Eliminating Modern Slavery from Supply Chains: Can Nestlé Lead the Way?

Abstract

The case discusses the global food processing giant Nestlé’s problems relating to modern slavery in its cocoa supply chain. The company faced allegations of using child labor in its cocoa supply chain in Ivory Coast and was also accused of failing to disclose this to customers at the point of sale. Some critics argued that Nestlé was not doing enough and was not being transparent enough in its efforts to eliminate child labor within its global cocoa supply chain. However, in a rare disclosure, Nestlé reported in 2015 that it had uncovered forced labor in its seafood supply chain in Thailand. Magdi Batato  (Batato) Executive Vice President and Head of Operations  at Nestlé  said that the company was committed to preventing and eliminating child labor in its supply chain. Analysts wondered whether Nestlé’s admission of slavery was honest or was just an attempt to fend off child labor allegations in other parts of its business and bring consumers onside.

The case explores how modern slavery is a complex supply chain issue for Nestlé and why it needs to be addressed. Though Nestlé had implemented an action plan to combat slavery within its supply chain, the obnoxious practice still permeated West African cocoa farms, and was in fact on the rise. Nestlé had tried to maintain ethical and environmental standards within its supply chain but how well these initiatives matched up to the challenges of modern slavery was still questioned by its critics. According to them child labor in Nestlé‘s cocoa supply chain was a complex issue and gathering reliable evidence about what was happening on the ground would not only be  vital, but also challenging for Batato. Given its global scale and influence, can Nestlé play a crucial role in eliminating slavery from the global cocoa supply chain? Can Batato lead the company’s ongoing commitment to tackle slavery? Can its commitment go far enough to enact change and put an end to modern slavery in the global cocoa industry? How?

This case is meant for MBA students as a part of their Corporate Sustainability/ Corporate Social Responsibility/ Business Ethics curriculum. It can also be used in the Operations Management/ Supply Chain Management curriculum. This case is designed to enable students to: 1) Understand the concept of modern slavery, its various forms, and the need for companies to address this issue; 2) Understand the relationship between modern slavery and CSR; 3) Identify the barriers to eliminating modern slavery; 4)  Evaluate the actions taken by Nestlé’s to combat slavery in its supply chains and identify the challenges faced by the company in dealing with the issue; 5) Explore ways through which Nestlé can eliminate modern slavery from its cocoa supply chain.

AuthorsSyeda Maseeha Qumer & Debapratim Purkayastha
InstitutionICFAI Business School, Hyderabad, India
Competition Year2018
PlaceFirst Prize
TrackCorporate Sustainability
Key WordsModern Slavery, Corporate Social Responsibility, Human rights, Sustainability, Carroll’s Pyramid of CSR, Managing change, Ethical supply chain, Supply chain mapping, Supply chain audit
CoursesCorporate Social Responsibility, Business Ethics, Supply Chain Management
Target AudienceMBAs
Permission rightsThis case will be published at the Case Centre shortly. You find an inspection copy for download below.
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posted June 4, 2018

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‘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
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 19, 2017

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Ten Thousand Villages in Crisis: Can the Fair Trade Pioneer Survive and Flourish in an Economic Downturn?

Abstract

This two-part case examines a major reorganization process which took place at Ten Thousand Villages Canada in 2013, as a response to severe challenges from the aftermath of the 2007-08 global financial crisis. Ten Thousand Villages is one of the oldest fair trade organizations in North America, whose history can be traced back to craft sales in 1946. The case was developed in close collaboration with managers and volunteers of Ten Thousand Villages Canada, as well as their producer partners in Kenya.

The Part A case provides an overview of Ten Thousand Villages (e.g., history, producer partnerships, operation in Canada) and the financial challenges faced by the organization in 2013. Part A facilitates the discussion of how the organization could be revived at the verge of bankruptcy, specifically from the perspective of a senior manager who must develop a plan to reach a break-even point within 12 months. The Part B case presents the actual decisions of the leadership team and what happened afterwards. By studying this case, students are expected to gain an in-depth understanding of real-life challenges faced by social enterprises and develop strategic decision-making capabilities for achieving financial sustainability at the same time as pursuing social mission.

AuthorsAnna Kim & Cécilia Renaud
InstitutionsHEC Montréal & CHUM, Canada
Competition Year2017
PlaceRunner Up
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
Permission rightsThis case will be published at the Case Centre shortly.
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oikos International

posted June 19, 2017

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Coming to Fruition: Fresh Truck Aims to Increase Food Access in Boston

Abstract

Founded in 2013 in Boston, Massachusetts, Fresh Truck is a mobile fresh produce market focused on increasing access to fresh produce and nutrition education in Boston’s low-income neighborhoods. Fresh Truck is a non-profit social enterprise that earns revenue through the sale of fresh produce in various Boston neighborhoods. It has become a key part of Boston’s food access ecosystem, which includes health care centers, the City of Boston, and other non-profit organizations. To date, Fresh Truck has attracted funding through a business plan competition, a Kickstarter campaign and grants that have helped to launch two trucks serving its mission. However, to expand, Fresh Truck faces a number of key management, logistical and operational challenges that affect its economic sustainability and thus its mission. These challenges relate to customer acquisition and retention, finding time to grow, inventory control, parking issues, and measuring impact. Josh Trautwein, co-founder and executive director of Fresh Truck, must make decisions to navigate these challenges and continue daily operations as he develops and executes a strategy for growing the enterprise and helping to solve food access issues in Boston. What should Josh do to chart a course through these challenges so that Fresh Truck can earn revenue and meet its social mission?

