ACHIEVEMENTS AND CHALLENGES OF CORPORATE SOCIAL RESPONSIBILITY IN COLOMBIA

ACHIEVEMENTS AND CHALLENGES OF CORPORATE SOCIAL RESPONSIBILITY IN COLOMBIA1

ROBERTO GUTIÉRREZ / LUIS FELIPE AVELLA / RODRIGO VILLAR

1 This document was written by Roberto Gutiérrez and Luis Felipe Avella (both from University of Los Andes), and Rodrigo Villar (Consultant to the InterAmerican Foundation). Research was financed by the following organizations: Carvajal Foun- dation, Compartir Foundation, Corona Foundation, Ideas for Peace Foundation, Business People for Education Foundation, Antonio Restrepo Barco Foundation, Mario Santo Domingo Foundation, Social Foundation, Dividendo for Colombia Founda- tion, Saldarriaga Concha Foundation and Suramericana de Inversiones.

CONTENTS

PREFACE ...... 55 EXECUTIVE SUMMARY ...... 57

I. NOTABLE CONTRIBUTIONS IN A WORLD THAT IS FAR FROM EXEMPLARY ...... 59

II. EVOLUTION OF BUSINESS INITIATIVES OF THE 20th CENTURY ...... 63 Business Programs Adopted as Public Policy ...... 64 The Debate About Payment of Taxes ...... 66 Other Business Contributions Unique to the Colombian Case ...... 67

III. DIVERSITY OF CORPORATE SOCIAL ENGAGEMENT ...... 71 Diversity of Target Populations ...... 72 Diversity in Needs and Problems Confronted ...... 73 Diversity and Innovation in the Structuring of Social Interventions ...... 75 Strategic Philanthropy: Initiatives that Generate Social and Economic Value Simultaneously ...... 78

IV. COLOMBIA IN THE LATIN AMERICAN CONTEXT ...... 79

V. CSR CHALLENGES IN COLOMBIA ...... 83

EPILOGUE ...... 87

BIBLIOGRAPHY ...... 89

ANNEXES Annex 1. Abundance and Scarcity in Colombia ...... 91 Annex 2. Manifestations of CSR in Colombia Throughout the 20th Century ...... 93

ACHIEVEMENTS AND CHALLENGES OF CSR

PREFACE

This monograph is a welcome addition to our growing collective knowledge on Corporate Social Responsibility. It will be useful to managers, policymakers, and academics interested in understanding and advancing CSR not only in Colombia but throughout the hemisphere.

Readers will find this work useful in various ways. To capture the future, we need to understand the past. Colombia has a long and rich history of business engagement with social issues that is succinctly captured in the book. A salient and continuing characteristic has been businesses’ capacity to innovate. Pioneering social experiments by businesses in various key problem areas have led to their subsequent adoption as important national policies implemented countrywide. There is no doubt that the business sector has been an important architect in helping construct Colombia’s social strategy along with its traditional role in the economic realm.

The business sector’s approach to CSR has also evolved as it discovered new ways to relate its social activities with its business operations. This journey toward strategic corporate responsibility involves an integration of economic and social dimensions. Colombian businesses, along with their counterparts throughout the hemisphere, are engaged in an important discovery process of how to capture the synergies between

55 ACHIEVEMENTS AND CHALLENGES OF CSR

creating social and business value. This involves a fundamental shift in mindset, strat- egy, and practices. This monograph not only reveals this search in Colombia but also provides and applies a conceptual framework for analyzing this more systematically.

Much of the work’s richness lies in its documentation of the actual practices of indi- vidual businesses and business associations. There is considerable diversity of experi- ences, but the nature and loci of their actions are usefully categorized to reveal com- monalities.

Consistent with the action-oriented nature of the business sector, the monograph ap- propriately ends by a call to action and a suggested approach to making significant additional progress on the unfinished CSR agenda. This work will serve as a catalyst to accelerating our important collective journey to building better communities, coun- tries, and societies.

James E. Austin Snider Professor of Business Administration Harvard Business School

56 ACHIEVEMENTS AND CHALLENGES OF CSR

EXECUTIVE SUMMARY

For a country in the midst of violence and experiencing huge social inequalities, what is the possible contribution of businesses in the construc- tion of a different society? To respond to this question we examine what Colombian companies do for each of their interest groups, both those that are close to their operations and those that transcend nearby communities. We find a variety of initia- tives that respond to distinct needs, are structured differently, and impact workers, suppliers, clients, competitors, local communities and specific sectors of civil society. Among the innovative organizational structures, which are designed to contribute to development from a perspective of fundamental rights, the private sector’s alliances with civil society and the public sector stand out. We also explore the level of tax con- tributions by the private sector: there is a problem, not of tax levels (which are com- parable to the US when local, para-fiscal and national taxes are taken into account), but of tax collection.

Throughout the last century, there has been an evolution of the different kinds of contributions, from charity to social investments and strategic philanthropy. We dis- covered a path already forged by large enterprises and some first steps taken by small- er businesses. The social interventions of Colombian enterprises are among the oldest and most diverse in Latin America. Different kinds of social engagement by Colombian

57 ACHIEVEMENTS AND CHALLENGES OF CSR

businesses are exemplary in the Latin American context for the quality of their man- agement and for their results. The characteristics of these initiatives has allowed orga- nizations supported by the private sector to work with international financial institu- tions for a number of decades and has led, among other things, to transparency and accountability in their processes and therefore has made them examples among the international community.

To deepen the impact of social initiatives of the private sector requires the strategic participation of business leaders as well as greater consciousness of the results. Finan- cial assistance is a minimal part of potential contributions; the greatest leverage is achieved when knowledge, competencies and business logistics are made available to social causes.

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I.

NOTABLE CONTRIBUTIONS IN A WORLD THAT IS FAR FROM EXEMPLARY

Colombia is a country of contrasts. Amid the abundance of initiatives there is a scarcity of security. The armed conflict has intensified in the last decades due to the influx of money from drug trade. Given that this is a worldwide problem, in Colombia the conflict has seen renewed force and has claimed many lives. Colombians have been allotted a strange luck: we live and work with an uncommon intensity because as individuals we are never quite sure what dawn will bring. This is the advan- tage that we have chiseled out of our misfortune, an advantage which contributes to the explanation of the Colombian business sector’s efforts in the social arena.

The contributions of the private sector in the construction of Colombian society are not only seen in direct interventions, but also include very particular ways of financing state programs and channeling investments through nonprofit organizations. The following three paragraphs give a panorama of these three distinct types of support.

First, social responsibility is an important topic for the private sector in Colombia. Each of the 98 companies that responded to a survey on the topic, taken in 2004 by the National Association of Industrialists among its 850 affiliates, considered it necessary to assume responsibility for communities. Half of these companies put out a yearly social statement and a third report on their social initiatives; three out of four contribute to foundations and their budget for 2004 was 45.9 million dollars. The total contribution of these businesses (256 million dollars) -in social services for their workers and com- munities, and in donations towards foundations- represented 3.34% of their total sales in 2003. The self-reported value of their contributions included more line-item donations than their reports to the National Tax Administration, which totaled 121.5 million dollars in 2004. For a comparative perspective it is interesting to cite a survey taken in Latin American by Management & Excellence (M&E), for which 258

59 ACHIEVEMENTS AND CHALLENGES OF CSR companies participated: “45% of companies have philanthropy’ in Latin America has come from the undertaken serious social initiatives for more than business world; studies in Brazil, Chile, Peru, Co- 7 years, although almost half reported that they lombia, Ecuador and Mexico reveal that business spend 0.5% of income on such efforts. (According leaders are the principal supporters of new founda- to M&E, the greatest among corporations world- tions in the region. In 1997, María Cristina Rojas wide is 3%).” (Latin Trade 2005). identified 94 corporate foundations in Colombia with endowments close to US$ 1 billion, equivalent Second, the private sector created vari- to 1% of the GDP and 5% of total public spending ous voluntary programs that later became law and in that year. Meanwhile, in Brazil in 2000 the cor- today manage to directly finance both non-govern- porate spending in various types of social projects mental organizations and state entities. The Cajas was estimated at 2.3 billion by 462,000 companies de Compensación Familiar (Family Compensation and represented 0.4% of the GDP that year (Rojas Funds), nonprofit organizations who’s origins and y Morales 2000).2 financing can in part be attributed to companies, have broad coverage: 53 Family Compensation This document presents a panorama of Funds in 531 municipalities with 183,676 compa- the principal social initiatives of Colombian entre- nies and 3,547,610 workers affiliated, benefited preneurs of the recent past and highlights some –including family members– a total of 9,846,031 future challenges. These initiatives, which are grow- people (22.2% of the Colombian population) in ing thanks to the efforts of a number of individu- 2003. During this year, companies contributed a als and companies, tend to go unrecognized when total of 526 million dollars to the Cajas de Com- looking at the economic data and when consider- pensación Familiar (Family Compensation Funds), ing the level of social decline. In an environment in 395 millon dollars to the ICBF-Instituto Colombia- which there are many different needs (see Annex no de Bienestar Familiar (Colombian Institute of 1: Scarcity and Abundance in Colombia), greater Family Well-Being) and 263 millions to the SENA- cooperation, synergy and coherence from national Servicio Nacional de Aprendizaje (National Learn- and international actors will help our development ing Service). The 1.2 billion dollars contributed to be sustainable. At the national level, public and to these social initiatives by businesses represent private sectors need to work together to confront 1.39% of GDP. the complexity of our situation.

