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Published by:
Copenhagen Business School (CBS) (2013)
Length:
22 pages
Data source:
Field research

Abstract

Vestas was to start delivering 132 V90-3.0 megawatt (MW) turbines in the second quarter of 2012. The turbines were to be installed in the Isthmus of Tehuantepec region of Oaxaca, a southern state in Mexico. However, on 17 October 2012, Vestas’s deliveries were put on hold when social organisations and 40 indigenous Zapotec and Huave people held rallies in front of the Danish Embassy in Mexico City. With banners and placards, the protestors demanded Vestas’s exit from the Isthmus of Tehuantepec. The indigenous people suggested that although European companies had traditionally been present in Mexico and were among the most experienced wind developers in the world, 'their capitalist model' failed to take into account, 'the spiritual and social ties between the indigenous rural communities and the land'. According to local residents, the basic problem was a clash of cultures. This case can be analysed taking into consideration different perspectives, such as: 1) social movements, 2) development, 3) business models, 4) international business, 5) institutions and governance, and 6) corporate social responsibility. An additional angel that could be considered is the communication process and stakeholder involvement between MNCs, governmental officials and local communities, when implementing large-scale investment projects. The case presents a conflict which involves four actors: 1) Indigenous communities in the Isthmus of Tehuantepec region in Oaxaca, Mexico: Zapotecas, Huaves or Ikoot, 2) The Mexican Government 3) VESTAS, and 4) Marena Renovables. This case is part of the CBS free case collection (visit www.thecasecentre.org/cbsfreecases for more information on the collection).

Topics

Mexico; Wind energy; Corporate responsibility; Corruption; Developing studies; Social movements; International business; Stakeholder management; Institutionalisation
Location:
Industry:
Size:
4,200 employees
Other setting(s):
2010-2013

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