AuthorsNardia Haigh, Anya Weber & Jennie Msall
InstitutionUniversity of Massachusetts Boston, USA
Competition Year2017
PlaceSecond 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, 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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Guayakí: Securing Supplies, Strengthening the Mission

Abstract

The case reviews the rise of Guayakí, a company that sells energy drinks produced with leaves from Yerba Mate trees, and a significant decision it now faces.  Guayakí’s drinks offer a natural alternative in the energy drink industry, which is dominated by large players selling products mainly made from water and chemicals.  The company started very small, had several “near-death” experiences, but eventually thrived, reaching $27 million in sales in 2014.  Its products are highly differentiated in the energy drink industry.

From the beginning, Guayakí has had a commitment to social justice and environmental restoration in South America.  Mate is grown best under the canopies of rainforests.  Difficult to cultivate, it is found natively in a region where Argentina, Brazil, and Paraguay meet.  Guayakí has engaged with several local communities that live in or near rainforests, to try to create a downstream market for mate that they harvest.  The company’s goal is to create 1000 jobs in this region, and to restore 200,000 acres of rainforest by 2020.

The case provides information that can be used to analyze the energy drink industry, and to appreciate the depth of Guayakí’s commitment to social and environmental goals.  The key focus, however, is on the company’s supply chain.  As Guayakí has grown and begun to require increasing amounts of mate, its model of social engagement with communities is coming under pressure.  How can it acquire enough mate to fuel its growth and yet still retain its social and environmental programs?  The case identifies and provides significant information on three options open to the company: continuing as now and scaling up via organic growth; purchasing land to secure its supply of mate, which might require restoration prior to the growing of mate; and collaborating with a land owner that shares its view of social and environmental stewardship.

AuthorsMichael Russo and Michael Crooke
InstitutionUniversity of Oregon, US
Competition Year2016
PlaceFirst Prize
TrackCorporate Sustainability
Key WordsCorporate sustainability, Entrepreneurship, Supply Chain, Energy Drink Industry
CoursesStrategic Management, Entrepreneurship, Supply Chain Management
Target AudienceMBA
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 27, 2016

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Clothes Exchange Party

oikos Bayreuth is hosting another Clothes Exchange Party to reduce waste, and overconsumption.

More information (in German) here.

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oikos International

posted May 24, 2016

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oikos Talks on Humanitarian Fashion

oikos Reutlingen is hosting an oikos Talks event with GLIMPSE FASHION which works to prevent prostitution in the fashion supply chain in India.

Find more information (in German) here.

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oikos International

posted May 17, 2016

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Modern Day Slavery in the Textile Industry

oikos Leipzig hosts a speech and discussion on modern day slavery in the textile industry. Further information (in German) is available here.

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oikos International

posted May 13, 2016

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oikos FutureLab 2016

The oikos FutureLab is the biggest event in the annual oikos calendar which gathers representatives from the entire oikos community. It provides a 2-day platform for 140 participants to inspire, discover and develop joint perspectives on the future of sustainability in management and economics. More information is available here.

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oikos International

posted April 22, 2016

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A View on the 20th oikos Conference on Food Labels

“Having been part of the oikos event calendar for more than 20 years, the oikos Conference is the oldest oikos initiative. Since its start in 1988, the aim of the project has been to organize a conference to increase awareness and knowledge about a selected environmental topic, and to generate an impact beyond the conference.

This year’s oikos Conference team, consisting of five and later six people, had the desire to try something new. The topic on the 12th and 13th November was “The Future of Sustainable Food Labels: Creation, Development and Impact”. In order to achieve the highest impact on the participants the team created a Simulation Game in cooperation with Ulrich Creative Solutions.

The two conference days were shaped by a speech, the simulation game, presentations and a panel discussion. This combination allowed the students to deepen their knowledge and actively participate throughout the whole conference and reflect what they have learned.

Beside the regular program participants had time to connect during shared meals and drinks, which created a really great atmosphere and a good working environment. The main challenge this year, beside financial troubles, was to find enough participants beside the 41 MBA students who took part.”

Learn more about the oikos Conference here. See more photos of the conference here.

Written by: Stella-Kristina Wiesner, Project Head, oikos Conference; oikos St. Gallen

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oikos International

posted December 9, 2015

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