Breadcrumb
Peru
The role of CSR
Corporate social engagement still attracts relatively little interest in Peru, but is gradually gaining in importance. Companies that produce goods mainly for the domestic market generally place less focus on socially responsible action than those strongly dependent on exporting their products.
Mining companies are an especially good example of the latter group. Their increased social commitment is in part due to the fact that they are under special observation. They are obligated to provide a certain portion of their earnings for infrastructure and social projects in communities negatively affected by mining. The money goes to local administrations and regional governments. In addition, many voluntarily donate an additional portion of their proceeds (known as “aporte voluntario”) to development projects in the regions in which they operate. Several companies specializing in the export of agrarian products are socially engaged as well.
Peruvian policymakers do not yet regard corporate social responsibility as an important topic. There is no legislation governing corporate social responsibility. A single legislative proposal on the subject was introduced in 2005, but not adopted. Civil society has some interest in CSR, mainly through the organizations Perú 2021 and SASE. Due to the large differences in income and education, the population does not have a uniform opinion of CSR. Most people pay little attention to the subject. The press demonstrates moderate interest in the topic. The annual conference of the Peruvian Trade Association did focus on CSR in late 2008, however.
International organizations and intermediaries play a relatively important role in promoting CSR in Peru. Initially, a number of these organizations provided technical and financial assistance for the Peruvian CSR organizations. Today, several political foundations in particular are playing a key role in increasing awareness of CSR and supporting specific projects. The Swiss AVINA Foundation is worthy of special note here. The Kellog Foundation and the Interamerican Foundation are also active, as is the Ford Foundation to a lesser extent.
Among the international organizations operating in Peru, UNDP is active in this area. The Inter-American Development Bank actively engages in CSR in Peru as well. Of the foreign chambers of commerce, the American, Canadian and British chambers place special focus on CSR and cooperate with Peruvian organizations such as Perú 2021 and SASE.
Source: German Embassy, Lima
CSR understanding
The relative unimportance of corporate social responsibility for policymakers is due in particular to the fact that Peru’s economy has begun to pick up only recently in the years since the end of Fujimori dictatorship. Companies’ primary responsibility is therefore regarded as creating additional jobs through economical operation and expansion of their activity, thus enabling society to benefit from their success.
The population generally has few expectations in terms of assumption of social responsibility by companies. Like many other processes in society, the actions taken by companies are rarely questioned. Peruvians expect the state to do more for society than companies. Large segments of the population are mainly occupied with ensuring their basic subsistence and do not have the time or interest to consider CSR.
Demands for social involvement by company are made primarily in the mining industry, on which the economy is heavily dependent. Because mining companies generate large profits and can potentially have an especially harmful effect on the environment and social structures of the surrounding villages, express demands are made of them to assume responsibility for society and offer compensation.
Source: German Embassy, Lima
Expectations towards companies
Both policymakers and society believe that companies’ primary responsibility is to run a profitable business and contribute to the well-being of society with their products. One exception is the mining industry. More social engagement is expected of mining companies.
Neither policymakers nor society have any special expectations of German companies in comparison to other companies, both domestic and foreign.
Source: German Embassy, Lima
Basic conditions
Basic conditions
The ILO labor standards have not yet been fully implemented. The ILO reports, for example, that some people in rural areas find themselves in situations of forced labor after being lured into debt that they cannot repay. Such practices have been documented in connection with illegal logging in the Amazon region, for example. A national committee has been established to combat forced labor.
Industry initiatives
GLOBAL COMPACT Peru
On-site contact
Focal Point of the GC in Peru
pactomundial (at) confiep.org (dot) pe
Mr. Jose Luis Altamiza
jaltamiza (at) confiep.org (dot) pe
GC Office Country Coordinator
Jonas Haertle
Email: haertle (at) un (dot) org
WORLD BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT
On-site network since 2001
On-site contact
PERU 2021
Henri Le Bienvenu
Executive Director
Toribio Polo 248, Piso 2
Miraflores
Lima 18 - Peru
Tel : +511 421-3801 / 421-3765 / 421-3795
Fax : +511 421-3801
E-mail: henrilebienvenu (at) peru2021 (dot) org
Web page: www.peru2021.org
Areas of activity
Poverty
Basic information
- Life expectancy: Total population: 70.44 years; male: 68.61 years; female: 72.37 years (2008 est.)
- Infant mortality: Total: 29.53 deaths/1,000 births; male: 32.02 deaths/1,000 births; female: 26.93 deaths/1,000 births (2008 est.)
- Malnutrition: 12% (2002/04)
- Access to clean water: 83% (2004)
- Access to sanitary facilities: 63% (2004)
- Human Poverty Index: 28th of 108 (2007/2008)
- Gini Index: 52 (2003)
- Population below the poverty line: 44.5 % (2006)
Company examples
Kraft Foods Deutschland GmbH
CSR WeltWeit case study (German): Nachhaltiger Kaffeeanbau in Kooperation mit der Rainforest Alliance
Port International Organics GmbH
CSR WeltWeit case study (German): Unterstützung der Zivilbevölkerung nach einem Erdbeben in Peru
CSR WeltWeit case study (German): Armutsbekämpfung durch Fairtrade
Education
Basic information
- Public spending on education (share of GDP): 2.5% (2006)
- Compulsory school attendance: 6 – 16 years
- Rate of school enrollment: 97% of children who are required to attend school (2004)
- Literacy (definition: those over the age of 15 who can read and write): Total population: 87.7%; males: 93.5%; females: 82.1% (2004 est.)
