Highlighting the successful implementation of a sustainable large-scale residential development that defied powerful Hurricane Ian, this case focuses on Sydney Kitson and his sustainable real estate development company - Kitson & Partners - and how the firm is handling Florida's situation. Detailing the combination of government intervention, market demand, and business opportunity, this case provides insight into the business reasons to pursue sustainable practices. The case describes the current effects of climate change in Florida, specifically analyzing its impact on housing development, as both population and the risk of storm damage increase. The goal of the case is for students to realize that business is not always the problem but, in many cases, the solution for many of our environmental problems. The class discussion aims to help students better understand the factors that allowed Kitson to be successful and how there is opportunity for similar business ventures in the future.
"Patagonia has long been a revered company in the world of outdoor gear, and environmental and social sustainability. Known for pushing the bounds of what it means to be a mission-driven organization, the company has challenged the status quo of consumerism. A key initiative early on in Patagonia's journey was its now-famous Common Threads Initiative and accompanying ad campaign to inspire customers to reduce unnecessary consumption. (Ironically, the extraordinary "Don't Buy This Jacket" ad was followed by increased sales.) Patagonia followed that with another program contrary to the typical clothing business: the company began providing significant resources for responsible care, repair, reuse and resale, and recycling at the end of a garment's life. Patagonia further questioned consumerism with a form of refusal. In April 2019, it stopped co-branding apparel with companies and organizations in certain industries, including finance. In April 2021, Patagonia took this policy one step further and announced it would no longer allow any companies' logos to be embroidered on its clothing. The company said non-removable logos reduced the lifespan of clothing because such garments are less likely to be worn beyond the time of employment, regifted, or passed on to someone else. This case takes place in May 2023, a few years after the new logo policy was announced. Students assume the role of the fictional vice president of global sales to develop a sales strategy based on the impact of Patagonia's business model that includes a unique refusal strategy."
"This case is set in August 2021, eight years after the Rana Plaza collapse in Bangladesh, which remains the deadliest fashion-garment incident to date. The case's central issue: What is the most effective way for the major fashion retailer H&M to ensure safety for workers within its supply chain? This is explored from the point of view of H&M's fictional head of sustainability, Kristina Nilsson. Questions that Nilsson must address include: Should H&M re-sign the existing International Accord for Health and Safety in the Textile and Garment Industry ("International Accord"), an about-to-expire, multi-company pact to ensure factory safety? What are alternatives to the International Accord? What internal and external factors are at play that must be considered? How can Nilsson and other executives prove that H&M is a leader in social and environmental issues? This case study is an educational tool that highlights the concepts of corporate social responsibility and ethics as they relate to supply chain management issues such as subcontracting labor to Global South countries and worker's rights in terms of health, safety standards, and living wage."
This case explores the debate over which sustainability philosophy should drive a corporation's strategy: circular economy, green growth, or degrowth. The case uses IKEA and its enormously successful "fast furniture" business model to illustrate several potential strategies for increasing sustainability. The strategies relate to the concepts of enterprise integration of sustainability-companies "being less bad"-and market transformation-companies "doing more good." The case describes IKEA's sustainability efforts to date and areas for expansion, including its: 1) line of circular products; 2) forest stewardship roles; 3) secondary market program; 4) experiments with a furniture rental model; and 5) product servicing efforts. Also explored is IKEA's option to discourage consumerism directly and publicly, in line with a degrowth mentality. Students are asked to consider whether IKEA can decouple its resource use from growth, or alternatively, whether IKEA can remain profitable while selling less.
In a little over a year, more than 6,500 workers at over 250 corporate-owned Starbucks stores had voted to unionize with Workers United. The former CEO, Kevin Johnson, retired unexpectedly in April 2022 after weeks of increasing pressure from investors as the unionization effort grew. Starbucks Founder Howard Schultz was then named interim CEO and he went on to make numerous statements against unionization and visited many Starbucks locations in an effort to curb unionization efforts. The next CEO, Laxman Narasimhan, was taking charge in April 2023, and Schultz would be his advisor through the rest of the year and remain on Starbucks' Board of Directors. How Narasimhan managed the unionization efforts would be critical to his future at Starbucks. The case's fictional protagonist, the employee relations advisor, is assigned to counsel the corporation's new CEO on how to respond. The protagonist, who started at Starbucks as a barista, can see many sides of the situation and is well aware that corporate leadership has resisted unionization, and knows that what comes next could be critical for Starbucks' future.
