Alquería More Than A Glass of Milk Part Teaching Note PDF

Teaching Note: AN0030
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Version: 20/01/2016
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Teaching Note
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Alquería
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ISSN 2322-9330
More than Just a Glass of

Milk
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CASE SUMMARY
Alquería was founded by Professor Jorge Cavelier and his son Enrique Cavelier with the motto,
“A bottle of milk is a bottle of health.” From Alquería’s inception, the Cavaliers looked for ways
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to innovate on their products and to substantially improve the quality of the milk they offered to
their customers, introducing new packaging formats and production techniques.
In 1992, Carlos Enrique Cavelier took over at Alquería’s helm. His studies in Sociology, Anthro-
pology and Public Administration abroad as well as his years in public service in Colombian po-
litics prepared him to become a business leader who cared not only about his family business’
prosperity but also about the communities surrounding the company. During his tenure, Cave-
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lier has shown a special commitment to his suppliers –small dairy farmers– helping them with
training programs on nutrition and more updated, efficient and quality-enhancing production
techniques. He has also played a key role in his organization’s communication and identity buil-
ding efforts, as well as a strong network and partnership driver, engaging Alquería stakeholders.
Headed by Cavelier, Alquería has taken a leading role in significant national debates, such as the
ones on corporate responsibility in post-conflict scenarios, on free trade treaty challenges, and
on Colombia’s competitiveness issues, among others. The company’s current management has
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This teaching note was prepared by Professors Nathalia Franco Borrero from the Universidad de los Andes School of Management
AUTHORSHIP and Sebastián Dueñas Ocampo and Margarita M. Castillo M. from the Pontificia Universidad Javeriana Business Department
CREDITS Bogotá, Colombia. Teaching cases are developed solely as the basis for class discussion and are not intended to serve as endorsements, sour-
ces of primary data, or illustrations of effective or ineffective management. To order copies or request permission to reproduce materials, con-
tact coleccion.cladea@gmail.com.
Copyright © 2017 Universidad de los Andes – School of Management. No part of this publication may be reproduced, stored in a retrie-
val system, used in a spreadsheet, or transmitted in any form or by any means --electronic, mechanical, photocopying, recording, or otherwise--
without the permission of the copyright holder.
This Teaching Note is authorized for use only by Sebastian Due?as Ocampo, Pontificia Universidad Javeriana until March 2018. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860.
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received national and international awards. By 2013, Alquería ranked among Colombia’s largest
dairy producers, following Colanta S.A. and Alpina S.A.
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Case A describes Alquería’s dilemma between two strategic approaches to remedy the adverse
weather conditions affecting Colombia’s dairy industry in 2011. Facing this challenge, the com-
pany could choose between importing milk to meet its demand, or building, from scratch, a bold
initiative to engage suppliers in new areas in its supply chain. The debate unfolding in this case
discussion revolves around the analysis of these choices.
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Case B looks at the advantages and potential of the strategy pursued to include suppliers in Al-
quería’s overall strategy via an initiative deployed at La Macarena, which provides the grounds
for a second debate, complementing and delving deeper into the learning objects set for this case.
CASE UTILIZATION
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First possible use: This case may be used in courses on organizational behavior and
associated topics, like human resource management and human development, in MBA programs
or advanced undergraduate Business Administration programs. It proves useful to gain a better
understanding of the differences between responsible and traditional leadership, as well as to
learn more about responsible leadership roles (construct developed by Thomas Maak and Nicola
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Pless, 2006).
This case helps students understand the impact of leaders on all levels –micro, meso and macro
(construct elaborated by Voeglein et. Al 2012)– by showing the significance of Cavelier’s personal
background for the development of social responsibility policies, the relevance of responsible
leadership in the creation of ties with the company’s stakeholders and as a driver for social
innovation projects in a corporate setting.
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Second possible use: If this case is used in courses on CSR or strategy, it contributes
to the introduction of notions such as social innovation, internal social venture, and shared value.
It presents the ideas of Murray, R., Culier-Grice, J. & Mulgan G. (2010) on social innovation
challenges, and it enables the analysis of challenges posed by the shared value creation proposal
outlined by Porter, M. & Kramer, M. (2011), breaking down the components of a shared value
strategy, according to Pfitzer, M. Bockstette, V. & Stamp, M. (2013).
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Based on these two possibilities, this teaching note will first sketch a class plan for the first
suggested case usage, and, then, it will describe a second class plan for its use in courses that do
not focus on leadership.
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CLASS PLAN I –INTENDED TO GAIN A BETTER
UNDERSTANDING OF THE DIFFERENCES
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BETWEEN RESPONSIBLE AND TRADITIONAL
LEADERSHIP
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LEARNING OBJECTIVES:
a. Understanding the difference between responsible and traditional leadership
b. Illustrating the traits of responsible leadership roles (based on Thomas Maak and Ni-
kola Pless, 2006).
i. Citizen
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ii. Architect
iii. Visionary
iv. Coach
v. Change agent
vi. Relationship builder
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vii. Story narrator

viii. Administrator
ix. Servant
c. Contextualizing the impact of a leader’s behavior on organizational dimensions on a

micro (individuals), meso (the organization), and macro (ties with stakeholders) level
(model elaborated by Voeglein et. al, 2012).
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PREPARATION QUESTIONS
1.What features characterize Alquería as a company in its decision making as compared to other
dairy industry players? Elaborate a timeline with the company’s milestones to support your
answer.
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2.In your opinion after carefully reading the case, what role has Carlos Enrique Cavelier played
at Alquería?
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SUPPORT MATERIALS
To prepare for case discussion, students and/or class instructors may find it useful to read the
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following materials, depending on the discussion focus chosen and the teaching objectives set, so
that they will have the theoretical background required to analyze case developments.
Responsible Leadership:
• Maak, T., and Pless, N. M. (2006), “Responsible Leadership in a Stakeholder Society –A
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Relational Perspective,” Journal of Business Ethics, 99-115.
• Voegtlin, C., Patzer, M., and Scherer, A. G. (2012), “Responsible Leadership in Glo-
bal Business: A New Approach to Leadership and Its Multi-Level Outcomes,” Business
Ethics, 1-16.
CLASS DISCUSSION GUIDE

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Part A: Responsible Leadership vs. Traditional Leadership
Strategic Decision (15 minutes)

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• Question # 1: If you were Carlos Cavelier and faced this dilemma, what would you do?
Would you import milk or develop new suppliers?
• Question # 2: What would either of these decisions mean for Alquería?
Carlos Enrique Cavelier as a leader (30 minutes)
• Question # 3: We’ve established the pros and cons for Alquería of these two alternatives
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to face the winter weather crisis. The case also indicates that, in this family business, stra-
tegic decisions were driven by the CEO –namely, Carlos Enrique Cavelier. Then, what has
been Cavelier’s role since he took over at Alquería? Has the company’s approach chan-
ged at all with him at its helm?
• What does this role imply regarding the alternative a leader like Cavelier would choose?
Part B: The impact of a leader’s behavior on organizational dimensions

on a micro (individuals), meso (the organization), and macro (ties with
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stakeholders) level (30 minutes)
• Question # 4: What are the consequences of the La Macarena project on a macro, meso
and micro level? Do these confirm the hypotheses of responsible leadership outcomes?
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Final Part: Wrap-up (15 minutes)
• Question # 5: What does Cavelier’s role as a leader show about his reluctance when fa-
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ced with Pilar Noriega’s proposal?
DISCUSSION FLOW
Part A: Responsible Leadership vs. Traditional Leadership
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• Question # 1: If you were Carlos Cavelier and faced this dilemma, what would you do?
Would you import milk or develop new suppliers?
Class instructors will be well-advised to take a vote among students to determine who would pre-
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fer to import milk and who would rather develop new suppliers. Student votes should be recor-
ded on the blackboard.
• Question # 2: What would either of these decisions mean for Alquería?

