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Community Investment Programs Associated With Private Sector Infrastructure

Environmental and Social Unit Private Sector Department Inter-American Development Bank


The PRI Environmental and Social Guidelines are developed to assist in the management of environmental, social, health and safety, and labor aspects particularly related to private sector infrastructure and capital market investments in Latin America and the Caribbean. The guidelines do not necessarily reflect specific requirements for financing by the Inter-American Development Bank nor do they reflect the official position of the Bank.

February, 2006

Environmental and Social Unit Private Sector Department Inter-American Development Bank 1300 New York Ave., N.W. Washington, D.C. 20577 E-mail: PRISECTOR@iadb.org Fax: +1 (202) 312-4124 Web site: http://www.iadb.org/pri/


PRI Environmental and Social Guideline

ACKNOWLEDGEMENTS The Environmental and Social Unit (ESU) of the Inter-American Development Bank (IDB) Private Sector Department (PRI) developed this guideline. The guideline is part of the PRI Environmental and Social Guideline series, which is designed to assist in the management of environmental, social, health and safety, and labor aspects particularly related to private sector infrastructure and capital market investments in Latin America and the Caribbean. The principal authors of this guideline are (listed in alphabetical order): Hilary Hoagland-Grey, Robert H. Montgomery and Angelito Palma. Valuable input was provided by (listed in alphabetical order): Elizabeth Brito, Pablo Cardinale, Felix Filho, Ernesto Monter, and Emily Shelton. Editorial assistance was provided by Sheldon Annis. Typing and formatting assistance was provided by Aby Filomeno and Gabriela Calderon Motta. The PRI would like to express appreciation to the followings companies whom provided input to the case studies: TGS (Transportadora de Gas del Sur), Redesur, Termobahia, Geoenergia de Guanacaste and Grupo Guascor. Financial support for the development of this guideline was provided by the IDB Private Sector Department.


PRI Environmental and Social Guideline

TABLE OF CONTENTS Executive Summary.................................................................................................................................. i 1. Introduction...........................................................................................................................................................1 1.1 Background...............................................................................................................................................1 1.2 Purpose and Use of Guideline ..................................................................................................................2 2. Benefits to Investing in Communities ..................................................................................................................3 2.1 The Benefits of a Community Investment Program .................................................................................4 2.2 The Changing Culture of Modern Business .............................................................................................6 3. Developing and Implementing a Community Investment Program .....................................................................7 3.1 Establish the Framework for the Program ................................................................................................7 3.2 Design and Implement the Program .........................................................................................................9 3.3 Monitor, Assess, and Report the Program ..............................................................................................12 4. Kinds of Community Investment Programs .......................................................................................................13 4.1 Philanthropy ...........................................................................................................................................14 4.2 Employee Volunteerism .........................................................................................................................17 4.3 Partnerships ............................................................................................................................................18 4.4 Potential Program Activities...................................................................................................................19

References .............................................................................................................................................. 23 Annexes Annex A Annex B

Examples of Good Practices in Community Investment Programs Sources of Additional Information


PRI Environmental and Social Guideline

EXECUTIVE SUMMARY The private sector directly benefits national and local development through the provision of services and goods, employment generation, and economic growth. Community investment programs provide another way for private companies to expand their beneficial impact, in particular related to local communities. These programs are not a substitute for full compliance with in-country legal regulations and the fundamental premise that project companies must fully mitigate the negative environmental or social impacts associated with their activities. However, these “above and beyond investments” are an important aspect of a company’s corporate social responsibility, and they can be especially beneficial to the environmental, social, and economic sustainability of the communities in which companies are located. A community investment program can be the most visible part of company’s relationship with a community— and for the company, one of the most satisfying. While local communities clearly benefit, experience has demonstrated that companies too benefit from these programs—for example, through better community relations, increased ability to attract and retain employees, increased sales and customer loyalty, meeting investors’ expectations for responsible behavior, enhanced corporate image, and even improved financial performance. The process used for designing and implementing a community investment program is critical to determining its success. The approach is based upon company factors, such as the type of business, size, culture, and commitment of leadership, as well as community factors, such as local needs and availability of resources. The design process starts by establishing a framework for the program. This entails securing senior management support, creating a vision statement, and consulting stakeholders to understand community needs. The program then should be designed and implemented by defining the program, establishing a culture of involvement, building partnerships, promoting, and then implementing the program. Once launched, the community investment program needs to be monitored regularly and assessed systematically. Results needs to be fully reported to all concerned stakeholders (Section 3). Careful selection of specific areas of interest and activities is critical if a community investment program is to spur sustainable development and provide maximum social and environmental benefit to residents. Community investment programs can take the form of philanthropy or charitable donations, employee voluntarism, and partnerships with governmental agencies and nongovernmental organizations that provide specific social and environmental benefits to local residents. A company may wish to implement community programs outside its core business areas—for example, charitable donations to local organizations or support for capacity-building or infrastructure development in the areas of health, education, and poverty reduction. Alternatively, it may implement activities directly related to its core business. Large infrastructure projects in transportation, energy, water, and telecommunications provide many such opportunities for targeted, community investment (Section 4). This guideline was developed by the Private Sector Department (PRI) of the Inter-American Development Bank (IDB) to encourage and assist its project partners, as well as other private sector companies operating in Latin America and the Caribbean. By investment in local communities—that is, going beyond the minimal requirement to mitigate project-related negative social and environmental impacts—IDB’s private sector partners can be models for social responsibility and good corporate citizenship.

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PRI Environmental and Social Guideline

1.

INTRODUCTION

1.1

Background

Private sector participation in implementing infrastructure projects is an important part in Latin American and Caribbean sustainable economic development. Because the Inter-American Development Bank (IDB) supports this private sector participation and helps to finance some of these projects, IDB has an interest in ensuring that they fulfill the IDB mandate of sustainable economic development and poverty reduction, and in turn, social equity, health, education, and corporate environmental and social responsibility. Beyond merely mitigating negative project environmental and social impacts, the IDB Private Sector Department (PRI) encourages its private sector partners to maximize positive impacts (i.e., project benefits). This fundamental principle applies not only to project-specific benefits such as providing employment opportunities, new products and services, it can be extended to include community investment programs that enhance environmental and social benefits to communities in which projects are located. In programs of this sort, corporate philanthropy, volunteerism, and partnership programs generate additional benefits that address the community’s environmental, health, educational, and other social needs. These programs are a facet of a broader concept—corporate social responsibility. The private sector often undertakes infrastructure projects in remote, economically depressed areas that are underserved by government services. Company activities can have a profound impact on the social, environmental, and economic fabric of communities in these areas. On the other hand, social responsibility can present challenges that project companies are not equipped to deal with by themselves—for example, identifying development priorities, dealing with local politics, overcoming resident suspicions, conforming to public policy, and complying with government regulations. Solutions are most likely to be successful when there is close cooperation among government agencies, civil society organizations, educational, research, and development institutions. Such partnership solutions draw upon the complementary and distinct talents of a variety of organizations, a strategy that often increases the efficiency and sustainability of programs over the long term. The increased participation of the private sector in the delivery of services and development of infrastructure projects has opened new opportunities for companies to develop long-term relationships with the communities in which they operate. As their participation in these projects grows in importance, new opportunities emerge for building mutually beneficial relationships.

1.2

Purpose and Use of Guideline

Many private sector companies, including IDB private sector infrastructure partners, wish to do more that just mitigate negative social and environmental impacts. Many of them routinely implement environmental and social programs to benefit the communities in which they operate. The IDB recognizes that private sector companies wishing to do “more” may encounter unfamiliar challenges in developing and implementing community investment programs. This guideline was developed by the IDB Private Sector Department to encourage and assist private companies, in particular those involved in large infrastructure projects, to help maximize the benefits from investing in local communities. The guideline is intended to provide a general understanding on how to design and implement a community investment program to enhance local social and environmental conditions. The guideline is organized as follows. •

Benefits to Investing in Communities (Section 2). Summary of tangible benefits from embarking on a community investment program, and more generally from a policy of corporate social responsibility. 1


Community Investment Programs Associated with Private Sector Infrastructure • • • •

Developing and Implementing a Community Investment Program (Section 3). General discussion of the principles and approach to planning, implementation, and evaluation of community investment programs. Kinds of Community Investment Programs (Section 4). Different types of programs, including philanthropy, volunteerism, and partnerships. Concrete examples of actions that private sector infrastructure companies can take for the social and environmental benefit of local communities. Examples of Good Practices in Community Investment Programs (Annex A). Case studies on programs to support social, environmental, and economic sustainability of local communities, including programs developed by PRI project companies. Additional Information (Annex B). References to web-based information, including specialist organizations and institutions related to philanthropy, volunteerism, community partnerships, and corporate social responsibility networks. Methods for evaluating success of community investment programs.

These guidelines can be used at any stage in the development of a community investment program. For companies without programs, Section 2 can be used to help make the initial case. Section 3 may be useful throughout the process as it outlines the various steps that should be considered as a community investment program is developed and implemented. Section 4 can help define the types of programs that may be applicable to an individual company based on specific examples of components that promote sustainable communities. The IDB Private Sector Department is committed to helping its clients, as well as the private sector in general, enhance the environmental and social sustainability of the communities in Latin America and the Caribbean.

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PRI Environmental and Social Guideline

2.

BENEFITS TO INVESTING IN COMMUNITIES

Increasingly, companies are responding to the higher standards of responsibility to which they are being held by investors, consumers, employees, advocacy groups, government officials, and holding companies. These stakeholders are also demanding that businesses meet their social obligations and have a positive net impact on society. In turn, much of this effort proves beneficial to the companies and supports their business objectives. A growing body of research indicates that businesses benefit from conforming to codes of ethical conduct and active community involvement; and conversely, those that do not may find themselves at a competitive disadvantage. Corporate social responsibility (CSR), the general term referring to this movement, is becoming an important force in how companies operate. CSR has become engrained into many companies’ operations, as reflected by the rising number of staff dedicated to these issues. More importantly, managers of these companies are seeing the importance of CSR to their success. Corporate social responsibility can take many forms— from programs that increase environmental sustainability, improvements in worker conditions and benefits, to direct investments and involvement in local communities.

A survey by PriceWaterhouseCoopers (1993) found that 81 percent of senior executives of large U.S.–based businesses and 61 percent of their European counterparts reported that sustainability practices would be essential or very important to their company’s strategic mission over the next two years. Companies are now not only creating programs related to CSR, but also they are reporting their performance publicly. The KPMG International Survey of Corporate Responsibility Reporting (2005) reports that in 2005, 52 percent of the global top 250 companies and 33 percent of NASDAQ 100 companies issued CSR reports, while it was only 45 percent and 23 percent respectively in 2002. This reporting has shifted from being purely environmentally focused in 1999 to being more sustainability focused to include social and economic issues.

Community investment programs are a kind of CSR program that uses direct investments of time, money, services, or even expertise into a local community. This may be achieved simply between the company and a single charitable organization within the community; it may be through a series of strategic partnerships with various stakeholders in the community; or it may involve a variety of activities in the community. These efforts are often rewarded by a variety of benefits, particularly when the program is focused on social and environmental actions. The benefits summarized below are often more profound in Latin America and the Caribbean because of the particular social, environmental, and economic conditions.

2.1

The Benefits of a Community Investment Program

Improved social and environmental conditions in local communities. Community investment programs that focus on environmental or social action can not only directly improve local quality of life, but they can indirectly enhance local economic productivity and help to attract new business. Local social and environmental issues affect everyone The Cone/Roper Cause-Related Trends in a community; and clearly, this is an area where the Report (1999) determined that American characteristics and capacities of large infrastructure companies companies that sponsor charitable causeallow them to play an important positive role. related activities see benefits to their Better good community relations. When a company is a good brand and organization's reputation, neighbor—through its environmental and social performance, image, and bottom line. Additionally, their consumers and employees solidly community investment programs, employment practices, or and consistently support these activities. other activities and policies—it creates opportunities and reduces potential tensions. Good community relationships can 3


Community Investment Programs Associated with Private Sector Infrastructure lead to dialogue, such as during new construction or expansion projects or when unplanned events or accidents occur, that is far more likely to be constructive and lead to mutually acceptable solutions. This capacity is increasingly important in an era in which nongovernmental organizations can have significant impact upon a company’s reputation. Increased ability to attract and retain good employees. Companies that can recruit and retain well-motivated high-caliber staff benefit from higher productivity and lower recruitment costs. Increasingly, social responsibility helps to determine where people choose to work—not only the basic components of CSR, such as treatment of employees, but an overall corporate culture that is compatible with the principles and values of corporate responsibility.Retaining employees depends in part on the opportunities they see for training, career advancement, and personal growth.

The increased interest in CSR by jobseekers is occurring not just among those in environmental fields but across the business world. Many top business schools have incorporated CSR into their MBA programs. Beyond Grey Pinstripes (2001), a survey of graduate business schools in the United States, Asia, Europe, and the Americas, found 82 MBA programs worldwide reporting social and environmental topics in their curricula. Subsequent studies found this to be growing trends. The best programs were clustered primarily in the United States, followed by those in Canada and Europe.

