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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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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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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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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1. What sector is your company involved in?

Education.

2. What is your company’s vision?

The William Shakespeare Public School is on the right track thanks to its philosophy, for which it has received significant recognition nationwide.

3. Do you feel your country is concerned with acting responsibly? Why should companies care about this?

I think there are important government policies in the area of social responsibility, and the private sector is the main driving force behind this.

4. In what ways do you think CSR improves the surroundings of those companies who engage in it?

Greater commitment and awareness of the school’s surroundings.

5. What changes do you think we would see in society if more companies successfully obtained certification under the WORLDCOB-CSR 2011.2 standard?

A fairer, more solidary country with values and moral principles.

6. What challenges has your company tackled in order to renew its WORLDCOB-CSR 2011.2 Certification?

Continuous improvement. Commitment to complying with the standard and searching out other areas in which to apply CSR.

7. What CSR projects does your company have planned?

Social responsibility projects with our sister schools, Antonio Gil and Cabo Minacho.

Mutual aid projects with the Parish Council of Tumbaco, National Police Force, Municipality of Quito.

Social responsibility projects with our employees.

Social responsibility projects in the environmental area.

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

We are continually recognized for our efficiency by the community of the Tumbaco Valley, where we are located.

9. Do you think CSR is a fad, or has it arrived to form a permanent part of each company that considers itself responsible?

I think people have become aware of the importance of CSR, and more and more companies are taking up this challenge.

Dr. Humberto A. Herrera Sánchez

General Director

William Shakespeare School

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How to do business without damaging the environment

By: Jorge Emilio Sierra Montoya (*)

The New Corporate Social Responsibility

 “We are now in the presence of a new Corporate Social Responsibility”, asserts Gunter Pauli, one of the most highly regarded experts in environmental issues, due to having received the United Nations’ (UN) Environmental Award the past several years.

He explains: before, the environment was of no interest to business owners, who were only interested in making products at a good price and to a high standard, without taking into consideration that this had something to do with the environment.

If  – he adds, with an authority that’s recognized throughout the world – they did ever take into consideration that they had some environmental responsibility, they took care of it by making some sort of donation from their profits.

The environment, in short, was something external to business. “That was the traditional form of CSR”, he says while he recalls his successful business past, from which the Zeri Institute was created, with headquarters in Japan.

In its most basic concept, this new CSR has emerged from people seeing the environment as an essential part of any business and, above all, finding opportunities to do business within nature itself – obviously without causing issues, such as environmental contamination, that would put man’s and the rest of the Earth’s living creatures at serious risk.

 “Yes, the environment is good business”, he assures us, while he has his weapons at the ready to fight that old type of business activity that has destroyed the environment for many years instead of protecting it for future generations.

 “That cannot be”, he proclaims.

An abundance of examples

According to Pauli, the ignorance of business owners explains their misguided actions, which they successfully changed once they understood, for example, that conducting environmentally-friendly business made them rather profitable and even resulted in lower costs and investments.

So for this reason – he explains, in a rather teacherly tone – when the owners of Varela Soap in Cali (Colombia), found out that their synthetic soap was contaminating the water, they decided to change their products to become biodegradable, with good economic results. Or the leather company which began tanning with natural oils, making themselves very financially competitive in the process.

Or the clever use of coffee byproducts, which used to be considered an unsolvable problem but in recent years using these has provided a great opportunity for thousands of farmers who produce edible mushrooms (white and field mushrooms) sold in large supermarkets.

Or, also in the coffee-growing zone, the sale of bamboo to different external markets, where demand is high and so are the prices. Or the possibility of using natural colors in textile-making instead of imported heavy metals, utilizing a process similar to that of butterflies, as a Japanese factory is doing.

Or what Speedo did with their swimsuits – one of the biggest attractions during the Olympic Games in China – basically creating them to imitate sharkskin which was key to their quick movement in the water.

Or what could be done through George Reynolds’ (inventor of the pacemaker) renowned investigations of whale circulation and respiration, which greatly interested an organization in the United States that wanted to see how this could benefit sports activities in general, possibly across the board.

 “This is the new CSR”, he asserts.

Thousands of projects

In Zimbabwe, the Zeri Institute helped to design a building with air flows constructed like the kind termites make, which allow cold air to be kept inside them, in the middle of the desert, or can contain heat in areas of intense humidity, which replaces the need for air conditioning.

And of course, this means: lower investment costs – estimated to be 15% less; less space between floors, which meant more floors could be built as a result; lower operational costs for electricity and maintenance; greater oxygen production in the building and the corresponding health benefits for its inhabitants.

