Upload
docong
View
227
Download
3
Embed Size (px)
Citation preview
1
• Foreword
• BenoîtLeleux(IMD)-Noir/Illuminati II
• MadeleinePullman(PortlandStateUniversity)-Portland Roasting
Company
• AndreaErinBass(UniversityofNebraska)-Lululemon’s commitment to the
environment
• DarrellBrown(PortlandStateUniversity)–Burgerville: Sustainability and
Sourcing in a QSR Supply Chain
• Forthcomingcaseteachingeventsandothernews
• Howtosubscribe
Featured Case Writers and Cases:
“Runningalongthebeach”byLululemonAthletica.CreativeCommonsLicence.Attribution2.5Generic(CCBY2.5).
Issue5,Winter2012
Sustainable Lifestyles
Case QuarterlyTeaching Cases in Action
oikos Internationalstudents for sustainableeconomics and management
2
startedbythefounderofLululemonoraworld-famousoutdoorclothingcompanyPatagoniaproducinghigh-qualityenvironmentally-friendlygarments.
Wehopethatyouwillenjoyreadingthisissueanddiscoveringthesesustainablefoodandclothingcompanies.Asusually,wewouldbeveryhappytoreceiveyourfeedback,[email protected].
Dear reader,
Foreword
LiudmilaNazarkinaoikosCaseQuarterlyEditor
WelcometotheoikosCaseQuarterly5/2012focusedonthetopicofsustainablelifestyles.ThequestionofsustainablelifestyleshasreceivedaconsiderableattentiononbothinternationalandEuropeanlevels.Thus,theinternationalTaskForceonSustainableLifestyleswaslaunchedin2002aspartofaglobalefforttopromotesustainableconsumptionandproduction,ortheso-calledMarrakechProcess,leadbytheUnitedNationsEnvironmentProgramme(UNEP)andtheUnitedNationsDepartmentofEconomicandSocialAffairs(UNDESA).OntheEuropeanlevel,theSPREADSustainableLifestyles2050initiativewaslaunchedinJanuary2011withapurposetodevelop“aroadmapforstrategicactionforpolicymakersand[to]deliverinnovativeideasforbusiness,researchandsociety”.
Inthisissuewefocusontwoaspectsofsustainablelifestyles:whatandwhereweeatandwhatwewear.Wepresentfourteachingcasesrelatedtothetopicofsustainablefoodandclothing:Noir/IlluminatiII(byBenoîtLeleux)-eco-friendlyluxuriousclothing;Lululemon(byAndreaErinBass)–eco-friendlysportsclothing;PortlandRoastingCompany(byMadeleinePullman)–acoffeecompanywithastrongcommitmenttosustainability;andfinallyBurgerville(byDarrellBrown)–afast-foodrestaurantdifferentiatingitselfonthefresh,localandsustainablefood.Inadditiontothesecases,youmayalsobeinterestedtocheckthe
followingtwocasesfromtheoikosonlinecasecollection:KapaiNewZealand–anotherfast-foodrestaurantorratherahealthysaladbar,andPhoenixOrganic–organicbeveragescompany(thiscasewascoveredinIssue1ofoikosCaseQuarterly).
Fromtheecchcasecollectionotherinteresting“food”casesareasmoothiescompanyInnocentDrinksandorganicteacompanyHonestTea,themajorityshareholdinginbothofwhichisnowownedbyCoca-Cola;Green&Black’sorganicandfair-tradechocolate–alsoisnolongerindependentbutpartofCadburySchweppes;BionadeSodaofferingorganicdrinks,anotherexampleofasmallentrepreneurialfirmboughtbyalargemainstreammarketplayer–Dr.Oetker;asacontrast,AttuneFoodsintheorganicbreakfastcerealmarketisstillasmallandindependentplayerwithanambitiontobecomealeadingdigestivehealthbrandintheUSA.Alsoofinterestmaybetwocasesonorganicfooddistributors–ProOrganicsinCanadaandWholeFoodsMarketintheUSA.