Third, the Colombian nonprofit sector In Colombia, the business sector has par- stands out in Latin America. To begin with, it em- ticipated and taken leadership in many initiatives ploys about one-third of public sector workers and that have had an impact on society. To understand generates 2.4% of total employment, more than the the breadth of the spectrum of these initiatives, we average in the region. Furthermore, the nonprofit present a typology of the different business initia- sector is internationally recognized for its diversity tives, from those in which an investment has no and for its contributions to political, economic and direct benefit for the company to those in which social life (Villar 2001). During the last decade, the there is a clear link with the business. The quanti- greatest amount of resources from so-called ‘new fication of these efforts and an evaluation of their

2 In 2002, The Institute for Research in Applied Economics, IEPA, of Brazil surveyed 9,140 businesses among 782,000 and found that 59% of businesses invested R$ 4.7 billion in social assets (an amount equivalent to 0.4% of GDP).

60 ACHIEVEMENTS AND CHALLENGES OF CSR impact go beyond the reaches of this study.3 In fact interviews, complemented in some cases with in- its purpose is to provide a framework for corporate formation available from other studies. Information social responsibility (CSR) in Colombia, in the con- about other initiatives deserves to be highlighted text of Latin America and shows its evolution during and added to the experiences described here. For the last century, in order to propose alternatives to that purpose we are developing a web site that will make it more strategic. map out the social initiatives in which Colombian businesses participate.4 Meanwhile, the following The diversity and the scope of social en- pages tell the story of our initial efforts. gagement of the business sector in Colombia do not allow for a complete inventory at the moment. This text has a political dimension because We concentrate on those social initiatives that have it argues that some business sectors participate in been promoted by the private sector. Another study the construction of a different country. The results is needed to look at the role of civil society that has of the study make this support visible; hence the re- no relationship with the private sector. We acquired ported achievements. Nevertheless, it is important information from 75 organizations, 35 businesses to point out what remains to be done towards the and 40 nonprofits, foundations or associations. construction of a healthy society; hence, the de- Our primary source of information was in-depth scription of challenges.

3 In the final part of this document are the guidelines for carrying out a broader study than the three months defined for the present research. To evaluate the contributions of the private sector to the construction of Colombian society is a task for which data does not exist. A few studies provide data for specific sectors and their authors rarely mention the bias in data collection.

4 A longer version of this report can also be found in www.mapearse.net

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II.

EVOLUTION OF BUSINESS INITIATIVES OF THE 20th CENTURY

A historical perspective is needed to understand the diversity of approaches of Colombian business engagement. The accumulated experience of their direct interven- tions, or interventions via governmental or non-governmental organizations, allows for the construction of elaborate proposals and far reaching cross-sectoral agreements. Current possibilities are the result of multiple steps taken in the past.

In Colombia, as in the rest of Latin America, the Catholic Church has played an important role in the history of philanthropy since the Colonial period. The predominance of the church in the world of charity, with various manifestations, has been maintained throughout the 19th and 20th centuries (Sanborn and Portocarrero 2003, p. 7).

In the 20th century, it is important to understand the diverse social policies that were formulated and implemented by the state in the context of development. For example, through the efforts of industri- alization through import substitution between the 1930s and 1970s, Latin American governments favored growth of the industrial sector and internal markets. This gave incentives for the middle class and urban labor sectors to create organizations that promoted certain kinds of social protection, services in health, education and housing.

In Colombia, business development has been concentrated in urban centers. Between 1929 and 1945 the GDP grew at an annual rate of barely 3.3% while the manufacturing industry grew at an annual rhythm of 7.4% and increased its total contribution to GDP from 8.9% in 1929 to 16.5% in 1945. In 1944, the founding of the Asociación Nacional de Industriales-ANDI (National Association of Industrialists) crystallized after various failed attempts. A year later a group of merchants and business men from different parts of the country, but

63 ACHIEVEMENTS AND CHALLENGES OF CSR residing in Bogota, founded the Federación Nacional requirements and costs are proportionally greater de Comerciantes-FENALCO (National Federation of than in the OECD countries (IFC 2004). Merchants). Later, in 1951, another important associ- ation is born, the Colombian Association of Small and Mid- Sized Industries of different productive sectors USINESS ROGRAMS (ACOPI), as a result of the fusion of similar regional B P entities in the four most important cities. ADOPTED AS PUBLIC POLICY

In the first post-war decade (1945-1955), Worried by the rise in prices of basic goods, industrial production grew at the fastest rate in the which lowered the real income of working and mid- past 50 years (9.1% annually) and, until 1974, con- dle class families, the President and the Board of Di- tinued to grow at annual rates above the global rectors of ANDI proposed, in the XI General Assembly growth of the economy. Among the cities that ex- in 1954, to establish an autonomous system of family perienced important industrial development were: subsidies financed by a payroll tax. The idea of a living Bogota (beer and cement), Medellín as the principal wage, inspired by the Catholic social doctrine, was city in the textile industry (after textiles occupied intended to improve the well-being of workers and, first place in Colombian imports), Barranquilla (tex- in turn, to contribute to a peaceful society. The sub- tiles and wheat milling), and Cali (sugar processing). sidy would be distributed according to the individual’s By mid-20th century, industries arrived to cities like family needs, and not depending on the kind of com- Manizales, Bucaramanga, Pereira, Cartagena and pany nor the workers output. On May 24, 1954, the Ibagué (ANDI 1994). Caja de Compensación Familiar de Antioquia-COM- FAMA (Family Compensation Fund of Antioquia) was In 2004, despite industrial development, established by 45 companies employing more than there are few large companies in Colombia and the 20 thousand people. Company participation was vol- average annual income (US$ 1,810) is less than the untary and the sum of contributions was independent regional average (US$ 2,976) and far from the that of the marital status or the number of children of em- of OECD countries (US$ 25,773). According to cal- ployees. In August of that year, COMFAMA paid the culations made by CONFECAMARAS (the Confeder- first subsidies: 8 pesos for each child under the age ation of Colombian Chambers of Commerce), there of 14 or for each student under 20; the first year the are 431,000 micro enterprises and 47,000 small and real income for some grew up to 40%. In 1957 the medium sized companies. Micro enterprises gener- State made this innovation obligatory. Even today, ate 1,700,000 jobs; they contribute 38% of industri- few countries in the world have anything similar. al production (48% of industrial employment); and they contribute between 56% and 70% of sales in Later, ACOPI promoted the constitution of the service and retail sectors employing 70% and these Compensation Funds for small and mid-sized 75% of the labor force in these sectors. The growth businesses in cities like Bogota, Barranquilla, Mede- rate of micro enterprises was above 8% during 2004 llín, Cali and Ibagué. Since their creation the Funds, (Mercados PYME 2004). While the requirements for together with the Family Subsidy System, have dem- business operations, including startup, difficulties in onstrated to the business community, employees, the hiring and licensing personnel, procedures for ob- State, and to society at large a viable alternative to im- taining operation licenses, access to credit, protec- prove the lives of Colombians (Portafolio 2004, p. 27). tion of investments, and legal costs of closures, are Their services reach 22.2% of the population. By April lower in Colombia than the regional average, the of 2004, 34,300 housing subsidies were granted, 60%

64 ACHIEVEMENTS AND CHALLENGES OF CSR to beneficiaries with less than two minimum monthly A third example of a State program which salaries and the remainder to those in the bracket of the private sector promoted is the technical and vo- 2-4 minimum monthly salaries. Attention to child- cational training of the Servicio Nacional de Aprendi- hood and supplemental school hours has benefited zaje-SENA (National Learning Service). This program 1.6 million minors with investments of 21.1 million is also financed by a payroll tax on companies. These dollars, and 101,143 students from preschool to uni- are payroll taxes that are imposed for a specific desti- versity level. Their health insurance and services covers nation and are not considered as part of the national 14 % of healthcare nationally. Finally, the Funds run budget. They are, rather, denominated as para-fis- 225 different recreation centers, including vacation cal because they are designated to finance a spe- destinations, museums, auditoriums and parks. cific activity which effects a particular group, their administration is carried out by an entity other than Another program inspired by business mod- the National Tax Administration and the amount is els was the pre-school program adopted by the Institu- not dependant on the income of the company. In to Colombiano de Bienestar Familiar-ICBF (Colombian Colombia these taxes finance the SENA, the ICBF Institute for Family Well-Being). During the first half of and the Family Compensation Funds, and funds for the last century, certain companies and factories held transportation, coffee and rice cultivation. The pay- child-care on their properties for the young children roll taxes must be paid by all public and private com- of some of their working mothers. The government panies, regardless of their size, number of employ- of Carlos Lleras Restrepo (1966-70) understood the ees or capital holdings. If the company is affiliated benefits of such an initiative and extended it to oth- to one of the Family Compensation Funds, it must er companies with two substantial modifications: it pay directly into that fund the following: 4% to the ceased to be voluntary and the day cares were moved Family Compensation Fund, 3% to the ICBF and 2% from factories to low- income neighborhoods. This to the SENA. The Family Compensation Fund is then program today covers a wide range of municipalities in charge of making the corresponding distribution. and while it does not reach the entire population, it In the case of the ICBF, this represents more than has contributed to diminishing the levels of malnutri- 98.5% of its total income. The quantities of payroll tion in the country and has allowed mothers to enter taxes for the year 2003 appear in Table 1. the labor force without abandoning their children.

TABLE 1. PAYROLL TAXES 2003

Payroll taxes 2003 Millions of pesos Millions of Dollars

Compensation Funds 1,394,245 526 ICBF 1,045,684 395 SENA 697,123 263 Total 3,137,052 1,184

Percentage of GDP 1.39%

Source: ANDI 2004.

