1. In which category does your company operate?

Fluvial transport of liquid cargo (hydrocarbon derivatives) and general cargo.

2. What is the vision of your company?

Vision: To become the leading regional company in the fluvial transport of liquid cargo and general cargo through innovation, quality, safety and corporate social responsibility.

3. Do you think that your country is concerned in act with responsibility?

It is the feeling of some companies that are committed to equality, respect and justice. Our government seeks to promote the values that are the guidelines for a society and a country with responsible and honest conscience without corruption. We are in this process in which joining forces and the same interests between companies with CSR. With our Government and our Laws, we will achieve good results.

4. What aspects do you consider CSR improves in the business environment that practice it?

The difference, in our surrounding, in many aspects are: in the work environment because the work environment becomes pleasant, respectful, with open communication, which promotes ethical values and rejects corruption and crimes, respecting and enforcing laws and as a result of this, in our external surroundings we make the difference with the competition (other companies of fluvial transportation) before the eyes of potential customers who prefer to do business with us for demonstrating that we have standards of an integrated management system of Security, Health, environment, quality and social responsibility; also, a place of respect and status in our society because new collaborators want to enter to work in our company and new clients look for negotiating with us.

In general, it allows us to maintain contracts and economic stability over time, and allows us to survive in this time of crisis for the oil sector.

5. What changes would you consider that will be in the society if companies succeed in obtaining the Certificate CSR 2011.3?

We would speak the same language, and we would have sense of respect for our neighbor, their rights, and we would fight together against corruption, and raise our voices and our strength to promote laws in government that favor and support much more social responsibility projects. Our society and our country would be an example to follow. We would reach a sustainable level of development like the ones of the developing countries.

6. Which challenges take your company to obtain the Certificate CSR 2011.3?

To renew ourselves in new projects to help us in continuous improvement. To achieve a change in the mentality, the conscience, the feeling of our collaborators, in the inhabitants of the native communities that influence in the areas of our operations of the fluvial navigation; in our authorities and in society in general, to act with values and ethics; and help us promote rejection of injustice, crime and corruption.

7. Which Corporate Social Responsibility projects has your company?

Hiring people from native communities for the surveillance in our water areas and urban facilities.

To train teachers and students of special basic education centers, and collaborators of banking agencies in conjunction with the local authorities for the development of earthquake drills and the correct use of fire extinguishers.

To train the inhabitants of the native communities about the dangers and risks that could exist in an eventual incident of loosening of our convoys or buoys.

8.How do you think your company has contributed to the development of your community?

We contribute our bit in spreading our policy commitments in Corporate Social Responsibility prior to conjoint activities in the development of drills and volunteer trainings to schools on security issues in case of earthquakes by using fire extinguishers.

Courses on the dangers and risks in the care of buoys or water convoys to the inhabitants of the native communities.

Providing employment fulfilling social benefits according to law, permanent trainings to residents of our community and native communities.

9. Do you think CSR is in fashion or has it come to be part of every company that you consider responsible?

Corporate Social Responsibility is no in fashion, but rather came to stay as part of all companies that aspire to have a fair society, with sustainable development and that wants to adopt their voluntary commitments in its Corporate Social Responsibility Policy.

Interview: Eng. Patricia PANDURO GARCIA – EHS Supervisor

Photo: Rafael Vargas – EHS Supervisor at Encuentro de RSE Perú

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The figure struck me!

I had an idea that there was a problem with plastic, but had not captured the entity, and perhaps neither you.

There are five major zones of accumulation, in the so-called subtropical gyres in our oceans. Ocean currents which operate like conveyor belts of plastic, but the plastic remains are at points furthest from the coast to the depths of the abyss environment to 4000 meters.

They have enough decades of massive use of plastic to create a problem of marine pollution that now the science is mitigate.

Not only is the pollution and waste, but plastic is slowly turning into ever smaller pieces and each stage presents a specific damage.

Those microplastics and nanoplastics were before bottles, caps, anything, and they have been fragmenting until he became so small that they are very difficult to remove and easy to swallow for the marine fauna. 

Very small animals, seabirds, dolphins, turtles, whales, in all the studied specimens remains plastic in their stomachs with a cocktail of contaminants, whose impact is difficult to assess.

The nanoplastics can be ingested and assimilated to the tissue of the body of the fish, which then they are ingested by humans, could be long time consuming this plastic and likening it to our own weaving.

The ocean is too vast to clean it and which are far from the coast is microplastic mixed with the marine life, difficult to separate plankton.

The focus of control should be in Earth, must prevent plastics from reaching the sea. Act in coastal areas and in the mouths of large rivers, avoiding that they can reach the sea and disperse.

Much of the marine pollution is plastic, especially containers. In the European Union only recycle around 25% of all plastic waste and almost 50% is still buried in landfills.

Pay for disposable plastic container, and recover the paid to return it, as with the glass or the returnable, so entering a recycling system, could be a quick and effective measure.

What is not seized is worth millions of euros a year. With a circular economy will take advantage and it would partly mitigate the problem.

