oikos Alumni Debates: The Future of Food

The global population is predicted to reach almost 10 billion by 2050. How can all of these people be fed, while reducing greenhouse gas emissions, protecting biodiversity and developing rural economies? Join us for the oikos Alumni Debates where we begin to untangle the challenge, and taste (literally) the future of food.

The fourth oikos Alumni Debates will be held on October 12, 2015 at 18:00 in Zurich (LGT Venture Philanthropy, Färberstrasse 6).

Three panelists will lead the discussion on the Future of Food:

– Benjamin Gräub, Agricultural Officer (Ecological Intensification), Food and Agricultural Organization of the United Nations

– Christian Bärtsch, Co-Founder, Essento

– Christian Ulrich, Chief Merchandise Officer Food and Member of the Board, Grands magasins Globus

Harriet Jackson will moderate the panel.

More info here.

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oikos International

posted June 30, 2015

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Dr. Jim Yong Kim’s Dilemma: International Finance Corporation and the Tata Mundra Power Plant

Abstract

The case study is about the dilemma faced by Dr. Jim Yong Kim (Kim), President of the World Bank Group, related to International Finance Corporation’s (IFC) funding of the Tata Mundra Project in India. The Mundra plant was one of the Ultra Mega Power Projects (UMPPs) conceived with the objective of providing cheap electricity to power-starved states of India. Coastal Gujarat Power Limited (CGPL), a wholly-owned subsidiary of Tata Power, implemented the project with funds from various organizations including a funding of US$450 million from IFC.

Before the Tata Mundra power project went on stream, everyone related to the project claimed that it would be beneficial for infrastructure development, economic growth, as well as for the poor communities living in areas near the power plant site, but the project soon started facing some serious criticism on the environmental and social fronts. Critics alleged that the project had a severe impact on the environment, sea water, water level, soil, air, natural habitats, marine life, fish population, livelihood, and health and society as a whole. IFC’s ‘Office of the Compliance Advisor/Ombudsman’ (CAO) did an extensive investigation and found evidence which validated the main aspects of the Machimar Adhikar Sangharsh Sangathan (MASS) complaint. The management of IFC largely rejected the findings of the CAO, and Kim faced a lot of criticism for toeing the management line.

Kim was caught in a dilemma as the criticism grew more strident over the following months. If he still did not accept the findings of the CAO, then he as well as IFC risked being viewed as not doing enough for the environment and communities that were allegedly affected by the Tata Mundra power plant. On the other hand, if he did a U-turn and accepted the finding of the CAO, then he would have to stop the sustainable financing of US$450 million to the Tata Mundra project, which was established with the objective of providing cheap and reliable electricity to millions of people of developing India.

AuthorsDebapratim Purkayastha and Manish Agarwal
InstitutionIBS Hyderabad, IFHE University, India
Competition Year2015
PlaceWinner
TrackSustainable Finance
Key WordsSustainable Finance, Sustainability for banks and financial institutions, Banks and the Energy sector, Coal financing, Human rights as a Management issue, Human rights and sustainability, Businesses as human rights advocates, Business-government-society relationship; Stakeholder management, Stakeholder tension
CoursesElective courses in Financial Management, Corporate Sustainability, Business Ethics, Corporate Social Responsibility
Target AudienceMBA
Purchase InformationYou can purchase the case at the Case Centre.
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posted June 24, 2015

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Sistema Ser: Scaling Private Health Care for the Base of the Pyramid

Abstract

The case revolves around “Sistema Ser” (SSer) (1), a private health care organization that serves the base of the pyramid (BOP) in northern Argentina, and its founder and director, Argentine gynecologist Dr. Jorge Gronda. In the late 1990s, Dr. Gronda had begun to serve the poor—particularly women in the remote Puna region—on an unpaid, voluntary basis. Eventually, the initiative developed into a formal network of organizations comprising CEGIN (a private enterprise and medical center offering preventive and primary gynecological services); a number of affiliated physicians and other health care providers (e.g., pharmacies); and Fundación Ser (FSer), a foundation that coordinates the affiliation of network providers and markets SSer among potential members. The SSer network is financially self-sustaining and, at the same time, able to provide affordable services to its patients from the BOP. SSer is based on a system of membership cards and a network of providers that offer high-quality services at a price 40- to 60- percent lower than that of other private providers.