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The example of particular companies has and subsidized regimes diminishes this gap. One given impulse to the government to legislate the percentage point of total wages, which makes up extension of the most interesting practices, like a solidarity fund, finances the subsidized regime. family subsidies and child care, to the rest of the Meanwhile, the money collected for the contribu- private sector. This has also resulted in the payment tory regime corresponds to 12% of all workers’ of twice-a-year “premiums” for employees. Some salaries: the employer contributes 8% and the em- companies began to pay them and, later, the gov- ployee 4% of the wage. ernment included them in the package of social benefits that every worker has a right to receive. THE DEBATE ABOUT For Colombian workers, there is a great difference for a laborer between a job in the infor- PAYMENT OF TAXES mal and formal sectors because of the social protec- tion that the employee is entitled to in the formal A report presented in 2004 by the Cen- sector.5 Although in the last few years there have ter for International Policy (CIP) instigated a debate been some attempts to diminish this gap, the lack about the payment of taxes in Colombia: on the of access to unemployment insurance or pensions one hand, there are those who argue that regres- for those who do not hold formal employment is sive taxes are out of proportion. On the other hand, critical. In health, the co-existence of contributory some sustain that contributors have made enormous

TABLE 2. PAYMENT OF TAXES IN COLOMBIA AS A PERCENTAGE OF GDP

Year National Other taxes (municipal, Total taxes departmental and para-fiscal)

1987 8.80 3.28 12.06 1990 9.03 3.36 12.39 1995 10.14 3.68 13.82 1999 10.26 4.4 14.66

2000 11.03 4.27 15.30 2001 13.13 4.3 17.43 2004* 14.27 4.31 18.58 2005** 15.00 4.33 19.33

* Includes a one-time tax on property ** Estimation based on budget presented to Congress

Source: ANDI (based on information from the Income Mission, DNP, General Accounting, DIAN, Confis and Superintendencia del Subsidio)

5 The size of the informal sector (or the unregulated sector as it is also known) in the Colombian economy varies according to the definition adopted. According to the National Statistics Administration, DANE, between 55 and 60% of the economically active population participate in the informal sector.

66 ACHIEVEMENTS AND CHALLENGES OF CSR efforts in the past few years. What cannot be denied A phenomenon of singular characteris- is that tax evasion exists. The result is that a few carry tics in Colombia is the Chambers of Commerce. the tax burden, while others evade responsibility. The They are more than 50 organizations which sup- vicious cycle takes hold when the State doesn’t have port the business sector, collaborate with the regu- enough resources and, as a consequence, overbur- lation of commercial activities, and contribute to dens those who it can control and influence. The the improvement of the quality of life in each of lack of ability on the part of the State to collect taxes the cities and regions in which they operate. Some is not unique to Colombia among Latin American examples of their diverse social initiatives are the countries. following:

According to a recent ANDI report, the • Chamber of Commerce of Bogota: a protagonist rate of collection of national taxes has increased in programs and projects related to education. considerably in the last 15 years, from 9 % in 1990 • Chamber of Commerce of Medellín: supports to 15% in 2005. Taking into account the tax reform micro-enteprises of low income families. of 2004, Colombia would have a tax rate of close • Chamber of Commerce of Neiva: supports chil- to 19.3% of the GDP, close to that of the United dren who suffer cleft lip. States (20%). The difference between the ANDI • Chamber of Commerce of Manizales: trains low data and those of CIP is attributed to the fact that income high school students. the industrialists report municipal, departmental • Chamber of Commerce of Cali: “Save the Cali and para-fiscal payments, which do not reach the River” program. accounts of the national government and are not considered by the World Bank. Table 2 shows taxes The Colombian Confederation of Cham- as a percentage of GDP after adding national taxes bers of Commerce (CONFECAMARAS) is an au- to other taxes (municipal, departmental and para- tonomous institution, constituted in 1969, with the fiscal). mission to support and further collective interests among chambers of commerce within the country and abroad. As an association it is a leader in CSR OTHER BUSINESS CONTRIBUTIONS initiatives that have a national impact and which convene the business sector in general. CONFE- UNIQUE TO THE COLOMBIAN CASE CAMARAS has been a pioneer in areas of business ethics and social responsibility of small and medium The main trade organization in Colombia, sized businesses. ANDI, has contributed to the creation of other em- blematic organizations with the direct participation Since the 1960s there has been an in- of companies. For example, in the area of higher creasing presence of business actors in diverse social education it contributed to the creation of EAFIT interventions. On the one hand, a number of faith University in Medellín, University of Los Andes in based organizations in Colombia continue to stand Bogota, Technological University of Pereira, College out for their social impact and depend on impor- of Higher Learning in Administration (CESA) in Bo- tant support from the business sector. On the other gota and the Colombian Institute of Higher Educa- hand, different social initiatives taken on directly by tion (ICESI) of Cali. The ANDI and ACOPI participate businesses sponsor a variety of causes. “The reasons in the board of directors of numerous national in- for the emergence of such a broad range of philan- stitutions. thropic organizations with business origins at the

67 ACHIEVEMENTS AND CHALLENGES OF CSR beginning of the 1960s were varied. Some mention (FENALCO) in 1945 and the Colombian Associa- the business trend that was garnered in the 1950s, tion of Small and Mid-Sized Industries (ACOPI) which was concerned with social responsibility, and in 1951. the legislation favorable to investments in philan- thropy. Others cite the Cold War and the Cuban 2. Nineteen sixties: Colombian labor legislation revolution as motives and, in the case of Colombia, contributed to the protection of employees and the end of a period known for its political violence tax legislation stimulated the creation of foun- and the beginning of the National Front.” (Corona dations by allowing donations to be tax deduct- Foundation 2004, p. 18). ible. In the ten years between 1960 and 1970, an important group of business foundations Beyond the reasons behind its origins, emerged and continue to exist today and stand the social initiatives of Colombian businesses have out for the quantity and quality of their inter- a special force: some of them have “unique char- ventions. By the end of the 60s, social respon- acteristics in Latin America”; others are recognized sibility began to be studied in academia when and appropriated by the State which gave them new the University of Valle (where many important life through tax mechanisms. In summary, corporate Colombian business people studied) started a social responsibility in Colombia has continued to master’s program for top managers with a high grow since the beginning of the 20th century. It is technical level and a humanist emphasis. possible to identify four stages in its evolution (see particular examples listed in Annex 2): 3. Nineteen nineties: in 1991 fourteen trade or- ganizations in Colombia were grouped together 1. First half of the century: in the context of as the National Trade Council. These trade as- Catholicism in Colombia, the church is the so- sociations, through the “Guaymaral Commit- cial actor which the business community has ment” of June 1993, decided to reorganize and primarily supported. Other noteworthy actors strengthen the actions of the Council with the include labor unions and trade associations. At mission of consolidating the actions related to the beginning of the century innovative initia- the social function of the different trade sec- tives were born, such as the Social Foundation tors in the country.6 Throughout the decade the which today continues to stand out as an ex- private sector gave impetus to the creation of ample of CSR. Around mid-century, the major- eight corporations in strategic areas for the de- ity of important trade associations were born: velopment of education, health, innovation and the National Association of Industrialists (ANDI) productive development, peace, community de- in 1944, the National Federation of Merchants velopment, justice and transparency.

6 In 2004,the Consejo Gremial Nacional (National Trade Council) was made up of 16 members from distinct sectors of the economy: ANDI (National Association of Industrialists), ACOLFA (Colombian Association of Auto Parts Manufacturing), ACOPI (Colombian Association of Medium and Small-Sized Industries), ACOPLASTICOS (Colombian Association of Plastics Industries), ASOBANCARIA (National Association of Banks and Financial Institutions of Colombia), ASOCOLFLORES (Colom- bian Association of Flower Exporters), ASOCAÑA (National Association of Sugar Cane Growers), CAMACOL (Colombian Chamber of Construction), COLFECAR (Colombian Association of Truckers), CONFECAMARAS (Colombian Confederation of Chambers of Commerce), COTELCO (Colombian Hotel Association), FASECOLDA (Colombian Insurance Association), and SAC (Colombian Agriculture Society).

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4. Current Decade: the efforts to increase the im- and level of social impact of some alliances be- pact of private philanthropy have generated a tween business and nonprofit organizations. Fur- diversity of work initiatives between the public thermore, the experience of mixed corporations sector and civil society. Recent comparative re- has been useful for the creation of other types search by the Social Enterprise Knowledge Net- of organizations, some of which have greater work (www.sekn.org), a network of 11 Ibero- participation from the business sector. Finally, 54 American universities coordinated by Harvard companies have joined the Global Compact in University, highlighted the unique characteristics Colombia.

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III. DIVERSITY OF CORPORATE SOCIAL ENGAGEMENT

One observation about Colombia stood out in comparison with all the other places that we have observed: in most countries, the context of social conflict can attract companies with a low interest in issues of corporate social responsi- bility. Such companies generally do not pay close attention to human rights, community participation or the establishment of positive relationships with local stakeholders. This is because they often do not have to care about these issues; the conflict dynamics permit an unequal power relationship between the company and local stakeholders. Companies can basically do what they want and are not held accountable for their practices… In Colombia, to our surprise, the situation seems to be almost the opposite. During our visit we came across some of the most creative and constructive corporate practices that we have seen anywhere! Rather than attracting companies that have low social responsibility standards, it appears that the Colombian context attracts some companies with the best corporate standards! This is even further demonstrated by the challenges that some companies in Colombia currently face due to the fact they did not behave in a careful, transparent and inclusive manner.

