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### Viewing cable 07BRASILIA298, Brazil: US Mission's 4th Quarter 2006 Corporate Social

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07BRASILIA298 | 2007-02-18 18:16 | 2011-07-11 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Brasilia

`

    VZCZCXRO1177
    RR RUEHRG
    DE RUEHBR #0298/01 0491816
    ZNR UUUUU ZZH
    R 181816Z FEB 07
    FM AMEMBASSY BRASILIA
    TO RUEHC/SECSTATE WASHDC 8157
    INFO RUEHRI/AMCONSUL RIO DE JANEIRO 3898
    RUEHRG/AMCONSUL RECIFE 6267
    RUEHSO/AMCONSUL SAO PAULO 9256
    RUEHLP/AMEMBASSY LA PAZ 5173
    RUEHPE/AMEMBASSY LIMA 3365
    RUEHBO/AMEMBASSY BOGOTA 4114
    RUEHMN/AMEMBASSY MONTEVIDEO 6757
    RUEHAC/AMEMBASSY ASUNCION 5950
    RUEHBU/AMEMBASSY BUENOS AIRES 4599
    RUEHSG/AMEMBASSY SANTIAGO 6098
    RUEHQT/AMEMBASSY QUITO 2139
    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

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    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

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