Ivey Publishing

Understanding Social Enterprise: Theory and Practice

Ridly-Duff, R., Bull, M.,2/e (United Kingdom, Sage, 2015)
Prepared By Jungsoo Ahn, PhD Candidate
Chapter and Title Chapter Matches: Case Information
Chapter 1:
The Social Economy and Big Society

LUMNI INC.: IMPROVING SOCIETY IN A SUSTAINABLE WAY
Luis Felipe Martí Borbolla, José Alfredo Walls Gómez, June Cotte

Product Number: 9B18M011
Publication Date: 2/14/2018
Revision Date: 2/14/2018
Length: 11 pages

In June 2017, a journalist was preparing a major news story about Lumni Inc. (Lumni), a company that he wanted to profile in the next issue of his Mexico City–based magazine. Lumni's mission was essentially a social one: to improve the conditions, access, and quality of higher education for young students, especially in Latin America. However, although its mission was originally non-profit, Lumni was not considered a non-governmental organization since it worked with a financially sustainable model and did not depend on donations or government funding. As the journalist investigated this business model, he learned that some experts referred to it as a hybrid business model. Although he had been gathering research on Lumni for some months, he still was unsure whether his report should promote hybrid business models as viable alternatives to traditional business models.

Teaching Note: 8B18M011 (4 pages)
Industry: Educational Services
Issues: social enterprise, hybrid business, social innovation, business models, valuation
Difficulty: 4 - Undergraduate/MBA



MUNCHIEZ FOOD TRUCK: ENTREPRENEURSHIP, STRATEGIC DECISION MAKING, AND SUSTAINABILITY
Susan Losapio, Sophia Koustas

Product Number: 9B17M166
Publication Date: 11/7/2017
Revision Date: 11/7/2017
Length: 13 pages

The semester-long small business management class at Southern New Hampshire University had incorporated into the course a food truck under the brand name “Munchiez” as a catalyst for students to integrate and apply the concepts they learned about in various business classes. As such, Munchiez was a vital teaching tool at the school. However, with an 80 per cent turnover rate each semester, knowledge transfer and financial stability quickly became critical issues for the Munchiez team to assess. As of December 2016, Munchiez was operating at a deficit. Some team members suggested that Munchiez may need a general manager. In order to continue receiving financial support from the university, Munchiez’s management had to answer some difficult questions: How should Munchiez increase the transfer of knowledge from semester to semester? What strategies should be used in order to break even? Would the business benefit from a general manager? If so, how could the team find the right person for this position?

Teaching Note: 8B17M166 (7 pages)
Industry: Accommodation & Food Services
Issues: entrepreneurship, sustainablilty, decision making, organizational life cycle, food truck, start-up, university,
Difficulty: 4 - Undergraduate/MBA



DON’T CONFUSE SUSTAINABILITY WITH CSR
Pratima Bansal, Mark Desjardine

Product Number: 9B15TA01
Publication Date: 2/2/2015
Length: 3 pages

No challenge derails managers from the goal of sustainability more than trying to understand what it means for an organization to be sustainable. Some people think sustainability is all about environmental issues. Others see it in terms of the bottom line. Still others use the term synonymously with corporate social responsibility and shared value. This article explains why business sustainability is none of these things — rather, it is about time. Sustainability is about balancing resource usage and supplies over time and assuring intergenerational equity. There is no question that many CSR initiatives are effective at balancing competing demands made by shareholders and other stakeholders. To do this, however, many firms borrow resources and capital from the future, which can magnify the imbalance in the distribution of resources between the short and long term. Securing short-term success should never risk long-term survival. As this article states, business sustainability is the ability of firms to respond to their short-term needs without compromising their ability to meet future needs.

Issues: resource management; business sustainability; corporate social responsibility; IBJ Insights



Chapter 2:
Defining Social Entrepreneurship

FREE GEEK TORONTO: SHAPING A SOCIAL ENTERPRISE
Simon Parker, Ken Mark

Product Number: 9B17M124
Publication Date: 9/7/2017
Revision Date: 10/20/2017
Length: 9 pages

In late 2016, the executive director of Free Geek Toronto faced a challenge. Free Geek Toronto was a social enterprise based in Toronto, Ontario. It focused on recycling electronics waste and aimed to use its business profits to expand its scope of operations and deliver on its social mission of both reducing electronics waste going to landfill and employing at-risk and marginalized individuals. As a result, the executive director purposely hired individuals who had severe physical or mental disabilities, or both, and who had recently received, or were currently receiving, disability benefits, had poor health, or experienced general struggles with regular employment. The executive director’s challenges included juggling the financial and social goals of running a work integration social enterprise. In view of the constraints he faced, the executive director began considering whether to call on the assistance of volunteers—people who, despite their well-meaning intentions, might unwittingly disrupt the operation of the enterprise. Should he move forward with recruiting volunteers? If so, how could he ensure that doing so would not adversely affect the organization’s current culture or demoralize the current employees?

