Corporate Social Responsibility in Latin America: Responsible Solutions to Business and Social Problems
By Estrella Peinado (12/05, PEF-106, En) See also Microenterprise
The private sector plays a key role in economic growth and wealth creation and is considered a pillar of development. Yet, we know that in order to contribute to sustainable economic development the private sector must be competitive, and it is becoming increasingly clear that long-run competitiveness requires that companies become socially and environmentally responsible. Companies are behaving more responsibly and contributing to efforts to alleviate poverty because doing so is good for business. If well implemented, corporate social and environmental responsibility (CSR) efforts can contribute to the creation of quality jobs, a responsible supply chain, transparency, the efficient use of natural resources and other positive outcomes that can also help reduce poverty. In Latin America, a quarter of the population lives on less than two dollars a day and about 50 million people live on less than one dollar a day and are considered extremely poor.
Thus, the business sector in the region must take these facts into account and integrate social issues into corporate strategies to avoid finding itself at a disadvantage.
The most important contribution that the private sector can make to development is through the way it conducts business. However, engaging with stakeholders inside and outside the company can help to leverage business resources, skills, competencies, technology and networks, and increase the sector's contributions to development. As long as CSR is considered a part of the business strategy, the sector will be able to have a long-term, sustainable, positive impact on growth, development and poverty.
Socially and environmentally responsible business practices contribute to poverty relief and business success. This report presents some examples and lessons from private initiatives to solve business and social problems. The Inter-American Development Bank hopes this analysis will inspire other companies and agencies to create prosperity, alleviate poverty and build responsible and fair societies.
Last updated: 05/08/07
