Ivey Publishing

Creating a Sustainable Organization: Approaches for Enhancing Corporate Value Through Sustainability

Soyka, P.A.,1/e (United States, Prentice Hall/Financial Times, 2012)
Prepared By Dilek Gergin, PhD Student
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Introduction

FORD MOTOR COMPANY: NEW SHADES OF GREEN THROUGH SOY FOAM
Garima Sharma, Chris Laszlo, Indrajeet Ghatge

Product Number: 9B13M109
Publication Date: 11/5/2013
Revision Date: 11/1/2013
Length: 8 pages

Ford Motor Co. develops and commercializes a green technology that replaces a traditional and scarce resource with an abundant bio-material. The pilot project becomes hugely successful, and, within the company, the idea of expanding the use of bio-material gains considerable momentum, but implementation and customer acceptance prove to be a challenge. Two members from the company’s research and engineering division work together to overcome these obstacles and move the company toward a vision of sustainability that involves more than just fuel economy and cost reduction.

Teaching Note: 8B13M109 (10 pages)
Industry: Transportation and Warehousing
Issues: Sustainability; innovation; automobiles; materials; United States
Difficulty: 5 - MBA/Postgraduate



NOVO NORDISK: MANAGING SUSTAINABILITY AT HOME AND ABROAD
Jette Steen Knudsen, Dana Brown

Product Number: 9B12M081
Publication Date: 9/7/2012
Revision Date: 2/14/2013
Length: 17 pages

AWARD WINNING CASE - Corporate Social Responsibility Award, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. This case study deals with the opportunities and challenges faced by Danish pharmaceutical company Novo Nordisk with regard to its sustainability approach in China as of 2012. Novo Nordisk is well known for striving to integrate its business activities in a financially, environmentally, and socially responsible way, and many Novo Nordisk employees proudly refer to Novo Nordisk as a “triple bottom line (TBL) company.” Novo Nordisk has been active in China for more than 50 years; however, since the Chinese economy has expanded tremendously, this increase in wealth and a more sedentary Western lifestyle have led to growing problems with obesity. As a result, China’s insulin market is booming.

Novo Nordisk therefore faces new challenges concerning how best to organize its TBL program in a way that ensures a comprehensive approach throughout the organization, yet allows Novo Nordisk China to adopt initiatives that fit the Chinese business context. Furthermore, with ever-increasing competition for access to China’s lucrative insulin market, Novo Nordisk’s competitors are also engaging in sustainability, which means that Novo Nordisk must keep innovating to stand out, and must use sustainability as a source of competitive advantage.


Teaching Note: 8B12M081 (8 pages)
Industry: Health Care Services
Issues: Corporate Social Responsibility; Non-market Strategy; China; Europe
Difficulty: 5 - MBA/Postgraduate



VEJA: SNEAKERS WITH A CONSCIENCE
Oana Branzei, Kim Poldner

Product Number: 9B10M089
Publication Date: 11/26/2010
Length: 16 pages

AWARD WINNING CASE - Latin American Business Cases Award, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. This case illustrates the founding and growth of Veja, the first eco-sneaker company in the world, in the broader context of the evolution of the fashion industry and the emergence of the eco-fashion movement. By September 2010, the five-year old venture had become a reference in ethical fashion, and an inspiration for other eco-fashion start-ups. Its path, its successes and its aspirations made it a perfect acquisition target; like-minded companies like Timberland were already feeling out the two founders.

Sebastien Kopp and Francois-Ghislain Morillion were still fulfilling their dream. They had fun trying to craft ever more sustainable business approaches. They were still excited about the opportunity to develop solutions or workarounds for socially- and environmentally-problematic business practices. The case presents several solutions, focusing on the development of sustainable business practices in organic cotton, wild natural rubber and traditional veggie-tanned leather. The case also deals with the issue of how ventures integrate sustainable practices into a holistic and ever improving offering, which engages multiple supply chain participants (employees, consumers, suppliers, partners, even artists) in co-devising a value proposition that appeals not just to our sense of fashion, but also to our conscience. Essentially, the case is a story of fashioning identities by artfully bending consumers' appreciation towards the expression of unity with the earth and across cultures.


