This chapter argues that since the nineteenth century capitalism has created much wealth, but at the cost of massive ecological destruction, which has been particularly severe in Latin America. During the first global economy before 1929, considerable wealth was created from the exploitation of natural resources for primarily the land-owning elite in Latin America, at the cost of large-scale destruction of the natural environment. During the so-called Great Reversal between 1929 and 1979, strategies to catch up resulted in the proliferation of hydro-electric schemes which caused further environmental damage co-created by business and governments. As globalization resumed from the 1980s, renewed economic growth and consumerism resulted in mountains of waste in increasingly polluted cities. However ecological horror stories also created opportunities for a cohort of green businesses across sectors ranging from beauty and health to eco-tourism.
Raya Partners, a private equity firm, faces a crucial decision regarding Asa Specialty Coatings Company (ASCC). The dilemma involves shifting ASCC's manufacturing operations to Mexico, a move that would boost profitability and reduce emissions but result in significant layoffs in Vermont, impacting employees and the local community. Adrienne, Raya Partners' Chief Investment Officer, grapples with balancing financial gains, social responsibilities, and environmental considerations. The decision also tests Raya Partners' commitment to its ESG policy. Adrienne must devise a transparent communication strategy, explore fair severance packages, and consider ways to alleviate the financial burden. Ultimately, the choice made will define Raya Partners' values and shape ASCC's future.
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Maria Fernanda Miguel is the Christopher P. Torto Executive Director for the Latin America Research Center (LARC). Her responsibilities include leading research activities for the LATAM region, and providing programmatic support to different areas of HBS including admissions, executive education, and immersion programs. Fernanda is based in Montevideo, Uruguay.
Prior to joining Harvard Business School, Fernanda was a Senior Director and Leader for LATAM Business Development at Merck and senior consultant at McKinsey & Co., serving as global Practice Manager for the Business Technology Office Health Care Practice.
She holds a degree in economics from the Argentine Catholic University, an MBA from Harvard Business School, and a Master of Research from University of Bath.
Fernanda has been very active in non-profit activities, including fund rising at the Fundación Acción Hemato-oncologica – Argentine National Academy of Medicine, and acting as advisor to the Board of Directors of the Hospital Garrahan.