‘Enrich Not Exploit’: Can New CSR Strategy Help Body Shop Regain Glory?

Abstract

This case looks at some key challenges before Jeremy Schwartz (Schwartz), CEO of The Body Shop International Plc. (Body Shop), and its International Director of Corporate Responsibility and Campaigns, Christopher Davis (Davis), as they try to re-establish the company as a leader in ethical retail and maintain its distinct image amid tough competition and boost sales.

Body Shop was regarded as a pioneer in modern CSR practices and was strongly associated with the social activism of its founder, Dame Anita Roddick (Roddick). The case discusses how since its inception, Body Shop had endorsed and championed various social issues such as opposition to animal testing, development of community trade, building of self-esteem, campaigning for human rights, and protection of the planet. Through these initiatives, the company had cultivated a loyal base of customers. The case goes on to discuss the acquisition of Body Shop by the beauty care giant, L’Oréal SA (L’Oréal), and how its ethical image suffered after the takeover. Customers and activists felt betrayed by the deal as Roddick had previously been vocal in her criticism of companies like L’Oréal on account of their alleged unethical policies. According to Schwartz, after the death of Roddick in 2007, Body Shop’s fortunes reportedly took a sharp downturn and its ethical message faded.1 Moreover, with a host of new competitors making their way into the green cosmetics market, the sales of Body Shop plummeted.

In 2016, to reinvigorate the brand, position itself as a more ethical business, and reassert its position as a trailblazer of positive change, Body Shop unveiled its new global CSR campaign. The new commitment entitled ‘Enrich Not Exploit’ outlined 14 sustainable targets with a focus on people, products, and the planet, touching all areas of the business, to be delivered by 2020. The initiative was aimed at supporting Body Shop in its aim of becoming the world’s most ethical and sustainable global business. But will this help Body Shop regain its past glory?

AuthorsSyeda Maseeha Qumer & Debapratim Purkayastha
InstitutionsIBS Hyderabad, IFHE University, India
Competition Year2017
PlaceRunner Up
TrackCorporate Sustainability
Key WordsCSR, Socially Responsible Investing, Environmental Performance, Social Performance
CoursesSustainable Finance, Strategic Management, Finance, Business Sustainability, Business and Society, or Environmental Entrepreneurship
Target AudienceMBAs, Undergrads
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oikos International

posted June 19, 2017

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Bridge International Academies

Abstract

Bridge International Academy (Bridge), the world’s largest and fastest growing private school chain, is known for its radically innovative “Academy-in-a-Box” model, which is a scalable and easily replicable model that offers low cost unique solutions to the problem of quality education to children at the bottom of the pyramid. With the mission of providing ‘Knowledge for All’ Bridge has enrolled more than one hundred thousand students in Kenya and other developing countries. The unique model revolves around the developing of rigorous course content by expert teachers from around the world and the “Scripted Instruction Methodology” to ensure standardization of delivery in the classrooms. The model that delivers affordable education at about $6 a month needs to scale up and enroll half a million students to break even.

While May and Jay, the founders of Bridge, were well on course to achieve their goal of enrolling 10 million poor students by 2025, they faced resistance from teachers’ associations which felt that encouraging Bridge would lead to privatization and commercialization of education. The governments also brought in new legislations that seriously hampered its business model by increasing costs and stalling its scalability. May and Jay now have to take a decision on how to rework the existing model to overcome regulatory hurdles and opposition from educators in order to achieve their goal. The case has important decision points and ramifications for all social entrepreneurs who have built or are building a sustainable business model to offer quality primary education to the poorest of the poor.

AuthorsManish Agarwal and D. Satish
InstitutionIBS Hyderabad, IFHE University, India
Competition Year2017
PlaceThird Prize
TrackSustainable Entrepreneurship
Key WordsCSR, Socially Responsible Investing, Environmental Performance, Social Performance
CoursesSustainable Finance, Strategic Management, Finance, Business Sustainability, Business and Society, or Environmental Entrepreneurship
Target AudienceMBAs, Undergrads
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oikos International

posted June 19, 2017

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Wind in the Sails: Managing Social Acceptance of Large Wind Energy Projects in Switzerland

Abstract

Shortly after the Fukushima meltdown of 2011, the Swiss government developed an Energy Strategy 2050, aimed to build up renewable energy capacity, improve energy efficiency and phase out nuclear energy. Yet, growth in the wind sector had been disappointing. This case study examines the factors that took the wind out of sails of large wind projects in Switzerland, paying special attention to the risks associated with public policy and stakeholder opposition. Though focusing on Switzerland, the lessons learned from the case study are applicable internationally, with multiple examples of large infrastructure projects being halted or severely delayed by public opposition and red tape.

