Breadcrumb
Mexico
The role of CSR
Corporate social engagement is important in Mexico. Social engagement is expressly honored by the Mexican government, which awards prizes for outstanding achievements in the field. The Mexican Center for Philanthropy (Centro Mexicano para la Filantropía) is responsible for the awards process. Substantial sums are now made available for charitable causes, primarily from large national and international corporations. In contrast, hardly any small or mid-sized companies are involved in CSR projects. Corporate activities focus primarily on combating poverty, education, improving healthcare, environmental protection and general philanthropy.
Government measures in the aforementioned areas are regarded as totally inadequate, thus driving social engagement by corporations. It comes as no surprise that the country with the lowest tax rate in Latin America (approx. 11%) has insufficient funds available in these areas.
The press covers the topic on a regular basis, reporting on outstanding examples of corporate social engagement. The magazine ganar ganar (in allusion to the English term “win-win”) is devoted exclusively to the topic.
International organizations and intermediaries play a less important role in promoting CSR. Together with InWent, the German-Mexican Chamber of Industry and Commerce held a seminar on the topic directed primarily at German companies. CSR also played a key role in talks between the German Federal Minister for Foreign Affairs and companies when the minister, Dr. Steinmeier, visited Mexico in April 2007. Large internationally operating companies generally act of their own accord – no matter if motivated by genuine interest in the common welfare of the country in which they do business or in order to maintain a positive image.
Germany’s federally owned Deutsche Gesellschaft für technische Zusammenarbeit (GTZ) promotes social engagement by taking active part in public private partnerships, making its expertise in its area of specialization (exclusively environmental protection in Mexico) available to private enterprises and assisting them in implementing CSR projects. One excellent example is the collaboration between GTZ, BASF and the community of Altamira for drawing up a plan to reduce waste and developing an integrated waste management concept for the community.
Source: German Embassy, Mexico City
CSR understanding
For 70 years, Mexico essentially had a one-party system in which the ruling Institutional Revolutionary Party (PRI) managed all social interests. In this highly paternalistic system, state-owned companies were expected to attend to the needs of employees and their families as well as those of the community. Society therefore developed certain social expectations of companies.
If companies were to make no attempt to meet these expectations, their lack of action could fuel existing criticism of the “neoliberal” policies implemented by previous governments. Similarly, the limited financial resources available to Mexican governments have made it necessary for private entities to become active in combating poverty, improving access to education and healthcare as well as promoting environmental protection.
Religious and other cultural reasons do not play an important role in expectations placed in companies by policymakers and society.
Source: German Embassy, Mexico City
Expectations towards companies
As Mexican policymakers see it, companies’ primary goal is to operate profitably and promote the well-being of society with their products. In contrast, civil society feels that companies have a moral obligation to society.
There are no special, unique expectations of German companies. At most, greater expectations are placed in foreign companies because it is a well-known fact that companies based in Europe and the U.S.A. must comply with stricter regulations on issues such as occupational safety and environmental protection in their home countries. Mexicans therefore expect such companies to have higher standards in these areas. However, these expectations apply primarily to activities within the companies themselves. In terms of social engagement outside of the company, expectations of foreign and Mexican companies are the same.
There are many areas of potential action for German companies. Due to Germany’s good reputation for environmental protection, activities in this area are ideal. Other prime areas include education, health, general anti-poverty measures and promotion of culture.
Source: German Embassy, Mexico City
Basic conditions
Implementation of international regulations and guidelines
OECD Mexico
Ratification: May 18, 1994
Contact on site:
Secretaría de Economía
Alfonso Reyes # 30, Piso 18
Col. Condesa C.P. 06140
Mexico, D.F
Tel: (52-5) 5729-9146
Fax: (52-5) 5729-9352
E-mail: pcn-ocde (at) economia.gob (dot) mx
amoneeag (at) economia.gob (dot) mx
Web: www.economia-snci.gob.mx
Industry initiatives
GLOBAL COMPACT NETWORK
Contact
Ms. Diana Chávez
Coordinación del Pacto Mundial en México
Presidente Masaryk No. 29
Col. Chapultepec Morales
Tel. +(52 55) 5263-9756
Fax. +(52 55) 5255-0095
diana.chavez (at) undp.org (dot) mx
GC Office Country Coordinator
Mr. Jorge de Cardenas
cardenas2 (at) un (dot) org
WORLD BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
On-site network established in 1994
On-site contact
BCSD Mexico (CESPEDES)
Ing. Alejandro Lorea Hernández
Lancaster No. 15 – 4, Col. Juárez C.P.
