Evolution of corporate social responsibility towards sustainability in Mexico 2013-2019

Since the Millennium Development Goals set out in 1999 by the UN, Corporate Social Responsibility (CSR) under the framework of ISO 26000, 2011 and the Objectives for Sustainable Development Goals Agenda 2030, 2015, Mexico's Business Sector has been taking full relevance in the triple Bottom Line actions (economic, social and environmental). This study shows the results of a questionnaire structured under the ISO 26000 reference framework, designed by Responsable, which was applied to a representative sample of the Mexican Business Sector in 2013-2019, to describe, infer and project the degree of knowledge, interest and management of CSR in large companies and MSMEs in Mexico. The main results are flattering since companies during these six years (2013-2019) have decided to create CSR Committees, this being more frequent in large companies and have an annual budget for Social Responsibility activities, with more trained managers in the area, and with more knowledge, importance and maturity of CSR. The term Social Responsibility has evolved as an investment and not as an expense for large companies, while MiPyMEs still see it as an expense. It is possible to see a decline in CSR indicators as a profitable investment in the short, medium and long term. Concerning the CSR employees’ profile, the positions are vastly occupied by women, between 32 and 42 years, with a professional education level with CSR studies. The most active sector in the CSR is transportation and logistics, banking, energy and extractive industry, food and DOI: https://doi.org/10.22567/rep.v11i2.848 201 Revista ENIAC Pesquisa, Guarulhos (SP), V.11, n.2, out.2022 mar. 2023. ISSN: 2316-2341 beverage, automotive and construction and infrastructure, focusing on labor practices, environment and human rights, being Corporate Governance the least developed in the companies.


INTRODUCTION
From the studies carried out by the movement called Club of Rome in 1968, which led to the publication of the book: "The Limits of Growth" in 1972, with descriptive statistical data and projections showing models with future scenarios of deterioration and pollution of natural resources such as water, air, oil, natural gas and land, until becoming aware of the unsustainability of the planet to continue exploiting natural resources without sustainable thinking or preserve these resources for future generations.
The business sector is not alien to this type of action for sustainable development. Since the Social Balance in the late 70s, the Global Report Initiative in the mid-90s, the ISO 26000 (2010), the Millennium Development Goals (1999)  This study shows the activity of the CSR by Mexican Economy Sectors being the transport and logistics sector, banks, energy and extractive industries, food, beverages, automotive, construction and infrastructure the ones carrying out more CSR activities, with a vast focus in the environment, labor practices and respect to Human Rights. Corporate Governance is the section of CSR with an opportunity area for Mexican businesspeople. There is interest from the Mexican private business sector in sustainability programs for the next five years, and it is considered an annual budget for these activities. 203 Revista ENIAC Pesquisa, Guarulhos (SP), V.11, n.2, out.2022 -mar. 2023. ISSN: 2316-2341

