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Eight19 (A) : A Social Enterprise?
Eight19 is a technology-based start-up company based on Cambridge Science Park. The company is developing a new (and very low cost) solar-panel technology aimed primarily at domestic use in developing countries. The case describes the issues faced by eight19 as it develops a business model for the new technology - in particular balancing competing needs: to generate sufficient revenue to fund operations (and not run out of cash), to generate a sufficient return for investors, to ensure widespread adoption of the system by users by users who cannot afford the up-front costs, to incentivise distributors, to guard against opportunistic behaviour by users, to create loyal users and to build and maintain a positive brand. The case illustrates the importance of the business model (rather than the product per se) and the imperative to build and maintain the 'social legitimacy' of a venture in order to assure profitability in the long term. -
Eight19 (B) (Azuri Technologies)
Supplement to case LBS171 -
Royal DSM: Fighting Hidden Hunger
In 2007 Royal DSM, a leading life science and materials company, entered a partnership with the World Food Programme (WFP) to combat hidden hunger around the world by providing micronutrient solutions. The case investigates the unexpectedly large impact the partnership had on DSM and on the global nutrition discussion, and discusses the benefits and challenges of scaling up the Nutrition Improvement Program-a key component of DSM's human nutrition and health division-beyond the WFP partnership, despite the need to build significant additional capabilities and its somewhat lower margins. -
Omidyar Network: Pioneering Impact Investment
Omidyar Network, having deployed over $500 million in ways ranging from donations to commercial equity capital, must decide whether to back Anudip, an Indian organization dedicated to rural employment. The social impact of Anudip is high, but its financial performance is lackluster. Able to deploy all the tools along the capital curve of impact investing, which, if any, is optimal for Anudip? The case recounts the transition of eBay founder Pierre Omidyar and his wife Pam from the Omidyar Family Foundation (OFF) to ON, going from a traditional grant-making organization to a pioneer of impact investing: the application of investment practices in the delivery of high impact social interventions, with the intent of providing positive financial returns to investors. -
iBakery: How a Hong Kong NGO Ventures into Social Enterprise
iBakery is the name of two social enterprises ("SEs")-a bakery shop and a café-established by Tung Wah Group of Hospitals (TWGH) of Hong Kong with a social mission to train and employ people with disabilities through the production and retailing of bakery products and the operation of a café. The SEs originated from a bakery workshop that trained people with disabilities. In running the SEs, more business elements have been introduced to try to fulfil both social and economic goals. iBakery is unique among SEs operated by Hong Kong's non-governmental organisations ("NGOs") in that it has a group of business professionals, called "iBakery Angels", forming an advisory board. With TWGH as their strong backup, the iBakery SEs are striving to meet the double bottom line. The SEs' performance in meeting the economic goal is far from satisfactory, as they are presently loss-making operations; however, they are achieving good performance in meeting the social mission when measured in terms of the Social Impact Assessment Tool. This case sheds light on the operations of SEs, how they attempt to strike a balance on both economic and social goals, and how performance measurement of social enterprises may be conducted. It also allows students to examine what the SEs should do to achieve sustainability in the future. -
Nestle: Agricultural Material Sourcing Within the Concept of Creating Shared Value (CSV)
Corporate Head of Agriculture Hans Jöhr's mind raced in anticipation of the executive board meeting that afternoon. Jöhr recognized the meeting as a key opportunity to strategize far into the future, reexamining how his team's efforts in sustainable agricultural sourcing supported Nestlé's position as the world's leading nutrition, health and wellness company. The company had undertaken to impact three of the world's most urgent challenges - nutrition, water and rural development - and Jöhr's team was fundamental to each of these pillars. Yet the forces changing the global food system were formidable: unprecedented levels of hunger, obesity and chronic disease; land degradation, frequent natural disasters, and critical threats to water supply; population growth by the billions in the coming decades, along with increased urbanization; and a volatile and tentative world economy. In the face of such threats and complexity, how could Hans Jöhr ensure that Nestlé's agricultural raw materials were safe, high quality, of consistent supply, and sustainably and ethically and economically produced? How can the procurement process enable the small scale producer to become a viable partner in the milk production models that Nestlé has developed in the developing world? Further, how could his team excel beyond the company's day-to-day business and enable Nestlé's visions for the future? -
The Jersey-Atlantic Wind Farm
Community Energy Inc. was founded in 1999 with the goal of developing the United States' renewable energy supply. In 2003 Eric Blank, cofounder and executive vice president of CEI, considers a proposal for an Atlantic County wind farm. Though the proposal clearly fit within the firm's strategy of identifying and developing renewable energy projects that could generate attractive financial returns, coastal wind farms were nonexistent in the United States in 2003. -
Coca-Cola FEMSA's Contribution to Peace