Teaching Note: 8B17M124 (5 pages)
Industry: Social Advocacy Organizations
Issues: social enterprise
Difficulty: 4 - Undergraduate/MBA



DIALOGUE IN THE DARK: SOCIAL ENTERPRISE IN CHINA
Ilan Alon, William Hua Wang, Jennifer Dugosh, Kylie Oberdorf

Product Number: 9B14M103
Publication Date: 8/5/2014
Revision Date: 7/30/2014
Length: 12 pages

The founder and CEO of Dialogue in the Dark (DID) had a very unique background with long-term professional experience. She developed a passion for working with the blind and, through this passion, she brought DID to China. DID was a social enterprise aiding the disabled through awareness. Social entrepreneurship was a fairly new concept that had only recently been introduced in China.

The CEO needed to figure out how to introduce this idea of social franchising to China and how to make it successful. Further, she faced the challenge of developing and executing a successful business plan for future growth and investment for DID. Marketing and revenue outlets were limited and needed to be expanded for future growth and success.


Teaching Note: 8B14M103 (8 pages)
Industry: Educational Services
Issues: social entrepreneurship; franchise management; international market entry; China
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
The Politics of Social Enterprise

FOR THE LOVE OF LAUNDRY: COMPARING ORGANIZATIONAL FORMS TO SCALE A SOCIAL ENTERPRISE
Kent Walker, Ian Stecher, Francine Schlosser, Megain O'Neil-Renaud

Product Number: 9B18M008
Publication Date: 1/19/2018
Revision Date: 1/19/2018
Length: 11 pages

The London, Ontario, social enterprise For the Love of Laundry was founded in 2014 with the intention of selling homemade, eco-friendly soaps and using the profits to fund free laundry events in the community. In 2017, the founder's goal was to increase the scale of the business and its social impact. She needed to decide how to structure the organization to increase its scale while maintaining control of its strategic direction.

The founder compared the pros and cons of the four organizational structures available for social enterprises in Canada—for-profit organization, non-profit organization, registered charity, and co-operative—to decide which option would best suit the organization. She wanted to ensure that the organization’s social aspect remained central while she sought funds to increase its scale. She needed to balance the triple bottom line, but with a primary focus on the social component. She also needed to consider the importance of corporate identity for social enterprises in the scaling process.


Teaching Note: 8B18M008 (9 pages)
Industry: Social Advocacy Organizations
Issues: social enterprise, organizational structure, triple bottom line, non profit, charity, co-operative
Difficulty: 4 - Undergraduate/MBA



WINGREENS FARMS: SUSTAINABLE GROWTH
Rajeev Kumra, Anjali Malik, Smitha Girija

Product Number: 9B17A068
Publication Date: 12/18/2017
Revision Date: 12/18/2017
Length: 11 pages

In 2016, the managing director of Wingreens Farms, a social enterprise based in India, was considering the company’s future. Wingreens Farms partnered with rural Indian farmers living in poverty to produce and sell homemade processed foods, including salsas, dipping sauces, hummus, garlic butter, breads, teas, organic fresh pickled sprouts, microgreens, and wheatgrass. This small company had a unique, sustainable, and profitable business model with a managed sales turnover worth R160 million (US$2.4 million) in 2016. However, the managing director wondered whether Wingreens Farms could eventually transition from a small, personalized, family-owned company to a large systems- and process-driven organization. Could the company retain its commitment to ethical values and its handmade, labour-intensive production methods if it began competing against factory-produced, cheaper products from large, organized companies?