For more than 15 years, SSer has been delivering primary health services, which cover 80 percent of the most common low-cost and non-complex health problems, mainly to people at the BOP and within San Salvador, the capital of the province of Jujuy. Recent developments have led Dr. Gronda to consider options for scaling his organization’s impact. He wonders whether he should geographically expand the delivery of SSer’s existing service portfolio in order to reach BOP communities outside of San Salvador, or whether he should extend SSer’s service portfolio by delivering additional services in San Salvador.

The case illustrates the development path of a social innovation born of a volunteer initiative and transformed into a sustainable structure. One of its main objectives is to make students aware of key factors that need to be considered in regard to scaling decisions in general and those at the base of the pyramid in particular.

(1) At the time this case was finalized, the founders of Sistema Ser were planning to rename their organization into “Umana”.

AuthorsSilke Bucher (HEC Montréal), Urs Jäger (INCAE Business School) and Andrea M. Prado (INCAE Business School)
InstitutionHEC Montréal (Canada), INCAE Business School (Costa Rica)
Competition Year2015
PlaceSecond Prize
TrackSocial Entrepreneurship
Key WordsSocial innovation, bottom of the pyramid, scaling, inclusive business, social entrepreneurship, sustainable strategies
CoursesSocial entrepreneurship, sustainable strategic management, healthcare
Target AudienceUndergrads, Master's students, practitioners
Purchase InformationThe case is published at the Journal of Business Research via open access here.
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posted June 24, 2015

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Fairphone: Organising for Sustained Social Impact

Abstract

With no previous experience in the mobile phone industry, Bas van Abel, an industrial designer based in Amsterdam, started Fairphone as an NGO [non-governmental organisation] awareness campaign in March 2010. He hoped that by inviting the public to design collaboratively a prototype of a “fair” smartphone, the campaign would raise the Dutch public’s awareness of the link between mobile phones and minerals mined in the context of a bitter civil conflict in the Democratic Republic of Congo (DRC). Van Abel did not intend to produce a functional, commercial smartphone; his goal was simply to raise public awareness.

However, by January 2013, through a series of serendipitous events, interaction with industry actors, and encouragement from sections of the Dutch public, the awareness campaign had morphed into the social enterprise Fairphone. With co-founder Miquel Ballester, van Abel wanted Fairphone to produce “a seriously cool phone putting social values first.” Within six months of the company’s founding, Fairphone attracted a large following in the media and among socially-conscious consumers across Europe. In mid-2013, these customers fully financed the production of 25,000 smartphones (priced at €325 apiece) through a crowdfunding initiative—a remarkable token of trust in a start-up that had never produced a smartphone.

Van Abel and the Fairphone staff, consisting largely of “creatives” and “story-tellers,” had to learn very quickly how to produce a high-quality smartphone—a complex product—in a competitive industry while keeping their promise to improve the social welfare of underrepresented mine and factory workers along the mobile phone industry’s supply chain. After experiencing myriad quality problems while manufacturing the phone, van Abel and the Fairphone staff successfully delivered the first batch of “fair” smartphones to customers by Christmas 2013. In February 2014, after all smartphones had been delivered to customers, van Abel felt that it was time to take stock and plan for the company’s future. In order to fulfil its two-fold mission, Fairphone had to scale up production to become a “real” company. How should Fairphone reach a larger audience with its message and product? How should the organisation be designed in order to achieve this mission?

AuthorsOnajomo Akemu and Gail Whiteman
InstitutionRotterdam School of Management, Erasmus University, Netherlands
Competition Year2015
PlaceFirst Prize
TrackSocial Entrepreneurship
Key WordsSocial entrepreneurship, conflict minerals, mobile phone industry, Congo, activism, organisational structure
CoursesEntrepreneurship, business & society, CSR
Target AudienceMBA, executives, masters
Purchase InformationYou can purchase the case at the Case Centre here.
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posted June 24, 2015

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Roba Amiga: Social Entrepreneurship in Textile Waste Management

Abstract

 

The case focuses on Roba Amiga, a network of organizations devoted to collect, select and sell second-hand clothes in Barcelona and its surrounding, with the aim of creating jobs for people excluded from the job market as well as contributing to mitigating the environmental problem of textile waste. The case traces the history of Roba Amiga, leading up to two of the organizations in the network forming a Work Integration Social Enterprise and opening a new sorting plan that allowed them to grow and gain in efficiency. The case explores the alternatives for further growth and examines the advantages and disadvantages for the different organizations staying together under a common brand, even though they have slightly different priorities. It also leads to discuss the social challenges involved in the exporting of clothes to developing countries and to question whether Roba Amiga should be more concerned about this fundamental aspect of its business model.

