A product of the TELACU Model, TELACU La-Esperanza is an affordable housing complex for the senior population. (photo from TELACU website)
What is TELACU's current strategy?
Since the 1980s, TELACU has retreated from heavy political involvement and instead focused its efforts on economic development. This change largely resulted from the 1982 scandal, where TELACU was accused of “political corruption, conspicuous consumption, illegal activity, and poor community service” (Chávez, 199). Due to this incident, TELACU limits its political activism by deemphasizing voter registration campaigns and political fundraising events. Although the organization continues to maintain strong connections with local and national politicians, it ultimately embraces an economic self-determination approach under Lizarraga’s leadership today.
How does the organization promote economic growth?
The TELACU Model
"There is no more viable business venture than one that is economically sound, enhances the community, and positively impacts people's lives." -TELACU
To promote economic development, TELACU utilizes for-profit subsidiaries for its business strategy. This strategy, known as the TELACU model, allows businesses to provide new opportunities and services for the East Los Angeles community. By intertwining business and social philosophies, TELACU illustrates the connection between profitability and social impact. This “double bottom lining” ultimately aligns with TELACU’s end goal and vision: a rebuilt East Los Angeles with greater economic opportunities for community residents.
TELACU Model Reforms:
- Creation of new jobs
- Expansion of local businesses
- Construction of quality affordable housing
- Promotion of K-12 and veteran educational opportunities
- Establishment of financial institutions for redlined customers
Through these reforms, TELACU not only stimulates financial growth within the organization but towards the East LA community as well. Such realization ultimately reflects TELACU’s overall mission: to serve, empower, advance, and promote self-sufficiency in East Los Angeles.