Teaching Note: 8B17A068 (10 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: social enterprise
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Measuring Social Value

AMBUJA CEMENT: MEASURING THE VALUE OF WATER
Utkarsh Majmudar, Namrata Rana

Product Number: 9B17M129
Publication Date: 8/22/2017
Revision Date: 8/22/2017
Length: 14 pages

In 2016, Ambuja Cements Limited (Ambuja Cement) was one of the largest cement companies in India. Company operations required the use of water for cooling, dust suppression, and domestic needs, but the use of water stressed the water resources at some of the company’s locations. Ambuja Cement thus identified the availability of water as a risk area for the organization and made water conservation a key element of their sustainability agenda. By virtue of its sustainability initiatives, Ambuja Cement became one of the first cement companies in the world to be certified as water positive. The company wanted to account for both the social and economic value its water conservation efforts generated. However, valuing water was a complex task involving many considerations, such as water sources and uses, the social value of water, water scarcity, and exchange rates.

Teaching Note: 8B17M129 (13 pages)
Industry: Manufacturing
Issues: sustainability, valuation
Difficulty: 5 - MBA/Postgraduate



THE AWETHU PROJECT: VALUES-DRIVEN DECISIONS FOR PROFIT AND SOCIAL IMPACT
Charlene C. Lew

Product Number: 9B17C018
Publication Date: 4/28/2017
Revision Date: 4/28/2017
Length: 9 pages

The Awethu Project (Awethu) was a South African-based social enterprise that operated as a venture capital and investment firm for small, medium, and micro-sized enterprises. The company was widely acknowledged for its social mission of creating jobs and benefiting society while maximizing profit. In March 2016, Awethu’s leaders signed an agreement with a prominent South African corporation, which could allow Awethu to operate within a higher segment, bringing the company closer to fulfilling its strategy. But Awethu continued to wrestle with a number of challenges, such as its socioeconomic environment and strategic focus decisions, and the question of how to continually attract capital and deliver on the company’s vision. Finding themselves at an important moment in their company’s history, Awethu’s leaders considered how the new partnership could help Awethu address these looming challenges, while creating sustainable profit and value.

Teaching Note: 8B17C018 (12 pages)
Industry: Other Services
Issues: social entrepreneurship, social impact, leadership, youth development, talent development
Difficulty: 5 - MBA/Postgraduate


Chapter 5:
Income Streams and Capital Management

DALMIA BHARAT: SOCIAL RETURN ON INVESTMENT
Utkarsh Majmudar, Namrata Rana

Product Number: 9B17M165
Publication Date: 11/8/2017
Revision Date: 11/8/2017
Length: 11 pages

In 2016, Dalmia Bharat Cement Limited (Dalmia Cement) and its agency, the Dalmia Bharat Foundation, worked in the areas of sustainability and corporate social responsibility. It worked with communities in the neighbourhoods of its plants and with rural communities in many other areas, focusing on soil and water conservation. In 2016 there was a growing concern that its water harvesting structures and methods of soil protection and improvement were no longer good enough. A measure that valued water in financial terms was required to help justify the foundation’s targets and funding. The company tasked interns from a well-known management institute with searching for such a measure.

Teaching Note: 8B17M165 (13 pages)
Industry: Manufacturing
Issues: sustainability, measurement, social return on investment, corporate social responsibility, water valuation
Difficulty: 5 - MBA/Postgraduate



TRANSCEND COFFEE: LOCAL SUSTAINABILITY CHALLENGES IN A GLOBAL INDUSTRY
Joel Gehman, Nicole Neufeld, Dasha Smirnow, Siddharth Agrawal, Danielle Sandberg, Manav Deol

Product Number: 9B16M130
Publication Date: 7/20/2016
Revision Date: 7/20/2016
Length: 12 pages

In 2014, Transcend Coffee—an independent coffee shop and coffee bean roaster with several locations in Edmonton, Alberta—was selling premium coffee to a loyal base of customers. While it had taken several years to establish its presence in a marketplace that was filled with coffee retailers, Transcend Coffee's success was in part due to its direct trade supply chain strategy. By working closely with its coffee bean farmers, Transcend Coffee was able to assist in improving both the growing process of the beans and the quality of the coffee. When one of its farmers experienced a disastrous coffee bean season, the company was faced with several challenges that could have an impact on not just its profits but also the livelihood of its farmers. With demand for its coffee at an all-time high, Transcend Coffee had to consider how to mitigate a supply shortage without sacrificing quality. The founder was unsure if the current supply chain could guarantee a steady supply of high-quality coffee, or whether he could maintain transparency with consumers and suppliers if there was variability with the product. He had to quickly decide what to do about the poor harvest and his relationship with the supplier and also figure out how to meet customer demand.