Teaching Note: 8B10M89 (15 pages)
Industry: Manufacturing, Social Advocacy Organizations
Issues: Corporate Responsibility; Ethical Issues; Strategy Implementation; Emerging Markets; Leadership; Strategy Development
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Background and Context

GOJO INDUSTRIES: AIMING FOR GLOBAL SUSTAINABILITY LEADERSHIP
Chris Laszlo, Anya Briggs, Jayesh Potdar

Product Number: 9B13M108
Publication Date: 10/21/2013
Revision Date: 10/18/2013
Length: 11 pages

GOJO Industries, a U.S.-based hand hygiene company, plans to use sustainability as a business strategy in its big hairy audacious goal of reaching one billion people every day by 2020. It has developed a six level framework to embed sustainability throughout every aspect of the company internally and to assess its successes in the following areas: mitigating risk; reducing energy, waste and materials; differentiation; entering new markets; protecting and enhancing brand; and influencing industry standards. The company has a long history of using sustainability to drive innovation and facilitate expansion into new markets and sees sustainability as a key differentiator from its competitors to achieve its goal. In order to so, the company must also consider the importance of employee engagement in order to further embed sustainability and increase the number of people it reaches with its products.

Teaching Note: 8B13M108 (6 pages)
Industry: Health Care Services
Issues: Growth strategy; competitive advantage; flourishing; social sustainability; United States
Difficulty: 4 - Undergraduate/MBA



ITC LIMITED'S DAIRY DEVELOPMENT INITIATIVE: CORPORATE SOCIAL RESPONSIBILITY OR SHARED VALUE?
Vidhi Chaudhri, Asha Kaul

Product Number: 9B13M059
Publication Date: 6/20/2013
Revision Date: 6/19/2013
Length: 13 pages

In June 2012, ITC Limited, an Indian conglomerate recognized globally for its sustainability initiatives, was deliberating on how to apply its model of inclusive growth to a new initiative in dairy farming. Known for its expertise in creating innovative business models, ITC had created shared value for societies, businesses and shareholders by leveraging synergies across businesses. However, the expertise required in dairy farming was unexplored, logistical issues loomed large and a lack of clarity surrounded the dairy development’s integration with existing ITC businesses. Because of the complexities involved in diversifying and expanding to a new sector, ITC’s chairman and his leadership team wondered whether they could once again create shared value.

Teaching Note: 8B13M059 (10 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Corporate social responsibility; shared value; sustainability; diversity; India
Difficulty: 5 - MBA/Postgraduate



FIJI WATER AND CORPORATE SOCIAL RESPONSIBILITY - GREEN MAKEOVER OR GREENWASHING?
James McMaster, Jan Nowak

Product Number: 9B09A008
Publication Date: 5/13/2009
Revision Date: 5/10/2017
Length: 21 pages

This case analysis traces the establishment and subsequent operation of FIJI Water LLC and its bottling subsidiary, Natural Waters of Viti Limited, the first company in Fiji extracting, bottling and marketing, both domestically and internationally, artesian water coming from a virgin ecosystem found on Fiji's main island of Viti Levu. The case reviews the growth and market expansion of this highly successful company with the brand name FIJI Natural Artesian Water (FIJI Water). The company has grown rapidly over the past decade and a half, and now exports bottled water into many countries in the world from its production plant located in the Fiji Islands. In 2008, FIJI Water was the leading imported bottled water brand in the United States. In the context of great marketing success of the FIJI brand, particularly in the U.S. market, the case focuses on how the company has responded to a number of corporate social responsibility (CSR) issues, including measuring and reducing its carbon footprint, responsibilities to key stakeholders, and concerns of the Fiji government with regard to taxation and transfer pricing issues. The case provides a compelling illustration of how CSR challenges may jeopardize the sustainability of a clever marketing strategy.

Teaching Note: 8B09A08 (11 pages)
Industry: Manufacturing
Issues: Environment; Corporate Responsibility; Marketing Communication; Transfer Pricing; International Marketing; Greenwashing; Green Marketing; Brand Positioning
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Environmental, Social and Governance Issues and How They Affect the Business Enterprise

MSPL LIMITED: CSR AND SUSTAINABILITY IN MINING
Amit Gupta, Amita Joseph

Product Number: 9B12C023
Publication Date: 5/22/2012
Revision Date: 5/15/2012
Length: 19 pages

