The Diplomat
Ibero-American companies and institutions are committed to CSR (Corporate Social Responsibility) and this is strengthened within the organizational structure, since 63.3% claim to have a specific area in this area, as reflected by the III Observatory of Sustainability in Ibero-America , prepared by EAE Business School – belonging to Planeta Formación y Universidades -, CEIB and FIJE, and presented at the CEOE headquarters.
The day was inaugurated on Tuesday by the Ibero-American Secretary General, Andrés Allamand; the president of CEOE, Antonio Garamendi; the president of the Ibero-American Federation of Young Entrepreneurs-FIJE, Matías Fernández, and the dean of EAE Business School, Antonio Rodríguez.
Most companies are committed to CSR, although at a budgetary level there has been a slight decline in recent years. 11% have a budget allocated exclusively to CSR actions of more than 1% of their income, while for 38% this item is less than 1% of the turnover figure.
This is one of the conclusions of this study, in which opinions have been collected from more than 770 institutions and companies from all sectors in 21 Ibero-American countries, and which aims to offer a vision of the current situation and trends in CSR matter in the business environment.
The consolidation of CSR in the organizational structure is due to the increase in obligations and regulations established around CSR, in addition to the potential for impact, which is why specialized profiles capable of guaranteeing results are required.
For this reason, one in four organizations (27.3%) has a department dedicated exclusively to promoting and leading CSR – a proportion that increases to one in two in the case of large companies – although 36. 7% of companies recognize that they do not have any area dedicated to these functions.
In companies located in America, progress is observed compared to the last report, improving 5 percentage points, increasing to 1 in 4 companies that have a department dedicated exclusively to promoting and leading CSR. 84.6% of those surveyed consider that companies with a specific area to promote CSR actions are better prepared to face future challenges, 37% more than in the last report.
In the opening session of the presentation event of the III Sustainability Observatory in Ibero-America, the president of CEOE, Antonio Garamendi, assured that the private sector has a fundamental role as an accelerator of sustainability and CSR in Ibero-America.
For his part, Allamand highlighted that CSR is being consolidated as a central element in business strategies, overcoming the limited vision of CSR as donations to social causes. However, he noted that greater financial commitment is required to maximize the impact of the private sector on sustainable development and environmental protection, especially in a region so vulnerable to the effects of climate change.
From FIJE, its president Matías Fernández, highlighted the increase in CSR practices and how these are applied transversally to large companies, SMEs and MSMEs, also becoming the central axis of business strategies.
Increased importance after Covid
The companies that have participated in this research agree almost unanimously (96.9%) that, to consolidate CSR, it is necessary for it to permeate transversally in all areas and 9 out of 10 agree that CSR will be consolidated as a natural way of doing business based on the idea of shared value.
The III Observatory of Sustainability in Ibero-America also identifies the three main challenges that Ibero-American organizations face in the next three years: climate change (40.8%), the economic crisis (37.2%) and cybersecurity ( 36%).
In this sense, the achievement of various crises (pandemic, the War in Ukraine, the conflict in Gaza, the supply of raw materials or social polarization, among other factors), are influencing the development of the CSR policy of organizations. .
Thus, 4 out of 5 organizations (80.5%) believe that the importance of CSR within companies has increased since the Covid-19 crisis, and 84.6% consider that companies that have an area specific to promote CSR actions are better prepared to face the challenges, 37.3% more than in the last report.
For May López, the author of the study and director of the MBA Sustainability Management at EAE Business School, this situation, more than a problem, represents an opportunity to irreversibly integrate CSR and sustainability strategies in all organizations, which will contribute to the economic, social and environmental recovery demanded by the different interest groups.
To close the day, the permanent secretary of the Council of Ibero-American Businessmen (CEIB) and director of Relations with Ibero-America of CEOE, Narciso Casado, placed special emphasis on the fact that the Observatory is a clear example of the great monitoring work done on the topics.