It’s essential therefore to understand and apply a model that makes it possible to use this technology in construction, which also means, in turn, huge employment opportunities for mathematicians graduating from college.

There are more than two thousand projects like these in the world – according to Pauli – but in Colombia there are about a hundred that have been formulated, like using horse manure to cultivate mushrooms. Or using algae, taking advantage of the two oceans that surround the national territory, to tackle serious human health problems that are currently only fought with the use of antibiotics.

Why – he wonders – don’t we copy the microcondensation system that some types of cockroaches use to create potable water, which would solve water shortages in the most deprived areas of the planet? A similar project is under development in Iraq by the British navy.

He believes, on the other hand, that these types of initiatives are the real solutions for the Third World, not only for the majority of inhabitants’ social needs but also because of the aforementioned lower costs they require compared to the scarcity of economic resources that everyone worries about.

“This is the new Corporate Social Responsibility”, he never tires of saying.

The call to invest

In addition, CSR can’t be simply reduced to making mere donations, with whatever plausible philanthropic spirit they may be made with, but instead it means investing in CSR projects which are dependent on real solutions, like the scourge of poverty in our villages.

And he comes back to his original point that causes so much criticism in certain environmental circles: “The best way to protect the environment is to use the technologies it offers”, claims Pauli, who clarifies his point further by saying nature has taken millions of years – as if it were trying to make the best feasibility studies – to give us the formulas to become different, competitive species.

In fact – he adds – that’s where profitable businesses emerge, among whose many benefits include receiving environmental certificates or bonds for lowering CO2 to tackle global warming, which include large payments from organizations like the World Bank.

“There’s a new business model”, he states while criticizing the previously-mentioned model, “from Harvard”, that is wrong in its most basic concept because it bases itself on scarcity, instead of abundance – particularly the abundance of natural resources in tropical countries like Colombia, one of the richest countries on the planet in terms of biodiversity.

He sees, then, huge investment potential in these types of projects, including foreign investment, which has become clear to him during his constant trips throughout the five continents, where his voice is recognized as one of the most authoritative in the world for environmental issues.

 “Colombia has enormous opportunities here, even moreso due to the advances it’s made in security for investors”, he concludes.

 (*) Director of “Indoamerican Development” magazine, Simon Bolivar University Barranquilla (Colombia) – jesierram@gmail.com

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1. ¿Cuál es la actividad de su empresa?

Compañía de transporte local e internacional por carretera/tren/agua, almacenamiento, manipulación de carga, servicios portuarios, servicios de IT.

2. ¿Cuál es la visión de su empresa?

Proporcionar y armonizar una gama completa de servicios logísticos complejos enfocándonos principalmente en temas medioambientales (incluyendo la reducción de nuestra huella de carbono), ayudar a nuestros Clientes a mejorar su competitividad y mantener nuestra integridad en el sector de transporte de mercancías global.

3. ¿Considera que las empresas en su país se preocupan por actuar responsablemente?

Si, la filosofía de “Piense globalmente, Actúe localmente” está siendo cada vez más diseminada, conocida y aceptada por las empresas en Hungría como una actitud básica en sus negocios y un enfoque natural para sus posiciones en la sociedad.

4. ¿Qué aspectos considera usted que la RSE mejora en el entorno de las empresas que lo practican?

Más allá de los negocios, la RSE nos ayuda a ver, comprender y respaldar al hombre, sociedad y medioambiente. Las empresas que buscan tener una política RSE se preocupan de sus empleados (incluso su salud e integridad, desarrollo personal y profesional, familia y estatus social), trata de encontrar su lugar en la sociedad de tal manera que puedan respaldar a las comunidades locales y, finalmente aunque no por ello menos importante, hacer lo necesario para reducir la carga medioambiental y mantener la sostenibilidad.

5. ¿Qué cambios considera usted que veríamos en la sociedad en general si más empresas obtuviesen esta certificación (WORLDCOB CSR 2011.2)?

 Si cada vez más empresas obtuvieran la certificación WORLDCOB CSR 2011.2, las ideas de responsabilidad social y desarrollo sostenible se diseminarían más rápido, alcanzaría más niveles de la sociedad y serian  aceptadas en el negocio global.

6. ¿Qué retos ha enfrentado su empresa al obtener la Certificación CSR 2011.2?

 Al llenar el cuestionario y responder las preguntas adicionales realizadas por el Director de Calidad & RSE en WORLD CONFEDERATION OF BUSINESSES, nosotros tuvimos nuevamente la oportunidad de redirigir nuestras ideas sobre RSE y expresarlas en Ingles sencillo de tal manera que sea claro para las partes no interesadas y diferentes grupos sociales en Hungría.

