Harvard Case - Poppy Barley: Weighing the Costs and Benefits of Sustainability Certification
"Poppy Barley: Weighing the Costs and Benefits of Sustainability Certification" Harvard business case study is written by Joel Gehman, Greg Dobbelsteyn, Peter Loginov, Aimee Van Dam, Brittnay Verstraete, Leanne Hedberg Carlson. It deals with the challenges in the field of Entrepreneurship. The case study is 9 page(s) long and it was first published on : Jul 20, 2018
At Fern Fort University, we recommend that Poppy Barley pursue B Corp certification. This decision aligns with the company's existing commitment to ethical and sustainable practices and will provide a valuable competitive advantage in the increasingly conscious consumer market. The certification will enhance Poppy Barley's brand image, attract environmentally conscious customers, and potentially open doors to new partnerships and investment opportunities.
2. Background
Poppy Barley is a Canadian footwear brand known for its commitment to ethical and sustainable practices. The company faces a decision: whether to pursue B Corp certification, a rigorous process that assesses a company?s social and environmental performance. This case study explores the potential costs and benefits of certification, considering Poppy Barley?s current financial position and future growth aspirations.
The main protagonists are:
- Poppy Barley?s founders: They are passionate about sustainability and want to ensure the company?s long-term success.
- The company?s leadership team: They are responsible for making the decision on whether to pursue B Corp certification.
- Potential investors: They are interested in supporting companies with strong social and environmental performance.
- Customers: They are increasingly demanding transparency and ethical practices from the brands they purchase from.
3. Analysis of the Case Study
This case study can be analyzed through the lens of strategic management, specifically examining the competitive advantage that B Corp certification could offer Poppy Barley. The company?s current business model is based on a commitment to ethical sourcing, fair labor practices, and sustainable materials. B Corp certification would further solidify this commitment and allow Poppy Barley to leverage its environmental sustainability as a key differentiator in the market.
Financial analysis is crucial to assess the potential costs and benefits of certification. The case study highlights the significant investment required for the certification process, including the time and resources needed to gather data and implement necessary changes. However, the potential benefits include:
- Enhanced brand image: B Corp certification would signal to customers that Poppy Barley is a company with strong social and environmental values, potentially increasing brand loyalty and customer acquisition.
- Access to new markets: B Corp certification could open doors to new markets and partnerships with environmentally conscious retailers and investors.
- Improved investor relations: Investors are increasingly looking for companies with strong ESG (environmental, social, and governance) performance. B Corp certification could attract new investors and improve Poppy Barley?s access to capital.
4. Recommendations
Poppy Barley should pursue B Corp certification for the following reasons:
- Strong alignment with company values: Certification aligns with Poppy Barley?s existing commitment to sustainability and ethical practices.
- Competitive advantage: B Corp certification will differentiate Poppy Barley from competitors and appeal to environmentally conscious consumers.
- Potential for growth: Certification can open doors to new markets, partnerships, and investment opportunities.
The implementation should be phased, starting with a thorough assessment of the company?s current practices against B Corp standards. This assessment will identify areas for improvement and allow for a realistic budget and timeline for achieving certification. Poppy Barley should then develop a comprehensive plan for implementing necessary changes, including:
- Sourcing: Ensuring all materials are sourced ethically and sustainably.
- Manufacturing: Implementing sustainable manufacturing processes and reducing waste.
- Employee relations: Ensuring fair wages and working conditions for all employees.
- Community engagement: Engaging with local communities and supporting social causes.
5. Basis of Recommendations
This recommendation considers the following:
- Core competencies and consistency with mission: B Corp certification aligns with Poppy Barley?s core values and commitment to sustainability.
- External customers and internal clients: The certification will appeal to environmentally conscious customers and attract new talent.
- Competitors: B Corp certification will differentiate Poppy Barley from competitors who may not have the same commitment to sustainability.
- Attractiveness: The potential benefits of B Corp certification, including enhanced brand image, access to new markets, and improved investor relations, outweigh the costs.
The recommendation is based on the assumption that Poppy Barley is committed to sustainability and is willing to invest the necessary resources to achieve B Corp certification.
6. Conclusion
Pursuing B Corp certification is a strategic decision that will position Poppy Barley as a leader in the sustainable footwear market. The certification will enhance brand image, attract environmentally conscious customers, and potentially open doors to new partnerships and investment opportunities. While the certification process requires significant investment, the potential benefits outweigh the costs, making it a worthwhile endeavor for Poppy Barley?s long-term success.
7. Discussion
Alternative options include:
- Not pursuing B Corp certification: This would allow Poppy Barley to focus on other priorities, but it would also limit its ability to differentiate itself in the market and attract environmentally conscious customers.
- Pursuing another sustainability certification: There are other sustainability certifications available, but B Corp is widely recognized and considered the gold standard.
The key assumptions of this recommendation include:
- Poppy Barley is committed to sustainability and is willing to invest the necessary resources to achieve B Corp certification.
- The benefits of B Corp certification, including enhanced brand image, access to new markets, and improved investor relations, will materialize.
8. Next Steps
The following timeline outlines the key milestones for implementing the recommendation:
- Month 1-3: Conduct a thorough assessment of Poppy Barley?s current practices against B Corp standards.
- Month 4-6: Develop a comprehensive plan for implementing necessary changes to achieve certification.
- Month 7-9: Implement the plan and track progress.
- Month 10-12: Submit the application for B Corp certification.
By following these steps, Poppy Barley can successfully achieve B Corp certification and position itself for continued growth and success in the sustainable footwear market.
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Case Description
In November 2016, the co-founders of Poppy Barley Inc. (Poppy Barley) had just finished discussing the company's fiscal projections and sustainability goals for the upcoming 2017 year. Poppy Barley, a made-to-measure footwear retailer in Edmonton, Alberta, had grown rapidly. The co-founders, who were sisters, wanted to further both their product line and their commitments to corporate sustainability. Would becoming certified as a sustainable business publicize their commitments and values, and improve their triple bottom line? If so, which certification should they choose? On the other hand, given the company's growth stage, would directing finite resources toward certification detract from other important business areas?
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