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In this section, class participants should analyze the pros and cons of both options, clearly justif-
ying, from both the company’s social responsibility and its business competitiveness standpoints,
which would be the best choice for Carlos Cavelier. (See Blackboard # 1):
Importing Milk Supplier Development

Pros Cons Pros Cons
Short-term remedy for Jeopardizing the trust of Alquería’s long-term Guerrilla operations might
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milk shortage. small dairy farmers in financial sustainability as a grow strong in the area once
Alquería. result from the develop- again, shunning Alquería
ment of its own milk and forcing the company to
suppliers. forgo its business projects in
the area for safety reasons.
Reducing product costs Threatening the process Boosting Alquería’s trust- Alquería might strengthen
and meeting/ expanding Alquería has been building worthiness and legitimacy these suppliers so much that
demand in domestic and by strengthening small among suppliers and in Alpina or any other multina-
international markets with dairy farmers. society. tional later steps in, offering
competitive prices. better prices to small dairy
farmers and luring them to
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forsake Alquería.
Next, class instructors should ask students to analyze Carlos Cavelier’s role as Alquería’s leader
in order to determine whether his track record in the company can provide any hints as to the
decision he made regarding the dilemma described above.
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Carlos Enrique Cavelier as a Leader (30 minutes)
Analyzing Carlos Cavelier’s role as a leader and the differences between traditional and respon-
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sible leaders.
• Question # 3: We’ve established the pros and cons for Alquería of these two alternatives
to face the winter weather crisis. The case also indicates that, in this family business, stra-
tegic decisions were driven by the CEO –namely, Carlos Enrique Cavelier. Then, what has
been Cavelier’s role since he took over at Alquería? Has the company’s approach chan-
ged at all with him at its helm?
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** For this part of the discussion, students may rely on the timeline they prepared before class
This section intends to help students understand the notion of responsible leadership and its di-
fferences from traditional leadership. To this end, class participants should be led to analyzing
Cavelier as a leader in his role as Alquería’s president.
Class instructors may find it useful to avoid indicating whether Cavelier is a responsible or a tra-
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ditional leader and to record on the blackboard students’ comments in favor of responsible and
traditional leaders. Arguments in favor responsible leadership will largely support the notion that
Cavelier’s decisions for his company have prioritized a social responsibility strategy, while argu-
ments in favor of traditional leadership will mostly underscore the pursuit of a primarily compe-
titive strategy (see Blackboard # 2).
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Instructors should make sure that students understand the difference between a traditional and
a responsible leader. To this end, they may ask class participants to characterize responsible lea-
ders. This discussion should draw from the notion of responsible leadership (Maak and Pless,
2006), viewed as a normative phenomenon –that is, considering leadership as a moral endeavor
based on values– as well as a socio-relational phenomenon, with the concept of leader-follower
broadened to encompass stakeholders in and outside the organization. Indeed, the primary goal
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of responsible leadership may be construed as the creation of sustainable, trust-based relations-

hips with stakeholders, as well as the coordination of actions to pursue common business, social
and environmental goals.
Class instructors should explain the differences between traditional and responsible leadership
using the following comparison table:
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Characteristics Traditional Leadership Responsible Leadership
Responsibility Aware- Leaders believe that their responsibility Leaders know that their individual actions
ness Level purview spans the company’s inner micro affect society at large, recognizing their
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and meso (middle-range) levels. impact on a macro, meso and micro level.
Stakeholder Recogni- Leaders focus their efforts on followers Leaders realize that their responsibility
tion and associates inside the company, expands beyond the relationship with their
neglecting and ignoring stakeholders followers, associates and company employ-
outside the company, like suppliers, ees. They work with both internal and
communities, governments, etc. external stakeholders.
Awareness of the chal- Leaders do not feel responsible for the Leaders are aware of the challenges posed
lenges posed by global- challenges posed by globalization; they by a globalized world in business, social
ization are not aware nor respond to challenges and environmental terms.
imposed by an economically, socially and
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environmentally interconnected world.
Drivers According to academic studies (Pless, According to academic studies (Pless,

(see Exhibit 2) 2007), traditional leaders’ behavior is 2007), responsible leaders’ behavior is not
driven by the following intra-psychic driven by intra-psychic drivers but by
drivers: the need to explore and assert; normative drivers, such as a need for
the need to build ties and affiliations, and justice, a need for recognition, and a sense
the feeling of pleasure and joy. of care.
Analyzing Carlos Cavelier’s management at Alquería ever since he took over in 1992, a common
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thread can be traced, pointing to the notion that the company, rather than a business solely in-
tended to produce profits, is an organization working with multiple agents that make its exis-
tence feasible and legitimate. Carlos Cavelier has focused on building long-term ties with both
internal and external stakeholders, displaying the key characteristics of responsible leadership.
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He took over when Alquería was not an outstanding company in the market, and he set out to en-
sure its stabilization and business growth via innovation –so much so that, today, Alquería stands
as one of Colombia’s leading dairy manufacturers. The way he managed to accomplish this is es-
pecially noteworthy, as he started by acknowledging the needs and interests of the company’s
employees, suppliers, consumers, vulnerable communities surrounding it, trying to understand
and to work with the government to drive social changes. His leadership style stands out because
he has realized that his business goes beyond the company’s internal and private organization, as
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a family business, to encompass public affairs outside as well.
Alquería’s organizational strategy has consolidated in such a way that it contains a number of fea-
tures that enable the overall development of company stakeholders. The company acknowledged
the significance of employees’ human growth, contributing to the consolidation of an organizatio-
nal scheme that provided workers with advancement opportunities inside the company to improve
their living conditions. The company also recognized how important its customers were, working
steadily to enhance its milk production and distribution quality standards by importing the first
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ultra-high temperature (UHT) processing machines. This equipment offers greater milk hygie-
ne and pasteurization possibilities. The company has also innovated consistently in packaging,
product development and design to meet customers’ needs. Alquería has also taken its suppliers
into account, changing the industry’s culture and adopting a sourcing policy based on year-round
milk purchases to farmers, regardless of demand fluctuations. The company created the Cavalier
Foundation to build social responsibility programs addressing education and nutritional issues.
p. 7 The Foundation has been working with some government agencies to support small dairy farmers.
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Based on this scheme, responsible leadership may be construed as a phenomenon grounded on
moral values and a normative process (Maak & Nikola, 2006), with its implicit social and re-
lational nature unfolding in interactions with other stakeholders continually negotiating with
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an organization’s leader in order to pursue their goals. Indeed, as a result of this effort to build
trust-based relationships with stakeholders, a common business idea can be orchestrated to le-
gitimize the company in society, turning a profit and, at the same time, paving the way to accom-
plish common goals.
When linking the discussion on Cavelier’s role to students’ predictions on his decision (impor-
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ting milk or developing suppliers), it is necessary to delve deeper into Cavelier’s distinctive roles,
which underscore his managerial and competitive skills while highlighting his social networking
abilities as well as his sense of citizenship. Indeed, the dilemma between traditional and respon-
sible leadership hinges on the combination of these two roles. Throughout this discussion, class
instructors may organize the roles played by Cavelier according to the categories established by
Thomas Maak and Nicola Pless (2006):
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The Leader as Administrator
This leader stands out as a protector of values and social, moral and environmental resources,
using them as a compass to run his business. He has a radar-like ability to assess and deal with
conflicting expectations and ethical dilemmas presented by stakeholders (De George, 1993; Do-
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naldson, 1996). To face the milk shortage, the most immediate solution lay in importing milk,
but, due to his responsibility to build long-term relationships for the company, which translated
in his self-appointed role as “dream coordinator”, and his acknowledgement of and commitment
to Alquería’s stakeholders, Cavelier had been perusing his contacts with academics and govern-
ment officials to find ways to strengthen small dairy farmers in underdeveloped areas used as ba-
ttlefields by guerrilla and paramilitary forces, such as La Macarena hills. Clearly, this alternative
poses daunting challenges that traditional leaders would be unwilling to face, as they would have
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to deal with the conflicting expectations of several stakeholders, including government agencies,
farmers, insurgents, and company employees.
The Leader as Citizen
Cavelier’s commitment to supporting the development of small dairy farmers in vulnerable con-
ditions, living in poverty and in areas besieged by armed conflict, shows his awareness of his role
as a business leader in country like Colombia, as he realizes that this involves greater challen-
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ges. As he result, he chooses not to isolate his private business from public issues and to promote
community advancement values, such as mutual respect and recognition, tolerance and inclusion
(Dagger, 1997), providing livelihood opportunities apart from coca plantations to escape poverty.
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The Leader as Servant
Cavelier’s role as “dream coordinator” at Alquería has translated into a leadership style that “ca-
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res” not only about respect and human development opportunities for company employees but
also about the welfare of other stakeholders outside Alquería, as shown by the company’s support
to small dairy farmers across the country via its nutritional and educational programs.
The Leader as Visionary
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Al Alquería’s leader, Carlos Cavelier is pursuing a vision that has provided guidance, counsel and
support to common projects built with a number of stakeholders. Thus, as a visionary, Cavelier
is driving the construction of a shared sense of destiny, proving to workers, suppliers, govern-
ment officials and institutions, and the population at large how they can materialize their hopes
and wishes within that vision.
Operating roles include:

