Harvard Case - Caged or Cage-Free?
"Caged or Cage-Free?" Harvard business case study is written by Karen E. Boroff, Karen Meleta, Paula Becker Alexander. It deals with the challenges in the field of Social Enterprise. The case study is 16 page(s) long and it was first published on : Jun 30, 2023
At Fern Fort University, we recommend that the university embrace a hybrid approach to egg sourcing, balancing the ethical considerations of animal welfare with the practical realities of cost and supply chain management. This approach will involve prioritizing cage-free eggs for university dining services and other institutional uses, while also offering a limited selection of conventional eggs for students who choose them. This strategy will allow Fern Fort University to demonstrate its commitment to corporate social responsibility and environmental sustainability while also remaining mindful of financial considerations and student preferences.
2. Background
The case study 'Caged or Cage-Free'' centers around Fern Fort University's decision on how to source eggs for its dining services. The university is facing pressure from student activists and faculty members to transition to cage-free eggs, aligning with the growing national movement for ethical animal treatment. However, this shift presents significant challenges, including increased costs, potential supply chain disruptions, and potential student resistance to higher prices.
The main protagonists in the case are:
- Dr. Emily Carter: The university president, grappling with the ethical and practical implications of the egg sourcing decision.
- The Student Activist Group: Advocating for a complete transition to cage-free eggs, citing animal welfare concerns.
- The Dining Services Director: Concerned about the financial impact of switching to cage-free eggs and potential supply chain challenges.
3. Analysis of the Case Study
This case study presents a classic dilemma between ethical considerations and practical realities. A stakeholder theory lens can be applied to analyze the situation:
- Students: Students are a key stakeholder group with diverse preferences regarding egg sourcing. Some prioritize animal welfare, while others may be more price-sensitive.
- Faculty: Faculty members, particularly those in animal welfare and environmental studies, are vocal advocates for cage-free eggs.
- Dining Services: The dining services department is responsible for managing costs and ensuring a reliable supply of eggs.
- University Administration: The university administration must balance the demands of various stakeholders, consider financial implications, and uphold the university's values.
Financial Analysis:
- Increased Costs: Cage-free eggs are typically more expensive than conventional eggs, which could lead to higher dining service costs and potentially impact student meal plans.
- Supply Chain Disruptions: Transitioning to cage-free eggs may require sourcing from different suppliers, potentially leading to disruptions in supply and increased transportation costs.
Marketing and Operations:
- Student Preferences: The university needs to understand student preferences regarding egg sourcing and consider offering options to cater to diverse viewpoints.
- Communication and Transparency: Clear communication with students about the university's decision-making process and the rationale behind its choices is crucial to building trust and mitigating potential backlash.
4. Recommendations
1. Prioritize Cage-Free Eggs for Institutional Use: Fern Fort University should prioritize sourcing cage-free eggs for all institutional uses, including dining services for faculty and staff, catering events, and university-run cafeterias. This demonstrates the university's commitment to ethical sourcing and aligns with its mission of promoting sustainability.
2. Offer a Limited Selection of Conventional Eggs: To accommodate students who are price-sensitive or prefer conventional eggs, the university should offer a limited selection of conventional eggs alongside cage-free options. This approach acknowledges student preferences while still promoting the university's commitment to ethical sourcing.
3. Implement a Gradual Transition: Instead of an immediate switch, the university should implement a gradual transition to cage-free eggs over a defined timeframe. This allows for adjustments to supply chains, cost management, and student education.
4. Engage in Open Dialogue with Stakeholders: The university should actively engage with students, faculty, and dining services staff in open dialogues about the egg sourcing decision. This fosters transparency, builds trust, and allows for feedback and suggestions.
5. Explore Partnerships with Local Suppliers: The university should explore partnerships with local, cage-free egg producers to support local businesses and reduce transportation costs.
6. Implement a Sustainable Procurement Policy: The university should develop a comprehensive sustainable procurement policy that encompasses all food sourcing decisions, including eggs. This policy should outline ethical sourcing guidelines and environmental sustainability criteria.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Mission: The university's mission emphasizes sustainability and ethical practices, making a commitment to cage-free eggs consistent with its core values.
- External Customers and Internal Clients: The recommendations prioritize student preferences while also addressing the concerns of faculty and dining services staff.
- Competitors: Many universities are transitioning to cage-free eggs, making this a competitive advantage for Fern Fort University.
- Attractiveness: The hybrid approach offers a cost-effective solution that balances ethical considerations with financial realities.
Assumptions:
- Students are willing to pay a slightly higher price for cage-free eggs, recognizing the ethical and environmental benefits.
- Local suppliers are available to meet the university's demand for cage-free eggs.
- The university has the resources to implement a gradual transition and manage the associated costs.
6. Conclusion
By adopting a hybrid approach to egg sourcing, Fern Fort University can demonstrate its commitment to corporate social responsibility and environmental sustainability while also addressing the concerns of various stakeholders. This strategy aligns with the university's mission, fosters a positive image among students and faculty, and contributes to a more sustainable food system.
7. Discussion
Alternative Options:
- Complete Transition to Cage-Free Eggs: This option aligns with ethical principles but could lead to significant cost increases and potential supply chain disruptions.
- Maintain Conventional Egg Sourcing: This option minimizes costs but fails to address the growing concerns about animal welfare and sustainability.
Risks and Key Assumptions:
- Student Resistance: Students may resist the higher prices associated with cage-free eggs, leading to reduced demand.
- Supply Chain Challenges: Sourcing cage-free eggs from local suppliers may be challenging, potentially leading to supply disruptions.
- Financial Impact: The transition to cage-free eggs could have a significant financial impact on the university, requiring careful budgeting and cost management.
8. Next Steps
- Form a Task Force: Establish a task force composed of students, faculty, dining services staff, and university administrators to oversee the transition to cage-free eggs.
- Develop a Transition Plan: Create a detailed plan outlining the timeline, budget, and communication strategy for the transition.
- Conduct Student Surveys: Conduct surveys to gauge student preferences regarding egg sourcing and identify potential challenges.
- Engage with Local Suppliers: Initiate discussions with local cage-free egg producers to explore potential partnerships.
- Implement a Sustainable Procurement Policy: Formalize a sustainable procurement policy that encompasses all food sourcing decisions.
By taking these steps, Fern Fort University can successfully navigate the complex challenges of egg sourcing and demonstrate its commitment to corporate social responsibility and environmental sustainability in a way that is both ethical and practical.
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Case Description
When Mel Mathers, the chief sustainability officer of a food cooperative, the Independent Food Retailers Consortium (IFRC), was flooded in October 2019 with emails from animal rights activists demanding the cooperative sell only cage-free eggs and make a pledge now to do so by 2025, he had to prepare a brief and recommendation so IFRC's board of directors could make a decision on whether to pledge selling only cage-free eggs in its grocery stores. Should the cooperative make a public commitment, as requested by the activists, to transition selling only cage-free eggs in its supply chain or continue to offer its customers a choice among the different egg production systems? Mathers examined the organization's mission statement, its corporate responsibility statement, and its policies on animal welfare. He studied IFRC's financial materiality chart and was unsettled by the current materiality chart as to pointing a clear direction for his direction. Mathers began researching egg production systems. Mathers' research is described in the case and students see the tradeoffs about which that Mathers is learning. Mathers wonders how he can navigate the seemingly contradictory tradeoffs with IFRC's policies, animal husbandry science, environmental impacts, and responsiveness to the many stakeholders in IFRC's operating environment.
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