Teaching Note: 8B16M130 (13 pages)
Industry: Retail Trade
Issues: sustainability, fair trade, direct trade, Edmonton, coffee, social entrepreneurship, impact investing
Difficulty: 5 - MBA/Postgraduate


Chapter 6:
Social Investment and Crowdfunding

TWINHILLS CENTRO: SOCIAL RETURN ON INVESTMENT
Mahrukh Tahir, Elizabeth Henderson, Irene Herremans

Product Number: 9B16M087
Publication Date: 6/14/2016
Revision Date: 6/14/2016
Length: 11 pages

In 2012, TwinHills was a proposed community development project by a private land developer in Calgary, Canada. The developer's utopian vision was to create a community that met a “five bottom line” model of economic, social, environmental, technological, and spiritual components. This vision was not necessarily shared by the agencies involved in the development approval process, including those in city council. The landowner identified social return on investment (SROI) as a possible tool to use to demonstrate the value of the community and expedite approvals. Two students took on the task of researching SROI and recommending specific applications for the TwinHills project. However, they encountered problems that complicated the decision process. What recommendations should the students make regarding the use of SROI for this project? They would have to use skills including cost-benefit and stakeholder analysis, while absorbing and applying the new concept of SROI to suggest the most appropriate course of action.

Teaching Note: 8B16M087 (9 pages)
Industry: Real Estate and Rental and Leasing
Issues: SROI, social return on investment, cost benefit analysis, social responsibility
Difficulty: 4 - Undergraduate/MBA



CROWDFUNDING THE YOUNG GALLERY PROJECT
Russell Williams, Morbhen Rattray

Product Number: 9B15A044
Publication Date: 9/17/2015
Revision Date: 9/17/2015
Length: 8 pages

The Glasgow-based charity, Impact Arts, was looking for alternative funding streams for its Young Gallery project. As a result, it undertook its first crowdfunding campaign on the Indiegogo platform. The project did not achieve its stated target of £15,000 in the six week campaign period. Instead, only £4,715 (31 per cent of the total) was raised. While the charity did not achieve its goal, the campaign left the chief executive officer and her team feeling motivated and enthusiastic about crowdfunding as a possible complementary revenue source. However, they recognized that they needed to learn from this experience in order to make future campaigns more effective with respect to pitch (the proposition made to would-be donors) and its delivery.

Teaching Note: 8B15A044 (9 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Crowdsourcing; crowdfinancing; third sector
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Social and Ethical Capital

RAJWANT ENGINEERING: SURVIVAL OR ETHICAL VALUES?
Atul Arun Pathak, Kshamta Sharma

Product Number: 9B16C029
Publication Date: 10/5/2016
Revision Date: 10/5/2016
Length: 10 pages

In October 2014, the owner of Rajwant Engineering Pvt. Ltd., a small-scale manufacturing business in Jamshedpur, India, needed to make some key strategic decisions. The immediate challenge was that the company had recently been asked for a bribe by the procurement manager of its most important client. The business owner was a highly ethical entrepreneur, so he was tempted to discontinue his relationship with the client on ethical grounds. However, the business was facing major financial difficulties, and the owner felt great responsibility toward his employees. The business owner wondered if he should instead compromise on his values in order to save his business from bankruptcy.

Teaching Note: 8B16C029 (14 pages)
Industry: Manufacturing
Issues: ethics, small business, decision-making, organizational survival, piping, gas, manufacturing
Difficulty: 5 - MBA/Postgraduate



INVEST OR TAKE: A VENTURE CAPITALIST'S ETHICAL DILEMMA
Jon Carrick

Product Number: 9B16M057
Publication Date: 5/30/2016
Revision Date: 5/27/2016
Length: 10 pages

In May 2015, a managing partner in an Australian venture capital firm faced a major dilemma. As one of five partners, he held the deciding vote on whether his firm, KTN Capital, would take an entrepreneur’s idea for a solar-powered water filter and build a new company around it, or instead, invest in the entrepreneur’s company. The venture capital firm would not be doing anything illegal by taking the entrepreneur’s idea because the entrepreneur had not properly protected his intellectual property through patents, but the decision-maker was struggling with the ethics of that choice. To further complicate the situation, the entrepreneur was very difficult to deal with, and the investment firm was facing pressure from the fund’s investors to find investments that would yield big returns. The managing partner had many business and ethical considerations to factor into his decision, and it seemed there would be no easy choice.

