Social responsibility of organizations in Mexico

The Social Responsibility of companies is currently a necessary factor for their survival mainly due to climate change and the affectation of the social fabric in many societies, these have a social power generated by their very situation as job generators and the creation of products that benefit society.

social-responsibility-organizations-mexico

Social Responsibility of organizations in Mexico

Mtro. Victor Manuel Piedra Mayorga

Requirements to be a CSR company

It includes social and environmental aspects, healthy finances, respect for the rights of workers and the communities with which it interacts.

The 10 best rated companies in Mexico are: Cemex, Coca-Cola, Coca-Cola Femsa, Hewlett-Packard, Cuauhtémoc Moctezuma, Wal-Mart, Home Depot, Herdez, Telefónica, out of 70 registered companies, the best evaluated are foreign.

Social responsibility means the degree of obligations that an organization assumes through actions that protect and improve the welfare of society, with a combination of legal, ethical, moral and environmental aspects.

Profit organization benefits society

By creating new jobs.

Pay fair wages that improve the lives of employees.

Improve working conditions.

In addition to contributing to the public welfare by paying taxes.

Offering products and services to clients.

CSR was born from the change from the predominant corporate model to a socioeconomic model that gave more interest to production, the use of resources, individual interests and a lesser role for the government, towards a better quality of life, the conservation of resources, community interests and a more active participation of the government.

Environmental problems

Desertification.

Sustainable development and forests.

The protection of the ozone layer.

Climate change and global warming.

Water, energy, and natural resources.

Biodiversity and overfishing.

The sustainable development of small island states (islands.

The marine environment.

Nuclear safety and the environment.

Its importance is based on the development of the society to which the organizations belong and depend on it, it is a fact that climate change is promoting technological development oriented to the use of clean energies, and it is the organizations that must produce and promote their use as an alternative for the survival of humanity.

Areas covered

The interest in ecology.

Quality of the environment.

Address the needs of the community.

Employment practices for minorities.

Work relationships.

Help employees.

Philanthropy.

Background

The old aristocracy of centuries ago today faces a world oligarchy of such concentrated wealth and power as has not been seen in any other historical stage of humanity.

At the end of the 19th century, companies grew and built factories outside their countries of origin to reduce transportation costs and avoid tariffs by acquiring resources and raw materials from less developed countries and colonies in Western countries.

Generating a certain number of jobs, also facing competition from other multinationals and strong local companies in the markets in which they sell their products, responding to the needs and demands of local markets with global efficiency.

They invest in research, technological, administrative and productive advances, giving rise to a complete exploitation and destruction of ecosystems, these organizations were organized in 3 ways:

The trust: they are companies in the same sector controlled by one or two large firms to monopolize the exploitation of a product and be able to regulate its price.

The cartel: they were companies that were associated to reach common agreements on

supplies, processes and prices avoiding competition between them.

The holding company. it controlled most of the shares of various industrial and commercial companies.

The reasons are the economic, fiscal and labor advantages, the differences in prices and the savings of payment of taxes and wages between the countries in which they are installed and the countries to which the products are directed (in the world there are 7 021 836,029 million people, if it is considered that they occupy only 3% of the economically active population.

Its capital implies modifications in the economy, society, life, politics, culture, etc., although these contribute economic and social progress and solve the difficulties that the operations of these companies can give rise to.

The United Nations has proposed a new international economic order promoting job security directly or indirectly in the context of flexibility, restructuring and relocation of manufacturing elsewhere.

The headquarters of these companies are in 17 countries, a third (74) are American, followed by Japan, the United Kingdom, France, Germany, Canada and Italy, which is why the Group of Seven (the G-7) brings together the 80% of multinationals. Out of this group, only Switzerland, South Korea, Sweden, Australia and the Netherlands exceed the dozen.

They handle outsourced or outsourced services because they are cheaper generated by other companies, multinationals or specialized in providing them.

They bring cutting-edge technology, absorb the market and merge smaller companies, with improvements in their industrial organization, marketing and advertising, with which they are present in the society in which they are integrated.

They have ties to the World Trade Organization, the International Monetary Fund, the World Bank, the United Nations, and the Organization for Economic Cooperation and Development.

