Instituto Ethos

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Conference launches mechanisms to strengthen CSR in Brazil

Andreas Grundig, Louise Emille, and Mel Frias

Aiming to enhance the CSR movement influence on macroeconomic policies and effectively contribute to the reduction of social inequalities while keeping ecologic balance, three mechanisms were launched as a practical result of the 2006 International Conference. They seek to tackle in a straightforward manner the lack of credit of alternative corporate initiatives, integrate corporate initiatives into the index created with the support of the United Nations Children’s Fund (Unicef) for child development and schooling, and reduce corruption. See below each one of these mechanisms:
Solidarity Capital Fund (FCS): opening a credit line to allow cooperatives growth, providing tools to enable companies to sell their alternative products, and improving business management. These are FCS’s objectives, which will additionally allow businesspeople to monitor the social impacts caused by their work. It is expected that a virtuous cycle be created in the medium term so that the increasing sustainability of the practices encouraged generate return on investment for the investors.
Corporate Child Development Index (IDI-E): derivative of the Child Development Index (CDI), created from the Human Development Index (HDI), it aims to encourage companies to become concerned about and directly act on the education of their employees’ children. Marie-Pierre Poirier, Unicef representative in Brazil, said that although the Index evolution is positive in Brazil, there still are reasons for concern, requiring more engagement of private initiatives.  “In around 83% of the Brazilian towns, less than 70% of the women have access to the six expected prenatal visits to the physician,” she said. Equally worrying is the fact that only 61% of the children have access to preschool.  Finally, it was highlighted that the 2004 average mortality rate in Brazil, which is 26 per one thousand births, hides some distortions: “White children’s rate is 22.9 per thousand, whereas the rate for black children goes up to 38 per thousand, and soars to 47 per thousand for indigenous children.”

Business Pact for Integrity and Against Corruption: an attempt to find a way out for citizenship and democracy, aiming to eliminate any type of corruption. It is already considered one of the examples of what can be done to keep a good public-private relationship. Flávio Medeiros, president of ‘Clube de Criação do Rio de Janeiro’ (an advertisers association), took the opportunity to state: ”Either Brazil will do away with corruption or corruption will do away with Brazil”.