Sustainability is a matter of urgency and is the responsibility of everyone, fulfill our part, put it on the agenda of politicians and reward with our choice to responsible companies.

Sources:

Green Chamber of Commerce, https://www.youtube.com/watch?v=hg1Da2RUids

El País Semanal, de Madrid, Nota de Silvia Blanco.

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As author explains in the presentation note, it´s about volume 5 of the bibliographic collection of CSR-MSW, on Corporate Social responsibility and University, which he directed in the University Simón Bolívar of Barranquilla (Colombia), institution that also manages the “Indo-US development” magazine, founded fifty years ago by José Consuegra Higgins, one of the social thinkers most important in Latin America in recent decades.

Roster of luxury

As the title explain, the book brings together a select group of prominent masters of the responsibility Social Enterprise, who Montoya has interviewed during the last ten years, “whose central ideas – says – are presented in didactic, simple, with support of the journalistic language, which greatly facilitates your reading and comprehension”.

“As many of them – adds – prestigious academics, consultants and business advisers, these pages can be purchased Basic, theoretical training on CSR and its essential topics (sustainability, environment, ethics, inclusive business, etc.), but also the way to practice in different social organizations, both in the Government and business universities and foundations” ‘, without exception “.

“They are authentic teachers of CSR,” assures to observe that there are some of the highest authorities of the world on the subject, such as James Austin, Professor of Harvard University; Hans Küng, father of the Global Ethics; Ernst Ligteringen, former head of the Global Reporting Initiative – GRI-; Gunter Pauli, President of the Zeri Institute, based in Japan, and François Vallaeys, prestigious international specialist on University Social responsibility (MSW).

In Spain, for its part, include Manuel Escudero, Juan Alfaro and fair Villafane, while Latin America there are representatives of Brazil (Paulo Itacarambi), Chile (Dante Pesce), Uruguay (Luis Perera Aldama), Venezuela (Italo Pizzolante) and Colombia (Orlando Ayala, Rodrigo Villar, Jorge Yarce, John Karakatsianis, Jaime Moncada, Mauricio Lazala, Galo Burbano and Julio Roberto Gómez, among others).

“They are, without a doubt, a roster of luxury, summoned all around Corporate Social responsibility, whose lessons we have much to learn”, writes.

English Edition

Same, as his previous book on CSR-“key issues of Corporate Social responsibility” – like, this was already translated into English and its print edition has just been published in the United States for global distribution.

“I do not doubt – says his translator, Peter M. Tase – in this new book to achieve its mission, both in schools and in companies and other social organizations, naturally including public entities from the highest authorities of the Government, to contribute to their greater social responsibility”.

“These pages – adds in his preface to the work, will benefit not only the community but also for their own businesses, provided they develop appropriate models of CSR management”.

“At the end and after transmitted teachings come from authentic teachers of the responsible Social Enterprise, will have opportunity to see what their readers in Colombia, United States and other countries”, he said.

The Edition can be purchased online at:

http://www.lulu.com/shop/jorge-emilio-sierra-montoya/masters-of-corporate-social-responsibility/paperback/product-22890157.html

The interviews included in the book “Masters of CSR” are which are reported in BizzNews, provided exclusively by its author, as those made with Ernst Ligteringen, Gunter Pauli, Dante Pesce, Orlando Ayala and Paulo Itacarambi, recently published.

In our future editions continue to appear the other interviews of this work.

Text of the prologue

We reproduce below the text of the Foreword written by his translator, Peter price English editing:

I met Jorge Emilio Sierra Montoya, as is usual at this time by internet. It was there, in the network of networks, where I found his articles, published in portals in Colombia and other countries that caught my attention in Milwaukee, United States, where I live and developing my work, especially as a translator in several languages from the first moment.

Why was I interested in these writings? To tell the truth, was for my proximity to Latin America, where I lived for several years, mostly in Paraguay; by my professional training in international politics, which led me to search for information on Colombia, related to the current peace process with the guerrillas, and of course the search for journalistic material impact for my translations and their dissemination in various media where I am a contributor.

It is possible that just by chance I found it. However, it was gratifying to bumping me with his articles on Corporate Social responsibility (CSR), theme that was indeed quite novel for me, just mentioned in our classroom interaction, and which has since identified by its importance, worthy of their wide diffusion in the United States and the rest of the world.

I was attracted by his style simple, friendly and easy to read in any language and teaching in great degree, even on matters that are usually given complexes (treated by specialists with their characteristic rigour which almost always repels readers), also the broad intellectual vision of the author – on aspects of political, economic, cultural, ethical, etc., consistent with my own personal concerns.

Hence, I request him by email, I discovered again in internet and investigate more about him as a journalist and writer, and then I request his authorization to translate one of those articles in English. Immediately, so I translate and publish it as we agreed before, even with versions in other languages (Italian and Vietnamese, for example), but then I could do it with two more languages and also with a short interview that we did about CSR. Meanwhile, our friendship, would be strengthened.

