Mexican civil society is only just beginning to gain strength after years in the shadow of political authoritarianism

On a Friday afternoon in early March, workers at Levi’s Aguascalientes factory in Mexico were met by labour rights activists at the gates. As they knocked off their shift, each was duly handed a copy of their collective bargaining agreement.

The move was atypical. First, because most workers have never set eyes on such a document before. Second, because the exercise in transparency was undertaken with the company’s active participation.

The story dates back to 2009, when the campaign group Maquila Solidarity Network (MSN) became aware of worker rights violations in two Levi’s factories. Together with Colectivo Raiz, a local non-profit group, MSN entered a process of dialogue with the US retailer.

The civil society groups succeeded in negotiating the collective bargaining agreement, as well as the company’s support for labourrights training for management and workers.

Such examples of positive engagement are rare in Mexico, admits Lynda Yanz, executive director of MSN, which is working in Mexico with eight global retail brands to improve union rights.

Similar efforts are being made by Cereal, a Jesuit-influenced non-profit group, in the electronics industry. Electronic goods have become one of Mexico’s chief export sectors since preferential quotas for garment makers were removed in 2004. Cereal is currently working with a group of Dutch-owned companies to promote freedom of association rights.

Two-way apathy

Yanz concedes: “Very few NGOs feel there is anything to be gained from engaging with companies. By the same token, companies have given very little attention to engaging them.”

The fact that the targeted companies in both cases are foreign-owned and therefore subject to external stakeholder pressures is no coincidence. It gives the campaign groups “leverage”, says Colectivo Raiz spokeswoman Sarah Montes.

“For better or worse, it’s in the factories where international brands are present that we’ve been able to make some advances,” Montes says.

The introduction of the North American Free Trade Agreement back in 1994 generated considerable interest on the part of civil society about company practices. By and large, however, the resultant campaigns comprised a foreign game played on Mexican soil – namely, international-based NGOs targeting international-owned companies and their subsidiaries.

Mexican civil society, in contrast, has stayed relatively mute. Bar a few vocal consumer groups such as Red Puentes and El Poder del Consumidor, major brands have not historically been the target of activist campaigns.

The notable exceptions are the large state-owned companies, such as Pemex and CFE. As state-owned companies with a near monopoly in the domestic market, both are subject to criticism from civil society groups – much of which, it has to be said, is politically motivated.

Nudge, not push

The history of Mexican civil society is critical to understanding the under-developed character of the third sector.

For much of last century, Mexico was dominated by an authoritarian and corporatist political culture, under a prevailing single-party structure. Only with democracy’s gradual growth over the past couple of decades have civil society groups begun to strengthen.

Many non-governmental organisations (“civil society organisation” is the preferred term in Mexico) continue to be under-resourced, volunteer-staffed and unprofessionally managed. When added to a business culture of detached philanthropy, this has led to what Mexican CSR specialist Edgar López Pimentel calls a “little nun attitude”.

Where civil society’s hand has been more strongly felt in the promotion of corporate responsibility is through the activities of business associations and specialist advocacy bodies.

Among the latter, Cemefi (the Mexican Centre for Philanthropy) regularly crops up. Since 2000, the non-profit group has run an annual award to celebrate companies’ social and environmental performance. From 18 awards in its inaugural year, Cemefi has expanded to issuing 572 this year.

Another important player is Aliarse, a network of seven NGOs including Cemefi, which endeavours through awards, information and training to promote more responsible corporate behaviour. Other members include influential business associations such as the Business Co-ordinating Council and the Confederation of Chambers of Industry.

However, despite some notable advances, CSR advocacy groups have been accused of being not terribly participatory and heavily biased towards corporations’ interests.

“There’s a lot of green-washing and award-led activities,” says Sean Ansett, founder of At Stake Advisors.

Tailored teaching

The university sector also deserves credit for its contribution to promoting corporate responsibility in Mexico. Universities such as Regiomontana in Monterrey and Anahuac in Mexico City have developed tailored post-graduate programmes on corporate responsibility.

Tec de Monterrey’s influential business school Egade is now following suit. This autumn, the school is set to roll out a specialist masters programme on sustainability. The initiative is part of a major new research partnership with the Mexican Stock Exchange.

“Many universities are taking this up so that leaders of tomorrow will understand corporate responsibility and become responsible managers in the future,” says Gerardo Lozano Fernández, professor of marketing and corporate responsibility at Egade.

National companies also turn to the university sector for specialised research, executive training and advice on corporate strategy around corporate responsibility.

Civil society in Mexico has chosen to influence corporate behaviour through the boardroom and classroom rather than the street and barricade. Results may come slower, but should be longer lasting as a result.

Key civil society organisations

Aliarse: Alliance for Corporate Social Responsibility

A group of organisations that aims to support and create industries committed to corporate social responsibility.

Cemefi: Mexican Centre for Philanthropy

A non-profit centre that issues a prominent annual award for social responsibility, as well as running workshops, conferences and other promotional activities.

Caux Round Table Mexico

The national chapter of the international network of principled business leaders working to promote “moral capitalism”.

Fechac: The Foundation of Businesses of Chihuahua

A business-led foundation in the state of Chihuahua dedicated to the allocation of business grants as soft credits to finance social projects.

Usem: Social Union of Mexican Businessmen

A business-led organisation of individual executives, designed to promote social responsibility in the private sector.

Freedom of association in Mexico: what’s the role of multinational companies?

What MNCs can do

  • Make a corporate commitment to prioritise strengthening compliance with freedom of association (FOA) in your Mexico supply chain.
  • Develop a comprehensive understanding of, and map progress on, FOA in vendor and supplier facilities in Mexico, including the presence of protection contracts and the ways in which they impede FOA.
  • Increase transparency regarding protection contracts and other issues related to FOA in your Mexico supply chain.
  • Monitor effectively for FOA violations, including the existence of protection contracts, and take appropriate remedial action.
  • Improve training of auditors on how to investigate, identify, report and remediate FOA violations in Mexico.
  • Increase worker and supplier awareness of workers’ associational rights and the barriers to those rights created by protection contracts.
  • Ensure that workers are able to exercise their associational rights without fear of dismissal, discrimination or other forms of retaliation.

What MNCs should not do

  • Facilitate the formation or require unions in supplier factories.
  • Interfere in the internal affairs of trade unions or in the collective bargaining process.
  • Favourone union or trade union organisation over another.
  • Leavea factory solely because of the existence of a protection contract.

Source: Maquila Solidarity Network

 

country briefing  CSR  Latin America  Mexico Briefing 

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