Air-e: From the Territory Not from the Desk

The case of Air-e, a Colombian electricity distribution company, explores its Social Value Department's efforts to create social value in the communities it serves, specifically the Yotojorotshi community in La Guajira. The department collaborates with NGOs, private companies, and experts to implement initiatives such as early childhood programs, handicrafts, and dry toilets, among others. However, designing a business model that considers the local context and the communities' economic practices presents significant challenges. The ultimate goal is to empower the community to manage its processes and sustain projects and services after the department leaves the territory. Furthermore, Air-e faces challenges related to its social license to operate in a region with a history of poor electricity services, high poverty rates, and a complex social fabric. The high rates of electricity theft in the region have resulted in significant economic losses for the company, while aggression and physical assault against its contractors have negatively impacted the company's stakeholders. Air-e must develop a strong social license to operate that demonstrates its commitment to operating in an ethical, responsible, and sustainable manner to succeed. This case is part of the CBS free case collection (visit www.thecasecentre.org/CBSfreecases for more information on the collection).