Luc Zandvliet Director Corporate Engagement Project

71 ACHIEVEMENTS AND CHALLENGES OF CSR

In Colombian both national and multina- chase of washing machines so that working mothers tional companies operate with high CSR standards. may have more time for their children. The business These standards are exemplary for their innovative group Bavaria has a program for fruit farmers which organizational structure, the quality of their man- includes training, financing, technical assistance, agement and/or their results. Many business people and the assurance of selling their produce at stable believe that social engagement should go beyond prices. Three business associations ACOPI, ANDI and mere assistance and should rather promote pro- FENALCO, have formulated an “agreement to unify grams that integrate economic growth with the cre- appropriate industrial, commercial and consumer de- ation of social value and contribute to sustainable fense practices” in order to establish clear rules of wealth generation (Revista ANDI 2004, p. 12). operation among, for example, suppliers and large- scale retail outlets. Homecenter, a large retail chain Numerous businesses surpass the “fron- (of construction materials and equipment) which is tier of social expectations” (compliance with the law part of the Corona business group, has a program to and basic social norms) with social innovations, some train its clients in the use of tools and articles sold in of them far beyond the reaches of their business and the store and a training program for skilled builders others which are closely related. Social interventions to offer their services to the store’s clients. in the Colombian private sector are diverse in three dimensions: who they attend to, in what areas and Many companies work with neighboring how they are structured. The first part of this sec- communities. Some have partnered to create or- tion describes the variety of interventions in relation ganizations which work with particular geographic to the target population and the topics; the second communities. For example, businesses located in part offers a typology of the distinct ways of achiev- the outlying municipalities of Bogota have created ing objectives through these social initiatives. PRODENSA and PRODEOCSA (Corporations for the Development of the Northern and Western Bogota Sabana); businesses in the petroleum industry cre- DIVERSITY OF TARGET ated, among others, the Fundación del Alto Mag- dalena (Foundation for the High Magdalena Region) POPULATIONS and the Fundación Oleoductos de Colombia (Pipe- lines Foundation of Colombia). Society at large is In Colombia, businesses direct their social the object of some organizations in the private sec- initiatives towards different stakeholders and develop tor. For example, the Social Foundation promotes them in various regions. Initiatives may be directed at and participates in discussions about public policy. groups with a direct relationship to the company, to outlying communities and, on occasion, to particu- Social investment carried out by nonprofits lar communities in society at large. There are various created or supported by the private sector address business experiences to be found in each category the needs of less-favored populations in Colombia. but we will only mention a few as illustrations. These populations are much larger than those with close ties to the business. While there are programs Examples of programs closely linked to the for those populations closely tied to a given busi- company’s business include those of the Colombian ness, they are actually a small part of what nonprofits multinational Crepes & Waffles. This company makes do. These organizations target populations all over loans, at no interest, to its female employees, of- the country. Furthermore, their management is sup- fers childrearing seminars, and finances the pur- ported by the private sector. It is worth mentioning

72 ACHIEVEMENTS AND CHALLENGES OF CSR

Compartamos por Colombia (Share for Colombia), established. The following examples demonstrate which was founded to raise the operational capaci- efforts in the areas of education, health, nutrition, ties of nonprofits. To achieve this, the organization childhood protection, housing, productive devel- integrates the work of 19 consulting firms and coor- opment, peace, justice, transparency, institutional dinates different professional volunteer consultants. strengthening, arts and the environment. In its first four years of operation, Compartamos has carried out 66 consulting projects with 1.2 million in- In education, one company -Meals de direct beneficiaries. Colombia- has been a leader to support more than a hundred company directors who volunteered their One can observe diversity and experi- knowledge in the topic of quality management. In ence in the social initiatives carried out in different 2002, 189 public and private schools formed work regions of the country. A study sponsored by the groups, initially in pairs, with the directives of 109 Social Development and Responsibility Committee businesses. One result of this interaction is that of the Valle del Cauca Section of ANDI, traced the some business people were called upon to advise social engagement of businesses in the region since the Ministry of Education and various local Educa- the end of the 19th century and described the cur- tion Secretaries. rent characteristics of 41 companies and 10 non- profits (Laverde 2005). In Antioquia, the Informa- In 1992, four foundations (each one a so- tion Unit of the Grupo Empresarial Antioqueño-GEA cial arm of each of the major economic groups in (Antioquian Business Group) carried out a survey of Colombia, but none in the health area), six compa- social management among three dozen member nies (each in the health sector), seven hospitals, the businesses since 2001 (Unidad de Conocimiento National Fund for Development (FONADE) and the 2003). In the Caribbean Coast, a qualitative study Institute for Social Security (ISS) made a financial of social initiatives of 21 businesses and 3 nonprofits commitment to support the health sector. Since showed the diversity of their characteristics and the then, the Centro de Gestión Hospitalaria (Center for barriers they confront (Escobar, Jiménez and Gutiér- Hospital Management) has worked in training and rez 2005). In the three regions, it is common to find consulting with 125 hospitals, which then account- initiatives in education, community development ed for 25% of all hospital beds in Colombia; with and programs for the well-being of employees. 10 health promotion entities which combine 35% Other common characteristics include an increase of the affiliates to the social security and health sys- in support and corporate volunteerism throughout tem; with 5 Health Secretaries which cover 34% of the years. In the Valle del Cauca and the Caribbean the Colombian population; and with 35 ambulatory Coast regions, businesses have special support for health clinics. income generation programs, while in the GEA busi- nesses the emphasis is in environmental protection. Various chains of big retail outlets have supported the creation and the functioning of food banks in the country. One, Éxito Stores, has vari- DIVERSITY IN NEEDS AND ous health and nutrition programs: donations; al- liances with state, community, and civil society or- PROBLEMS CONFRONTED ganizations; and a monetary prize for nutritional intervention and research towards improving the It is also noteworthy to consider the di- nutrition of pregnant women, children and adoles- versity of fronts in which social initiatives have been cents throughout the country. Another example, a

73 ACHIEVEMENTS AND CHALLENGES OF CSR voluntary program since 2000 called “Alpina is All the Corona Foundation supported the first applica- of Us” facilitates the donation in time, money and tion of the Impact Evaluation System of Service Sup- knowledge of its employees to nonprofit organiza- port to Micro-Enterprises in 1997. This evaluation tions chosen by the company. Thirty organizations system and the debate about the development of in nutrition and education have received support the field contributed to the improvement of public from this program. policies oriented towards the micro and small-en- terprise sector. Since 1967, the Antonio Restrepo Barco Foundation has been dedicated to the promotion The National Development Report of of social development and fundamental rights, es- UNDP for Colombia signals “the role of the business pecially children’s rights. In association with ICBF, sector in armed conflict resolution and the construc- UNICEF and FES Foundation, the Program for Self- tion of lasting peace” (INDH 2003, p. 499). The Evaluation, Capacity Building and Quality Standards Ideas for Peace Foundation emerged in 1999 be- has worked with nearly 400 nonprofits dedicated to cause of the concern of a group of business people child protection since the 1990s. In 1998 the Foun- for the serious situation of the country and the lack dation was instrumental in the creation of the Na- of consciousness, knowledge and information about tional Network for the Protection of the Child, with peace issues in society. The foundation has docu- 15 regional networks and 225 member organiza- mented regional cases of peace and development, tions, to do advocacy, improve training and service, systematized the information about the peace pro- and disseminate strategies in social action in child cess in Colombia, observed international processes, advocacy under the Convention of the Rights of the and helped construct a post-conflict plan. Child. At the national level, the private sector has In the area of housing, the work of Com- participated in experiences such as the Corporación partir is interesting. For almost three decades the Excelencia en la Justicia (Corporation for Excellence company and its foundation have developed pro- in Justice). At the local level, a group of business grams in housing and public space applying the people created the Business Corporation of Itagüí in abilities and experience of the former and combin- 1988. In alliance with the High Courts of Medellín, ing it with the knowledge of the foundation about the judges of Itagüí, the Muncipal Mayor’s office and low income communities. the FES Foundation, they created the Program for the Modernization and Systematization of Courts in In the area of micro-enterprises, the Itagüí. The evaluations of the programs have demon- Carvajal Foundation has spent a quarter of a centu- strated significant rates of decongestion, an increase ry creating and developing service models for small in productivity, and greater confidence and credibil- businesses at the regional and national levels, ben- ity among the community in the justice system. efiting 60,000 small and mid-sized entrepreneurs through training, work adaptation and manage- Transparency for Colombia, consisting of ment indicators. The Mario Santo Domingo Foun- 30 organizations, the majority of them businesses, dation, meanwhile, was recognized for its service to is a chapter of Transparency International estab- entrepreneurial development and as the entity with lished in 1998. Its program Businesses Against Brib- the best record of granting credit of any non-finan- ery includes elements such as the “Integrity Pact”, a cial agency in 2004. Among other business founda- voluntary agreement to adhere to transparency in tions that promote micro-enterprises in Colombia, bidding for public resources. Other programs, such

