Sustainability of a Community-Based Enterprise through shared value. Case: Mallay Communal Company

William Munoz Marticorena

Abstract


The relationship of a community-based enterprise (CBE) and a mining company was reviewed from the perspective of shared value creation. Specifically, through the study of the Mallay CBE and its interaction with the Buenaventura mining company, the opportunity to create economic value by creating value for the community was verified. The CBE is an organizational innovation whose management is oriented towards the market, integrating its activities with the operative dynamics of the mining company through the provision of services. CBE focuses on member’s economic benefit and the social welfare of the broader community. There are, however, barriers that limit the growth and optimization of the desired impacts caused by this articulation. Despite this, the economic and social value generated is significant and the defined growth model under certain circumstances could be replicable and scalable.


Keywords


Community-based enterprise; Shared value; Economic value; Social value; Value chain; Peasant communities

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References


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DOI: http://dx.doi.org/10.1344/jesb2018.1.j041

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