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• Foreword

• BenoîtLeleux(IMD)-Noir/Illuminati II

• MadeleinePullman(PortlandStateUniversity)-Portland Roasting

Company

• AndreaErinBass(UniversityofNebraska)-Lululemon’s commitment to the

environment

• DarrellBrown(PortlandStateUniversity)–Burgerville: Sustainability and

Sourcing in a QSR Supply Chain

• Forthcomingcaseteachingeventsandothernews

• Howtosubscribe

Featured Case Writers and Cases:

“Runningalongthebeach”byLululemonAthletica.CreativeCommonsLicence.Attribution2.5Generic(CCBY2.5).

Issue5,Winter2012

Sustainable Lifestyles

Case QuarterlyTeaching Cases in Action

oikos Internationalstudents for sustainableeconomics and management

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startedbythefounderofLululemonoraworld-famousoutdoorclothingcompanyPatagoniaproducinghigh-qualityenvironmentally-friendlygarments.

Wehopethatyouwillenjoyreadingthisissueanddiscoveringthesesustainablefoodandclothingcompanies.Asusually,wewouldbeveryhappytoreceiveyourfeedback,sodosendusanemailtocase@oikosinternational.org.

Dear reader,

Foreword

LiudmilaNazarkinaoikosCaseQuarterlyEditor

WelcometotheoikosCaseQuarterly5/2012focusedonthetopicofsustainablelifestyles.ThequestionofsustainablelifestyleshasreceivedaconsiderableattentiononbothinternationalandEuropeanlevels.Thus,theinternationalTaskForceonSustainableLifestyleswaslaunchedin2002aspartofaglobalefforttopromotesustainableconsumptionandproduction,ortheso-calledMarrakechProcess,leadbytheUnitedNationsEnvironmentProgramme(UNEP)andtheUnitedNationsDepartmentofEconomicandSocialAffairs(UNDESA).OntheEuropeanlevel,theSPREADSustainableLifestyles2050initiativewaslaunchedinJanuary2011withapurposetodevelop“aroadmapforstrategicactionforpolicymakersand[to]deliverinnovativeideasforbusiness,researchandsociety”.

Inthisissuewefocusontwoaspectsofsustainablelifestyles:whatandwhereweeatandwhatwewear.Wepresentfourteachingcasesrelatedtothetopicofsustainablefoodandclothing:Noir/IlluminatiII(byBenoîtLeleux)-eco-friendlyluxuriousclothing;Lululemon(byAndreaErinBass)–eco-friendlysportsclothing;PortlandRoastingCompany(byMadeleinePullman)–acoffeecompanywithastrongcommitmenttosustainability;andfinallyBurgerville(byDarrellBrown)–afast-foodrestaurantdifferentiatingitselfonthefresh,localandsustainablefood.Inadditiontothesecases,youmayalsobeinterestedtocheckthe

followingtwocasesfromtheoikosonlinecasecollection:KapaiNewZealand–anotherfast-foodrestaurantorratherahealthysaladbar,andPhoenixOrganic–organicbeveragescompany(thiscasewascoveredinIssue1ofoikosCaseQuarterly).

Fromtheecchcasecollectionotherinteresting“food”casesareasmoothiescompanyInnocentDrinksandorganicteacompanyHonestTea,themajorityshareholdinginbothofwhichisnowownedbyCoca-Cola;Green&Black’sorganicandfair-tradechocolate–alsoisnolongerindependentbutpartofCadburySchweppes;BionadeSodaofferingorganicdrinks,anotherexampleofasmallentrepreneurialfirmboughtbyalargemainstreammarketplayer–Dr.Oetker;asacontrast,AttuneFoodsintheorganicbreakfastcerealmarketisstillasmallandindependentplayerwithanambitiontobecomealeadingdigestivehealthbrandintheUSA.Alsoofinterestmaybetwocasesonorganicfooddistributors–ProOrganicsinCanadaandWholeFoodsMarketintheUSA.