AuthorsDaniel Arenas, Pablo Sánchez and Solange Hai
InstitutionESADE Business School, Spain
Competition Year2015
PlaceRunner up
TrackSocial Entrepreneurship
Key WordsTextile waste, second-hand clothes, export, WISE
CoursesCSR, social entrepreneurship, business and society
Target AudienceMBA, MSc
Permission RightsThis case is part of the oikos free case collection. Download a free online copy below.
DownloadFree Online Copy

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posted June 24, 2015

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Building a Sustainable Enterprise with the Power of Local Communities- The Journey of Neev Herbal Handmade Soaps

Abstract

Poverty, illiteracy and gender discrimination have been the underlying factors that have stifled development in the villages of Jharkhand state in northern India. In 2006, Hudlung village located in the outskirts of the steel city of Jamshedpur was acutely stricken by poverty with about 80% of the population living below the poverty line, as defined by the Government of India. Gender discrimination against females was also a rampant practice and avenues of education as well as employment were few and far between. The men of the households used to work in the paddy fields or as contract laborers in the steel industry, while the women took care of household chores.

This abysmal situation was prevalent when the Jains, Anurag and Shikha, decided to initiate a new paradigm of socio-economic empowerment of the local community. In 2007, they started Neev Herbal handmade Soaps with the vision to produce the highest quality hand crafted herbal products while providing a dignified means of employment for rural women and rejuvenating the rural economy. The enterprise has since had a remarkable transformative effect on the village community.

Currently, Neev products are primarily sold through 180 retail store partners spread across India and to a lesser extent through 10 niche e-tailing partners. The latest annual revenues for Neev stand close to Rs. 4.5 million. With a good market presence in the Metros and Tier I cities, Neev is exploring the prospects of partnering with mass market e-tailers to target customer bases in Tier II and Tier III Indian cities. This would not only generate more employment opportunities for the women of Hudlung but also enable it to compete with other herbal soap manufacturers who have already adopted the e-tailing channel.

AuthorsSaurav Kumar Das and Sanjana Grover
Institution: Xavier School of Management, India
Competition Year2015
PlaceRunner up
TrackSocial Entrepreneurship
Key WordsHand made soaps, community empowerment, e-tailing, Sustainable Manufacturing
CoursesOrganizational Change & Development, e-commerce (Marketing), Social Entrepreneurship, Strategic Management
Target AudienceMBAs, Undergrads, Aspiring Social Entrepreneurs
Permission RightsThis case is part of the oikos free case collection. Download a free online copy below. If you are a faculty member and you are interested in teaching this case, you can request a free teaching note by sending us an email to freecase@oikosinternational.org.
DownloadFree Online Copy
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posted June 24, 2015

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Arunachalam Muruganantham: A Social Entrepreneur Innovating in a Woman’s World

Abstract

Considered taboo in many parts of the world, menstrual hygiene was a subject ridden with many myths and misconceptions, especially in a country like India. Arunachalam Muruganantham (Muruganantham), was the man who had revolutionised female sanitary hygiene and had created a lasting impact on the health and livelihood of women, mostly in rural India. With his pioneering and patented invention of a low cost sanitary pad making machine, Muruganantham had a vision to make India a ‘100% sanitary napkin using country.’

A majority of the Indian women adopted unhygienic methods during their periods, increasing the incidence of reproductive tract infection and cervical cancer. Through hard work and perseverance, Muruganantham had popularised his invention not only in India but also internationally. In doing so, he chose to market his machine mainly to NGOs and Self Help Groups (SHGs), who in turn employed women to manufacture the low-cost napkins. Operated in a totally self sustaining manner, this direct selling model provided employment opportunities to rural women, who also spread awareness about the importance of menstrual hygiene.

In taking his project forward, Muruganantham faced competition from other NGOs who were operating in this field and from multinationals who had launched lower cost brands. Also, the Government, which had a key role to play in impacting female hygiene, did not seem too encouraging of the SHGs. With awareness levels abysmally low and response to sanitary napkin usage quite discouraging, would Muruganantham be able to realise his vision to make India a ‘100% sanitary napkin using country’?

