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Have you given today? A look at corporate philanthropy shows Mexico still has a long way to go.


From the wealthy ancient Roman Gauis Clinius Maecenus who set up Horace as a poet in 33 B.C., to Bill Gates (person) Bill Gates - William Henry Gates III, Chief Executive Officer of Microsoft, which he co-founded in 1975 with Paul Allen. In 1994 Gates is a billionaire, worth $9.35b and Microsoft is worth about $27b.  who recently donated US$24 billion to good causes, individuals who enjoy financial success traditionally pass on some of their good fortune to others. According to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 Learning to Give, a U.S. philanthropic consultancy, 90% of charitable funds come from individuals.

Yet in Mexico, a large-scale individual philanthropic culture has yet to blossom. Despite its buoyant economy and growing middle class, civil campaigners and charities find it difficult to raise the cash they need. Last year, for example, UNICEF UNICEF (y`nĭsĕf'), the United Nations Children's Fund, an affiliated agency of the United Nations.  Mexico, the United Nations' children's organization, was only able to raise two-thirds of its US$2 million domestic target. So what is keeping Mexico's financially blessed from digging deep?

There are two reasons. First, a distrust of public institutions has led to the widespread--yet often unjustified--belief that much of the money aimed at good causes will instead end up lining fundraisers' pockets. Second, due to a historical dependence on church and state, Mexicans widely believe the government should provide for the needy, an attitude that has muted social consciousness. Still today, with its heavy television advertising, the government actively tries to perpetuate this perception.

YAWNING RICH-POOR GAP

Jorge Vazques, an expert in social issues at the Monterrey Technological Institute (ITESM ITESM Instituto Tecnologico y de Estudios Superiores de Monterrey ), believes this does not mean Mexicans are not generous people, but that, "People here focus their caring on what is close to them--their family and the neighborhood."

Thanks to both its vast oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints.

Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally
 and proximity to the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Mexico enjoys natural financial advantages over other countries. It is home to a dozen billionaires. Yet, there exists an enormous imbalance in wealth distribution. More than 40% of the populace lives below the poverty line, and 24% live on less than US$2 a day, according to the most recent figures from the World Bank. Malnutrition, illiteracy and poor health are just a few of the troubles the lower class suffers.

Despite all its big talk, the government is in no position to correct these ailments. It has a low tax collection rate. And with its desire for continued economic growth and capping the deficit, Congress has fettered fet·ter  
n.
1. A chain or shackle for the ankles or feet.

2. Something that serves to restrict; a restraint.

tr.v. fet·tered, fet·ter·ing, fet·ters
1. To put fetters on; shackle.
 the Fox administration with heavy budgetary restraints. The great chasm between rich and poor continues to yawn.

"Many people believe the government should be taking control of the situation, but they are living in the dark ages," said Jose Gonzales, a taxi driver taxi driver ntaxista m/f

taxi driver taxi nchauffeur m de taxi

taxi driver taxi n
 from Puebla. "The poor need people with money and skills, not those corrupt bureaucrats."

PUBLICITY OPPORTUNITY

This creates a huge gap in the market for the private sector. Many firms in Mexico are beginning to adopt what has become known as a stakeholder culture. Whereby, beyond shareholders, employees and customers, firms make themselves accountable to the local communities in which they operate.

The corporate culture now abounds with buzz words like social responsibility, corporate community involvement, corporate citizenship Corporate Citizenship

The extent to which businesses are socially responsible in meeting legal, ethical and economic responsibilities placed on them by shareholders. The aim it to create higher standards of living and quality of life in the community in which it operates, while
 and social investment. The belief among big business these days is not only that the private sector is in a unique position to provide assistance, but also that it's obliged to do so.

Although there are no reliable figures, Mexican firms are increasingly assuming a more socially conscious position.

"Since the earthquake of '85, things have really picked up," says Emilio Guerra Diaz, director of communications Director of Communications is a position in the private and public sectors. The Director of Communications is responsible for managing and directing an organization's internal and external communications.  at the Mexican Philanthropic Institute (Cemefi). According to his organization's statistics, as many as 90% of big Mexican businesses participate in charitable activities.

To date, 120 large companies have now set up semi-autonomous foundations with the mandate of managing their resources for good causes. Cemefi publishes a list of firms it deems socially responsible, which now numbers 44 and includes such major firms as BBVA Bancomer BBVA Bancomer is the largest financial institution in Mexico, dominating about 20% of the market. History
Founded in 1932 in Mexico City as Banco de Comercio (English: Commerce Bank) (Bancomer).
, Grupo Bimbo Grupo Bimbo is a giant Mexican food corporation with brands in Latin America, Europe, China and the United States. History
Grupo Bimbo was established in Mexico in 1945, today it is one of the most important baking companies in brand and trademark positioning, sales, and
 and Wal-Mart de Mexico.

So how do these companies go about doing their good deeds? First, they ensure that their core activities are beneficial to the environments and people they touch. For example, Bimbo, a Mexican food maker, ensures its produce is nutritional.

The Fundacion Azteca, which forms part of the Grupo Salinas Grupo Salinas is a group of dynamic, fast growing, and technologically advanced companies, focused on creating shareholder value. Created by Mexican entrepreneur Ricardo B. , works hard to make the best of To improve to the utmost; to use or dispose of to the greatest advantage.
To reduce to the least possible inconvenience; as, to make the best of ill fortune or a bad bargain.
- Bacon.