When I proposed an entire book, where to meet about thirty trials even already translated, my surprise could not be more pleasant: this work was ready, in printing process, entitled key themes of Corporate Social responsibility, within a bibliographic collection of who runs the Simon Bolivar University of Barranquilla (Colombia).

This made it possible for Main Topics on Corporate Social Responsibility, result of my translation, appeared at the beginning of this year, the same as this second volume: Masters of the responsible Social Enterprise, whose English Edition is published at the same time to its original in Spanish.

As the Rector of the USB, José Consuegra Bolívar, in the preface to the previous volume, is a work “of enormous interest to the academic community and the business sector of the United States, first economic power that seeks to maintain and consolidate its international leadership in the midst of a strong competition to the progress of countries such as China”, not without mentioning how “the recent presidential campaign between Democrats and Republicans, put precisely this objective at the Centre of its priorities.”

I have no doubt, therefore, that this new book to achieve its mission, both in schools and in companies and other social organizations, naturally including public entities from the highest authorities of the Government, to contribute to their greater social responsibility, benefit not only the community but also of themselves, own business, provided they develop appropriate models of CSR management, to which the following pages can be quite useful.

“At the end and after transmitted teachings come from authentic teachers of the responsible Social Enterprise, will have opportunity to see what their readers in Colombia, United States and other countries”, he said.

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Companies are well aware that in a free market system, they depend on consumer choice in order to sell their products and services.

If a business doesn’t sell, it’s not going to last long!

That’s why companies have been carrying out the strategy of customer analysis for some time. They want to know about customer needs, preferences, ways of thinking, etc. etc.; everything that helps to get customers’ attention and, ultimately, their business. Companies try to meet the needs of customers by investing in surveys, management systems and by doing whatever else they can in order to achieve this goal, in accordance with business logic.

Capitalism, liberalism and free market competition work reasonably well because they reflect and interpret reality.

They are not perfect systems but rather perfectible systems, to the extent that they can actually improve reality (in regards to ethical values).

Experience has shown us that when regulations are increased to a certain level, everything starts to fall apart, regardless of the good intentions behind it. Trying to adapt reality to our needs and desires distorts things and creates consequences.

However, we can modify reality with our behaviors.  

If I demand as a consumer that the products and services I consume are made in ethical and sustainable ways, then the market will react immediately and produce them in that way.

If I don’t make use of this right, then I’m left to the good intentions and possible actions of businessowners (and for the record, this applies to the public in a similar way, but that’s another story) and, like with anything, there are good ones and bad ones.

So, why not award the good ones with my business?

If I choose to pay less without caring whether my supplier causes contamination, human rights abuses, etc., then I have to assume that I am the same or worse.

And if I buy something at the same price without taking into consideration the way the goods were produced, then I’m going against logic and common sense.

If I’m not a responsible citizen, then I am a hypocrite to demand things that I’m incapable of doing myself.

I just saw on the news that several international retailers have suppliers in Turkey that allegedly employ undocumented Syrian refugees, some of them underage (BBC UK, 24 October 2016). According to the BBC’s “Panorama” investigation,  the British brands Marks & Spencer, Next and Asos use suppliers that allegedly employ underage Syrian immigrants in Turkey or pay extremely low wages to adults, taking advantage of their situation.

Personally, I make sure not to buy any products from these businesses unless they can prove their innocence.

For example, I decided never to buy another vehicle from Volkswagen ever since it came out that their senior management orchestrated organized fraud against consumers while hypocritically presenting themselves as champions for the environment.

Thanks to the court judgments and attitudes of many consumers, VW is receiving a harsh punishment (although not as harsh as I would like in order for it to set an example for the industry; I haven’t even seen one person go to jail for this conspiracy to pollute and deceive!).

 “On Friday, VW released their financial statements from last year and reported a net loss of 5.5 billion euros (about 6.2 billion dollars). They reported that they have reserved around 16.2 billion euros (18.2 billion dollars) in order to cover the costs of the scandal.”

I haven’t bought any Japanese products for years – not until they stop their whaling industry, which is administered  by the Japanese government, a huge bureaucracy of research budgets, annual plans, promotions and pensions.

And so it goes.

Now I rely on the ability to access real-time information in order to make more informed decisions.  

We have to make businesses understand that it’s more difficult to mislead consumers now and that it’s going to end up being more costly to do things badly than to do them well.  

And we should give our business to responsible businessowners that comply with their duties as citizens and that are leaders in social and economic development in their communities.

Responsible citizenship and corporate social responsibility are the true paths to improving our world.

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A model for CSR in Latin America

By: Jorge Emilio Sierra Montoya (*)

A personal commitment

The Instituto Ethos (Ethos Institute) was created in 1988 by a group of Brazilian businessmen who wanted to confirm their personal commitment to Corporate Social Responsibility (CSR), not just the commitment from the companies they were in charge of.

Moreover, their board is in the hands of people representing themselves as individuals rather than a specific company, so that when a board member retires, they aren’t replaced by the individual taking over as president of their company.

