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  • Green Innovation Games: Value-Creation Strategies for Corporate Sustainability

    This study builds on insights from 49 sustainability leaders in the U.S. by examining green innovation from the game perspective. It explores how corporate sustainability can advance environmentally friendly innovations, and what managerial roles and activities are required to enable the transformation. It identifies four green innovation games characterized by different underlying value creation logics and organizational and mental barriers. The article suggests ways that can help managers to overcome these barriers and incorporate three decisive managerial roles into their corporate agenda and culture to advance corporate sustainability.
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  • Gilead: Hepatitis C Access Strategy (B)

    While the Gilead: Hepatitis-C Access Strategy (A) case (515-025) poses questions on what the company should do with respect to hart hit countries like Egypt and India, this (B) case provides the answer. In both cases, the company chose to pursue a proactive strategy to enable access at affordable prices.
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  • Gilead: Hepatitis-C Access Strategy (A)

    Gilead had come up with an innovative drug for Hepatitis C, which affected 180 million people worldwide. The drug was priced at $1,000 a pill for the US market. Gilead had to decide how to price and market the pill in developing countries that bore the brunt of the disease. The company had earned accolades for its work in HIV/AIDS, where its innovative medicines now accounted for 60% of all patients on Anti-Retroviral (ARV) medicines. Much of this was accomplished through generic licensing, which brought a $10,000/year treatment regimen down to $100! Should the company replicate that strategy for Hepatitis C? If so, how would its US Healthcare customers, who were paying $84,000 per patient, react? On the other hand, Gilead had to balance the interests of its shareholders, who paid $11 billion for an acquisition that led to the new Hepatitis C drug.
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  • Can Social Enterprises Scale While Remaining Sustainable? The Mondragon Cooperatives

    Can social enterprises scale and remain sustainable? Many social enterprises, or enterprises in general, face difficulties when scaling due to two competing agendas: social mission and profitability. The Mondragon Corporation is one of the most significant challengers to this status quo. Founded in 1956, the Mondragon Corporation is currently the tenth largest company in Spain, employing 83,000 workers and having nearly 36-billion euros in consolidated assets. Its strategy for growth has been in the development of cooperative groups to attain economies of scale and the creation of support cooperatives to finance growth and provide technical assistance. Its diverse set of cooperatives spans a significant array of product and services, from supermarkets to appliance manufacturers to a polytechnic university to a cooperative bank. However, the Mondragon Corporation is not immune to gravity and the difficult tradeoffs that occur in the social enterprise space. The financial insolvency of Fagor Electrodomésticos (Fagor), its oldest cooperative member, presents the most challenging dilemma in Mondragon's long history. Since 2008, the Mondragon Corporation (through its cooperative members) has injected 300-million euros of debt financing to assist Fagor. However, Fagor has made another financial request for 180-million euros. Txema Gisasola, the President of the Mondragon Corporation needs to decide whether he should recommend financing Fagor's debt or deny the cooperative's request for assistance. While most Mondragon cooperatives in the past have decided on their own to file bankruptcy and reallocate workers, it is a tougher scenario for Fagor, which currently employs 5,600 workers.
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  • The Senior Citizen Home Safety Association: Enabling Active, Ageing-in-Place in Hong Kong

    SCHSA is a self-financing social enterprise and charitable organisation in Hong Kong that provides quality self-funding services at a low cost to empower the elderly to live independent, healthier and rewarding lives and with dignity, in their communities. It accomplishes this through the smart use of partnerships and information technology. But is this a tenable model to meet Hong Kong's ageing needs, and if so, could it be replicated elsewhere?
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  • Green Gold -an Innovative Sustainable Mining Scheme

    AMICHOCÓ Foundation was a private non-profit organization operating since 1996 in the Colombian department of Chocó, one of the poorest in the country and characterized by being largely inhabited by ethnic minorities of African origin and enjoying one of the highest levels of biodiversity in the world. The Foundation implemented productive projects that help improve the living conditions in communities within a framework of social and environmental sustainability. In this line, in 2000, the Foundation encouraged the creation of Oro Verde Corporation (hereinafter, OVC), a cross-sector alliance involving, in addition to AMICHOCÓ, three local social organizations. OVC developed the Green Gold program that considered conventional small- scale mining as a productive alternative that could be integrated to specific market niches. The case depicts the overall situation of Chocó department and the importance of the mining industry to its economy. It also describes OVC's inception and the role played by AMICHOCÓ in its creation, and provides a detailed account of the Green Gold program, with an emphasis on its value proposition: a business model that articulated traditional gold production in Chocó with green international markets. In addition, it recounts the concerns expressed by community representatives with regard to the model's efficiency and its capacity to create economic value. These concerns raised the possibility of building alliances with medium-scale private mechanized mining companies in order to enhance the model's economic impact. Exhibits provide information on the characteristics of Chocó department, social and environmental impacts of medium-scale mining, environmental conservation criteria governing the Green Gold model, and estimated economic results for conventional mining and mechanized mining operations.
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  • B Lab and the Impact Assessment Evolution

