Corporate Social Responsability

CORPORATE SOCIAL RESPONSABILITY (CSR) IN PERU

Corporate Social Responsibility (CSR) in Peru is still poorly developed. There is no real consciousness among individuals and organizations about what CSR means and why it is important for society. There are just a few companies that have a truly 360 degrees CSR policy.

Even though Peru's economy has been growing fast in the last decade, Peru is a country with many tasks pending. Poverty levels are still high, basic necessities are unsatisfied for many people, there exists a serious deficit in strong institutions as well as in compliance of social norms and regulations; informality has been reduced but it is still high and community demands appear from time to time in order to offset the non presence of the State Government in sectors like public infrastructure, justice, health and education.

However, the first steps toward the promotion of CSR among society and private companies have been taken. An association comprised of 50 companies called "Peru 2021" has been created in order to promote and spread the strategic importance of CSR among companies' management.

CSR is much stronger in companies that deal with international trade as well as multinational corporations because of the effects of globalization. Customers in developed countries demand high levels of social and environmental standards and so local companies that show good practices of CSR benefit from a better access to those international markets.

The mining industry is also improving in this regard. This industry has a negative perception among the community because of some recent bad practices that have affected the environment. Mining companies will need to improve their planning and relationships with their stakeholders.

GOOD PRACTICES OF CSR

Good practices of CSR have been developed in some companies in Peru. Some examples of these include :

1. "Supermercados Wong", which is the largest company in the consumer goods retail industry in Peru. It is recognized because of its "excellence" to its customers. This company continuously applies customer loyalty strategies. It has been pioneer in house delivery, no asking for tips, no charge for bags, receives returns without questions or purchasing tickets, uses of bar codes, introduction of the bank in the supermarket (Money Market), creation of the "Wong Children Club" (more than 100 children affiliates), introduction of "Teleticket", interconnected system for selling theater or shows tickets inside the supermarket.

This company has also created a very good incentive system for its employees or "collaborators" in order to get them committed to the company: they have the possibility to build a career not just having a job, they are constantly trained in commercial practices. The company has been successful in creating a complicity between customers and employees in which each other give the better of him or her in a nice labor and service climate.

Recently, the company has also included the whole society as one of its stakeholders. For example, they have now a strong commitment to the environment. Some activities that the company have implemented are: recycling campaigns, collection of papers and bottles in association with other companies, use of biodegradable bags, etc. It has also a inclusive commitment to society: a number of people with special abilities (Dawn syndrome) are hired to work for the company. It also promotes a Carnival as part of the celebration of National Holidays in Lima, Peru.

2. REPSOL is the largest oil refining company in Peru. This company has been recognized because of its commitment to the environment and the community. As part of its environmental policies, REPSOL launched to the market the gasoline "Efitec", which purpose was the reduction of pollute gases that are emitted to the atmosphere. It was also beneficial to its customers as long as their cars improve in performance and functioning.

This company also promoted a tree-planting campaign in association with the local Government of Ventanilla (a local district in El Callao), resulting in 5,000 trees planted. Activities like this one are scheduled from time to time. Also, with the support of other institutions, REPSOL cleaned several beaches of the littoral from solid disposals and residuals. This commitment to the habitat was rewarded with the environmental certification ISO 14001.

With its employees, training is considered important for the company. Managers are sent to foreign universities like "Universidad Austral de Buenos Aires" to be trained in management skills and to the "Instituto Superior de la Energia" in Spain to learn about technical subjects.

Additionally, Repsol makes preventive health campaigns for its employees. The company included security or safety terms in the contracts and implemented a school for formation in safety issues. 12,324 hours of instruction were taught that benefited to 900 employees. A program called the "Friend Hands Volunteering Program" comprised of workers was created in order to do volunteering social activities. Together with the Non-for Profit Organization "Un techo para mi pais", REPSOL did community activities like: construction of housing modules for 15 families in extreme poverty in Ventanilla, Callao. In addition, REPSOL offers job opportunities for young people that live in Ventanilla and have limited economic resources. REPSOL also created an educational program that receives 250 students each year and grants the three best students with the possibility to do an internship with Repsol. They also offer scholarships to the best students in Ventanilla's schools. Repsol also provides lectures for prevention about sexuality, alcoholism and drugs problems among Ventanilla's schools students.

3. Backus Corporation is the largest company in the Beer Beverage industry in Peru. It is part of the SABMiller Group. Backus is recognized for its culture and economic contribution to development.

As a commitment to its customers, Backus