To foster social and environmental business opportunities in Central America and Dominican Republic through access to innovative financial resources and technical assistance. Methodology and Success Cases in Central America and Dominican Republic The Netherlands Ministry of Foreign Affairs
To foster social and environmental business opportunities in Central America and Dominican Republic through access to innovative financial resources and technical assistance. Methodology and Success Cases in Central America and Dominican Republic The Netherlands Ministry of Foreign Affairs
To foster social and environmental business opportunities in Central America and Dominican Republic through access to innovative financial resources and technical assistance : Methodology and Success Cases San José, Costa Rica 658.408 C389f CEGESTI To foster social and environmental business opportunities in Central America and Dominican Republic through access to innovative financial resources and technical assistance: Methodology and Success Cases.. / CEGESTI.-- San José, C. R.: CEGESTI, 2012. 7 p.; il.; 27 cm. ISBN 978-9930-9401-8-1 1.SOCIAL RESPONSIBILITY. 2.ENVIRONMENTAL MANAGEMENT 3. SOCIAL DEVELOPMENT. 4.SUSTAINABLE DEVELOPMENT. 5. CENTRAL AMERICA. 6. DOMINICAN REPUBLIC. I. CEGESTI. II.Title. First Edition 2012 Coordination: Daira Gómez, Andrea Rodríguez and Gabriela Román Design: árdicom
About This Manual This manual is based on the practical experience developed in the framework of the project, Promoting Social and Environmental Business Opportunities in Central America and Dominican Republic 1, an initiative that was created to encourage entrepreneurial competitiveness through the application of socio-environmental and corporate governance practices. The Schokland Fund was created thanks to this project, providing the participating enterprises from the agribusiness, food and forestry sectors with credit and technical assistance. About CEGESTI CEGESTI is a private, independent and non-profit organization dedicated to promoting the productive sector s competitiveness in order to improve sustainable development in Latin America. www.cegesti.org About OIKOCREDIT Oikocredit is an international cooperative that promotes global justice, urging people, churches and other groups to share their resources through socially responsible investments and supporting underprivileged people with credit. www.oikocredit.org About ICCO ICCO is an interecclesiastical organization for development cooperation. Its mission is to contribute to a world in which people live with dignity and prosperity, where poverty and injustice no longer exist. www.icco.nl/es/home 1.This project was financed by OIKOCREDIT, ICCO and the Netherlands Ministry of Foreign Affairs. The technical assistance was executed under the guidance of CEGESTI.
Welcome Message The challenges faced by society, such as reducing poverty rates, restraining the planet s environmental deterioration and improving the quality of life of all citizens call for a new corporate management model. The model should be based on a sustainable development philosophy that confines businesses within a balanced concept involving three elements: wealth generation, environmental performance and social wellbeing. The adoption of this approach requires enterprises that succeed in achieving customer satisfaction while protecting, maintaining and offering a higher value to the necessary human and natural resources for the future. This document seeks to demonstrate how results focused on socio-environmental and corporate governance elements can be reached through an integrated methodology in keeping with the enterprises possibilities and in complete alignment with the corporate strategy. Daira Gómez, Executive Director, CEGESTI
Table of Contents Discovering Social and Environmental Opportunities...1 Methodology...1 Evaluation...2 Strategic Revision...3 Define...4 Implement...5 Monitor and improve...5 Communicate...6 Success Cases...7
Towards New Social and Environmental Opportunities The implementation of best social and environmental practices is an innovative corporate management approach that seeks to develop the capacity to rediscover the added value of their activities and define innovation strategies that include environmental and social requirements in local private enterprises (SMEs, cooperatives and producer associations). Under this approach, the enterprise seeks to minimize the amount of resources used while increasing the creation of social and environmental value and satisfying the needs and requirements of their interest groups; in this way, environmental benefits are achieved, such as a reduction in water consumption (among other natural resources), environmental risk reduction in case of accidents, contamination reduction through an improvement of processes and/or products and advances in health and occupational safety-related working conditions, as well as in corporate governance practices. Methodology With the purpose of strengthening the enterprises capacity to develop opportunities aimed at improving their social and environmental result, CEGESTI presents a comprehensive sustainable development methodology focused on two main elements: generation of impact on the critical parameters of the organizations competitiveness in relation to their socio-environmental performance and their corporate governance practices, in addition to the creation of organizational capacities. This methodology presupposes the participation of both managerial and operational staff, knowing that the implementation of improvements will depend on the global commitment displayed by the entire organization. EVALUATION COMMUNICATE STRATEGIC REVISION MONITOR AND IMPROVE DEFINE IMPLEMENT 1