Intheeco-friendlyclothingmarketsomeinterestingcompaniesareVejaanditssneakers“withaconscience”(co-authoredbyoneoftheoikosPhDFellowsKimPoldner),FreitaganditsSwiss-madecarry-allbagsmadeofoldtrucktarpaulins,bicycleinnertubesandcarsafetybelts(thiscaseisofferedbyecchforfree),anothereco-clothingbrandOQOQO
2
NextissueofoikosCaseQuarterly(Spring,2012)willbefocusedonthetopicofSustainableHousingandwewillfeaturethefollowingcases:
• “KimptonHotels:BalancingStrategyandEnvironmentalSustainability”(byMurraySilvermanandTomThomas)
• “HunghomPeninsulainHongKong:ARealisticCallforCorporateSocialResponsibilities”(byTerenceTsaiandShuboPhilipLiu)
• “TheReUseofPEOPLE:ScraptoSales”(byCharlesJ.CorbettandWilliamG.Powell)
Winter2012Issue5|www.oikosinternational.org/academic
3
Benoît Leleux
Noir/Illuminati II: Defining Socially Responsible Affordable Luxury Clothingby Benoît Leleux
The Case Story2007wasgoingtobetheyearofNoir/IlluminatiII.ThetwoentitieswerelikeSiamesetwins;Noirdesignedandproducedluxuryclothingforwomen,whileIlluminatiIIwassetuptoproducehighquality,fair-trade,organiccottonfabricsofthehighestqualitybothforNoirandotherleadingfashionbrands.Together,theyprovidedthebasisforatotallynewconceptinfashion,onethatwouldbringback“socialsubstance”inaworldthatmostlyignoredit.CorporateSocialResponsibility(CSR)wasmakingitswayintomostotherindustries:whycoulditnotinfiltratefashion?Wasthereanywaytoimprovethe“feelgood”factorofbeautifulclotheswithaclearsocialresponsibilitymessage?Couldegocentrismrhymewitheco-friendliness?Noir/IlluminatiIIwoulddefinesociallyresponsibleaffordableluxuryclothing.Puttingtheconceptintooperationwastherealchallenge:Wouldcustomersbuythestory?Wouldinvestorsfollowhiminthisventure?
Teaching the CaseThecaseoffersauniqueenvironmenttotapthe“hiddenassumptions”ofCSR,i.e.pushtheconcepttoitslimitswhereparticipantsstarttofeelveryuneasyaboutit.Inparticular,theideaofusingCSRasabusinesspurposeorfoundation,andto
leverageCSRtomakemoney,seemstorubmanyparticipantsthewrongway.Forothers,itistheveryideaofusing“values”suchascorporatesocialresponsibilityformercantilepurposesthatcreatesamentalblockagethatrequiresdiscussion.Theseissuesaremadeevenmore“lively”bytheveryentrepreneurial,charismaticfounder,whodoesnotshyawayfromstatingclearlyhisintents.Hisvideointerview,inthisrespect,isahighlightofthecasediscussion,inparticularhisreferencetotheCatholicChurchasoneofthebestbrandseverbuiltonguilt!
“Corporate Social Responsibility (CSR) was making its way into most other industries: why could it not infiltrate fashion? Was there any way to improve the “feel good” factor of beautiful clothes with a clear social responsibility message?”
ThecaseisverydifferentfromthetraditionalCSRcasesthatoftenshowtraditionalbusinesssituationsinwhichtheadoptionofCSRprinciplesbroughtsomeclearbenefitstosociety.Inthiscase,thebenefitstosocietyareclearlyquestionable(whatisanotherluxuryfashionbrand,howeversociallyresponsible,bringingtosociety?)whiletheprivatebenefitsofadoptingCSRforthecompanyarealltoovisible.Thekeyquestions
addressedarethusthefollowing:•AreprivatebenefitstoCSRantagonistictoitssocialor“greatergood”purpose?Canonereconcilethetwoperspectives?•CanCSRorother“valuesystem”beusedasthefoundationofafor-profitbusinessmodel?•Whatthepitfallsofusinga“value”asanessentialelementofabusinesspositioning?
Practicallyspeaking,thestudentsareaskedtoaddressthefollowingsetofissues:
•Howstrongwastheproductpositioning?Affordableluxurywasverymuchanoxymoron,butthenagainthesekindsofconflictsneverpreventedbrandsfrombecomingsuccessful.•DidNoir’sprice/qualitypositioningreallymakesenseinthecompetitivefashionindustry?•Diditmakesensetopushtwobrands(NoirandIlluminatiII)atthesametime?Wastheoriginalrationalestillstrongenough?•Fromaplacementstrategypointofview,diditmakesensetogoglobalfromthestartorwastherevalueintestingthehomemarketfirst?•Areuniformsforlargecorporateclientssupportingorhinderingthedevelopmentofthebrandanditsperceivedpositioninginthemarket?
DrLeleuxisStephanSchmidheinyProfessorofEntrepreneurshipandFinanceatIMD,wherehewasdirectoroftheMBAprogramandofResearchandDevelopment.HewaspreviouslyVisitingProfessoratINSEADandAssociateProfessorandZubillagaChairinFinanceandEntrepreneurshipatBabsonCollege,Wellesley,MA(USA).HeobtainedhisPh.D.atINSEAD,specializing
inCorporateFinanceandVentureCapital.Hislatestbooksinclude“InvestingPrivateCapitalinEmergingandFrontierMarketSMEs”(IFC,2009)and“NurturingScience-BasedStartups:AnInternationalCasePerspective”(Springer,2008).HisteachingcaseshaveearnedadozenEuropeancasewritingawards.