MSPL Limited was an iron ore mining and processing company in India. Owned by the Baldota Group, it also had interests in shipping, pelleting, and wind energy. In January 2012, MSPL’s businesses and operations were headed by Narendrakumar A. Baldota and his two sons. MSPL’s main source of revenue, the Vyasankere Iron Ore Mine (VIOM), was one of the largest iron ore mines in the private sector in India. MSPL had been progressive and proactive in its approach to sustainability and corporate social responsibility (CSR). Many of its initiatives predated government legislation related to environmental, employee, and community issues. MSPL’s policies towards environmental issues and local communities had been driven by the beliefs and vision of its founder and chairman, Baldota’s father. Baldota expanded MSPL’s initiatives related to the environment, employees, and communities. The case deals with the choices and decisions that Baldota had made regarding the numerous CSR and sustainability initiatives undertaken by the organization. Were there other initiatives that MSPL should have undertaken? Was it even necessary for the company to carry out CSR activities in the local communities?

Teaching Note: 8B12C023 (16 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Corporate Social Responsibility; Sustainability; Stakeholders; Mining; Natural Resources; India
Difficulty: 4 - Undergraduate/MBA



ABB’S HYDROPOWER SUSTAINABILITY DILEMMA
Timo Busch, Vincent Dessain, Kathleen McCarthy

Product Number: 9B11M096
Publication Date: 11/30/2011
Length: 21 pages

This case is about the multinational company ABB’s development of a sustainability strategy, and its dilemmas in supplying hydropower dam projects. Adam Roscoe, head of sustainability at ABB Group, had to evaluate the content and business consequences of a letter written by the non-governmental organization (NGO) International Rivers. The letter discussed the alleged violations of sustainability criteria when building the Nam Theun 2 dam in Laos. Roscoe needed to assess what implications the letter had for ABB, which had a large stake in the outcomes of the project. Such a letter from a prominent NGO might affect ABB’s policies and practices in sustainability.

The World Bank and the Asian Development Bank had great interest in seeing the project’s success, as it would supply rural areas of Laos and Thailand with electricity, bring in a large source of revenue that would be used in poverty-reduction programs for Laos and, lastly, provide a non-carbon-based energy source. ABB also had to consider the position of its stakeholders including customers, investors, media, and NGOs. If ABB was associated with a dam project that did not comply with international regulations, this could lead to negative publicity and potential loss of business.

Roscoe thus faced two interweaved questions: Would International Rivers’ letter pose a reputation risk for ABB? What would this example mean for ABB’s sustainability criteria and objectives and would this need to be acknowledged and, if so, how?


Teaching Note: 8B11M096 (10 pages)
Industry: Manufacturing
Issues: Stakeholder Analysis; Sustainability; Risk Analysis; Green Energy; Hydro; Switzerland; Thailand; Laos
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Stakeholder Interests and Influences and the Social License to Operate

NEWMONT MINING CORP. AND A MERCURY SPILL IN PERU (A)
Jaana Woiceshyn, Allan Ingelson

Product Number: 9B13M002
Publication Date: 3/22/2013
Revision Date: 3/22/2013
Length: 12 pages

The CEO of Newmont Mining Corporation (Newmont) had learned that a subcontractor’s truck en route to Lima from Yanacocha, a gold mine operated by Newmont, spilled mercury along the highway and in small villages. Local residents had picked up some mercury with their bare hands and taken it to their homes. The CEO was trying to determine the best way to handle the situation. This A case describes the mine developer’s history, the operations at Newmont’s most profitable gold mine, the significance of foreign investment to Peru’s economy, the environmental impact of gold mining and the local and anti-mining movements' responses to mine operations. In the B case, Newmont Mining Corp. and a Mercury Spill in Peru (B) 9B13M003, the new CEO is trying to decide what else Newmont is morally required to implement before continuing to operate Yanacocha, and Newmont’s other mines, successfully.

Teaching Note: 8B13M002 (9 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Moral responsibility; legal liability; moral decision principles; Peru
Difficulty: 4 - Undergraduate/MBA



NEWMONT MINING CORP. AND A MERCURY SPILL IN PERU (B)
Jaana Woiceshyn, Allan Ingelson

Product Number: 9B13M003
Publication Date: 3/22/2013
Revision Date: 3/22/2013
Length: 5 pages

This B case is a supplement to Newmont Mining Corp. and a Mercury Spill in Peru (A) 9B13M002. Since the spill, Newmont spent more than US$100 million on compensation and improvements to the mine to reduce its environmental impact and prevent further spills.

An internal audit concluded environmental standards at the mine were seriously lacking. In-house counsel warned other executives about the possibility of criminal liability.

