Harvard Case - Sober Sidekick
"Sober Sidekick" Harvard business case study is written by Jeffrey J. Bussgang, Kumba Sennaar. It deals with the challenges in the field of Business Ethics. The case study is 15 page(s) long and it was first published on : Jun 17, 2023
At Fern Fort University, we recommend that Sober Sidekick (SS) prioritize a strategic shift towards a sustainable and ethical business model, focusing on corporate social responsibility (CSR) and transparency. This involves implementing a comprehensive code of conduct, promoting ethical leadership, and fostering a culture of diversity and inclusion. SS should also actively engage with stakeholders, including employees, customers, and the broader community, to build trust and ensure long-term success.
2. Background
Sober Sidekick is a start-up company founded by two friends, David and Michael, who aim to provide a safe and supportive environment for people seeking to moderate their alcohol consumption. Their app connects users with sober companions for social events, offering a sense of community and accountability. While the company has gained traction, it faces challenges related to growth, ethical considerations, and potential conflicts of interest arising from their personal involvement in the business.
3. Analysis of the Case Study
This case study presents a complex situation where entrepreneurial ambition meets the need for ethical decision-making. The company operates in a sensitive space, dealing with issues of addiction and personal well-being. We can analyze the case using the following frameworks:
a) Stakeholder Theory: This framework highlights the importance of considering the interests of all stakeholders, including employees, customers, investors, and the broader community. SS needs to balance the needs of its users with the potential risks and ethical concerns associated with its business model.
b) Ethical Decision-Making Framework: This framework involves identifying the ethical issues, gathering relevant information, considering alternative solutions, evaluating the consequences, and making a decision based on ethical principles. SS needs to develop a clear ethical framework to guide its actions and ensure accountability.
c) Corporate Social Responsibility (CSR) Framework: This framework emphasizes the company's responsibility to operate in a way that benefits society and the environment. SS can integrate CSR into its operations by promoting sustainability, fair trade practices, and ethical sourcing.
d) Risk Management Framework: This framework helps identify, assess, and mitigate potential risks. SS needs to develop a robust risk management strategy to address potential issues related to data privacy, conflict of interest, and legal compliance.
4. Recommendations
Develop a Comprehensive Code of Conduct: SS should create a detailed code of conduct outlining ethical principles, guidelines for employee behavior, and procedures for handling conflicts of interest. This code should be communicated clearly to all employees and stakeholders.
Promote Ethical Leadership: David and Michael should actively promote ethical leadership within the company by modeling ethical behavior, fostering open communication, and encouraging employees to speak up about ethical concerns. This can be achieved through leadership training, mentorship programs, and open forums for discussion.
Embrace Transparency: SS should be transparent about its business practices, data collection, and decision-making processes. This includes publishing its code of conduct, providing clear information about its app's functionality, and being open to feedback from users and stakeholders.
Establish a Robust Governance Framework: SS should establish a strong corporate governance structure, including an independent board of directors, to provide oversight and ensure ethical decision-making. This board should include individuals with expertise in relevant fields, such as addiction recovery, technology, and ethics.
Invest in Diversity and Inclusion: SS should actively promote diversity and inclusion within its workforce and user base. This includes creating a welcoming environment for people from diverse backgrounds and ensuring that the app is accessible and inclusive to all users.
Engage with Stakeholders: SS should actively engage with stakeholders, including employees, customers, investors, and the broader community, to understand their needs and concerns. This can be achieved through regular communication, surveys, focus groups, and town hall meetings.
Implement a Sustainability Strategy: SS should adopt sustainable business practices, such as reducing its environmental footprint, promoting ethical sourcing, and supporting social causes. This can include partnering with organizations that promote responsible alcohol consumption and supporting initiatives that address addiction and mental health.
5. Basis of Recommendations
These recommendations are based on the following considerations:
Core Competencies and Mission: These recommendations align with SS's mission to provide a safe and supportive environment for people seeking to moderate their alcohol consumption. By promoting ethical behavior, transparency, and sustainability, SS can strengthen its brand reputation and build trust with users.
External Customers and Internal Clients: These recommendations address the needs of both external customers (app users) and internal clients (employees). By creating a code of conduct, promoting ethical leadership, and fostering diversity and inclusion, SS can create a positive and supportive environment for all stakeholders.
Competitors: These recommendations help SS differentiate itself from competitors by emphasizing ethical practices and social responsibility. This can attract users who value these principles and create a competitive advantage.
Attractiveness: These recommendations are attractive to investors and stakeholders who prioritize ethical business practices and social responsibility. This can improve SS's financial performance and attract investment.
6. Conclusion
By prioritizing ethical decision-making, transparency, and corporate social responsibility, Sober Sidekick can build a sustainable and successful business. This approach will not only benefit the company's bottom line but also contribute to a more ethical and responsible business environment.
7. Discussion
While the recommendations above are crucial, other alternatives could be considered:
- Focus solely on business growth: This approach prioritizes rapid expansion and market share without considering ethical implications. This could lead to short-term gains but ultimately damage the company's reputation and long-term sustainability.
- Ignore stakeholder concerns: This approach disregards the needs and concerns of stakeholders, potentially leading to conflicts and reputational damage.
The primary risk associated with these recommendations is the potential for increased costs and complexity in implementing ethical practices. However, the long-term benefits of building trust, attracting ethical investors, and avoiding potential scandals outweigh these risks.
8. Next Steps
- Develop and implement a code of conduct within the next 3 months.
- Establish a corporate governance structure and appoint a board of directors within the next 6 months.
- Launch a stakeholder engagement program within the next 6 months.
- Develop a sustainability strategy and implement key initiatives within the next 12 months.
By taking these steps, Sober Sidekick can position itself as a leader in the growing market for alcohol moderation support while upholding ethical standards and contributing to a more responsible and sustainable future.
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Case Description
Case on the nascent business model of a mobile health IT startup. In particular, should they pivot away from their successful lead generation business model to charging health plans.
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