7. ¿Qué retos considera usted que traen los siguientes años a los empresarios?

Debido a que los empleados son cada vez más autónomos, las empresas con un récord y actitud de RSE comprobada (atrayendo mano de obra más comprometida con buena calificación y alto nivel de integridad) serán cada vez más competitivas. En este sentido, las empresas deben incrementar sus esfuerzos en RSE, dedicar más recursos a inversiones relacionadas con RSE y ser capaces de responder preguntas/ afrontar retos en nuevos desarrollos, a nivel local como global por igual.

8. ¿Qué proyectos de RSE ha planificado su empresa?

Nosotros estamos aprendiendo más sobre las necesidades de nuestros empleados con diferentes antecedentes de tal manera que podamos tomar medidas destinadas a ayudarlos a mantener su integridad y estatus social. Asimismo, seguimos realizando nuestra actividad a nivel local centrándonos en la mitigación del daño ambiental (contaminación del suelo, aire, agua) que no es sólo un interés conjunto de nuestro negocio y la sociedad sino también un tema general de importancia significativa.

9. ¿De qué manera considera usted que su empresa ha contribuido con el desarrollo de su comunidad?

 Nuestra empresa ha contribuido con el desarrollo de la comunidad en distintas formas: medidas destinadas, entre otros, a mantener la integridad de nuestros empleados, al controlar y mejorar las condiciones de salud incluyendo su aptitud para el trabajo así como respaldarlos a organizar su vida familiar sobre una base continua. Programas capacitación, actividades de tiempo libre y otras iniciativas sociales se realizan de forma regular. En general, se puede decir que ISD Portolan Ltd. es conocida por ser una empresa donde los empleados, gracias a las condiciones laborales estimulantes y motivantes, pueden desarrollar todas sus aptitudes.

10. ¿Cree que la RSE es una moda o que ha llegado a ser parte de cada empresa que sea responsable?

Actualmente, la RSE se ha convertido en una noción que ha comprobado su validez. Sin dudas, invitar e involucrar a cada vez a más empresas para actuar de acuerdo con los requerimientos de RSE no dejará de ser un objetivo a largo plazo en futuro.

Capt. Vaso Janicic, Managing Director of ISD PORTOLAN Ltd.

ISD Portolan Kft.

www.portolan.hu

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1. What is your company activity?

Domestic and international forwarding by road/rail/water, warehousing, cargo handling, port services, IT services.

2. What is the vision of your company?

By providing and harmonizing a whole range of complex logistical services with special focus on environmental issues (incl. decreasing our carbon footprint), help our Clients increase their competitiveness and maintain our integrity in global freight transportation.

3. Do you think companies in your country are worried about acting responsibly?

Yes, the philosophy of ‘Think globally, act locally’ is becoming more and more widespread, known and accepted by companies in Hungary as a basic attitude in their businesses and as a natural approach to their positions in society.

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

Going beyond business, CSR helps us see, understand and support the man, society and environment. Companies pursuing a CSR policy care about their employees (incl. their health and integrity, personal and professional development and family and social status), try and find their place in society so they can support local communities and, last but not least, by making efforts to decrease the environmental load do their best to maintain sustainabality.

5. What changes do you think we would see in society as a whole if more companies obtained this certification (WORLDCOB CSR 2011.2)?

If more and more companies obtained WORLDCOB CSR 2011.2 certification, the ideas of social responsibility and sustainable development would surely spread faster, would reach more layers of society and would become more accepted in global business.

6. What challenges has your company faced in obtaining CSR 2011.2 Certification?

When filling in the questionnaire and answering the additional questions asked by the Director of Quality & CSR at WORLD CONFEDERATION OF BUSINESSES, we again had the opportunity to re-address our ideas about CSR and express them in plain English so it becomes clear even to non-stakeholders and to different social groups in Hungary.

7. What challenges do you think the following years bring to entrepreneurs?

As employees are getting more and more autonomous, companies with a proven CSR attitude and record (attracting hence more devoted and committed manpower with good qualification and a high level of integrity) will become more and more competitive. For this, companies should increase their efforts in CSR, should spend more resources on CSR related investments and should be able to answer the questions / meet the challenges in new developments, locally and globally alike.

8. What CSR projects has your company planned?

We are now continuing on learning more about the needs of our employees with different backgrounds so we can then take measures aimed at helping them maintain their integrity and social status. Also, we carry on pursuing our activity locally focusing on the mitigation of environmental damage (pollution of soil, air, water), which is not only the joint interest of our business and of society but is also a global issue of key importance.