Despite improvements at the mine, a large local protest prevented Newmont from expanding its operations in the area. Lack of trust by the locals contributed to the protest. The new CEO is trying to decide what else Newmont is morally required to implement before continuing to operate Yanacocha, and Newmont’s other mines, successfully.


Teaching Note: 8B13M002 (9 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Moral responsibility; legal liability; moral decision principles; Peru
Difficulty: 4 - Undergraduate/MBA



BARRICK GOLD CORPORATION - TANZANIA
Aloysius Newenham-Kahindi, Paul W. Beamish

Product Number: 9B10M020
Publication Date: 10/20/2010
Revision Date: 11/19/2014
Length: 15 pages

This case examines the giant Canadian mining corporation, Barrick Gold Corporation (Barrick), (called Africa Barrick Gold plc since 2009), and the way it engages in sustainable community developments that surround its mining activities in Tanzania. Following recent organized tensions and heightened criticism from local communities, media, international social lobbyists and local not-for-profit organizations (NFOs), Barrick has attempted to deal with the local communities in a responsible manner. At issue for senior management was whether there was much more that it could reasonably do to resolve the tensions.

The case considers: how MNEs seek social license and local legitimacy; the relevance of hybrid institutional infrastructures; the evolving global roles for MNEs and their subsidiaries. The case is appropriate for use in courses in international management, global corporations and society, and international development and sustainable value creation.


Teaching Note: 8B10M20 (17 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Subsidiaries; Business and Society; Corporate Social Responsibility; Cross Sector Social Partnership; Government Relations
Difficulty: 5 - MBA/Postgraduate



ETHICS OF OFFSHORING: NOVO NORDISK AND CLINICAL TRIALS IN EMERGING ECONOMIES
Klaus Meyer

Product Number: 9B09M001
Publication Date: 1/9/2009
Revision Date: 5/3/2017
Length: 13 pages

The case outlines the conflicting ethical demands on a Danish pharmaceuticals company, Novo Nordisk, that is operating globally and is aspiring to high standards of corporate social responsibility. A recent report alleges that multinational pharmaceutical companies routinely conduct trials in developing countries under alleged unethical conditions. The company's director reflects on how to respond to a request from a journalist for an interview. This triggers a discussion on the appropriate ethical principles and how to communicate them. As a company emphasizing corporate responsibility, the interaction with the media presents both opportunities and risks to Novo Nordisk. The case focuses on clinical trials that are required to attain regulatory approval in, for example, Europe and North America, and that are conducted at multiple sites around the world, including many emerging economies. Novo Nordisk has implemented numerous procedures to protect its various stakeholders, yet will this satisfy journalists and non-governmental organizations, and how should the company communicate with these stakeholders?

Teaching Note: 8B09M01 (11 pages)
Industry: Manufacturing
Issues: Location Strategy; Ethical Issues; Emerging Markets; Research and Development
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Managing Environmental, Social and Governance Issues Within the Organization

CLARKE: TRANSFORMATION FOR ENVIRONMENTAL SUSTAINABILITY
Chris Laszlo, Katey McCabe, Eric Ahearn, Indrajeet Ghatge

Product Number: 9B12C012
Publication Date: 3/19/2012
Revision Date: 2/7/2014
Length: 17 pages

Clarke, a mosquito abatement company seen as having a core business that is environmentally harmful by its very nature — selling pesticides — faces unique challenges in its transformation into a sustainable enterprise. Should it shift its focus entirely towards offering “green” pesticides and risk losing some of its customers, or should it keep offering its less expensive, more toxic products? This case shows how even when innovation leads to new green products, processes, technologies, and business models, the leadership of a company must cope with the daunting task of engaging employees and customers in the idea that green can be effective and profitable.