It’s a personal commitment in its truest sense, which shows what CSR really means: business owners must be socially responsible if they want their companies to be. Business owners being socially responsible ahead of businesses, one could say.

Therefore, their objective from the beginning has been to commit more and more business owners/executives to this new culture of doing business while being responsible to society, or rather, by being sustainable.

How? It’s very simple: They evaluate the social impact of a company’s different activities so that if they have negative effects, they must be reduced, and if they are positive because they are beneficial to the community, they must be increased.

This doesn’t simply mean complying with existing laws, as some would say. No. You have to go above and beyond legal requirements in order to ensure that every business is sustainable – through their economic, social and environmental impact – and truly achieve social sustainability.

The future of humanity ultimately depends a great deal on our businesses.

A guide to being sustainable

But how can you make businesses become sustainable? It obviously requires changes and that’s precisely what the Instituto Ethos is for – to make those changes happen, explains the Instituto’s president, Paulo Itacarambi.

That goal – adds the director, who has been connected to this organization for a long time – is achieved through various workstreams, related projects, and above all,  through motivational activities at conferences, forums, seminars, etc. that create working groups in companies to advance the learning process.

To this end, they have management indicators and guidelines for developing the value chain containing techniques and methodologies which are extremely useful for making a business sustainable, regardless of its type. 

They have been independently developed by the Instituto, mostly in partnership with similar organizations, such as the United Nations Global Compact and the Global Reporting Initiative (GRI), among others, in the spirit of solidarity that is – or should be – characteristic of Corporate Social Responsibility.

Incidentally, these materials are available on their website: www.ethos.org.br, along with several other specialist publications, and can be used with one simple requirement: credit must be given to the Institute as respect for their intellectual property.

“The materials can be adapted to meet the particular needs of each country”, Itacarambi points out. He stresses that the task of teaching values is didactic in nature, which is why “Uniethos” – the educational arm of the Instituto, in partnership with universities and other academic centers – was created several years ago in order to give training courses.

“These are partnerships specifically with business studies departments”, he explains.

Supportive leadership

It’s supportive work, he insists. For example, they support different media outlets, which – he states – have an enormous level of social responsibility. How do they do this? Again, through partnerships that have enabled them to hold debates on this responsibility of the press; through creating a network of journalists who are committed to this regard (nearly one thousand in Brazil!) and receive regular training; and by awarding an annual journalism prize in CSR – all of which is clearly appropriate.

They clearly support universities, too. An example is the strategy they developed to encourage CSR amongst students; those who address this issue in their thesis can take part in a competition whose results speak for themselves: some of the winning entries were made into course texts for their respective universities!

And they support businesses, as one would expect. How? By inviting them to participate in the aforementioned working groups – particularly the value chain group – which enables large businesses to meet with SMEs. They work on projects like the one underway with the Inter-American Development Bank (IDB); everyone working together to find their sustainability or, in effect, being socially responsible, which – he points out –  is a similar goal to the one set forth several years ago for total quality.

It’s no wonder, then, that from the initial eleven companies associated with the Instituto Ethos they have grown to more than a thousand, without asking for any help from the State, since their funds only come from the private sector.

Understandably, Ethos has become the model for CSR in Latin America, commanding an undisputable authority in the region. “Which we were never looking for”, he clarifies.

Equitable globalization

According to Itacarambi, CSR is justified in light of the growing social divide in the world which has been further accentuated by the processes of globalization and economic openness – processes which Latin American countries are not exempt from.

Therefore, the  challenge is how to reduce this gap, especially when it’s well known that technological development wasn’t designed with this in mind but rather to lower costs and increase productivity and competition.

It requires, in short, equitable globalization. And in order to do this – he states – it’s absolutely necessary for companies to be sustainable and have the social responsibility that these circumstances require.

In fact, he acknowledges that the upsurge in CSR/sustainability is similar to the total quality movement that came to the forefront years ago and still hasn’t gone away.

However, he warns that this isn’t just a passing fad. Quite the contrary – it’s a logical consequence of the unsustainability in the world shown through the social divide, of the social problems caused by climate change, and the values crisis caused by self-interest, lack of cooperation and corruption, which in turn caused a loss of confidence in the markets. 

For their part, the State is incapable of resolving these problems, making it necessary for private companies to get involved – he insists – as an exercise in social responsibility.

Moral values are fundamental, from his point of view. Or ethics, to be exact.

However, this doesn’t mean it’s a theoretical, abstract subject – he affirms. Instead it must be translated into concrete actions in practical terms, such as the mechanisms established in companies to prevent corruption among their employees up to the highest levels, or in the State’s contract bidding process, where bribes usually take place in our countries. 

Concrete actions like those in Brazil, where he points out that many companies subscribe to a national pact along these lines, explicitly committing themselves to confronting corruption and guaranteeing their integrity as an expression of their CSR.

Beyond philanthropy

Lastly, Itacarambi notes that the fight against poverty to reduce the social divide cannot be confused with mere philanthropy. Therefore – he warns – productive activities must be put into place in our communities and be promoted from the base of the pyramid – the lowest income bracket – as part of companies’ strategic plans, and include integration with different links in the supply chain.

