Ethical Innovation

The market for caffeine is approaching new heights, and while it hasn’t always had the most ethical reputation, new and innovative sources of energy are emerging.Take for example Runa, a company which exports guayusa, which is a healthier source of energy in comparison to caffeine.  

 

 

 

 

 
Runa’s focus is not solely on the profit which they earn, but on ensuring that the rain-forest from which their leaves are picked from is preserved, as well as creating a sustainable source of income for the Kichwa families who work with Runa. Runa is aiming to become a major exporter of guayusa; however, it will not compromise their ethics to reach this goal. Keeping in mind the environmental and social affects it can have, the company is diversifying the source of income for Kichwa community. This has two beneficial outcomes. The crops are spread out, thus the deforestation of one plant is less likely to occur and the community does not have only one source of income. By investing their efforts in the sustainability of community and environment, Runa is following the principal of Freeman’s stakeholder theory.  It is not focusing on the quickest way in which profits can be maximized, or in which way their company can grow exponentially. It’s built on the foundation of ensuring that while the needs of the consumers and financiers are met, the producers and suppliers interests are still kept in mind.  By setting a fixed price at 35 cents per pound of leaf, the community will be shielded from a surplus of sales. The farmers have also seen a 10 percent increase in their income, and are able of using money from a fund made specifically for community development. These policies demonstrate how Runa works with all aspects of their business, just as suggested by Freeman’s stake holder theory.

Citation

“Ditch Your Morning Java and Smell the Guayusa.” The Globe and Mail. N.p., n.d. Web. 11 Sept. 2014. <http://www.theglobeandmail.com/life/food-and-wine/food-trends/ditch-your-morning-java-and-smell-the-guayusa/article20495025/>.

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