Global furniture giant Inter IKEA Systems B.V. (IKEA) announced its intent to become a circular and climate-positive business by 2030. In order to achieve these goals, the company had to find ways for consumers to cycle end-of-life products back to its facilities. IKEA was implementing this process—known as reverse logistics—via international sell-back and leasing programs. It was unclear, however, if the company’s efforts would be enough to make its operations sustainable. Additionally, the question remained as to whether IKEA was truly focused on sustainability and responsibility or if it was simply attempting to maximize customer lifetime value.
Innovative US apparel retailer Everlane Inc. (Everlane) employed "radical transparency," disclosing detailed information about the costs it incurred and the factories that manufactured its clothes. The company also claimed to prioritize ethics and sustainability. For example, Everlane committed both to supporting its suppliers by addressing their needs and to eliminating virgin plastics from its entire supply chain by 2021. The company's approach had been successful: since its founding in 2010, Everlane had seen growth in its customer base and revenues. However, in 2020, the company faced a public relations crisis, encountering backlash after laying off a number of employees. While these layoffs were purportedly due to the economic effects of the COVID-19 pandemic, they coincided with employees’ unionization efforts. In addition, many former employees reported that the company was not, in fact, ethical but was anti-Black and anti-union and had a toxic internal culture. As the company had built its business on its image and its promise of ethics, transparency, and sustainability, the crisis called into question the foundation of the organization. How could Everlane move forward according to its stated values and continue to both meet the needs of its customers and to earn a profit?
In 2020, the legal cannabis industry in the United States was emerging. One large player in the nascent industry was Canopy Growth Corporation (Canopy Growth), a cannabinoid company based in Smiths Falls, Ontario, that grew cannabis and managed a range of cannabis-related brands. In September 2020, Canopy Growth announced a partnership with Martha Stewart that entailed the development of a mix of cannabis edibles and oils for wellness sold under the name Martha Stewart CBD. Although the legal cannabis industry held tremendous promise, there were a wide range of unique challenges associated with selling cannabis products, including regulatory and policy issues, stigmas associated with illegal cannabis, and other more typical issues associated with selling new products such as the need for consumer education. The partners would need to consider how consumers would respond to the Martha Stewart CBD offerings, what specific obstacles they would have to overcome, and what market segment(s) and products they should prioritize.