This – he says – is true Corporate Social Responsibility, and it shouldn’t put environmental considerations to the side by making sure to create an impact in this regard as well and to adopt clean technologies.

Take careful note, business owners!

(*) Director of “Desarrollo Indoamericano” (Indoamerican Development) Magazine, University of Simón Bolívar, Barranquilla (Colombia) – jesierram@gmail.com

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1. What sector is your company involved in?

Manufacturing compressible plastic tubing.

2. What is your company’s vision?

The vision for La Cazadora, S.A. de C.V. is to maintain our position year after year as leaders in the manufacturing of compressible plastic tubing in terms of innovation, quality and service.

3. Do you think your country is concerned with behaving responsibly?

Yes, I think there is an interest in our country in doing different things on issues of social responsibility, however, I think it is an issue that has not been adequately publicized in all sectors of the country.

4. For those companies who practice CSR, how do you think it improves their working environment?

For businesses like ours that practice social responsibility, some of the improved areas are internal and external communication, working environment, an improved corporate image, security and respect amongst all employees, and awareness of everything related to voluntary work.

5. What do you think would change in society if more businesses achieved certification in WORLDCOB-CSR 2011.3?

It would improve the quality of life and surroundings in society as well as the ideology of how to behave responsibly in people’s everyday encounters in order to live in a better world.

6. What challenges will your company take on by being certified in WORLDCOB-CSR 2011.3?

Being able to demonstrate that we are consistent in our actions in accordance with the established standards.

7. What Corporate Social Responsibility projects does your company have?

Continuing to promote volunteering on a large scale and to continuously improve our established management system for corporate social responsibility.

8. In what ways do you think your company has supported the development of your own community?

Offering employment opportunities, supporting issues on security and surveillance, donations in kind, participating in community support campaigns.

9. Do you think CSR is a passing trend or do you feel it has come to be part of any business that considers itself responsible?

I believe that social responsibility must be a way of life that enables us to live in a better world.

Mr. Fernando Sánchez Jiménez

Quality and Audit Manager

Inicio

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The 17 proposed Sustainable Development Goals (SDG) – to be achieved by 2030 – were agreed amongst 193 world leaders, who committed themselves to these during the Sustainable Development Summit which took place in September 2015 as the main event during the UN General Assembly in New York.

Several goals (nos. 2, 6, 12, 13, 14 and 15) are related to the need for sustainable food production systems, and are developed from an environmental point of view, without destroying resources and without contamination.

The food industry finds itself under pressure due to an ever-increasing world population which will require them to increase production by 70% by 2050, while at the same time having to reduce the environmental and social impact it creates.

Some (partial) solutions like the use of genetically modified organisms (GMOs) are resisted (without reason, I believe, but I am always one in favor of staying informed).

Going by the most moderate estimations available currently, agriculture is responsible for 25% of the world’s greenhouse gas emissions, 75% of global deforestation, and for 70% of the water that is consumed in the world.

This controversy and the challenges that come with it are happening right now, and that is why it is vitally important that the appropriate information, criteria and scientific arguments are used to decide on appropriate measures.

Personally, I would like to call your attention to a couple of issues that I feel very little is said about yet, to me, absolutely must be included when discussing and searching for solutions: “what we are eating” and “allocation of costs”.

According to UN research, if all humans were to become vegetarians as of tomorrow, global warming would be resolved in 2 years, returning to the level it was 100 years ago. Despite this, it’s certain that most people think that we do more damage driving a car than we do by eating a hamburger.

The problem is ruminant animals and the type of gases they generate, their intensive concentration and the inefficiency with which meat is produced.

The amount of methane gas that these animals produce by belching and passing wind can absorb 25 times more heat than its CO2 equivalent.

Another gas that is produced is nitrous oxide (which creates 300 times more heat than CO2) and this is produced by:

1) the fertilizers used; in this example we will add those used for making animal feed. Taking a conservative estimate, to produce just one kilo of beef it takes 15 kilos of grain and 15,000 liters of water. Currently, more than 40% of the world’s grain is used for feeding livestock, and it’s estimated that by 2050 this will increase to over 50%. In the US the percentage is 70%.

Table 1: Global man-made N2O emissions in 2000

Sector                                                                   N2O (MtCO2eq)               %

Energy (including transportation)                                     237                        8

Agriculture                                                                        2.616                   84

Industry                                                                             155                        5

Waste                                                                                106                        3

World total                                                                       3.114                     100

2) solid and liquid waste from livestock, especially notorious in intensive production.

But there are other effects created from the livestock industry which are far greater than gases: the deforestation and destruction of the rainforest and ecosystems used for livestock (91% of deforestation in the Amazon is due to the livestock industry), the concentration of waste due to intensive production, sanitation issues and the enormous amount of water pollution it causes.

Although it’s true that red meat is an excellent source of protein and nutrients, we have to start thinking of changing to more efficient sources of protein.

