Ivey Publishing

Globally Responsible Leadership: Managing According to the UN Global Compact

Lawrence, J.T., Beamish, P.W. (United States, Sage, 2013)
Prepared By Julian Berg, PhD Candidate
Chapter and Title Chapter Matches: Case Information
Chapter 1:
Responsible Business

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



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



BROOKFIELD RESIDENTIAL PROPERTIES: IDENTIFYING AND ENGAGING STAKEHOLDERS
Norm Althouse, Peggy Hedges, Cheryl Brazell

Product Number: 9B17M148
Publication Date: 9/29/2017
Revision Date: 9/29/2017
Length: 8 pages

In early summer 2012, Brookfield Residential Properties Inc. (Brookfield), a Calgary-based residential property developer with holdings throughout North America, had an opportunity to develop a vacant site in the inner-city community of Scarboro, in the southwest quadrant of Calgary. Brookfield did not own the site but was working with the landowner to request that the city of Calgary rezone the site from single family to Direct Control to allow a proposed 52-unit project. Brookfield’s proposed housing development project was planned by following the policies set out in Calgary’s Municipal Development Plan. The plan was focused on the densification of Calgary’s population, particularly in the inner city and along established public transportation routes. The question was, how could Brookfield proceed to get buy-in for its project from Scarboro and the surrounding communities?

Teaching Note: 8B17M148 (11 pages)
Industry: Real Estate and Rental and Leasing
Issues: stakeholder, real estate, development, city planning, urban real estate development, community engagement, stakeholder engagement
Difficulty: 2 - Intro/Undergraduate


Chapter 2:
The Business of Business Is (Responsible) Business

LEBANON MOUNTAIN TRAIL ASSOCIATION: AIMING FOR SUSTAINABILITY
Mira Thoumy, Omar Sakr

Product Number: 9B18M044
Publication Date: 3/16/2018
Revision Date: 3/16/2018
Length: 15 pages

In December 2016, the president of the Lebanon Mountain Trail Association (LMTA) was getting ready for a board of directors meeting during which the members had to vote on whether to hire an executive director—a first for the association. If hired, the association would face a new financial hurdle that could threaten its sustainability. The LMTA was a non-profit mountain trail association that was implementing socially responsible tourism practices on and around a 470 kilometre trail. The association was struggling to sustain itself financially, to protect and maintain the trail, and to secure the succession of its board.

Teaching Note: 8B18M044 (10 pages)
Industry: Other Services
Issues: sustainability, tourism, stakeholder analysis, Porter’s Five Forces
Difficulty: 4 - Undergraduate/MBA



ERGONOMICA CONSULTING AND SOLLTRAM HOTELS: AN ETHICAL DILEMMA
Christopher Williams

Product Number: 9B17M153
Publication Date: 10/20/2017
Revision Date: 8/16/2018
Length: 14 pages

A senior manager at Ergonomica Consulting was under pressure to demonstrate to her client Solltram Hotels that the hotel's investment in LED lighting would provide a payback. Winning the client's buy-in would lead to an extension of the contract with the client, development of a new specialist practice area within Ergonomica Consulting, improvement of the manager’s chances of promotion, and the cementing of her reputation. However, at a critical moment, the manager discovered that a previously hidden error in her main spreadsheet, which contained over two million data points, had resulted in her overestimating the cost savings for the client. Should she conceal the mistake and win the important contract, improving her chances of promotion? Or should she own up to the mistake and risk losing the account, her promotion, and her reputation?

Teaching Note: 8B17M153 (9 pages)
Industry: Professional, Scientific, and Technical Services
Issues: management consulting, client relationship, ethics
Difficulty: 4 - Undergraduate/MBA



THE CHIA CO: OFFERING A SUPERFOOD OR A FAD?
Arpita Agnihotri, Saurabh Bhattacharya

Product Number: 9B17M130
Publication Date: 8/22/2017
Revision Date: 8/22/2017
Length: 10 pages

Founded in 2003 by a fourth-generation Australian farmer, John Foss, The Chia Co recognized the demand for healthy food among different segments of consumers and aimed to provide health and wellness to the global community through the production and distribution of chia seeds. Through his creative entrepreneurial skills, Foss encouraged a new Australian agricultural industry, which had unique supply chain practices and an emphasis on sustainability and fair value for farmers. Nevertheless, by 2016, the company was facing several challenges. Some critical issues included demand that overshot supply, threats from other healthy superfoods such as flax seeds and quinoa, and lack of scientific evidence of the health benefits of chia seeds. In this context, Foss needed to determine how to make The Chia Co a world-class market leader in chia seeds and how to overcome supply and demand challenges. If superfoods really were just a fad, he also had to consider what lay in the future for The Chia Co and its products.

