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Country Matters: Executives Weigh In on the Causes and Counter Measures of Counterfeit Trade
In this article, we present the findings of a study examining the exploding problem of counterfeit trade via the opinions of U.S. executives as compared to their counterparts from Australia, New Zealand, South Africa, and Tahiti. Their responses provide insight as to how companies in different countries are attacking piracy and consumer complicity with counterfeit products. Per our study, executives in Australia, Tahiti, and the U.S. had similar perspectives: they viewed the seller as the main driver of counterfeit trade for reasons of profit. These executives perceived the demand for counterfeits as being driven by desirable product attributes and the ease of obtaining them. Likewise, they cited two anti-counterfeiting actions-site licenses and reduced price/rebates-as being able to reduce the demand for illicit products. In contrast, South African executives observed the main reason for piracy as weak enforcement of intellectual property (IP) and the lure of exorbitant profits, with little value in any anti-counterfeiting actions other than special packaging. These executives put forth that South African consumers are complicit due to limited education and low disposable income, and the ready availability of counterfeits. Executives from New Zealand were the most optimistic, believing that piracy and complicity can be reduced by many anti-counterfeiting actions, including special packaging, reducing price, emphasizing product benefits/warranties, stressing the harmful effects of using fake products, offering site licenses, and listing of authorized sellers. -
PROTECTA - Promoting Civil Society in Serbia
In 1997 three students joined a protest against the electoral victory of Slobodan Milosevic's Serbian Socialist Party. Upon the protest's ultimate defeat, and Milosevic's return to power, the students vowed to continue the struggle for civic activism in Serbia. Their efforts manifested in the creation of the Centre for Civil Society Development PROTECTA, an NGO committed to promoting civic engagement throughout Serbia. Twelve years following the protests PROTECTA has a budget of half-a-million Euro, twenty full-time employees, and working relationships with major public and private international donors. The story is more impressive considering that this organizational growth took place during extreme political, economic, and social upheaval. This case offers students an opportunity to recount the rise of the organization under increasingly trying personal, political and professional circumstances, namely war and a repressive state. These circumstances call into question some potential ethical concerns regarding management in a hostile political environment. It also offers an opportunity for students to make a decision and plot strategy for the organization's future in areas such as leadership transition, core competencies, financial sustainability, and staffing. HKS Case Number 1924.0 -
Why Social Business?
Building Social Business (2010) is a book of 9 chapters written by 2006 Nobel Peace Laureate Muhammad Yunus and published by Public Affairs/Perseus Books Group. The objective of social business is to create self-supporting, viable commercial enterprises that generate economic growth even as they produce goods and services that serve the poor. Yunus demonstrates how social business transforms lives, offers practical guidance for those who want to create social businesses of their own, and argues that public and corporate policies must adapt to make room for the social business model which, in his view, has the potential to reduce the negative fallout from free-market enterprise. Chapter 1 defines social business and its importance. The differences between social business and social enterprise are explained, and the significance of non-governmental organizations (NGOs) and charitable behavior is highlighted. -
Growing Pains
Building Social Business (2010) is a book of 9 chapters written by 2006 Nobel Peace Laureate Muhammad Yunus and published by Public Affairs/Perseus Books Group. The objective of social business is to create self-supporting, viable commercial enterprises that generate economic growth even as they produce goods and services that serve the poor. Yunus demonstrates how social business transforms lives, offers practical guidance for those who want to create social businesses of their own, and argues that public and corporate policies must adapt to make room for the social business model which, in his view, has the potential to reduce the negative fallout from free-market enterprise. Chapter 2 discusses the birth of a social business focused on aiding the poor. Groupe Danone, famous worldwide for its yogurt, launches Grameen Danone, a pioneering social business selling products fortified with nutrients that Bangladeshi children lack. -
Launching a Social Business