74 ACHIEVEMENTS AND CHALLENGES OF CSR as the Integral Ethics for the Integrity and Transpar- Colombian Chapter of the World Business Coun- ency of Small and Mid-Size Companies, are cen- cil for Sustainable Development, created in 1993, tered on other business sectors. Among the busi- is made up of 25 businesses and 3 trade associa- nesses that has most supported Transparency is the tions, representing more than 4% of the GDP with oil company Hocol, which has sought in different more than 400,000 direct and indirect jobs and the ways to strengthen the capacity of local state orga- export of more than 1.6 billion dollars a year. Its nizations and citizen’s control over them. It created, members share a commitment to the environment in alliance with other organizations, the School and to principles of economic growth with sustain- for Democracy and Local Development in the city able development. of Neiva and the Rural School for Community and Citizen Participation. In the area of accountability These examples demonstrate the diver- and oversight, the Corona Foundation has promot- sity of the contributions of the private sector in two ed a series of programs for public education and dimensions: the diversity of stakeholders to which control of public administrations and in topics like these social initiatives are targeted and the different education (‘Education, commitment of all’) and areas in which there is consolidated work. The man- health (‘Our record in health’). Besides its support ner of structuring these initiatives is also diverse. for grassroot organizations in different parts of Co- lombia, a project like ‘How are we doing, Bogota’ is being adapted to other cities. This project oversees DIVERSITY AND INNOVATION IN THE changes in the quality of life of citizens generated by policies, programs and development projects by STRUCTURING OF SOCIAL INTERVENTIONS local governments. Investment trends of Colombian busi- Donations from businesses to the arts are nesses are similar to those in other countries. After combined with other social initiatives. For example, a philanthropy characterized by disperse initiatives Natural Gas supports specific cultural events while, and distant relationships, the predominant social in its own operation, it seeks to lower the barri- investment of today is focused on groups that are ers of access to its services among less privileged external to the company. This could be denominat- populations by giving credit for the installation ed the step from charity to social investment. There of lines. A company like Suramericana Insurance are those who have taken another step towards in- maintains an art gallery and grants donations for tegrating the social and economic realms. A small social events that favor environmental preservation, number of businesses sustain, as the theory of Por- community development, health and education ter and Kramer (2002) suggests, that philanthropy through its foundation. And as one more way to must be strategic for the business because in this support the arts, many companies have sponsored way, by using the abilities and expertise of the busi- the IberoAmerican Theater Festival for the past two ness, the greatest economic and social value can be decades. generated. Before looking at the strategic philan- thropy of these businesses, we will summarize the Finally, in the area of the environment, a distinct kinds of social investments by Colombian company like Acesco has various programs for the businesses. rational and efficient use of water, the reduction or elimination of industrial waste, and for reuse of Social investment by businesses, even heat sources in industrial processes. Cecodes, the when it does not have a direct relationship with its

75 ACHIEVEMENTS AND CHALLENGES OF CSR operation, can generate indirect benefits: among • Use profits for a social purpose (i.e. foundations others, in its external image, and in a sense of com- that own businesses); mitment and belonging of employees. In Colombia • Develop a sector (i.e. mixed corporations in edu- there are at least four different models of business cation, health, justice, among others); engagement: • Develop an activity (i.e. mixed corporations that promote entrepreneurship or research in a spe- 1) Some decide to create their own programs with- cific area); and, in the business; • Promote an intervention model (i.e. organiza- 2) Others create a separate organization (founda- tions with a purpose such as to combat corrup- tion, corporation or association) or to support a tion or seek peace). previously existing nonprofit; 3) Some participate in social programs led by their There are several differences among the trade associations; and nonprofits that pursue these objectives. The first 4) Others participate in current government pro- two types of organizations, business foundations grams. and foundations with businesses, share a close re- lationship with a particular company, and the range It is easy to identify a given business’ pro- of activities tends to be broader and less focalized. gram, their participation in governmental programs The other three kinds of organizations are charac- or their interventions in a trade association. For terized by the type of social action that they carry example, a merging of the private sector with the out and their specialization increases the potential development plans of the mayoral offices in prin- impact of their social intervention. cipal cities has increased, as in the case of Bogota7 and government programs such as the “Regional The kinds of organizations that have been Programs for Development and Peace” (14 regional created have evolved too. The first two types are de- initiatives that have a presence in more than 350 cades old; the majority of these organizations emerged cities and 23 departments throughout the country during the 1960s. Then, in the 90s around a dozen where the highest levels of conflict exist).8 mixed corporations were created. In some of these It is more difficult to identify those busi- cases, a handful of business foundations worked with ness efforts that are channeled through nonprofit the Department of National Planning (DNP) to con- organizations. There is a diversity of nonprofits, cre- vince business people about the benefits of creating ated or supported by the private sector, that serve mixed corporations. In time, the participation of these different purposes: business people became increasingly limited to certain forums, such as the board of directors, and several • Channel business philanthropy (i.e. business mixed corporations have encountered economic dif- foundations); ficulties. In 2002 an organization that approached

7 “Empresarios le apuestan a Bogota” El Tiempo, June 10, 2004, p. 1-2.

8 According to Alexandra Guáqueta, “these are long-term programs, developed in several towns at a time, that usually work in six areas: productive processes; sustainable environmental management; institutional and civil society strengthening; life, peace and justice; culture and knowledge; and education, health and housing. Due to the scope of these programs, they have multiple sources of funds, especially international funds.” (2004, p. 11).

76 ACHIEVEMENTS AND CHALLENGES OF CSR these two issues in a different way emerged: the Fun- of a dependency on their financial resources. This dación Empresarios por la Educación (Foundation of gap has limited the power to convene participation Business People for Education). With a regional focus and to apply several of the competencies businesses it seeks the active participation of entrepreneurs in have in various social endeavors. different local projects and it has a minimal opera- tional structure (within two years, three professionals Among the areas of support where there coordinate the activities of a dozen regional chapters). are many years of experience is the strengthening of Permanent business participation and low operational educational projects and the development of produc- costs are the characteristics of this new proposal in tive projects. Projects in health and nutrition, environ- the field of Colombian social responsibility. ment, housing, culture, transparency and institution building, peace and justice are more recent. For ex- One of the consequences of being inde- ample, similar to the United Way model, the founda- pendent for nonprofits supported by the private tion Dividend for Colombia convenes more that 70 sector is diversification in their sources of finance. Colombian businesses and more than 7,500 employ- At first these organizations were largely depen- ees. During 2003 Dividend acquired the support of dent on the resources of businesses, but today their businesses and employees and donated $1.5 billion income includes important sums from the sale of to improve the quality of education of poor children. services and resources from international coopera- The value of each donation is defined by each worker tion. The gap that has emerged between nonprofits and is discounted monthly from his or her paycheck. and businesses is associated with a decline in the Generally, the company gives a donation equal to the identification of businesses with programs and less combined donations of its employees.

SOME INTERVENTIONS OF THE PRIVATE SECTOR FOR EDUCATION

• 417 schools supported by 98 businesses implement a model of quality management. • Improvements in school management promoted by the private sector effect the education of 40,000 low income children. • 12 regional business groups comprise “advisory committees to the secretaries of education” and promote projects in 10 departments. • 100 educators in 25 schools in peripheral localities of Bogota receive training in Information and Communication Technologies. • 150,000 participants in rural and urban sectors of 29 departments in Colombia are attended to in a successful literacy program. • Training in care for the environment and hydrocarbons for communities in 21 cities with 200 outlying rural areas in 3 departments. • 500 community leaders receive diplomas in democracy and local development. • A prize for quality and excellence in education is given in Bogota. • The monetary support from the Colombian private sector accounts for a greater percent- age, within the investment budget for the Ministry of Education (97 billion in 2004), than the 1% that businesses contribute to public spending in education in the United States.

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Within this diverse panorama of social Some companies in Colombia have man- investment by businesses, some have decided to aged to integrate their social strategy with their integrate social strategies in their business. While business strategy. In those cases, the company man- the social issues that companies are able to link to ages to generate social and economic value with its their particular business are limited, they are able to social intervention. This not only increases the prob- deepen their impact when they do so. ability that interventions continue, but also provides experiences and logistics which are difficult to du- plicate in any other way. An integrated social ini- tiative has many distinct characteristics from those STRATEGIC PHILANTHROPY: initiatives that are detached from the business, and INITIATIVES THAT GENERATE they have a greater potential impact because of the synergy between the economic and social realms SOCIAL AND ECONOMIC VALUE (Gutiérrez and Jones 2004).

SIMULTANEOUSLY The diversity of interventions in the CSR panorama in Colombia raises the question of the po- There are a variety of efforts which pro- tential of increasing impacts by establishing channels mote strategic philanthropy and examine how of association and synergy among initiatives. In other to increase their social impact while at the same words, how can we take advantage of the “many time generate economic return. This topic occu- steps in different directions.” One hypothesis is that pies a place in the business agenda. During 2004, CSR in Colombia could contribute more to the devel- fifty-four companies signed the Global Compact opment of the country when the programs which are in Colombia. Furthermore, more than 170 busi- today carried out in an isolated manner are supported ness people have gathered to formulate common by public-private cooperation (community, company, agendas for social responsibility in their sectors and government, NGO, university, international coopera- regions. While social investment is recognized, stra- tion). Two programs have looked at the potential of tegic philanthropy occupies a special place in these alliances between the private and public sectors with collective efforts. The work encompasses the sec- the social sector in Colombia: The Program on Social tor of big retail outlets, credit establishments, and Initiatives of the University of Los Andes and the Na- businesses in the Caribbean and Valle del Cauca tional Alliance Program of the Corona Foundation, regions. the World Bank and eight regional universities.

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IV.

COLOMBIA IN THE LATIN AMERICAN CONTEXT

During the last decade, the majority of resources for “new philanthropy” have come from the business sector. A survey in Argentina, Brazil, Chile, Peru and Colombia shows that between 80% and 95% of large corporations practice some type of direct philan- thropy, including financial or in-kind donations, volunteer programs among employees and the direct op- eration of social programs (Sanborn 2000). Studies in Brazil, Chile, Peru, Colombia, Ecuador and Mexico also reveal that companies and business leaders are the principal promoters of new foundations in the region (Teixidó, Chávarri and Riedemann 2001; Portocarrero, Sanborn, Llusera and Quea 2000; Turitz and Winder 2003).

