Communities

The Gerdau Group believes that the engagement of society is essential for the development of intelligent solutions to global problems, and that the mere transfer of resources is insufficient to transform realities.

For this reason, it seeks to broaden the scope of the social projects it supports, through mobilizing its employees, customers, suppliers and communities, together with public and social institutions. The Gerdau Group also assists the leaders of its social projects by making available the management practices that have helped it become one of the world’s largest steelmakers.

The Gerdau Group’s social policies and guidelines are coordinated by the Gerdau Institute, which also works alongside all business areas in identifying development opportunities for sustainability projects. In 2006, the Group invested R$ 51.6 million in 817 initiatives that helped around 13.2 million people.

In less than two years, the Gerdau Institute has had significant successes: systematizing the transfer of resources to communities through the use of clear parameters and criteria, integrating the experiences built up by the various units, bringing together employees as volunteers in common projects, creating communication channels and tools for interaction with the various stakeholders involved in the activities, and encouraging the sharing and publicizing of successful experiences.

Currently overseeing initiatives in Brazil, the Institute will begin activities in Argentina, Chile, Colombia and Uruguay in 2007 and in the United States, Canada, Spain and Peru in 2008.

In Brazil, one of the ways in which the Gerdau Institute encourages customers, suppliers, partners and communities to develop social initiatives is through the Gerdau Professionals Pro-Childhood Fund. The project informs society and raises awareness of the importance of devoting a portion of the income tax they owe to social institutions focused on children and teenagers. In 2006, 61 motivational lectures were held by important Brazilian entities such as the Federation of Industries of São Paulo (FIESP), encouraging the adoption of the program.

Since its launch, the Pro-Childhood Fund has invested more than R$ 16.5 million in resources from the Gerdau Group and its employees in 202 social projects, benefiting 28,300 children and teenagers.

Areas of activity

The Gerdau Group supports initiatives in the areas of education and community building, according to the needs of the local communities.

Education
Quality in education

During 2006, the Gerdau Group invested R$ 7.8 million in 94 projects to improve the quality of education, especially in elementary education. The initiatives were focused mainly on teacher training and improving the management of public schools, benefiting 595,200 teachers, students and school principals.

Project example:
PARTNERSHIP FOR SOCIAL CHANGE

Through the Gerdau Institute, the Gerdau Group announced its institutional support in 2006 for Futura Channel, a social communication project coordinated by the Roberto Marinho Foundation. It helps millions of Brazilians, and has a direct impact on around 12,000 public schools, day care facilities, hospitals, prisons, health centers, universities, NGOs, libraries, trade unions, companies and public bodies. Created in 1997 and maintained by 13 companies and private organizations, Futura Channel contributes to the education and development of the Brazilian people. Currently, around 19 million people watch its programs throughout Brazil.

“The Gerdau Group is a long-term partner of the Roberto Marinho Foundation. Together, we carry out important projects, such as the Young Scientist Award, which was a pioneer in encouraging scientific research,” said Hugo Barreto, general secretary of the Roberto Marinho Foundation and president of the Group of Institutes, Foundations and Enterprises (GIFE). “Support for Futura Channel will consolidate the Group’s position in regard to the urgent need to improve the quality of Brazilian education.”

The partnership is strengthening the operations of Futura Channel in communities surrounding the main Gerdau Group units. The Gerdau Institute can suggest specific themes for the creation of programs on education, the environment, consumer awareness, job training, and extracurricular activities for public school students, among others.

Education for entrepreneurship and competitiveness

The Gerdau Group believes that entrepreneurial attitudes transform societies, generate jobs and improve the quality of life of individuals. In 2006, a total of R$ 12.5 million was invested in 82 projects, assisting around 2.6 million people.

Project example:
YOUNG PEOPLE PREPARED FOR THE JOB MARKET

Since 1994, the Gerdau Group has supported Junior Achievement, a non-profit organization that trains elementary, high school and university students for the world of business. The aim is to awaken the entrepreneurial spirit in young people who are still studying, to encourage personal development, offer a clear view of the world of business and ease access into the job market.

To this end, Junior Achievement offers theoretical and practical programs based on education and experience in the free enterprise system. The young participants create companies, develop products and take part in the day-to-day work of a professional, among other activities. The project is supported by the volunteer work of Gerdau Group employees who take part in the students’ development. In 2006, Junior Achievement was active in around 100 countries, benefiting over 7 million young people. The organization reached 211,400 students in Brazil alone.

Education in quality management for the third sector

The Gerdau Group offers management methodologies and tools to help non-profit organizations increase their management quality. In 2006, R$ 40,600 was invested in two projects which trained 40 representatives from such institutions.

Project example:
THE BEST FORM OF COOPERATION

The Gerdau Group believes that the use of appropriate management tools magnifies the ability of social institutions to transform society. For this reason, it created the Leadership Development Program, in partnership with NGO Volunteer Partners.

