Accepting Responsibility

Organizations operate under implicit social pacts. They have the right to make a profit in exchange for providing services to society. In some countries, companies are only expected to contribute economically. In South America, social expectations of organizations include social welfare.

Understanding needs

Although all South American countries have social welfare programs, basic needs are not met for many people. Estimates are that 60 percent of Bolivians, 50 percent of Peruvians, and 40 percent of Venezuelans live in poverty. The middle classes in Brazil and Chile have grown, but even in these emerging economies, many lead hard lives. Few people starve, but many are undernourished, uneducated, and unemployed.

Giving back to society

Besides paying taxes, making products, and causing people no harm, organizations in the region are expected to improve people’s lives. They should provide for their workers through food, transportation, and healthcare, and give back to the communities in which they operate through roads, meal programs, and education. Where governments cannot do enough, organizations are expected to provide assistance.

Reaping the benefits

PR benefits are among the most obvious reasons for community involvement in South America. Many companies display the logos of the charities and social projects they assist. These feature in company films, fliers, and news stories. They improve public perception of an organization. Employee morale and respect are additional benefits. Giving employees a chance to serve their community shifts their affiliation with the organization from purely financial to emotional as well.

Creative corporate social responsibility

• Health

  Door-to-door sales representatives give health tips during sales visits

• Nutrition

  Company cafeteria offers free meal program to local schools

• Resources

  End-of-spool yarn donated to local families to make baby sweaters

• Skills

  Company restaurant staff teach local restaurateurs catering skills