Article originally published in The Wharton School's Carol and Lawrence Zicklin Center for Business Ethics Research. Written by Shritha Mandava & Nicholas Kuo, students from the University of Pennsylvania
Photo: Dedeco, President of ASCAMPA
In a wooden house off The Amazon River in Manaus, Brazil, our group of 7 students from the University of Pennsylvania sit with over 20 native Amazonian farmers as we speak over the cacophony of the tropical shower around us. Dedeco, the President of social enterprise ASCAMPA, graciously has spent the day alongside his family and friends showing us how the Guarana plant is farmed and harvested. We end our long day in the fields with an association meeting with the hardworking Amazonian families who oversee the farming of ASCAMPA’s main product, Guarana.
“If there’s one thing we can do to help, what would it be,” we ask the farmers in the room.
“Get your education and share our story,” Dedeco said.
Photo: Students from University of Pennsylvania in Maues, Brazil hold packaged guarana, posing with Marcelo Cwerner, NESsT Portfolio Manager
In the summer of 2021, seven of us Penn students (Nicholas Kuo, Shritha Mandava, Deepak Kejariwal, Tejas Gill, Anish Pothireddy, Elizabeth Guan, and Ryan Guber) began our work with NESsT Amazonia, through Penn International Impact Consulting (PIIC). PIIC is a pro-bono consulting club in which Penn students partner with international NGOs and organizations around the world to develop sustainable solutions to business problems they are facing. Team leads and senior consultants, Nicholas Kuo and Shritha Mandava, were quickly amazed by NESsT Amazonia’s mission to support climate smart solutions that improve the lives of locals in the Amazon basin. With the partnership of NESsT, our team consulted for two social enterprises in NESsT Amazonia’s portfolio: ASCAMPA (Associação Comunitária Agrícola do Rio Urupadi) and ASSOAB (Associação dos Agropecuários de Beruri). ASCAMPA grows Guarana, whose seed is used in many beverages as a natural caffeine source. ASSOAB grows organic, natural, Brazilian nuts.
Throughout the year, we were able to work on a number of deliverables for the enterprises including researching strategic partnerships, conducting primary research on emerging markets, and integrating financial projection analytics into a 5 year business plan. However, we knew our work was severely limited due to the physical distance separating us and our client. A true understanding of the enterprises’ work would require a visit to Manaus, Brazil. So, after many months of planning with NESsT, Wharton administration, and the Zicklin Review, we packed our bags, hopped on a plane, and flew to the heart of the Amazonas in Brazil in May of 2022.
Photo: Lizzie and Shritha pose with Sandra Amud (wearing glasses), President of ASSOAB
In 11 short days, the seven of us experienced a life changing visit and saw the true meaning of social impact. ASCAMPA and ASSOAB are both organizations that make a positive impact on their communities and farm with utmost integrity. Combined, ASCAMPA and ASSOAB employ over 370+ indigenous families in the Amazon Rainforest.
They use practices passed down to them for generations to produce high-quality, organic products while employing community members whose cultural identity and lives depend on these jobs. Despite the meaningfulness of their work, these associations are often underpaid for the quality of their products and face limitations due to the complex business logistics of The Amazon. For example, the closest major city to ASCAMPA’s central headquarters is a 2 hour boat ride, creating major barriers in the exportation of products. Middlemen attempt to disrupt ASSOAB’s operations by buying Brazilian nuts from farmers for a lower price.
Climate change and deforestation threaten the livelihood of both guarana and Brazilian nuts which are dependent on the health of the forest itself.
In the photo: UPenn students hold client meeting with ASSOAB in Beruri, Brazil.
Our group sat down with NESsT portfolio managers, leaders from the enterprises, professors, and teachers from nearby schools to discuss how politics, sustainability, and business intersect in the Amazon Rainforest. There were a few major takeaways from this meeting. One, non-urban indigenous individuals, such as the farmers of ASCAMPA and ASSOAB, are often overlooked by charity organizations and government policies. These organizations tend to favor urban indigenous whom they view as more “integrated” into their society thus further creating barriers for farmers. Two, although the Brazilian government consistently fails to support the efforts of indigenous farmers and environmental sustainability in the Amazon Rainforest, these families nonetheless feel a responsibility to protect the entire world’s ecosystem with their sustainable farming practices. Three, even though many farmers in the Amazon have used organic, sustainable farming practices for hundreds of years, there are barriers keeping these social enterprises from receiving certifications that would help them grow their international presence. For example, it is incredibly time consuming and costly to have approved certifiers visit 350+ farmers along the Amazon River to obtain full certification.
However, we also walked away from the conversation with ideas on what these enterprises could do to grow. With their sustainable farming practices and meaningful mission to support indigenous families, we hypothesized that consumers may be more likely to support these organizations. We knew the farmers, who work day to night, did not have the resources to do their own research, so we put our knowledge to use and created a consumer survey to assess how features of products such as being organic, supporting indigenous people, having all-natural ingredients, and more could influence consumer willingness to pay. Through our primary research, we saw significant correlation between increased willingness to pay and the variables listed above. We analyzed and presented this information to the enterprises so that they could use the data to negotiate for higher prices and drive away competing middlemen individuals who create supply chain price fluctuations.
For more highlights on the survey, visit the Partnership for the Conservation of Amazon Biodiversity’s article about our work.
Example primary research data collected by our group, focused on consumer willingness to pay
Inspired by our visit, we put together a 5-year plan for both ASCAMPA and ASSOAB to hopefully grow their enterprises. We compiled our research to provide ideas on expanding global presence, strategic marketing, and refining the business model.
In the photo: Marcelo Cwerner explains Brazilian nut collection to UPenn students in Amazon Rainforest
We are so honored to have worked with both of these organizations and stay pondering what more we can do. Following the request of the Amazonian people, our true mission in sharing this story is to educate readers like you on the importance of sustainable agriculture and social impact.
There are millions of farmers in the world in need of conscientious people buying their products. Whether it’s Guarana and Brazilian nuts, or the everyday clothes you wear, we urge you all to think about where the products you consume come from and how you can support small businesses. We want the future of business to be rooted in social impact, but that change starts with us. As we conclude this piece, we are so grateful for what The Amazon taught us and hope to have inspired you to make a change in your everyday life.
Our deepest gratitude to Marcelo Cwerner, Fernanda Favaro, Renata Truzzi, Andrea Castro of NESsT for organizing this trip. To Dedeco of ASCAMPA, we plan to share the wonders of Guarana with our communities at Penn and thank you for teaching us the importance of leading with kindness. To Sandra Amud of ASSOAB, we plan to share the wonders of organically produced Brazilian Nuts with our communities at Penn and have left empowered by a women-led enterprise who are leading with love.