Community investment programs often allow employees to work outside their normal jobs, giving them a chance to network with other staff and community members. Case studies have found that employees working in community investment programs develop important new skills, including teamwork, planning and implementation, communication, project management, listening, and customer focus. Increased sales and customer loyalty. Businesses must first satisfy consumers’ key buying criteria—price, quality, appearance, taste, availability, safety and convenience. But values-based criteria, such as fair labor practices and reduced environmental impact, are also influencing consumer decisions too. Several studies suggest a large and growing market for the products and services of companies that are perceived to be environmentally and socially responsible. Corporate citizenship can influence consumer opinion and behavior, essentially turning consumers into “brand champions.” The GolinHarris corporate citizenship survey, Doing Well by Doing Good: The Trajectory of Corporate Citizenship and American Business (2005), found that good corporate citizenship can directly influence a company’s financial performance. Forty percent of respondents said that good corporate citizenship makes them “more willing to do business with a company.” The study revealed a general perception that companies were moving in the right direction though still not meeting expectations. Responding to investor demand. Studies indicate that the public increasingly expects the private sector to help with social and environmental issues. Many investors expect more than a profit from their portfolios: they want investments that are consistent with their social, ethical, and environmental values. This movement is known as socially responsible investing (SRI), and it has

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A survey by Environics International published by The Corporate Social Responsibility Monitor 2001: Global Public Opinion on the Changing Role of Companies (2001) showed that consumers do indeed punish companies by not buying products from those perceived to be socially irresponsible. This behavior was strongest in the richer countries, with 42 percent of North American consumers reporting having participated in boycotts. But the tendency was still strong in Europe and Latin America, with 25 and 23 percent respectively not buying certain products. In the wake of the US corporate scandals, the Cone Corporate Citizenship Study (2002) found dramatic increase in this trend, with “89 percent of Americans saying that in light of the Enron collapse and WorldCom financial situation, it is more important than ever for companies to be socially responsible.”


PRI Environmental and Social Guideline become a growing force in financial investment. British indices—for example, Business in the Community’s Corporate Responsibility Index, and the FTSE4Good Index—assess corporate activities, and these ratings are then used to compile SRI funds.

According to the Social Investment Forum Report on Socially Responsible Investing Trends in the United States (2003), US$2.16 trillion in assets are professionally managed in portfolios that use at lease one of three socially responsible investing strategies—screening, shareholder advocacy, and community investing. This means that more than one out of every nine investment dollars under professional management in the United States in 2003—that is, 11.3 percent of the US$19.2 trillion total—entailed socially responsible investing. This includes pension funds, mutual fund families, foundations, religious organizations, and community development financial institutions.

Enhanced corporate image and improved financial performance. Can enhanced corporate image through community investment actually translate to competitive financial advantage? The concept is not new that companies benefit when consumers them in a positive light; but increasingly, “image” is being expanded to include the qualities that are associated with good corporate citizenship. This importance can be seen in purchasing preferences, with consumers rewarding the seemingly “good” companies and punishing companies perceived to be “bad.”

Certain CSR initiatives that improve environmental performance have the added benefit of lowering costs. Better reduction of wastes, improved energy efficiency, and cleaner emissions can reduce operating costs as well as environmental impact. Companies seen to reducing their impacts on the environment are viewed as better corporate citizens than those that simply meet the minimum requirements or standards.

2.2

The Changing Culture of Modern Business

More and more businesses recognize that their longterm sustainability may ultimately depend on how they address the concerns and needs of an everwidening circle of stakeholders. The global economy has generated not only more opportunity, but also higher expectations for the role of corporations within society. In many ways, this is a logical extension of the pressure exerted on business over the last decade to mitigate adverse environmental practices. Such pressure does not put companies at a competitive disadvantage. As CSR becomes more engrained, so too it will it be seen that meeting broader social responsibilities and competing effectively are complementary business strategies. Many of the companies that have been most responsive to environmental concerns are also those that are most successful in the marketplace.

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Community involvement by private companies is highest in the United States and Europe; however, the trend is growing in Latin America and the Caribbean too, especially in Mexico. A study FOCAL, the Canadian Foundation for the Americas (2004), examined CSR and community involvement throughout the region. Adoption of CSR codes and practices—in particular their reporting and accountability for these programs—were studied for the top 30 Latin American corporations (as defined by Latin Trade magazine). Virtually all of these large companies have adopted at least some form of community involvement or CSR policies, spanning cultural and sporting events, health programs, and environmental initiatives.


Community Investment Programs Associated with Private Sector Infrastructure

3.

DEVELOPING AND IMPLEMENTING A COMMUNITY INVESTMENT PROGRAM

No single set of rules and procedures will fit all companies that wish to establish a community investment program. The appropriate process will depend on the type of company or business, its size, culture, and the commitment of its leadership. The company needs to view community involvement as a form of investment; and in order to ensure that the investment provides benefit—both for the business and for the community—a systematic process must be put in place. As in any other aspect of business, commitment and good management is essential. This section sets out a basic process and some general principles for establishing a successful community investment program. Three steps are suggested. First, a framework needs to be established. This is accomplished by securing senior management support, creating a vision statement, consulting stakeholders, and understanding community needs. Second, the program needs to be designed and implemented. This is accomplished by defining the program, creating a culture of involvement, building partnerships, and promoting and implementing the program. Finally, the program needs to be monitored, assessed, and reported on.

3.1

Establish the Framework for the Program

Secure senior management support. The role and commitment of senior management is as important for community investment as in any other company program or strategy. Visible senior management support highlights the importance of the program, and it motivates employee participation. To secure management support, identify a capable senior manager to lead the program. Once support is gained, build on it by: • • • •

Committing material, human and financial resources; Linking the development of community investment activities to the company’s business goals; Involving the company’s human resources, marketing, and public relations departments in program planning and implementation; and Examining existing activities in the community, including employee volunteer involvement.

Create a vision statement. This is a simple but critical statement to articulate the company’s goals. It tells how a company sees its impact on society and the environment, as well as its primary values. Companies find that when their vision statement is clear—and the company’s social and environmental goals are integrated into its daily business practice—upholding the principles of corporate social responsibility, and thus a community investment program, becomes easier. The initial vision statement derives from internal discussion and then provides a basis for developing the community investment program. Depending on the company’s characteristics, the following process can help to create and make use of a vision statement. Define the basic principles. Consult with company staff, including management, employees, owners, and shareholders. Discuss their ideas on social responsibility and community investment. What are their expectations for the company? Identify how the company’s goals, values, and aspirations can be combined in a simple statement. Integrate the vision statement into operations. Consider how the vision statement fits in with hiring, training, procurement, operations, and other aspects of the business. Consult with employees on how to link vision with day-to-day tasks. Consider how the vision statement and the company’s marketing strategies can work together.

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PRI Environmental and Social Guideline Link community investment to business goals. Programs should be consistent with a company’s overall mission, values, goals and strategies. As possible, it should utilize skills, knowledge and experience of employees. Review and revise other policies as needed. Review operations for consistency with the vision statement. Consider changes in existing policies that might need to be made. If necessary, develop new policies to communicate the commitment to social responsibility and to set standards toward which everyone in the company can work. Identify clear and well-articulated values. A set of values and business principles linked to the vision statement helps managers and employees make consistently sound business decisions. Publish a set of values and business principles. Publishing the statement establishes greater accountability to suppliers, customers, and civil society. Thus, a well-crafted statement on how a company will conduct its affairs helps to reduce liability, resolve conflicts of interest, and ensure legal compliance. When asked to reflect upon the values that should be used to guide decisions at work, people typically point to honesty, promise keeping, loyalty, fairness, respect for others, and compassion. Use values and business principles to resolve problems. Think about the list of values when resolving conflicts, whether among employees or with customers, suppliers, or other stakeholders. Make sure the solutions you consider are consistent with the values to which you have committed. Consult stakeholders and perform a needs assessment. “Stakeholder” refers to anyone with a financial, legal, or social interest in the company. That includes people within the company, local community, consumers, investors, and government agencies. Each group can provide useful input into the kind of community investment program that is needed. To the extent practical and applicable, consultation should: Start with internal stakeholders—managers, employees, and shareholders. Generate ideas and solicit information regarding their volunteer work and participation in community activities. Engage community stakeholders in a dialogue that identifies their strengths, assets, and needs. These conversations can also elicit information on how the company is perceived in the community, providing opportunities for the company to improve or enhance its reputation. Consult with local government to ensure compliance with public policy and to avoid replication of services. Expand the dialogue to suppliers and consumers in order to determine their expectations on corporate responsibility issues and how they can participate in the company’s initiatives. Identify key individuals whose participation may facilitate involvement in the community, and create opportunities for communication with leaders and residents. Through transparency and open dialogue, create an atmosphere of trust and cooperation. Treat each stakeholder as an equal partner in the effort. If possible, conduct a formal community needs assessment. Utilize the services of experienced persons to ensure that the findings are accurate and unbiased.

3.2

Design and Implement the Program

Using the information obtained from establishing the framework for the community investment program, the company’s objectives for the program must be defined and then implemented. Section 4 provides information on the different kinds of programs that should be considered. At this point, design should take into account:

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Community Investment Programs Associated with Private Sector Infrastructure • • •

How the program will be financed (e.g., a one-off donation, budgeted annual giving, foundations, etc.)? How company staff and services be involved (e.g., donations, volunteering time, committees, etc.)? The focus of giving (i.e., an area of interest and particular needs in the community such as health, education, environment, etc.)?

Create a culture of involvement and support employee-initiated efforts. A culture of involvement refers to all stakeholders—company employees, community members, and possibly governmental and nongovernmental organizations. Company product consumers, suppliers, and investors should be considered. A successful program will aim for involvement from as many of these groups as possible. There is no single technique for creating a culture of involvement. However, some suggestions include: •

Provide information and resources. Create a directory of nonprofit organizations or community groups seeking donations or volunteers, including the skills and programs that they need. Invite representatives to discuss their programs and needs. If possible, set up a system for matching volunteers with opportunities.

Create a directory of community volunteer opportunities or hold a volunteer fair in which local organizations can meet with interested employees. Seek out employee suggestions of causes to support. Many employees are probably already involved in the community, and thus they may be aware of existing programs that could benefit the new initiative.

Provide incentives for participation. Match employee contributions to local charities or causes, or make contributions to the nonprofit groups with which employees are already involved. Give time-off for fundraising activities, or provide space for fundraising events. Some companies consider volunteer activities in performance reviews. Sponsor special events, such as picnics. Offer tickets to sporting and cultural events.

Create awards for outstanding volunteer efforts. Consider a program of paid volunteer time, or “volunteer release time” using incentives like work release, matching time, or social service leave (see Section 4 for more discussion of incentives).

Broaden participation. Expand the company’s volunteer pool by allowing family members, customers, company suppliers, and other stakeholders to participate in programs. Cooperate with other businesses in the community in tackling larger projects.

Donate management skills. Managers and executives may want to lend their expertise to enhance the operations of a community organization. Consider lending managers on company time for the duration of the project or as consultants.

Recognize effort. Identify and publicly acknowledge efforts by employees and the company. Provide this information to company stakeholders internally and externally through annual reports, newsletters, the web, and so forth. Provide information on active programs to employees, divisions, and locations even if their community is not the target community of the program.

Enhance opportunities for participation. Whenever possible, provide suppliers, consumers, shareholders, and other stakeholders with opportunities to participate.

Build partnerships. If the company has decided that partnerships would be beneficial to the community investment program, then relationships must be developed. Partnerships can include businesses, government, nonprofits, and educational institutions. Partners should be chosen as carefully as business partners. Here are seven steps to forming partnerships, adapted from Business for Social Responsibility (2000).

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PRI Environmental and Social Guideline

Identify the partners. They should facilitate or enhance the current or planned programs. Some questions to consider include: • • • • • • •

What is the prospective partner’s mission and vision? Are its goals consistent with those of the company? Does the organization have a good reputation within its sector? How is the organization perceived within the community? Is the organization managed well? Does it have the skills and resources to fulfill its role? Does the organization have other projects, initiatives, or relationships that might conflict with the company?

Develop ground rules for the partnership. Determine how the company and partner organization will work together. Some issues to keep in mind: • • • • •

Formulate an objective for the partnership. Specify its scope and duration. Determine how it will fit with the company’s products and services. Establish the mutual benefits objectives. Consider what company resources will be required.

Define desired outcomes of the partnership. Set tangible benefits to attain and show how they will be reached. All parties must agree on what is to be accomplished. Discuss the potential for replication. Develop the partnership structure.- Determine how formal the partnership should be. For example, should it require a memorandum of agreement or a formal contract? Get it in writing. Among key considerations: • • • • •

How will responsibilities be divided among partners? How will decisions be made? Who will be accountable for deadlines, costs, and results? What resources will each party bring to the partnership? Include both financial and non-financial contributions, such as products, services, facilities, human resources, and supplies. What other commitments will each party make? Are there additional expectations about the relationship?

