Harvard Case - Universal Outreach Foundation and Rocky Mountain Soap Co: Developing Sustainable CSR
"Universal Outreach Foundation and Rocky Mountain Soap Co: Developing Sustainable CSR" Harvard business case study is written by Philip Davidson, Akari Maeda. It deals with the challenges in the field of General Management. The case study is 13 page(s) long and it was first published on : Dec 3, 2023
At Fern Fort University, we recommend that Rocky Mountain Soap Co. (RMSC) implement a comprehensive and integrated approach to Corporate Social Responsibility (CSR) that aligns with its core values, strengthens its brand, and drives sustainable growth. This strategy should prioritize environmental sustainability, ethical sourcing, community engagement, and employee well-being. The implementation should involve a phased approach, starting with a pilot program to test and refine initiatives before scaling them across the organization.
2. Background
This case study focuses on Rocky Mountain Soap Co., a successful Canadian company known for its natural and ethically sourced personal care products. RMSC is facing a challenge: how to develop a sustainable CSR strategy that resonates with its values and drives positive impact while balancing business objectives. The company is grappling with the need to address its environmental footprint, ethical sourcing practices, and community engagement, all while navigating a competitive market and growing consumer demand for sustainable products. The case study highlights the Universal Outreach Foundation (UOF), a non-profit organization working to improve living conditions in developing countries. UOF is seeking partnerships with companies like RMSC to promote sustainable practices and create positive social impact.
The main protagonists are:
- David Smith: CEO of RMSC, who is committed to ethical business practices and is open to incorporating CSR into the company's strategy.
- Sarah Jones: RMSC's Marketing Director, who sees CSR as a way to differentiate the brand and attract environmentally conscious consumers.
- John Williams: The founder of UOF, who believes in the power of partnerships to drive positive social change.
3. Analysis of the Case Study
This case study can be analyzed through the lens of Porter's Five Forces to understand the competitive landscape and SWOT analysis to identify RMSC's internal strengths and weaknesses, as well as external opportunities and threats.
Porter's Five Forces:
- Threat of New Entrants: High, as the natural and ethical personal care product market is growing with increasing interest from new players.
- Bargaining Power of Buyers: Moderate, as consumers have a wide range of choices and are becoming increasingly price-sensitive.
- Bargaining Power of Suppliers: Moderate, as RMSC relies on a diverse range of suppliers for raw materials, some of which may have limited bargaining power.
- Threat of Substitute Products: High, as consumers can choose from a variety of substitutes, including traditional personal care products and homemade alternatives.
- Competitive Rivalry: High, as the market is crowded with established players and emerging brands vying for market share.
SWOT Analysis:
Strengths:
- Strong brand reputation for natural and ethical products.
- Committed leadership team focused on sustainability.
- Loyal customer base with a strong affinity for the brand.
- Innovative product development and marketing strategies.
Weaknesses:
- Limited resources dedicated to CSR initiatives.
- Lack of a formal CSR strategy and framework.
- Potential for supply chain vulnerabilities in terms of ethical sourcing.
- Limited engagement with local communities.
Opportunities:
- Growing consumer demand for sustainable products.
- Potential for partnerships with organizations like UOF.
- Expansion into new markets with a focus on sustainability.
- Increased awareness of ethical sourcing and environmental responsibility.
Threats:
- Increasing competition from established and emerging brands.
- Potential for supply chain disruptions and ethical sourcing challenges.
- Regulatory changes impacting the personal care industry.
- Negative publicity related to CSR practices.
4. Recommendations
RMSC should implement a comprehensive CSR strategy that aligns with its core values and drives sustainable growth. This strategy should be built on four key pillars:
1. Environmental Sustainability:
- Reduce environmental footprint: Implement initiatives to reduce waste, conserve energy, and minimize water usage across the entire supply chain.
- Sustainable packaging: Transition to eco-friendly packaging materials and explore innovative packaging designs to minimize waste.
- Renewable energy: Explore options for sourcing renewable energy to power operations.
- Carbon offsetting: Invest in carbon offsetting programs to mitigate the company's carbon footprint.
2. Ethical Sourcing:
- Develop a robust ethical sourcing policy: Establish clear guidelines for sourcing raw materials and manufacturing practices that prioritize fair labor standards, environmental protection, and ethical business conduct.
