Cases June 30, 2007

The Body Shop: Social Responsibility or Sustained Greenwashing?

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This case is about the issue of sustainability rhetoric and greenwashing. In March 2006, The Body Shop International Plc. (Body Shop), a retailer of natural-based and ethically-sourced beauty products, announced that it had agreed to an acquisition by the beauty care giant L’Oréal in a cash deal worth £652 million (US$ 1.14 billion). The announcement brought in its wake a spate of criticism against Body Shop and its founder, Dame Anita Roddick. Body Shop was regarded as a pioneer in modern corporate social responsibility (CSR) practices.

The company was also strongly associated with Roddick’s social activism. This case discusses the reactions of consumers, activists, and CSR experts to the acquisition of Body Shop by L’Oréal. The acquisition throws up some questions such as: Is Body Shop guilty of greenwashing? Does it have the influence to extend its values to L’Oréal? The case also looks into the issue of whether L’Oréal was trying to improve its own image and to buy CSR through this deal.

Authors: Rajiv Fernando, Debapratim Purkayastha
Institution: ICFAI Hyderabad, India
Competition Year2007
Place3rd place
TrackCorporate Sustainability
Key WordsBody Shop, L'Oreal, Societal Marketing Concept, Repositioning, Anita Roddick, Multi-Channel Strategy, Loyalty Programme, Corporate Social Responsibility, Ethical Score
CoursesBusiness Ethics, Corporate Governance, Business Strategy, Marketing Management
Target AudienceMBA, MS
Permission RightsThis case is available for purchase from the Case Centre (707-006-1). This case is also part of the oikos Case Collection book (Volume 1): Case Studies in Sustainability Management and Strategy published by Greenleaf.
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TEMBEC Inc.: Creating Value by Managing Stakeholder Tension

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Throughout the 1990s there was increasing competition for Ontario’s forest land. The forest industry, including Tembec Inc, demanded from the Ontario government more certainty in the lands available to them. To reach a consensus on strategic land use, the government launched Lands for Life process and undertook extensive public consultations. Unfortunately the consultation process resulted in a polarization of stakeholders, and the 242 controversial recommendations threatened to spark a ‘war in the woods’, primarily between the forestry industry and environmentalists.

Tembec’s chief executive office foresaw this conflict and was determined to take a different course of action that would bring a real solution that would meet both the objectives of the forestry industry and environmentalists. He was cognizant that losing access to timber would have a devastating effect on his company, but confident that a consensus could be reached if a rational approach were followed. Students will learn to recognize the long-term opportunity associated with sustainability, and the short-term risks associated with ignoring it, to illustrate the opportunity for stakeholder consultation and partnerships, and to introduce the best practices on stakeholder collaboration and innovative problem solving.

Authors: Tima Bansal, Tom Ewart
Institution: Ivey School of Business, Canada
Competition Year2007
PlaceFinalist
TrackCorporate Sustainabiity
Key WordsStakeholder Analysis, Environmental Business Management, Negotiation, Human Resources Management, Canada, Forest Industry
Permission RightsThis case can be purchased from Ivey Publishing or the Case Centre (9B05M051).
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Seventh Generation: Balancing Customer Expectations with Supply Chain Realities

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The case focuses on Seventh Generation, a maker of environmentally-sensitive household nondurables such as soaps, detergents, paper products, and diapers. Faced with the prospect of being without a product when a contract manufacturer could no longer make its natural baby wipes, the company substituted conventional wipes. But some of the ingredients in these conventional baby wipes proved unacceptable to its customers. The case provides a broad background on the industry in which Seventh Generation competes, and the developing green niche within it. A history of the company’s circuitous journey to become the leader in its field is then presented, with special reference to the importance of its corporate values to strategy and staffing. The case closes with a meeting to decide what to do about the baby wipes problem.

Authors: Mike Russo, Dan Goldstein
Institution: University of Oregon, USA
Competition Year2007
Place1st place
TrackCorporate Sustainability
Key WordsHousehold goods, Baby wipes, Corporate values, Values-driven organisation, Environmental differentiation, Managing sustainability-oriented tradeoffs
Permission RightsThis case is part of Environmental Management: Readings and Cases (by Sage) and oikos Case Collection book (Volume 1): Case Studies in Sustainability Management and Strategy (by Greenleaf).
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Transforming the Global Fishing Industry: The Marine Stewardship Council at Full Sail?

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The Marine Stewardship Council (MSC) is an non-government organisation (NGO) – headquartered in London and established by the World Wildlife Fund (WWF) and Unilever in 1997 to set up a certification and eco-labelling system for sustainable fishing. The case describes the MSC’s initial and more recent challenges including the Tragedy of the Commons, a wide range of less willing stakeholders, and the complexity of certifying fisheries on sustainability criteria.

It also outlines management decisions to meet at least some of the challenges: improved transparency and engagement with stakeholders, new governance structures and certification methodologies. For the learning objectives, the participants should: (1) see the challenges associated with the certification of sustainable business practices (in general and in fisheries in particular); (2) reflect on the institutional dilemma presented by the wide range of often conflicting stakeholder demands; and (3) see the necessity to carry out strategic (i.e., focused) stakeholder engagement (find the most important allies) and establish effective governance structures.

Author: Alexander Nick
Institution: IMD Lausanne, Switzerland
Competition Year2007
PlaceFinalist
TrackSocial Entrepreneurship
Key WordsSustainability, Certification, Labelling, Fishing, Non-Government Organisation (NGO), Stakeholder Management, Food and Beverage
Case Purchase InformationThis case can be purchased from the Case Centre (IMD-2-0083). It is also part of the oikos Case Collection book (Volume 1): Case Studies in Sustainability Management and Strategy published by Greenleaf.
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City Water Tanzania

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The first part of the case examines how the Tanzanian government intends to address a pressing deterioration in the infrastructure and services of Dar es Salaam’s Water and Sewerage Authority (DAWASA). The decision process unfolds in the spring of 2002, on the heels of the Cochabamba uprising and increasing dispute over the involvement of the World Bank and the International Finance Corporation (IFC) in other water development projects in Ghana, Mauritania and South Africa.

Part B describes Tanzanian government’s privatization of DAWASA. It details the terms of the lease contract with an international operator, City Water, discussing the alternatives that were considered and discarded, the bidding process, and the roles and motivations of the parties.

Part C provides a dual role play, casting students in the position of Edward Lowassa, Tanzania’s Minister of Water, and Cliff Stone, a former director of sales for Africa for Biwater and now part of City Water’s management. The two role plays ask each party to review the progress by May 1st, 2005. Each party reviews their accomplishments and shortcomings, two years after the signing of the lease in February 2003. Part C triggers a negotiation between representatives of the two sides (Lowassa and Stone) and an analysis of their competing expectations and only partial fulfilment of their assumed roles.

Part D summarises the decision of the negotiation: the break-up of City Water Tanzania, and its aftermath, including litigation and forgone opportunities to meet the needs of the local residents.

Authors: Kevin McKague
Institution: York University, Canada
Competition Year2007
Place2nd place
TrackCorporate Sustainability
Key WordsSustainable development, Strategic alliances, Management in a global environment, Partnership
CoursesStrategy, Sustainability
Target AudienceMBA Students, Business Executives, BBA
Permission RightsThis case is available for purchase from the Case Centre: Part A (9B07M025), Part B (9B07M026), Part C (9B07M027B) and Supplement (9B07M027A), Part D (9B07M028). It is also part of the oikos Case Collection book (Volume 1): Case Studies in Sustainability Management and Strategy published by Greenleaf.
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