Winter2012Issue5|www.oikosinternational.org/academic
4
Case Purchase Information Inspectioncopyofthecase“Noir/IlluminatiII:DefiningSociallyResponsibleAffordableLuxuryClothing”isavailablefromtheonlineoikosCaseCollection.Thecaseisavailableforpurchasefromecch:PartA(IMD-3-1909)andPartB(IMD-3-1910)anditisalsopartofthenewoikosCaseCollectionbook(Volume2):CaseStudiesinSocialEntrepreneurshipandSustainabilitypublishedbyGreenleaf.
•WhichinvestorwouldbebestforNoirIlluminatiIItoacceleratethebusinessaswellastosupportthecompany,itsbasicvaluesandprinciplesinthelongrun?•Didhehavetherightteamtogrowthebusiness?•Wastheenvisionedmarketentrystrategysufficienttosupporttheplannedgrowth?•HowattractivewouldNoirIlluminatiIIbetocompanieslikeGucciandLVMHfromaportfoliopointofview?Whywouldtheypossiblywanttoacquirehim?Ifthatexitroutewasreallyunlikely,thanhowwouldhebestprepareforthenextalternativerouteforexit?
ThecasetakestheconceptofCSRinanumberofprovocativedirections,allowingtheclassdiscussiontogointosomeoftenmisunderstoodissuesaboutCSRingeneral.Theseissuesinclude:•CanCSRbecommercialized?IsitOKtobuildaprofitablebusinessaroundCSRactivities?•CanyouclaimtobeCSRcompliantwhenonlypartsofyouractivitiesare?•Canyoubeentrepreneurialintheworldofsocialresponsibility?
Thecaseissupportedbyextensivepedagogicalmaterial,includingextensiveteachingnotes,basedonrepeateduseinbothMBAandexecutiveeducationprograms.ItincludesaDVDcontainingtheoriginal2008NewYorkFashionWeekpresentation,astudiointerviewofNoirfounderandCEOPeterIngwersendiscussingallmajoraspectsofthebusiness,fromlaunchuntilJuly2009,andPowerpointpresentationsbyPeterIngwersenofhiscareerandaspirationswithNoir/IlluminatiII.
Favorite CasesCSRandsocialentrepreneurshipcanbeaddressedinmanydifferentways,somestandardsomemuchlessso.IpersonallylovetousetheWipholdcase,anotherprovocativecasesetinSouthAfricain1994,where4blackwomensetupaprivateequityinvestmentvehicleasanempowermenttoolfordisenfranchisedwomeninthetownships.Andsucceededtocreateoneofthelargestfinancialservicesfirminthecountry,developingnewproductsforthebottomofthepyramid.
4
“DowntownBetty–VancouverEcoFashionWeek–Day1–Feb232011”bySaltySoul.CreativeCommonsLicence.Attribution2.5Generic(CCBY2.5).
Winter2012Issue5|www.oikosinternational.org/academic
New Case DevelopmentLearningtakesholdbetterwhenstandardconceptsareportrayedinunusualsettingsorextremeconditions.Onlythencanyoureallyseethetrade-offsimplied,theparadoxesthathavetobedealtwith.Casesingeneraltendtobetoodescriptiveandpoliticallycorrect:forpedagogicalpurposes,thecasemethodneedscontroversyandextremepositions,notconsensualthinking.Casewritersshouldletthemselvesengagemorecontroversialcausesinlessfamiliargeographicalterritories…
5
Portland Roasting Company: Farm Friendly Direct by Madeleine Pullman
The Case StoryThiscasedescribestheissuesanddilemmasfacingacompanyintheireffortstodifferentiatetheirproductthroughasocialsustainabilityprogram.Overtheyears,thecompanyhasbuiltastrongreputationwiththeirsustainabilityefforts,particularlyamongsttheirpeersinthespecialtycoffeeindustry.Thereissomequestionastowhether
thisreputationhasbeenvisibletoconsumersandifconsumersseethevalue-proposition.Thecasecoversthehistoryofcoffee,thespecialtycoffeeindustry,thesupplychainandrolesofdifferentparticipants,andthecompetitivelandscape.Furthermore,mostofthecompetitiveeco-labelsandcertificationschemesarediscussed.Thereaderisaskedtodecidetheappropriatemethodforconveyingthecompany’ssocialsustainabilityeffortstothemarketplaceandbeyondthat,toconsiderhowonemightmeasureandmonitorsocialprogramsinthedevelopingworld.Thecaseisdesignedtohighlightdecisionsrelatedtomarketingandoperationsstrategy,prosandconsofcertification,andparticularlysocialsustainabilityversustheotheraspectsofsustainability.