In 1982, the Chinese consumed an average of 13 kilos of meat per year; today that number is 63 kilos and is expected to increase by 30 more kilos per person by the year 2030.

This has alarmed the Chinese government to such a degree that they have outlined a plan to reduce citizens’ meat consumption by 50%, which represents a strategic turn in the name of stopping global warming.

Without properly allocating costs, there will be no solutions. The cost of red meat should include the environmental costs of production (that we are all already suffering and paying for) and it should be considered an incredibly luxurious item.

It might seem undemocratic, but it is a luxury that many small farmers could also afford. How to fairly impose environmental costs (in all sectors) is always a challenge. Beef should only be produced commercially in natural fields and under slow production methods.  

Luckily, we are omnivores and can adapt ourselves to a healthier and less problematic change in diet.

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A new economic model

based on social business

By: Jorge Emilio Sierra Montoya (*)

JAKARTA/INDONESIA, 13JUN11 – Orlando Ayala, Chairman, Emerging Markets and Chief Strategist, National Competitiveness, Microsoft Corporation, USA, captured during the World Economic Forum on East Asia in Jakarta, Indonesia, June 13, 2011.
Copyright World Economic Forum (www.weforum.org)Photo by Sikarin Thanachaiary

Education is key

It never occurred to Orlando Ayala, while taking night classes for his college degree in Bogota and paying for his studies with a modest job – “where they paid me very little”, he says -, that in time he would end up next to Bill Gates at Microsoft, as the Global President for Emerging Markets.

Hence his concern for our countries’ education, particularly when he recalls that “Bill” recently highlighted that people without an education have a 90% chance of failing in life – they are unable to escape the vicious cycle of poverty.

That also explains the call he makes to our business owners – in the name of their social responsibility – to contribute to providing education, creating jobs and development opportunities, together with the government and other sectors of society, and policies of inclusion, not exclusion, in a process of national reconciliation, similar to that of South Africa under the leadership of Nelson Mandela.

“Business owners must understand that they play a key role in reconciliation, not just for future economic growth but also for democracy and peace in Colombia”, he affirms enthusiastically, with a real nationalistic spirit.

 “We must change the economic model”, he declares, and critically negates that corporate responsibility is only paying taxes “so that people don’t overwhelm us”.

And today there are so many young people unable to find work or study…

Changing the model

He’s not an economist, but he speaks like one. He talks about an economic model that cannot contain concepts outside the realm of society – and therefore CSR – making the model socially responsible.

What does this change consist of? First and foremost, establishing alliances with other important members of the “business ecosystem” such as governments, other private businesses, multilateral and non-profit agencies, etc. to conquer social problems.

He has just done this in New York, where he met with the most important foundations in the world committed to focusing on social issues in an economic model, which Microsoft is clearly exemplifying through Bill Gates’ initiative.

Indeed, in his job as president, Orlando Ayala is responsible for improving access to technology for the five billion people that are still excluded, much to the detriment to their quality of life.

Clearly, this is Corporate Social Responsibility. But it goes above and beyond: it doesn’t just simply mean donations or philanthropy but rather providing higher education or training through computers and their proper usage, “so that people can progress”.

This is not about spending money in the name of a noble cause, as one might think at first glance. No. Behind these programs benefitting vulnerable people in society, there is a business and economic interest: to turn these people, over time, into consumers of their products and services – a legitimate and valid purpose.

It’s social business, to put it bluntly, which requires fundamental changes in businesses – from the organizational structure, starting with top level management, to the creation of specialized groups like the one he oversees worldwide.

To put it another way, it’s positioning a business for the long term.

Social business

On a visit to Cartagena de Indias, Bill Gates spoke about social business, conceptualized as giving business solutions to vulnerable, low-income populations. 

According to Ayala, this is not the traditional concept of CSR, although – as it name implies – it does have a social component,  which appears through business characteristics (social-business, to be exact).

In short, the company is social but still a business, for the simple reason that it must remain profitable in order to survive in an increasingly competitive market. And not just somewhat profitable but very profitable because this ultimately helps poor families become big business for Microsoft in the long term, outside of just educating them.

“It’s not philanthropy”, he insists, stressing what he said in an extensive interview with the “New York Times”, where he argued that philanthropic activities cannot be sustainable while this really is, because it is needed to bring people out of poverty.

In relation to this, he recalls the words that Bill Gates’ mother said on her death bed: “Those who have received the most have the most to give” – a biblical command that the founder of Microsoft follows to the letter, although from a sustainable perspective.

Social business aims to quickly transfer the enormous benefits of  scientific development to everyone (social inclusivity), as opposed to how slowly this happens now, which, in practical terms, represents an “unlimited potential” of billions of new consumers and guarantees business continuity in the future by being the key for economic success on a global scale.

“If you don’t position yourself in this way, business will disappear in the long term”, he warns.

A message for business owners

Before concluding the interview, Ayala comes back to what was said in the beginning: business owners have the inescapable duty of constructing their country, for which technological development is essential.

According to him, they should focus on three basic things: first, education; then innovation; and finally, on job creation – aspects that are united in a virtuous triangle.