Evaluation Implementation of the methodology requires an initial diagnosis phase in order to determine the enterprise s current situation concerning different socio-environmental and corporate governance criteria. The aim is to learn about the enterprise s starting point, which will be used as input to identify areas of improvement. The evaluators internalization of good practices in socioenvironmental topics always involves reading articles on green procurement, social procurement, cleaner production (information can be accessed at http://www.cegesti.org/noticias/) Furthermore, a series of manuals can be accessed freely for further information: Responsible Purchasing Manual, Manual for the Implementation of the ISO 9001:2008 Process Approach, Good Agricultural Practices (GAP) Manual, Responsible Purchasing: Practical Guide for its Implementation in Enterprises, Manual for Developing Occupational Safety and Health Programs, eaner Production Manual, Manual on Management of Persistent Organic Pollutants and Corporate Social Responsibility Manual (see Manual Collection subsection). The results obtained will focus on topics such as: Corporate Governance Environmental Dimension Social Dimension Committment CG Shareholders / partners rights Fair treatment Stakeholders interest Information and transparency Board of directors responsibilities eaner production programs Profitable environmental management Environmental management systems Best agriculture practices Health and safety programmes Management of health and safety systems Support actions to the community, suppliers and consumers. We suggest using the tools indicated in the Corporate Social Responsibility Manual (see Manual Collection subsection). The graphic representation of the results obtained in the diagnosis is of great value to identify the areas of improvement and to socialize the products with the enterprise s employees. Environmental evaluation Legal Compliance Use of resources 100 80 60 40 20 0 Waste production Remuneration Work schedule Social Evaluation Child labour 100 80 60 40 20 0 Forced labour Health and safety at work Information policies and transparency Corporate Governance evaluation Bases for a good CG 100 80 60 40 20 0 Derechos, responsabilidades y trato equitativo de los accionistas Biodiversity Disciplinary measures Discrimination Freedom of association and right to a collective bargain agreement Internal control procedures Board responsabilities 2
Strategic Revision Due to the foreseeable impossibility of applying all of the improvements resulting from the evaluation, these improvements need to be socialized with the enterprise s top management in order to prioritize their implementation. Afterwards, the conditions will be created to establish objectives (final impact) that the enterprise wants to reach in the social, environmental and corporate governance practice dimensions. For this activity, CEGESTI proposes a management model based on a continuous improvement policy. The model develops in four stages. 1) definition of objectives and indicators, 2) definition of operational plans, 3) control and follow up of activities, and 4) communication of results. For further information, we suggest reading the Corporate Social Responsibility Manual (see Manual Collection subsection). The objectives should provide us a precise and measurable statement of the goal to be reached, for which we require useful indicators in order to analyze the trends and performance. Objective What must we improve to be able to achieve the desired results? Indicator How can we measure if we are improving? The wording is clear; the objective is not confused with an activity. The objective responds to the organization s plans and/or policies. The wording includes: the action to take place, the issue to be improved and where the improvement will be applied. Indicators help us determine if the foreseen achievement is or is not being reached. Indicators should be aligned with the action proposed in the objective and indicate the period of time in which we expect to reach it. Objective Indicatort Amount/Percentage of reduction in Reduce an XXX period of time. Amount/Percentage of increase in an Increase XXX period of time. The expected objectives are linked with the organization s strategic plan once they have been defined; in this way, the improvements are then aligned with the enterprise s global plan. Revising the strategy provides the opportunity to validate the appropriateness of the mission, vision and organizational values, and to include the sustainable development approach. For this, we suggest to use the definition of social responsibility provided by the ISO 26000 Standard as a reference. Some examples of identified improvements can be accessed in the success cases generated as from the application of this methodology. The information is available at http://www.cegesti.org/schokland/ casosdeexito. html 3
