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Entrepreneurship, Corporate sustainability, CSR, Supply chain.

Master's courses: Entrepreneurship, Strategic management.

In 2002, potential risks deriving from emerging normative demands in the CSR debate prompted Axel Springer (AS) to rethink their supply chain strategy for Russian wood. Being one of the first movers in CSR in the publishing business, AS realized that current practices could spark future public discussion that might put pressure on AS, a key player in these supply chains. In early 2002, AS and one of their main suppliers, Stora Enso, started a joint initiative to redesign the supply chain processes in two of the major Russian logging regions to improve their social and ecological performance. Sometime later, other major players in the publishing sector as well as critical reviewers from several non-governmental organizations (NGOs) were invited to participate in the design of the new voluntary sustainability initiative called “Tikhvin Chalna project”, the second phase of which was accomplished by the end of 2006.

Learn that organizations (specifically high-brand owners) are responsible for practices within their entire supply chains (social as well as environmental performance).

Explore proactive corporate sustainability, CSR strategies are market but also institutional driven; Strategizing involves forming and transforming the rules, norms and standard models of customers as well as institutions such as NGOs or governmental bodies. Whether the initiator of such strategy is successful in increasing or manipulating demands is dependent on its resources and capabilities as well as on its network position. The case supports students in understanding resources being used to successfully transform or create institutional arrangements.

Discover that the value of a business' relationships and its network position.

Teaching note, Video files

Social Entrepreneurship.

Entrepreneurship modules of undergraduate programs. The case was developed for undergraduate students taking courses or modules on non-governmental organisations (NGOs) and social entrepreneurship, with a particular focus on how social enterprises evolve in emerging markets. It may also be used to teach MBA students taking similar courses.

This case highlights the challenges NGOs face in emerging markets and provides motivation for transitioning into social entrepreneurship. The setting of the case is Nigeria where the World Bank estimates the poverty rate to be about 46 per cent. Innovative solutions, especially those originating from socially oriented organisations, are desperately needed to overcome the myriad social challenges facing Nigeria, all of which are direct or indirect consequences of poverty. Social entrepreneurship is gradually becoming a viable career option, especially as interested organisations absorb the teeming graduates from Nigerian universities, thereby themselves contributing to the mitigation of the undesirable consequences of unemployment. NGOs that primarily relied on donors are also beginning to look inwards because of the harsh economic climate in the country. With donors gradually reducing and, in some instances, withdrawing financial support, NGOs may have to look to other options for raising the needed capital to achieve set goals. Beginning in 2008, and driven primarily by spiritual and altruistic ideals, Tolulope Sangosanya (Tolu) walked the filthy streets of Ajegunle, a notorious ghetto in Lagos, where the inhabitants lived in shanties built on heaps of refuse. Shortly after that, she established an NGO – LOTS Charity Foundation – supported mainly by generous donors and her small-scale trading business. LOTS, an acronym for Love on The Streets, began to care for the physical and educational needs of the residents of this slum that she named Dustbin Estate. Though LOTS would go on to feed and educate hundreds of children, in December 2014, a major donor cancelled two weeks before a major charity event – Christmas For Every Family. This dealt a devastating blow to Tolu’s efforts, and she had to seriously consider how the organisation would continue to sustain itself in the future. Faced with mounting challenges, she began contemplating either giving up or transforming the Foundation into a full-fledged social enterprise capable of financing its activities.

The key learning points from the case study are as follows: to understand the dilemma NGOs in Nigeria (and perhaps some other emerging markets), face, and how transitioning into a social enterprise may become a viable option. To analyse the impact of social–cultural and economic context under which NGOs operate and how social enterprises evolve in emerging markets. To identify the key determinants of entrepreneurial behaviour and some of the business skills needed to resolve social problems successfully in developing countries. To explicate the key theories and concepts underlying the case study: the asset-based community development and social bricolage theories.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 3: Entrepreneurship.

Development of business models, base of the pyramid (BoP) markets.

This study can be used at Bachelor as well as on Master's level courses to reflect activities and practices within corporate sustainability, base of the pyramid and international expansion of MNEs.

This is a case study of Grundfos LIFELINK's development process, relating to the successful development of a business model for serving base of the pyramid (BoP) markets for potable water. Grundfos LIFELINK is a turnkey water solution that encompasses a solar-driven pump facility, a GPS-based monitoring system, and charges based on digital payments of water credits. Together, they represent the business model of Grundfos LIFELINK. At the same time the modules represent a business architecture that can be mixed and matched to match the skills and ensure the adaptive involvement of local partners in BoP markets. Since its cautious start in 2009, Grundfos has successfully expanded its operations to 30 villages in Kenya and LIFELINK systems will operate in 70 villages in Kenya within the next two years.

In an international business/international management context, especially the first and the last part of the case could be used as a showcase of the current transformation efforts multinational companies (MNCs) in the developed world are pursuing. Pressured by the cost advantages of Dragon multinationals from Asia, India and Brazil, MNCs search for new ways to provide value and at the same time utilize their existing knowledge. The Grundfos LIFELINK case shows some of the important consequences and challenges that multinational organizations are facing, once such business models needs to be integrated in the current MNC activities.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.