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The Leader as Network Builder
One of the key factors for Cavelier’s success lies in network creation and promotion. In these ne-
tworks, stakeholders have a similar status, so Cavelier is becoming a network builder, bringing
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stakeholders together to serve as co-leaders in projects such as the one deployed at La Macare-
na, which offer common benefits that help Colombia overcome its challenges, while serving as
example for other regions around the world struggling with similar issues.
The Leader as Change Agent
As a change agent, Carlos Cavelier has taken responsibility for mobilizing stakeholders towards
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sustainable value. His supplier development project for armed conflict areas has caused anxiety
and fear, as it seemed an enormous challenge. His role has hinged on creating and maintaining
followers’ commitment to the cause, engaging them in ongoing efforts to build meaning, main-
taining momentum when change causes uncertainty and confusion. Note: instructors may find it
useful to comment on the story told by a farmer at the sales convention, remarking the benefits
provided by the program, which prevented him from moving to a different location.
This analysis helps to gain a better understanding of the overall traits that characterize respon-
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sible leaders, who are, in many ways, more complex than traditional leaders. Class instructors
should encourage participants to discuss how easy it is to balance these roles at the same time.
If a leader can effectively control a company’s entire value chain, as CSR policies often focus on
managing value chains, or distribution networks with suppliers, or relationships with consumers,
but, at times, that leader neglects other aspects, because managing the value chain is not that easy
–in fact, it’s extremely difficult and challenging, as leaders also need to handle companies’ com-
p. 9 petitive environment. This two-fold role is very complex, as Porter argues. This author says that
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companies can build foundations and schools and asks, does building a school relate in any way
to companies’ social role? For example, should a bank build schools, or should it, instead, look
for better lending instruments so that people can access loans and improve their social mobility
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in a fair fashion? This is the key question nowadays.
CLOSING
What does the roles played by Carlos Enrique Cavelier imply regarding the alternative a leader
like Cavelier would choose?
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This question intends to lead students to revisit the discussion on Cavelier’s leadership style, hi-
ghlighting how strategy and responsibility complement each other, but, at the same time, under-
scoring trends. A brief brainstorming should follow, jotting ideas on the blackboard, to pave the
way for Part B of the case, which is meant to reveal the alternative chosen by Alquería.
Part B: The impact of a leader’s behavior on organizational dimensions