Intheeco-friendlyclothingmarketsomeinterestingcompaniesareVejaanditssneakers“withaconscience”(co-authoredbyoneoftheoikosPhDFellowsKimPoldner),FreitaganditsSwiss-madecarry-allbagsmadeofoldtrucktarpaulins,bicycleinnertubesandcarsafetybelts(thiscaseisofferedbyecchforfree),anothereco-clothingbrandOQOQO

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NextissueofoikosCaseQuarterly(Spring,2012)willbefocusedonthetopicofSustainableHousingandwewillfeaturethefollowingcases:

• “KimptonHotels:BalancingStrategyandEnvironmentalSustainability”(byMurraySilvermanandTomThomas)

• “HunghomPeninsulainHongKong:ARealisticCallforCorporateSocialResponsibilities”(byTerenceTsaiandShuboPhilipLiu)

• “TheReUseofPEOPLE:ScraptoSales”(byCharlesJ.CorbettandWilliamG.Powell)

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Benoît Leleux

Noir/Illuminati II: Defining Socially Responsible Affordable Luxury Clothingby Benoît Leleux

The Case Story2007wasgoingtobetheyearofNoir/IlluminatiII.ThetwoentitieswerelikeSiamesetwins;Noirdesignedandproducedluxuryclothingforwomen,whileIlluminatiIIwassetuptoproducehighquality,fair-trade,organiccottonfabricsofthehighestqualitybothforNoirandotherleadingfashionbrands.Together,theyprovidedthebasisforatotallynewconceptinfashion,onethatwouldbringback“socialsubstance”inaworldthatmostlyignoredit.CorporateSocialResponsibility(CSR)wasmakingitswayintomostotherindustries:whycoulditnotinfiltratefashion?Wasthereanywaytoimprovethe“feelgood”factorofbeautifulclotheswithaclearsocialresponsibilitymessage?Couldegocentrismrhymewitheco-friendliness?Noir/IlluminatiIIwoulddefinesociallyresponsibleaffordableluxuryclothing.Puttingtheconceptintooperationwastherealchallenge:Wouldcustomersbuythestory?Wouldinvestorsfollowhiminthisventure?

Teaching the CaseThecaseoffersauniqueenvironmenttotapthe“hiddenassumptions”ofCSR,i.e.pushtheconcepttoitslimitswhereparticipantsstarttofeelveryuneasyaboutit.Inparticular,theideaofusingCSRasabusinesspurposeorfoundation,andto

leverageCSRtomakemoney,seemstorubmanyparticipantsthewrongway.Forothers,itistheveryideaofusing“values”suchascorporatesocialresponsibilityformercantilepurposesthatcreatesamentalblockagethatrequiresdiscussion.Theseissuesaremadeevenmore“lively”bytheveryentrepreneurial,charismaticfounder,whodoesnotshyawayfromstatingclearlyhisintents.Hisvideointerview,inthisrespect,isahighlightofthecasediscussion,inparticularhisreferencetotheCatholicChurchasoneofthebestbrandseverbuiltonguilt!

“Corporate Social Responsibility (CSR) was making its way into most other industries: why could it not infiltrate fashion? Was there any way to improve the “feel good” factor of beautiful clothes with a clear social responsibility message?”

ThecaseisverydifferentfromthetraditionalCSRcasesthatoftenshowtraditionalbusinesssituationsinwhichtheadoptionofCSRprinciplesbroughtsomeclearbenefitstosociety.Inthiscase,thebenefitstosocietyareclearlyquestionable(whatisanotherluxuryfashionbrand,howeversociallyresponsible,bringingtosociety?)whiletheprivatebenefitsofadoptingCSRforthecompanyarealltoovisible.Thekeyquestions

addressedarethusthefollowing:•AreprivatebenefitstoCSRantagonistictoitssocialor“greatergood”purpose?Canonereconcilethetwoperspectives?•CanCSRorother“valuesystem”beusedasthefoundationofafor-profitbusinessmodel?•Whatthepitfallsofusinga“value”asanessentialelementofabusinesspositioning?

Practicallyspeaking,thestudentsareaskedtoaddressthefollowingsetofissues:

•Howstrongwastheproductpositioning?Affordableluxurywasverymuchanoxymoron,butthenagainthesekindsofconflictsneverpreventedbrandsfrombecomingsuccessful.•DidNoir’sprice/qualitypositioningreallymakesenseinthecompetitivefashionindustry?•Diditmakesensetopushtwobrands(NoirandIlluminatiII)atthesametime?Wastheoriginalrationalestillstrongenough?•Fromaplacementstrategypointofview,diditmakesensetogoglobalfromthestartorwastherevalueintestingthehomemarketfirst?•Areuniformsforlargecorporateclientssupportingorhinderingthedevelopmentofthebrandanditsperceivedpositioninginthemarket?

DrLeleuxisStephanSchmidheinyProfessorofEntrepreneurshipandFinanceatIMD,wherehewasdirectoroftheMBAprogramandofResearchandDevelopment.HewaspreviouslyVisitingProfessoratINSEADandAssociateProfessorandZubillagaChairinFinanceandEntrepreneurshipatBabsonCollege,Wellesley,MA(USA).HeobtainedhisPh.D.atINSEAD,specializing

inCorporateFinanceandVentureCapital.Hislatestbooksinclude“InvestingPrivateCapitalinEmergingandFrontierMarketSMEs”(IFC,2009)and“NurturingScience-BasedStartups:AnInternationalCasePerspective”(Springer,2008).HisteachingcaseshaveearnedadozenEuropeancasewritingawards.