Teaching Note: 8B12C012 (7 pages)
Industry: Manufacturing
Issues: Environmental Sustainability; Environmental Performance; Pesticides; United States
Difficulty: 4 - Undergraduate/MBA



TATA POWER: CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY
Trupti Karkhanis, Atanu Adhikari

Product Number: 9B10M013
Publication Date: 5/5/2010
Length: 18 pages

HIGHLY COMMENDED CASE - Indian Management Issues and Opportunities Runner-up, 2012 European Foundation for Management Development (EFMD) Case Writing Competition. The case describes the strategic dilemma involved in making a decision on the method of operation of the corporate social responsibility (CSR) department for one of the leading Indian multinational corporations, Tata Power Company (TPC) from Tata Group of Companies. TPC had undertaken the CSR activities for decades, reflecting the company's commitment towards sustainable energy generation without undue compromise to human and environmental development. These activities were undertaken as a voluntary initiative by the employees of TPC, and there was no separate CSR department. However, with large scale expansion, the need to have CSR as a separate entity was felt. The dilemma for the decision manager was whether to create a separate CSR department or continue with the existing set up. Other related issues needed to be addressed strategically as well as tactically to maintain a balance between shareholders' interest and other stakeholders.

Teaching Note: 8B10M13 (13 pages)
Industry: Utilities
Issues: Sustainability; Opportunity Recognition; Corporate Social Responsibility; Stakeholders; Strategy
Difficulty: 5 - MBA/Postgraduate


Chapter 6:
Investors and the Power of Markets

CHIPOTLE: MEXICAN GRILL, INC.: FOOD WITH INTEGRITY
Ram Subramanian

Product Number: 9B13M068
Publication Date: 6/11/2013
Revision Date: 5/4/2016
Length: 14 pages

AWARD WINNING CASE - This case won the 2013 Oikos Sustainability Case Writing Competition. Chipotle Mexican Grill, Inc. competes in the fast casual segment of the restaurant industry. Its founder and current co-CEO has always emphasized not only good tasting food but also a commitment to sustainability through the mission statement: “Food with Integrity.” The company has positioned itself as a differentiator, using both food quality and a commitment to sustainability as factors that isolate it from its competitors. However, in 2012, the company faces a number of challenges from increased competition and rising food costs. As a result, a hedge fund investor has recently called for shorting the company’s stock. The co-CEOs must decide on the best course to confront these challenges as the company’s stock price is in a free fall.

Teaching Note: 8B13M068 (9 pages)
Industry: Accommodation & Food Services
Issues: Sustainability; Differentiation; Positioning; United States
Difficulty: 4 - Undergraduate/MBA



PERKINELMER: OLD INSTRUMENT REUSE AND RECYCLING
Vesela Veleva, Anna Montanari, Peter Clabby, Jonathan Lese

Product Number: 9B12M115
Publication Date: 1/22/2013
Revision Date: 1/10/2013
Length: 14 pages

This case examines the business options for implementing a company-wide product take-back program. It focuses on PerkinElmer, a $1.9 billion global technology company developing diagnostics and biomedical products for the environmental and human health sectors. The company, which operates in more than 150 countries, is committed to community engagement, sustainable and ethical business practices and eco-innovative products, including a commitment to continuously reducing the environmental and health impacts of its products throughout their useful lives. As of 2012, PerkinElmer was required to comply with two European Union regulations restricting hazardous substances and monitoring the disposal of electronic waste, but there were no similar broad-based federal U.S. regulations at that time. One of the European Union directives required the company to practise end-of-life management, that is, to take back and responsibly manage its products at the end of their useful lives. PerkinElmer used a study group at Boston College to examine the different options for handling old products and to discover if there was a profitable or at least profit neutral business model for doing so, in light of what its competitors were doing in this area. If the benefits outweigh the risks, how should the company roll out a corporate-wide product take-back strategy?

Teaching Note: 8B12M115 (6 pages)
Industry: Health Care Services
Issues: Sustainability; biotechnology; environmental strategy; product stewardship; United States
Difficulty: 4 - Undergraduate/MBA



CANADIAN SOLAR
Paul W. Beamish, Jordan Mitchell

Product Number: 9B10M019
Publication Date: 4/5/2010
Revision Date: 11/19/2014
Length: 18 pages

In late September 2009, the CEO of the Nasdaq-traded solar cell and module manufacturer, Canadian Solar, was at an inflection point in the formation of its international strategy. The company had experienced dynamic growth during the past five years buoyed largely by aggressive incentive schemes to install solar photovoltaic (PV) technology in Germany and Spain. The credit crunch, coupled with changes in government incentive programs, caused a major decline in the demand for solar PV technology and analysts were predicting that full year 2009 sales would decline. Furthermore, competition in the industry was fierce with diverse players ranging from Japanese electronic giants to low-cost Chinese producers. Canadian Solar had decided to focus on 10 major markets in the next two to three years where strong renewable policies existed. Students are challenged with deciding if any changes to the company's global strategy are necessary.