Teaching Note: 8B17M130 (10 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: creative entrepreneurship, Porter's diamond model, activity map, superfoods, business model, social capital, agricultural marketing
Difficulty: 4 - Undergraduate/MBA



SIFTON PROPERTIES: FROM SOLAR TO SEWAGE
Francine Schlosser, Derek Butcher, Nicole Anderson

Product Number: 9B17M068
Publication Date: 6/2/2017
Revision Date: 6/2/2017
Length: 11 pages

In 2012, an MBA intern at Sifton Properties Ltd. had to decide on a recommendation to top management about the installation of a renewable energy installation for the company's new community development project in London, Ontario. The intern had to consider numerous internal and external factors in his decision-making process. Three emerging technologies were specifically relevant for renewable energy systems: aquifer thermal energy storage, sewer heat recovery, or anaerobic digestion and cogeneration. The intern needed to consider the social, environmental, and financial impact of each energy generation system and the preferences of varied stakeholder groups.

Teaching Note: 8B17M068 (14 pages)
Industry: Other Services, Real Estate and Rental and Leasing
Issues: sustainable development, emerging technologies, social responsibility, stakeholder management, financial data analysis
Difficulty: 4 - Undergraduate/MBA



RATAN TATA: ETHICAL LEADERSHIP
Ashok Dua, Sumita Rai

Product Number: 9B17C017
Publication Date: 4/28/2017
Revision Date: 4/28/2017
Length: 14 pages

Ratan Tata began his journey with the Tata group on the shop floor of the Tata Iron and Steel Company Limited and eventually rose to become chairman of the Tata group—a conglomerate with operations in more than 80 countries across six continents. Known as a value-based, principled, and visionary leader, Ratan Tata helped the Tata group grow immensely over two decades of leadership. When he retired in 2012, he passed the leadership to a new chairman. However, four years later, on October 24, 2016, the Tata Sons board, which controlled the Tata group, decided to replace the chairman. His ousting led to a public clash over ethics and corporate governance at the top of the Tata empire. Ratan Tata was asked to return as interim chairman and help find a new successor. How could he succeed in this task and help the Tata group retain its glory, without compromising its values and beliefs?

Teaching Note: 8B17C017 (12 pages)
Industry: Manufacturing
Issues: ethical leadership, values, ethics
Difficulty: 4 - Undergraduate/MBA



EURO-AIR (REVISED)
Paul W. Beamish

Product Number: 9B15M029
Publication Date: 3/5/2015
Revision Date: 3/5/2015
Length: 6 pages

A North America-based representative of a major European airline has just received a letter from an unhappy customer detailing a very large number of service problems. A quick check had revealed that this premium-paying customer's complaints were all valid. A meeting is planned with the customer. Before this, the airline representative must decide (A) what to say in response, and (B) what, if any, compensation should be offered. Internally, there was a need (C) to resolve what their organization should learn from this experience, both from a subsidiary and parent company perspective, and the implications on their participation in the Crown Alliance. This case raises many important questions regarding service recovery, communications, and non-equity alliances.

Teaching Note: 8B15M029 (10 pages)
Industry: Transportation and Warehousing
Issues: Alliances; Service Quality; Compensation; Communications
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
The United Nations and Transnational Corporations

BANRO CORPORATION: RECAPITALIZATION FOR SUSTAINABILITY IN THE CONGO’S GOLD MINING
Wiboon Kittilaksanawong, Kabi Olivier Katabaruka

Product Number: 9B18M031
Publication Date: 3/9/2018
Revision Date: 3/9/2018
Length: 17 pages

In January 2017, Banro Corporation, a Canadian gold mining company in the Democratic Republic of Congo, underwent recapitalization to cope with financial distress, and to optimize its operations of mining assets. Since the commencement of commercial mining in 2009, unexpected social conflicts and operational challenges had led to significantly lower production than expected, with a large cost overrun, while the price of gold declined sharply from 2012. Would the recapitalization enable Banro Corporation to carry out its medium-term strategic plan of incremental growth by operational improvements, through cost reduction and throughput expansion over a five-year horizon? How could the company achieve its long-term goal of being a model of excellence in sustainability?

