Samarco produced iron ore pellets used for making steel. In 2003, the company had a 17% share of the global market of the product. At the time it had 1,286 employees, split between its units in Germano, in the State of Minas Gerais, and Ponta de Ubu, in the State of EspÃrito Santo.The two units were linked by an ore conveyor 396 km long, with a maximum carrying capacity of 15.5 million tons a year. The company's mission was "to be a Brazilian supplier of high quality iron for the global steel industry, creating value for all its stakeholders". In line with this guideline, between 1997 and 2003, Samarco coordinated and financed the Bento Rodrigues Popular Environmental Education program. The aim was to contribute to the development of the community living in the Bento Rodrigues district, by gaining the commitment of the residents for identifying community problems and seeking solutions that might increase local development. In spite of the reach of concrete results, after the end of the direct intervention undertaken by the company, a decline in the participation of the community was perceived, along with the discontinuity of the actions begun. In 2003, the need to build a second ore conveyor provided Samarco with a new opportunity for interacting with the communities. Its prior experience with the Bento Rodrigues Popular Environmental Education Program caused the Environment Manager to propose a new social project concept for the company, called the Social Responsibility Education and Communication Program - PROECOS. This program, to be implemented in partnership with GAIA (Group for Interdisciplinary Application to Learning) had broad objectives: to improve the company's image; to involve the communities in the preparation of sustainable social-environmental projects and to build a network of partners for meeting local demands and proceeding with development actions after the end of the company's involvement in the Program.
IDEC, the Brazilian Consumer Protection Institute, is a nongovernmental organization created in 1987 by a group of volunteers aiming to promote consumer rights and build consumer awareness mainly through information and education in collective action and prevention. IDEC's activities were conducted largely by volunteers. The institute prioritized a financial sustainability strategy focused on raising funds among foundations and cooperation agencies. When this system proved insufficient, the organization resorted to membership fees. It also continued to pursue funding from financing entities, enabing IDEC to develop the capability to diversify activities like comparative product tests, the publication of books and manuals, and class actions representing consumer interests. Along with the growth went an increasing formalization of IDEC's organizational structure and a rising professionalization of its team. However, IDEC failed to develop strategies and activities toward its sustainability and, thus, became overly dependent on project funds. Aiming to regain a perspective of long-term survival, in late 2003 IDEC developed a business plan, the purpose of which was to become a self-sustaining organization by increasing revenues from the sale of memberships, products, and services. The dilemma IDEC faced was whether to implement the business plan, as it could transform IDEC into a provider of services for paying customers, which clashed with its orginal objective that underlay its creation. How can IDEC balance economic and social value?