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.

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Corporate Citizenship and Exemplary Employment Practices
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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

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-- 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.

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Contribution to the Overall Growth and Development of the Local
Economy.
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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.
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Development of Competitive and Innovative Activities
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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