Latin America Case

The Amanco is a leading company in Latin America in the production and marketing of solutions for fluid transportation and systems for light weight construction. It has grown to be Latin America's leading manufacturer of plastic pipes and fittings with a strategy that has built-in sustainability. Company has differentiated itself by developing a brand that is associated with sustainability in all the countries in which it operates. This was further reinstated by its new products which systematically took environmental and social impact into consideration as they became available, by identifying and substituting compounds containing calcium, lead and zinc. The company also serves a wide range of customer base, by identifying products and services designed to improve social conditions for low-income customers while creating value for itself.

The 'Balanced Scorecard' was a new concept developed by a Harvard professor Robert Kaplan. This allowed companies to measure matrixes beyond traditional financial measurements like customer satisfaction and level of innovation; this idea was well received by the business community. Amanco has extended the idea of Balanced Scorecard to embrace both social and environmental dimensions, and is called a 'Sustainability Scorecard'.

Amanco first introduced its sustainability scorecard in 2003 initially it focused on the social impact on employees and communities around its factories. But it has since been expanded to include business with low-income customers fighting corruption in the sector, and indicators on accident prevention and eco-efficiency. According to Jorge Ramirez the company's financial director, the extensive media coverage that these initiatives receive has a positive effect on consumers' awareness and attitude towards the company. There is less doubt about the benefits of company's effort to reduce waste to lower accident rates. These are all measured and managed, and have a positive impact on cost.

There are numerous pros of balanced Scorecard approach to sustainability and some of these are as follows:

1. Sustainability is integral part Amanco's brand differentiation

2. In Brazil, Amanco has gone from being relatively unknown company to a having 50% brand awareness

3. Brand value increased