Define Once the improvements for implementation have been established, the actions that will be taken to reach the proposed objectives need to be defined. Objective What do we need to improve to achieve the desired results? Indicator How are we going to measure if we are improving? Goal How far to go? Improvement Plans What actions do we need to take to achieve the desired improvement? An adequate description of the actions is essential to ensure their correct execution and follow up. Improvement plan Name of Plan: Person in charge: Activity Person in charge Starting date Finishing date Verification to - - Some examples of improvement plans are the following: Corporate governance Government structure (rights of stockholders/partners, role of stakeholders, information and transparency, responsibilities of administrative board). Code of conduct Social dimension Occupational Safety and Health Improvement Program Community outreach Environmental and agricultural dimension eaner Production Program, based on a pollution prevention approach. According to the enterprise s priorities, this program may include the following: Analysis and identification of improvements in the use of water, electricity and other resources. Analysis and identification of improvements in the use of materials. Analysis and identification of improvements in the generation of waste and sewage. Profitable environmental management Environmental management systems Good agricultural practices 4
Implement In this phase, the role of those in charge of the improvement plans is crucial. These collaborators are responsible for communicating the plan to the organization and coordinating the development of the proposed actions. It is convenient to address the following topics during the presentation of the improvement plans: What is sustainable development? Why is it important for the organization? What benefits does the organization expect to obtain through the proposed improvements? The gathering of data should not be forgotten, with the purpose of evaluating the fulfillment of the proposed indicators at a later date. Monitor and improve The methodology pursues that each organization looks after its progress regarding the implementation of good practices and identifies new opportunities for improvement. With the purpose of attaining the abovementioned objectives, we propose the organization s top management to carry out a measurement of the indicators to obtain an image of the current performance of the objectives. Once the analysis has been performed, a proposal of new improvements or activities should be prioritized, thus initiating a new progress cycle. This continuous process enables the organization to address the set of identified improvements progressively, which constitutes an active and constant vision towards sustainable development. Some of the changes usually identified during the monitoring may be, among other actions: Redefine (include, eliminate or modify) activities that fail to generate the expected outcome. Modify the order of execution or duration of the established term. If the objective and the goal are not attained, it is advisable to conduct an analysis of the underlying causes and determine if it is feasible to extend the compliance period and to include new activities that would support the attainment of the proposed objectives. It is also suggested to use the tools stated in the article Pasos para el establecimiento de acciones correctivas/preventivas eficaces (Steps for the Establishment of Effective Corrective/Preventive Actions), available at http://www.cegesti.org/noticias/. If the analysis reflects noncompliance due to financial reasons, the person in charge of the program, together with the organization s highest authority, may bring the program to a close; however, it is important to include a justification regarding the program s closedown, in the manner of learned lessons for future improvement initiatives. 5
Communicate Communication between the enterprises and their stakeholders is essential for their continuous improvement in terms of sustainable development. In order to establish this communication, some enterprises use sustainability reports that indicate the financial, environmental and social results obtained during a specific period of time. With the purpose of preparing these memoirs, each enterprise follows its own parameters, or else, it may use globally recognized guides, one of which is produced by Global Reporting Initiative (GRI), an organization headquartered in Holland. This guide has been used by more than 650 global enterprises that have disclosed their reports publicly. The advantage of using the GRI guides is that they facilitate the introduction of indicators regarding the relation of the enterprise with clients, suppliers, employees and with those who invest capital in the organization; the use of energy, water and materials, as well as the exercise of adequate work practices, respect for human rights, and responsibility for the product. The Global Reporting Initiative organization has a guide for the implementation of sustainability memoirs which can be accessed at www.globalreporting.org. 6
Success Cases According to the described methodology and in the framework of the project, Promoting Social and Environmental Business Opportunities in Central America and Dominican Republic, funded by SCHOKLAND-SME CA&DR Fund, CEGESTI provided technical assistance in 2011 to the following agribusiness enterprises: Productores de Monteverde S. A. (Costa Rica), Cooperativa Nacional de Productores de Sal - COONAPROSAL R.L. (Costa Rica), Agribusiness Development Program-Proagroin (Costa Rica), COCO S.A. (Guatemala), Tecnoagro S.A. (Nicaragua) and Grupo Banamiel S.R.L. (Dominican Republic). Thanks to the assistance provided, the enterprises obtained important results in the environmental, economic and social dimensions. The following are some of the achievements obtained: 1. Definition of strategic frameworks aimed at sustainability. 2. Implementation of effective improvements concerning the use and consumption of water, energy and fuels. 3. Recording and controlling CO2 emissions. 4. Solid waste and sewage management. 5. Implementation of environmental management practices in administrative offices (green office). 6. Establishment of occupational safety and health programs. 7. Development and implementation of tools for adequate human resource management. 8. Development and implementation of community outreach programs. 9. Creation of corporate governance codes. Documented success cases are available at: http://www.cegesti.org/schokland/casosdeexito.html. 7
