Reporting for SMEs: Learn from Small Pioneers

Dante Pesce, Executive Director of VINCULAR Center for Social Responsibility and Sustainable Developmnet

Catholic University of Valparaíso-Chiledante.pesce@vincular.cl

www.vincular.cl

GRI Global ConferenceAmsterdam, 27 May 2010

What drives Sustainability in Latin America?

• Market access (retention) and globalization, including raising expectations from clients for export oriented industries.

• Attraction of foreign investment, especially in capital intensive industries (extractives and energy).

• Active role of multinationals operating locally, including procurement policies, raising the bar for local players.

• Increasing pressure from local civil society and governments on best practice adoption.

Sustainability adoption by SMEs

• Large responsible company inducing adoption of best practices and trasferring competencies.

• Business association pushes CSR agenda through members, including SMEs.

• Ideal world: a mix of both…..plus government as partner.

CSR into SME project2004-2010

• Financial support fromIADB, Ministry of Economyand Business Association.

• Industry approach• Partnership with Industry Associations• Partnership with Government• Change in Public Policy• Scaling up strategy

Results• Change in Public Policy • 41 SME´s reporting, 74 reports in total

• 5 sectors considered (retail supplier, mining supplier, fruit exporters, wine exporters, manufacturing)

• 3 sector guides + 1 on its way (mining, fruit, manufacturing + Wine)

• During 2009, 5 SMEs reported for 4th time

• During 2009, 3 SMEs reached level A and 18 level B

• 2 SMEs awarded on CSR by SOFOFA (Nationa Business Association)

• 2 SMEs awarded the highest level by the National Quality Award

Examples

Examples

SOFOFA / 2 december 2009

Reporting for SMEs: Learn from Small Pioneers

IT for Responsible Procurement including Reporting option

IT for Responsible Procurement including Reporting option

Scaling up SME initiatives

Examples:

• Antofagasta Mining cluster with 3.500 suppliers.

• Falabella Holding and 5.000+ suppliers in 4 countries.

• Wines of Chile Industry wide SR initiative (45 SME wineries + cluster of 700+).

• Santiago Chamber of Commerce and 42.000 “State suppliers” database

Way forward and plans for Reporting

• Collaborating with GRI in convergence paper with ISO26000.

• Regional dissemination and capacity building project in Spanish speaking Latin America.• Funding by IADB• IADB CSR cluster• Local network• AILA + others

Thank you

Reporting for SMEs: Learn from Small Pioneers