Teaching Note: 8B10M19 (11 pages)
Industry: Manufacturing
Issues: China; International Business; Growth Strategy; Global Product; Internationalization
Difficulty: 4 - Undergraduate/MBA



RBC - FINANCING OIL SANDS (A)
Michael Sider, Jana Seijts, Ramasastry Chandrasekhar

Product Number: 9B10M015
Publication Date: 1/27/2010
Revision Date: 4/27/2010
Length: 16 pages

Under pressure from the Rainforest Action Network to make their lending policies more sustainable, executives at the Royal Bank of Canada who deal with issues of corporate citizenship and sustainability must decide whether to continue financing companies involved in extracting oil from the tar sands of Alberta, Canada. The case asks students to consider the following questions: 1) Should banks lend to any business or industry the government deems to be sustainable? 2) What are the risks of lending to businesses some stakeholders deem unsustainable? 3) How should banks respond when pressured by an interest group? 4) How does a bank decide what is sustainable lending practice? The supplement B case RBC-Financing Oil Sands (B), product number 9B10M016, is also available.

Teaching Note: 8B10M15 (7 pages)
Industry: Finance and Insurance
Issues: Sustainable Development; Environment
Difficulty: 5 - MBA/Postgraduate


Chapter 7:
The Financial Impact of Effective (or Ineffective) Environmental, Social and Governance/Sustainability Management

BRITANNIA INDUSTRIES LTD.
Robert Klassen, Ramasastry Chandrasekhar

Product Number: 9B13M010
Publication Date: 1/28/2013
Revision Date: 2/27/2013
Length: 15 pages

The CEO of Britannia Industries Ltd, a manufacturer of bakery products, was at a crossroads. Two years earlier, the firm had started providing specially fortified biscuits to small groups of school-going children in selected locations in India. The product offered a step toward addressing the widespread national problem of malnutrition and, unlike corporate philanthropy, this initiative was an extension of what the company was fundamentally good at – making biscuits. After early signs of success, Britannia’s CEO faced two challenges. How should Britannia scale up the manufacture and distribution of social products? And, how should the firm develop the social products into a sustainable business?

Teaching Note: 8B13M010 (10 pages)
Industry: Manufacturing
Issues: Sustainable Development; Corporate Social Responsibility; Capacity Expansion; Stakeholder Management; Brand Management; Non-government Organization Partnerships; India
Difficulty: 4 - Undergraduate/MBA



IPODERAC: FINDING THE PATH TOWARDS SUSTAINABILITY
Francisco Alberto Layrisse Villamizar, Gerardo Fernández Lozano

Product Number: 9B12M066
Publication Date: 7/24/2012
Revision Date: 8/16/2012
Length: 14 pages

Since 1966, the Rehabilitation Institute of Puebla Civil Association (IPODERAC) had dedicated itself to providing a home and education for children who had been abandoned in the streets of Mexico. Using an educational model based on the concept of personal development through honourable work, IPODERAC had successfully combined its desire to be financially self-sufficient with its goal of teaching educational values, responsibility, and discipline to the children in its care, thus enabling them to develop a sense of belonging and some useful life skills.

This case explores the inception and long evolution of IPODERAC’s educational model, as well as the organization’s constant search for production projects that would enable it to generate income. After meeting this goal, IPODERAC also faced the ongoing challenge of maintaining its business units without deviating from its institutional mission. By April 2009, IPODERAC had all but obtained self-sufficiency; however, given the national financial crisis and the emergence of the swine flu epidemic, IPODERAC’s main source of income (the sale of gourmet cheeses) had suddenly diminished. This crisis affected the stability of the institution, and new proposals for diversification were needed to strengthen IPODERAC’s financial sustainability and avoid similar pitfalls in the future.


Teaching Note: 8B12M066 (16 pages)8B12MS66 (16 pages)
Industry: Social Advocacy Organizations
Issues: Portfolio Management; Diversification; Social Entrepreneurship; Decision Making; Strategic Planning; Mexico
Difficulty: 4 - Undergraduate/MBA



TAINO CONSTRUCTION SUPPLIES: MANAGING INNOVATION RISKS AT AN SME IN A SMALL, DEVELOPING NATION
Carmen Rios Figueroa, Julia Sagebien

Product Number: 9B09M085
Publication Date: 10/13/2010
Length: 16 pages

The president of Taino Construction has to make several strategic decisions that can guide the firm during very difficult times for the construction industry - globally and locally. He is trying to find ways to capitalize on the company's innovations and international advantages. At the same time, he is trying to adapt the company to the needs of the local market, which requires smaller volumes and simpler products. In order to do this, management must assess the level of risk inherent in the company's portfolio of innovations by estimating the potential of the markets for these products, determining how to strategically position the products in the markets and making a sober assessment of the company's financial strength.

