The Colombian government’s approach is driven by the imperatives of poverty reduction and the need to compete internationally
In May 2012, 250 business leaders, business associations, NGOs and government representatives gathered in Bogota’s Hilton hotel. They were there as part of an awards ceremony to recognise a national portfolio of sustainable goods and services.
Organised by the government’s productive transformation programme – a specialist unit of the ministry of trade and industry designed to strengthen Colombian international competitiveness – the event was part of a broader national strategy to position Colombia as a consumer market for sustainable goods and services.
Corporate responsibility hasn’t traditionally been a strategic priority for the Colombian government. Viewed in the context of the country’s 50-year struggle with left-wing guerrilla groups, paramilitaries and drug cartels, encouraging private sector responsibility hasn’t been, arguably, at the top of the agenda.
This is changing quickly, however. As the Colombian economy grows so too has government recognition that corporate responsibility plays an increasingly important role in shaping the international competitiveness of Colombia’s private sector.
Internally, the Colombian government has seen corporate responsibility as an effective tool to address social and economic development as part of its much wider, multi-faceted, national development and poverty reduction strategy.
The business of development
The Colombian government has made steady progress in reducing national poverty levels and in promoting social inclusion over the past decade. According to the department for national statistics, poverty levels in Colombia fell from 56% to 34% between 2002 and 2012 while extreme poverty fell from 22% to 11% in the same period.
Colombia remains, however, one of the most socially and economically unequal countries in the world and, in 2011, the president, Juan Manuel Santos, launched Red Unidos (United Network) – the latest stage of the country’s poverty reduction strategy. Overseen by the National Agency for Overcoming Extreme Poverty (ANSPE), Red Unidos aims to pull 1.4 million Colombians out of extreme poverty.
Although not without its critics – likewise its predecessor Red Juntos – Unidos stands out for its recognition of the positive intervention the Colombian private sector can make in helping to alleviate poverty. Promoting corporate social investment has been a clear strategic objective of both programmes as has the promotion of inclusive business models.
Over the past few years, various frameworks and mechanisms have been employed to harness and channel private sector resources under the umbrella of these poverty reduction strategies. That has included the development of public-private alliances targeting specific geographical areas as part of a national system of zones free from extreme poverty, or Zolips.
“The whole aim of Unidos has been to involve businesses more. The idea is that the government, NGOs, private sector and municipalities work together to reduce poverty at the local level. Unidos has asked companies to reach out to consumers at the bottom of the pyramid,” says Pablo Uribe, director of Compartamos con Colombia.
Productive transformation programme
Encouraging Colombian businesses to operate more sustainably has also been an important component of the government’s productive transformation programme (PTP). Established in 2008, and housed within the ministry of trade and industry, the PTP has a remit to strengthen Colombia’s competitiveness in the world.
Through the PTP, the government has been encouraging Colombian companies to view sustainability as a source of innovation and competitive advantage. According to Alejandro Sarasti, director of infrastructure and sustainability, the objective is to “position Colombia as a consumer market for sustainable products and services”.
To achieve this, the programme has focused on building capacity in key sectors. In March 2012, a Global Reporting Initiative induction workshop targeted businesses in the steel, cosmetics and toiletries industries. Over the course of 2013, the programme will focus its attention on sustainability in the textiles, palm oil and construction sectors.
Publicly showcasing Colombian companies that have taken meaningful steps to operate more sustainably has also been part of the PTP strategy. This strategy of recognition was demonstrated in May 2012 at the sustainable products and services launch event where products and services recognised as sustainable under criteria set by the ministry of the environment were publicly lauded.
For Alejandro Sarasti, the PTP’s approach is about showing the benefits of being sustainable rather than employing scare tactics.
In many ways the energy at the heart of the PTP reflects the new Colombia. Open to new ideas, confident and increasingly international, it is representative of the wider changes taking place within the country.