BA 101 1st Edition Lecture 18 Outline of Last Lecture 1. Midterm #2 topics and Foundation Final Project2. Business OrganizationOutline of Current Lecture I. EcoCafé HaitiCurrent LectureI. EcoCafé Haiti: A holistic solution to Haiti’s societal, economic, environmental, and spiritual problems. Structure of EcoCafé Haiti: It does not use the shareholder model of business, instead it is what is known as the stakeholder model of business. The primary purpose of the shareholder model of business is to increase wealth for the owners. The stakeholder model is more complicated, in that in considers the impact of the business on ALL the stakeholders, including the society in which it operates, and the environment. Primary Stakeholders Secondary Stakeholders- Shareholders - Media- Employees- Customers- Suppliers- Communities/societies- EnvironmentRealities of Social Responsibility: No tradeoff between social responsibility and profit. Usually more socially responsible business practices do pay, but being socially responsible is not a guarantee of profitability. Haiti Information: Haiti is half the island, Dominican Republic is the other half. The two countries are separated by a mountain range. Haiti has a population of roughly 8.8 million people, which is twice the population of Oregon, in half the area of Oregon. It is situated in the middle of the hurricane belt, and is subject to severe storms and flooding from June-October, but has severe droughts from December-April. These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Haiti History: During the American Revolution, the revolutionaries were aided by Haitians, and Haiti was the first country in the western hemisphere to abolish slavery (during the French revolution). The U.S. cut all ties with Haiti after slavery was abolished, for fear the abolitionist movement would spread. The Haitians also fought Napoleon Bonaparte when he was trying to march through Haiti to occupy Louisiana. Problems in Haiti: There are four main categories of problems in Haiti; social, economic, ecological, and spiritual (according to the teacher of this course).Societal Problems:- Haitian women bear an average of five children in their lives. Often this number is much higher- One fourth of children die from malnutrition or disease before adulthood- 42% of children are severely stunted from malnutrition- The average life expectancy is 53 years- Potable water ranks last in the world- Tied with Somalia for worst caloric deficiency in the world- Famine like conditions are the norm- Uneducated populace, with the average adult having only 2.8 years of education- Crime is rampant, and there is no police systemEconomic Problems:- Poorest nation in the western hemisphere (80% of the population lives in abject poverty)- 70% unemployment rate, with wages of less than $2 per day on average- No infrastructure; few roads, no running water, no sewages systems, very little electricity- Subsistence farming is the only form of economy- Inflation has been about 30% per year over the last three yearsEcological Problems:- Only 1% of the total land mass is forested, versus about 60% eighty years ago- Since 1940, 67% of total farmland has been lost to soil erosion (due to the deforestation)- 25 of 30 watersheds are dry, and only 10% of rainfall actually penetrates the ground- Fisheries are dead because of all the silt runoff - Unparalleled pollution due to lack of infrastructureSpiritual/Theological Problems:- Relationships in Haiti are broken- God/human relationship, they have no trust or faith, or belief in sin, salvation, or redemption- Human/human relationships, they are very used to getting, and have a hard time giving. Also have a hard time forgiving- Human/creation; no respect for the rest of the world, particularly the environment- Conflicting spirituality between Christianity and Voodoo. It is said that the country is 90% Christian and 50% VoodooThe Downward Spiral of Connected Problems:- It is a very isolated country - Lack of infrastructure and capital - Need for fuel leads to deforestation - Deforestation leads to soil erosion- Soil erosion leads to watershed depletion- Watershed depletion leads to lack of food- Lack of food leads to malnutrition- Malnutrition leads to disease and death- High disease and death rate lead to loss of hope/conflicted spirituality. And so the spiral continues downRanguitte Haiti is the town where EcoCafé Haiti is located. It is in the steep foothills of north central Haiti. It has a population of 20,000, about 90% Christian and 50% Voodoo like the rest of the country. There is one dirt road and some wells, but nothing else in terms of infrastructure. Solving Problems: First you need to realize that all problems are interrelated, then realize that past efforts to help here have failed (examples just from the US Government are planting trees, and giving surplus rice). Solving problems this complicated requires a holistic solution- Repair the environment- Provision for food/basic needs/infrastructure- Established self-sustained business- Restore hope using biblical principlesEvolution of the business purpose of EcoCafé Haiti:1. To enable economic self-sufficiency in rural Hait2. To enable economic self-sufficiency in rural Haiti while also cultvatng land for food to feed the hungry3. To enable economic self-sufficiency in rural Haiti while also cultivating land for food to feed the hungry and restoring ecological environmentSelf-Sustaining Business: in order to be a self-sustaining business, EcoCafé Haiti does the following things:- Cultivation of specialty coffee with over 300 coffee farmers- Plant and maintain about 50,000 plants, have a dedicated nursery- Coffee processing equipment- Exportation of coffee to US- Market coffee as direct trade, high quality. Addressing the Spiritual Problems:- Bible study, teaching the creation story (about respect for the earth)- Relationship workshops- Jesus’ actions (giving and forgiving)- Restoration- Topical commentary and application (authority/responsibility, giving/forgiving)- Prayer and songRepairing the Environment: - Terraced and reforested 100+ acres of land- Compost unwanted vegetation - Plant about 50,000 trees- Plant food crops (beans, corn, etc)Provision for Food and Infrastructure: - Contract with landowners- Plant and maintain and harvest corn, beans etc.- Develop reliable