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Argentine cities join forces with B companies in the search for a "more humane capitalism"

2022-11-08T19:37:47.867Z


Rosario hosts the National Meeting of the Global B Movement, where the private sector asks to be part of the change towards sustainable development


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“Wetlands law now”, “Enough burning us” are read on banners placed at the entrance of Rosario, the third most important city in Argentina.

Environmental degradation has become very visible here in recent years due to the fires that devastate the islands of the Paraná River: the smoke suffocates and causes respiratory problems for its inhabitants.

In this climate emergency context, with citizens mobilized in favor of the protection of the riverside ecosystem, the city seeks to transform the development paradigm and bet on a more sustainable and equitable economic model.

"From 40 years old and below, environmental awareness is very strong," assured the mayor of Rosario, Pablo Javkin, during the National Meeting of the global B movement held in the city last Friday, which brought together key actors to accelerate the new economies in Argentina.

The lack of reaction from the national State has led the big cities to take the lead.

Mendoza was the first Argentine city to launch and accompany citizen initiatives to promote change, and Rosario now seeks to follow in its footsteps.

In this transition, there are a handful of companies that ask to play a key role.

Unlike most businesses, they do not measure success only by economic profitability, but also by positive contribution to society and the environment.

These companies want to be taken into account as agents of change and demand laws from governments that recognize and favor them.

In Latin America, close to 900 firms have received the international certification of B companies to date, which is awarded for their social and environmental performance.

Of those, a total of 192 are in Argentina, according to data from Sistema B, a non-profit organization that provides tools to transform traditional business models into triple-impact businesses (those that generate economic, social and environmental value), and create others from scratch with this philosophy.

"At Sistema B we believe that companies can and should be agents of change that lead the way towards a more equitable, inclusive and regenerative economy, and ensure the sustainable development of communities, at the same time as their own businesses," says the co-president of the organization, Cecilia Peluso.

“We seek to be a bridge so that more and more companies dare to walk the path towards a more humane, fair and sustainable capitalism.

We are convinced that eventually this will be the only possible way to do business”, she assures.

"What is the point of an economy that grows financially but, by its very nature, increases inequity, depletes the earth's resources and deepens the exclusion of people?" asked the businessman Pedro Friedrich to the participants of the National Meeting of the movement global B. His company, Tonka, created in the 1990s, turned to alternative energy a decade ago and today manufactures and markets solar pumps and generators and panel structures.

BIC Law

One of the main demands made by the business sector is the approval of the Law on Collective Benefit and Interest Companies (BIC), which provides legal recognition to companies that integrate the creation of economic, social and environmental value.

Countries such as Peru, Ecuador and Colombia already have a BIC law, but in Argentina none of the three projects presented to Congress have received parliamentary treatment.

The owners of triple impact companies consider that with this legal recognition it would be easier to access preferential purchases by public institutions or obtain credit facilities.

These actors also demand a cultural change.

"It's difficult because what matters to the customer is the price," says Peluso, owner of the Limpiolux cleaning services company.

Other factors —such as the company's impact on the environment, the treatment of workers, the quality of service or transparency— take a backseat in a country like Argentina where almost half the population works in the informal sector and It is common for companies to offer discounts if no invoice is made.

The B companies are for now drops of water in the vast flow of the Paraná, but they trust that they will be more and more as the environmental urgency grows.

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Source: elparis

All news articles on 2022-11-08

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