Communicate internally and externally about partnership. Keep the entire company up to date on the progress and results of the partnership. If possible, create a forum in which employees can meet members of the partnering organization to ask questions and discuss the partnership. Resources permitting provide a report on the program, including results attained, projected duration of the partnership, and so forth. Make this information widely available to employees, shareholders, community members, and other stakeholders. It might be advantageous or necessary to form an advisory committee. Regularly evaluate the partnership. Monitoring the partnership's effectiveness can provide valuable information. At key intervals, evaluate accomplishments and reevaluate expectations. Include tangible benefits that resulted and the financial, human, and material investments. Be flexible about modifying the partnership structure or decision-making process. Encourage the partners and the community to communicate their assessments of the company. Promote, encourage, and implement the program. Once designed, the community investment program will need to be promoted within both the organization and the community; and then, of course, implemented. 9


Community Investment Programs Associated with Private Sector Infrastructure

3.3

Monitor, Assess, and Report on the Program

Regular monitoring and program assessment can help ensure that the program meets its goals. Monitoring can also determine the impact on the community of business decisions related to recruitment, site selection, vendor selection, environmental performance, training programs, and workplace conditions. At its most basic level, measurement and evaluation seek to answer the following questions: • • • •

What resources are being committed to community investment programs? What results are being achieved? How does the company’s community investment programs compare to those of others in its industry? What benefits does the company gain from its community investment programs?

To measure effectiveness, a company and its partners may need to take the following basic steps: • • • • •

Collect baseline data on the community to allow for comparisons before and after program. Quantify monetary values for value of equipment used, volunteer hours worked by employees, residual value of donated items, and so forth. Evaluate routinely the program components and partnerships and make modifications as warranted. Report evaluation results such as through internal memos, annual reports, and external communications. Consider participatory monitoring and evaluation procedures that include community beneficiaries.

A final use of monitoring and evaluation programs is that they provide necessary information to enhance the benefits that companies and communities can derive from community investment programs.

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PRI Environmental and Social Guideline

4. KINDS OF COMMUNITY INVESTMENT PROGRAMS Community investment programs are a type or component of corporate social responsibility policy in which a company invests time, money, services, or expertise in communities where it operates. This can be done simply through a single charitable organization in the community. It can entail a series of strategic partnerships with stakeholders in the community. Or it can involve specific activities that improve social and environmental conditions. While there is no one type of perfect community investment program, the objective should also be to help establish an economically, socially and environmentally sustainable community. When developing a community investment program—of whatever type—the following basic tenets should be adhered to: •

Community Centered: The best source of information on the needs of a community are those who live there. Consultations help identify and prioritize options and assess community strengths and assets.

Participatory: Participation by stakeholders is the cornerstone to program success. The process provides residents a sense of ownership and reduces undue expectations.

Coordination: Activities must be coordinated with community groups and governmental units already in place in order to avoid replication of services and to foster a cooperative environment.

Transparency: Keeping community residents appraised in planning, policies, and reporting reduces speculation, encourages participation, and creates an atmosphere of trust.

Accountability: Periodic evaluations foster accountability among stakeholders involved in the program. They are important as reports on social responsibility to the company’s shareholders, employees, and consumers.

Companies can become involved with communities in many ways. This section describes three kinds of community investment programs—company philanthropy, employee volunteerism, and community partnerships. Many companies combine all three methods. Ideally, philanthropy and employee volunteerism should be integral to a community investment program. Companies venturing into this area for the first time may find that corporate philanthropic and volunteer programs are a manageable first step. They can be built upon in order to form more challenging partnerships with community stakeholders. This section includes several brief examples of actions and activities undertaken by private sector infrastructurerelated companies operating in Latin America and the Caribbean. More detailed case studies are provided in Annex A, and sources for obtaining more information are provided in Annex B.

4.1

Philanthropy

Philanthropy refers to financial contributions to nonprofit or community organizations that address various social and economic needs of poor communities. More recently, corporate philanthropy has evolved to reflect the long-term business strategies of companies and to respond to changing expectations of their employees, shareholders, and consumers. Increasingly, companies supplement their cash donations with material goods and provide services that address community needs. Companies may simply respond to specific community requests with informal donations to groups or charities. However, they may wish to make donations that are more formal, structured, and integrated into their overall business program. Several models have worked out for this type of philanthropy.

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Community Investment Programs Associated with Private Sector Infrastructure Corporate giving programs. A company can implement a program of charitable grants financed through its annual operating budget. The company sets aside money each year specifically for donations. The amount is allocated for a budget period rather than through an endowment (see below). This budget can be administered by a designated manager and directed by the chief executive officer or an advisory committee of management staff. Corporate funds and community foundations. In some cases, organizations in the community may already be involved in work that is of interest to the company. If so, a fund may be created within the structure of that community foundation or organization. This sometimes has the benefit of allowing the company to choose the types of project to support without the administrative and time costs of establishing its own foundation. DONATION TO AN EXISTING LOCAL INITIATIVE ENERGY GENERATION IN TERMOBAHIA, BRAZIL Termobahia is gas-fired, combined-cycle, thermal co-generation plant in Mataripe in the state of Bahia, Brazil. The facility produces approximately 190 megawatts of electricity and 350 metric tons of steam per hour. Termobahia’s community investment program consists of two components. College entrance exam assistance (Pre-vestibular São Francisco do Conde). In 2001 and 2002, Termobahia partnered with an existing program to provide students with professional educational guidance for colleague entrance exams. Termobahia provided financial support to increase the number of students. This type of program is unique to the area and is expected to lay the groundwork for similar social programs. The beneficiaries included 100 students of São Francisco do Conde. The one-year program was successfully completed in December 2002 with a 31 percent increase in the number of students admitted to private and public universities. Sewers cooperative program. In 2003, Termobahia implemented a social program to donate industrial sewing machines to the sewers’ cooperative of Caípe, which was supported by the Landulpho Alves refinery. The cooperative had been created to help stimulate the economy in communities near the refinery. It produced uniforms for the refinery, its contractors, and subcontractors. Twenty-five cooperative members benefited. The program generated jobs and income through the re-qualification of the sewers and qualification of new members. Employee matching. In addition to making their own donations, companies often offer to match those of their employees. Many companies assist and encourage their employees through giving programs in the workplace and payroll deductions. Corporate foundations. In certain jurisdictions, corporate foundations can be private, independent, and taxexempt. A corporate foundation is usually started with a single monetary gift. This initial money serves as an endowment to which the company adds contributions. The foundation officers are usually the company owners and key executives, although representatives from local communities can be included. Companies can form employee committees to make recommendations on projects to be funded. The corporate foundation can have legal standing independent of the company and be governed by laws and regulations for local or national charitable organizations. Several new models for corporate philanthropy have emerged in recent years that combine the activities of corporate giving with other types of community involvement.1

1

See “Philanthropy” in Business for Corporate Responsibility (2000).

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PRI Environmental and Social Guideline The social investment model. This model combines cash contributions with in-kind donations, employee volunteerism, management expertise, and technical support. This more comprehensive approach responds to rising public expectations for corporate responsibility, as well as the need to maximize the impact of philanthropic budgets. Strategic philanthropy. This model focuses a company’s charitable donations to reflect the needs of its employees, shareholders, and consumers, as well maintaining compatibility with its business interests. Viewing philanthropy as an investment has moved companies away from donating to causes or organizations unrelated to their business objectives. Global philanthropy. Many companies expanding into global markets find that shifting from a local to an international philanthropic focus makes them competitive in global markets, helps them develop relations with the national governments, and enhances reputation among consumers, employees and investors. In less developed countries, companies also find that their contributions go much farther, particularly in rural areas due to the lower cost of goods and services.

FOUNDATIONS AND EMPLOYEE VOLUNTEERISM A GAS PIPELINE IN ARGENTINA Transportadora del Gas del Sur (TGS) is the gas transportation company (concessionaire) for the southern portion of Argentina, operating more than 7,400 kilometers of pipelines with approximately 62.5 million of cubic meters per day of transportation capacity. TGS’s community investment program includes continued support for the Foundation “Fundación Cruzada Patagonica”. Founded in 1979, the foundation runs a school orphanage, provides legal council to several indigenous communities, and promotes the use of didactic production techniques in primary schools in rural areas of Rio Negro and Neuquen provinces. The center has grown to include classrooms, warehouses, a chapel, carpentry workshops, a gymnasium, and hostels. The school provides free room and board to 200 students who participate in a specialized high school vocational program. Students graduate as Professional Technicians of Agropecuraia Production. The local bishop provides boarding space, which enables women to participate in the program. Employees also volunteered to make repairs and installed heating in two children’s shelters. The company donated money, materials, and food. The shelters included Vaquitas Lecheras and Agustina Micaela for children, single mothers, and the elderly, serving 240 and 160 persons respectively. This program was suggested by collaborating nongovernmental organizations, which matched shelters with the financial ability and skills of TGS and its volunteers. The program uses the core business skills of construction and gas connection. TGS supplies financial support to the projects. Employees contribute their skills and labor to make renovations—for example, painting, repairing gas ovens, and improving the water supply. In addition, TGS and its employees donate food, toys, school supplies, and kitchen supplies. In selecting projects, the objective is to complete specific projects or programs rather than leave several initiatives pending.

Venture capital philanthropy. Funds are allocated to nonprofit organizations as if they were start-up businesses. As the organization meets its goals and demonstrates good financial management, it qualifies for additional funding. This model rewards performance and promotes innovation by providing seed money to promising small programs that would have trouble finding money on their own.2 2

For additional information on philanthropic venture capitalism, see Social Venture Partners, (http://www.svpseattle.org). 13


Community Investment Programs Associated with Private Sector Infrastructure

Employee participation in philanthropy programs. Companies’ partner with their employees to support charitable causes in many ways. For example, companies can match employee contributions equally or as a percentage; they can donate to nonprofits in which employees volunteer; and they can solicit suggestions from employees on causes or organizations to support. Many companies provide the convenience of payroll deductions for employee donations. DONATIONS TO LOCAL SCHOOLS AND TRAINING FOR LOCAL WORKERS ENERGY GENERATION IN COSTA RICA Geoenergía de Guanacaste operates a 27-megawatt geothermal plant in northern Costa Rica. The principal activity of the company’s community investment program is donation to local schools. Many employees have children in these schools, enhancing the company’s commitment. Donations include sports uniforms, school supplies, and building materials. For example, the company provided construction materials to rebuild a local kindergarten and helped the school board to finance a school gymnasium roof. It provided uniforms so that the teen soccer team from Fortuna de Bagaces could participate in the regional championship. An employee committee reviews requests from community leaders and the school. Company personnel have noted that the program receives strong executive management support and that the communities understand the goals of the program. The company has identified the main benefits of implementing community investment programs as high employee morale and the desirability of employment by Geoenergía de Guanacaste.

4.2

Employee Volunteerism

Employee volunteerism is often cited as a particularly important aspect of a company’s social responsibility. Voluntarism provides a human dimension that goes beyond company giving. It can help the company to improve its image with the community, deepen its relationship, maximize program benefits, and enhance employee skills. Direct hands-on involvement by employees helps the company to track community sentiments as well as to head off potential problems in the relationship. Companies increasingly pay for at least some of the time that employees spend on volunteer activities. “Volunteer release time” policies differ but generally fall into one of the following categories:3

3

Work release: in which the company specifies a certain amount of regular business hours that the employee can devote to volunteer activity.

Matching time: in which the company pays for a certain amount of volunteer time once the employee has matched with equal time outside of business hours.

Social service leave: in which paid leave is granted to an employee to work full-time with a nonprofit or community-based organization.

Volunteer release time: in which employees are encouraged to participate in volunteer programs and illustrates a company’s commitment to its employees and the community.

See “Volunteer Release Time ” in Business for Corporate Responsibility (2000).

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PRI Environmental and Social Guideline

Some companies limit payment for employee volunteer efforts to projects or issue areas that the company defines. This encourages employees to participate in community involvement efforts that the company considers to be of strategic business importance. Paid release time strengthens a company’s volunteer efforts, which in turn enhances the company’s image and improves its relationship with the community.

EMPLOYEE - MANAGED VOLUNTEER PROGRAMS PETROCHEMICALS IN MANOS UNIDOS, CHILE Shell Chile, a subsidiary of the Royal Dutch/ Shell Group, is a major marketer and distributor of fuel, lubricants, and other petrochemicals throughout Chile. The company-supported volunteer program, Manos Unidos, is employee-initiated and employee-managed initiative. It encourages Shell employees to work on a particular project on the outskirts of Santiago to enhance a low-income community. The project has received significant recognition. Nonprofit groups, media, and local authorities have hailed it as a model for other community-minded companies. The project is managed by an employee volunteer group. Every level of the organization, including the country director and senior executives, is involved and support the program. To date, Shell employees and local residents have constructed a children’s playground and a multipurpose sports field, and they have refurbished the community’s central plaza. When the program was launched, residents were surveyed on their interests and preferences. They were then engaged to work actively with Shell employees and to maintain the areas that have been rebuilt.

