GRI Conference - 27 May - Paul- Sustainability Reporting Panel


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GRI Conference - 27 May - Paul- Sustainability Reporting Panel

  1. 1. Corporate Social Reporting Practices in Mexico: Two Paths Karen Paul Florida International University
  2. 2. Research Question How has corporate social reporting evolved in Mexico from 2000 to 2007? Do recent adopters of CSR use local or global norms? Do earlier adopters of CSR now use local or global norms?
  3. 3. Definitions Global Norms Use international reporting standards Affiliation with international NGOs Local Norms Conceptualized CSR mainly by philanthropy CSR reporting mainly Spanish; half also in English
  4. 4. First Generation Companies [Early Adopters] Ten companies from an initial sample of 75 were identified from 2000 to 2003 by Paul et al. (2006) Stakeholder concept common Local norms prevalent CSR reports found in petroleum, cement, tobacco, and chemical industries
  5. 5. Second Generation Companies [Recent Adopters] 17 companies that demonstrated significant evidence of CSR on their websites “Great Places to Work Institute” and “Expansion Largest Companies” lists Food & beverage, petroleum, chemicals, and communications primary sectors represented
  6. 6. Methodology Content Analysis of Websites Purposeful Sample Primary and Secondary Terms Reporting Trends
  7. 7. Variables Practices Foundation CSR Report Availability Code of Conduct Primary and Secondary Terms Stakeholder Model Sustainability Corporate Social Responsibility Citizenship Human Rights International Affiliations/Standards World Business Council for Sustainable Development Global Compact Global Reporting Initiative International Organization for Standardization
  8. 8. Results Primary Term Usage: CSR vs. Sustainability First Second Generation Generation CSR 70% 59% Sustainability 30% 6% No Specific Term Used 0% 35% * First generation n = 10; Second generation n = 17 ** A primary term is that term which appears first on a corporate website when referring to a company's CSR practices
  9. 9. Results Secondary Term Usage by First & Second Generation Companies First Second Generation Generation Stakeholders 90% Awards 71% Awards 90% Code of Conduct 41% Code of Conduct 70% Stakeholders 35% ISO 70% Citizenship 29% Sustainability 60% Foundation 29% Human Rights 60% Global Compact 24% Global Compact 50% Sustainability 18% GRI 50% ISO 12% Foundation 40% Human Rights 12% WBCSD 40% GRI 0% Citizenship 30% WBCSD 0% CSR 20% CSR 0% * First Generation n = 10 * Second Generation n = 17 ** A secondary term appears subsequently on a corporate ** A secondary term appears subsequently on a corporate website when referring to a company's CSR practices website when referring to a company's CSR practices
  10. 10. Results CSR Report Trends First Second CSR Report Generation Generation CSR Report Available 60% 36% CSR Report - Annually 10% 18% CSR Report - Less than Annually 50% 18% Available in Spanish & English 100% 33% Available in Spanish Only 0% 67%
  11. 11. Conclusion: First Generation – 5 Years Later Move from local to global norms, formal reports All reports in English and Spanish Continued use of stakeholder orientation Increasing use of sustainability Widespread use of code of conduct Considerable reference to international organizations
  12. 12. Conclusion: Second Generation More local (Mexican) orientation Less use of stakeholder model Less use of code of conduct Less reference to international organizations Less use of formal reports Only 36% have formal CSR reports Only 33% available in Spanish and English
  13. 13. Summary First generation moving from local to global norms Second generation starting with local norms No “leapfrogging”, but an evolutionary pattern CSR growing in Mexican companies
  14. 14. Significance of Study? Two Patterns Observed in Mexico— Global vs. Local Local Mexico: Bimbo Bread Global Mexico British American Tobacco, Cemex Pemex China S. Africa Spain, S. Korea, Brazil
  15. 15. Strengths of Global Enables comparison Reduces costs Creates common vocabulary Builds international network Could create social movement
  16. 16. Strengths of Local Supports innovation (e.g., BBBEE) Communicates to national elite Builds network in country Elites more interconnected Soft cues effective Builds local support group (e.g., TI) Harder to miscommunicate
  17. 17. Going Forward Growth in CSR and sustainability reporting is projected to continue Expansion requires multi-sector support Business-to-business communication essential Government role limited but crucial NGOs critical in providing direction Communication networks vary
  18. 18. Questions Thank you!