**Leading By Example.\
How to Institute CSR by Building Social Capital.**

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*

Juan Minetti, SA was founded in 1930 in the city of Córdoba. Today,
Grupo Minetti has Argentina´s second-largest production capacity of
cement and concrete. The Minetti Foundation was created in 1987 to
support programs that facilitate the self-help development of
individuals and their organizations, and to improve the standard of
living of low-income populations. Since then, it has donated cement for
community construction projects, provided training and other resources
to unemployed workers and community organizations, and promoted social
responsibility among other Argentine corporations.

The Minetti Foundation is considered a leader in CSR. It is a member of
Argentina's prestigious Group of Foundations that includes Bunge and
Born Foundation, YPF Foundation, Telefónica Foundation, Bank Boston
Foundation, MAPFRE Foundation, Navarro Viola Foundation, the Kellogg
Foundation, the C&A Institute and the ARCOR Foundation.

As a result of its partnership with the Inter-American Foundation (IAF),
the Minetti Foundation is now playing an even larger role than funding
grants in the community. It is an example to Argentine corporations
looking to improve their social responsibility programs. When a large
company that donates far more than the Minetti Foundation found its
production and transportation disrupted by social protests, it came to
Minetti for help. According to Andrea Schettini, Minetti Foundation
Program Coordinator, "representatives of this company came to us, asking
in part, 'How do you do so much with so little?'"

**Building Bridges.**

Between 1997 and 2001, the Minetti Foundation and the IAF contributed
\$285,000 each to create the "Building Bridges Fund\", which provided
grants to 28 community organizations in the province of Córdoba. While
the focus of this fund was primarily informal education, the guiding
principle was that of building *relationship capital---*for Grupo
Minetti and for the grant recipients*.* As a result, there were 28 grant
recipients. More impressive, however, is that there were nearly 250
participating organizations that mobilized a total of \$884,000 in cash
and in-kind resources which was 150% more that the actual financing
awarded through the Building Bridges grants.

As a result of the track record established by "Building Bridges," in
2001 the Minetti Foundation leveraged \$120,000 from Spain-based
Telefónica Foundation to complement its \$170,000 for a technical
assistance fund for community organizations, housed at the Business
School at Córdoba's Catholic University. In 2002, US-based Hispanics in
Philanthropy matched that \$290,000 dollar for dollar.

As part of its continuing leadership, the Minetti Foundation also held a
workshop for several businesses in the province of Buenos Aires. The
majority agreed on the benefits of adopting the Minetti Foundation's
philosophy and methodology, i.e. shifting from simple donations to
financing projects that strengthen local organizations. Already, five
companies have joined forces to support a local educational project and
plan to provide monitoring and other follow-up. According to Ms.
Schettini, "the Argentine crisis has caused our work to be in high
demand by other corporations. Many have the desire to help, but no
methodology."

Building Bridges Improves the Minetti Foundation's Stature and
Effectiveness.\
The IAF's value added in this partnership has been the transfer of its
Grassroots Development Framework tool for measuring project results.
According to Schettini, "We now have results information that goes
beyond the numbers of beneficiaries and training hours." Minetti and its
grantees now know exactly how many project beneficiaries have increased
skills and practices in areas ranging from reading and writing to
improved diet and nutrition to new income-generating activities. The
lessons learned from "Building Bridges" has improved the effectiveness
of virtually all of the Foundation's programs.

Every successful businessperson knows that relationship capital is as
important as financial capital. Furthermore, positive corporate image,
visibility and a loyal work force are key to the remaining competitive
in ever-tight markets. While the Minetti Foundation was created to "do
good" in the community, these are examples of the returns it has
produced, especially from creating its first grant-making fund,
"Building Bridges".

**When a Small Grant Transforms an Entire Community.*\
***Like Grupo Minetti, the Minetti Foundation knows how to take
calculated risks that yield high returns on a small investment. For
example, "Building Bridges" provided a grant of 15,000 pesos to La
Merced Housing and Service Cooperative in a semi-rural community both
impoverished and isolated*---*physically, economically, socially and
culturally. Both adults and children suffered high rates of illiteracy
because the written word was virtually absent: no street signs, no sign
indicating the name of the school, and worse, no books.

With support from "Building Bridges," a group of concerned parents,
educators and social workers initiated a program of educational support
for at-risk students that evolved into an ongoing, youth-led project
involving 80 children. Youth involved in "The Kids Place" tutor their
younger peers and develop other extra-curricular activities that help
both groups stay in school---and succeed there. A follow-up grant was
made to the organization that emerged from the project, Protagonism for
Community Activities (PROCOM).

After just three years, the transformation is unmistakable. Today, two
12-year-old librarians hunch over a notebook, writing slowly and
carefully as they sign books in and out of a community children´s
library. The \"Kid´s\" community center is covered with colorful posters
listing the group\'s objectives and achievements, and each cubby and
pencil holder is carefully labeled with a handwritten sign. Furthermore,
visitors are given a copy of *Little Workers,* the youth's literary
magazine filled with their own stories and poems.

According to project coordinator Adriana Alanis, "More than just the
money, it was the encouragement that we received in our visits from the
Minetti Foundation, the training, and the opportunity to learn from
other groups, such as how to start our library, step-by-step. The money
is important, but the other is just as critical." One of the most
dramatic project results is that the community has come together to make
it sustainable. "There are many urgent needs in this community, even
hunger, so we've begun producing food. If we secure outside help, we
will be able to respond more quickly. If not, we will still succeed,
just more slowly. But the commitment and protagonism are there. That´s
what´s new."

With support from "Building Bridges," PROCOM published a small book that
details their experience with this project. As a result, La Merced is
often showcased as a model for community development---and has received
unsolicited donations for their work. According to Ms. Alanis, "One
woman who read the book called to say she wanted to help but wanted
anonymity. So twice a week we go by and the manager of her apartment
building hands us what we need to provide nutritional snacks to the
children at 'The Kid´s Place.'" Others provide scholarships for the
students. Support from "Building Bridges" has also given other grantee
organizations the experience and track record that has allowed them to
mobilize public and private resources, local and nationally.

**Lessons Learned:**

-   Money is a small part of the equation. According to Andrea
    Schettini, "One of the lessons Grupo Minetti gained from this
    experience is that money is only one component of the success of our
    donations. By adding a small investment in training and the moral
    and technical support we provide on monitoring visits, our grants
    have transformed entire communities and improved the lives of
    thousands of children and families."

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-   It is eminently possible to measure the qualitative and quantitative
    results of social investments. According to Ms. Schettini, "Many
    businesses have expressed concern that it is impossible to learn the
    results of one´s investments. We know the contrary is true."

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-   Financing incipient community groups yields high returns with little
    overhead. "By deciding to trust carefully selected community
    organizations to receive grants rather than designing and
    implementing our own programs, we have been able to benefit tens of
    thousands of individuals while maintaining a stable staff of only
    two employees."

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-   It is perfectly feasible to create a first-time small projects
    fund---the methodology is there. "The Inter-American Foundation
    provided the Minetti Foundation with the necessary tools and
    methods, as well as the wisdom and advice based on their 30 years of
    experience in making grants to grassroots groups. With the IAF´s
    assistance, we learned from scratch how to administer this fund, and
    it has enhanced all areas of our work."

Martha Farmelo is a former Representative of the Inter-American
Foundation and is currently a fellow of the Institute of Current World
Affairs based in Buenos Aires, Argentina.