“The discussion can begin with the core competencies of the company, Portland Roasting Company (PRC). While many students will argue that quality is PRC’s core competency, others will realize that their social sustainability program is their strong suit. ”
Teaching the CaseThiscasecanbeusedtoexaminethedifferencesbetweensocialandenvironmentalsustainabilityprogramsandhowtheseprogramsareconveyedtothemarketplace.Itwouldbeappropriateforastrategy,marketingorsupplychainmanagementclassinabusinessschoolorforafoodpolicyclass.Forastrategyclass,itcouldbeusedtoconveythepotentialcompetitiveadvantagethatcompaniesreceivefromsustainabilityprogramsandproducts.Foramarketingclass,thecasecanbeusedtocoverbrandingeffortsrelatedtosustainabilitycertification,marketsaturation,andmarketingmethodsforconveyingcredenceattributes(attributesofaproductnotreadilyconveyedtotheconsumerunlikepriceorquality).
Forasupplychainmanagementclass,thecasecouldhighlighttheroleofsupplychainstructureinthedevelopmentofsustainableproductlinesparticularlysocialsustainabilitywhichhasreceivedlimitedattentionoutsideofworkerissuesintheapparelindustry.
Thediscussioncanbeginwiththecorecompetenciesofthecompany,PortlandRoastingCompany(PRC).WhilemanystudentswillarguethatqualityisPRC’scorecompetency,otherswillrealizethattheirsocialsustainabilityprogramistheirstrongsuit.Mark,PRC’spresident,hasbeenveryinvolvedwiththeseactivitiessincethecompany’sinceptionandthecoffee’spremiumpricingisusedtosupporttheseefforts.Thenthequestionbecomes,ifsocialsustainabilityisthecompany’scorecompetency,howeffectivelyisthisconveyedtothefinalconsumers,andisthisanorderwinningattributeforconsumers?Finally,thestudentsareaskedtodecidehowthisattributecouldbeconveyedtoconsumers(throughvariouschoicesaroundcertification)and/orthroughdifferentmarketingchannels,promotions,oralternativemethods.Thecasecandrawonthefollowingframeworks:MarketingStrategy,SupplyChainStrategy,Social,Environmental,andEconomicSustainability,andCertificationPrograms&Eco-labeling.
Thesuggestedreadingstoaccompanythecaseforgraduatelevelinclude:1. Golan,E.,Krissoff,B.,Kuchler,
F.,Calvin,L.,Nelson,K.andPrice,G.(2004),“TraceabilityintheU.S.foodsupply:Economictheoryandindustrystudies”,Economic Research Service, U.S. Department of Agriculture,AgriculturalEconomicReportNo.830.
2. Gladwin,T.N.,Kennelly,J.J.andKrause,T.(1995),“Shiftingparadigmsforsustainable
Madeleine(Mellie)PullmanistheWillametteIndustriesProfessorofSupplyChainManagementatPortlandStateUniversity.Hermajorresearchinterestsincludesustainabilityandsupplychainmanagement,sustainablefoodandbeveragesupplychains,andexperientialservicedesign.Currently,sheisresearchingsocialnetworksofsustainabilityandfoodcooperatives.Sheisontheboardofseveralfoodnon-profitgroupsincludingUpstreamHealth,FoodAlliance,PortlandPublicMarket,andtheSlowFoodChapterofWallowaCounty.Sheworkswithmanyregionalsustainability-focusedfoodandbeverageproducers,distributors,andretailers.InadditiontoauthoringbooksonFoodSupplyChainManagement,ServiceOperations,andRestaurantDesign,herarticleshaveappearedinnumerousjournalsandperiodicals.
Madeleine Pullman
Winter2012Issue5|www.oikosinternational.org/academic
1
development:Implicationsformanagementtheoryandresearch”,Academy of Management Review,Vol.20No.4,pp.874-907
3. Jennings,P.D.andZandbergen,P.A.(1995),“Ecologicallysustainableorganizations:Aninstitutionalapproach”,Academy of Management Review,Vol.20No.4,pp.1015-52.
4. Kleindorfer,P.R.,Singhal,K.andVanWassenhove,L.N.(2005),“Sustainableoperationsmanagement”,Production and Operations Management Journal,Vol.14No.4,pp.482-92..
Favorite CasesAsIteachafoodsupplychainclass,thosethatteachafood-relatedclasssuchasfoodpolicyorfoodsystemswouldbenefitfromtheoikosawardwinningcaseBurgerville:SustainabilityintheSupplyChain(includedinthisissue)andCountryNatural
Beef(availablefromthePSUCenterforGlobalLeadershipinSustainability);bothofwhichcoverasimilarthemeofvaluechainsbuiltaroundsustainability.Additionally,Iusethesecasestohighlightotherissuesaroundsustainability,supplychaindecisions,andfood:CooperativeGroupFairTradeChocolate,McDonald’sCorporation:ManagingaSustainableSupplyChain,TheCage-FreeEggMovement,andRedTomato:KeepingItLocal.
