Table 17. ESA – Utility Company

106 | Carlos Fúquene Retamoso

and the construction of bridges and schools), promotion of sports and cultural activities in municipal festivals and the development of reforestation and environmental education programs, emphasizing the use of energy in a responsible manner (Utility Company, 2018).

In relation to lobbying activities, Utility Company has raised petitions in conjunction with industry associations to avoid the impact of regulation over the industry (Utility Company, 2016b). On the other hand, Company has decided to form alliances with the local government to launch a program to promote the use of electrical cars. Furthermore, Company structured a partnership with a car-sharing company, to set an electric-car rental offer on an hourly or daily basis.

Reputation management was assumed through socialization campaigns intended not only to present the company as environmentally and socially focused, but also for the management of relations with stakeholders to position the company before the community. Utility Company has also developed workshops to support the environmental programs of educational institutions and has trained ecological groups and social actors on the management of solid waste and the handling of agrochemicals (Utility Company, 2018).

Table 17. ESA - Utility Company

observed environmental practices

* Environmental management plans to satisfy the requirements of environmental licensing * Application for mandatory permits * Substitution of restricted materials * Participation in social initiatives required by law * Pollution control for the control of air emissions and the disposal of hazardous materials. * Adoption of industry standards (e.g. UN Global Compact, GRI Guidelines and ISO 14001) * Participation in voluntary programs * Implementation of practices to achieve efficiency in resource management through housekeeping and preventive maintenance * Engagement in lobbying activities * Forming of alliances with governmental organizations and private companies to foster electric mobility * Support for educational programs related to environmental and energy matters. * Support for employee participation in voluntary programs related to social activities. * Support for social entrepreneurship such as fish farming, agricultural and livestock projects in the surrounding communities of the facilities of the company.

Case studies | 107

• ESA Factors

a) Business context.

Coercive pressures such as environmental regulation and community pressure constituted an influencing factor for the adoption of environmental strategies in the Company, which installs its power plants nearby environmentally sensitive areas. Company is subject to environmental licensing and the supervision of authorities in order to develop plans for managing the impacts originated in the development of infrastructure and the execution of energy generation projects.

Hearing processes and informed consent occur mainly in industry sectors in which there is a plan to develop projects associated to the exploitation of natural resources, which is the present case (G. Rodriguez, 2014). On top of local authorities, social license constituted a key mechanism to propel the development of social projects. Social license has been exerted by farmer communities located near to the facilities of the company. “For Utility Company it has always been a priority to keep users informed in a timely and efficient manner about our innovative focus and sustainable management” (Utility Company, 2018). As an example of the activities conducted by the company to comply with the law and compensate nearby communities it was found the following statement:

…“Due to Water Hyacinthus7 bloom in the dam … company identified a practice to compensate communities… Company researched [about this problem] and found that this [aquatic plant] could be used for paper production… Company involved single mothers in the project, in conjunction with employees of the firm… This practice involved two benefits: protection of single mothers and decontamination of the dam”. (Barrera, 2015)

Normative pressures such as parent company guidelines also constituted an influencing factor for the adoption of environmental strategies. Being part of a holding group has led the local company to incorporate some parent company guidelines into the local operation through occupational health programs and corporate governance (Utility Company, 2018).

7 Water Hyacinthus is a free-floating perennial plant (TexasA&M, 2017)