Teaching Note: 8B18M031 (18 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: recapitalization, capital structure, stakeholder management, state-owned enterprise
Difficulty: 4 - Undergraduate/MBA



TETRA PAK: CREATING A RECYCLING CHAIN IN CHINA
Yu Gong, Fu Jia, Steve Brown

Product Number: 9B17D020
Publication Date: 11/21/2017
Revision Date: 11/21/2017
Length: 10 pages

In early 2016, the newly appointed recycling planning coordinator for an industry-leading food packaging and processing company, Tetra Pak International SA (Tetra Pak), was reviewing his company's recent success in creating a recycling chain in China. By 2015, Tetra Pak China had successfully created a recycling chain system, increasing China’s recycling rate from almost zero in 2004 to 28 per cent. It had done so by following a four-stage process: scanning the recycling market, building awareness and selecting partners, creating recycling capacity, and securing the recycling capacity. While the recycling planning coordinator was pleased with this recent success, he knew that questions remained: How could Tetra Pak continuously motivate recyclers to grow? How could Tetra Pak support recycling activities to achieve an even higher recycling rate? How could Tetra Pak achieve its recycling targets without much financial support?

Teaching Note: 8B17D020 (8 pages)
Industry: Manufacturing
Issues: sustainable supply chain management; multi-tier supply chain; supply chain leadership; supply chain learning
Difficulty: 4 - Undergraduate/MBA



VOLKSWAGEN EMISSION SCANDAL: REPUTATION RECOVERY AND RECALL STRATEGY
Rachna Shah, Gaganpreet Singh, Sandeep Puri

Product Number: 9B17M052
Publication Date: 4/20/2017
Revision Date: 4/25/2017
Length: 11 pages

In September 2015, the Volkswagen Group (VW) was in a state of flux. Its reputation was taking a severe beating in the auto industry and among consumers. The United States Environmental Protection Agency had accused the company of tampering with its EA 189 diesel engines to clear emissions tests. The engines, fitted with a “defeat device,” met the stringent emission levels and higher fuel efficiency standards set in the United States. The defeat device controlled emissions during laboratory testing and driving so that they remained within permissible limits; however, during actual on-the-road driving, the nitrogen oxide emissions were up to 40 times higher. VW’s admission of the intentional manipulation severely dented its value chain, affecting market share, brand image, internal/external stakeholders trust, and supply chain operations. In the wake of the scandal, the company faced the challenge of organizing a product recall and reconceptualizing the VW brand identity.

Teaching Note: 8B17M052 (11 pages)
Industry: Manufacturing
Issues: product recall, brand identity, recall strategy, brand identity matrix, automotive
Difficulty: 5 - MBA/Postgraduate


Chapter 4:
Context and Dynamics of the UN Global Compact

SAGAMOK FIRST NATION: A MINING COMPANY CONTEXT
Ron Mulholland

Product Number: 9B18M035
Publication Date: 3/9/2018
Revision Date: 3/9/2018
Length: 15 pages

Sagamok First Nation (Sagamok) was one of several First Nations living on land that was a mineral resource. Canada's Indigenous Peoples had an historical claim to swaths of land and their resources; however, as Canada became increasingly colonized, the government negotiated treaties with the First Nations that resulted in smaller boundaries for First Nations lands, but required mining companies that wanted to mine reserved lands to negotiate access with the relevant First Nation.

Sagamok had negotiated access with three mining companies and their relationships with the three companies varied. One relationship left Sagamok with open pit mines and an environmental mess; another resulted in good relations, opportunities for Sagamok, and environmental stewardship; and the third was in early stages and already showing problems. In 2016, the Chief of Sagamok needed to resolve the dispute and to consider how to apply what the community had already learned to build capacity in evaluating opportunities for resource extraction, environmental stewardship, and economic development.