4.3

Partnership

Partnership go beyond the company’s own actions. They can be a very effective in supporting community investment that is community-centered and participatory. Governmental partners might include agencies dealing with low-income housing, social welfare, or health issues. Nongovernmental organizations might include a broad range of civil society partners. Educational and research institutions might be brought in. Each partner brings in unique traits and thus important to utilize the strengths of each organizations talents and resources to complement the partners. LOCAL COMMUNITY PARTNERSHIP THE BRITISH TELECOMMUNICATIONS (BT) – CHILDLINE PARTNERSHIP, UNITED KINGDOM The BT-ChildLine partnership is one of many programs under the company’s social responsibility initiative, BT in the Community. Since its establishment in 1986, ChildLine has provided confidential counseling services 24-hours a day on issues such as physical and sexual abuse of children, bullying at school, and unwanted pregnancies. Prohibited by UK law from donating free or even discounted phone charges to the counseling service, BT provides free London premises, a telephone system, expert technical advice, and ChildLine's unique and memorable toll-free number—0800 1111. Information on ChildLine has also been included along with customer bills, helping to build up a small donor base. Since receiving its first call in 1986, the service has assisted more than 750,000 children. Approximately 3,300 phone calls are received each day. ChildLine has successfully advocated for the use of screens and closed-circuit television for child witnesses in court cases, and it has strongly urged that a national register be established for convicted pedophiles.

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Community Investment Programs Associated with Private Sector Infrastructure

4.4

Potential Program Activities

The following section suggests specific actions and activities for community investment programs. These ideas are geared toward private sector infrastructure companies operating in Latin America and Caribbean that desire to enhance the environmental and social sustainability of local communities. Far from an exhaustive list, these suggestions are illustrative. Of course actual choice depends upon a community’s specific needs and the company’s framework for community investment. The first sub-section deals with generic community programs. The second deals with community programs that are specific to the infrastructure sectors of transportation, energy, water and sanitation, and telecommunications. It should be emphasized here that these ideas illustrate how a company can go beyond a company’s obligations and requirements to mitigate any environmental or social harm that they cause and comply with all applicable incountry regulatory requirements.

Generic Programs Generic community programs includes various types of social, environmental and economic programs that cut broadly across social and environmental sectors and thus will likely fall outside of most company’s core business activities, especially those in the infrastructure sector. Examples are provided related to education, health, poverty reduction, children and youth, environment, community empowerment and development, cultural and historical heritage, indigenous peoples, emergency response. Education Provide college or technical school scholarships for deserving students, in particular from poor families, cultural minorities, physically handicapped persons, and single parent families. Support continuing education or skills enhancement programs for schoolteachers and administrators. Sponsor adult education programs for functional literacy and high school equivalency certification. Use skilled company personnel to offer training in basic accounting, computer applications, management, inventory control, and so forth for microenterprises and community based organizations. Support educational programs to enhance productive skills for women, such as running small businesses, sewing, and crafts production. Sponsor community or school libraries. Develop a community computer-resource center, including donations of older computers and computer time. Health Support a health clinic or sponsor visits by medical personnel, including company doctors and nurses. Develop screening programs such as to detect and educate the community on diabetes, hypertension, and high cholesterol. Upgrade the community’s potable water system. Finance vaccination programs for vulnerable groups such as children and the elderly, and educate these groups on the benefits. Support educational programs for parents in health, nutrition, and sanitation. Promote women’s health-care issues, including maternity and prenatal care. Support alcohol and substance abuse programs. Programs for the prevention of domestic violence and sexual assault, and services to treat spouses, children, and elderly people who are victimized. Prevention and treatment programs for infectious diseases, including sexually transmitted diseases such as HIV/AIDS.

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PRI Environmental and Social Guideline Programs for the prevention, control, and eradication health vectors such as mosquitoes, rats, flies, and cockroaches. Health information campaigns through advertising and printing of educational materials. Provide materials, labor, and funds to enhance handicapped access to public and private buildings. Build public toilet facilities and distribute sanitary flush toilets to households. Provide technical, material, equipment, or funds for community sewerage and drainage. Sponsor veterinary service visits for animal neutering and vaccination, livestock husbandry, stray animal control, and rabies prevention. Poverty reduction Prioritize hiring and training of local residents, particularly women and persons who are disadvantaged or vulnerable. Provide funds or technical expertise for livelihood development or jobs training. Finance a self-sustaining endowment for a microcredit program, or financing for small and medium enterprises. Provide financing, technical, and managerial assistance to develop cooperatives in areas such as crafts, food services, and building materials. Provide these cooperatives with assistance in marketing. Support low-income housing or housing improvement programs. Support hunger reduction and subsidized meals programs. Develop programs that encourage energy efficiency and rational use of water to reduce energy and water costs to households. Sponsor social and financial empowerment programs for poor women. Provide employment opportunities to “underutilized workers” (that is, those who are unemployed long term, low-skilled, disabled, seniors, former-prisoners, members of minority groups, and so forth.) Provide transportation subsidies for poor working women. Support livestock or seed distribution programs in which the beneficiaries repay with offspring livestock or crops that can be distributed to new rounds of recipients. Sponsor legal assistance programs to assist disadvantaged residents with legal documentation, land tenure disputes, rights advocacy, and direct representation in court cases. Children and youth Provide financial, material, or services assistance to street children or interdiction programs for children at risk through drugs, crime, and gangs. Subsidize breakfast and lunch programs in local schools. Provide unemployed youth with job training. Build, maintain, and improve playgrounds. Sponsor sporting clubs, events, and facilities for children. Develop child mentoring and tutoring programs with company employees. Support children’s rights and child labor initiatives. Sponsor children’s after-school programs at community centers. Assist to establish and support cooperatively owned daycare centers. Sponsor programs in early childhood care and development. Sponsor educational or recreational field trips to zoos, museums, and national monuments. Help to renovate school buildings and other educational facilities. Donate textbooks and supplies to schools.

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Community Investment Programs Associated with Private Sector Infrastructure Environment Promote water conservation and re-use programs. Programs to reduce solid waste reduction and promote recycling. Reforestation programs or rehabilitation and protection of forests and green spaces. Establish pollution control and cleanup programs. Promote use of barren land for housing, reforestation, or other environmental use. Programs to inventory, manage, and protect local natural resources. Develop educational programs for children on wildlife protection and resource conservation. Donate company technical skills or provide information to assist in community planning for sustainable development. Promote the elimination or reduction of ozone-depleting compounds. Promote composting of biodegradable materials. Provide financial and logistical support for coastal and waterway clean-ups. Assist in ecotourism development. Support watershed protection and management. Provide support to local environment-friendly (responsible) companies. Community empowerment and development Enhance the management and productive capacities of local organizations through skills training and staff volunteerism. Provide funding, materials, and services to improve lighting, paving, curb construction, and marking. Provide technical, material, and financial assistance in sustainable community development and land-use planning. Establish company offices in distressed and underdeveloped communities. Offer company facilities to be used by community groups. Build, maintain, and support multipurpose community centers. Construct, rehabilitate, and maintain parks, public markets, and sports facilities. Restore dilapidated but historically significant structures. Develop local centers to provide Internet and telephone access. Sponsor crime prevention programs such as crime-watch, bike, or resident safety patrols. Support traffic safety education for children and traffic-crossing guards. Support programs on women’s safety and concerns. Support improving agricultural irrigation systems. Cultural and historical heritage Sponsor an inventory of local cultural and historical resources. Help train community organizations and residents in conservation practices. Assist in tourism programs focused on local history and cultural heritage. Develop tourist guide training programs for high school students. Provide technical and material resources for a community oral history. Host exhibitions of employee, family, and community art, culture, and history. Provide space for clubs or groups to discuss local history and culture. Indigenous peoples4 Finance intercultural and bilingual education programs, including research and curriculum development, participatory production of educational materials, and teacher training. 4

Community investment programs related to indigenous peoples must be carried out with the consent and active participation of that community.

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PRI Environmental and Social Guideline Support research on and use of indigenous judicial systems. Promote public awareness and cultural sensitivity toward indigenous communities and support policy actions to address their needs. Sponsor cultural preservation programs. Sponsor indigenous health programs and their articulation with the public health system. Finance cultural sensitivity training of health care providers working with indigenous groups. Provide legal assistance for ancestral land-rights protection, land tenure security, and rights advocacy. Support natural resources management programs in indigenous areas. Assist in development of low-impact ecotourism and other economic development programs that focus on cultural protection of the indigenous peoples and conservation of their natural resources. Enhance employment opportunities for indigenous persons. Emergency response Provide funding, material and personnel for volunteer emergency response to natural disasters such as floods, earthquakes, and hurricanes. Conduct training workshops related to natural disasters. Sponsor training of residents in cardiopulmonary resuscitation and first aid. Collect and distribute appropriate emergency kits with first aid supplies, blankets, clothes, water, food, and so forth. Organize emergency response teams to lead the company’s relief services—for example, collecting food items and distributing clothing for disaster victims. Designate area within company property that may be used as temporary shelters for disaster victims.

Community Programs in Infrastructure Companies Infrastructure here encompasses four subsectors—transportation (roads, airports, ports), energy (thermal power generation, hydropower, transmission and distribution), water and sanitation, and telecommunications. The potential actions and activities presented in this sub-section focus on using an infrastructure companies capabilities and experience given it core business. These examples presented must be considered as ideas and activities that go “above and beyond” a companies obligation to fully mitigate any negative environmental or social impact that they cause and comply with all incountry regulations related to the environment, social protection, health and safety, and worker’s rights. For example, a toll road concession might entail a requirement in which certain users are provided with discounted road-use fees. Even though these users might be members of a local community, compliance with the requirement would not in itself be considered as a community investment program. On the other hand, if no such requirement existed—and the company developed its own program to discount road fees for a local community—then it would be considered a community investment. Roads Promote or sponsor traffic safety and education programs for school children and local organizations. Promote the use of safety belts and children’s car seats, and provide instruction days to advise on seatbelt installation and the use of car seats. Co-sponsor alcohol test campaigns with the police department during holidays and long weekends to identify drunk drivers and reduce accidents. Support litter control programs, such as trash disposal in public rest areas and offering drivers small garbage bags at tollbooths; recycling; and adopt-a-highway campaigns with civic organizations and local private companies. Sponsor vehicle emissions testing programs. Support public or mass transportation programs. 19


Community Investment Programs Associated with Private Sector Infrastructure Sponsor billboards such as anti-littering, driving sober, use of safety belts, conservation, and tourist information. Support for ambulatory medical and first-aid services to nearby communities. Promote “cleaner technology” vehicles like those using natural gas, electricity, fuel cells, and so forth. In consultation with authorities and local road users, implement high-priority, road safety programs for roads beyond the immediate project boundaries—for example, better road signs, lighting, lane identification, edge and rail protection; pedestrian crossings and overpasses in areas with high local foot traffic. Implement vegetation control programs on roads beyond the project area—for example, visually appealing, lack or minimal use of herbicides, etc. Identify needs and initiate noise control programs on roads beyond the project area—for example, physical barriers, natural vegetation, and so forth. Support local tourism by developing areas along the roadway to enjoy scenic vistas, historic sites, or other tourist attractions. Install parking areas at sites with a unique scenery or natural beauty—for example, creating a permanent exhibition of native plants, description of the geology, and landmarks on the horizon at elevated sites. Provide specifications and technical assistance on the construction of secondary roads to communities. Promote the recreational use of roads for bicycles, races, tours, marathons—for example, occasional dedicated lanes and organizational support for emergency vehicles, signaling, and security. Sponsor road-specific research projects—for example, on the impacts of the road runoff discharges containing rubber and metals from the wearing away of tires and health impacts on tollbooth operators exposed to car emissions on a 8-hour shifts. Help to develop rest stops with picnic areas and support services along the toll road for gasoline, food, and vehicle repair. Provide discounted rates for special user groups—for example, mass transit vehicles, disadvantaged groups, school and community excursions, and local short-distance traffic. Provide exclusive lanes during rush hours for special groups—for example, mass transit vehicles, school and community excursions, and vehicles using cleaner technologies. Sponsor a shortwave radio station at tollbooths—similar to the stations using modular amplitude (AM radio) near the airports—to inform users of traffic, weather, road conditions, hazards, and accidents. Provide sustainable solar or wind-operated emergency telecommunication systems. Airports Promote or sponsor public information programs for local communities on topics such as air safety, noise abatement, and airport operations. Promote community awareness programs associated with land-use planning in relations to location and operation of airports. Work closely with local agencies and owners of adjacent land for better zoning around airports—for example, better definition of buffer zones or promotion of new commercial areas instead of residential. Work with local groups to protect wildlife in airport buffer zones. Provide subsidized retail space for crafts produced through local artisan cooperatives. Implement collection programs for spare foreign-change and coin donation to support local or international causes. Implement recycling programs of waste from passenger aircrafts. Sponsor a carpool transport program in which residents living near the airport could benefit from empty taxis returning to their base after driving passengers. Provide free time at the airport’s shortwave AM radio station or provide a separate frequency to help market local restaurants, hotels, and entertainment. Encourage the airport’s multiple suppliers, fuel providers, taxis, and airlines to join in communityoriented programs.