Tony's Chocolonely is a Dutch chocolate company that prides itself on using slave-free labor within its supply chain. However, after it was revealed that the company's major supplier, Barry Callebaut, used child and slave labor to grow and harvest cocoa beans, Tony's Chocolonely was heavily scrutinized and the grassroots organization Slave Free Chocolate removed Tony's from its list of ethical chocolate brands. In early 2022, The Times of London reported child labor in Tony's supply chain. Responding, Tony's Chocolonely thoroughly explained how it paid extra to keep its cocoa beans ethically grown and turned into chocolate. However, some critics still believed the company's branding to be misleading. Later that year, Tony's Chocolonely achieved a higher B Corp rating and announced a partnership with Ben & Jerry's. The fictional protagonist is an advisor to the head of impact at Tony's, Paul Schoenmakers. She is tasked with presenting an end-of-year analysis of Tony's strategy and goals for the next year, causing her to reflect on the highs and lows the company has recently experienced and how these events and reactions should inform its social impact initiatives and branding strategy moving forward.
In 2018, BlackRock CEO Larry Fink wrote a surprising letter to CEOs across the country stating "to prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate." Now BlackRock is facing pressure from a variety of stakeholders. Republican legislatures are cutting their states' investments in BlackRock funds, saying that the firm's "woke investing" is damaging their states' economies. Environmental groups are protesting that BlackRock is not divesting quickly enough from nonrenewable energy sources. Individual and institutional investors alike are confused by the lack of clear criteria for environmental, social and governance (ESG) funds, and analysts question whether ESG investing is sufficiently profitable. Students are tasked with helping the CEO regain control of the narrative, and advising where BlackRock should position itself next.
Zingerman's in Ann Arbor, Michigan, began operations as a corner delicatessen selling sandwiches. It grew to become a community of ten businesses, establishing itself as a local favorite and a nationally known achiever. This case analyzes factors that Mark Fate-a recently promoted purchasing manager for Zingerman's Deli-is considering as he determines how to transition from using traditional plastic and paper packaging to more sustainable packaging alternatives, both in-house and for take-out. The case delves into the details of current and alternative packaging materials used in the food industry, highlighting the benefits and shortcomings of each. It then transitions to considerations regarding Fate's proposal, emphasizing aspects that are imperative for Zingerman's in making such a change. Overall, the case encourages students to consider the factors and challenges Fate faced in his efforts to integrate more sustainable packaging while enabling Zingerman's Deli to continue as a profitable business that satisfies both customers and employees.
Mandalay Homes, a home builder based in northern Arizona, is a market leader in energy efficiency based construction. The company is now at a crossroads for developing a strategy for the future. Internal leadership is in agreement that quality is better than quantity and wants to focus on innovations to further push the market forward toward sustainability. The case introduces students to the residential construction industry, climate change as it relates to construction, energy efficiency standards and certification programs, renewable energy market principles, the green construction industry, and potential innovations within the residential construction space. The case outlines the proverbial wall that Mandalay is approaching in terms of the improvements that can be made to sustainable homebuilding withing the current paradigm. The company has identified three frontiers within which Mandalay Homes can allocate priorities: (1) resource management, (2) prescriptive vs. performance-driven building standards, and (3) newer options for building sustainable homes and communities.
