The mobile phone industry is notorious for its lack of sustainability. Fairphone started as a campaign to draw attention to 'conflict minerals' and the plight of tantalum miners. It became a social enterprise by launching its first 'fair phone', the FP1, with conflict-free tantalum. The FP2 was more broadly sustainable, with a five-year lifespan, replaceable parts, and recycling of old handsets, but it was expensive and appealed mostly to die-hard 'dark greens' who valued sustainable living over functionality. When Eva Gouwens joined as CEO in 2017, she was charged with making Fairphone more commercially oriented, while staying true to its ESG mission. The case describes the changes made and the make-or-break product launch of the FP3. Despite positive initial results, Fairphone had some way to go to turn the FP3 not only into a commercial success but an example to the rest of the industry. https://publishing.insead.edu/case/fairphone-3-commercializing-radical-sustainability
Do we have to completely change the way we eat to save the planet? If so, can business lead the way? Case protagonist Sandhya Sriram, a Singapore entrepreneur, is attempting to do just that. With a cofounder, she launches a start-up to 'grow' shrimp meat by replicating cells in a lab setting as an alternative to aquaculture settings that pollute the ocean. The case takes students through the challenges and risks of launching a start-up with an ambitious goal - to re-invent food production. In 2021, an opportunity arises to acquire another Singapore start-up - this one working on lab-grown beef. Sriram must decide whether to double down on her investment in cell-cultured meat. Is lab-grown meat a sustainable alternative to aquaculture settings and factory farms? Can the venture be scaled up enough to make a profitable business? Students can be asked to step into the founders' shoes and also to analyze the case from the perspective of a socially responsible investor.
Companies need a plan of action if they are to meet their moral and business obligations in the event that their operations intersect with labor abuses or other human rights violations. The article explains different types of abuses and provides a framework for understanding a company's exposure to reputational risk. The authors also map out a decision tree that can help managers work out potential courses of action and their implications.
Without action on sustainability, the supply of cocoa beans - and hence chocolate - cannot be maintained. Barry Callebaut (BC), the world's largest B2B cocoa and chocolate company, has gone from taking little interest in "sustainable cocoa production" to embracing it fully. In 2016, it set four ambitious targets to achieve by 2025: to eradicate child labour from its supply chain, to lift more than half a million cocoa farmers out of poverty, to become carbon-and-forest-positive, and ensure 100% sustainable ingredients in all products. Recognizing that it could not bring about change in isolation, BC started a movement, "Forever Chocolate", involving multiple stakeholders. Demonstrating that sustainability must be an integral part of doing business, the case describes its progress over the first two years and illustrates the difficulties encountered. It challenges students to consider whether BC's approach constitutes "radical corporate sustainability" and what more could be done.
After years building a solid customer base by cross-selling its financial service offerings, Wells Fargo was engulfed by a scandal over unauthorized accounts opened in customers' names. Regulators discovered that hundreds of thousands of fake accounts had been opened by bank employees scrambling to meet sales quotas. Was it the work of rogue employees, or the result of an unethical corporate culture coupled with an unrelenting drive to "sell, sell, sell"?
Supplement to case IN1598 This case puts participants in the shoes of the directors of Barry Callebaut (BC), a cocoa-sourcing and chocolate manufacturing company. Chairman Andreas Jacobs is passionate about cocoa sustainability in West Africa - ensuring the cocoa crop (endangered by poor farming and climate change) and the farmers who grow it will survive and thrive. However, in response to a falling share price, the BC board has shifted strategy to achieve cost leadership. Moreover, customers have been unwilling to pay a premium for sustainable cocoa beans. Given the scale of the problem, the company cannot 'go it alone'. Nonetheless, when the CEO steps down in 2008, Jacobs sees an opportunity for BC to embrace sustainability and urges the board to go beyond goodwill gestures - like its earlier building of schools in Ivory Coast - and take "real action". Should the board follow his lead? What would "real action" mean?
This case puts participants in the shoes of the directors of Barry Callebaut (BC), a cocoa-sourcing and chocolate manufacturing company. Chairman Andreas Jacobs is passionate about cocoa sustainability in West Africa - ensuring the cocoa crop (endangered by poor farming and climate change) and the farmers who grow it will survive and thrive. However, in response to a falling share price, the BC board has shifted strategy to achieve cost leadership. Moreover, customers have been unwilling to pay a premium for sustainable cocoa beans. Given the scale of the problem, the company cannot 'go it alone'. Nonetheless, when the CEO steps down in 2008, Jacobs sees an opportunity for BC to embrace sustainability and urges the board to go beyond goodwill gestures - like its earlier building of schools in Ivory Coast - and take "real action". Should the board follow his lead? What would "real action" mean?
Supplement to case IN1581 In 2013, India passed a law to make corporate social responsibility mandatory for large companies. The case examines the context in which the CSR legislation was introduced and how Tata Motors Ltd (TML) responded to it. Case (A) explores the meaning of corporate social responsibility and the question of whether a company should put community projects before profits. Case (B) examines Tata Motors' CSR programmes in depth and provides an opportunity to consider their impact. Students are challenged to come up with their own ideas for how the philosophy of "more from less for more" can be used to address issues related to poverty and lack of education in India.
In 2013, India passed a law to make corporate social responsibility mandatory for large companies. The case examines the context in which the CSR legislation was introduced and how Tata Motors Ltd (TML) responded to it. Case (A) explores the meaning of corporate social responsibility and the question of whether a company should put community projects before profits. Case (B) examines Tata Motors' CSR programmes in depth and provides an opportunity to consider their impact. Students are challenged to come up with their own ideas for how the philosophy of "more from less for more" can be used to address issues related to poverty and lack of education in India.