Its products are not finished in the same plant in which it is started, they are transported to another plant in another continent to be finished, and to another country to be commercialized by opening new branches in other continents outside of its origin.

They know the structures and functioning of the political mechanisms of the countries where they

are established.

Strategic alliances, relationships with suppliers, contractors and international mergers have strengthened multinational companies bringing important benefits to the countries of origin since they supply the products and services that consumers want to buy at competitive prices and provide returns to investors. they contribute to the efficient use of capital, technology and human and natural resources.

Only three transnational automotive groups supply 65% of the entire world truck market. Five cover almost 60% of cars.

The top 10 communications companies control 86% of the market.

More than a third of world trade consists of transfers of goods between different branches of the same multinational.

With the escalation of macro mergers, such a small number of companies remain in each economic sector that they are not in a position to determine not only sales prices, but even purchase prices.

They impose on smaller companies that supply them with raw and auxiliary materials, components and semi-finished products, with prices of their products impossible to compete.

States have been pressured by these when they threaten to repatriate their investments, if a favorable policy is not applied to them.

Main historical stages in the evolution of the concept of CSR

In Victorian England Robert Owen created an industrial community, where cooperation and mutual support were the norms, introduced welfare measures, such as public health and education, banishing child labor and harsh conditions were convinced that the Man's character is formed by his environment and if it was changed, his vices would be suppressed and his behaviors would be favorably modified.

In recent years the United Nations and the International Labor Organization, ILO, since its foundation in 1914 have declared the declaration of fundamental principles and human rights:

Customers.

Workers

Society.

Classic vision

Lower profits.

Higher costs

Diluted business purposes.

Too much social power of companies.

Socio-economic vision

Long-term profits in business.

Better public image of companies.

Businesses can prevent the government from imposing more regulations.

Organizations have resources and an ethical obligation.

Companies must offer better conditions to all people.

Government and social responsibility

The relationship between organizations and the government occurs in two ways, since companies influence the government, which tries to stimulate these practices through direct and indirect channels, the former often manifested through regulations, the latter they are presented as taxation policies.

Government activities

Reciprocal influence of business and governments

Personal contacts.

Lobbying.

Political action committees.

Security and health at work

Medical service.

Dinning room.

Day care centers.

Scholarships

Parking lot.

Legal requirements.

The conservation of the environment, care of energy and reuse of

materials.

Quality jobs.

Promotion of education.

Training.

Social care.

Promotion of public and cultural works.

Make a profit and pay good wages.

Activities that benefit people in general.

Environmental requirements.

When society does not want certain things, it manifests it with its legislators creating laws and regulatory bodies to prohibit or control unfair sellers:

Those in charge of marketing have to determine what are the

characteristics of the products that consumers want.

Take into account the safety and reliability of the product.

They must prepare clear and written guarantee certificates.

Establish a distribution system to obtain spare parts and repair services.

Develop promotional mixes with prices accessible to consumers.

Therefore, they have the complex task of estimating the long-term effects they will have on society and for this they have to consider

Cultural models.

Social values.

The beliefs.

The wishes.

The rapidly changing needs.

The origin, development, growth and sustainability have to do with the ability to attend and respond appropriately to the needs

Understanding of customer needs.

Flexible behavior.

Ability to redefine the field at stake and to differentiate the offer from the competitors.

Commitment consistent with the evolving needs and expectations of customers.

Recognition that human energy is the greatest resource of the organization and a high value to the participation of those involved: customers, shareholders and employees.

Commitment to the continuous improvement of your aspirations.

Main arguments against social responsibility

It violates profit maximization.

Its cost increases prices.

The company lacks the social capacities to solve the problems of society.

It would dilute the primary purposes of the business.

It would weaken the balance of payments as prices would rise to pay for

social programs.

Businesses already have too much power, such involvement would make them more

powerful.

companies have no responsibility to the public and consequently the public will not have control over their social participation.

The organization must anticipate the social problems of the future and act now in response to them, since it requires that they anticipate social problems by facing them before they are evident and critical, it must have

Social sensitivity.

Community.

Organization.

Levels of social sensitivity of organizations

Active protection and human promotion of explicit ethical values.

The affirmation of the concept of citizenship.

The current conditions of the distribution of the wealth generated.

