Figure 14. ESA and the ESA factors at the Cosmetic Company

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communication campaigns and their engagement in environmental conservation initiatives and socially based investments.

A dynamic business model was observed at Cosmetic Company when it increased their portion of the market through efficient and innovative ways of conducting business and product innovation. Specifically, they have developed green innovative products with more natural ingredients and green processes practices such as cleaner production.

The firm has performed R&D investments through own research centers, in order to develop new products for market adaptation and lower their environmental foot print. The firm has the capability of establishing and managing long and reliable relationships with stakeholders (e.g.: consultants, academia and stakeholders), which has allowed it to be one of the leaders of the market. Finally, the operational efficiency capabilities of the firm have allowed it to undergo continuous improvement through eco-efficiency practices.

Finally, the manager´s perspective towards a profits supported the development of greener products and the implementation of eco-efficiency programs to develop the purpose of the company, in order to achieve a winwin deal and accomplish the goals of the company. Likewise, the CEO has supported program for women (i.e. sales consultants) to strengthen their leadership and entrepreneurship capabilities and improve the firm´s performance, which is a consultant-based and prosperous business.

Green markets and competitors

Gree Environmental n products strategy Strategies Adoption

Profit-oriented managers Dynamic Business models

Figure 14. ESA and the ESA factors at the Cosmetic Company.

150 | Carlos Fúquene Retamoso

4.7. Dairy Company

Dairy company is a food and milky drink Colombian company that was established in the middle of the twentieth century The portfolio of Dairy Company has evolved from milky drink products to healthy and sustainably manufactured products. Dairy Company has reported a net income over 300 million USD and, by the year 2019, they issued preferential shares for private investors in order to leverage their growth and expand operations (Periódico Portafolio, 2019).

• Observed environmental practices

The environmental strategies of the Dairy Company were associated with green products design (i.e. sustainable packaging) in addition to green processes (i.e. operational efficiency) strategies and their commitment to social innovation projects focused on building capacities in supply chains and the adoption of voluntary standards.

In relation to the environmental strategies of the firm, an interviewee has mentioned that “practices originate from the analysis of materials and the environmental impact assessment of the value chain, which are mainly associated to: - Development of Carbon neutral products - Greening of processes through the use eco-indicators and the establishment of plans to improve the company´s performance, such as reduction in water consumption for the laundry operations of the company’s equipment. - Responsible packaging through the reduction of layer thickness, which has allowed them to save the equivalent of 187 tons of plastic bags per year. - Sustainable livestock through the promotion of zero deforestation on the part of their milk suppliers …”

Dairy Company has developed green products by performing actions to diminish the environmental impact of their products. Specifically, they have received certifications for three of their products as carbon neutral, which is a global initiative, intended to offset CO2 emissions and promote climate change compensation activities. In relation to sustainable packaging, in 2019

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the company reduced 10% of the plastic they use for long-life product packaging. This is equivalent to the reduction of 180 tons of plastic and 480 tons of CO2 per year, thus lessening the Carbon Footprint.

Dairy Company has also implemented greener processes like eco-efficient solutions, including the improvement of both operational efficiency and water and energy consumption at production plants. The company measures its operational environmental impacts and establishes specific actions (i.e. process improvement and automation) for the reduction of water and energy consumption. As a consequence, the company has saved more than 2700 million liters in the last 10 years (Dairy - Company, 2019)

Social innovation projects have been focused on building capacities in supply chains associated to strengthen the productivity of farmers in order to ensure better social conditions and boost the supply of raw milk for the consolidation of dairy basins that guarantee competitiveness in quantity, cost and quality. The building of capacities also includes the greening of cattle ranching which, in turn, allows carrying out a set of actions intended to avoid the deforestation of natural woodlands and impede the transformation of moors. This is being done through education programs directed to farmers in order maintain the conditions of the agro-ecosystems of the different regions of the country where the company buys milk.

Additionally, the firm was the first dairy company to subscribe an agreement with the Colombian Ministry of Environment, in order to subscribe a zero deforestation commitment in its cattle zones (Dairy - Company, 2019a). Finally, Company has been committed to social projects for the improvement of the quality of public education and the development of nutrition programs in rural areas influenced by the company.

In relation to environmental standards, Dairy Company has incorporated industry standards such as ISO 14001 in two of their production plants, while advancing in the extension of the certification to all their production plants (Dairy - Company, 2019b).

The current survey didn’t observe any environmental practices associated to obtaining social license from communities. Just as well, no specific community hearing processes applicable to dairy activities were detected. The company mitigates environmental impact associated to its manufacturing processes via product development, sustainable packaging, greening of the supply chain and technological innovation.