In 2003, the FEMSA Corporation -a Mexican company- acquired 100% of the shares of the largest franchise of the Coca-Cola system in Latin America (PANAMCO), and placed itself at the lead of the sales of carbonated beverages and other soft drinks in different countries of South America, including Colombia, which had been struggling with armed groups since the 1970s. This case explores how Coca-Cola FEMSA included different initiatives in its sustainability strategy, aimed at supporting the process of peaceful demobilization that would be carried out by the Alta Consejeria para la Reintegracion (ACR, High-Council for Reintegration) of the Colombian Government. As part of this disarmament process, the ACR offered the demobilized combatants (former combatants that had decided to lay down their arms peacefully and turn themselves in to the proper authorities) different options for social reintegration, such as financing for starting new businesses and connections with companies that could provide jobs, among other things, which were also shared with the business sector to see how it could help support the process. By August 2011, Coca-Cola FEMSA had already been collaborating with the Colombian Government for a little over three years, and had diversified its initiatives to support not only the former combatants, but also the soldiers, victims and general public affected by the conflict. Despite these multiple efforts, however, the actual impact of the company's actions on the solution of the problem of reintegrating more than 50,000 demobilized combatants was still negligible. Therefore, the ACR requested greater commitment from the company in the form of a massive campaign to broadcast the initiatives, in an attempt to motivate and increase the number of participating companies. -
Progressive Education Network (PEN): Creating Social Impact in Pakistan
The case documents a board room scenario where the Directors of PEN, a not-for profit organization, have met to re-consider an important decision; either wait for the city government's approval regarding allotment of government schools or consider other options, such as building own schools. Having completed several rounds of unsuccessful negotiations with the City District Government of Lahore (CDGL) the founders are feeling agitated and disappointed. Hence, at this point, the members are considering the organizational models of CARE and TCF; two well-known NGOs of Pakistan, and aim to finalize the strategic decision, based on the assessment of the two organizational models, given PEN's mission, vision, organizational, human resource, and financial capabilities. -
Micawber Capital: For Mission or Profit?
In July 2010, Robert Drake, senior director at Micawber Capital, one of India's largest microfinance organizations, needed to recommend a corporate structure and organization for Micawber after its scheduled IPO in August 2010. The IPO would bring to Micawber new stakeholders, primarily financial institutions. Drake was skeptical that the new investors shared Micawber's commitment to help alleviate poverty in rural India through microcredit loans; he assumed their primary interest was a good return on their investments. The two objectives-increasing ROI and meeting the financial needs of the poor-seemed at odds with each other. Drake had to consider how the interests of clients and investors would be represented in strategic decisions so that they balanced the conflicting values of the stakeholders. -
Generation Investment Management
Examines the investment process of Generation Investment Management, a "sustainable" investing firm established in 2004 by David Blood and U.S. Vice President Al Gore. Places students in the position of David Lowish, director of global industrials, who must decide whether to recommend an investment in ABB India. The decision pits economic development-supplying energy to impoverished rural areas in India, against environmental damage-caused by the use of coal-fired power plants. This case and/or its teaching note includes references to case supplement videos that are intended for students to view, along with the written case, before class. As a reminder, the (A) video supplement is intended for students to view before class, along with the written case, while the (B) video supplement is for faculty only and to be used in-class. -
The Night Ministry: Facing the Loss of a Founder
Paul Hamann was senior vice president of The Night Ministry, a Chicago-based not-for-profit organization. In October 2003 he received a phone call from the wife of the Reverend Tom Behrens, the founding president and the public face of the organization. She told Hamann that Behrens had suffered a massive stroke and that doctors were unsure of his prognosis. Behrens had been walking the streets of run-down Chicago neighborhoods since 1976, looking for people in despair, listening to their needs, and offering them a helping hand and a consoling presence. In the intervening twenty-seven years, he had built The Night Ministry into a well-known organization that helped thousands of adults and youth every year. No succession plan, if one existed, had ever been conveyed to senior management. Now Hamann was unsure when or even if Behrens would be able to work again. If Behrens returned to work, would he be able to continue to lead the organization? If not, who would lead The Night Ministry going forward, even if it were just for the near term, and who would make that decision? How would the community and major donors react to a new leader? -
Managing Stakeholders with Corporate Social Responsibility, Course Overview
The note articulates the ways in which strong stakeholder-company relationships developed through corporate social responsibility initiatives and other types of social strategies deliver bottom line benefits. The analysis follows stakeholder logic models connecting the impact of CSR initiatives on a stakeholder group (employees, customers, investors, government, the community, and suppliers) and its effects on company revenues, costs and market value. -
El Coyote Mexican Cafe in the Wake of Proposition 8
The El Coyote Mexican Caf�, more commonly known as �El Coyote,� is a family owned restaurant located in Los Angeles, California. The restaurant faced criticism from pro-gay rights activists after the manager, and daughter of the owner, made a personal donation to support California Ballot Proposition 8, which activists associated with the restaurant rather than the individual. The case transpires over an eight-day period from November 4, 2008, which was the election day when the ballot proposition passed, to November 12, 2008 which was when the manager held an open breakfast at El Coyote to publicly discuss the issue.The central tension in the case revolves around how the manager�s donation to support a measure that legally defines marriage as �between a man and a woman� has garnered the restaurant with unwanted attention despite being a personal contribution separate from and not endorsed by the business. The goal of the case is to challenge students to think about tensions firms face in managing the external environment of their businesses in the face of both: (i) campaign finance and election issues; and, (ii) activists who may not understand all of the underlying facts. -