    This 2014 case discusses the U.S. nonprofit organization B Lab and its mission to support and help drive investment capital toward private enterprises that 1) aim to provide social and environmental benefits, and 2) are accountable to stakeholders (such as employees and their community) in addition to their equity investors. B Lab created robust tools for assessing the impact of these enterprises so that the social and environmental Return on Investment could be measured and evaluated in a consistent, comparable and transparent fashion. The tools were based on a 200-point assessment scheme called the B Impact Assessment. In addition, B Lab created a certification called "B Corp," which identified companies that considered diverse stakeholder interest in its definition of corporate and fiduciary responsibility. B Lab also created and championed a new legal form, the Benefit organization, which supported those organizations. Through these activities, B Lab played an important role in the relatively new practice of impact investing, which seeks to generate positive social or environmental value alongside financial returns. In 2014 the eight-year-old company was at a strategic crossroads. Many organizations found the B Lab assessment process to be burdensome, and the investment markets were showing a lack of interest, if not resistance to, using B Lab's measurement systems. Many market participants wanted to focus only on specific parts of B Lab's assessment, or wanted more customized tools to suit data collection for their own existing metrics. However, enabling investors to do that would make it harder for B Lab to create common standards - a key part of the organization's mission. B Lab's leaders were grappling with the issue of how far to go to meet the market with highly customized products and services that investors were demanding, versus how much B Lab should lead the market to a higher bar for measuring impact.
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  • NorPetrol Venezuela's Social Investment

    In 1996, NorPetrol arrived in Venezuela, where it started upstream oil operations. The company engaged in corporate social responsibility initiatives to support its operations, choosing its programs after consulting with local stakeholders. Upon arriving in the Paria Gulf area, Francisca Rios, head of the company's Social Investment and Community Relations Coordinating Unit, met with politicians, community leaders, public officials, and grassroots organizations' representatives to learn about their expectations and issues, and to communicate the company's investment plans and projects with a potential impact on their communities. A stakeholder identified by the company was Asopescar, an association of traditional fishermen. Tensions between fishermen and oil companies were commonplace. The former blamed NorPetrol for the degradation of a mangrove swamp and a significant decrease in production during the fishing season. Francisca Rios did not want to build a relationship with the fishermen based on donations and assistance. Intending empower them, she decided to channel a portion of her social investment budget to turn Asopescar fishermen into entrepreneurs. In 2006, Francisca Rios considered that Asopescar had made great progress as a productive, self-sustaining company. However, a number of problems had arisen in the organization, forcing her to rethink upcoming investments of NorPetrol in the association. Problems included rising unpaid debts of Asopecar members with their own organization, member drop-out, administrative chaos and informality in money handling, and high operating costs.The case raises the challenges facing an oil company to achieve a social license to operate, as well as its attempts to secure sustainable community development processes in its areas of influence. It takes place in April 2006, at which time Francisca Rios, wondered what to do with her initiative to support modernization of the productive model of a group of small-scale fishermen.
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  • Using Social and Economic Incentives to Discourage Chinese Suppliers From Product Adulteration

    The American public raised serious concerns about product safety in 2007, when the number of product recalls broke a new record. Following a temporary drop in 2008, both the number and retail value of recalled units have been increasing, despite various efforts exerted by government agencies and private companies to combat this trend. Currently, many countries--including China itself--are expressing serious concern over adulterated or unsafe food made or sold in China. What are the underlying reasons for some Chinese suppliers to adulterate product? When law enforcement is still weak in China, what can western manufacturers do to reduce the risk of product adulteration? To develop effective deterrence mechanisms, we first identify four underlying factors that create incentives for some Chinese suppliers to produce unsafe products. Then we propose ideas to discourage Chinese suppliers from producing adulterated products based on two underlying strategies: (1) creating economic incentives through contingent payments, and (2) creating a social incentive by threatening public exposure through the power of the Internet and social networking sites.
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  • Made by Survivors: Business Solution for a Social Problem