New Case DevelopmentIwouldliketoseecasedevelopmentaroundtheinstitutionsthataremakinggreatstepswithsustainability,socialissuesandfoodpolicy.OneexampleofthismightbetheKaiserHealthCareGroupwhichisdoingsomegreatworkoncarbonfootprint-basedpurchasingdecisionsandobesitypolicy.Anotherexamplearethevarious
Case Purchase Information Inspectioncopyofthecase“PortlandRoastingCompany:FarmFriendlyDirect”isavailablefromtheonlineoikosCaseCollection.PleasecontactMelliePullmantoobtainlicensedcopiesofthiscase.
Winter2012Issue5|www.oikosinternational.org/academic
6
schoolsystemsandjailsinthewesternUSandEuropeancountrieswhicharetryingtobringinhealthierandmoresustainablefoodinalowcostandhighlypoliticizedenvironments.Additionally,thereareopportunitiestocoverfoodaidprogramsthataretryingtoencouragelocalpurchasingratherthandumpingcheapforeigncommoditiesinneedycountriestothedetrimentofsocialsustainability.
“EdenProjectCoffee”byTico24.CreativeCommonsLicence.Attribution2.5Generic(CCBY2.5).
7
Lululemon’s commitment to the environment: A tangle of seaweed, suppliers, and social responsibilityby Andrea Erin Bass
The Case StoryThiscasedescribestheeventssurroundingLululemonAthleticaInc.’s(Lululemon)VitaSeafabriccontroversy.LululemonwasanactivewearretailerbasedinVancouver,Canada.Thecompanywascommittedtotheenvironmentandsustainabilityefforts,asevidencedthroughitsmaterialsmanagement,selectionofsuppliers,andenergyefficiencyinitsbuildings.AnarticlereleasedbytheNewYorkTimesin2007challengedtheintegrityofLululemon’sVitaSeaproductline.Thearticlepurported,throughindependenttests,thattheVitaSeafabricdidnotcontainseaweed,astheproductlabelclaimed.Lululemonchallengedthearticlebyorderingitsownindependenttests,butbeforetoo
longfounditselfquestionedbytheCompetitionBureauofCanada.TheretailerwasforcedtoremoveclaimsontheVitaSeafabriclabel.Thecompanytookitscommitmenttotheenvironmentonesteptoofar,andmadeenvironmentalclaimsthatitcouldnotsupport.
Teaching the CaseLululemonwasattractivetomeasacasestudybecausethecompanyhadachievedremarkablegrowthinashortamountoftime.Initially,Iwasinterestedinthepathofgrowthforthecompany,andinsightintoany“growingpains”thecompanyhadexperienced.Shortlyafterinitiallysiftingthroughsomearchivaldata,IdiscoveredtheVitaSeacontroversy.MyearlyreactionwasdisappointmentinLululemon;however,astheevidencemounted,Idiscoveredthatthistopicwasn’tasblack-and-whiteasIhadoriginallysuspected.Manystakeholdersembodyingdivergentviewpointswererepresentedintheeventsthatsurroundedthecontroversyin2007.Iwantedtowritethecaseinawaythatparalleledmyresearchexperience,sothequestionbecame,“HowdoIwriteacaseinwhichtheresolutionbecomesmoreelusiveasthestorydevelops?”
Thiscaseisappropriateforuseinbothundergraduateandgraduatelevelcoursesinstrategicmanagement,marketing,andbusinessethicsandsocialresponsibility.Withinaclassonstrategicmanagement,thiscasecanbeusedtodiscusshowtoapproachsynergisticproblemswithmarketing,suppliers,andnegativepublicity.Instructorsmayfindthatinthebeginningofcasediscussion,studentsfeeltheresolutionstotheseproblemsareveryclear;however,asdiscussionensues,theresolutionstotheseproblemsbecomelessclearandmoreindefinable.Similarly,
inabusinessethicsandsocialresponsibilityclass,discussionwilllikelycirclearoundtheconflictingconstraintsexperiencedbyfirms;orhowtocreateafeasible,realistic,verifiablecorporatesocialresponsibilityinitiativethatisrepresentativeoftheentirebusiness(includingthesuppliersthatareusedandthemarketingeffortsthatareemployed)?Regardlessofthecourseinwhichthiscaseisused,thepurposeistoillustratehowacompanycanbecomeoverzealousinitscommitmenttosustainabilityandsocialresponsibility,withoutbeingabletosubstantiateitsclaimsoractionswithverifiableinformation.
“The company took its commitment to the environment one step too far, and made environmental claims that it could not support. ”
Thiscasecanbeusedingroupworkoronanindividualbasis,andshouldtriggerquestionsaboutethicsinmarketing,supplierselection,andthenegativeresultofacompany’suseofpublicimagetotakeadvantageofcustomers.Thecasecanalsopromotediscussionoffactorsassociatedwithemployinganenvironmentally-consciousinitiative,orusingsustainabilityinCSRandmarketingefforts.