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PRI Environmental and Social Guideline Support refurbishment of houses near airport such as with sealed and reinforced windows or roof paneling to help reduce noise. Establish a public lookout point to observe planes taking off and landing. Ports Provide education on safe sex and AIDS at port facilities for permanent and for itinerant personnel. Provide education on drug and alcohol abuse for permanent and temporary port personnel. Promote recycling by providing publicly accessible receptacles and education campaigns. Support research and education activities related to water resources, fisheries, and wildlife. Sponsor studies to monitor water quality and other ecological parameters in port areas. Sponsor coastal cleanup activities—for example, International Coastal Cleanup Day. Support marine sanctuaries and preserves. Assist artisan fishermen in environmentally sustainable activities. Support environmentally sustainable commercial fishing. Sponsor recreational marine activities in support of local tourism. Promote safety programs on port access roads and in adjacent communities. Sponsor environmental education programs for schoolchildren and local community organizations. Provide guided visits and tours to port facilities. Thermal power generation Establish formal agreements to support small communities with emergency response to fire and spills through use of plant equipment and human resources such as fire fighting brigades and medical staff. Support educational programs on business and residential energy efficiency. Support educational programs on reduction of greenhouse gas emissions. Support the establishment of a monitoring network to assess air quality—not only for plant operations but overall ambient air quality in the community. Provide financial support to energy-oriented community programs such as replacement of conventional street lightning with sodium vapor lights; intelligent systems to shut down lights in schools and public buildings; motion sensor lights, and so forth. Support energy-oriented community initiatives, such as lighting infrastructure and free energy for public sports arenas, concert halls, libraries, and night-time community activities. Promote agreements with local universities and technological institutes to provide science and math scholarships. Hydropower generation Support programs to develop fisheries, tourism, recreational, and other uses of the reservoir. Sponsor research and educational efforts related to fisheries, fauna, and flora in the reservoir. Support ecological research programs, such as meteorological stations, microclimate monitoring, geological, and archeological research programs. Support educational programs on business and residential energy efficiency. Support educational programs on reduction of greenhouse gas emissions Support local health programs, especially on disease-carrying vectors. Transmission and distribution Provide free or reduced rates for special users, including schools, libraries, and community centers in impoverished communities. Sponsor educational programs for schoolchildren and local community organizations to prevent accidents involving contact with electric lines and electrical substations, and tower climbing (e.g., to retrieve kites). 21


Community Investment Programs Associated with Private Sector Infrastructure Sponsor energy conservation programs Distribute low-energy-consumption light bulbs in low-income communities. Provide special rates and assistance connection for disadvantaged residential customers. Provide technical and financial assistance to community centers, libraries, sport fields, and schools for lighting systems, electrical transformers, and other equipment. Sponsor community awareness programs on the health and safety risks related to electromagnetic radiation near high-voltage lines. Water and sanitation Promote water conservation and reuse programs. Provide access to potable water for disadvantaged persons not connected to water systems. Sponsor programs for watershed protection and management. Support water quality monitoring in lakes, streams, and rivers. Provide special rates and assistance to disadvantaged residential customers. Sponsor research and educational activities related to potable water supply. Sponsor research on environment-friendly water supply and waste water treatment. Sponsor water quality programs involving local schoolchildren and youth. Promote reuse of effluents to conserve water resources. Support reuse of sludge to fertilize marginal soils or nonfood agricultural fields (e.g., flowers). Provide assistance to install rural, waste-water treatment systems. Support watershed and water resource cleanup and remediation programs. Promote environmental education programs for schoolchildren and community groups. Telecommunications Provide free or subsidized rates and equipment for crime prevention programs, police, emergency services, and rape, domestic violence, and suicide hotlines. Establish communication links between rural clinics and urban hospitals, or local schools and national educational institutions. Provide special rates and assistance to disadvantaged residential customers. Provide free or reduced rates for Internet access services at schools, libraries, and community centers in poor communities. Furnish specialized equipment and infrastructure for telephone users with auditory, speech, physical, or visual handicaps. Provide telephone service to remote communities where network access is not available through alternative technologies. Promote tower sharing or the tower clustering to reduce the number of towers. Establish scrapping programs to recover and dispose of old cellular phones, and recycling of batteries and electric circuits. Promote the use of energy-efficient telephone chargers. Promote state-of-the-art landscaping for transmission and repetition towers, including camouflage of antennas and towers located at residential and rural areas. Subsidize hands-free equipment as part of a program to promote safe cellular phone use while driving. Join with gasoline stations in an education campaign to inform the public on the risks of fires and explosions when using cellular phones while fuelling vehicles. Sponsor the installation of static discharge devices.

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PRI Environmental and Social Guideline

REFERENCES Business for Social Responsibility, 2000. “Community Partnerships” Cone/Roper, “Cause-Related Trends Report: The Evolution of Cause Branding,” Boston, MA: Cone, Inc. 2002. ———, 1999. “Cone Corporate Citizenship Study.”

http://www.conenet.com/Pages/pr_13.html (summary)

Environics International, 2001. Corporate Social Responsibility Monitor: Global Public Opinion on the Changing Role of Companies. See summary at BSDglobal, International Institute for Sustainable Development.

http://www.bsdglobal.com/issues/sr_csrm.asp GolinHarris, 2005. Corporate Citizenship Survey, “Doing Well by Doing Good: The Trajectory of Corporate Citizenship and American Business.”

http://www.golinharris.com/ Haslam, Paul Alexander, March 2004. “The Corporate Social Responsibility System in Latin America and the Caribbean,” Canadian Foundation for the Americas. http://www.focal.ca/pdf/csr_04.pdf (FOCAM Website) KPMG, 2005. International Survey of Corporate Responsibility.

http://www.kpmg.nl/Docs/Corporate_Site/Publicaties/International_Survey_Corporate_Responsibility_ 2005.pdf PricewaterhouseCoopers, June 4, 2003. “European and U.S. Multinationals Place Different Emphases on Corporate Sustainability, PricewaterhouseCoopers Finds,” Management Barometer series.

http://www.pwcglobal.com/extweb/ncpressrelease.nsf/DocID/4330ED430DF383AA8525D3B00529D 16 Social Investment Forum, 2003. Report on Socially Responsible Investing Trends in the United States.

http://www.socialinvest.org/areas/research/trends/sri_trends_report_2003.pdf World Resources Institute Sustainable Enterprise Program and The Aspen Institute Beyond, 2001. “Grey Pinstripes: Preparing MBAs for Social and Environmental Stewardship,” 2001 Initiative for Social Innovation Through Business. http://pubs.wri.org/pubs_description.cfm?PubID=3143 ———, 2003. “Grey Pinstripes: Preparing MBAs for Social and Environmental Stewardship” (brochure).

http://www.beyondgreypinstripes.org/results/docs/bgps_2003_brochure.pdf

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PRI Environmental and Social Guidelines

ANNEX A Examples of Good Practices in Community Investment Programs Following are examples that exemplify community investment and social responsibility programs. They are presented to illustrate the broad range of social, environmental and economic issues that may be addressed for the benefit of communities and their residents. The examples are divided into two groups: the first are programs developed by IDB Private Sector Department project companies, and the second are other programs that are presented as examples that could provide inspiration to IDB projects wishing to develop their own programs.

A.1

IDB Private Sector Department Examples of Good Practices

The following examples describe some of the community investment projects that IDB Private Sector project sponsors have implemented with the objective of producing positive environmental and/or social benefits. These case studies below were collected as part of a survey completed in 2003 of the IDB Private Sector Department’ borrower’s community investment programs. Thus the examples only reflect programs implemented prior to 2004.

Geoenergía de Guanacaste, Costa Rica: Donations to Local Schools and Training Local Workers Community Investment Program The principle activity of Geoenergía de Guanacaste´s (GdG) community investment program is to provide donations to local schools and community organizations. The company submitted a list of approximately 95 donations made since 2000 to various local schools and community groups. Donations include school sports uniforms, school supplies, and school infrastructure materials. For example, the company provided the construction materials needed to rebuild the local kindergarten in Bagaces and contributed funding to the Guayabo school board to help pay for the construction of the school gymnasium roof. They also provided the uniforms needed for the adolescent soccer team from Fortuna de Bagaces to participate in the regional soccer championship. In addition, GdG hosts tours for university groups and school age children to showcase their clean, well-kept facility and highlight the importance of clean energy. Background In 1998 the Inter-American Development Bank approved the financing of a 27 megawatt geothermal plant, the first private sector energy project in Costa Rica to be built on the basis of a contract awarded through competitive bidding. The project was also the first in the country under the terms of a 1995 law designed to encourage private investment in the energy sector. The project company is Geoenergía de Guanacaste (GdG). At the time the IDB approved the project, the main project sponsors were Oxbow Power and Marubeni Corporation. Oxbow Power Corporation has since sold their interest in the facility to Marubeni. The power plant sells its entire electricity output to the Instituto Costarricense de Electricidad (ICE) under a 15-year power purchase agreement, after which the ICE will become owner of the plant. The plant is located in a geothermal field in the province of Guanacaste in northwestern Costa Rica. For additional information on the project see http://www.iadb.org/pri/projectSummary.cfm?ProjectNumber=CR0115. Corporate Culture and Management Support The primary project sponsor, Marubeni, is a Japanese company that is involved in community investment programs (CIPs) in many of its projects. The company has noted that the programs receive strong executive management support and that the decision to support local schools is an easy one that everyone can get behind.

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Community Investment Programs Associated with Private Sector Infrastructure Context The facility is located near Fortuna in the province of Guanacaste in the northwest of Costa Rica (about 50 miles south of the border with Nicaragua and 3 hours driving from the capital city of San Jose). The province is predominately agricultural, with coffee being the primary good. The area is near a volcano, making for poor soil. There is a solid middle class but extensive poverty in the area. The facility employs 95% of its staff from local communities. These local employees previously had no training and worked in occupations such as farm hand, fisherman, and taxi driver. Many employees have children in the surrounding public schools and this direct involvement and close ties to the local communities and schools provide for an open and active flow of information regarding community investment programs and opportunities. Implementation The business development group for Geoenergía de Guanacaste made the initial contacts in the community, identified community leaders, and set up meetings to introduce the GdG staff. A two-person committee consisting of the plant manager and operations manager established the program guidelines and administer the program. The community leaders and schools send informal requests to receive feedback from the committee in designing their request. Once a formal request is made for assistance, given the nature of the request made, the committee may pull in different people to assist in the evaluation of the request. For example, an engineer may be required to evaluate the appropriateness of the materials requested with respect to the need identified by the community. The company noted that many times, the community has identified a problem but requires assistance in identifying the appropriate corrective action. Evaluation According to the company, the communities understand the goals of the program and there is little need for extensive documentation. In fact, Geoenergía de Guanacaste is very resistant to using its community investment programs as “publicity stunts” and explicitly avoids making use of publicity, newspaper notices, media events, and maintains the implementation as informal as possible. The communities have been reported to be very satisfied with the program, with a central part of the satisfaction owing to the fact that the communities believe that GdG is not implementing the programs just because they have to. Benefits The company cited the benefits of implementing community investment programs as high employee moral and the desirability of employment by Geoenergía de Guanacaste, currently the second largest employer in the area. They also noted that upon starting up and having to staff the facility, some people were skeptical of the unknown company, and that people were hesitant since it was not an Intel or IBM associated with hightechnology jobs. However, due to GdG’s reputation of paying a decent salary, good working conditions, and the policy of giving back to the community, the employees have spread the message that Geoenergía de Guanacaste is a great company and asset to the community.

Grupo Guascor, Brasil: Company and Employee Donations to Schools, Churches, and Orphanages Community Investment Program Guascor’s facilities in Sao Paulo, Para, Rondonia, and Acre make various donations and employees volunteer time to local schools, churches, and orphanages. The programs at each of Guascor’s facilities are supported out of the central budget, with monthly donations averaging US$ 2,000.