The strong expansion of social aspirations.

The fragility of the government budget to adopt actions of social interest.

The socially responsible posture for the survival, growth and

perpetuation of companies.

The search based on referents, ethics, processes and actions.

Philanthropy

It is a tactic that organizations use to promote public relations that benefit the reputation of the company through donations with an impact on society, however in their desire to increase their profits they forget that to increase them it is necessary that the society where they are located grows along with the organizations that make it up.

To carry out corporate philanthropy, a program must be developed that includes elements such as

Donations

Sponsorships.

Material resources.

Human resources (knowledge and experiences).

Technical resources.

Desired products.

Curricular academic insertion

Ethical values must be taught from the first educational studies and in the family environment, society must prioritize and cultivate them; Having done so is part of the main explanation why a country like Finland has no corruption and is the world leader in the Transparency International table.

Philosophy

They are the principles, rules and values that people use to decide what is right or wrong, it can be based on values, principles of welfare and community development under a fundamental commitment to meet the needs of the client for any project, success in Business depends not only on the health of its balance sheet, but also on its environmental and social performance.

Investigate whether the products or services offered by the company are suitable for customers.

Create a suitable image and propagate it with planned communication.

Be informed of the degree of customer satisfaction during and after the purchase.

Understand the sense of opportunity.

Search for new clients.

The customer perceives the company through the seller, who is his living image.

The seller must be able to convey his own motivation to the customer and provoke the purchase.

Create a climate of professional trust, so that the company transmits security to the client.

The knowledge and up-to-date information of the sector will allow the client to feel closer to the seller and with a greater willingness to buy.

Non-discrimination

Do not discriminate for reasons unrelated to employment (for example, race, color, sex, language, religion or political opinion) and promote equal opportunities.

Non-discrimination covers health, sexual orientation, pregnancy or marital status.

Physical or verbal abuse in the workplace.

Use of the security forces to end or repress the rights of workers.

Provide a safe and healthy work environment.

Pay remuneration that guarantees an adequate standard of living.

Respect the freedom of association.

Right to collective bargaining.

End, prevent or reduce corruption

Consumer protection.

The corruption of government officials.

Promote the economic, social and cultural rights of society in general that encourages the full exercise of all human rights and fundamental freedoms.

Human rights and the environment

No worker will be subjected to intimidation or degrading treatment or disciplinary measures if there are not fair procedures, the economic exploitation of children includes employment or work in any occupation before the minor completes compulsory education and, except in the case of the light work, before you reach 15 years of age or finish compulsory education.

Obligations regarding consumer protection

Transnational companies and other commercial companies will act in accordance with fair commercial, commercial and advertising practices and will adopt whatever measures are necessary to guarantee the safety and quality of the goods and services they provide, including observing the precautionary principle.

Relationship with the formal education system

Education is owned or directly supervised by the State, both in terms of resources and content, in many companies the educational demands of schools have been increasing as the coverage of the education system increases and the permanence in that of a school. growing proportion of the population, it is a supply that creates its own demand.

For workers the most powerful incentive is salary, but there are other causes such as the treatment of their human dignity, the environment and work environment that make the worker identify and produce efficiently and effectively to make the company grow, remain in the market and obtain higher profits.

conclusion

The UN, together with multinational companies, have approved an ethical code with which they sanction companies that do not comply with their commitments, inviting them to participate in programs that include special funds for social benefit, with the support of governments and employers' organizations.

Create infrastructure for decent work.

Promote effective means of agreement and collective bargaining.

Respect for fundamental principles and rights at work in the context of competition to attract international investment.

Increase opportunities and levels of employment, taking into account the policy and objectives of governments, provide job security and the long-term development of the company, using technologies capable of creating jobs both directly and indirectly, promoting equal opportunities and treatment eliminating all discrimination based on race, color, sex, religion, political opinion, national descent or social origin.

Offer opportunities to broaden the expertise of local managers in employment relationships.

Wages, benefits and working conditions should not be less favorable to workers than those offered by affordable employers in the country in question.

Maintain a maximum level of safety and hygiene, including any knowledge about special risks.

Contribute to the prevention and resolution of labor disputes between employers and workers with equal representation of employers and workers.

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