Teaching Note: 8B18M035 (7 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: corporate social responsibility; mining; First Nations; Indigenous Peoples
Difficulty: 5 - MBA/Postgraduate



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



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



FERRERO GROUP: ACHIEVING SUSTAINABILITY THROUGH SUPPLY CHAIN INTEGRATION
Wiboon Kittilaksanawong, Ottavia Curcuraci

Product Number: 9B17M081
Publication Date: 6/19/2017
Revision Date: 6/19/2017
Length: 17 pages

Ferrero Group (Ferrero) operated in the chocolate confectionery industry. The industry was facing challenges with changes in consumer needs, and price volatility and scarcity of raw ingredients. To achieve its ambitious economic goals in this environment, Ferrero integrated various sustainability initiatives in its supply chain and grew the company through vertical and horizontal integration. Advocating a vision of “sharing values to create value,” the company set sustainability goals for 2020, which included controlling and being able to trace the supply of raw ingredients. Could Ferrero maintain its leading position in the industry and achieve its sustainability goals? To what extent could the sustainability goals strengthen the company’s competitive position and move it toward achieving its financial goals?

Teaching Note: 8B17M081 (14 pages)
Industry: Manufacturing
Issues: corporate social responsibility, business ethics, social entrepreneurship, supply chain management, vertical integration, mergers and acquisitions
Difficulty: 4 - Undergraduate/MBA



CALVERT INVESTMENTS: ENVIRONMENTAL, SOCIAL, AND GOVERNANCE SUSTAINABILITY
Chantal van Esch, Chris Laszlo, Katherine Gullett, Ben Cooper, Jingya Zou

Product Number: 9B17M017
Publication Date: 1/30/2017
Revision Date: 1/30/2017
Length: 10 pages

In 2014, the chief executive officer (CEO) of Calvert Investments (Calvert) found herself at a crossroads. Under her stewardship, Calvert had become one of the world’s leading investment management firms, specialized in using sustainability as a platform to create value for investors. After having been recruited to the position from Wall Street, the CEO had enthusiastically embraced and encouraged Calvert’s unique positioning for 17 years. The idea of environmental, social, and governance sustainability had not only defined Calvert’s niche in investments, but had come to describe the CEO’s personal leadership style and shaped how she ran the company. However, with many apparent challenges to the environmental, social, and governance community and the broader investor community, the CEO wondered if the old way of doing sustainable and socially responsible investing was sufficient to support the changes that she felt were needed.

Teaching Note: 8B17M017 (7 pages)
Industry: Finance and Insurance
Issues: leadership, CEO, gender, diversity, sustainability, strategy, finance
Difficulty: 5 - MBA/Postgraduate


Chapter 5:
Human Rights as Ethical Imperatives for Business

MAGGI: A TANGLED MESS
Gerard Seijts, Sunali Swaminathan

Product Number: 9B18C003
Publication Date: 1/29/2018
Revision Date: 1/29/2018
Length: 11 pages

In the summer of 2015, one of Nestlé SA (Nestlé)’s top-selling products in the Indian market, its two-minute Maggi noodles, was embroiled in a food and safety issue when lead was discovered during a test. Media pundits called for the arrest of Nestlé officials. Others took to the street to set ablaze the famous yellow-coloured Maggi packets. Nestlé treated the matter largely as a regulatory issue, managing the crisis with scientific data at hand. The narrative was quickly set by the Food Safety and Standards Authority and its various provincial partners, which led to statewide bans and expanded tests of Maggi noodles across India and beyond. Nestlé executives wondered how a simple test had landed the organization and its prized brand in hot water. How can Nestlé take control and win back consumer confidence?

Teaching Note: 8B18C003 (9 pages)
Industry: Accommodation & Food Services
Issues: leadership, crisis, communication, marketing
Difficulty: 4 - Undergraduate/MBA



ENOVE: BUSINESS STRATEGY IN A TRANSITIONING ECONOMY
Maciek Nowak, Alexander Stoll

Product Number: 9B16M013
Publication Date: 2/3/2016
Revision Date: 2/2/2016
Length: 9 pages

In August 2014, La Société Energies Nouvelles & Environnement (ENOVE), a subdivision of Groupe Bismuth, was developing an expansion strategy in the unstable political and economic environment of Tunisia, the company’s home country. Tunisia was the birthplace of the Arab Spring, a series of political revolutions that started in 2010 and swept the Mediterranean region for five years. Tunisia was also quickly moving toward a democratically elected government, but the transition was not an easy one; the country experienced a setback of about 10 to 15 years, in regards to economic development. Years of functional corruption under the long-time president, Ben Ali, were followed by sustained economic growth in manufacturing, tourism, and education. This led the economy into a governmental vacuum. For the first time, workers began exercising their rights to demand better conditions. There was little governmental oversight on customs, labour, or taxation. The threat of terrorism, whether real or perceived, was always present. Under these conditions, ENOVE's president had to make a decision: Should ENOVE expand within Tunisia, or move their manufacturing operations to a more stable country, perhaps nearby Morocco?