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Case Purchase Information Inspectioncopyofthecase“Noir/IlluminatiII:DefiningSociallyResponsibleAffordableLuxuryClothing”isavailablefromtheonlineoikosCaseCollection.Thecaseisavailableforpurchasefromecch:PartA(IMD-3-1909)andPartB(IMD-3-1910)anditisalsopartofthenewoikosCaseCollectionbook(Volume2):CaseStudiesinSocialEntrepreneurshipandSustainabilitypublishedbyGreenleaf.

•WhichinvestorwouldbebestforNoirIlluminatiIItoacceleratethebusinessaswellastosupportthecompany,itsbasicvaluesandprinciplesinthelongrun?•Didhehavetherightteamtogrowthebusiness?•Wastheenvisionedmarketentrystrategysufficienttosupporttheplannedgrowth?•HowattractivewouldNoirIlluminatiIIbetocompanieslikeGucciandLVMHfromaportfoliopointofview?Whywouldtheypossiblywanttoacquirehim?Ifthatexitroutewasreallyunlikely,thanhowwouldhebestprepareforthenextalternativerouteforexit?

ThecasetakestheconceptofCSRinanumberofprovocativedirections,allowingtheclassdiscussiontogointosomeoftenmisunderstoodissuesaboutCSRingeneral.Theseissuesinclude:•CanCSRbecommercialized?IsitOKtobuildaprofitablebusinessaroundCSRactivities?•CanyouclaimtobeCSRcompliantwhenonlypartsofyouractivitiesare?•Canyoubeentrepreneurialintheworldofsocialresponsibility?

Thecaseissupportedbyextensivepedagogicalmaterial,includingextensiveteachingnotes,basedonrepeateduseinbothMBAandexecutiveeducationprograms.ItincludesaDVDcontainingtheoriginal2008NewYorkFashionWeekpresentation,astudiointerviewofNoirfounderandCEOPeterIngwersendiscussingallmajoraspectsofthebusiness,fromlaunchuntilJuly2009,andPowerpointpresentationsbyPeterIngwersenofhiscareerandaspirationswithNoir/IlluminatiII.

Favorite CasesCSRandsocialentrepreneurshipcanbeaddressedinmanydifferentways,somestandardsomemuchlessso.IpersonallylovetousetheWipholdcase,anotherprovocativecasesetinSouthAfricain1994,where4blackwomensetupaprivateequityinvestmentvehicleasanempowermenttoolfordisenfranchisedwomeninthetownships.Andsucceededtocreateoneofthelargestfinancialservicesfirminthecountry,developingnewproductsforthebottomofthepyramid.

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“DowntownBetty–VancouverEcoFashionWeek–Day1–Feb232011”bySaltySoul.CreativeCommonsLicence.Attribution2.5Generic(CCBY2.5).

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New Case DevelopmentLearningtakesholdbetterwhenstandardconceptsareportrayedinunusualsettingsorextremeconditions.Onlythencanyoureallyseethetrade-offsimplied,theparadoxesthathavetobedealtwith.Casesingeneraltendtobetoodescriptiveandpoliticallycorrect:forpedagogicalpurposes,thecasemethodneedscontroversyandextremepositions,notconsensualthinking.Casewritersshouldletthemselvesengagemorecontroversialcausesinlessfamiliargeographicalterritories…

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Portland Roasting Company: Farm Friendly Direct by Madeleine Pullman

The Case StoryThiscasedescribestheissuesanddilemmasfacingacompanyintheireffortstodifferentiatetheirproductthroughasocialsustainabilityprogram.Overtheyears,thecompanyhasbuiltastrongreputationwiththeirsustainabilityefforts,particularlyamongsttheirpeersinthespecialtycoffeeindustry.Thereissomequestionastowhether

thisreputationhasbeenvisibletoconsumersandifconsumersseethevalue-proposition.Thecasecoversthehistoryofcoffee,thespecialtycoffeeindustry,thesupplychainandrolesofdifferentparticipants,andthecompetitivelandscape.Furthermore,mostofthecompetitiveeco-labelsandcertificationschemesarediscussed.Thereaderisaskedtodecidetheappropriatemethodforconveyingthecompany’ssocialsustainabilityeffortstothemarketplaceandbeyondthat,toconsiderhowonemightmeasureandmonitorsocialprogramsinthedevelopingworld.Thecaseisdesignedtohighlightdecisionsrelatedtomarketingandoperationsstrategy,prosandconsofcertification,andparticularlysocialsustainabilityversustheotheraspectsofsustainability.

