Harvard Case - Casa Pueblo
"Casa Pueblo" Harvard business case study is written by Mark Fagan, Sophie Dover. It deals with the challenges in the field of Business Ethics. The case study is 13 page(s) long and it was first published on : Mar 27, 2022
At Fern Fort University, we recommend that Casa Pueblo implement a comprehensive strategy to address the ethical and social challenges it faces, focusing on strengthening its commitment to corporate responsibility, transparency, and ethical leadership. This approach will not only safeguard the organization's reputation and integrity but also foster sustainable growth and long-term success.
2. Background
Casa Pueblo is a non-profit organization dedicated to promoting sustainable development in the Puerto Rican community of Adjuntas. The organization faces a dilemma after a local resident, Luis, informs them of a potential conflict of interest involving their executive director, Carmen. Luis alleges that Carmen may be using her position to benefit a private business venture, potentially jeopardizing Casa Pueblo's ethical standards and transparency.
The case study highlights the key protagonists:
- Carmen: The executive director of Casa Pueblo, facing accusations of a conflict of interest.
- Luis: A local resident who brings the potential conflict of interest to light.
- The Board of Directors: Responsible for overseeing Casa Pueblo's operations and ensuring ethical conduct.
3. Analysis of the Case Study
This case study presents a complex ethical dilemma for Casa Pueblo. It necessitates a thorough analysis of the situation, considering the following aspects:
- Stakeholder Theory: The case highlights the need to balance the interests of various stakeholders, including the community, donors, staff, and the organization itself.
- Ethical Decision-Making: The case demands a clear framework for ethical decision-making, ensuring that all actions are aligned with Casa Pueblo's mission and values.
- Corporate Governance: The board of directors must ensure proper oversight and accountability, including establishing clear policies regarding conflicts of interest and transparency.
- Transparency and Accountability: Casa Pueblo must prioritize transparency in its operations, establishing clear communication channels and mechanisms for addressing concerns.
- Whistleblowing: The case emphasizes the importance of creating a safe environment for whistleblowers, encouraging individuals to report potential ethical violations without fear of retribution.
4. Recommendations
Casa Pueblo should take the following steps to address the ethical challenges presented in the case:
- Immediate Investigation: The board of directors should immediately initiate a thorough and independent investigation into Luis's allegations. This investigation should be conducted by an external party with expertise in ethical investigations and conflict of interest analysis.
- Establish Clear Conflict of Interest Policies: Casa Pueblo should develop and implement a comprehensive code of conduct that clearly defines conflicts of interest and outlines procedures for their disclosure and management. This policy should be communicated to all employees and board members.
- Enhance Transparency and Accountability: Casa Pueblo should strengthen its commitment to transparency by publishing its financial statements, donor reports, and other relevant information on its website. It should also establish an independent audit committee to oversee financial and ethical practices.
- Promote Whistleblowing: Casa Pueblo should create a safe and confidential channel for employees and stakeholders to report potential ethical violations. This channel should be clearly communicated and accessible to all.
- Develop a Robust Ethical Leadership Program: Casa Pueblo should invest in training programs for its leadership team on ethical decision-making, corporate responsibility, and conflict of interest management. This will ensure that all leaders are equipped to uphold the organization's values and ethical standards.
- Strengthen Communication: Casa Pueblo should proactively engage with its stakeholders, including the community, donors, and staff, to address concerns and build trust. This can be achieved through regular communication channels, town hall meetings, and online platforms.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Casa Pueblo's mission to promote sustainable development and its commitment to ethical practices.
- External Customers and Internal Clients: The recommendations aim to build trust and confidence among the community, donors, and staff by ensuring transparency and accountability.
- Competitors: By upholding ethical standards, Casa Pueblo can differentiate itself from other non-profit organizations and attract more funding and support.
- Attractiveness: Implementing these recommendations will enhance Casa Pueblo's reputation, attract more donors, and increase public trust, ultimately contributing to its long-term sustainability.
6. Conclusion
Casa Pueblo faces a crucial moment in its history. By addressing the ethical challenges presented in the case study, the organization can strengthen its commitment to corporate responsibility, transparency, and ethical leadership. This will not only safeguard its reputation but also pave the way for continued success in its mission to promote sustainable development in the Puerto Rican community.
7. Discussion
Other alternatives not selected include:
- Ignoring the allegations: This would be a risky approach, potentially leading to a loss of trust and credibility.
- Dismissing Luis's concerns: This would be unethical and could damage Casa Pueblo's reputation.
- Confronting Carmen directly: This could lead to a confrontation and potentially damage relationships.
The risks associated with the recommended approach include:
- Potential legal challenges: The investigation could uncover evidence of wrongdoing, leading to legal action.
- Damage to relationships: The investigation and potential disciplinary action could damage relationships with Carmen and other staff members.
- Financial impact: The investigation and implementation of new policies could require additional resources.
The key assumptions of the recommendations are:
- The board of directors is committed to upholding ethical standards.
- The investigation will be conducted fairly and impartially.
- Casa Pueblo has the resources to implement the recommended changes.
8. Next Steps
Casa Pueblo should implement the recommendations within the following timeline:
- Month 1: Initiate the independent investigation.
- Month 2: Develop and implement the conflict of interest policy.
- Month 3: Establish the whistleblowing channel and enhance transparency measures.
- Month 4: Launch the ethical leadership program.
- Month 5: Begin regular communication with stakeholders.
By taking these steps, Casa Pueblo can demonstrate its commitment to ethical conduct and ensure its continued success in promoting sustainable development in the Puerto Rican community.
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Case Description
Category 5 Hurricane Maria struck Puerto Rico on September 20, 2017 ravaging the Island. The Puerto Rico Electric Power Authority reported that all customers were without power unless they had their own generators. However, the mountain town of Adjuntas, the community center did have electricity powered by rooftop solar panels. Years earlier the community realized the risks of the national electricity grid and created a local electricity generation capacity. Maria proved the wisdom of their actions as residents were able to charge medical equipment, keep medications refrigerated and charge their cellphones. This case explores the strengths and limitations of two electricity supply chain approaches, a national electricity grid versus local power generation. A focus on the importance of infrastructure resilience frames the discussion. The case also explore the community capacity building needed for local power generation resilience.
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