Ron santa teresa's social initiatives

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February 23rd, San Diego, CA
From Louise Baudry - CSR International
To Alberto C.Vollmer - CARST

Dear M. Alberto C. Vollmer,
We studied carefully the strategy you have built during the past 10 years. First, we wanted to let you know that we admire the hope you raised within the community over the fear that used to rule Revenga County. As you have requested our agency, CSRInternational, to report on the Social initiatives you piloted, we wanted to underline the key lessons to bear in mind in order to make accurate suggestions to continue to building a talent community hand-in-hand with business sustainable growth.
Key lessons:

* A new business vision

In 1999, when Ron Santa Teresa was close to bankruptcy, you and your brother successfully piloted anemergency plan, bringing to the company not only a new mission: « To build up the Premium Rum category in the world » but also a new vision and values: « Humility, Fair play and play to win, Pride in our business, Improving our environment ».

* A social responsible business: building a sustainable growth through community prosperity

Commitment to the community has always been part of Ron SantaTeresa vision, mostly through the Ron Santa Teresa Foundation. Today, social initiatives are part of the company’s strategy and devoted to Revenga, the county where Ron Santa Teresa is implanted. The goal is to “transform Revenga in a model county [of sustainable development]”.

One of the main strength of your social initiatives is the complete understanding of community’s needs and gettingthe community involved in both the decision making process and in their realization, under the lead of Ron Santa Teresa.

Visión Revenga

Visión Revenga brings all the community main actors together to define the Strategic Plan for Revenga County, aiming to decrease poverty, attract investment, and promote tourism.

Through Camino Real Housing Development, Ron Santa Teresa addressed theissue of housing. The project provided houses for 99 poor Revenga families.

Consetours aims to build the foundations for the community’s future, based mostly on the development of tourism. This is a high-potential project. We see here a real source of profit for both the community and the company. However, it stills struggles against main issue, such as violence in the county.

The AlcatrazProject

The Alcatraz project aims to « transforming the violent leadership [and unused talent] of youth offenders into virtuous Leadership community investment program ». This rehabilitation two year program relies on three major elements:

- Manual Labor
- Formation: it offers not only values formation but vocational/job formation and eventually opportunities for employment andentrepreneurship.
- Sport pratice: Rugby is a key element of the program. It teaches positive values such as teamwork, sense of belonging, energy directed to positive actions.

* Successful alliances with other companies
Convinced by the success of the project, Ron Santa Teresa’s Board Members keep investing a growing percentage of utilities to The Alcatraz Project. Other organizations decided tosupport the Project such as CAF (CorporaciÓn Andina de Fomentoke). Ron Santa Teresa has also made alliances with companies to increase job opportunities.

* Success
- The homicide rate in the county has dropped (- 65%)
- Five gangs have been recruited an reinserted in seven
- The project reached other communities of Revenga County such as girls and boys of the community
- The projectschanges employees’ and shareholders’ vision for ex-gang members

* Challenges
- It is still difficult to convince companies to offer job opportunities to ex-gang members.
- Finding the right people to work in the project is complicated.
- Some members re-offend, even if Santa Teresa understood the importance of including the whole gang and family in the reinsertion process and created the...
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