Teaching Note: 8B16M057 (10 pages)
Industry: Finance and Insurance
Issues: venture capital
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Strategic Management and Planning

SPARK SCHOOLS: KINDLING INNOVATION IN SOUTH AFRICA'S PRIMARY SCHOOLS
Margaret Sutherland

Product Number: 9B16C002
Publication Date: 1/28/2016
Revision Date: 1/22/2016
Length: 8 pages

In response to the education crisis in South Africa, two young MBA graduates start SPARK Schools, a network of low-fee, private primary schools; however, teacher candidates often lack the skills, knowledge and attitudes required in this innovative schooling system. SPARK Schools has implemented a range of human resource practices that show how an integrated, intensive, systemic approach to human resource policies and practices can help to optimize teachers’ performance. The two leaders wonder whether their human resource practices are suitable for scaling up their social entrepreneurship organization from four schools to 60 in their effort to make a positive national impact on education.

Teaching Note: 8B16C002 (13 pages)
Industry: Educational Services
Issues: Social entrepreneurship, human resource management, effectuation, scaling up, motivational theories, school management, performance management, business in Africa
Difficulty: 5 - MBA/Postgraduate



VIRIDITY ENERGY: THE CHALLENGE AND OPPORTUNITY OF PROMOTING CLEAN ENERGY SOLUTIONS
Chris Laszlo, Anshuman Chandrachud, Indrajeet Ghatge

Product Number: 9B12M035
Publication Date: 5/9/2012
Revision Date: 2/7/2014
Length: 14 pages

Smart grid companies such as Viridity Energy are finding profitable opportunities to help their customers cut energy bills and simultaneously get credit for greater environmental responsibility. But will consuming fewer dirty watts from fuel sources such as coal and natural gas be a sufficient objective for customers in the future? What will rising societal expectations, tougher environment regulations, and new distributed clean energy technologies mean for the ability of smart grid companies to engage new customers and differentiate themselves in an increasingly crowded field?

Teaching Note: 8B12M035 (7 pages)
Industry: Professional, Scientific, and Technical Services
Issues: Sustainability Strategy and Business Models; Green Energy; Eco-effectiveness; United States
Difficulty: 5 - MBA/Postgraduate


Chapter 9:
Management Ideologies

WOMEN'S COMMUNITY HOUSE AND MINE101: IS SOCIAL ENTERPRISE WORTH IT?
Colleen Sharen

Product Number: 9B14M095
Publication Date: 8/22/2014
Revision Date: 8/22/2014
Length: 14 pages

In May 2013, the director of transitional and community programs at Women’s Community House (WCH) must decide whether to renew the retail lease on WCH’s used-clothing boutique, Mine101. This social enterprise was launched to generate income for WCH’s children’s programming, but lost money in its first two years of operations. The decision to renew the lease begs a larger question: Should Women’s Community House continue to operate Mine101? The director must conduct an analysis of the performance of Mine101 and recommend whether or not to continue operating the social enterprise.

Teaching Note: 8B14M095 (8 pages)
Industry: Social Advocacy Organizations
Issues: Social enterprise; non-profit management; social entrepreneurship; Canada
Difficulty: 4 - Undergraduate/MBA



SOJO: MODELING SOCIAL ENTERPRISE
Kanika Gupta, Melissa Leithwood, Oana Branzei

Product Number: 9B13M103
Publication Date: 9/26/2013
Revision Date: 9/26/2013
Length: 9 pages

SoJo is an online resource hub — optimized for web and mobile — focused on helping early-stage social innovators turn their ideas into action. Founded in Canada as a for-profit venture in 2010, the company depends mainly on volunteer part-time staff and competes for traffic in cyberspace with its own content providers. Many skeptics doubted the idea would ever work: why would content providers forego traffic on their own sites by relinquishing their “good stuff” to SoJo? Yet by 2012, with over 2,000 active users, 50 content partners, 1,300 Twitter followers, 80,000 articles viewed and more than 1,000 unique pieces of content that earned global praise from traditional business media outlets, SoJo is well positioned to grow even further and faster. However, its founder and chief catalyst, an award-winning social entrepreneur, is anxious to make the company self-sustaining by generating revenue through product and service extensions and by increasing its user base a hundred-fold. How can such a social enterprise be modeled to support the pace of growth it needs to remain the one best resource for change-makers the world over?