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on a micro (individuals), meso (the organization), and macro (ties with
stakeholders) level)
When the discussion of Part A of the case comes to an end, class instructors have two choices,
depending on their class time management: one is to hand out Part B of the case in the same ses-
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sion, so that students may learn about Alquería’s choice, and the other one is to hand out Part B
of the case, so that students prepare for its discussion at home and return to continue the analy-
sis of this case in the following class.
Time required to read Case Part B in class: 10 minutes –5 text pages and 2 ex-
hibits.
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Cavelier decided to import some milk on a short-term basis, but, for the long run, he chose to
support suppliers’ development. It’s time to take a look at how he did it (see Blackboard 1).
The theoretical support for the second part of this discussion may be found in the article by Voet-
glin, Patzer and Scherer, 2013.
The discussion on the second part of the case should start with the fact that Alquería chose to
continue strengthening is supplier inclusion policy and, accordingly, reinforced its project focu-
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sing on new regions. As part of these efforts, Alquería’s initiative in La Macarena proves especia-
lly noteworthy, as it has been praised as innovative for this area and a promising tool for regional
development. However, the company faces many risks with this initiative, including low dairy
farmer’s expertise, product quality variations, production chain instability, and the issues asso-
ciated with the involvement of armed groups in the area, as well as the potential for social unrest
there. This analysis refers back to the previous discussion on responsible leadership.
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Now that Alquería’s decision has been revealed, the class can move forward in its analysis:
• Question # 4: What are the consequences of the La Macarena project on a macro, meso
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and micro level? Do these confirm the hypotheses of responsible leadership outcomes?
Once responsible leaders’ roles and tasks have been discussed, it is important for students to
analyze the consequences of this type of leadership across the organization. After listening to the
consequences mentioned by class participants and jotting them down on the blackboards, ins-
tructors should introduce the model that explains the outcomes of this leadership style. Voetglein,
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Patzer and Scherer (2012) provide a setting for responsible leadership with three impact levels –
micro, meso and macro. This scheme contributes to connecting the micro outlook of leadership
with its macro perspective, which supports Corporate Social Responsibility (CSR) and the notion
of organizational legitimacy (see Blackboard 3)
First, the macro level is construed as the realm where the organization interacts with society glo-
bally, with an institutional fabric that shapes the actions of agents acting in this setting. Second,
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the meso level refers to an internal analysis of the organization, its structures and procedures –
that is, the practices that evolved over time in a specific social environment, eventually turning
into organizational patterns widely known across the organization. Finally, the micro level en-
compasses interactions among people, with their individual agency capabilities at play.
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According to Voetglein, Patzer and Scherer (2012), responsible leaders must understand the
effect or influence they may have on every level. On a macro level, responsible leaders may help
build and maintain their organizations’ legitimacy; they may promote a positive trust-building
effect on stakeholders, enhancing and raising the social capital created by their relationships with
stakeholders. On a meso level, responsible leaders may shape their organizations’ ethical cultu-
re over time, while fostering dialogs and discussions to solve problems; responsible leaders may
also bear a positive influence on how their organizations and their members view CSR –for this
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reason, responsible leaders are often more willing to commit to social ventures. Finally, respon-
sible leaders contribute to their organizations’ compliance with ethical standards and morally ac-
ceptable goals. On a micro level, lastly, responsible leaders’ behavior has a direct effect on their
followers’ attitudes, enabling them to focus their abilities on the pursuit of ethical ends, which
improves followers’ satisfaction, motivation and commitment.
Analyzing the outcomes of Alquería’s and Carlos Cavelier’s responsible leadership on a macro le-
vel, it is clear that the focus on engaging outside stakeholders, like suppliers, the national gover-
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nment, agencies like SENA, and civil society, has fueled a positive synergy that is translating into
specific projects, such as the one unfolding at La Macarena. Indeed, the company and its leader
have promoted innovation and business initiatives among these stakeholders –so much so that
conversations are underway to formulate a public policy for Colombian agribusiness.
Against the backdrop of Colombia’s complex setting, riddled by violence and social injustice,
p. 11 both the government and private companies have traditionally been viewed with distrust by
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small farmers and civil society. However, the characteristics of La Macarena’s project –especia-
lly, the inclusion of farmers’ voices and interests– are sowing the seeds of trust, building social
capital and providing legitimacy for the company in Colombian society, with signs indicating to
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stakeholders that this relationship goes beyond a conventional exchange ruled by market laws.
A meso level analysis shows that these signs are also addressed to Alquería’s workers, associates
or internal clients, who understand that the company’s relationships exceed those based on the
formal power of the organization’s internal hierarchy. Carlos Cavelier has managed to legitimize
a business notion within his organization that promotes social development and responsibility
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policies as cornerstones for company operations. A key driver for this organizational outcome has
been Cavelier’s role as a visionary, helping employees to find meaning in their jobs at Alquería,
driving their motivation by turning the company into a place where people thrive. Employees’
commitment grows with the knowledge that their work contributes to solving social injustice,
violence and poverty issues besieging Colombia. Carlos Cavelier recalled that a farmer was in-
vited to an Alquería’s national sales convention. He had been rendered jobless as a result of the
National Government’s programs to eradicate illegal crops at La Macarena. The farmer shared
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his experience as a beneficiary of Alquería’s technical dairy production strengthening initiative
at La Macarena, expressing his gratitude, for, as a result, he was able to secure his family’s live-
lihood and to avoid displacement (Cavelier, 2014). Experiences such as this one are shared with
all company employees, boosting the meaning of their work, enhancing their commitment, and
motivating them to pursue Alquería’s mission.
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Cavelier’s responsible leadership behavior –acknowledging stakeholders’ needs and building

communication bridges to find solutions for the problems affecting Alquería’s external stakehol-
ders– provide a clear example for his associates and workers, bolstering a culture that focuses on
ethical practices and corporate social responsibility. Alquería’s employees are increasingly aware
of the importance of their work for Colombia’s development (see Exhibit 1).
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Finally, these outcomes at meso or organizational level have direct repercussions on a micro le-
vel. Job satisfaction, corporate citizenship and organizational commitment lower absenteeism,
increase productivity and reduce employee turnover, as employees are happy, motivated and
committed to their work. At Alquería, they find an ideal place to work, to grow as human beings,
as indicated by the company’s rising position in the Great Place to Work Ranking over recent
years as a result of improved organizational climate metrics (see Exhibit 1; see Blackboard 2)
Final Part: Wrap-up (10 minutes)

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• Question # 5: What does Cavelier’s role as a leader show about his reluctance when fa-
ced with Pilar Noriega’s proposal?
Class instructors should explore students’ arguments. The purpose of this question is to revisit
the key components of leadership discussed earlier (responsible leadership, leaders’ roles), lin-
king them to leadership impact levels (micro, meso and macro) and to leaders’ ability to influen-
p. 12 ce their organizations’ impact, regardless of their financial performance.
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Conclusions should highlight the specific links between the two models analyzed on the basis of
Cavelier’s case:
• A relevant example lies in the relationship between the macro level influence introdu-
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ced by Voetglein et al. and the definition of a leader as a visionary outlined by Maak and
Pless. This may be discussed on the basis of Cavelier’s “Dream Coordinator” job title
(and its implicit message).
• Another relationship that may be underscored is the leader’s role as a network builder,
with its mezzo-level implications and the strategies pursued by Alquería at La Macare-
na, training and supporting suppliers with the help of the existing institutional network.
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• On a micro level, class participants may discuss the role of the leader as servant, elabo-
rating on Cavelier’s direct approach to workers and suppliers.
Students may analyze or provide more links, laying the groundwork for future sessions, when
these leadership models are revisited.
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BLACKBOARD PLAN
Blackboard 1: Strategic Choice
Importing Milk Developing Suppliers

Pros
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Cons
Blackboard 2: Carlos Cavelier is a traditional or a Leadership Outcomes
Option 1: Traditional Leader Option 2: Responsible Leader

Justification Justification
Responsible Leader’s Roles:

Citizen
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Architect…
Blackboard 3: Responsible leader
Micro Level
Meso Level
Macro Level
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Blackboard 4: What Is Alquería Missing?
.......
.......
.......
.......
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CLASS PLAN II –INTENDED TO GAIN A BETTER UN-
DERSTANDING OF THE SHARED VALUE AND SOCIAL
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INNOVATION CONCEPTS
LEARNING OBJECTIVES:
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a. Understanding the core notions involved in the social innovation concept and their appli-
cation in a specific project designed by an organization.
b. Getting a grip on the notions underlying the concept of shared value and how important
international initiatives are for a company’s CSR strategy pursuit.
c. Acquiring the ability to take into account collective interests in managerial decision making.
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PREPARATION QUESTIONS
What traits characterize Alquería’s corporate decision making?
What corporate social responsibility strategy has Alquería pursued in recent years?
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SUPPORT MATERIALS
To prepare for case discussion, class instructors and/or participants may be well-advised to read
the following materials, depending on the focus intended for the analysis and the learning objec-
tives. These materials will provide a theoretical framework to discuss this case in depth with the
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assistance of class instructors.
Corporate Social Responsibility and Social Innovation
• Porter, M. & Kramer, M. (2011), “Creating Shared Value,” Harvard Business Re-
view, 891(1/2), 62-77.
• Pfitzer, M. Bockstette, V. & Stamp, M. (2013), “Innovating for Shared Value,” Har-
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vard Business Review, September, 101-107.
• Murray, R., Culier-Grice, J. & Mulgan G. (2010), “The open book of social innova-
tion,” http://youngfoundation.org/wp-content/uploads/2012/10/The-Open-Book-
of-Social-Innovationg.pdf, (11-29).
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DISCUSSION GUIDE
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Part A: Alquería’s Strategy
• Question # 1: What decision should Alquería make: importing milk or developing new
suppliers? Let’s vote.
• Question # 2: What would be the implications of every one of these choices for Alquería
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Previous Strategy Characteristics (30 minutes)
• Question # 3: We already know what Alquería stands to gain with its two choices to over-
come the winter weather challenge. If we consider the company’s earlier history, what
clues does the case provide about the choice made? Over its past record, has Alquería fa-
vored a corporate social responsibility strategy or a competitive strategy? What do these
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milestones reveal about Alquería and its value proposition?
Part B: Social Innovation Challenges (30 minutes)
• Reading Part B of the case