Teaching Note: 8B16M013 (10 pages)
Industry: Manufacturing
Issues: Strategy formulation, emerging economies, third world, political environment, labour force, extremism, decision-making, Arab Spring, Jasmine Revolution, Scramble for Africa, Africa, Tunisia
Difficulty: 5 - MBA/Postgraduate



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


Chapter 6:
Our Role as Managers in Understanding and Fulfilling the Labour Principles of the UN Global Compact

UBER: KALANICK'S TUMULTUOUS ERA
Robert Eames

Product Number: 9B18C006
Publication Date: 3/9/2018
Revision Date: 3/9/2018
Length: 10 pages

In June 2017, transportation company Uber Technologies Inc. (Uber), which operated in 70 countries and had net revenue in the fourth quarter of 2016 of US$1.7 billion, fired its chief executive officer, Travis Kalanick. By the time of Kalanick's departure, negative publicity had contributed to a decline in market share, and a number of other high-level executives had left the company. What options could the company identify for the future that would address existing issues, including those surrounding its culture, practices, financing, and consumer confidence?

Teaching Note: 8B18C006 (9 pages)
Industry: Transportation and Warehousing
Issues: sharing economy, organizational culture, leadership
Difficulty: 3 - Undergraduate



WAL-MART: THE LIVING WAGE
Robert Eames

Product Number: 9B17M157
Publication Date: 10/19/2017
Revision Date: 10/19/2017
Length: 9 pages

By 2017, Wal-Mart Stores, Inc. (Wal-Mart) had shaped purchasing power for more than a million U.S. workers. Wal-Mart’s economic muscle was so profound that one could assume that the corporation’s wage policies had had a significant impact on the struggle for a living wage in the United States—but did this assumption have any merit? Wal-Mart had set the benchmark for low-cost retail labour practices. Understanding how Wal-Mart set the agenda with wages invited the investigation of a few pertinent questions: What socio-economic forces were in play and what was the environmental context that shaped Wal-Mart’s approach to managing its labour force? What were Wal-Mart’s wage-related practices, and how did the hourly rate paid to workers by the corporation affect prevailing wage rates? Finally, what were the benefits for Wal-Mart if it pursued a progressive wage rate agenda related to a living wage, and what were the disadvantages if it did not?

Teaching Note: 8B17M157 (9 pages)
Industry: Retail Trade
Issues: living wage, Wal-Mart, minimum wage
Difficulty: 3 - Undergraduate



JSW STEEL: SHARED VALUE AT VIJAYANAGAR STEEL PLANT
Sandeep Goyal, Amit Kapoor, Wilfried Aulbur

Product Number: 9B17M065
Publication Date: 5/19/2017
Revision Date: 5/19/2017
Length: 14 pages

By 2015, JSW Steel Limited had established itself as one of India’s leading steel producers. Since 2002, it had increased its capacity from 1.6 million tons per annum (MTPA) to 18.0 MTPA at a compound annual growth rate (CAGR) of 18 per cent; increased production from 1.30 MTPA to 12.36 MTPA at a CAGR of 19 per cent; and increased market capitalization by 59 times, from US$79.26 million to US$4.676 billion. The company’s innovative shared-value approach at its Vijayanagar plant contributed significantly to its success. The plant set an example of how to integrate social and environmental challenges into a business core and create an integrated value chain with many benefits. However, an adverse economic performance in financial year 2015–16 and a gloomy forecast for the steel industry in the next few years raised questions for top management about whether to continue with the shared-value and corporate social responsibility approaches.

