Indupalma was managed as a plantation since its creation in 1961. Labor conditions were grim, and labor unrest was at a peak when the general manager of Indupalma was kidnapped by the guerrilla group M-19 in 1977. Highlights the importance of corporate social responsibility.

Supplements the (A1) case.

Indupalma was managed as a plantation during its first 30 years. Labor cooperatives emerged as a response to a financial and governance crisis that led Indupalma to the brink of bankruptcy at the beginning of the 1990s. Workers and peasants formed associations to create autonomous business units (such as cooperatives, microenterprises, and associations), which sold their services to Indupalma. The company invested a great deal of resources in technical and administrative training and in human resource development for associates. The performance of workers improved, and the financial viability of the company was regained. Today, cooperatives face multiple social and economic challenges; the role of Indupalma in facing these challenges (intervention, paternalism, empowerment, or indifference) will put to the test the solidity and true impact of the development process.