THEORETICAL FRAMEWORK
Corporate Social Responsibility (CSR) is an ethical commitment from a company. CSR commitments are different from legal obligations and have a moral resource to validate the companies' actions ahead of society. If a company assumes its ethical responsibility in the long term, it can generate confidence and build a reputation. CSR invites companies to act not only by legal and economic coercion but also by ethical and responsible commitment, considering the legitimate interests of all stakeholders in business activity, and as a way to ensure that CSR is a moral resource and not a strategic resource. Also, CSR is a way for companies to respond to society's expectations; although, some companies have been using CSR as a tool to change a company's image.
According to the Green Book (2001), CSR is the voluntary integration of companies with social and environmental concerns into their business operations and their relationships with their stakeholders. Being socially responsible does not mean fully complying with legal obligations, also going beyond compliance by investing "more" in human capital, the environment and relationships with stakeholders. It is not enough to make wealth since social and environmental wellness must be sought to protect natural resources for the next generations.
Evolution of the responsibility of entrepreneurs with society: John Ruskin (1860) Unto this last, shares the central idea of commercial exchange with justice, affection and solidarity in the economic and social environment, to build welfare for nations. Howard Bowen (1953) businessmen must have Social Responsibility to improve the impact of big companies in the social, environmental and economic areas of the regions to blend with the State policies, and the oriented business objectives with the objectives and values of the society. Keith David (1960) questioned: Can businesses ignore corporate social responsibility? A question that led him to provide ideas for the business sector to integrate social responsibility activities. In 1968, the Club of Rome made up of researchers, academics and experts began to design models to see the trends in the deterioration of non-renewable resources, leading to the book The Limits to Growth.
Friedman Milton (1970) contribution "the responsibility of the directors of the companies is to increase the benefits of the shareholders and altruistic, philanthropic activities can be carried out, with donations and temporary assistance" led companies to continue seeing Social Responsibility as an altruistic and charitable activity, rather than being an activity seeking for the well-being of communities and regions.  Donella Meadows et al. (1972) in The Limits to Growth: showed that exponential population growth, industrialization, pollution, food production and overexploitation of natural resources will not be sustainable and will reach their limit in 100 years. Sethi, S. Prakash (1975), proposed three stages to implement CSR in companies: obligatory by regulations or by market, political and social pressure, socially responsible with measures to anticipate and prevent the impacts caused by the company. Carroll, A.B.A. (1979), proposes a conceptual model for companies to implement CSR: an economic, legal, ethical and discretionary approach.
By the end of the 1970s, the Fortune 500 companies aligned themselves on six central CSR themes: environment, equal opportunity, people, community integration, products and others. Drucker (1984)

Problem Statement:
What variables specific to companies, such as size, line of business, and proximity, as well as variables specific to managers of CSR activities, such as age, gender, education and income level, influence the perception of knowledge and maturity of CSR in large, micro, small and medium enterprises (MiPymes) in Mexico, during the period from 2013 to 2019?

Objectives:
The aim is to see if there is a difference between CSR perception and evolution, sustainability and budget among large companies and MSMEs in Mexico.

Null hypothesis (Ho) and Alternative (Ha):
Ho1: There is no significant difference between the perception of CSR among large and MSMEs in Mexico.

Ha1:
Is there a significant difference between the perception of CSR among large and

MSMEs in Mexico?
Ho2: There is no significant difference between the variables specific to companies such as size, turnover and age versus CSR activities.
Ha2: If there is a significant difference between the company's variables such as size, turnover and age versus the CSR activities.
Ho3: There is no significant difference between the demographic variables of employees such as age, sex, income, schooling and the implementation of CSR in large and Mipymes companies in Mexico.

ANALYSIS AND RESULTS
It was possible to infer and project the degree of knowledge, interest and management of Corporate Social Responsibility (CSR) in large companies (67%) and MSMEs (58.5%) in Mexico. The "maturity" level in large companies increased from 22% (2013)

