At the close of 2004, CANTV was Venezuela's largest privately owned company. It operated in the telecom market, the only economic sector other than oil that enjoyed sustained growth in the 1990s. At the start of 2000, it faced growing competition, regulated tariffs, and deteriorating consumer purchasing power. The company focused efforts on cost containment and the introduction of new services. Although in 2004 the telecom sector rebounded, political instability, currency devaluation, and tariff regulation affected investment plans. Poses the challenge of designing a social responsibility strategy for a large, publicly traded Latin American company operating in a context of political instability, financial volatility, and growing poverty. President Gustavo Roosen felt CANTV should project a "grand and friendly" image to its stakeholders (customers, government, and suppliers, among others). The aim was to align the social portfolio with the image of a company that generated social (friendly) and economic value (grand). The company's social responsibility was implemented through a variety of programs. CANTV had placed emphasis on philanthropy by means of the Social Fund and other sponsorships, run from the Institutional Relations Department. In 2004 CANTV launched Super@ulas, a program aligned with the telecom business and managed from the Executive Vice President's office. Some of the company's top managers expressed concern in 2004 over the results generated by social contributions, and looked for synergistic opportunities--among them improved relations with the regulating agency and alignment with business objectives. The idea was to continue providing support to social agencies, many of which were at risk as a result of the shrinking number of grant sources and a government policy that sought total control over social programs.

Poses challenges facing a firm that undertakes innovative social initiatives, initially in response to threats (land invasions, assaults) derived from the poverty of its immediate surroundings and a highly polarized social and political environment. C. A. Ron Santa Teresa (CARST) is one of Venezuela's oldest family-owned firms. Rum making is among Venezuela's best known industries, going back to colonial times. CARST is the world's fourth largest rum producer (1.3 million eight-liter boxes). Focuses on April 2004, when Alberto C. Vollmer, newly designated CEO and son of the largest shareholder, must persuade CARST's board of directors of the strategic implications of their social initiatives. Allows analysis of the evolution of these initiatives and their integration into the company strategy.