Building Social Business (2010) is a book of 9 chapters written by 2006 Nobel Peace Laureate Muhammad Yunus and published by Public Affairs/Perseus Books Group. The objective of social business is to create self-supporting, viable commercial enterprises that generate economic growth even as they produce goods and services that serve the poor. Yunus demonstrates how social business transforms lives, offers practical guidance for those who want to create social businesses of their own, and argues that public and corporate policies must adapt to make room for the social business model which, in his view, has the potential to reduce the negative fallout from free-market enterprise. Chapter 3 discusses how social businesses are created. To quote the author, "when you start a social business, you don't begin by looking for a business case that will generate maximum profits. Instead you pick a social problem you want to solve and then seek the business solution for it." Topics include starting with a personal passion, focusing on a specific goal, applying technology (including infrastructure) to human problems, and testing and modifying a social business model. -
To Cure One Child
Building Social Business (2010) is a book of 9 chapters written by 2006 Nobel Peace Laureate Muhammad Yunus and published by Public Affairs/Perseus Books Group. The objective of social business is to create self-supporting, viable commercial enterprises that generate economic growth even as they produce goods and services that serve the poor. Yunus demonstrates how social business transforms lives, offers practical guidance for those who want to create social businesses of their own, and argues that public and corporate policies must adapt to make room for the social business model which, in his view, has the potential to reduce the negative fallout from free-market enterprise. Chapter 4 discusses social business in healthcare. The author discusses the importance of healthcare initiatives in underdeveloped countries like Bangladesh. The author specifically examines the organization Cure2Children, in Pakistan, to describe methods that improve healthcare delivery in areas of extreme poverty. -
Legal and Financial Frameworks for Social Business
Building Social Business (2010) is a book of 9 chapters written by 2006 Nobel Peace Laureate Muhammad Yunus and published by Public Affairs/Perseus Books Group. The objective of social business is to create self-supporting, viable commercial enterprises that generate economic growth even as they produce goods and services that serve the poor. Yunus demonstrates how social business transforms lives, offers practical guidance for those who want to create social businesses of their own, and argues that public and corporate policies must adapt to make room for the social business model which, in his view, has the potential to reduce the negative fallout from free-market enterprise. Chapter 5 explains the process that shapes an idea into a legally and financially sound social business plan. The author discusses how to attract investors, compares the legal structures underlying for-profit and non-profit business models, and delineates structural alternatives for non-profits. -
Grameen Veolia Water
Building Social Business (2010) is a book of 9 chapters written by 2006 Nobel Peace Laureate Muhammad Yunus and published by Public Affairs/Perseus Books Group. The objective of social business is to create self-supporting, viable commercial enterprises that generate economic growth even as they produce goods and services that serve the poor. Yunus demonstrates how social business transforms lives, offers practical guidance for those who want to create social businesses of their own, and argues that public and corporate policies must adapt to make room for the social business model which, in his view, has the potential to reduce the negative fallout from free-market enterprise. Chapter 6 shows how pragmatism, openness, and experimentation are used in Grameen Veolia Water, a social business devoted to providing safe drinking water for rural Bangladesh. -
Creating a Global Infrastructure for Business
Building Social Business (2010) is a book of 9 chapters written by 2006 Nobel Peace Laureate Muhammad Yunus and published by Public Affairs/Perseus Books Group. The objective of social business is to create self-supporting, viable commercial enterprises that generate economic growth even as they produce goods and services that serve the poor. Yunus demonstrates how social business transforms lives, offers practical guidance for those who want to create social businesses of their own, and argues that public and corporate policies must adapt to make room for the social business model which, in his view, has the potential to reduce the negative fallout from free-market enterprise. Chapter 7 applauds "social business thinkers" who create an intellectual infrastructure for exploring and extending the ideas behind social business. The author explains how the Yunus Centre, Grameen Creative Lab, and university centers examine social business concepts and opportunities. -
Glimpse of Tomorrow
