Aracruz is a company that produces bleached eucalyptus pulp that is used to manufacture paper. It operates in in the Rio Grande do Sul, Minas Gerais, Bahia, and Espirito Santo. The company’s eucalyptus plantation in India covers 279,000 hectares. It also runs a Forestry Program that involves 3,000 farmers. However, over the years there has been a contentious land dispute with Indian indigenous communities because they lay claim a part of the company’s land. The government and local organizations should be at the forefront in ensuring that the interest of the local community is safeguarded. Noteworthy, the main concern of businesses are always to make profits and to benefit local communities. In this regard, Aracruz should involve government agencies, non-governmental organizations, and charitable institutions in its efforts to resolve the land disputes since these institutions normally represent the interest of local communities
In order to resolve the dispute, the company has to work with government agencies since they are the stakeholders of the local communities. Obviously, the government needs Aracruz to continue creating jobs and contributing to the country’s economic growth through its export activities. Therefore, the government’s intervention in the dispute will end the protests that caused losses occasioned by lack of exports between December 12 and 13 in 2006. During the aforementioned period, with an estimated value of US$14 million were not exported.
In addition, the company has to involve non-governmental and charitable organizations to establish a framework through which local communities can be addressed. By providing funds for creating awareness of how it operates, Aracruz can reduce the spread of negative perception of its activities among people. Actually, the movement has been motivating the people to engage in the dispute. Despite Aracruz not intending to return to charity, using the church and other charitable organizations for philanthropic causes may alleviate the disputes. Aracruz can contribute and participate in charitable events but not claim ownership of them. Furthermore, the firm should establish a long-term relationship with the local community. To achieve rapport with the public, the company could develop initiatives that would improve the quality of life of the people.
Often, land disputes between organizations and local communities are sensitive and require care to ensure that the business of the organization is not affected. In the described case, Aracru’s operations in India may be negatively impacted and the company should use the best ways to ensure a permanent solution. In light of this, involving governmental agencies, non-governmental organizations, as well as charitable organizations can endear the company to the local community. Ultimately, though the company may employ a judicial process to address the land conflict with the Indians if the given methods fail.