The case can be used in a marketing strategy course. The objectives of the case are 1) to allow students an opportunity to analyze a company's innovation portfolio and, more specifically, the level of risk inherent in market opportunities 2) to explore how innovative international strategies can help a company survive adverse local market conditions, though it may add to the overall risk of the innovation portfolio of the company 3) to showcase a company committed to green products, allowing for a discussion on sustainability in the construction industry, as well as on how what is considered a green product by some stakeholders is not considered a green product by others 4) to showcase the complexity of the relationship between a company's clients/competitors/partners and the way in which government initiative can offer opportunities and challenges to a company 5) to offer an opportunity to conduct financial performance analysis.


Teaching Note: 8B09M85 (13 pages)
Industry: Construction
Issues: Managing Industry Change; Innovation; Family Business; Green Products
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Defining, Measuring, and Reporting Environmental, Social and Governance Performance

CAFE XARAGUA
Mary Gillett, Robert Lehnert

Product Number: 9B12B015
Publication Date: 8/8/2012
Revision Date: 9/8/2015
Length: 8 pages

While on a visit to Haiti, a student entrepreneur realized the potential for economic development in a country that was rich in certain resources and virtually unexplored by the private sector. The entrepreneur decided on coffee as a business opportunity and he and his three partners imported their first burlap sack. By November 2011 the product was for sale - a premium coffee from Southeastern Haiti with a brand focused on assisting the redevelopment and sustainability of the Haitian coffee industry. After the product met success, the entrepreneur and his partners were ready to make an additional investment. They believed that a café focused on their own brand of Haitian coffee would be a great way to generate sales and further develop their product offering before pursuing a grocery-store strategy. However, they also knew that such an investment would be risky.

Teaching Note: 8B12B015 (5 pages)
Industry: Accommodation & Food Services
Issues: Contribution Analysis; New Venture; Branding; Sustainable Development; Canada; Haiti
Difficulty: 4 - Undergraduate/MBA



HOST EUROPE: ADVANCING CSR AND SUSTAINABILITY IN A MEDIUM-SIZED IT COMPANY
Rüdiger Hahn

Product Number: 9B10M042
Publication Date: 6/10/2010
Length: 17 pages

The case deals with issues of corporate social responsibility (CSR) and sustainability in the specific setting of a medium-sized enterprise (Host Europe) in the IT industry. Host Europe is the third largest webhosting company in German-speaking Europe. In recent years, the company has put substantial efforts into living up to its CSR and improving sustainability. The case presents the IT sector in Europe and Germany and highlights several industry-related issues such as green IT (especially in terms of greenhouse gas emissions and e-waste) and the digital divide. Host Europe has already implemented a couple of measures, such as building a new energy-efficient green data centre, switching to renewable energy, promoting virtualization, introducing several workplace measures, pursuing efforts to improve family friendliness, and publishing a sustainability report. However, there are still some challenges ahead and students are asked to think about further efforts of Host Europe to complete its path to becoming a responsible and sustainable medium-sized IT company.The case can either be used as an introductory case for CSR in medium-sized businesses and sustainability in the IT industry, or in advanced-level CSR and sustainability courses. As an introductory case it provides in-depth insights into a company that has already put substantial efforts into becoming a responsible and sustainable IT company. Students learn about various sustainability and CSR issues and measures in the specific context of a medium-sized enterprise. As an advanced case for CSR and sustainability, it can be used to build upon the existing knowledge of students and to ask them to come up with other ideas and a sophisticated strategy to pursue further CSR and sustainability. For example, since Host Europe is not certified according to environmental or social standards yet, students could come up with a detailed and customized plan on how to implement such a management system for the company.