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PRI Environmental and Social Guideline Background In 2000 the IDB approved the North Energy project consisting of power generation projects to serve very isolated towns not connected to the electricity grid in the northern states of Pará, Rondônia and Acre of Brazil. The project includes the installation, operation, and maintenance of 267 diesel engines for power generation with a total capacity of 125 MW in 82 cities. Guascor do Brasil Ltda is developing the project and the electricity produced is being sold under Power Supply Agreements with the respective State's distribution company under 12-year or 15-year contracts. See For additional information on the project see http://www.iadb.org/pri/projectSummary.cfm?ProjectNumber=BR0316. Corporate Culture and Management Support The company explained that facilities are encouraged to implement community investment programs in a decentralized fashion, with each program designed and implemented by the facilities in response to local needs and conditions. The motivation for implementing the programs is the “right-thing-to-do” rather than the “business case.” However, they noted that while the motivation is being a “good neighbor,” once the decision to initiate social programs is made, then the type of program will take advantage of the business strategy. The company also cited the example that if a certain school or hospital is unable to pay for its energy, Guascor will use the money set aside for social programs to provide the energy free of charge. Context The northern Brazilian states of Pará, Rondônia and Acre of Brazil are within the Amazon region of Brazil. The areas are characterized by extremely remote rural areas and difficult living conditions. The poverty in this region is arguably more extreme that in other areas of Brazil, making the voluntary contributions by private companies a significant driver of social programs. Activities The community investment programs and activities are implementation by the human resources department of each facility and support by the company as a whole. Associated to Abrinq’s Foundation: Abrinq is children friends’ organization founded in 1990, year of the Children and Teenagers Status enacting. Guascor is one of the companies that support the project named “children friends’ company” whose the objective is to involve companies in a social act in pro of children and teenagers’ specially to prevent and eradicate their work. Such program was cited in the publication Addressing Child Labor in the Workplace and Supply Chain by the International Finance Corporation – IFC, entity tied in to Mundial Bank, as an example of experience against children’ labor. Donation to Abraq Orphanage, Sao Paulo: In the Sao Paulo headquarters, the program is of a completely voluntary nature with the company matching employee donations. There are 50 employees, all of which reportedly contribute. An estimated 20 to 30 employees schedule their time to volunteer in support of a children’s foster home (Abraq). The program originated from the company president who knew of the local orphanage and brought the idea to the Sao Paulo facility. The objective of the program is to stimulated employee social responsibility. Donation to Schools and Churches, Para: In the Para facility, the Guascor facility helps 23 municipalities with donations of money, and gifts such as bicycles to be used as auctions and bingo fundraisers. The schools and local churches of the municipalities send letters requesting assistance and the requesting institutions are then visited and evaluated by the directors of the program. The projects demonstrating the most need, in both the conditions of the school or facility and the circumstances of the municipality, are supported. Distribution of items is a challenge since a boat or airplane is needed to access the very remote areas.

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Community Investment Programs Associated with Private Sector Infrastructure The local administrators explained that the programs are promoted out of goodwill rather than out of a profit motive or for a desire for enhanced corporate image. The working conditions at Para were also sited as part of the social responsibility program, particularly for AES’s training program, upward mobility within the organization, and benefits for workers and their families. There is also an ecological program to protect the area around the power plants in an effort to create a buffering park area. In addition, during Easter, chocolate eggs are distributed to the local churches and kindergartens. Donations to Orphanage and Hospital, Rondonia: In Rondonia, the facility makes monthly donations of milk to a children’s orphanage “Lar Fabiano de Cristo” and donates disposable diapers to a public hospital “Cosmi e Damiao.” The administrative managers made the decision of where to make the donations. In addition, during Easter, local children are given chocolate, and toys are donated during Christmas and the Day of the Children (Dia das Criancas). The program administrators ask the employees of the facility to identify the children with the most need. The program administrators explained that the rational behind the program is to help the local communities rather out of goodwill and there is no marketing of the programs. Subsidized Energy and Donations to Children, Acre.In the Acre facility, there is a company-led program and an employee-led program. The company program consists of paying the energy bill for two hospitals for the exceptionally sick. In addition, other institutions may be provided electricity instead of receiving a direct financial donation. In addition, they make donations to local children, including toys, cloths, or food, depending on what is deemed most appropriate. The facility makes the purchase and delivers the items itself as an effort to avoid corruption. Management decides what programs to support and the 92 employees all assist with implementing the programs. The employee program consists of employees giving a sum of money for toys donated to local churches and schools. Similarly, if an employee is in need of assistance not just in Acre but in all Guascor‘ facilities, they may request financial assistance and the company supported by the headquarter in Sao Paulo will help given medicines, paying doctor appointments and so on. The donations are not advertised outside of the company and are done informally via a direct visit to the churches or schools with which there is an established relationship.

Redesur, Peru: Supporting Education, Health and Culture in Schools Along Transmission Lines Community Investment Program Redesur supports education through providing financial assistance to local schools for education, health, and cultural programs. Additional programs include initiatives on health and a written agreement of cooperation between the Redesur and the equivalent of the Parent Teachers Association (Associacion de padres de Familia del Centro Educativo). In addition, Redesur has committed to hiring local neighborhood or community groups as labor rather than contracting out to other companies. Background In 2000 the IDB approved the project by Redesur consortium to upgrade and construct a transmission system consisting of 431 km of 220 kV transmission lines, two new substations, and extensions of two existing substations in southern Peru. Redesur is responsible for the operation of the resulting system for a period of 30 years after a 2-year maximum construction period. Red Eléctrica de España, S.A. is the principle sponsor. See http://www.iadb.org/pri/projectSummary.cfm?ProjectNumber=PE0210 for additional information on the project.

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PRI Environmental and Social Guideline Corporate Culture and Management Support The principle sponsor, Red Electrica of Spain has been certified in several management systems that affect all levels of the organization and which may be considered good practices. These include: • • • •

ISO 9001 (Quality Management System) ISO 14001 (Environmental Management System) EMAS (Eco-Management and Audit Scheme) OHSAS 18001 (Occupational Health and Safety Management System)

Redesur receives much of the corporate culture and management support for environmental and social initiatives by the sponsor Red Electrica. This results in a similar corporate culture of using progressive good practices and management support for community investment programs. Context Redesur’s community investment programs focus on the communities along the transmission lines. The lines, transverse almost 500 km, cross through very rural communities in severe poverty – estimated household income may average $300 to 400 annually. Some of the areas served are in the Andean mountains and reach an elevation of 4000 meters in altitude resulting in severe cold during the winters. Many households survive on subsistence agriculture, with the department of Puno on the border of Bolivia being identified as one of the areas of more extreme poverty. Activities The main focus of the program is in supporting education through providing financial assistance to local schools, many of which have no electricity and are located at a significant distance from the children’s homes. The Redesur company, in line with the Spanish sponsor Red Electric, have identified education as fundamental to long-term change and aim to contribute to a resource gap not currently being filled by the government of Peru. This focus on education, which is inherently a long-term investment, is in line with the company’s perspective of operating a 30-year concession. The rational is that they have made a commitment to be operating in the area for the long term and hope to see the results of investment in education. The donations and activities implemented by Redesur during 2002, include: • Outreach to beneficiary communities • Donation of school supplies • Watercolor Contest • Folkloric Dance Contest • School Libraries Donation • School First Aid Kit Donation • Educational Campaigns –Health • Christmas Gifts to Schoolchildren • Program Evaluation Implementation Redesur’s relatively small staff of 18 makes for tightly integrated management of the community investment programs. Where necessary, all employees may participate in some form. The programs are lead and administered out of Arequipa office with two people from community relations and the environment department administering the programs. Redesur’s community investment program is managed under a detailed management plan for community relations. The Community Relations Management Plan was submitted as part of an integrated document containing two other management and action plans: environmental management and health and safety A- 5


Community Investment Programs Associated with Private Sector Infrastructure management. While the content of these additional management plans is outside the scope of this case study, it highlights the possible benefit of using the environmental management systems model or approach for facilitating social issues. It may be argued that once management systems have been established with the necessary planning of objectives, goals, associated action plans, budget, and reporting mechanisms, the system may be taken advantage of and maximized to facilitate the implementation of community investment programs. Thus, the time, effort, internal capacity building, management support, and internal integration of such environmental and health and safety activities may be efficiently capitalized on for use in implementing social activities. This suggests a positive connection between a company having experience with ISO 9001 or ISO 14001 and an equally structured community investment program. Benefits There are two explicit objectives of Redesur’s community investment program. The first is an outgrowth of altruism and the desire to be a “good neighbor” with the objective of “supporting services and programs in health, education, and culture to give attention to the priority needs of the urban and rural population located in the area of influence of the project.” This “right-thing-to-do” motivation was identified as the principle driver behind the program. The second objective is to “motivate the population to take care of the infrastructure of the company, maintaining the area of the project clean and safe.” This second objective highlights that one of the resulting benefits of the community investment programs to Redesur is the creation of community allies that are less likely to damage the infrastructure assets. The accrual of benefits to Redesur such as community allies permitting maintenance and secure access to transmission right of ways may be considered more of a “business case” motivation. The dual nature of benefits resulting from Redesur’s community investment program highlights the multiple motivations that form the spectrum of corporate justifications for investing in communities. It may be argued that community investment programs that provide for benefits both to communities and the company are not only more successful but more sustainable since a “win-win” outcome is easier to justify and maintain regardless of management changes or economic downtowns.

Termobahia, Brazil: Donations to Support College Entrance Exam Program and Sewing Machine Cooperative Community Investment Program Termobahia made donations to a College Entrance Exam Assistance program in 2002 and a sewing machine cooperative in 2003. Background In 2001 the Inter-American Development Bank approved the Termobahia co-generation power project which entails the development, financing, construction, operation and maintenance of a natural gas fired, combinedcycle co-generation facility located in Mataripe in the state of Bahia, Brazil. The facility produces approximately 190 MW of electricity and approximately 350 metric tons/h of steam. The sponsors of the project are ABB Equity Ventures (ABB EV), Petróleo Brasileiro, S.A., Brazil’s national oil company, Petros and EIC Power. The sponsors are developing the project through Termobahia S.A., a special purpose company. See http://www.iadb.org/pri/projectSummary.cfm?ProjectNumber=BR0354 For additional information on the project.

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PRI Environmental and Social Guideline Implementation Termobahia has 12 employees, making administering the community investment programs relatively simple. A team of 3 people receives requests from partner organizations, evaluates and selects the programs, and provides program evaluations to executive management. Termobahia expressed that the motivation for supporting its community investment program was out of a sense of responsibility to develop the region since they are “from the region.” College Entrance Exam Assistance (Pre-Vestibular Sao Francisco Do Conde): Termobahia developed a concept for program implementation in partnership with two partners. Termobahia provided the financial resources, Serviço Social da Indústria monitored and controlled for compliance of program objectives, and the City Hall of São Francisco do Conde implements the program. The Social Program Agreement was signed among the three partners in 2001. The project was proposed by S. F. do Conde Education Seretariat that was already implementing the program in the municipality. Financial support was required to go forward and increase the number of students. This type of program is described as unique in the area and is expected to lay the groundwork for future similar social programs. The objective of the program was to prepare students with professional educational guidance enabling students to pass successfully the colleague entrance exam (“Vestibular”) in order to provide access to public universities. The beneficiaries of the program include 100 students of São Francisco do Conde of intermediary degree. The program was completed in December 2002 with success, as indicated by an increase of 31% of the students that were approved in private and public universities. The program had duration of one year (January 2002 to December 2002). Sewers Cooperative program: During the months of May and June of 2003, Termobahia implemented a social program, consisting of the donation of industrial sewing machines to the Cooperative of Sewers of Caípe, created and supported by Landulpho Alves Refinery (RLAM). The objective of the cooperative is to stimulate the regional economy, and specifically the communities round about RLAM, through the production of uniforms to RLAM, its contractors and subcontractors. The beneficiaries of the program are the 25 persons who participate in the cooperative in the community of Caípe district. The program resulted in the generation of employment and income to the community of Caípe, through the re-qualification of the sewers and qualification of new participants of the Cooperative. The time frame of implementation of the program was 2 months (May and June 2003).

TGS (Transportadora del Gas del Sur), Argentina: A Long History of Community Investment Programs Community Investment Programs TGS’s community investment program includes continued support of the Foundation “Fundacion Cruzada Patagonica.” The Foundation, founded in 1979, runs a school-orphanage, provides legal council to indigenous communities in several areas of Argentina, and promotes the use of didactic production techniques in primary schools in rural areas of Rio Negro and Neuquen. In addition, the employees volunteer time to renovate two children’s shelters with repairs and heating and TGS makes financial, material, and food donations. Background In 1998 the IDB approved financing TGS’s capital investments for the next five years to expand the company’s transportation system and gas processing facilities, to maintain the reliability and safety of the pipeline and processing facilities, to implement the most advanced technology in the operations and administrative areas, and the acquisition and/or development of additional upstream gas service assets. For additional information on the project see: http://www.iadb.org/pri/projectSummary.cfm?ProjectNumber=AR0235.

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Community Investment Programs Associated with Private Sector Infrastructure Corporate Culture and Management Support According to the company, the nature of the investment and assets of TGS -- pipelines that transect communities -- requires trust and a close relationship with the communities that reside along the pipeline route. In addition to its community investment programs, the company highlighted several possible indicators of TGS’s commitment to Corporate Social Responsibility. TGS is ISO 9001 and ISO 14001 certified: There is a relationship between corporate social responsibility and the ISO certifications that require compliance with safety in operations and interaction with local fire and police in emergency preparedness activities. It was noted that while the ISO certificates do not necessarily require any direct relationship with communities or community investment program, the implementation of management systems with the goal of continuous improvement may serve as a first step, supporting role, or facilitator to implementing more progressive policies such as structured community investment programs. TGS is currently providing resources to support the Global Reporting Initiative (GRI): The Global Reporting Initiative (GRI) is a multi-stakeholder process and independent institution whose mission is to develop and disseminate globally applicable Sustainability Reporting Guidelines. These Guidelines are for voluntary use by organizations for reporting on the economic, environmental, and social dimensions of their activities, products, and services.1 Participation with GRI is significant in that it is voluntary and currently the most recognized global reporting mechanism that includes environmental and social issues. TGS is a stakeholder member of the World Business Council for Sustainable Development (WBCSD) Argentina Network: The WBCSD’s Regional Network is an informal confederation of more than 40 independent organizations. The regional BCSDs (Business Council for Sustainable Development) and partner organizations are united by their shared commitment to provide business leadership for sustainable development in their respective country or region. The goals of the Argentina network are 1) To promote sustainable development and contribute to change, and 2) To educate and enlighten, and stimulate private initiatives towards sustainable development.2 Implementation The implementation of the community investment programs at TGS originates from executive management and is highly structured, institutionalized, and integrated with the legal and public affairs departments administering the program. TGS’s more structured implementation stands out compared to that of the other case studies and may be due to the fact that TGS is a large company3 that administers its own affairs without the presence of a parent company or project sponsor and the long history of the programs, notably Fundacion Cruzada Patagonica. Activities TGS has multiple activities in effect, including the programs implemented in partnership with the Foundation “Fundacion Cruzada Patagonica” and the employee volunteer program.

