Below is the report by Núria Vilanova published in the daily economic, business and financial newspaper in Colombia La República on Corporate Social Responsibility.
It is usually said that big fish eat little ones. This topic is changing some aspects of the corporate world, especially in some companies that have used Corporate Social Responsibility (CSR) to boost their internal DNA. This has been lacking Latin America up until a couple of decades ago. CSR policies today have become an important pillar of activity for many companies. Business concerns on questions like ethical behavior, good governance, working conditions, impact on the environment, employment of disadvantaged groups and the development of social, health and education areas; and also entrepreneurship have become increasingly evident.
Companies realized that CSR has positive direct and indirect effects in multiple areas. In the political environment, it is a cure for populism and is committed to increase competitiveness. Through the creation of employment that is well prepared, paid and formal, this helps to increase productivity and add value to the product offered. In the social field, this helps to promote integration and cohesion while decreasing poverty and inequality.
Latin American countries have advanced in terms of CSR, especially Brazil, Colombia, Mexico, Chile and Peru. Moreover, Mexican cement is used in the construction of well made houses; ArcelorMittal Mexico helps to fight against youth addictions and LAN Peru has a recovery plan for public spaces. In Colombia, the work of foundations are highlighted though Corona or the Business Foundation Association. A report from the same newspaper highlighted that social labor drives CSR within 15 companies located in Colombia which include Ecopetrol, Bbva, ExxonMobil, Pacific Exploration and Production, Jumbo, Fedecafé, GM Colmotores, Claro and Éxito Group.
Without a doubt, there is a lot of work left ahead to do for the development of CSR and also the exploration of new avenues. Before companies turned their efforts into cultural patronage and encouraged projects that were not very institutionalized and personalized. Next, Latin American companies, unlike European, replaced the state, trying to get where administrators could not, with programs to support health, food and education. Therefore, for example, some Peruvian oil and mines have taken over the creation of health centers, schools and even roads.
Today, companies begin to assume undertake another challenge in terms of CSR: support entrepreneurs and the growth of SME’s. Entrepreneurial support for the creation of competitive and productive SME’s that have capacity for innovation and internationalization is emerging as a great opportunity. It has good SME’s that transforms ideas into good CSR and collaborate with the private environment with cooperation from the public-private areas. The region is exemplary in terms of entrepreneurs and types of entrepreneurship but it needs to channel this so that it is sustainable in the long term and that it is environmentally and economically feasible. In many countries, 80% of companies are SME’s which supports 40% of the country’s GDP. Their size prevents them from investing in technology, innovation and internationalization.
Spain has established an innovative initiative that can serve as a model and guide as how to support SME’s within the CSR of big corporations. Companies like Telefónica, BBVA and Repsol designed support programs for entrepreneurs with the aim of helping then grow and avoid that fateful percentage of deaths of new companies in their first three years of life. Another initiative, the Spanish Competitiveness Council (Consejo Empresarial de la Competitividad) and the Family Businesses Instutite (Instituto de Empresa Familiar) have been sponsoring SME’s to contribute to their internationalization. In this way, it talks about what was previously said: big fish does not only refrain from eating little fish but also help them to grow which benefits everyone.