A year of political turmoil, capped by the violent insurrection at the United States Capitol on January 6, 2021, presented new challenges to many corporations, including AT&T. The telecommunications giant's efforts to influence legislation and government administrators on topics from net neutrality to potential mergers had always been political, but expansion of the company's political activism to encompass subjects outside of telecommunications in recent years had brought additional scrutiny from customers, legislators, and, increasingly, employees. Corporate statements in support of social justice based on race, gender, and sexuality had raised questions about the company's political donations to candidates expressing policy preferences running counter to these values. The violent protests at the Capitol, which threatened the peaceful transition of power between presidential administrations, brought AT&T's political activity under fire once again. AT&T had strong lobbying relationships with many members of Congress that had objected to the election results and had even made political action committee (PAC) contributions to 98 of their campaigns. As the vote tallies and political donations came to light the next day, the company needed a plan to navigate the tense situation. Fictional protagonist Iyanna MacGregor, the top aide for AT&T's executive vice president for external and legislative affairs, was responsible for drafting AT&T's public statement and strategic political positions for the new Congress, set to take office in conjunction with the new presidential administration a few weeks after the insurrection events on January 6. It was essential for MacGregor's strategy to address whether and to what extent AT&T would continue to interact with various governmental actors, particularly the members of Congress who had attempted to undermine the democratic process.
This case follows the decision-making of Connie Ovalspot, fictional head of human resources at Squarespace. Ovalspot is being called on to advise the CEO and board members on how to address white supremacy on the company's platform following a domestic terror attack in Charlottesville, Virginia, in August 2017. After the event, employees reached out to Squarespace executives to protest the existence of extremist and hate-related groups on the company's platform. They asserted that Squarespace had a responsibility to remove these profiles. Ovalspot is tasked with determining the most appropriate and prudent course of action, including drafting a corporate response to the Charlottesville tragedy. This case examines the intersection of a firm's responsibility to its strategy, employees, customers, and values, viewed through both a legal and social lens.
In October 2021, the fictional vice president of supply chain sustainability at Tesla is working on finding the best way to achieve Tesla's goal of 100% recycling for the batteries in its electric vehicles (EVs) as they reach their end of life. A major challenge in this effort is that the current global capacity for lithium-ion recycling is in a nascent stage. Although the immediate need is relatively low since almost all batteries in present-day EVs have a lot of life left, by 2030 there is a forecasted need for about 1.2 million pounds of batteries to be recycled each year. Also by 2030, the first two million Tesla vehicles will be between 10 and 18 years old, meaning that hundreds of thousands of those are likely to have left the road and required decommissioning. Further complications are the general need for lithium-ion batteries to be recycled due to their high content of toxic and heavy metals; the fact that some substances in the batteries are conflict minerals; and the requirements and expectations for Tesla regarding environmental, social, and governance (ESG) compliance and investing. The case introduces students to the history of EVs, the components of EV batteries and the battery supply chain, the process for EV battery recycling, and a general overview of ESG, as well as how it applies to Tesla.
When Donald Trump announced his run for president in 2015, he placed immigration front and center in his campaign. He promised to drastically expand U.S. Immigration and Customs Enforcement (ICE), end Deferred Action for Childhood Arrivals (DACA), and build a border wall between the United States and Mexico. Immigration quickly became a critical and divisive issue in the 2016 presidential campaign. This case places students in the role of a fictional partner at McKinsey & Co. who must determine whether to pursue a multimillion-dollar contract extension with ICE. The potential extension comes in the weeks after Trump began pursuing a "zero-tolerance" border policy, which led to the separation of almost 3,000 children from their families in the span of a few weeks. The policies resulted in an international outcry, making the question of the contract extension controversial, even before a prominent New York Times article drew attention to McKinsey's previous questionable work with another country's government. The protagonist must weigh public perception, potential profits, staff morale, McKinsey's reputation among its other clients, and her own career advancement as she decides whether to extend the contract.
This case explores the economic, cultural, and environmental implications of the creation of the Kraken, the National Hockey League's (NHL) newest expansion team in Seattle, Washington. It follows the responsibilities and decisions facing brothers Tod and Tim Leiweke, the former Kraken's CEO, and the latter a founder of the Oak View Group, a development and investment company for sports and entertainment that owned and redeveloped the Kraken's arena. Newly tasked by Amazon with making the Kraken's new home, Climate Pledge Arena, go carbon neutral, the Leiwekes faced their greatest challenges yet: achieving what no other sports arena had accomplished in sustainability, controlling the costs of doing so to ensure continued profitability, and maintaining their reputations as competent leaders in managing national sports teams and venues. The case presents the increasing focus on sustainability by national sports leagues and the NHL in particular. With Seattle as the setting for this bold endeavor to be carbon neutral, the case describes the financial commitments and early outcomes involved in achieving it, and the long-term reporting requirements to which the Leiweke brothers were bound to ultimately demonstrate their success.