Staged in May 2017, the case centers around Nadine Haller, who has been developing a large wind project for the last five years. She has just learned the news that the Energy Strategy 2050 has been accepted by the popular vote and she is contemplating what this result means for her project.

The case study is based on interviews with more than 20 wind project developers and permitting authorities. Several teaching options are included. The storyline can be updated as relevant news develops, creating new challenges for Nadine. The case offers an accompanying cash flow calculation model, teaching students that social acceptance and regulatory compliance come at a significant cost. Another option is a role-play game, where students try wearing hats of different project stakeholders: the project developer, the head of municipal government, a local landowner, a journalist, and a member of an environmental NGO, among others. The case also offers a framework to systematically approach project-related risks and develop risk-mitigating strategies. It should be relevant to graduate students from a variety of backgrounds, including communications, finance, law, and economics.

AuthorsAnna Ebers Broughel
InstitutionUniversity of St.Gallen, Switzerland
Competition Year2017
PlaceThird Prize
TrackCorporate Sustainability
Key WordsCSR, Socially Responsible Investing, Environmental Performance, Social Performance
CoursesSustainable Finance, Strategic Management, Finance, Business Sustainability, Business and Society, or Environmental Entrepreneurship
Target AudienceMBAs, Undergraduates
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@oikos-international.org.
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oikos International

posted June 19, 2017

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Social Responsibility in a Context of Globalization of the Markets: Comparative Study of Public Policies Articulation in the Pharmaceutical Industry of Brazil and Spain

Capitalist society faces one of its greatest challenges in the beginning of the millennium: How can sustainable social, economic and environmental development be reconciled with capitalist drivers of efficiency and generation of profits? With increasing international integration and pressure from financial markets, typical of the current neoliberal power model, it calls into question the extent to which corporations can make elections truly free in order to build a more responsible world. Furthermore, it is worth questioning whether it is possible to demand or even expect that states and governmental institutions participate and intervene more in society with increasing budgetary constraints and loss of autonomy. Based on these concerns about the role of corporations and about the validity of the concepts of corporate social responsibility and sustainability, this research aimed to evaluate CSR practices by using the pharmaceutical sector as an empirical reference and analyzing social and environmental performance indicators, the influence of the institutional framework of national systems and strategic execution case studies of two pharmaceutical corporations within the institutional frameworks of Brazil and Spain. The study demonstrated the importance of legal and regulatory frameworks by conditioning and limiting decision-making about access to medicine, which foster or undermine responsible behavior by organizations. The research concludes that the institutional framework has a paramount effect on the result of the interaction between corporations and society, through public policies intelligently conceived to promote the highest possible level of general welfare. In the case of the pharmaceutical sector, policies to adequately remunerate capital to offset the business risk of investing in research and development and, at the same time, promote the general public’s highest possible level of access to advances in biotechnology and biomedical research.

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oikos International

posted February 14, 2017

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Catalyzing a Shared Sustainable Future: Responsible Banking at Yes Bank

Abstract

As a leader in sustainable finance in India, Yes Bank reached the milestone of mainstreaming sustainability within its core business principles with a vision of evolving as the ‘Best Quality Bank of the World in India by 2020’. The sustainable corporate performance of the bank focussed on the triple bottom-line ethos, wherein the three interlinked measurement elements — people, planet, and profit — were interwoven with its business strategy. According to Yes Bank, its sustainable finance initiatives not only assisted it in creating value for stakeholders but also had a long-term positive impact on the community as a whole. The sustainable finance guidelines of the bank enabled it to integrate social, economic, and environmental policies into its business framework, and this attracted investments from Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI) for building a clean and green India. The bank’s active presence in areas like development banking, micro finance, financial inclusion, agriculture, and investment in sustainable ventures created an enabling environment for the most disadvantaged stakeholders in society to aspire for a sustainable future and also enabled the bank to come up with some innovative products and services. As a sustainability leader for India, the bank’s sustainable finance approach distinguished it from its rivals and helped it emerge as a leading bank in the country despite its being a late entrant into the market. However, the bank admitted difficulties in communicating its sustainable objectives to its stakeholders.

This case is designed to enable students to: 1) Understand the concept of sustainable finance and understand why new age banks like Yes Bank were focusing on the triple bottom line ethos; 2) Study and analyze the sustainable finance principles and practices of Yes Bank; 3) Discuss and debate whether the sustainability initiatives of the bank delivered tangible results in terms of having a social, economic, and environmental impact on the community in the long run; 4) Understand the key concern for Yes Bank — communicating its sustainability initiatives to stakeholders — and explore the ways in which it can address the issue.