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• Question # 4: What role does the La Macarena initiative play in Alquería’s corporate so-
cial responsibility strategy?
• Question # 5: Can this initiative be construed as a social innovation? Why?
Final Part: Wrap-Up (15 minutes)
• Question # 6: If you were part of Pilar Noriega’s advisory committee, what arguments
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would you provide to make her case to persuade the Board to adopt international repor-
ting practices?
DISCUSSION FLOW
Part A: Alquería’s Strategy

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• Question # 1: What decision should Alquería make: importing milk or developing new
suppliers? Let’s vote.
Class instructors may find it useful to ask participants to vote in order to establish who is in favor
of importing milk and who prefers to develop new suppliers, tallying votes on the blackboard.
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• Question # 2: What would be the implications of every one of these choices for Alquería?
In this sections, students are expected to analyze the pros and cons of both options, clearly jus-
tifying their views (see Blackboard 1):
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Pros Cons Pros Cons
Short-term remedy for milk Jeopardizing the trust Alquería’s long-term Guerrilla forces might
shortage. deposited in Alquería by financial sustainability regain strength and return
small dairy farmers. Would be promoted by the to these areas, expelling
development of its own Alquería from the rural
dairy suppliers. locations where it has
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deployed these projects. As
a result, Alquería would
have to forgo its projects for
safety reasons.
Reducing product costs and Forgoing the process that Boosting Alquería’s trust- Alquería might strengthen
being able to address Alquería has started to worthiness and legitimacy these suppliers so much
demand and expand its strengthen small dairy among suppliers and in that Alpina or any other
offerings in domestic and farmers. society. multinational later steps in,
international markets with offering better prices to
competitive prices. small dairy farmers and
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luring them to forsake
Alquería.
Previous Strategy Characteristics (30 minutes)

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• Question # 3: We already know what Alquería stands to gain with its two choices to over-
come the winter weather challenge. If we consider the company’s earlier history, what
clues does the case provide about the choice made? Over its past record, has Alquería
favored a corporate social responsibility strategy or a competitive strategy?
At first and in order to prompt the debate of the case, instructors should ask students whether
Alquería pursued a competitive or socially responsible strategy. The purpose here is to spark a
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debate on the steps taken by the company throughout its history and how the organization has
faced a number of competition scenarios along its track record. While pursuing competitive stra-
tegy is not necessarily inconsistent with the pursuit of socially responsible strategy in an organi-
zation, the intention here is to discuss Alquería’s actions and its goals.
Next, class participants should be required to explain the company’s current strategy in order to
determine to what extent they are able to analyze and prioritize the relevant information provi-
ded by the case. Most students will prove able to pinpoint specific steps taken by the company,
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but a few will clearly understand the approach to stakeholders’ development and coordination
that characterizes Alquería and, in turn, bears a positive impact on its competitive environment.
Relying on the notions formulated by Porter, M & Kramer, M (2011), class participants are ex-
pected to determine the value created by the company. This question intends to explore students’
argumentative capabilities and, at the same time, indirectly lead them to ponder the goals un-
derlying Alquería’s actions.
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The more skilled students will mention the organization’s dream creation scheme, which views
long-term improvements as part of an environment called H3, where the ideas of the dream buil-
der, embodied by Cavelier, emerge to point to a long-term strategy. On a second, mid-term level,
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H2 organization’s management ranks are expected to launch the initiatives, executing them in
such a way to lay the groundwork to accomplish the goals established by the long-term strategy.
Finally, on level H1, the organization’s most immediate problems must be solved, and the com-
pany’s production operations must be handled. However, this strategic approach is based on the
way the organization organizes its actions, suggesting “how things are done” and revealing “what
things are done.” Yet, the question, “how are these actions integrated?” remains unanswered, as
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well as the question, “what is the purpose or the goal of these actions?” These two questions pave
the way to an in-depth discussion and will be addressed later with the topic of shared value and
in greater detail in Part B of this case.
• Question # 3b: What do these milestones reveal about Alquería and its value proposition?
At this point, students should be asked about Alquería’s past stages and the leaders involved in
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the company’s decision making. The goal is to briefly recap Alquería’s milestones and the deci-
sions that have shaped the company, so that class participants can organize the information on
the organization and come to understand how its value proposition has changed over time. To
review the company’s milestones, see Exhibit 1 (Alquería’s timeline).
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Students should be asked to outline Alquería’s CSR strategy as well as its underlying reasons and
goals. A careful look at the case should enable participants not only to spot the social responsibili-
ty projects listed in Exhibit 2 of the A part of the case but also to analyze the company’s CSR as a
whole. In other words, students should be able to judge Alquería’s CSR practices as part of its ove-
rall business strategy –that is, specifically how its business model is aligned with its CSR strategy.
At this juncture, the data provided can be used to show this company’s accomplishments as well
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as some of the issues it could improve. This can serve as a starting point to explain the notion of
shared value and to discuss whether Alquería is creating shared value (Porter, 2011). The idea
here is to help students realize that an organization’s competitive approach does not exclude a
social endeavor; on the contrary, even the most competitive strategy can prove to be the most
beneficial from a social standpoint. The key lies in understanding how these two are related and
the multiple choices available to focus an organization on creating value in several dimensions. At
this point, it is important for class instructors to revisit the central components of the value chain
and competitive setting notions, so that participants can tackle the following question next, how
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has Alquería contributed to the development of these two dimensions, and in what areas could it
make more of an effort? The answer to this question hinges on the extent to which the company
has transformed some of its value chain’s primary and secondary operations in order to minimize
its social and environmental impact, as this enables the organization to build long-lasting, deep
ties with its stakeholders (i.e., small suppliers) while finding new ways to work with some of the-
se groups that hold promising benefits for the organization in the long run.
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Students can use the information they have gleaned from the case to make contributions and to
realize that there are limitations to the conclusions that can be drawn. Some students may argue
that more detailed information is required and that it can only be obtained by means of a careful
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analysis of the organization’s sustainability reports, which may be reviewed on the company’s
website.1 However, the case does indicate this to students, which means that insightful contribu-
tions can be made, showing students’ analysis of these documents.
A second argument that must be taken into account is to what extent Alquería’s CSR practices are
consistent with its value chain and its competitive setting –that is, what practices have contribu-
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ted to the transformation of the organization’s outside and inside dimensions and how.
In this regard, as noted by Porter (2011), what matters is not that the company undertakes CSR
initiatives if they are not sustainable; companies should carry out endeavors that can be sustaina-
ble over time and that are associated with their core operations in terms of their value chains or
their competitive settings. This is precisely where the notion of shared value plays a key role, as
strategic behaviors can create benefits for both companies and the societies where they operate.
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As a company, Alquería still has a long way to go as well as a number of development opportu-
nities, but it may be safe to say that it has effectively managed, with its initiatives and ongoing
adjustment to market changes, to create great value for the company and, at the same time, for
the dairy industry and its surrounding communities. It has also built leadership and lowered its
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environmental impact. In short, the company has indeed embarked on a process that creates sha-
red value. The question remains whether that value is organized according to a strategy, is mea-
surable and can be the core supporting the organization’s business.
Class instructors may wrap up this discussion by pointing some of the key drivers for shared value
creation (see Pfitzer, M. Bockstette, V. & Stamp, M., 2013). For these authors, who have delved
deeper into Porter’s concept (2011), five traits characterize companies that manage to combine
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their business and social strategies, thus creating innovations to build shared value and to incor-
porate that value as a key component of their strategy:
a) The company must focus and incorporate a social purpose into its strategy.
b) The company should determine the social needs closely associated to its key busi-
ness impacts.
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c) These organizations must view measuring the shared value they create as a key goal,
as this circumscribes their strategy and helps them focus their efforts and resources.
d) These companies need to build an effective innovation scheme based on the continuity
of the legacy stemming from their organizational foundations. Relying on collaborations
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All the information on sustainability reports may be found at Alquería’s website:: http://www.alqueria.com.co/
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with the government and the third sector, they can support external projects and people
who can potentially create new business opportunities.
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e) These organizations are willing to co-create value with their outside stakeholders,
which means maintaining ongoing relationships and managing ties with a broad range
of stakeholders, leveraging their capabilities over the long term.
Part B: Social Innovation Challenges (30 minutes)
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When the discussion of Part A of the case comes to an end, class instructors have two choices,
depending on their class time management: one is to hand out Part B of the case in the same ses-
sion, so that students may learn about Alquería’s choice, and the other one is to hand out Part B
of the case, so that students prepare for its discussion at home and return to continue the analy-
sis of this case in the following class.
Time required to read Case Part B in class: 10 minutes –5 pages.