Teaching Note: 8B17M065 (14 pages)
Industry: Manufacturing
Issues: shared value, business model
Difficulty: 5 - MBA/Postgraduate



ECO TASAR SILK: SALES FORCE CALLING IT QUITS
Sushmita Waraich, Ajay Chaturvedi

Product Number: 9B17C019
Publication Date: 5/8/2017
Revision Date: 5/18/2017
Length: 11 pages

In 2016, the managing director of Eco Tasar Silk Private Ltd., an organization that sold handloom Tasar silk products created by low-income artisans in rural, underdeveloped areas of India, faced issues with his sales team. The managing director’s dedication and perseverance, coupled with his past experience in a non-governmental organization in a similar field, had helped his company grow quickly over a short period of time. However, as the company scaled up operations, members of the sales team appeared to be either unconvinced of the company's business model or insufficiently competitive to ensure the business’s sustainability. How could the managing director identify and recruit sales professionals who both understood and supported the business’s unique value proposition and were sufficiently sales-oriented to ensure the business’s longevity?

Teaching Note: 8B17C019 (9 pages)
Industry: Manufacturing
Issues: social enterprise, sales challenges, business model, retention
Difficulty: 4 - Undergraduate/MBA



LAS VEGAS CONSTRUCTION: ETHICAL CONTRACTING
Won-Yong Oh, Youngkyun Chang

Product Number: 9B17M047
Publication Date: 3/21/2017
Revision Date: 3/21/2017
Length: 5 pages

In December 2015, the head of supply chain management (SCM) at Las Vegas Construction Inc. was tasked with reducing operating costs by 25 per cent in order to deal with the fallout in Nevada’s construction industry from the global economic downturn. The SCM head had engaged the manager in charge of subcontracting to help with cost reductions. The subcontracting manager did find a way to reduce costs, but it turned out to be a questionable way. He had tipped off the three subcontractors with whom he had been working closely by providing them with confidential information regarding a target bid price for the labour sourcing process. When the bid prices were disclosed, even though Las Vegas Construction Inc. had reached its original cost savings goal, the SCM head had mixed feelings about the process. He wondered how to address this potentially unethical situation, and whether he should inform his superiors about it.

Teaching Note: 8B17M047 (9 pages)
Industry: Construction
Issues: business ethics , oil and gas industry, supply chain management, SCM, contract , cost savings, cost reduction
Difficulty: 4 - Undergraduate/MBA



BIBLIO CREDIT UNION: SOCIAL INEQUALITY AND THE LIVING WAGE
Kent Walker, Curtis Labutte

Product Number: 9B17M020
Publication Date: 1/30/2017
Revision Date: 1/30/2017
Length: 10 pages

In 2016, the community engagement manager at Biblio Credit Union, a financial institution in Ontario, Canada, was concerned about rising social inequality. The company was respected in the community for its high business ethics and careful attention to corporate social responsibility. Although most of the company’s employees were paid well, some employees received little more than the minimum wage. The community engagement manager wondered how to reduce that inequality. If the company were to give a raise to the lowest paid employees, all other employees would likely also expect a pay increase. Therefore, to bring all employees to what was considered to be a living wage, the company would need to adjust its pay scale. But would the credit union’s board of directors support a sudden change in expenses? Would the increased expenses be offset by a corresponding increase in revenues? Would new customers pay more for the services of a living wage employer? The company needed to weigh the implementation of a living wage against the possibility of declining revenues, which could place the company in serious jeopardy.

Teaching Note: 8B17M020 (6 pages)
Industry: Finance and Insurance
Issues: social inequality, living wage, business ethics, corporate social responsibility, socioeconomics,Mincome
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Embedded Sustainability and the Innovation-Producing Potential of the UN Global Compact’s Environmental Principles

AQUADVANTAGE SALMON: COMMUNICATING TO BUILD CONSUMER CONFIDENCE
Mary Weil, Mark B. Vandenbosch, Julia Cutt

Product Number: 9B18M050
Publication Date: 3/28/2018
Revision Date: 3/28/2018
Length: 9 pages

AquaBounty Technologies, Inc. (AquaBounty) was a small, U.S. biotechnology company that focused on improving productivity in commercial aquaculture. In 2015, the company had received approval from the U.S. Food and Drug Administration to sell its genetically modified AquAdvantage salmon in the United States. Public reaction was mixed, with heavy criticism from some environmentalists. One year later, in May 2016, AquaBounty received approval from Health Canada to sell AquAdvantage salmon in Canada. The company’s director of Corporate Communications needed to prepare for the announcement of Health Canada’s approval, to be made public later that week. What should he include in the company’s issues management plan to ensure that AquaBounty would receive balanced feedback from the Canadian public?