Building Social Business (2010) is a book of 9 chapters written by 2006 Nobel Peace Laureate Muhammad Yunus and published by Public Affairs/Perseus Books Group. The objective of social business is to create self-supporting, viable commercial enterprises that generate economic growth even as they produce goods and services that serve the poor. Yunus demonstrates how social business transforms lives, offers practical guidance for those who want to create social businesses of their own, and argues that public and corporate policies must adapt to make room for the social business model which, in his view, has the potential to reduce the negative fallout from free-market enterprise. Chapter 8 presents additional examples in abbreviated form, to demonstrate the variety of initiatives emerging around the world. The author offers glimpses of the future in selected stories of other individuals and institutions that are creating social businesses. Among the institutions involved are BASF, Intel, Pfizer, GE Healthcare, and The Mayo Clinic. -
The End of Poverty
Building Social Business (2010) is a book of 9 chapters written by 2006 Nobel Peace Laureate Muhammad Yunus and published by Public Affairs/Perseus Books Group. The objective of social business is to create self-supporting, viable commercial enterprises that generate economic growth even as they produce goods and services that serve the poor. Yunus demonstrates how social business transforms lives, offers practical guidance for those who want to create social businesses of their own, and argues that public and corporate policies must adapt to make room for the social business model which, in his view, has the potential to reduce the negative fallout from free-market enterprise. Chapter 9, the book's final chapter, argues that capitalism has made our world "lopsided," with poverty left untreated. Yunus asks the reader to join him in envisioning the answer to the question "What would the world be like without poverty?" -
Tata: Leadership with Trust
The case illustrates the opportunities, challenges, and trade-offs involved in the design, evolution, and institutionalization of corporate social responsibility (CSR) and corporate sustainability (CS) within the Tata Group - an India-based indigenous multinational enterprise (MNE) with a unique 140-year-old commitment to the community as the key stakeholder of business. Despite the 2008-2009 global recession, the Tata Group topped the economic value creation charts. In 2008-2009, the Group had grossed US$70.8 billion in revenues; 64.7% of the Group's revenues were now coming from outside India. Its 96 independent companies spanned seven sectors: information systems and communications, engineering, materials, services, energy, consumer products, and chemicals. Economic turbulence had put a break on social and environmental investing for many other companies but renewed Tata Group's commitment: the Group had recently revised its charitable giving, adopted a group-wide climate change policy, and separated its mandatory and voluntary initiatives. The case deals with the intricate connections between the Group's profitability and competitiveness on the one hand and its long-standing tradition of social responsibility on the other. It explores value creation, leadership, ethics, and sustainable development on the backdrop of rapid internationalizations and shifting stakeholders' expectations for corporate social responsibility. -
The Robin Hood Foundation
Created by hedge fund and financial managers, the Robin Hood Foundation fights poverty through grants to nonprofit organizations. As the global financial crisis continues to impact the poor disproportionately, the Foundation needs to ensure that its funds are being spent on the most effective poverty-fighting programs. The organization's senior vice president, Michael Weinstein, has developed a benefit-cost (BC) approach to analyze the performance of program grants. How effective is the method? Is funding programs with the highest BC ratios a good way to fight poverty? In three or five years, how will Robin Hood know whether it is succeeding? -
Public Responsibility and Private Enterprise in Developing Countries
In developing countries, firms encounter distinct challenges that place them in situations where they take on functions typically handled by the public sector. These functions range from the provision of health care and education for local communities to the development of political capacity and public policy. Drawing on 30 case studies of companies operating in developing regions of the world, this article presents a typology of four strategies that describe the different ways in which firms can engage in public responsibilities. For each strategy, it outlines the key challenges faced by firms along with suggestions for overcoming them. The burdens firms bear in providing services in response to public policy failures are substantial. Only by effectively developing an appropriate strategic orientation can programs be created that add value both to businesses and to the communities in which they operate. -
Byrraju Foundation: SWEET Water Project