    The case tracks the creation and growth of a social enterprise, Made By Survivors (MBS), founded by Sarah Symons and John Berger. Inspired by a documentary on sex trafficking and a visit to a Nepalese non-profit that helped women freed from sex trafficking (survivors), Symons conceived the idea for a business that would help survivors become financially independent and restore their lives. With Berger's help, she launched MBS to sell handicrafts, stationery, and home goods in the United States, all products that were made by survivors in several countries, thus providing them a source of income. To grow sales, the co-founders tried different means of selling, altering the product mix, partnering with suppliers, starting production on their own, and designing products to increase appeal to U.S. customers. The case ends with the co-founders wondering how to multiply revenue to benefit greater numbers of survivors. Should they modify their business model or adopt a new one? Modify their organization's mission and identity? The case asks students to generate ideas for high growth and determine MBS's strategic direction.
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  • Expanding Health Insurance to Millions: Learning from the Oregon Health Insurance Experiment

    In 2008, the state of Oregon had the budget to enroll 10,000 individuals into Medicaid. But officials knew that demand for Medicaid would be far greater. To give all poor, uninsured Oregonians a fair chance at receiving health insurance, the state established a lottery. In this simple lottery, renowned economists Katherine Baicker (at Harvard) and Amy Finkelstein (at MIT) found a rare and promising natural experiment. For decades, evidence on the impacts of health insurance on health was dominated by observational studies, which offered inconclusive answers. Under the Oregon lottery, some individuals were randomly selected from a waiting list to receive insurance while others were not, enabling comparison between the two groups, and in effect creating a randomized experiment. The Oregon health experiment, as it came to be known, would finally give economists and policymakers rigorous evidence on how access to health insurance affected the provision and use of health care, and ultimately, influenced the health and well-being of the population. By 2016, as part of the Patient Protection and Affordable Care Act, an estimated 25 million Americans were set to obtain health insurance, 12 million under Medicaid alone; driving home the need to find conclusive answers to these longstanding questions. Case number 2019.0
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  • The Nature Conservancy: Advocating for and Investing in Sustainable Water Management

    The Nature Conservancy (TNC) was one of the largest conservation organizations in the world; its mission was to "to conserve the lands and waters on which all life depends." Over time, TNC had expanded its mission to include advocating for sustainable water-management practices, and its numerous water specialists had advised corporations, water ministries, legislatures, and many other organizations. TNC was constantly exploring new ways of advocating sustainable water use and weighing its options to engage new opportunities. Brian Richter, a veteran scientist for TNC who had led its water market strategy for the past few years, was convinced that water markets could be attractive for the market-friendly TNC. But he wondered how TNC could integrate water markets into its water strategy while staying true to its legacy and mission. This case includes an interview with TNC's Brian Richter about some of the tools TNC had at its disposal to realize its conservationist objectives.
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  • The Demise of the Jane Addams Hull House Association: Internal or External Factors to Blame?

    In January 2012, the Jane Addams Hull House Association--one of Chicago's largest and oldest social service agencies and arguably its most iconic--announced that it might have to close in the spring due to financial difficulties. Just days later, the 122-year-old organization stunned the philanthropic world when it laid off its employees without notice, declared its intention to liquidate in a Chapter 7 bankruptcy, and shut its doors forever. In the weeks that followed, more and more people began to ask: What had happened to the board? Had bankruptcy really been inevitable? This case chronicles the organization's final decade and enables students to step into the shoes of the chairman of the board, Steve Saunders, as he led the board through its last two years. Students will examine the roles and responsibilities of effective boards and determine how internal and external factors contributed to Hull House's demise.
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  • Evolving Kiva's Impact: Introduction of Kiva Labs and Kiva Zip

    Kiva.org was a website through which individuals could connect with opportunities to alleviate poverty via small-scale lending. Founded in 2005, the platform had grown impressively and had facilitated over $500m in loans by 2014. The scale Kiva had achieved was facilitated by its partnerships with microfinance institutions, which managed all of the lending operations for loans made by visitors to the Kiva site. Kiva's team had diverse views of impact, but in its early days Kiva measured impact based primarily on the volume of loans that were made through the platform. A combination of external and internal factors led Kiva's management to explore whether there were other products they could launch which would increase the social impact of the platform. Starting in 2011, two small entrepreneurial teams in the organization were formed to test new models, both of which would operate without microfinance intermediaries. Kiva Labs was set up to create and approve new loan products in partnership with social enterprises and other entities. Kiva Zip was created to experiment with direct lending to individuals via the platform. Labs and Zip created excitement among funders, lenders, and within the team, and Kiva's leadership believed that they had the potential to transform the organization and outpace the impact of the MFI channel. Nonetheless, there were real strategic and operational risks involved, along with questions about the financial sustainability of the new products.
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  • The Novartis Malaria Initiative

