialized media, 11 practicalguidebooks and 4 CSR surveys, in addition to the documentation of 170 cases of good practices, 194events, 36 workshops and 163 talks.

In this decade, Fundemas has worked on a diversity of CSR-related aspects: with companies ofvarious sizes large-, medium-, small-sized and microenterprises, in CSR areas such as child labor andenvironment, in sectors such as construction, in public-private alliances, in the development of tools suchas standardization methods, along with other Central American organizations, of the IndicaRSE indexes orthe elaboration of conduct codes.

Source: Fundemas. Memoria de Sostenibilidad 2009. 10 aos Fundemas. Por + competitividad responsable

Most of the institutionalization of the CSR movement started with the initiative of individual or smallgroups that led up to the creation of organizations based on their founders views and which are currentlyregarded as emblematic institutions. These leaders knew how to stimulate those who were emerging andhelp multiply their acts.

While most pro-CSR business association concentrate big companies and have largely emerged in countrycapitals, there are groups that have a small-sized company nature and originated in the interior of eachcountry with owners of companies either native to the area or from neighboring areas in which the groupwas created, as was the case in Argentina, where after several years they formed the Red Argentina deRSE (RARSE).

a csr naTional coordinaTion wiTh a small-sized company naTure and a federal perspecTive

In 2007, in Argentina, a group of business people mostly owners of small- and medium-sizedcompanies progressed in the setting-up of a federal-nature network, a National Movement of Companiesfor CSR, with the purpose of creating a space for debate among business people who think that there areother feasible ways of producing and consuming that might benefit society, working on the basis of localrealities.

initiatives of inter- and intra-sector coordinations, strengthening and creating continent-wide networks.

CSR organizations

The formation of organizations in Latin America has one of its main antecedents in different associationsof business leaders (many times linked to religious communities as the Christian one) and in businessassociations initially promoting philanthropy. It was in the late 1990s and early 2000s that CSR-specificorganizations were created (which often include CSR in their name) and some pre-existing onesincorporated this concept into their objectives such as the Asociacin de Empresarios Cristianos (ADEC) inParaguay, the Asociacin Cristiana de Dirigentes de Empresa (ACDE) in Argentina, the Asociacin Cristianade Dirigentes de Empresa (ACDE) in Uruguay, Per 2021, the Asociacin Empresarial para el Desarrollo(AED) in Costa Rica.

Simultaneously, global organizations like WBCSD and initiatives such as the United Nations Global Compactpromoted the creation of national spaces in Latin American countries while networks began forming, manyof which currently identified as major promoters of CSR.

The number of companies (generally large and multinationals) that join this type of organizations startedto increase as time went by and the proposals began diversifying and deepening. Today, the organizationsface basically two challenges: On the one hand, to support themselves, assuming that the financing fromcompanies supporting them is not stable, and that, unlike other kinds of non-profit organizations, havingeconomic support from companies does not imply an exchange of services, in these cases the relationis different. On the other hand, to be updated on the new trends while they still stimulate companiesthat have not been incorporated into the CSR system, raising their awareness and advising them on theimplementation.

The growTh of csr business associaTions

The increase in the number of companies interested in being part of a business-nature CSR organizationis clear when analyzing the evolution of companies joining this type of institutions. Such increase showsthat to companies, mostly big ones, being a member of a group specialized in CSR adds value, since theycan interact with their peers, being updated and take part in debates on the movement.

Forum Empresa, a continent-wide alliance of CSR business institutions in the whole of Latin Americaset up in 1997, concentrates 16 national business associations from Latin America that show a significantrise in the number of their member companies. According to information from Forum Empresa provided

for this survey, if the difference among companies adopting CSR between the year each organization wasestablished and in 2009 is taken into account, we can see a 586% increase, from 385 empresas to 2,643.Leading this increase is the Instituto Ethos de Empresas e Responsabilidade Social, from Brazil, which

started with 11 companies in 1998 and in 2009 had 1,340, followed by the Centro Mexicano para la Filantropa(CEMEFI), from Mexico, which had 28 companies when it was set up in 1998 and in 2009 concentrated 495;Accin RSE, from Chile, set up in 2000 with 14 companies and which in 2009 had 93. Other organizationsalso showed a significant increased percentage: Fundacin del Tucumn (Argentina, 1985) and Fundemas(El Salvador, 2000) grew by 400%; DERES (Uruguay, 1999), 316%; FundahRSE (Honduras, 2004), 275%;and AED (Costa Rica, 1997), 144%.