Teaching Note: 8B10M42 (8 pages)
Industry: Administrative, Support, Waste Management and Remediation Services, Information, Media & Telecommunications
Issues: Communications; Sustainable Development; Information Technology; Computer Industry; Corporate Social Responsibility; Green IT; Organizational Change
Difficulty: 4 - Undergraduate/MBA



SCANDINAVIAN AIRLINES: THE GREEN ENGINE DECISION
Jennifer Lynes

Product Number: 9B09M028
Publication Date: 6/11/2009
Length: 11 pages

Scandinavian Airlines (SAS) is an innovator of strategic environmental management in the airline industry. Being a first-mover can have both its advantages and disadvantages. This case looks at the airline's decision of whether they should invest in the best available environmental technology for a fleet of new aircraft that would serve them for the next 25 years. While the technology for these low-emission engines had been around since the 1970s, it had never really been commercialized. SAS was feeling pressure from the regulatory authorities with regards to potential new charges and taxes that could affect the future operating costs of the fleet. Despite these anticipated future costs, at the time of the decision, the director of aircraft and engine analysis for SAS could not make an economic case for the more expensive engines. The challenge was for the fleet development team to try to convince the SAS management team to spend the extra kr5 million (Swedish Kronor) per aircraft for the dual combustor engine. Given that corporations are faced with increasing pressure with regards to greenhouse gas emissions and climate change, this case study presents an opportunity for discussion and analysis of various environmental concepts including strategic environmental management, adoption of best available environmental technologies, the role of internal environmental leadership in a large corporation and the effect of market-based mechanisms to improve a sector's environmental performance. The case illustrates the complexities of environmental decisions in striking a balance between meeting ambitious commitments and dealing with real capabilities of companies and external pressures.

Teaching Note: 8B09M28 (14 pages)
Issues: Corporate Culture; Management Decisions; Competitive Advantage; Environment
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Making it Happen in Your Organization

STRATAFIN INC.: AUDITING CHANGE
Verity Hawarden, Margaret Sutherland, Mandla Adonisi

Product Number: 9B12C006
Publication Date: 3/13/2012
Revision Date: 5/8/2012
Length: 15 pages

This case focuses on organizational transformation in an accounting firm in South Africa. It describes how the impact of both globalization and the transformation that the country had undergone since the advent of democracy in 1994 steered StratAFin Inc. towards a process of building a new identity. The firm’s senior management realized the need for transformation based on the many new challenges in the changing environment. Change was experienced at many levels within the organization: from the construction of a new building as a symbol of change, to corporatizing and growing the firm, changing the management structure, investing heavily in technology and human capital development, focusing on continuous improvement, and driving major diversity transformation. The case offers insights into the many drivers that had to be considered in the process, how the organization had to manage resistance to change and the need for flexibility during the process, and the importance of measurement of the many dimensions of the transformation process. The case concludes with the challenge of how the firm’s leadership could ensure that the continuing transformation maintained its momentum.

Teaching Note: 8B12C006 (9 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Change Management; Organizational Design; Transformation; Organizational Behaviour; Accounting; Diversity; South Africa; GIBS
Difficulty: 5 - MBA/Postgraduate



2B DESIGN: A CREATIVE SOCIAL BUSINESS IN LEBANON
Dima Jamali, Alexandra Tarazi

Product Number: 9B11M097
Publication Date: 10/26/2011
Revision Date: 11/21/2016
Length: 9 pages

The year 2006 marked the beginning of 2b Design, a social business in Lebanon that specialized in creating handmade furniture and decorative pieces. Raja Moubarak and his wife, Benedicte de Blavous, created their business venture around a focused social mission to preserve disappearing art, architecture, and heritage through artistic creations and employing marginalized people, particularly the handicapped and unemployable. By collecting and using wrought-iron and wooden pieces found in scrap yards from old Lebanese homes dating back to the Ottoman Empire, 2b Design managed to preserve a heritage that was increasingly at risk of extinction while both improving lives and maximizing positive environmental impacts through recycling scrap material. 2b Design’s mission was articulated as to “restore the unseen beauty of the broken.” “The broken” referred to the Middle East’s disappearing traditional heritage and to those people whose socioeconomic status or disabilities hindered them from leading a good life. 2b Design’s vision was to replicate the same concept in different countries beyond Lebanon. The founders were keen on exploring various channels that would gradually improve the impact of their business while meeting the dual challenge of long-term sustainability and the transformation of lives.

Teaching Note: 8B11M097 (8 pages)
Industry: Retail Trade
Issues: Social Entrepreneurship; Sustainability; Furniture Business; Middle East; Lebanon
Difficulty: 4 - Undergraduate/MBA