Teaching Note: 8B13M103 (11 pages)
Industry: Social Advocacy Organizations
Issues: social enterprise; social innovation; social change; youth entrepreneurship; Canada
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Leadership, Social and Eco-Entrepreneurship

BEYOND THE LEMONADE STAND: SUSTAINING A NEW SOCIAL VENTURE
Anthony Wilson-Prangley, Gretchen Wilson-Prangley

Product Number: 9B18M046
Publication Date: 3/19/2018
Revision Date: 3/19/2018
Length: 8 pages

In 2016, a young South African left her secure office job to pursue her passion for social entrepreneurship in the youth development field. She had been volunteering with street children, but she wanted to do more by drawing on her entrepreneurial experience from high school and university. She followed her passion, and experienced a number of challenges, but also early successes over her first four years of social entrepreneurship, including the formation of her social business, Beyond the Lemonade Stand. Business was steady but she struggled with getting the commitment needed in poor township schools to make the program a success. She began to question the core purpose of her organization and wondered if she would be better off pursuing opportunities offered by middle-class and private schools that wanted her services.

Teaching Note: 8B18M046 (8 pages)
Industry: Social Advocacy Organizations
Issues: start-up, social entrepreneurship
Difficulty: 4 - Undergraduate/MBA



EARTH’S GENERAL STORE: BALANCING PEOPLE, PLANET, AND PROFIT IN ORGANIC-FOOD RETAILING
Joel Gehman, Ashton Paulitsch, Maninder Pardais, Bernard Streeper, Brian Ballman, Taylor Love, Leanne Hedberg Carlson

Product Number: 9B17M099
Publication Date: 6/28/2017
Revision Date: 6/28/2017
Length: 12 pages

The owner and operator of two stores that sold organic groceries and fair-trade goods in Edmonton, Alberta was proud of what he had built; however he was worried about the financial sustainability of his downtown location. Since its opening in 2014, the downtown store had constantly struggled to remain profitable in the face of extremely high overhead costs. The original Whyte Avenue location of Earth’s General Store, highly popular with its loyal patrons, had been subsidizing the downtown store just to keep its doors open. This practice was certainly not a long-term solution, and in early 2016, the owner needed to create a new business strategy that would balance his company’s financial needs with its social and environmental missions.

Teaching Note: 8B17M099 (10 pages)
Industry: Retail Trade
Issues: sustainability, strategy, organic, grocery, fair-trade, downtown
Difficulty: 5 - MBA/Postgraduate


Chapter 11:
Identities and Legalities

GENTERA S.A.B. DE C.V.: THE EVOLUTION OF AN ORGANIZATION AND ITS BOARD OF DIRECTORS
Juan Romero McCarthy, Murray J. Bryant

Product Number: 9B17M173
Publication Date: 11/20/2017
Revision Date: 11/20/2017
Length: 24 pages

Financial holding company Gentera S.A.B. de C.V., located in Mexico City and operating in Mexico, Guatemala, and Peru, offered microlending, financial payment, insurance, and money transfer services to individuals at the bottom of the financial pyramid. The company was founded and operated on strong social values—reduce financial exclusion, focus on human and social values (including self-actualization), and enhance economic value—which pervaded the decisions made by the board and senior management. By 2016, the company had evolved from its origins as a non-governmental organization to become a private bank and, more recently, a public company listed on the Mexican Stock Exchange. The company faced questions about its governance structure and processes: should it reduce the number of board committees and alter their function in order to accomplish a stronger strategic focus? It also faced organizational challenges related to growth and the need to both adapt its current business model to encompass financial technology and invest in information technology. How should it allow extensive developments while simultaneously updating systems required to meet current needs?

Teaching Note: 8B17M173 (16 pages)
Industry: Finance and Insurance
Issues: microlending, social values, board of directors, information technology, organizational change
Difficulty: 5 - MBA/Postgraduate



THE TRAGEDY OF THE COMMONS: OPPORTUNITIES ABOUND BUT OBSTACLES REMAIN FOR SOCIAL ENTREPRENEURS
Mark Griffiths, Jill Kickul

Product Number: 9B13TB02
Publication Date: 3/1/2013
Length: 7 pages

The Tragedy of the Commons refers to the depletion of a shared resource by individuals acting independently and rationally, according to self-interest, despite knowing that an abuse of the common resource is contrary to their long-term interests. The Tragedy is a model of many of society’s resource-based problems, including over-irrigation, habitat destruction, over-fishing, traffic congestion, and air pollution. The Free Rider problem refers to when an individual benefits from another’s work without paying for it. The two practical ways to overcome this problem are through compulsory participation (e.g. carbon tax, cap-and-trade) and through linking the public good to a desirable private good (getting people to pay voluntarily). Both methods are controversial and politicized.