Another quantitative analysis of the degree of representation of these organizations is by consideringthe Gross Domestic Product (GDP) percentage that related companies add. For example: the annual billing ofInstituto Ethoss member companies comes to approximately 35% of Brazils GDP and related to CentraRSE32% of Guatemalas GDP.

Sources: Forum Empresa, for this survey| www.ethos.org.br| www.fundahrse.org


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early supporT To The csr leadership: The leadership in philanThropy program

The W.K. Kellogg Foundation is one of the donor organizations that most boosted CSR in the regionfrom its very beginnings through financing and and other kind of support. Its Leadership in PhilanthropyProgram, implemented since 1997, has worked as a hotbed of CSR leadership evolution: it started providingsupport and making cooperation easier among 28 people on scholarships from different origins andbackgrounds, from Argentina, Brazil, Chile, Colombia, Panama, Mexico, Peru and the United States, whowere seeking to develop corporate responsibility at the time applied basically as philanthropy in theirown countries.

With the framework of this program, the project Ao Empresarial Pela Cidadania (AEC) was set up inBrazil, and in 2003, with the added support of the AVINA Foundation, the Ncleo de Articulao Nacional(NAN) was formed with the purpose of bringing together existing CSR centers in inner Brazil created withinthe framework of the industrial federations.

In Brazil, the Kellogg Foundation supported organizations such as the Associao Brasileira dosFabricantes de Brinquedos (Abrinq), founded by Oded Grajew, who in 1998 together with other business

people founded the Instituto Ethos de Empresas e Responsabilidade Social, and contributed to the firststeps of the Grupo de Institutos Fundaes e Empresas (GIFE).

Sources: www.wkkf.org | Ncleo de Articulao Nacional - Federao das Indstrias do Estado de Minas Gerais (FIEMG).Nan,

Ncleo de Articulao Nacional. Ao Empresarial pela Cidadania. Brazil.

Diversity of players in CSR promotion

In the course of time, the diversity of players promoting CSR grew in Latin America, which, with d ifferentbackgrounds and interests, joined the first CSR-specific organizations and international initiatives.

Numerous civil society organizations assumed that the CSR concepts allowed facing the work withcompanies in such a way that it might yield higher strategic results (previously the relationship wasbasically one of philanthropy or in monitoring or denounce). This is when the network Red PuentesInternacional emerged, set up in eight Ibero American countries (Argentina, Brazil, Chile, El Salvador,Mexico, Peru, Spain and Uruguay) by 43 civil society organizations specialized in different subjects likelabor practices, transparency, consumers, environment, fair trade, economic and social development, microand small enterprises, citizen participation, and gender. The Red Puentes Internacional was created withThe Netherlands support, through the Ministry of Foreign Affairs and the Novib cooperation agency. In

2005, it was recognized as a non-governmental liaison organization in the international ISO 26000 workinggroup on social responsibility, contributing its opinions to this elaboration process and cooperating withother experts and observers.

Universities, in turn, created university chairs, programs and later centers for research and training in thissubject. Among them, the Instituto Centroamericano de Administracin de Empresas (INCAE) in Costa Ricaand the Universidad del Pacfico (UP) in Peru appear as the main academic institutions mentioned by theinterviewees. On the academic scene, in turn, networks such as Social Enterprise Knowledge Network(SEKN), and more recently, the Red Iberoamericana de Universidades por la RSE (Red UniRSE), were setup, seeking to establish methodologies in common for questions like the development of case studies andtraining of trainers.

Made up of a group of business schools of Ibero America in alliance with the AVINA Foundation, SEKNhas specially worked on evaluation, conceptualization, knowledge dissemination and training in subjects

Established in 2010 as Red Argentina de RSE (RARSE), it is made up by the Consejo Empresario deEntre Ros (CEER, Entre Ros), Foro Patagonia, Gestin Responsable (Crdoba), Marcos Jurez (Crdoba),Minka (Jujuy), Movimiento hacia la RSE (MoveRSE, Rosario), Nuevos Aires (Buenos Aires), Pacto San Juan(San Juan) and Valos (Mendoza), in alliance with the Instituto Argentino de RSE (IARSE).

The networks aim is to create an environment for cooperation, share lessons and help other businessgroups that might decide to adopt CSR in their areas and have national and international significance toaffect public policies.