- HDI Education Index: Rank 87 out of 177 (1 = max., 0 = no education)
- Average years of education: Total population: 14 years; males: 14 years; female: 14 years (2006)
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).
German-Peruvian Chamber of Industry and Commerce
http://peru.ahk.de
GTZ Peru
http://www.gtz.de/en/weltweit/lateinamerika-karibik/643.htm
CIM Peru
http://www.cimonline.de/en/weltweit/311.asp
Konrad Adenauer Foundation – Peruvian foreign office
http://www.kas.de/proj/home/home/60/1/index.html
Company examples
Port International Organics GmbH
CSR WeltWeit case study (German): Armutsbekämpfung durch Fairtrade
Health
Basic information
- Public spending on health (share of GDP): 1.9% (2004)
- Medical care: 117 physicians per 100,000 residents (2000 – 2004)
- Infant mortality: Total: 29.53 deaths/1,000 births; male: 32.02 deaths/1,000 births; female: 26.93 deaths/1,000 births (2008 est.)
- Maternal mortality: 190 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): 0.5% (2003 est.)
- HIV/AIDS sufferers: 82,000 (2003 est.)
- HIV/AIDS deaths: 4,200 (2003 est.)
- Life expectancy: Total population: 70.44 years; male: 68.61 years; female: 72.37 years (2008 est.)
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).
German-Peruvian Chamber of Industry and Commerce
http://peru.ahk.de
GTZ Peru
http://www.gtz.de/en/weltweit/lateinamerika-karibik/643.htm
CIM Peru
http://www.cimonline.de/en/weltweit/311.asp
Konrad Adenauer Foundation – Peruvian foreign office
http://www.kas.de/proj/home/home/60/1/index.html
Company examples
Siemens AG
CSR WeltWeit case study (German): Safe Water Kiosk – mobile Filteranlagen für eine nachhaltige Wasserversorgung
Port International Organics GmbH
CSR WeltWeit case study (German): Armutsbekämpfung durch Fairtrade
Political involvement
Peru’s civil society is well established, with non-governmental organizations playing an important role in ensuring respect for the rights of the population. A number of NGOs are very active in Peru; most prominent in the area of CSR is Peru 2021. The business sector is extremely well represented in these efforts, for example in issues of transport (infrastructure), environmental policy, energy policy and the social and healthcare systems.
Basic information
- Suffrage: 18 years old; universal and compulsory until 70 years of age
- Freedom of the press: 117th of 169 (2007)
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).
German-Peruvian Chamber of Industry and Commerce
http://peru.ahk.de
GTZ Peru
http://www.gtz.de/en/weltweit/lateinamerika-karibik/643.htm
CIM Peru
http://www.cimonline.de/en/weltweit/311.asp
Konrad Adenauer Foundation – Peruvian foreign office
http://www.kas.de/proj/home/home/60/1/index.html
Participation in society
Basic information
- Share of women in the labor force: 46% (1994-2005)
- Ethnic groups: Indigenes 45%, Mestizos 37%, Caucasians 15%, blacks, Chinese, Japanese and other 3% (2006 census)
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).
German-Peruvian Chamber of Industry and Commerce
http://peru.ahk.de
GTZ Peru
http://www.gtz.de/en/weltweit/lateinamerika-karibik/643.htm
CIM Peru
http://www.cimonline.de/en/weltweit/311.asp
Konrad Adenauer Foundation – Peruvian foreign office
http://www.kas.de/proj/home/home/60/1/index.html
Company examples
Port International Organics GmbH
CSR WeltWeit case study (German): Armutsbekämpfung durch Fairtrade
Environment
Basic information
- CO2 emissions: 0.1% of total world output (2004)
- CO2 per capita: 1.1t (2004)
- Energy consumption: 22.59 million kWh (2005)
- Water consumption (households/industry/agriculture): Total: 20.13 km3/year (8%/10%/82%); per capita: 720 m3/year (2000)
- Hydropower, solar, wind, geothermal energy: 12.8 % of primary energy consumption (2005)
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).
German-Peruvian Chamber of Industry and Commerce
http://peru.ahk.de
GTZ Peru
http://www.gtz.de/en/weltweit/lateinamerika-karibik/643.htm
CIM Peru
http://www.cimonline.de/en/weltweit/311.asp
Konrad Adenauer Foundation – Peruvian foreign office
http://www.kas.de/proj/home/home/60/1/index.html
Company examples
Bayer AG
CSR WeltWeit case study (German): Bayer AG - Strategische Partnerschaft mit United Nations Environment Programme im Bereich Jugend und Umwelt
Siemens AG
CSR WeltWeit case study (German): Safe Water Kiosk – mobile Filteranlagen für eine nachhaltige Wasserversorgung
Port International Organics GmbH
CSR WeltWeit case study (German): Armutsbekämpfung durch Fairtrade
Data & facts
Further links
- Auswärtiges Amt - countryinformation Peru
- Bertelsmann Transformation Index - Peru
- BMZ Länderinformatinen Peru
- Cámara de Comercio e Industria Peruano-Alemana
- CONFIEP - National Confederation of Private Business Associations
- Corruption Perceptions Index 2008 (CPI)
- Embajada Alemana Lima
- Empresa Responable - peruanisches CSR-Nachrichtenportal
- Ford Foundation
- Fundación AVINA
- GTZ countryinformation Peru
- Human Development Index - Peru
- Inter-American Conferences on Corporate Social Responsibility
- Inter-American Foundation (IAF)
- KfW countryinformation Peru
- Peru - Anti-Corruption-Information
- Peru 2021
- UN Global Compact Peru
- UNDP / PNUD Peru
- W.K. KELLOGG Foundation