Thecaseshouldtakeapproximatelyonehourforreviewanddiscussion,withanadditionalhalfhourtoanhourforideasregardingLululemon’snextsteps.
Moststudentswillhavepersonalexperiencewithathleticapparel,butmaynotbefamiliarwithLululemon.Studentsmaynothavethoughtmuchaboutthedifficultiesassociatedwithadoptingastrongcorporatesocialresponsibilityinitiativeandthegreyareathatsurroundssustainabilityasapplied
AndreaErinBassisaDoctoralStudentinManagementattheUniversityofNebraska.AnativeofCanada,herresearchisdirectedatbothstrategyandentrepreneurshipincomplexenvironments.Erinhasexperienceteachingstrategicmanagementandorganizationalbehaviouratboththeundergraduateandgraduatelevel.Private-sectorexperienceintheenergyindustryinfluencesherresearchquestionsandhersubsequentinterestintheroleofstrategyinenergyandsustainability.
Andrea Erin Bass
Winter2012Issue5|www.oikosinternational.org/academic
88
Case Purchase Information Inspectioncopyofthecase“Lululemon’scommitmenttotheenvironment:Atangleofseaweed,suppliers,andsocialresponsibility”isavailablefromtheonlineoikosCaseCollection.PleasecontactAndreaErinBasstoobtainlicensedcopiesofthiscase.
toorganizations.Thiscaseprovidesstudentswithanopportunitytoexaminethechallengesafirmcanfacewhenitscommitmenttosustainability,theenvironment,orsocialresponsibilityisquestioned.Onewaytointroducethisconcepttostudentsistobegintheclassbyaskingthestudents,“Howimportantisacorporatesocialresponsibilityinitiative?Howimportantissustainabilitytocompanies?”Questionssuchastheseserveasicebreakersandtheinstructorcanquicklymoveontomoreanalyticaldiscussionquestions.
Thecaseinvolvesmanydifferentplayers:Lululemon,SmarfiberAG,the New York Times,andtheCompetitionBureauofCanadaamongothers.Ifaroleplayisdesired,theclasscanbedividedintostudentgroups.Duringclassdiscussion,eachgroupcan
representagroupofstakeholdersandsubsequentlyraiseconcernsorsupportrelativetothatgroup.
Favorite CasesIreallyenjoy“SoYouWanttobeaSocialEntrepreneur:StartingOut,ScalingUp,StayingCommitted”byMichaelGordonfromtheoikosCaseCollection.ThiscaseisreallyinterestingandIthinkportraystheimportanceofsocialentrepreneurshipincreatingaviablefutureforourworld.FromoutsidetheoikosCaseCollection,thecase“MicrofinanceandtheKipsigisofSouthwestKenya”,byGlennBropheyandRobinWiszowaty,isagreatintroductionforstudentstotheimpactofmicrofinance.Iwantstudentstowalkoutofmyclassfeelingthattheyhavethepotentialtomakeadifference,andbothofthesecasesserveasastartingpointforinspiration.
“AskAYogi–4”byLululemonAthletica.CreativeCommonsLicence.Attribution2.5Generic(CCBY2.5).
Winter2012Issue5|www.oikosinternational.org/academic
New Case DevelopmentIambiasedtowardstrategyandentrepreneurship,butIwouldliketoseecaseswrittenaboutwhatthe“littleguys”inenergyaredoing.We’veallreadthecasesaboutExxonandShell,nowit’stimetoseewhatsomeSMEsintheenergyindustryaredoing:Aretheyfocusingonnewtechnologies,alternativesourcesofenergy,or,fromamorecriticalperspective,aretheytheonesthatarepullingtheheavyhitterslikeExxonandShellawayfrom“what’snext”?Iwouldalsoliketoseecasesonmicrofinanceinstitutions.UsuallyweseecasestudiesonthepeopletheseMFIshelp–butwhatabouttheMFIsthemselves?Ifwecanusebusinessandentrepreneurshiptodecreasepovertylevels,wouldn’tthatbeagreatthingtobothresearchandteach?
9
Burgerville: Sustainability and Sourcing in a QSR Supply Chain by Darrell Brown
The Case Story Thiscasedescribesissuesfacedbyacompanyattemptingtoinstillitsculturalvaluesinitsoperationalpractices.Burgerville’slong-heldvaluesarecompatiblewiththesustainabilityonavarietyofdimensions.Thecompany’sslogan“Fresh.Local.Sustainable.”introducesanumberofincompatiblegoals.Asthecompanyattemptstoliveuptoandintoitsvalues,ithasnegotiatedthroughanumberofdifficultsustainability-orienteddecisions.Thecasesetsupanotherdecisionbydiscussingtheearlierdecisionsandidentifyingthe
conflictingsustainabilityattributesofdecidingwhereandhowtosourceaprimaryingredientonitsmenu,chicken.
