Cemex's Social Responsibility Initiatives
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Case Code : BECG047
Case Length : 14 Pages
Period : 1996 - 2004
Pub. Date : 2005
Teaching Note :Not Available
Organization : Cemex
Industry : Cement
Countries : Mexico
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Cemex regularly implemented new programs to minimize the harmful impacts of its operations on the environment and promote a better quality of life for its employees and for the citizens living in neighboring communities.
The sustainability report of Cemex reviewed its environmental performance and its progress each year in the following areas - eco-efficiency program, air emissions control program, reforestation and green areas program, natural resources conservation program, relations with communities and non-governmental organizations (NGOs). In 1990, Cemex incurred heavy expenses on fuel and electricity. At that time, Mexican cement manufacturers were facing regular power failures and had to pay about 60% more for power than the US did. In 1994, Cemex launched the Cemex Ecoefficiency Program (CEP) in order to balance its business and environmental interests. The main purpose of the CEP was to protect the environment by using alternative sources of energy...
Community Welfare Initiatives
Cemex introduced several welfare initiatives to improve the well-being of communities in the countries in which it operated. The company developed and sponsored a wide variety of educational, cultural, infrastructure and community development programs. In 1995, Cemex in a joint effort with the Government of Mexico introduced 'Piso Firme' (Firm Floors) program...
||THE PATRIMONIO HOY PROGRAM
Cemex had been performing extremely well in Mexico till the Mexican crisis in 1994-95. After the crisis, the regulatory barriers protecting Mexico's cement industry were relaxed, resulting in the entry of foreign cement manufacturers into the country. As a result, the market share of domestic companies began to fall. Cemex noticed a significant decline in its domestic sales. The revenues from the organized sector comprising large corporate customers and middle-and upper-income individuals dropped by 50%. However, the revenues from the unorganized sector comprising of low-income, do-it-yourself homebuilders dropped by a lower figure of 10%-15%...
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