“The discussion can begin with the core competencies of the company, Portland Roasting Company (PRC). While many students will argue that quality is PRC’s core competency, others will realize that their social sustainability program is their strong suit. ”

Teaching the CaseThiscasecanbeusedtoexaminethedifferencesbetweensocialandenvironmentalsustainabilityprogramsandhowtheseprogramsareconveyedtothemarketplace.Itwouldbeappropriateforastrategy,marketingorsupplychainmanagementclassinabusinessschoolorforafoodpolicyclass.Forastrategyclass,itcouldbeusedtoconveythepotentialcompetitiveadvantagethatcompaniesreceivefromsustainabilityprogramsandproducts.Foramarketingclass,thecasecanbeusedtocoverbrandingeffortsrelatedtosustainabilitycertification,marketsaturation,andmarketingmethodsforconveyingcredenceattributes(attributesofaproductnotreadilyconveyedtotheconsumerunlikepriceorquality).

Forasupplychainmanagementclass,thecasecouldhighlighttheroleofsupplychainstructureinthedevelopmentofsustainableproductlinesparticularlysocialsustainabilitywhichhasreceivedlimitedattentionoutsideofworkerissuesintheapparelindustry.

Thediscussioncanbeginwiththecorecompetenciesofthecompany,PortlandRoastingCompany(PRC).WhilemanystudentswillarguethatqualityisPRC’scorecompetency,otherswillrealizethattheirsocialsustainabilityprogramistheirstrongsuit.Mark,PRC’spresident,hasbeenveryinvolvedwiththeseactivitiessincethecompany’sinceptionandthecoffee’spremiumpricingisusedtosupporttheseefforts.Thenthequestionbecomes,ifsocialsustainabilityisthecompany’scorecompetency,howeffectivelyisthisconveyedtothefinalconsumers,andisthisanorderwinningattributeforconsumers?Finally,thestudentsareaskedtodecidehowthisattributecouldbeconveyedtoconsumers(throughvariouschoicesaroundcertification)and/orthroughdifferentmarketingchannels,promotions,oralternativemethods.Thecasecandrawonthefollowingframeworks:MarketingStrategy,SupplyChainStrategy,Social,Environmental,andEconomicSustainability,andCertificationPrograms&Eco-labeling.

Thesuggestedreadingstoaccompanythecaseforgraduatelevelinclude:1. Golan,E.,Krissoff,B.,Kuchler,

F.,Calvin,L.,Nelson,K.andPrice,G.(2004),“TraceabilityintheU.S.foodsupply:Economictheoryandindustrystudies”,Economic Research Service, U.S. Department of Agriculture,AgriculturalEconomicReportNo.830.

2. Gladwin,T.N.,Kennelly,J.J.andKrause,T.(1995),“Shiftingparadigmsforsustainable

Madeleine(Mellie)PullmanistheWillametteIndustriesProfessorofSupplyChainManagementatPortlandStateUniversity.Hermajorresearchinterestsincludesustainabilityandsupplychainmanagement,sustainablefoodandbeveragesupplychains,andexperientialservicedesign.Currently,sheisresearchingsocialnetworksofsustainabilityandfoodcooperatives.Sheisontheboardofseveralfoodnon-profitgroupsincludingUpstreamHealth,FoodAlliance,PortlandPublicMarket,andtheSlowFoodChapterofWallowaCounty.Sheworkswithmanyregionalsustainability-focusedfoodandbeverageproducers,distributors,andretailers.InadditiontoauthoringbooksonFoodSupplyChainManagement,ServiceOperations,andRestaurantDesign,herarticleshaveappearedinnumerousjournalsandperiodicals.

Madeleine Pullman

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development:Implicationsformanagementtheoryandresearch”,Academy of Management Review,Vol.20No.4,pp.874-907

3. Jennings,P.D.andZandbergen,P.A.(1995),“Ecologicallysustainableorganizations:Aninstitutionalapproach”,Academy of Management Review,Vol.20No.4,pp.1015-52.

4. Kleindorfer,P.R.,Singhal,K.andVanWassenhove,L.N.(2005),“Sustainableoperationsmanagement”,Production and Operations Management Journal,Vol.14No.4,pp.482-92..