AuthorsDebapratim Purkayastha, Benudhar Sahu and Trilochan Tripathy
InstitutionIBS Hyderabad, IFHE University, India
Competition Year2016
PlaceRunner-up
TrackSustainable Finance
Key WordsSustainable finance, Responsible banking, Socially responsible investment, Climate change, ESG dimensions, Environmental Management Systems, Natural capital considerations, Green bonds, Microfinance, Financial inclusion, Bottom-of–the Pyramid customers, Sustainability Reporting, Stakeholder tension, Stakeholder engagement and dialogue, Communicating sustainability
CoursesFinance, Corporate Social Responsibility, Corporate Sustainability
Target AudienceMBA
Permission rightsThis case will be published at the Case Centre shortly. You can download an inspection copy below.
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oikos International

posted June 27, 2016

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The Case for Divestment: Rockefellers’ Fortune?

Abstract

Founded in 1940, the Rockefeller Brothers Fund (RBF) is a private charitable foundation endowed with John D. Rockefeller’s heritage made in the fossil fuel sector from so called “Big Oil” companies. While it is RBF’s mission to advance social change and to contribute to a more just, sustainable, and peaceful world, in 2014 the fund was still invested in fossil fuels – implying a disconnect between the fund’s investment strategy and the commitment to tackling climate change. Due to this disconnection and the recent emergence of the fossil fuel divestment movement in society, RBF considered withdrawing all funds from fossil fuel investments.

Today, Stephen Heintz, president of RBF, set up a board meeting with all officers and trustees of RBF to discuss and decide whether the fund should fully divest from the fossil fuel industry. Given the (historic) importance of fossil fuel to the Rockefeller fortune, he was faced with a symbolic as well as fateful decision for RBF. This decision process represented a complex and multifaceted challenge: RBF’s moral obligation of preventing climate change and the economic duty as an institutional investor to preserve and increase endowment required balance. Stephen Heintz knew that in order to make a decision he would have to not only use solid financial calculations but also engage in extensive dialogue with all RBF relevant stakeholders.

Working on this case, students will be challenged to analyze investment performance from a financial as well as sustainability perspective, bring together arguments for and against divestment, and align conflicting interests through stakeholder dialogue.

AuthorsKatrin Gödker, Josua Oll, Franziska Sump and Julia Frech
InstitutionUniversity of Hamburg, Germany
Competition Year2016
PlaceFirst Prize
TrackSustainable Finance
Key WordsSustainable finance, divestment, climate change, portfolio management, stakeholder dialogue
CoursesFinance
Target AudienceMBAs, Undergrads
Permission rightsThis case will be published at the Case Centre shortly. You find an inspection copy for download below.
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oikos International

posted June 27, 2016

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KTDAL – Building Sustainability through Inclusion

Abstract

Kenya Tea Development Agency Limited (KTDAL) follows a unique model under which small tea farmers are shareholders. By the end of 2013, it had around 560,000 such shareholders. The farmers not only get money for the tea leaves they produce but also receive a share in the profits, which means they receive a higher price per kg of tea leaves than tea farmers anywhere else in the world. KTDAL’s inclusive model has empowered the farmers to control and own the entire tea industry value chain. KTDAL’s market driven sustainable model has managed to get the market closer to the small tea farmer and make Mombasa one of the world’s top tea auction centres.

KTDAL promotes sustainable agricultural practices among its small farmers through its Farmer Field Schools and, apart from achieving economies; the business model reduces costs by collective bargaining. It improves efficiencies and quality by leveraging on modern agricultural and processing techniques. KTDAL’s benefits go beyond commercial viability with the social, environmental, and economic lives of 4 million people being impacted, directly or indirectly.

The KTDAL business model, which has made small farming viable, can be replicated to address some of the basic issues and challenges facing the developing world, which has millions of small farmers. However, the model has been facing tough challenges of late. The KTDAL small farmers are facing price fluctuations, rising production costs in the form of increasing labour costs, environmental concerns, and unfavourable climatic conditions.

Amidst this uncertainty, some farmers have called for abandoning KTDAL and going back to the old Parastatal system in which the government of Kenya provided aid and relief to small farmers in case of natural disasters like floods and famine and also purchased the produce at a minimum support price. This facility is not available to the KTDAL small farmers as KTDAL is registered as a private company. It remains to be seen how KTDAL will address this rebellion within and whether it will emerge stronger.