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

Our company has contributed to the development of its community in numerous ways: measures aimed, among others, at maintaining our employees’ integrity, at checking and improving their health conditions incl. their fitness to work as well as at supporting them in organizing their family life are taken on a continuous base. Programmes in further training, leisure time activities and other social initiatives are taken on a regular base. On the whole, it can be said that ISD Portolan Ltd. is known to be a company where employees, thanks to the stimulating and motivating working conditions, can perform to the best of their abilities.

10. Do you think that CSR is a fad or that has come to be part of every company who is held responsible?

By today, CSR has grown into a notion that has proven its validity. No doubt, inviting and involving more and more companies to act in compliance with CSR requirements will not cease to be a long-term goal in the future too.

Capt. Vaso Janicic, Managing Director of ISD PORTOLAN Ltd.

ISD Portolan

www.portolan.hu

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1. What is the line of business of your company?

CORPORACION HODELPE S.A.C. is committed to the provision of services; the activity carried we carry out is Evaluating the Business Profiles of Organizations equivalent to the Homologation of Suppliers.

2. What is the vision of your company?

To be recognized at the market as the leading company in evaluating the business profiles of organizations, providing a quality service and keeping a high level of confidentiality for our clients, as well as internationalizing our service in emerging markets.

3. Do you think your country is interested in acting responsibly? Why must companies be interested in it?

Currently, the issue of Business Social Responsibility is gathering strength in the country; therefore many companies are interested in and adopting good practices in Business Social Responsibility. The companies should be interested in that because it implies a gradual growth and improves the quality of life of the contributors, and provides a good prestige to the company and improves its commercial relationships.

4. Which aspects do you think the Business Social Responsibility improves in the environment of companies that practice it?

The good relationships with the community. The recognition with the new and permanent clients, and mainly improving the working environment of the contributors, which is extended to their relatives and creates a value chain reflected in good results.

5. Which changes do you consider would have the society if more companies were able to obtain the WORLDCOB-CSR 2011.2 Certificate?

At short-term, it would be reflected in the internal improvement of the company as the good practices of the WORLDCOB-CSR 2011.2 standard are applied to all levels of the organization. At long term, it would be reflected in the economic growth of the company, which guarantees its sustainability over time.

6. Which challenges does your company assume when obtaining the revalidation of the WORLDCOB-CSR 2011.2 Certification?

Continuing our commitment to keeping acting responsibly with respect to the impact caused by our activities, looking for the balance between the economic growth and the social welfare, using our natural resources efficiently and seeking the sustainable development.

7. Which services would you like WORLDCOB provides you?

In addition to the continuous advice provided as a member of WORLDCOB, we consider it is important to continue with issues of training and professional development at local level, taking into account the level and prestige of WORLDCOB.

8. Which projects of Business Social Responsibility does your company have?

Implementing programs of healthy life involving the contributors through the promotion of good nutritional habits, and promoting good daily environmental practices involving the families and continuing the professional development through trainings.

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

We have been working in the professional development of our contributors, through trainings, and we have raised the awareness on the good practices to be transmitted to their families and the community in general. Furthermore, actions in favor of the community we have assumed allow us to be proud of our achievements and be considered as a certified company in Business Social Responsibility.

10. ¿Do you think Business Social Responsibility is a trend or has become a part of each company considered responsible?

Definitely, adopting principles concerning Business Social Responsibility demonstrates the commitment and interest of each company in knowing the environment in which they operate to control or minimize the negative impacts, as well as promoting the same practices in the sectors with which they interrelate. Furthermore, we consider that having good practices along with the Management Systems ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007, in which we are certified, have been a big contribution to our company.

Luigi Forti M.

General Manager

Corporación Hodelpe S.A.C.

www.corporacionhodelpe.com

The post CSR Interview with Corporación Hodelpe S.A.C. appeared first on BizzNews.

James Austin, a Harvard University professor and one of the highest academic authorities in the Corporate Social Responsibility world, addressed in depth the issue of sustainable development related to sustainability and preferred by analysts instead of CSR. And, as a good academic, he loves clarifying concepts before entering the field. So, he starts by asking what Sustainable Development (SD) is.

That concept – he clarifies – comes especially from 1987. It was then extended in the Rio Summit and now, twenty years later, was discussed in depth at the last Rio + 20 (where it was specified that the Millennium Development Objectives are henceforth Sustainable Development Objectives.

And, as expected, he immediately formulates his definition: “Sustainable development is meeting the needs of the present generations without compromising the ability to meet the needs of future generations.” Yes, we must meet our need, but without affecting our children and grandchildren.