Supplement to case IN1456. Recent MBA graduate Majed finds his dream job: high-tech, entrepreneurial, senior, social - contributing to the economy of Palestine, a cause close to his heart. But the new CEO of WebTeb, an online medical information service in Arabic, finds it more challenging than expected. Recruiting IT talent in Palestine is particularly tough. Eventually, his team finds an android developer to help them launch, but then comes a fateful phone call. Majed has infringed an unwritten policy of Palestinian tech companies - never to poach each other's employees. The rationale behind this is to keep wages low and thus boost an industry with potential to transform the local economy. The injured party, an IT outsourcing company, asks Majed to rescind the offer. If he refuses, they threaten to put WebTeb out of business by offering better salaries to his entire web-development team. Case B shows how Majed resolves the dilemma.
The case is a detailed 'inside' account of the 'dieselgate' scandal at Volkswagen which revealed how engineers had programmed software that enabled its card to cheat emissions tests. It explores the origins of internal and external forces that propelled the company to market environmentally sustainable "clean diesel" cars while using engine management software to conceal on-the-road emissions of over 40 times the permitted levels. The scandal - one of the biggest of the decade - illustrates contributing factors that are common to many instances of organizational misconduct: obedience to authority, organizational culture, goal-setting, and corporate governance.
Recent MBA graduate Majed finds his dream job: high-tech, entrepreneurial, senior, social - contributing to the economy of Palestine, a cause close to his heart. But the new CEO of WebTeb, an online medical information service in Arabic, finds it more challenging than expected. Recruiting IT talent in Palestine is particularly tough. Eventually, his team finds an android developer to help them launch, but then comes a fateful phone call. Majed has infringed an unwritten policy of Palestinian tech companies - never to poach each other's employees. The rationale behind this is to keep wages low and thus boost an industry with potential to transform the local economy. The injured party, an IT outsourcing company, asks Majed to rescind the offer. If he refuses, they threaten to put WebTeb out of business by offering better salaries to his entire web-development team. Case B shows how Majed resolves the dilemma.
While Porter and Kramer's Creating Shared Value (CSV) works well as a management framework to address "win-win" business and society issues, it leaves managers ill-equipped to legitimately manage issues where they face the prospect of "win-lose" or "lose-win" social engagements. For legitimacy, managers need to bolster CSV with ethical frameworks-specifically, norm-taking and norm-making frameworks. Managers can be better positioned to create shared value through CSV+, a multipart framework built around CSV and augmented by ethical frameworks.
When a Greenpeace campaign to boycott PVC products seemed to spell disaster for Hydro Polymers, it embraced the challenge and embarked on a drive for sustainability using The Natural Step framework. The strategy was maintained after Hydro was acquired by INEOS, and ultimately led to significant changes throughout Europe's PVC industry. The case shows how positioning sustainability as a business opportunity rather than a threat can yield substantial commercial success while addressing environmental impacts. Please visit the dedicated case website http://cases.insead.edu/ineos to access supplementary material.
Supplement to case IN1253. When a Greenpeace campaign to boycott PVC products seemed to spell disaster for Hydro Polymers, it embraced the challenge and embarked on a drive for sustainability using The Natural Step framework. The strategy was maintained after Hydro was acquired by INEOS, and ultimately led to significant changes throughout Europe's PVC industry. The case shows how positioning sustainability as a business opportunity rather than a threat can yield substantial commercial success while addressing environmental impacts. Please visit the dedicated case website http://cases.insead.edu/ineos to access supplementary material.
Costly Train Journey (A) tells the story of an MBA student who on graduation started an investment banking job in the City. He was successful in his first few years but commuting into London he continued to dodge the train fare until he was caught by ticket inspectors. He was asked to pay £43,000 in avoided fares or face prosecution. Costly Train Journey (B) reveals that the (A) case is based loosely on the experience of Jonathan Burrows a Managing Director at Blackrock Asset Management. Investigated by the Financial Conduct Authority, Burrows was judged to have failed its "fit and proper" test and banned from working in financial services.
Costly Train Journey (A) tells the story of an MBA student who on graduation started an investment banking job in the City. He was successful in his first few years but commuting into London he continued to dodge the train fare until he was caught by ticket inspectors. He was asked to pay £43,000 in avoided fares or face prosecution. Costly Train Journey (B) reveals that the (A) case is based loosely on the experience of Jonathan Burrows a Managing Director at Blackrock Asset Management. Investigated by the Financial Conduct Authority, Burrows was judged to have failed its "fit and proper" test and banned from working in financial services.
Over fifty years, Rupert Murdoch built one of the most successful media conglomerates in the world. Though there had been criticism of his conduct in the past, it was only in the new millennium that allegations of phone hacking and bribery brought the threat of massive legal action against both Murdoch and his companies.
Sweta Mangal, CEO of Ziqitza Health Care Limited, must decide how to respond to a government official who has demanded a bribe to release payment for the ambulance services ZHL provides. Bribery is commonplace in India, but there is also a growing anti-corruption movement. A new employee argues that the bribe is the only way for ZHL to make payroll and maintain its ambulances, which means more lives saved. Mangal insists that ZHL is committed to an anti-bribery stance. What is the right decision? How can it best be implemented?
This case is about Walmart's launch of Love, Earth-a one billion dollar line of sustainable jewellery-told from the perspective of an NGO activist. Perhaps uniquely among CSR cases to date, it offers instructors the opportunity to explore strategic CSR by a large MNC from the perspective of the firm and the NGO activists.