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Harvard Case - The Business of Death Births Human Composting

"The Business of Death Births Human Composting" Harvard business case study is written by Meghan Murray. It deals with the challenges in the field of Business Ethics. The case study is 14 page(s) long and it was first published on : Sep 19, 2023

At Fern Fort University, we recommend that Recompose, the company offering human composting as an alternative to traditional burial, prioritize a robust and transparent approach to corporate social responsibility (CSR). This should encompass a comprehensive code of conduct that addresses ethical considerations, stakeholder relations, and environmental sustainability. Recompose must also proactively address potential legal and ethical challenges, ensuring regulatory compliance and building trust with the public.

2. Background

Recompose is a Seattle-based company offering a novel and environmentally friendly alternative to traditional burial: human composting. This process, known as 'natural organic reduction,' involves transforming human remains into soil through a controlled process of decomposition. The company's founder, Katrina Spade, envisions a future where death is celebrated and integrated with nature, offering a sustainable and eco-conscious approach to end-of-life care.

The case study focuses on the ethical and legal challenges faced by Recompose as it navigates the uncharted territory of human composting. The main protagonists are Katrina Spade, the company's founder and visionary leader, and the diverse stakeholders, including families, religious groups, and regulatory bodies, who hold varying perspectives on this innovative practice.

3. Analysis of the Case Study

This case study presents a unique opportunity to analyze the intersection of business ethics, environmental sustainability, and social and global issues. Recompose's business model challenges traditional norms surrounding death and burial, raising fundamental questions about corporate responsibility, stakeholder engagement, and regulatory frameworks.

Ethical Considerations:

  • Respect for the Deceased: Recompose must demonstrate utmost respect for the deceased and their families, ensuring that the composting process is conducted with dignity and sensitivity.
  • Transparency and Informed Consent: Recompose needs to be transparent about the process, its implications, and any potential risks. Families should be fully informed and provide informed consent before choosing this option.
  • Religious and Cultural Sensitivity: Recompose needs to be mindful of diverse religious and cultural beliefs regarding death and burial.
  • Potential Conflicts of Interest: Recompose must establish clear guidelines and procedures to address potential conflicts of interest that may arise from its business model.

Legal and Regulatory Challenges:

  • Compliance with Existing Laws: Recompose must ensure its operations comply with existing laws regarding death, burial, and the handling of human remains.
  • Developing New Regulations: Recompose may need to advocate for the development of new regulations specifically addressing human composting.
  • Public Health and Safety: Recompose must demonstrate that its process is safe and does not pose any risks to public health.

Environmental Sustainability:

  • Reduced Environmental Impact: Recompose must clearly articulate the environmental benefits of human composting compared to traditional burial.
  • Sustainable Practices: Recompose should prioritize sustainable practices throughout its operations, from sourcing materials to managing waste.

Stakeholder Engagement:

  • Family Businesses: Recompose needs to build strong relationships with families, addressing their concerns and providing support throughout the process.
  • Religious Groups: Recompose must engage with religious leaders and communities to understand their perspectives and address any potential concerns.
  • Regulatory Bodies: Recompose needs to actively engage with regulatory bodies to ensure compliance and build trust.

4. Recommendations

  1. Develop a Comprehensive Code of Conduct: Recompose should establish a detailed code of conduct that outlines its ethical principles, values, and commitment to social responsibility. This code should address:

    • Respect for the Deceased: Emphasize the dignity and sensitivity with which human remains will be handled.
    • Transparency and Informed Consent: Clearly outline the process, potential risks, and the right of families to choose this option.
    • Religious and Cultural Sensitivity: Acknowledge and respect diverse beliefs and practices.
    • Conflicts of Interest: Establish clear procedures for identifying and managing potential conflicts.
  2. Engage in Proactive Stakeholder Relations: Recompose should build strong relationships with key stakeholders, including families, religious groups, and regulatory bodies. This can be achieved through:

