AMEMBASSY BRASILIA NOMINATES FORD AND MICROSOFT BRAZIL FOR

UNCLAS SECTION 01 OF 02 BRASILIA 001131 SIPDIS EB/CBA FOR SMITH-NISSLEY RM FOR PINEDA WHA/EPSC FOR SALAZAR SIPDIS E.O. 12958: N/A TAGS: ECON BEXP ELAB ETRD BR SUBJECT: AMEMBASSY BRASILIA NOMINATES FORD AND MICROSOFT BRAZIL FOR THE SECRETARY'S 2007 CORPORATE EXCELLENCE AWARD (MULTINATIONAL ENTERPRISE CATEGORY) ¶1. (U) Based upon their leadership and commitment to corporate social responsibility (CSR),Ambassador Sobel nominates the U.S. multinational companies Ford and Microsoft Brazil, as representatives of the 50 U.S. multinational companies that support the U.S. Embassy Brazil CSR Initiative, for the Secretary's 2007 Corporate Excellence Award. ¶2. (U) Begin Text of Award Nomination In October 2006, the U.S. Ambassador, together with Microsoft, Ford, and a select group of American companies founded a U.S. Mission Corporate Social Responsibility (CSR) initiative, aimed at leveraging the assets of U.S. companies doing business in Brazil. This initiative, which has expanded and now brings together 50 U.S. companies, has focused on encouraging CSR partnerships and joint investments while increasing the visibility and recognition of U.S. development efforts overseas. It has shown that partnerships have the power to increase both the effectiveness and efficiency of public and private sector development assistance. This whole effort began when the U.S. Mission in Brazil sponsored a CSR roundtable, in conjunction with 31 U.S. companies in Brazil and the Sao Paulo American Chamber of Commerce (AmCham). That represented the first step towards the development of an innovative Public/Private-based model for corporate social responsibility. However, none of this would have been possible without the commitment of the movement's principal private sector leaders: both Microsoft and Ford Brazil. These two companies chair initiative's two main committees: visibility (Ford) and partnership (Microsoft). Accordingly, the Ambassador nominates the U.S. multinational companies Ford and Microsoft Brazil, representing the group of the 50 U.S. multinational companies that currently support this initiative. Their exemplary efforts in guiding this group have been key to making this campaign a best practice to be replicated worldwide. -------------- -------------- Corporate Citizenship and Exemplary Employment Practices -------------- -------------- The group of 50 companies sponsors a wealth of social responsibility projects, in such diverse fields as education, the environment, and health. Combined annual investments are estimated at $250 million (cash) and another $250 million in in-kind contributions. Additionally, 48 of these companies support a volunteer network of over 100,000 individuals. Their 200+ projects benefit all of the 26 Brazilian states and the country's Federal District. Specifically, the group has: -- Signed a Memorandum of Understanding with the AmCham to promote employment of "Youth Ambassadors" - a U.S. Embassy-funded program targeting young leaders from low income families/schools across the country that has produced outstanding results. Over fifteen companies are now in the process of hiring several Youth Ambassadors. -- Collaborated in the establishment of the U.S.-Brazil Higher Education Program, yet another example of the power of partnerships. This program, jointly funded by Ford, Microsoft, and the USG, aims at revitalizing vocational education. This effort has been welcomed by the Government of Brazil's Ministry of Education and is already serving as a model of how industries and governments can cooperate to meet social and economic needs in a sustainable way. -- Sponsored a highly-regarded speech/media event, featuring noted economist Jeffrey Sachs, for companies participating in the initiative. We have invited Microsoft CEO Bill Gates as the next speaker. Several other activities are currently being designed under the CSR Initiative and will be launched soon. These include: -- the design of a CSR Challenge Fund, which will combine USG and private sector resources for programs in youth employability, entrepreneurship, and the environment; -- the development of a CSR Best Practices Catalogue; -- a survey of member companies on their individual CSR activities and willingness to partner with the Mission and others (this series of surveys resulted in a matrix of CSR activities by member companies); -- a volunteer day during which Consulate Sao Paulo personnel can participate in community activities (planned for July 2007); and BRASILIA 00001131 002 OF 002 -- a CSR Workshop, which would bring together the 50 member companies with speakers from local/international institutions such as the Rockefeller Foundation and the Kellogg Foundation. -------------- -------------- Contribution to the Overall Growth and Development of the Local Economy. -------------- -------------- Member companies are highly committed to the development of the Brazilian economy. -- the group of 50 directly employs an estimated 1 million workers; -- they lead several value chains in Brazil across the entire economy; -- the combined annual income of this group is estimated at US$100 billion; -- their presence in Brazil is on average 50 years. Companies like Ford have been responsible for the development of an entire industry; -- newcomers such as Microsoft have taken the lead in key areas such as education. Many of these companies have established policies to promote minority suppliers, and the group is working towards institutionalizing the following new activities: -- the implementation of a minority suppliers development program. This work will be launched in August during the visit of the head of the American Minority Suppliers Development project. -- there are several ongoing initiatives related to responsible sourcing, including a partnership between the U.S. Embassy and Wal-Mart to source fair-trade coffee from Brazilian small farmers. -- In addition, work is proceeding on the design of an innovative minority suppliers development program focusing on cooperatives of people living with HIV. -------------- -------------- Development of Competitive and Innovative Activities -------------- -------------- Other group activities aimed at fostering competitiveness and innovation include: -- the development of a report to measure the combined social and economic impact of the CSR projects supported by the U.S. corporate sector in Brazil; -- planning for a joint volunteer day to take place in August 2007; -- the design of a public outreach web site within the U.S. Embassy Brasilia portal; and -- various CSR-related meetings and planning sessions to take place in CY 2007. End Text of Award Nomination Sobel