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RUCPDOC/USDOC WASHDC

UNCLAS SECTION 01 OF 03 BRASILIA 000298 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
USAID FOR AA/LA 
DEPARTMENT PASS EPA, HHS, CEQ 
USDOC FOR 4332/ITA/MAC/WH/OLAC/MWARD 
USDOC FOR 3134/ITA/USCS/OIO/WH/RD/SHUPKA 
STATE PASS USTR/SCRONIN 
 
E.O. 12958: N/A 
TAGS: EAID ECON SENV BR
SUBJECT:  Brazil:  US Mission's 4th Quarter 2006 Corporate Social 
Responsibility Activities 
 
REF:  Brasilia 2678 
 
¶1.  Summary. (U) Since October 2006, when Ambassador launched the US 
Embassy's Corporate Social Responsibility (CSR) Initiative, USAID, 
FCS, Embassy and Consulate Sao Paulo have worked exhaustively with 
our 31 corporate partners (firms such as Microsoft, GE, IBM, and GM) 
to follow-up on this issue.  Committees on Visibility, Institutional 
Framework and Partnership were formed and met over the following 
weeks to solidify the Initiative.  Each Committee requested 
information on overlapping CSR causes in which US companies could 
cooperate, as well as an Intranet site for facilitated 
communication.  Three surveys on US CSR activities were collected 
October 18 - December 13, and the quarter's CSR activities rounded 
out with a well-attended event at the US Consulate in Sao Paulo 
featuring Dr. Jeffrey Sachs as keynote speaker.  All this effort has 
generated positive press print and television coverage for the 
Mission and its CSR Initiative.  End Summary. 
 
CSR Initiative Launch Event 
--------------------------- 
 
¶2.  (SBU) Ambassador Sobel launched the CSR Initiative on October 
18, opening the roundtable event by recognizing AmCham Sao Paulo for 
its CSR work.  The Ambassador told the attendees that the roundtable 
was an opportunity to create a CSR partnership composed of US 
private and public interests aimed at fostering synergies among, and 
visibility for, US CSR programs.  The Ambassador then highlighted a 
number of USAID programs, as well as the Embassy's Youth 
Ambassadors, before turning the discussion over to Adolfo Franco, 
USAID's Assistant Administrator for Latin America.  In his remarks, 
Mr. Franco emphasized USAID's relationship with Brazil and the need 
to work with partners to address the country's socioeconomic 
challenges.  Mr. Franco termed Brazil a strategic partner in "a 
tough neighborhood," noting that the region's veer to the left has 
pushed our two countries closer together.  Mr. Franco then opined 
that one way for us to offer an alternative vision to that of 
Venezuelan President Chavez is for the US government and private 
sector to cooperate in addressing the regions' socioeconomic needs. 
 
¶3.  (U) The ensuing roundtable discussion made clear that final 
decisions on CSR projects are mostly made in Brazil, although 
consultation with corporate headquarters in the US is often 
required.  The businesses also discussed the benefit of funding CSR 
programs near their facilities, thus enabling them to address local 
needs over the long-term, at times implementing training programs to 
prepare underprivileged area residents for employment.  Long-term 
project sustainability and relevance to local communities was 
repeatedly emphasized as experience shows programs that come and go 
generate poor press coverage and public reaction.  Calls for more 
positive press coverage of US CSR programs peppered the entire 
discussion.  The participants expressed their appreciation to the 
Embassy for leading this initiative, noting the importance of 
pursuing the appropriate media strategy to ensure that the local 
press disseminates our message. 
 
Survey Looks at Successful CSR Programs 
---------------------------------------- 
 
¶4.  (U) The results from the first of three surveys were revealed 
during the launch event.  Queried as to potential  speakers at a CSR 
event, a majority of respondents requested noted economist Jeffrey 
Sachs.  US companies were also surveyed about their most effective 
CSR programs and the challenges they face when implementing CSR 
programs in Brazil.  Concurring with the group discussion, 
respondents indicated that successful programs often are located 
near a company's facilities and include training programs for local 
residents.  CSR implementation challenges in Brazil included: 
difficulty choosing only one of Brazil's many needs to address, 
adapting to local needs, and vetting potential NGO partners.  The 
surveys also asked in which CSR committee the business would like to 
participate.  The top two choices were the Institutional Framework 
and the CSR Visibility committee. 
 