1

www.globalreporting.org www.wbcsd.org 3 TGS is the main gas transportation company in Argentina, operating the largest pipeline system in the country and in Latin America with more than 7,400 km (4,598.3 miles) and 62.5 million of cubic meters per day of transportation capacity (www.tgs.com.ar) 2

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PRI Environmental and Social Guideline Foundation Cruzada Patagonica: In 1979 Fundacion Cruzada Patagonica was formed and an educational agronomy center was built (Centro de Educacion Integral San Ignacio). The center has grown over time to include classrooms, warehouses, a chapel, carpentry workshops, a gymnasium, and hostels. The school provides free room and board to 200 students that participate in a specialized high school vocational program. Students graduate as Profesional Technicians of Agropecuraia Production. Women have been included in the program by acquiring the necessary boarding room through a partnership with the local bishop. Volunteer Programs: The programs of current focus in the bimonthly Sumandonos magazine include the “Vaquitas Lecheras” and “Agustina Micaela” shelters for children, single mothers, and elderly. The shelters serve 240 and 160 persons respectively. These programs originated out of the suggestions of collaborating NGOs that identified these shelters as good matches due to compatibility with the financial ability and skills of TGS and its volunteers. The program uses the core business skills of construction and gas connections with TGS supplying financial support to the projects and TGS’s employees providing their skill and labor in making shelter renovations such as painting and reparations of gas ovens and water supply. In addition, TGS and its employees donate food, toys, school supplies, and kitchen supplies. In selecting projects, the objective has been to bring to completion a specific project or program rather than having several initiatives pending.

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Other Examples of Good Practices

Below are some examples of community investment programs in different parts of the world and in different sectors. Many of the examples below have received prestigious awards for their innovative and effective delivery of benefits and provide meaningful opportunities for private sector involvement in communities.

Manos Unidas, Chile Shell Chile, a subsidiary in Chile of the Royal Dutch/ Shell Group, is one of the few companies in Chile to have established a company supported volunteer program. The program, "Manos Unidas", is an employee-initiated and employee-managed initiative that encourages Shell employees to work on a specific project to help re-build a low-income community on the outskirts of Santiago. The project has received significant recognition and praise from non-profit groups, media and local government authorities and has been hailed as a model for other community minded companies. The project is managed by a volunteer group of employees and receives support and involvement from every level of the organization, including the Country Director and other Senior Executives. To date, Shell employees have worked together with local residents to construct a children's playground, a multi-purpose sports field and to refurbish the community's central plaza. When the project was initiated, community residents were surveyed regarding their interests and preferences, then actively engaged to work together with Shell employees and currently maintain the areas that have been rebuilt.

Natura Cosmeticos, Brazil A leader in corporate social responsibility in Latin America, Natura Cosmeticos is known for its commitment to the communities in which it operates, an empowered workforce, and its support of human rights issues. To ensure these commitments, the company has created a separate department specifically charged with creating, identifying, and developing social responsibility programs. As part of its program, Natura has created partnerships with schools, government organizations, and non-profits to enhance the quality of children's lives and the public education systems in the regions in which it operates. One component is a partnership with the Abrinq Foundation for Child's Rights that mobilizes its network of consultants and suppliers who spend volunteer time to design, produce and sell products the sale of which funds the partnership’s child labor

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Community Investment Programs Associated with Private Sector Infrastructure program; includes an anti-child labor clause in its supplier agreements; places a child-friendly seal on its products; and advocates issues such as the Brazilian Child and Adolescent Bill of Rights. Natura's employees, suppliers, and consultants are also provided with opportunities to perform volunteer community service, and the company makes its facilities, management expertise, and administrative capabilities available to numerous non-profit organizations. The company also demonstrates its commitment to environmental sustainability through its use of refillable packaging.

The D.C. Central Kitchen, Inc., And Fresh Start Catering, Washington DC, USA D.C. Central Kitchen converts donated foods into balanced meals while at the same time training unemployed individuals in basic culinary skills. The program uses refrigerated vehicles to safely and efficiently rescue surplus food from restaurants, caterers, hotels, cafeterias and other food service businesses. Once picked up, this donated food is brought to the kitchen and used to prepare 3,000 meals every day. The kitchen trains homeless and unemployed adults in the culinary arts and prepares them for employment in the food service industry. Meals are delivered to 130 agencies including homeless shelters, community and your centers, children's after-school programs, and senior-citizen lunch programs throughout the Greater Washington DC area. Since 1989, DC Central Kitchen has converted 3.5 million pounds of diverse donations into over eight million balanced meals. Fresh Start Catering is an outgrowth of the food rescue and job training missions of the D.C. Central Kitchen, and is an example of venture philanthropy. Established in 1996, Fresh Start employs men and women who have graduated from the Kitchen's culinary arts job training program and provides professional catering services to all segments of public organizations, private industry, government, churches, and individuals. Proceeds from the catering business (an estimated $300,000 per annum4) helps fund the Kitchen's charitable programs, creating an on-going, repetitive cycle of training, support, and mutual reliance throughout the year.

Dioguardi Group Community Initiatives Program, France and Italy CSR-Europe Business Best Practice Case Study This construction firm’s social responsibility initiatives are inspired by company founder Gianfranco Dioguardi’s belief that “a builder should conceive the enterprise as a social tool, a cultural laboratory to stimulate interaction with the community, revive urban areas, respect their heritage, sow the seeds of innovation, fight against exclusion.” Programs have been established in Italy and France and fall under three general categories: School Adoption. In 1991, Dioguardi adopted Lombardi high school, in the rundown San Paolo borough of Bari. The program includes donations of sports and IT equipment, as well as sponsorship of scholarships, cultural events and resources (newsletters, plays, etc.). Work-site as a school. Dioguardi formed partnerships with vocational training institutes to develop the professional skills of young unemployed people. After being assessed for their motivation and attitudes towards working on a building site, candidates are given six to nine months of practical and theoretical training. Graduates of the program may be hired by Dioguardi, placed with other builders, or assisted in forming an independent co-operative. Work-site as an event. Combines both Dioguardi’s entrepreneurial and social roles by opening up the building yard as a meeting place for the company and the community. A continuous and intensive communications

4

“Charity For Profit.” Carl M. Cannon, National Journal. Friday, June 16, 2000

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PRI Environmental and Social Guideline program is aimed at local residents (open days, electronic bulletin boards, newsletters), schools (guided visits, 3D models) and the young unemployed, through the ‘work-site as a school’ scheme. The company acts on the belief that to be successful, a program of corporate citizenship must be grounded in the culture of the enterprise and considered both as an investment for the long-term improvement of society, and as a tool to enhance the company image. In pursuit of its social responsibility objectives, Dioguardi forms strategic alliances and partnerships with public authorities, religious, cultural, civil and voluntary organizations.

Manchester Airport Community Relations Program, United Kingdom Recognizing that its success is inextricably linked to the region that surrounds it, one of the airport’s strategic objectives is to contribute to the economic growth of the North West in the United Kingdom. This is reflected in the company’s social responsibility initiatives which include programs on the arts, community sponsorship, equal opportunities, environmental improvement, Community Trust Fund and education. The Education Program’s objective is to provide support and information for teachers, pupils and students through the production of balanced, high quality material. Whenever possible, Manchester Airports' Education Program is developed in collaboration with teachers and local education authorities. This ensures that all activities are directly relevant to pupils and students. The company is also committed to the 'Investors in People' program that provides its employees volunteer opportunities that enhance skills development that may not be available in their job-related tasks. The program also encourages staff to become involved in activities within the local communities, thus promoting a better understanding of the needs of local people as well as the community impacts of the Airport's operation. Specific education programs have also been developed to help generate interest among young people in science and technology, areas where there are significant skill shortages. Environmental improvement grants are given to schools to help improve the local environment and enhanced by providing specialist on the airport’s staff who work directly with teachers and pupils on environmental and ecological projects.

British Telecommunications-ChildLine Partnership, United Kingdom The partnership is one of the company’s many programs under BT in the Community, its social responsibility initiative. Since its establishment in 1986, ChildLine has provided confidential counseling services 24 hours a day on such issues as physical and sexual abuse of children, bullying at school and unwanted pregnancies. Prohibited by UK law from donating free or even discounted phone charges to the counseling service, BT provides free London premises, a telephone system, expert technical advice and ChildLine's unique and memorable toll-free number— 0800 1111. Information about ChildLine has also been included with customer bills, helping to build up a small donor base. Since receiving its first call in 1986, the service has provided assistance to more than 750,000 children and receives approximately 3,300 phone calls each day. ChildLine has successfully advocated for the use of screens and closed-circuit TV during cross-examinations of children as witnesses in court cases and has urged for the establishment of a national register for convicted pedophiles.

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Community Investment Programs Associated with Private Sector Infrastructure

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PRI Environmental and Social Guideline

ANNEX B Sources of Additional Information This annex provides links to organizations that have information that can be used in the development of company investment programs. Many of these are specialist organizations or institutions that may be able to provide further assistance. The information is sub-divided into: B.1 - Philanthropy, Volunteerism and Community Partnerships B.2 - Corporate Social Responsibility Networks B.3 - Evaluating Success: Benchmarking

B.1

Philanthropy, Volunteerism and Community Partnerships

The organizations below are involved in corporate philanthropy, volunteerism, and establishing community partnerships for community investment programs. They types of organizations listed below include nongovernmental organizations, academic institutions and “think tanks,� consultancies, and government sponsored organizations. The list below is by no means exhaustive, but simply a sampling of some of the organizations that may be able to provide information or inspiration to a company wishing to develop their own community investment plan. They are listed in alphabetical order. Business Community Connections http://www.bcconnections.org.uk/ BCC is a not-for-profit organization which assists in developing strategic partnerships between business and community based organizations (CBOs). The Community Partner Directory provides a list of organizations with which businesses interested in supporting charitable activities can form partnerships. BCC provides information on how to set up programs such as an employee volunteering or community sponsorships. Business Partners for Development, http://www.bpdweb.org The Business Partners for Development (BPD) initiative was designed to study, support and promote strategic examples of partnerships involving business, government and civil society working together, with the World Bank Group as an equal partner, for the development of communities around the world. Canadian Centre for Philanthropy http://www.ccp.ca/ The Canadian Centre for Philanthropy is a national charitable organization dedicated to advancing the role and interests of the charitable sector for the benefit of Canadian communities. (See Imagine). The Canadian Ethics Centre, http://www.ethicscentre.com/ The Canadian Ethics Centre is a volunteer-driven, charitable organization that works with organizations and companies dedicated to creating and maintaining an ethical corporate culture. Caux Round Table, http://www.cauxroundtable.org/ A group of senior business leaders from Europe, Japan, and North America who are committed to the promotion of principled business leadership by identifying and promoting solutions to global issues. Publications are offered in eleven languages: Arabic, Chinese, Danish, German, English, Spanish, French, Japanese, Polish, Portuguese, and Swedish. B-1


Community Investment Programs Associated with Private Sector Infrastructure CIVICUS: World Alliance for Citizen Participation http://www.civicus.org/ CIVICUS is a nonprofit membership organization that works to strengthen worldwide citizen participation and civil society. The organization's purpose is to "help nurture the foundation, growth, protection, and resourcing of citizen action throughout the world and especially in areas where participatory democracy, freedom of association of citizens, and their funds for public benefit are threatened. Its “Corporate Engagement Project” seeks to broaden the business sector’s involvement with civil society and social development. Committee to Encourage Corporate Philanthropy http://www.corphilanthropy.org/ A national business forum of CEOs with an agenda focused on corporate giving. The Committee pursues dual advocacy and facilitative roles in the cause of expanded strategic philanthropy. CommunityWealth.org http://www.communitywealth.org/ CommunityWealth.org is a website created by Share our Strength to serve as a clearinghouse of information and resources for practitioners and others interested in the field of community partnerships. CommunityWealth.org represents an effort to create a centralized, online resource and dialogue about community wealth. Profiles of almost 100 partnerships between non-profits and businesses are presented as well as information on venture capital philanthropy, cause-related marketing, social entrepreneurship, and nonprofit business ventures. Conference Board, http://www.conference-board.org/ This independent membership organization creates and disseminates knowledge about management and the marketplace to help businesses strengthen their performance and serve society better. It helps member companies and stakeholders anticipate and respond to the increasingly changing global economy through the development and the exchange of knowledge. The Copenhagen Centre, http://www.copenhagencentre.org/ An independent, autonomous institution established by the Danish government that recognizes the need for governments to encourage corporate citizenship. TCC supports voluntary partnerships between government and business for social improvement. The Corporate Citizenship Company, http://www.corporate-citizenship.co.uk/ The Corporate Citizenship Company is a consulting firm that assists companies in their attempts to become active corporate citizens and meet the aspirations of stakeholders and society. Publications are available in a variety of different languages. Corporate Citizenship Unit, http://users.wbs.warwick.ac.uk/ccu/ The Corporate Citizenship Unit (CCU) aims to bring together diverse people from business, government, and civil society organizations for research and teaching in corporate citizenship

