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Gardens Without Borders: Creating Corporate-Social Enterprise Collaborations for Sustainability
The case examines a social enterprise that is at a turning point in its development. After a successful start-up phase, Gardens Without Borders (GWB) aspires to achieve long-term financial viability. The case describes various projects carried out by GWB to promote sustainable agriculture around the world before addressing the challenge it now faces: achieving financial sustainability by collaborating with the private sector. Specifically, GWB wishes to develop customizable proposals for partnerships with two corporations known for their commitment to corporate social responsibility. By studying this case, students are expected to gain an in-depth understanding of real-life challenges faced by social enterprise start-ups and develop strategic decision-making capabilities for creating corporate-social enterprise collaborations for sustainability. -
Beginner's Luck: Potential Fraud by the Virginia Lottery
The Virginia Lottery offered scratcher games for which consumers could instantly win an array of prizes. In the summer of 2007, finance professor Scott Hoover determined that the lottery's website had provided false information about the number of prizes outstanding for some scratcher games. After a ten-month investigation, Hoover and a team of attorneys had gathered evidence to support a specific allegation of fraud. The lottery was selling scratcher tickets for which no grand prizes were possible, yet, its website posted information indicating that grand prizes were, in fact, still outstanding. Hoover and his attorneys worked behind the scenes to seek reform and remedies from the lottery, but those efforts were unsuccessful. He wonders whether he should go public with his allegations and file a lawsuit against the lottery. Several important ethics-related questions are posed. Does Hoover have a moral obligation to inform consumers of the apparent fraud? Should Hoover demand a return of the lottery's alleged illegal gains when those gains have purportedly benefited Virginia's educational system? Are there other approaches that do not involve Hoover going public that might motivate the lottery officials to correct the information? -
WebTeb (A): A Very Palestinian Dilemma
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. -
WebTeb (B): A Very Palestinian Dilemma
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. -
Google and Project Maven (A): Big Tech, Government and the AI Arms Race
In April 2018, after it became known that Google was collaborating with the US Department of Defense on Project Maven, over 3,000 employees signed an internal memo asking CEO Sundar Pichai to (a) cancel the project immediately, and (b) enforce a policy stating that the company would never build warfare technology. Project Maven had been launched in early 2017 as part of the DoD's efforts to integrate AI and machine learning into its defense strategies. Drones, robots and AI were increasingly deployed in intelligence gathering and combat operations in what was considered a 21st century "arms race." While Google described its role as "non-offensive," the memo argued that involvement in Project Maven might hurt its reputation and ability to attract talent at a time when public trust in technology was waning. The case puts students in the shoes of a recent hire faced with the choice of signing the memo. It also invites them to consider how they would respond, as CEO, to such a petition against one of the company's contracts. -
Volkswagen's Emissions Scandal: How Could It Happen?
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. -
Can One Size Fit All? The Case of ACEM and Community Credit
This case study focuses on the Montreal Community Loan Fund (ACEM), which fights poverty and exclusion through the administration of community credit. More specifically, ACEM provides training and offers loans to marginalized and vulnerable people for pre-start-up, start-up, and consolidation of businesses. The case describes ACEM's recent history and how the organization long chose to increase the scale of community credit services through collaborations and partnerships, avoiding for decades the need to grow its own organization. In 2012, ACEM broke with tradition and launched its own scaling process to double its size. The case thus describes an organization trying to stay focused on its social mission and core values while ensuring its own financial stability and protecting the interests of the network of independent community credit organizations that it co-founded. It thus provides an opportunity to discuss the variants of scaling and the challenges faced by a growing not-for-profit organization. The case ends by describing a dilemma regarding ACEM's financial instability. Students will be asked to make a decision regarding the current scaling process and propose a sustainable model that will make ACEM less dependent on government grants while respecting its core values. -
The Dakota Access Pipeline Project
Plans for a $3.5 billion crude oil pipeline in 2014-17 from the Bakken formation of North Sakota and Canada to a transfer point near Chicago, linked to an existing pipeline to the major refining and export faculities on the US Gulf Coast, run into trouble when the developer, Energy Transfer Partners, encounters a "roadblock" on a section of federal land that is within a reservation of the Flat Rock Sioux tribe of Native Americans. The case charts how the conflict escalated from the local to the global level. -
Gender and Free Speech at Google (A)