AuthorsDoris Rajakumari John
InstitutionAmity Research Center, India
Competition Year2015
PlaceThird Prize
TrackSocial Entrepreneurship
Key WordsEntrepreneurship, Menstrual Hygiene, Social Innovation, Grass root Innovation, Women Empowerment, Rural Job Creation, Developing Countries, Word-of-mouth Marketing
CoursesSocial Entrepreneurship, Ethics and Social Responsibility
Target AudiencePost Graduate Management Students
Permission RightsThis case is part of the oikos free case collection. Download a free online copy below. If you are a faculty member and you are interested in teaching this case, you can request a free teaching note by sending us an email to freecase@oikosinternational.org.
DownloadFree Online Copy
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posted June 24, 2015

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From Sweatshops to Sustainability: Wal-Mart’s Journey in Bangladesh

Abstract

Walmart the largest company in the world by revenues as of 2014, operated on the philosophy of providing its consumers products at the lowest possible price. To achieve this, it procured goods from various parts of the world. The clothes were mostly procured from Bangladesh. Walmart and other global retailers were attracted to Bangladesh due to cheap labor and low production costs. They usually outsourced their production to some of the factories in the country. At that time they ensured that the producer and the factory complied with laws and have other facilities in place for workers, pertaining to timings, leave, overtime, etc.

But not all the production was carried out in these factories. Due to tough deadlines set by the retailers, the factories usually outsourced a part of their work to subcontractors, who, in turn, subcontracted to small Tier 3 factories. These factories located in dingy by lanes of the industrial areas in and around Dhaka, capital of Bangladesh, did not have basic facilities for the workers, and lacked safety measures.

The Readymade garment industry in Bangladesh witnessed several accidents, but these did not draw the attention of the administration or the global retailers. But two accidents, one in 2012 (factory fire at Tazreen) and the other in 2013 (collapse of Rana Plaza building, which housed several factories), that killed more than 1200 workers, and left several more injured and handicapped, brought the attention of the global community to the prevailing working conditions in the Bangladesh sweatshops. At the same time, global retailers like Walmart which sourced from these places came under severe criticism.

Walmart, which boasted of being a responsible company, took several initiatives to reduce its impact on environment and also source goods ethically. When it came to Bangladesh, though there was evidence that clothes were being made for Walmart at the factories where the accidents occurred, it refused to take any responsibility, stating that the subcontracts were given without its knowledge.

Some of the experts said that it was the government’s responsibility to ensure minimum wages, good working conditions and safety for their citizens. The garment industry of Bangladesh helped the economy and contributed to the GDP growth in the country. It also provided employment to scores of unemployed women and empowered them, in a male dominated society.

The case talks about the garment industry in Bangladesh, the role of global retailers in the development of the industry, its impact on the economy, and the roles and responsibilities of global corporations like Walmart in a developing economy like Bangladesh. It also discusses the challenges organizations face in balancing demand for sustainability with consumers demand for low cost and high quality, and shareholders demands for higher profits.

AuthorsSurojit Mahato and Indu Perepu
InstitutionIBS Hyderabad, IFHE University, India
Competition Year2015
PlaceRunner up
TrackCorporate Sustainability
Key WordsCSR, multinational corporations, ethical procurement, sweatshops
CoursesCorporate Sustainability, Corporate Sustainability, International Management Strategy
Target AudienceMBA, Undergrads, Executives
Purchase InformationYou will be able to purchase the case at the Case Centre shortly.
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posted June 24, 2015

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Apple and Conflict Minerals: Ethical Sourcing for Sustainability

Abstract

The success of Apple Inc.’s products like the iPhone and the iPad made the company rely on manufacturers in Asia to produce its products at a lower cost. Since these manufacturers were not too particular about checking the origins of the minerals they used, Apple had to face accusations by activists that it was using conflict minerals in its products. These conflict minerals led to the abuse of human rights in the strife torn parts of the world. Extraction and sale of conflict minerals like tin, tungsten, and tantalum extracted from illegal mines in the Democratic Republic of Congo (Congo) and surrounding countries funded armed militia who fought against the government and violated the human rights of people living in the conflict prone areas.

Apple had taken various initiatives to tackle the challenge of conflict minerals since it started facing the heat from some activist groups in 2010. Despite all the efforts made by Apple, the company faced an uphill task. The problem for Apple was compounded by the fact that the supply chain for such minerals was opaque and it was not so easy to determine which refiners and smelters around the world were financially fueling violence in the war-torn regions. There was also the possibility that such minerals could slip into its supply chain through indirect routes.

