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Harvard Case - EMMA Safety Footwear (A): Designing a Circular Shoe

"EMMA Safety Footwear (A): Designing a Circular Shoe" Harvard business case study is written by Andre Calmon, Luk Van Wassenhove, Anne-Marie Carrick, Anne Nai-Tien Huang. It deals with the challenges in the field of Business Ethics. The case study is 20 page(s) long and it was first published on : Mar 8, 2021

At Fern Fort University, we recommend that EMMA Safety Footwear (EMMA) adopt a comprehensive circular economy strategy for its shoe design and manufacturing process. This strategy should prioritize sustainability, ethical sourcing, and responsible labor practices, while also ensuring financial viability and market competitiveness.

2. Background

EMMA Safety Footwear is a leading manufacturer of safety footwear, facing increasing pressure to adopt sustainable practices. The company is exploring the potential of a circular economy model for its shoe design, aiming to reduce waste, conserve resources, and minimize its environmental impact. The case study focuses on Emily, the company's sustainability manager, who is tasked with developing a circular design for a new line of safety footwear.

The main protagonists of the case study are:

  • Emily: Sustainability manager at EMMA, responsible for developing a circular design for the new line of safety footwear.
  • John: CEO of EMMA, who is supportive of sustainability initiatives but also focused on the company's financial performance.
  • The Design Team: Responsible for creating the actual shoe design and incorporating Emily's sustainability recommendations.

3. Analysis of the Case Study

This case study can be analyzed through the lens of Stakeholder Theory, which emphasizes the importance of considering the interests of all stakeholders, including customers, employees, suppliers, investors, and the environment. EMMA needs to balance the needs of these stakeholders while pursuing its business objectives.

Key Considerations:

  • Sustainability: EMMA must prioritize environmental sustainability by reducing waste, minimizing resource consumption, and promoting responsible disposal of its products. This includes exploring options for using recycled materials, extending product life cycles, and designing for disassembly and reuse.
  • Ethical Sourcing: EMMA must ensure that its supply chain is ethical and responsible. This involves sourcing materials from suppliers who adhere to fair labor practices, environmental standards, and ethical business principles.
  • Labor Rights: EMMA must ensure that its workers are treated fairly and with respect. This includes providing fair compensation, safe working conditions, and opportunities for professional development.
  • Transparency: EMMA must be transparent about its sustainability practices and ethical sourcing policies. This includes communicating its efforts to stakeholders and being accountable for its actions.
  • Financial Viability: EMMA must ensure that its circular economy strategy is financially viable. This involves considering the costs associated with implementing the strategy and the potential benefits, such as reduced material costs, increased brand value, and improved customer loyalty.

4. Recommendations

EMMA should implement the following recommendations to design a circular shoe:

1. Design for Circularity:

  • Modular Design: Design the shoe with interchangeable components, allowing for repairs and replacements. This extends product life and reduces waste.
  • Durable Materials: Use high-quality, durable materials that are designed for longevity and can be recycled or reused.
  • Bio-based Materials: Explore the use of bio-based materials, such as plant-based polymers or recycled plastics, to reduce reliance on virgin materials.
  • Design for Disassembly: Design the shoe for easy disassembly, enabling components to be recycled or reused.

2. Implement a Closed-Loop Supply Chain:

  • Material Recovery: Establish a system for collecting and recycling used shoes and components. This can involve partnerships with waste management companies or creating a take-back program.
  • Re-manufacturing: Explore the possibility of re-manufacturing shoes from recycled materials, creating a closed-loop system.
  • Upcycling: Implement an upcycling program to repurpose used shoes into other products, such as furniture or building materials.

3. Foster Transparency and Accountability:

  • Publish Sustainability Report: Publish an annual sustainability report detailing EMMA's progress towards its circular economy goals.
  • Third-Party Audits: Engage independent third-party auditors to verify the ethical sourcing and sustainability practices of its suppliers.
  • Stakeholder Engagement: Establish a stakeholder engagement program to gather feedback and ensure transparency with customers, employees, and other stakeholders.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The recommendations align with EMMA's mission to provide safe and durable footwear while minimizing its environmental impact.
  • External Customers and Internal Clients: The recommendations address the needs of customers who are increasingly interested in sustainable products and employees who are seeking ethical and responsible workplaces.
  • Competitors: EMMA can gain a competitive advantage by becoming a leader in sustainable footwear manufacturing.
  • Attractiveness ' Quantitative Measures: The recommendations are expected to result in cost savings through reduced material costs and increased efficiency. They also have the potential to increase brand value and customer loyalty, leading to increased sales and profitability.
  • Assumptions: The recommendations assume that EMMA has the resources and commitment to implement the necessary changes, including investing in new technologies and processes.

6. Conclusion

By adopting a comprehensive circular economy strategy, EMMA can position itself as a leader in sustainable footwear manufacturing. This strategy will not only reduce the company's environmental impact but also enhance its brand reputation, attract environmentally conscious customers, and improve its financial performance.

7. Discussion

Alternatives:

  • Status Quo: Continuing with current practices, which would not address the growing demand for sustainable products and could lead to reputational damage.
  • Partial Circularity: Implementing only some aspects of a circular economy, such as using recycled materials but not designing for disassembly, which would be less effective and potentially confusing for customers.

Risks:

  • Cost of Implementation: Implementing a circular economy strategy can be expensive, requiring investments in new technologies and processes.
  • Market Acceptance: Customers may not be willing to pay a premium for sustainable products, potentially impacting sales.
  • Technological Challenges: Implementing certain aspects of the circular economy, such as re-manufacturing, may require overcoming technological hurdles.

Key Assumptions:

  • Consumer Demand: The recommendations assume that there is sufficient consumer demand for sustainable footwear.
  • Technological Advancement: The recommendations assume that the necessary technologies for circularity, such as material recycling and re-manufacturing, will continue to develop and become more affordable.
  • Government Support: The recommendations assume that government policies and regulations will continue to support sustainable practices.

8. Next Steps

  • Develop a Detailed Implementation Plan: This plan should outline the specific steps, timelines, and resources required to implement the recommendations.
  • Pilot Project: Conduct a pilot project to test the feasibility and effectiveness of the circular economy strategy on a smaller scale.
  • Communicate with Stakeholders: Communicate the company's commitment to sustainability and circularity to customers, employees, investors, and other stakeholders.
  • Monitor and Evaluate: Regularly monitor the progress of the circular economy strategy and make adjustments as needed.

By taking these steps, EMMA can successfully transition to a circular economy model, creating a more sustainable and ethical business while also achieving its financial goals.

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Case Description

Tom Hermans, CEO of EMMA Safety Footwear, is excited about the idea of developing the world's first circular safety shoe - one that adheres to the cradle-to-cradle design principles. This could be a transformational strategy, differentiating EMMA from the crowded safety shoe market in Europe and extending a long tradition of social responsibility since its establishment in 1931. Careful consideration and research are required because this would impact almost every aspect of EMMA's operation - the business model, internal operations, the global supply chain, and the company culture. Questions remain about whether this is the best way to differentiate EMMA. What kind of change management would EMMA and its suppliers need to deploy the circular initiative? How could the business model be reinvented to capture the economic benefits of circular shoes? Can Tom and his team push through this drastic change in a conservative company in a conservative market?

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