In education, he applauds efforts like those of Medellin Mayor Sergio Fajardo’s administration, which designated 40% of their budget on education; a sound policy decision – he states – worthy of being followed in the private sector.

In innovation, he praises the transformation in recent years of the National Service for Learning (SENA), which he doesn’t hesitate to say is the greatest change in Latin America, due to their shift in training masons to operate software, enabling people to create irrigation systems on computers or for disabled people to make use of technology.

By doing these things, job creation is a logical, inevitable consequence.

It is like trying to replicate his story – first his adverse situation with a low-paying job and having to complete college classes at night, then finding himself working with Bill Gates – an honor that fills Colombians with pride.

What can our business owners do – he ends the interview asking – to make such a beautiful dream reality?

(*) Director of the magazine “Desarrollo Indoamericano” (“Indoamerican Development”), Simón Bolívar University, Barranquilla (Colombia) – jesierram@gmail.com

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Corporate Social Responsibility:

The new frontier of excellence

By: Jorge Emilio Sierra Montoya (*)

In recent years, and particularly at the beginning of the new millennium, a huge Corporate Social Responsibility (CSR) boom erupted, which Latin American countries were not oblivious to.

It is about having a modern vision towards CSR, beyond just simple philanthropy, that has extended to organizations such as the United Nations, the European Union and ISO – the International Organization for Standardization – which already has a standard in this area: ISO 26000, in addition to standards related to quality and the environment.

“For ISO, CSR is the new frontier of excellence – just like in the 1950s when there was the quality movement – all within the framework of sustainable development”, explains Dante Pesce, director of Vincular, the prestigious research center at the Catholic University of Valparaiso, in Chile.

Vincular is a research center specializing in CSR, a field in which they offer business consulting services, ranging from leadership training to developing management tools as a “step by step guide”, based on practical experience rather than academic knowledge.

The director, Dante Pesce, highlights that Vincular has grown rapidly from its inception in response to the ever increasing demand from the business world, where, in turn, CSR emerged for multiple reasons – including the pressures of public opinion and the benefits that came from development projects in their own businesses.

According to Pesce, what the issue is now is a lack of know-how – in other words, how to carry out CSR in its strictest sense – even though the situation used to be worse in regards to a lack of understanding and confusing the issue with charity or philanthropy. Although the topic is understood better today, how to do business in the different areas that fall under it is not: corporate governance, working practices and fair practices with contractors and suppliers, as well as a commitment to the community.

“Today a modern vision of CSR is needed”, he reiterates.

Best practice

But what exactly is CSR in Pesce’s opinion – one of the most respected experts on this matter in Latin America? Here are his thoughts below.

According to him, above all, CSR is a combination of best practices that must be included in corporate policies, starting from the company’s mission and vision through to their principles, then passing through what is correctly called corporate governance, and finally, arriving at the operations of the company.

It is, then, a cross-cutting issue, found all throughout the company in its multiple areas, and it must be so relevant that those best practices mentioned above relate to the specific business activity that the company is involved in.

Having said that, it’s obvious that many firms have these types of policies and strategic plans which they usually review on an annual basis. What happens then, when they lack a CSR policy, nor do they have any mentions of it in their mission or vision? The answer is simple: it has to be added!

That, he says, is the first step, which means that senior level management – from the board down to the president, management or head office – have an awareness of the issue, provided that they want to be recognized as socially responsible in light of international criteria that are considered in the Global Reporting Initiative (GRI), for example.

“If the leaders do not have faith in CSR and sustainability, it is very difficult for them to lead their organization in this area”, warns Pesce, while also stating that such leadership cannot be undertaken by middle management.

It therefore requires directors to be in tune with what’s going on in the world, to have an adequate long-term vision (i.e. sustainability) and to take on the lead role that is necessary both within the company and in society. 

 “This is what they are paid for”, he says with a critical, almost complaining tone. And he adds: “That’s their normal role”.

The seven areas

People might say all of this is rather theoretical. But how should CSR be addressed in practice? How can it be carried out?

Before answering, Pesce makes it clear that there is no complete agreement on this worldwide, although consensus has been reached regarding the different areas that is made up of, at the very least in the voluntary guide from ISO mentioned previously. Specifically, the seven areas are: 1- Corporate governance; 2- Working practices; 3- Environmental practices; 4- Human rights practices; 5- Fair operational practices; 6- Consumer, user and customer issues, and 7-Commitments to community and social development.

The first, Corporate Governance, sets out the parameters (mission and vision, principles, and codes of ethics or conduct) by which a company manages and  improves upon and which they are evaluated on by stakeholders or interest groups: employees, clients, suppliers, the community…

The other areas are operational and refer to business management: for healthy working practices, employees must fully show that they adhere to them, not just the company simply stating that they have them; for environmental management practices, according to international frameworks such as the standard ISO 14000 that is “a good indicator”; for human rights, far from limiting themselves to the conventions set out by International Labour Organization (ILO) or local standards, companies must instead act with all due respect in regards to the formation of unions and the right of free association of workers, without discrimination and with incentives for employees such as professional development or training.