Source: www.fororse.org.ar

An increasing number of networks are promoting CSR with various characteristics (achieving a CSR federalperspective in a given country, promoting the subject in academic institutions as shown further on, etc.).On the subject of business associations, the network formed in Central America stands out as it has as itsmain goal to contribute through CSR to the integration of a bloc of countries.

cenTral america: csr as an inTegraTion facTor of a bloc of counTries

The Red Centroamericana para la Promocin de la RSE (currently, Red para la IntegracinCentroamericana por la RSE, IntegraRSE) is created in 2003 when leading business people in CentralAmerican countries decided to adopt a joint approach towards CSR through the job of national organizationsinvolved in the issue: Asociacin Empresarial para el Desarrollo (AED, Costa Rica), Centro para la Accin dela RSE in Guatemala (CentraRSE), Fundacin Hondurea de RSE (FundahRSE), Fundacin Empresarial parala Accin Social (Fundemas, El Salvador), SumaRSE (Panam) y Unin Nicaragense para la RSE (UniRSE).They jointly concentrate 418 member companies.

The network has made progress in the dissemination of CSR (there were six ConvertiRSE conferencesbetween 2002 and 2010, in El Salvador, Guatemala, Honduras, Nicaragua, Costa Rica and Panama)and in the development of implementation instruments with a CSR self-evaluating indicator system forCentral America, IndicaRSE, based on the indicators created by CentraRSE and applied since 2009, when189 companies took part. Additionally, it is implementing the project Integrated management systemsfocused on CSR for small- and medium-sized companies in Central America along with the InternationaleWeiterbildung und Entwicklung gGmbH (InWEnt), training consultants and providing consultancy servicesfor this type of companies.

The groundwork laid among organizations has enabled the business sector represented in the networkto regularize a cooperation link with the Secretara General del Sistema de la Integracin Centroamericana

(SICA) an intergovernmental agency created by the States of Costa Rica, El Salvador, Guatemala, Honduras,Nicaragua and Panama, for the CSR development to be one of the factors that might contribute to theSICAs end, that is, Central America to be a region of peace, freedom, democracy and development.

Sources: IntegraRSE. Visin: Estado Actual de la RSE en Centroamrica (in elaboration process).| www.sica.int

In the interviews, the W.K. Kellogg Foundation and the AVINA Foundation appear as the institutions thatknew how to visualize and sustain the importance of the support to the movement first through theirleaders and then through the organizations and networks they created. With already-existing organizations,the Inter-American Development Bank (IDB) through the Multilateral Investment Fund (MIF) is also attachedan important role due to its CSR programs for value-chain small- and medium-sized companies of largecompanies.


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de Empresas (INCAE), Asociacin Empresarial para el Desarrollo (AED), Ministry of National Planning andEconomic Policy, Oikocredit, AliaRSE, Instituto de Fomento y Asesora Municipal (IFAM), Instituto de NormasTcnicas de Costa Rica (INTECO), the AVINA Foundation, the School of International Affairs, the UniversidadNacional de Costa Rica, the Confederation of Cooperatives of the Caribbean and Central America (CCC-CA).Honorary members: the United Nations Development Programme (UNDP) in Costa Rica, the Costa RicaOmbudsman, the Agencia Espaola de Cooperacin Internacional para el Desarrollo (AECID), the SpanishEmbassy in Costa Rica and Deutsche Gesellschaft fr Technische Zusammenarbeit (GTZ).

Source:www.ccnrs.com

2.1.2 Concepts

The pillar of evolution of the Concepts refers to the initiatives that helped conceptualize CSR, establish thesubject in the public agenda, draw people and organizations, build consensuses and generate social capital.It encompasses dissemination, academic research, conferences, visibility events, specific publications,media coverage, awards and recognition.

Established definitions: from philanthropy to sustainability

The whole CSR conception, which considers all its areas, is today reflected in the diverse definitionsgenerated by the most important organizations involved in this subject and regional meetings, and includessome local touches. But CSR as such began in Latin America with imported concepts, a high influence frominternational agencies, multinationals and tools from developed countries; in turn, as in other regions, itwas in tune with the global conception of eco-efficiency and clean production, fostered by the Rio Summit92 by the WBCSD with the focus on the private sector. Such focus, expressed in the book Changing course:a global business perspective for development and environment, by Stephan Schmidheiny and the WBCSD,started to gain force in the decade we are centering on.