Against the Grain: Jim Teague in Tanzania (A)
Loan officer Jim Teague discovers his agro-processor client has a serious health-code violation just days before a disbursement is due. Proceeding with the loan could jeopardize the health of thousands of customers and put his employer at serious risk. But withholding the loan will likely deprive hundreds of farmers affiliated with the agro-processor their livelihoods in this poor rural corner of Tanzania. -
Wastewater Recycling: Public Relations for a Controversial Technology
A reliable, safe, supply of drinking water is essential to the survival of communities. In many places the water supply is under stress-a condition that is expected to get progressively more challenging in the future. There are several ways that municipalities can improve their drinking water supply, including conservation, purchases from external suppliers, desalination, and recycling. Recycling wastewater into potable water is attractive in many situations. However, this alternative has not always been successful-in some cases, public opposition has defeated recycling plans, while public concerns have been successfully addressed in others. This case gives an overview of water supply issues and examples of successful and unsuccessful attempts to implement recycling programs. Programs in Singapore and Orange County, California are profiled as examples of successful recycling efforts, while failures in San Diego, California, and Toowoomba, Australia are described. -
Building and Scaling a Cross-Sector Partnership: Oxfam and Swiss Re Empower Farmers in Ethiopia
Winner of the 2012 Oikos Foundation Casewriting Competition. Swiss Re, a large global reinsurance company, has partnered with Oxfam America, an international relief and development organization, to provide the poor with risk reduction support. The partnership's evolution shows students many common inter- and intra-organizational challenges. For example, the need to overcome internal biases, adapt to organizational differences, and build the capacity to learn from one another. Students will experience what is required to maintain this type of relationship, as well as understand adjustments needed when partnerships scale. -
Constructing a Base-of-the-Pyramid Business in a Multinational Corporation: CEMEX's Patrimonio Hoy Looks to Grow
This case continues the story from the revised 2006 case study "CEMEX's Patrimonio Hoy: At the Tipping Point?" This case describes CEMEX's Patrimonio Hoy in 2012, which is a startup initiative designed to help low-income customers construct their own homes. Israel Moreno, Director of Patrimonio Hoy, must present his recommendations to CEMEX's top management that outline a growth strategy for the initiative and its expansion into new markets. -
The Cambodian National HIV/AIDS Program: Successful Scale-Up through Innovation
In January 2005 Dr. Mean Chhi Vun, director of the Cambodian National Center for HIV/AIDS, Dermatology and STDs (NCHADS), needed to decide how to control the spread of HIV/AIDS and save the lives of thousands of Cambodians who were dying from it each year. In the seven years since Dr. Vun had been appointed director, NCHADS had built an organization that was transparent and efficient, had implemented a nationwide 100 percent condom use program, had established a system that allowed individuals to voluntarily seek confidential counseling and testing, and had instituted a set of guidelines and procedures for staff at health facilities to refer HIV-positive patients to treatment clinics and link them with NGOs providing financial and psychosocial support. Now, however, Dr. Vun faced decisions about three initiatives that were critical to expanding care and treatment programs in his country. First, he needed to decide how to quickly and cost-effectively improve the national HIV/AIDS laboratory support infrastructure. Second, Dr. Vun needed to improve logistics and supply management in order to get the best prices and ensure patients had access to life-saving medicines. Finally, he needed to figure out how to provide sustainable care and treatment to the thousands of Cambodian children living with HIV/AIDS. -
LabourNet: Empowering Informal Sector Labourers
This case chronicles the evolution and challenges faced by LabourNet, an organization that was conceptualized as a social enterprise to create and enhance income opportunities for workers in the Indian urban informal sector, workers who are typically poor, exploited, and disenfranchised. LabourNet endeavored to establish linkages between informal-sector labourers and potential employers through an Internet-based portal and cellular phones, bringing about efficiency in the search process as well as reducing the role of intermediaries who typically exploited the labourers and reduced their share of wages. Realizing that informal sector labourers were mostly migrants from rural India who did not possess any proof of identity or social security, LabourNet worked with banks and insurance companies to provide the registered labourers with proof of identity, insurance, bank accounts, and ATM facilities. Further, LabourNet provided the registered labourers with training so that they could command better prices for their services. However, LabourNet struggled to earn revenue and to become financially self-reliant because of difficulties in scaling its operations, its inability to monetize the services that it provided as well as for being unable to command any price premium for their labourers from the markets. The case ends at a point where LabourNet had to decide its future course of action because the donor funds on which it was relying was becoming exhausted and LabourNet was unsure about the strategy that it should adopt in order to create a business model that was both inclusive and financially sustainable