70% of large companies have a CSR committee, but only 29% of them have Corporate
Governance, which is the least developed area of Corporate Social Responsibility in Mexico.
67% of large companies prefer to use the name of Corporate Social Responsibility for these activities; likewise, 58% of small companies also lean to the CSR term. Both large companies and MSMEs in 55% have 2 to 5 people working within the company on Social Responsibility issues, less than 25% have one person working on CSR. The Human Resources area generally carries out the CSR activities, the quality area by 15% and corporate affairs by 9%. Commonly, the person in charge of CSR has other functions within the company, being more notorious in the MiPymes since most of the time, the general manager is directly responsible for this activity.
Fortunately for this 2019, they see CSR as a contribution from the organizations to sustainable development in its three dimensions (social, economic and environmental). 78% of large companies have an annual budget allocated for structured CSR activities, but only 14% see it as a business strategy. Only 31% of Micro, Small and Medium Enterprises (MSMEs) have a budget but no clear structure to invest in CSR activities, which is still seen in this sector of the economy as altruistic or charitable work by the owners and managers of MSMEs. Large companies see CSR as a way to contribute to sustainable development with 49%, while 41% of small companies see it the same way. (2013) to 35% (2019). This slant also happened with "CSR as an expense to contribute to the welfare of society" from 28% (2013) to 21% (2019). "The perception of CSR as a business strategy" went from 17% (2013) to 14% (2019). There is a slant in "the perception of CSR as an investment" from 67% (2013) to 62% (2019). Despite the change in the percentages, some companies see CSR as an investment rather than an expense. There was a reduction in the percentages relating to the analysis of a business strategy to identify CSR actions made by companies, from 54% (2013)  In CSR as an expense, the percentages increased from 25% to 30% in the MiPymes. The large companies went from 15% (2013) to 25% (2019). Companies are interested in incrementing the annual budget for these activities and keeping the vision that it is an expense and not an investment that generates value. The CSR "maturity" level showed a 7% progress of the companies in Mexico. Concerning the CSR employees' profile, 73% are female, with an average age of 42 years, with professional schooling and CSR studies.
The most active business sector in CSR is transport and logistics with 88%, Banks with 83%, Energy and Extractive industry with 81%, Food and Beverages with 77%, Automotive with 74%, Construction and Infrastructure with 60%, Professional Services with 59% and Textiles and Footwear with 51%.
The fundamental subjects of CSR most developed by the Business Sector are labor practices with 59% of mentions, the environment (57%), Human Rights with 47%, Fair Operation Practices with 38%, Active Practices and Community Development 37%, Consumers with 34%; being Corporate Governance the least developed in the companies (29%).
In terms of how long they have been working with Corporate Social Responsibility (CSR), 30% of large companies have worked with CSR for more than 15 years, 41% of large companies in the service sector are more than 11 years old, 41% of trading companies and 39% of industrial companies.
There was a variation in the percentages about the investment of the Social responsibility annual budget. An increase in investment was reported from 37% in 2013 to 63% in 2019 in philanthropic and social activities. The percentages of "registrations to distinctive rankings, recognitions and awards" reported an increase from 18% (2013)  We have seen a stagnation in operating expense or social responsibility management and the training and continuous improvement process of these activities. In terms of money invested in CSR activities, 64% of large companies invest from two hundred thousand to more than six million pesos a year, while only 11% of MSMEs invest that same amount since 68% of MSMEs invest from one to two hundred thousand pesos. 58% of the large companies provide from two hundred thousand to more than six million pesos, and 65% of the MiPymes provide capital from one to two hundred thousand pesos.
Within the organizational structure, most suggest having a Social Responsibility department with a committee formed by Human Resources directors, Strategic Planning, Quality, Communication and Marketing, but reporting directly to the general director.
Materiality studies, to show CSR activities to stakeholders, importance increased since the percentage of the "level of knowledge of the concept of materiality" changed from 20% in 2013 to 35% in 2019. By 2019, only 43% of large companies had conducted a materiality study, while 60% of MSMEs have no plans to conduct materiality studies. 70% of large companies in the service sector have a materiality study, commerce with 44% and industry with 41%. In the MiPymes, the commerce sector reports 71%, industry 59% and service companies with 55%.