While concepts referring to environment gained momentum, the term philanthropywas being displaced bythat ofsocial investment or that ofCSR, almost interchangeably and confusingly. By the late 1990s, (andstill today in many cases), CSR was understood as punctual cases, largely infrequent, from the companytowards the community, towards a particular group of the population or towards the environment.

The association between sustainability and responsible business practices in Latin America started to gain

force in the first decade of this century, when the social developmentand economic developmentconceptsbegan to turn intosustainable development, and companies overall management process was expected totake the triple bottom line (economic, environmental and social) as a parameter for its decisions and riskassessment. The leitmotiv of this stage, as identified by the interviewees, was the win-win concept, whichrefers to the acknowledgement of the interdependence between businesses and community, especially innot always stable contexts as the Latin American ones.

While the CSR subject was progressing, an answer to Latin Americas particularities, not considered orsomewhat overlooked in global developments, was being sought. Thus, specific approaches were adoptedin issues like labor conditions, poverty, lack of access to basic services; in particular types of companieslike the small- or medium-sized ones and cooperatives; and in diverse regions, like Central America. WithinLatin Americas own frameworks, existing rules began to be adapted and new ones created.

Just as in organizations and networks, Latin Americas characteristic diversity prevents continent-related

of inter-sector alliances, social enterprises and inclusives businesses. Among its publications, threebooks published by Harvard University Press and the IDB stand out: Social Partnering in Latin America(2005), Effective Management of Social Enterprises (2006), and Socially Inclusive Business: Engaging thePoor through Market Initiatives in Iberoamerica (2010); and a collection of 70 teaching cases published byHarvard Business School Publishing.

New communication or CSR-specialized dissemination media began to emerge regional ones likeComunicaRSE, which initially centered on Argentina and later expanded its focus to Iberoamerica, ornational ones like Stakeholders magazine in Peru or massive media that started to include CSR sectionsor supplements, like La Repblica, in Colombia.

In contrast with the diversification of organizations in the above-mentioned areas, there is a consensus,among the interviewees, on the shortage of public agencies involved in CSR promotion and on the need toadopt responsible criteria both in policies and tax schemes and public management.

There are countries in which, throughout the decade under study, national agencies were set up to boost

CSR-related areas, for example, national committes to foster clean production through public-privatecooperation (Consejo Nacional de Produccin Limpia in Chile, Centro de Eficiencia Tecnolgica in Peru,Centro de Produccin Ms Limpia in Uruguay). Or, within the framework of the review of the Guidelines ofthe Organization for Economic Cooperation and Development (OECD) in 2000, the National Contact Pointsin Argentina, Brazil, Chile, Mexico y Peru to promote the recommendations of governments to multinationalcompanies with voluntary principles and regulations for a responsible corporate behavior in tune with theexisting legislation.

With this diversity of fields in which CSR is developed, coordination between sectors is increasingly usualin Latin America. To the innovative alliances between companies and civil society organizations wellbeyond the philanthropic nature that used to link them,public-private alliances were added plus anincreasingly deep job among civil society organizations, companies and public agencies. The growth oforganizations and the coordination ability led to a strengthening of the movement through regional, intra-sector and inter-sector integration, in several cases with networks being consolidated that, when sharingknowledge, paved the way for countries lagging behind through conceptual and methodological packagesthat simplified processes for organizations and business.

mulTisecTor cooperaTion: The consejo consulTivo nacional de responsabilidad social in

cosTa ricaSince 2008, Costa Rica has had the first national multi-sector advisory committee for social

responsibility of Latin America. This is the Consejo Consultivo Nacional de Responsabilidad Social (CCNRS,national advisory committee for Social Responsibility), an alliance of public and private organizations andthe civil society with the purpose of generating a p latform of constant and sustainable integration to definean agenda of social responsibility. While it emerged boosted by the CSR subject, the CCNRS opted to focuson the term social responsibility, which refers to a concept of co-responsibility reaching every player overand above its field.

The inter-sector nature of CCNRS allows for the interaction among diverse areas and this joint workboosts measures, experiences and efforts around Costa Ricas social responsibility. The purpose is to havesome weight in the design and implementation of public policies through alliances, socially responsibleproduction chains, the demand for transparency and accountability and institutional strengthening.