Going forward, the question before Apple was what more could the company do to ensure that all its products were free from conflict minerals. How could it ensure that the procurement of minerals through its supply chain did not profit armed groups in producer countries? How could it assure stakeholders that their products did not contain any primary commodities that were linked to the funding of conflicts? How could it ensure all these, while also seeing to it that the action taken by the company does not have an adverse effect on the livelihoods of people who work in and around artisanal mines and their communities?

AuthorsDebapratim Purkayastha and Adapa Srinivasa Rao
InstitutionIBS Hyderabad, IFHE University, India
Competition Year2015
PlaceSecond Prize
TrackCorporate Sustainability
Key WordsConflict minerals, Human rights, Consumer electronics industry, Sustainability, Sustainable supply chain, Ethical Supply chain, Ethical sourcing, Supply chain transparency, Supply chain risk mitigation, Supply chain mapping, Supply chain audit and reporting, Stakeholder management, Stakeholder tension, Systems approach
CoursesCorporate Sustainability, Business Ethics, Corporate Social Responsibility, Supply Chain Management
Target AudienceMBA
Purchase InformationYou can purchase the case at the Case Centre.
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posted June 24, 2015

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The German ‘Energiewende’: RWE’s Strategic Choice

Abstract

In July 2012 Peter Terium was named the new CEO of RWE, the biggest electricity provider in Germany. RWE has performed financially well over the previous 40 years with annual sales greater than €50bn since 2010. However, in 2014 the company had to disclose €2.8bn of net losses for the first time in its history.[i] This prompted an urgent need to change RWE’s corporate strategy. Peter Terium now faces a number of challenges in order to guarantee the profitable future of RWE.

First, RWE has to deal with the consequences of a variety of regulations, namely: (a) The German electricity market liberalization, (b) the renewable energy law in Germany, (c) the European Emissions Trading System and (d) the German nuclear phase out. These regulations contribute to a major shift in the electricity market, often referred to as the German Energiewende. The cornerstones of this Energiewende are decentralized and renewable power generation. RWE’s business model is built on centralized electricity generation based on coal and nuclear power and, thus, is contradictory to the German Energiewende.

Second, RWE is endangered by market developments: (a) RWE’s bottom-line is suffering from decreasing electricity market prices as a result of an oversupply of electricity due to the growing amount of renewable sources. (b) Many small competitors, sometimes even RWE’s former customers, have entered the electricity market thereby decreasing RWE’s market share. (c) In 2014 one of RWE´s main competitors E.ON started to respond to the altering market conditions and announced a substantial change in its business strategy and to focus entirely on renewables.

Third, the company faces specific expectations from external stakeholders: (a) As a consequence of the developments above, 10,400 jobs are up for redundancy.[ii] Local governments – of which some are RWE`s shareholders – are worried about these figures. (b) RWE also carries reputational risks because some well-known NGOs like the WWF criticize its lack of a low-carbon strategy.

Finally, the organization also faces an internal challenge. The internal structures have developed over decades and are based on the dominant logics of centralized coal and nuclear power production. As is typical for change processes in large organizations, these dominant logics may lead to structural inertia.

This case has been written to facilitate classroom discussion and engage debates for MBA/MS-level students in the form of a stakeholder role-play. The case focuses on the challenge of RWE to determine its future corporate strategy. It enables students to understand how legislative developments, market transformations and new technologies can fundamentally impact incumbents in a traditional industry.

[i] RWE, Annual Reports 2010 – 2013

[ii] “RWE streicht jede zehnte Stelle“, Zeit Online, http://www.zeit.de/wirtschaft/unternehmen/2013-11/energiekonzern-rwe-stellenabbau, accessed on September 30, 2014

Authors: Timo Busch and Marcel Richert
Institution: University of Hamburg, Germany
Competition Year2015
PlaceThird Prize
TrackCorporate Sustainability
Key WordsEnergy transition, renewable energy, electric utilities, low carbon strategy
CoursesStrategic management, CSR, business ethics, finance
Target AudienceMaster level, MBAs
Permission RightsThis case is part of the oikos free case collection. Download a free online copy below. If you are a faculty member and you are interested in teaching this case, you can request a free teaching note by sending us an email to freecase@oikosinternational.org.
DownloadFree Online Copy

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oikos International

posted June 24, 2015

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