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TEACHING NOTE: Cerrejón and Colombia’s Guajira region: From protracted company-community conflict to earning a social license to operate?

2022-5-2, Villadiego De La Hoz, Stephanie, Reuter, Emmanuelle

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Cerrejón and Colombia’s Guajira region: From protracted company-community conflict to earning a social license to operate?

2022-5-2, Villadiego De La Hoz, Stephanie, Reuter, Emmanuelle

Cerrejon, a large-scale open-pit coal mine in Colombia that started operating in the early 1980s, has received multiple national awards and recognition for the various corporate social responsibility (CSR) initiatives and programs it has implemented in recent years. Despite these initiatives, however, Cerrejon faces increasing stakeholder claims and continues to have conflictive relationships with local communities owing to differing interests relating to the use, management, appropriation, utilization, exploration, exploitation, conservation, and protection of environmental resources. The case documents the history of the relationship between Cerrejon and local communities. It introduces the mine’s history and of Cerrejon's mining and CSR activities. It traces the company's management of its social and environmental impacts in light of the applicable international standards. The case sheds particular light on the issues that underpin the company's conflictive relationship with local communities, who have a stake in the territory exploited by the company's mining activities. The case concludes with open questions concerning how Cerrejon, having increased its CSR activities while facing increased stakeholder claims, should continue to manage its relationship with local communities, to maintain or achieve a 'social license to operate' going forward.

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Empowering Local Electricity Retail Markets through Business Modeling

2015-9-27, Loock, Moritz, Bohnsack, René, Reuter, Emmanuelle

Energy markets are expected to change. One interesting new market design is a local electricity retail market for prosumers. Such local energy markets provide interesting opportunities to accommodate major dynamics in the energy industry. However, business modeling for such local electricity retail markets is a challenge. Not only do emerging local energy markets differ from established markets, but they are also likely to differ among each other in regard to local regulations, local technical system set-ups, or local patterns of social acceptance. New business models for these markets can be developed for different owners - such as utilities, start-ups, or new entrants - or even for new forms of organizations, such as energy cooperatives. Within this case study students explore the emergence of a decentralized energy world as an opportunity for business modeling. Students learn about strategic issues in the energy business that shape current and future markets. They practice business modeling which accounts for the multi-level drivers that shape this market transition. The students in particular engage in business model composition for local electricity markets and compose new business models for empowering prosumers with smart grid power services and "energy managers from the hood".