In 2008, the Byrraju Foundation, an organization that provides self-sustaining services in Indian villages, was operating more than 50 water purification plants in the rural Andhra Pradesh region. However, almost five years after the launch of the foundation's SWEET Water Project, less than half of the residents of its targeted villages were drinking Byrraju water on a regular basis. The need for purified water was clear: studies showed that 80 percent of the illnesses in Andhra Pradesh were caused by contaminated water. In this case, students develop a marketing strategy to raise the profile of the SWEET initiative, and increase its penetration rates among villagers. -
Moral Decision-Making: Reason, Emotion & Luck
This extensive note synthesizes current psychological and neuroscientific research on how people make decisions with moral implications. Research summaries and scenarios illustrate critical issues. -
To Understand a Growing Organization: Greater Miami Neighborhoods
This case study explores the factors that are important in analyzing the health and soundness of a project in a growing nonprofit housing company with multiple program areas. A new loan officer at a community development financial institution must decide whether to recommend approval of an application by Greater Miami Neighborhoods (GMN) for financing the construction of a mixed-income condo building in downtown Miami. GMN recently has become the largest nonprofit developer and owner of low-income housing in Florida, with fifty-eight affiliates and subsidiary legal entities responsible for the development, preservation, and management of more than 6,000 units of low-cost rental and for-sale homes. It has grown by taking on new and far-flung real estate projects-including Lighthouse Bay, a 1,100-unit apartment complex in Jacksonville, Florida-and acquiring its own property management and construction companies. But the organization has also experienced a few setbacks-including a rejection in the final round of a large loan from the MacArthur Foundation. It is up to the inexperienced loan officer-and readers of the case study-to find ways to assess the situation and decide whether GMN has been experiencing mere growing pains or a more serious organizational illness. HKS Case Number 1922.0 -
Equitas Microfinance: The Fastest-Growing MFI on the Planet
Founded as a for-profit microfinance company, Equitas had acquired nearly a million clients in the short two years since it was founded. The founder, Vasu, and his management team wished to accelerate the already impressive spurt to 3 million clients in the next two years. The case describes the company's business model, which attempts to integrate microfinance with social development, and provides students with the opportunity to discuss the scaling options and challenges facing the founder. -
Aravind: A Profile in Growing a Health Care Facility
Aravind, a network of hospitals in India, is the largest provider of eye care in the world. Aravind performs approximately 270,000 surgeries per year and serves over 2 million patients. Aravind's leadership has set the goal of one million surgeries and 100 hospitals by 2015. This case asks students to evaluate Aravind's history, strategy, organizational structure, etc. to determine what steps it needs to take to reach that goal. Particular questions are focused on human resources, process standardization, and business model development. -
American Electric Power: Investing in Forest Conservation
This case focuses on an opportunity that American Electric Power (AEP) has to invest, with The Nature Conservancy (TNC), in one of the world's first projects for Reducing Emissions from Deforestation and Forest Degradation (REDD). The proposed plan was to protect 812,000 hectares of rich, biologically diverse forest land, known as Bosque Rojo, in central Peru. This project would address the two issues targeted by REDD by ending both deforestation from the local communities' conversion of land from forest to farmland and forest degradation from commercial logging. REDD projects offered a substantial opportunity to mitigate climate change, as deforestation and forest degradation contributed approximately 15-20 percent of global greenhouse gas (GHG) emissions. Protecting Bosque Rojo could prevent the release of millions of tons of carbon dioxide (CO2). The project partners and investors would obtain certified offset credits equivalent to the reduction in emissions over the 30-year project lifetime. Among U.S. power companies, AEP had one of the highest levels of CO2 emissions. It estimated its 2009 emissions would reach 150M metric tonnes. With climate change legislation on the horizon, it wanted to set an example for Congress to show that REDD offsets could lead to cost-effective reduction in GHG emissions, and also gain experience in the international REDD scene. AEP expected to have to substantially reduce its own emissions (e.g. by substituting wind power for coal in electricity generation) or obtain offset credits either on the open market or through direct participation in external emission reduction projects. AEP believed that REDD projects would be much cheaper than any of its other options to obtain offset credits. To confirm this belief, the company needed to calculate a net present value (NPV) for the project, understand the project's risks, and determine if Bosque Rojo was, indeed, the best use of company funds.