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PRI Environmental and Social Guideline Imagine http://www.imagine.ca/ Canada’s national program to promote public and corporate giving, volunteering and support to the community. Imagine is specifically geared to encourage and promote partnerships between the corporate and charitable sectors. National Business Initiative, http://www.nbi.org.za/ Launched by Nelson Mandela in 1995, NBI operates as a partnership between business and government. Its focus is on the contributions of the business world to socio-economic delivery, employment creation, and delivery of basic services within local governments. National Committee for Responsive Philanthropy, http://www.ncrp.org/ A nonprofit organization dedicated to making philanthropy more responsive and available to people with the most need, least wealth and opportunities. The web site features links to other resources as well as publications. Peru 2021, http://www.peru2021.org/ A non-profit entrepreneurial association whose objective is to promote the creation and diffusion of the shared national vision of a society that is built on the highest values and a positive attitude. Based on its commitment to this vision, Peru 2021 promotes initiatives in the areas of education, social awareness and the environment. Social Venture Partners http://www.svpseattle.org/ SVP is a non-profit, volunteer-driven organization dedicated to addressing social and environmental issues by providing philanthropic organizations with grants through a venture capital model. Since 1997, over $2,000,000 in grants have been awarded and 10,000 hours of volunteer time and expertise to 20 nonprofit organizations. SVP’s membership is made up primarily of business and information technology professionals.

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Corporate Social Responsibility Networks

In addition to looking at examples set specifically in the area of philanthropy and volunteerism, it may be useful for an organization to look how organizations are approaching the more general concept of corporate social responsibility. The organizations below, which are a mixture of types, are involved with social corporate responsibility either as a primary function, or as part of a larger effort in sustainable development. ACCION Empresarial, http://www.accionempresarial.cl Based in Chile, this organization is part of the International Forum Empresa. It promotes corporate social responsibility business harmony between various companies and communities in Chile. The web site is entirely in Spanish. AccountAbility, http://www.accountability.org.uk/aboutus/default.asp AccountAbility supports organizational accountability and sustainable performance by connecting accountability practitioners, developing practical tools and standards, and supporting structured professional development.

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Community Investment Programs Associated with Private Sector Infrastructure African Institute of Corporate Citizenship, http://www.aiccafrica.com/ Focused on the continent of Africa, this nonprofit organization works with companies and organizations to extend corporate citizenship in Africa through the development of tailored, solution-oriented consultancy. AIM Center for Corporate Social Responsibility, http://www.aim.edu.ph/ The Asian Institute of Management’s Center for Corporate Social Responsibility is involved in case writing and research, program development, executive education and training. Alianza para la Responsabilidad Social Empresarial (AliaRSE), http://mx.groups.yahoo.com/group/ResponsabilidadSocialEmpresarial/ AliaRSE is an alliance of organizations formed to promote corporate social responsibility in Mexico. Aspen ISIB, http://www.aspeninst.org/ The Aspen Initiative for Social Innovation Through Business (Aspen ISIB), a policy program of the Aspen Institute, encourages business to engage and invest in solutions to business and social problems. Business for Social Responsibility http://www.bsr.org/ BSR is a U.S.-based global resource for companies seeking to develop and enhance their community involvement policies and practices. Member companies gain access to practical information, research, education and training programs, technical assistance and consulting on all aspects of corporate social responsibility. Business in the Community http://www.bitc.org.uk/ Business in the Community is a nonprofit organization based in the United Kingdom whose mission is to "inspire business to increase the quality and extent of their contribution to social and economic regeneration by making corporate social responsibility an essential part of business excellence." BITC's has approximately 400 members including 75 of the U.K.'s top 100 companies. The Center for Corporate Citizenship at Boston College, http://www.bc.edu/corporatecitizenship CCCR is a corporate membership organization that partners with businesses worldwide to strengthen their community relationships and investments. The Center offers courses and a certificate program in Corporate Community Relations and Global Citizenship and maintains the Resource Center on Community Relations, with a library of more than 1,000 corporate and 400 non-corporate community relations related materials. The Corporate Responsibility Group http://www.corporateresponsibilitygroup.com/ The Corporate Responsibility Group is made up UK companies who are committed to adopting a social, ethical and environmentally responsible approach to business practice and have a strong track record in developing corporate social responsibility initiatives. Formed in 1987, the group acts as a forum for corporate professionals working in the field of community involvement and corporate social responsibility to discuss relevant issues and enhance business practice. The Group brings together corporate social responsibility practitioners from a wide range of business sectors and enables members to share experiences and develop strategic thinking.

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PRI Environmental and Social Guideline CSR Europe, http://www.csreurope.org/ A business-to-business network in Europe, CSR Europe’s mission is to place corporate social responsibility in the conventional business practices, helping companies achieve profitability, sustainable growth, and human progress. CSR Europe provides information, offers programs for business managers, and facilitates dialogue between stakeholders. CSRwire, http://www.csrwire.com/ CSRwire seeks to promote the growth of corporate responsibility and sustainability through solutions-based information and positive examples of corporate practices. The site has four core services: CSR press release distribution, corporate report links, CSR events promotion and CSR resources. CSR Europe http://www.csreurope.org/ CSR Europe is a European business network of CSR professionals based upon the sharing of CSR solutions and shaping the modern day business and political agenda on sustainability and competitiveness. The group maintains a database of hundreds of case studies of "best practices," and provides links to organizations working with businesses to tackle social issues. EMPRESA: Forum on Business and Social Responsibility in the Americas http://www.empresa.org/ A coalition of business organizations whose mission is to strengthen and establish national and regional business organizations committed to social responsibility in Latin America. EMPRESA provides a forum for information exchange, collaboration, education, networking and partnerships among these groups, their members and other sectors. It is currently active in Brazil, Chile, Panama, and El Salvador, and is assisting the establishment of similar groups in Mexico and Argentina. The website is available in English, Spanish, and Portuguese. Ford Foundation Corporate Involvement Initiative http://www.winwinpartner.com/ An information clearinghouse for business executives looking to increase profits and address common business challenges through investment in low-income communities. The site offers examples of major corporations’ successful win-win strategies. Foundation Center, http://fdncenter.org/ Fosters public understanding of the foundation field by collecting, organizing, analyzing, and disseminating information on foundations, corporate giving, and related subjects. Foundation for Business and Society, http://www.foundation.no/ Based in Norway, the virtual university’s mission is to bridge the digital divide and change business course through education. Courses are offered via the Internet in a variety of corporate social responsibility disciplines.

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Community Investment Programs Associated with Private Sector Infrastructure Fundacion Empresa y Sociedad, http://www.empresaysociedad.org/ A non-profit organization founded in 1995 to encourage and promote corporate community involvement in Spain. Fundaci贸n Empresa y Sociedad http://www.empresaysociedad.org/ A non-profit organization whose mission is to encourage and promote corporate community involvement in Spain. Founded in 1995, Fundaci贸n provides CSR consultancy services and helps companies integrate the concept of CSR in their overall business strategy, organization and culture. The organization emphasizes the investment of human, technical and financial resources to aid social development projects in welfare, health, education, and vocational training. Instituto Ethos de Empresas e Responsabilidade Social http://www.ethos.org.br/ The Ethos Institute of Business and Social Responsibility based in Brazil, this is an association of companies interested in developing their activities in a socially responsible manner, in a permanent process of evaluation and improvement. Although the web site has a few English pages, the majority of information is in Portuguese. Interfaith Center on Corporate Responsibility, http://www.iccr.org/ Composed of over 275 Roman Catholic, Protestant, and Jewish investors, the ICCR sponsors shareholder resolution discussions and promotes environmentally and socially responsible practices for companies. ICCR issue groups include energy and environment, equality, global corporate accountability, global finance and community economic development, international health and tobacco, and militarism and violence resolution. International Institute for Sustainable Development, http://www.iisd.org This institute produces recommendations on international trade and investment, economic policy, climate change, measurement and indicators, and natural resource management to make development sustainable. MHC International, http://www.mhcinternational.com/ A research and consulting company that focuses on CSR and international social development, poverty and employment issues. New Academy of Business, http://www.new-academy.ac.uk/ An independent school for business managers that aims to build a new future that is both just and enterprising. The New Academy engages in teaching, research, and organizational learning. The New Economics Foundation, http://www.neweconomics.org/ A research and policy think tank that challenges the current practices of economics and business in order to promote future ethical practices. Research areas include participatory democracy, local economic revival, and reshaping the global economy.

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PRI Environmental and Social Guideline Prince of Wales Business Leaders Forum http://www.iblf.org/ PWBLF is an international not-for-profit organization founded by HRH The Prince of Wales in 1990 to promote socially responsible business practices that benefit businesses and society and which help to achieve social, economic and environmentally sustainable development. It is active in 30 countries around the world. The PWBLF website contains a searchable database on socially-responsible business practices and cross-sector partnerships; electronic versions of the Forum's newsletter and summaries of its publications; and details of upcoming events. Public Affairs Council, http://www.pac.org/ Provides products and services that help member organizations become more effective in their public affairs activities, including research and information about international conferences. Social Accountability International, http://www.cepaa.org/ A charitable human rights organization devoted to improving communities and workplaces by generating appropriate socially responsible standards. The organization promotes understanding and implementation of such standards worldwide. SustainAbility, http://www.sustainability.com/ A strategic management consultancy and think tank dedicated to promoting the business case for sustainable development. The web site is available in German, Spanish, and Japanese. SustainableBusiness.com, http://www.sustainablebusiness.com/ Provides job postings, news briefs, and sustainability resources and event listing. World Business Council for Sustainable Development—Latin America Chapter http://www.sistema.itesm.mx/misc/bcsd-la/english/ingles.htm (English), or http://www.sistema.itesm.mx/misc/bcsd-la/home.htm (Spanish) WBCSD’s Latin American Chapter, interacts with the public, private and academic sectors, non-governmental (NGOs) and intergovernmental organizations, and mass media in order to promote sustainable development. It promotes communication and cooperation between the business community, government and civil society.

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Evaluating Success: Benchmarking

As discussed in the Section III of the report (design and implementation of community investment programs), it is important to evaluate the success of the community investment program in terms of its impact on the local community and on the company itself. More sophisticated tools for measuring impacts are available from organizations that have developed benchmarking models to assist companies in evaluating their programs. The section below lists some of the organizations that provide this service.

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Community Investment Programs Associated with Private Sector Infrastructure Business for Social Responsibility http://www.bsr.org/ BSR provides benchmarking studies and consultation services to companies seeking to develop or enhance their community involvement policies and strategies. The London Benchmarking Group http://www.ccinet.org/ This group, comprised of 18 UK companies, has developed a standardized system for gauging the social impact a company has in the community. The method places a monetary value on the ‘input’ costs of the company’s contribution, whether cash, time or in kind and assesses the ‘output’ between social impact, business benefit and additional resources. Center for Corporate Citizenship at Boston College http://www.bc.edu/cccr They developed the Standards of Excellence in Corporate Community Involvement (CCI) which, when used in conjunction with the Diagnostic Tools helps assess a company’s performance, develop a strategic approach to CCI and benchmark its progress over time. Business in the Community http://www.bitc.org.uk/ BitC uses its Principles for Corporate Community Investment as a guide for developing effective community initiatives, compare a company’s progress with others, and establish a convincing case for community involvement to the company’s stakeholders. Businesses may also conduct an on-line assessment of their program through BitC’s website. The Global Reporting Initiative http://www.globalreporting.org/ GRI was Established with the mission of developing globally applicable guidelines for reporting on economic, environmental, and social performance, initially for corporations and eventually for any business, governmental, or non-governmental organization (NGOs). These Guidelines are for voluntary use by organizations for reporting on the economic, environmental, and social dimensions of their activities, products, and services. The GRI incorporates the active participation of representatives from business, accountancy, investment, environmental, human rights, research and labour organizations from around the world. Started in 1997 by the Coalition for Environmentally Responsible Economies (CERES), the GRI became independent in 2002, and is an official collaborating centre of the United Nations Environment Programme (UNEP).

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community investment programs associated with private sector infrastructure projects  

private sector participation in implementing infrastructure projects is an important part in latin american and caribbean sustainable econom...