CEGESTI is a private non-profit organization that promotes sustainable development in Latin America. Colección de Manuales Collection Manual Compras responsables Tra ns po Materia prima 1. Identificación 2. Planificación on su mo ci Re 3. Implementación Procesos Salidas n Adquisición de materias primas Fabricación Consumidor Desechos sólidos Uso / reuso / mantenimiento Fomento de 2D trabajo decente Inclusión de aspectos sostenibles Energía humanos comercio ético y justo) Energía (calor, vibraciones,etc) Aporte a la inclusión social Promoción de (p. ej. inclusión de personas con oportunidades equitativas 3D discapacidad) Apoyo a una económia social y pymes Costo del Equipo $ 8,000.00 Colección Gestión Proceso 8 (estratégico) Organizacional Guía para el desarrollo de este enfoque con una visión práctica Planifi car Proceso 3 (externo) Proceso 4 Verificar iente Proceso 2 Requisitos Necesidades del personal Proceso 5 Motivación y comunicación interna Subdirección o Jefe RRHH Identificación de necesidades de formación del personal Implementar actividades de motivación y comunicación interna RRHH Reclutamiento, selección y contratación Elaboración y seguimiento del plan de capacitación CH βh O O O n O F S F F F F F O F F F F F F F F F F F H Manejo de Contaminantes Orgánicos Persistentes Persistent Organic Polutants Colección Gestión Organizacional $30/mes Producción más limpia Manual para la Elaboración de Programas de Salud y Seguridad Ocupacional Colección Gestión Organizacional Recibo de café Producto Despedrado Reducción en la Fuente Reciclado $100/mes en tratamiento de CaCO3 $80/mes Cambio de Producto Operación unitaria Desmucilaginado natural (fermentación) Despulpado Desmucilaginado Mecánico aguas y $40 por dragado de lagunas (CaCO3) Secado en torres Cambio de Proceso Secado al punto de Empresarial humedad óptimo Energía $140/mes Sustitución de Entradas Producto Buenas Prácticas asificado Empacado Modificación Tecnológica Almacenaje Despacho 1 opción: RECHAZAR o EVITAR 1. Disposición de los moldes sobre la pieza de cuero. 2. Destreza de los cortadores. 3. Falta de aprovechamiento de los retazos. 4. Uso de moldes en mal estado. 2 opción: REDUCIR Proceso 6 (apoyo) RRHH y Comité Evaluador* Social CH αh m Manual de Producción más Limpia Responsabilidad O- Agua Una guía práctica para empresas que buscan una competitividad sostenible Proceso 9 (control de la calidad) Capacitación RRHH, Jefe Departamento y Dirección Ejecutiva Determinar el perfil del personal La Proceso 7 (apoyo) Orden de prioridad Hacer Inicio Contratación Manual para la implementación de " Proceso 1 O 4 5 ()n H Primera edición Primera edición Manual de Implementación del Enfoque de Procesos en ISO 9001-2008 6 3 Total Compras Responsables Responsible Purchasing Buenas Prácticas Agrícolas Best Agricultural Practices Colección Gestión Organizacional 6 2 K+ Consumibles y electricidad $ 4,000.00 $ 2,000.00 Actuar Pago mantenimiento durante vida útil $ 6,000.00 5 2 $ 10,000.00 n 3 Aspectos Sociales Reciclar / manejo de desechos Respeto a los derechos (p. ej. incluye considerar el 4 Coproductos () Aguas Residuales m Materia Prima C cla je Desecho Emisiones Atmosféricas Distribuidor / Detallista O Transporte Reciclaje Ciclo de gestión Entradas Manual sobre el Manejo de Contaminantes Orgánicos Persistentes Primera edición Empaque ón ci rte 4. Control Colección Gestión Organizacional Guía práctica para su implementación en las empresas Producción Pro du c Colección Gestión Organizacional Primera edición Manual de Buenas Prácticas Agrícolas (BPA) Primera edición Primera edición http://www.cegesti.org/schokland/manuales.html 3 opción: REUSAR Maquinaria Métodos 1. Por la oferta de los proveedores locales. 2. Por la legislación q exige marcar el ganado para la identificación del propietario. Falta de tiempo asignado para diseñar y comercializar Misceláneos productos puequeños Falta de buenas prácticas Por los defectos en el cuero (marcas, tórsalos y huecos) Por el mal estado de los 4 opción: RECICLAR Por poca demanda de productos pequeños distribuida durante el año Perdida de cuero en el proceso de fabricación moldes debido al uso Por la inadecuada rotulación de los moldes EFECTO 5 opción: TRATAR Por la forma de las pieles pequeñas de cuero RRHH y Jefatura y/o Corfinador de Área Realizar inducción (poco aprovechable) Inicio Actividad Por la complejidad de encontrar retazos para sacar piezas pequeñas Por la forma de los diseños y la poca uniformidad de los cueros 6 opción: DISPONER Desición Fin Materiales Mano de obra 1. Porque los retazos no están separados por tipo. 2. Porque en la práctica no se le da prioridadal uso de retazos en la confección de los artículos. 1 Jefatura y/o Corfinador de Área Evaluaciones Implementación del enfoque de procesos Process Manual Ejecutado por: Executed by: Manual de Responsabilidad Social Empresarial Corporate Social Responsibility Handbook Programa: " Reducción de la pobreza y mejoramiento del ambiente:. Ejecutado por CEGESTI Una estrategia de desarrollo integral sostenible" y financiado por el Ministerio de Relaciones Exteriores del Gobierno de los Países Bajos Producción más Limpia ean Production Manual Programas de Salud y Seguridad Ocupacional Occupational Health and Security Financiado por: Financed by: The Netherlands Ministry of Foreign Affairs Tel: (506) 2280-8511 Fax: (506) 2280-2494 E-mail: info@cegesti.org San José, Costa Rica. www.cegesti.org