 
BRASILIA 00000298  002 OF 003 
 
 
Committee Meetings Solidify Initiative 
-------------------------------------- 
 
¶5.  (U) The Committees each met over the weeks following, and will 
continue to meet on a periodic basis.  An FCS and/or USAID 
representatives attended each of the meetings.  The outcomes of 
these committee meeting include: (i) an effort to identify areas of 
overlay among US CSR activities in Brazil.  Such areas, termed 
"clusters", entailed common causes like health, education or the 
environment.  With these clusters in hand, the Committee hopes to 
foster further cooperation; (ii) the proposal of a CSR intranet site 
with chat and document posting functions to facilitate communication 
among all Initiative participants.  FCS has constructed the intranet 
site on its own server and will present it at the next meeting; 
(iii) preparation of a list of all US CSR events in Brazil for 
coordination; and (iv) the formulation of a Vision and Mission 
Statements for the Initiative, which is currently under development. 
Committee meetings also agreed on an increase of the number of US 
business taking part on this Initiative (from 31 to 50 businesses). 
Again, these outcomes will be presented to  Initiative participants 
in its next meeting. 
 
Second Survey Clarifies U.S. Corporate Volunteer Programs 
------- ---------------------- ----------------- --------- 
 
¶8.  (U) A second survey centering on US company volunteer programs 
showed that 90% of surveyed companies have formal volunteer programs 
involving an estimated 65,000 employees. GE and McDonald's account 
for 83% of this total.  75% of the companies directly manage the 
volunteer programs, with activities emphasizing education and 
philanthropy (collecting toys, clothes, etc).  100% responded "yes" 
that their volunteers could participate in an Embassy led volunteer 
event. 
 
Jeffrey Sachs Headlines December Event 
---------------- ---------------------- 
 
¶9.  (U) Responding to popular demand (as expressed in the October 
survey), Ambassador arranged for noted economist Jeffrey Sachs to be 
the keynote speaker at a mid-December CSR event at U.S. Consulate 
Sao Paulo that drew 75 US business and Brazilian NGO attendees from 
53 organizations, along with a slew of local press.  (See reftel.) 
Sixteen CEOs attended.  Ambassador Sobel provided opening remarks 
and introductions for Dr. Sachs.  Clear throughout Dr. Sachs' speech 
was his optimism for Brazil's socioeconomic development.  Dr. Sachs 
said Brazil would see greater development when its public and 
private sectors jointly harnessed the power of education and 
technology to address poverty.  Dr. Sachs also emphasized that 
companies are positive agents for the world economy, though 
sometimes anti-globalization activists wrongly see them as 
destructive agents.  He called upon transnational companies to 
expand their efforts to fight poverty 
 
¶10.  (U) A third CSR survey was distributed during the December 
event.  All 32 respondents agreed to attend a large CSR event in 
late 2007, and 30 of 32 agreed to a follow up CSR meeting, likely 
for March in Sao Paulo.  Nominations for future keynote speakers 
were Al Gore, Melinda and Bill Gates, Bill Clinton, Barack Obama, 
Robert Kennedy, Paul Wolfowitz and Mohammed Yunis.  Qualcomm, Dixie 
Toga, WalMart, Monsanto, Merck, Corning, Arvin Meritor, JP Morgan, 
Alcoa, Cisco and Intel expressed interest in showcasing their CSR 
work at a future meeting. 
 
CSR Initiative Creates Positive Press Coverage 
---------------- ----------------------------- 
 
¶11. (U) Two editorials by Ambassador Sobel on CSR have appeared in 
local press, the first on October 18 in the respected daily "Folha 
de Sao Paulo" and the second on December 5 in the business newspaper 
"Valor Economic."  The editorials highlighted both the Corporate 
Excellence Award, won in 2006 by the small US company Sambazon that 
operates in Brazil, and the general importance of CSR, drawing on 
Ambassador Sobel's business background.  Ambassador Sobel also 
 
BRASILIA 00000298  003 OF 003 
 
 
appeared during a five-minute segment on TV Globo shot during the 
Jeffrey Sachs event.  Dr. Sachs' speech was highlighted in the Folha 
de Sao Paulo on December 15, and the weekly newsmagazine Istoe 
printed an interview he gave. 
 
Sobel