Case studies

In 2007, BP sought and received regulatory approval to expand operations at its Whiting Refinery in northwest Indiana. Had the project gone forward as planned, the refinery would have discharged significantly higher levels of pollutants into Lake Michigan, but would have also contributed to economic development in the region. The result of BP seeking and being granted regulatory approval triggered a firestorm of controversy from multiple segments of society. This case study draws from secondary sources to examine the positions of a variety of stakeholders who influenced BP's decision as to whether or not it should expand its Whiting Refinery. Relevant stakeholders included for analysis are citizen and environmental organizations, political groups, trade associations, BP's employees, and stockholders. The intended target audience for this case is upper-level undergraduate business students studying issues related to business and society, such as corporate social responsibility and sustainable development.

Dr. Lawrence Frazier was an emergency room physician who was an employee of Honore Staffing Services of Baton Rouge, Louisiana. He worked at Methodist Health System hospital in Grant, Georgia. He had recently added the title of ER Medical Director and served as liaison between Honore staffing and the Methodist hospital. His additional duties included overseeing the other physicians which staff the emergency room. Methodist had a bonus system in place based on obtaining 31 patients’ satisfaction surveys each month. Dr. Frazier believed that the small sample lead to erroneous results and created problems for the physicians under his supervision. He wanted to change the data collection process (e.g. sample size collected, instrument), but encountered obstacles when he broached the subject with his hospital administrators.

This case is about Kija Kim, a Korean born founder and CEO of Harvard Design and Mapping Inc. (HDM). Founded in 1988, HDM is a cutting-edge GIS firm with $5 million in revenue and 35 employees in their Cambridge, MA and Washington D.C. offices. Through Kija Kim's leadership, HDM has become a significant niche player in homeland security and disaster relief. The case ends in fall 2005 just after HDM provided Hurricane Katrina mapping support, and Kija is nominated for the SBA Small Business Person of the Year. This case explores the intersection between cultural heritage, leadership effectiveness and organizational behavior. It particularly notes Kija's ability to turn her immigrant female minority status into a business advantage. This strength coupled with her ethos of care and ability to network in all walks of her life contributes to her distinctive and integrated leadership style. Definitions of leadership success and implications for decision making are also highlighted.

In January, 2007, TJX reported that it had suffered from a computer intrusion. The company was sure neither of the identity of the perpetrators nor of how many customers were affected. A deeper analysis revealed that the intrusion had started earlier and affected more customers than previously thought. Ensuing investigation concluded that TJX was collecting unnecessary information, keeping it for too long and employing obsolete and insufficient safeguards. TJX denied any wrongdoing but implemented most of the recommended remedies to strengthen their security.

On April 4, 2007, Don Imus, one of the company&s most popular talk show personalities made comments on the air regarding the Rutgers women&s basketball team. According to the transcription from Media Matters for America, Imus said, “ That&s some nappy-headed hos there. I&m gonna tell you that now, man, that&s some … woo. And the girls from Tennessee, they all look cute, you know, so, like … kinda like … I don&t know.” At first, the comments did not seem out of the ordinary for one of radio&s “shock jocks.” However, as the public reaction grew, the situation changed considerably. Under pressure from the public, Moonves reluctantly suspended Imus. But it was too little too late. By the end of the day on April 11, analysts estimated that $2.5 million in advertising revenue was lost. On April 12, Moonves terminated Don Imus& contract.

After Moonves fired Imus, there was still a lot to consider. He really wanted a way for the company to meet the demands of the company&s stakeholders. In addition, he wanted to avoid any more distractions from the firm&s normal day-to-day operations.

Heather Loya started her custom designed wedding invitations business in the aftermath of the September 11, 2001 terrorist attack, when she was no longer comfortable commuting to New York City from New Jersey for her corporate job. In the ensuing years, her business picked up to the extent that she was making a reasonable income from it. She was due to become a first time mother in July 2007. Her impending motherhood made her realize that she would not be able to work long hours in her one-person business after the birth of her child. She had started a webbased business that was set up to sell wedding invitation accessories (such as boxes, ribbons, etc.) procured from various vendors. This business was expected to take less of her time as compared to the custom business, but the custom business made better use of her creative talents. Heather now had to make a decision whether to emphasize the web-based business to compensate for the likely decrease in revenues from her custom business (because of motherhood) or to just continue her custom business in a scaled down form.

Doris, the Executive Director of the JCC, had a Board of Directors that lacked the requisite skills, perspective, behaviors, and willingness to change policies and practices in order to meet external environmental opportunities and threats or to address internal competencies and competitive capabilities. Changes in the external environment were exacerbating the JCC's internal deficiencies. In addition, the Board created impediments to the professional staff's efforts to implement good managerial practices and policies. The current management team was acutely aware of the changes in the external environment, how these changes impacted the JCC's operations and what the JCC needed to do in order to meet these challenges. The management team was frustrated by a Board that did not provide leadership, fulfill their responsibilities, hold each other accountable and undermined management by intervening in day-to-day operations. The staff was passively hostile to the Board and to the management team. As consumers, the members' expectations were higher and more demanding. Doris and her management team had to resolve a myriad of strategic and operational issues that confronted the organization.

This case examines the ethical issues raised when businesses contract for the military during time of war. Dow Chemical Company was a military contractor during the Vietnam War and the primary producer of Agent Orange - a defoliant used to clear vegetation. Agent Orange has been linked to a number of serious medical conditions in war veterans and Vietnamese civilians. In 2004, Vietnamese citizens filed suit against Dow for illnesses they believe were caused by exposure to Agent Orange. Dow thought the issue should have been addressed through political and social policy, while Vietnamese citizens and U.S. Vietnam war veterans believed Dow was ethically responsible. As the case moved through the U.S. judicial system, some of Dow's investors grew uncomfortable with how it was handled. Dow CEO Andrew Liveris was left to wonder what his company could have done differently and what they could learn from the Agent Orange episode that might prevent similar problems in the future. This incident appeared to be a relatively distinct case, but in July of 2007 it was reported that the number of private contract employees in Iraq exceeded that of U.S. military personnel. Consequently, it is likely that companies and their stakeholders will have to address similar issues.

This case looks at the design and implementation of a risk management strategy. It reviews the early moves by Great Plains Energy (GPE) to establish a corporate-wide Enterprise Risk Management program. The corporate Chief Risk Officer is Andrea Bielsker. Andrea appointed Jana Utter to take charge of coordinating the design and implementation of the ERM program. Utter faces a number of challenges. She has had to first conceptualize the program given the charge by the Board of Directors, then design a process by which she identifies the risks that the corporation faces, assist in designing measures for the risks, and work with the various divisions and functional areas to put processes in place to mitigate the identified risks.