The CCNRS is made up of full members and honorary members. Full members: Ministry of Economy,Industry and Trade, Chamber of Industries of Costa Rica, CEGESTI, Instituto Centroamericano de Administracin


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and diversification of these dissemination instruments and places, with some expanding its scope, froma national one to an international one, like ComunicaRSE and the Mapeo de Promotores de RSE, initiallywith the focus on Argentina and today with an Ibero American and Latin American scope, respectively.The conferences specialized in CSR reflect at least at a theoretical level the conceptual way of CSR,from philanthropy to sustainability. In Latin America, the people interviewed regard as most emblematicthe conferences organized by the Ethos Institute (national since 1999 and international since 2005) andthe Inter-American ones organized by IDB (which started in 2002). They also mention the Central Americanconferences, ConvertiRSE (since 2002), and then each interviewee refers to the national ones in their owncountry. The regional conferences have been a means of being updated, meeting peers and defining goalsfor CSR professionals and experts. They have been the breeding ground for knowledge and horizons, withthe views of inspiring visionary, oftentimes subsequently invited to national events in each country.

evoluTion of csr meeTings: The idb conferences

Regional conferences allow showing how the proposals on this subject have been evolving as wellas their drawing power. For example, let us take a look at the Inter-American Development Bank (IDB)Conference, created with a continent-wide focus

The various subjects to do with CSR are clear in the Annals of the successive Conferences: in 2002integrated reports was started to be discussed; in 2003, the application of CSR to human resources andthe opening of new markets at the base of the pyramid; in 2004, companies environment responsibility;in 2005, there is a reference to sector developments (mining industry and hydrocarbons) and to the publicsector responsibility with CSR; in 2006, the fight against corruption is considered; in 2007, albeit withantecedents in previous years, free trade treaties are important issues and they also mention the needfor the private sector to get involved in malnutrition subjects and the development of inclusive business(which was dealt with more deeply in 2008 and 2009 during the world economic crisis); in 2009, the climatechange.

As regards drawing power, the table shows the increase in the total number of participants betweenthe first and last conference, and how the number of Latin American participants increased proportionally(with the caveat that the first conference took place in Miami, the only occasion outside Latin America).

Piip IDb I-ami c, 2002 d 2009

Participants2002 2009

Number % Number %

Latin America and the Caribbean 256 50,89 657 88,18

Other regions 247 49,10 88 11,81

TOTAL 503 100 745 100

Source: Own elaboration based on IDB/MIF information provided for this survey.

Fuentes: Annales of the IDB Conferences, from 2002 to 2009 | www.csramericas.org

At the same time major CSR conferences start, the interest in the subject translates into the increase inacademic research, initially aiming at reviewing, studies and dissemination of best practices cases. A casein point is SEKN, which in 2001 was a pioneer in its continent-wide approach towards alliances betweencompanies and other players.

In the course of time, sector studies on companies and their CSR behavior started to emerge, just about

generalizations about the development of concepts associated to CSR and their interpretations. Theappropriation of CSR varies on the basis of the socio-cultural, economic and political realities of eachcountry, and even within different territories in a given country, or still among different players in differentfields or the diversity of business sectors in a very same area. Upon going over some reference publicationsdevoted to the subject, it is possible to see that by 2005 there was no common definition of CSR in LatinAmerica, but this was precisely one of the core issues at debates, discussions, conferences and meetings.The Ethos Institute is presented as one of the main leaders with foresight, but as it is so interwoven withBrazils reality, the interviewees regard this view as far from the possibilities of the other countries in theregion, which hinders the scope expansion of its models.

When listening to the interviewees opinions, based on the reality of their own countries, we can see thatCSR has different interpretations and is applied in d ifferent ways and degrees of depth, albeit, in the pastfew years, the trend has seemed to be taking on a continent-wide general interpretation common to all themajor CSR organizations, which coincides with the international advance towards the idea of sustainability.

Today, it is common to see the CSR subject present at meetings of the private sector or at those of social

organizations. This means that, at least, the companies and groups participating in these events knowthe existence of CSR, have a rough idea what it is all about or, at least, heard of the terminology eventhough using the same words they might refer to different approaches or there might not be coherencebetween their theory and their practices. In contrast, while it is somewhat unusual to hear companies saythat their only obligation is to pay salaries and taxes, Latin American medium-sized companies and bigcompanies too still present a deep lack of information, a high degree of prejudice and still associateCSR with philanthropy or even with a marketing strategy rather than with a model of the whole businessmanagement process.