Burgervilleworkswithitssupplierstopromotesustainabilitygoalsthroughoutthesupplychain.Asthecompanyattemptstoaddressconflictingsustainabilityissues,theprotagonistmustweigheconomic,environmentalandsocialissuesinthesupplychain.Overtheyears,thecompanyhasbuiltastrongreputationwiththeirsustainabilityefforts,towhichtheyattributetheabilitytoweatherdifficulteconomictimesasapremiumparticipantinatraditionallycost-basedindustry.Thecasehighlightsdecisionsrelatedtooperationsstrategy,includingissuesofcounter-balancingpotentiallyconflictingsustainabilitygoals,theabilitytomaintainpricepremiumsduetopositivereputationandquality,andtheabilitytoinfluencethesupplychainbeyondthereachofthecompany.
Teaching the CaseThecasecanbeusedtoteachthefollowingfocusareas:BestPracticesintotheSustainableSupplyChain,SupplyChainStrategy,Social,Environmental,andEconomicSustainability,CertificationAlternatives,andLocalsourcing.ThecasecanbetaughtaspartofaMBAOperations/SupplyChainManagement,MarketingorStrategyclass.OurschoolhasafoodcertificateprogramandasupplychainmajorsowehaveuseditintheFoodPurchasingandLogisticsclass,butitcanbeintegratedintoatraditionalpurchasingclasstoo.
Thiscaseintroducesawiderangeofsustainability-orientedissues,fromtreatmentofmigrantfarmworkerstosupportoflocalproductiontoenvironmentalandsocialcertificationstoenvironmentalimpactsoffoodtransport.Theprimaryfocusofthecasetendstobeinternal,asthecompany
attemptstoensurethatitsvaluesaremanifestedinitsactions.Thereareclearlyexternalramificationsoftheseactions,however,bothinimpactsonthesupplychainandonthereputationofthefirmintheeyesofitspartnersanditcustomers.Thecaseisappropriateforstrategy,marketing,andsupplychainmanagementclasses.
“This case introduces a wide range of sustainability-oriented issues, from treatment of migrant farm workers to support of local production to environmental and social certifications to environmental impacts of food transport. ”Forastrategyclass,thestringofsustainability-orienteddecisionsprovidesfodderfordiscussingthealignmentofcorporatevisionandmissionwithstrategicactions.Theultimatedecisionfacedbythecompanyprovidesstudentsanopportunitytoconfrontarealsituationwherethealternativesallhavepositiveandnegativesustainabilityimpacts.
Thecompany’sdecisionshaveimplicationsforitsreputationalongthesupplychainandintheeyesofcustomers.Foramarketingclass,thecasecanbeusedtoconsidertheimpactsofthesedecisions,andfuturedecisions,onaconsumerbasethatistraditionallyconsideredtobeuninterestedinsustainability.
Forasupplychainmanagementclass,thecasehighlightstheroleofasignificant,butnotdominant,companyanditsabilitytoinfluencesustainabilityallalongthesupplychain.Thecaseintroducesissuesofworkerrights,environmentalfootprint,andlocaldevelopment.Theseissuesplayoutonseveraldimensionsasthecompanymustmakedecisionsaboutwhichsustainabilityattributeitwillsupport.Asthecompanydevelops,italsoinfluencesitssupplychain
DarrellBrownistheLesFahey/KPMGAccountingFellowandaFellowintheInstituteforSustainableSolutionsatPortlandStateUniversity.WithaB.S.inforestryandaPh.D.inaccounting,Dr.Brownteachesandresearchesattheintersectionofbusinesssustainabilityandmeasurement.Heteachesmetricsforunderstandingandreportingthesocialandenvironmentalimpactsoforganizations,andtheoddmanagerialandaccountingsystemclass.Hiscurrentresearchinterestsincludemeasurementissuesrelatedtoorganizationalimpactsonsocialandnaturalsystems.Specifically,heisinterestedinhoworganizationalreportingpracticesinfluencesustainability-orientedbehaviors,bothinternallyandexternallytotheorganization.
Darrell Brown
Winter2012Issue5|www.oikosinternational.org/academic
10
partners,creatingleverstochangethesustainabilitybehaviorsofitspartnersaswell.
TheoveralldiscussionofthecasecouldstartwithanarticulationofthevaluesthatBVhascarriedwithitthroughoutitsexistence.Thediscussionoftenthenleadstohowandwhetherthesevaluesandtheirmanifestationsinthebusinessmodelreallydocreateacompetitivead-vantageinthismarketplace.