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Cavelier decided to import some milk on a short-term basis, but, for the long run, he chose to su-
pport suppliers’ development. It’s time to take a look at how he did it.
• Question # 4: What role does the La Macarena initiative play in Alquería’s corporate so-
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cial responsibility strategy?
The Part B of this case starts with Alquería’s decision to adopt a supplier-inclusive strategy. At
this point, the class should discuss and understand how and why the La Macarena initiative emer-
ged. This starting point can be used to explain that the company made the short-term choice to
remedy the immediate milk shortage, but its long-term solution hinged on strengthening its stra-
tegy to include suppliers, as reflected by this project. This discussion enables the class the explo-
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re the notion of social intra-venture as an alternative for companies that want to include social
and environmental value creation in their value chains. This shows how businesses can increa-
se the consistency between their competitive and social strategies by building specific ventures
inside their companies –in this case, an initiative to support farmers in illegal crop substitution
areas at La Macarena.
The strategy pursued at La Macarena has become a star initiative in Alquería’s shared value crea-
tion efforts, as it has enabled the company to find new ways to strengthen its value chain while
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reinforcing its ties to new communities that can switch from coca crops to milk production. This
inclusion policy provides Alquería with an opportunity to create jobs, to have a positive social
impact, and to innovate in its business.
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• Question # 5: Can this initiative be construed as a social innovation? Why?
This question intends to fuel a debate on the relevance of Alquería’s actions. What type of strate-
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gy is this one? Why does it make sense? Where does it innovation lie? This part of the discussion
proves suitable to delve into the notion of social innovation and to explore how Alquería’s strate-
gy embodies this type of innovation by presenting a fresh perspective on a problem that is usually
regarded in the same way. On the one hand, Alquería needs to meet the demand for milk, and,
on the other, a community like La Macarena has a history riddled by conflict (see the exhibit on
La Macarena’s location and its significance in Colombia’s conflict) and a population largely with
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no other choice except growing coca, which is illegal. With its initiative at La Macarena, Alquería
pursues an inclusive strategy with the potential to create opportunities and to drive transforma-
tion in the local social setting. Both parties’ interests are taken into account and merged into a
single choice to create value at both ends. This initiative establishes new working conditions and
opportunities for farmers, while it provides a more stable and fair market, guaranteeing product
purchases for initiative participants. In a nutshell, the company’s strategy at La Macarena brings
a solution for a social problem with a fresh approach that bears an impact on the local popula-
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tion’s living conditions. In this light, this strategy can be viewed as a social innovation, driven
from the start by the national administration led by President Juan Manuel Santos (2010-2018)
and developed as a result of Carlos Enrique Cavelier’s leadership and vision.
At this point, it proves useful to take the Young Foundation scheme for social innovation (2010,
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see Blackboard 4) in order to use the initiative at La Macarena to illustrate how a social innova-
tion evolves from an idea to meet a social need in a new way, leading to proposals and small-scale
application prototypes that can later expand the solution on a broader scope.
Some questions that can prompt further discussion on this model may include the following: What
should Alquería do to move from stages 3 and 4 on to the expansion to other areas in Colombia?
What resources would be required? What challenges would the organization face at that crossroads?
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Final Part: Wrap-Up (15 minutes)
• Question # 6: If you were part of Pilar Noriega’s advisory committee, what arguments
would you provide to make her case to persuade the Board to adopt international report-
ing practices, such as GRI and the UN’s Global Compact?
The discussion on Part B of Alquería’s case can incorporate students’ arguments supporting the
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need for the company to build a social responsibility system to measure its impact, its reach and its
progress. Class participants’ contributions should be jotted down on the right side of the blackboard.
Class instructors should reinforce these notions, showing the many benefits and the international
recognition received by companies that follow worldwide guidelines and standards approved by the
United Nations regarding human rights, the labor rules set by the International Labor Organization,
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and the Global Compact’s ten principles on environmental care and the fight against corruption. 2
Similarly, it proves useful to look at the benefits provided by the internationally renowned Global
Reporting Initiative (GRI).3 Indeed, this guide shows how to quantitatively measure business, en-
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vironmental and social processes, with metrics that not only afford legitimacy and recognition to
companies but also provide tools for them to merge their business and social responsibility strate-
gic pursuits. Thus, companies can measure the social value they create in a more objective manner
and determine the resources they require to scale up their high-impact initiatives. Such would be
the case of Alquería’s supplier development initiative at La Macarena and its nutritional support
program via its food bank.
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• Question # 7: Is it really relevant for Alquería to join the GRI or Global Compact? What
risks would the company face if it didn’t?
This final question intends to lead students to analyze the risks a company incurs when it invests
heavily in social responsibility and fails to establish monitoring and assessment instruments to
measure its impact and value creation. Class participants are expected to wonder, regardless of the
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standards to follow, about the actual implications of announcing a shared value strategy without
supporting it with actual metrics that show the value created.
Specifically, the MACA project bears significant implications for Alquería’s productivity, while it
also affects small farmers, both in terms of their livelihood and their inclusion in formal production
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chains. It also has an impact on the country’s policy to include the private sector in post-conflict
efforts and in the substitution of illegal crops. At the same time, it affects the environment, especia-
lly on account of its proximity to La Macarena’s national park, and it will surely have an impact on
other stakeholders involved in the project or its surrounding area. For the time being, its positive
outcomes are intuitive: there are no metrics, and, if there are, they have not been publicized, which
may undermine the legitimacy of both the project itself and the company at large.
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BLACKBOARD PLAN
Blackboard 1: Strategic Choice

