Legal tip 938. NGOS and Private enterprise by IESE
Thursday, May 2, 2013 @ 2:33 PM
Need to admitt I love this IESE people!
Have a great weekend!
Maria
NGOs: The Natural Allies of Private Enterprise
Peiró Barra, Andreu
Publisher: IESE
Original document: La responsabilidad social y la contribución al desarrollo
Year: 2012
Language: Spanish
Multinationals often have more resources at their disposal than governments do to solve local problems of socioeconomic development.
However, if they are negligent, they can potentially do more harm than good, as illustrated by well-known incidents of child labor by the likes of Nike, Apple and Inditex.
Being aware of the impact their businesses have, many companies are increasingly looking to align their corporate social responsibility (CSR) policies with local development strategies.
A paper by Andreu Peiró, and published by the "la Caixa" Chair of Corporate Social Responsibility and Corporate Governance at IESE, examines how business organizations can contribute not only to economic development, but also to social, cultural and environmental sustainability.
From Philanthropy to Integration
Companies are shifting away from the traditional philanthropic model to a more strategic approach. A simple monetary contribution does not allow for any control over the impact being made, and also limits the resulting long-term benefits.
Focusing efforts on development and socially conscious investments can translate into competitive advantage, a solid reputation, stable work environments and productive relationships with local authorities.
Companies are no longer passive observers. They are taking on a more active, involved role. Rather than a damage limitation exercise, they regard CSR as a way of creating shared value.
For example, Merck's donation of Mectizan to combat "river blindness" represents one of the most successful public/private collaborations in the world.
Charity Begins at Home
Apart from large-scale programs like this, companies can make a positive impact through their day-to-day activities, from simply saving energy to offering responsible pricing.
Along these lines, Unilever in Europe has started marketing products in individual packs or as cheaper local brands.
Promoting quality workplace environments is another activity. The Brazilian business group Semco lets employees have a say in their own working hours, wages and supervisors, and they can democratically elect the senior management team. Meanwhile, staff at the Marriott hotel chain in Cancun, Mexico, have taken up the local cause of protecting sea turtles.
NGOs as Key Partners
Because of their local knowledge, NGOs are important partners in guiding companies toward what are the most urgent needs of the communities in which they operate.
Carrefour cooperates with the Codespa Foundation by giving shelf space to the goods of Ecuadorian farmers, and has also teamed up with Adopem Bank on a microfinance project enabling Dominican women to start their own businesses.
Such collaborations can take the form of joint ventures, based on a set of shared values and strategic objectives.
The U.K. department store Marks & Spencer has collaborated in a venture with Oxfam, offering discounts to customers who recycle clothing. This prevents clothes from ending up in landfill sites, while raising three million pounds for charity to date.
Volunteer programs are another way that companies are investing in local communities. Iberdrola, for example, sends employees to Sao Paulo to provide training in software and Web applications to young people at risk of exclusion, through the Deporte Integra Foundation.
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"Vista parcial de Huélago", Huélago, Granada, South-east of Spain, by Phranet, at flickr.com