61% of the companies mention that their organization has a mechanism to identify their stakeholders, but they don't count on strategies to integrate their clients, suppliers, supply chain, etc., in their CSR strategies. The activities that are carried out more with suppliers are communication about the company's Social Responsibility actions (38%), selection based on social and environmental criteria (31%) and awareness in CSR (30%). Large companies select their suppliers based on social and Environmental standards in 35% of them, and only 30% communicate CSR actions and raise awareness among their suppliers; Likewise, MSMEs 46% communicates CSR actions, 33% raise awareness among their suppliers and 29% train or provide advice on SR. It is important to note that 50% of companies with less than three years of implementation of CSR activities tend to consult with their stakeholders to define their CSR strategies.
The actions taken by companies to involve stakeholders or collaborators in the theme of CSR are internal communication to publicize CSR activities with 72% in large companies and 57% in MSMEs; also, an invitation to take part in CSR programs with 68% in large companies and 51% in MSMEs. 51% with CSR awareness programs for employees in large companies and 45% in MSMEs. 44% of large companies with public recognition of employees actively participating in CSR programs by 28% in MSMEs. 23% of large companies with the integration of representatives from operational areas in the definition of CSR strategy, by 16% in MSMEs.
To implement Corporate Social Responsibility (CSR) in companies, we recommend a commitment from the management to define and formalize a Social Responsibility strategy. in 2013 to 52% in 2019. The return on investment in CSR projects in large companies went from 56% to 52%, while MSMEs went from 29% to 39%.
In the evaluation of the questions: "Should Social Responsibility be profitable?", it was 7.8 for large companies and MSMEs, and with the question: "Will investors and shareholders increasingly bet on companies whose social and environmental performance is above average?" that CSR activities have evolved as an expense and of little value to shareholders. The benefit most mentioned by the companies that have adopted CSR was to seek society's welfare with 64% of large companies and 56% of MSMEs, a better brand image, and an improved working environment and customer loyalty. 69% of companies do not work on CSR due to a lack of interest and involvement in the issue and a lack of communication since they do not have the necessary tools to do it properly. Companies consider that they do not communicate because they see CSR as a matter of principle (48% of large companies and 43% of MSMEs).
The main obstacles that Mexico faces in advancing issues related to CSR have been maintained in this period of 6 years, being the first ones: the government's attitude towards CSR (41% of large companies and 49% of MSMEs), a lack of dissemination of the concept of CSR (42% of large companies), the country's economic and social performance, confusion around the CSR concept (45% of large companies and 55% of MSMEs), lack of initiative from the private sector (39% of MSMEs), consumer behavior and the country's legal framework.
Over the next five years, companies will face the following challenges: how to measure social and environmental impacts efficiently (48%), to mainstream CSR within the company (38%) and develop solutions for climate change (34%). For large companies, the challenge they have to face is to measure the return on investment of CSR actions (38%), improve internal communication on CSR (37%), permeate CSR in the value chain (33%), and improve external communication on CSR (32%). For MSMEs, we observe the improvement of working conditions (27%), identify and measure their contribution to the objectives of sustainable development (25%) and work on internal improvements in environmental issues (24%). To promote CSR in Mexico, the government must reward the best results.
In the Sustainable Development Goals (SDGs), the large company rated with 6.43 in familiarity with the concept of SDGs, and MiPymes with 5.42. 72% of large companies identify SDGs as crucial, and 50% of them have already implemented SDGs to set internal goals; 62% of MiPymes also consider them necessary, but only 27% are implementing them. Companies with CSR activities between 7 and 10 years old are applying SDGs to define internal goals.
The commitments of the companies on the 17 goals of Agenda 2030 are:  Goal 5, gender equality, with 55%.
 Goal 8, decent work and economic growth, with 53%.
 Goal 3, health and well-being, with 47% The least mentioned SDG were: 14 Underwater Life and 2 Zero Hunger, In the analysis by Economy Sector, was established.

Trade:
 Goal 3: health and well-being, with 51%  Goal 8: decent work and economic growth, with 44%  Goal 17: a partnership to achieve the objectives, with 42%  Goal 5: Gender equality, with 32%  Goal 13: climate action, with 32%  Goal 12: responsible production and consumption, with 32%  Goal 11: sustainable cities and communities, with 29%

CONCLUSION AND DISCUSSION
A level of progress can be seen in the fundamental matters of CSR in these six years, being the topics of the Labor Practice the activity with 59% of progress, followed by Environment activities, with 57%, Human Rights, with 47%, Fair Operation Practices with 38% of progress, Active Participation and Community Development with 37%, Consumers with 34% and Corporate Governance with 29%. See figure 6.