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.
The Patrimonio Hoy program became popular among the poor people in Mexico. By 2004, the program had enrolled 30,000 customers and extended credit of over $10 million.
By providing value added services, Cemex earned the trust of poor people and helped them in realizing their dream of building their own house. Before the launch of the program, it took 16 years for the poor family on an average, to build a four-room house. In normal circumstances, it took four years to build a room. After the launch of the program, one room could now be built in one and a half years. The program also benefited the 'promoters' as it helped them to earn more money. For every member they enrolled, the program rewarded them with 48 points (1 point = 1 peso). The program rewarded the promoters depending on the commitment of the partners. If a partner stayed with the program for 30 weeks, the promoter was rewarded 32 points...
Through its social responsibility initiatives, Cemex demonstrated the role companies could play in environmental conservation and the development of the poorer sections of society. The company proved that it was not just the job of government organizations and NGOs to serve the poor - a private company could participate in this effort too.
These initiatives not only helped the company to build better relationships with local communities but also enhanced its image among its stakeholders. It helped the company innovate new products based on its understanding of local cultures. Such initiatives were also important for the sustainable development of the company. Cemex's Patrimonio Hoy program proved that a company could do profitable business while serving the society. By implementing this program, Cemex emerged as the only company in the cement industry in Mexico to tap the low-income market segment profitably. Cemex's initiatives on environmental conservation fetched the company many local and national awards in the areas in which its plants operated...
Exhibit I: Global Reporting Initiative's 2002 Sustainability Reporting Guidelines
Exhibit II: Mission and Objectives
Exhibit III: Cemex's Code of Ethics for Environment Conservation
Exhibit IV: Cemex's Code of Ethics for Community Development
Exhibit V: Alternative Fuel Program of Cemex
Exhibit VI: Comparision Between Organized and Unorganized Sectors
Exhibit VII: Innovative Programs