In August 2017, Google fired James Damore, a 28-year-old software engineer who had been employed by the company since 2013. The move came after Damore penned an internal company memo titled "Google's Ideological Echo Chamber," which posited that innate biological differences between men and women-as opposed to hiring biases, gender discrimination, or a hostile workforce-were at least partially responsible for the low numbers of women in tech. At the time, 20% of Google's tech workforce, and 31% of its overall staff, was female. Damore also admonished Google for silencing opinions that challenged what he viewed as the company's politically liberal belief system. Reactions to both the memo's content and Google's decision to fire Damore were swift and varied. Some praised the company for signaling intolerance of any marginalization of women. Others criticized Google for terminating an employee for a seemingly innocuous act of expression. Danielle Brown, Google's new vice president and chief diversity and inclusion officer, hired just a few weeks before the memo was leaked to the public, must now advise Google's top leadership team on dealing with the fallout. -
Legal Aspects of Religion in the Workplace
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BeautifulCoffee and Fair Trade: Working with Local Farmer Co-operatives in Nepal
Not long after John, BeautifulCoffee's (BC) newly appointed producer partnership manager, began his evaluation of the business relationship between BC and its coffee producer organization in Nepal, he realized that the relationship fell far short of internationally recognized fair trade standards. Furthermore, production quality was low because of poor management at DCF-Gulmi. BC was investing substantial resources in helping the local community in Nepal, and the term "fair trade" had significant appeal to Korea's ethical consumer segment. The fact that BC was unable to guarantee that DCF-Gulmi was being managed according to a democratic governance system - a key requirement for fair trade certification - raised legitimacy concerns for BC. John had to decide whether to prioritize social or business considerations. If he decided to prioritize the business aspect of fair trade, he would need to replace the partner supplier with a fair-trade certified, democratically run organization with the management capability to provide high-quality coffee beans. If this path was chosen, BC would still make a positive contribution to the well-being of coffee farmers - somewhere else - but would not help DCF-Gulmi improve its current situation, leaving it worse off than it was before it partnered with BC. Alternatively, BC could maintain its relationship with DCF-Gulmi, deepening its commitment to helping the farmers' organization improve its quality management capability and comply with fair trade standards. But this would require a larger financial and human resource commitment to pay for the recruitment and training of personnel with the necessary expertise in organizational change, co-operative management, and capacity building. Students will discuss the moral and strategic issues surrounding these two choices. -
Volunteering For Conflict?
Having reached major career milestones, Elizabeth Smith moved to Smalltown, not far from the middle-class community she grew up in, determined to give back in a meaningful way. She wanted to satisfy a real need, while developing herself in new ways and participating more deeply in community life. Like many smaller towns, Smalltown (an incorporated village) relied primarily on volunteer fire and rescue services for on-site emergency care. Aware of this need, Smith chose to volunteer as emergency medical services (EMS) provider. While it was a very rewarding endeavor, navigating the culture of a volunteer organization in the town had proved more challenging than Smith expected. This was complicated by Smith's role as a volunteer, rather than as a manager or traditional employee. 2017 was a turning point for Smith as she questioned certain governance, financial management, and service delivery practices. How could Smith most effectively address these issues? -
Play Fair! Innovating Internal Self-Regulation in the Market for Profit
Regulation imposes compliance demands on business, but these controls by no means ensure that corporations will act ethically. Externally imposed controls by government or industry are prompts intended to move organizations to engage in a moral minimum. Such efforts are typically reactionary corrective measures, often crafted and applied after an ethical scandal occurs, and thereby offer limited effectiveness in providing systemic change. To provide insight on internally driven controls, this article examines how a newer form of monetized self-regulation, referred to as inverted moral markets, might be leveraged to motivate corporate ethical behavior. Inverted moral market (IMM) operations target firms suspected of unethical action, providing a type of market whistleblowing. Such activities are monetized through the sale of information to investors and by short selling. Rather than a desire to build moral strength, IMM firms are motivated by self-interest and profit. They can potentially 'do good' by imposing self-correction within the market, but without virtuous intent. We explore IMMs and the varied impacts their activities may have on the functioning of the overall market. We argue that a more balanced approach between internal and external regulation may enhance the environment for moral balance in a capitalist market system. -
Which Kaptein to Choose? The Havøysund Fleet Question
Olaf Tryggvason, owner of a fleet of fishing ships in a small northern Norwegian town, has been offered and has accepted a reality television deal about the fleet to create a show along the lines of "The Deadliest Catch" and "Big Shrimpin'." He now has to recommend which ships and kapteiner (skippers or captains) in his fleet should be the stars of the show. He also has to consider the various dangers and complexities inherent in making a show like this, and what responsibility he has to his employees and other stakeholders. In thinking through the decisions in the case, students will have to wrestle with how values shape their quantitative analysis and views of their moral responsibilities to employees, and how their own experiences and biases shape how they view moral issues. -
John Rogers, Jr. - Ariel Investments Co.
