Corporate Social Responsibility in Latin America

Presented at the Center for Latin American Studies
Catholic University of Eichstätt-Ingolstadt
Eichstätt, 11 July 2013

Transcript

1. Corporate Social Responsibility in Latin America Cristian R. Loza Adaui Wirtschaftswissenschaftliche Fakultät Katholische Universität Eichstätt-Ingolstadt Eichstätt, 11 Juli 2013
2. Corporate Social Responsibility ?
3. Latin America ?
4. “Every attempt to fix a unique identity for Latin America requires discriminatory surgery that excludes and abolishes millions of Latin Americans, along with many forms and manifestations of its rich cultural variety.”! “Latin America’s wealth lies in its being many things simultaneously—so many, in fact, that it is a microcosm in which all the races and cultures of the world coexist.” ! “This amalgam is our greatest patrimony: to be a continent that lacks an identity because it contains all identities. And, thanks to its creators, it goes on transforming itself every day.” ! Mario Vargas Llosa!
5. 300 ! years of ! PRE–Columbian! HISTORY!
6. 23 ! States!
7. Most of them around ! 200 ! years of! INDEPENDECE!
8. !All geographic zones: Caribbean, Andes & Southern Cone !
9. GREAT ! differences in! Population Density! & Amplitude!
10. ETHNIC! DIVERSITY!
11. !DIFFERENCES IN economic and social DEVELOPMENT!
12. !RICHNESS ! !IN NATURAL RESOURCES!
13. Governments by Ideology 2013! Left Center-left Center-right Right Argentina Cristina Fernández Brazil Dilma Rousseff Chile Sebastian Piñera Panamá Ricardo Martinelli El Salvador Mauricio Funes Colombia Juan Manuel Santos 21st Century socialist left Mexico Enrique Peña Nieto Costa Rica Laura Chinchilla Bolivia Evo Morales Peru Ollanta Humala Guatemala Otto Pérez Cuba Raúl Castro Uruguay José Mujica Paraguay Horacio Cartes Ecuador Rafael Correa Dominican Republic Danilo Medina Nicaragua Daniel Ortega Honduras Porfirio Lobo Venezuela Nicolás Maduro
14. LATINOBARÓMETRO 2011!
15. LATINOBARÓMETRO 2011!
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30. Corporate Social Responsibility in Latin America
31. “It is difficult to generalise about CSR in Latin America, as it is to generalise about anything in Latin America.”! Stephan Schmidheiny!
32. Characteristics! •  The “foreign roots of CSR” means that it is not as appropriate for the region as it could and should be (poverty, tax avoidance, corruption, etc.).! •  Governments are less effective at playing their role, thus there is continuing pressure by Latin American civil society for business to meet needs that governments are not meeting.! •  The increase of democracy in the region has created opportunities for people to speak out, and, as governments fall behind in meeting social needs, pressure increases on the private sector.!
33. Discussion on philanthropy, social investment and CSR! •  Strong tradition of corporate philanthropy.! Philanthropy Social investment CSR Motivation Philanthropic Socio- economic Integral Resources Economic Economic Multiple Impacts In the society Society and indirectly in the Firm Society and directly in the Firms performance Benefits for the Firm Scarce Limited Multiple Participants Board Board + others Everybody
34. Responsabilidad Social Empresarial en América Latina Corporate Social Responsibility in Latin America VS.
35. CSR vs. RSE! •  Corporate Social Responsibility is not the same as Responsabilidad Social Empresarial.! –  Corporations vs. empresa! –  In LA more than 95% of the firms are small or medium enterprises.(SMEs)! –  SMEs (formal and informal) play a social role: as instrument of social cohesion and as employments font.! –  SMEs are mostly run by the same owner and his family. CSR depends a lot of the personal values and objectives of the owner.! www.wfi.edu
36. CSR and SMEs! •  Financial limitations impact directly on CSR practices.! •  More reactive than proactive (limited resources).! •  Strong dependence on personal relationships.! •  CSR is sometimes perceived as a new type of cultural imperialism.!
37. CSR in LA! •  CSR in Latin America has always been more focused on social issues than on environmental issues.! •  A lot of encouragement of CSR in the region has come from the US and EU in terms of norms and vocabulary, but more importantly in terms of big companies improving their supply chains in the region or their regionally based projects.! •  There are limited statistical evidence at regional level regarding CSR in the region.!
38. Institutional framework! Source: Forum Empresa 2009
39. CSR in LA! www.wfi.edu Source: Forum Empresa 2009
40. CSR in LA! www.wfi.edu Source: Forum Empresa 2009
41. CSR in LA! www.wfi.edu Source: Forum Empresa 2009
42. Conclusions
43. Corporate Social Responsibility in Latin America Cristian R. Loza Adaui Wirtschaftswissenschaftliche Fakultät Katholische Universität Eichstätt-Ingolstadt Eichstätt, 11 Juli 2013 Thank you for the attention