Teaching Note: 8B18M050 (5 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: issues management, reputation, communications
Difficulty: 4 - Undergraduate/MBA



MOBIKE: A SMART BIKE-SHARING SERVICE PLATFORM
Guijie Qi, Jiali Chen, John Zhang

Product Number: 9B18M004
Publication Date: 1/12/2018
Revision Date: 1/12/2018
Length: 15 pages

In 2017, bike sharing was one of the hottest technology trends in China. Since its inception two years earlier, Mobike had quickly become one of China’s leading bike on-demand companies because of its bicycles’ superior quality, and the company’s intelligence capability, open innovation, alliance strategies, and big data applications. Mobike expanded aggressively to take advantage of opportunities in this emerging market and the need for efficient, green, and sustainable solutions to short-distance urban transportation. However, Mobike's aggressive expansion faced tough challenges, including shared bicycle operations and management, competition from rivals, and government regulations. By late 2017, several bike-sharing services had gone bankrupt. How could Mobike avoid the same fate, generate profit, and continue to prosper?

Teaching Note: 8B18M004 (8 pages)
Industry: Information, Media & Telecommunications
Issues: sharing economy, bike sharing, strategy
Difficulty: 5 - MBA/Postgraduate



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



FRUITS OF SHERBROOKE: CREATING A SUSTAINABLE BUSINESS
Joel Gehman, Amy Hingston, Cuong Pham, Andrew Phelan, Matthew Townley, David Vetters, Leanne Hedberg Carlson

Product Number: 9B17M088
Publication Date: 6/22/2017
Revision Date: 6/22/2017
Length: 10 pages

In 2010, three friends created Fruits of Sherbrooke as a way to rescue local fruit that would otherwise be wasted. The founders knew their efforts would be beneficial for the environment and for people in need of food. In February 2016, having grown their business into a successful social enterprise entirely through the help of volunteers, they faced important decisions. Realistically, they would not always be able to run the organization, which meant facing issues of succession. Additionally, they needed to decide how to balance growth strategies with their commitment to the social good. Should the organization focus on maximizing profitability or should decisions for growth be based only on providing the greatest benefit possible to the community and environment?

Teaching Note: 8B17M088 (10 pages)
Industry: Social Advocacy Organizations
Issues: sustainability, succession planning, social enterprise, professionalization, business growth, recycling, food
Difficulty: 4 - Undergraduate/MBA



TRICICLOS: THE CHALLENGE OF SCALING RECYCLING IN LATIN AMERICA
Chris Laszlo, Katherine Gullett, Ignacio Pavez, Maria Bello

Product Number: 9B15C032
Publication Date: 11/6/2015
Revision Date: 11/6/2015
Length: 13 pages

TriCiclos, a recycling company in Chile, and the first B Corporation in Latin America, is innovating the way business is understood and conducted. The chief executive officer is excited about the financial future of the company, including expansion into new geographic markets in Latin America. Nevertheless, different geographic markets bring a new set of challenges for a sustainable business: foreign governments with different laws and regulations for recycling and partnering with clients and recyclers, the need to establish partnerships with local recycling plants and, more importantly, how these variables affect the company’s organizational mission and culture.

Teaching Note: 8B15C032 (12 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Sustainability, B Corp, recycling
Difficulty: 5 - MBA/Postgraduate


Chapter 8:
The Challenges of Corruption in Business, Government, and Society

PRECIA PHARMA: PROMOTING ETHICAL SALES PRACTICES
Sandeep Puri, Ajay Kohli

Product Number: 9B17A045
Publication Date: 8/31/2017
Revision Date: 8/31/2017
Length: 11 pages

Precia Pharma Private Limited was considered one of the fastest growing companies in the highly competitive Indian pharmaceutical industry. An email from the company’s star performing executive in March 2017, highlighting sales pressures and unethical practices in the industry, forced the managing director to face the reality of how the ills plaguing the pharmaceutical sector might affect his company. He wondered what he must do to maintain the company’s ethical code of conduct while striving for a healthy balance between ambitious targets and good selling practices. The case explores the strategies of the company for managing the different ethical issues in a pharmaceutical setting.