In comparison with other Latin American countries, Colombian companies support or develop a wide range of social interventions. Colombia stands out in Latin America for the tradition and importance given to company foundations and for the growing presence of direct company actions. While in other countries social responsibility is a new topic for about half of all companies or is often only given importance by multinationals (Latin Trade 2005), in Colombia the biggest industrial association has promoted social statements and reports since the 1970s and it is the national companies that stand out for their innovation and impact.

Nonprofit organizations supported by companies have also worked for decades with financing from international donors. Besides the financial support, the relationship with these donors has been char- acterized by accountability and an integrated approach to development by the Colombian organizations (beyond resolving specific problems in education, health, housing, nutrition, etc.). This level of sophistica- tion has led nonprofits to influence the definition of the State’s social policy in the areas of education, health, child protection and community development.

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It is important to point out that there is no three characteristics: i) private and nonprofit; ii) le- single definition of what constitutes a “foundation” gally autonomous; and, iii) dedicated to social ends in Latin America and this makes it difficult to collect through specific programs and/or through third comparative statistics. The legal framework of each party donations. The compilation of existing data in country varies in its definition and regulation of this seven countries (Argentina, Brazil, Chile, Colombia, sector; furthermore, hundreds of organizations are Ecuador, Peru and Mexico) register 318 foundations incorporated each year with this title and they do that meet these criteria, the majority created dur- not differ between for- or non-profit organizations ing the 1990s with company resources and with a which depend on companies, churches, or political lay orientation (Sanborn and Portocarrero 2003, p. groups in their financing and decision making. A 17). Table 3 includes some data from this and from basic delineation includes foundations that have other research.

TABLE 3: COMPARATIVE CHARACTERISTICS OF CSR IN LATIN AMERICA*

Chile: 42 foundations Acción RSE (www.accionrse.cl) was created in May 2000 and is the business organization of- ficially connected to Business for Social Responsibility (BSR). Prohumana (www.prohumana. cl) is dedicated to CSR with the ability to make the topic visible, to conduct research, and to hold events with other actors.

Peru: 60 foundations Peru 2021 (www.peru2021.org) was created in 1994 by 54 business people with the objective of developing a shared vision about the country’s future. With this vision it has promoted CSR through different means: an annual award, by promoting social reporting among busi- nesses, and by holding different events in various regions in the country.

Argentina: 50 foundations Since 2002, the Argentinean Institute for Business Responsibility (www.iarse.org) has pro- moted the concept of socially responsible practices and given impetus to substantial develop- ment of businesses through information networks and mutual collaboration. The Foundation Group of Argentina, GDF (www.gdf.org.ar,) formalized in 2001, promotes the culture of philanthropy and social responsibility.

Colombia: 111 foundations There are various experiences of joint efforts between foundations and companies (such as the National Program of Micro-Enterprises, Business People for Education), but there is no single organization created by the business sector dedicated to the promotion of CSR like there is in other countries such as Brazil, Argentina, Chile or Peru. There are a number of university initiatives that promote greater synergy among multiple actors who work in CSR and organizations originating in the social sector that promote and consult in the topic, such as the Colombian Center for Business Responsibility, CCRE (www.ccre.org.co).

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Mexico: 74 foundations The Mexican Center for Philanthropy, CEMEFI (www.cemefi.org) was the first of its kind, created in 1988 to promote a philanthropic culture, civic participation and sustainability of the nonprofit sector among individuals, foundations and businesses. ALIARSE is another ini- tiative, created in 2000, coordinated by the Mexican Corporation of Businesses (Coparmex) which has the objective of promoting CSR.

Uruguay: (no data) At the beginning of 2000 the DERES (www.deres.org.uy,) was formed with the vision to develop the concept of CSR at the top management level. The initiative was born from a group of businesses with the support of the Catholic University of Uruguay, which began to explore the possibilities of an initiative which could organically develop the concept of CSR in the country.

Brazil: 55 foundations The ETHOS Institute (www.ethos.org.br) is a center of reference in the region. Created in 1998, it has more than 800 affiliates today and offers diverse services to support companies and to share practices in CSR. Institute, Foundations and Business Group, GIFE (www.gife. org.br) was born in 1995 and seeks solutions to overcoming social inequalities with the stra- tegic objective of influencing public policy.

* The data in this table are estimations of the number of private and legally autonomous foundations in each country. In Argentina the estimation was made from 2003 data bases from the Foundations Group and the Third Sector Group. The data for Brazil correspond to the private and autonomous foundations and institutions affiliated with GIFE.

The manifestations of south-south coop- • Forum EMPRESA- www.empresa.org is a eration among Latin American countries show a hemispheric alliance of business organizations regional process of greater synergy and coherence which, since 2000 with impetus from Business in CSR. This can be seen in the following two net- for Social Responsibility, works to promote CSR works: in countries or regions of the Americas. One if its projects, for example, is headed by Business • The Inter-American Network of Foundations and Action of Chile and has the participation of FUN- Business Actions for Basic Development-RedEA- DEMAS of El Salvador, Peru 2021 and the Ethos mérica- www.redeamerica.org is a thematic net- Institute of Brazil. Over a 36 month period and work of the private sector (foundations, associa- with US$ 1.1 million from the IDB, the OAS and tions of foundations and companies), with im- CIDA, the project hopes to sensitize the busi- petus from the Inter-American Foundation and ness community to CSR and to form consultants geared to the promotion and support of grass- who demonstrate its benefits in pilot groups of roots development and shared responsibility in small and medium size companies, to develop financing. The Network was formed in Septem- national networks and to implement a regional ber of 2002 and two years later has 53 members communications network around the topic. from 12 countries, among which Colombia has been a visible leader, both in organization and in Six business foundations participate in research. RedEAmérica and one civil society organization

81 ACHIEVEMENTS AND CHALLENGES OF CSR participates in the Forum Empresa for Colombia. In tradition and noteworthy practices in the foundation neither case is there direct participation of Colom- world, with precarious institutional promotion and bian companies. Their participation is channeled, in research, explains the lack of studies and publications the case of RedEAmérica, through its foundations. which cover the topic nationally, as well as the lack of diffusion of tools and good practices which influence As previously mentioned, some social in- participation by new businesses. While there are uni- terventions are exemplary for their innovative struc- versity initiatives that promote greater complemen- ture, for their management quality or for their re- tarities among different actors working around CSR, sults. Nevertheless, in spite of the active presence of and organizations created from the social sector that foundations in national life and the importance of promote and advise in the topic, Colombia needs an direct interventions of various companies, the efforts umbrella organization -with impulse from the busi- in Colombia to institutionalize coordination, pro- ness sector- to promote CSR. It would be possible to motion, diffusion and research of corporate philan- exploit the diverse experiences of other Latin Ameri- thropy and corporate social responsibility are precari- can countries that, while they have less of a tradition ous. There are no organizations in the country that of CSR than Colombia, have advanced in the last few coordinate the work of foundations or institutions years in the creation of organizations that take lead- headed by business leaders for the promotion of CSR ership in the social engagement of the business sec- like there are in Brazil, Argentina, Chile, Mexico, Peru tor. Direct participation of business people has made or Guatemala. Perhaps this double condition of a significant difference.

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V.

CSR CHALLENGES IN COLOMBIA

In a society with great amount of needs and social inequali- ties, one cannot afford to ignore the resources available in organizations. An ideal evaluation of the role of businesses in Colombia includes specification of outputs -which products or services that the business sec- tor offers-, outcomes -what are the results perceived by clients, and what are the social impacts generated. The majority of reports that we found are limited to quantifying the products or services offered (such as how many workshops were offered to a given number of micro entrepreneurs). Few are the reports about the actions of clients (the micro entrepreneur in the example given), how their practices are modified after training and what impact these changes generate.

Amidst the dimension of scarcity which we face, the principal challenge of CSR is to strategically invest resources to generate the greatest social and economic value possible. It is fundamental to comple- ment individual efforts with collective contributions. When one company invests, the people involved must revise the social dimension of the business operation in order to look for the greatest synergy and to ad- equately measure the impacts. Collectively, it’s necessary to look for coherence between particular efforts and the interaction of the public sector in order to improve the living conditions of the population. For this reason it is important to make a clear agenda. Our research reveals some challenges that must be faced in an agenda that seeks to deepen CSR in Colombia:

1. DESIGN A GROUP OF INSTITUTIONS AND APPROPRIATE TOOLS FOR RESEARCH, DISSEMINATION AND CONSULTING IN CSR a. To create and strengthen institutions of research, promotion, coordination, consulting and dissemi- nation of CSR in Colombia so that the learning curve is accelerated for companies that develop

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programs relevant in this field. Different types 2. DEFINE PLANS AND SOCIAL of institutions including associations of business foundations, centers that promote CSR, univer- PROGRAMS BY SECTOR AND sities and communications media, could work BY THEME TO ADVANCE CSR complementarily in these areas. Business lead- ership is fundamental to give impetus for this institutionalization; it guarantees its relevance In order to define a horizon of CSR in Co- and acceptance in the business community. As lombia it is necessary, among other things, to create mentioned in the previous section, there are base lines. The diversity of CSR actions in Colombia examples of organizations that effectively pro- is noteworthy, but knowledge and visibility of these mote CSR in Latin America. experiences is insufficient. For this reason the prob- ability of articulating and expanding on current so- b. To develop a package of incentives which pro- cial initiatives is low. Furthermore, there is a waste of mote the following: potential of these experiences as catalyzers for other initiatives or for university research and training. The • Government: support the development of following, among other steps, are necessary: CSR programs, tax incentives, public recog- nition (contests, for example) and training a. To create sector base lines (for example, the fi- campaigns for responsible consumers. nancial sector, industrial sector, large-scale retail • Communications Media: free visibility for outlets, communications media, hydrocarbons, socially responsible businesses and forma- and agricultural sectors such as palm oil, rice, tion of responsible consumers. etc). What does it mean to be socially respon- • Civil Society Organizations: the possibility sible in a given sector? to form alliances with business, promote re- sponsible consumerism, and support the dif- b. To create thematic base lines (for example, educa- fusion of the Technical Guide to CSR brought tion, nutrition, productive projects, micro credits, together, since 2003, by the Colombian In- health, housing, peace and transparency). What stitute of Technical Norms and Certification does it mean to be socially responsible in a given (ICONTEC). theme?