“Living today without killing the future,” he says graphically, simply to show the commitment that we have, that we cannot avoid, with those who will continue inhabiting the planet, where human survival, and life in general, is in danger. Let us see why.

In this regard, Austin remembers the triple dimension (economic, social and environmental) identifying the so-called Sustainability, foundation of Sustainable Development. In fact, he underlines the interaction of the three sectors, which creates other concepts that are the key to development.

First, development must be viable through the balance between economy and environment; second, it must be equitable through the balance between economy and society; finally, it must be livable through the balance between the society and the environment. These three circles intersect and result in Sustainable Development.

Why it is not viable?

Unfortunately, we are far from achieving this ideal situation. On the contrary, the circumstances of the moment, quite critical at all three levels, make life on the planet unsustainable in the short term, and this is easy to prove.

As Austin says, in fact, the pressure of economic and population growth over natural resources (water, air, wildlife and flora) is enormous, causing an increasing ecological deficit especially obvious in recent decades, since 1970, an extremely worrying and increasing phenomenon: industrial waste cannot be disposed as fast as it is produced. And as a year of consumption in biocapacity takes a year and a half to regenerate, the situation becomes unsustainable in the medium and long term. It is not even economically feasible!

Let us better not talk about demographics. There is also tremendous pressure on natural resources: in the middle of this century, the world population will exceed nine billion people, we are now seven billion. 80% of the population live (or survive) in lower-income countries, most of which is still of reproductive age, unlike developed countries, and concentration in urban areas in Latin America reaches 70%, although in Colombia is 82%.

This, added to the aforementioned economic problems, is not sustainable, and therefore development and, as we were saying, is viable. It is actually a quite grim picture.

But what about in terms of equity and “what is livable”, the other two aspects of sustainable development? Far from it, the situation has not improved. Sustainability of the ongoing model is affected, seriously jeopardizing the future of humanity.

Equitable and livable?

The current development model is not equitable, according to Austin. And it is easy to check with several indicators in hand: a minority of rich countries consumes 80% of resources, while most of the poor countries consume only 1.3%, which largely explains the hunger spread out in these areas, where there is also little access to public services, thus affecting the quality of life.

Even worse: poor countries are suffering the ecodegradation, with the corresponding biodiversity loss, estimated at 60% compared to 7% in the higher income.

“This is not sustainable nor is the progress we seek,” critically insists Austin, in tacit reference to the biodiversity we have in Colombia, perhaps our greatest wealth.

As for the relationship between society and the environment, problems are obvious, both due to the aforementioned biodiversity loss (22 000 species are becoming extinct every year!), and due to its main cause: global warming, evident with a one more degree in recent decades, which is unprecedented in the long history of the planet.

It is estimated, for instance, that at the end of the XXI century the sea level will have risen 18 to 59 centimeters on average, although in some areas it would be up to one to two meters, due to phenomena such as melting glaciers, and let us not forget the terrible economic consequences, as anticipated by Stern when measuring the global warming impact on the world economy.

Apparently, 1% of global GDP is required to mitigate climate change effects, but if it is not done we will go through a global economic recession, equivalent to 20% of GDP in the world. “Preventing this catastrophe is an excellent business,” said Austin on the high return on such an investment, which remains to be seen.

He also questions high levels of deforestation in countries like Brazil, which would destroy that environmental safety net i.e. the vast Amazon jungle, and attack, for the umpteenth time, greenhouse effect carbon emissions generated outside erosion and misuse of a vital resource as water, service lacking billion people worldwide.

“We must produce more food with less water,” says whispers to entrepreneurs.

And what about the companies?

How is the business sector related to these problems?, Austin asks, pointing below the process that has occurred in this regard over the past fifty years: in the 60s, exploitation of resources, with little regulation; in the 70s, obedience to the law, but reactively; in the 80s, a proactive approach, reducing costs; eco-efficiency arrived in the 90s, and since 2000, the pursuit of Sustainable Development within the framework of Corporate Social Responsibility.

In this regard, he highlighted DS as a strategic element, with the environment as the spearhead the global movement in favor of RSE, conceived by him as an effective strategy for companies to generate economic and social value, synthesis of his theory.

Regarding utilities and communications, he says they are key to achieve sustainable development, whose quality depends precisely on the quality of these services, which in turn require DS to succeed in their business.

“Interdependence is required there, even more than in other sectors,” he says while calling for the appropriate involvement of these companies to build sustainable cities, one of the greatest challenges the world must face, in his opinion.

Now is the companies’ turn.

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

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