Teaching Note: 8B17A045 (9 pages)
Industry: Health Care Services
Issues: sales management, ethical selling, pharmaceutical selling, false reporting, first line managers, sales executives
Difficulty: 5 - MBA/Postgraduate



FORTY CHINESE POLICE TO FIVE-STAR BALI CONFERENCE: SCAM?
Stephen Grainger

Product Number: 9B17M024
Publication Date: 1/30/2017
Revision Date: 1/30/2017
Length: 5 pages

In 2012, a real estate entrepreneur and his long-time friend and former neighbour, a police director, had enjoyed the profits of guanxi—a bilateral flow of personal favours—for many years. The use of guanxi in China had long been a core component of successful and sometimes illegal business. However, China’s new president had recently created a tough anti-corruption Disciplinary Committee. As a result, many respected citizens who had previously profited from corrupt practices were being exposed, prosecuted, and imprisoned. News was leaked about the city’s entire police force having enjoyed a six-day vacation in Bali at the expense of the police budget. The real estate entrepreneur and the police director were going to be questioned about their role in arranging this vacation. What should they do? Could they escape the consequences of their questionable business practices, or were they headed for a future in prison?

Teaching Note: 8B17M024 (7 pages)
Industry: Real Estate and Rental and Leasing
Issues: guanxi, favours authorization, anti-corruption, real estate, police
Difficulty: 5 - MBA/Postgraduate



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



TOSHIBA: ACCOUNTING FRAUD
Anupam Mehta

Product Number: 9B16B011
Publication Date: 6/27/2016
Revision Date: 6/27/2016
Length: 7 pages

In July 2015, the chief executive officer of Toshiba Corporation (Toshiba) resigned over the revelation of a JP¥151.8 billion accounting scandal that shocked the world. Toshiba, a Japanese multinational conglomerate with net sales of JP¥6.5 trillion and total assets of ¥6.2 trillion, had been widely criticized in the news for the multi-billion-dollar accounting fraud. The company’s stock prices declined by 38 per cent after the accounting probe was announced, and the company withdrew the dividend that had been declared earlier. These setbacks challenged company investors, who had always regarded Toshiba as a reputable company. The investors were wondering the same thing as everyone else watching the scandal unfold: How could a company with a 140-year history do this, and why? What were the consequences? What should Toshiba do in response to this crisis?

Teaching Note: 8B16B011 (11 pages)
Industry: Information, Media & Telecommunications
Issues: computers, electronics, accounting fraud, scandal, fraud triangle, ethics
Difficulty: 4 - Undergraduate/MBA



FIFA: THE BEAUTIFUL GAME AND GLOBAL SCANDAL
Charles McMillan, Jeffrey Gandz

Product Number: 9B15C029
Publication Date: 9/11/2015
Revision Date: 9/11/2015
Length: 13 pages

At dawn on May 29, 2015, Swiss authorities acting on behalf of the U.S. Federal Bureau of Investigation entered a plush hotel in Zurich, Switzerland to arrest nine senior executives of FIFA (Fédération Internationale de Football Association), soccer’s global governing body, as delegates from across the world convened to elect a president to lead them for the next four years. The incumbent president, who had been in office since 1998, at first refused to step down, but pressure from the media, sponsors and fans as the investigation escalated forced him to resign a few days later. The organization’s signature event, the World Cup, had grown into a quadrennial cash cow through the shrewd sale of broadcast and marketing rights. Now, charges of corruption were forcing its governance and practices into the limelight. How could the executive forge a path ahead and what steps were needed to repair the organization’s reputation and survival?

Teaching Note: 8B15C029 (15 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Globalization, governance, ethics, multiple stakeholders; structure
Difficulty: 5 - MBA/Postgraduate



LARSON INC. IN NIGERIA
Paul W. Beamish, Isaiah A. Litvak

Product Number: 9B15M047
Publication Date: 4/9/2015
Revision Date: 4/9/2015
Length: 6 pages

In 2015, the vice-president of international operations must decide whether to continue to operate or abandon the company's Nigerian joint venture. Although the expatriate general manager of the Nigerian operation has delivered a very pessimistic report, Larson's own hunch was to stay in that country. Maintaining the operation was complicated by problems in staffing, a joint venture partner with divergent views, and increasing costs of doing business in Nigeria. If Larson decides to maintain the existing operation, the issues with its local partner and staffing problems (especially in terms of the joint venture general manager) have to be addressed.

Teaching Note: 8B15M047 (10 pages)
Industry: Manufacturing
Issues: Subsidiaries; Third World; Government Regulation; Staffing
Difficulty: 4 - Undergraduate/MBA