Favorite CasesAsIteachafoodsupplychainclass,thosethatteachafood-relatedclasssuchasfoodpolicyorfoodsystemswouldbenefitfromtheoikosawardwinningcaseBurgerville:SustainabilityintheSupplyChain(includedinthisissue)andCountryNatural

Beef(availablefromthePSUCenterforGlobalLeadershipinSustainability);bothofwhichcoverasimilarthemeofvaluechainsbuiltaroundsustainability.Additionally,Iusethesecasestohighlightotherissuesaroundsustainability,supplychaindecisions,andfood:CooperativeGroupFairTradeChocolate,McDonald’sCorporation:ManagingaSustainableSupplyChain,TheCage-FreeEggMovement,andRedTomato:KeepingItLocal.

New Case DevelopmentIwouldliketoseecasedevelopmentaroundtheinstitutionsthataremakinggreatstepswithsustainability,socialissuesandfoodpolicy.OneexampleofthismightbetheKaiserHealthCareGroupwhichisdoingsomegreatworkoncarbonfootprint-basedpurchasingdecisionsandobesitypolicy.Anotherexamplearethevarious

Case Purchase Information Inspectioncopyofthecase“PortlandRoastingCompany:FarmFriendlyDirect”isavailablefromtheonlineoikosCaseCollection.PleasecontactMelliePullmantoobtainlicensedcopiesofthiscase.

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schoolsystemsandjailsinthewesternUSandEuropeancountrieswhicharetryingtobringinhealthierandmoresustainablefoodinalowcostandhighlypoliticizedenvironments.Additionally,thereareopportunitiestocoverfoodaidprogramsthataretryingtoencouragelocalpurchasingratherthandumpingcheapforeigncommoditiesinneedycountriestothedetrimentofsocialsustainability.

“EdenProjectCoffee”byTico24.CreativeCommonsLicence.Attribution2.5Generic(CCBY2.5).

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Lululemon’s commitment to the environment: A tangle of seaweed, suppliers, and social responsibilityby Andrea Erin Bass

The Case StoryThiscasedescribestheeventssurroundingLululemonAthleticaInc.’s(Lululemon)VitaSeafabriccontroversy.LululemonwasanactivewearretailerbasedinVancouver,Canada.Thecompanywascommittedtotheenvironmentandsustainabilityefforts,asevidencedthroughitsmaterialsmanagement,selectionofsuppliers,andenergyefficiencyinitsbuildings.AnarticlereleasedbytheNewYorkTimesin2007challengedtheintegrityofLululemon’sVitaSeaproductline.Thearticlepurported,throughindependenttests,thattheVitaSeafabricdidnotcontainseaweed,astheproductlabelclaimed.Lululemonchallengedthearticlebyorderingitsownindependenttests,butbeforetoo

longfounditselfquestionedbytheCompetitionBureauofCanada.TheretailerwasforcedtoremoveclaimsontheVitaSeafabriclabel.Thecompanytookitscommitmenttotheenvironmentonesteptoofar,andmadeenvironmentalclaimsthatitcouldnotsupport.

Teaching the CaseLululemonwasattractivetomeasacasestudybecausethecompanyhadachievedremarkablegrowthinashortamountoftime.Initially,Iwasinterestedinthepathofgrowthforthecompany,andinsightintoany“growingpains”thecompanyhadexperienced.Shortlyafterinitiallysiftingthroughsomearchivaldata,IdiscoveredtheVitaSeacontroversy.MyearlyreactionwasdisappointmentinLululemon;however,astheevidencemounted,Idiscoveredthatthistopicwasn’tasblack-and-whiteasIhadoriginallysuspected.Manystakeholdersembodyingdivergentviewpointswererepresentedintheeventsthatsurroundedthecontroversyin2007.Iwantedtowritethecaseinawaythatparalleledmyresearchexperience,sothequestionbecame,“HowdoIwriteacaseinwhichtheresolutionbecomesmoreelusiveasthestorydevelops?”

Thiscaseisappropriateforuseinbothundergraduateandgraduatelevelcoursesinstrategicmanagement,marketing,andbusinessethicsandsocialresponsibility.Withinaclassonstrategicmanagement,thiscasecanbeusedtodiscusshowtoapproachsynergisticproblemswithmarketing,suppliers,andnegativepublicity.Instructorsmayfindthatinthebeginningofcasediscussion,studentsfeeltheresolutionstotheseproblemsareveryclear;however,asdiscussionensues,theresolutionstotheseproblemsbecomelessclearandmoreindefinable.Similarly,

inabusinessethicsandsocialresponsibilityclass,discussionwilllikelycirclearoundtheconflictingconstraintsexperiencedbyfirms;orhowtocreateafeasible,realistic,verifiablecorporatesocialresponsibilityinitiativethatisrepresentativeoftheentirebusiness(includingthesuppliersthatareusedandthemarketingeffortsthatareemployed)?Regardlessofthecourseinwhichthiscaseisused,thepurposeistoillustratehowacompanycanbecomeoverzealousinitscommitmenttosustainabilityandsocialresponsibility,withoutbeingabletosubstantiateitsclaimsoractionswithverifiableinformation.