In this context, by the late 2000s, the relation between CSR and sustainable development is beginning tomerge in the sustainabilityconcept while there are still debates put forward by those who think CSR shouldbe obligatory, regulated and controlled by the states, and those who think that getting to the point of atransparent self-regulation is part of the very same corporate responsibility. A controversy associated tothis subject is who should finance the necessary investment to achieve sustainability, (for example, changesin the energy matrix). Simultaneously, from different CSR promotion areas, the need for public policiesstimulating the implementation of responsible practices is often requested.

Along with the progress of the concept ofsustainability, there is an incipient debate on the need togive CSR a twist. Organizations like the WBCSD and, in Latin America, the Ethos Institute, are puttingforward their view of a development model for the years to come to do not only with corporate behavior,but also with the review of the habits of individuals and institutions as well as the rules of the game ininteractions in order to achieve a deep transformation, taking into account that processes take a long timeand that the poverty figures, climate change and crises as the financial one show the need for a changeis increasingly urgent. Among the people interviewed, some agree with this strategy while others remarkthat the important point is to keep working on the basic concepts established so far and the use of thetools already developed as most companies in Latin American countries are still not aware and, much lessso, apply a whole CSR process. Therefore, the debate seems to revolve around the co-existence of bothstrategies and put forward the same question, whether it is necessary to aim at more drastic changes orkeep the process moving without disrupting it.

Dissemination mechanisms

Since the 1990s, CSR is disseminated and debated in publications, conferences, congresses, the mediaand events promoted from different CSR-related areas. Throughout the last decade, there was a growth in


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ECODES, and Fundacin Chandra).This research showed increased space devoted to the subject, but also a superficial approach and

low intensity, and a deep lack of information reflected in the contents. For example, the analysis of themonitoring processes show that it is far more usual to find information about the relation of companies interms of social investment or philanthropy than data about their relation with other groups such as supliers,workers or public service agencies. This seems to indicate lack of knowledge of CSR in general terms anda bias when taking as responsible practices those applied to the community and not towards inside of thecompanies except in questions of cooperative voluntary work (which also includes among their activities alink with the community). Thus, they become involved in certain contents such as donations, volunteeringand charity, and there are scarce examples of those related to models of good labor practices, full exerciseof the rights, economic, social and cultural inclusion in value chains, among others strategic questions ofCSR in businesses. In the same line, companies are often a source of information, but not the interestgroups involved, such as workers, consumer associations and suppliers.

The outcome of the monitoring of the media clearly showed the need to encourage the criticalperspective and train media professionals in CSR. In this sense, various Latin American organizationspromote the subject among journalists, seek to cooperate in a network, give training courses and grant

awards to the best media coverage. As a common denominator, they suggest a transversal approach ofresponsible practices within the context of sustainability from every area focused on in the media.

Sources: www.avina.net| FNPI, AVINA Foundation, Fundacin Carolina and Pontificia Universidad Javeriana. La otra cara de la

libertad. La responsabilidad social empresarial en medios de comunicacin de Amrica Latina.

2.1.3 Tools

The pillar of evolution of the Tools comprises the progress in the necessary tools to apply, measureand communicate CSR. Indicators, social reports, standards, indexes, certifications, conduct codes,sector developments, regulations, public policies and legislations. It also comprises the training andprofessionalization of this subject, essential to apply and optimize the tools.

Integral models

In its pillar of Tools, the Timeline allows distinguishing a process that begins with the emergence of toolsthat, in different degrees, contribute to the CSR process. At the beginning of 2000s, international proposalsheaded by GRI and the principles of the UN Global Compact set the tone, and at the same time the Ethos

Institute indicators were launched. The presence of these instruments expanded. As from 2000, the UNGlobal Compact local networks were created in the region (first, in Paraguay, and then, in Argentina,Bolivia, Brazil, Chile, Colombia, the Dominican Republic, Mexico, Panama, and Peru), and in 2009, theRegional Center in Latin America and the Caribbean started to support the UN Global Compact. By 2007,GRI established in the Ethos Institute its first Focal Point in the world with the purpose of coordinating themeasures on the continent, and is presently developing a media sector supplement together with FNPI,the AVINA Foundation, he Journalism Studies Program at Pontificia Universidad Javeriana de Colombia.As to Ethos indicators, they were adapted to the regions different countries, and then they had a LatinAmerican version within the framework of the CSR Latin American Program (Programa Latinoamericano deRSE, PLARSE).