06600 Mexico City, Mexico
Tel : +52 55 52291130 and 52291140
Fax : +52 55 52291133
E-mail: cespedes (at) cce.org (dot) mx
Website: www.cce.org.mx/cespedes
Areas of activity
Poverty
Basic information
- Life expectancy: Total population: 75.84 years; male: 73.05 years; female: 78.78 years (2008 est.)
- Infant mortality: Total: 19.01 deaths/1,000 births; male: 20.91 deaths/1,000 births; female: 17.02 deaths/1,000 births (2008 est.)
- Malnutrition: 5% (2002/04)
- Access to clean water: 97% (2004)
- Access to sanitary facilities: 79% (2004)
- Human Poverty Index: Ranks 10th of 108 (2007/2008)
- Gini Index: 50.9 (2007 est.)
- Population below the poverty line: 40% (2006)
Although Mexico is a wealthy country (GDP per capita: approx. US$ 8,800), a large share of the Mexican population (approx. 35 – 40%) lives in poverty, approx. 12% in absolute poverty. Combating poverty is therefore an important area of activity. However, poverty in Mexico is not primarily a problem of insufficient resources but a problem of resource distribution and social injustices.
In cooperation with national or international NGOs, German companies can focus on ensuring an adequate food supply, health or basic education.
Participants
Possible participants include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).
GTZ Mexico
http://www.gtz.de/en/weltweit/lateinamerika-karibik/638.htm
CIM Mexico
http://www.cimonline.de/en/weltweit/307.asp
German-Mexican Chamber of Industry and Commerce
http://mexiko.ahk.de/index.php?id=82&L=43
Konrad Adenauer Foundation – Mexican foreign office
http://www.kas.de/proj/home/home/57/4/index.html
Opportunities and risks related to poverty
Corporate social engagement directed at combating poverty offers little opportunity for tapping new markets. On the other hand, however, it poses no notable risks either.
Company examples
Kraft Foods Deutschland GmbH
CSR WeltWeit case study (German): Nachhaltiger Kaffeeanbau in Kooperation mit der Rainforest Alliance
German pharmaceutical companies support the work of a small NGO in Mexico City that provides medical care free or at very low costs (based on the patient’s ability to pay) on a small scale with donations of medication.
Source: German Embassy, Mexico Cit
Education
In the field of general education, Mexico has an oversupply of teachers. Nonetheless, not all children have access to general basic education due to both inadequate organization and monitoring within the school system and to poverty. Support for general education can be provided by donating educational materials and by equipping or improving classroom facilities in rural areas.
Basic information
- Public spending on education (share of GDP): 5.5%
- Mandatory school attendance: 6 – 15 years
- Rate of school enrollment: 98% of children who are required to attend school (2004)
- Literacy (definition: those over the age of 15 who can read and write): Total population: 91%; males: 92.4 %; females: 89.6 % (2004 est.)
- HDI Education Index: Rank 52 out of 177 (1 = max., 0 = no education)
- Average years of education: Total population: 13 years; male: 14 years; female: 13 years (2006)
In addition, the virtual absence of basic and further occupational training in Mexico offers a broad field of activity for German companies. German companies have experience with basic and further training in-house and can thus improve the level of knowledge among employees by providing training in excess of their own needs.
Participants
Possible participants include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).
