Harvard Case - Arsenic in Drinking Water
"Arsenic in Drinking Water" Harvard business case study is written by Merylin Averill, Jose Gomez-Ibanez. It deals with the challenges in the field of Social Enterprise. The case study is 15 page(s) long and it was first published on : Jan 22, 2003
At Fern Fort University, we recommend a multi-pronged approach to address the arsenic contamination in Bangladesh's drinking water. This approach combines social entrepreneurship with corporate social responsibility to create a sustainable and impactful solution. We propose the establishment of a social enterprise, 'Pure Water Bangladesh,' dedicated to providing safe drinking water to communities affected by arsenic contamination. This enterprise will leverage innovation and technology to develop and implement cost-effective water purification solutions, while simultaneously promoting community development and economic empowerment.
2. Background
The case study 'Arsenic in Drinking Water' highlights the devastating impact of arsenic contamination on the health and well-being of millions of people in Bangladesh. The contamination, largely attributed to natural geological processes, has resulted in widespread health problems, including skin lesions, cancers, and cardiovascular diseases. The case study focuses on the efforts of various organizations, including NGOs, government agencies, and private companies, to address this critical issue.
The main protagonists of the case study are:
- The affected communities: The primary stakeholders who are directly impacted by the arsenic contamination and rely on clean water for their survival.
- Non-governmental organizations (NGOs): Organizations like BRAC and Grameen Bank, working on the ground to provide education, awareness, and alternative water sources.
- Government agencies: The Bangladesh government, responsible for providing clean water infrastructure and implementing policies to mitigate the contamination.
- Private companies: Companies like Unilever and Danone, exploring opportunities to provide safe drinking water solutions while also considering their corporate social responsibility.
3. Analysis of the Case Study
This case study presents a complex challenge that requires a multifaceted approach. The analysis can be structured using the following frameworks:
1. Stakeholder Analysis:
- Primary Stakeholders: Affected communities, NGOs, government agencies, private companies.
- Secondary Stakeholders: International organizations, research institutions, investors, media.
2. SWOT Analysis:
- Strengths: Existing NGOs with strong local presence, growing awareness of the issue, potential for private sector involvement.
- Weaknesses: Limited access to clean water infrastructure, lack of financial resources, complex logistical challenges.
- Opportunities: Technological advancements in water purification, potential for social entrepreneurship, growing interest in impact investing.
- Threats: Political instability, economic challenges, potential for environmental damage.
3. Porter's Five Forces:
- Threat of New Entrants: Relatively high, as the market for clean water solutions is expanding.
- Bargaining Power of Buyers: High, as consumers have limited options and are highly sensitive to price.
- Bargaining Power of Suppliers: Moderate, as there are various suppliers of water purification technologies.
- Threat of Substitutes: Moderate, as alternative water sources like bottled water or rainwater harvesting are available.
- Competitive Rivalry: Moderate, with existing NGOs and private companies competing for resources and market share.
4. Triple Bottom Line:
- Economic: Creating sustainable business models that generate revenue and create jobs.
- Social: Improving public health, empowering communities, and promoting social equity.
- Environmental: Protecting water resources, reducing pollution, and promoting sustainable practices.
4. Recommendations
1. Establish 'Pure Water Bangladesh':
- Mission: To provide safe and affordable drinking water to communities affected by arsenic contamination in Bangladesh.
- Vision: To become a leading provider of clean water solutions, empowering communities and promoting sustainable development.
2. Develop Innovative Water Purification Solutions:
- Technology: Leverage advanced technologies like reverse osmosis, nano-filtration, and solar disinfection to ensure efficient and cost-effective water purification.
- Local Adaptation: Customize solutions to local conditions, considering factors like water quality, accessibility, and affordability.
3. Build Strong Community Partnerships:
- Community Engagement: Involve local communities in the design, implementation, and management of water purification systems.
- Capacity Building: Provide training and education to community members on water safety, hygiene, and maintenance.
4. Implement a Sustainable Business Model:
- Microfinance: Offer affordable financing options to communities for purchasing water purification systems.
- Social Franchising: Partner with local entrepreneurs to establish and operate water purification centers.
- Partnerships: Collaborate with NGOs, government agencies, and private companies to leverage resources and expertise.
5. Promote Corporate Social Responsibility:
- Impact Investing: Attract investors who prioritize social and environmental impact alongside financial returns.
- B Corporation Certification: Seek certification as a B Corporation, demonstrating commitment to social and environmental responsibility.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The proposed social enterprise aligns with the mission of providing safe drinking water and promoting community development.
- External Customers and Internal Clients: The target customers are the affected communities, while the internal clients are the employees, partners, and investors.
- Competitors: The competitive landscape includes existing NGOs, government agencies, and private companies providing water solutions.
- Attractiveness: The proposed solution addresses a critical social need, has potential for financial sustainability, and aligns with the growing interest in impact investing.
- Assumptions: The success of the enterprise depends on the availability of funding, technology, and skilled personnel.
6. Conclusion
By establishing 'Pure Water Bangladesh,' leveraging innovative technologies, building strong community partnerships, and implementing a sustainable business model, we can effectively address the arsenic contamination challenge in Bangladesh. This approach fosters social entrepreneurship, promotes corporate social responsibility, and contributes to a more sustainable and equitable future for the affected communities.
7. Discussion
Alternative solutions include:
- Government-led infrastructure development: This approach requires significant government investment and may be slow to implement.
- NGO-driven relief efforts: While valuable, these efforts are often limited by funding and capacity.
Risks and Key Assumptions:
- Financial sustainability: The enterprise needs to generate sufficient revenue to cover operational costs and expand its reach.
- Technological advancements: Continuous innovation is crucial to ensure cost-effective and efficient water purification.
- Community acceptance: The enterprise needs to build trust and ensure community ownership of the solutions.
8. Next Steps
- Develop a detailed business plan: Outline the proposed business model, financial projections, and operational plan.
- Secure funding: Seek grants, investments, and partnerships to support the initial development and expansion of the enterprise.
- Pilot project implementation: Launch a pilot project in a selected community to test and refine the proposed solutions.
- Scale up operations: Based on the success of the pilot project, expand the enterprise's reach to other affected communities.
By taking these steps, 'Pure Water Bangladesh' can become a model for sustainable and impactful solutions to address the global challenge of water contamination, contributing to a healthier and more equitable world.
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Case Description
In January, 2001, on the last day of the term of President William Clinton, the US Environmental Protection Administration (EPA) had reduced the maximum permissible level of arsenic in drinking water from 50 to 10 parts per billion (ppb). Incoming President Bush had quickly suspended the new arsenic standard and other "last minute" Clinton regulations to allow time for review. In October, 2001, after nine months of study, Bush's EPA Administrator, Christine Whitman had to decide what the arsenic standard should be. This case is intended for use in a graduate course in applied microeconomics to illustrate the issues in setting an environmental standard, including the problems of quantifying benefits and the possibility of local instead of national standards. HKS Case Number 1680.0
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