always at a national level, with some continent-wide view as is the case of the overview of the media bythe Fundacin Nuevo Periodismo Iberoamericano (FNPI), which analyzed 37 companies with almost 120media in 13 Latin American countries.

publicaTions focused on mulTinaTional companies: spains inTeresT

Outside of Latin America, Spain was the most pro-active country in generating publications aboutthe region, specially aiming at raising awareness and providing tools for multinational companies (many ofwhich Spanish), through cooperation institutions like the Agencia Espaola de Cooperacin Internacionalpara el Desarrollo (AECID) and the Fundacin Carolina and organizations like Fundacin Ecologa y Desarrollo(ECODES) and the Observatorio de la Responsabilidad Social Corporativa. Especially after 2006, there werepublications focused on: the relation between Spain and Latin-America regarding CSR; the private-publicagreement; corporate practices against corruption, companies contribution to the Millennium Objectives ofDevelopment; studies on the value of Spanish companies in the region; CSR interlocutors in Latin America.

Sources:www.fundacioncarolina.es | www.ecodes.org| www.observatoriorsc.org

Among the remarkable mechanisms for CSR promotion, most of the interviewees highlighted awards sincecompanies regarded them as a communicable result, of public domain, of their practices. The increase inthe number of companies applying for different competitions in order to obtain recognition shows that,for companies, being socially responsible represents a value. A pioneering case in Latin America wasthe Empresa Socialmente Responsable (ESR) emblem, launched in 2001 in Mexico by Alianza por la RSE(AliaRSE) and the Centro Mexicano para la Filantropa (CEMEFI), and expanded in 2009 along with ForumEmpresa to include a regional methodology. Other awards and recognitions mentioned are those grantedby organizations such as Centro para la Accin de la RSE in Guatemala (CentraRSE), the CorporacinBoliviana de RSE (COBORSE), the Ethos Institute or Per 2021. Also, in the course of time, awards to qualityand excellence incorporated CSR criteria, such as the cases of Costa Rica, Argentina and Chile (in the lasttwo cases they are part of public policies).

Regarding the CSR media coverage, along the years the space devoted in traditional media increasedalthough with a superficial content and an uninformed approach, which shows lack of information asreflected by the surveys in Ibero America fostered by the AVINA Foundation in the first decade of the2000s. At the same time, the presence of CSR in the media is clear when the Observatorio Uruguayo deMedios was created and among its responsibilities was to audit CSR issues. On the other hand, several

publications in different formats specialized in the subject emerged, disseminating companies practices,providing an agenda of events and training centers and disseminate the debates coming up.

The communicaTion of csr according To The mass media

The information disseminated through the media is considered a potential driving force of CSR. Withthis purpose in mind, in 2007 the monitoring boosted by the AVINA Foundation in eight Ibero Americancountries of CSR coverage in the traditional media (newspapers, magazines, radio and television) was madeknown. The research was started by the AVINA Foundation with a qualitative and quantitative researchmethodology developed by the Agncia de Notcias de los Derechos de la Infncia (ANDI) and the InstitutoEthos de Empresas e Responsabilidade Social, which they carried out in Brazil and, along with localorganizations, in Argentina (Wachay), Bolivia (Fundacin Emprender), Chile (La Aldea), Ecuador (QuitosChamber of Commerce), Paraguay (Agencia Global de Noticias de Global I nfancia and Red de Empresariospara el Desarrollo Sostenible, REDES), Peru (Toulouse-Lautrec) and Spain (Fundacin Ecologa y Desarrollo,


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The increase in the supply of renowned models helped companies that had adopted CSR individually to unifycriteria and be able to review, measure, compare, plan and communicate their actions. Meanwhile, just astools increased, so increased the number of professionals interested in offering companies their applicationand the companies need to train their staff in these subjects. This led to a rise in CSR workshops andseminars; the proposals of academic training (such as the case of the universities the network Red UniRSEconcentrated), which incorporated the subject into traditional careers and opened post-graduate courses;sector training courses (as that of the Vincular center in Chile with the fruit-producing sector) and thecourses on the use of CSR indicators. There has been a gradual increase in the professionalism of CSR andthe new traditional-career graduates start to reach the labor market with a wider-scope view of companies,of their responsibility, risks and competitiveness.

Presently, international tools coexist with local ones (the latter, in tune with global standards), whilethe process of the ISO 26000 guide, significantly present in Latin America, sought to provide SocialResponsibility with a homogeneous framework.