Favorite CasesThereareanumberofgoodcasesthatbridgesupplychain,marketingandstrategy.ThePortlandRoastingCompanyoikosawardwinningcase(alsodiscussedinthisissue)isagreatcaseforlookingathowthese3functionalareasinteracttobothcreatechallengesandopportuni-tiestoconveysociallysustainableattributesforadirecttradecoffee
importerandroaster.Forinstruc-torslookingforsomewellknowncompanieswithexcellentsustain-abilitystrategies,frameworks,andcrossdisciplinaryissues,Isuggest“Cradle-to-CradleDesignatHermanMiller:MovingtowardEnvironmentalSustainability”and“Patagonia”.
“In the industry of ‘burgers, shakes, and fries’, the ability to have a business model that looks, from the outside, just like a host of competitors, and can maintain a significant price premium over the competition is rare.”
New Case DevelopmentManyofthecompaniesthatwewriteaboutaresmallercompanieswithsolidsustainabilityvaluesystemsandtrytointegratethesevaluesinalltheirprogramsandproducts.Ontheotherhand,itis
importanttolookatwhatsomebiggercompaniesaredoingandthentoquestionhowtheproductmightconflictwiththecompany’sattemptstoaddsomesustainabilityprogramstoimprovetheirimage.Maybethisisthe“broken3leggedstoolofsustainability”?ExamplesofthesecouldbeCoca-ColaorcompanieslikePampers.Pampers’“CarryingforBaby’sAroundtheWorld”programisacharitable,socialmissionorientedprogramwhichislaudedbuttheproductitselfcontinuestocausemassiveenvironmentalproblems.Similarly,Cokehasrecentlystartedresourceconservingefforts(waterandenergy)butthebeveragecontributestohugesocialproblems.AnotherinterestingcasepossibilitywouldbetolookattheSistersofSt.FrancisandtheirmethodofforcingsocialchangewithMcDonald’s,Kroger,WellsFargoandmanyotherpubliclytradedfirms.
Case Purchase Information Inspectioncopyofthecase“Burgerville:SustainabilityandSourcinginaQSRSupplyChain”isavailablefromtheonlineoikosCaseCollection.PleasecontactDarrellBrowntoobtainlicensedcopiesofthiscase.
10
Winter2012Issue5|www.oikosinternational.org/academic
News
ecch: Advanced Case Method Workshop
26-27 March 2012Venue:IMDSwitzerland
Ledbyaward-winningcaseauthorandteacherKamranKashani,thisworkshopforexperiencedcaseuserswillbeacasestudyoncaseteachingandwriting.Thefundamentalprinciplesofeffectivediscussionleadershipwillbeexploredanddifferentapproacheswillbeassessed.Theworkshopwilldiscussthecasedevelopmentprocessandhowtodesignaneffectivecasebasedcourse.
Theworkshopwillbeofbenefittoawideaudience,including:(1)caseteachersandwriterskeentoimprovetheirperformanceandrefreshtheirskills;(2)facultyandtrainerswhohavetaughtwithorwrittencasesbutneverreceivedanyformaltraining;(3)thosefromanysectorordiscipline.Fees:£495/€645non-residential.Feesincludecoursematerialsandlunch.ecchmemberorganisationsreceive10%discount.Moreinformationontheecchwebsite.
The Future of Fashion @ CasePlace.org
CasePlace.orgputtogetheracollectionoffascinatingcasestudiesandotherteachingmaterialsontheFutureofFashion.ThisTeachingModuleusesthecontextofthefashionindustrytodiscusstopicsthatareshapingthefutureofallindustries.Thesetopicsincludesustainableresourcemanagement,thechallengesandopportunitiesofglobalgrowth,workforcemanagement,andtheroleofethicalconsumptioninbusiness.MoreinformationontheCasePlace.org.
10
Winter2012Issue5|www.oikosinternational.org/academic
11
Winter2012Issue5|www.oikosinternational.org/academic
StairClimbing”byLululemonAthletica.CreativeCommonsLicence.Attribution2.5Generic(CCBY2.5).
11
12
www.oikosinternational.org/academicbe informed, get involved, make a difference
ContactWewouldliketohearyourexperiencesofteachinginnovativecorporatesustainabilityandsocialentrepreneurshipcases!Ifyouhaveanysuggestionsforimprovingthisperiodical,orinformationyoumaywanttosharewiththecommunityofcasewritersandinstructors,wewouldappreciateyourfeedback.Pleasesendusanemailat [email protected] orgiveusacallat+41712242698.
To subscribe:Tosubscribe,pleasefeelinanonlineform.Shouldyouwishtounsubscribe,[email protected].
Partners:
“Ilovelulu”byLululemonAthletica.CreativeCommonsLicence.Attribution2.5ic(CCBY2.5).
©oikos;D
esignbyoikos,K.Negacz