En tu idioma /in your own language

Eduardo del Buey
Foto Ap
La Jornada Maya

Miércoles 22 de junio, 2016

The time when companies and friendly governments could ride roughshod over local populations is over. Globalization has reduced the overbearing power of the nation state, as modern communications have empowered even the smallest and localized non-governmental groups to heights hitherto unknown and unimaginable.

These range from traditional and established non-governmental organizations to neighborhood organizations to spontaneous coalitions that rise dramatically in response to any given situation. Indigenous groups, local residents, student groups and others now use modern communications technology to mobilize local and global support for their causes – giving them the same reach as any multi-national corporation. We live in an age of networks, and it doesn’t take many resources to establish an effective network of groups or individuals who share a common purpose.

International investors face myriad challenges in today’s global environment. Most developing states have weak and malleable legal systems. Legal contracts are often not enforceable. And, face it, political support can wax and wane depending on the circumstances. Indeed, while the economic impact of a major long-term investment decision may make economic sense, the electoral cycle often has a logic of its own.
Companies must factor all of this into any investment decision. One increasingly important tool at its command is the judicious use of Corporate Social Responsibility (CSR). CSR has developed significantly over the past two decades in response to these new challenges. Yet, in most cases, it has developed along 20th Century paradigms rather than in response to 21st century realities. One size fits all CSR is no longer applicable given the multiplicity of players and their unique cultural and social composition.

Values and cultural attitudes in developed and non-developed countries differ significantly, and so the CSR implemented has to respond accordingly. Corporate Social Responsibility solutions are not “one size fits all”. In order to be effective they must not only coincide with the investor’s own corporate position, but also take into account local cultural realities and aspirations. In Latin America, for example, it is not unusual for non-economic factors to take the form of passionate resistance to a developmental investment proposal even if it offers the possibility of economic wellbeing.

So, while many companies continue to take investment decisions based on macro-economic and macro-social analysis, micro-realities are now more important factors in determining the success or failure of an investment decision. Making local alliances work is often as important as having a government department or minister on your side. Local decision makers and people of influence wield tremendous power and must be brought on side to make a long-term investment work.

This calls for a realistic communications strategy to reach key constituencies and involve them in any investment conversation. Companies must not only see what is in it for them, but must also convince the opposition of the benefits they will gain from the investment decision. Without such a strategy, even small and relatively isolated local populations who now have a global reach and audience thanks to modern communications technology could well hotly contest any investment and development proposals.

Caveat emptor!

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Mérida, Yucatán