Table 25. ESA – Agri-business

130 | Carlos Fúquene Retamoso

… “The strategies gave the following results: currently, 197.000 farmers have been certified or verified for the sustainable production of the product… and … in the last six years, an additional income of around 60 million dollars was generated for the benefit of the coffee growers and their families” …

Industry standards included the a∫doption of ISO 14001 for innovation in their products and processes, together with the adoption of fair trade seals to benefit agricultural producers located at the end of the supply chain.

Climate change adaptation strategies included the establishment of a smart agricultural practice for developing new crop varieties that counter climate change. In order to do that, the Association created a research center for evaluating different agricultural practices to deal with climate change phenomena.

The Association implemented agricultural best practices through water management, green R&D and the involvement of the farmers in the adoption of pollution reduction practices. Sustainable practices included, for example, a dry depulping process to reduce water consumption and wastewater disposal, cleaner technologies and processes optimization.

Practices for environmental conservation were related to reforestation and the protection of soil and water systems, including the preservation of wetlands along the agricultural zone. The biodiversity program became a complementary environmental business for the Association, by providing an environmental service.

Table 25. ESA – Agri-business.

environmental practices

* Certification of organic products through R&D investments * Adoption of industry standards (i.e. ISO 14001) and sustainable agricultural practices such as rainforest Alliance, UTZ and 4C certification. * Engagement in environmental conservation initiatives through reforestation and protection of soil and water systems * Pollution reduction through water and energy management and implementation of best agricultural practices (i.e. cleaner technologies). * Implementation of climate change adaptation strategies, reduction of water consumption and responsible wastewater disposal. * Brand positioning by offering an organic agricultural product and by incorporating social projects with marketing activities

Case studies | 131

• ESA factors.

a) Business context:

Mimetic and normative pressures were observed as influencing factors for the adoption of environmental strategies.

Mimetic pressures such as main competitor practices instituted an influencing factor for the adoption of environmental strategies. In an interview with a local newspaper, the manager of the Association´s distribution channel mentioned that the “arrival of competitors had not affected them but, on the contrary, forced them to improve the standards” (Medina, 2015). Besides, the main competitor has implemented several initiatives to reduce the environmental impact of disposable cups such as “the first glass of recycled cardboard paper for hot drinks in the sector “launched in 2006, while the Association started its initiatives to reduce the environmental impact of disposable cups in 2018 through the “reusable cup program” (Bolaños, 2018; Diario del Sur, 2018).

In relation to the mimetic pressures, the sustainability officer mentioned to the researcher: “the business environment changed and after evaluating the strategy of their main competitor, the farmers realized that there was an opportunity to capture great value on the other side of the chain”. … “The change in the business environment was the main motivation for rethinking the Association´s objective” …

Additional examples of mimetic pressures included climate change strategies associated to establishing smart agricultural practices. In this sense, the main international competitor started to implement a climate change strategy in 2004, while the Association started to implement such a strategy in 2012.

Normative pressures such as international standards to satisfy consumer requirements became an influencing factor for the adoption of environmental strategies. For example, one respondent expressed the following sentiment: … “The demand for special Colombian products requires modifying the production standards of farmers. The Association promotes the development of special product programs including sustainable certified products … that make use of international standards for social, economic and environmental requirements” …

International market requirements from the US, Japan and European countries instituted the mechanisms for the adoption of environmental