Social entrepreneurs have attempted to solve the Free Rider problem, including Verdant Power, a developer in the design and application of marine renewable energy. The obstacles it faces are the same as those that stymie most social entrepreneurs. The firm lacks revenue streams and profits, is at the mercy of private equity investors and/or the government, and must counter existing bureaucratic and regulatory impediments. The good news, however, is that institutional support for social entrepreneurs has grown enormously into a support ecosystem. Ultimately, the problem for social entrepreneurs may not be opportunity recognition as much as obstacle recognition and finding solutions within this burgeoning ecosystem.


Issues: Sustainability; Environmentalism; Government Regulations; Carbon Tax; Cap-and-trade



Chapter 12:
Governance and Human Relations

HERITAGE CHICKENS: THE CHALLENGE OF GENETIC SUSTAINABILITY
Joel Gehman, Marni Devlin Moses, Leanne Hedberg Carlson

Product Number: 9B17M057
Publication Date: 4/25/2017
Revision Date: 4/24/2017
Length: 8 pages

The Poultry Research Centre at the University of Alberta farm was an internationally recognized research, development, and learning hub. It began the Rare Poultry Conservancy Program in 1986 as a way to maintain heritage chicken breeds. In 2009/10, as a result of the global financial crisis, university funding was reduced, and every campus department needed to cut programs or find creative ways to finance them outside of the traditional methods. By 2014, the funding cuts posed a grave concern for the continuation of the heritage chicken program. Annual costs of CA$75,000 were required to maintain the flocks with very limited financial return. However, a leader at the Poultry Research Centre felt that the birds were important enough to develop a model where they could pay for themselves.

Teaching Note: 8B17M057 (8 pages)
Industry: Professional, Scientific, and Technical Services
Issues: genetics, heritage chickens
Difficulty: 5 - MBA/Postgraduate



SOCIAL ENTERPRISE FOR SUSTAINABLE COMMUNITIES: ONTARIO, CANADA
Oana Branzei, Marlene J. Le Ber, Patrick Shulist

Product Number: 9B14M046
Publication Date: 5/7/2014
Revision Date: 5/7/2014
Length: 9 pages

In the aftermath of the 2008 financial crisis, the not-for-profit sector in Ontario was forced to shift from a provider of social needs to a creator of social opportunities for communities doubly hit by rising unemployment and falling social supports. The Ontario Trillium Foundation moved to fund innovative, collaborative programs involving not-for-profit organizations, businesses and governments in creating viable social enterprises. Ottawa, London and Sarnia were three communities faced with different, but still difficult economic times, and each had responded to the crisis by proposing alternative models of social transition. In 2013, representatives from the not-for-profit sector in these cities joined with the Richard Ivey School of Business to present a proposal that promised they would work collaboratively, learn from each other, document the entire process and develop tools to prepare and guide many others. Would the Trillium Foundation support such a creative and ambitious project? See supplemental cases 9B14M046B.

Industry: Social Advocacy Organizations
Issues: Financial crisis; poverty; social innovation; collaboration; Canada
Difficulty: 4 - Undergraduate/MBA



CARE KENYA: MAKING SOCIAL ENTERPRISE SUSTAINABLE
Pratima Bansal, Tom Ewart

Product Number: 9B05M056
Publication Date: 10/13/2005
Revision Date: 10/1/2009
Length: 12 pages

AWARD WINNING CASE - This case won the 2006 Oikos Sustainability Case Writing Competition. CARE's Rural Entrepreneurship and Agribusiness Promotion project is a new, market-driven approach to development in Kenya. While the project has been successful from a development standpoint, it is not commercially viable. The sector manager must determine how to improve the project and make it commercially sustainable. Students will understand the advantages and opportunity for profit/non profit partnerships and social enterprise as complementary entities for social and economic development. PowerPoint slide presentation is available, product 5B05M056.

Teaching Note: 8B05M56 (24 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Strategic Alliances; Organizational Structure; Stakeholder Analysis; Developing Countries
Difficulty: 4 - Undergraduate/MBA