GTZ Mexico
http://www.gtz.de/en/weltweit/lateinamerika-karibik/638.htm
CIM Mexico
http://www.cimonline.de/en/weltweit/307.asp
German-Mexican Chamber of Industry and Commerce
http://mexiko.ahk.de/index.php?id=82&L=43
Konrad Adenauer Foundation – Mexican foreign office
http://www.kas.de/proj/home/home/57/4/index.html
Opportunities and risks related to educational measures
Visible participation in the field of education provides good opportunities for boosting social acceptance. Improving education is always a sustainable method of combating poverty as well. In addition, basic and further occupational training improves the selection of qualified workers available to companies. Since not all companies train their employees in the same way, there is a risk that employees could be lured away by the competition after completing their training. However, this risk is known and accepted.
Company examples
Occupational training by German companies.
Kalibrix GmbH
PPP venture between GTZ and Kalibrix GmbH with the goal of establishing an environmental and measurement technology competence center for the processing industry in Queretaro.
Source: German Embassy, Mexico City
Health
Basic information
- Public spending on health (share of GDP): 3.0% (2004)
- Medical care: 198 physicians per 100,000 residents (2000 - 2004)
- Infant mortality: Total: 19.01 deaths/1,000 births; male: 20.91 deaths/1,000 births; female: 17.02 deaths/1,000 births (2008 est.)
- Maternal mortality: 63 deaths/100,000 births (1990 - 2004)
- Child malnutrition: 8% of children under the age of 5 (1996 - 2005)
- HIV/AIDS prevalence rate (>15 years of age): < 0.3 % (2003 est.)
- HIV/AIDS sufferers: 160,000 (2003 est.)
- HIV/AIDS deaths: 5,000 (2003 est.)
- Life expectancy: Total population: 75.84 years; male: 73.05 years; female: 78.78 years (2008 est.)
Health is another broad area of activity for German companies, in particular in the fields of occupational health, occupational safety and general medical education.
Availability of medication is not so much a problem of general accessibility as a problem of poverty for large segments of the population. Accessibility of medical care is a problem primarily in rural regions and is usually closely linked to poverty. German companies are located mainly in economically strong areas where the population usually has access to medical care and medication. Nevertheless, it is possible to support healthcare in various communities. In addition, there is an opportunity to work together with NGOs to improve medical care in areas with weak infrastructure.
By Mexican standards, large German companies usually offer their employees above-average medical support which can therefore be regarded as social engagement in itself.
Participants
Possible participants include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).
GTZ Mexico
http://www.gtz.de/en/weltweit/lateinamerika-karibik/638.htm
CIM Mexico
http://www.cimonline.de/en/weltweit/307.asp
German-Mexican Chamber of Industry and Commerce
http://mexiko.ahk.de/index.php?id=82&L=43
Konrad Adenauer Foundation – Mexican foreign office
http://www.kas.de/proj/home/home/57/4/index.html
Opportunities and risks related to health initiatives
Visible activity in this area offers the opportunity to increase social prestige and can lead to significant multiplier effects. No potential risks are discernible.
Company examples
Volkswagen
PPP project VW / ILO / GTZ for establishing a national work safety program (ILO SafeWork Program) and pilot-style introduction and implementation of health and safety standards on a company-wide level with VW and its suppliers.
Siemens AG
CSR WeltWeit case study (German): Safe Water Kiosk – mobile Filteranlagen für eine nachhaltige Wasserversorgung
Source: German Embassy, Mexico City
Political involvement
Political participation is generally not an area suitable for social engagement by German companies in Mexico. In individual cases, it is conceivable that companies could support suitable projects being implemented by political foundations active on site.
Participation in society
Participation is generally not a suitable area of social engagement for German companies in Mexico. In individual cases, it is conceivable that companies could support suitable projects being implemented by political foundations active on site.