“The company took its commitment to the environment one step too far, and made environmental claims that it could not support. ”

Thiscasecanbeusedingroupworkoronanindividualbasis,andshouldtriggerquestionsaboutethicsinmarketing,supplierselection,andthenegativeresultofacompany’suseofpublicimagetotakeadvantageofcustomers.Thecasecanalsopromotediscussionoffactorsassociatedwithemployinganenvironmentally-consciousinitiative,orusingsustainabilityinCSRandmarketingefforts.

Thecaseshouldtakeapproximatelyonehourforreviewanddiscussion,withanadditionalhalfhourtoanhourforideasregardingLululemon’snextsteps.

Moststudentswillhavepersonalexperiencewithathleticapparel,butmaynotbefamiliarwithLululemon.Studentsmaynothavethoughtmuchaboutthedifficultiesassociatedwithadoptingastrongcorporatesocialresponsibilityinitiativeandthegreyareathatsurroundssustainabilityasapplied

AndreaErinBassisaDoctoralStudentinManagementattheUniversityofNebraska.AnativeofCanada,herresearchisdirectedatbothstrategyandentrepreneurshipincomplexenvironments.Erinhasexperienceteachingstrategicmanagementandorganizationalbehaviouratboththeundergraduateandgraduatelevel.Private-sectorexperienceintheenergyindustryinfluencesherresearchquestionsandhersubsequentinterestintheroleofstrategyinenergyandsustainability.

Andrea Erin Bass

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Case Purchase Information Inspectioncopyofthecase“Lululemon’scommitmenttotheenvironment:Atangleofseaweed,suppliers,andsocialresponsibility”isavailablefromtheonlineoikosCaseCollection.PleasecontactAndreaErinBasstoobtainlicensedcopiesofthiscase.

toorganizations.Thiscaseprovidesstudentswithanopportunitytoexaminethechallengesafirmcanfacewhenitscommitmenttosustainability,theenvironment,orsocialresponsibilityisquestioned.Onewaytointroducethisconcepttostudentsistobegintheclassbyaskingthestudents,“Howimportantisacorporatesocialresponsibilityinitiative?Howimportantissustainabilitytocompanies?”Questionssuchastheseserveasicebreakersandtheinstructorcanquicklymoveontomoreanalyticaldiscussionquestions.

Thecaseinvolvesmanydifferentplayers:Lululemon,SmarfiberAG,the New York Times,andtheCompetitionBureauofCanadaamongothers.Ifaroleplayisdesired,theclasscanbedividedintostudentgroups.Duringclassdiscussion,eachgroupcan

representagroupofstakeholdersandsubsequentlyraiseconcernsorsupportrelativetothatgroup.

Favorite CasesIreallyenjoy“SoYouWanttobeaSocialEntrepreneur:StartingOut,ScalingUp,StayingCommitted”byMichaelGordonfromtheoikosCaseCollection.ThiscaseisreallyinterestingandIthinkportraystheimportanceofsocialentrepreneurshipincreatingaviablefutureforourworld.FromoutsidetheoikosCaseCollection,thecase“MicrofinanceandtheKipsigisofSouthwestKenya”,byGlennBropheyandRobinWiszowaty,isagreatintroductionforstudentstotheimpactofmicrofinance.Iwantstudentstowalkoutofmyclassfeelingthattheyhavethepotentialtomakeadifference,andbothofthesecasesserveasastartingpointforinspiration.

“AskAYogi–4”byLululemonAthletica.CreativeCommonsLicence.Attribution2.5Generic(CCBY2.5).

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New Case DevelopmentIambiasedtowardstrategyandentrepreneurship,butIwouldliketoseecaseswrittenaboutwhatthe“littleguys”inenergyaredoing.We’veallreadthecasesaboutExxonandShell,nowit’stimetoseewhatsomeSMEsintheenergyindustryaredoing:Aretheyfocusingonnewtechnologies,alternativesourcesofenergy,or,fromamorecriticalperspective,aretheytheonesthatarepullingtheheavyhitterslikeExxonandShellawayfrom“what’snext”?Iwouldalsoliketoseecasesonmicrofinanceinstitutions.UsuallyweseecasestudiesonthepeopletheseMFIshelp–butwhatabouttheMFIsthemselves?Ifwecanusebusinessandentrepreneurshiptodecreasepovertylevels,wouldn’tthatbeagreatthingtobothresearchandteach?