As for fair working practices, this means companies respecting contractors and suppliers, guaranteeing equal opportunity, on-time payments, not abusing a position of power and developing an excellent value chain; for clients and consumers, it means providing them with adequate post-sale services, appropriate product labeling and, especially, making sure that in contracts “the small print isn’t so small”, without any tricks involved.

The final area, commitment to the community, can be shown for example through plans for education, employment, health and the environment, almost always done in collaboration with government, universities and/or NGOs, which creates many benefits – he says.

Corporate strategy

Based on the above, it’s not difficult for a business to outline a CSR strategy, even more so when it possesses in general – and in whatever format – a plan for development, working policies, consideration for the environment, relationships with contractors and suppliers, clients and more clients – all of this in a context where there are high expectations on productivity.

What’s missing then if nearly all companies have these types of policies and practices in place, even in an informal way, which cover topics innate indicative of sustainability and CSR?

“They haven’t put a structure in place – more a science, if you will. Or constructed a system”, declares Pesce, recalling his vast experience in consulting, educating leaders and research in developing CSR management tools.

In short, he calls into question when these practices are dispersed without being integrated into a corporate strategy: he therefore encourages coordinating actions, either in a specific area or department within the business (which he considers to be “most likely”), and recommends creating CSR committees within companies, with the different management areas grouped together (personnel or human resources, administrative, financial, etc.).

On occasion there is a manager that coordinates this, like an HR manager, he adds, not without clarifying that businesses are almost always reluctant to create new positions, apart from large businesses or multinationals, where it is normal to have a CSR manager or a sustainability supervisor, always with the aim of coordinating activities, given the cross-cutting nature of these programs.

In order for small and medium businesses (SMEs) to be socially responsible, they join up with larger businesses, which usually “advise” them – being their biggest customers – to adopt good governance, and environmental and social practices in the most basic terms.

“Professional trade organizations play a key role here, with leadership and guidance”, he says.

Costs and benefits

 “This is a myth! It’s not true that CSR is only for large companies or that it’s expensive!” – this is Pesce’s unequivocal expression upon hearing that many companies, especially SMEs, refrain from moving forward with social programs due to their high costs.

On the contrary, during his time in this sector he has found that when CSR management systems are implemented, the substantial reduction in costs becomes clear afterwards, due to factors such as fewer work-related accidents and labor disputes, the increase in productivity, improved relations with providers, clients and moneylenders, and improved performance in commercial relations.

“It’s not an expense”, he assures us, “but rather an investment – an intelligent investment that also attracts investors”.

 “It’s a win-win situation”, he enthusiastically maintains.

 (*) Director of “Desarrollo Indoamericano” (“Indoamerican Development”) magazine, Simón Bolívar University (Barranquilla, Colombia) – jesierram@gmail.com

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Unfortunately, we are a species that produces trash – the only one to have this distasteful quality – and trash is a problem.

Most of the time we simply throw it away without worry, thinking that nature will take care of incorporating it into its cycles, and in the best case scenario we leave it for public sanitation systems to take care of it.

The problem is that the technologies we use now produce types of waste that are very difficult or impossible to recycle, and our tendency to cluster together into large settlements means trash accumulates in a disorderly fashion, and specializing in career fields means that we let others be in charge of resolving the issue.

If we carry on like this without taking appropriate measures and changing our attitudes, scientists have warned us, our environment (our ever-shrinking world) will become increasingly more hostile.

Our oceans are globally connected, just like the atmosphere (and they’re connected with the atmosphere) and they have cycles, currents and dynamics that are in danger, no matter how much we don’t want to see it.

The garbage that is accumulating in the oceans is excessive and out of control. While watching a webinar on the issue by the U.S. Green Chamber of Commerce, some of the data really struck me – like how every day we dump into the ocean the equivalent of 5 full bags of trash per linear foot around the entire perimeter of the world’s coastline!! If I think about little Uruguay, which has 672 km of coast between the Rio de la Plata estuary and the Atlantic Ocean, and do the calculations, it shows that just to cover the coastline of Uruguay you would need 11,200,000 bags of trash piled up per day! It seems senseless to think that this is sustainable. If I add up each meter of coastline in the world the number can be so ridiculously high that it’s difficult to comprehend.

Governments can’t do much about a problem that isn’t on their list of priorities, and when they do, the cost is incredibly high. For example, in California 500 million dollars is spent per year trying to make sure that garbage does not make it into the ocean – money that could be used on better things if we cared enough to not toss our waste so carelessly.

From the waste in California that is collected, it has been shown that 6 out of every 10 items are recyclable – in other words, those items could have avoided making it there (plastic and glass bottles, plastic bags, drink cartons, plastic bottle caps, paper bags).

However, because we don’t see the problem since the ocean is so big, it doesn’t worry us and we carry on acting like we expect someone else to fix the problem…it also isn’t a pressing issue on our personal agenda, nor do I remember it being an issue discussed during the political campaigns.

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