• Universities: programs in CSR which look Currently, there is a series of sector and closely at Colombian cases, and train stu- regional workshops in CSR being held with the par- dents as current consumers and future so- ticipation of the First Lady and professionals of public cially responsible professionals. ministries, with the support of universities in research c. To develop dynamic tools on Internet to cen- and follow-up. These are the points of encounter to tralize information about CSR activities so that generate commitments among the most prominent companies present their own information and business people. They could also contribute to join so that there is follow-up in their social initia- efforts around a mega objective with large-scale so- tives. This tool (www.mapearse.net) is very use- cial impact. For example, in the area of nutrition a ful to companies to define sector and thematic program such as Bogota Without Hunger could cata- plans, for the definition of criteria for incentives lyze the energies of large-scale retail outlets, the food and to support the formation of responsible bank of the Archdiocese of Bogota and nonprofits. consumers. Or, an education program has greater probability of

84 ACHIEVEMENTS AND CHALLENGES OF CSR success when the business sector considers it impor- highlights the practices from which lessons can be tant to participate and when there is previous experi- taken. The business community, trade associations, ences that can be built upon. government, civil society organizations, universities and international development agencies must all The body of studies by sector and theme, participate in these studies, in work plans and in both qualitative and quantitative, include docu- programs. Public-private cooperation in consensual mentation which allows one to appreciate the programs is the best way to attract the needed sup- advances and impact of CSR in development and port of international organizations.

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EPILOGUE

If there were a group united by a proposal that goes beyond party interests, business groups’ interests, religious orders or ideological orienta- tions, a group of human beings, only human beings, united by their value of being men and women, it would be possible for the light to shine through the darkness and to witness peace. This is what Colombia is calling out for. This fragile and passionate peace, which is supreme yet has been nervously extinguished, could be woven by all who participate in a society constructed from the limits, interests, proposals and feelings of all those who reject the idea of Colombia living in pain and despair.

Francisco de Roux, Jesuit Priest

This study began with the question of what is the contribution of the private sector in the construction of a more equitable and peaceful society in Colombia. Without the appropriate conditions, companies cannot operate efficiently. “There are no healthy companies in an ill society.” Social interventions of business, in some cases risk man- agement strategies and at other times strategies to develop competitive advantages, help to transform the arena in which they operate. This has occurred in Colombia in

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various sectors and in different regions. The protagonists of these stories are busi- nesses, nonprofits, government entities and communities.

There are abundant examples even if we only look at the private sector: businesses that invest in isolated areas, businesses that direct their products or services to less favored populations, or companies that believe that they can contribute to the com- munities they interact with and do so through programs in which many others par- ticipate. Nevertheless, much remains to be done. There need to be many more cross- sector alliances; there needs to be greater support from more companies, even small ones; and there is a need for documentation and impact evaluation of programs in course. Our transformations depend on the advance of each of these.

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BIBLIOGRAPHY

ANDI. “ANDI 50 años, 1944- 1954”. Medellín: Fun- view of Its Characteristics and Effects on Local dación Antioqueña para los Estudios Sociales Communities”. In: Contreras, Manuel (comp.), Cor- (FAES), 1994. porate Social Responsibility in Latin America and Asia. Washington: Inter-American Development Arango, Luz Gabriela. “Mujer, religión e industria: Bank, 2004. Fabricato 1923-1982”. Medellín. Universidad de An- tioquia - Universidad Externado de Colombia. 1991. Guzmán, Juan Darío. “Responsabilidad Social en Medianas y Pequeñas Empresas en Colombia”. Barrera, Ana María. “La responsabilidad social de la Bogota: Cuadernos de Administración Nº 21, Fa- gerencia”. Bogota: Monografías de Administración cultad de Ciencias Económicas y Administrativas, Nº 54, Universidad de los Andes, July 2002. Pontificia Universidad Javeriana, 1998.

Escobar, Natalia, Jiménez, Alejandra and Gutiérrez, INDH (Informe Nacional de Desarrollo Humano para Roberto. “Responsabilidad social de las empresas Colombia) 2003. “El conflicto, callejón con salida”. en la Costa Caribe.” Bogota: Fundación Corona, Bogota: Editorial El Malpensante S.A., 2003. 2005.

IFC (International Finance Corporation), http://rru. El Tiempo. “Los grandes costos de la pobreza”. Sun- worldbank.org/doingbusiness/ Access on Novem- day August 8, 2004, p. 1-8. ber 18, 2004.

Fundación Corona. “40 años Fundación Corona”. The World Conservation Union (IUCN) 1996. “The Con- Bogota: Fundación Corona, 2004. servation Atlas of tropical forests: the Americas.” C.S. Harcourt y J.A. Sayer (eds.). Simon & Schuster, González, Andrés. “Expresiones de Responsabilidad New York. http://www.areas-protegidas.org/colom- Social del Sector Empresarial Colombiano: Una bia_deforestacion.php. Access on June 3, 2005 mirada general”. Bogota: unpublished document, November 27, 2003. Latin Trade. “Ayudando al prójimo”. http://www. Guáqueta, Alexandra. “El papel del sector privado latintrade.com/dynamic/index.php?pg=site_es/ en la prevención del conflicto y la construcción de pastissues/May05/features2.html. Access on May paz en Colombia: lecciones y desafíos”. Bogota: 27, 2005. Fundación Ideas para la Paz, 2004. Laverde, María Teresa. “Inventario de las acciones Gutiérrez, Roberto and Jones, Audra. “Corporate sociales del empresariado del Valle del Cauca”. Social Responsibility in Latin America: An Over- Cali: unpublished document, 2005.

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Mercados PYME 2004. “ANIF 30 años”. August 10, Change in the Americas. Boston: Harvard Univer- 2004. sity DRCLAS, 2003.

Portafolio. “Especial: Cajas de Compensación”. Sanborn, Cynthia and Portocarrero, Felipe. “La filan- Wednesday June 30, 2004, pp. 25-29. tropía en América Latina: los desafíos de las fun- daciones donantes en la construcción de capital Porter, Michael E. and Kramer, Mark R. “The Com- humano y justicia social”. Lima: Departamento de petitive Advantage of Corporate Philanthropy”. Ciencias Sociales y Políticas Centro de Investigación Harvard Business Review, December 2002. de la Universidad del Pacífico (CIUP), 2003.

Potes, Luis Fernando. “Los Ricos en Megadiver- Toro, Olga Lucía and Rey, Germán. “Empresa Privada sidad”. Palmira, Colombia. Universidad del Valle, y Responsabilidad Social”. Bogota: Utópica Edicio- 1999. nes, 1996.

Toro, Olga Lucía. “Rentabilidad empresarial y re- Revista ANDI. “Responsabilidad Social del Empre- sponsabilidad social: de la teoría a la práctica”. sariado. Reflexiones de la ANDI”. Nº 175, March- Bogota: Centro Colombiano de Filantropía, 1997. April 2002.

Toro, Olga Lucía and Hoyos, Juan Pablo. “Liderazgo Revista Dinero. “La responsabilidad social”. Bogota, y responsabilidad social: retos y alternativas en la January 24, 2003. Colombia de hoy”. Bogota: Centro Colombiano de Filantropía, 1998. Rojas, Cristina and Morales, Gustavo. “Filantropía y

Cambio Social: El Caso de las Fundaciones Empre- Unidad de Conocimiento. “Responsabilidad Social sariales Filantrópicas en Colombia”. Ford Founda- Empresarial: Grupo Empresarial Antioqueño”. Me- tion, CCRP, 1999. dellín: unpublished document, 2003.

Rojas, María Cristina. “Corporate Philanthropy: A Villar, Rodrigo, List, Regina and Salomon, Lester. Reflection Based on the Colombian Experience”. “Colombia: un sector no lucrativo diverso”. In: “La Harvard Review of Latin America, Spring 2002, pp. Sociedad Civil Global, las dimensiones del sector 27-29. no lucrativo”. Baltimore: Johns Hopkins Univer- sity, 1999. Rojas, María Cristina. “Private Contributions to the Public Sphere: Corporate Foundations in Colom- Villegas, Luis Carlos. “LX Asamblea General de Afili- bia”. In: Sanborn, Cynthia, Villar, Rodrigo and Por- ados de la ANDI”. Medellín: unpublished docu- tocarrero, Felipe (eds.), Philanthropy and Social ment, 2004.