Pros
Cons
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2
Global Compact principles may be reviewed at http://www.unglobalcompact.org/.
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3
GRI sustainability reporting benefits may be reviewed at https://www.globalreporting.org.
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Blackboard 2. Alquería’s Strategy –More Responsible or More Competitive?
Option 1: Responsible Strategy Option 2: Competitive Strategy

Justification Justification
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Blackboard 3. Shared Value Characteristics
a)
b)
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c)
d)
Blackboard 4: Social Innovation Model

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SUPPORT EXHIBITS FOR
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CLASS PLAN I - Leardership
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Exhibits’ EXHIBIT 1. Alquería’s Evolution as a Great Place to Work.
Section
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WHAT IS GREAT PLACE TO WORK®?
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What is a Great Workplace? –The Employee View

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Exhibits’ Great workplaces are built through the day-to-day relationships that employees experience —not
Section a checklist of programs and benefits.
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The key factor in common in these relationships is TRUST. From the Employee’s perspective, a
great workplace is one where they:
• TRUST the people they work for;
• Have PRIDE in what they do; and
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• ENJOY the people they work with.
Trust is the defining principle of great workplaces —created through management’s credibility,
the respect with which employees feel they are treated, and the extent to which employees expect
to be treated fairly. The degree of pride and levels of authentic connection and camaraderie em-
ployees feel with one are additional essential components.
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What is a Great Workplace? –The Leader View
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From the leader’s perspective, a great workplace is one where they :
• ACHIEVE ORGANIZATIONAL OBJECTIVES;
• With employees who GIVE THEIR PERSONAL BEST; and

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• WORK TOGETHER AS A TEAM / FAMILY in an environment of TRUST
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Exhibits’ HOW HAS ALQUERÍA PERFORMED AS A GREAT PLACE TO WORK?
Section
As part of its commitment to maintain a healthy workplace atmosphere that promotes employees’
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growth, development and living conditions, the work climate is assessed at all company opera-
tions across the country (2,365 employees completed a survey conducted by the Great Place to
Work institution). Survey findings have revealed opportunities for further improvement in the
areas of competition, delegation, and vision.
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Alquería has steadily capitalized on extraordinary accomplishments, improving from earlier me-
trics (2011), and it continues to work on consolidating as a satisfactory workplace according to
its employees’ valuation, which stands at 6 percentage points above (88) the valuation of emplo-
yees working at the Top 10 Great Place to Work company in Colombia (82). “This performance
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ensures strong loyalty from our employees and a sound reputation in Colombia’s labor market
to face the significant talent-related challenges faced by our working and business community”
(Alquería’s 2012 Sustainability Report).
EXHIBIT 2. Responsible Leadership Behavior Drivers
Development psychology research studies (Erikson, 1963; Gilligan, 1982; Kohlberg, 1981; Piaget,
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1932) contribute to the understanding of the links between individuals’ behavior and the under-
lying drivers identified as its motivational engines, for they point to childhood as an important
sage for their development. Thus, the “assumption is that responsible leadership behavior is ba-
sed on past emotional and moral experiences, starting in childhood and developing over time”
(Pless, 2007, p. 439). Based on works on psychology and ethics, two motivational drivers can be
distinguished: intra-psychic drivers –also known as Motivational Need Systems (MNS) (Kets de
p. 25 Vries, 2001; Lichtemberg, Lachmann and Foshage, 1992)– and moral drivers.
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Exhibits’ Intra-Psychic Drivers
Section
Intro-psychic drivers are deemed as underlying forces, associated with a motivational need sys-
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tem (MNS) and inducing individuals’ behaviors. Thus, this set of needs and is setup inside indi-
viduals are, according to Kets de Vries (2004), central constructs to understand the emergence
of leaders’ behaviors. Every one of these intra-psychic drivers are described next.
Need to Explore and Affirmation
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The need to explore is associated with cognition and learning, involving the ability to experience,
play, learn, and work. Observing children has shown that novelty and the discovery of the effects
of certain actions hold children’s attention for long periods (Kets de Vries, 2001; Lichtenberg,
1991). “Closely tied to the need to explore is the need for self-affirmation, the need to choose what
one wants to do. Manipulating the environment as a result of the need to explore and the need
for affirmation produce a sense of autonomy and initiative that continues on in adulthood” (Kets
de Vries, 2001, p. 106).
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Pless (2007) states that qualities such as curiosity, interest, self-affirmation, and the ability to
learn from experience are important requirements to become a leader..
Need for Attachment and Affiliation

