Corporate Social Responsibility in the Global Supply Chain

Corporate Social Responsibility in Peru FORZAs Minority Inclusion Program Peru Written by Pedro P. Franco Dean School of Business Administration and Accountancy Universidad del Pacífico Case Study: Peru 1 The case was developed with the cooperation of Asociación “FORZA Responsabilidad Social” (FORZA Social Responsibility Association) solely for educational purposes as a contribution to the Project entitled “New Corporate Procurement Strategy on Trade in Goods and Services in APEC Region - Supply-chain options with CSR perspective -” conducted under the auspices of the Asia Pacific Economic Cooperation (APEC). The case is neither designed nor intended to illustrate the correct or incorrect management of the situation or issues contained in the case. No part of this case can be reproduced, stored or used without the written permission of the author and the Asia Pacific Economic Cooperation. © 2007 APEC Secretariat 174 Case Study: Peru 1 Executive Summary The case is based on a Peruvian company called FORZA S.A. which offers Corporate Security Services and its inclusion program for people with disabilities. This program which is focused on the thematic area of human development of people with disabilities, is one of several CSR activities undertaken by the FORZA Social Responsibility Association and consists of offering positions as operators in the Information and Control Center (CIC). Because FORZA is a service company, its employees (or “collaborators”) are an important part of the supply chain since they are the suppliers of the services that FORZA offers its clients. Thus through its “Different Abilities” program FORZA applies CSR concepts in its supply chain by encouraging people with disabilities to become part of the company, and offering them the opportunity to develop themselves and to grow professionally. From the legislative point of view there are norms for the inclusion of people with disabilities but in practice, there is widespread exclusion of these people from society as a whole because many have the misconception that people with disabilities are not capable of performing complex procedures. Therefore, society systematically excludes them from participating in organized economic activities. For that reason, FORZA’s project has had a very positive impact, since it not only conforms to the law and recognizes the rights and benefits of all its collaborators, but it also proactively offers positions to people with disabilities who have not previously had an opportunity to obtain employment. Worldwide there are nearly 600 million people with some kind of disability, a situation which might have been expected to generate more interest and recognition than has been the case so far. The objective is to formulate and implement effective measures through legislative, administrative and executive measures that would allow the progressive participation of people with disabilities in organized economic, social and cultural activities. In developed economies which face slower labour force growth, such recognition is occurring and more executive labour market practices are now being implemented. Developing economies are also taking corresponding measures to develop a more inclusive society. Peru has been experiencing significant advances in favor of people with disabilities. These are being reflected in affirmative actions aimed at achieving an absolute fulfillment of the right of “equality of opportunities”. Progress has required the commitment of all the social actors (public and private sector). According to a study of the National Institute of Rehabilitation and the Pan-American Organization of Health (INR-OPS) there are over 3.4 million people with disabilities in Peru, of which 27.7% are between 0 and 19 years, 24.7% are between 20 and 39 years, 19.1% are between 40 and 59 years, and 28.4% are more than 60 years old. Unfortunately 75% of people with disabilities do not work. FORZA is aware of its role as a socially responsible company and is committed to provide equal opportunities for employment. In general, there is still a long way to go to achieve the vision of a truly inclusive society in Peru. But Peru will be nearer to achieving this vision once society begins to see people with disabilities as valuable resources and understand that tolerance of and respect for diversity are fundamental in helping people to achieve their potential as human beings. 175 Case Study: Peru 1 Introduction FORZA: "A Peruvian-owned firm innovating for the world." FORZA S.A. is a private company offering Corporate Securities Services. A leader in its field, FORZA has as clients more than 50 major companies throughout the economy. It was created in March 1991 by a group of Peruvian businessmen who accepted the challenge to create a new company with an organizational philosophy focused on: • Specialization in security issues • Quality management • Technology applied to its operations • Staff of professionals, technicians and qualified agents FORZA began its social responsibility activities on 04 October 2004 by creating a non-profit organization, known as The FORZA Social Responsibility Association, which: 1. Believes that every company has the duty to contribute to the development of its environment, in a permanent way. 2. Searches the security of the human development of poor and extremely poor boys and girls of the community (at the economy-wide level). 3. Aspires to be a company that produces wealth and well-being, and generates sustainable development in its operation. 4. Aspires to maintain its leadership through innovation--FORZA was the first corporate security company to implement a Social Responsibility Management System in Peru. 5. Considers that social responsibility is a strategic management tool that facilitates stakeholders’ understanding. 6. Believes that any social responsibility activity has direct impact on the national social agenda. FORZA is considered, by the PERU 2021 Association, as a socially responsible company. In March 2005 the company was awarded first place in the competition, “Prize to Social Responsibility and Sustainable Development” in the communities, medium-sized company category through its program, “Socially Responsible Children.” Profile of FORZA History1 FORZA S.A. was founded in 1991 by navy officers to provide high quality integrated corporate security services to firms in different economic sectors, which had seen their financial performance diminished not only because of the difficult economic climate, but also because of a social crisis caused by terrorism and common delinquency. In that climate, FORZA’s business model quickly became the preferred choice because of the nature of its service, which was adapted to the needs of each customer. 1 Website: http://www.forza.com.pe/InfoCorp_historia.htm. 176 Case Study: Peru 1 FORZAs’ organizational design which is based on experience and professional capacity, has allowed it to grow and consolidate within the Peruvian market, and to continue to foster the economy’s development. Its experience in providing both facility and patrimony security in urban and rural areas, has allowed it to specialize in serving the mining, industrial, energy and oil sectors. After 16 years of successful operations FORZA continues to develop and adapt its services to the needs of its customers. Vision “To maintain leadership as innovators and guides in the Corporate Security sector in the economy, giving services of the highest quality in order to increase the operational effectiveness of our customers, thereby contributing to their financial and commercial development and safeguarding their patrimony.”2 Mission “To provide the best alternative in Corporate Security Services, meaning a system offering quality, technology and support for the protection of people and patrimony. The system allows the development of strategic plans adapted to the needs of each customer.”3 Corporate Principles and Values All the activities and projects of FORZA aim to contribute to the accomplishment of the Millennium Development Goals and the Global Compact of the United Nations (Figure 1). Figure 1: Corporate Principles of FORZA Millennium Global Development Company’s Goals Values Compact Goals Stakeholders Personnel Clients Shareholders Suppliers (Workers) Government University Environment Community Source: FORZA 2 Website: http://www.forza.com.pe/InfoCorp_mission.htm 3 Ibid. 177 Case Study: Peru 1 Strategy FORZA’s approach to inculcate CSR in its work is based on the action lines of the Policy of Social Responsibility of the organization, which has the following elements: • To respect and impel the cultural patterns (culture, tradition and values) of the communities and all the stakeholders of FORZA surroundings. • To consider the population as stakeholders to make processes of consultation and communication based on its social, economic and institutional sustainable development. • To integrate in a progressive way all the actions to accomplish local, regional and national objectives. FORZA has proved its commitment by establishing an Integrated Management System Policy or IMS, encompassing the following objectives, goals and strategic programs of the organization: • To increase the managerial and organizational participation in the IMS. • To strengthen the good practices on social responsibility. • To obtain better Security, Health and Environment practices. • To improve client satisfaction. • To evaluate performance and recognition. Security Services "Excellent security services in

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