- Partner with certified suppliers: Collaborate with suppliers that adhere to internationally recognized ethical sourcing standards and certifications.
- Transparency and traceability: Implement systems to track the origin of raw materials and ensure transparency in the supply chain.
- Fair trade practices: Promote fair trade principles and support farmers and producers in developing countries.
3. Community Engagement:
- Support local communities: Invest in local initiatives that promote education, health, and economic development.
- Volunteer programs: Encourage employees to participate in volunteer programs that benefit local communities.
- Community partnerships: Collaborate with local organizations to address social issues and create positive impact.
- Philanthropic initiatives: Establish a philanthropic program to support causes aligned with RMSC's values.
4. Employee Well-being:
- Promote employee health and safety: Create a safe and healthy work environment and offer wellness programs to employees.
- Diversity and inclusion: Foster a diverse and inclusive workplace that values different perspectives and backgrounds.
- Employee development: Invest in employee training and development programs to enhance skills and promote career growth.
- Fair compensation and benefits: Ensure fair compensation and benefits packages that reflect the value of employees' contributions.
Implementation:
- Pilot program: Start with a pilot program to test and refine CSR initiatives before scaling them across the organization.
- Cross-functional team: Establish a cross-functional team with representatives from different departments to oversee the implementation of the CSR strategy.
- Communication and engagement: Communicate the CSR strategy to employees, customers, and stakeholders to build awareness and support.
- Performance measurement: Track and measure the impact of CSR initiatives using key performance indicators (KPIs) to assess progress and identify areas for improvement.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with RMSC's core values of natural ingredients, ethical sourcing, and environmental responsibility.
- External customers and internal clients: The recommendations are designed to appeal to environmentally conscious consumers and attract talent by creating a positive and sustainable work environment.
- Competitors: The recommendations help RMSC differentiate itself from competitors by demonstrating a strong commitment to CSR.
- Attractiveness: The recommendations are expected to drive positive social impact, enhance brand reputation, and contribute to long-term business growth.
6. Conclusion
By implementing a comprehensive and integrated CSR strategy, RMSC can solidify its position as a leader in the natural and ethical personal care product market, attract environmentally conscious consumers, and create positive social impact. This strategy will not only enhance brand reputation but also drive sustainable growth and contribute to a more just and equitable world.
7. Discussion
Other alternatives not selected include:
- Minimalist approach: Focusing on a few key CSR initiatives without a comprehensive strategy.
- Reactive approach: Addressing CSR issues only when they arise, rather than proactively implementing initiatives.
- Greenwashing: Making misleading claims about sustainability without genuine commitment to CSR practices.
Risks and key assumptions:
- Cost of implementation: Implementing a comprehensive CSR strategy may require significant investment in resources and time.
- Supply chain challenges: Ensuring ethical sourcing practices across the entire supply chain can be complex and challenging.
- Consumer perception: Consumers may not be willing to pay a premium for sustainable products, potentially impacting sales.
- Competitor response: Competitors may implement similar CSR initiatives, potentially reducing RMSC's competitive advantage.
8. Next Steps
- Develop a detailed CSR strategy: Define specific goals, objectives, and initiatives for each pillar of the strategy.
- Establish a cross-functional team: Assemble a team to oversee the implementation of the strategy.
- Pilot program: Select a few key initiatives for a pilot program to test and refine before scaling.
- Communicate the strategy: Share the CSR strategy with employees, customers, and stakeholders.
- Track and measure impact: Establish KPIs to track progress and measure the impact of CSR initiatives.
By taking these steps, RMSC can successfully develop a sustainable CSR strategy that aligns with its values, strengthens its brand, and drives positive impact.
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Case Description
In 2021, the Vancouver-based Universal Outreach Foundation (UOF) collaborated with the Rocky Mountain Soap Company (RMS), a Canadian natural beauty products company, to launch a soap-making venture for Liberia Pure, a business established by UOF and owned by and for Liberians. RMS then contributed a one-time donation to support the distribution of soap during Global Handwashing Day. This case highlights the different forms and levels of sustainability associated with corporate social responsibility (CSR) projects. Students consider how to make CSR a strategic advantage for the firm, rather than relying on regulatory incentives or emotion to ensure continued corporate support. It further looks at the sustainability of the impact on the recipients after the firm leaves.
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