During 2006, almost 40 leaders of public schools and social organizations were trained in the use of modern management practices, which will make their projects and initiatives self-sustainable, leveraging results and benefiting the community. Gerdau Group employees ran the 86-hour course on a volunteer basis.

The work was developed in 2006 in the towns of Charqueadas and Sapucaia do Sul (state of Rio Grande do Sul, Brazil), where the Group has steel mills.

Education through culture and sport

These initiatives seek to encourage the development of self-esteem and awareness, especially in children and teenagers, with an emphasis on sporting and cultural programs that promote community involvement. In 2006, 97 programs received R$ 19 million in investments and reached more than 1.6 million people.

Project example:
SPORT BUILDS YOUNG CITIZENS

Playing a sport is one of the most effective options for encouraging children and teenagers to become citizens with an awareness of, and a responsibility for, their role in society. Based on this belief, the Gerdau Group supported the creation of the Tennis Foundation in Brazil and Uruguay, benefiting young people in vulnerable situations. Through tennis lessons, the participants learn values such as responsibility, respect and cooperation, which are fundamental in making good citizens.

In 2006, around 450 children benefited from the project in Porto Alegre (Brazil) and Maldonado (Uruguay). In 2007, the program will be expanded to include the Uruguayan capital, Montevideo.

OPERA FOR ALL

To make opera popular and put it within everyone’s reach: this was the commitment taken on by the Spanish steelmaker Sidenor in supporting the Bilbao Friends of the Opera Association, one of the most important and traditional promoters of the art in the Bilbao area.

The Association holds courses and didactic concerts for school groups, as well as guided visits to rehearsals and production of certain works, all with the aim of increasing interest in opera among young people. The activities allow children and teenagers to appreciate the charm and magic of an operatic production, an art form that moves audiences the world over.

The seasons organized by the Association have won national and international recognition, with each one attracting an average audience of 70,000. The nonprofit organization was founded in 1953 and now has 6,500 members.

Environmental education

The task of raising environmental awareness within communities is performed through projects that encourage a sustainable relationship with the environment. In 2006, the Gerdau Group invested R$ 1.1 million in 35 initiatives that helped 773,000 people.

Project example:
CONTRIBUTION FOR FUTURE GENERATIONS

Containing global warming is one of humanity’s great challenges. With this in mind, Gerdau AZA, in Chile, signed an agreement with the NGO RPA Cultiva to reforest Cerro Calán, an important landmark in the Chilean capital, Santiago. Hundreds of students will plant 16,000 native trees in an area of 30 hectares. The initiative should be completed in 2007.

The trees will produce 1,400 metric tons of oxygen per year and remove 360 metric tons of dust from the air. The Santiago Metropolitan Region is regarded as one of the most atmospherically polluted areas on the planet. Dispersal of airborne pollutants is hindered by the city’s geographical location, in a valley surrounded by the Andes. Reforestation is viewed as the best solution for improving air quality.

According to Guillermo Scallan, director of RPA Cultiva, the success of the project is due largely to support from Gerdau AZA. The initiative received the Bicentenary Seal from Chilean president Michelle Bachelet, in recognition of its contribution to the development of the country.

Community building

Meeting the emergency needs of its communities is another focus of the Gerdau Group’s social activities. The initiatives range from the donation of food and clothing to the establishment of low-cost restaurants for low-income communities.

In 2006, the 507 projects supported by the Gerdau Group in this area received investments of R$ 11.2 million and benefited 7.7 million people.

Project example:
VOLUNTEER WORK ENGAGES EMPLOYEES FROM BRAZIL AND THE UNITED STATES

Volunteer work motivates Gerdau Group employees. In 2006, the Gerdau Volunteer Cup in Brazil brought together more than 6,000 employees in a Gerdau Institute initiative to encourage volunteer work. In the United States, Gerdau Ameristeel Knoxville Fabrication (Tennessee), Gerdau Ameristeel Jackson (Tennessee) and Gerdau Ameristeel Wilton (Iowa) established a partnership with their local chambers of commerce to create a volunteer network that supports the schools in the region.

The Gerdau Volunteer Cup benefited more than 130,500 people in 76 Brazilian cities. Institutions received donations and management advice, as well as being encouraged to carry out income-generating activities. One of these tasks resulted in the creation of a costume jewelry cooperative at the Tia Madalena childcare center in the state of Pernambuco. The money earned through the sale of the products is used to improve the center. “Volunteer work makes such a big difference and you can see it in people’s eyes, faces and smiles. It is touching and the gains are mutual,” said Gerdau Açonorte employee Maria Áurea Ferreira Viana Barros.

The Gerdau Ameristeel plants took part in the national Partnership in Education program. Gerdau employees teach business techniques to young people and follow up on those who need extra lessons. They also take the kids to see the daily routine at the plants. “It is very satisfying to be part of a child’s schooling. You leave with a really good feeling,” said Lisa Bryson, mentor and Gerdau Ameristeel employee.

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