sábado, 15 de agosto de 2009

Business Benefits: MSMES taking advantage of economies

Craft sector
The Community Relations Commission will come into effect in 2009-2015 to enhance the decision making that guarantee the implementation of ‘Business Centers as Meeting Places’ to pledge the project leadership to transfer business knowledge to ultimately activate business networks. In addition, it inherently will activate citizen observatories that monitor the progress/performance of the Commission.


Tourism sector
The Tourism Negotiation Commission will come into effect in 2009-2015 to enhance the decision making that guarantee the implementation of ‘Business Centers as Meeting Places’ to pledge the project leadership to transfer business knowledge to ultimately activate business networks. In addition, it inherently will activate citizen observatories that monitor the progress/performance of the Commission.

Feasible advice: business recommendations

Any policy even model is a guarantee to make a wise decision. Although, the following recommendations will enable the project to manage stakeholder relations and provide a responsible response to systematically solve its common problem: non responsible dialogue with its stakeholders.

Therefore, and based on the stakeholder mapping is determined that scenario three will allow my client to systematically solve its problem. From that perspective, the feasible advice given will enable to manage stakeholder relations (Stakeholder Management) to enhance a responsible stakeholder dialogue.
Scenario 3: University of Pittsburgh states that there is a lack of comprehension of historical/cultural process (traditions and values) that tackle the cooperation relations of Kichwa-Otavalo ethnic. From that perspective, the project will be on the capacity to i) establish/sustain a responsible stakeholder dialogue process with core stakeholders (MSMES) ii) enhancing the commitment and involvement of strategic stakeholders (Municipality and government/private institutions) iii) Designing a responsible dialogue model enhancing stakeholder management in two levels: tourism sector (entrepreneurs and mix-race enterprises) and craft sector (entrepreneurs and indigenous artisans).

So then, the project will steer a dialogue model that entitles to manage stakeholder relations. Thus, the project will be able to incorporate feasible business strategies tailor-made to the needs/concerns of stakeholders and regarding their background (traditions and values). Moreover, those are the following recommendations.
Integrate a Community Relations Commission to represent the craft sector that facilitates: i) Decision making to all those issues related to craft sector. The Commission will be integrated by an Intersectorial Committee and two indigenous artisans that represent the informal artisan network ii) Implement two ‘Business Centers as Meeting Places’ that are located at two hose/workshops of indigenous artisans that inspire respect and loyalty of surrounded communities (demo experience). Those centers will guarantee the project leadership to transfer business knowledge to ultimately activate business networks.

Integrate a Community Relations Commission to represent the craft sector that facilitates: i) Decision making to all those issues related to craft sector. The Commission will be integrated by a Technical Coordination Committee , a delegated member of Tourism Board and an outsider to negotiate the process of dialogue. ii) Implement two ‘Business Centers as Meeting Places’ that are located at two tourism enterprises that inspire respect and loyalty of tourism sector (demo experience). Those centers will guarantee the project leadership to transfer business knowledge to ultimately activate business networks.

Core, Strategic and Environmental Stakeholders

The stakeholder mapping were categorized under the following criteria: core stakeholders: 10,000 MSMES. Strategic stakeholders: Otavalo Municipality (government and private organizations). Environmental Stakeholders: Otavalo Tourism Board, Artisans Associations and Inter American Development Bank.

In fact, the combination of actors playing different roles in different scenarios is well-recognized by the following concerns: i) lack of representativeness of project to establish dialogue with tourism/craft sector ii) lack of comprehension of values and principles of Kichwa-Otavalo ethnic to establish cooperation relations to enhance a effective process of dialogue (iii) lack of comprehension of policy problematic between Municipality and tourism sector to establish cooperation relations to enlace an effective process of dialogue.

From that perspective, a preliminary conclusion is that the stakeholder relations impact directly the project performance (leadership and knowledge transference) to make wise decisions. Thus, the challenge is establishing/sustaining a responsible dialogue with stakeholders to achieve business results. Simultaneously, establishing a win-to-win relation.

Once, the problematic has been set up, it has to be simplified to one common problem: non responsible dialogue with core, strategic and environmental stakeholders. The following step is to determine a stakeholder dialogue that guarantee an effective management of stakeholders (Stakeholder management) under economic, social and ethic considerations.

How will my client achieve? Basically from the CSR perspective that enables to i) stakeholder mapping, ii) analyzing stakeholder relations, iii) bring to the table of discussion values and principles of stakeholders to iv) designing a dialogue model that tackle the needs/concerns of stakeholders, enabling the establishment of a win-to-win relation that guarantee the activation of networks.

The CSR core premise is to recognize the value of stakeholder dialogue. This understanding will incorporate the stakeholder commitment in the center of CSR activities. In fact, it implies the idea that corporate values and principles are beyond of a simple exercise of informing stakeholders (one way communication). World Council of Sustainable Business, 2000.

Basically, the project has to afford a number of obstacles to establish/sustain a responsible dialogue practice in the mid/long term. The cooperation relation among MSMES, project and Municipality constitutes a complex/dynamic process based on the research findings, i) lack of comprehension of principles and values of stakeholders, particularly, principles and values of Kichwa-Otavalo. (Stuckart, 2008).

The stakeholder mapping determined, for instance, the cooperation style of Kichwa-Otavalo is understood once the minga concept comes to the table of discussion. This tradition promotes the solidarity and reduces the organizational division among communities, facilitating the dialogue and communitarian commitment (Stuckart, 2008).

