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Copyright © by the Inter-American Development Bank. All rights reserved. Copyright © by the Inter-American Development Bank. For more information visit our website: www.iadb.org/pub This pageintentionallyleftblank Copyright © by the Inter-American Development Bank. All rights reserved. Copyright © by the Inter-American Development Bank. For more information visit our website: www.iadb.org/pub Corporate Social Responsibility in the Promotion of Social Development EXPERIENCES FROM ASIA AND LATIN AMERICA Edited by MANUEL E. CONTRERAS INTER-AMERICAN DEVELOPMENT BANK Copyright © by the Inter-American Development Bank. All rights reserved. Copyright © by the Inter-American Development Bank. For more information visit our website: www.iadb.org/pub ©2004 Inter-American Development Bank 1300 New York Avenue, NW Washington, DC 20577 Produced by Free Hand Press in Washington, DC and Funded by the Japan Program of the IDB. To order this book, contact: IDB Bookstore Tel: 1-877-PUBS IDB/(202) 623-1753 Fax: (202) 623-1709 Email: [email protected] www.iadb.org/pub The views and opinions expressed in this publication are those of the authors and do not necessarily reflect the official position of the Inter- American Development Bank. Cataloging-in-Publication data provided by the Inter-American Development Bank Felipe Herrera Library Corporate social responsibility in the promotion of social develop- ment : experiences from Asia and Latin America / edited by Manuel E. Contreras. p. cm. ISBN: 1597820008 Includes bibliographical references and index. 1. Social responsibility in business--Latin America. 2. Social responsi- bility in business—East Asia. 3. Community development—Effect of business enterprises on—Latin America. 4. Community development— Effect of business enterprises on—East Asia. I. Contreras C., Manuel E. II. Inter-American Development Bank. Inter-American Institute for Social Development. 658.408 C45--dc22 Copyright © by the Inter-American Development Bank. All rights reserved. Copyright © by the Inter-American Development Bank. For more information visit our website: www.iadb.org/pub Table of Contents Preface By Nohra Rey de Marulanda .............................................................................. iii Japanese version .........................................................................................v Introduction By Manuel E. Contreras ......................................................................................ix Japanese version. .....................................................................................xvii Acknowledgements ....................................................................................... xxv List of Acronyms........................................................................................... xxvi PART I: THE ASIAN EXPERIENCE Chapter 1. Corporation-Community Collaboration for Social Development: An Overview of Trends, Challenges, and Lessons from Asia By Joaquin L. Gonzalez III, Ph.D. ....................................................................... 1 Chapter 2. Collaboration of NGOs and Private Sector in Improving the Health of Primary School Children in Jakarta, Indonesia (1987–2004): Managing Sustainability Through Partnership Program By Adi Sasongko................................................................................................ 37 Chapter 3. Investing in Social Responsibility: Corporate-Community Engagement in Cebu City, Philippines By Francisco A. Magno...................................................................................... 53 Chapter 4. Successful Partnership for CSR Activities in Thailand: The Nike Village Development Project By Wolfgang Frank ........................................................................................... 71 Chapter 5. Singapore Telecom’s Touching Lives Fund: A Corporate-Government-Community Partnership By Jose L. Tongzon............................................................................................. 93 Chapter 6. Corporate Citizenship as an essential element of Corporate Social Responsibility (CSR): A case study of NEC’s Corporate Citizenship Activities By Hitoshi Suzuki............................................................................................ 115 Copyright © by the Inter-American Development Bank. All rights reserved. Copyright © by the Inter-American Development Bank. For more information visit our website: www.iadb.org/pub Chapter 7. Sustainable Management and Community Development in the Ricoh Group By Susumu Nakamaru .................................................................................... 125 Chapter 8. CSR: Examples of Relevant Practices of Japanese SMEs By Mariko Kawaguchi ..................................................................................... 141 PART II: THE LATIN AMERICAN EXPERIENCE Chapter 9. Corporate Social Responsibility in Latin America: An Overview of Its Characteristics and Effects on Local Communities By Roberto Gutiérrez and Audra Jones............................................................. 151 Chapter 10. Manos Unidas (United Hands): Together, It Is Possible A Case of Corporate Social Responsibility in Chile By Ximena Abogabir........................................................................................ 189 Chapter 11. A School-Based Recycling Program Becomes a Business Opportunity for a Company and Local Communities in Venezuela By Audra Jones ................................................................................................ 215 Chapter 12. Community Sustainable Self Development— A Working Model: Peñoles Industries, Mexico By Juan Felipe Cajiga ...................................................................................... 231 Chapter 13. Fome Zero Brazilian Program: Cisterns Program—ASA, Brazilian Banks Federation (FEBRABAN) By Marcelo Linguitte ....................................................................................... 243 Copyright © by the Inter-American Development Bank. All rights reserved. Copyright © by the Inter-American Development Bank. For more information visit our website: www.iadb.org/pub LIST OF TABLES Table 2.1: Health budget per capita and percentage to GDP of Indonesia and other Asian countries and Japan .......................................39 Table 2.2: Prevalence rate of intestinal worms in various provinces in Indonesia during the period of 1970–1980 ............................ 40 Table 2.3: Pfizer financial support to YKB .............................................................42 Table 3.1: Barangays Within NIPAS Areas .................................................... 60 Table 4.1: Stakeholders, activities, and outcome of NVDP ..........................80 Table 5.1: Penetration of CSR Reporting in Singapore ................................ 95 Table 5.2: Extent of CSR Reporting by CSR Companies (Percent) ..............95 Table 9.1: A Typology for CSR Practices ......................................................158 Table 9.2: Main characteristics of five experiences ..................................... 175 Table 9.3: Examples of CSR practices ..........................................................177 LIST OF DIAGRAMS AND FIGURES Figure 2.1: Declining prevalence rate of intestinal worm infection among primary school children in Jakarta (1987–2003) ............................ 44 Diagram 7.1: Concept for Realizing a Society that Recirculates Resources: The Comet CircleTM ................................................ 133 Figure 13.1: Synthesis the Program’s main characteristics .........................249 LIST OF BOXES Box 6.1: NEC Corporate Credo .................................................................... 118 Box 7.1: NEC Corporate and Management Philosophy ............................ 130 Box 8.1: The Constitution of Catalog House Environmental Policy .........144 Copyright © by the Inter-American Development Bank. All rights reserved. Copyright © by the Inter-American Development Bank. For more information visit our website: www.iadb.org/pub LIST OF APPENDICES Appendix 1.1: Examples of Domestic Asian Civil Society and Business Organizations with Local and Multinational CSR Partnership Components ........................................................................34 Appendix 1.2: Multinational Firms Operating in Asia with CSR ‘Pledges’ .............................................................35 Appendix 4.1: CSR, Privatization of Poverty Alleviation and Public Private Partnership ....................................................................... 90 Appendix 4.2: Data On Tbird Industrial Companies In 2002 .....................92 Appendix 5.1: Beneficiaries of the SingTel Touching Lives Fund in 2002 .........................................................................................112 Copyright © by the Inter-American Development Bank. All rights reserved. Copyright © by the Inter-American Development Bank. For more information visit our website: www.iadb.org/pub Preface This book is the result of the papers presented at the workshop on Corporate Social Responsibility in the Promotion of Social Development: Experiences from Latin America and Asia that took place in Tokyo and Okinawa from July 12 to 16, 2004. The workshop was organized by the Social Development Institute (INDES) in partnership with the Japan Program of the Inter- American Development Bank (IDB), and benefited from the collabora- tion of the IDB Office in Japan and financial support of the Government of Japan. It is the last of a