Environment
Basic information
- CO2 emissions: 1.5% of total world output (2004)
- CO2 per capita: 4.2 t (2004)
- Energy consumption: 183.3 million kWh (2005)
- Water consumption (households/industry/agriculture): Total: 78.22 km3/year (17%/5%/77%); per capita: 731 m3/year (2000)
- Hydropower, solar, wind, geothermal energy: 4.9 % of primary energy consumption (2005)
Mexico has substantial environmental problems that represent areas of urgently needed activity for German companies. Germany is generally regarded as highly competent on environmental issues. As such, engagement in this area lends itself well to CSR projects. There is a need for action in supporting sustainable management of water, energy, air and soil – essentially in every aspect of environmental protection. Cooperation with GTZ and others is ideal in the area of environmental protection since German-Mexican development cooperation is focused exclusively on environmental protection and German specialists for energy issues, waste management and other aspects of environmental protection are on site.
Participants
Possible participants include organizations for development cooperation (GTZ, CIM etc.), chambers of commerce, trade associations, trade unions, ministries (Ministry of Industry, Ministry of Small and Medium-Sized Enterprises) and political foundations (such as the Friedrich Ebert Foundation, the Friedrich Naumann Foundation and the Konrad Adenauer Foundation).
GTZ Mexico
http://www.gtz.de/en/weltweit/lateinamerika-karibik/638.htm
CIM Mexico
http://www.cimonline.de/en/weltweit/307.asp
German-Mexican Chamber of Industry and Commerce
http://mexiko.ahk.de/index.php?id=82&L=43
Konrad Adenauer Foundation – Mexican foreign office
http://www.kas.de/proj/home/home/57/4/index.html
Opportunities and risks related to environmental initiatives
Social engagement in this area enhances companies’ image in society, underscores German competence in the field and can thus also improve economic opportunities during implementation of relevant projects. Risks are posed by the fact that projects must be well conceived and consistently implemented because the press does cover the further course of individual projects. For example, a failed reforestation project (the trees planted were not cared for and rapidly died as a result) did more damage than good to the image of the (Mexican) company involved.
Company examples
BASF
A series of projects is being implemented by German companies in the area of environmental protection. Especially worthy of mention is the PPP project between BASF, GTZ and the community of Altamira, as part of which a community waste management plan was drawn up for the municipality, the implementation of community waste policy supported and a waste management training program carried out on state level.
Volkswagen
Also worthy of note is VW’s engagement in the area of environmental protection, currently with a project for reforestation of the area around the volcanoes Popocatepetl and Iztaccihuatl.
Siemens AG
CSR WeltWeit case study (German): Safe Water Kiosk – mobile Filteranlagen für eine nachhaltige Wasserversorgung
Source: German Embassy, Mexico City
Other
Mexicans view Germany as a cultural nation. The German language plays an important role. Due to the importance of the German School in Mexico, German is spoken by many people in socially important positions (four cabinet members in the current government (2008) alone speak fluent German). Promoting culture and supporting exchange programs for students and scientists are therefore ideal areas for CSR activities.
Examples of engagement:
A Culture Foundation of the Germany Industry exists in Mexico and has 25 German member companies. It supports cultural events related to Germany with fixed, regular contributions. Thanks to this involvement, which far surpasses the event budget of the Goethe Institute, it is possible to hold more financially complex events in Mexico. In addition to the Culture Foundation in Mexico City, a foundation has now been formed in San Luis Potosí.
Opportunities and risks related to culture:
Promoting culture offers the opportunity for the involved companies to enhance their reputation and increase their level of acceptance. No risks are apparent.
Data & facts
Further links
- Auswärtiges Amt- countryinformation Mexico
- BCSD Mexico (CESPEDES)
- Bertelsmann Transformation Index - Mexico
- BMZ - Information Mexico
- Cámara Mexicano-Alemana de Comerció e Industria
- Centro mexicano para la filantropia
- Corruption Perceptions Index 2008 (CPI)
- Embajada Alemana México
- GTZ Mexico
- Human Development Index - Mexico
- KfW countryinformation Mexico
- Mexico - Anti-Corruption-Information
- Newspaper Ganar Ganar
- UN Global Compact Mexiko
- UNDP Mexiko