September 24, 2002

AMERICAS CONFERENCE ON CORPORATE SOCIAL RESPONSIBILITY PROMOTES ALLIANCES FOR SUSTAINABLE DEVELOPMENT OF LATIN AMERICA AND CARIBBEAN

More than 500 participants identify strategic opportunities for governments, private sector, civil society and multilateral organizations

MIAMI – Five hundred representatives of the private sector, academia, civil society, multilateral institutions and the media ended a two-day meeting on corporate social responsibility today, setting a path for building strategic alliances to promote sustainable development in Latin America and the Caribbean.

The first Hemispherewide conference on corporate social responsibility (CSR) was called by governments during the third Summit of the Americas held in Canada last year and organized by the Inter-American Development Bank together with the World Bank and the Organization of American States.

The Canadian Government and the Inter-American Foundation were also sponsors of the conference, and co-sponsors included the University of Miami, the International Finance Corporation (IFC), the Centro de Estudios para América Latina , the Avina and Grupo Nueva organizations, Citigroup and Starbucks, among others.

Organizers said that by analyzing the benefits, impact and results of CSR and searching for synergies among the different sectors of society, participants in the conference have set the path to building stronger alliances, particularly with the business sector, to deal with social problems and fight against poverty.

IDB President Enrique V. Iglesias said multilateral organizations will support efforts of governments, civil society, and business leaders to create a favorable framework for corporate social activities.

Nicaragua’s President Enrique Bolaños noted the government’s responsibility for building a modern and efficient state “to create the best conditions for national and foreign investors” in a globalized world. He said his campaign against corruption has clear support from all sectors.

“It is not possible to speak about CSR when the institution in charge of the regulation of the different sectors of the economy fails to comply with its economic, social, environmental, ethical and moral responsibilities, among others,” he said.

In his keynote address at the conference, U.S. Assistant Secretary of State Otto J. Reich said that individuals, communities, governments and companies must work hand-in-hand to fight corruption. Speaking as a former businessman and as a member of the administration of President Bush, Reich said that the profit motive must be fully compatible with social responsibility.

Noting that a commitment to fight corruption is key to the health of the democratic system, Reich challenged the private sector to adhere to high ethical standards both at home and overseas.

IFC Executive Vice President Peter Woicke stated that more attention needs to be paid to the relationship between private investment, social responsibility and emerging markets, because the basic nature of the world has changed dramatically over the past decade.

He explained that, in 1990, for every dollar of long-term development assistance to the government of a developing nation there was less than one dollar in long-term capital flows from the private sector. Today, even as private capital flows to emerging markets have slowed down since 1998, for every dollar of development assistance there are about three dollars in long-term private capital flows, an unprecedented change.

Bernard Pasquier, director for Latin America and the Caribbean at the IFC, highlighted the efforts in ensuring that the business projects the IFC finances reflect a long-term view and in the process enhance the quality of life, support community development and preserve the environment. Projects must also result in tangible benefits in market access, availability of inputs and productivity at the firms.

Many participants from the academia, corporate foundations and civil society organizations shared innovative ideas and best practices in approaching CSR. Harvard Business School Professor James Austin emphasized the need for creating a CSR and alliances that are sustainable. William S. Reese, chief operating officer of the International Youth Foundation, underlined the need for scaling-up for successful partnerships. Helio Mattar, president of the Akatu Institute in Brazil, signaled that consumers as well as investors consider companies to be social agents whose responsibilities lie not only in generating products, jobs and taxes, but also in the welfare of society as a whole.

The participants discussed partnerships in local economic and community development with civil society; the new philanthropy; volunteerism; business as a role model for business; the role of supranational organizations; oversight institutions; and the media.
“Many actors are jumping on the bandwagon of CSR, but we have to be careful that the efforts are not just for the show or one-shot-deals. This can kill CSR. It is critical that it be done in a sustainable way, where the parties are committed for the long run and where all gain from the results,” said Antonio Vives, chair of the Organizing Committee of the conference and deputy manager of the IDB’s Sustainable Development Department.

“Multilateral institutions can help in this effort, becoming the fourth pillar, the ones that provide the long run, sustainable view, the ones that can seek consensus among the other three parties, if needed, given their independent and long-term approach,” he concluded.