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According to (Bowlby, 1973), attachment is construed as a basic human need to relate to others, to
be close to other people, to belong to a group. “It refers to the pleasure of sharing and affirmation”
(Kets de Vries, 2001, p. 106). “When this need involves a lesser intimate interaction and refers to
groups, organizations and/or institutions, it is called a need for affiliation” (Pless, 2007, p. 439)
Sense of Enjoyment/Joy
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The sense of enjoyment and/or joy refers to the ability to feel glee, to have fun, to enjoy, to play
with others (Kets de Vries, 2001, Pless, 2007). The need to enjoy and to feel joy is viewed as a
fundamental mental health dimension both for individuals and organizations (Kets de Vries,
2001), as leaders enjoy what they do, feel passionate about their work and do it with love. Their
work is not a burden for them but the possibility to serve, to do good, to be part of a family that
exercises a powerful strength to do good, while drawing pleasure and having fun (Pless, 2007;
Rodidick, 1991).
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Responsible Leadership Normative Drivers
The second type of underlying motivational drivers are called normative drivers. It should be no-
ted that intra-psychic drivers are grounded on individual needs of a personal nature, while nor-
mative drivers pertain to an interpersonal dimension and are intertwined with values and moral
p. 26 norms, which are rooted in the need to coexist and to help each other. Pless (2007) posits that
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Exhibits’ normative tenets play a key role in responsible leadership understanding and development, as,
Section in addition to being a relational phenomenon, responsible leadership is a normative phenome-
non –that is, it is viewed as a moral phenomenon based on values (Maak y Pless, 2006ª) that
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guarantee the peaceful coexistence in society.
Based on these studies, Pless (2007) has identified three normative drivers: i) the need for and
sense of recognition, ii) the need for and sense of justice, and iii) the need for and sense of care.
The Need for Recognition
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Apart from the need for attachment and, later, affiliation, people feel a fundamental need to be
recognized, respected and valued as human beings (Pless, 2007). Typically, we expect our loved
ones to love us, and we expect our friends and colleagues to acknowledge us for who we are and
what we do; we expect our bosses to honor and value our success, and our governments and fe-
llow citizens, to respect our rights as free, equal citizens (Pless y Maak, 2004). “The need for re-
cognition may be expanded to recognize others as well” (Pless, 2007, p. 440).
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The Need for Justice
The need for justice is a basic human need that stems from the desire or the search for equity.
This need provides a moral framework for the interaction among human beings (Pless, 2007).
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Kolberg (1981) stated that morals are developed in a number of stages throughout life, with moral
maturity being the highest level, representing a focus on universal ethical principles.
A Sense of Care
The attachment experience during childhood, along with moral development during adolescence
and adulthood may lead individuals to a sense of care and responsibility (Pless, 2007). Gilligan
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(1982) underscored three stages in the development of morals: the first one refers to caring for
oneself in order to ensure survival; the second one, to the care of others, which may cause the hi-
ghest development and third stage, which zeroes in on care as a more interdependent principle.
It should be noted that there is a conceptual distinction in the categorization of intra-psychic and
normative drivers, as the former are associated with a motivational need system (MNS) that per-
tain to the explanation of traditional leadership; the latter –i.e., normative drivers– are explicitly
linked to the ethical behavior associated with responsibility in actions. Thus, intertwining in-
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tra-psychic drivers and normative drivers provide the setup for responsible leadership behaviors.
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SUPPORT EXHIBIT FOR CLASS
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PLAN II: Shared value and social
innovation
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Exhibits’
Section Exhibit 3. Alquería’s Timeline
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1959 Alquería was founded by Professor Jorge Cavelier and his son Enrique Cavelier, with the
motto “A bottle of milk is a bottle of health”. In addition to engaging in the dairy industry since Al-
quería’s inception, the Cavelier family showed a remarkable interest in public and political affairs.
1962 Early innovations; packaging improvements; increased milk quality.
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1978 Alquería opened is first milk distributor in Bogotá to expand its reach in Colombia’s capital city.
1978 Alquería outsourced its distribution operations in order to enhance its productivity and
further expand its operations.
1992 Carlos Cavelier, Enrique Cavelier’s son, took over at Alquería’s helm at a time when the
company did not have an outstanding performance in the market.
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1992 Cavelier led the organization along a strategic change process to improve its poor competi-
tiveness. That same year, Cavelier traveled to France to learn about the UHT technology.
1995 Alquería implemented the UHT technology to enhance its milk hygiene and sterilization
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conditions. It was the first Colombian company to adopt this technology and to bring the machi-
nery required for long-life milk production. To this end, Alquería pursued a number of support
strategies to provide technical assistance to farmers, as this technology required premium qua-
lity raw materials.
1992-2000 The high financial costs incurred by loans taken to implant the UHT technology dro-
ve Alquería to the brink of bankruptcy (Law 550).
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1992-2000 An alliance was forged with Enrique Luque Carulla to venture into market research,
trend spotting, and promotional strategies.
1992-2000 The number of Alquería customers rose significantly, as well as the company’s mar-
ket performance.
1992-2000 The company adopted and consolidated a flexible, dynamic organizational structu-
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re in order to provide workers with in-company growth opportunities and to help them improve
their living conditions. Alquería became a hub that drove employee’s career development and
human growth.
1992-2000 Cavelier decided to change the industry’s culture, adopting a policy to purchase milk
from farmers consistently throughout the year, regardless of demand fluctuations. To this end,
p. 28 I created specialized centers for milk powder dehydration and storage in case of excess supply.
SUPPORT EXHIBIT FOR
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CLASS PLAN II: Shared value
and social innovation
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Exhibits’
Section 1992-2000 Alquería built partnerships with educational institutions like SENA, creating trai-
ning programs for farmers in order to improve grass, cattle and field utilization.
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2001 The company changed its name to “Productos Naturales de la Sabana S.A. Alquería”, intro-
ducing a large assortment of products to meet the changing demands of consumers: lactose-free
milk, skimmed milk, milk enhanced with probiotics, and other products.
2001 Alquería secured the quality certification called Quality Chekd as part of its commitment
yo
to milk manufacturing quality.
2003 Alquería was granted accreditations by ICONTEC and HACCP as part of its efforts to stri-
ve for excellence and quality.
2005 Alquería inaugurated one of the largest aseptic packaging plants in the Andean region.
op
2007 Alquería faced another output shortage as a result of weather conditions (long-lasing drou-
ght), and it chose to import milk.
2009 Alquería celebrated its 50th anniversary by positioning itself as one of Colombia’s leading
milk manufacturers, following Colanta S.A. and Alpina S.A.
tC
2010 The Cavelier Lozano Foundation was created with a strategic plan designed to address the
needs of communities on two impact fronts: education and nutrition.
2011 Cavelier had managed to consolidate a company that manufactured superior quality foods,
constantly innovating and taking into account its customers’, suppliers’ and employees’ interests.
No
2013 Alquería received the 2013 Britchman Lazos award for the creation and promotion of com-
munity strengthening projects and the ongoing search of sustainable improvements for living
conditions –in this case, by investing in education and nutrition.
Do
p. 29

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Teaching Note: AN0030

More than Just a Glass of

UNDERSTANDING OF THE DIFFERENCES

a. Understanding the difference between responsible and traditional leadership

vii. Story narrator

c. Contextualizing the impact of a leader’s behavior on organizational dimensions on a

• Maak, T., and Pless, N. M. (2006), “Responsible Leadership in a Stakeholder Society –A

CLASS DISCUSSION GUIDE

Strategic Decision (15 minutes)

Carlos Enrique Cavelier as a leader (30 minutes)

Part B: The impact of a leader’s behavior on organizational dimensions

stakeholders) level (30 minutes)

Part A: Responsible Leadership vs. Traditional Leadership

• Question # 2: What would either of these decisions mean for Alquería?

Importing Milk Supplier Development

of responsible leadership may be construed as the creation of sustainable, trust-based relations-

Drivers According to academic studies (Pless, According to academic studies (Pless,

a family business, to encompass public affairs outside as well.

The Leader as Citizen

The Leader as Visionary

Operating roles include:

The Leader as Change Agent

Part B: The impact of a leader’s behavior on organizational dimensions

Cavelier’s responsible leadership behavior –acknowledging stakeholders’ needs and building

Final Part: Wrap-up (10 minutes)

Importing Milk Developing Suppliers

Blackboard 2: Carlos Cavelier is a traditional or a Leadership Outcomes

Option 1: Traditional Leader Option 2: Responsible Leader

Responsible Leader’s Roles:

Blackboard 3: Responsible leader

Blackboard 4: What Is Alquería Missing?

DERSTANDING OF THE SHARED VALUE AND SOCIAL

What traits characterize Alquería’s corporate decision making?

assistance of class instructors.

Corporate Social Responsibility and Social Innovation

vard Business Review, September, 101-107.

Strategic Decision (15 minutes)

Part B: Social Innovation Challenges (30 minutes)

• Reading Part B of the case

Final Part: Wrap-Up (15 minutes)

Part A: Alquería’s Strategy

Strategic Decision (15 minutes)

Previous Strategy Characteristics (30 minutes)

Part B: Social Innovation Challenges (30 minutes)

Time required to read Case Part B in class: 10 minutes –5 pages.

cial responsibility strategy?

Final Part: Wrap-Up (15 minutes)

Blackboard 1: Strategic Choice

Importing Milk Developing Suppliers

Option 1: Responsible Strategy Option 2: Competitive Strategy

Blackboard 4: Social Innovation Model

What is a Great Workplace? –The Employee View

• TRUST the people they work for;

• Have PRIDE in what they do; and

From the leader’s perspective, a great workplace is one where they :

• ACHIEVE ORGANIZATIONAL OBJECTIVES;

• With employees who GIVE THEIR PERSONAL BEST; and

• WORK TOGETHER AS A TEAM / FAMILY in an environment of TRUST

EXHIBIT 2. Responsible Leadership Behavior Drivers

Need to Explore and Affirmation

Need for Attachment and Affiliation

Responsible Leadership Normative Drivers

The Need for Recognition