Roundtable: Corporate Social Responsibility in Brazil and the Hemisphere

Speakers:

• Richard Feinberg, Director of  APEC and Professor , University of California, San Diego
• Carlos Ienne, Executive Director, Mercosul, FedEx Express
• Mario Mantovani, Director, S.O.S. Mata Atlântica
• Helio Mattar, President, Instituto Akatú
• Vanessa Pazini, Representative, Instituto Gerdau
• Jair Ribeiro, President, CPM Braxis and Parceiros da Educação
• Flavia Vigio, Vice Presidente, Corporate Communication in Latin Aamerica, Arcos Dourados McDonald’s

Summary

Today, corporate health rests both on the products and services produced as well as a company’s larger role in its operating environment. Given the importance of corporate social responsibility (CSR) for both corporations and communities, as well as the larger mission of the Americas Society and Council of the Americas, the Winter 2008 issue of Americas Quarterly was dedicated to expanding on this theme. This roundtable discussion brought together leading corporate and non-profit representatives as well as academics to discuss the evolution of CSR and best practices, with a focus on Brazil. Held in São Paulo, speakers and participants drew from Brazil’s leadership in this area.

CSR Today

Corporate social responsibility is a global phenomenon but is particularly relevant in Latin America, where, according to Richard Feinberg, social compacts are nearly non-existent and public-private relationships are a challenge. Across the region, 50 percent to 60 percent of consumers think companies should function with high ethical standards, and 50 percent to 80 percent of consumers are interested in learning more about CSR activities.

In Brazil, as noted by Helio Mattar, nearly 85 percent of consumers have an interest in the CSR practices of companies. These consumers rank their top CSR priorities as the following: social private investment; fair treatment; job creation; and environmental protection. No longer does the view of a company depend on the product alone; today, the quality of the relationship with the community is a significant factor in determining buying decisions.

Two Examples: Health and Education

Beyond focusing on the larger issues of CSR, panelists also discussed specific corporate programs to improve the health and education of local communities. McDonald’s in Brazil serves more than 1.6 million customers daily and operates 541 restaurants in 134 municipalities. Its focus is on ensuring quality and creating opportunities for workers engaged in all aspects of the supply chain. Health improvement is a chief investment priority both in Brazil and beyond. Within health, McDonald’s specific goals are chosen at a local level, and in Brazil, significant funding and time are devoted to children’s cancer. Cancer is a leading cause of death for children age 0 to 18 years, but only 3 in 100 cases affect people in this age range. That results in fewer resources, and for McDonald’s, a chance to help fill some of this void.

Another important challenge is improving the quality of education. Both Jair Ribeiro and Carlos Ienne agreed on the urgent need to address the poor quality of Brazilian public schools. FedEx Express, with a workforce of 500,000 employees in Brazil, sees educational investments as critical both for social reasons and for ensuring an educated future labor force. Among its programs, Carlos Ienne highlighted the company’s work in training employees and opening the doors for career advancement. FedEx Express also supports business training programs for small and medium-size enterprises. Through a hands-on public school initiative titled Partners of Education, Jair Ribeiro and other executives now work with 67 schools that reach 54,000 students. By 2010, he hopes to extend the program to 500 schools. The program focuses on reading and writing and is designed so that each school is paired up with a company committed to a five-year investment.

CSR – The Next Level 

A core aspect of the discussion focused on how to strengthen current CSR practices to ensure their responsiveness to community needs. Richard Feinberg proposed three ideas: outside audits of corporate CSR reports; social investments that mirror the profits in a country; and development of matrices that measure goals vs. needs. Multilateral development banks should also allocate greater financing toward CSR activities. Through these measures, corporations can build on existing education, health, and other initiatives to ensure that CSR activities achieve the maximum impact possible.