See also: Best Best
 its vast pool of resources. "TV Azteca TV Azteca is the second largest Mexican television network. It was established in 1968 as the state-owned Instituto Mexicano de la Televisión ("Imevisión"), and was privatized under its current name in 1993. Its flagship program is the newscast Hechos. , for example, works together with NGOs to increase awareness and raise funds," said the foundation's director, Esteban Moctezuma Esteban Moctezuma Barragán (b. October 21, 1954 in Mexico City) is a Mexican politician affiliated to the Institutional Revolutionary Party (PRI). He is a former senator and served as secretary of social development and secretary of the interior in the cabinet of President Ernesto . In a recent campaign, the TV company--working in conjunction with a non-profit organization--raised over 10 million pesos to provide eye surgery and cornea cornea: see eye.  transplants for financially strapped Mexicans.

In addition, companies can make some kind of direct social investment. Telmex has developed a program to assist young criminals. Each year the phone company helps thousands of troubled youths by providing them with educational scholarships.

Finally, they also give cash to charities. Microsoft, Ford, Walmex and Citibank are among the many generous corporate givers in Mexico.

ALTRUISTIC CAPITALISTS

Charitable giving is not a one-way street Noun 1. one-way street - unilateral interaction; "cooperation cannot be a one-way street"
unilateralism - the doctrine that nations should conduct their foreign affairs individualistically without the advice or involvement of other nations

2.
. As one side of the great philosophical debate protests, there is no such thing as a purely altruistic act. The giver also receives something in return. So, what is the return on investment for benevolent businesses?

Companies with long-term business interests in the region will be aware that the more its constituents prosper, the more likely the firms will be able to achieve sustainable growth. The creation of a higher quality labor force, a healthier and wealthier consumer base and a clean environment can only be good things for the bottom line.

Furthermore, such behavior improves the company feel-good factor. Employees who believe their jobs help raise more than just the company share price take greater pride in their work and are more loyal to their employer. In a recent survey by Stanton Morris, a British consultancy, 76% of respondents said a firm's ''commitment to causes" was an important consideration in deciding where to work.

Another winner is the corporate reputation. In the recent past, environmental and social scandals have had detrimental effects on big brands such as Shell, Nike and McDonald's. Modern consumers have a conscience. They realize by boycotting companies that pollute, pay poor wages or profit from others' poverty, they can have a direct impact on corporate policy. Some companies, like Body Shop and Starbucks, have based their marketing strategy around their image as businesses with a heart.

However, this last benefit may be a faux-aim.

"Creating the perception of social responsibility and actually being socially responsible are two very different things," said Vazques of ITESM.

When interviewed for this article, spokesperson Mercedes Arogones said her company, Walmex, was "beneficial to local communities because of its everyday low prices," repeating the retail giant's advertising mantra. Although Walmex conducts many genuine philanthropic activities, this certainly is not one of them.

Neither are the Telmex motorbike mechanics that cruise around Mexico City Mexico City
 Spanish Ciudad de México

City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi
 helping stranded motorists. Nor the Pepsi-Cola sponsored police booths on Insurgentes Avenue, a main city artery. Such acts are about marketing and not charity, according to Naomi Klein Naomi Klein is a Canadian journalist, author and activist well known for her political analyses of corporate globalization.

Klein was born in Montreal, Quebec. Her family has a history of activism, as does her husband's family.
, the author of "No Logo," a book about the importance of corporate branding Corporate branding is the practice of using a company's name as a product brand name. It is an attempt to leverage corporate brand equity to create product brand recognition. It is a type of family branding or umbrella brand. .

Even when the intentions are honorable, many companies are not able to administer their resources effectively. Due to the mistrust and local attitudes mentioned earlier, these firms carry out charitable projects in a highly independent manner.

"The private sector often ignores the non-governmental sector and goes it alone," lamented Alejandro Aribe of Manos a la Obra, a volunteer network. "If firms would work closely with professionals who dedicate their lives to this business, their efforts would be far more valuable."

TORTA OR CERVEZA?

"There is very little transparency in the private sector," added Diaz of Cemefi. "It is difficult to evaluate how companies manage their charitable acts. There is a lot more to this business than simply signing a check. If you give a peso to a beggar in the street, how do you know if it will make his life better or worse?"

In order to be effective, firms must consider and coordinate their good deeds. This requires taking advice and following guidelines. As a result, Vazques and his team have been working alongside the government, businesses and NGOs to produce a "diagnosis" of need in Mexico. The aim is to determine who needs what and then guide companies on how to distribute their resources.

Mexicans have a bona fide [Latin, In good faith.] Honest; genuine; actual; authentic; acting without the intention of defrauding.

A bona fide purchaser is one who purchases property for a valuable consideration that is inducement for entering into a contract and without suspicion of being
 desire to help their less fortunate compatriots. Perhaps, through an increase in charitable giving by the private sector, they might finally be able to make a difference.

Rawdan Messenger is a Mexico City-based freelance writer and columnist far the Evening Standard of London.
COPYRIGHT 2003 American Chamber of Commerce of Mexico A.C.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2003, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Author:Messenger, Rawdon
Publication:Business Mexico
Geographic Code:1MEX
Date:Jun 1, 2003
Words:1411
Previous Article:Stay out of the shadows: Mexican companies, government move to improve business ethics and values.
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