This case describes Salesforce's development of Sustainability Cloud, a suite of software tools built to help companies measure, track, and report carbon emissions and other sustainability metrics. The goal of this case is to provide students with a background and foundational knowledge of three topics: software as a service (SaaS); environmental, social, and governance (ESG) standards; and carbon accounting. The case places students in the role of the fictional Salesforce vice president of sustainability, who is deciding whether or not to recommend the development and launch of Sustainability Cloud 2.0. She is pondering many issues. Since Salesforce was able to become a world leader in SaaS software, could it become a leader in sustainability software, as well? After analyzing the decision at hand, students should be ready to meet with Salesforce executives and make a recommendation about next steps for the company's sustainability software products.
This case describes TerraCycle's history as an innovative recycling platform and focuses on the business model of its newest endeavor, Loop. After significant growth of TerraCycle and successfully orchestrating recycling solutions for hard-to-recycle materials through relationships with sponsor brands, logistics companies, and recycling processors, Loop was launched to address the global waste crisis at the root level. The key insight upon which Loop's value proposition was built is the notion that no one needs or wants to own the containers their goods were packaged in after the product has been used. With inspiration from the traditional milkman concept, Loop set out to leverage its extensive brand network and logistics relationships to orchestrate a reuse model.
This case investigates LaCroix sparkling water and its connection to perfluoroalkyl and polyfluoroalkyl substances (PFAS), as a study of chemical compounds in carbonated beverages has captured the public's attention. At the time of this case, PFAS were not heavily regulated, but the media coverage and body of research surrounding this class of chemicals suggested state and federal rules were on the horizon. The protagonist is Josephine Hudson, a fictional character with the title of president of customer satisfaction for National Beverage, LaCroix's parent company. She must address many questions including: Was there anything that could be done to remove the PFAS in LaCroix? If so, would this increase costs for production as well as the price for the end-customer? Was the company at risk of any legal challenges?
Interface has been a leading innovator in the carpet industry, specializing in the manufacturing of carpet tiles for commercial flooring. This case describes the history, context, and technology behind the company's development of its newest sustainable innovation-carbon negative carpet tiles. Interface began pursuing a path of bold sustainable initiatives in 1994 when Founder and CEO Ray Anderson, confronted by an employee, had a realization of the company's negative environmental impact. The company then began moving toward a carbon neutral future, through carpet recycling and leasing programs, transparent emissions reporting and new carbon storing materials. This case uses Interface's story to: explore the context and motivations for companies pursuing environmental goals such as carbon negativity; present the transparency and reporting dynamics within the realm of carbon accounting; and contemplate the stakeholder dynamics created by these decisions. The primary dilemma is whether Interface made the correct decision in launching its carbon negative carpet tiles, given these different factors.
Environmental racism describes the unequal burden of environmental hazards placed on disadvantaged communities through systems, policies, and practices. In such a situation, these people disproportionately live close to sources of toxic waste-what are referred to as Locally Unwanted Land Uses (LULUs) such as sewage works, mines, landfills, power stations, major roads, and other emitters of airborne, earth, and water pollution-and suffer from greater rates of health problems, as a result. More than a quarter of Marathon Petroleum's 13 refineries are located in minority-majority communities. Marathon Petroleum's Detroit refinery is located in the ZIP code 48217, where around 80% of residents are Black, 12% are Hispanic, and over 40% are considered to be in poverty. These residents also have higher rates of asthma, heart diseases, and lung cancer than in most other ZIP codes in Michigan. This case places students in the role of fictional character Riley Novak, Marathon Petroleum's chief environmental officer, to examine the company's history with environmental racism, especially in Detroit, and the proposed solution-the Property Purchase Program.