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Burgerville: Sustainability and Sourcing in a QSR Supply Chain by Darrell Brown

The Case Story Thiscasedescribesissuesfacedbyacompanyattemptingtoinstillitsculturalvaluesinitsoperationalpractices.Burgerville’slong-heldvaluesarecompatiblewiththesustainabilityonavarietyofdimensions.Thecompany’sslogan“Fresh.Local.Sustainable.”introducesanumberofincompatiblegoals.Asthecompanyattemptstoliveuptoandintoitsvalues,ithasnegotiatedthroughanumberofdifficultsustainability-orienteddecisions.Thecasesetsupanotherdecisionbydiscussingtheearlierdecisionsandidentifyingthe

conflictingsustainabilityattributesofdecidingwhereandhowtosourceaprimaryingredientonitsmenu,chicken.

Burgervilleworkswithitssupplierstopromotesustainabilitygoalsthroughoutthesupplychain.Asthecompanyattemptstoaddressconflictingsustainabilityissues,theprotagonistmustweigheconomic,environmentalandsocialissuesinthesupplychain.Overtheyears,thecompanyhasbuiltastrongreputationwiththeirsustainabilityefforts,towhichtheyattributetheabilitytoweatherdifficulteconomictimesasapremiumparticipantinatraditionallycost-basedindustry.Thecasehighlightsdecisionsrelatedtooperationsstrategy,includingissuesofcounter-balancingpotentiallyconflictingsustainabilitygoals,theabilitytomaintainpricepremiumsduetopositivereputationandquality,andtheabilitytoinfluencethesupplychainbeyondthereachofthecompany.

Teaching the CaseThecasecanbeusedtoteachthefollowingfocusareas:BestPracticesintotheSustainableSupplyChain,SupplyChainStrategy,Social,Environmental,andEconomicSustainability,CertificationAlternatives,andLocalsourcing.ThecasecanbetaughtaspartofaMBAOperations/SupplyChainManagement,MarketingorStrategyclass.OurschoolhasafoodcertificateprogramandasupplychainmajorsowehaveuseditintheFoodPurchasingandLogisticsclass,butitcanbeintegratedintoatraditionalpurchasingclasstoo.

Thiscaseintroducesawiderangeofsustainability-orientedissues,fromtreatmentofmigrantfarmworkerstosupportoflocalproductiontoenvironmentalandsocialcertificationstoenvironmentalimpactsoffoodtransport.Theprimaryfocusofthecasetendstobeinternal,asthecompany

attemptstoensurethatitsvaluesaremanifestedinitsactions.Thereareclearlyexternalramificationsoftheseactions,however,bothinimpactsonthesupplychainandonthereputationofthefirmintheeyesofitspartnersanditcustomers.Thecaseisappropriateforstrategy,marketing,andsupplychainmanagementclasses.

“This case introduces a wide range of sustainability-oriented issues, from treatment of migrant farm workers to support of local production to environmental and social certifications to environmental impacts of food transport. ”Forastrategyclass,thestringofsustainability-orienteddecisionsprovidesfodderfordiscussingthealignmentofcorporatevisionandmissionwithstrategicactions.Theultimatedecisionfacedbythecompanyprovidesstudentsanopportunitytoconfrontarealsituationwherethealternativesallhavepositiveandnegativesustainabilityimpacts.

Thecompany’sdecisionshaveimplicationsforitsreputationalongthesupplychainandintheeyesofcustomers.Foramarketingclass,thecasecanbeusedtoconsidertheimpactsofthesedecisions,andfuturedecisions,onaconsumerbasethatistraditionallyconsideredtobeuninterestedinsustainability.

Forasupplychainmanagementclass,thecasehighlightstheroleofasignificant,butnotdominant,companyanditsabilitytoinfluencesustainabilityallalongthesupplychain.Thecaseintroducesissuesofworkerrights,environmentalfootprint,andlocaldevelopment.Theseissuesplayoutonseveraldimensionsasthecompanymustmakedecisionsaboutwhichsustainabilityattributeitwillsupport.Asthecompanydevelops,italsoinfluencesitssupplychain

DarrellBrownistheLesFahey/KPMGAccountingFellowandaFellowintheInstituteforSustainableSolutionsatPortlandStateUniversity.WithaB.S.inforestryandaPh.D.inaccounting,Dr.Brownteachesandresearchesattheintersectionofbusinesssustainabilityandmeasurement.Heteachesmetricsforunderstandingandreportingthesocialandenvironmentalimpactsoforganizations,andtheoddmanagerialandaccountingsystemclass.Hiscurrentresearchinterestsincludemeasurementissuesrelatedtoorganizationalimpactsonsocialandnaturalsystems.Specifically,heisinterestedinhoworganizationalreportingpracticesinfluencesustainability-orientedbehaviors,bothinternallyandexternallytotheorganization.