    The Novartis Malaria Initiative was designed, as a result of a precedent-setting agreement with the World Health Organization in 2001, to provide a breakthrough treatment for malaria-"at no profit"-for public health systems. What had begun as an exemplary act of corporate responsibility had succeeded beyond any expectations. In 2012, for the second year in a row, Novartis had manufactured and distributed over 100 million units of the anti-malarial drug Coartem ®. But with the significantly increased volumes came increased costs, bringing into question the sustainability of the program. In 2013, Dr. Linus Igwemezie, executive vice president and head of the Novartis Malaria Initiative, reflected on the evolution of the program and the way forward. His goal was to expand access to Coartem in the private sector through a low-margin, high-volume social business model to eventually enable the Malaria Initiative to break even and become financially sustainable. Was this the right strategy?
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  • Magnolia Community Initiative: A Network Approach to Population-Level Change

    This 2014 case describes how the Los Angeles-based Magnolia Community Initiative (MCI) - a network of 70 government, nonprofit and for-profit organizations from multiple sectors - is trying to create population-level change for 110,000 people in a neighborhood plagued by poverty and low education levels. The case discusses the challenges for such a network and raises questions about 1) how to measure progress and outcomes and 2) what factors contribute to success or failure. The six-year-old initiative had built the large network, linked participating organizations together to better serve clients, and designed a new data-driven system for measuring progress and outcomes. However, MCI had not yet seen any improvements in population-level outcomes or intermediate-level outcomes for the neighborhood. MCI is an example of "Collective Impact," an approach to solving social problems that involves commitment from many groups around a common agenda - with the specific features of a centralized infrastructure, a dedicated staff, a structured process, shared measurements, continuous communication and mutually reinforcing activities among all participants.
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  • Providing Pensions for the Poor: Targeting Cash Transfers for the Elderly in Mexico

    When the Mexican Congress approved the country's 2007 budget, it included an appropriation of 8.5 billion pesos allocated to provide non-contributive pensions to senior citizens. President Felipe Calderon wanted to introduce eligibility criteria that would ensure the new federally-funded pensions would go to poor seniors that would otherwise lack the means to sustain themselves. This case puts the reader in the shoes of Calderon's advisor, asking them to assess which targeting option would be best for the Mexican government, taking into account a wide range of criteria including targeting efficiency, financial feasibility, political viability, and administrative feasibility. The case provides a brief description of previous efforts to target the poor in Mexican social programs and data to evaluate three potential targeting options. Case Number 2011.0
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  • Innovation at One Acre Fund: Seeing the Forest for the Trees

    One Acre Fund (1AF) is a nonprofit organization in rural western Kenya that helps farmers lift themselves out of poverty by providing a bundle of products and services that support farmers with quality inputs, training on farming techniques, access to credit, and assistance in achieving optimal prices. Since the organization's founding nearly a decade ago, it has grown to serve over 180,000 farm families annually as of July 2014. This high level of penetration into rural Kenya, Rwanda, Burundi, and Tanzania makes 1AF a potential distribution channel for rolling out new products and technologies that could benefit farmers and their families. The organization prides itself on its innovative culture, and always strives to offer new products and methods to its farmers. In 2011 1AF realized that it needed to formalize its innovation process to ensure it was confident in new products before rolling them out across its entire farmer network. It therefore created a robust, multistep evaluation framework to assess new innovations on four criteria: impact, adoptability, simplicity, and operability.
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  • Goldman Sachs (A): Determining the Potential of Social Impact Bonds

    Head of Goldman Sachs' Urban Investment Group Alicia Glen will be making the case for creating a social impact bond (SIB) tomorrow. Proposed by New York Mayor Michael Bloomberg as an investment that will decrease adolescent incarceration rates, the SIB would be the first of its kind in the U.S. Goldman would have a first-mover advantage if it chooses to take part in the project, but it carries significant risk - the bank would be operating in an environment that is traditionally government and non-profit territory. Glen wondered if Goldman should invest only if a philanthropy, such as Bloomberg Philanthropies, would secure a portion of the loan. She also wondered if the transaction costs would be too high or if there were any legal or political hurdles on the horizon to stall implementation. Students are asked to gain an understanding of social investments and construct a 2X2 matrix to assess expectations for returns on social and financial impact.
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  • Goldman Sachs (B): Determining the Potential of Social Impact Bonds

    Partnering with Bloomberg Philanthropies, MDRC, the Vera Institute of Justice, and the New York State Department of Corrections, Goldman decided to go ahead with the social impact bond (SIB) project to reduce youth recidivism. If there were lower rates of recidivism under the program, the city would not have to repay Goldman's loans; Goldman would accept the risk. The city would in turn save money, allowing it to repay the bond. Before the bank knew whether the initiative would be successful, it was already moving on to new social investments. The firm was looking into an SIB to fund an expansion for a high-quality early childhood preschool program in the Granite School District of Central Salt Lake, Utah. The expansion would empower more children with early preparation, decreasing the need for special education and remedial services and saving the district money. Students are tasked with evaluating new social investment instruments, ways to mitigate risk, and the role of banks in social impact.
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