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ANNEXES

ANNEX 1. ABUNDANCE AND SCARCITY IN COLOMBIA

ABUNDANCE SCARCITY

• An ethnically diverse population of 44,299,301 in- • The levels of inequality are tremendous: 40% of digenous, blacks, whites, mixed blood (European- the population has no access to health services, 10% and Afro-indigenous) people occupy the country- of poor children do not go to primary school, be- side and 22 cities of more than 100,000 residents, tween 8 and 12 million Colombians are indigent, in a territory the size of Spain, France and Portugal only 20% of young people can get into the univer- combined. sity (El Tiempo 2004, pp. 1-8). • The Human Development Report (2003) high- • The number of cities annually affected by violent lights “five local and regional experiences of collec- acts from different actors has grown from 61 in 1985 tive action against violence” which demonstrate, to 444 in 2002 in the case of the FARC (Revolution- among many other things, that the current “peace ary Armed Forces of Colombia), from 34 to 156 in and development programs” of the government the case of the ELN (National Liberation Army), and and supported by the business sector and interna- from 74 to 104 in the case of paramilitary groups OCIAL

S tional cooperation can generate peace. (INDH 2003, p. 53). • The ICBF and nearly 400 nonprofits work under • There were 23,096 homicides in 1998 and 28,780 the guiding perspective of the rights of the child. in 2002 (INDH 2003, p. 105). • Colombia is fourth among countries with the • Between 2000 and 2002 there were 964,904 dis- highest level of investment in health as a percent- placed people, corresponding to 207,837 homes age of its GDP. (INDH 2003, p. 122). • A considerable part of the income of the Third • Between 2000 and 2002 there were 3,076; 3,041 Sector (15%) is direct contributions of individuals, and 2,988 kidnappings, respectively (INDH 2003, p. private businesses and company foundations. This 286). figure is higher than the average in Latin America • Between 1999 and 2002, 59; 115; 164 and 114 (10,4%), United States (12,8%), Western Europe trade union leaders per year lost their lives (INDH (7,2%) and Japan (2,6%)” (Villar et al. 1999). 2003, p. 128).

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ABUNDANCE SCARCITY

• In biological terms, Colombia is one of the rich- • The results of a FAO study report 366,600 hectares/ est countries on the planet. The quantity and con- per year of deforestation between 1981 and 1990, centration of endemic species are unequaled and a rate comparable to one established by INDERENA its biological wealth is surpassed only by Brazil, a for the years 1992 to 1996 (corresponding to an an- country 7 times the size of Colombia. The variety of nual rate of 0.7%) (IUCN 1996). ecosystems is such that 10% of all species on earth is • Colombia is the primary producer of coca: in 2002 estimated to live in Colombia (Potes, 1999). there were 102,000 hectares cultivated, compared to • Since 1993 Colombia created the Ministry of the 46,7000 hectares in Peru and 24,400 in Bolivia (INDH Environment which has been issued instruments 2003, p. 311). and systems for environmental conservation. • Because of the attacks of guerilla groups, oil spills NVIRONMENTAL• Some large-scale retailers in Colombia are sup- in Colombia add up to close to 7.6 times that of the E porting indigenous communities in outlying re- worst single oil spill in the world near Alaska in 1989. gions in the commercialization of products which In 2003 alone there were 753 attacks against oil in- substitute for illicit crops, thereby supporting frastructure. the reduction of multiple environmental impacts • Colonial era writings document exuberant jungles brought on by the cultivation and chemical eradi- around Villa de Leyva, Candelaria, Tatacoa and Alto cation of these. Patía where there is now desert.

• Colombia is the second most important Latin Amer- • CEPAL affirms that Colombia is, after Venezuela, ican country in agricultural exports to the US, and is the country with highest rates of unemployment: the third in exports promotion among 59 of the most 15% (El Tiempo 2004, pp. 1-8). developed economies of the world. • According to World Bank and IDB studies, in 1991 • Colombia has a perfect record in debt repayment. 10% of the wealthiest earned 52 times more than • Foundations and cooperatives, with impetus from the poorest 10% of the population; in 2000, the Colombian businesses, have been internationally rec- wealthiest earned 78 times more income (El Tiempo ognized for their programs of business generation in 2004, pp. 1-8).

CONOMICSpoor urban and rural communities. • DANE calculates that 52% of the population live E • Including the tax reform of 1.5 billion pesos, yet in poverty (23 million) and the Contraloría General to be approved in 2004, Colombia would have a tax de la República estimates it to be 64% (28 million).* rate close to 20% of its GDP (a percentage similar to Colombia continues to have the same levels of pov- the US). erty as it did in the beginning of the 1990s (52%) (El Tiempo 2004, pp. 1-8). • Out of four million potential contributors, only 800,000 declare taxes.

* For The World Bank people who live on less than USD$1 a day are considered as indigent or as living in extreme poverty. Someone considered as poor earns between USD$1 or USD$2 per day.

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ANNEX 2. MANIFESTATIONS OF CSR IN COLOMBIA THROUGHOUT THE 20TH CENTURY

PERIOD MANIFESTATIONS OF CSR

1900 – 1960 • 1911: The Social Foundation is founded by a Spanish Jesuit Priest, Father José María Campoamor. • 1920s: Companies such as Fabricato stand out for the religious control held over female employees in semi-interned Catholic housing, as documented by Luz Gabriela Arango (1991) in her book, Mujer, religión e industria: Fabricato. 1923-1982. In other companies in the region of Antioquia, not just textile, as well as in the rest of the country where in- tense inequalities existed, entrepreneurs in early industry imposed paternalistic methods linked to religious faith on their workers. The cases of Coltejer [textile], coffee husking or Coltabaco [tobacco], to name just a few examples in which female employment was pre- dominant in the first phases of industrialization, illustrate the existence of tactics similar to those of Fabricato, albeit with slight variations. These business practices and labor responses were not exclusive to companies that employed primarily women. Industries that were “masculine” from the beginning, like Bavaria, also had paternalistic-clerical features.* • 1945: ANDI supports the construction of the Children’s Unit of the San Vicente de Paúl hospital in Medellín. • 1949: in the field of health, the most ambitious project of ANDI was the creation of the ANDI Hospital first supplied by the Hospital Pablo Tobón Uribe Foundation, an organiza- tion which took charge of the administration when it received the hospital by donation in 1957. • 1950: ANDI creates the ICETEX (Colombian Institute for Technical Specialization Abroad), with one of its most fervent promoters being the ex-Secretary General of ANDI, Gabriel Betancur Mejía.

* For more illustration visit: www.banrep.gov.co/blaavirtual/boleti5/bol27/mujeres.htm#en

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PERIOD MANIFESTATIONS OF CSR

• 1952: conscious of corporate social responsibility, the General Assembly of the ANDI es- tablishes the “ANDI Social Quota”, first in Barranquilla and later in Bogota, Cali and Medellín (1959). These private funds, with common utility and independent patrimony, collaborated in a variety of social initiatives. • 1957: the government creates the SENA (National Learning Service ), a proposal that had been promoted by ANDI and ACOPI since the beginning of the decade. Businesses with less than 20 employees and a determined minimum level of capital began to give 1% of the value of their monthly payroll. The government also created the System of Fam- ily Subsidy with a para-fiscal contribution of 4% of the payroll assigned to the Cajas de Compensacion Familiar (ANDI 1994).

1960 – 1970 • Tax legislation stimulates the creation of foundations by permitting donations to be tax deductible. The business foundations that emerged exist today and stand out for the quantity and quality of their interventions: namely, the Mario Santo Domingo Founda- tion (1960 in Barranquilla), Codesarrollo Foundation (1960 in Medellín), Carvajal Founda- tion (1961 in Cali), Santa Helena Foundation -today known as the Corona Foundation- (1963 in Medellín), Higher Education Foundation -FES- (1964 in Cali), Antonio Puerto Foundation (1964 in Boyacá). • At the end of the 1960s social responsibility begins to be studied by the academic com- munity when the University of Valle (where many important Colombian business people studied) starts a master’s program for top managers with a high technical level and a humanist emphasis.

1970 – 1980 • 1977: Fabricato and Enka carry out their first social reports. • 1977: Incolda and FES sponsor a study “Towards a New Commitment of Colombian Busi- ness People”. Over the next years these two organizations promote a variety of seminars and studies in the field. • 1979: ANDI develops a model of social reports in 1979 (taken from a French model) with the collaboration of entities that have previously developed their own models, such as Enka, Fabricato, Comfama and Finsocial (Barrera 1999, p. 52). 1980 – 1990 • 1985: ANDI, together with the ILO, elaborates the Guidelines for Social Reports in Colombia.

1990 – 2000 • 1991: fourteen trade organizations in Colombia are grouped together as the National Trade Council. These same trades, through the “Guaymaral Commitment” of June 1993, decide to reorganize and strengthen the actions of the Council with the mission of con- solidating their social function in different trade sectors of the country. In August, 1993, they gather to constitute the Business Foundation of Colombia. • 1991: when Economic Minister Rudolf Hommes proposes to increase sales tax to 16%, FENALCO channels the protests of merchants and the tax remains at 12%.

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PERIOD MANIFESTATIONS OF CSR

• 1992: founding of the Colombian Center for Philanthropy by the Social Foundation and the Inter-American Foundation. Its mission is to promote philanthropy in the country through social development projects with resources from the business sector. • 1995: Constanza Jaramillo and Juan Alejandro Ángel survey 131 businesses belonging to ANDI: of these 59% have a social report and 87% include policies that go beyond exclu- sively internal labor policies. (Toro and Rey 1996, pp. 62-63). • Throughout the decade the private sector gives impetus to the creation of corporations that are strategic to the development of certain sectors and themes: Corporación Cali- dad, Centro de Gestión Hospitalaria, Corporación Innovar, Corporación Mixta para el Desarrollo de la Educación, Consorcio para el Desarrollo Comunitario, Transparencia por Colombia, Corporación Excelencia en la Justicia and Fundación Ideas para la Paz.

2000 –2004 • 2001: creation of Compartamos con Colombia by more than a dozen consultant firms which seeks to strengthen nonprofit organizations. • 2001: participation of a Colombian university in the Social Enterprise Knowledge Net- work. • 2002: participation of six business foundations in the creation of RedEAmérica. • 2002: creation of Fundación Empresarios por la Educación by 76 businesses that build on the experience of mixed corporations in a variety of areas. • 2004: fifty-four companies join the national chapter of the UN Global Compact.

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96