However, they do not have the tradition to cooperate beyond the core family in Business activities. Stuckart (2008) enlightens this tradition under the negative perception indigenous people have towards obrajes in 1500, where Spanish slaved indigenous and brutally forced them to weave.

This look contributes to assimilate the resistance of indigenous artisans to cooperate beyond the family core and participate in the activation of business networks, to ultimately support competitiveness.

A first conclusion will be that the Project has not yet implement a dialogue model tailor-made to the needs/concerns of stakeholders to basically managing stakeholder relations (Stakeholder Management).

The World Council of Sustainable Business (2000) says that while an organization does not identify the value of stakeholder dialogue, it will not be able to activate a social responsible strategy. Furthermore, the success of a business strategy socially responsible will depend on the comprehension of principles and values of stakeholders.

In sum, the Project need to stakeholder zapping and then analyzing the stakeholder relations. So then, the project will be able to manage stakeholder relations and provide a social response to solve systematically a common problem.

Three Scenarios / one common problem

Mapping stakeholders and their relations with the project (my client) entitled to identify three scenarios: i) Otavalo Municipality ii) the project iii) University of Pittsburgh.

Those scenarios have clearly acknowledged a common problem: non responsible dialogue practices that negatively impact the cooperation relations and cause a negative effect to activate the business networks.

Three scenarios:

(i) Municipality states that MSMES and Otavalo Tourism Board, in particular, must aim to be self-economical efficient to contribute to local economic development. A considered mechanism will be to formalize the tourism sector through the implementation of taxes; those will be reinvesting on the sector to ultimately activate business networks. For instance, the implementation of Unique Business Window (UBW) is hardly considered.
(ii) The Project states that activating business networks will guarantee the profitability/sustainability of tourism/craft sector. Although, the tense relationship between Municipality and Otavalo Tourism Board stuck the negotiation process. Furthermore, it impacts negatively the dialogue process, causing a negative impact to activate business networks.
(iii) University of Pittsburgh states that there is a lack of comprehension of historical/cultural process (traditions and values) that tackle the cooperation relations of Kichwa-Otavalo ethnic. The indigenous has the tradition to cooperate beyond the core family through minga (in Kichwa an ancestral tradition to cooperate beyond the core family where vecinos contributes in activities such as house construction and farming).

However, they do not have the tradition to cooperate in Business activities; based on the negative perception of obrajes (In Spanish weaving factories introduce don the Spanish colony). In 1500, indigenous become slaves and brutally forced to weave to attend Spanish kingdom.

From this perspective, three scenarios acknowledged one problem: non responsible dialogue practices among MSMES, the project and Otavalo Municipality. However, reducing the analysis to one scenario might constitute a risk of simplification, as well as it denies the dynamic/complex process where actors adopt and adjust their own interactions that are fundamental to map stakeholder relations.

'Business Centers as Meeting Places'

The aim is to provide feasible advice to establish/sustain responsible dialogue with stakeholders of tourism/craft sector in Otavalo canton. The research maps and recommends in two levels: tourism sector (entrepreneurs and mix-race business men) and craft sector (entrepreneurs and indigenous artisans).

The advice provides a stakeholder dialogue model that constitutes a management tool to be utilized by the project. It is an initiative of Otavalo Municipality and the Inter American Bank (2005 – 2010). The project’s chief (my client) will be in responsible to implement the recommendations.
From this perspective, the ‘Business Centers as Meeting Places’ will aim to establish/sustain cooperation relations to tackle responsible stakeholder dialogue practices in the mid/long term. The advice suggests to reconsidering the way the project’s leadership stakeholder dialogue to transfer business knowledge.

The ‘Business Centers as Meeting Places’ constitutes a business strategy to be articulated through the activation of two Commissions.

I) Community Relations Commission (integrated by Intersectorial Committee and two indigenous artisans that represent an informal craft network) to enhance the implementation of two ‘Business Centers as Meeting Places’ ‘located at the heart of Kichwa-Otavalo communities.
II) Tourism Negotiation Commission (integrated by Technical Coordinator Committee and Otavalo Tourism Board) to enhance the implementation of two ‘Business Centers as Meeting Places’ ‘located at the heart of entrepreneurs community.

The strategy will solve basically the following concerns: i) lack of representativeness of the project to dialogue with tourism-craft sector (stakeholder dialogue), ii)
lack of comprehension of values and principles of Kichwa-Otavalo ethnic to establish/sustain cooperation relations to tackle a stakeholder dialogue process. Therefore, these concerns evidence a common problem: non responsible dialogue practices that impact negatively the cooperation relations and cause a negative effect to activate business networks to ultimately support the competitiveness of tourism/craft sector.

The difference now and before is the recognition of dialogue value to activate business networks.
La diferencia entre el antes y ahora es el reconocimiento del valor del diálogo para activar redes empresariales. Thus, it constitutes a high priority to bring to the table’s of discussion the values and principles of stakeholders.

The core premise of this advisory report is to investigate/identify the role of CSR towards the idea of implementing/enhancing stakeholder dialogue practices that enable to activate business networks to ultimately support competitiveness in Otavalo canton.

Ecuador and the Netherlands join together

(2007 - 2009) Ecuador and the Netherlands join together a common effort to researching stakeholder relations of Medium, Small and Micro Enterprises (MSMES) in Otvalo (Ecuador). Kichwa-Otavalo indigenous community is well-known by its enormous capacity to trade crafts and promote its culture. The goal will be to provide feasible advice to establishing/sustaining stakeholder dialogue practices based on the comprehension of values and principles of stakeholders to ultimately support competitiveness, a core premise of Corporate Social Responsibility.