John Rogers Jr., the founder and CEO of Ariel Investments, an enormously successful finance firm with $12 billion of invested capital, is one of the few African Americans in the asset management industry. As one of the high profile leaders in the black business community, John has decided to encourage Fortune 500 companies and major foundations to increase the volume of business that they do with black and other minority-owned companies. His encouragement comes in the form of public criticism of these organizations. He challenges them to stop paying "lip service" to inclusion, diversity, and fair business opportunity and sincerely commit to these ideals through action and results. A member of John's Board of Directors has advised him to cease his leadership of this effort because it could be detrimental to Ariel Investments. Is the board member right? Is John being reckless? Is there a model that can be created to determine if and when John and other leaders should publicly express their opinions? -
The National Football League and Brain Injuries (B)
The National Football League (NFL) was both the most popular spectator sport in the U.S. and a major economic entity, taking in roughly $10 billion a year in revenue. However through the early twenty-first century, an increased understanding of the long-term effects of head injuries on NFL players indicated a serious threat to the long-term viability of the game. Particularly concerning was the indication that some deceased professional football players had developed chronic traumatic encephalopathy (CTE)-a neurodegenerative disease which had a strong influence on a person's mental and physical health-most likely as a result of repetitive hits sustained during their football careers and which may have contributed to their deaths. Over 4,000 retired players had jointly sued the NFL over the head injuries they had sustained during their time in the NFL and the resulting health problems they attributed to these injuries. In part, the lawsuit alleged that the NFL had not been forthcoming with players about the health risks of head injuries. The two sides had reached a tentative $765 million settlement in 2013, the bulk of which would go to compensating retired players suffering from such diseases as Alzheimer's or dementia. While this settlement compensated retired players, it was not applicable to current or future players. Could the NFL preserve the sport by making it safer through new rules or equipment changes, or was football an inherently physical game that no amount of new rules or equipment could make completely safe? Were current and future players, now knowing full well the potential long-term health implications of football, tacitly accepting the risks involved? As a team owner, is now the time to sell while franchise value and fan support are at their peaks, or will the business of the NFL be viable for years to come? -
Kirat Housing Development Society
Three months into his first job as an IT consultant, newly minted MBA Phil Lee was wondering whether he had made a horrible mistake. Initially, he had been thrilled with his employer, Orion Information Technology Consulting, and the prospects for his professional future. He had specifically requested to work on projects in emerging markets, and his bosses had responded by flying him halfway around the world to New Delhi to meet with the head of procurement of a luxury property developer, Kirat Housing Development Society (KHDS). Lee thought the reason for the meeting was slightly unusual: Orion was planning to make a bid to supply building management software for KHDS's newest luxury tower, and this meeting would be the "pre-bid" negotiation. Lee wasn't totally sure what they'd even be discussing, as the tender already provided full details on exactly what modules would be required and even included specific penalty clauses for delays. The meeting at KHDS seemed ordinary at first, but quickly took a turn when the assistant to the head of procurement explained that Orion would win the bid if it offered him a $200,000 contract as an "independent consultant." Lee was stunned. To make matters worse, when he returned to his hotel room he found a gift waiting for him: an expensive-looking diamond pendant. On his sleepless flight home, Lee's mind raced. Had his bosses known this would happen? Were bribes standard operating procedure? Now that he'd accepted a gift, was he complicit in wrongdoing? Lee didn't want to get fired, but he wasn't sure he could go along with this. -
Charity or Bribery
Filip Kowalski, a senior manager at the pharmaceutical company Healthgen, leads sales for the firm's Polish division. While pitching Healthgen's products, he develops a relationship with a director of a regional health fund who also runs a private foundation. After a natural disaster, Healthgen- at the request of the director- donated products to help during the crises. After Healthgen wins an important contract, the media alleges that the donation was made to secure support of the regional health director. Were the efforts to boost company sales and support public health a donation or a bribe? -
Recruiting: Additional Vignettes
These vignettes highlight several ethical issues for MBA students as they begin to look for a job. They serve as a practical springboard for a discussion of topics, including one's obligation to classmates, the recruiting firm, and the school itself. -
Ethics and Integrity in Business: Navigating Ethical Risks and Transgressions in the Workplace (A)
In this set of six cases, students are placed into the role of the fictional Andrea Johnson, a recent graduate who has just begun her career at a mid-sized organization in the consumer electronics industry. While in the role of Andrea, university students and early-stage professionals follow Andrea's career development and are exposed to a variety of ethical challenges she encounters along the way. Each hypothetical scenario is based on real-world events and will illustrate the types of situations that students may encounter in the course of their career. The cases may be taught sequentially or as standalone scenarios. Case A is delivered in the inspection copy and purchased copy, and Cases B - F are delivered alongside the teaching note. A slide deck accompanies the comprehensive teaching note that provides an in-depth analysis of each scenario with tips on promoting student engagement to create an active and dynamic learning environment. The intent of the case series is to enable students to develop fundamental tools for how to recognize, address, and successfully overcome compromising situations.