AuthorsD. Satish and Nagendra Kumar M. V.
InstitutionIBS Hyderabad, IFHE University, India
Competition Year2016
PlaceThird Prize
TrackCorporate Sustainability
Key WordsSustainable Business, Inclusive Business Model, Social Vision, Corporate Social Responsibility, Parastatal system, Human Development Impact, Environmental Impact, Sustainable Farming, Sustainable Reporting, Two Leaves and a Bud, , Mombasa Tea Auction Center, Farmer Field Schools
CoursesStrategic Management, Sustainable Business Management
Target AudienceMBA, Undergrads, PhD
Permission rightsThis case will be published at the Case Centre shortly. You can download an inspection copy below.
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oikos International

posted June 27, 2016

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Corporate Governance and Firm Performance: The Sustainability Equation?

In order to achieve a sustainable growth and to respond to social pressures, firms develop their Corporate Social Responsibility (CSR) policy. Corporate Governance, especially the board of directors, plays here a strategic role by integrating the environmental, social and societal objectives in the decision-making process. Based on the French case, this dissertation analyzes how corporate governance may foster CSR inside firms. First, I demonstrate that CSR motivation is an important trigger of CSR awareness. Second, I study how the composition of board of directors theoretically affects firm outcomes. Third, I evaluate three CSR demands from shareholders, stakeholder and society in terms of board composition (independence, stakeholder representation and gender diversity inside the boardroom) and their impact on firm performances. I conclude with some recommendations in terms of public policy and regulation to foster sustainable development through firms.

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oikos International

posted March 22, 2016

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oikos Members Pursue International Impact

On June 21st, 2015, three oikos members traveled to New York City with a bag full of aspirations and enthousiasm. Anita Negri, Julia Weber (oikos Vienna, COMMIT Manager) and Nikolay Ivanov (oikos Copenhagen, CBS PRME), first attended the GRLI Annual Meeting (June 21st and 22nd).

On the first day of the GRLI AGM, the oikos team met with Chris Taylor, the so-called, mentor of COMMIT. Chris has been involved in GRLI for a long time and is the key link in the cooperation between oikos and GRLI for COMMIT. He is also a a consultant at the Oasis School. This meeting served to revise and complete last-minute details for the workshop that the team would host on the second day of the GRLI AGM.

After an interesting introduction, a magnificent dinner was held next to the World Trade Center. Over dinner several interesting conversations were held which brought multiple perspectives together on how to advance cooperation between business and universities and how the educational systems around the world vary. The interest in COMMIT rose as well, as the vast presence of faculty was interested in understanding how we can truly make a step forward to achieving more responsible management education.

On the second day of the GRLI AGM, the COMMIT workshop was amongst the many workshops which were proposed. The workshop focused on asking challenging questions to the participants and making them realize the pressing need to change management education and our methodologies. With the use of several innovative methods, amongst which the collaboratory, the COMMIT workshop was named a success. The outcomes included commitments from professors and deans which will be soon published and an overall increase in awareness and understanding of the possibilities to further explore alternatives in teaching. The GRLI AGM closed with another magnificent dinner where like-minded people continued making plans and commitments to improve current educational systems.

On June 23rd the PRME Global Forum started. After the opening speeches, the first panel discussion took place. This panel also featured the oikos President, Anita Negri. By bringing a youth perspective on the need to change management education, Anita pointed out several points that she gathered throughout her work within, and outside, oikos. She highlighted the need for more collaboration, a true integration of sustainability and responsibility in all courses, an improvement in skills and values directed at students and more. Her interventions were very well received and sparked interesting discussions in the round tables that followed.

The first day was continued with another panel discussion and parallel workshops where participants got in touch with best practices and started new partnerships and projects.

The second day featured another workshop hosted by oikos and COMMIT: the student perspectives workshop. The organisers were delighted to see a full room for this workshop where, not only oikos and COMMIT were presented, but also student organizations from New Zealand, Brazil and Canada displayed their achievements and goals. Throughout the session groups were formed to discuss three topics: what changes are required in curricula, what changes are required in teaching and what changes are required in universities. Each team chose their preferred topic and each team was requested to present their findings in a creative manner. The session also featured some dancing to convey the message that education should include more fun!

The PRME Global Forum was concluded with a closing ceremony, a lot of smiles, achievements and positive outlooks for the future.

On behalf of the oikos community, we would like to thank GRLI and PRME for having given us the opportunity to participate to these events and contribute with our youth perspectives. Join all these creative and pro-active minds in changing education, we can do this!

Some more insights on the conferences can be found on Anita’s twitter account.

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oikos International

posted July 6, 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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oikos International

posted June 24, 2015

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