Darrell Brown

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partners,creatingleverstochangethesustainabilitybehaviorsofitspartnersaswell.

TheoveralldiscussionofthecasecouldstartwithanarticulationofthevaluesthatBVhascarriedwithitthroughoutitsexistence.Thediscussionoftenthenleadstohowandwhetherthesevaluesandtheirmanifestationsinthebusinessmodelreallydocreateacompetitivead-vantageinthismarketplace.

Favorite CasesThereareanumberofgoodcasesthatbridgesupplychain,marketingandstrategy.ThePortlandRoastingCompanyoikosawardwinningcase(alsodiscussedinthisissue)isagreatcaseforlookingathowthese3functionalareasinteracttobothcreatechallengesandopportuni-tiestoconveysociallysustainableattributesforadirecttradecoffee

importerandroaster.Forinstruc-torslookingforsomewellknowncompanieswithexcellentsustain-abilitystrategies,frameworks,andcrossdisciplinaryissues,Isuggest“Cradle-to-CradleDesignatHermanMiller:MovingtowardEnvironmentalSustainability”and“Patagonia”.

“In the industry of ‘burgers, shakes, and fries’, the ability to have a business model that looks, from the outside, just like a host of competitors, and can maintain a significant price premium over the competition is rare.”

New Case DevelopmentManyofthecompaniesthatwewriteaboutaresmallercompanieswithsolidsustainabilityvaluesystemsandtrytointegratethesevaluesinalltheirprogramsandproducts.Ontheotherhand,itis

importanttolookatwhatsomebiggercompaniesaredoingandthentoquestionhowtheproductmightconflictwiththecompany’sattemptstoaddsomesustainabilityprogramstoimprovetheirimage.Maybethisisthe“broken3leggedstoolofsustainability”?ExamplesofthesecouldbeCoca-ColaorcompanieslikePampers.Pampers’“CarryingforBaby’sAroundtheWorld”programisacharitable,socialmissionorientedprogramwhichislaudedbuttheproductitselfcontinuestocausemassiveenvironmentalproblems.Similarly,Cokehasrecentlystartedresourceconservingefforts(waterandenergy)butthebeveragecontributestohugesocialproblems.AnotherinterestingcasepossibilitywouldbetolookattheSistersofSt.FrancisandtheirmethodofforcingsocialchangewithMcDonald’s,Kroger,WellsFargoandmanyotherpubliclytradedfirms.

Case Purchase Information Inspectioncopyofthecase“Burgerville:SustainabilityandSourcinginaQSRSupplyChain”isavailablefromtheonlineoikosCaseCollection.PleasecontactDarrellBrowntoobtainlicensedcopiesofthiscase.

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ecch: Advanced Case Method Workshop

26-27 March 2012Venue:IMDSwitzerland

Ledbyaward-winningcaseauthorandteacherKamranKashani,thisworkshopforexperiencedcaseuserswillbeacasestudyoncaseteachingandwriting.Thefundamentalprinciplesofeffectivediscussionleadershipwillbeexploredanddifferentapproacheswillbeassessed.Theworkshopwilldiscussthecasedevelopmentprocessandhowtodesignaneffectivecasebasedcourse.

Theworkshopwillbeofbenefittoawideaudience,including:(1)caseteachersandwriterskeentoimprovetheirperformanceandrefreshtheirskills;(2)facultyandtrainerswhohavetaughtwithorwrittencasesbutneverreceivedanyformaltraining;(3)thosefromanysectorordiscipline.Fees:£495/€645non-residential.Feesincludecoursematerialsandlunch.ecchmemberorganisationsreceive10%discount.Moreinformationontheecchwebsite.

The Future of Fashion @ CasePlace.org

CasePlace.orgputtogetheracollectionoffascinatingcasestudiesandotherteachingmaterialsontheFutureofFashion.ThisTeachingModuleusesthecontextofthefashionindustrytodiscusstopicsthatareshapingthefutureofallindustries.Thesetopicsincludesustainableresourcemanagement,thechallengesandopportunitiesofglobalgrowth,workforcemanagement,andtheroleofethicalconsumptioninbusiness.MoreinformationontheCasePlace.org.

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