    • Open Communication: Provide clear and accessible information about the process, addressing concerns and answering questions.
    • Community Engagement: Organize public forums, workshops, and educational events to build understanding and trust.
    • Collaboration with Religious Leaders: Engage in dialogue with religious leaders to address concerns and find common ground.
    • Advocacy for Regulatory Change: Work with regulatory bodies to develop new regulations that address human composting specifically.
  3. Prioritize Environmental Sustainability: Recompose should demonstrate its commitment to environmental sustainability through:

    • Reduced Environmental Impact: Quantify the environmental benefits of human composting compared to traditional burial.
    • Sustainable Practices: Implement sustainable practices throughout the business, including sourcing materials, managing waste, and reducing energy consumption.
    • Transparency and Reporting: Provide transparent reporting on its environmental performance and impact.
  4. Implement a Robust Risk Management Framework: Recompose should develop a comprehensive risk management framework to identify, assess, and mitigate potential risks, including:

    • Legal and Regulatory Risks: Monitor changes in laws and regulations and proactively address potential compliance issues.
    • Public Health and Safety Risks: Ensure that the composting process is safe and does not pose any risks to public health.
    • Reputational Risks: Develop strategies to manage potential negative publicity and maintain a positive public image.
  5. Embrace Transparency and Accountability: Recompose should prioritize transparency and accountability in all its operations, including:

    • Public Disclosure of Information: Provide clear and accessible information about its business model, processes, and environmental impact.
    • Independent Audits: Undergo independent audits to ensure compliance with ethical standards and regulatory requirements.
    • Whistleblowing Mechanisms: Establish clear whistleblowing mechanisms for employees to report any unethical or illegal activities.

5. Basis of Recommendations

These recommendations are based on a comprehensive understanding of the ethical, legal, and environmental challenges facing Recompose. They are consistent with the company's mission to provide a sustainable and eco-conscious alternative to traditional burial. The recommendations prioritize stakeholder engagement, transparency, and accountability, ensuring that Recompose operates ethically and responsibly.

6. Conclusion

Recompose has the potential to revolutionize end-of-life care, offering a sustainable and environmentally friendly alternative to traditional burial. However, the company must navigate complex ethical and legal challenges to ensure its success. By prioritizing corporate social responsibility, stakeholder engagement, and transparency, Recompose can build trust with the public, gain regulatory approval, and establish itself as a leader in the emerging field of human composting.

7. Discussion

Other alternatives not selected include:

  • Focusing solely on legal compliance: This approach would prioritize meeting minimum legal requirements but could neglect ethical considerations and stakeholder concerns.
  • Ignoring regulatory challenges: This approach could lead to legal issues and damage the company's reputation.
  • Prioritizing profit over social responsibility: This approach could alienate potential customers and stakeholders, ultimately harming the company's long-term success.

The recommendations presented in this case study solution are based on the following key assumptions:

  • Public acceptance of human composting: This assumption is crucial to the success of Recompose's business model.
  • Favorable regulatory environment: The company needs a supportive regulatory environment to operate legally and ethically.
  • Commitment to ethical principles: Recompose must be committed to ethical conduct and social responsibility.

8. Next Steps

  1. Develop a comprehensive code of conduct: This should be completed within 6 months.
  2. Engage in proactive stakeholder relations: Initiate outreach to families, religious groups, and regulatory bodies within 3 months.
  3. Prioritize environmental sustainability: Implement sustainable practices throughout the business within 1 year.
  4. Implement a robust risk management framework: Develop and implement a risk management framework within 6 months.
  5. Embrace transparency and accountability: Publish a transparency report and establish whistleblowing mechanisms within 1 year.

By taking these steps, Recompose can build a strong foundation for ethical and sustainable growth, ensuring that its innovative approach to end-of-life care is both responsible and socially acceptable.

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Case Description

The case revolves around an entrepreneur, Maggie Fleur, who manages several businesses on her family's farm and who is considering a complementary new business in the burgeoning industry of human composting. The case includes background on the death-care market in the United States in addition to how human composting (which was legal in five US states as of spring 2023) works. It explores the industry leader, private company Recompose, providing details about company history, fundraising, and basic financials.

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