Table 27. Business Model – Agri-business

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Environmental practices supported by technological capabilities have been related with the implementation of efficient and environmentally friendly processes for the development of organic products, including sustainable characteristics in farms such as water saving, diminishment of water waste, reduction of pollution and the use of residues (Agricultural the Association, 2017).

Table 27. Business Model – Agri-business.

Esa factor Category Main features

Business model

Dynamic * R&D investments for the development of organic products. * Use of technological capabilities to support sustainable agricultural practices. * Brand positioning by offering an organic agricultural product and by incorporating social projects with marketing activities * Management of relations with stakeholders and communities to position Association as socially focused.

c) Manager’s perspective

The manager is Colombian and started to work in the company in 1991, when he was 30 years old, occupying the following positions: Logistics Operator Manager, Administrative and Financial Manager, Manager of Distribution Stores and General Manager. His work experience during more than 20 years in the Company has focused on logistics, planning and control and management (La Silla Vacía, 2016).

Under his position, 2.800 million trees were renovated (El Tiempo Newspaper, 2014), 120.000 farmers were certified as organic product farmers and 320.000 ha of climate resilient crops were bred.

Main features observed in the manager`s perspective were associated with the manager´s personal values, in conjunction with his favorable attitude towards economic responsibilities and a transactional leadership style.

- Personal values

The CEO exhibits independent thought and action to improve the welfare of associates. For example, the CEO states, in relation to his personal values:

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“It is necessary to face the coming challenges with conviction, in an independent, organized and deliberative manner”.

Different behaviors of the CEO in the past have shown he is an autonomous person that is able to choose and maintain his own decisions. For example, the Colombian government issued a set of recommendations for the management of this agricultural product in Colombia in terms of eliminating subsidies, eliminating the intervention of the Association in agricultural policy and separating export activities from productive activities (Amat, 2015). But the Manager was against the policies proposed by the governmental commission for the management of this agricultural product. He stated: “the erroneous assessment of the report, coincides with the clamor of some multinational corporations that try to remove the Association, which impedes them to place the price they want for the agricultural harvest, causing harm to smallholders, as they do in the rest of the countries of America, where there is no State in the market” (Dorado, 2015). The commissioner recognized that the government was not able to implement its policy because of the manager’s position about the recommendation of the government (Amat, 2015).

In acknowledging his concern about independent thought and action, the CEO exhibits self-direction as his main personal value. He preferred to quit his job before accepting the recommendation of the government in the sense of introducing deep changes in the Association and putting in risk the welfare of the associates. Autonomous modes of behavior became expressions of the CEO’s need for freedom to choose his own goals in the benefit of the associates. The CEO’s self-direction supported the implementation of projects for the welfare and prosperity of the associates.

- Perspective towards ESA.

The CEO mentions that it is possible to:

… “Guide, organize, promote and regulate the Colombian agricultural industry, seeking the welfare of farmers (associates) through the following mechanisms: collaboration, participation and promotion of the economic, scientific, technological, industrial and commercial characteristics of the industry” ...

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CEO also states: “This perspective is what has allowed farmers to achieve consensus and unity. He ends up saying: “We must rethink our strategy and redefine, re-orientate, adjust and improve everything that is necessary to assure the welfare of the farmers and the regions where they are located” (Manager statement, 2013).

The former statement suggests that the CEO’s perspective on ESA focuses on profits through the creation of economic value for shareholder (farmers) satisfaction. In the CEO’s attitude toward profits, his responsibility relates to the creation of value for farmers while at the same time implementing environmental practices associated to good business practices such as increase in productivity and growth of organic products. Besides, the CEO’s perspective toward profits supported environmental practices associated to resource management and cleaner production to intensify process optimization through the adoption of environmentally friendly technologies.

CEO also has mentioned that the environmental perspective for the strategic plan 2015 - 2020 is focused in risk management by using technology and deploying plans for biodiversity conservation in order to adapt to the effects of climate change. He also adds that is necessary to adjust environmental regulations to be able to manage environmental resources (Agricultural Association, 2014).

- Leadership style

CEO’s leadership style corresponds to a transactional one, in the sense of improving the economic conditions of the farmers by giving them access to a better income. Besides, a transactional leadership involves reciprocity among people that might respond in similar ways to each other. For example, regarding reciprocity, the CEO manifests:

… “An extensive process of consultation with the associates has been carried out through the Municipal and Departmental Committees of Farmers, who in a participatory manner expressed their problems and their challenges for the future. By this reason, the Strategic Plan is based precisely on the four pillars of sustainable development: economic, social, environmental and institutional, which is coherent and consistent with the development and welfare of the farmer population” ...

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CEO implemented a consultation process with the associates in order to develop the Association’s strategic plan. This process allowed an exchange of ideas for the construction of the strategy. By leading a reciprocal process, his leadership style fits the transactional one. The CEO mentioned:

… “The guidelines and strategies adopted in the Plan require institutional adjustments to achieve the goals we have agreed upon” ...

From the following quotes, it is clear that that there is a form of leadership focused on clear goals and desired outcomes in relation to environmental issues, which correspond to:

… “We are focusing on climate risk management… the product is being prepared technologically to face the changing climate, by adapting our production systems” … … “In relation to environmental mitigation, special emphasis is put on biodiversity conservation, in conjunction with waste management, environmental education and protection of wetlands, among other issues” … “in terms of resource management, it is necessary to intensify process optimization through the adoption of environmentally friendly technologies such as cleaner technologies”

The CEO’s leadership style supported climate risk management strategies, including resilient crops and biodiversity conservation programs for stabilization of soils and basins. Climate risk management has focused on preparing the product and adapting the production systems to face the changing climate. The CEO mentioned as one of his achievements the support of the practices towards climate risk management:

… “Despite the inclement weather that brought our production to a minimum of 7.8 million bags, we managed to recover it to historical levels of 12.5 million bags of green coffee and with an increasing trend, a result that finds its explanation in the renovation of 3,358 million trees” … (the CEO, 2015)