The iso 26000 process

The process of debate of the new ISO 26000 standard on Social Responsibility, boosted by theInternational Organization for Standardization (ISO) agency, started in 2003 due to the importance thesubject gained and the diversity of tools and it had the support of representatives from several countriesand sectors, to be finally approved in 2010.

Latin America had an important presence in the process, which was reflected in analysis documentsas in a survey commanded by the Economic Commission for Latin America and the Caribbean (ECLAC) andthe Deutsche Gesellschaft fr Technische Zusammenarbeit (GTZ) performed in 2006, Avances en la discusinsobre la ISO 26000 en Amrica Latina: Precedentes para apoyar el proceso ISO en la Regin.

In figures, if we consider the seven international plenary meetings marking the ISO 26000 processin 2005-2009 (in Salvador de Baha, Bangkok, Lisbon, Sydney, Vienna, Santiago de Chile y Qubec5), LatinAmericas presence relative to the other regions represented 22% with 376 participants over a total of1,701. Thus, the region ranks above Africa, North America and Oceania; and below Europe and Asia.

Source: Own creation based on the minutes of the ISO 26000 international plenary meetings, on www.iso.org

5 The last meeting, organized in 2010 in Denmark, is not included as the data were still not available at the time of the survey.

The evoluTion of The eThos indicaTors

Among Latin American indicators for CSR process, the most remarkable due to their scope are thoselauched by Instituto Ethos de Empresas e Responsabilidade Social in 2000. The Ethos indicators were firstcreated for Brazil and then, translated into Spanish based on the adaptation of the Instituto Argentino deRSE (IARSE, 2005 and subsequent editions), and adapted for Per 2021 (2006), the Corporacin Bolivianade RSE (COBORSE, 2009) and the Asociacin de Empresarios Cristianos (ADEC, 2009), in Paraguay.

The Latin American version of the indicators was launched within the framework of the ProgramaLatinoamericano de RSE (PLARSE), an initiative promoted by AVINA Foundation, Forum Empresa, theOrganizacin Intereclesistica de Cooperacin al Desarrollo (ICCO) and the Ethos Institute, which has thecooperation of ADEC (Paraguay), CECODES (Colombia), CERES (Ecuador), COBORSE (Bolivia), Ethos Institute(Brazil), IARSE (Argentina), Per 2021 and UniRSE (Nicaragua).

In turn, the Ethos Institute joined forces with sectorial organizations to develop specific indicators,thus creating indicators for bread and pastry production, restaurants and entertainment, paper and cellulose,mining, banks, oil and gas, public transportation, civil construction, newspapers, franchises. It also carried

out, together with the Servio Brasileiro de Apoio s Micro e Pequenas Empresas (Sebrae), various editionsof indicators for micro- and small-sized companies, also with adaptations in Spanish by IARSE, for small-and medium-sized companies.

Part of the CSR subject evolution can be seen through the various editions of the Ethos indicators.In the 2003 version, for example, some aspects were incorporated like customer and employee privacyprotection, some questions like the elaboration of the social balance were reinforced, the value of diversity,remuneration policies, benefits and career path. A year later, points related to corporate governance, fairtrade, moral harassment and forced labor were added. In 2005, the new issues were: sustainability inforestry economy and citizen construction by companies. The 2006 version incorporated the Business-Child Development Index, about life quality and childrens rights indicators, and reinforced diversity bycommitting to racial and gender equity. There is also a deepening quantitative process as in the 2009version there are 5 general indicators more than in the 2000 version and, within the general indicators, thebinary indicators increased from 66 to 294 and the quantitative indicators grew from 55 to 169.

Sources: www.ethos.org.br| www.centrarse.org | www.iarse.org | www.coborse.org | www.peru2021.org | www.adec.org.py |

www.plarse.org

While these instruments were gaining ground consolidated, several international standards like the SA 8000(Social Accountability International, SAI, connected with labor rights and value chains, carrying out training

programs for workers in countries like Argentina, Brazil, Chile, Honduras, Mexico and Costa Rica since 2001)or the Accountability 1000 (known as AA 1000, incorporates the participation of the interested parties inthe process and which opened an office in Brazil), became consolidated. In turn, national instruments oradaptations of existing instruments to the Latin American reality started to be developed.

Based on the above-mentioned initiatives, models began to be created in a

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